Prices in Colonial Pennsylvania [Reprint 2016 ed.] 9781512814422

Table of contents :
Preface
Contents
Tables
Charts
Appendix Tables
I. Introduction
II. Prices of Wheat, Flour, and Bread
III. Prices of Other Farm Products
IV. Prices of Beef and Pork
V. Prices of Staves and Naval Stores
VI. Prices of Pig and Bar Iron
VII. Prices of Sugar
VIII. Prices of Molasses and Rum
IX. Prices of Other West India Products
X. Prices of Staple Commodities Imported from Europe
XI. Trade in British Goods
XII. The General Index of Prices
XIII. Sterling Exchange
XIV. Conclusions
Appendix
Bibliography
Index

Citation preview

INDUSTRIAL RESEARCH

DEPARTMENT

W H A R T O N SCHOOL OF FINANCE AND COMMERCE UNIVERSITY OF

PENNSYLVANIA

PHILADELPHIA

RESEARCH STUDIES XXVI

PRICES I N C O L O N I A L

PENNSYLVANIA

LIST OF PUBLICATIONS OF THE INDUSTRIAL RESEARCH DEPARTMENT I. Earnings and Working Opportunity in the Upholstery Weavers' Trade in 2 j Plants in Philadelphia, by Anne Bezanson. $2.50. II. Collective Bargaining among Photo-Engravers in Philadelphia, by Charles Leese. $ 2 . j o . III. Trends in Foundry Production in the Philadelphia Area, by Anne Bezanson and Robert Gray. $ i . $ o . IV. Significant Post-War Changes in the Full-Fashioned Hosiery Industry, by George W. Taylor. $2.00. V. Earnings in Certain Standard Machine-Tool Occupations in Philadelphia, by H. L . Frain. $1.50. VI. Help-Wanted Advertising as an Indicator of the Demand for Labor, by Anne Bezanson. $2.00. VII. An Analysis of Production of Worsted Sales Yarn, by Alfred H. Williams, Martin A. Brumbaugh, and Hirain S. Davis. $2.50. VIII. The Future Movement of Iron Ore and Coal in Relation to the St. Lawrence Waterway, by Fayette S. Warner. $3.00. I X . Group Incentives—Some Variations in the Use of Group Bonus and Gang Piece Work, by C. Canby Balderston. $2.50. X . Wage Methods and Selling Costs, by Anne Bezanson and Miriam Hussey. $4.50. X I . Wages—A Means of Testing Their Adequacy, by Morris E. Leeds and C. Canby Balderston. $1.50. X I I . Case Studies of Unemployment—Compiled by the Unemployment Committee of the National Federation of Settlements, edited by Marion Elderton. $3.00. X I I I . The Full-Fashioned Hosiery Worker—His Changing Economic Status, by George W. Taylor. $3.00. X I V . Seasonal Variations in Employment in Manufacturing Industries, by J . Parker Bursk. $2.50. X V . The Stabilization of Employment in Philadelphia through the LongRange Planning of Municipal Improvement Projects, by William N. Loucks. $3.50. X V I . How Workers Find Jobs—A Study of Four Thousand Hosiery Workers, by Dorothea de Schweinitz. $2.50. X V I I . Savings and Employee Savings Plans, by William J . Carson. $1.50. X V I I I . Workers' Emotions in Shop and Home, by Rexford B. Hersey. $3.00. X I X . Union Tactics and Economic Change—A Case Study of Three Philadelphia Textile Unions, by Gladys L. Palmer. $2.00. X X . The Philadelphia Upholstery Weaving Industry, by C. Canby Balderston, Robert P. Brecht, Miriam Hussey, Gladys L. Palmer, and Edward N. Wright. $2.50. X X I . Wage Rates and Working Time in the Bituminous Coal Industry, 1 9 1 2 - 1 9 2 2 , by Waldo E. Fisher and Anne Bezanson. $3.50. X X I I . Ten Thousand Out of Work, by Ewan Clague and Webster Powell. $2.00. X X I I I . A Statistical Study of Profits, by Raymond T . Bowman. $3.00. X X I V . The Dollar, the Franc, and Inflation, by Eleanor Lansing Dulles. $ 1 . 2 5 . (The Macmillan Company.) X X V . Executive Guidance of Industrial Relations, by C. Canby Balderston. *3-75-

PRICES IN COLONIAL PENNSYLVANIA BY A N N E BEZANSON ROBERT D . MIRIAM

GRAY

HUSSEY

Industrial Research Department Wharton School of Finance and Commerce University of Pennsylvania

PHILADELPHIA UNIVERSITY OF PENNSYLVANIA PRESS

1935

Copyright,

1935

by the UNIVERSITY OF PENNSYLVANIA PRESS

Printed in the UNITED STATES OF A M E R I C A

Dedicated W I T H O U T HIS

KNOWLEDGE

To

PROFESSOR EDWIN F. G A Y IN A P P R E C I A T I O N O F HIS I N T E R E S T IN

THE

HISTORY OF

PRICES

PREFACE Prices in Colonial Pennsylvania is the first in a series of detailed studies of the history of prices in the Philadelphia area. Strictly speaking the purpose of this study is to make available, as accurately as possible, the wholesale prices of commodities bought and sold in Pennsylvania between 1720 and 1775. T o the prices have been added much data which give clues to the causes of many of the price movements and the customs of trading. In this way the study gives indirectly a picture of many phases of early American life. T h e real importance of Prices in Colonial Pennsylvania arises, however, from the fact that the analysis of these data adds to the understanding of the process of economic development, especially when dealing with the period in which the bases of future institutions were being laid. It is mere coincidence that at a time when every one is struggling with problems of recovery from a depression, we have completed a study which shows that even in the simple economy of the Colonial period, local merchants were confronted with alternating periods of prosperity and depression. Routes of trade had to be adjusted to take advantage of seasonal fluctuations in prices in Philadelphia and in markets where the staples of Pennsylvania were sold and where many goods used in the colony had to be purchased. Merchants also had to plan their trading in order to take account of variations in the harvests in this province, in other colonies, and in Europe. Local industries, too, were affected by weather conditions because droughts reduced the water power necessary for the operation of flour mills and forges and because floods damaged them. Nearly every winter the port was closed by ice. As a result, erratic changes in prices occurred when ships' captains competed for cargoes in the late fall or when Philadelphians bid high for imported articles which were scarce in the spring after a hard winter. Prices in Pennsylvania were also affected by wars and threats of wars in both the old and the new world. In addition to boundary disvii

Vlll

PREFACE

putes and sporadic attacks from the Indians during this period, the colonies were involved in two major wars between Great Britain and the allied powers of France and Spain. Such conflicts necessarily interfered with trade, increased the costs of shipping, and altered the usual supply of and demand for many goods. Many other factors entered into the calculations by which the shippers decided when and where adventures should be made, but it is not necessary to indicate all of them here. T h e fluctuations in prices which resulted from these influences must have been constantly in the minds of the business men of that time. Then, as now, knowledge of prices was essential in making business decisions. It was therefore necessary for the merchants to collect and report carefully the transactions which were usually made at the Coffee House. It is the colonial merchants themselves who primarily have made the study possible. Their interest in the prevailing prices led the editor of the A merican Weekly Mercury in 1 7 1 9 in the second issue to begin publishing a list of prices current. The local importers kept in touch with the conditions in other areas by corresponding with merchant shippers in those localities. Many Philadelphia merchants, such as the Norris', the Clifford's, the Powel's, and the Wharton's, kept copies of letters sent to London, to New York, to Boston, to Lisbon, and to the West Indies in which the causes of changes in prices were explained. Likewise, many of the letters received by the Philadelphians were preserved by them. There is no way of acknowledging adequately the indirect assistance of those families who have carefully preserved the invaluable, contemporary accounts of trading conditions before the American Revolution, but credit can be given to the Historical Society of Pennsylvania which has, over a long period, accumulated many of these records. Without the use of its material this study of prices would not have been possible. T o its staff, especially to Miss Mary M . Townsend, Miss Catherine H . Miller, and M r . George Fairchild who have patiently made the records available to us at many times when the material for this study was being collected, verified, and expanded, we acknowledge much obligation. W e are also indebted to the librarians of the Ridgway Branch of the Library Company of Philadelphia, of the American Philosophical

PREFACE

IX

Society, of the Athenaeum of Philadelphia, of the Mercantile L i brary, and of the University of Pennsylvania who have generously permitted us to supplement our data from their files of newspapers and manuscripts. Despite the vast amount of material in the Philadelphia area, we made frequent use of sources in other localities. Among such depositories elsewhere we owe especial credit to the J o h n Carter Brown L i b r a r y at Providence, the W i d e n e r and Baker Libraries at H a r v a r d University, the New York Historical Society, the New York Public L i b r a r y , the Massachusetts Historical Society, the Historical Society of Delaware, the M a r y l a n d Historical Society, the L i b r a r y of Congress, the Archives of the State Library of Pennsylvania, and the Public Record Office in London. It is necessary to point out that despite the richness of the material in these libraries, the data for prices might never have been assembled by us if it had not been for the vision of Professor E d w i n F . Gay of H a r v a r d University who has stimulated interest in the study of prices in many countries. At his suggestion the Philadelphia studies were undertaken by the Industrial Research Department of the University of Pennsylvania in cooperation with the International Scientific Committee on Price History. D u r i n g the conduct of the studies Professor Arthur H . Cole of H a r v a r d University has frequently consulted with us in making effective our cooperation with other students of price history. Without the interest of Dean Joseph H . W i l l i t s of the W h a r t o n School, University of Pennsylvania, it would not have been possible to supplement the funds allocated by the Price Committee sufficiently to carry on the work as intensively and extensively as we have. W e have profited also from the questions raised by each of them upon parts of this manuscript. W e are indebted to many at the University of Pennsylvania who have by interest and suggestion furthered the study, especially to Professors C. Canby Balderston and W a l d o E. Fisher for reading and criticizing the manuscript and to Professor H a n s Neisser and Dr. Eleanor D u l l e s for their helpful comments in connection with the chapter on sterling exchange. In the course of her study of Boston prices, M i s s R u t h Crandall contributed to us Philadelphia material which came to her attention.

X

PREFACE

Professor F . A . Pearson of Cornell made available parts of the data for the N e w York area for comparison with ours. This volume will be followed by others also limited to this area, dealing with prices during the period of the Revolutionary W a r , the wholesale prices in the years from 1784 to i860, with retail prices, with the relation of prices to trade before i860, and with wages before 1880. It is fitting to recognize in the first of this group of studies the assistance given by firms, educational institutions, and individuals in making their private records available for use in further publications. Foremost among such contributors is M r . A. P. Wetherill of Wetherill and Brother who has preserved a complete collection of records of a business which for five generations was in the Wetherill family. W e were given access to other valuable material through the courtesy of M r . C. B. Lynch of Pusey and Jones, M r . J. Edgar Rhoads of J. E . Rhoads and Sons, M r . Walter E . Whitaker of William Whitaker and Sons, and the late Walter Wood of R. D . Wood and Company. It is impossible to credit specifically any but the most extensive collections, among which the records of the Westtown School and the Pennsylvania Hospital must also be singled out for special mention. At this time when only part of the data for the series of studies can be published, it is difficult adequately to apportion credit to the members of the price study group of the Industrial Research D e partment who shared in all stages of the work which involved a multiplicity of details and care. T h e main plan which was followed in collecting wholesale prices was to use the prices published in local papers. Thanks are due to Janet H . Lewis for collecting the data from prices current in newspapers from 1720 to 1775 used in this volume and to Helen L . Klopfer for supervising the collection of original data from newspapers in the period after the Revolution. These basic collections furnished the skeleton outline of price data. For the second culling of newspaper records to supplement gaps, check conflicts in individual series, and overlap sources, we are indebted especially to Lillian C. Davis. Frequently the use of all papers failed to furnish a price for a particular commodity or for important series and use had to be made of contemporary accounts and letters of merchants. In supplementing data

PREFACE

XI

of this extensive type all members of the price study section participated at one time or another, but especial credit is due to Blanch Daley, Lillian C. Davis, and Josephine Fulton. W h e n it was clear that the letters of merchants were precise enough to be used in explanation of the prices of particular commodities, Janet H . Lewis undertook the difficult task of adding to the collection of merchants' comments and organizing t h e m by commodities. Acknowledgement is made to Grace Patterson for collecting retail prices f r o m merchants' account books, which, though not actually presented in this publication, furnished a basis for estimating the movements of prices in periods when wholesale data were lacking. T h e original figures for sterling exchange rates copied f r o m merchants' account books and letters were supplemented by Richard H o f f m a n and C. Whitcomb Alden who tried from the same sources to get the amount of specie being shipped. T h e export figures which are used occasionally throughout the text were supplied by H e l e n L . Klopfer who undertook a specialized part of the price study concerned with the trade of Philadelphia now in process of being written as a separate volume of the series. T o no one in the price study group is more credit due than to M a r j o r i e C. Denison who has supervised the work of calculation, called attention to inconsistencies in data, planned charts, and aided in checking data used in the text. F o r helpful suggestions and for much work in reading a n d verifying the facts in the manuscript we are indebted to G e r t r u d e Bancroft; for rechecking quoted statements of merchants to original letters and for verifying the location of correspondents, the authors acknowledge the work of Lillian C. Davis and Blanch Daley. T h e difficult task of drafting charts was done by H a r o l d W . Denison. T h e many students who assisted on various parts of the study will be credited in later volumes. A m o n g the authors there has necessarily been some apportionment of duties. T h e responsibility and the direction of the series of price studies was taken on by Anne Bezanson. Robert Gray has shared in deciding upon the choice of materials and methods. H e has jointly participated with her in the writing of the manuscript of this study and in the interpretation of data and conclusions. T o Miriam Hussey's contribution in aiding with the interpretation of prices, in standardiz-

xii

PREFACE

ing and revising the manuscript and preparing bibliographies and appendix tables, must be added credit for furnishing the record of the number of ships leaving and entering the port of Philadelphia from the weekly summaries published in the newspapers from customs reports.

CONTENTS CHAPTER

P A C E

Preface I II

vii

Introduction

1

Prices of W h e a t , F l o u r , and Bread

9

III

Prices of Other F a r m Products

j6

IV

Prices of Beef and P o r k

96

V

Prices of Staves and N a v a l Stores

117

Prices of P i g and B a r Iron

154

Prices of S u g a r

163

Prices of Molasses and R u m

186

Prices of O t h e r West India Products

21 j

Prices of Staple C o m m o d i t i e s Imported f r o m E u r o p e

130

T r a d e in British G o o d s

263

T h e G e n e r a l Index of Prices

293

XIII

Sterling Exchange

314

XIV

Conclusions

337

VI

VII VIII IX X XI XII

Appendix Method

35 1

Tables

360

Bibliography

434

Index

439

xiii

TABLES TABLE

PACE

i

T i m i n g of S w i n g s in Prices of W h e a t , F l o u r , Bread, i 720-1 775

1

T i m i n g of S w i n g s in A r i t h m e t i c and Geometric Indices of 20 C o m m o d i t i e s

295

3

S u m m a r y of C y c l i c a l M o v e m e n t s in A r i t h m e t i c and Geometric Indices of 20 Commodities

297

IV

52

CHARTS CHART

PACE I

II

M o n t h l y R e l a t i v e s of W h o l e s a l e P r i c e s of W h e a t a n d F l o u r in P h i l a delphia, 1 7 2 0 - 1 7 7 5 Monthly

Relatives

of

W h o l e s a l e P r i c e s of B r e a d

in

Philadelphia,

1720-1775 III

IV

18-19

A n n u a l R e l a t i v e s of W h o l e s a l e P r i c e s of W h e a t , F l o u r , a n d B r e a d in Philadelphia, 1 7 2 0 - 1 7 7 5 Monthly

Relatives

of

Wholesale

P r i c e s of

Corn

in

58-59

A n n u a l R e l a t i v e s of W h o l e s a l e P r i c e s of C o r n in P h i l a d e l p h i a ,

17206

1775 VI

M o n t h l y R e l a t i v e s o f W h o l e s a l e P r i c e s of T o b a c c o in

VIII

80-81

A n n u a l R e l a t i v e s o f W h o l e s a l e P r i c e s o f T o b a c c o in 1720-1772

Philadelphia, 83

M o n t h l y R e l a t i v e s of W h o l e s a l e P r i c e s of R i c e in P h i l a d e l p h i a , 1 7 2 0 • 775

IX

«6-87

A n n u a l R e l a t i v e s of W h o l e s a l e P r i c e s of R i c e in P h i l a d e l p h i a ,

1720-

1775 X

XI

XII

XIII

94

M o n t h l y R e l a t i v e s o f W h o l e s a l e P r i c e s of B e e f a n d P o r k in P h i l a delphia, 1 7 2 0 - 1 7 7 5 A n n u a l R e l a t i v e s of W h o l e s a l e delphia, 1 720-1 775 A n n u a l R e l a t i v e s of 1720-1 774 Monthly Relatives

P r i c e s of

B e e f a n d P o r k in

114

Wholesale

Prices

of

S t a v e s in

Philadelphia, 11 8

of W h o l e s a l e

P r i c e s of

S t a v e s in

Philadelphia, 121-123

M o n t h l y R e l a t i v e s of W h o l e s a l e P r i c e s of P i t c h , T a r , a n d

Turpen-

tine in P h i l a d e l p h i a , 1 7 2 0 - 1 7 7 5 XV

136-139

A n n u a l R e l a t i v e s of W h o l e s a l e Prices of Pitch, T a r , a n d T u r p e n t i n e in P h i l a d e l p h i a , 1 7 2 0 - 1 7 7 4

XVI

98-99

Phila-

•734-1775 XIV

5

Philadelphia,

1720-1772 VII

50

Philadelphia,

1720-1775 V

iz-15

151

M o n t h l y R e l a t i v e s of W h o l e s a l e P r i c e s o f I r o n in P h i l a d e l p h i a , 1 7 6 7 >775

>57 xvii

CHARTS

XV111 CHART

XVII

XVIII

PACE

Monthly Relatives of Wholesale Prices of S u g a r in Philadelphia, i 720-1 7 7 j Annual Relatives of Wholesale Prices of Sugar in Philadelphia, 1 7 2 0 ' 775

XIX

XX

XXI

XXII

XXV

XXVI

in

206

Monthly Relatives of Wholesale Prices of Indigo in Philadelphia, 1731-1763

220-221

Monthly Relatives of Wholesale Prices of Cotton in Philadelphia, 711

775

224-225

Annual Relatives of Wholesale Prices of Cotton in Philadelphia, 7 3 1 - 1 774

" 8

Monthly Relatives of Wholesale Prices of Madeira Wine in Philadelphia, 1 7 2 0 - 1 775

232-233

Annual Relatives of Wholesale Prices of Madeira Wine in Philadelphia, 1 7 2 0 - 1 775

236

Monthly Relatives of Wholesale Prices of Salt in Philadelphia, 1 7 2 0 • 77 5

XXVII

138-139

Annual Relatives of Wholesale Prices of Salt in Philadelphia, 1 7 2 0 1 775

XXVIII

XXIX

XXX

XXXI

XXXII

XXXIII

188-191

Annual Relatives of Wholesale Prices of Molasses and R u m in Philadelphia, 1 7 2 0 - 1 7 7 j

1

XXIV

«80

Monthly Relatives of Wholesale Prices of Molasses and Rum Philadelphia, 1 7 1 0 - 1 7 7 $

1

XXIII

166-169

248

Indices of Estimated First Cost or Value in Sterling of T r a d e between Pennsylvania and Great Britain, 1 7 2 0 - 1 7 7 5

265

Arithmetic and Geometric Indices of A v e r a g e Monthly Wholesale Prices of 20 Commodities in Philadelphia, 1 7 2 0 - 1 7 7 5 facing 294 Arithmetic Indices of A v e r a g e Monthly Wholesale Prices of 1 2 , 20, and 22 Commodities in Philadelphia, 1 7 2 0 - 1 7 7 5

310-311

Monthly Rates of Exchange on London—Pennsylvania Currency f o r £ 1 0 0 Sterling, 1 7 2 2 - 1 7 7 5

318-319

Annual Relatives of Wholesale Prices of F l o u r Corrected by Rates of Exchange, 1 7 2 0 - 1 7 7 5

334

Arithmetic and Geometric Indices of A v e r a g e Annual Prices in Philadelphia, 1 7 2 0 - 1 7 7 5

346

Wholesale

APPENDIX TABLES TABLE

1

2

PACE

Average Monthly 1720-1775

Wholesale

Prices of

Commodities

in

Philadelphia, 360-415

A v e r a g e M o n t h l y W h o l e s a l e Prices of F l a x s e e d in P h i l a d e l p h i a ,

1734-

1 775

4'«

3

A v e r a g e M o n t h l y W h o l e s a l e Prices of G i n g e r in P h i l a d e l p h i a , 1 7 2 0 - 1 7 4 5

417

4

A v e r a g e M o n t h l y W h o l e s a l e Prices of H e m p in P h i l a d e l p h i a , 1 7 4 9 - 1 7 7 5

417

5

A v e r a g e M o n t h l y W h o l e s a l e Prices of P e p p e r in P h i l a d e l p h i a , 1 7 2 0 - 1 7 7 5

418

6

A v e r a g e M o n t h l y W h o l e s a l e Prices of P i m e n t o in P h i l a d e l p h i a , ' 775

+'9

7

1734-

A v e r a g e M o n t h l y W h o l e s a l e Prices of P e n n s y l v a n i a R u m in P h i l a d e l p h i a , • 7 5 ^ - 1 775

8

9

420

A v e r a g e M o n t h l y W h o l e s a l e Prices of P h i l a d e l p h i a R u m in P h i l a d e l p h i a , 1 766-1 775

420

A v e r a g e M o n t h l y W h o l e s a l e Prices of B o h e a T e a in P h i l a d e l p h i a , 1726, 1752-1775

4»i

1720-

10

A v e r a g e A n n u a l W h o l e s a l e Prices of C o m m o d i t i e s in P h i l a d e l p h i a , 1 7 2 0 -

11

A r i t h m e t i c I n d e x of A v e r a g e M o n t h l y W h o l e s a l e Prices of 20 C o m m o d i ties in P h i l a d e l p h i a , 1 7 2 0 - 1 7 7 5

425

12

G e o m e t r i c I n d e x of A v e r a g e M o n t h l y W h o l e s a l e Prices of 2 0 C o m m o d i ties in P h i l a d e l p h i a , 1 7 3 1 - 1 7 7 5

426

13

A r i t h m e t i c I n d e x of A v e r a g e M o n t h l y W h o l e s a l e Prices of 1 2 ties in P h i l a d e l p h i a , 1 7 2 0 - 1 7 7 5

427

1 775

14

15

16

17

18

19

4"-4J4

Commodi-

A r i t h m e t i c I n d e x of A v e r a g e M o n t h l y W h o l e s a l e Prices of 2 2 C o m m o d i ties in P h i l a d e l p h i a , 1 7 6 7 - 1 7 7 5

428

M o v i n g A v e r a g e of M o n t h l y A r i t h m e t i c I n d e x of Prices of 2 0 C o m m o d i ties in P h i l a d e l p h i a , 1 7 2 0 - 1 7 7 5

429

M o v i n g A v e r a g e of M o n t h l y G e o m e t r i c I n d e x of Prices of 20 C o m m o d i ties in P h i l a d e l p h i a , 1 7 3 1 - 1 7 7 5

430

M o n t h l y R a t e s of E x c h a n g e on L o n d o n — P e n n s y l v a n i a C u r r e n c y f o r £ 1 0 0 Sterling, 1 720-1 775

431

A n n u a l R a t e s of E x c h a n g e on L o n d o n — P e n n s y l v a n i a C u r r e n c y f o r £ 1 0 0 Sterling, 1 7 2 0 - 1 7 7 5

432

A n n u a l Indices of 1720-1774

4.33

W h o l e s a l e Prices of

xix

C o m m o d i t i e s in

Philadelphia,

CHAPTER

I

INTRODUCTION " A t every sea port get the best information thou canst, the expense attending shipping, the goodness and safety of the ports and harbors, their exports and imports, whether anything and what can be supplied them from hence and what they have suitable for us. At all manufacturing towns or cities see their productions, sorts, qualities and prices, as also the men of most note for their probity, punctuality, and candor in trade and business." 1 These instructions, given by a Philadelphian to his son who had been sent abroad, might well serve also as indications to us of some of the factors to be considered in our problem of appraising conditions affecting prices in Pennsylvania from 1 7 2 0 to 1775. The bare data of wholesole prices as quoted in the local newspapers and supplemented from the records of merchants must be amplified by the comments of contemporaries, data on the extent and flow of trade, and the conclusions reached by others. Only by following such a method will this history and interpretation of monthly wholesale prices in Philadelphia from 1 7 2 0 to 1 7 7 5 be of assistance to those who are interested in tracing and measuring the development of Pennsylvania and to those who are interested in studying the operation of the price system, the core of economic science. T o both of these groups of students the movements of prices in Philadelphia have a special significance because the records of prices begin relatively soon after the founding of the colony. The tardiness in establishing a permanent settlement at Philadelphia and its subsequent rapid growth condensed into a short period of time much of the development which in the other colonies took longer and which in many European countries required centuries. Our study is based on series of monthly wholesale prices of certain staple commodities, both domestic and imported.2 The growth of the "October zz, 1 7 6 9 , T h o m a s C l i f f o r d to his son, T h o m a s , J r . , sailing- on his ship Becky to Bristol, England. 2 T h e word "imported" in the Colonial period refers to commodities brought from other colonies and Great Britain as well as from foreign countries.

1

2

PRICES

IN COLONIAL

PENNSYLVANIA

trade of this community can be attributed not only to the demand for its raw products, but also to the demand by its residents f o r those processed commodities to which they had been accustomed in the O l d W o r l d . B y 1 7 2 0 the trade of Pennsylvania involved the exportation of staple domestic products such as flour, wheat, bread, corn, pork, beef, and staves, and the importation of molasses, muscovado or raw sugar, and rum from the West Indies, tobacco from M a r y l a n d and Virginia, rice and naval stores from the Carolinas, a little wine f r o m Madeira, coarse salt from Portugal, and fine salt from England. I n addition to these articles with which, later, cotton and indigo f r o m the West Indies and gunpowder from England must be included, there was important, but not continuous, trade in tea and spices, which might be brought directly from Europe or indirectly from the other colonies on the mainland or the Islands, and in pimento, or allspice, and ginger from Jamaica. Later, also, the domestic products in our price series were increased by flaxseed, hemp, and bar and pig iron. During the eighteenth century the distillation of rum in N e w E n g land and in Pennsylvania developed in competition with West India rum. Loaf sugar, which at first came entirely from London, was later supplied in part, and then wholly, by local sugar houses. Both of these commodities eventually were able to compete with the product of the original sources in other markets and, therefore, became part of the exports of the colony. A l l of these commodities were sufficiently standardized by custom to enable one to make reasonably reliable comparisons of prices f r o m time to time. Obviously they did not comprise the whole of the commerce of the city. A large part of Philadelphia's trade, especially that with Great Britain and, less extensively, with Ireland, in textiles, ironware, earthenware, nails, shot, cordage, furniture, and all types of clothing and manufactured articles, consisted of commodities which, though imported in considerable quantities, are unsuited to this type of statistical analysis. It was these relatively durable commodities comparatively high in value and not liable to rapid deterioration in storage, imported from England on fairly lenient terms of credit or on a commission basis, that involved the importers in obligations to the English merchants. T h e sale of these goods, in turn, to farmers, again on extended terms, involved the farmers in obligations to the

INTRODUCTION

3

Philadelphia merchants. These commodities are the most important items missing from our story of prices and the effect of price movements in these years. It is the status of these commodities which entered into contemporary discussion in every period of depression. Our primary task of getting "the best information thou canst" about monthly prices of separate commodities and the units in which they were quoted has been easier for the products originating in Pennsylvania which regularly entered into foreign trade than for those produced primarily for home consumption and shipped only in years when some special conditions made trade in them desirable. It has been nearly as easy to procure prices for some commodities produced outside the colony, which were imported in sufficient volume and frequently enough to furnish regular quotations. Our main source of information is the list of "prices current" which first appeared in 1 7 1 9 in the American Weekly Mercury and which was continued in that and other newspapers. These lists represent for Pennsylvania staples the prices at which they were bought and sold for exporting to the other colonies, to Great Britain, and to foreign countries ; for the imported commodities, the prices current recorded the prices at which such goods first sold. T h e prices were posted at the Coffee Houses where the principal merchants gathered. There were times when, for several months, all or part of the list would be omitted from the newspaper, either because the volume of other news or advertisements did not leave sufficient space or because an embargo on the port interfered with the usual functioning of the mechants' exchange. A more frequent cause for the suspension of trading was the closing of the port by ice, during severe winters. It has been necessary, therefore, to supplement the data procured from the newspapers by using the records of contemporary merchants in whose account books specific transactions in a great variety of goods are recorded. Greater use still has been made of the records of prices contained either in letters sent to correspondents in other areas or in "prices current" appended to these letters. These data are available because of the custom of keeping in letter books a copy of every letter sent. In quoting from the letters we have adhered strictly to the wording of the original, but we have modernized the spelling, written out abbreviations, and added punctuation.

4

PRICES

IN COLONIAL

PENNSYLVANIA

This correspondence also reveals the customs of trading and, more important, often includes the merchants' explanation of the causes of changes in price. Although from a long-time point of view many of these comments are inadequate, they are extremely enlightening as to the short-time forces operating on prices in Philadelphia, since it was through these letters and prices current that the merchants supplied each other with news of market conditions. Our interpretation of the significance of the movements in prices has been largely based on these letters when sudden fluctuations are considered, but our analysis of the underlying movements is chiefly dependent on the interrelation of changes in the prices of allied commodities. Another type of supplementary material which we have, to some extent, related to prices is the physical volume of imports and exports of specific commodities in particular years from the study by Miss Klopfer on the trade of Philadelphia which is in preparation for publication in this series. In addition, it has been possible to examine the trade between Pennsylvania and Great Britain as represented by the values of exports from this colony to Great Britain and by the value of the imports of British goods. Another consecutive account of the trade of the port has been obtained from the number of vessels entering and clearing the port as reported by the Customs House and published in the newspapers. This record shows the direction of trade and gives a rough index of the volume to specific areas, although it does not give the articles received or shipped. T h e detailed weekly account of sailings is useful in explaining many short-time fluctuations in price. F o r example, it was often customary to raise prices of domestic commodities when ships were loading. Again, if no ship had arrived from a particular area for some time, the commodities usually imported directly from that area might rise considerably. Finally, the newspaper lists of vessels entering and leaving the port verify the accuracy of many of the merchants' comments and their comments in turn substantiate the newspaper reports. From the synthesis of these varied data we have traced the monthly fluctuations in wholesale prices in Philadelphia. In order to strip the series of these fluctuations so that the longer-time movements may be

INTRODUCTION

5

more conspicuous we have also charted the annual relatives of prices. I n all the analysis, great emphasis has been placed upon the movements of prices in specific commodities. O u r discussion and analysis of the specific commodities considered can be divided into three sections, which occupy Chapters I I to X I inclusive. I n the first chapters are discussed the products of Pennsylvania and other mainland colonies, which include wheat, flour, bread, corn, flaxseed, hemp, tobacco, rice, beef, pork, staves, tar, pitch, turpentine, and bar and pig iron. T h e second main division covers the products imported from the W e s t Indies: sugar, rum, molasses, ginger, pimento, indigo, and cotton. W i t h these commodities it is also necessary to discuss the prices of London and Pennsylvania loaf suger, which were refined from the muscovado or raw sugar from the W e s t Indies, and also the prices of N e w E n g l a n d , Pennsylvania, and P h i l a delphia rum, which, distilled from imported molasses, competed in the local market with W e s t India rum. T h e third group of commodities consists of goods imported from Europe and includes salt from Portugal and E n g l a n d , wine from the Madeira Islands, gunpowder made in E n g l a n d , and pepper and tea, usually imported from London. I n addition, from the comments of merchants and scattered prices of a typical coarse linen fabric, osnaburgs, we try to give an impression of the alternating periods of activity and depression in the sale of many manufactured articles, chiefly imported from Great Britain. W h e n the movements of the prices of all of these commodities are discussed and related to the explanations offered by contemporaries, m a n y factors will be stressed which are important only because the restricted size of the early Colonial economy gave increased weight to apparently slight influences. T h i s emphasis upon the detailed discussion of the individual series gives an accurate basis for assessing the importance of changes in a total index. T h e general or specific character of various factors operating on prevailing prices can only be j u d g e d by a comparison of the responses in the price of each commodity. F o l l o w i n g our discussion of the prices of individual commodities, in which we stress the extent to which they moved in similar or adverse directions, we consider, in the last three chapters the total

PRICES

6

IN COLONIAL

PENNSYLVANIA

index of prices, the rates of exchange on London, and draw some general conclusions from all our data. H e r e , in order to summarize the movements of prices we have constructed a general index based on the 20 series for which we have adequate monthly quotations. T h e commodities used for this purpose are: •beef •bread brown ship middling white

*pork rice •rum W e s t India New England •salt

•corn cotton

fine coarse

•flour

staves

gunpowder indigo •molasses •pitch

*sugar muscovado London loaf Pennsylvania loaf *tar tobacco turpentine •wheat wine, Madeira

barrel hogshead pipe

T h e commodities marked with an asterisk are those which are included in the index of 1 2 commodities. I t will be noted that different grades of the same commodity have been combined to secure the average of that commodity. F o r example, in some years the index of bread prices finally combined with the other series is derived by averaging the relatives of as many as four grades, namely, brown bread, ship biscuit, middling bread, and white biscuit. I n forming the general index, we have used two types of monthly average: first, an unweighted arithmetic average of relatives of twenty commodities; and second, an unweighted geometric average of the same series. In addition, in order to reduce the effect of estimated prices to the minimum, an unweighted arithmetic average of relatives of the twelve most frequently quoted commodities has also been constructed. Finally, in order to introduce into the general curve the effects of movements of prices of bar and pig iron which became important products of Pennsylvania before the close of the Colonial period, an unweighted arithmetic average of twenty-two series has been computed from 1 7 6 7 to 1 7 7 5 . In all cases the relatives for each

INTRODUCTION

7

series are expressed as a percentage of the monthly average of 1 7 4 1 to 1 7 4 5 , inclusive. 3 As a final summary of the net effect of conditions influencing prices in Pennsylvania including the emission of paper currency and the prices in other areas with which Pennsylvanians were trading, the rates of exchange on London bills payable in sterling have been collected from the merchants' records. By the use of these rates it is possible to convert the prices in Philadelphia into their equivalent in sterling. Before starting the analysis of the prices, some comment should be made on the units of value in which they were quoted. Pennsylvanians, like the other colonists, used the terminology of English currency in listing prices and keeping accounts. Although in all the colonies "pounds," "shillings," and "pence" were maintained in the same ratio to each other as in England, their basic rating differed. This was brought about by the value assigned to the Spanish dollar. " W h e n the Spanish dollar, which was worth 4 shillings 6 pence, was rated at 5 shillings, the Colonial pound was reduced to $4.00 or 1 , 5 4 7 grains of fine silver and £ 1 1 1 of Colonial money equaled £ 1 0 0 sterling. With the dollar advanced to 6 shillings, the Colonial pound fell to $ 3 . 3 3 , of 1,289 grains of pure metal, while £ 1 3 3 1 / 3 of Colonial currency equalled £ 1 0 0 sterling. A rating of 7 shillings 6 pence for the piece of eight reduced the Colonial pound to $2.66 or 1 , 0 3 1 grains of silver; and made £ 1 6 6 ^ 3 of Colonial currency equal to £ 1 0 0 sterling.'* 4 Pennsylvania had taken a rating of 6 shillings for the Spanish dollar before December 1683 s and later advanced it to 7 shillings 6 pence. It must be realized that, in stating prices of specific commodities and in relating these to explanations of merchants in the text, we have cited the currency of the period. Therefore, it is the Pennsylvania valuation to which reference is made unless sterling is specified. * A detailed description of the methods used in collecting, averaging, and estimating prices and in computing the relatives and indices will be found in the Appendix, pp. 3 5 1 - 3 5 8 . T h e Appendix tables (pp. 3 6 0 - 4 3 3 ) contain all the absolute prices upon which the discussion is based and the indices from which the summary charts are d r a w n . 4 Bullock, Charles J . , Essays on the Monetary History of the United States, p p . 2 2 - 2 3 . " D e c e m b e r 2, 1 6 8 3 , J a m e s Claypoole to his brother, E d w a r d , Pennsylvania Magazine of History and Biography, Vol. X , 1 8 8 6 , p. 276. " . . . our money . . . is 6 shillings f o r a piece of eight or 15 pence for an English shilling. . . . "

8

PRICES

IN COLONIAL

PENNSYLVANIA

Thus we may address ourselves to a variety of questions regarding the movements of prices in Philadelphia during the period under consideration. W h a t were the changes in prices in the Philadelphia market in the three most important products of Pennsylvania, wheat, flour, and bread? W h a t were the changes in prices for other agricultural commodities and for the forest products of Pennsylvania and of the other mainland colonies? What were the changes in prices of commodities imported from the West Indies and from Europe? What explanations were offered by contemporaries as to the causes of these fluctuations? H o w did the two major wars with France and Spain affect the movements of prices in the Philadelphia market? In addition to these specific inquiries, attention has also been given to the extent of similarity in the movements of the prices of commodities which had a common origin or similar uses or which represented different stages of processing. From the composite of the prices of the most prominent staples we have isolated the major price movements of the Colonial period in order to see their relationship to the trade in manufactured commodities and to the changes in the valuation of Pennsylvania currency in terms of sterling. At all stages thought has been given to the recurring question of the extent to which the rise in prices of Pennsylvania staples reflected a depreciation of the Colonial currency. T h e answers to many of these questions can only be tentative, not only because of the inexact knowledge of the movements of prices of many specific manufactured commodities, but more especially because of the omission, from this study, of data on retail prices and wages. Furthermore, it has not been possible to assess accurately the influence on prices of duties, bounties, and other restrictions or preferences which may have deflected the course of trade. T h e ultimate significance of this study depends upon the completion of others, already underway, which will give for one community a consecutive series of prices, analyzed to determine whether or not the character of changes in prices has varied in the different stages of development from an agricultural to a highly mechanized economy. Consequently the importance of this study of the Colonial period will be increased by its contrast with the movements of prices after the Revolution.

CHAPTER

II

PRICES OF W H E A T , FLOUR, A N D BREAD Soon a f t e r the settlement of Pennsylvania, wheat, flour, and bread assumed a preponderance over other domestic products which was maintained during the entire Colonial period. A s early as 1700, the people had " i m p r o v e d tillage to that d e g r e e " that they had made bread and flour " a d r u g in all the markets in the W e s t Indies." 1 W i t h i n the next decade it was reported that " t h e country people of this Province have of late generally fallen upon the practice of bolting their own wheat, and selling or shipping the flour."2 I n the winter of 1 7 1 0 , a P h i l a d e l p h i a merchant, writing to a correspondent in Ireland, stated that although grain had " b e e n dear in E u r o p e , yet N o r t h America has so increased in it, and overstocked the Plantations in the W e s t Indies, that we have sold to excessive loss last year." 3 T h e same merchant wrote about a year later, " I am apt to think the country has, within ten or t w e l v e years, increased to near ten times its then produce of corn, wheat especially. T h e market of Lisbon has been of great advantage to us. W e have now g o i n g seven or eight vessels and some of them l a r g e . " 4 I n 1 7 2 0 , the prices of wheat, flour, and bread were declining f r o m a peak in the closing years of the previous decade. Prices continued to decline until the governor and assembly felt that some action should be taken. I n his message the governor stated, " F o r the sake of the w h o l e country, w h o must live by the product and manufacture of grain, it was absolutely necessary that the making [ o f ] g o o d bread and flour be so regulated as to recover their lost credit in the market in ' J u n e 19, 1700, Colonel Robert Quary in Pennsylvania Magazine of History and Biography, Vol. X X I V , 1900, p. 63. ' March j , 1709, James Logan to William Penn, London, Memoirs of Historical Society of Pennsylvania, Vol. X , 1872, p. 325. " F e b r u a r y 18, 1 7 1 0 , Isaac Norris to Joseph Pike, Ireland, Memoirs of Historical Society of Pennsylvania, Vol. X , 1872, p. 423. ' J u n e , 1 7 1 1 , Isaac Norris to Joseph Pike, Ireland, Memoirs of Historical Society of Pennsylvania, Vol. X , 1872, p. 43J. 9

10

PRICES

IN COLONIAL

PENNSYLVANIA

the W e s t Indies upon which their whole traffic entirely depended.'" T h e general condition of that time and the laws designed to correct the situation are described by Gordon. T h e agricultural produce becoming superabundant, and the foreign demand insufficient to draw off the excess, the enterprise of the planter was discouraged, and many laborers, whose number was daily increased by the emigration from Europe, were unemployed. T h e remedy for these evils lay in increased consumption and export; and the exertions of the legislature were directed to both with distinguished success. A n act was passed forbidding under heavy penalties the use of molasses, sugar, honey or other substances save grain and hops, in the manufacture of beer; and distillers were encouraged to supply the consumption of ardent spirits from domestic materials. But to the improvement of the manufacture of flour, which now claimed great attention, Pennsylvania is mainly indebted for her increase of population and wealth. T h e inspection laws, now adopted, established the character of her flour and her salted provisions in foreign markets, and gave her a valuable part of the trade of the W e s t Indies.®

T h e conditions described here, in the early twenties, were those prevailing when wheat, flour, and bread sold at the lowest prices of the decade. F r o m this low level originated the first of the nine major swings or cycles in wheat prices before the American Revolution. T h i s marked cycle in the wheat curve covered a period of 55 months from J u l y 1723 to January 1728. Prices rose in 22 months from a relative of 83.5 in June 1723 to a peak of 142.0 in A p r i l 1 7 2 5 . T h e mild decline from the peak was followed by more than a year of relatively high, stable wheat prices before the definite beginning of the downward movement which ended in October 1 7 2 7 to January 1728 at 93.8. W e may think of the years 1 7 2 1 to 1723 for Philadelphia as a period when prices were low and trade dull, of those from 1 7 2 4 to 1726 as more favorable, and the two years 1727 and 1728 as depressed, though less severely than 1722. T h i s period has a rather special significance in Pennsylvania history since it was out of the conditions of 1722 that the first controversy " P r o u d , Robert, The History of Pennsylvania, Vol. II, pp. I J O - I J I . ' G o r d o n , Thos. F., The History of Pennsylvania, pp. 184-185.

WHEAT,

FLOUR,

AND

BREAD

11

over the issue of paper currency brought about a scheme laid before the Assembly of Pennsylvania in the end of 1 7 2 2 and enacted into law for the issue of bills of credit in March 1 7 2 3 . At the same time produce was made a legal tender in payment of debts, interest rates reduced from 8 to 6 per cent, and the value of coin raised, according to Trego, by 25 per cent.7 By the end of the cycle exactly the same complaints that the trade in English goods was "overdone" 8 and the supply "abundant," 9 that payments were "slow and bad" and that money was "scarce," were being used to bring about a re-emission of bills of credit and a further issue. In the rise and decline in the twenties, wheat and flour seem unusually out of line with each other, since the upswing in flour began before that of wheat and continued to mount after wheat prices turned downward. T h e explanation is in crop and milling conditions. T h e rise in wheat was rapid in the spring of 1 7 2 4 , but by J u l y , Baynton was writing to Nisbet: " W e have had a prodigious crop. With the old wheat that is left there will be so great a quantity that in the months of November and December flour must of necessity be very cheap to what it is now." 1 0 Instead, the "extraordinary drought" 1 0 of the end of the summer prevented the grinding of grain and, by November, flour was "as dear here as has been known for some years past." 1 1 In 1 7 2 5 and 1 7 2 6 flour prices went to still higher points whereas wheat turned downward after April 1 7 2 5 when "several vessels loaded to Spain and Portugal." 1 2 At the completion of the cycle in 1 7 2 8 wheat and flour were again out of relation to each other, but this time wheat was relatively high by reason of special conditions within the colony. " T h e reason why grain is so scarce," Powel wrote, " i s our last winter began early and continued extreme sharp and a late spring so that not one farmer in twenty had much above twothirds fodder and therefore ground all their wheat to get the coarse ' T r e g o , Charles B., A Geography of Pennsylvania, p. i 30. "October 4, 1 7 2 8 , Samuel Powel, J r . to T h o m a s Foster, E n g l a n d ; to T h o m a s Plumsted, L o n d o n ; A p r i l 9, 1 7 2 2 , Isaac Norris to J o h n Askew, London. " M a y 1 6 , 1 7 2 6 , Isaac Norris to J o h n Askew, L o n d o n ; November 28, 1 7 2 7 , Samuel P o w e l , J r . , to Robert W i l l a n , L o n d o n ; December 8, 1 7 2 7 , to T h o m a s Plumsted, London. 10 J u l y 30, 1 7 2 4 , Peter Baynton to Alexander Nisbet, South Carolina. 11 November 26, 1 7 2 4 , Peter Baynton to Alexander Nisbet, South Carolina. " A p r i l 1 7 , 1 7 2 5 , Isaac Norris to Richard Miles and Co., Madeira.

PRICES IN COLONIAL

12

PENNSYLVANIA

PER CENT

C H A R T I — M O N T H L Y RELATIVES OF W H O L E S A L E PRICES

(Base—Monthly

WHEAT,

FLOUR,

AND

BREAD

13 PER C E N T

OF W H E A T A N D F L O U R IN P H I L A D E L P H I A , I 7 2 0 - 1 7 7 5

Average, 1 7 4 1 - 1 7 4 5 )

14

PRICES IN COLONIAL

PENNSYLVANIA

C H A R T I — M O N T H L Y R E L A T I V E S OF W H O L E S A L E PRICES OF

(Base—Monthly

WHEAT,

FLOUR,

/fiVD

15

BREAD PER CENT

W H E A T AND F L O U R I N P H I L A D E L P H I A , I 7 2 0 - 1 7 7 5 ,

Average, 1 7 4 1 - 1 7 4 5 )

Concluded

16

PRICES

IN COLONIAL

PENNSYLVANIA

stuff for the cattle." 1 3 This explanation would seem to account for the fact that the downward movement in wheat prices was over by January 1 7 2 8 , while those of flour and bread sagged until April. T h e movements in prices of bread were less marked than those of wheat and flour. It was not until after March 1 7 2 4 that the index of bread prices started to rise. B y March 1 7 2 7 it had advanced only 24.4 per cent compared with increases of 59.2 per cent from low to high in flour and 70.0 per cent in w h e a t . " T h e contraction in the price of bread was even less than its rise and, like that in flour prices, was completed in April 1 7 2 8 . T h e next swing in these commodities was from 1 7 2 8 to 1 7 3 1 . It started at a higher level than the previous one and in flour and bread reached a higher peak in 1 7 2 9 or 1 7 3 0 than that of 1 7 2 6 or 1 7 2 7 , but declined in 1 7 3 1 to a point lower than at any other time in the decades of the twenties or thirties. T h e rise in the prices of wheat in the cycle which lasted from February 1 7 2 8 to J u l y 1 7 3 1 was moderate. B y J u l y 1 7 2 8 the price of wheat had advanced from 3 shillings to 3 shillings 9 pence per bushel. This rise is explained in a letter: " W h e a t is just now so scarce . . . nor do I believe there is enough wheat in the whole province to load another ship." 1 6 In the fall of 1 7 2 8 , prices receded because the crop which was harvested before the close of J u l y was "the best as well as much the largest we have ever had." 1 6 In the following year, after a winter which was long and tedious with the river fast with ice for two months, 17 prices of wheat rose to an erratic peak of 4 shillings 4 pence in June. T h e arrival of ships in the spring of 1 7 2 9 caused an increase in price which appeared unwarranted to Powel. H e wrote to Simpson in London that the price of wheat was rising because the captains of the English ships "are so indiscreet as to bid on one another until they have got it up to 3 shillings 6 pence and for anything I see they will 13 May 16, 1728, Samuel Powel, J r . to John Simpson, London. "Flour is much plentier and bears no manner of proportion in the price [of wheat] being now about 9 shillings 6 pence to 9 shillings 9 pence per hundredweight." " T h e expansion in wheat was from June 1 7 2 3 to April 1 7 2 5 , and in flour from April 1 7 2 3 to October 1726. " J u n e 26, 1728, Samuel Powel, J r . to John Simpson, London. " A u g u s t 6, 1728, Samuel Powel, J r . to John Simpson, London. 17 February 7, 1729, Samuel Powel, J r . to David Barclay, London.

WHEAT,

FLOUR,

AND

BREAD

17

still run it higher, though they'll not get one bushel more for so doing, there being wheat enough to load five times the vessels intended and after that to grind for our West India trade." 1 5 Before the close of the month Powel had occasion again to complain that the farmers assumed that the price of wheat would advance whenever a vessel from Europe was being loaded. 1 9 In the latter part of the year the usual price was 3 shillings 8 pence, which was much higher than at the same time in the previous year. Besides the factors connected with crops and shipping which had affected prices, a third factor was added in that the colony was augmented in the summer of 1 7 2 9 by immigrants from both Germany and Ireland. As early as August it was realized that the " d a i l y " arrivals of Irish settlers would affect the prices of grain for one year at least, because many were coming too late in the season to raise crops.20 B y December 1 7 2 9 merchants were writing to their correspondents that the influx of Irish would greatly lessen the exportation of grain for spring trade. 21 Added to the increased demand at home was the fact that the crop of 1 7 2 9 was only two-thirds of a normal yield. 21 Whether or not the influx of settlers to the counties adjacent to Philadelphia greatly increased the marketable supply of grain, it is clear that wheat prices dipped sharply as soon as the new crop of 1 7 3 0 — " T h e greatest crop that ever was raised in Pennsylvania" 2 2 — began to come to market in September. T h e price of wheat was sustained through November although at a lower level than in the fall of the two previous years. This stability can be attributed to the presence of many vessels in the port of Philadelphia, 22 coupled with the usual reactions of the farmers when they knew that ships were anxious to clear from the port before the river was blocked with ice. With the closing of the season, the price dropped sharply. Farmers and traders did not experience, for nearly four years, wheat prices as high as those which had prevailed in the first eight months of 1 7 3 0 . T h e decline which started in September 1 7 3 0 lasted ' " M a r c h i , 1 7 2 9 , Samuel Powel, J r . to J o h n Simpson, London. " March 29, 1 729, Samuel P o w e l , J r . to J o h n Simpson, London. " August 28, 1 7 2 9 , Samuel P o w e l , J r . to J o h n Simpson, London. 21 December 1 1 , 1 7 2 9 , Samuel P o w e l , J r . to T h o m a s H v a m , London. ** October 1 5 , 1 7 3 0 , Samuel P o w e l , J r . to T h o m a s H y a m , London.

18

PRICES IN COLONIAL

PENNSYLVANIA

C H A R T I I — M O N T H L Y R E L A T I V E S OF W H O L E S A L E

(Base—Monthly

WHEAT,

P R I C E S OF B R E A D I N P H I L A D E L P H I A ,

Average, 1 7 4 1 - 1 7 4 5 )

FLOUR,

1720-1775

AND

BREAD

20

PRICES

IN COLONIAL

PENNSYLVANIA

until J u l y 1 7 3 1 . Such low prices of wheat as were quoted in midsummer of 1 7 3 1 occur at no other point in our records of the period. T h e quotation per bushel of wheat in J u l y 1 7 3 1 was little more than half that of August 1 7 3 0 . Our index declined in these twelve months from 1 2 5 . 0 in J u l y and August 1 7 3 0 to 67.9 by J u l y 1 7 3 1 , or from 4 shillings a bushel to 2 shillings 2 pence. T h e prices of flour from 1 7 2 8 to 1 7 3 1 did not always move with those of wheat. This was especially true in April and M a y 1 7 2 9 when, although wheat prices held at a high level, those of flour fell lower than they had been in the previous year. Beginning in June, however, flour began to advance and with but few minor recessions reached a peak, in August 1 7 3 0 , slightly higher than that of 1 7 2 6 . This rise in flour is related in part to the sustained and increasing prices of wheat and perhaps even more to the influx of immigrants. This conclusion is strengthened by the fact that the price of bread in the summer of 1 7 2 9 was not as low as it had been in the previous year. B y November 1 7 2 9 bread was dearer than it had been in 1 7 2 7 . Bread remained relatively high during the next year and did not decline substantially in price until early in 1 7 3 1 . Flour, however, had fallen sharply in price in September, but, like wheat, it held at a moderately high level during the autumn of 1 7 3 0 . T h e end of the price decline came in the same month of 1 7 3 1 in flour and wheat and only two months later in bread prices. T h e character of the decline in wheat and flour prices and the suddenness with which changes in the direction of price movements were felt is well illustrated by merchants' comments at the end of this period. In 1 7 3 0 Norris was writing, " F l o u r is very dear with us, being bought at 1 1 shillings 3 pence to 1 1 shillings 6 pence"; 2 8 on December 5, 1 7 3 0 he wrote, " F l o u r is fallen within a few days very considerably," 24 while on December 28 Powel commented, " F l o u r is now cheap . . . 8 shillings per hundredweight." 25 B y March of the following year the tone of the letters became more pessimistic so far as the domestic economy was concerned 5 then Powel concluded, " F l o u r and other provisions are at present so low [here] that they can hardly sell to a

November 7, 1 7 3 0 , Isaac Norris to Robert Harris, Boston. December 5, 1730, Isaac Norris to K . Townsend. "December 28, 1 7 3 0 , Samuel Powel, J r . to Thomas Foster, England.

34

WHEAT,

FLOUR,

AND

BREAD

21

[a] loss in the West Indies." 26 Knowing that the end of this period of price decline did not come until J u l y 1 7 3 1 , we are prepared for the statement of Norris in June that "bread and flour are plenty and cheap with us and likely to continue so all this year." 2 7 Comments about wheat prices from November 1 7 3 0 , when correspondents learned that "wheat is much cheaper with us," 28 to J u l y 1 7 3 1 , when they were warned that "wheat has started considerably and flour will," 2 9 were of the same type as those about flour. T h e price of bread declined abruptly, especially in comparison to its previous sluggish movements. By September 1 7 3 1 it was 25.5 per cent below its peak in 1 7 2 9 and even 8.9 per cent lower than in April 1 7 2 4 . It was not until 1 7 4 4 that bread was again as cheap as in 1 7 3 1 . From 1 7 3 1 to 1 7 3 6 there was another complete swing in price. At the peak of this swing in both wheat and bread, prices topped the peaks of 1 7 2 9 . Flour, however, failed to rise as high as it had in the previous swings. T h e decline in prices, which was general from 1 7 3 5 to 1 7 3 6 , was checked before they dropped as low as the depths of I73IT h e expansion phase of this movement, which lasted from 1 7 3 1 to 1 7 3 5 , began with an abrupt spurt in prices. In the summer of 1 7 3 1 Powel informed his London correspondent, " O u r last crop proves good and we have no expectation of the prices of wheat or flour rising much." 30 T h e merchants did not foresee that before the end of the next month it would be difficult to procure flour or that the price would "rise here every day." 3 1 E a r l y in November flour was "still difficult to be had." 3 2 It was evident that "fresh flour" was slow in coming to market, but it began to "come in" at a " v e r y dear" price by the middle of the month. 33 Another merchant attributed the sudden rise to the number of ships in port, which may have been attracted by the extraordinarily low prices early in the year: " T h e price of wheat and flour is very suddenly M

March 25, 1 7 3 1 , Samuel Powel, J r . to Lawrence Williams, London. ~n June 2, 1 7 3 1 , Isaac Norris to John Masters. • " N o v e m b e r 7, 1 7 3 0 , Isaac Norris to Robert Harris, Boston. " J u l y 22, 1 7 3 1 , Isaac Norris to Gerrish and Harris, Boston. " August 2, 1 7 3 1 , Samuel Powel, J r . to Thomas H y a m , London. 31 September 20, 1 7 3 1 , Isaac Norris to Gerrish and Harris, Boston. November 8, 1 7 3 1 , Isaac Norris to Gerrish and Harris, Boston. 11 November 1 7 , 1 7 3 1 , Isaac Norris to Gerrish and Harris, Boston.

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started here, not by any encouragement from abroad, but partly by the forwardness of some of our traders, who buy with other men's money, and partly by the great quantity of ships here. W h e n they have done we expect it may fall again." 34 It is in a letter from L o g a n in September 1731 that we find the most well-rounded description of the combination of forces which gave such an impetus to the rise in prices. " A few weeks before," he wrote, "these commodities went a-begging for buyers, flour at 7 shillings 6 pence per hundredweight and bread proportionately. But a little before a drought set in which continuing dried up almost every mill in the country so that no fresh flour could be ground. A t the same time more shipping arrived here to be loaded with these commodities than I have ever known." 3 5 In the spurt of prices at this time, wheat advanced from 2 shillings 2 pence a bushel to nearly 3 shillings 1 penny; flour from 6 shillings 9 pence to slightly more than 10 shillings a hundredweight of 112 pounds, while middling bread advanced only from 11 to 12 shillings a hundredweight. In 1732 prices tended to be about midway between the high and low prices of 1 7 3 1 . A flurry in the fall of 1732 raised prices slightly and provoked such comments as, " T h e difficulty is at this time very great to procure fresh flour,"36 and, " I t is much more difficult to procure a load of that [wheat] than bread and flour and I expect the price will be advancing all this fall"; 3 7 and, " A l l sorts of goods suitable for the European market are and have been for some time in more demand than usual. There are many buyers which hath made your cargo somewhat dearer." 3 " T h e winter of 1732-1733 was very severe. Norris felt that it " e x ceeded any we have had these thirty years." Nevertheless, he expected wheat and flour to be low. 39 T h e old crop of wheat was practically gone by June 1733 40 and flour and bread prices rose. It was expected that the new crop, which was estimated to be very large, would lower ** November 12, " S e p t e m b e r 29, "September 21, " S e p t e m b e r 28, " S e p t e m b e r 30, " M a y 4, 1733, " J u n e 4, 1733,

1 7 3 1 , Samuel P o w e l , Jr. to T h o m a s H y a m , London. 1 7 3 1 , James L o g a n . 1732, Isaac Norris to Andrew Fanueil, Boston. 1732, Samuel P o w e l , Jr. to Valentine French, St. Christopher. 1732, Samuel P o w e l , Jr. to Daniel Flexney, London. Isaac Norris to Joseph Hoar and Samuel Pike, Cork. Samuel Powel, Jr. to Daniel Flexney, London.

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the price.41 Instead, by the end of August there were so many vessels in port that prices advanced still further until they exceeded the minor peak of two years previous.42 By October, prices had dipped until they were considered low, 43 although they were somewhat higher than in the corresponding period of the previous year. The crop of 1 7 3 4 was, at first, thought to be the best ever grown and prices were expected to fall unless there was a considerable demand from outside the colony.44 A few months later, however, Powel was forced to write, "Our harvest did not prove so good as expected, the grain being small and lighter than usual. T h e price keeps up . . . and may, if a demand, still advance. Several vessels are now loading for Lisbon.'* 5 In November four ships cleared for Lisbon and one for the Azores. The peak of wheat prices in this swing of the middle thirties was reached in December 1 7 3 4 and held in the following month. During the first half of 1 7 3 5 wheat sold above 4 shillings a bushel. Flour and bread were dearest in March 1 7 3 5 . These high prices, which in wheat and bread exceeded the peaks of 1 7 2 9 , provoked comments from the merchants. Late in February 1 7 3 5 one wrote, "Wheat, flour, and bread are like to be very dear and scarce . . . most of our wheat being already sent up the Straits. Flour is 1 3 shillings and like to be soon dearer. Our West India trade will, I believe, be very dull." 4 6 Another merchant commented upon "the large demand for wheat" and reported that between October 1 7 3 4 and March 1 7 3 5 about 90,000 bushels of wheat had been exported. 47 In contrast to the approximately three and one-half years of increasing prices of wheat, flour, and bread, a shorter and less broken period of about a year and a half of falling prices followed from early in 1 7 3 5 to the summer of 1736. At the beginning of September 1 7 3 5 it was known that the crop of grain was exceptionally good and merchants were certain that it would be cheaper unless an unexpected 41

June 2 1 , 1 7 3 3 , Samuel Powel, J r . to Valentine French, St. Christopher. " A u g u s t 28, 1 7 3 3 , Samuel Powel, J r . to Valentine French, St. Christopher. "October i , 1 7 3 3 . Samuel Powel, J r . to Thomas Hyam, London. ** June 1 5 , 1 7 3 4 , Samuel Powel, J r . to Thomas Hyam, London. "October 4, 1 7 3 4 , Samuel Powel, J r . to Thomas Hyam, London. " February 25, 1 7 3 5 , John Revnell to Richard Deeble, Plymouth, England. " M a r c h 4, 1 7 3 5 , Samuel Powel, J r . to David Barclay, London.

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demand developed." There was a short-lived boom in prices at the close of that year because of news that crops in England were "like to f a i l " which proved to be false. 49 In the early part of 1 7 3 6 it was learned in Philadelphia that the preliminary form of the Treaty of Vienna had been signed. A Philadelphia merchant explained that "wheat kept up its price most of the winter till we had an account of the cessation of arms which fell it at once. It's now 3 shillings 2 pence per bushel." 80 T h e slump in wheat and flour prices in 1 7 3 6 seems to have caused less distress than was indicated by the lows of 1 7 2 8 or 1 7 3 1 in that the decline was less and the period of low prices was short. T h e crops of 1 7 3 5 and 1 7 3 6 were regarded as " g o o d , " but there was some accumulation by merchants in response to a rumor of war in Europe. T h e next movement was not uniform among the commodities. T h e swing in prices of flour extended from August 1 7 3 6 to M a y and June 1 7 4 0 , that of bread from February 1 7 3 7 to M a y 1740. T h e movement in the prices of wheat differed more. Starting upward in M a y 1 7 3 6 , it completed its swing in October 1 7 3 8 . Although wheat prices were low in 1 7 3 9 and the first part of 1740, there was a slight but discernible upward tendency. In the case of flour, the cycle from 1 7 3 6 to 1 7 4 0 was approximately the reverse of the one from 1 7 3 1 to 1 7 3 6 in that the rise from 1 7 3 6 to 1 7 3 7 was short while the decline from 1 7 3 7 to 1 7 4 0 was long and lowered the price of flour to within 7.4 per cent of the minimum price of 1 7 3 1 . Bread also showed a reverse, the shorter part of the cycle being the upswing. Wheat, however, moving through a shorter cycle than its related commodities, had equal periods of rise and of fall. In the fall of 1 7 3 6 conditions were very similar to those of 1 7 3 1 . Merchants were writing, " W h e a t is like to be plenty. It is now at about 3 shillings and like to continue thereabouts if no more demand than usual." 5 1 B y October, wheat sold at 3 shillings 6 pence and kept " September 9, 1 7 3 5 , Samuel Powel, J r . to Thomas Hyam, London. " N o v e m b e r 2 1 , 1 7 3 5 , Samuel Powel, J r . to Thomas Hyam, London. " T h e advice of your crop being like to fail soon started the price of wheat here . . . I expect it will soon fall since your crop was like to be so good." " M a r c h 1 3 , 1 7 3 6 , John Reynell to Richard Deeble, Plymouth, England. "September 28, 1 7 3 6 , Samuel Powel, J r . to Thomas Hyam, London.

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well above 3 shillings during the first part of 1 7 3 7 . In the summer, prices advanced rapidly in spite of the large crop. T h e peak of prices in J u l y of 4 shillings 6 pence was the highest price at which wheat sold in the decade of the thirties. At the close of the harvest Powel reported to London, " T h e harvest is got in very well, the grain very good and the crop large; yet it seems as if the price would keep up all this year for we are like to have a great many vessels and they'll be hurrying out before winter and beside we are all big with the expectation of great markets abroad.'*52 T h e shipping for this year indicates that there was a demand unusual enough to account for an advance in the prices of Philadelphia produce. Both the entrances to and clearances of vessels from the port in 1 7 3 7 were above those of any other year in the decade of the thirties. Flour rose from 1 7 3 6 to 1 7 3 7 even more extremely than wheat. In J u l y 1 7 3 6 it sold for as little as 8 shillings 4J/2 pence, but by October had increased to 1 1 shillings a hundredweight. Its price also was well sustained during the winter and receded only slightly in the spring. Its decline was checked at 1 0 shillings and in M a y it was "rising, being many buyers." 43 At the peak of flour prices in August it sold for 1 4 shillings 2 pence a hundredweight. T h e movements in the prices of bread continued to lag behind those of wheat and flour. Not until February 1 7 3 7 did they start upwards and it was more than a year later that the peak was reached. T h e price of bread held at a relatively stable height from November 1 7 3 7 to September 1 7 3 8 , with the highest prices in March, April, and September 1 7 3 8 . B y this time the prices of wheat and flour were declining. In August 1 7 3 7 the wheat crop was found to be even better than had been anticipated and the price declined slightly. 54 It did not fall below 4 shillings 3 pence in the rest of that year, first, because of the embargo on grain in Virginia and Maryland, 5 5 and second, because of the number of vessels in port.56 From the records of shipping it can be seen that K

J u l v 28, 1 7 3 7 , Samuel Powel, J r . to T h o m a s Hvam, London. " M a y 1 6 , 1 7 3 7 , Samuel Powel, J r . to T h o m a s H y a m , London. August 1 2 , 1 7 3 7 , Samuel Powel, J r . to Thomas Hyam, London. " S e p t e m b e r 7, 1 7 3 7 , Robert Ellis to Peter H a r r y , Charleston, South Carolina. 16 November 2, 1 7 3 7 , Isaac Norris to Storke and Gainsborough, London.

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during September and October 47 vessels entered the port of Philadelphia but only 32 cleared. In the eight months previous 10 more ships had come into the port than had left it. T o the minimum of 25 which must have been in the harbor, there should be added the number of new ships built during the year, which probably approximated 25. T h e excessive number of vessels in port at the beginning of November can also be judged from the fact that while 39 other vessels entered during November and December, 81 cleared during the same months. T h e high prices of the latter part of 1737 discouraged some traders. One exporter wrote, " M y reason . . . in not sending you some bread and flour before is because it is too dear here . . . I was afraid I should lose money by i t . " " T h e next year prices declined rapidly. By October wheat sold at 2 shillings 6 pence, a drop of 2 shillings from the peak of the previous year. Trade had been dull in the summer of 1738. T h e desperation of the merchants is indicated by the comment, " . . . what you are to do with the sloop after her arrival I know not, for every thing is very dull here." 58 T h e dullness of trade which discouraged importation likewise diminished the exports. This factor, coupled with a large crop in 1738, accounted for the large stocks of wheat in the colony. It is not as surprising that wheat dropped so low in 1738 as that flour and especially bread did not fall as sharply. T h e situation confronting the merchant shippers was summarized by Powel: " O u r harvest is lately all gathered in and 'tis supposed that we have now near twice the quantity of wheat, and well housed, that we ever had in one year, which must reduce the price of that as well as bread and flour considerably." 69 T h e lowest price paid for flour in this year was 9 shillings a hundredweight, slightly more than the lowest price of 1736. T h e price of bread was well sustained, its lowest price in 173 8 being quoted above the highest price of 1736. W h e a t usually sold for less than 3 shillings in 1739. T h e average price of the year was below that of 1738 although there is no record of as low a price as that of September and October 1738 being paid " N o v e m b e r 2, 1 7 3 7 , Robert Ellis to James Osmond, Charleston, South Carolina. " J u l y 2$, 1738, Robert Ellis to Peter Harry, Charleston, South Carolina. " A u g u s t 10, 1738, Samuel Powel, Jr. to Benjamin and William Bell, London.

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the next year. F l o u r and bread continued to decline. T h e crop of 1 7 3 9 was not as g o o d as the last, but as late as J u l y , w h e n the harvest had been completed, P o w e l was still able to write, " A pretty deal of our last year's crop yet remains so that we can spare a great deal." 6 0 Prices also were low in 1 7 3 9 because of the uncertainty as to what was happening in E n g l a n d during its embargo.®1 In the spring of 1 7 4 0 flour completed its decline f r o m the peak of 1 7 3 7 , selling in January, M a y , and June at 7 shillings 3 pence. N o t since 1 7 3 1 had flour been so low. Bread also completed its contraction in M a y 1 7 4 0 at its lowest price after 1 7 3 1 . T h e news of the outbreak of the war between Great Britain and Spain, which was proclaimed at the court house in Philedalphia on A p r i l 14, 1740, and the organizing of the expedition against the Spanish W e s t Indies affected prices in Philadelphia. A t first, as often happens in such circumstances, the increase in freight rates and the scarcity of ships depressed the prices of country produce. P o w e l wrote in June, " I note w h a t thou says of the difficulty in trade occasioned by the war. W e are also pretty much affected here with [ i t ] . W a g e s are greatly risen here and freights also here; I 4 d sterling per bushel to Lisbon is readily g i v e n , £6 per ton to Jamaica, and v e r y difficult to get vessels to carry off our produce which still continues low." 9 2 Before fall there was great activity in preparing supplies for the expedition. E a r l y in October P o w e l was forced to write to one of his L o n d o n correspondents, " I did all in m y power towards securing a cargo of bread and flour for her which at the time I received thy letter was more difficult than any other season of the year, being just after harvest when the w h o l e country are busy in plowing and sowing their grain for the ensuing crop and cannot for this reason bring any quantity of wheat or flour to market 'til that is done. A n d besides this, e v e r y baker in the Province [is] engaged for all the bread they could make for the transports and also for supplying the fleets, etc., at Jamaica w h e r e a prodigious quantity is gone this summer on that account, I suppose near 50 sail f r o m hence." 6 * A month later he re" July 26, 1739, Samuel Powel, Jr. to Thomas Hyam, London. " S e p t e m b e r 28, 1739, Samuel Powel, Jr. to David Barclay and Son, London. " J u n e 12, 1740, Samuel Powel, Jr. to Thomas Hyam, London. " O c t o b e r 8, 1740, Samuel Powel, Jr. to Thomas Hyam, London. In that year J J vessels cleared for Jamaica.

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ported to another correspondent that because of the continued engrossing of " a l l the bread to ship for the King's use to Jamaica" its price held at 1 3 shillings when otherwise it would have been about 1 0 shillings a hundredweight." T h e rise in prices persisted until in June 1 7 4 1 wheat, flour, and bread were higher than at any time in the 1720's or 1730's. The advance was especially marked in the prices of bread which, in the previous swings, had never risen to such heights as those of wheat and flour. In this swing, however, the relative price of bread actually exceeded those of wheat and flour. T h e winter of 1 7 4 0 to 1 7 4 1 was especially severe. From about the middle of December to the middle of March no ships were able to enter or leave the port.65 Prices advanced during this cessation of trade because of the local demand which arose out of the severity of the winter and the shortness of the previous crop. A letter from a Philadelphia merchant sent to London by one of the earliest packets in the spring of 1 7 4 1 described the situation: " O u r last crop of wheat did not prove so large as we expected. As it is much lessened this winter amongst ourselves more than usual, fodder has been so short throughout the whole province that abundance of wheat and Indian corn has been expended to keep the cattle alive and yet some thousands are lost and many farmers are now obliged to buy their bread corn. . . . I am of opinion provisions of all kinds will be very scarce and dear before next harvest. . . . Our governor and council have prohibited the exporting of any kind of provisions to any place but E n g land, Ireland, or the English colonies." 66 There was no reaction in the prices of products to the discussion of the Corn Bill in England although it was mentioned as early as March in the comment: " I note what thou says about the bill depending in Parliament. H a d it passed as first carried in it would have been of very ill consequence to all North America, I mean the E n g lish part of it, as one government so much depends on another. The trade of New Jersey depending chiefly on us and so does a great deal of Maryland, and New England must have been in great distress for they never can raise half their bread corn . . . and the Islands all except Jamaica must have suffered greatly if they could have at all " N o v e m b e r 22, 1740, Samuel Powel, J r . to Thomas Hyam, London. " M a r c h 16, 1 7 4 1 , Samuel Powel, J r . to Thomas Hyam, London. " M a r c h 16, 1 7 4 1 , Samuel Powel, J r . to Thomas Hyam, London.

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subsisted. . . ." 6T Later it was pointed out that it would "affect our province if it should pass or prohibit our trade to Portugal which we look on as very valuable and as it is the chief means by which we pay our debts in England they would feel it too." 68 During the seven years from 1 7 3 4 1 0 1 7 4 0 , as many as 1 5 8 vessels had cleared from this port directly for Portugal, most of them bound for Lisbon. In addition the trade of Pennsylvania included during that time the departure of 36 ships to the Portuguese islands of M a deira and the Azores. That this trade not only gave a large market for domestic products but also provided a means of transmitting balances to England is evidenced by the fact that only 1 0 2 vessels from Portugal entered the port of Philadelphia in seven years. A p proximately one-third of the trade might be said to have facilitated the settlement for British imports. As the trade with the Portuguese islands more nearly balanced, it was clearly the trade with the mainland of Portugal which was most important in remitting payment to Great Britain. In spite of this proposed restriction of trade it appeared to the shippers that the late spring would leave very little grain to export. In the same letter Powel added, " W e have hardly yet had one warm day. Abundance of our wheat fields are plowed up and sown with summer grain and I can talk with nobody that expects above half a crop." 68 From J u l y 1 7 4 1 to M a y and June 1 7 4 4 prices of wheat, flour, and bread tended to decline. Wheat did not fall to as low a level as it did in 1 7 3 1 j flour declined to the price of the low of 1 7 3 1 j bread dropped further, selling in 1 7 4 4 at the lowest price in Colonial years. After the harvest of 1 7 4 1 the prevailing prices were lower than in June. Nevertheless the price of wheat tended to hold above 4 shillings a bushel. There were many ships in port, but there was " a very dull prospect of their leaving that f a l l . " It was difficult to secure a cargo because the crop had been small though "good in kind."™ B y November 1 7 4 1 it was known that there was "great plenty of grain in E u r o p e " and Powel felt " t h e supplies for forces " March 25, 1 7 4 1 , Samuel Powel, J r . to Thomas Hyam, London. * May 2, 1 7 4 1 , Samuel Powel, J r . to Thomas Hyam, London. " M a y 2, 1 7 4 1 , Samuel Powel, J r . to Thomas Hyam, London. October 22, 1 7 4 1 , Samuel Powel, J r . to Thomas Hyam, London.

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in America must chiefly come from your side this year" since the last crop here was "very scant" and "everything of our country growth keeps high." 7 1 T h e demand in December was "much slackened." 72 By this time wheat was selling at 4 shillings a bushel in contrast to 5 shillings 3 pence in June, flour had dropped from 1 5 shillings 3 pence to 1 2 shillings 9 pence, and ship bread from 19 shillings 9 pence to 1 5 shillings. Prices declined still further in 1742. The crop of that year was large. Powel commented that about three years before, in 1 7 3 9 , when he considered that the exports were large, there had been shipped "350,000 bushels of wheat and grain besides 50,000 barrels of flour and this year [ 1 7 4 2 ] I expect we may spare a good deal more." 73 Later in the same month Hockley, writing to Thomas Penn, informed him that "the harvest is all got in exceedingly well and the greatest crop that has been known, so that wheat and flour is expected to be very low this Fall unless some considerable orders should be sent from home for exportation, but as they have had a fine harvest in England perhaps that mayn't be the case and then I believe we shall be able to ship it oif much cheaper from hence." 74 By October the outlook was so bad that although wheat was then selling at 3 shillings 3 pence Powel thought that it might, by the next spring, be as low as 2 shillings 6 pence.75 In M a y 1 7 4 3 wheat did sell as low as 2 shillings 7 pence, but slightly higher prices prevailed in the fall, especially for flour. Wheat advanced less rapidly in price. Early in J u l y it was said, "Our farmers are now in the height of their harvest and a fine crop they have and as fine weather as can be wished for." 76 The highest price reached in the fall for wheat was 3 shillings and the usual price was less. Flour, however, which had declined to nearly 7 shillings 9 pence in April, rose approximately 2 shillings. The reason for this rise is explained in another letter to an English correspondent: " W e have had a very long dry spell which has stopped most of our water mills from grinding " November 14, 1 7 4 1 , Samuel Powel, J r . to David Barclay and Son, London. "December 7, 1 7 4 1 , Samuel Powel, J r . to Robert Purchase, Barbados. " J u l y 7, 1 7 4 2 , Samuel Powel, J r . to Thomas Hyam, London. " J u l y 24, 1 7 4 2 , Richard Hockley to Thomas Penn, London, Pennsylvania Magazine of History and Biography, Vol. X X V I I I , 1904, p. 30. ''October 26, 1 7 4 2 , Samuel Powel, J r . to Thomas Hyam, London. " J u l y 8, 1 7 4 3 , Samuel Powel, J r . to Thomas Hyam, London.

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and has so advanced the price of flour which keeps up about 9 shillings 6 pence to 1 0 shillings per hundredweight. T h e price of wheat is 2 shillings 9 pence and we have abundance in the province without any prospects of a market to carry it to." 77 T h e price of bread, which had fallen sharply from June 1 7 4 1 to M a y 1 7 4 3 , tended to remain stable and even to rise for the next ten months. T h e decline in prices of wheat after June 1 7 4 1 was halted in M a y 1 7 4 4 when wheat was quoted at but slightly above 2 shillings 3 pence a bushel. Flour and bread completed their contraction a month later when flour sold for the same low price it had reached in 1 7 3 1 and bread was at its minimum price of the Colonial period. It is significant that news of the entry of France into the war, which had been expected in Philadelphia as early as April, 78 arrived on June 10, 1744/9

Before considering the cycles in the prices of wheat and wheat derivatives which occurred in the years 1 7 4 4 to 1 7 7 5 , three of which were major disturbances to prices, some contrast between the 25 years before 1 7 4 5 and the 30 years which followed should be made. In the early period, fluctuations occurred around a low average level of prices. In the last years of the decade of the forties prices moved up to a new zone, and despite variations, showed no tendency to return to the level which had prevailed in the first 25 years of our record. Approximately the same dividing line may be used to date a significant shift in the relation of wheat and flour prices to each other. Before 1 7 4 4 the price swings in wheat tended to complete a cycle in a shorter time than those in flour. In the later years the number of months in the complete cycle tended to be longest in wheat. Before 1 7 4 4 an upward movement of prices was perceptible first in wheat while flour and bread normally felt the effect a few months afterwards. After the middle of the decade of the forties, flour seemed to be the controlling force in disseminating the price movement first to bread and later to wheat. So marked is this change that in the three cycles after 1 7 5 7 flour led wheat by five to eleven months in up" November 1 5 , 1 7 4 3 , Samuel Powel, J r .to Thomas Hyam, London. " A p r i l 18, 1744, Samuel Powel, J r . to David Barclay and Son, London. " J u n e 12, 1744, Samuel Powel, J r . to Thomas Hothersall, Barbados.

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swings, and bread, which in every instance in the first part of the eighteenth century was slow to advance, led wheat by four to seven months. Doubtless these changes in price behavior are connected with the progress of the flour-milling industry and its increasing dominance in exports. What is important for the present discussion is that, quite apart from the fact that the whole level of prices stated in the currency of the colony was stepped up to a new level, a condition which for the time being we are ignoring, there was in the latter part of the Colonial period a different type of price impetus which made flour dominant instead of wheat. Prices of wheat and its derivatives continued at a low level in 1 7 4 5 . In fact from 1 7 4 3 to 1746 these commodities were considered cheap. The crops in these years were plentiful, but the merchants were hard pressed to find an adequate market. 80 In September 1 7 4 4 Powel suggested that it might be well to ship grain to Europe, writing, "Wheat and flour are cheap here and like to continue so; and if any call should be in Europe, . . . it may be worth fetching it from hence. . . . T h e price of wheat here is from 2 shillings 3 pence to 2 shillings 6 pence and flour 7 shillings 3 pence to 7 shillings 6 pence per hundredweight. I mention this supposing the war or a short crop or both may perhaps make an alteration in the price of grain etc." 81 Before the close of the year, flour was " a drug" and there was an "abundance" of wheat on hand, but "no vessels to carry it away." 8 2 The recurring mention of the scarcity of vessels is not to be wondered at if Powel's statement is to be accepted that " w e have [had] taken and lost since the beginning of the war with Spain near one hundred sail and now have but about thirty belonging to this port." 83 A few months later he again commented, " O u r harvest is now fully in and our farmers are of the opinion that we never had a better, both for quality and quantity, and I think wheat and flour must be cheap, both for the abundance we have and that our vessels are reduced to about one-third of the number we had belonging to the port at the beginm

J u l y 30, 1744, Samuel Powel, J r . to Thomas Hyam and Son, London. "September 1 3 , 1744, Samuel Powel, J r . to Thomas Plumsted, London. " December 2 1 , 1744, Samuel Powel, J r . to Thomas Hyam and Son, London. " M a y 28, 1 7 4 5 , Samuel Powel, J r . to Scott, Pringle and Scott.

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ning of the Spanish W a r , since when we have had lost and taken, that we know of, above sixty sail. A n d as seamen are very scarce and all the materials we must import f o r ship-building come so very dear that we have no ship-building and so most of our produce is carried off by vessels, to us foreigners, which will in a manner ruin us in a little time if the war continues. At least it must make our city grow very poor." 84 It appears that during the forties trade in bread and flour with the Carolinas became especially important. This is evidenced by a letter to London in which it was mentioned that "bread and flour have done well from hence to Carolina almost all the war." 8 4 I n describing many of the trading customs of Philadelphia, particularly the methods he used in procuring flour and the number of transactions necessary in buying the wheat and grinding it, P o w e l wrote late in J u n e , " O u r farmers were all busy about their harvest which they cannot leave to carry their wheat to the mills and so the millers could not at this time have so good a choice of wheat as at others which makes the getting the best flour more difficult at a short warning as this was. A n d what added to the difficulty was a brisk demand and rising market which yet continues and any flour that will but just pass the Brand will yield 9 shillings 6 pence or more. I have employed most of our noted millers, except those who live remote, and have given them all the encouragement I could, both by enjoying a constant call as well as a more than common price. . . . I shall give some of the millers directions to collect some choice wheat for the purpose, which I reckon is the most material toward getting such flour as you want. . . . O u r harvest is now pretty generally in and it's said to be as fine a one as we ever had both for quantity and quality, so no doubt we shall have wheat and flour very cheap in two months or thereabouts unless any extraordinary call should happen." 8 6 T h e r e was a slight improvement in the prices of wheat and flour during August 1 7 4 5 because of "some accidental calls and one of them for Louisburg." 8 7 T o this extent the great drive of the colonies of ** J u l y 29, 1 7 4 5 , Samuel Powel, J r . to D a v i d B a r c l a y , London. " February 1 4 , 1 7 4 5 , Samuel P o w e l , J r . to Benjamin and William Bell, London. " J u l y 1 1 , 1 7 4 5 , Samuel Powel, J r . to Gabriel M a n i g a u l t , South Carolina. " A u g u s t 1 6 , 1 7 4 j , Samuel Powel, J r . to Gabriel M a n i p a u l t , South Carolina.

34

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N e w E n g l a n d against the French in Cape Breton affected prices in Philadelphia. Still later there was another spell of " v e r y dry weather so that most of our mills have done nothing for want of water." 8 8 Several weeks later there had still been " v e r y little rain." 8 9 A s a result of these factors the price of flour was better maintained than that of wheat, of which there was an abundance. In the spring of 1 7 4 6 it was expected that when the vessels which had been in port over the winter sailed, the prices of wheat, flour, and bread would decline. Powel anticipated that such a decline would be only temporary and he intended, during that period, to " l a y in IOO or 1 5 0 barrels for thee as I know flour made in the winter will keep over the summer as well as fresh made." 9 0 B y the beginning of June he was able to report that flour was rising. 81 T h e rise in 1 7 4 6 was especially marked in the price of bread, which never again in the years from 1 7 4 6 to 1 7 7 5 was as cheap as it had been from the latter part of 1 7 4 2 to the middle of 1 7 4 6 . About this time Powel encouraged Manigault to purchase Philadelphiamade bread by stating, " W e reckon ours in common exceeds the N e w Y o r k bread, but perhaps we may be partial, though I know the gentlemen of N e w Y o r k ship from hence a great deal of bread and flour every year." 9 2 Another drought in the summer of 1 7 4 6 was commented on in the middle of J u l y , when very few mills had a supply of water. 83 In August, Powel wrote in more detail, " T h e bread is fresh and new and I hope will all prove to thy satisfaction, though thou'll find all of it dearer than the last, which is owing chiefly to the extreme dry weather which yet continues so that very few mills can grind. And no person living in this country ever knew the water so low as at present. And the demand is so much greater than can be supplied that the millers and bakers do but ask and have their own price." 84 E v e n near the end of September the Carolina merchant was informed, " T h e want of rains which yet " O c t o b e r 26, 1 7 4 5 , Samuel P o w e l , J r . to Gabriel M a n i g a u l t , South Carolina. " N o v e m b e r 1 2 , 1 7 4 5 , Samuel Powel, J r . to Gabriel M a n i g a u l t , South Carolina. " J a n u a r y 8, 1 7 4 6 , Samuel P o w e l , J r . to Gabriel M a n i g a u l t , South Carolina. " J u n e 1 , 1 7 4 6 , Samuel P o w e l , J r . to Gabriel M a n i g a u l t , South Carolina. " J u n e 4, 1 7 4 6 , Samuel Powel, J r . to Gabriel M a n i g a u l t , South Carolina. " J u l y 1 6 , 1 7 4 6 , Samuel Powel, J r . to Gabriel M a n i g a u l t , South Carolina. " A u g u s t 9, 1 7 4 6 , Samuel P o w e l , J r . to Gabriel M a n i g a u l t , South Carolina.

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continues keeps the river so low that nothing can come down and it is so very dry that most of the mills in the province are incapable of grinding." 8 5 Before the close of the year both wheat and flour declined in price but still maintained a level approximately equal to the highest price of the previous year. T h e year 1 7 4 7 opened with expectations of comparatively low prices in the spring but with the prospect of scarcity prices before the close of the year. In the correspondence of Powel there is a letter dated January 13 in which he wrote in part, " I expect flour will be low in the spring as the country people are this hard winter obliged to grind a great deal of their wheat to get bran for their cattle and it may be prudent in thee to lay in a good stock early, for I apprehend after the first large quantities to market in the spring it will be scarcer and dearer than usual other years." 96 B y April his prophecy was borne out. Flour had sold for 9 shillings in February, March, and part of April compared with 9 shillings 3 pence in January 1 7 4 7 and 1 1 shillings in August 1 7 4 6 , but in the middle of April he was able to report, " F l o u r is now upon the start again. It has been at 9 shillings but we have now a call for Lisbon. Most of our twodecked vessels are going thither, which will raise the price." 97 In J u l y 1 7 4 7 flour sold at an average of 10 shillings 4 pence and London correspondents were informed, " W e have pretty many ships gone and going chiefly with flour to Lisbon." 98 At the same time it was also reported that the wet weather had mildewed the wheat to such an extent that much of it was not "worth reaping." 98 T h e result was that by October flour sold for slightly more than 1 1 shillings 7 pence a hundredweight and wheat was quoted at 3 shillings 8 pence. During the year 1748 the prices of wheat, flour, and bread soared. Part of this increase can be attributed to the short crop of 1 7 4 7 , part to the depreciated value of Pennsylvania currency, part to the greatly augmented trade as the war neared its end. In October a Philadelphia merchant wrote, " T h e r e has been a great number of vessels coming to and going from Philadelphia this last summer, a September 2 4 , 1 746, Samuel Powel, J r . to Gabriel M a n i g a u l t , South Carolina. " J a n u a r y 1 3, 1 747, Samuel Powel, J r . to Gabriel M a n i g a u l t , South Carolina. " A p r i l 1 6 , 1 7 4 7 , Samuel Powel, J r . to Gabriel Manigault, South Carolina. " J u l y 1 3 , i 7 4 7 , Samuel P o w e l , J r . to T h o m a s H y a m and Son, London.

36

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great many more than there was anytime during the war, and there will be more and more every year if there is peace."9* This statement is supported by the fact that 3 5 1 vessels cleared in 1748, or 32 more than in the unusual activity of 1740. In summary, the rise of prices started from an extremely depressed level in 1 7 4 4 and mounted steadily, except for somewhat seasonal variations, and with increasing rapidity until wheat, which had sold for barely more than 2 shillings 3 pence in M a y 1744, commanded 7 shillings 6 pence in February 1 7 4 9 ; flour, which sold for 6 shillings 9 pence in June 1744, was 21 shillings a hundredweight in November 1748 and February 1749 ; and middling bread, which was priced at 1 2 shillings 3 pence in March 1745, had risen to 30 shillings by March 1749. The descent from these pinnacles was rapid. By August 1749 wheat sold for barely more than 4 shillings 2 pence, a reduction of more than 3 shillings 3 pence in six months. In the same period flour dropped to 1 4 shillings, 7 shillings below its peak. Middling and ship bread declined less precipitously. The fall in wheat prices was completed in 1749, but flour was sustained at a relatively higher price and dropped early in 1 7 5 0 to 1 1 shillings 1 penny. This price was too low and flour prices soon rebounded but between the latter part of 1749 and the middle of 1756 the fluctuations in price were usually between 1 1 and 14 shillings. Wheat, too, had a similar period of almost stable prices with the fluctuations limited to a narrow range, except for a high price of nearly 5 shillings 6 pence in December 1749 and an extremely low price of 3 shillings 8 pence in two months early in 1754. The price of bread contracted more slowly than flour and wheat from its peak in 1749 with the result that it tended to decline until 1 7 5 3 . T h e next year prices of bread improved noticeably but in 1 7 5 5 declined still further. It is striking that in 1 7 5 0 to 1 7 5 2 merchants regarded prices as high. 100 Undoubtedly they recognized that prices in the latter part "October 1748, John Swift to Gros Bedford, London. ""Pemberton Papers: July 25, 1750, William Logan to John Pemberton in London, "Most of four small creeks and some considerable large ones are quite dry. So that very few mills can go which has risen the price of flour to 15 shillings 6 pence and as all

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of 1 7 4 8 and the first part of 1 7 4 9 were distinctly abnormal, but they did not yet recognize that the upswing which had started in 1 7 4 4 had raised these prices permanently to a markedly higher level. In contrast with the depressed prices of the middle forties, an average of 4 shillings 6 pence in 1 7 5 0 or even of about 4 shillings 3 pence in 1 7 5 1 f o r wheat appeared high. Such prices would have been fairly high even in the previous peak year of 1 7 4 1 , but in February 1 7 5 5 when wheat was 4 shillings 8 pence a bushel 101 and flour more than 1 4 shillings a hundredweight it was noted that "people complain much of dull times and a scarcity of money." 1 0 2 It is evident that the merchants were being squeezed by having to pay comparatively high for produce while at the same time the sale prices of imported goods were low. T h e volume of trade had declined severely from 1 7 5 4 to 1 7 5 5 , when military operations were going on even though war had not been declared. It declined still further in 1 7 5 6 . T h e clearances of that year were 24.4 per cent less than those of 1 7 5 4 . Some of this shrinkage was the result of a decline in the trade with Portugal, but this was a minor loss compared with the decrease in shipping to the southern colonies and to the West Indies. T h e only notable increase in shipping in 1 7 5 6 was to N e w York. In 1 7 5 6 prices of wheat, flour, and bread dropped sharply. In the last three months of that year wheat sold for 3 shillings 4 pence and 3 shillings 5 pence. During most of the next year it was quoted at 3 shillings 9 pence or less, being as cheap as 3 shillings 3 pence in November 1 7 5 7 . T h e lowest price of flour in these years was 9 shillings 6 pence in December 1 7 5 6 . T h e following year the price did not dip below 1 0 shillings 6 pence. T h e dips in prices during 1 7 5 6 and 1 7 5 7 were related to several embargoes in the port which reduced the demand for provisions during the stoppage of shipping. When the temporary restrictions were the pastures and gardens are burnt up everything is very dear in our markets." M a y 9, 1 7 5 2 , Sam Emlen, J r . , to J o h n Pemberton, "Wheat and flour high here. European goods not wanted." M a y 29, 1 7 5 2 , Sam Emlen, J r . to J o h n Pemberton, " M a n y ships in port which occasions our country produce to be very h i g h . " 101 February 1 8 , 1 7 5 5 , Joseph Richardson to John Powell, Boston. " " F e b r u a r y 1 8 , 1 7 5 5 , William Dickinson to Israel Pemberton in Charleston. South Carolina.

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removed there was a concentrated demand for produce which raised prices quickly. 103 Trade in 1756 was also somewhat dull because the market in Barbados was very inactive and few vessels were trading with the W e s t Indies, which were a large market for flour.104 T h e embargo in the spring of 1757 was severely felt. One merchant wrote near the close of June, " W e have been embargoed here near four months." 108 T h e same day another merchant wrote, " F l o u r risen to 11 shillings per hundredweight on account of the embargo being this day taken off." 106 It had sold for 10 shillings 6 pence on June 9.1"' T h e newspapers of the period listed only 5 clearances from the port between March 10 and June 23. T h e paper for June 30, three days after the embargo was raised, listed 52 clearances. T o appreciate the abnormal concentration of sailings one must realize that 14 departures in a week would usually be considered a large number. These years, troubled by the outbreak of the French and Indian W a r , were followed by years of high prices of wheat in Europe. In 1757, 1758, and part of 1759 there was extreme scarcity of foodstuffs "whereby the poor of Great Britain suffered not a little for their daily sustenance, and even persons of middling circumstances were put to a considerable additional expense." 108 As a result Parliament enacted in 1757 and reenacted twice in the next two years a prohibition of the "exportation of corn, grain, meal, malt, flour, beef, pork, bacon, from America, unless to Great Britain or Ireland." 109 T h e scarcity in Great Britain was known as early as February 1 7 5 7 , when it appeared to at least one Philadelphia merchant that produce " w i l l be high, as many orders are come from England and Ireland for both wheat and flour and for large quantities. It's my opinion we shall not have it low any time this season . . . wheat M" June 7, 1756, Joseph Richardson to John Powell, Boston; June 28, 1756, Thomas Wharton to John Carnan, M a r y l a n d ; January 13, 1757, Thomas Wharton to Gerard G. Beekman, New Y o r k . " " J u n e 17, 1756, T h o m a s Wharton to Edward Mitchell. " " J u n e 27, 1 7 5 7 , Joseph Richardson to James Maese. " " J u n e 27, 1757, T h o m a s Wharton to Gerard G. Beekman, New Y o r k . ' " J u n e 9, 1 7 5 7 , Joseph Richardson to John Powell, Boston. ™* Anderson, Historical and Chronological Deduction of the Origin of Commerce, revised by M r . Coombe (Dublin, 1 7 9 0 ) , Vol. I l l , p. J95. "* Anderson, of. cit., Vol. I l l , pp. 596-600.

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that comes to market will sell at 4 shillings and if no embargo will soon sell at 5 shillings. B y all accounts Ireland will want more than we can spare." 1 1 0 On March 1 8 , 1 7 5 8 another embargo was placed on the port 1 1 1 and was not removed until the 22nd of M a y . 1 1 2 T h i s embargo came at an opportune time from the point of view of some shippers. One Philadelphian wrote acknowledging a letter received from Jamaica in which he had been "informed of the great glut of provisions there, but as this day an embargo was laid by express orders from General Abercrombie I am in hopes our bread and flour . . . will, if [it] arrives, turn out to be a handsome profit." 1 1 3 It may be concluded that provisions would not have advanced in the Islands if the embargo had not been placed in Philadelphia. There was a slight rise in the prices of bread, reflecting the demand for supplies for the expedition to Cape Breton. 1 1 4 T h e r e was but slight improvement in prices later in the year. In J u n e one merchant shipper wrote, " W h e a t not much in demand but for the miller and sells at 3 shillings 9 pence to 4 shillings 3 pence according to quality.'" 1 5 E v e n two months later another merchant commented, " F l o u r at present is dull sale. T h e last was sold for 1 4 shillings, but cannot find any that will give it now. Ship stuff about 1 1 shillings, wheat about 4 shillings.'" 1 6 T h e upward tendency became stronger in 1 7 5 9 . B y the close of the year wheat sold at 5 shillings 6 pence per bushel and flour 16 shillings 6 pence per hundredweight. These prices held in January 1 7 6 0 , but in the following month it appeared to at least one Philadelphian that " t h e produce of this place hath kept up far beyond expectations but flour, owing to the quantity ready to come to market, . . . must f a l l . ' " 1 7 I n the remainder of 1 7 6 0 and most of 1 7 6 1 the prices of wheat and flour turned down slightly. T h e uncertain character of political and economic conditions in 110

F e b r u a r y 1 1 , 1 7 5 7 , Joseph Richardson to J o h n P o w e l l , Boston. M a r c h 1 8 , 1 7 5 8 , T h o m a s Wharton to T h o m a s Wharton, Barbados. " M a y 2 3 , 1 7 5 8 , T h o m a s Wharton to John Carnan, M a r y l a n d . 111 M a r c h 1 8 , 1 7 5 8 , J . Baynton to Field and Moore, J a m a i c a . ,u M a y 24, 1 7 5 8 , J . Baynton to John Noble, Bristol, E n g l a n d . " " J u n e 8, 1 7 5 8 , J o h n Stamper to D a v i d Van Horn, N e w Y o r k . ' " A u g u s t 1 0 , 1 7 5 8 , T h o m a s Wharton to J o h n Carnan, M a r y l a n d . " ' F e b r u a r y 1 1 , 1 7 6 0 , T h o m a s C l i f f o r d to Cox and Stiles, New Providence, Bahamas.

111

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these years is summarized in the following excerpt: "Goods are so monstrous high in England, so plenty here, bills excessive high and a peace so soon expected that everybody in that way here has thought it prudent to stop their hands until business returns to some settled channel." 118 In the spring of 1 7 6 2 Clark described the situation in still greater detail in writing to a correspondent in North Carolina: " T h e present time is perhaps the most distressful the Philadelphians have ever met with in the way of business, at least the modern part of them. W e owe heavy sums in England, sales dull, goods high and scarce at home, here plenty. Money prodigious scarce and not easily collected from the inhabitants. These circumstances have reduced the trading part of us to almost tragic condition; and the merchants of London, [ I ] am afraid, will participate of this, our general calamity. I have the misfortune to be of the number of those that owe money in London and other parts of England; and to remit at 80 per cent, which exchange is now rose to, vexes my soul." 1 1 9 An embargo was shortly afterward placed on the port and early in June 1 7 6 2 , when flour was selling at less than 1 4 shillings 8 pence, the market appeared to be "quite dull." 1 2 0 The embargo was removed soon afterwards. On June 24 it was reported that "flour started while we were purchasing to 1 7 shillings 6 pence which is a most extravagant price and can't possibly continue long." 1 2 1 The rise in flour from the low levels of 1 7 5 6 and 1 7 5 7 which had been halted during 1 7 6 0 and 1 7 6 1 culminated when it sold for more than 20 shillings 5 pence m November 1762 and the rise in wheat when it sold for 7 shillings a bushel in the first quarter of 1763. The following contraction was completed in 1764 in wheat and flour. In September 1 7 6 3 there was a temporary flurry in flour prices. " T h e great demand to Boston" raised the price of flour, which had been " d u l l at 1 4 shillings 6 pence," 122 to 1 6 shillings within a few days. Early in March of the following year another Philadelphia exporter felt that flour "must fall in a few days now as the road is good and wheat must be brought down." 1 2 3 Before the end of November 1 4 , 1 7 6 1 , Daniel Clark to Haliday, Dunbar and Co., Liverpool. " " M a r c h 16, 1 7 6 2 , Daniel Clark to William Nichelson, New Bern, North Carolina. " " J u n e i o , 1 7 6 2 , Francis and R o l f e to Obadiah Brown and Co., Providence. " J u n e 24, 1 7 6 2 , Francis and R o l f e to Obadiah Brown and Co., Providence. September 1 0 , 1 7 6 3 , Francis and Rolfe to Nicholas Brown, Providence. ' " M a r c h 4, 1764, Thomas Riche to Hawley and Gurley, St. Eustatia.

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April flour was " v e r y dull at 1 2 shillings and . . . expected lower." 1 2 4 The decline was checked in M a y at 1 1 shillings a hundredweight. Just as wheat had lagged in reaching its peak in 1 7 6 3 , so its downswing was not completed until October 1 7 6 4 . Its decline was probably retarded at least in part by news of the very high prices of wheat in England. In the swing of prices from 1 7 5 7 1 0 1 7 6 4 , which includes the major part of the French and Indian W a r , the prices of bread showed movements slightly similar to those during the expedition against the Spanish islands in the early i74o's. In the latter part of 1 7 5 6 and the first part of 1 7 5 7 bread prices did not f a l l to as low levels as wheat or flour and rose more quickly than those commodities in the latter part of 1 7 5 7 . In the next four-year period bread prices were relatively stable at a moderately high level, but in 1 7 6 2 they advanced sharply. Ship bread soared from 1 2 shillings 1 0 Y i pence in January 1 7 6 2 to nearly 2 1 shillings 1 0 pence in J u l y . T h e average of the monthly relatives of bread prices was at its peak considerably higher than the corresponding relative of flour and even slightly higher than that of wheat. Rapid increases in the prices of bread indicate the presence of an unusual demand such as arises when military forces must be supplied. T h e decline in the prices of bread lowered it to approximately the same relative level as flour and even lower than wheat. From 1 7 6 4 to 1769 there was a minor swing in the prices of wheat, flour, and bread. This movement was characterized chiefly by the fact that the recession of prices in 1768 and 1 7 6 9 did not reduce them to the level of 1764. There was a mild rise in the price of wheat during the early part of 1 7 6 5 before it suddenly spurted upwards in November and December. Flour, on the other hand, which had advanced considerably in the previous year before wheat reached its minimum, receded slightly in price in the first part of 1 7 6 5 , but before the close of the year had risen again to the level of the corresponding period in 1764. During 1766 the upswing continued, though broken for several months by seasonal factors. In the early part of October flour was selling at less than 1 4 shillings 2 pence, but in the middle of the " " A p r i l 2 1 , 1 7 6 4 , Francis and R o l f e to Nicholas B r o w n , Providence.

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month prices advanced rapidly. According to one merchant who wrote when flour had advanced sharply to 16 shillings 6 pence, " H a p p y is the man that can get first. No wheat at market, not from a bad harvest or short crops but from a bad season getting the ensuing crops in the ground. Wheat and flour will soon be in and hope [they will] fall [in price] so as to be shipped at your limits, though we never had such a number of ships in port as is at this season." 125 Prices of wheat, flour, and bread were high during all of 1767. Wheat, especially, was scarce.126 By J u l y it appeared to Philadelphia merchants that because of the good crop "all kinds of provisions [were] expected to fall considerably very soon." 127 Another merchant pointed out that not only had the harvest been good but also the West Indian trade had already been supplied. In his own words, " I expect wheat and flour will decline in price. W e have, through the continuance of Divine favor, had an excellent harvest, good grain well in, and the season for the fall is quite favorable, the West Indies being well supplied with provisions. I can't see how the price can keep up." 128 That prices were on the whole maintained throughout 1767 probably can be explained by the fact that, by the middle of August, Philadelphians were aware "that there was little or no flour in Belfast." 129 By December wheat and flour were "extravagantly high." 1 3 0 At that time flour was selling at 18 shillings 4 pence, approximately the same as in the previous J u l y . This marks the end in the rise of prices of flour which had started in the first part of 1764. In the spring of 1768 prices held at a high level. The price of flour fluctuated somewhat, rising once to as high as 17 shillings 9 pence, 131 but its average monthly price was lower. From January to J u l y , while flour showed only a slight tendency to increase from '"October 16, 1766, Thomas Riche to Parr and Bulkeley, Lisbon. " " J u l y 16, 1767, Orr, Dunlope and Glenholme to Greg, Cunningham and Co., New York. ' " J u l y 26, 1767, Orr, Dunlope and Glenholme to Galan Thompson and Co. ' * July 28, 1767, Thomas Clifford to Haliday, Dunbar and Co., Liverpool. August 1 5 , 1 767, Orr, Dunlope and Glenholme to Greg, Cunningham and Co., New York. m December 2, 1 7 6 7 , Orr, Dunlope and Glenholme to James Lecky, Dublin. 1,1 February 24, 1768, Orr, Dunlope and Glenholme to Greg, Cunningham and Co., New York.

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the price of 1 7 shillings in January, wheat rose to a higher peak than it had reached in 1 7 6 3 . During these months the merchants commented upon the " l a r g e number of vessels loading with wheat and flour for England and the Straits" 132 and on "the demand from the Eastward." 1 3 3 T h e rise in wheat was not halted until after it sold for more than 7 shillings 4 pence in J u l y 1768. T h e height of this peak can be attributed only to the lateness of the harvest that year since it was known in June that " w e have a favorable prospect of an excellent crop of wheat. T h e harvest is later than common owing to a continuance of cool weather." 1 3 4 It was not until the first of August that the crop was completely harvested. 135 In that month the price of wheat dropped more than 2 shillings 2 pence. Toward the close of August another merchant wrote, " O u r market is falling every day as we have had a very plentiful crop." 134 T h e drop in the price of flour was not in proportion to that of wheat, first, because in 1768 the price of flour was slightly lower than it had been in 1 7 6 7 while wheat had risen in 1768 to the highest prices known up to that time in the colony, except for February 1 7 4 9 , and second, because of a " v e r y dry spell of weather" which was referred to by Philadelphia merchants. 137 By October flour was selling at about 1 5 shillings 2 pence compared with slightly more than 1 7 shillings 1 0 pence three months earlier. In the closing months of 1768 prices of flour and wheat advanced again temporarily "owing to the large quantities shipped for Lisbon and different ports up the Straits." 1 3 8 E v e n in January 1769 the same merchants commented that "wheat and flour continue very high here owing chiefly to the consumption to Lisbon." 1 3 9 By April, however, the price of March i 8, 1 7 6 8 , Orr, Dunlope and Glenholme to Andrew Orr, Belfast. M a y 1 0 , 1 7 6 8 , O r r , Dunlope and Glenholme to Oliver Birch and J o h n Pooler, Antigua. "* J u n e 2 5 , 1 7 6 8 , T h o m a s C l i f f o r d to Lancelot Cowper, Bristol, E n g l a n d . 1 *° August 1 , 1 7 6 8 , T h o m a s C l i f f o r d to Lancelot Cowper, Bristol, E n g l a n d . " " A u g u s t 2 1 , 1 7 6 8 , Orr, Dunlope and Glenholme to John Smith, J a m a i c a . September 1 5 , 1 7 6 8 , T h o m a s C l i f f o r d to Samuel Pope, Boston; Orr, Dunlope and Glenholme to G r e g , Cunningham and Co., New Y o r k . 1,1 December 6, 1 7 6 8 , Orr, Dunlope and Glenholme to William Beath and Co., N e w r y , Ireland. " " J a n u a r y 2, 1 769, O r r , Dunlope and Glenholme to Lane, Benson and Vaughan, Cork. 1,3

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flour had dropped to 1 4 shillings 3 pence, which may be taken as marking the end of the decline from the peak in 1 7 6 7 . At the same time wheat sold at 5 shillings 2 pence. Only in the following November, when the price was about a penny less, did wheat sell appreciably below this price on the downswing from 1768. T h e prices of bread during these years from 1 7 6 4 to 1769 had three fluctuations. T h e first two of these appear somewhat like seasonal movements. For example, middling bread sold for 19 shillings a hundred weight in June and J u l y 1 7 6 4 and at 30 shillings in August. B y February and March 1 7 6 5 the price had dropped to 19 shillings 6 pence. In the following September middling bread again sold for 30 shillings but receded to 2 1 shillings in April 1766. In October and November the price was 29 shillings. For nearly two years this commodity was quoted at 26 shillings or more, but in September 1768 it dropped suddenly to 21 shillings. For five months prices tended to rise, culminating in February at 28 shillings, but during the next three months receded to 20 shillings. T h e prices of other grades of bread had somewhat similar movements except that their increases in 1 7 6 4 and 1 7 6 5 were not as much as those of middling and their decreases in 1768 and 1769 did not lower prices to the level of 1764. In general it can be said that the prices of flour and bread rose from 1 7 6 4 to 1767 while those of wheat continued to rise for another year, or until J u l y 1768. A l l three commodities were low in price in the spring of 1769, but their declines were halted considerably above the lower level of 1764. During 1769 the prices of flour and bread rose slightly, but those of wheat held at a lower level and in November dipped slightly below the price of April. This year marks the beginning of the last swing in prices before the Revolutionary War. T h e peak of prices of wheat, flour, and bread was reached in June or J u l y 1 7 7 2 , when the maximum prices of the Colonial period were paid. T h e decline which followed and which lasted until the outbreak of the Revolution lowered the prices of wheat and flour to approximately the low level of 1764, but the decline in bread prices was checked at a higher level.

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BREAD

45

T h e "plentiful harvest of grain" 1 4 0 which had begun to be gathered before the end of J u n e 1 7 6 9 contributed to the lag in the price of wheat in that year. T h e resentment of the colonists against the restrictions on trade imposed by Great Britain was one factor contributing to the general dullness of trade that year. 1 4 1 In December there was a temporary lift in the price of flour caused, according to one merchant, by the fact that " m a n y vessels are loading flour at this time; and we [are] alarmed with some ice so early in the season, which advances that article [flour] to 1 6 shillings and some gave 3 pence m o r e . " 142 T h e average price for December was slightly more than 1 5 shillings 2 pence. During 1 7 7 0 the outlook did not appear favorable to those merchants who felt that the large exports might have too f u l l y supplied foreign markets and that rising prices of provisions here would make the chance for favorable adventures poor. Typical of this sentiment are the following extracts from letters of a Philadelphia merchant to his correspondent in Lisbon. "Certainly if we do not overstock your port with wheat and flour when all the ships arrive that are gone of late, your demand must be surprisingly great and depend much on these parts for a supply thereof." " Y o u r great supply and the high price provisions keep at with us leaves a gloomy prospect at present for continuance in your trade." 1 4 8 Some of the markets in the West Indies also appeared unfavorable to Clifford, who wrote, " F l o u r being so high with us as to yield no prospect of much profit induced me to ship but little of that article." 144 T h e further increase in price by December 1 7 7 0 , when wheat sold for 6 shillings 6 pence a bushel and flour for 1 7 shillings 3 pence per hundredweight, influenced Clifford to write to a shipper in E n g l a n d , " O u r produce keeps too high to execute the Lisbon orders and the West Indies are too plentifully supplied with provisions to encourage shipping much that way until the price here is reduced." 1 4 5 A rise in price continued " " J u n e 2 i , 1769, Thomas Clifford to Lancelot Cowper, Bristol, England. 141 August 10, 1769, Thomas Clifford to John Thomas and Samuel Franklin, New York. December 1 2 , 1769, Thomas Clifford to his son, Thomas, traveling in Great Britain. M a y 9, 1 7 7 0 and J u l y 25, 1770, Thomas Clifford to Parr and Bulkeley, Lisbon. 44 September 1 3 , 1 7 7 0 , Thomas Clifford to William Smith, St. Christopher. December 22, 1 7 7 0 , Thomas Clifford to Lancelot Cowper, Bristol, England.

46

PRICES

IN COLONIAL

PENNSYLVANIA

throughout 1 7 7 1 . Clifford still remained critical of the wisdom of exporting such high-priced domestic articles. T h e trade figures show that over 500,000 hundredweight of flour was shipped from the port of Philadelphia that year. Clifford was urged by dealers in England and Portugal to export provisions, but the cautious merchant replied to the correspondent at H u l l , " W h e a t or flour will not do to ship to England when the duty is on and 'tis so high with us this year as to afford no encouragement." 146 H e wrote in somewhat greater detail to his Lisbon correspondent: "Observe the advance of grain and flour at your port and the probability of its keeping up as no supply would be expected from the neighboring ports. Wheat this year amongst us is lighter than common and not so great in quantity, that of flour is high and discourages many people from adventuring." 1 4 7 T h e peak of prices came in the summer of 1 7 7 2 . William Pollard continuously referred to the "exorbitant prices" of Philadelphia produce early in that year. When he reported in M a y that "wheat is 8 shillings a bushel, flour 19 shillings to 20 shillings and bread 25 shillings per hundredweight" he felt that this was " a circumstance perhaps never known here before." H e himself had never known such prices in the nine years he had been in Philadelphia. 14 * T h e next month he declined to extend his activities to the island of St. Eustatia because " O u r produce is so high at present that we have not the least prospect of doing anything your way but to a certain loss." 149 About the same time, in writing to a correspendent in Liverpool, Pollard expressed his criticism. " W h a t surprises me," he wrote in regard to wheat, flour, and bread, "is that these articles [are] shipped on board vessels daily in considerable quantities and yet there is not one market that I can hear of that promises more than part of a freight for such goods." 1 5 0 Clifford explained the high prices in the early part of 1 7 7 2 as arising from several successive poor crops which had reduced the supply of wheat and flour in Pennsylvania. A large " " J u n e 7, 1 7 7 1 , Thomas Clifford to Christopher Scott, Hull, England. November 1 2 , 1 7 7 1 , Thomas Clifford to Parr and Bulkelev, Lisbon. " " M a r c h 3, 1 7 7 2 , William Pollard to Edward French, Lisbon; May 1 2 , 1 7 7 2 to William Plummer, Jamaica; M a y 16, 1 7 7 2 to Peter Holme, Liverpool; May 25, 1 7 7 2 to William Reynolds, London. " " J u n e 1 3 , 1 7 7 2 , William Pollard to Nicholas Dawes, St. Eustatia, "" June 19, 1 7 7 2 , William Pollard to Thomas Earle, Liverpool.

WHEAT,

FLOUR,

AND

BREAD

47

demand from abroad resulted in "the country being much drained of wheat" and "occasioned it being very high." H e expected that prices would decline after the harvest. 151 In J u l y , Pollard, too, commented that "bread and flour are very high just now, but, as we have our crop just at hand, I expect these articles will be much lower s o o n . ' " " In this month wheat sold at an average price slightly above 8 shillings a bushel and flour at nearly 2 1 shillings 6 pence, the highest prices for these commodities in Colonial years. Ship bread sold at its maximum price of nearly 22 shillings 9 pence in June 1 7 7 2 . T h e prices of middling bread continued to rise during the latter part of 1 7 7 2 and did not begin to decline until after selling for 34 shillings a hundredweight in January 1 7 7 3 . In the remaining years before the Revolution the prices of wheat as well as those of its products declined. E a r l y reports on the wheat crop of 1 7 7 2 were that it was "not so good a crop as to quantity." 1 5 3 As the season advanced it became apparent that the crop was at least better than that of the previous years and that the situation in Europe would have the dominant role in the determination of prices. In a letter to Liverpool, Pollard commented in part, " O u r produce has been extremely high here this last year, I believe more so than ever was remembered before, nothwithstanding which a good deal has been shipped to Lisbon and Cadiz. W e have fine crops this year and the prices begin to get down and if we should not have a demand for Lisbon I think the prices should be reasonable." 154 In the fall, prices of wheat, flour, and bread were generally lower than in J u l y but were maintained at a comparatively high level. E a r l y in October it was pointed out that the "market for flour and bread have fallen somewhat [but] not much and I am afraid it will not be much lower before Christmas." 1 5 5 At the same time Pollard expressed his opinion that "the exceeding great crops in different parts of Europe may be the means of reducing the prices . . . to a more reasonable bearing." 1 5 6 E a r l y in 1 7 7 3 the British merchants were warned that these com151

J u n e 2 2 , 1 7 7 2 , T h o m a s C l i f f o r d to T h o m a s Franks, Bristol, E n g l a n d . ' " J u l y 20, 1 7 7 2 , William Pollard to Friswell and Priest, J a m a i c a . ' " J u l y 20, 1 7 7 2 , William Pollard to Peter Holme, Liverpool. lJ * August 20, 1 7 7 2 , William Pollard to Capt. J o h n Allanson, Liverpool. October 3 , 1 7 7 2 , William Pollard to Peter Holme, L i v e r p o o l . 116 October 3, 1 7 7 2 , William Pollard to T h o m a s E a r l e , L i v e r p o o l .

48

PRICES

IN COLONIAL

PENNSYLVANIA

modities "still continue very high" with little prospect of falling "until the new crop comes i n . " 1 " B y M a y , Pollard enthusiastically reported, " T h e prospect of the approaching crop is very pleasing indeed at present and the quantity of lands under cultivation for w h e a t . . . far exceeds any preceding year."" 8 The price of wheat declined in the summer and fell in "some parts of the country" more drastically and earlier than the drop in Philadelphia. 159 At the same time Pollard wrote to a London correspondent, "Wheat, flour, and ship bread have been very dear all last year until about a month ago when our markets began to fall, a circumstance that very seldom happens at this season of the year." 1 " 0 Another Philadelphia firm of exporters appraised the situation at the beginning of August, pointing out the complex factors affecting price: the condition of the crop and the improved financial position of the farmers as the result of several years of high prices which would enable them to "keep back their supply unless they can obtain what they call a good price." In addition there was the prospect that the crop in Spain and Portugal had been poor. It was also noted that "occasioned partly by some imprudent people purchasing, and the mills wanting water" there had been a rise in the price of flour.1®1 In the fall of 1 7 7 3 moderately high prices for wheat and its products were maintained still longer. One merchant wrote, " O u r market continues unsettled. W e have not yet had any orders for wheat or flour for foreign markets. Our own Islands seem to take off what comes to market and [that] keeps up the prices higher than I expected it would." 1 0 2 Also, in December Stocker and Wharton reported difficulty in procuring flour to ship. 18 " T h e decline from the peak of 1 7 7 2 was slight even by M a y 1774. In that month Pollard wrote to one of his Liverpool correspondents, 151

April 1 2 , 1 7 7 3 , William Pollard to Peter Holme, Liverpool. May 6, 1 7 7 3 , William Pollard to Thomas Earle, Liverpool. ' " J u l y 10, 1 7 7 3 , William Pollard to Earle and Hodgsons, Liverpool. lw J u l y 1 0 , 1 7 7 3 , William Pollard to William Reynolds, London. ' " A u g u s t 6, 1 7 7 3 , Stocker and Wharton to Christopher Champlin, Newport. Commerce of Rhode Island, Vol. I, pp. 448-449, in Collections of Massachusetts Historical Society, Seventh Series, Vol. I X , 1 9 1 4 . '"September 23, 1 7 7 3 , William Pollard to Peter Holme, Liverpool. December 1 0 , 1 7 7 3 , Stocker and Wharton to Christopher Champlin, Newport. Commerce of Rhode Island, Vol. I, p. 4 7 1 .

WHEAT,

FLOUR,

AND

BREAD

49

" I observe what you say of sending a cargo of wheat to Leghorn but a cargo could not be got now for 7 shillings 6 pence per bushel, but if wheat could be got, I could not get a vessel. T h e Lisbon and Cadiz, etc., markets have been so favorable that all our vessels are fully employed." 1 * 4 T h e discussions which preceded the calling of the First Continental Congress are related to the drop of prices in the summer of 1 7 7 4 . Its meeting in Philadelphia during the fall of that year and the agitation for a non-exportation agreement had a marked effect upon the price of wheat. The price of flour did not decline proportionately because conditions were so uncertain that little grinding was donej for this reason the supply was restricted to such an extent that even with the lessened demand the price was fairly well maintained. T h e letters of Clifford reveal the reaction of the colonists in Pennsylvania: " T h e first new wheat that was brought to market was before the Proceedings of the Congress were known—the people were afraid to purchase and reduced the price so low that the farmers would not thrash out or bring their wheat to market.'" 6 0 In November 1 7 7 4 prices of wheat started to advance, but they turned downward again after February 1 7 7 5 when the organizing of the Second Continental Congress precipitated another break in prices. Soon after its sessions began in Philadelphia, Clifford, in a letter to a correspondent in Bristol, said " P e o p l e were apprehensive our ports would be stopped as soon as the Congress met. T h e millers were hurrying their flour to market and run it off as fast as they could. M a n y of them near town sold wheat out of their mills and stopped grinding. W e should gladly have embraced that opportunity of shipping off all we could but vessels were not to be had . . . most of the flour and wheat near to market is sent away and now we could get vessels there is little produce to be had." 1 6 " This decline had been noted by Clifford before the end of March. 1 6 7 T h e unsettled conditions on the eve of the Revolution made prices sensitive to relatively slight changes in the volume of shipping and M

M a y 1 6 , 1 7 7 4 , William Pollard to T h o m a s E a r l e , L i v e r p o o l . " " N o v e m b e r 6, 1 7 7 4 , T h o m a s C l i f f o r d to T h o m a s F r a n k , Bristol, E n g l a n d . M a y 30, 1 7 7 5 , Thomas C l i f f o r d to T h o m a s F r a n k , Bristol, E n g l a n d . ' " M a r c h 29, 1 7 7 5 , T h o m a s C l i f f o r d to T h o m a s F r a n k , Bristol, E n g l a n d .

50

CHART

PRICES

III—ANNUAL

IN COLONIAL

RELATIVES

PENNSYLVANIA

OF W H O L E S A L E

F L O U R , AND B R E A D IN P H I L A D E L P H I A , (Base—Monthly Average,

PRICES OF I720-1775

1741-1745)

WHEAT,

WHEAT,

FLOUR,

BREAD

51

to rumors of what was occurring in N e w England. Thus prices were slightly better in August but declined " a f t e r the vessels had sailed." 1 6 8 T h e next month the great variations in prices were commented upon in detail. " O u r markets for produce have been so exceedingly fluctuating and uncertain as to discourage us from chartering. Common flour . . . rose from 1 5 shillings to 19 shillings in a few days and fell as much in about same time. W e have heretofore had several reports about shutting our ports and stopping our trade and now when that measure is really going to take place numbers of country people would not believe it or put themselves out of their usual course of business to bring their produce to market and having had a season of but little rain many mills have stood for want of water; from these two circumstances and uncertainty of markets . . . flour [ w e ] are now delivering at 18 shillings to 1 9 shillings, sold some days ago, while today's price is but 1 5 shillings." 1 6 9 Before the end of 1 7 7 5 wheat, flour, and bread had declined nearly to the level of the depressed year of 1 7 6 4 . E v e n at this price the decline from the peak of 1 7 7 2 was not completed. Its further decline is part of the story of the Revolution itself. T h e discussion of the monthly prices of wheat, flour, and bread from 1 7 2 0 to 1 7 7 5 has emphasized the recurrence of short-time factors affecting prices. Among the forces stressed in the contemporary explanations of the merchants were crop and weather conditions both in Pennsylvania and other areas; conditions of trade which were affected not only by the relation between prices at home and abroad but also by interruptions to the usual commerce from wars; and changes in commercial policy. There is no evidence that contemporaries recognized any of the underlying factors which can be judged better in retrospect. T h e operation of such factors has been mentioned in the detailed discussion but becomes more apparent when stripped of seasonal and random fluctuations. F o r this reason the annual relatives of prices showing the major movements from 1 7 2 0 to 1 7 7 5 have been charted. T h e most outstanding characteristic of prices as shown by these charts is the succession of periods of high and low prices. These ""August 4, 1 7 7 5 , Thomas Clifford to Thomas Frank, Bristol, England. September 4, 1 775, Thomas Clifford to Thomas Frank, Bristol, England.

52

PRICES

IN COLONIAL

PENNSYLVANIA

swings in annual prices appear simultaneously in wheat, flour, and bread. T h e extent of these movements is greatest in the prices of wheat and least in bread. T h e exact timing of these fluctuations as determined by the monthly records of prices is shown in Table I, which gives the first month in which prices rose on the upswing, the months in which they were at their highest during the swing, and the months of lowest prices, TABLE TIMING

OF S W I N G S

IN P R I C E S

I OF W H E A T ,

FLOUR,

BREAD

1720-1775 (Base of R e l a t i v e s — M o n t h l y A v e r a g e of 1741 to 1745) Beginning of Rise Date July

E n d of Recession

Peak

Relative

Relative

Date

1733

87.27

A p r . 1735

M a y 1723 A p r . 1724

91.80 90.96

F e b . 1728 M a y 1728 M a y 1728

96-34 9823 9714

A u g . 1731

78.20

First

142.01

Date

Relative

O c t . 1737 to Jan.1728 A p r . 1738 A p r . 1738

93 >3 94-14

J u l y 1731 J u l y 1731 Sept. 173*

6788 68.85 83.85

138.25

A p r . 1736

90.08

132.60 •13-70

J u l y 1736 D e c . 1736 to Jan.1737

85.48 89.23 78.30 73-95 84.08 71-63 68.85 76.83

9384

A u g . 1731 O c t . 1731

73-13 87-37

O c t . 1726 M a r . 1727 Second June 1729 | A u g . 1730 N o v . 1729 1 Third D e c . 1734 to Jan.1735 M a r . 1735 M a r . 1735

M a y 1736 A u g . 1736

93 84 95-68

J u l y 1737 Aug. 1737

140.76 «44-53

F e b . 1737

98.79

118.34

N o v . 1738 J u l y 1740 June 1740

9509 79 05 «5-59

M a r . to A p r . 1738 Fifth June 1741 une 1741 une 1741 Sixth F e b . 1749 N o v . 1748 J u l y 1754 A p r . 1749 J u l y 1754 N o v . 1755

Oct. 1738 M a y to June • 740 M a y 1740

164.22 «55-5S 165.43

M a y 1744 June 1744 June 1744

234-59 214.20 •54-33 188.35 153-31 147.36

N o v . 1757 A p r . 1750 D e c . 1756 M a y 1753 Apr. 1755 F e b . to A p r . 1757

101.66 113.02 96.90 131.IS 135.92 135.64

318.96

Oct.

I3J.I3

162.59 15903

M a y 1764 O c t . 1758 t o Jan.1759 June 1764

June July May July June May

Fourth

Í

>33-93 107-45 135-44 I35-I5 III.25

1744 1744 1750 1744 17S3 1755

78.20 81.60 113-93 80.57 138.88 139.02

D e c . 1757

108.85

Jan. 1757 M a y 1757

112.20 138.39

Seventh J a n . to M a r . 1763 N o v . 1762 O c t . 1757

F e b . 1759

I3472

Sept. 1762

199.87

J

33053 187.37 166.74 •73-39

Nov. June July May

1764 1764 1764 1766

133.94 117-3° 119.08 '45-14

D e c . 1769 M a y 1769 June 1769

170.79 146.67 128.41

Eighth 1768 1767 1765 1767 Ninth July 1773 J u l y 1772 June 1772 uly uly Sept. June

351-49 218.79 310.15

Nov. Apr. Apr. May

1764

1769 1769 1766 1769 Indefinite Indefinite

112.20 126.80 II3.39 I59.2I

145-35 136.07 134.68

WHEAT,

FLOUR,

AND

BREAD

53

which marked the termination of the decline and from which prices rose in the next cycle. T h e dates given in the table were selected after an inspection of the monthly relatives for each commodity without any attempt to make a correction for seasonal factors. It is therefore possible to group the fluctuations from 1 7 2 0 to 1 7 7 5 into nine periods, although flour and bread, especially between 1 7 4 4 and 1 7 5 7 , underwent two or three subsidiary movements in prices, while wheat had but one. These swings in prices are significant not only in their relation to other wholesale prices in Philadelphia but also in their conformity to well-known periods of prosperity and depression in other parts of the world. T h e charts of annual relatives of wheat, flour, and bread show not only these recurring fluctuations but the effect of even longer-time movements which form an underlying trend lasting for two or more swings. It is apparent that the Colonial period can be divided, first, from 1 7 2 0 to 1 7 4 4 , and second, from 1 7 4 4 to 1 7 7 5 . In the first of these periods, when there were five complete swings in price, the underlying tendency was practically horizontal. F o r example, a trend computed by the method of least squares for prices of flour showed only a slight downward slope of .08 points a year. T h e second period, from 1 7 4 4 to 1 7 7 5 , when prices tended to rise, needs more detailed analysis. When these years were divided into the period from 1 7 4 4 to 1 7 6 4 and from 1 7 6 4 to 1 7 7 5 the upward trend in the annual relatives of flour in the first twenty-one years was 2.76 and in the twelve years from 1 7 6 4 to 1 7 7 5 was 2.08. T h e method of least squares does not give a good fit to the period from 1 7 4 4 to 1 7 6 4 because the bulk of the rise in that period was confined to five years of steadily increasing prices from 1 7 4 4 to 1 7 4 9 , after which they never dropped to as low a point as in the first part of the Colonial period. T h e low prices of the middle forties have an undue effect on a trend computed from 1 7 4 4 to 1764. If the three years from 1 7 4 4 to 1 7 4 6 are disregarded and a straight line trend computed on the price of flour from 1 7 4 7 to 1 7 6 4 , the upward trend is reduced from 2.76 for the twenty-one-year period to .60 for the eighteen-year period. T h e trend in the prices of flour during the whole period should be regarded as horizontal from 1 7 2 0 to 1 7 4 4 ; rapidly upward from

54

PRICES

IN COLONIAL

PENNSYLVANIA

1 7 4 4 to 1 7 4 9 ; moderately upward from 1747 to 1 7 6 4 ; and still more rapidly upward from 1 7 6 4 to 1 7 7 5 . Both wheat and bread had approximately horizontal trends from 1 7 2 0 to 1744, but in the later Colonial years wheat tended to rise more rapidly than flour, and bread less rapidly. This difference in trend stands out strikingly when the prices of the three series are related to each other so as to show the number of bushels of wheat and the number of pounds of bread which would exchange for a hundredweight of flour in each year. This shows the relationship among the commodities free, at least in part, from fluctuations in currency and unhampered by the use of a fixed base period. Here, too, the computation has been confined to annual figures to avoid seasonal and random variations. The close relationship between flour and wheat is strikingly shown by the slight variation in the number of bushels of wheat which could have been purchased by a hundredweight of flour. In general there was a slight tendency for wheat to become dearer than flour. Thus, in twenty of the first thirty years more than three bushels of wheat were required to buy one hundredweight of flour, while in none of the last twenty years was that much wheat required. In 1 7 7 3 only 2.55 bushels were needed to buy one hundredweight of flour. This was the lowest ratio of wheat to flour. The years when wheat was relatively the cheapest were 1 7 2 4 , 1726, 1 7 2 7 , and 1 7 3 1 . In all these years at least three and one-quarter bushels of wheat were required to purchase one hundredweight of flour and in one of these years, 1 7 2 7 , the ratio was as high as three and a half bushels. The lowest ratio before 1766 was in 1740, when it dropped to 2.68 bushels. A comparison of the physical exchange ratios of bread and flour illustrates another advantage of this method of analysis: emphasis is given to differences in the level of prices of grades of different commodities. Of the four grades of bread, brown was the cheapest, ship bread slightly more expensive, middling bread substantially more, and white bread dearest of all. The two chief series of bread were ship and middling. Although many of their fluctuations were similar, they tended to grow farther

WHEAT,

FLOUR,

AND

BREAD

55

apart, ship bread gradually becoming cheaper and middling bread more expensive. Around 1 7 2 5 bread was cheaper than at any time for several decades following. Brown bread, of which 1313/2 pounds had been required to purchase one hundredweight of flour, increased in value until in 1 7 3 1 less than 100 pounds would suffice. It is probable that ship bread would have had a somewhat similar change in ratio. D u r ing the decades of the 1 7 3 0 ' s and 1740's ship bread usually exchanged at the ratio of 95 to 1 0 5 pounds of bread for 1 1 2 pounds of flour. In the next decade there was some evidence of a decline in the value of ship bread in terms of flour. After 1 7 5 9 more than 1 0 5 pounds of bread were always required in barter for 1 1 2 pounds of flour, while in the nine years before the Revolution more than 1 1 2 pounds of ship bread was required and in five of these years more than 1 2 0 pounds. A f t e r the low prices of 1 7 2 5 , when slightly more than 106 pounds of middling bread equalled the value of 1 1 2 pounds of flour, the value of middling bread tended to rise. A f t e r 1 7 2 7 less than 90 pounds of middling bread could always be exchanged for 1 1 2 pounds of flour and after 1748 less than 75 pounds. In the years which intervened before the outbreak of the Revolution the fluctuations in the value of middling bread in terms of flour centered around 65 to 70 pounds of middling bread for a hundredweight of flour.

CHAPTER PRICES

OF

OTHER

III

FARM

PRODUCTS

The dominance of agriculture in Colonial Pennsylvania accounts for the number of farm products other than wheat quoted in the prices current. Among these were Indian corn, flaxseed, and hemp grown in Pennsylvania, tobacco imported from Maryland and Virginia, and rice imported from the Carolinas. INDIAN CORN

Indian corn was second only to wheat in its importance as a grain crop in Pennsylvania. In a general way the fluctuations in its prices in the Colonial period resemble those of wheat, inasmuch as both were subject to very frequent short price movements, both tended to respond to a rise or fall in the other, and both established higher levels toward the end of the decade of the forties than they had held between 1720 and 1740. In detail, there are differences in the monthly curves of these two grains, the most notable of which are, first, that in periods of rising prices wheat overtopped corn in every comparable peak in Colonial years; second, that the prices of Indian corn, in the years between 1744 and 1764, underwent two or more clearly separated price movements to each one in wheat; and third, in the end of the sixties the corn and wheat curves moved in opposite directions for nearly three years. A general idea of the extent of fluctuations in prices of Indian corn in the first twenty years of our record may be gained from the fact that corn prices were as high as 2 shillings a bushel in only one month in the years 1720 to 1723. Except in one month, corn prices were never below 1 shillings a bushel from September 1723 to December 1729. In the next two years and three-quarters, quotations were occasionally at 2 shillings or more, but mostly were below that level. From September 1732 to November 1734 corn prices tended to keep 56

OTHER

FARM

PRODUCTS

57

above 2 shillings but fell below in December 1 7 3 4 and kept below in 1 7 3 5 and the first five months of the following year; after the rise at the end of 1 7 3 6 corn prices tended to keep well above 2 shillings until September 1 7 3 8 . From then until February 1 7 4 1 corn continued to be sold well below 2 shillings a bushel. In the middle of 1 7 4 1 it was above 3 shillings a bushel for the first time in the years following 1 7 2 0 but was below 2 shillings by the end of 1 7 4 3 and still lower in 1744. In these years when corn prices ranged from 1 shilling 3 pence a bushel to 2 shillings 6 pence and reached 3 shillings 3 pence in 1 7 4 1 , the variation was not merely seasonal but was also somewhat cyclical in character, having four or five quite separate swings in price. T h e first of these started with a mild rising tendency in October 1 7 2 1 which brought quite high levels by 1 7 2 4 and was followed by a long stretch of moderately stable corn prices which, despite a check in 1 7 2 7 , carried them in June and J u l y 1 7 2 8 and again in September 1 7 2 9 to an unusually high level for these years. In contrast to the long expansion, prices contracted for a year and a half and in April, June, J u l y , and September 1 7 3 1 were lower than at any time in the preceding eleven years. Corn and wheat were both high in 1 7 2 9 and low in 1 7 3 1 , but corn reached its summit three months after wheat and its low two months after wheat had started to recover. Corn and wheat were less in agreement in the timing of the next peak, which occurred in November 1 7 3 3 in corn prices and not until December 1 7 3 4 in wheat prices. In the decline from this high, contrary to the usual timing, corn led and reached its low four months ahead of wheat. It also dropped to a price as low as that from which the rise originated, whereas wheat, which had a more pronounced rise than corn, ended its drop, in April 1 7 3 6 , 3 2 . 7 per cent above its low of 1 7 3 1 . On the rise in the price swing from 1 7 3 6 to 1 7 4 0 corn reached a minor peak in September 1 7 3 6 when the " o l d corn" was "gone and new not yet fit to ship o f f . " 1 As soon as the new crop came to market, corn prices dropped though wheat prices were sustained. This interruption to the upward movement of corn prices lasted until April "September 1 3 , 1736, Robert Ellis to Governor James Edward Oglethorpe, Georgia.

58

PRICES

IN COLONIAL

CHART

PENNSYLVANIA

IV—MONTHLY

RELATIVES

OF

WHOLESALE

(Base—Monthly

OTHER

FARM

PRODUCTS

59 PER C E N T

PRICES OF C O R N IN P H I L A D E L P H I A , Average,

1741-1745)

1720-1775

60

PRICES IN COLONIAL

PENNSYLVANIA

1737. The drop between March and April was probably related to a similar recession in wheat and flour prices. In the four months from April to August corn rose a shilling a bushel. At the close of July, when corn was selling for 2 shillings 6 pence, as high a price as it ever sold for in the first two decades, merchants commented upon its scarcity.2 It was at this time that a drought in the southern colonies led Maryland and Virginia to forbid the exportation of grain and raised the price to high levels in South Carolina.5 After dipping in the winter of 1737 and 1738 to 2 shillings, corn again rose to 2 shillings 6 pence in the spring of 1738. In this manner the movements in the prices of corn differed from those of wheat. Although both reached their highs in the summer of 1737 within a month of each other, wheat declined gradually and continuously through the first part of 1738, while corn returned to approximately the level of its peak in the previous year. In the latter part of 1738 both were affected by the decline in the markets in Spain and Portugal.4 The reaction of Pennsylvania shipping to information about the Lisbon market can be measured by the fact that in 1738 only 10 vessels cleared from Philadelphia for Portugal in contrast to 17 the year before and 40 in the year after. Other markets were easily found for wheat and the price advanced in the years from 1738 to 1741. Meanwhile, corn continued to be low throughout 1739 and the first seven months of 1740. The lowest price paid for corn in the whole pre-Revolutionary-War era was in April and August 1739 and again in April 1740. This was 1 shilling 3 pence a bushel. The war with Spain, which began in October 1739 and which was early reflected in advancing prices of wheat, had an adverse effect upon corn prices until late in 1740, when they rose very rapidly and reached an extreme high in 1741, two months ahead of the comparable peak in wheat. In the light of the sparse crop and a severe winter,5 it is not surprising that the high prices which prevailed in 1741 were well maintained until the bumper crop of 1742.8 Although there was a decline " J u l y 18, 1737) Samuel Powel, J r . to Thomas Hyam, London. "Gray, Lewis Cecil, History of Agriculture in the Southern United States to Vol. I, pp. 163 and 176. 'August 10, 1738, Samuel Powel, J r . to David Barclay and Son, London. ° May 2, 1 7 4 1 , Samuel Powel, J r . to Thomas Hyam, London. ' J u l y 7, 1742, Samuel Powel, J r . to Thomas Hyam, London.

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at the end of 1742, prices were sustained by the demand from New England where the season had "been so dry that their whole crop is almost totally lost especially their Indian corn." 7 The extent of this demand in 1742 can be roughly indicated by the fact that 60 vessels left Philadelphia bound for New England compared with 34 in the previous year. In fact there were as many clearances for New England ports from August to December 1742 as in the entire year 1 7 4 1 . There was a demand the next year from Barbados where "there is now a much greater call for corn than flour."8 Both corn and wheat were unusually low in 1744 and corn continued so until the middle of 1745. In the years of higher prices which followed, the fluctuations in the prices of corn cannot easily be matched with those of wheat. Between 1 7 4 4 and 1 7 5 7 wheat appears to have one complete price swing which reached, in February 1749, an unusually extreme peak 227.5 per cent above the low of M a y 1744. Instead of having one dominating peak, corn had four separate price swings, no one of which rose to peaks of immoderate height. Corn was high in the summer of 1746 and higher in the middle of 1 7 5 1 . The maximum of November 1 7 5 2 was equal to that of J u l y 1 7 5 1 . A fourth and less extreme peak occurred in April 1756. The price swings of which these highs are the center had intervals of low quotations, especially in January 1748, November 1 7 5 1 and March 1 7 5 2 , March 1 7 5 5 , and January 1758. Each of the high periods can be accounted for by special conditions of trade. T h e peak of 1746 was the result of a scarcity and the abruptness of the peak was caused by the coincident arrival, as early as J u l y 1746, of numerous buyers who bid for the carried-over corn.9 T h e high prices of 1 7 5 1 and 1 7 5 2 , when stable wheat prices were maintained at a moderately high level, were "occasioned by the number of New England men that have arrived here to load with the commodity to carry to the northward." 10 In 1 7 5 1 the volume of shipping to Rhode Island, as indicated by the number of departures from Philadelphia for that colony, amounted to 39 vessels—11 more than in the previous peak year of 1749. T h e trade between Pennsylvania and 'October 26, 1 7 4 2 , Samuel Powel, J r . to Thomas Hyam, London. " J u n e 8, 1 7 4 3 , Samuel Powel, J r . to Henry Slingsby, Barbados. " J u l y 14, 1 7 4 6 , Samuel Powel, J r . to Samuel Osburn, Barbados. " J u l y 9, 1 7 5 2 , John Stamper to Capt. Samuel Spafforth.

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New England in 1 7 5 2 was large not only because of the sustained volume of shipping to Rhode Island, but even more because of the large increase in the number of vessels clearing for ports in the other New England colonies. T h e records of the port of Philadelphia show that 65 vessels left for destinations in N e w England outside of Rhode Island, making the total trade to that area 1 0 3 vessels, the largest in any year before 1 7 6 0 . T h e rise in Indian corn prices in the spring of 1 7 5 6 , when there was no reflected rise in wheat, was accounted for by merchants by the " l a r g e quantities shipped from this port for Jamaica," 1 1 since "Indian corn at that market has borne a better price in proportion than other goods." 1 2 By the end of 1 7 5 6 both corn and wheat declined and both were low in 1 7 5 7 and the early months of 1 7 5 8 . At the end of this downswing, corn sold for as little as 18 pence a bushel, a price as low as that of January 1 7 4 8 and only one penny more than in the depressed years of 1 7 4 4 and 1 7 4 5 . It is significant that in the series of swings in prices from 1 7 4 4 to the end of 1 7 5 7 corn did not advance to as high a level as wheat. Although from 1748 to 1 7 5 3 corn did sell at a higher average price than in any period of the same duration, the recession after the peak of November 1 7 5 2 and especially after the minor peak of April 1 7 5 6 reduced its prices to approximately the same low level that had characterized them at the beginning of this series of fluctuations. In contrast to the prices of wheat, which, after 1 7 4 7 , never fell below the average of 1 7 4 1 to 1 7 4 5 , the prices of corn in 1 7 5 7 dropped more than 3 0 per cent below the average price for which it sold from 1 7 4 1 to 1 7 4 5 . There were two pronounced swings in the prices of corn between January 1 7 5 8 and J u l y 1 7 6 4 . T h e crests of prices in these years were in November 1 7 5 9 and again in the same month of 1 7 6 2 . Scarcity of corn during most of 1 7 6 3 held prices at a high average until November. 13 T h e significance of the price behavior rests on the fact that corn established new high levels in these peaks and that in the decline which separated the two price swings its price did not drop to the 11

May 1 3 , 1 7 5 6 , Thomas Wharton to Gerard G. Beekman, New York. June 1 7 , 1 7 5 6 , Thomas Wharton to Edward Mitchell. "September 10, 1 7 6 3 , Francis and Rolfe to Nicholas Brown, Providence. 12

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levels of previous low periods. In fact, in all price changes from the end of the 1750's until the time of the Revolution, declines were halted at levels far above the lows of earlier years. This shift to a higher level had occurred in the prices of bread, flour, and wheat about a decade earlier, but these commodities had also tended to make another slight upward step near the end of the fifties. In the price movements at the close of the fifties and in the early sixties, during the French and Indian War, the prices of corn varied somewhat from the manner in which they had moved in the previous war with Spain. T h e first reaction was a decline in price, with the result that, as has already been noted, corn was very cheap in 1 7 5 7 . The subsequent rise in 1 7 5 9 is related to the conflict in Canada and the capture of Fort Duquesne in Pennsylvania. T h e low level from which this rise originated contributed to the fact that corn advanced more in price than did wheat. Again corn reached, early in 1 7 6 2 , a high level and mounted to its peak before wheat. T h e two other complete price swings from low to high and back to low in prices of corn before the Revolution are those from J u l y 1 7 6 4 to March 1768 and from March 1768 to J u n e 1 7 7 4 or December 1 7 7 5 . T h e expansion phase of the first of these periods is characterized by markedly unstable prices and even the peak of 1766 is too accidental a price to stress were it not for the fact that the advance in the prices of wheat in these years was subject to the same type of jagged peaks and abrupt declines. T h e difference in the two series comes after 1766 when wheat prices continued to rise until after the middle of 1768 while prices of corn headed steadily downward from J u l y 1766 until March 1768. Even after this, for another year and seven months, corn and wheat moved in opposite directions. This is the longest period of contrary movement in the Colonial years in the two most important grain series. T h e rise in the price of corn which began in April 1768 had been predicted by Clifford as early as February. In that month he wrote, " N o corn yet comes up, 'tis supposed it will be about 2 shillings 6 pence per bushel." 1 4 T h e advance during the next two years proceeded at an increasing rate. As late as April 1 7 7 0 Clifford wrote to cor14

February 1 6 , 1 7 6 8 , T h o m a s C l i f f o r d to T h o m a s and W i l l i a m L i g h t f o o t , M a r y l a n d .

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respondents in Lisbon, "Corn is scarce, the yellow sort one would not depend on getting, and 3 shillings 3 pence per bushel the price I must begin at. N o dependence on much to be had at that as several persons are buying." 1 5 In the next six months the price of corn rose to the highest level of Colonial times. In October 1770 corn sold for more than 4 shillings 6 pence a bushel. Scarce as corn was in the fall of 1770 18 its prices were not even sustained, although those of wheat continued to rise until 1772 and kept at high levels throughout 1773 and most of 1774. During this period of high prices of wheat, the prices of corn fluctuated at a moderately high level. Although at the close of 1770 and in the opening months of 1771 corn sold for as little as 3 shillings a bushel or less, it had risen, because of seasonal influences, to 4 shillings by September 1771 and nearly as high in some months of 1772 and 1773. T h e highest price in 1773 was in February. During the remainder of the year the prices of corn receded to as little as 2 shillings 8 pence in November in spite of the fact that during June and July there had been "a prodigious dry time for six weeks past which, I fear, will hurt our crop of Indian corn."" By June 1774 the price had fallen to nearly 2 shillings 6 pence, but before the close of the year the average price exceeded 3 shillings. In December Clifford wrote that Indian corn "is higher than usual and is worth from 3 shillings to 3 shillings 3 pence, but will be down again in all probability towards spring." 18 A few weeks later he was able to report, "Produce has fallen in price since the navigation has been stopped. Large quantities of Indian corn might be purchased at about 3 shillings per bushel." 1 * Like other domestic produce, corn was relatively low and even falling in price at the outbreak of the Revolution. T h e increasing importance of corn during the Colonial era is somewhat indicated by the fact that wheat led corn in the start of upswings and in the time of establishing highs in the first half of the period. In " A p r i l 14, 1770, Thomas Clifford to Parr and Bulkeley, Lisbon. "November 26, 1770, Thomas Clifford to William Smith, St. Christopher. ** July i i , 1773, William Pollard to Edward Barrett of Jamaica, traveling in England. "December 20, 1774, Thomas Clifford to Thomas Frank, Bristol, England. "January 17, 1775, Thomas Clifford to Thomas Frank, Bristol, England.

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later years corn, despite many independent movements, led wheat at turning points in prices. If one may draw an historical conclusion from prices alone, an analysis of the fluctuations in prices of corn in Philadelphia seems to indicate that it was less affected than wheat by happenings outside the colonies, but was responsive to conditions in the other colonies or conflicts on the mainland in which colonial troops were engaged. T h e lack of response to outside events may be illustrated by the mild decline in corn after the Treaty of Aix-la-Chapelle in 1748 by contrast

CHART V — A N N U A L

R E L A T I V E S OF W H O L E S A L E PRICES OF

IN P H I L A D E L P H I A ,

CORN

1720-1775

(Base—Monthly Average,

1741-1745)

with the pronounced drop in prices of wheat. Again, after the Peace of Paris wheat prices speedily declined while corn prices held. T h e relation of the prices of corn to those of flour shows that there were considerable swings resembling cycles in the amount of corn that would exchange for a hundredweight of flour. In having these wide swings, the behavior of corn ratios differed from those of wheat. A further difference between these series is that corn did not tend to increase in value in terms of flour. Although in 1742 and 1743 barely more than four bushels of corn would purchase a hundredweight of flour, in 1735 corn was relatively so low that slightly more than 7 ^ bushels were required. This was the maximum variation. In more than half of the years the range was between \ l / 2 and bushels to

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1 1 2 pounds of flour, but the ratio more often was above 5 bushels than below it. T h i s is true in practically e v e r y decade in the late and early years. T h e longest consecutive period of relatively high prices of corn was f r o m 1 7 6 2 to 1 7 6 6 inclusive, w h e n the ratio of flour to corn ranged between 4.49 and 4.83 bushels, while the lowest values of corn in terms of flour were f r o m 1 7 3 4 to 1740 inclusive, w h e n the ratios were between 5.08 and 7.26 bushels of corn for 1 1 2 pounds of flour. MINOR

GRAINS

O t h e r grains were g r o w n in Pennsylvania but they did not bulk large in trade, being usually produced for consumption on the farm or in the local area. A s early as 1683 some barley was raised in the province. 20 In 1 7 2 9 P o w e l , in describing the produce of the local area, wrote in detail, " B e a n s we raise none . . . Barley is for the most part f r o m 3 shillings to 3 shillings 6 pence per bushel but seldom more raised than just to supply our home consumption, nor is there [ m u c h ] of oats which are f r o m 20 pence to 2 shillings . . . R y e we hardly ever raise more than is used among ourselves but perhaps a small quantity might be got at about 2 shillings 6 pence." 2 1 F r o m the correspondence of P o w e l it appears that in 1746 he had an inquiry f r o m South Carolina as to the possibility and terms of trade for barley. In answer he stated that 3,000 or 4,000 bushels of barley " m a y be purchased h e r e . " H e believed that " t h e crops [of barley] are not so large this year as u s u a l " and doubted "its being under 3 shillings 6 pence per b u s h e l . " T h e most advantageous time for purchasing it was " f r o m the beginning of September to N o v e m ber w h e n it is most plenty and cheapest." A t the same time P o w e l stated that the "Susquehanna is not navigable above three miles. A l l the farmers w h o live near that river bring their produce to Philadelphia by land though it be sixty odd miles distant which is proof that the river is unnavigable." 2 2 T h o u g h none of these minor grains were quoted in the prices current, there were two other farm products—flaxseed and h e m p — " P r o u d , Robert, The History of Pennsylvania, Vol. I, p. 264.. n August 28, 1729, Samuel Powel, Jr. to John Simpson, London. a July 16, 1746, Samuel Powel, Jr. to Gabriel Manigault, South Carolina.

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raised in Pennsylvania which became important enough in the Colonial period to be listed in the newspapers with increasing frequency. FLAXSEED

T h e sale of flaxseed was mainly concentrated in the fall months when the crop was harvested and shipped, chiefly to Ireland. In the other parts of the year the price was usually missing or else the last price of considerable sale was arbitrarily continued. Despite these gaps in the series and the wide fluctuations in price which often occurred during the season, we can roughly trace the longer underlying movements in prices from 1 7 3 4 to 1 7 7 5 . T h e trade between Philadelphia and Ireland was important. T h e frequent quotation of exchange rates in Irish sterling records transactions in selling Pennsylvania produce and buying linen for Pennsylvania use. Clifford, in describing the trade of this port says, " T h e r e is, likewise, a large number of ships employed in the fall of the year to carry flaxseed, barrel staves, sometimes wheat flour and ship planks, square timber, mahogany boat boards, other lumber, and iron to Ireland." 2 3 T h e increasing trade in flaxseed is also reflected in the exports of Philadelphia. In 1 7 2 9 less than 2,000 bushels were exported. F i v e years later when the newspapers first began to quote flaxseed prices, nearly 10,000 bushels were shipped from the port. B y 1 7 4 0 the trade was nearly three times as large as in 1 7 3 4 , and in the first four years of the 1 7 6 0 ' s the average annual exports were more than 75,000 bushels. Probably the peak of the trade was in 1 7 7 1 when 1 1 0 , 0 0 0 bushels were shipped from Philadelphia. 24 T h e price of flaxseed in the fall of 1 7 3 4 was 4 shillings 6 pence a bushel. B y December, when the major shipping had been completed, it had dropped to 3 shillings 6 pence and the following spring to 3 shillings. T h e crops of the next three years sold mainly at 5 shillings or more. In the last of these y e a r s — 1 7 3 7 — i t was 5 shillings 4 pence in September, but contrary to the usual behavior declined slightly in October. B y December the price was 4 shillings 3 pence. 23

J u l y 2 5 , 1 7 6 7 , T h o m a s C l i f f o r d to Abel C h a p m a n , W h i t b y , E n g l a n d . '* F o r the trade figures used here and elsewhere in this study w e are indebted to M i s s Helen K l o p f e r , w h o has k i n d l y made a v a i l a b l e data of the trade and commerce of P h i l a d e l p h i a which she is in the process of a r r a n g i n g f o r publication in this series of historical studies.

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In spite of the comparatively high price, the trade in flaxseed increased considerably in these years. Even from this rapid growth, Powel could not visualize how large the future exports would be. In 1 7 3 7 he wrote, " I had purchased about forty hogsheads [280 bushels] of flaxseed which I intended under thy care, but the quantity gone and going this fall are so exceeding large that I hope rather to sell it here." 25 In the latter part of 1738 flaxseed never sold above 2 shillings 3 pence, but in October 1 7 3 9 the price rose as high as 4 shillings 4 pence. This must have been a favorable year for this commodity. Powel's hesitation of two years previous had been overcome. H e wrote enthusiastically to a London correspondent, "Flaxseed, which is exported to Ireland, is at 4 shillings 3 pence per bushel and this article is become a great branch of trade in a very few years. I am well satisfied there will be exported from this Province only at least 40,000 bushels this fall for Ireland." 26 The next year, when prices were practically the same, the records of the port of Philadelphia show over 27,000 bushels exported. The fall of 1 7 4 1 was characterized by a marked increase in price. In August the new crop was quoted at 4 shillings 2 pence. B y November it was nearly 6 shillings 9 pence. This rise was attributed to the usual reluctance of the farmers to sell when ships were in the port: "Flaxseed at 5 shillings 6 pence and as it comes slow to market and many buyers 'tis daily rising." 27 Similar movements in prices occurred in the next two years, flaxseed selling as high as 6 shillings 3 pence in November 1742 and 7 shillings 6 pence in October 1743. The entrance of France into the war in 1744 resulted in the demoralization of shipping and an increase in freight rates and shut off much of the demand for flaxseed. T h e crop of 1 7 4 4 sold for 3 shillings 8 pence or less, that of 1745 for 3 shillings or less, that of 1746 for less than 2 shillings 1 0 pence, and that of 1747 for less than 3 shillings 4 pence. Powel explained the situation of these years in writing to London: "Freights are very high. They ask . . . 20 shillings per hogshead for flaxseed to Ireland and a great want of ships." 28 "December i , 1737, Samuel Powel, Jr. to John Barclay, London. " September 26, 1739, Samuel Powel, Jr. to Thomas Hyam, London. " October 2 1 , 1 7 4 1 , Samuel Powel, J r . to Thomas Hyam, London. "December 10, 1745, Samuel Powel, J r . to Thomas Hyam and Son, London.

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It is these years of low prices and restricted demand which explain the high prices in the three years after the Treaty of Aix-la-Chapelle. In December 1748 flaxseed was quoted at 8 shillings a bushel; a year later at 1 1 shillings 8 pence, and in October 1 7 5 0 at 1 0 shillings 6 pence. Somewhat more moderate prices were current in 1 7 5 1 and 1 7 5 2 , when the quantity exported was about 70,000 bushels compared with less than 45,000 in 1 7 5 0 . T h e highest price paid for the crop of 1 7 5 1 was 5 shillings 7 ^ pence, for that of 1 7 5 2 slightly less than 6 shillings 1 1 pence, and for the next year's crop 6 shillings 4 pence. A f t e r this the price of flaxseed dropped still lower. T h e highest price in the fall of 1 7 5 4 was 4 shillings 6 pence; in 1 7 5 5 it was 4 shillings 9 pence and in 1 7 5 6 it was 3 shillings 9 pence. T h e crops from 1 7 5 6 to 1 7 6 2 sold for higher prices each year, except in 1760. In the summer of 1 7 5 7 another Philadelphia merchant wrote, " W e cannot speak with any degree of certainty respecting flaxseed. Our seasons have been favorable." 2 8 B y the following January the price had risen to 6 shillings 3 pence. T h e high price of flaxseed was reflected in the supply of linseed oil. In April 1 7 5 8 Wharton wrote, " T h e scarcity [of linseed oil] is so great that no quantity is to be got but expect shortly to have some from the country." 30 In N o vember flaxseed sold for 6 shillings 9 pence and by October 1 7 5 9 for 7 shillings 6 pence a bushel. In October 1 7 6 0 the newspaper quoted flaxseed at 4 shillings a bushel. This was the first time in four years that flaxseed had been so low in October. A Philadelphia exporter wrote to his agent, " F l a x seed sells now in town 3 shillings 6 pence to 4 shillings per bushel and there is no appearance of a rise this season, having but few orders from Ireland this year and all limited." 3 1 T h e situation in the market must have changed quickly. In D e cember flaxseed sold at 6 shillings 1 penny, an advance of more than fifty per cent in two months. T h e total exports in 1 7 6 0 were more than 95,000 bushels compared with about 73,000 in 1 7 5 9 and 57,000 in 1 7 6 1 . T h e closing of the port by ice probably accounts for the drop in price to 1 shilling 9 pence in February 1 7 6 1 . T h e prices for the " J u n e 16, 1 7 5 7 , Thomas Wharton to Gerard G. Beekman, New York. " A p r i l 14, 1758, Thomas Wharton to Gerard G. Beekman, New York. " October 29, 1760, Daniel Clark to Richard Heartly, Reading-, Pennsylvania.

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crop of that year were higher than for the previous year. In N o v e m ber flaxseed was quoted at 8 shillings a bushel. In January and February 1 7 6 2 , when the river remained open, the price was as high as 8 shillings 6 pence. T h e crop of 1 7 6 2 opened at a still higher price, about 9 shillings 1 0 pence. By January 1 7 6 3 it had reached 1 0 shillings 9 pence. Nearly 77,000 bushels of that crop were exported. In 1 7 6 3 there was a slight increase in trade, but the price had dropped to 7 shillings 5 pence by the close of the year. In general the prices of flaxseed tended downward from 1 7 6 3 to 1769. T h e recession started at the end of 1764 after flaxseed had sold at 1 0 shillings 6 pence in November. In 1 7 6 5 the price was as high as 9 shillings 7 pence. T h e quotations were still lower the next year, the highest one being 6 shillings. T h e crop of 1 7 6 7 was poor, but the price did not respond quickly. As early as J u l y correspondents of Philadelphia houses were informed, " I t is imagined we shall have a very bad crop of flaxseed this season owing to the dryness of the weather." 3 2 This failure of crop was confined to flaxseed.33 E a r l y in September, just before the new crop began to be quoted, Philadelphia merchants reported, " F l a x s e e d , it is imagined, will be much the same as last year but very scarce, as the [flaxseed] crops in general are very indifferent.» 34 In November and December merchants reported frequent transactions above the moderately high newspaper quotations. This height of the prices was attributed to the scarcity in the market here rather than to a greater demand from Ireland. In fact it was reported that the market at Cork was " v e r y bad." 3 5 A few days later the Philadelphia dealers wrote, "Flaxseed freights there is no possibility of procuring here as there is not above 300 hogsheads come to market yet, when formerly the most of the vessels used to be half loaded by this time." 36 E a r l y in December flaxseed was " 7 shillings 6 pence per bushel here and very little prospect of its falling owing to the greatest ™ J u l y 26, 1 7 6 7 , Orr, Dunlope and Glenholme to Park Henderson and Co., Belfast. " J u l y 26, 1 7 6 7 , Orr, Dunlope and Glenholme to Galan Thompson and Co. "We had a good crop of everything but flaxseed and that very bad." "September 3, 1 7 6 7 , Orr, Dunlope and Glenholme to Robert Marshall, Londonderry. " N o v e m b e r 3, 1 7 6 7 , Orr, Dunlope and Glenholme to Greg, Cunningham and Co., New York. " N o v e m b e r 7, 1 7 6 7 , Orr, Dunlope and Glenholme to Walter Marshall and Co., Londonderry.

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scarcity . . . not above one-third" of what was formerly exported. 37 In this year New York was more important than Philadelphia in exporting flaxseed. In the middle of December a correspondent in Dublin was informed, "Flaxseed, 6 shillings 9 pence per bushel, and there will not be much shipped from this port. From N e w York it's thought lower and a greater quantity exported." 38 E a r l y in January 1768 Philadelphia dealers learned that in New Y o r k "flaxseed was 6 shillings per bushel and expected lower." 3 9 T w o days later the same merchant wrote, " T h e r e will be about 10,000 hogsheads flaxseed shipped from New York this year, 8,000 from here." 4 0 T h e season of 1 7 6 7 to 1768 was practically over by January 25. 4 1 T h e next year's crop was more plentiful, but the high prices of " t w o years past owing chiefly to the demand from the eastward" 42 made the dealers hesitate in judging what the price would be "until it comes to market, that article being so uncertain." 43 B y the middle of October very little flaxseed had been brought to market. 44 At the beginning of December the conditions in the Philadelphia market were described as follows: " F l a x s e e d this year, we imagine, . . . will average about 4 shillings 6 pence per bushel. It broke at that price and got up to 5 shillings at which price there was a great quantity sold. It is now fallen to 4 shillings and some imagine it will still be lower." 4 1 Ten days later flaxseed was still selling at 4 shillings per bushel and there was "plenty yet at market." 40 More than 85,000 bushels of flaxseed were exported that year. Some dealers were afraid that the moderate prices of that season had caused too much to be shipped to Ireland. 47 This may have influenced Clifford " DecemDcr 2, 1 7 6 7 , Orr, Dunlope and Glenholme to James L e c k y , Dublin. " D e c e m b e r 1 6 , 1 7 6 7 , Orr, Dunlope and Glenholme to A n d r e w Orr in Dublin. " J a n u a r y 5, 1 7 6 8 , Orr, Dunlope and Glenholme to Andrew Orr in Belfast. " J a n u a r y 7, 1 7 6 8 , Orr, Dunlope and Glenholme to Andrew Orr in Belfast. 41 J a n u a r y 2 5 , 1 7 6 8 , Orr, Dunlope and Glenholme to Benjamin G a u l t , Dublin. " A u g u s t 1 3 , 1 7 6 8 , Orr, Dunlope and Glenholme to Lane, Benson and Vaughan, Cork. " J u l y 9, 1 7 6 8 , Orr, Dunlope and Glenholme to Walter Marshall and Co., Londonderry. " O c t o b e r 1 8 , 1 7 6 8 , Orr, Dunlope and Glenholme to G r e g , Cunningham and Co., New York. 45 December 6, 1 7 6 8 , Orr, Dunlope and Glenholme to William Beath and Co., N'ewry, Ireland. " D e c e m b e r 1 6 , 1 7 6 8 , Orr, Dunlope and Glenholme to Walter M a r s h a l l and Co., Londonderry. 47 J a n u a r y 2, 1 7 6 9 , Orr, Dunlope and Glenholme to Lane, Benson and Vaughan, Cork.

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to think that 50 hogsheads of flaxseed, which he had purchased at a low price, would "sell to advantage" at Bristol "for making oil."*8 The crop of 1769 also sold at a moderate price. T h e highest price quoted in newspapers was 4 shillings 4 pence, 4 pence a bushel lower than in the previous year. From 1770 to 1775 flaxseed had a marked upward tendency. The crop of 1769 was evidently completely bought up at the low prices. By M a y 1770 there was "no flaxseed to be had." 49 By July "flaxseed could not be [bought] at any price."50 In October when the newspaper quotation was nearly 5 shillings 4 pence, Clifford wrote, "Flaxseed is already above our mark and like to raise."51 The next month flaxseed was "too high to think of at the present price, 6 shillings 6 pence per bushel." 52 In December the price was above 7 shillings 9 pence. The crop of 177 x was, as usual when prices were high, late in coming to market.53 In December, flaxseed sold at 8 shillings 3 pence, and, four months later, was "not to be had," 54 although there were small sales at 9 shillings 6 pence. Another Philadelphia dealer wrote in August 1772, " I should be glad of any quantity" of good, clean, merchantable flaxseed. " I t is expected to be in great demand here this fall. I make no doubt [it] will fetch with us from 7 shillings to 8 shillings per bushel." 55 By November flaxseed commanded more than 10 shillings a bushel. Somewhat lower prices were current in December. In a letter to a merchant in New York it was reported, "Flaxseed 9 shillings 9 pence. It's thought [flaxseed] will be lower in two or three weeks as by that time our river may be expected [to be] fast with ice."5® A few days later the prices of flaxseed were "very wavering. It has been at 9 shillings 3 pence this week but is now current at 9 shillings 9 pence to 10 shillings. Some people think it will be higher but this is very uncertain."57 Less than 86,000 bushels were exported at this high price * February 28, 1769, Thomas Clifford to Lancelot Cowper, Bristol, England. " M a y 16, 1770, Thomas Clifford to Lancelot Cowper, Bristol, England. " J u l y 18, 1770, Thomas Clifford to Lancelot Cowper, Bristol, England. 51 October 24, 1770, Thomas Clifford to Lancelot Cowper, Bristol, England. "November 5, 1770, Thomas Clifford to Lancelot Cowper, Bristol, England. ™ November 21, 1771, Thomas Clifford to his son traveling in Great Britain. " A p r i l 30, 1772, Thomas Clifford to Thomas Frank, Bristol, England. " A u g u s t 18, 1772, Chaloner and White to Thomas J. Emery. "December j , 1772, William Pollard to Thomas Pearsall, New York.

OTHER

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73

of 1 7 7 2 compared with 1 1 0 , 0 0 0 bushels at the lower price of 1 7 7 1 . In the summer of 1 7 7 3 Philadelphia merchants confidently wrote, " W e have reason to believe flaxseed will bear as good a price this year as it did last, for they have none of the old seed left on hand in Ireland. . . . It is thought our crop of seed will fall short of the last year." 5 " By October flaxseed was quoted at 7 shillings 9 pence. At the beginning of November, Stocker and Wharton found "that flaxseed is pretty plenty in this part of the country and those that have taken it in within twenty or thirty miles of the city having given a dollar [7 shillings 6 pence] to eight shillings." 58 Before the end of the month flaxseed sold "in small parcels at 9 shillings to 9 shillings 6 pence, though no great quantity has yet come to town nor has the spirit of buying yet caught fast hold of the purchasers. W e think the price will advance but not as high as 12 shillings." 60 The market continued dull. Three days later the New England correspondents were informed that " w e as yet have not had an offer for the seed, but we told one of the buyers that he might have it giving us the highest price it sold for this season. . . . W e find another purchaser has refused to take 100 hogsheads from a neighbour of ours on them terms. Rather than sell at the price going now, which is about 9 shillings 3 pence, we will put it in store a few days, though it seems to be the opinion of many people that it will not be higher this year."" 1 T h e total exports for 1 7 7 3 were less than 70,000 bushels. Since the price that year did not exceed 9 shillings 6 pence it is probable that the merchants were correct in saying that " w e have great reason to believe that there is not two-thirds the orders this year . . . as there was the last and many of them are limited at a lower price than is now going." 42 The prices of 1 7 7 3 were a disappointment to many who had expected higher prices than in the two previous years. "December " A u g u s t 6, merce of Rhode "November merce of Rhode "November merce of Rhode ™ November merce of Rhode "November merce of Rhode

1 0 , 1 7 7 2 , William Pollard to Thomas Pearsall, New York. 1 7 7 3 , Stocker and Wharton to Christopher Champlin, Newport. Island, Vol. I, p. 449. 4, 1 7 7 3 , Stocker and Wharton to Christopher Champlin, Newport. Island, Vol. I, p. 459. 20, 1 7 7 3 , Stocker and Wharton to Christopher Champlin, Newport. Island, Vol. I, p. 4 6 1 . 2 3 , 1 7 7 3 , Stocker and Wharton to Christopher Champlin, Newport. Island, Vol. I, p. 464. 26, 1 7 7 3 , Stocker and Wharton to Christopher Champlin, Newport. Island, Vol. I, p. 464.

ComComComComCom~

74

PRICES

IN COLONIAL

PENNSYLVANIA

By August 1 7 7 4 it was apparent that "the crop of flaxseed this year in this Province and we believe in Maryland and the Jerseys is very scanty so that it is our opinion it will be higher than it was the last year." 63 In September, Stocker and Wharton were not quite so optimistic. T h e y wrote, " w e are of opinion it will bear as good a price here as it did the last year. It is certain in this Province the crop falls short of the last year." 64 There was some hesitation in buying because of the fear of a non-exportation agreement. After it was learned in October 1 7 7 4 that such an agreement would not affect the trade in flaxseed until the following fall at the earliest, the price of flaxseed was pushed up.65 By December, flaxseed was quoted at 12 shillings 1 1 pence and by the following February at 13 shillings 3 pence. Philadelphia merchants appeared to understand better than some in other colonies that the Irish market was limited by the possibility of procuring flaxseed elsewhere: " W e wish she \The Peggy] had brought the flaxseed in preference to its being shipped to Ireland, for we are of the opinion this is the best market. W e are not so sanguine in our expectations from the Irish market as you are. They can be supplied from Holland . . . and will no doubt, when they find there is a scarcity in America, send to Holland for what they may want." 66 In summary, the lowest prices of flaxseed were for the crops from 1744 to 1747 inclusive. In the spring of 1 7 6 1 prices did drop lower than in these years and they may have in other months when prices were not quoted, but relatively little was sold at such distress prices when flaxseed was sacrificed to prevent carrying it over to another year. The low prices of the middle forties were unquestionably caused by the destruction and capture of ships in the war, which decreased the means of transporting flaxseed to the Irish market and caused freight rates to rise to almost prohibitive levels. T h e rise in price when trading was again open after the Treaty of Aix-la-Chapelle was a natural reaction. It was very similar to the rise " A u g u s t 20, 1 7 7 4 , Stocker and Wharton merce of Rhode Island, Vol. I, p. j o 8 . "September 8, 1 7 7 4 , Stocker and Wharton merce of Rhode Island, Vol. I, p. 5 1 2 . "October 25, 1 7 7 4 , Stocker and Wharton merce of Rhode Island, Vol. I, p. 5 1 7 . "December 5, 1 7 7 4 , Stocker and Wharton merce of Rhode Island, Vol. I, p. 522.

to Christopher Champlin, Newport. Comto Christopher Champlin, Newport. Comto Christopher Champlin, Newport. Comto Christopher Champlin, Newport. Com-

OTHER

FARM

PRODUCTS

75

of domestic commodities after the close of the W a r of 1 8 1 2 when domestic produce which had been shut out of the European market was urgently needed there. B y the middle 1 7 5 0 ' s prices of flaxseed had receded to the more moderate level of the thirties. During the Seven Years' W a r the sea remained comparatively open with the result that trade at high prices was possible with Ireland. " O v e r production" lowered the prices, especially in 1768 and 1 7 6 9 , but in the remaining years before the Revolutionary W a r the demand for flaxseed sent its prices to the highest levels of the entire period. Trade in flaxseed involved the merchants in the risk of more sudden changes of price than was likely to occur in any other Colonial produce. Since the commodity was grown in many colonies there was not only a considerable inter-Colonial trade but there was also the chance that the exports of other colonies would upset the calculations upon which local merchants contracted for their supplies. In the flaxseed trade, Philadelphia appears to have been an important market. T h e correspondence of the merchants shows the relationship with other dealers in the colonies, especially those of Rhode Island and N e w Y o r k , and in Cork and Bristol. HEMP

A decade and a half before 1 7 2 0 the British government placed a bounty of £6 a long ton on "hemp, water rotted, bright and clean," produced in the colonies and exported to Great Britain. 67 In 1 7 2 1 hemp f r o m the British plantations was exempted from duty and the bounty continued for a period of sixteen years. 6 * About this time, when the governor of Pennsylvania was casting about for a means of restoring "the planters' credit, without discouraging the merchant," 69 a number of laws, among them "an act for encouraging and raising of hemp, in this province," 70 were passed. Despite the attempt to stimulate the growth and export of hemp and in spite of the fact that the Pennsylvania bounty was given up in 1 7 3 2 because, it was said, " I t hath on experience been found that the " Anderson, Origin of Commerce, Revised by Mr. Coombe, Vol. I l l , p. 222. ""Anderson, of. cit., Vol. I l l , p. 370. " Proud, Robert, The History of Pennsylvania, Vol. II, p. 145. " P r o u d , of. cit., Vol. I I , p. 149, footnote.

PRICES IN COLONIAL

76

PENNSYLVANIA

price to be had for the commodity aforesaid [hemp] is sufficient encouragement for the raising thereof without the payment of so large a bounty, and that by reason of the large quantities of hemp likely to be raised within this province the continuance of so considerable a premium would prove too great a burden for the inhabitants to bear," 71 there is no evidence either in exports or newspaper quotations that hemp was important in commercial dealings. As late as 1736 only 1,680 pounds were exported from Pennsylvania. B y 1740 the exports had increased to nearly 35,000 pounds. The newspapers did not begin regular quotations of hemp until 1749. In the interval between the Treaty of Aix-la-Chapelle and the beginning of the Seven Years' War, the prices of hemp ranged between 3 and 5 pence per pound with an average of about 4 pence. The first newspaper quotation in June 1749 was slightly more than 4 pence a pound. From scattered account book records it appears that the price of hemp was declining. By October 1749 hemp sold for 3 pence a pound. From this low point there was a comparatively steady increase for nearly two years until in August and September 1 7 5 1 it sold for 5 pence a pound. A more gradual and more interrupted period of declining prices followed. During 1 7 5 2 hemp tended to sell for 4^2 pence or more. During 1 7 5 3 and 1 7 5 4 the usual prices were 3^2 to 4 pence, while the scattered prices in 1 7 5 5 were within a range of 3 ^ to 3 ^ pence. These prices were the lowest in the latter part of the Colonial period. In recurring periods of comparatively low prices hemp usually sold for but little less than at the peak of 1 7 5 1 and prices never dropped as low as they had been from 1749 to 1 7 5 0 and from 1 7 5 3 to 1755. During the Seven Years' War hemp increased in price for most of the period, suffering but a slight setback in 1760 and 1 7 6 1 . In August 1756, when one merchant sold hemp for 4 ^ pence, another merchant wrote that "hemp is scarce and [ I ] do not well know the price." 72 B y October hemp was selling at 5 pence a pound, a price equal to the peak of five years previous. At the opening of the next season for hemp in the latter part of 1 7 5 7 its price had advanced to Sx/a pence. B y November the continuation of the rising tendency n

The Statutes at Large of Pennsylvania from 1681 to 1801, Chapter CCCXXV1II. "August 15, 1756, Joseph Richardson to John Powell, Boston.

OTHER

FARM

PRODUCTS

77

lifted the price of hemp to 6 pence, which was the quotation until early in 1759. There was a recession in prices in 1760 and 1761 during which hemp never sold for more than 5 pence and even dipped below this prevailing price. During 1762 the highest prices of Colonial years were reached when hemp, which had fallen to as low a price as 4 pence in November 1761, was selling at 9 pence by October 1762. In the first year of peace, hemp maintained a minimum price of 7 pence. In 1764, however, the first price quoted—in M a r c h — w a s 5 pence a pound, but by August hemp had advanced to 7^4 pence. It was in this year that the British interest in Colonial production of hemp was revived. A s a result, a bounty of £8 a ton for hemp was granted by Parliament, to apply from June 1764 to June 1771. 7 3 T h e price of hemp in the Philadelphia market, which at its yearly maximum had sold for 9 pence in 1762, for 8 pence in 1763, and for 7^4 pence in 1764, tended still lower, except for seasonal fluctuations, until 1768 to 1769. In 1765 the highest price of hemp was 6^2 pence. Three years later it had been reduced to 4 ^ pence. This price held from April 1768 to April 1769. Although one merchant quoted 4 to 4^4 pence as the current price during part of the period, he added that hemp "cannot be obtained for it at present."' 4 In M a y 1769 the price of hemp began to advance. By June 1770 as much as 6 pence a pound was paid for it. Except for a few scattered months in which the price of hemp was slightly lower, 6 pence continued to be quoted as late as March 1773. During this period the bounty was reduced from £8 a ton to £6 a ton in accordance with the act of 1764.™ From March to June 1773 the price declined to 5 pence and held at this level until well into 1775. S U M M A R Y OF T H E PRICES OF PENNSYLVANIA F A R M PRODUCTS

It is important to contrast the movements in the prices of the various farm products of Pennsylvania. It has already been shown that the trend in the price of corn was not as steeply upward as that of wheat during the latter part of the Colonial period and that often the ™ Gray, L . C., of. cit., Vol. I, p. t go. September 30, 1768, Orr, Dunlope and Glenholme to Ewing and Brown, Baltimore. " G r a y , L . C., of. cit., Vol. I, p. 180.

74

78

PRICES

IN COLONIAL

PENNSYLVANIA

directions of their price movements diverged. When one considers the differences in the season of the various agricultural products and the different uses to which they were put, it is not surprising that the farm problem in Colonial Pennsylvania was not unified and that one product might rise in price when another was falling. This condition becomes even more apparent when the prices of flaxseed and hemp are contrasted with those of wheat and corn. Although the behavior of the prices of flaxseed and hemp differed in that the swings in the series of flaxseed prices were greater than those of any other farm product and those of hemp were the most moderate, the two series were similar in that neither had the strong upward trend in the later part of the Colonial period which dominated the price movements of corn and wheat. The prices of flaxseed did advance from 1768 to 1 7 7 5 , but there was an extreme recession in 1 7 7 4 in anticipation of a non-exportation agreement and when the danger of that was removed in 1 7 7 5 prices soared higher than they had ever been before. Another major distinction in the price movement of these farm products was that the swings in both hemp and flaxseed were of longer duration than those of wheat and corn. In addition to these general differences in behavior, there were specific years in which the direction of the movements of prices diverged. For example, in 1 7 4 1 the prices of wheat, corn, and flaxseed were high. In the following years wheat receded in price while corn maintained a high level, in 1 7 4 2 , before receding, and flaxseed advanced to even higher prices in 1743. Again flaxseed was especially low in 1746 when prices of grains had advanced substantially from the low of two years before. In 1756 wheat and corn were high, hemp was advancing from low prices in the previous years, and flaxseed was relatively cheap. Another year in which the prices of Pennsylvania farm products did not move together was 1 7 7 0 when Indian corn was dearer than at any other time in the Colonial period, when hemp reached a moderate plateau in prices which it maintained for several years, and when wheat and flaxseed were advancing towards a peak which came in 1 7 7 2 for wheat but not until 1 7 7 5 for flaxseed. T h e maximum prices of flaxseed in 1 7 7 5 were reached in a year when other farm products were relatively low in price.

OTHER

FARM

PRODUCTS

79

In the extent of the upward movement in their prices, in the duration of their price swings, and in the behavior of their prices in specific periods are to be found significant contrasts among the various agricultural crops of Pennsylvania. TOBACCO

In addition to these farm products raised in Pennsylvania, the prices of two agricultural staples from the southern colonies were quoted in the Philadelphia market. T h e prices of leaf tobacco and rice not only reflect the difference in fluctuation possible in the price movements of commodities with different uses, but are also influenced by the varying climatic conditions in other sections of North America. In the early months of 1 7 2 0 , tobacco sold at 1 4 Pennsylvania shillings per 100 pounds. By June 1 7 2 1 its price had been reduced to 9 shillings 3 pence. For the remainder of that year and for most of the next year the prevailing price was 1 0 shillings 6 pence. B y M a y 1 7 2 4 the price of tobacco had increased to 1 7 shillings 3 pence and by September to 27 shillings 9 pence. In the months from M a y to September 1 7 2 5 tobacco commanded 29 shillings 3 pence, the maximum price of the fifty-six-year period. These high prices may be accounted for by the unusually short crop of 1 7 2 4 in Maryland and Virginia. 76 T h e fall in prices was more precipitous than the rise. By December 1 7 2 5 the quotation had fallen to 27 shillings 6 pence, in the next three months to 18 shillings 6 pence, in the three months following to 16 shillings 8 pence, by August 1 7 2 6 to 1 6 shillings, and by November to 1 4 shillings. F r o m 1 7 2 6 to 1 7 4 6 the prices of tobacco fluctuated around an average of 1 4 shillings iol/2 pence. T h e lowest prices in these years were in 1 7 3 0 and 1 7 3 1 when tobacco sold at 1 0 to 1 1 shillings. It is probable that at least at the close of 1 7 3 0 , tobacco might not have fallen so low in the Philadelphia market if there had been a ready means for transportation. Powel commented that " i t is vain to buy tobacco though it is pretty cheap" because there was no prospect of a ship sailing to London. 77 In 1 7 3 2 the price advanced, but not as much as might have been " G r a y , L. C., op. cit., Vol. I, p. 270. '* December 28, 1730, Samuel Powel, J r . to Thomas Hyam, London.

80

PRICES IN COLONIAL

PENNSYLVANIA

OTHER FARM

PRODUCTS PERCENT

PRICES OF T O B A C C O I N P H I L A D E L P H I A ,

Average, 1 7 4 1 - 1 7 4 5 )

1720-1772

82

PRICES

IN COLONIAL

PENNSYLVANIA

expected f r o m the scarcity in the market which prevented P o w e l from shipping much. H e explained to H y a m in London that " n o quantity of good tobacco can be got together this fall." 7 8 T h e price of tobacco was so high and there was so little in the market in 1734. that Powel disregarded a request to purchase tobacco.79 L a t e r in this year as much as 20 shillings was paid for 1 0 0 pounds of tobacco. L o w e r prices prevailed from the latter part of 1 7 3 5 until well into 1 7 3 7 . I n the spring of 1 7 3 6 John Reynell predicted, "Tobacco in all appearances is like to be pretty reasonable this summer." 8 0 It was not until April 1 7 3 7 that the price of tobacco rose above the 1 5 shillings to which it had settled in the previous August. B y September 1 7 3 7 tobacco sold for 20 shillings. F o r more than three years it tended to decline in price until it sold for 1 2 shillings in the last quarter of 1 7 4 0 and the first quarter of 1 7 4 1 . T h e war with Spain did not have an immediate or extreme effect on the price of tobacco in the Philadelphia market. Although it was quoted at 1 8 shillings as early as J u l y 1 7 4 1 , a considerable dip in prices followed and it was nearly a year before the price of 18 shillings was again paid for tobacco. T h e peak of prices in the war period before France entered was 19 shillings in September and October 1 7 4 2 , considerably later than the corresponding point in the movement of other prices. T h e n the price of tobacco receded rapidly for nearly two years. In J u l y 1 7 4 4 , it was 1 1 shillings 6 pence. T h e low level of prices in 1 7 4 4 and 1 7 4 5 is indicated by the fact that tobacco sold between 1 1 shillings 6 pence and 1 2 shillings 9 pence from M a y 1 7 4 4 to M a y 1 7 4 5 . In general, during the decade after 1 7 4 5 , higher prices for tobacco prevailed. A s much as 1 9 or 20 shillings was paid for tobacco in 1 7 4 7 and 1 7 4 8 . I n the early months of 1 7 4 9 there was a sharp recession in which the price dropped as low as 1 3 shillings 4 pence, but by August it had advanced to more than 19 shillings 6 pence. F r o m 1 7 5 0 to 1 7 5 3 the price fluctuated around 2 0 shillings. B y the close of 1 7 5 4 it had fallen to 1 5 shillings 2 pence, in March 1 7 5 5 to 1 4 shillings, " N o v e m b e r 10, 1 7 3 2 , Samuel Powel, J r . to Thomas Hyam, London. ™ May 28, 1 7 3 4 , Samuel Powel, J r . to Thomas Hyam, London. " M a r c h 1 3 , 1 7 3 6 , John Reynell to Richard Deeble, Plymouth, England.

OTHER

FARM

PRODUCTS

83

and for the rest of 1 7 5 5 and most of 1 7 5 6 it was comparatively l o w , fluctuating around 15 shillings. A t no time in this recession was tobacco as cheap as it had been in 1 7 4 4 and 1745. T h e rise of the next swing in prices did not make much progress until 1 7 5 7 , when tobacco sold around 17 shillings 6 pence. In the f o l l o w i n g year the average price was 18 shillings 4 pence. F r o m 1 7 5 9 to 1763 there were many severe changes in price around a higher l e v e l of approximately 20 shillings 6 pence. T h e contraction of prices l o w -

CHART

VII—ANNUAL

R E L A T I V E S OF W H O L E S A L E

T O B A C C O IN P H I L A D E L P H I A ,

PRICES

OF

1720-1772

(Base—Monthly Average, 1741-1745) ered tobacco to 17 shillings 6 pence for the last quarter of 1 7 6 3 , for most of 1 7 6 4 and 1 7 6 5 , and even the early months of 1766. A g a i n , prices of tobacco did not decline to as low a level as at the end of the previous swing. F r o m the latter part of 1766 to J u l y 1769 tobacco sold at a comparatively high and stable level. T h e usual quotation was 22 shillings 6 pence, but in 1767 and 1768 there was some tendency for the price to sag. F r o m 1769 to 1 7 7 2 a still higher level prevailed. In the first t w o years tobacco twice reached 31 shillings 3 pence only to drop

84

PRICES

IN COLONIAL

PENNSYLVANIA

precipitously afterwards, but in the last quarter of 1770 a price of 32 shillings 6 pence was established. This price was quoted for most of the next two years. In summary, the prices of tobacco show, in the period 1720 to 1775, considerable stability except in the swing between 1721 and 1726. In the other years, there were either minor variations which average out as a horizontal trend or a long moderate swing. From 1747 to 1764 the price of tobacco was at a higher level than from 1727 to 1746, but the steepest rise occurred between 1764 and 1771 when the price advanced to a considerably higher plateau which probably persisted to the end of the period. T h e comparison of the annual prices of tobacco with those of flour shows that in spite of the large fluctuations in the quantity of tobacco which would exchange for a hundredweight of flour, there seemed to be an underlying tendency in the decades of the twenties and thirties for tobacco to appreciate in value in relation to flour. During most of the years of the twenties between 60 and 75 pounds of tobacco were required in barter for a hundredweight of flour, but in the next decade from 50 to 70 pounds would suffice. In each of the next three decades there were successive declines in the relative value of tobacco. In the forties between 60 and 65 pounds of tobacco usually exchanged for a hundredweight of flour; in the fifties, 65 to 70 pounds; and in the sixties, between 70 and 80 pounds of tobacco. In the years from 1769 to 1772 when tobacco increased substantially in price, 54 to 62 pounds were adequate to exchange for 1 1 2 pounds of flour. RICE

Rice, which, by 1720, had become an acknowledged staple in South Carolina, 81 formed a substantial part of the trade of Philadelphia, both as an import and an export. Together with naval stores, rice constituted the bulk of the return cargoes in the ships which carried Pennsylvania produce to the Carolinas. A great deal of the rice thus imported was consumed in the colony, but large amounts were also reshipped. F o r example, in 1730 when less than 3,600 hundredweight 88 of rice were imported, 2,250 hundredweight were exported, Gray, L . C., of. cit., Vol. I, pp. 277 ff. "* One hundreweight of rice is equal to 1 1 2 pounds. n

OTHER

FARM

PRODUCTS

85

while in 1768 when there were imports of less than 5,000 hundredweight the exports approximated 2,000 hundredweight. At least once in other years when the import figures are not available, exports of rice from the port of Philadelphia exceeded 12,000 hundredweight. The reason why it was possible to carry on an export trade from the port of Philadelphia is explained in a letter from Thomas Clifford to a Bristol merchant urging him to purchase rice from Philadelphia. " W e have," he wrote, "three pretty large brigs constantly trading from here to Charles Town and the balance of trade being much in our favour they are much at a loss [in] what to invest the proceeds of their cargo. If it [rice] would sell here to save themselves and pay but a little freight they will bring it. W e certainly can sometimes, for the foregoing reasons, ship rice lower from here than to send a vessel there to take it in." 83 The prices of rice in Colonial years were characterized by long, pronounced swings, marked by more extreme peaks than were found in the movements of prices of either wheat or corn before 1 7 4 1 and more extreme than those of corn even up to the beginning of the sixties. When our record starts in 1 7 2 0 , rice was at a fairly high level and, contrary to the tendency of most commodities, reached a still higher level in the last five months of 1 7 2 0 . From here prices declined mildly and, except for a few high months in the summer of 1 7 2 3 , continued to decline until December of that year. During the next ten years there was a long swing in the prices of rice. In the upswing of these years prices advanced from 1 2 shillings 6 pence a hundredweight in December 1 7 2 3 to 1 5 shillings 6 pence by J u l y of the next year. This price was held from J u l y 1 7 2 4 through January 1 7 2 5 . The price advanced more in 1 7 2 5 . T h e high price of 22 shillings a hundredweight was the level reached by rice in August — a level which was maintained in the closing months of that year and the first three months of 1 7 2 6 . In the next year and ten months rice was scarce in Philadelphia and for most of this time no rice was to be had; consequently the peak of this long price swing is indeterminate. The fact that when reporting was revived in February 1728 prices of rice were as high as 21 shillings makes one doubt that the "December 20, 1 7 7 1 , Thomas Clifford to Thomas Frank, Bristol, England.

86

PRICES

IN COLONIAL

PENNSYLVANIA

PER CENT

CHART V I I I — M O N T H L Y

R E L A T I V E S OF

WHOLESALE

(Base—Monthly

OTHER

FARM

87

PRODUCTS PER C E N T

PRICES OF R I C E IN P H I L A D E L P H I A ,

Average, 1 7 4 1 - 1 7 4 5 )

I720-1775

88

PRICES IN COLONIAL

PENNSYLVANIA

highest levels of this price swing should be assumed to have been reached in the early months of 1726. From 1728 prices declined slowly, with irregular monthly variations, until 1731. By August 1731 the low price of 14 shillings was reached and it was held through April 1732. From a merchant's accounts we are able to say that the price of rice in the Philadelphia market had advanced by June 1732. By June 1733 it had reached a lower level than it had receded to in the months of lowest prices in 1731. By this time rice was selling at about a half a shilling a hundredweight below the lowest level of 1723 from which the long price swing started. During much of the period from 1720 to 1733 and especially from 1725 to the middle of 1731, rice was selling at a high level and one can understand the comment of Dr. Lewis Gray that "the growth of the industry was very rapid during the decade ending with 1729. In the next price swing, quotations of rice advanced from a low of 12 shillings a hundredweight in June and July 1733 to 18 shillings at least as early as September 1734. This was the prevailing price until it reached 20 shillings in July 1735. At this time some rice was reaching Philadelphia by way of London, and it was felt that this supply would be able to compete with that brought from the southern colonies. Powel, acknowledging the shipment, wrote, " T h e rice is near, and I believe as cheap as from Carolina considering the difference of money, etc. and the freight being very low.,,s® Somewhat lower prices prevailed throughout the first half of 1736 and there was a dip to a still lower level in April 1737, but the typical price in the last half of 1736 and in 1737 was 18 shillings a hundredweight. In the next year prices rose to the peak of this swing, holding the high level of 22 shillings a hundredweight from June to August and repeating this same level in December 1738. A t this time prices of rice in Philadelphia reached the same height they had attained at the maximum of 1725 and in the early months of 1726. From these levels the downward slope was especially steep and a decline from 22 shillings a hundredweight to 11 shillings was effected in only nine" Gray, L. C., of. cit., Vol. I, p. 287. "December 5, 1735, Samuel Powel, Jr. to Benjamin Bell, London.

OTHER FARM

PRODUCTS

89

teen months. The level reached at this time, which was held from J u l y to December 1740, marked the lowest prices at which rice sold in the years of our record up to this time. Prices then were 50 per cent below the equal peaks of 1 7 2 5 and 1738. In the next five and one-half years there was a minor swing which, from a long-run point of view, may be regarded as an interruption in the downswing of prices from the peak of 1738. This advance, which took place when rice was much needed in Philadelphia, 88 lasted only from January to August 1 7 4 1 , but the high price persisted for three months from August to October 1 7 4 1 . The increase in this rapid advance was 81.8 per cent or from 1 1 to 20 shillings. By the close of 1 7 4 1 prices of rice were headed downward in the most severe decline in Colonial years. By the end of 1742 prices were 30 per cent below the peak of 1 7 4 1 . The recession was sufficiently checked by March 1743 to hold prices fairly well throughout the rest of 1 7 4 3 and to the end of the first quarter of 1 7 4 5 , when there was an abrupt decline. Rice sold as low as 7 shillings 6 pence a hundredweight in M a y 1745 and was no higher than 8 shillings in June and July. Even in the middle of August the information sent to South Carolina was, "Rice is yet a dull article here." 87 Before the close of the month there was a sufficient increase in price to bring a quotation of 10 shillings and rice sold for 1 0 to 1 1 shillings in the four remaining months of 1745. Even then the demand was not brisk since the report to Carolina was, "There is no great call for rice yet, though we have very little left." Looking forward to the prospect of better sales of rice in the coming year, the Philadelphia merchant added in the same letter, " I am apt to think the price and the demand may be better in the spring if no great quantity comes in." M Instead, the year 1746 opened with rice selling at 7 shillings 6 pence a hundredweight, as low as it had been in M a y 1745. It had fallen to 7 shillings by M a y 1746, when so insignificant was the demand for rice that a Philadelphia merchant trading in the commodity had to dispose of it in small quantities more typical of retail transactions than of the customary methods of shippers. Powel illustrated " A p r i l 1 7 , 1 7 4 1 , Robert Ellis to Thomas Jenys, Charleston, South Carolina. " August 16, 1 7 4 5 , Samuel Powel, J r . to Gabriel Manigault, South Carolina. "October 26, 1 7 4 J , Samuel Powel, J r . to Gabriel Manigault, South Carolina.

90

PRICES

IN COLONIAL

PENNSYLVANIA

the character of the trade in this month by pointing out the number of separate items which went to make up his accounting of sales of rice indicating "what a poor demand is for it and what a small parcel goes to one person and but for its being in small casks and bags it must have been mostly unsold." 89 Seeing no prospect of better terms of sale he added, " I would not advise thee sending any more this summer, as there is now about 500 large casks in town which, if it be sold, must be at a very low rate so as to be shipped off from hence, for our country cannot use the half of it." 89 In June the market for rice was so excessively dull that there seemed to be no consumers of it either at home or abroad. It was so disproportionately low in terms of other goods that Powel wrote to the Carolina shipper, " A s to rice I believe it is the worst commodity in the world of the provision kind at present. At least, it is so here. It will not sell at any price. . . . It is so low abroad it cannot sell to be shipped off. T h e only chance I can think of is for London, and we have at present no ship bound there." 90 At this time, when facilities for shipping to other areas were lacking, Powel, hopefully casting about for some market for rice when he had " n o expectation of parting with it here," had to write, " I was in hopes it might be taken off for London, if no other way, but that too is like to fail. W e have advice from thence that the mortality amongst the cattle in England has so greatly lessened their milk that it has a great effect on the sale of rice and reduced the price so low that it cannot be shipped at above 3 shillings per hundredweight, this money, from hence." 91 Since this was less than half the price it was selling for in Philadelphia there was not much chance of diminishing the supply in the city, though it was thought that " o u r consumption cannot take one-fourth of what is in town." 92 Under these circumstances, prices of rice continued to decline until October. It then sold by the hundredweight for 6 shillings 2 pence. At this low level the long decline in prices of rice which lasted from November 1 7 4 1 to October 1 7 4 6 was finally checked. Rice was then "May June *' June " June

7, i, 4, 4,

1746, 1746, 1746, 1746,

Samuel Samuel Samuel Samuel

Powel, Powel, Powel, Powel,

Jr. Jr. Jr. Jr.

to to to to

Gabriel Manigault, South Carolina. Gabriel Manigault, South Carolina. Gabriel Manigault, South Carolina. William Roper, South Carolina.

OTHER

FARM

PRODUCTS

91

selling at the minimum price of Colonial years, being 43.9 per cent under the unusually low prices received for it in the last six months of 1 7 4 0 , at little more than a fourth of the price it sold for in the peak of 1 7 3 8 , and at less than a third of its price in 1 7 4 1 . T h e length and the severity of the downswing in the prices of rice can be explained by the exchange rates and the freight charges of this period, since rice was an article that did not bear well the high freight charges of war time. In fact, rice seems to have been more adversely affected by the war than most Colonial products. T h e years from 1 7 4 6 to 1 7 5 8 may be described as constituting one long underlying price swing with three separate complete oscillations in prices superimposed upon it. T h e first of these lasted from October 1 7 4 6 to April or M a y 1 7 5 2 . In this period, prices of rice advanced from November 1 7 4 6 to J u l y 1 7 5 0 . T h e increase was overdue in Philadelphia and probably the depths of 1 7 4 6 were unwarranted. By April 1 7 4 7 merchants in the city had awakened to the fact that prices of rice were higher in Charleston than they had been the year before and that rice was scarce in Philadelphia. 93 During the last five months of 1 7 4 7 none was to be had in the city. F r o m then the advance was continuous, except for periods such as in 1748 when the same price persisted for nine months and a long period from J u l y 1 7 4 9 to June 1 7 5 0 when the high price of 20 shillings a hundredweight was adhered to, until the maximum of this price swing was reached in J u l y to September 1 7 5 0 . T h e recession from this high level was not very severe and was halted at levels far above all previous low prices. In the short stretch of twelve months the peak of the second oscillation and the central point of this larger price swing of which it is a part had been reached. Though the extremely high quotation of 27 shillings 6 pence lasted only a month, prices of rice kept at high levels until September. Doubtless the impulse of the upswing from 1 7 5 2 to 1 7 5 3 arose out of crop conditions in the Carolinas, whose total exports of rice were especially low in 1 7 5 2 . " At any rate, by June 1 7 5 4 prices of rice had declined to the level of 1 7 5 2 from which this second price movement had started. " A p r i l 1 6 , 1 7 4 7 , Samuel P o w e l , J r . to Gabriel M a n i g a u l t , South Carolina. " G r a y , L . C . , o f . cit., V o l . I I , p. 1 0 3 0 .

92

PRICES

IN COLONIAL

PENNSYLVANIA

T h e third oscillation, the last of the three price movements between 1746 and 1758, was characterized by an abrupt rise in the summer of 1754 to a fairly high level which lasted only a few months. From then the price tapered off gradually until a low level of 12 shillings was reached in February and March 1758. Thus in the first part of the Seven Years' W a r prices of rice were adversely affected, as they had been during the conduct of the previous war. Y e t there was a moderate swing in the prices of rice between February 1758 and August 1762. T h e rising tendency lasted only until August 1759, but slightly lower levels, with some irregularity, were maintained through the first half of 1761. A t the close of the year Clifford wrote, "Rice is a very unsaleable article here at present." 94 W h i l e the tendency was downward from August 1759, the severest part of the decline was in 1762 when rice sold at the lowest price it reached in the years after 1746 with the exception of a few months in 1758. T h e lowest price of 1762 was 12 shillings 8 pence. By October it had rebounded to 14 shillings, which was the prevailing price in the first half of 1763. Better prices seemed then in prospect and a purchaser was pressed to buy at the close of March with the statement: "This is the best season of the year to find rice here. 'Tis now 14 shillings to 14 shillings 6 pence per hundredweight and I think will rise."96 T h e advance was delayed until August, but was then enough to keep prices of rice at 17 shillings for four months. Y e t there was no vigorous demand for rice and in the next two and one-third years it never sold above 15 shillings a hundredweight and averaged only 14 shillings 6 pence in 1764 and 14 shillings 4 pence in 1765. Normally the most substantial trade in rice by the Philadelphia dealers was carried on during the spring months. A t such times they could ship it on more favorable terms than at harvest time when it had some local demand. By fall it was usually scarcer and higher in price.97 T h e variety of outlets for it and the recurrence of periods when sale was dull led usually to a considerable fluctuation in prices at different times within the year. "December 14, 1761, Thomas Clifford to Nicholson and Bampfield, Charleston, South Carolina. " M a r c h 19, 1763, Thomas Clifford to Nicholson and Bampfield, Charleston, South Carolina. " J u l y 10, 1764, Francis and Rolfe to Nicholas Brown and Co., Providence.

OTHER FARM

PRODUCTS

93

Considering the marked frequency of variation in the monthly quotations of rice, the behavior of its price between 1 7 6 6 and 1 7 7 0 is unusual. Trade was dull at the beginning of 1 7 6 6 and prices rose only moderately until M a y . In that month an advance of 2 shillings 6 pence a hundredweight over the price of the previous month was effected. With only minor fluctuations, prices centered about this level until the end of April 1 7 7 0 and even then declined only to 1 5 shillings for part of the year 1 7 7 0 . In these "prosperous" years in rice production it is notable that prices never reached such peaks as occurred in earlier price swings, though one might have expected an extreme rise in 1 7 6 6 when losses of rice by floods caused a prohibition of exports from Georgia and South Carolina. 98 T h e only reflection in prices in Philadelphia was a rise of a f e w shillings followed by nearly four years of marked stability. F r o m the level of 1 5 shillings reached at the end of the slight recession in 1 7 7 0 , the price of rice rose to 1 6 shillings by October and held, except in November, until M a y 1 7 7 1 when a long upswing began which carried the price to 27 shillings in August 1 7 7 2 . In this month prices were too high to meet the terms upon which it could be sent abroad. C l i f f o r d explained to a Bristol merchant, " T h e y now ask 2 5 shillings to 26 shillings and very little to be had. T h e r e has been no export prices quoted by thee that would answer to ship for at the prices here or otherways." 9 9 I n this upswing, rice sold for the highest price ever paid for it in Colonial years except for a single month at the summit of prices in 1 7 5 3 . Throughout the whole year rice was scarce in the Philadelphia market and the continuous comment was that there was " v e r y little to be had," 1 0 0 a situation that was doubtless aggravated by the floods of 1 7 7 1 . 1 0 1 T o w a r d the f a l l of 1 7 7 2 news of a good rice crop in Carolina began to influence the Philadelphia market. 1 0 2 T h o u g h prices dropped in the last four months of 1 7 7 2 , it was not until the beginning of 1 7 7 3 that a rapid decline, arrested only slightly in a few months of " • G r a y , L . C., op. cit., Vol. I, p. 289. " " A u g u s t 4, 1 7 7 2 , T h o m a s C l i f f o r d to T h o m a s F r a n k , Bristol, E n g l a n d . " " A p r i l 30 and August 4 , 1 7 7 2 , T h o m a s C l i f f o r d to T h o m a s F r a n k , Bristol, E n g land. G r a y , L . C., op. cit., Vol. I , p. 290. 102 October 24, 1 7 7 2 , T h o m a s C l i f f o r d to Robert and J o h n M u r r a y , London.

94

PRICES

IN COLONIAL

PENNSYLVANIA

1773, started a downswing that was not checked until the price of rice had reached 14 shillings 3 pence by M a y 1775. It is certain that some part of this decline was induced by the unwillingness of merchants to trade in the commodity while fear of war was felt, though doubtless the first part of the decline was brought about by the abundance of the rice crop in 1772, just as the high level of prices in that year was caused by the crop losses of 1 7 7 1 . Caution in purchasing rice in the face of growing difficulties with Great Britain was expressed by Pollard in February 1774 when he wrote, " I f a war PERCENT

PERCENT RICE

sj 1720

f\

A

/V\J

V

'

1740

1710

CHART I X — A N N U A L

1750

1760

1770

R E L A T I V E S OF W H O L E S A L E PRICES OF R I C E

1720-1775 (Base—Monthly Average, 1741-1745) IN

PHILADELPHIA,

should break out rice may fall one half in price for it is an article that will not bear the advance price of an extraordinary freight." 103 T h a t merchants were overcautious is evidenced by the marked advance in rice in this market in the closing months of 1775 after it was realized that no rice was being shipped from Charleston and that " f o r some time past they have even refused to let any be brought away for the neighboring colonies." 104 T h e comparison of the prices of rice and flour introduces the consideration of a domestic staple in relation to a staple mainly from M F e b r u a r y i , 1 7 7 4 , W i l l i a m P o l l a r d in Charleston to B e n j a m i n and John B o w e r , Manchester, E n g l a n d . " " J u l y 1 5 , 1 7 7 5 , T h o m a s C l i f f o r d to T h o m a s F r a n k , Bristol, E n g l a n d .

OTHER

FARM

PRODUCTS

95

South Carolina. During the era from 1 7 2 0 to 1 7 7 5 there were three distinct levels around which fluctuations from year to year centered. From 1 7 2 0 to 1 7 3 9 the usual ratio was between 60 and 70 pounds of rice for 1 1 2 pounds of flour. In one year rice was relatively high enough to lower the ratio to slightly less than 60 pounds and in another year almost to 50 pounds. At the other extreme, rice in one year was so low that slightly more than 84 pounds of it were needed to exchange for a hundredweight of flour. A distinctly different level characterized the years from 1 7 4 0 to 1 7 6 0 inclusive. Only once in this period was rice relatively high enough so that less than 70 pounds of it would purchase a hundredweight of flour. E v e n within this period there was variation in level. In almost an equal number of years the exchange ratio was between 70 and 80 pounds and between 90 and 100 pounds. In a smaller number of years it fell between 80 and 90. F r o m 1 7 6 1 to 1 7 7 5 another shift occurred which lowered still further the exchange value of rice for flour. In all of these years at least 90 pounds of rice were required to equal the price of 1 1 2 pounds of flour and there was a tendency towards even a greater amount: in five years the ratio fell between 90 and 100, and in an equal number of years it was between 100 and 1 1 0 . In the other five years of the period more than 1 1 2 pounds of rice were needed to exchange for the hundredweight of flour. These exchange ratios bring out forcefully the fundamental differences in the behavior of the prices of rice and flour. T h e most significant of these is that rice showed a horizontal trend in prices during the entire Colonial period. Other contrasts are that in the years before 1 7 3 9 rice was relatively more expensive than flour, whether measured from the average of 1 7 4 1 to 1 7 4 5 or by the amount of rice that would exchange for flour; and in r 745 and 1 7 4 6 when rice was declining even further, flour was advancing considerably in price.

C H A P T E R IV

PRICES OF BEEF A N D PORK M e a t products were of less importance in the early trade of P h i l a delphia than either grains or products derived f r o m grains. O f the t w o meat products for which wholesale prices are available, pork was shipped in much larger quantities during the Colonial period than beef, although both entered into trade in increasing amounts as the years passed. A s early as 1696 Gabriel T h o m a s had mentioned pork and beef "salted and barreled u p " among the exports in the " e x t e n d e d traffic and commerce" of Philadelphia. 1 T h e method of barreling up was frequently considered as a means of insuring the reputation of staple commodities in foreign markets. " I n the year 1 7 2 7 , a law was enacted to regulate the exportation of beef and pork, and an inspector appointed with extensive authority, to search ships and stores for either article, intended to be exported." 2 A s part of the law passed at this time for preventing " u n f a i r practices in the packing of beef and pork for exportation," an amendment was proposed providing that " t h e barrel of pork should contain 31^2 gallons in conformity to the English standard and the practice of our neighboring government in N e w Y o r k . " 3 T h e law passed in 1 7 2 7 also provided penalties for "shipping any cask without the provincial brand or mark." 4 T h i s seems to be a law which was observed in local practice in the city, at the customs house, and in export trade. T h e same size of cask was in use in the forties. Answering an inquiry about the provisions of P h i l a d e l phia, Samuel P o w e l wrote, " I had forgot I was to send thee the packers' law etc., though upon enquiry I find it was made for a limited term which is l o n g since expired. It obliged all beef and pork ' T h o m a s , Gabriel, "Account of Philadelphia and the Province to the Y e a r 1696," in Watson, John F., Annals of Philadelphia and Pennsylvania, Vol. I, p. 70. ' M e a s e , James, The Picture of Philadelphia, p. 56. 'Colonial Records, Vol. I l l , August 15, 1 7 2 7 , p. 277. 4 Mease, J., loc. cit. 96

BEEF AND PORK

97

to be packed in barrels of 31 gallons and all to be repacked b y an officer appointed here and to be by him branded with a provincial brand. T h o u g h the law is expired the size of the cask is g e n e r a l l y kept up." 5 In the revision of rules for inspection of beef and pork in 1789 the size of the barrels was changed in order that the number of pounds contained in each w o u l d be equal instead of the cubic content as under the earlier legislation.® T h r o u g h o u t this chapter reference to the quantity of exports of beef and pork and to the prices at which they were sold at wholesale will be made in terms of a barrel of 3 x gallons for both articles. T h i s means that the actual number of pounds in the barrel of beef under the early rules for packing was somewhat more than the number in the barrel of pork. 7 T h e difference is not enough to warrant the conversion of the price series of beef and pork into identical units of weight, especially since the customary method of quoting beef and pork in merchants' statements was by the barrel. N o continuous prices of other meat products such as hams, bacon, and lard could be procured. Some of these were shipped in large quantities. A s early as 1 7 3 0 , upwards of 34,000 pounds of bacon were reported in the annual exports of Philadelphia. 8 B y 1 7 4 0 exports of bacon were as much as 81,000 pounds. H a m s , which were listed as " g a m m o n s , " amounted to 297,000 pounds in 1 7 6 0 and to nearly 320,000 in 1 7 6 2 . L a r d appeared later than hams and bacon in the list of exports, but by the late seventies the annual exports approached 50,000 pounds. Beef and pork w e r e not as important in Pennsylvania as in some other colonies. Connecticut was rated by L o r d Sheffield as the chief source of supply for beef and the Carolinas for pork. 9 T h e location of Pennsylvania m i d w a y between the principal producing areas g a v e it a share to some extent in the trade in both beef and pork. C o m p a r e d with their later prices, beef and pork were both selling " J u l y 1 6 , 1 7 4 6 , S a m u e l P o w e l , J r . to G a b r i e l M a n i g a u l t , South C a r o l i n a . " M e a s e , J., loc. cit. ' A 2 8 - g a l l o n b a r r e l of beef w a s r e g a r d e d as equal to the w e i g h t of a 2 9 - g a l l o n b a r r e l of p o r k in the l a w of 1 7 8 9 . See M e a s e , J., loc. cit. 8 Export figures f o r this p e r i o d w e r e summarized f r o m various sources by Miss Helen Klopfer. " S h e f f i e l d , J o h n L o r d , Observations on the Commerce of the American States ( S i x t h E d i t i o n , 1 7 8 4 ) p p . 1 3 9 S.

98

PRICES IN COLONIAL

CHART

PENNSYLVANIA

X—MONTHLY

RELATIVES

OF W H O L E S A L E

PRICES

(Base—Monthly

BEEF AND

PORK

99 PER CENT

OF B E E F AND P O R K IN P H I L A D E L P H I A ,

Average, 1741-1745)

I720-1775

100

PRICES

IN COLONIAL

PENNSYLVANIA

at low levels when the record of prices starts in 1720. In that year beef sold for 30 shillings a barrel. Pork sold for 45 shillings from January to May and for 47 shillings 6 pence in the last seven months of that year. The price of beef continued at 30 shillings until May 1 7 2 2 , when it advanced to 3 1 shillings, which was the prevailing price until August 1 7 2 3 , except for two months in the spring of that year. Beef was as low as 28 shillings at the close of 1 7 2 3 and dropped even lower in the spring months of 1 7 2 4 , when the price of 30 shillings recurred as the prevailing price until April 1728. 1 0 After these years of comparatively minor changes beef advanced in a single month more than 33 per cent and sold from April to J u l y at 40 shillings a barrel. According to merchants' records, beef sold at even higher levels in August and September. In October, prices dropped to 35 shillings, which seems to have been the charge for beef until March of the next year. A check in the downward movement which began in October 1728 appears to have occurred by December 1729. Pork, which had been at higher prices in the last part of 1720 than at the beginning of the year, sold from January 1 7 2 1 to January 1 7 2 3 inclusive at 45 shillings a barrel, declining in price to 3834 shillings by J u l y 1 7 2 3 . The tendency was downward until September 1724. Prices kept close to the low level of 3 2 ^ shillings through April 1725. Then pork advanced in price for nearly three years or from May 1725 to April 1728. In the first month of the rise, the price of pork increased 10 shillings a barrel. In 1726 it sold during six months— from April to September—at 50 shillings and kept up well even during the winter months. Though the level of 1727 was a trifle lower, pork was scarce in the fall and sold as high as 50 shillings in the first quarter of 1728. There seems to be no reason to think that especially high prices were anticipated at this time. Powel wrote in November, " T h e prices of provisions at present are as under and have been so for some time past and may probably continue thereabouts all next year, if we " N o prices of beef were reported from A p r i l 1 7 2 6 to November 1 7 2 7 . When quotations were resumed, beef sold 2 shillings higher per barrel than it had when previously listed.

BEEF AND PORK

101

have not [ a ] larger demand than u s u a l . A t the close of 1 7 2 7 and in the early part of 1 7 2 8 he was accumulating a cargo to ship to N e w foundland. In April 1 7 2 8 , when his freight was ready for the N e w foundland adventure, he wrote, " W e have and shall ship bread, flour, pork, hams, rum, molasses, tobacco, sugar, and staves." 1 2 At that time the peak of prices in the rise from 1 7 2 5 to 1 7 2 8 could not be foreseen, but between March and April an advance of 1 5 shillings a barrel was added to the 5 0 shillings at which pork had been selling in the first three months of 1 7 2 8 . T h i s high price of 65 shillings persisted for three months. E v e n by December pork had sold no lower than 60 shillings, though prices of 5 0 shillings were quoted in the next year in the two opening months and again from September to November. T h e marked characteristic in prices of both beef and pork in the years before 1 7 2 8 was the freedom from monthly variations and a tendency to continue at the same price f o r a season or longer. It was the mildness of the movements in the first years that makes the rise in the prices of both meats in 1 7 2 8 of especial interest. F r o m this time the price movements in the curves of beef and pork, which are shown together on the chart of monthly relative prices, were characterized by a succession of short fluctuations. In the main, most of the changes were quite similar in the two series, though pork tended to have longer swings and consequently fewer periods of rise and fall than beef. T h i s was offset somewhat by the fact that the peaks in the pork series were relatively higher than those in beef and the declines often more pronounced. Since both series showed marked seasonality, attention must be given to such variations as well as to the important swings in prices. Both series had two short swings between 1 7 2 9 and 1 7 3 5 of approximately two and one-half years each with peaks in 1 7 3 1 and 1 7 3 3 . In the first of these swings, prices of beef advanced from 29 to 40 shillings between December 1 7 2 9 and August 1 7 3 1 . F o r four months of the fall trade, prices of beef remained at this level, but receded to 26 shillings before the middle of the next year. T h i s short movement in the prices of beef differed from that in the pork series. 11 November 28, 1727, Samuel Powel, J r . to Thomas Hyam, London. " A p r i l 1 7 , 1 7 2 8 , Samuel Powel, J r . to Thomas Hyam, London.

102

PRICES IN COLONIAL

PENNSYLVANIA

Starting from a relatively higher level, pork prices advanced rapidly at the close of 1 7 2 9 , rose to 60^2 shillings in June 1 7 3 0 , and reached a peak of 65 shillings in January 1 7 3 1 . The price dipped early in 1 7 3 1 , but advanced in the fall months during the first part of the shipping of the new meat. Both series declined until the summer of 1 7 3 2 to lower levels than were reached in the recession in prices of 1729. The second short swing in prices was completed between August 1 7 3 2 and M a y 1 7 3 5 . Information about prices of beef is lacking in the first year of this period, but pork advanced rapidly at the close of the year, sagging in the following spring before reaching a peak of 55 shillings in J u l y 1 7 3 3 . Beef, in this month, sold for 4 2 ^ shillings. On the whole, both series declined, though irregularly, until M a y 1 7 3 5 ; yet the recession in prices of pork, which were lowered to 30 shillings a barrel—the lowest price it sold for in the fifty-six years —was more severe than in beef. The total downswing in the prices of pork from J u l y 1 7 3 3 to M a y 1 7 3 5 was 40 per cent while that in beef was 3 4 . 1 per cent. By contrast with the short oscillations in meat prices between 1 7 2 9 and 1 7 3 5 , the underlying movement from M a y 1 7 3 5 to the middle of 1740 was more uniform in rise and fall. For a year after June 1 7 3 5 prices of beef varied only between 30 and 3 2 ^ shillings. In the fall of 1 7 3 6 it was quoted at 34 to 40 shillings. During 1 7 3 7 beef was as cheap as 30 shillings a barrel in one month in the spring and again in the fall and as dear as 4 2 ^ in August and 45 in December. These were the peaks in the prices of beef, which had, in the topmost months heretofore, never commanded more than 40 shillings. In the decline of the next year the price of beef held from April to J u l y at 40 shillings before it established a level of 35 shillings which lasted for eleven months and reappeared in scattered months at the close of the year and again in the first half of 1740. From its low level of 30 shillings a barrel in May 1 7 3 5 , pork advanced to 40 shillings in August and September, dropped in the last quarter of the year, but sold as high as 50 in February and November the next year. Except for these two months prices of pork kept for the year 1 7 3 6 between 35 and 45 shillings a barrel. It was in the last six months of 1 7 3 7 that the marked advance of this rise to

BEEF AND PORK

103

a peak of 70 shillings a barrel was recorded. This quotation, reached in December, was held only in that month, but the average of the following year was more than 5 9 ^ shillings. I n 1 7 3 9 lower prices prevailed and from April to J u n e 1 7 4 0 , pork could be purchased in Philadelphia for 40 shillings a barrel. T h e importance of changes of as much as 1 7 ^ 2 shillings a barrel, such as occurred in prices of pork between December 1 7 3 8 and D e cember 1 7 3 9 , in their effect upon merchants and farmers can best be stated in terms of the credit basis upon which all dealings in these years were conducted. Merchants received all imports from London on customary credits of six months5 farmers took these off their hands often on credit. N e w settlers with scarcely a title to their land came to merchants for their first supplies, promising in return their produce in payment as it was grown. Since pork could be produced in a shorter time than beef, it was more important in these payments in the early years before the colonists had accumulated a reserve. It is mentioned with wheat, flour, and bread in explaining the course of trade. W h e n prices of produce were low in 1 7 3 9 Samuel P o w e l wrote, " W h e n we have sold our European goods and trusted them awhile, we are obliged to take great part of the pay in bread, pork, flour, wheat or any goods that are the produce of the country; and most of those goods we send to the islands in the West Indies where they are sold and from thence the effects are sent to E n g l a n d per exchange, gold, silver, or sugars." 1 3 T h e decline in prices between the end of 1 7 3 7 and 1 7 3 9 , though less marked than in other local produce, brought just such a period when means of payment were being especially sought by everyone. T h e price rise which preceded it has espcial significance in beef and pork, since in this swing a new level of prices was established for these commodities before any part of the change could be connected with the war influences which enter in the next decades. Perhaps it was because prices of meats were at a comparatively high level that their rise in the first years of the war with Spain was less extreme than the advance in flour and bread prices. Prices of beef rose between April and September 1 7 4 0 from 3 2 ^ to 45 shillings and of pork from 40 to 50 shillings. B y March of the next year "December i o , 17391 Samuel Powel, J r . to William Sheldon Son and Co., London.

104

PRICES

IN COLONIAL

PENNSYLVANIA

when beef sold for 40 shillings and pork for 50, Powel was reporting, "Provisions of all kind as well flesh as grain are vastly risen in price." 14 In June he wrote, " A s provisions are very scarce here, as well as all along the north part of the continent, you can have very little supplies for some months." 18 Y e t in that year prices of beef held from M a y to November at 45 shillings a barrel and pork rose above 50 shillings in only two months. Beef was lower until M a y 1743, but pork advanced in the last half of 1742 and its price went to scarcity levels early in 1743. T h e advance in pork prices in 1742 was directly related to the small supply of it. As early as November it was stated that "hams are very scarce and not to be had and we have little pork in the country this y e a r . " " B y February 1743 there was concern about the available supply of pork. It seemed so unlikely to Powel that any quantity could be procured that he wrote at the end of February, " T h e pork will fall vastly short this year of what used to be other years. I really think we shall not have near half the quantity of Burlington pork and not one tenth of L o w e r County." 1 7 T h e scarcity could not have been as clear to all dealers since prices of pork declined from the 57 l /z shillings at which it was selling in February to 50 shillings in March. In the next two months prices increased 2 2 ^ shillings to a quotation of 7 2 ^ and a still further rise brought a peak of 80 shillings from July to September 1743. Beef advanced in much the same way as pork, rising between April and July 1743 from 35 to 60 shillings. From the fact that the rise in beef prices began a month later than that in pork and the high level for pork held for a month longer, as well as from the different behavior of the two series in the decline from this peak, it may be inferred that the major force operating in this period was the scarcity of pork and the substitution of beef for it. Prices of both dropped in part of the last quarter of 1743, but pork kept at relatively high levels until December 1744, in this respect differing from beef, which was as low in the first three months of March IJ, 1741, Samuel Powel, Jr. to Thomas Hyam, London. " J u n e 12, 1741! Samuel Powel, Jr. to Thomas Stratton and Thomas Anderson, Jamaica. "November 18, 1742, Richard Hockley to Thomas Penn, London. Pennsylvania Magazine of History and Biografhy, Vol. X X V I I I , 1904, p. 36. "February 21, 1743, Samuel Powel, Jr. to Joseph Richardson in Jamaica. 14

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1 7 4 4 as it had been before the marked rise of 1 7 4 3 occurred. It was beef which had the more extensive rise in 1 7 4 4 when it sold from J u n e to September for 50 to 55 shillings. Starting at lower relative levels than pork, it reached at the time of harvesting wheat a peak from which prices receded to 3 5 shillings, the price which prevailed from November 1 7 4 4 through the first five months of the next year, a period when pork prices tended to decline. In these two years and in the two following, there was a period of scarcity in the summer months which caused an abrupt rise, the shortage of one product disseminating the influence to the prices andsupplies of the other. In this way pork prices increased in advance of beef in 1 7 4 3 and beef in advance of and more than pork in 1 7 4 4 . Both were at moderately low levels in the opening months of 1 7 4 5 . L a t e in M a y it was evident to Powel that supplies of pork for shipment to Jamaica would be limited. H e then wrote, " P o r k is like to be dear and scarce here and a great quantity bought up for the stores [i.e., supplies] at Cape Breton." 1 8 T h e prospects for shipping pork to the West Indies seemed improbable enough in J u n e , when an advance of 6 shillings had already taken place, to induce the statement to a correspondent at Barbados, " Y o u can have very little if any more pork from hence this season as the call for supplying the forces at Cape Breton has taken all that can be had now.'" 9 T h e rise in pork anticipated in these statements amounted to 76.5 per cent, or an advance between M a y and September from 4 2 ^ shillings to 75 shillings a barrel. In the months in 1 7 4 5 when pork prices increased 32^2 shillings, beef had a moderate advance from M a y to September of only 1 0 shillings. Both commodities declined enough in the closing months to warrant Powel's writing to a dealer in the Bahamas, "Beef and pork is likely to be plenty and cheap here." 2 0 H i s judgment at this time was based on short-run factors which made prices of meats low for a f e w months, during which beef declined to 3 5 shillings— the price at which it had sold at the close of the previous year and in the first five months of 1 7 4 5 — a n d pork receded to 45 shillings between September 1 7 4 5 and January 1 7 4 6 . In 1 7 4 6 a less steep advance occurred similar in character to the " M a y 22, 1 7 4 5 , Samuel Powel, J r . to Sim and Sims, J a m a i c a . J u n e 1 8 , 1 7 4 5 , Samuel Powel, J r . to T h o m a s Hothersall, Barbados. November n , 1 7 4 5 , Samuel P o w e l , J r . to J o h n Mackintosh, N e w Bahamas. M x

Providence,

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rise from summer to late fall which had marked the price movements of each year from 1 7 4 3 to 1 7 4 5 . Like the others, this arose from a scarcity. Between February and J u l y 1746 pork prices rose from 45 to 62^2 shillings a barrel; beef, between December 1745 and August 1 7 4 6 , advanced 1 5 shillings to 50 shillings a barrel. This was a time when the produce of Pennsylvania which entered into trade was in demand and was generally advancing in price. The lack of supplies for shipping led Powel to write, " I am satisfied all provisions must rise in Barbados as they grow very scarce and short here and a great call for them both for the Canadian expedition and to Carolina and other ports." 21 Pork especially was needed in J u l y and was very scarce.22 It was about this time that, in writing to a new correspondent, Powel described the usual seasonal movement in prices of pork and contrasted the two principal grades. " N o quantity of pork can be had here until the middle or latter end of November; then the new pork comes in plenty. . . . It has been for several years from 55 to 60 shillings per barrel for Burlington pork, which is the best. What we call low county pork, which is wood fed and not so good as the other, comes to market first in February and from that time to M a y is most plenty and generally sells for 1 0 shillings per barrel less than the other sort." 23 From 1746 to 1748 the prices of beef and pork tended to increase, but the fluctuations in price within each year were less than from 1743 to 1746. The highest price paid for beef in 1748 was 50 shillings a barrel in J u l y and August. In the same months pork sold for 70 shillings a barrel. T h e next year prices receded, but pork never sold below 60 shillings while beef declined to 30 shillings. T h e wars with Spain and France which influenced prices during most of the decade of the forties appear to have had an effect on beef and pork markedly different from that which they had on grain and grain products. T h e difference in the behavior of the prices of these domestic commodities probably arose out of factors unconnected with the war with Spain since, in general, the war demand for provisions would affect all domestic produce. In the first place, the severe winter " J u l y 1 0 , 1746, Samuel Powel, J r . to Robert Ellis, Barbados. " J u l y 19, 1746, Samuel Powel, J r . to Joseph Best, Barbados. " J u l y 16, 1746, Samuel Powel, J r . to Gabriel Manigault, South Carolina.

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of 1 7 4 0 to 1 7 4 1 , which led to a shortage of wheat and flour in the province, added to the impetus of the war demand, raised prices of grain in 1 7 4 1 and 1 7 4 2 , and probably made the raising of cattle and hogs less profitable. Such a condition would lead to the slaughtering of much live stock and to a plentiful supply of beef and pork in 1 7 4 1 and 1 7 4 2 . T h e selling of beef and pork at relatively lower prices than grain would discourage the raising of live stock. Such a policy would inevitably have led to scarcity of meat by the summer of 1 7 4 3 . Since the supply of meat is less responsive than that of grain to increasing prices, it is not to be wondered at that beef and pork sold for relatively higher prices from 1 7 4 3 to 1 7 4 6 than did grains and their products. T w o other factors which would contribute to the maintenance of a relatively higher level than grains—a level so high that even in the exaggerated seasonal declines of the years from 1 7 4 3 to 1 7 4 6 the relative prices did not reach such low levels as did grains—are to be found in the fact that the absolute prices of beef and pork were higher than those of other domestic produce and in the fact that beef and pork were not produced in as large quantities as Pennsylvania wheat and flour. As a result, even the limited shipping in these years was adequate to carry the comparatively small volume of meat, and the prices of beef and pork were high enough to stand the increased freight and insurance charges. While the war, especially after the entrance of France, can be credited with the destruction of ships and the increased cost of shipping which adversely affected the prices of most staples of Pennsylvania, it was an inherent characteristic partly in the volume of the export trade in beef and pork and more especially in the comparatively high value of meat which caused and permitted the wide disparity between prices of beef and pork and those of other domestic produce from 1 7 4 3 to 1 7 4 6 . Because meat prices were high during these years, the rise in 1 7 4 7 and 1748 was less pronounced than in grains. T h e low prices of beef and pork in 1 7 4 9 lasted until the early months of 1 7 5 0 before a rising tendency asserted itself. B y September 1 7 5 0 pork was slightly higher than in the peak of 1 7 4 8 , but it was not until J u n e 1 7 5 1 that the price of a barrel of beef equalled that paid in the summer of 1 7 4 8 . T h e upward surge in prices was interrupted by a slight recession in the fall of 1 7 5 0 before it reached, in the

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summer of 1 7 5 1 , the same or nearly the same level as that of 1 7 5 2 . In J u l y 1 7 5 2 pork sold for 80 shillings a barrel compared with 7 8 ^ shillings in the preceding August. By December the price had declined 1 5 shillings and pork was again selling at 65 shillings a barrel. For more than a year pork usually sold between 60 and 65 shillings, but in M a y 1 7 5 4 it dipped to 57^2 shillings, approximately the average of 1 7 4 1 to 1745, the base period. T h e price of beef in these years started to rise two months ahead of pork, but dropped back in 1 7 5 0 and then rose sharply in 1 7 5 1 and again in 1 7 5 2 . Despite its sharp rise, it ended its decline as usual ahead of the pork in November 1 7 5 3 . From then it rose irregularly to August 1 7 5 5 . Pork was quoted at 75 shillings in May and again in August 1 7 5 5 , compared with the S l Y * shillings at the end of its decline in 1 7 5 4 . Owing to the frequent embargoes in the port between 1 7 5 6 and 1 7 5 9 which caused prices to dip to low levels for a few months, there is no especial significance in the price movement except that in 1756 and again in 1 7 5 7 and 1758 beef rose to relatively higher levels than pork. Toward the end of the 1750's there began a major upswing in prices of meats which lasted until the close of the French and Indian W a r and in the case of pork carried it to even higher levels in 1763 and 1764 after peace was restored. At the beginning of this sevenyear rise in prices of pork in M a y 1758, the quotation was 52^2 shillings a barrel. The likelihood of an upswing in prices of pork was jiot realized at the close of 1 7 5 7 . In December a Philadelphia shipper sent a cargo to Jamaica with instructions to "dispose of them as soon as possible, particularly the pork, gammons, and butter, as we are apprehensive those articles will not rise, but on the contrary be glutted from Ireland, Carolina, and Virginia." 2 '' The next month he dispatched another vessel with pork to Jamaica. 25 But by the middle of February 1758 the same merchant gave instructions that the pork he was then shipping should not be sold "directly" 28 unless an unusually good price could be got. "December 26, 1 7 J 7 , J . Baynton to R . Field, Jamaica. " J a n u a r y 19, 1758, J . Baynton to R. Field, Jamaica. " F e b r u a r y 1 7 , 1 7 5 8 , J . Baynton to Field and Moore, Jamaica.

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T h e average price of 1 7 5 9 was above 69 shillings and in October it was as high as 80 shillings. Prices sagged as usual at the close of the year, but had advanced irregularly to 80 shillings by September 1 7 6 1 , when pork was especially scarce. T h e prevailing price through April of the next year was about 75 shillings, but in M a y , when some merchants sold pork for 95 shillings and commented that it was very scarce, Clark wrote that pork was then "being sold here for £ 5 per barrel." 2 7 In this month, as in a few months in each of the next two years, there was not enough pork available in the Philadelphia market to warrant a price quotation. Merchants of the city were importing it from Ireland and were encouraging the shipment of it to the city from N e w England. Clark was doubtful of the continuance of high prices for pork, then at the maximum level for which it had sold up to this time in the years of our record, and was trading cautiously. H e wrote, " I believe pork will be considerably lower next year with us than it is at present." 27 Later in the month another dealer in the city stated that pork was " v e r y scarce" 28 in commenting to a merchant in Rhode Island that pork was selling at 95 shillings—the price at which it sold from J u l y to September. In J u l y he wrote to the same merchant that there was no Burlington pork to be had. 29 E v e n in the late f a l l months, when the new supply usually could be counted upon to lower prices drastically, pork sold only once for less than 80 shillings a barrel and in the next year ( 1 7 6 3 ) , after selling for between 80 and 87 shillings in the first seven months, advanced to 90 in August and to 1 0 0 in December. This extremely dear price for pork prevailed during six months of 1 7 6 4 and a price as high as 1 0 5 shillings appeared in April, August, and October of that year. These, the topmost levels of this price rise, were never exceeded in later years. I n the first part of this marked price rise, beef, which was relatively higher than pork, also tended to advance with similar fluctuations. In the peaks of 1 7 6 0 and 1 7 6 1 beef was relatively higher than pork and in each of these years sold in some months for as much as 60 shillings a barrel. It differed from pork in the rise of 1 7 6 2 , first in 17

May 14, 1 7 6 2 , Daniel Clark to Edward Corkran, Sligoe, Ireland. ™ May 24, 1762, Francis and Rolfe to Obadiah Brown and Co., Providence. " J u l y 2 i , 1 7 6 2 , Francis and Rolfe to Nicholas Brown, Providence,

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being slower to advance, and second in reaching by August its maximum of the war years—67Yz shillings a barrel. The fall recession lowered the beef prices to approximately the level to which prices of pork fell. In the next year beef reached a less extreme high than it had attained in August 1 7 6 2 . From this point the two series diverge completely. While pork continued to advance until October 1764, beef declined until March 1 7 6 4 , when it sold for 50 shillings. From this price it advanced to sell in two months at the end of the year for 70 shillings, a higher price than occurred during the war. The difference between the two series in the post-war period is that beef prices declined after the news of peace reached Philadelphia while prices of pork advanced without in any way reflecting the change in the conditions of trade. Doubtless pork was scarcer than beef in 1 7 6 3 . Though beef was never a large item in shipments from the port, more of it was obtainable for export in 1 7 6 3 than in 1762. On the contrary, the export of pork in 1 7 6 3 was not half the amount shipped in 1 7 5 9 , 1760, or 1 7 6 2 , and was even 2,000 barrels less than the exports of the scarce year 1 7 6 1 . When, at the end of 1 7 6 4 and in the opening months of 1765, a decline in price actually started, it was severe in both series. Pork, which sold in October 1 7 6 4 for 1 0 5 shillings, was as low as 65 shillings seven months later. Beef receded from 70 shillings to 45 shillings in three months. T h e declining tendency, despite a late fall advance in 1 7 6 5 in prices of pork, was not completed until pork sold for 6 1 % shillings in March 1766. Beef advanced relatively more than pork in 1 7 6 5 and at the lowest prices in April 1766 did not sell for less than 50 shillings. T h e dip in prices of beef to moderately low levels for four months in the spring of 1 7 6 5 represents the check to a rising tendency which had started in 1 7 5 6 or 1 7 5 7 . N o lower prices were recorded for beef between this time and the outbreak of the Revolution. T h e more extended recession in the prices of pork was not completed until 1766. From the spring of 1 7 6 6 until that of 1 7 7 2 prices of meats kept at high levels which, though well below the extremes reached at the end of 1764, were above the average of any other six-year period. At the peaks of prices in the middle of each year there were a few months

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when prices of beef approached the highest levels reached before the close of the war, and the averages of 1766, 1767, and 1769 were above 55 shillings. In the lower prices of 1768 beef averaged nearly 52 l / 2 shillings, though prices from April to September were 50 shillings or less. Pork fluctuated in price more than beef. Its advance from 6134 shillings—the low of March 1766—to 95 shillings in August 1766 was a much greater rise than that of beef, just as the decline from these levels to February 1767 was greater. Again in the last four months of 1767 prices of pork declined when beef advanced, and kept low in the opening months of 1768, though at this time beef prices also sagged. Considering the low levels to which flour and grains fell in 1768 and 1769, the short period of high prices for meats at the close of 1767 and 1768 is worthy of comment. At this time merchants were concerned about the prospects of markets for produce. In June 1768 when the price of pork was 73 shillings, or 12 shillings more than it had been in January and February, Clifford wrote, " W e must learn in the future, if we can, to proportion our supplies of provisions to the Islands nearer to their wants. Considerable quantities of bread, flour, wheat, pork, hams, and some corn [have been] shipped to different ports in Great Britain lately, which demand together with what is shipped to Lisbon, up the Straights, and various other ports keep up the price of all sorts of country produce." 30 Clearly the demand for pork strengthened in the last half of 1768 and by October pork was selling for 85 shillings a barrel. A factor which also affected the price was noted by an important merchant early in October in the comment, "Pork is now 7 7 s h i l l i n g s — Burlington [the] best kind, and we think pork this fall will be rather higher than for some years past by reason of our crops of Indian corn [which] will be very indifferent." 31 Though prices eased, the report toward the end of the next month was that there was "none at market." 32 A still lower price in December led the same merchant to conclude, "Provisions seem to be on the decline . . . Burlington pork 70 30 June 2, 1768, Thomas Clifford to William and Thomas Smith, St. Christopher. "October 7, 1768, Hollingsworth and Rudulph to Alice Blanchfield, North Carolina. "November 25, 1768, Orr, Dunlope and Glenholme to John Welch.

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shillings and expected lower; . . . no Carolina pork at market. . . . Gammons none at market." 33 Basing his conclusions upon what seems in retrospect an unusually small seasonal decline, the same merchant reported no sale for beef which he was advertising. 13 Another merchant wrote confidently at the opening of 1769 that "pork and beef, it is thought, will stand at the prices now quoted to you for the next spring." 34 Prices of pork turned upward in February 1769 and those of beef a short time later. Both were scarce by August, selling at high levels then and still higher in September. Clifford, writing to Bristol in August, did not hesitate to hold out the prospect of an advantageous return upon a shipment of beef if sent then to Philadelphia. H e wrote, "Beef is scarce here at present, will yield a profit at 60 shillings per tierce bought at your city." 35 T h e peak of the sharp advances of beef and pork in 1769 was reached in September when beef sold for 65 shillings a barrel and pork for 95 shillings. Lower prices, in that there were no months of excessively high prices, prevailed for both kinds of meat from 1770 until the spring of 1772. Pork, which averaged 80 shillings in 1769, sold even in 1770 as high as 82^4 in midsummer though the average of the year was 77 shillings. T h e shortage of pork and the high prices of meats, which were frequently commented upon in many years after the early forties, were slowing down purchases for shipment in the spring of 1770. T o a Rhode Island merchant, Anthony wrote in March: " P o r k is like to be very high. [It] is now at £4 and rising. Beef at 52 shillings 6 pence. Should be glad to hear from you before I purchase any except the sixteen barrels of beef sent you per the Abigail."3* A few weeks later it was reported that "pork comes in very small parcels and commands the cash at £4 to £4 2s. 6d. as quick as it is landed. Beef scarce at 52 shillings 6 pence." 37 T h e year 1770 closed with meat, as usual, at a lower price than in the summer. " D e c e m b e r 14, 1768, Orr, Dunlope and Glenholme to John Smith, Jamaica. " J a n u a r y 19, 1769, Hollingsworth and Rudulph to Alice Blanchfield, North Carolina. " A u g u s t i o , 1769, Thomas Clifford to Lancelot Cowper, Bristol, England. * March 21, 1770, Joseph Anthony to Aaron Lopez, Newport, in Commerce of Rhode Island, Vol. I, p. 319. " A p r i l 1 1 , 1770, Joseph Anthony to Aaron Lopez, Newport, in Commerce of Rhode Island, Vol. I, p. 324..

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In 1 7 7 1 only pork showed any response similar to the usual summer and early fall rise in price. In September and October pork was approximately 90 shillings a barrel, about 1 0 shillings above the average price of the year. With such prices prevailing for two months it is to be expected that merchants would write that "pork is excessive scarce. [ I ] believe a few barrels would fetch . . . any price almost." 38 Beef, however, tended to sell at about 50 shillings until December, when it rose abruptly to 5634 shillings. T h e rise in 1 7 7 2 carried prices to the maximum between 1 7 6 4 and the Revolution. In fact the price of pork in September 1 7 7 2 was but slightly less than that of the post-war peak of eight years earlier, while the price of beef in J u l y 1 7 7 2 was at the same level as in 1764, its maximum of Colonial years. In this rise in 1 7 7 2 beef moved slightly ahead of pork. Its prices advanced rapidly to a peak of 70 shillings in J u l y and declined just as rapidly, selling at 55 shillings in October. Pork, in contrast, although it had advanced from 80 to 90 shillings, did not reach its peak until September and sold for 90 shillings or more from April 1 7 7 2 to M a y 1 7 7 3 , except for a dip in January of that year. In M a y 1 7 7 2 , when pork was already selling for well above 90 shillings a barrel, Philadelphia merchants recognized its scarcity in relation to the demand. One merchant wrote, " I think pork will be at £5 per barrel if wanted before December when the new begins to come in which may reduce it to £4." 3 9 By J u l y the average price of pork was above £ 5 , which held into November. T h e average price in that month was slightly below 100 shillings, but from the records of a merchant it is clear that better grades of pork sold at least for a short while at 1 0 5 to 1 0 7 ^ shillings. 40 Such prices are even slightly above the peak of 1 7 6 4 . T h e same merchant expected that early in December pork would sell at 85 shillings. 40 This price did become the average in January 1 7 7 3 . T h e decline from the high prices of 1 7 7 2 persisted until beef sold for 50 shillings in November 1 7 7 3 and from April to August 1 7 7 4 . T h e typical price of 1 7 7 3 was 55 shillings and the annual averages of " S e p t e m b e r 1 9 , 1 7 7 1 , William Smith to Mercer and Ramsay, N e w Vork. " M a y 1 6 , 1 7 7 2 , William Pollard to Peter Holme, Liverpool. " N o v e m b e r 1 1 , 1 7 7 2 , William Pollard to Peter Holme, Liverpool.

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both 1773 and 1 7 7 4 were near this figure. Slightly higher prices prevailed in 1775, beef selling for as much as 6 2 ^ shillings in June. Pork had a more protracted recession than beef. Near the close of 1773 the price fell to less than 75 shillings. T h e new pork was expected to come to market before the end of November 41 and early in December it was said that "pork is low this season—say 70 shill i n g s . " " This is approximately the average price in 1 7 7 4 when the tendency was downward except for a spurt in M a y to 85 shillings. B y

CHART

XI—ANNUAL PORK

R E L A T I V E S OF W H O L E S A L E IN P H I L A D E L P H I A ,

PRICES OF B E E F

AND

1720-1775

(Base—Monthly Average, 1 7 4 1 - 1 7 4 5 )

December 1774, when most of that season's fresh supply of pork had come to market, the price had dropped to nearly 60 shillings. A t the close of the period, beef and pork were selling at the same price in some months and at nearly the same in others. It has been apparent throughout the discussion of the movements of prices of beef and pork that seasonal factors were important in determining the price at any time. Such a situation would be expected in commodities which came to market chiefly but once a year. T h e supply for the next twelve months would then be approximately determined, with the result that prices would tend to advance as the supply " November 18, 1773, William Pollard to Peter Holme and Co., Liverpool. "December 9, 1773, William Pollard to Thomas and Clayton Case, Liverpool.

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was consumed in the colony or exported. T h e annual prices of pork and beef eliminate these fluctuations, which from a long-run point of view have little significance. F o r example, it is amazing to see the underlying downward movement in pork prices from 1 7 4 3 to 1 7 4 5 which was largely obscured by the enormous seasonal variations in prices during those years. A comparison of the annual relatives of prices of beef with those of pork shows that the pork series had movements which are similar to what are usually termed "cyclical fluctuations." Such swings are not so characteristic of the beef series. This is especially true in the years from 1 7 2 4 to 1 7 3 5 when the prices of pork rose to correlative peaks in 1728 and 1 7 3 0 about sixty per cent higher than those of 1 7 2 4 and 1 7 3 5 . At the same time, however, beef prices were moving along a nearly horizontal line, showing but slight advances in 1 7 2 8 and again in 1 7 3 1 in contrast to the long period of rise from 1 7 2 4 to 1 7 2 8 and the even longer period of decline from 1 7 3 0 to 1 7 3 5 which dominated the price of pork. Another difference arose out of the greater stability in the prices of beef than of pork: pork tended to rise above the relative price of beef in years of high prices and to fall lower than beef in years of low prices. In addition to the comparatively short cyclical swings in prices, both beef and pork showed a more fundamental and more dominating movement which persisted through several decades. From 1 7 3 5 at least, there was a gradual but powerful upward trend in prices which reached a climax in 1 7 6 3 for beef and in 1 7 6 4 for pork. Such a movement is unique since the prices of other commodities which did increase took their increases in the form of steps. Usually these increases came more than ten years after the meat prices had started to rise. In the closing decade of the Colonial period the upward trend seemed to change to a horizontal if not a declining movement. T h e combination of cyclical and secular movements in the price of meat for at least part of the Colonial period makes the comparison with the annual prices of flour of especial significance. T h e variations in the amount of pork required in exchange for a hundredweight of flour were frequent. T h e most typical ratio was between 40 and 45 pounds of pork for 1 1 2 pounds of flour. T h e relatively high prices of

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pork in the forties reduced the number of pounds needed for exchange while in the five years before the Revolution, pork was comparatively so cheap that more than 47 pounds were required. Beef, which generally was less expensive than pork, usually exchanged for flour in the ratio of 65 to 70 pounds for 112 pounds in the decades of the twenties and thirties. From 1743 to 1746 the value of 40 to 50 pounds of beef equaled that of a hundredweight of flour. During the next two decades 60 to 65 pounds was the most usual basis of barter. T h e decline in value culminated in the years immediately preceding the Revolution when more than 75 pounds of beef were needed in purchasing a hundredweight of flour.

CHAPTER V P R I C E S

O F

S T A V E S

A N D

N A V A L

S T O R E S

STAVES

O n e of the natural exports of P e n n s y l v a n i a and one which ranked high in importance was lumber in all its various f o r m s . T h e limited a m o u n t available in G r e a t Britain, which made it necessary to import this commodity in large measure f r o m some other area, influenced the placing of it on the free list w h e n b r o u g h t f r o m the British plantations. A n act of 1 7 2 2 recited that l u m b e r had " u s u a l l y been imported into this k i n g d o m , f r o m f o r e i g n countries, at excessive prices, w h e r e b y foreigners have f o u n d opportunities t o export the coin of the k i n g d o m . " 1 T h i s act permitted the exportation, d u t y free, f r o m the British colonies of all timber except f o r the R o y a l N a v y . T h e merchants trading f r o m G r e a t Britain to the colonies had a d v o cated such a l a w in order that if other products w e r e not available their ships w o u l d not have to return to E n g l a n d empty. 2 T h e colonists, especially those of P e n n s y l v a n i a , also f o u n d it profitable to export staves to Spain, P o r t u g a l , and the W e s t Indies. 2 A t times it was difficult to market and ship this " t r o u b l e s o m e " c o m m o d i t y . I n 1 7 3 0 P o w e l wrote, " I k n o w of no market that is like to prove tolerable except Jamaica for staves."' 1 In the same y e a r N o r r i s comm e n t e d to his correspondent in I r e l a n d that the difficulties in shipp i n g l u m b e r arose " f r o m the charges of p i l i n g , w h a r f a g e , and the r o o m they take being a material o b j e c t i o n " in addition to the p r o b l e m of procuring t h e m on short notice. 4 T h e conflict of interests in deciding w h e t h e r it was better to delay a vessel w h i l e supplies of staves could be procured or add directly to the price by k e e p i n g t h e m in readiness ' A n d e r s o n , Origin of Commerce, revised by M r . Coombc, Vol. I l l , p. 370. ' B e e r , G e o r g e Lewis, Commercial

Policy of England

toward the American

P- 99' A p r i l 19, 1730, Samuel Powel, J r . to T h o m a s H y a m , L o n d o n . 4 D e c e m b e r 26, 1 730, Isaac N o r r i s to Joseph H o a r and Samuel Pike, C o r k . 117

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118

PRICES

IN COLONIAL

PENNSYLVANIA

on the wharf was brought out by R e y n e l l when he explained to an English merchant, " T h e reason w h y I have not kept a parcel of staves always ready on the wharf is because it w o u l d make them come

C H A R T X I I — A N N U A L R E L A T I V E S OF W H O L E S A L E PRICES OF STAVES IN P H I L A D E L P H I A ,

I720-1774

(Base—Monthly Average, 1741-1745) considerably dearer. H o w e v e r , I believe it may be the best way. I have now 20 thousand on the wharf." 5 N o t only was lumber an important export of Pennsylvania but it ' O c t o b e r 3, 1 7 3 4 , J o h n R e y n e l l to R i c h a r d D e e b l e , P l y m o u t h , E n g l a n d .

STAVES AND NAVAL

STORES

119

was also used extensively within the colony in ship-building and in cooperage. The growth of the flour milling industry and the export of flour and bread gave rise to a large demand for barrels. A small demand also came for barrels in which to pack beef and pork, and well before the Revolution demands for hogsheads arose from the local distillers of rum. This important trade is represented in our series by only three grades of white oak staves. The early standardization of barrel, hogshead, and pipe staves" makes it possible to use the monthly prices for each size, though the price of headings cannot be included. The prices of barrel, hogshead, and pipe staves were quoted at their separate levels without any changes in the forty-eight months from 1 7 2 0 to the end of 1723. During these years barrel staves sold for 22^2 shillings, hogshead staves for 45 shillings, and pipe staves for 60 shillings a thousand of 1200 pieces. The sparse information available from other sources in the next eleven years, when staves were not listed in the prices current of the American Weekly Mercury, indicates that prices of staves were lower in May 1724 and in 1728 than they had been from 1720 to 1 7 2 3 . If staves had followed the course of other commodities there should have been a period of rising prices between 1724 and 1728. Regular monthly quotations began again in 1734 for each of the three specifications of staves. By that time a marked increase in the prices of each had been effected. In September 1 7 3 4 barrel staves were selling by the thousand for 45 shillings, hogshead staves for 60 shillings, and pipe staves for 100 shillings. At that time it is probable that prices of staves were moving downward from a peak in the early thirties. Two years earlier Powel had written, "Lumber has been in demand more than ever I knew, which ' In Mease's Picture of Philadelphia, pp. 63 ff. there is a summary of the Act of 1 7 5 9 %vhich prescribed the specifications for staves and provided for their inspection. As early as 1 7 4 6 , however, Powel summarized an ordinance of the city which had practically the same specifications as appear in the law of 1 7 5 9 . " I think we had no law about lumber but an Ordinance of the City f o r the dimensions of staves which is that pipe staves shall be 4 feet 8 inches long, 4 inches broad and [ a n ] inch thick on the sap side and ' n c h on heart side; hogshead staves 3 feet 6 inches long, 3^2 inches broad, inch thick on the sap side, l/i inch thick on heart side; and barrel staves from 28 to 32 inches long-, and thickness the same as the hogshead staves." J u l y 1 6 , 1 7 4 6 , Samuel Powel, J r . to Gabriel Manigault, South Carolina.

120

PRICES

IN COLONIAL

PENNSYLVANIA

has occasioned us much trouble in getting what we have, and so is almost everything that's fit for your English market." 7 B y M a y 1 7 3 3 it appeared to Norris that the price of " a l l sorts of lumber will be low.» 8 The special significance of the prices in 1 7 3 4 is their relatively high level compared to prices at the beginning of the twenties. Barrel and pipe staves never dropped as low in the period from 1 7 3 4 to 1 7 7 5 as they had been in the twenties. Only hogshead staves, which had been comparatively high-priced in the twenties, sold in 1 7 3 5 and 1 7 3 6 for as little as they had from 1 7 2 0 to 1 7 2 3 . After a belated advance in 1 7 3 7 , hogshead staves too established a permanently higher level which was held until 1745. Twice later in the Colonial period the price of staves moved to still higher levels. In both cases the initial rise carried prices above the average at which they tended to settle in the years after the rise. These other steps covered the years from 1 7 4 5 to 1 7 5 7 and from 1 7 5 7 to 1 7 7 5 . In addition to these four distinct levels in the years from 1 7 2 0 to 1 7 7 5 , the prices of staves after 1 7 3 4 show two or more long swings on each succeeding step. T h e contraction from the presumably high prices of the early thirties was completed by 1 7 3 6 . Prices of all grades of staves started to advance in that year, reaching a peak in the closing months of 1 7 3 7 . On this rise barrel staves had a more extreme peak in 1 7 3 7 as well as a larger subsidiary peak in the following year than had the prices of the other staves. By 1 7 3 9 prices of all sizes of staves had receded. There was a further recession in some months of 1740, especially in hogshead and barrel staves. The war with Spain affected the price of hogshead staves first. It rose from 50 shillings in M a y and June to 85 shillings in December 1740. These staves tended to sell above 85 shillings as late as March 1 7 4 2 and even reached 100 shillings in November 1 7 4 1 . Barrel staves declined during 1 7 4 0 until a price of 3 5 shillings was reached in December. During the first five months of 1 7 4 1 they tended to remain low, never rising above 36 shillings until M a y . B y J u l y , however, the price had soared to 60 shillings and by September to 65 shillings. 'September 30, 1 7 3 2 , Samuel Powel, J r . to Daniel Flexney, London. " M a y 4, 1 7 3 3 , Isaac Norris to Joseph Hoar and Samuel Pike, Cork.

STAVES

CHART X I I I — M O N T H L Y

AND NAVAL

STORES

121

R E L A T I V E S OF W H O L E S A L E P R I C E S OF STAVES

IN PHILADELPHIA,

I734-1775

( B a s e — M o n t h l y Average,

1741-1745)

122

PRICES IN COLONIAL

PENNSYLVANIA

CHART X I I I — M O N T H L Y

R E L A T I V E S OF W H O L E S A L E

PRICES

(Base—Monthly

STAVES

AND

NAVAL

123

STORES

PER C E N T

260 240

220 200 180 160 140

120 100

80 60 220 200 180

160 140

120 100

80 60

OF STAVES IN P H I L A D E L P H I A ,

Average, 1 7 4 1 - 1 7 4 5 )

I 734-1775,

Concluded

124

PRICES

IN COLONIAL

PENNSYLVANIA

T h e price of pipe staves was the last to respond to the influence of the war. T h e lowest figure in 1740 of £5 was repeated in M a y of the following year. As late as October 1741 the price of pipe staves had not risen above £6 5s., but by December £7 10s. was paid for them. During most of 1742 further advances were made until in N o v e m ber the peak of £8 was reached. T h e declines from the high levels of 1741 and 1742, which were somewhat similar to those of other domestic commodities, were not completed until 1744 and 1745. T h e prices of barrel and hogshead staves, which in 1741 had been at the highest point of the first half of the war period, maintained moderate levels through the first quarter of 1742, but dropped sharply in April. T h e decline continued for three years, broken only by seasonal increases in price in the fall of each year, until in February 1745 hogshead staves sold for 45 shillings, while barrel staves were 3 2 ^ shillings in M a y 1745. These prices represent declines of 50 per cent or more from the peaks of I74IT h e prices of pipe staves, which had been slower to respond in the upswing but which had a peak late in 1742 when the prices of other staves had dropped substantially from the peaks of the previous year, contracted more rapidly than those of other grades. B y June 1744 pipe staves sold for £4 8s., the lowest prices in the decade of the forties, although they sold as low as £4 10s. in several months of 1744 and 1745. During the remaining years of the war with Spain and France, prices of staves, especially barrel and pipe, remained moderately low, although advancing until the summer of 1747, when there was an abrupt increase in which prices nearly doubled. In this upswing after 1745 prices of staves moved to a higher level. As in the advance of 1740 and 1 7 4 1 , hogshead staves rose more quickly in price than did the other types. By August 1746 hogshead staves had risen to nearly £5 8s. and, though prices sagged in the closing months of the year, they reached £5 in the early months of 1747. It was at this time that Powel was "obliged to deviate from thy orders in shipping staves, thou having ordered white oak which I could by no means get at any price while the sloop was loading and beside what did come to town were all engaged at 95 or 100 shillings per M . T h e red oak will do in

STAVES

AND NAVAL

STORES

125

St. Kitts or Jamaica as well as white or near it and cost but 57^2 shillings, but as the case was I must either have shipped red oak or none." 8 B y M a y 1 7 4 7 the price of hogshead staves had dipped sharply, only to rebound by October to the highest price in the first forty years of the period. T h e peculiarity of the failure of barrel and pipe staves to advance more rapidly in 1 7 4 6 is emphasized by the fact that in that year lumber in general was high. 10 F r o m another letter it appears that "it was never more difficult than now to get shingles as we have a very great number of houses building." 1 1 T h e upward movement in the price of barrel staves persisted until they sold for 80 shillings per thousand in several months of 1 7 4 9 and 1 7 5 0 . During these same years the price of hogshead staves, although never rising as high as in the erratic peak of 1 7 4 7 , held near a high level. In fact, the average annual price in 1 7 5 0 was nearly 1 5 shillings above that of 1 7 4 7 . Pipe staves had a more uniform price during 1 7 4 8 and 1 7 4 9 than either of the smaller kinds. Again the prices of staves appeared to deviate f r o m those of other types of lumber. In 1 7 4 8 , when all three grades of staves were high, lumber was reported to have fallen a fourth. 1 2 F r o m the high levels of 1 7 5 0 the prices of staves declined abruptly until the latter part of 1 7 5 1 and the early part of 1 7 5 2 . It is at this time that the existence of the new level established on the upswing from 1 7 4 5 to 1 7 5 0 is most apparent since not only did prices check their fall at a level above the lows of 1 7 4 4 and 1 7 4 5 but they even held above the average of the period 1 7 4 1 to 1 7 4 5 inclusive. In the remaining years before the French and Indian W a r , staves had a moderate swing in prices. Barrel staves were the first to reach a peakj in September 1 7 5 2 they sold for 65 shillings a thousand. A f t e r a deep sag in prices which lasted until April 1 7 5 3 , the price of barrel staves rose again until in August it was nearly as high as in the previous September. ' M a r c h 26, 1 7 4 7 , Samuel Powel, J r . to Gabriel M a n i g a u l t , South Carolina. 10 September 2 3 , 1 7 4 6 , Samuel Powel, J r . to Robert Wheatle, London. 11 September 3, 1 7 4 6 , Samuel Powel, J r . to Henry Slingsbv, Barbados. " D e c e m b e r 25, 1 7 4 8 , Pemberton Papers, Abel J a m e s to J a m e s Pemberton at the "Pensilvania Coffee House," London.

126

PRICES

IN COLONIAL

PENNSYLVANIA

Hogshead staves, also had two peaks in prices although somewhat later than those in barrel staves. In December 1752 and January 1753 hogshead staves were priced at £6 per thousand. A t this level they were relatively higher than the other series at any time during this swing. L i k e the prices of barrel staves, the hogshead series dipped sharply and did not begin to recover until June 1753, a month after the series of barrel staves had started towards a secondary peak. T h e secondary peak in the prices of hogshead staves was recorded in October 1753, two months after the corresponding peak in the price of barrel staves. O n the decline after the secondary peaks the prices of barrel staves receded gradually in 1755 before a steep and steady decline for seven months set in which dropped their price from 60 shillings in July 1755 to 36 shillings in February 1756. T h e movements in the prices of hogshead staves during the period of contraction differed from those of other staves in that in the latter part of 1 7 5 4 hogshead staves advanced in price, reaching by N o v e m ber a point nearly as high as that of the secondary peak of the previous year. For most of the next two years the price of hogshead staves declined until by October 1756 it was at the lowest figure after 1746. In the series of pipe staves prices, the movements differed from those of the other staves, especially on the upswing. Instead of the two peaks in the prices of barrel staves and the three in hogshead staves, the pipe series showed only one peak and that in August 1753. T h e rise which preceded it was comparatively steady and the fall which followed was broken chiefly by a slower rate of decline during 1 7 5 4 and 1755 than that at the beginning of the downswing in 1753 or at its close in 1756 and 1 7 5 7 . In general the end of the decline in prices in 1756 and 1757 is somewhat uncertain because of embargoes in the port which caused a gap in quotations. It can only be pointed out that the price of barrel staves apparently moved upwards after its excessive low of 1756, that the first quotation for hogshead staves in 1757 was higher than the last price quoted in 1756, and that the prices of pipe staves showed the opposite condition. In all series the prices of 1756 and 1757 were the lowest recorded after 1745 and 1746. T h e rise in prices which started sharply in the latter part of 1757

STAVES

AND NAVAL

STORES

127

was not completed until 1 7 6 1 and 1 7 6 2 when staves were at their highest prices in the Colonial period. T h i s rise marks the transition or the last step up to the highest level before the Revolution. Barrel and hogshead staves rose more rapidly in 1 7 5 7 than pipe staves. T h e cause of the rise in prices at this time was the difficulty of getting any to ship. Baynton was at this time stowing a brig preparatory to sending staves to Jamaica. " I have very luckily engaged," he wrote, "about 20 thousand staves which will go a great way toward loading her. . . . There is not a stave to be had now at any price." 1 3 B y the middle of 1 7 5 9 barrel and hogshead staves declined slightly and pipe staves had advanced sharply, somewhat as the other series had risen two years before. F o r two years pipe staves were relatively higher in price than other staves. B y February and March 1 7 6 1 the price of pipe staves was three times that of the previous low in 1 7 5 7 . W h e n one considers that this advance was even less than that ultimately made by the other series, a merchant's statement that "staves were excessive high and scarce" 14 seems mild. At the same time lumber was "scarce and cost near double the price it usually d i d . " 1 5 During the remainder of 1 7 6 1 the price of pipe staves receded, but it recovered by the last quarter of 1 7 6 2 and the first two months of 1 7 6 3 , when pipe staves were priced as high as, and in one month even higher than, the £ 1 5 per thousand which had been quoted early in 1 7 6 1 . T h e price of barrel staves had a slightly greater rise than that of pipe staves, but its peak was in November 1 7 6 1 when pipe staves were comparatively low for those years. Barrel staves had risen to as high a price as 1 0 0 shillings as early as March 1 7 6 1 and returned to that price as late as September 1 7 6 2 . I n some of the intervening months the price fell precipitously. T h e most extreme rise in the price of any kind of staves was that of hogshead. Its peak of more than £ 1 2 was nearly four times its low price in 1 7 5 6 . L i k e those of barrel staves, the prices of hogshead staves fluctuated widely, rising, f o r example, to £ 1 0 4s. in March 1 7 6 1 , only to fall to £6 12s. the next month. " J a n u a r y 1 9 , 1 7 5 8 , J . Baynton to R . F i e l d , J a m a i c a . " February 6, 1 7 6 1 , Daniel Clark to Richard Bently, Virginia. " M a r c h 28, 1 7 6 1 , T h o m a s C l i f f o r d to J o h n T i p p i n g , Barbados.

128

PRICES IN COLONIAL

PENNSYLVANIA

T h e decline from the high prices of 1 7 6 1 and 1762 was completed by 1764. Barrel staves had fallen more quickly than the other series j in several months of 1763 they were as cheap as at any time in 1 7 6 4 and in one month cheaper. Between 1764 and 1 7 7 0 the prices of staves fluctuated on a high level, especially in 1 7 6 5 when hogshead and pipe staves were relatively higher than barrel staves. The explanation of the divergence between the prices of pipe and barrel staves is to be found in the demand from Portugal. Though in the spring of 1765 pipe staves seemed to be plentiful enough in Philadelphia, 18 in August when two vessels were "just ready to sail for Lisbon chiefly loaded with pipe staves," Clifford wrote, " T h e y will carry most of what was in t o w n . " " In 1767 the prices of barrel staves were higher than they had been in 1 7 6 5 , while those of the other staves, although high, were lower than they had been two years earlier. It was in this year that a firm of merchants commented, "Barrel staves and all kinds of lumber scarce." 18 A few weeks later the same firm explained that "it was with the greatest difficulty we could procure the quantity of staves we have on board." 19 E a r l y in 1768 the prices of barrel and hogshead staves dropped. About this time other kinds of lumber also were more "tolerably reasonable and plenty at present." 20 Only pipe staves seemed to decline gradually. The prices of hogshead staves were, in M a y 1769, at the lowest point reached in the period between the close of the Seven Years' War and the American Revolution. In the latter part of 1769 and the early months of 1 7 7 0 the prices of hogshead staves rose abruptly. This may have been from the same cause which affected the prices of pine boards to the extent that a Philadelphia shipper wrote that they were "so risen with us that I fear [ I ] shall be hard pinched for a cargo to pay freight." 2 1 Shortly afterwards he explained that prices of lumber had advanced and would continue high for some " A p r i l 25, 1 7 6 5 , Thomas Clifford to Walter and Samuel Franklin, New York. " August 3, 1765, Thomas Clifford to Walter and Samuel Franklin, New York. 11 J u l y 4., 1767, Orr, Dunlope and Glenholme to Bigger and Hurlbert, London; J u l y 16, 1767 to Greg, Cunningham and Co., New Y o r k ; J u l y 1 7 , 1 7 6 7 , to George Dunlope and Gilbert Orr, Dublin. " J u l y 25, 1767, Orr, Dunlope and Glenholme to Lane, Benson and Vaughan, Cork. M May 25, 1768, Orr, Dunlope and Glenholme to Andrew Orr in Dublin. " N o v e m b e r 1 , 1769, Thomas Clifford to Lancelot Cowper, Bristol, England.

STAVES

AND NAVAL

STORES

129

time because " a late storm carried away so many mill dams that boards will be scarce." 22 T h e prices of barrel and pipe staves did not appear to be affected since they continued to decline for several months of 1 7 7 0 . In the latter part of that year the prices of all kinds of staves advanced rapidly to a peak in December. At this time British importers were informed that a Pennsylvania merchant would " h a v e sent more staves but they are very scarce, not to be had at almost any price, as indeed all kinds of lumber." 2 3 In 1 7 7 1 pipe staves sagged in price for part of the year but by September had risen to a slightly higher price than that of 1 7 7 0 . T h e price of hogshead staves also dipped during part of 1 7 7 1 , but by N o vember they had again risen to the level of the preceding December and in February 1 7 7 2 they exceeded that price. Barrel staves did not sell in 1 7 7 1 for as much as in December 1 7 7 0 . During 1 7 7 2 prices of staves declined. At that time lumber prices were falling and were expected to be low during that year. 24 About this time Pollard ordered some staves and headings at a price which he considered to be " a very great bargain." 25 F o r the remainder of the year the prices of lumber and staves diverged. In J u l y it was observed that although staves were declining "lumber keeps much higher than last year." 2 0 In September a merchant explained the situation more f u l l y . " A l l sorts of boards," he wrote, "are very high, more especially pine. A n d oak plank is so generally bought up by the ship builders as to render it almost unpracticable to get any." 2 7 In addition to the domestic demand, the hurricanes in the West Indies caused a demand for lumber in the last quarter of 1 7 7 2 . It was at this time that a Liverpool merchant was informed that "the best pitch pine boards are got to such a price that I did not think proper to purchase any more." 2 * T h e very factor which increased the demand for lumber curtailed that for staves. In January 1 7 7 3 , when the prices of the three kinds of a

November 8, 1 7 6 9 , T h o m a s C l i f f o r d to Lancelot Cowper, Bristol, England. November 28, 1 7 7 0 , T h o m a s C l i f f o r d to Lancelot Cowper, Bristol, England. u M a y 1 2 , 1 7 7 2 , William Pollard to William Plummer, J a m a i c a . M a y 1 6 , 1 7 7 2 , William Pollard to Peter Holme, Liverpool. " J u l y 1 , 1 7 7 2 , William Pollard to William Plummer, J a m a i c a . 57 September 2 2 , 1 7 7 2 , T h o m a s C l i f f o r d to T h o m a s F r a n k , Bristol, E n g l a n d . 18 November 1 1 , 1 7 7 2 , William Pollard to Peter Holme, Liverpool. 23

130

PRICES

IN COLONIAL

PENNSYLVANIA

staves were low, Pollard regretted his purchase of staves and headings in the previous year, which, he explained, "are lower now than when I bought them . . . the several islands which suffered so prodigiously by the hurricanes have taken none since." 18 During 1773 lumber was "reasonable" and "continued l o w , " having fallen from the high level of the close of 1772.®° Staves, in contrast, although comparatively cheap in the first months of 1773, advanced in the latter part of the year and continued upward in 1774, reaching peaks in the second half of that year or the first months of 1775. Sharp reductions in price occurred during 1775 as trade declined. T h e similarities and differences in the movements of the three kinds of staves can be seen by comparing the number of each that would exchange for a hundredweight of flour. Hogshead staves apparently were cheap in the twenties and early thirties, since as late as 1736 more than 245 pieces were needed to purchase a hundredweight of flour. In the next few years hogshead staves became dearer. By 1739 slightly less than 150 were equivalent to a hundredweight of flour. From 1740 to 1775 there were marked changes in the value of hogshead staves. In the forties a unit of flour usually exchanged for between 155 and 190 pieces, but in 1746 and 1747 staves were so dear that less than 135 had the value of the unit of flour. In the next decade prices continued to fluctuate in somewhat the same manner as in the 1740's. From 1761 to 1767 hogshead staves in the Philadelphia market were relatively high in value. Less than 150 pieces would always procure a hundredweight of flour. In the remaining years before the Revolution, namely 1768 to 1775, staves tended to become cheaper. In four of these years 180 pieces or more were needed. This was a return to approximately the levels of part of the forties and fifties. T h e value of pipe staves measured in terms of flour differed substantially from that of hogshead staves. Pipe staves always commanded a higher price than hogshead, but between 1720 and 1750 they increased in value more than hogshead did. In the early i72o's " J a n u a r y 5, 1 7 7 3 , W i l l i a m P o l l a r d to Peter H o l m e , L i v e r p o o l . " A p r i l 12, 1 7 7 3 , W i l l i a m P o l l a r d to Peter H o l m e , L i v e r p o o l ; D e c e m b e r 9, to T h o m a s and C l a y t o n Case, L i v e r p o o l .

1773,

STAVES

AND NAVAL

STORES

131

more than 1 7 5 pieces were needed to procure a hundredweight of flour, while in the years from 1 7 3 5 to 1738 between 1 2 2 and 128 were adequate in exchange. Pipe staves were relatively dear from 1739 to 1 7 5 0 inclusive. During this period, except in 1 7 4 1 , a unit of flour could be secured for between 85 and 105 pipe staves. In the early fifties there was a slight decline in value; usually more than n o pipe staves were required in barter. B y 1 7 6 0 the value had again increased. In the years from 1 7 6 0 to 1 7 6 5 a unit of flour was equivalent to 65 to 85 pieces. In the decade preceding the Revolution the relative value of pipe staves again declined. Between 95 and 105 pipe staves for 1 1 2 pounds of flour was the usual relationship. The fluctuations in the value of barrel staves followed roughly those of hogshead. T h e greatest difference was in 1 7 6 3 when the barrel staves declined more in value than hogshead or pipe. The result was that in that year about 308 barrel staves equaled in trade 1 1 2 pounds of flour. No such quantity was needed in any year between 1738 and 1 7 6 7 , except in 1 7 4 1 when pipe staves also were low, and in 1748, 1 7 5 4 , and 1 7 5 5 . In the unsettled years from 1768 to the Revolution the net effect of a rising trend in prices of flour and a reduction in the price of staves was an exchange ratio of 338 to 358 barrel staves for 1 1 2 pounds of flour in 1 7 7 2 and 1 7 7 3 . These comparisons of the prices of staves with those of flour emphasize the importance of the rise in prices of staves, especially from 1 7 2 0 to 1 7 3 9 . During these years, staves increased in price more rapidly than flour. In hogshead staves this tendency continued, but at a slower rate, until 1 7 4 7 . In spite of many fluctuations, a rather constant relationship persisted, especially between pipe staves and flour, until the rapid advances of prices of staves from 1 7 5 9 to 1 7 6 2 , when they increased more rapidly than flour. From 1 7 6 2 to 1 7 7 5 staves in general declined in value as measured by flour, for two reasons. In the first place, the average price of staves, especially from 1 7 6 4 to 1 7 7 5 , although higher than in previous decades, was below the high levels of 1 7 6 1 and 1762. Second, during the same years, especially at the close of the sixties and the beginning of the seventies, flour continued its advance in price.

132

PRICES

IN COLONIAL

PENNSYLVANIA

P I T C H , T A R , AND T U R P E N T I N E

T h e three types of oak staves for which quotations are available in our price series represent forest products, the output of the lumbering and cooperage industry of Pennsylvania. T h e staple products of the pine forests of the southern colonies are represented in the prices of pitch, tar, and turpentine. Both groups provide at least a sample of prices for commodities which, although allied to agriculture and complementary in some ways to it, were less variable in supply from one year to another than the staple grain crops. T h e naval stores had a market in Philadelphia, first, as a part of the export and carrying trade, and, second, as a part of the shipbuilding activity of the port. In our series, the prices of tar, pitch, and turpentine have a special interest in furnishing evidence of the basis upon which the staples of one colony sold in the markets of another. T h e prices of naval stores in all the colonies were much influenced, if not determined, by the London market. Production was fostered by bounties in an effort to lessen the dependence of Great Britain on the Baltic countries. Some legislation for the encouragement and regulation of the supplies of tar, pitch, turpentine, and resin produced in America was in effect a decade and a half before our record begins. 31 In fact, it has been pointed out in connection with the Carolina trade that, in 1 7 1 9 , "the great quantities of tar and pitch shipped to Great Britain, far exceeding requirements, had broken the market, and it was found necessary to re-export to Holland." 3 2 In 1 7 2 0 , when our record starts, tar sold in the Philadelphia market for 1 0 shillings a barrel of 3 1 ^ gallons, pitch for 1 6 shillings 6 pence, and turpentine for 24 shillings. T h e prices of tar continued at 1 0 shillings through November 1 7 2 0 , but, after falling then to 8 shillings, continued at this low level through October 1 7 2 1 . Pitch declined in 1 7 2 0 six months before tar, dropped still more in December when the dip in tar prices occurred, and, after holding at 1 2 shillings from January to J u l y 1 7 2 1 , sold as low as 1 1 shillings from August to October. During 1 7 2 0 and the first seven months of 1 7 2 1 , when prices of tar declined 20 per cent and " G r a y , L e w i s Cecil, History of Agriculture Vol. I, p. 1 J 3 . " G r a y , L . C., of. cit., Vol. I , p. 1 5 5 .

in the Southern United. States to

i860,

STAVES

AND

NAVAL

STORES

133

those of pitch had an even more marked recession, turpentine continued to be sold for 24 shillings a barrel and f r o m A u g u s t through October 1 7 2 1 advanced as much as a shilling and a half a barrel. A t this time, when prices of naval stores were considered to be low and the quotations for tar and pitch were declining in the P h i l adelphia market, discussion was in progress over the continuance of bounties upon the Colonial naval stores. " A f t e r f u l l y considering the matter the Board [of T r a d e ] decided to recommend that half the premium be taken off pitch and tar, with the exception that on tar purchased by the navy the bounty should be lowered only a f o u r t h ; that the premium on turpentine be l o w e r e d two-thirds; that the premium on resin be removed entirely." 3 3 W h a t e v e r may have been the effect of this legislation upon the price of naval stores in the other colonies, there was a marked upswing in the prices of tar and pitch in the Philadelphia market between October 1 7 2 1 and February 1728. T h e advance made between October and N o v e m b e r 1 7 2 1 restored the price of tar to the level it had had in all but the closing month of 1720. T a r sold for 6 pence a barrel above this price, or for 10 shillings 6 pence, until A u g u s t 1 7 2 3 , but the price in the closing months of 1723 was as high as 14 shillings. In A p r i l 1 7 2 4 tar prices again dropped back to the 10 shillings a barrel, which had been the current quotation in the first eleven months of 1720, the two closing months of 1 7 2 1 , and the first six months of 1 7 2 2 . Prices of pitch increased f r o m the depressed l e v e l of 11 shillings a barrel at which it was quoted from A u g u s t to October 1 7 2 1 to 13 shillings 6 pence, a price at which it continued to be quoted from N o v e m b e r 1 7 2 1 until June 1723. A lower price of 12 shillings prevailed for the rest of 1723. It was not until 1 7 2 4 that prices of pitch reflected any part of the temporary rise which had advanced tar prices in 1723. D u r i n g the period from 1 7 2 1 to September 1 7 2 4 the bounty on tar exported to E n g l a n d should have applied only to that made f r o m green timber and not to the common grade of tar made f r o m dry timber. T h e colonists felt that not only was the industry discouraged by the reduction in bounties in 1 7 2 1 but that the method "Gray, L. C., of. cit., Vol. I, pp. 155-156.

134

PRICES

IN COLONIAL

PENNSYLVANIA

of procuring tar f r o m green timber required an increased amount of labor for a return of " l i t t l e more than a third as much product as the same quantity of dry t i m b e r . " " T h e bounty which had applied to a limited part of the output from 1722 to 1 7 2 4 expired in 1724, leaving the products without bounties from 1 7 2 4 to 1 7 2 9 . " T o the narrower market than that which formerly attracted C o l o nial naval stores, to the lack of additional incentives to produce in these years, and to the discouragement to trading in these products may be attributed the frequent gaps in newspaper quotations before 1 7 3 1 . T h e general movement of prices of tar and pitch is, nevertheless, clear. Between the close of 1 7 2 4 and August 1726 prices of tar advanced from 10 to 15 shillings a barrel. In N o v e m b e r tar was "scarce" and sold in this and the following month for as much as 20 shillings a barrel. T h i s price, which recurred in the first two months of 1728, marked the peak of the upward trend in tar prices which started in N o v e m b e r 1 7 2 1 at 8 shillings. T h i s advance, in which prices of tar doubled between 1 7 2 4 and the close of 1726, brought the highest quotation at which tar ever sold in Philadelphia in Colonial years. Pitch had a more steady though less extreme advance. F r o m the price of 12 shillings which prevailed in the last six months of 1 7 2 3 , it rose to 17 shillings 6 pence in June 1 7 2 4 and sold from August 1725 to A p r i l of the f o l l o w i n g year at 19 shillings 6 pence. Prices were no lower than 18 shillings in 1727. A t the peak, pitch sold in February 1728 at 20 shillings, a relatively lower level than tar reached in this five-year period of advancing prices. T h e r e a f t e r tar and pitch both declined abruptly. In two months prices of tar collapsed f r o m 20 shillings a barrel to 9 shillings, but rebounded to 10 shillings, at which it continued to sell from June 1728 to M a y 1729. Pitch, in the same way, dropped one-half in price between February and A p r i l 1728 and returned to the same low level in October 1729. O w i n g to the complete disappearance of turpentine from the lists of prices current f r o m 1 7 2 3 to 1730, it is impossible to indicate satisfactorily the course of its prices in the decade of the twenties. W e have been able to find merchants' sales of turpentine in most months " Gray, L. C., of. cit., Vol. I, p. 156.

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AND

NAVAL

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135

of 1726 and in the closing months of 1729. Beyond that, except for two months in 1730, the prices of turpentine f r o m 1723 through 1730 seem, for the present, not only unavailable but hard to estimate. O f the naval stores, prices of turpentine are most difficult to interpolate, not because the changes in price normally occur at such different times from those of pitch and tar, which f o l l o w each other closely, but because turpentine is subject to more extreme variations. Besides, in the opening year of our record, when adequate data are available, turpentine was relatively much higher in price than tar or pitch. F r o m this seemingly high level of 24 shillings a barrel, which was maintained without change through J u l y 1 7 2 1 , prices of turpentine advanced before the end of the year to 28 shillings 6 pence, the level at which it was carried on the list until the end of 1722. F r o m the fact that tar rose to the maximum price of the Colonial era in this decade, from the fact that pitch rose at the same time, though less extremely, and f r o m the fact that account book prices of turpentine were as high as 42 shillings in most months of 1726 and that turpentine was scarce in 1 7 2 7 , one may infer that higher levels than 42 shillings were reached. F r o m a merchant's account book it appears that prices of turpentine had dropped back to about the l e v e l of 1 7 2 0 by June 1729 and were, by the end of the third quarter of 1729, just below the average price of 1722. M o s t commodities had declined by 1728 or 1 7 2 9 f r o m the peak of a swing in prices which started in the early years of the decade. N a v a l stores had a particularly abrupt decline and their prices kept at low levels during most of 1729. I n that year " n e w and more moderate premiums" 3 5 were granted on naval stores exported from the American colonies for use in Great Britain. " F o r tar made from green timber according to the methods required by Act of 1 7 2 1 , the former bounty of £4 per ton was allowed. T h e bounty on other tar was lowered from £4 per ton to £2 4s., on pitch f r o m £4 to £1 per ton, and on turpentine from £3 to £1 ios." 3 6 T h e importance of the legislation is, first, that the bounties established at this time continued to be paid for the rest of the Colonial " A n d e r s o n , of. cit., V o l . I l l , p. 402. " G r a y , L . C . , of. cit., V o l I , p. 1 5 6 .

136

PRICES

IN COLONIAL

CHART X I V — M O N T H L Y

PENNSYLVANIA

R E L A T I V E S OF W H O L E S A L E P R I C E S OF

(Base—Monthly

STAVES

AND

NAVAL

STORES

137 PER C E N T

200

P I T C H , T A R , AND T U R P E N T I N E IN P H I L A D E L P H I A ,

Average, 1741-1745)

1720-1775

138

PRICES IN COLONIAL

PENNSYLVANIA

C H A R T X I V — M O N T H L Y R E L A T I V E S OF W H O L E S A L E P R I C E S OF P I T C H ,

(Base—Monthly

STAVES

AND

NAVAL

139

STORES PER CENT

T A R , AND T U R P E N T I N E IN PHILADELPHIA, I 7 2 0 - 1 7 7 5 ,

Average, 1 7 4 1 - 1 7 4 5 )

Concluded

140

PRICES

IN COLONIAL

PENNSYLVANIA

era, and second, that some emphasis was put upon the quality of tar by the grading requirements set up in the standards for export. Since merchants in Philadelphia, as in other colonies, traded in tar and pitch to send to England, they necessarily had to stress the need for clean, merchantable tar. As late as the sixties, in correspondence with a Carolinian, Clark referred to the grading upon which bounties were based as "two sorts of tar which if good in their kind are entitled to two different premiums, viz., for the common tar 44 shillings per ton containing 8 barrels each to gauge 3 1 ^ 2 gallons j for the green tar 80 shillings per ton as above but if not very clean, good, and merchantable, entitled to no bounty." 37 There is no reason to assume that the existence of bounties directly afFected the prices paid for naval stores for use in the Philadelphia area. Neither is there evidence that the colonists set any premium in their own consumption upon the green tar or tar made by the Swedish process which had preference in the English trade. T h e grade of tar is as unspecified in our prices after 1 7 2 9 as before and the narrow range between the highest and lowest quotations in the prices current differed in no way after 1729. Prices of tar and pitch advanced moderately in the closing months of 1729. No further rising tendency developed in the fluctuating movements of the next three years. T a r sold at an average price of just over 1 1 shillings in 1 7 3 0 and 1 7 3 1 or at about the average price of 1729. Its average in 1 7 3 2 was but one penny over 1 0 shillings. Prices of pitch in these three years kept above the average of 1 7 2 9 by as much as 1 shilling 9 pence to 3 shillings. The highest prices of pitch and tar in the decade of the thirties were reached in 1 7 3 3 and the opening month of 1 7 3 4 . In this advance, tar, which had sold for 1 0 shillings in February 1 7 3 3 , commanded as much as 1 4 shillings from November 1 7 3 3 to January 1 7 3 4 . Pitch, which had fluctuated about a price of 1 4 shillings from 1 7 3 1 to February 1 7 3 3 , sold for 18 shillings in April and in the nine months following. The temporary character of the advance of 1 7 3 3 is evinced by the abrupt decline and the continuance of a downward tendency for " M a r c h 16, 1 7 6 2 , Daniel Clark to William Nichelson, New Bern, North Carolina.

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the next four years. T h e downswing in prices of tar did not end until December 1 7 3 7 . T h e decline in pitch was interrupted in 1 7 3 6 and stopped in April 1 7 3 7 . Turpentine fared worse than the others in this long decline, dropping violently from October 1 7 3 1 until December 1 7 3 7 , and ended this severe decline at one of its lowest levels of Colonial years. It would not be worth commenting upon the fact that naval stores in general were at the lowest prices of the whole era if the trend of tar, pitch, and turpentine were similar to that of most commodities for which detailed prices were obtainable in these years, especially grains and grain products. Considering the change of price level noted in most series and the marked upward trend in many, the tendency of naval stores to fluctuate about the same level throughout the years from 1 7 2 0 to 1 7 7 5 is surprising. Since, during the entire Colonial period, tar and pitch had a horizontal trend and turpentine tended slightly downward, the fact that the naval stores were at or near their minimum for the era as early as 1 7 3 7 marks this period as one of unusual depression in the prices of these commodities. T o the war with Spain and to the share of the colonies in the expedition against Cuba must be credited some part of the marked rise which occurred between 1 7 3 8 and M a y 1 7 4 1 . In each year in this short period prices of tar and pitch rose above the level of the previous one. From a prevailing price of 10 to 1 1 shillings a barrel in the late thirties, pitch reached 20 shillings in M a y 1 7 4 1 . Most of this increase came after the declaration of war was known here in April 1740. Likewise tar advanced from an average of about 8 shillings 6 pence in 1 7 3 7 to 16 shillings in M a y 1 7 4 1 . Although the lowest price of turpentine in the decade of the thirties was reached in December 1 7 3 7 when tar also recorded its low, turpentine did not advance at first as rapidly as the other naval stores, with the result that its average price in 1 7 3 8 was less than 12 shillings compared with nearly 13 shillings in the previous year. In the next year and a half there was but a slight upward tendency, turpentine usually selling between 12 and 1 5 shillings. After the middle of 1740 it doubled in price, selling for 30 shillings in September. This highest price of turpentine during the war with Spain oc-

142

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curred nearly nine months ahead of the maximum prices of pitch and tar. N a v a l stores appear to have shared in the increased demand which affected the prices of many Colonial products in the early years of the war. F o r about two years the prices of naval stores fluctuated, although they were sustained at a high level. Turpentine, in fact, after dropping to a level between 19^2 and 2 1 shillings in the latter part of 1 7 4 1 and the early months of 1 7 4 2 , rose to 27 shillings in J u n e of that year. B y December 1 7 4 2 turpentine had dropped to 1 5 shillings, which was equal to a moderate price in the pre-war period. In the movements of prices in the first years of the war, turpentine advanced ahead of the other naval stores and completed the bulk of its decline long before they did. Pitch and tar sustained a higher level through the first quarter of 1 7 4 3 . As late as March, pitch sold for 1 6 shillings a barrel and tar for 1 2 shillings. T h e sustained character of prices of naval stores during r 7 4 1 and 1 7 4 2 may be explained by the activity in ship-building and house-building at the port at this time. 88 T h e decline during 1 7 4 3 was rapid. In general it may be said that J u l y marked the end of the decline except for the fact that tar had an erratic dip in April. In the years from 1 7 4 3 to 1 7 4 7 prices of naval stores were low. T a r had a sizable swing, rising to 1 4 shillings in December 1 7 4 4 and February 1 7 4 5 . T h i s is the only way in which the operations about Louisburg are reflected in the prices of naval stores. B y March and M a y 1 7 4 7 tar had declined, in spite of some interruptions, to 8 shillings. Pitch, after selling for 1 2 shillings in J u l y 1 7 4 3 , rose to 1 4 shillings, which was the prevailing price in most of 1 7 4 4 and 1 7 4 5 . But thereafter a downward pull on the price of pitch brought about a decline in its annual average. In the f a l l of 1 7 4 5 there was a momentary spurt to 1 6 shillings, but in October it receded to 1 4 shillings and in December to 1 2 . I n J u l y and August 1 7 4 6 pitch sold for 1 0 shillings a barrel for the first time in seven years. Turpentine, which usually sold well above the price of pitch, de" July 24, 1742, Richard Hockley to Thomas Penn, London, in Pennsylvania Magazine of History and Biografhy, Vol. XXVIII, 1904, p. 31.

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143

clined in 1 7 4 3 and 1 7 4 4 until in some months a barrel of turpentine actually sold for even less than a barrel of tar. T h i s disparity contributed to the fact that the prices of turpentine after 1 7 4 4 show a strong upward movement which raised this commodity from a price of 9 shillings a barrel in the summer of 1 7 4 3 to 1 4 shillings in J a n uary 1 7 4 6 . This price tended to hold for sixteen months while the prices of the other naval stores sagged. Merchants were well aware of the sensitivity of prices of turpentine to changes in supply. This was stressed by Powel in placing an order with an exporter in South Carolina when he specified that "although it is not very plenty . . . a small quantity of turpentine may do, 20 or 3 0 barrels or not to exceed 50." 3 9 T h e slight rise in M a y and June 1 7 4 7 , after the price had been sustained at 1 4 shillings for more than a year, was caused by the fact that there was " v e r y little [turpentine] in town." 40 T h e abruptness of price changes is shown by the dip in J u l y 1 7 4 7 to 1 1 shillings 8 pence, although turpentine sold for 1 5 shillings in the months before and after. It is interesting to relate the movements in the prices of naval stores during the war with Spain and France to the conditions that were affecting the supply and their use. In the first stage of the war, stocks of English goods, including cordage, nails, sail cloth, cables, and other materials used in the building and outfitting of vessels, were plentiful in Philadelphia and low in price.'11 At this time, the increased need for ships and the refitting of ships, especially for the expedition to the Spanish West Indies, raised the prices of tar, pitch, and turpentine in Philadelphia. In 1 7 4 3 and 1 7 4 4 , however, prices declined. T h e continued dullness of trade in naval stores can be attributed to the lack of activity in ship-building because of high wages and the scarcity and high cost of materials usually imported from Great Britain for fitting new ships. In addition, the loss of merchants' ships during the war and the disinclination of owners to send ships to sea reduced the demand for supplies used in refitting the ships. Although some of these factors affected the supply of naval stores in Philadelphia, they influenced the demand to an even " J u n e i , 1746, Samuel Powel, J r . to Gabriel Manigault, South Carolina. " A p r i l 16, 1747, Samuel Powel, J r . to Gabriel Manigault, South Carolina. " See Chapter X I , Trade in British Goods.

144

PRICES

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PENNSYLVANIA

greater extent. Near the close of the war the greater freedom from attacks on shipping increased trade and revived ship-building at the port of Philadelphia. This change is reflected in the rising price of naval stores after 1 7 4 6 , especially in the latter part of 1 7 4 7 . T h e rise continued in the post-war years. All of the series reached an extreme peak in April 1 7 5 0 . In the case of tar, this peak was the maximum point of the price swing of the fifties. From then until August 1 7 5 3 , tar prices dropped. While the rapid part of the decline occurred in the second quarter of 1750, each following year until 1 7 5 3 shows average prices for tar considerably below the one before. Both pitch and turpentine in the first half of the 1750's had singularly different price movements from tar and in some years even pitch and turpentine varied from each other. Like those of tar, the prices of pitch and turpentine rose to a steep peak in the spring of 1 7 5 0 . H e r e the three series were relatively close together with pitch slightly above the others. A l l series declined at once when the recession in tar occurred and all held at a comparatively stable level through March 1 7 5 1 . Then pitch and turpentine moved upward to extremely high levels in 1 7 5 1 and 1 7 5 2 while prices of tar dropped. T h e summit of this movement in turpentine was attained in September to December 1 7 5 1 when a price of 30 shillings a barrel was reached, 5 shillings more than it had sold for in the erratic peak of 1750. Nearly as high prices were paid for turpentine again in the spring of 1 7 5 2 , but one could say that a downward movement which lasted until J u l y 1 7 5 6 was under way after the close of 1 7 5 1 . T h e rise in the price of pitch was finished more quickly in 1 7 5 1 than was that of turpentine and the high levels in the prices of pitch were longer maintained. Maximum levels for this price movement occurred in M a y and June 1 7 5 1 , were repeated in the closing months of that year, and continued from January to March 1 7 5 2 . At this time pitch sold for 24 shillings a barrel or a trifle less than was paid for turpentine in the month of extremely high prices in 1 7 5 0 . Though naval stores are characterized by long price swings accompanied by extreme monthly fluctuations, the expansion phase of the rise from 1746 for pitch and from 1 7 4 3 for turpentine until 1 7 5 0

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and 1 7 5 1 is the longest one in Colonial times. T h e downswing from 1 7 5 2 to 1 7 5 6 in pitch and turpentine is also unusually prolonged. In the case of pitch, the height reached in the short elevation of 1 7 5 0 and again in 1 7 5 1 and 1 7 5 2 was the maximum of the Colonial era. More than 20 shillings a barrel for pitch was the average price in 1 7 5 1 and 1 7 5 2 . There are occasional months, one in 1 7 4 1 , two in 1 7 5 0 , one in 1 7 5 6 , and two in 1766, when pitch sold for 20 shillings or more a barrel, but there is no other time when it maintained such a high level for a period of a year. At this time prices of pitch were out of line with those of tar. Pitch continued to be relatively dearer than tar throughout most of the downswing, though after 1 7 5 4 the two series drew closer to their typical relationship. One cannot so definitely say that the peak of 1 7 5 1 in the prices of turpentine was as unusual as the one in the pitch series since turpentine was subject to abrupt swings and high or higher prices were reported at other times. In the downswing from 1 7 5 2 to 1 7 5 6 the price movements of pitch and turpentine were quite dissimilar. In the first place, pitch dropped immediately from the high levels which it had held through the first quarter of 1 7 5 2 and reached quite low levels by October 1 7 5 2 . It rose again in the fall and winter months and then dropped until in J u l y 1 7 5 3 it was at a still lower point than it had touched in the decline of 1 7 5 2 . There was a similar tendency to rise and fall in 1 7 5 4 and the following years, until the low price of 1 2 shillings a barrel was listed for pitch in 1756. At this point it was sold for one-half the price it had brought in the high months of 1 7 5 1 and the opening months of 1 7 5 2 . Turpentine receded more gradually than pitch in 1 7 5 2 and, except for an erratic dip in December 1 7 5 2 which lasted through January 1 7 5 3 , its decline was gradual enough to keep prices of turpentine relatively high until the autumn of 1754. From then on it declined steadily and reached the comparatively low level which terminated this swing in prices in J u l y 1756. The extent of the increase at the end of the forties and in the early fifties, coupled with the fact that naval stores had been signally raised in price in the early years of the forties during the British war with Spain and later with France, has especial significance when the course of the prices of naval stores

146

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at Philadelphia during the Seven Years' W a r is considered. During the years from 1756 to 1762 all these commodities showed only moderate fluctuations around a medium level. T h e course traced by prices in these years was not at all what merchants anticipated before war was declared. In April 1755 when turpentine averaged 14 shillings 3 pence and in some weeks fell to 11 shillings, when pitch averaged 13 shillings and tar 9 shillings 6 pence a barrel, Thomas Wharton was satisfied that prices were very low and was "of opinion that it would be prudent in thee to keep it 'till we are confirmed whether there will be a war with France or no. If there should be, those [turpentine and pitch] as well as other naval stores must undoubtedly rise and if there should not be a war, I think they cannot be much lower." 42 It is true that the levels of April 1755 were low, but still lower prices for turpentine, lasting for a month or two, can be found in each of the years following even up to 1764, except in 1758 (where our prices are infrequent) and in 1759. In the case of pitch, the price of 13 shillings in April 1755 was so markedly low that it rarely sold under this level in the following years. O n the other hand, in only one month was the sale price above 16 shillings. T h e prevailing level until 1762, when prices dipped, was between 14 and 16 shillings. Prices of tar increased in 1755 from the temporary dip of April, but receded the next year and sold in 1757 and 1758 within a range of 9 to 10 shillings. There was no rise to a quotation as high as II shillings until October 1759. Except for three months of higher prices from November 1759 through January 1760, there was little tendency for prices of tar to break away from these low levels until near the close of 1760 and even then prices were back to 10 shillings by July 1761 and as low as 8 shillings 6 pence in the next month. T h e highest prices of the years from 1756 to 1761 were attained in 1759. Turpentine reached its highest price of this period in March 1759, pitch in April, and tar in November. O f the three, pitch had relatively the highest peak, but it was for a single month and is of " A p r i l 12, 1755, Thomas Wharton to Job Jacobs, Wilmington, North Carolina.

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no special significance. A l l the series declined to low levels in 1 7 6 0 and again in 1 7 6 1 . A comparison of the movements of the prices of naval stores during the Seven Y e a r s ' W a r with those of the earlier war with Spain and France shows outstanding differences which must have been caused by the fact that the war from 1 7 5 6 to 1 7 6 3 in its effect on Pennsylvania was a land war in contrast to the naval character of the operations in the forties. This condition was also reflected in prices of shot and gunpowder, which were scarce and in demand in Philadelphia, especially in the latter part of the war after Spain entered the conflict. Although the three series of naval stores did not reach their lowest prices of this period at the same time, all were headed upward in 1 7 6 3 in the course of a major price swing in which they recorded peaks at different times between 1 7 6 4 and 1 7 6 6 and then declined to 1 7 6 9 or 1 7 7 0 . T a r in these years had an irregular upswing from August 1 7 6 1 to M a y 1 7 6 4 . A f t e r an interim of low prices, it reached a secondary peak in 1 7 6 5 . Prices of pitch, which had many jagged peaks, followed approximately the movement of tar. T h e highest monthly prices for pitch, 20 shillings a barrel, occurred in J u l y and September 1 7 6 5 and again in October and November 1 7 6 6 , but the highest annual average was that of 1 7 6 5 . In this upswing turpentine f a r outstripped the other series in its peak of August 1 7 6 6 . T h e rise started from a low of 1 2 shillings a barrel in November 1 7 6 2 . In one month of the following year turpentine sold f o r as much as 1 5 shillings. T h e highest price in 1 7 6 4 was 1 8 shillings, but by the next year a price of 20 shillings was quoted in three months. Although tar was tending to move to lower levels in 1 7 6 6 and although pitch had in that year only a correlative peak with that of 1 7 6 5 , turpentine continued to advance in price. I n eight months of 1 7 6 6 turpentine commanded 20 shillings or more a barrel, the peak being 30 shillings. F o r the naval stores as a group, the year 1 7 6 5 should be regarded as the peak of prices in the years between the end of the Seven Y e a r s ' W a r and the Revolution. It is somewhat surprising that the high level of pitch in 1 7 6 5 was repeated in the following year and that turpentine rose to such an immoderate peak in 1 7 6 6

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since the merchants realized early in 1 7 6 5 that "pitch and turpentine will bring a great price here being much wanted." 43 Either the needs of the colony increased further or else supplies were not forthcoming during the remainder of that year and even in the next year. In other letters of merchants in connection with various commodities it was often noted that it did not pay to ship supplies from a distance to meet a scarcity since others might have sent additional supplies beforehand. The decline from the peaks of 1764 to 1766 to the low of 1769 was gradual, especially in tar, until 1767, but by February 1769 tar was nearly as cheap as it had been in August 1 7 6 1 . T h e decline in prices of pitch after 1766 was steeper than that of tar. In addition, pitch had a marked check to the decline in its prices of 1767 which did not affect the prices of other naval stores. By February 1769 the price of pitch had been reduced to 1 0 shillings a barrel. At this price it was as cheap as it had been at any time after 1 7 3 7 . Turpentine, after its extreme peak of 1766, sold for 20 shillings or more for nine months. In fact it was quoted at 22 shillings a barrel in four of the first five months of 1767. A sharp drop in prices occurred in June 1 7 6 7 and a more gradual tendency to decline dominated the price of turpentine for nearly two more years until in April 1769 it sold for 1 1 shillings 6 pence—the cheapest it had been after 1744. One explanation of the relatively low prices in 1769 was the small demand for naval stores.44 It was in this year that trade was nearly at a standstill and prices of many other commodities low. The trend of prices of all naval stores was upward in the closing years of the Colonial period. T h e rise in tar prices began in March 1769. B y December 1 7 7 2 the irregular advance had brought its price to the highest levels found in any month after the erratic highs of 1 7 5 0 , and 70.3 per cent above the low of February 1769. Though the average prices of 1 7 7 3 and 1 7 7 4 were a trifle under those of 1 7 7 2 , there was a marked tendency to adhere to high levels until the beginning of 1 7 7 5 , when the price of tar sagged. In its advance from the low price of 1769 pitch made very little headway until the opening of 1 7 7 2 . There was a sudden increase " F e b r u a r y 20, 1 7 6 5 , Francis and Rolfe to Nicholas Brown, Providence. " A u g u s t 28, 1769, Thomas Clifford to Nathaniel Giles,

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STORES

149

of 4 shillings a barrel between December 1 7 7 1 and January 1 7 7 2 which held through February. H a l f of this rise was lost in March and a comparatively stable price was maintained until December of that year. Prices as high as those reached in January and February 1 7 7 2 appeared in some months of each of the following years, but the prices of pitch were raised relatively less than those of the other naval stores. In J u l y 1 7 7 5 a marked rise took place. Prices of turpentine, except for a short seasonal advance in the summer of 1 7 6 9 , followed much the course of pitch until 1 7 7 2 . U p to this time it was relatively lower than tar and advancing more slowly. But turpentine prices advanced throughout 1 7 7 2 and went to still higher levels in 1 7 7 3 when the tar and pitch series made little headway. While there were months when prices dipped, the average price of turpentine in each year from 1 7 7 1 to 1 7 7 5 was higher than that of the one before. A f t e r April 1 7 7 5 prices of turpentine suddenly advanced 7 shillings 6 pence above the highest price they had reached in any month in 1 7 7 3 or 1 7 7 4 . In 1 7 7 5 prices of turpentine were the first to show the changed level to which prices were to go in the following years and were, at this time, not only three months ahead of pitch in advancing but rose more extremely. Meanwhile, prices of tar showed, on the whole, a declining tendency with no evidence of an advance above the highest levels of 1 7 7 2 and 1 7 7 4 until 1 7 7 6 . In the movements of prices during the Colonial period pitch normally sold well above tar. During the decade of the twenties there was a considerable variation in the differential between these two related commodities. In some years the annual average price of pitch was only between 1 shilling and 1 shilling 6 pence a barrel more than the price of tar, while in other years there was a difference of from 3 shillings 3 pence to nearly 5 shillings. A more stable relationship existed between the prices of tar and pitch during the thirties and forties. T h e typical relationship was a price of from 3 shillings to 3 shillings 6 pence more per barrel for pitch than tar. In only occasional years was the differential lowered to less than 2 shillings 6 pence or raised above 4 shillings. During the decade of the fifties, especially in the first half, there was a decided change in the relationship of these two commodities.

150

PRICES

IN COLONIAL

PENNSYLVANIA

This shift had started in the latter part of the 1740's. In 1746 tar and pitch sold within 2 shillings 4 pence of each other, but during the next five years the differential between them steadily widened until in 1751 pitch was nearly 10 shillings 6 pence more per barrel than tar. In other words, in 1746 pitch was 25 per cent higher in price than tar, but in 1 7 5 1 it was 95 per cent. T h e next year, when the difference in price was approximately 10 shillings, pitch was about twice the price of tar. From 1750 to 1 7 5 4 and in 1759 the price of pitch was 5 shillings or more above that of tar. T h e decade of the sixties approximated the conditions of the thirties and forties. In three years the differential between tar and pitch was 4 shillings or more and in one year it was less than 2 shillings, but in the other years it ranged between 2 shillings 6 pence and 4 shillings. In the years just before the Revolution, the relationship of pitch to tar was different from that in any other period. Although in 1766 pitch was more than 5 shillings 4 pence a barrel dearer than tar, its differential continuously declined for five years and was not checked until in 1771 the average price of tar was slightly above that of pitch. In the first three years of the seventies the difference between the prices of the two commodities was less than 3 pence. Even in 1 7 7 4 pitch sold for only 1 shilling 4 pence more than tar. It appears definitely that from 1769 to the time of the Revolution pitch never averaged 1 shilling 10 pence more per barrel than was paid for tar, its raw material. T h i s is a distinctly changed relationship compared with the differential of 2 shillings 6 pence to 4 shillings which had dominated most of the period from 1720 to 1775. It has already been noted that the swings in the prices of turpentine were more extreme than in those of the other naval stores. This fact contributes to the instability of the relationship between tar and turpentine during the Colonial period. T h e most significant factor in the relationship of tar and turpentine is the tendency throughout these years for the absolute price of turpentine and tar to come closer together. O n l y temporarily in the decade of the fifties was this tendency interrupted. T h e exchange ratios of tar, pitch, and turpentine for flour emphasize the usual difference in price between these commodities. T h e

STAVES

AND

NAVAL

STORES

151

prices of pitch and tar tended to fluctuate around a constant level. W h e n these prices are compared with that of flour, which tended to rise, especially in the later part of the Colonial period, they show a decline in value. A s the period advanced, increasing amounts of tar, pitch, and turpentine could be secured f o r a hundredweight of

C H A R T X V — A N N U A L R E L A T I V E S OF W H O L E S A L E PRICES OF P I T C H , T A R , AND T U R P E N T I N E IN P H I L A D E L P H I A , (Base—Monthly Average,

I720-1774

1741-1745)

flour. T h i s is particularly true of turpentine, which had a tendency to decline in price, especially in the thirties and forties. A s late as 1 7 3 4 less than 1 5 gallons of turpentine were equivalent in value to a hundredweight of flour. I n the remainder of the thirties there were wide fluctuations in the ratio of turpentine to flour. In some years turpentine was relatively so dear that 1 8 or 1 9 gallons

152

PRICES

IN COLONIAL

PENNSYLVANIA

would suffice in exchange for a hundredweight of flour and in other years it was so cheap that 28 to 30 gallons were required. During the forties and fifties between 20 and 24 gallons of turpentine was the typical exchange relationship. By the sixties and seventies 30 to 40 gallons were as a rule the equivalent in price of 1 1 2 pounds of flour. T a r , which had a horizontal trend in price during the entire period, had a more constant relationship to flour from 1720 to 1747, when from 25 to 35 gallons of tar would usually exchange for the hundredweight unit of flour. T h e different level in the price of flour after 1747 is reflected in the fact that from 1748 to 1775 the usual exchange ratio between tar and flour was 40 to 45 gallons and never less than 32 gallons. In 1762, when flour was especially high and tar comparatively low, the ratio was increased to nearly 53 gallons. T h e relation of naval stores to flour shows that the prices of pitch behaved like those of tar before 1747 and afterwards like those of turpentine. From 1720 to 1747 pitch, like tar, had a substantially unchanging relationship to flour. Since the price of pitch was higher than that of tar, from 15 to 25 gallons of pitch were equivalent in value to a hundredweight of flour in almost every year. A f t e r 1747 somewhat paralleling the relationship of turpentine to flour, pitch tended to decline in value in relation to flour. During the fifties 25 to 30 gallons of pitch could be purchased with the standard unit of flour. In the sixties this ratio was increased to 30 to 40 gallons and in the early seventies still further to 40 to 45 gallons. T h e comparison of forest products in Pennsylvania with those of the southern colonies, especially Carolina, illustrates the increasingly favorable position of the produce of Pennsylvania in trade for the staples of other areas. T h e staves of Pennsylvania tended to increase in price from 1720 to 1761 and maintained a comparatively high level during the remainder of the period. T h e naval stores, however, were imported into Pennsylvania and sold here for approximately the same price during the entire period, or even for a declining price. W h e n both of these types of products are related to flour, the great staple of Pennsylvania, the contrast is even more marked. Staves, especially during the first two decades, increased in value in terms of flour while naval stores barely held their own or even

STAVES

AND NAVAL

STORES

153

declined. Despite a slight decline in value after 1 7 6 2 , staves still maintained a level well above that of the early years. N a v a l stores, however, continued to decline in value. Often in the later years more than twice as much tar, pitch, and turpentine could be secured for a hundredweight of flour as would have been received in earlier decades. T h e contrast between the forest products of Pennsylvania as represented by staves and those of the Carolinas as typified by the naval stores rests chiefly on the difference in the long-time movements of these commodities during the Colonial period. T h e prices of staves moved upward in successive steps, establishing higher and higher levels. In the first part of the period these increases were greater than in flour, and in the later years the advance in the prices of staves corresponded to the advance in the prices of flour until after 1 7 6 1 . T h e absolute prices of naval stores had no rising tendency and turpentine even had a slight downward tendency. As a result, the values of naval stores f e l l when staves were increasing in value or at worst decreasing slightly from values higher than those at the beginning of the period.

CHAPTER

VI

PRICES OF PIG A N D

BAR

IRON

T h e Colonial iron industry, which ultimately became most important in the Philadelphia area, has been the subject of many investigations. 1 O u r study is primarily concerned with adding a more consecutive account of prices of pig and bar iron than was previously available. O u r attempt has been to list the prices of these commodities in the Philadelphia market. In this it has been necessary to avoid the records of the forges and furnaces, which listed what today would be called "f.o.b. prices." For the period before 1767 only scattered records from merchants' accounts and comments are available. T h e increasing demands for Colonial iron from British manufacturers, the removal of duties on pig and bar iron imported into England from the colonies, and the "enumeration" of iron in 1764 give indirect evidence of the growth of the industry in the colonies. T h e records of the exports from Pennsylvania and other colonies to Great Britain give more tangible evidence of the development of the iron industry in America. T h e quoting of prices of bar and pig iron in the prices current published in the newspapers from 1767 to 1 7 7 5 is a recognition of the importance of these commodities in our trade. As early as 1726 Pennsylvania exported some pig iron. Bar iron entered somewhat later into trade, the first recorded exports being in 1734. T h e interest in the iron trade centers around the fact that, while bar iron was imported only at the beginning, products of iron were brought in throughout the entire period. T o this extent the trade is typical of what the commercial policy of that day favored, namely, the procuring of raw materials from colonies and the exporting of finished goods to colonies. 1 In articles and books Professor Arthur Cecil Bining has given the location and history of the early manufacture of iron and its importance in the trade and economy of Pennsylvania.

154

PIG AND BAR

IRON

155

In 1728 and 1 7 2 9 pig iron sold in Philadelphia for between £ 1 0 and £ 1 1 a ton. By 1 7 3 9 the price had fallen to £7 10s. During the next two years the usual price was £ 7 , but early in 1 7 4 2 it dropped to £6 1 OS. Bar iron sold for £ 3 1 in 1 7 3 6 , for £ 3 0 in 1 7 3 8 and 1 7 3 9 , and for £27 10s. to £ 3 0 in 1 7 4 0 and 1 7 4 1 . It was about this time that a Philadelphia merchant wrote to England asking for lower prices of ironware and expressing the belief that supplies of pig and bar iron could be secured from the colonies. His own words were, " I wish thou could afford ironware lower, but if it cannot be we must be content. If the prohibition of Spanish iron be the reason, that might be remedied from this place, Maryand, and Virginia; for I dare say England might be supplied from those places with all they can make use of in a little time if they would encourage it." 2 A few years later, after both bar and pig iron had declined still further in price, the same merchant wrote again, " B a r iron as good as the world yields is sold at £ 1 8 and £ 1 9 per ton here. I wish we could have encouragement to ship it to you. If we can't I expect shortly we shall have slitting mills and go to making nails which will of course lessen if not lay aside the great call for nails from you. I admire you don't see the advantage you would have by encouraging the taking our bar iron instead of Swedish as they are paid chiefly in cash and we want nothing for it but goods." 3 The lowest prices of the Colonial years appear around January 1 7 4 7 when pig iron sold for £5 and bar iron for £ 19. This marks the end of the downward slope which had dominated the variations in prices for at least a decade. In the following summer a merchant suggested sending pig iron to London since the exchange rates were high and since he could get pig iron "at £6 10s. per ton for goods and at £6 half money half goods and I believe I could get it at £5 10s. for cash." 4 This indicates what our figures establish, namely, that quotations of iron had already started upward on the swing in prices which lasted until the middle of the 1750's. In this movement bar iron appears to have advanced more 2

October 8, i 740, Samuel Powel, J r . to Thomas Plumsted, London. December 10, 1 7 4 5 , Samuel Powel, J r . to Thomas Plumsted, London. ' J u l y 14, 1 7 4 7 , John Swift to his uncle, John White, London. 3

156

PRICES

IN COLONIAL

PENNSYLVANIA

quickly than pig iron and reached a peak of £28 in 1748 and 1749. A t that time pig iron was selling for but slightly more than £6. A f t e r 1749 the price of bar iron tended to decline, but pig iron advanced further in price, selling for as much as £7 10s. at the close of 1753 and even at the beginning of 1757. D u r i n g these years, in which some of the restrictions on the Colonial iron trade were removed, there was a considerable increase in the exports to England and especially to London. T h e detailed record of imports of iron into England from Pennsylvania in 1746 shows that the bulk of the trade was to London. Out of 103 tons of pig iron imported, 93 tons were landed at London. T h e trade in bar iron was small in that year, amounting to less than three and a half tons, all of which entered England through London. 5 A t this time there was a duty on all iron from the colonies. T h e act of 1750 removed the low duty of 3 shillings 9^/2 pence a ton which had been placed in 1724 on pig iron shipped to Great Britain 6 from the colonies. Bar iron carried in British vessels was also relieved of the high duty of £2 is. 6d. if landed directly in the port of London, though a duty was retained upon Colonial bar iron sent to other British ports.® T h e amount of bar iron shipped from Philadelphia to Great Britain was more than 64 tons in 1752, 7 more than 147 tons in 1753, and more than 110 tons in 1754, considerable quantities in terms of previous trade. In 1755, when there must have been local need for iron in the military expendition of Braddock, the shipment was lower but reached 79 tons. T h e exports of pig iron increased substantially, especially in 1750 and in 1754 and 1755. Writers will probably disagree on the effect of the preferential treatment which Colonial bar iron had in the port of London from 1750 to 1757. It is important in any conclusion to take into account the fact that from 1749 to 1756 the prices of bar iron tended to decline in the Philadelphia market. From this fact one might argue that there was not a vigorous enough demand from London to check the decline in prices of bar iron. T h e downswing in the prices of bar iron which had started in * Original transcript of Customs III, Vol. 46 (Christmas 1745 to Christmas 1 7 4 6 ) from Public Record Office, London. * Bining, Arthur Cecil, British Regulation of the Colonial Iron Industry, 1933, p. 83. ' T h e total exports of bar iron from Philadelphia in 1752 were 253.2 tons.

PIG AND BAR

IRON

157

1 7 4 9 e n d e d in 1 7 5 6 a f t e r bar iron sold f o r £21 in A u g u s t . P i g iron, which had a p p a r e n t l y sustained its price a f t e r c o m p l e t i n g its advance in 1 7 5 3 , declined in 1 7 5 7 until it sold for £6 15s. in D e c e m b e r . A more e x t r e m e s w i n g in prices than that of 1 7 4 6 to 1 7 5 6 - 1 7 5 7 occurred f r o m about 1 7 5 7 to 1 7 6 4 . T h e prices of bar iron continued to m o v e s l i g h t l y in advance of those of p i g iron. A s early as D e c e m b e r 1 7 6 0 bar iron sold f o r £35 a ton and h e l d near this l e v e l until the close of 1 7 6 2 . It was in D e c e m b e r of that y e a r that p i g iron sold f o r £ 1 3 a ton, n e a r l y twice as much as it h a d five years b e f o r e . I n PERCENT

160 140

PERCENT

160

— BAR IRON — PIG IRON

\

120

1f

1

. R—

U

rw

1 ir

URO

140

M—

V K

100 V 80 60

1763

1764

1765

1766

1767

CHART X V I — M O N T H L Y

I7M

176*

1770

1771

1772

1773

1774

1775

120 100 80 60

R E L A T I V E S OF W H O L E S A L E P R I C E S OF I R O N

IN P H I L A D E L P H I A ,

1767-1775

( B a s e — M o n t h l y Average, 1 7 4 1 - 1 7 4 5 )

1 7 6 3 prices of both kinds of iron declined. T h e reduction in the price of bar iron appears to h a v e been checked at £24 in S e p t e m b e r , but p i g iron continued to decline in 1 7 6 4 also, d r o p p i n g as l o w as £7 in D e c e m b e r . D u r i n g most of this eight-year period, which covers

approxi-

m a t e l y the duration of the F r e n c h and Indian W a r , the C o l o n i a l iron trade h a d its greatest f r e e d o m . In 1 7 5 7 the d u t y on imports of bar iron into the " o u t p o r t s " was r e m o v e d . P i g and bar iron c o u l d , t h e r e f o r e , be shipped to any port of G r e a t Britain free of d u t y . It was not until 1 7 6 4 that iron was made an " e n u m e r a t e d " c o m m o d i t y a n d its shipment d i r e c t l y to any port in E u r o p e outside of G r e a t Britain prohibited.

158

PRICES

IN COLONIAL

PENNSYLVANIA

From 1763 to 1770 there was a mild swing in the prices of bar iron. By January 1765 its price had risen from £24 to £ 2 7 — a n advance of £3 a ton in sixteen months. T h e long decline which followed reduced the price again to £24 by February 1767 and even to £23 in the last quarter of 1768 and for most of the next two years. P i g iron, as usual, had a greater swing in prices. T h e first five months of newspaper quotations in 1767 listed pig iron at £9 10s. in comparison with £7 charged by merchants at the end of 1764. By February 1768 the price had been reduced by £2 a ton, and after rallying slightly during 1768, dropped to £7 10s. in 1769 and again in 1770. Professor Bining, in commenting upon this period writes: S o m e ironmasters, like W i l l i a m A l l e n , w e n t so f a r as to state that the depression in the A m e r i c a n iron industry d u r i n g 1 7 6 8 and the years that f o l l o w e d w a s due almost entirely to the e n u m e r a t i o n of iron. T h i s w a s not t r u e , since only small a m o u n t s of iron had been sent t o continental E u r o p e prior to the passage of the a c t . T h e depression w a s due chiefly to the e f f e c t s of too rapid expansion in the colonial iron industry. A l l e n and other ironmasters c o m p l a i n e d about the e n u m e r a t i o n of iron because they hoped that their complaints w o u l d result in the passage of legislation by P a r l i a m e n t , g r a n t i n g l a r g e bounties on A m e r i c a n p i g iron and bar iron sent t o E n g l a n d . 8

T h e low prices of these years should not be connected with the iron industry exclusively since agriculture and trade in general were also depressed. Conditions in England also affected prices adversely. In December 1768 an order from Rhode Island for 10 tons of Durham iron could not be filled immediately because "almost all that comes to this market [is] bought up by the merchants to ship to London." 9 T h e fact that Philadelphia merchants anticipated good prices in England is also indicated by a comment of Clifford at practically the same time. H e wrote, " I have bespoke some bar iron agreeable to thy hint in case I send a vessel in the spring." 10 Before the close " B i n i n g , A . C . , of. ch., p. 7 7 , n. 56. " D e c e m b e r 5, 1 7 6 8 , H o l l i n g s w o r t h and R u d u l p h to N a t h a n i e l Greene and C o . , W a r w i c k , R h o d e Island. 10 D e c e m b e r 6, 1 7 6 8 , T h o m a s C l i f f o r d to L a n c e l o t C o w p e r , Bristol, E n g l a n d .

PIG AND BAR

IRON

159

of February 1 7 6 9 , Philadelphia merchants learned that prices in Great Britain would not be as favorable as they had expected. " T h y accounts of markets," wrote Clifford, "are no ways encouraging and yet a voyage to your port comes first under consideration. H . Kepple is very pressing with me to take in his iron, about 60 tons of which is of the very best quality." 1 1 T h e British situation probably contributed to the unusual supply in Philadelphia in the spring of 1 7 6 9 which called forth the comment that "the quantities of pig and bar iron that might be had on freight to your port [Bristol] are so large at this time that I think five ships might be loaded immediately if we could find goods to compose the other parts of the cargo." 1 2 Since price is concerned both with quality and availability of markets, it is important to note the pains taken at this time to satisfy the demand of the British consumers and the means of testing the quality of output at a new working. " T h e iron I shipped to L o n d o n , " Clifford wrote, "is all arrived. . . . Mildred and Roberts say samples are out on trial . . . they have taken great pains before they sell in order to establish its character as a new furnace." 1 3 On the part of the same iron which he shipped to Bristol and landed at Swansea by reason of a storm, he reported, " M y friend says on trial some of the workmen speak well of it and say it will answer their purpose." 1 3 T h e lack of metallurgical tests of the quality of ores and the complaints that arose from the uneven quality of iron even from an old and well-established forge is illustrated at this time of dull trade and the need for markets by the explanation to a Bristol merchant. " A m concerned to find Pine Grove 1 4 pigs depreciating in value, but I had an item beforehand of a quantity of bar proving bad which for want of other they were obliged to use up near the conclusion of blast; it made as they tell me about 3 0 or 40 tons pigs. T h e y dug no more from that pit after they discovered its quality, and they assure me all they have run this new blast is as good or preferable to any they have heretofore made. A forge lately erected near the works are 11

February 28, 1 7 6 9 , T h o m a s C l i f f o r d to Lancelot C o w p e r , Bristol, E n g l a n d . A p r i l 8, 1 7 6 9 , T h o m a s C l i f f o r d to Lancelot C o w p e r , Bristol, E n g l a n d . 13 February 24, 1 7 6 8 , T h o m a s C l i f f o r d to T h o m a s and William L i g h t f o o t , M a r y l a n d . " Pine Grove Furnace on Nanticoke R i v e r in M a r y l a n d . 12

160

PRICES

IN COLONIAL

PENNSYLVANIA

supplied with their pig metal of which I am told they make excellent bar iron." 15 In 1 7 7 1 and 1772 prices of iron tended to advance. By November 1771 one merchant said, " I r o n is so scarce I would not make terms of consignment, being glad to have it." 1 8 B y the following April iron was "not to be had." 1 7 Less than a month later, when pig iron continued to be quoted at the price of £8 which had appeared continuously from September 1770, and when bar iron had advanced to £26 ios., the same merchant wrote, " B a r iron is at too high a price and there is no pigs to be had on freight." 1 8 T h e reason for this scarcity of iron was somewhat explained in other letters written in the fall of 1772. T h e conditions of the period can best be appreciated by recalling the close connection between agriculture and iron production through the institution of "iron plantations." M a n y of the "iron plantations," as they were sometimes called, consisted of several thousand acres of land, and can be compared in many respects with the Virginia tobacco plantations. T h e mansion house, the homes of the workers, the furnace and forge or forges, the iron mines, the charcoal house, the dense woods which furnished the material for making charcoal, the office, the general store where supplies of all kinds could be obtained, the gristmill, the sawmill, the blacksmith shop, the common bake oven, the barns, the grain fields, the orchards, were part of a very interesting and almost self-sufficing community. Pig iron, bar iron, and castings were hauled from the furnaces and forges in heavy open wagons over tortuous roads to the main highways and thence to the boroughs, towns, or to the capital city, Philadelphia. T h e close connection between iron making and agriculture during the early period contrasts very strangely with the industrial organization of the present day. 1 9

W i t h the industry organized in such a manner, it is easy to imagine that, with the profitableness of agriculture in 1772, the iron workers might be drawn from the extraction of iron ore and furnaces closed September 20, 1768, T h o m a s Clifford to Lancelot Cowper, Bristol, England. " N o v e m b e r 16, 1 7 7 1 , T h o m a s C l i f f o r d to T h o m a s Frank, Bristol, England. " A p r i l 30, 1 7 7 2 , T h o m a s C l i f f o r d to T h o m a s Frank, Bristol, England. " M a y 16, 1 7 7 2 , T h o m a s Clifford to T h o m a s Frank, Bristol, England. " Bining, A . C., of. cit., p. 19.

11

PIG AND BAR

IRON

161

down, as is described in a letter of Clifford: "Several of our principal furnaces are out of ore and but few of them have been in blast lately so that pig iron is become quite scarce and bar iron is risen to £28 per ton." 20 T h e high prices of farm produce could even influence the owners of the iron plantations to extend the cultivation of their lands in preference to operating their furnaces. Such conditions were described by Clifford in another letter: " S o many of the iron works being out of blast or turned into farms makes iron continue exceeding scarce and much advanced in price; that part of our exports to Europe [ I ] believe will drop." 2 1 Weather conditions, which might seem to be important only in the discussion of prices of agricultural produce, did affect the operation of forges dependent upon water power. T h e dry summer of 1 7 7 3 , which harmed the corn crops and kept grist mills from grinding flour, was also a factor influencing the supply of bar iron. In August, Collins wrote, " I r o n is now very scarce and dear on account of a scarcity of water, having had a very great drought this summer." 2 2 T h e price of £28 for bar iron, which was the maximum in the decade before the Revolution, was quoted from J u n e to November 1 7 7 2 , in January 1 7 7 3 , and even in February 1 7 7 4 , although the tendency had been downward for about a year after January 1 7 7 3 . T h e highest price of pig iron in 1 7 7 2 was £8 10s., which was quoted in the last quarter of that year and during most of the next two years and a quarter. In 1 7 7 5 bar iron sold for £ 2 2 10s. before the close of the year and pig iron dropped to an average of about £7. T h e movements in prices in the early 1 7 5 0 ' s are of especial significance since in those years pig iron advanced and in relation to its average price from 1 7 4 1 to 1 7 4 5 maintained, from the early fifties to the end of the period, a relatively higher price than bar iron. There is no evidence that in the twenty-five years before the Revoltion pig iron ever sold for as low a price as it averaged in the base period 1 7 4 1 - 1 7 4 5 . Instead, especially in the rise from 1 7 6 2 to 1 7 6 3 , its prices moved to a definitely higher level. 20

September 22, 1 7 7 2 , T h o m a s C l i f f o r d to T h o m a s F r a n k , Bristol, E n g l a n d . " O c t o b e r 2 1 , 1 7 7 2 , T h o m a s C l i f f o r d to T h o m a s F r a n k , Bristol, E n g l a n d . a August 1 3 , 1 7 7 3 , Stephen Collins to Samuel E l a m , Leeds, E n g l a n d .

162

PRICES

IN COLONIAL

PENNSYLVANIA

Bar iron, in contrast, continued to fluctuate around the average of 1 7 4 1 to 1 7 4 5 . T h e swings away from this horizontal trend lowered the price of bar iron in 1 7 5 5 and 1 7 5 6 to the lowest level of the Colonial years except for December 1746 and January 1 7 4 7 , and then carried it upwards during the Seven Years' War to an extremely high level. T h e downward slope which lasted for about a decade from the early sixties did not lower bar iron to the level of the 1750's. The level from 1 7 6 7 to 1 7 7 1 was considered low and the severity of this depression was increased by the duration of the low prices. Percentage changes in price which would cause little concern in some commodities affected the trade in pig iron considerably. T h e rise in prices in 1 7 7 2 , which appeared to be mild in contrast to fluctuations in the price of wheat, interfered with the trade in bar iron. In the three years preceding the Revolution there was a tendency for bar iron especially to recede to the levels of 1769 and 1770.

CHAPTER PRICES OF

VII SUGAR

O n e of the main trade routes f r o m P h i l a d e l p h i a was to the W e s t Indies. E x p o r t s to the Islands of grains and grain products, staves, lumber, and other staples of P e n n s y l v a n i a account f o r 38 per cent of the outgoing vessels f r o m the port f r o m the m i d d l e thirties to 1760. T h i s figure includes only those vessels that cleared directly for ports in the W e s t Indies without stopping at mainland ports. N o t only w e r e the Islands and especially the British W e s t Indies important markets f o r P e n n s y l v a n i a produce, but t h e y w e r e also the chief source of supply for sugar, molasses, and r u m . O t h e r minor products such as cotton, indigo, pimento, and g i n g e r w e r e also imported f r o m them. T h e total of this trade accounted f o r 31 per cent of the vessels entering the port of P h i l a d e l p h i a . T h e comparison of the prices of the commodities imported f r o m the Islands adds to the contrast between the m o v e m e n t of prices of commodities produced in P e n n s y l v a n i a and those f r o m other areas. T h i s study gives only part of w h a t w o u l d be n e e d e d f o r a complete analysis of the advantages of the trade with the W e s t Indies. F o r e x a m p l e , we k n o w the prices at which flour and sugar sold in the P h i l a d e l p h i a market. W h a t is missing are the data as to the ratio at which the same products were exchanged in the various islands. I n discussing the prices at which W e s t India products sold in the P h i l a d e l p h i a market, some attention must also be g i v e n to loaf sugar, w h e t h e r refined in L o n d o n or P e n n s y l v a n i a f r o m the imported raw material, and to N e w E n g l a n d r u m and local r u m distilled f r o m molasses and sold in competition with W e s t India r u m . MUSCOVADO SUGAR W h e n our record starts molasses, sugar, and r u m , like most other series, were receding in price f r o m the h i g h e r l e v e l s which they had h e l d before widespread economic disturbance had started with 163

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the collapse of the South Sea Company and other speculative schemes of this era. Of these commodities sugar was the least standardized and consequently had the widest range in price. The best grade of muscovado or unrefined sugar often sold for a third more than the poorer grade at the same time. Since the market was not always supplied with all grades, and since in times of scarcity little attention was paid to grading, we have been forced to use an average of the range as a price. Muscovado sugar sold for as little as 30 shillings a hundredweight of 1 1 2 pounds from November 1 7 2 1 to August 1 7 2 2 . B y November 1 7 2 2 it had advanced to 37 shillings 6 pence and after holding this price as late as August 1 7 2 3 declined until M a y 1 7 2 4 , when it dipped for one month to 23 shillings. By June, muscovado sugar was again quoted at 30 shillings and kept at that price for thirteen months or through June 1 7 2 5 . After this unusually long period of stable prices, muscovado sugar advanced 1 0 shillings in eleven months to 40 shillings, the highest price at which it was quoted in the decade of the twenties. Although there was a recession at the close of 1726, the amount of the decline was limited to a loss of 8 shillings, all of which took place within four months. There followed a stretch of about eleven months when prices of muscovado sugar were at 32 shillings at all times when a monthly quotation was available. In the last two months of 1 7 2 7 prices of sugar advanced and held at a level of 35 shillings until November and December 1728 and, with some fluctuations, even in 1729. Considering the fact that all home products were very depressed and trade disturbed in the closing years of the twenties, the way in which sugar prices were maintained in 1728 and 1729 deserves mention. There was a decline in the prices of muscovado sugar in 1 7 3 0 , but prices were back at 35 shillings in the last quarter of that year and were as high as 36 shillings between June and August 1 7 3 1 . Though in October 1 7 3 1 the price of sugar dipped to an unusually low level, the range of the average in the other months from September 1 7 3 1 to M a y 1 7 3 3 was from 30 to 35 shillings a hundredweight. The contraction in prices of muscovado sugar from 35 shillings in February 1 7 3 3 to 24 shillings in October and November was by far

SUGAR

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the most significant drop in prices of sugar after that of 1723 to 1724. A detailed account of the course of sugar prices in the years from 1725 to 1733 in the Philadelphia area, which was a growing market for W e s t India produce, and the degree of uniformity that these prices show are of general interest because of the claim that even by 1725 the French islands of Martinque and Hispaniola and even the Dutch territory of Surinam were supplying sugar in considerable quantities to the European market. 1 B y 1731 it was asserted "that the quantity of sugar now made in America . . . [is] greater than Europe can consume." 2 T h e dispute which began in 1731 about the trade of the continental colonists with the French, Dutch, and Danish islands and went on until 1 7 3 3 / brought out a conflict of interests on the part of Philadelphia merchants in this trade and led to a protest from the Pennsylvania Assembly to the House of C o m mons against the passing of an act restraining the trade with the foreign plantations 4 on the ground that such a policy would impoverish the colony and lessen the importation of British products. 5 Between N o v e m b e r 1733 and A p r i l 1 7 3 7 there was a complete swing in the price of muscovado sugar. T h e period of rising prices lasted till M a y 1 7 3 5 and brought an increase of 66.7 per cent or an advance from 24 shillings to 40 shillings. A t this time "sugar was scarce and dear" 6 in Philadelphia. T h e importance of the level from which this price rise started is that sugar prices were never again as l o w in the Philadelphia market as they were in the depressed months of 1733. In fact, in the rise of 1 7 3 4 and 1735 a normally higher level was established for sugar prices. Part of the rise in prices of W e s t India products which occurred in 1 7 3 4 was the result of the lack of advantage in shipping Pennsylvania produce to the W e s t Indies, since in M a y it was known that "provisions are not like to do anything in Barbados," 7 and, in November, flour, bread, A n d e r s o n , Origin of Commerce, revised by M r . C o o m b e , V o l . I l l , p. 384. ' A n d e r s o n , of. cit., V o l . I l l , p. 4 3 4 . ' A n d e r s o n , of. cit., V o l . I l l , p. 4 5 6 . ' A n d e r s o n , of. cit., V o l . I l l , p. 4 5 7 . T h e duties imposed at this time w e r e : j shillings per h u n d r e d w e i g h t on s u g a r , 6 pence per g a l l o n on molasses, and 9 pence sterling upon e v e r y g a l l o n o f r u m f r o m the f o r e i g n s u g a r colonies, except the g r o w t h o f the dominions o f Spain and P o r t u g a l . 5Colonial Records, V o l . I l l , D e c e m b e r 4, 1 7 3 1 , p. 424. " A p r i l 2 1 , 1 7 3 j , S a m u e l P o w e l , J r . to K n i g h t and F a i r c h i l d , Barbados. 7 M a y 28, 1 7 3 4 , S a m u e l P o w e l , J r . to T h o m a s H y a m , L o n d o n . 1

166

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C H A R T X V I I — M O N T H L Y RELATIVES OF WHOLESALE

(Base—Monthly

SUGAR

167 PER CENT

PRICES OF SUGAR IN PHILADELPHIA, Average,

1741-1745)

I720-1775

168

PRICES IN COLONIAL

PENNSYLVANIA

C H A R T X V I I — M O N T H L Y R E L A T I V E S OF W H O L E S A L E PRICES

(Base—Monthly

169

SUGAR

PER C E N T 220

200 180

»A

A 1

\

J1 M Mi

I f\,

JV 1

160

IVAF AV A U W V

W

u

J

140 120 100 80 60 40 220 200 160 160 140 120

w 1\

I

1761

1762

1763

1764

1765

1766

OF S U G A R I N P H I L A D E L P H I A ,

Average,

100

1741-1745)

80 60 1767

1768

1720-1775,

1769

1770

Concluded

1771

1772

1773

1774

1775

40

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PRICES IN COLONIAL

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corn, and wheat were still "high here and low at Barbados." 8 More advantageous markets were found elsewhere and upwards of 50,000 bushels of wheat were shipped to them—"which will much lessen the usual quantity of provisions to the Islands and I think it must of course bear a good price there."® It was to the same conditions of trade that the rise in sugar prices in the first part of 1 7 3 5 must be attributed since in April of that year we learn that "the quantity [ o f ] provisions sent hence to the Islands of late . . . [was] vastly less than usual." 1 0 In fact, the number of clearances from the port of Philadelphia in that year directly to the Islands was lower than in any other year between 1 7 3 4 and 1740. The decline in the number of vessels trading to the Islands affected the number of entrances also. Although in 1 7 3 4 there had been 1 7 vessels which entered at Philadelphia directly from Jamaica, there were only 10 in 1 7 3 5 and 6 in 1 7 3 6 . There was less difference in the annual number from Barbados, but the total from the British West Indies was 12.5 per cent lower in 1 7 3 5 than in 1734. Doubtless in 1 7 3 5 prices of sugar would have gone higher in Philadelphia if its stores had not been eked out from other areas. The way in which a supply of sugar reached Philadelphia in 1 7 3 5 illustrates well the dependence of one colony upon the supplies of another. Powel wrote, "When any commodity is scarce with us we are very often supplied from New York or New England before you [London] can know our wants. . . . Pepper has been lately brought over land from New York and sugar by sea from New England, and as this is often the case, I think it seldom proves worth while to buy dear to supply a scarce market at a great distance." 11 Once the rise was broken by the New England supplies, others came from London. The price of muscovado sugar declined irregularly for twenty-three months or until April 1 7 3 7 , when it was quoted at 28 shillings 6 pence. After that date it rose steeply to 50 shillings by March 1738, being quoted higher in each succeeding month. At this time, the colonists were trading actively because of advan" November 12, 1734, Samuel Powel, Jr. to Thomas Hyam, London. "December 16, 1734, Samuel Powel, J r . to Thomas Hyam, London. 10 April 2 1 , 1735, Samuel Powel, J r . to Thomas Hyam, London. " J u n e 2, 1735, Samuel Powel, J r . to Benjamin Bell, London.

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tageous prices for their own staples. Powel informed his London house, " B y all our late advices from Jamaica, provisions are like to bear a good price there which hath induced me to ship." 1 2 T h e rise of sugar prices between 1 7 3 7 and 1 7 3 8 was the steepest advance which had occurred up to this time and the peak of prices was equal to the high of four years later during the war with Spain, but in 1 7 3 8 prices dropped 3 2 . 0 per cent within three months or to a level of 3 4 shillings. F r o m then until September 1 7 3 9 , when the colonists learned of the imminence of war in Europe, sugar continued to be quoted at 3 5 to 38 shillings a hundredweight. Prices of sugar advanced in the Philadelphia market in 1 7 3 9 even before Great Britain had declared war upon Spain. Muscovado sugar rose from an average of 36 shillings a hundredweight in August to 40 shillings in September in anticipation of war. A merchant commented, " T h e accounts we have of the situation of affairs in Europe have already struck a great damp in our trade. Most imported goods are raised in price, though little is sold, and our country produce is like to be in little demand, and should the French join Spain, as we apprehend from all the advices yet come, they will, the consequence must be very prejudicial to our trade." 1 3 N o particular difficulty seems to have arisen in procuring sugar during the early years of the war with Spain. A f t e r the first flurry in sugar prices which was over by February 1 7 4 0 , there was only one month between March 1 7 4 0 and J u l y 1 7 4 2 when Philadelphians paid as much as 40 shillings a hundredweight for sugar and usually it sold at prices between 35 and 38 shillings. I n the latter part of 1 7 4 2 and the first part of 1 7 4 3 there was a short swing in the price of muscovado sugar in which it advanced from 3 5 shillings, at which it had sold during the first half of the year, to 50 shillings in September. T h e decline which followed lowered the price to 3 2 shillings 9 pence in J u n e 1 7 4 3 . T h e story of muscovado sugar prices in Philadelphia in the remaining war years of the forties is told by two pronounced cyclical swings: the one comprising twenty-four months, the other fortysix. T h e first of these periods is marked by a rise in the monthly M March 17 1 7 3 7 , Samuel Powel, J r . to Benjamin Bell, London. "September 26, 1 7 3 9 , Samuel Powel, J r . to Thomas Hyam, London.

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relative of sugar from 78.2 in June 1743 to 137.4 in J u l y 1744, and a steep decline to 95.6 in June 1745. The rise of prices in the last half of 1 7 4 3 reflects the scarcity of sugar, both muscovado and refined, in the city." The further rise which carried prices to 57 shillings 6 pence by J u l y 1 7 4 4 was the result both of scarcity and the entry of France into the war, which, because of the slowness of news, the Philadelphia merchants still regarded as problematical toward the end of April 1744. In that month Powel wrote, " W e daily expect to hear of a French war." 1 5 When it was certain that war had been declared, merchants were in no haste to sell what sugar they had on hand. A month later this merchant wrote, " A s we have a certain account of a French war we are determined to keep our own and I choose also to keep thine [sugar and rum] a little while in hopes the price may mend, though the call is much less than usual other years." 1 6 Prices of sugar did go higher, but they broke in August. The decline after the high of J u l y 1744 was explained by Samuel Powel: "Sugars were low, occasioned by the sale of French prize sugars." 17 Later in this year he wrote, " I cannot make any judgment how the price of rum and sugar may be in the spring as it will depend pretty much on the plenty or scarcity of prize goods which we have had a good deal of directly here and some from New York." 1 8 T h e price of muscovado sugar continued to decline until it was 40 shillings a hundredweight by June 1745. The second fluctuation in sugar prices after France entered this war was marked by two years of rising prices from June 1 7 4 5 to June 1 7 4 7 in which they advanced from 40 shillings to 58 shillings 9 pence. There was, in fact, no good reason for the cheapness of sugar in Philadelphia in June 1745, for the more shrewd dealers were aware by M a y that "sugars begin to be called for as our people don't like the French sugars so well as yours [Barbados]." 1 9 By June 40 and J u l y it was scarce in the city and higher prices were exI

14 November 7, 1743, Samuel Powel, Jr. to Thomas Hothersall, Barbados; November St '743> t o Benjamin and William Bell, London. 11 April 18, 1744, Samuel Powel, Jr. to David Barclay and Son, London. " M a y 25, 1744, Samuel Powel, Jr. to Thomas Hothersall, Barbados. " A u g u s t 25, 1744, Samuel Powel, Jr. to Thomas Hothersall, Barbados. "October 16, 1744, Samuel Powel, Jr. to Thomas Hothersall, Barbados. " May 7, 1 745, Samuel Powel, Jr. to Thomas Hothersall, Barbados. " J u n e 18 and June 21, 1745, Samuel Powel, Jr. to Thomas Hothersall, Barbados.

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pected "if a supply does not come very soon" 21 and in the closing months of 1 7 4 5 sugar was much in demand. 22 Complaints of the scarcity of muscovado sugar continued to be made throughout 1746 and 1 7 4 7 , but prices were not at the highest levels of this period until June and December 1 7 4 7 . Although prices were lower in the first months of 1748 than they had been in December of the previous year, the first marked decline came in June when three prize vessels loaded with sugar, coffee, cotton, and cocoa were brought in for sale. 23 Then a downward tendency began which lasted until, in April 1 7 4 9 , sugar sold for 4 1 shillings 6 pence. T h e two peaks made during the years of these wars with Spain and France, the highest in the first twenty-nine years of our record, were exceeded by the two equal peaks in Decembr 1 7 4 9 and January 1 7 5 0 and again in December 1 7 5 2 and January 1 7 5 3 , when sugar prices were 43.4 per cent above the average of the years 1 7 4 1 to 1 7 4 5 . B y contrast, sugar sold low enough in 1 7 4 9 and 1 7 5 2 to be considered " a very great drug." 2 4 T h e peaks, especially that of 1 7 5 2 , arose from temporary scarcity. Thomas Wharton explained that he "sold within this week, for 52 shillings 6 pence, such [sugar] as would not a month ago fetch above 45 shillings." 28 T h e peak prices lasted only a short time, but the years from 7 5 3 t o 1 1 5 8 were notable for the maintenance over an unusually long period of a high level of sugar prices with quite minor fluctuations. During all these years and throughout the early sixties there was continuous comment about the "extravagant prices" of sugar. 2 " T h e merchants could not foresee that, after the low of 1 7 4 9 , even in extreme dips, sugar would not again drop below 42 shillings except in 1 7 5 8 and again in 1 7 5 9 . T h e controversy in the early fifties over the trade to the French islands, though related to the importation of sugar and still more to that of molasses, will be discussed on page 199 f. Our concern here is x

11

J u l y 1 5 , 1 7 4 5 , Samuel Powel, J r . to Henry Slingsbv, Barbados. October 7, 1 7 4 5 , Samuel Powel, J r . to T h o m a s Hothersall, B a r b a d o s ; December 30, 1 7 4 1 , to Henry Slingsbv, Barbados. J u n e 1 0 , 1 7 4 8 , John S w i f t to his uncle, John White, London. " J u n e 1 7 , 1 7 5 2 , Joseph Richardson to William D o r r i l l , J a m a i c a . December 1 , 1 7 5 2 , T h o m a s Wharton to James Beckham, Lancaster, Pennsylvania. November 1 4 , 1 7 5 4 , T h o m a s Wharton to James Beckham, Lancaster, Pennsylvania.

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with a statement of the prices being paid in the Philadelphia market and the more direct comments about the supplies of sugar in the city. W h i l e there were variations in the charges made within each year, the annual averages in the eight years from 1751 to 1758 inclusive were within a range of 47 shillings to 51 shillings 8 pence. T h e highest annual average occurred in 1753, but a long stretch of high monthly prices appeared in 1754 when sugar of the "best sort" could not be bought" and when dealers were so pressed to satisfy their customers " u p country" that we find such explanations as " I yesterday spent an hour or two in searching for a barrel of good [sugar] for thee, but could not find any that I thought would do." 28 B y July, Wharton had come to the conclusion that there was no prospect of sugar "lowering this year." 2 * Even in November of this year he was writing: " N o n e of the best to be bought under an extravagant price. Some ask 65 shillings per hundredweight—have some at 52 shillings 6 pence in tierces of about four hundredweight each which [ I ] judge is as cheap as most to be bought, though I am satisfied [ I ] have sold better for [the] same money." 30 T h e average prices of 1755 and 1756 were less than 5 per cent below that of 1754. T h e firmness of quotations adds credibility to the statement that there were " v e r y few vessels lately from the W e s t Indies," 31 a situation which must have been equally true in 1757 and 1758 owing to embargoes for a number of months in each year from 1756 to 1759. T h e number of vessels entered at the Customs House in Philadelphia from the British West Indies in the three years from 1756 to 1758 averaged 118 in contrast to the average of 144 which had arrived each year from 1752 to 1755 inclusive and to the 188 which came directly from Island ports in 1759. T h e war activities of these years and the attempt "to prohibit the exportation of the corn, grain, meal, malt, flour, beef, pork, bacon, etc., from America, unless to Great Britain and Ireland" 3 2 in order to remedy the dearth of corn and other provisions there were " A p r i l 9, 1 7 5 4 , T h o m a s W h a r t o n t o Samuel T u c k e r , T r e n t o n , N e w Jersey. " A p r i l 10, 1 7 5 4 , T h o m a s W h a r t o n to L o d o w i g L a u m a n n . " J u l y 1 1 , 1 7 5 4 , T h o m a s W h a r t o n to James B e c k h a m , Lancaster, P e n n s y l v a n i a . " N o v e m b e r 1 4 , 1 7 5 4 , T h o m a s W h a r t o n to James B e c k h a m , Lancaster, P e n n s y l v a n i a , " J u n e 1 7 , 1 7 5 6 , T h o m a s W h a r t o n to E d w a r d M i t c h e l l . " A n d e r s o n , of. cit., V o l . I l l , p . J96.

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doubtless the primary causes of the lack of "choice sugars" in Philadelphia. Our trade with the Islands was limited. Toward the close of 1 7 5 9 Clifford wrote, " O u r trade is turned into a new channel of late and so little of our produce sent to the English islands that I expect to hear of better markets there than we have had for some time." 33 T h e prices of muscovado sugar dipped in September 1 7 5 8 , but appear to have advanced in December of that year and the first month of the next. B y June 1 7 5 9 , Baynton was preparing for good sales of muscovado sugar, especially the common grade, since "the quarter part of what was on hand here is shipping for London." 3 4 Sugar sold as low as 35 shillings in October 1 7 5 9 , but its more usual price was 45 shillings or more. This is the year in which " b y reason of a better crop of corn" the prohibition of the export of food-stuffs except to Great Britain and "the payment of any bounty on exportation thereof, was to cease from and after L a d y Day, 1 7 5 9 . " " Interest in trade to the West Indies was renewed. Though prices rose at the end of 1 7 5 9 , sugar was considered " v e r y plenty and l o w " then and in the opening months of the following year. 38 T h e tendency soon changed. T h e conflicts in the Islands 37 made Philadelphia owners of vessels cast about with disappointing results for the best markets to exchange products. Clifford changed his mind after negotiating for information with the comment, " W h e n I came to read thy price current [ I ] found it very contrary to my expectations. I had some thought of sending my brig to Antigua b u t . . . at present decline it." 38 Sugar prices advanced in 1 7 6 0 and went higher in each of the following years until about the middle of 1 7 6 3 . In M a y 1 7 6 1 a brig "arrived and brought a fine parcel of sugar to a high market." 39 All through this time merchants watched closely for chances to expand trade but found " T h e r e is such bad encouragement to ship anyM November 2 1 , 1 7 5 9 , T h o m a s C l i f f o r d to J o h n Mansell Frank. " J u n e 4 , 1 7 5 9 , P. Baynton to E . Love. " A n d e r s o n , op. cit., Vol. I l l , p. 6 0 1 . " F e b r u a r y 8, 1 7 6 0 , T h o m a s C l i f f o r d to J a c o b Goul, Antigua. " T h e Island of Guadeloupe in the French West Indies was surrendered to Great Britain in M a y 1 7 5 9 and the Island of Martinique in February 1 7 6 2 . Anderson, o f . cit., Vol. I l l , pp. 603, 629. February 8, 1 7 6 0 , T h o m a s C l i f f o r d to J a c o b G o u l , Antigua. " M a y 2 7 , 1 7 6 1 , Daniel Clark to William H o w a r d , N e w Y o r k .

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PRICES

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thing hence to W e s t Indies that I cannot prevail on any to venture. T h e same reason prevents myself." 4 0 T h a t it was the market in the Islands for Pennsylvania staples which was limiting the supply of sugar and sustaining sugar prices in Philadelphia is clear from the trade comments. Clark declined to ship because " I see in our coffee house books, six arrivals at Barbados from the continent which of consequence must keep the price of provisions low with you. I really want some bills of exchange and in order to get them would ship some goods to you but I see upon calculating there is certain loss to ensue. . . . T h e r e is in fact nothing to be made here by any branch whatsoever." 41 By April 1762 sugar was 55 shillings a hundredweight and by M a y other factors had entered to cripple trading. T h e King of Spain had already "most unprovokedly, joined France" 4 2 and in M a y the merchants were "in expectation of an embargo every day. Already all the ships in this port are taken into the King's service and great quantities of provisions daily purchased." 43 Throughout the first five months of 1763 prices of muscovado sugar kept at what were considered high levels, averaging from 52^2 to 57J/2 shillings. W e s t India articles were especially wanted and "almost anything will pay the first cost and do better than cash. Rum, sugar, molasses, salt, pimento, indigo, and coffee and many more will sell here." 44 Prices of sugar dropped enough in July and August 1763 to make sugar " a d r u g " by early September, 45 and even fell lower in October and November. Since the decline in prices from April to October 1763 represents the response of sugar prices in the Philadelphia market to the Peace of Paris, which restored the captured French sugar islands, it is well to recite the amount of decline. T h e r e were no runaway sugar prices during any part of the Seven Years' W a r . Except for dips in 1758 and 1759 and characteristic monthly variations, the most salient aspect of the quotations for muscovado sugar is their relative sta" J u l y 17, 1 7 6 1 , Daniel C l a r k to Levi T r u m p , Barbados. " A u g u s t 7, 1 7 6 1 , Daniel C l a r k to Levi T r u m p , Barbados. " A n d e r s o n , of. cit., Vol. I l l , p. 630. M a y 4, 1762, Daniel C l a r k . 44 M a y 10, 1763, Philip Benezet and Ogden & Hewes to captain of the sloop " September 10, 1763, Francis and Rolfe to Nicholas Brown, Providence.

Sally.

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bility at a relatively high level. T h e highest price of these years was 57^2 shillings paid in April 1763. All of the decline came between then and October. The drop in price in these months was 26.1 per cent. The low prices of October and November meant that sugar was charged at 42 shillings 6 pence a hundredweight. One is justified in calling this a low level, for there were only a few times between 1 7 4 3 and 1763 when sugar sold as cheaply and there were no months in the years between 1 7 6 3 and 1 7 7 5 when it did. One is not justified in attributing all of the decline to the end of the war. Actually there was a plentiful supply of sugar in Philadelphia at the end of 1762, 46 and merchants were forced to hold some in storage and were selling it off slowly. Inevitably some decline would have occurred. With this setting it is surprising that the price remained at its low level for only a few months. In these months muscovado sugar was 1.6 per cent above the average of 1 7 4 1 to 1745. It is the marked upswing in prices of sugar between November 1763 and December 1 7 6 5 which probably minimized the difficulties of sugar dealers in those years. This price swing, which started from a low of 101.6 in our series of relatives, rose to a high of 164.3 December 1 7 6 5 , and returned to a low of 104.7 in April 1768, is more distinct in appearance than the short interruptions in the otherwise well-sustained high level of the sugar series in the rest of the years between 1 7 4 1 and 1 7 7 5 . The expanding part of this price swing was not uniform. Dealers in sugar could not easily adjust themselves to the price of 45 or 45^2 shillings a hundredweight which they had to accept or store their sugar in the first quarter of 1764, especially when they had procured it on the assumption of selling at 52 to 55 shillings. Prices improved as the year passed. T h e merchants made much of the difficulties of this and part of the following year. E v e n in September a prominent importer wrote, "Some sugar remains unsold, nor could all that I have suffered for want of money oblige me to dispose of them so low as the markets have been and still are." 47 This decision turned out to be a sage one since by M a y 1 7 6 5 sugar was "much " D e c e m b e r 1 5 , 1 7 6 2 , Francis and R o l f e to Nicholas B r o w n , Providence. ' ' S e p t e m b e r 1 9 , 1 7 6 4 , Daniel Roberdeau to M e y l e r and H a l l , J a m a i c a .

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IN COLONIAL

PENNSYLVANIA

wanted" 4 8 and the " o n l y article in demand'* 9 f r o m the W e s t Indies. B y early N o v e m b e r of that year, when we are dependent upon merchants' reports for any knowledge of prices, it was at 60 shillings a hundredweight and "rising fast" 6 0 and the predictions were that "strong Jamaica spirits . . . and muscovado sugar, will bear a monstrous price this winter . . . indifferent sugar 60 shillings per hundredweight, best muscovado about £4 and all these articles I believe will rise. ,>51 In December sugar was still scarce and rose to the highest quotation which was reached in our record of the Colonial years. T h e steepest part of this unusual rise was limited to the last six months of 1 7 6 5 , just as the most serious part of the decline occurred in the first six months of the following year. B y J u l y 1766 sugar was selling at 45 shillings. T h o u g h there was some rebound in the last half of 1766 the rise was not sustained and sugar prices declined drastically in 1767 and the first part of 1768. A t the close of this pronounced price swing in M a r c h and A p r i l 1768, sugar prices were only a trifle above the point of November 1763 at which the rise started. F r o m 1769, when sugar prices had moved upward to about the level they had held in 1762 and 1 7 6 3 , until the close of the Colonial era there was a long period marked by quite narrow fluctuations. D u r i n g most of this period the tenor of merchants' comments was that g o o d sugars were generally in demand and would always sell at a fair price. Traders were able to be selective about the area f r o m which they purchased sugar. T h e y accepted rum and molasses from St. Christopher but found its "sugars mostly are too high . . . for our market." 5 2 Sugar, in that year, 1770, averaged nearly 52 shillings. T h e average price of 1 7 7 1 was slightly less than 51 shillings and that of 1 7 7 2 about two pence above 49 shillings. Since it sold within quite a range according to quality, there seems no reason to feel that anything but steady sales and a good market for sugar was indicated when Clifford was writing: "Sugars of the first kind w i l l always sell and are generally worth from 52 shillings 6 pence to 57 " M a y 3, 1 7 6 5 , Francis and Rolfe to Nicholas Brown, Providence. * M a y 4, 1765, John Rolfe to Nicholas Brown and Co., Providence. " N o v e m b e r 7, 1765, Thomas Riche to Warner and Blyden. " November 9, 1765, Daniel Roberdeau to M e y l e r and H a l l , Jamaica. "September 13, 1770, Thomas C l i f f o r d to William Smith, St. Christopher.

SUGAR

179

shillings 6 pence per hundredweight. T h e best, clean, large grain, bright sugars always answer best and meet the readiest sale." 4 3 Another merchant wrote to Jamaica that sugar prices were the same as "in my last" letter." T h e most marked rise and the greatest uncertainty about the supply of sugar was felt after the hurricane in the Islands. Reports of devastation in Antigua and St. Eustatia reached Philadelphia in the beginning of October 1 7 7 2 . " Before the middle of that month the staples of Philadelphia were influenced by " a considerable demand [which] has suddenly happened for several of the West India islands, i.e., Antigua, Dominica, St. Eustatia, and St. Croix on account of the most dreadful hurricane that perhaps ever affected a people." 5 6 A repercussion in the prices of sugar followed. In November 1 7 7 2 , when sugar was for sale in the Philadelphia market at about 48 shillings, word was sent to Jamaica that " w e expect sugars will bear a good price in the spring on account of the terrible hurricanes. ,>57 This was an accurate prediction. Sugar was selling at 50 shillings in April 1 7 7 3 and reached 55 shillings by the close of that year. It was "scarce and in demand" 58 throughout 1 7 7 3 and 1 7 7 4 . T h e influence of scarcity and higher prices for muscovado sugar in these years was disseminated to the local grade of loaf sugar, which was " i n such demand here that our sugar bakers cannot supply the demand readily," 5 9 and it was not until the spring of 1 7 7 5 that sugars were reported again as "plenty for this season of the year." 6 0 L o w e r prices prevailed until the late fall when sugar sold for more than at the close of the previous year. T h e annual prices of muscovado sugar were not characterized by cyclical swings such as were noted in the products of Pennsylvania and the southern colonies. T h e elimination of seasonal and random " A u g u s t 29, 1 7 7 2 , T h o m a s C l i f f o r d to Jonas M a y n a r d , Barbados. " A u g u s t 1 8 , 1 7 7 2 , William Pollard to George Whitehorn Lawrence, J a m a i c a . " O c t o b e r 1 2 , 1 7 7 2 , William Pollard to T h o m a s Earle, Liverpool. " O c t o b e r 1 3 , 1 7 7 2 , William Pollard to Peter Holme, Liverpool. 11 November 1 0 , 1 772, William Pollard to George Whitehorn Lawrence, J a m a i c a . " A u g u s t 3 1 , 1 7 7 3 , William Pollard to Robert Scarlett, J a m a i c a ; M a r c h 9, 1774., to E d w a r d Barrett, J a m a i c a ; November 22, 1 7 7 3 , William Smith to Jonathan W o r t h ; September 29, 1 7 7 4 , to Mercer and Ramsay, New Y o r k . " O c t o b e r 1 9 , 1 7 7 3 , William Smith to Mercer and Ramsay, New Y o r k . " A p r i l 1 0 , 1 7 7 5 , T h o m a s C l i f f o r d to Richard Eaton.

180

PRICES

IN COLONIAL

PENNSYLVANIA

fluctuations does bring out, however, the underlying movements in prices. In the years before the middle of the thirties the prices of muscovado sugar had a slightly downward trend. Shortly after 1733 this was changed to a pronounced upward trend which dominated the

CHART

XVIII—ANNUAL

R E L A T I V E S OF W H O L E S A L E

IN P H I L A D E L P H I A ,

PRICES OF

SUGAR

1720-1775

(Base—Monthly Average, 1741-1745) prices of sugar until near the close of the forties and carried them above the level maintained during the remainder of the period. T h e change to the horizontal trend around which subsequent price fluctuations centered occurred in the last part of the decade of the forties. These changes in trend affected the amount of sugar which could be purchased in Philadelphia for a hundredweight of flour. Between 1720 and 1742 the usual exchange ratio between muscovado sugar

181

SUGAR

and flour was 25 to 35 pounds of sugar for 1 1 2 pounds of flour. In some years when sugar was relatively cheaper 35 to 45 pounds of it were required in exchange. F r o m 1 7 4 3 to 1 7 4 7 muscovado sugar was relatively dear: 25 pounds or less w o u l d buy a hundredweight of flour. F r o m this pinnacle the value of sugar declined. D u r i n g the decade of the 1760's more than 26 pounds of sugar were always required in barter and the tendency in the remaining years before the American Revolution was for more than 30 and even more than 35 pounds of sugar to equal the value of a hundredweight of flour. LONDON

AND

PENNSYLVANIA

LOAF

SUGAR

L o a f sugar from Great Britain, both single and double refined, appears occasionally in account books in early years, but L o n d o n loaf sugar was first listed in the "prices current" published by newspapers in October 1728, when it was "scarce." It was marketed in P h i l a d e l phia during N o v e m b e r at 30 pence a pound, but was as l o w as 24 pence in M a y 1729 and even 20 pence in the middle of that year. H o w extensive the use of loaf sugar was in Pennsylvania at this time is uncertain since 15,000 pounds specified as refined loaf sugar are g i v e n separately in the report of total imports to Pennsylvania in 1 7 3 4 and only 15 hundredweight of refined sugars in the shipments f r o m L o n d o n , exclusive of the outports, in E v e n if these are typical years in trade, it is unlikely that the imports adequately represent the consumption of refined sugar in Pennsylvania since, by 1 7 3 9 , the sugar houses of Philadelphia were w e l l enough established in the refining of loaf sugar to cause quotations for the local product to appear regularly in the list of commodities in newspapers. " O r i g i n a l transcript of C u s t o m s I I I , V o l . 46 ( C h r i s t m a s 1 7 4 5 — C h r i s t m a s 1 7 4 6 ) f r o m P u b l i c R e c o r d Office, L o n d o n . F r o m the same transcripts f o r 1 7 4 1 to 1 7 4 5 the a m o u n t of refined sugar received f r o m E n g l a n d w a s : jrom London Cut. Qr. lbs. 1741 I 742

1743 •744 1745

62 40

Total

221

jrom the Outports Cwt. Qr. lbs.

2

o 14 14

o o

I

23

29

2

o o

'7 o o o o

I

17

o

182

PRICES

IN COLONIAL

PENNSYLVANIA

Both the London and Pennsylvania loaf sugars sold in the market until the middle of 1762. B y this time the domestic product seems to have replaced the English product. At first the local sugar was much cheaper and less sought for, being accepted in many cases as a substitute only when London refined sugar could not be supplied. From 1741 to 1745 the difference in the prices of the London and Pennsylvania loaf averaged 4 pence a pound, but after 1751 the differential between these two grades of refined sugar was usually not more than one or two pence. Normally the two series followed each other in fluctuations. Before we discuss the variations in prices of loaf sugars in detail, one important contrast between the trend of prices of loaf sugar and of those of the less processed muscovado sugar should be noted. It has been pointed out that after the rise of prices from 1733 to 1735 muscovado sugar gradually established higher levels in the 1740's, 1750's, and 1760's. Loaf sugar, both London and Pennsylvania, tended to keep up with this rising process until a steep decline started in 1750. It then established a lower level than it had held from 1729 to 1750 and adhered to this lower level throughout all the fluctuations in sugar prices up to the outbreak of the Revolution, showing a tendency to seek even lower levels after 1766. In discussing the fluctuations in the loaf sugar series we are, then, dealing with grades of sugar which differed substantially in trend from that of the more important muscovado sugar from which they were derived. In the decade from 1729 to 1738 when London loaf sugar dominated the market for refined sugar in Philadelphia, there were no movements which appear to be cyclical in nature. Instead there was a series of short fluctuations which were not seasonal in nature, as is evidenced by the facts that the peaks of the rises were not always in the same months and that the length of the swings was at some times less than a year and at others more than a year. In general, the fluctuations from 1729 to 1734 appear as deviations from a downward tendency. Usually in each successive period of low prices London loaf sugar sold for less than at the termination of the previous swing. T h e high prices at the crest were usually lower than at the corresponding position of the previous variation. From 1734 to 1738 fluctuations continued to appear in the prices of London loaf

SUGAR

183

sugar, but there was no marked tendency towards a general upward or downward price movement. During the winter of 1 7 3 4 - 3 5 there was a shortage of sugar which, as has already been pointed out, was met by importation from New England and London, but not until loaf sugar had nearly doubled in price, advancing from 16 pence in the fall of 1 7 3 4 to 3 0 pence in January 1 7 3 5 . During the first quarter of that year London loaf sugar sold for 27 pence or more. During the rest of 1 7 3 5 its price was between 19 and 2 1 pence. In the two swings from 1 7 3 6 to 1 7 3 8 its price varied between 1 5 J/2 and 22 Yi pence. T h e period from 1 7 3 9 to 1 7 5 1 , which includes the war with Spain and France as well as the immediate post-war years, is important because it marks the introduction of Pennsylvania loaf sugar. During most of this time the fluctuations in prices of refined sugar appear to be dominated by those of London loaf sugar, which may be regarded as typical for the war years of the behavior of prices of English products. 62 B y September 1 7 3 9 London loaf sugar was 24 pence a pound, an advance of 6 pence over the price of the preceding M a y . This level was fairly well maintained as late as February 1 7 4 2 , but after that a declining tendency dominated the fluctuations. B y April 1 7 4 3 London loaf sugar was again selling for 18 pence or as low as it had been in the year before the outbreak of the war. Prices tended to hold to this level until 1 7 4 4 , when they advanced to 20 pence. N o further change occurred in the next two years. Before the end of 1 7 4 5 this had probably become a nominal price since there was little on hand because of the interruption in trade. After December 1 7 4 5 London loaf sugar was not quoted in the Philadelphia newspapers until April 1 7 4 7 . With the resumption of shipping and the availability of supplies, London loaf sugar sold for 30 pence a pound. This price prevailed long after the Treaty of Aix-la-Chapelle. In fact, it was not until June 1 7 5 0 that the price was lowered to 24 pence. Further reductions were made in the spring of 1 7 5 1 , especially after two ships with cargoes of sugar arrived from London. 63 B y J u l y the price had fallen to 1 3 "* See Chapters X and XI. *" May 1 751, John Stamper to John O'Kill, et al.y London.

184

PRICES

IN COLONIAL

PENNSYLVANIA

pence. T h e decline to this level represents the bulk of the fall from the high level of the war and post-war years. T h e movements of the price of Pennsylvania loaf sugar during these years are quite similar to those of London loaf. T h e lowest price of local refined sugar was 16 pence in M a y 1739. Its rise during the remainder of the year was less rapid than that of the better grade, but by December it had risen to 20 pence, which tended to hold until the first months of 1742. It should be noted, however, that this price was not only slower in being attained but dips below it occurred sooner and were more numerous and more severe than those from the level maintained by the imported loaf sugar. In the decline from 1742 to 1743 Pennsylvania loaf sugar sold for considerably less than it had before the war. In the summer of 1743 it dropped as low as 14 pence. Its typical price in 1743 and 1744 was 16 pence, and in 1745 and 1746 about 15 pence. T h e rise in prices during 1747 and 1748 was not as pronounced as in those of London loaf sugar. T h e highest price in 1748 was only lOl/2 pence. From 1747 to 1750 the difference between the two grades of refined sugar was usually 10 pence or more. This was the largest differential between the prices of the local and the imported sugar ever found in the years in which they were sold in competition with each other. T h e prices of Pennsylvania loaf sugar declined gradually from the peak of 1748, dropping to 12 pence by February 1 7 5 1 . During the years from 1751 to 1762 the two grades of sugar were usually priced at a difference of one or two pence a pound. T h e greatest variation was in the late summer and early fall of 1752 when the price of London loaf sugar advanced rapidly to 20 pence, but by October it had fallen to the more usual price of 14 pence. There were comparatively few variations in price afterwards, but from the dealers' point of view a change of even half a penny a pound was important. 64 For several years 12 pence a pound was the usual price which merchants expected to pay and they would often buy "this town's make" rather than bid slightly higher." In August 1756, when Pennsylvania loaf sugar was 14 pence and London loaf sugar 15 " A u g u s t 1, 1753, Thomas Wharton to Samuel Tucker, Trenton, New Jersey. " J u l y 26, 1753, Thomas Wharton to Samuel Tucker, Trenton, N e w Jersey; September 16 and October 17, 17J4, to James Beckham, Lancaster, Pennsylvania.

SUGAR

185

pence, Wharton commented, " T h e price of loaf sugar is high." 6 8 B y 1 7 5 7 refined sugar was again 1 2 pence for domestic and 1 3 pence for imported. In 1 7 6 1 both grades rose a penny a pound. T h e most marked variation in price from 1 7 6 2 to 1 7 7 5 , when Philadelphia loaf sugar dominated this market, occurred in 1 7 6 5 when prices advanced from 1 2 pence to 1 6 pence. Although the decline from this high price started in 1 7 6 6 , there was more than a year of gradual downward steps before loaf sugar again sold for less than 1 2 pence per pound. F r o m 1 7 6 7 to 1 7 7 4 loaf sugar rarely sold for more than 1 2 pence a pound and usually for less. In fact its price was below 1 2 pence continuously from September 1 7 6 7 until August 1 7 6 9 and from September 1 7 7 1 until February 1 7 7 4 . In the three years before the American Revolution there was an upward tendency. A f t e r selling for 1 1 pence during most of 1 7 7 3 , loaf sugar advanced to 1 2 pence in February 1 7 7 4 . B y November it had risen another penny and still another by J u n e 1 7 7 5 . T h e value of loaf sugar showed an even greater tendency to decline than did that of muscovado sugar. F r o m 1 7 2 9 to 1 7 5 0 inclusive, L o n don loaf sugar usually exchanged for flour in the ratio of 43/3 to 7]/i pounds for 1 1 2 pounds of flour. Thereafter the value declined, with the result that from 1 7 5 1 to 1 7 5 5 the ratio was 9 t o pounds of sugar and from 1 7 5 9 to 1 7 6 1 it was 12^4 t o pounds. Pennsylvania loaf sugar, for which prices are more complete in the later years than for the London loaf, tended to be somewhat cheaper than the British product. F r o m 1 7 3 9 to 1 7 4 7 between 5^3 and pounds of Pennsylvania loaf sugar exchanged for 1 1 2 pounds of flour. F r o m 1 7 4 8 to 1 7 5 5 the decline in the relative value of loaf sugar was so great that from 1 0 to 13^/3 pounds were charged in barter. F r o m 1 7 5 9 to 1 7 6 6 the decline continued to such an extent that 1 2 ^ to 16^4 pounds of loaf sugar were required, while from 1 7 6 7 to 1 7 7 4 the ratio was between 15^/3 and 2 1 ^ 2 pounds. B y the beginning of the sixties the Pennsylvania sugar houses were important enough to make the London loaf insignificant in use in the colony and to supply loaf sugar to the area with an advantage of a pound more of Pennsylvania loaf sugar than of London loaf in exchange for a hundredweight of flour. " A u g u s t 5, 1 7 5 6 , T h o m a s Wharton to Joseph Bennett.

C H A P T E R VIII

PRICES OF MOLASSES A N D RUM T h e trade in molasses differed from that in sugar in that the mainland colonies competed actively for it in the West Indies while sugar was wanted not only in the colonies but also in Europe. Rum, which was distilled from molasses, was so closely related to it in trade that a merchant's comment about the one was usually accompanied by some reference to the other. At first all rum sold in the Philadelphia market was imported directly from the West Indies, 1 but later the supply was augmented by imports from New England. Before the opening of the French and Indian War the distilling of rum in Philadelphia had become important enough to cause its prices to be quoted in the prices current. Since both the New England and the local rums were distilled from molasses and since the movements of their prices were influenced by those of West India rum, all of these commodities will be discussed together, but attention will be given first to the prices of West India rum and molasses. M O L A S S E S AND W E S T INDIA

RUM

In the early months of 1 7 2 0 both molasses and West India rum declined in price, rum falling more abruptly than molasses; both tended to hold quite well in the early months of 1 7 2 1 , but molasses dropped to a little over a shilling a gallon and held to that low price for the last five months of 1 7 2 1 . The price of rum dipped to a low of slightly over 2 shillings a gallon in M a y 1 7 2 1 and advanced from that level to nearly 4 shillings in November 1722. It was low again in April and M a y 1 7 2 3 . Meanwhile molasses, which was subject to fewer fluctuations than rum, had a less marked rise late in 1 7 2 3 . Both series dropped back to ' T h e time involved in getting supplies differed among the Islands, but in 1 7 3 4 when one vessel took 47 days to make the passage from J a m a i c a to Philadelphia, Reynell commented: " I t has been made in fifteen. We reckon thirty days a long passage." October 3, 1 7 3 4 , J o h n Reynell to Richard Deeble, Plymouth, E n g l a n d . 186

MOLASSES AND

RUM

187

quite low levels toward the close of 1 7 2 4 , but molasses was still lower in 1 7 2 6 , 1 7 2 7 , and again in 1 7 3 1 . T h e depressed prices of rum in 1 7 2 4 marked the minimum level not only of these early years but of the whole 56-year period from 1 7 2 0 to 1 7 7 5 . In M a y and for four months from J u l y to October 1 7 2 4 West India rum sold in the Philadelphia market for as little as 1 shilling 1 1 pence a gallon. It was at 3 shillings throughout the first quarter of 1 7 2 5 and reached 3 shillings 9 pence in April and in the two closing months of 1 7 2 6 . Prices of rum receded in 1 7 2 7 and again in 1 7 2 8 . At this time it was a tradition among importers that the best time to purchase West India products in Philadelphia was in June 2 and the tendency for low prices to prevail about the middle of each year was commented upon by the Philadelphia merchants. These seasonal fluctuations were especially characteristic of rum "which is the most valuable" 2 product. F r o m the middle of 1 7 2 7 to 1 7 3 1 , there seems to be no especial significance in the monthly fluctuations of either series. Both advanced in the last quarter of 1 7 2 9 and molasses mounted to an abrupt peak for two months at the beginning of 1 7 3 0 from which there was a quite steady decline. Molasses sold at 1 shilling 3 pence in the middle of 1 7 3 1 and rum about 2 shillings 3 pence. T h e difference between the behavior of the prices of rum and molasses in these early years is that the peaks in rum prices were relatively much higher than those in molasses. It is only in the decade of the thirties, the third period of some advance in the prices of these commodities, that the rise in molasses was enough to bring its relative above that of rum. T h e advance in molasses occurred between October 1 7 3 1 and J u l y 1 7 3 5 . A rise in prices of molasses was overdue, for it had been so low in the spring of 1 7 3 1 in Philadelphia that it was doubted that it would " p a y freight" if brought for f a l l trade. 3 T h e rise in prices of molasses in these years occurred mostly between J u n e 1 7 3 3 and February 1 7 3 5 . Samuel P o w e l predicted that prices would be firm when he wrote in J u n e 1 7 3 3 , " M o l a s s e s is not 2

May 6, 1 7 2 8 , Samuel Powel, J r . to Thomas Hyam, London. " M a r c h 8, 1 7 3 1 , Isaac Norris to Isaac Cardell, Jamaica.

188

PRICES IN COLONIAL

PENNSYLVANIA

CHART X I X — M O N T H L Y

RELATIVES OF W H O L E S A L E

PRICES

(Base—Monthly

MOLASSES AND RUM

189 PER C E N T

OF MOLASSES AND R U M IN P H I L A D E L P H I A ,

I720-1775

190

PRICES

IN COLONIAL

PENNSYLVANIA

CHART X I X — M O N T H L Y

R E L A T I V E S OF W H O L E S A L E

PRICES

(Base—Monthly

MOLASSES

AND

RUM

191 PERCENT 220 200 180 160 140

I 1

VX I.

V

120

I

H

Lr/

J \ V Vvw v- k / V/ v J

100 y/V-

V V

80 60 40 220 200 180 160

y .

A

\

kw

I

(1

r \ J

A

II T A .

140

\ /I/ V »

120

W

100

vWu.

80 60

1761

1762

1763

1764

1765

1766

1767

1766

1769

1770

1771

OF MOLASSES AND RUM IN PHILADELPHIA, I 7 2 0 - 1 7 7 5 , Average, 1 7 4 1 - 1 7 4 5 )

1772

1773

Concluded

1774

1775

40

192

PRICES

IN COLONIAL

PENNSYLVANIA

like to fall in price except a great deal comes in." 4 The rise in prices indicates the restricted quantity offered in this market. At the end of February 1 7 3 4 he wrote to a correspondent in St. Christopher, " I am of opinion molasses will bear a good price here in the spring." 5 The greatest importance of the rise from 1 7 3 3 to 1 7 3 5 , however, is that a slightly higher level of prices for molasses was then established. As usual in such cases, this change was slowly recognized. At the end of 1 7 3 5 Powel, evidently thinking of the prices which had prevailed in the early thirties, regarded 18 to 19 pence as a scarcity price for molasses.6 Judged in terms of earlier prices, such a statement is correct. The fact is that seldom in later years did molasses ever sell again for such a low price. In 1 7 3 6 and the first quarter of 1 7 3 7 prices were high, but in J u l y 1 7 3 7 they dropped to slightly under 18 pence, a price which marked the end of the contraction from the peak of 2 shillings two years earlier. These higher prices of 1 7 3 6 had been anticipated. " I am of the opinion," wrote Powel, "that the first cargoes of molasses in the spring must come to a very good market." 8 The fluctuations in the prices of West India rum from 1 7 3 1 to 1 7 3 7 appear to have little relationship to those of molasses. In these years, while molasses completed one swing in price, West India rum completed more than two. In three months, from June to September 1 7 3 1 , rum advanced in price 34.5 per cent. When in September 1 7 3 1 it sold at 3 shillings 1 penny a gallon it was dearer than at any other time in the decade. In the next two years prices of rum tended downwards. B y November 1 7 3 3 it sold for a shilling less than at the peak, or at 2 shillings 1 penny. From 1 7 3 3 to 1 7 3 6 rum had another swing in price. T h e crest of this movement at 3 shillings a gallon in the months from September 1 7 3 4 to January 1 7 3 5 preceded the peak in the price of molasses. B y M a y 1 7 3 5 rum had fallen and was selling at 2 shillinigs 2 pence. It fluctuated around this level until near the close of 1 7 3 6 . This, perhaps, constitutes the greatest divergence in the prices of molasses and rum. During these months, when rum usually sold at less than the average of 1 7 3 3 , molasses was fluctuating around a high level and never dropped back to as low a price as ' J u n e z i , 1 7 3 3 , Samuel Powel, J r . to Valentine French, St. Christopher. "February 28, 1 7 3 4 , Samuel Powel, J r . to Valentine French, St. Christopher. "December 1 0 , 1 7 3 5 , Samuel Powel, J r . to Valentine French, St. Christopher.

MOLASSES

AND

RUM

193

it had had before the rise of 1 7 3 4 and 1 7 3 5 . It must be presumed, therefore, that such influences as the act imposing duties on the imports from foreign plantations (the " M o l a s s e s " Act of 1 7 3 3 ) had no permanent effect on the price of rum although they may explain the higher level in the price of molasses. T h e amount of response one could expect from the duties placed on importations from the foreign plantations would depend upon the amount of trading to the French and Dutch plantations, of which there is no exact knowledge. Between 1 7 3 7 and 1 7 3 9 there was another short swing in prices of both commodities. T h e rise in molasses was especially mild: from 1 7 Y i pence in J u l y 1 7 3 7 to 20 pence in March to M a y 1 7 3 8 , J u l y 1 7 3 8 , and December 1 7 3 8 to February 1 7 3 9 . B y the following June, molasses was again selling for 1 7 ^ 2 pence. R u m , just as earlier in the decade, had a wider swing than molasses. Starting from a low price of a little over 2 shillings in August 1 7 3 6 , rum increased to 2 shillings 8 pence early in the next year. In the late spring of 1 7 3 7 it sold at a lower price, but by December it was at 3 shillings. In this swing rum again preceded molasses in reaching its crest. By April 1 7 3 8 , rum had receded to 2 shillings 2 pence and it fluctuated near this level for the rest of 1 7 3 8 and the first part of 1 7 3 9 . During the first years of the war with Spain, the prices of molasses and rum showed a pronounced rise. Molasses, which was selling in Philadelphia in J u l y and August 1 7 3 9 for 18 pence, sold at 22 pence in September and October, and then dropped back to 18 pence in December 1 7 3 9 and the first month of the next year. During most of r 740 it was quite uniformly quoted at 20 pence. T h e next year opened with an advance of 3 pence a gallon. By March molasses was selling at a high price of 2 shillings which had been reached only three times before in our records—January and February 1 7 3 0 and J u l y 1 7 3 5 . A f t e r receding until June, it rose to 2 shillings again in December 1 7 4 1 . H i g h e r prices also prevailed in 1 7 4 2 and the first month of 1 7 4 3 , when molasses was " v e r y scarce." 7 T h e highest price reached was 2 shillings 4 pence in five months of 1 7 4 2 and in January 1 7 4 3 . T h e contraction from these high levels lasted from February to September 1 7 4 3 . T h e decline in these eight months reduced the 'December 20, 1 7 4 2 , Samuel Powel, J r . to Joseph Richardson, traveling in Jamaica.

194

PRICES

IN COLONIAL

PENNSYLVANIA

prices paid for molasses to 18 pence a gallon, a decrease of 35.6 per cent between January and September. R u m , by contrast with molasses, was unusually stable in the spring and summer of 1 7 3 9 . In J u l y it was selling at about a penny over 2 shillings, but it had risen 36.1 per cent by October of that year. This temporary lift, which also appeared in the prices of sugar, originated from a rumor of war which caused prices " t o rise very much and that in one day, rum from 2 shillings 1 penny a gallon to 2 shillings 8 pence . . . and the merchants expect to sell yet higher. T h e people are very cautious in buying expecting it will lower." 8 A mild decline followed, prices tending to hold during the next eleven months even though the news of war between Spain and Great Britain had been proclaimed at the Court House in Philadelphia in April 1 7 4 0 . A steep rise set in before the close of the year 1 7 4 0 and a marked rise in the next year brought prices of West India rum to 3 shillings in August 1 7 4 1 and to 3 shillings 1 0 pence in December 1 7 4 1 and January 1 7 4 2 . Prices rose no higher than the levels of the close of 1 7 4 1 , but they averaged about 3 shillings 8 pence in the year 1 7 4 2 , with that price prevailing from J u l y 1 7 4 2 through January 1 7 4 3 . At this stage, when prices of Pennsylvania products were declining in the local markets, the advancing quotations on West India staples made merchants figure closely their chances of making any profits by trading. In M a y 1 7 4 2 one merchant wrote, "Provisions in the West Indies are exceeding low and their commodities high. R u m sells here at 3 shillings 6 pence and molasses [at] 2 shillings 3 pence . . . and yet the merchants complain they can't afford it at that price." 9 That some merchants in Philadelphia expected good prices for rum but did not expect that the higher prices would last for long may be inferred from the hint sent to Barbados in December 1 7 4 1 that " r u m keeps up yet and I believe the first to market in the spring will do best." 1 0 This proved to be accurate. Prices were notably firm until after January 1 7 4 3 , but then receded until in August rum sold for 2 shillings 9 pence, 28.2 per cent less than at the peak of prices. "September 3, 1739, Richard Hockley to Bernard Hannington, Pennsylvania Magazine of History and Biography, Vol. X X V I I , 1903, p. 3 1 3 . ° May 27, 1742, Richard Hockley to Thomas Penn, London, Pennsylvania Magazine of History and Biography, Vol. XXVII, 1903, p. 427. "December 8, 1 7 4 1 , Samuel Powel, J r . to Robert Purchase, Barbados.

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T h e movements in the prices of W e s t India rum and molasses from 1 7 3 9 to 1 7 4 3 differed in character from those of earlier years. T h i s was the first time that the fluctuations in the prices of these series resembled those which appeared continuously in the prices of many other products and which would be described in modern terminology as cycles. T h e turning point in the upswing synchronizes well enough with the war activity which involved the W e s t Indies to suggest that such activity was a cause of part of the price behavior. T h e swing in the prices of molasses, beginning in J u l y 1 7 3 9 and ending in September 1 7 4 3 or, if corrected for accidental factors, early in 1 7 4 4 , forms a quite well-rounded cycle which begins in our series at a relative of 7 4 . 2 , ascends to 1 1 5 . 3 in parts of 1 7 4 2 and in the first month of 1 7 4 3 , and recedes by September 1 7 4 3 to the exact level from which the rise started, that is, 7 4 . 2 . T h e price of molasses in this peak was the highest recorded up to this date and it is significant that the levels were uncommonly well, though not uniformly, maintained from the autumn of 1 7 4 1 to the spring of 1 7 4 3 . R u m , which usually led molasses in the time of initiating a rise and usually overtopped it at peaks, started its rise in advance, but in this case exceeded molasses in relative level by only a narrow margin in the end of 1741 and the beginning of 1 7 4 2 . Nevertheless, having started at a relatively lower level than molasses, rum increased 7 9 . 8 per cent from low to high while molasses increased 5 5 . 3 per cent. T h e prices of both series were high in 1 7 4 2 , but one might have expected r u m to go on rising to higher levels after the headway it had made by D e c e m b e r 1 7 4 1 since the price of molasses had a persistant tendency to return to its peak level even as late as J a n u a r y 1 7 4 3 . I n stead, the expansion in the rum price seems to have ended earlier than even its usual sensitivity would lead one to expect, though after the first decline the price held at the slightly lower level established in 1 7 4 2 . T h e explanation of the rise of molasses in 1 7 4 2 is that the sugar crop at Barbados was poor in that year. B y F e b r u a r y 1 7 4 3 it was asserted that there was " n o t a cask of molasses in Philadelphia to be sold and I think it must be high here all y e a r . " 1 1 T h e decline in molasses " February 5, 174.3, Samuel P o w e l , J r . to Joseph Richardson, traveling in J a m a i c a .

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prices in 1 7 4 3 was brought about by the deflection of trading to Antigua, where the crops had been good. 1 1 The lower relative level of the prices of rum in 1 7 4 2 and 1 7 4 3 had different causes j first, New England rum was regularly sold in the Philadelphia market after 1 7 3 8 and in these years undersold the West India rum, not to mention the still higher-priced rum of Jamaica, which was too dear for the Philadelphia trade before 1 7 5 0 . " In the second place, the city was well supplied with rum in 1 7 4 2 when the prospect of a shortage of molasses loomed. In the third place, the rising prices of rum encouraged substitutes. These statements are well substantiated by Powel, whose letters give us many vivid glimpses of living and business conditions in these transitional years when the price level was changing. H e wrote to a correspondent in Barbados in M a y 1 7 4 3 : " H e r e is now a great deal of rum in town and but few buyers in comparison of what used to be [in] other years. T h e price of rum for a year past has been so high that it has put the country people on means of supplying themselves with spirits another way, which is by extracting it from peaches, cider, barley, wheat, and rye and I suppose they do now make at least one half the spirits they use in the Province and if you keep up the price of rum they may still go further into it and [ I ] am apt to think you must lower the price or we cannot buy it from you but to a certain loss." 1 3 It is in the first years of the next swing in prices that the difference between the trends of molasses and rum stands out most clearly. In October 1743 molasses started a long upswing which was continued until June 1748. The high price of 2 shillings 4 pence which had first been reached in 1742 was again paid for molasses in December 1744. A year later molasses commanded 2 shillings 6 pence and the price fluctuated around this level through 1746 and the first four months of 1747. For the remainder of that year the prevailing price was 2 pence higher. In January 1748, 3 shillings a gallon was the market price for molasses. The peak of 3 shillings 2 pence in June 1748 was not, however, maintained, for, although molasses sold at 3 shillings a Jamaica rum was seldom quoted in the Philadelphia newspapers, but from the merchants' records it appears that the price per gallon was generally a shilling more than that of West India rum. " May J I , 1 7 4 3 , Samuel Powel, J r . to Thomas Hothersall, Barbados.

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or more for the next two months, it dropped to 2 shillings 3 pence in September. Not since M a y 1 7 4 5 had molasses sold at this price. A rise beginning near the end of 1 7 4 8 brought the price to 2 shillings 10^2 pence in January 1749. T h e almost uninterrupted decline from this secondary peak lowered the price of molasses to 2 shillings 3 pence in April, to 2 shillings in J u l y , and to 1 shilling 8 pence in October. T h e recession was finally checked when molasses was quoted at 1 shilling 6 pence in M a y 1 7 5 0 , less than half of its price at the peak and during most of the first part of 1748. In the first year of its rise after France joined Spain in the war, rum rose less rapidly than molasses. Its prices had already advanced by October 1 7 4 3 to 3 shillings 3 pence from 2 shillings 9 pence, the low of August. In 1 7 4 4 , except for the prices of two months which were slightly under 3 shillings, West India rum was quoted throughout at from 3 to 3 ^ shillings. In 1 7 4 5 the range was higher than this only in January and February; in 1 7 4 6 it was from 2 shillings 10^2 pence to 3 shillings 3 pence and averaged 3 shillings for the year as a whole. Without doubt these should be considered high prices for rum in Colonial years, but they are considerably lower than in the early forties before France entered the war, and surprisingly low in relation to molasses, which was rising steadily in these years. Despite supplies of rum which happened to come in as prize goods, by 1 7 4 5 merchants were anticipating a scarcity and were writing to shippers in Barbados that the price would rise if supplies did not reach the city presently." It was emphatically stated in June that "the price of rum keeps up and almost all that is come this year is run off and now the town is bare." 1 5 In 1 7 4 7 the main rise in the price of West India rum occurred. In January it was quoted at 3 shillings 1 penny, not much more than the average price of the previous year. B y the next month the price had increased to 3 shillings 6 pence and by April to 4 shillings 5 pence. At the close of this month Powel wrote, " A t present West India rum is here at 5 shillings and I am of opinion will yield 4 shillings at least till after harvest." 1 6 Actually the price did not fall below 4 shillings 7 "May December "June " April

7, 1745, Samuel Powel, Jr. to Thomas Hothersall, Barbados; July 15 and 30, 1745, to Henry Slingsby, Barbados. 2 1 , 1 7 4 J , Samuel Powel, Jr. to Thomas Hothersall, Barbados. 30, 1747, Samuel Powel, Jr. to Gabriel Manigault, South Carolina.

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pence during the remainder of the year. There was evidently a great scarcity of West India rum everywhere. T h e Philadelphia merchants were informed that "there is neither rum nor molasses in the island of St. Christopher." 1 7 R u m continued to be in "great demand" 1 8 and at the price of 5 shillings in M a y and June. In the first two months of 1748 West India rum sold at the highest price of the entire period — 6 shillings a gallon—and held at 5 shillings or more until as late as M a y . In the next four months, however, the price collapsed until, in September, it was 3 shillings 1 penny. Then another temporary scarcity occurred. In November it was reported that the failure of a brigantine to bring as much rum as was expected had "raised the price here to 4 shillings 6 pence and some ask 5 shillings 6 pence per gallon." 1 9 By December the price had soared to 5 shillings 8 pence, only to recede in the early months of the next year. In the middle of March 1 7 4 9 , Pemberton noted, " W e s t India rum and New England falling, being both dull sale." 2 0 At the beginning of the next month another merchant sold twenty hogsheads of Barbados rum at 3 shillings 3 pence. 21 Later in the month newspapers quoted 2 shillings 1 0 pence. During the rest of the year prices tended to rise again. A price of slightly more than 4 shillings 4 pence was charged in November. E a r l y in 1 7 5 0 rum was again cheap. " R u m at this time is very low and a very slow sale. It will not sell for more than 3 shillings per gallon and little or no demand at that price." 22 R u m and molasses were both low in 1 7 5 0 and, except for a rise in 1 7 5 1 , the price of rum sagged continuously until J u l y 1 7 5 5 , when it was 58.3 per cent below the high of January 1 7 4 8 . It held at 2 shillings 6 pence until October 1 7 5 5 . This long decline made for uncertainty as to what would happen to the price of rum. E a r l y in 1 7 5 2 Joseph Richardson wrote: " H o w rum may sell is uncertain. It has not been higher than 3 shillings 5 pence this winter." 23 Three years later another merchant complained, "Cannot make money out of rum 17

May 2 1 , 1 7 4 7 , Samuel Powel, J r . to Thomas Plumsted, London. May 23, 1 7 4 7 , Samuel Powel, J r . to Samuel Carsan, St. Christopher. " November 1 2 , 1748, John Pemberton to James Pemberton, London. 20 March 1 3 , 1749, John Pemberton to James Pemberton, London. " A p r i l 5, 1749, Joseph Richardson to Capt. Edward Sheaffe, J r . " F e b r u a r y 20, 1 7 5 0 , Joseph Richardson to Joseph Lindsay, Barbados. " F e b r u a r y 20, 1 7 J 2 , Joseph Richardson to Henry Bishop, Jamaica. 18

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at present. People will not buy in expectation of its falling though it is now at but 3 shillings 4 pence per gallon, but they seem to think it will be this year very low, as the crop is like to be large in most of the Islands." 2,1 E v e n at the price of 2 shillings 6 pence rum was " v e r y slow."" Molasses had a mild rise from a low level of 1 shilling 6 pence in M a y 1 7 5 0 to 2 shillings 2 pence in J u n e 1 7 5 3 and June 1 7 5 4 . This was not by any means a continuous rise. T h e price of molasses reached 2 shillings a gallon in December 1 7 5 0 , held at that quotation until April 1 7 5 1 and then dropped back to a low in June and was again at 2 shillings by December. T h e same price was also recorded from M a y to J u l y 1 7 5 2 , in December of that year, and during the first five months of the following year. In fact, the tendency of prices of molasses from 1 7 5 1 to September 1 7 5 4 was to sell at 2 shillings in all months of greatest demand. It averaged 2 shillings in the years 1 7 5 3 and 1 7 5 4 . It was in these years of the early fifties that the perennial question of the trade between the continental colonies and the British and foreign plantations in the West Indies was revived. In the arguments submitted by various colonists many statements were made, but little actual evidence was submitted and even prominent merchants of Philadelphia differed on the advantages of trade. Writing in 1 7 5 1 Isaac Norris stated his views: " O u r trade to the French Islands is entirely in their favor. What we carry on from this place is of little value and even that is forced by our exporting empty casks to bring back their molasses, a very few frames for houses and the rest made up with Spanish silver, so that in my opinion we should suffer no great loss in the prohibition of that trade, and as it is inconsistent with the interest of France to suffer the importation of the commodities we take from them into that Kingdom, they would become of little value to the Island and therefore all the balance which arises from this trade is truly augmenting the French power which by the conduct of our superiors is become very formidable in America. But it is otherwise with our trade to Surinam which is carried on without any cash and in exchange for wines, lumber, butter, horses, and such other mer24

March 27, 1 7 5 5 , J o h n Reyncll to D a v i d F o g o , Antigua. " J u l y 5, 1 7 5 5 , Joseph Richardson to Henry Bishop, J a m a i c a .

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chandise as we can well spare, besides the advantage of trading with a people from whose power in America we can apprehend no danger. If the petitioners in behalf of the Sugar Islands have further views to deprive us of the privilege of importing safe from Europe and such other advantage as we now enjoy by the Acts of Navigation, it would grievously distress all the Northern Colonies and we ought to oppose it with all our strength." 26 T w o years later he stated an opinion still more in conflict with that of others interested in the discussion of West India trade. " B e n j a m i n Franklin and myself think differently of the trade with the French Islands as we have a right to do, but then I confine my thoughts to the trade of this province only, which appears a monopoly in a few hands exclusive of all others and the balance against us. I can see great inconvenience too arising from the West Indies scheme as it excludes both the French and Dutch but we trade with the latter on much better terms than with the French Islands. N e w England and Rhode Island etc. had been in the French trade long before us and, I presume, by their desires still to keep it open, have found their advantage in i t . " " It is difficult to say exactly to what extent, if any, the prices of rum and molasses in Philadelphia were affected by the controversy over the trade with the French plantations. T h e record shows that in 1755 the average price of molasses was 1 shilling 10^2 pence compared with 2 shillings in the previous years and that the lowest price between 1750 and 1763 was 1 shilling 9 pence in September 1756. Even this price, which is somewhat erratic, is well above the low price of 1 shilling 6 pence in M a y 1750 and 1 shilling 7 pence or less which frequently occurred in 1764 and 1765. This moderate recession in the price of molasses in 1755 and 1756 contrasts sharply with the severe drop in the price of rum to the lowest quotation in all the years from 1741 to 1775. It is small wonder that such prices provoked a Philadelphia merchant who, at the peak of prices in 1748, had sold rum for 6 shillings a gallon to write: " R u m is a miserable bad article here. It sells from 2 shillings 5 pence to 2 shillings 6 pence per gallon and know not when it will be better for it is " J u l y 21, 1 7 5 1 , Isaac N o r r i s to R o b e r t C h a r l e s , Leicesterfields. " M a r c h 2 7 , I 7 J 3 , Isaac N o r r i s to R o b e r t C h a r l e s , Leicesterfields.

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at 17 pence per gallon at Barbados and they pour in an abundance from there and keep down the price." 28 Another complete and very long cycle in the prices of rum and molasses began in 1 7 5 5 or 1756 and lasted until 1764 or 1765. The prices of molasses tended upward from the end of 1756 until June 1759, when they reached slightly more than 3 shillings. By February 1760 they had receded until they were less than 2 shillings 6 pence, only to rise again until in May of that year they were at an extreme peak of 3 shillings 4 pence, the highest price of molasses shown for any month in Colonial times in this city. Aside from the price in the peak month, which was merely an extreme figure, such high prices for molasses as are found in December 1758 and the first seven months of 1759 were recorded only once again in the whole fifty-six-year period, namely in the peak of 1748. In the long decline from the peak of 1760 prices of molasses, despite the underlying downward tendency, kept quite high until the middle of 1763, when the drop was abrupt. By the end of this downswing, which lasted from June 1760 to February 1765, the price had dropped 55.0 per cent from the peak or 50.7 per cent from even the less abnormal high of June 1759. The rise in the price of molasses, especially in the fall of 1756, and the moderately high level of 1 7 5 7 were referred to by Richardson: "As to molasses it now sells at 2 shillings 3 pence and but little in town but a vessel or two are daily expected with some and [ I ] believe it may then be got at 2 shillings or 2 shillings 2 pence." 29 His prediction proved to be wrong. Actually the lowest price in the entire year was 2 shillings 3 pence and it was not until late in 1 7 6 1 that a lower price was quoted. At the beginning of M a y 1 7 5 7 , another merchant wrote: "Molasses is risen to 2 shillings 6 pence per gallon and some ask 2 shillings 8 pence. It [is] the general opinion it will be more." 30 The high level of prices in the early months of 1 7 5 9 was not expected to continue. Rather it was thought in March that prices would f a l l . " The continuation of the high prices, however, had changed Wharton's K

August 7, 1 7 5 5 , John Reynell to David Fogo, Antigua. " M a r c h 10, 1 7 5 7 , Joseph Richardson to Isaac Smith, Boston. " M a y 5, 1 7 5 7 , Thomas Wharton to Gerard G. Beekman, New York. " March 9, 1 7 5 9 , Thomas Wharton to George Trenchard.

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opinion by M a y . H e did not then believe that it would fall lower than 3 shillings a gallon. 3 2 It was not until September 1 7 5 9 that molasses sold below that price. T h e collapse in prices of the last few months of that year and the first months of 1 7 6 0 is confirmed by the prices quoted in the letters of merchants. 33 In 1 7 6 0 the price of molasses soared to 3 shillings 4 pence, but by J u l y it had fallen to less than 2 shillings 6 pence. T h e dealers of that time reported that "the town is at present f u l l of West India produce." 34 T h e declining tendency in price which was not checked until molasses was selling at 1 shilling 6 pence in February 1 7 6 5 must have caused the merchants some concern. In February 1 7 6 4 , when molasses was at 1 shilling 7 pence, there was " a great quantity in the market." 35 In September, after molasses had sold for less than 2 shillings for fifteen months, another importer recorded, " W h a t I write is merely the effect of the distress I suffer in the most distressing time ever known in Philadelphia." 39 T h e prices of rum started to advance in 1 7 5 5 and 1 7 5 6 , but not as rapidly as those of molasses. At that time a Philadelphia merchant considered sending some rum to New York. " I believe," he wrote, " r u m will fall soon here as it has been kept up for a market and none appears yet. . . . [ I ] soon expect some in . . . [ I ] believe it [will] fall soon and at the same time will keep up among you from the vent of the large army aback." 37 In the fall of 1 7 5 7 rum was still regarded as cheap.38 In 1 7 5 8 , however, rum advanced more rapidly in price until by December it was selling at 5 shillings 6 pence, more than twice as much as in the low year of 1 7 5 5 . In the early part of the following year the price receded, but it advanced again until in August it was " 5 shillings per gallon and like to keep up." 3 9 By October it was selling at 5 shillings 8 pence. This was the dearest that rum had been " M a y 1 7 , 1 7 5 9 , T h o m a s Wharton to his cousin, T h o m a s Wharton, St. Christopher. " N o v e m b e r z i , 1 7 5 9 , T h o m a s C l i f f o r d to T h o m a s T i p p i n g , Guadeloupe; February 8, 1 7 6 0 , to J a c o b G o u l , Antigua. " A u g u s t 1 4 , 1 7 6 0 , Francis and R o l f e to Obadiah B r o w n and Co., Providence. " F e b r u a r y 7, 1764., T h o m a s Riche to H a w l e y and G u r l y , St. Eustatia. " S e p t e m b e r 1 9 , 1 7 6 4 , Daniel Roberdeau to Meyler and H a l l , J a m a i c a . " February 1 7 , 1 7 5 6 , T h o m a s Riche to J a c o b Van Zandt, New Y o r k . " S e p t e m b e r 12, 1 7 5 7 , T h o m a s Wharton to John Carnan, M a r y l a n d . " A u g u s t 1 0 , 1 7 5 9 , T h o m a s C l i f f o r d to Gedney Clarke, Barbados.

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since December 1748 and it never again reached as high a price in the intervening years before the American Revolution. In December 1 7 5 9 , although the newspaper quotation was still slightly above 5 shillings 3 pence, rum was characterized as " d u l l sale and declining in price owing to the quantity made on the continent." 40 There was no substantial check in the ensuing fall of prices until after rum sold for 3 shillings 3 pence in August 1 7 6 1 . D u r i n g this decline, however, the merchants were often expecting a rise in price. In M a y 1 7 6 0 , when rum sold under 5 shillings, it seemed to one merchant that it was "like to rise here unless a quantity comes in soon." 41 Abundant supplies lowered the quoted price to nearly 4 shillings 3 pence by September. Clifford explained that " t h e quantity of rum imported here keeps down the price. F o u r shillings 4 pence is the most I have sold at though I have asked 4 shillings 6 pence." 42 During the next six months there were slight fluctuations in price, but it tended to rise to 4 shillings 6 pence. In March 1 7 6 1 , when it was at this price after having sold for 4 shillings 4 ^ pence for two months, another wholesaler wrote, " I g o t . . . to purchase both spirits and rum which if undone till this day would cost 1 pence per gallon more than it has [cost] here being a great demand of late for those articles which are always ready money with us." 4 3 A f e w days later Clark reported to a Virginia correspondent, " W e s t India rum is very scarce in town, there being a great demand for it from [ N e w ] Y o r k . " 4 4 B y the following month, however, West India rum was selling for slightly more than 4 shillings 3 Yz pence and by August more than a shilling had been subtracted from the price. In the next three years there were wide fluctuations in price. B y January 1 7 6 2 it had soared to 4 shillings 9 pence. T h e decline from this minor peak started immediately. Before the close of the month Thomas Riche hastily wrote to his correspondent, " P r a y send the rum as soon as possible as it is on the decline fast." 4 5 " D e c e m b e r 26, 1 7 5 9 , T h o m a s C l i f f o r d to J o n a s M a y n a r d , Barbados. " M a v 3 1 , 1 7 6 0 , Thomas C l i f f o r d to Samuel Leacock, Barbados. " S e p t e m b e r 1 3 , 1 7 6 0 , T h o m a s C l i f f o r d to J o n a s M a y n a r d , Barbados. " M a r c h 1 1 , 1 7 6 1 , Daniel Clark to W i l l i a m H o w a r d , N e w Y o r k . 44 M a r c h 2 1 , 1 7 6 1 , Daniel Clark to Richard Bently, Virginia. " J a n u a r y 29, 1 7 6 2 , T h o m a s Riche to Samuel T u c k e r , New Y o r k .

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In April it was quoted at 3 shillings 7 pence. During the remainder of the year prices tended to rise, reaching in January 1 7 6 3 , a price slightly above 4 shillings 3 pence. Again the prices slumped. West India rum sold for 3 shillings in August, the first time after 1758 that it had been so cheap. The next winter a scarcity price again prevailed when rum sold for 5 shillings a gallon, but in J u l y 1764 and M a y and June 1 7 6 5 only 2 shillings 7 pence was charged. The severe contraction from the war-time level of prices had been completed in the series of both molasses and rum by 1765. Prices of molasses lifted somewhat above the low price of 1 shilling 6 pence to which they had fallen in February 1 7 6 5 , but from then until the close of 1 7 7 5 molasses was never quoted as high as 2 shillings except in November and December 1 7 6 5 , for four months in the first half of 1766, and in January 1770. T h e highest prices for molasses in the Philadelphia market in these closing years of the era occurred in the last two months of 1765. The price was as high as 2 shillings 6 pence in December. In the next year molasses was quoted at 2 shillings or more in the first two months and again in M a y and June. B y M a y 1767 it was selling as low as 1 shilling 7 pence but rose as high as 1 shilling 1 0 pence by December. The following year prices of molasses kept a trifle higher because it was "much wanted" in the city.44 No particular effect of scarcity appeared in the quotations and the highest price of the close of this year, 1768, was slightly under 1 shilling 1 0 pence. The highest average price for any year from 1767 to 1 7 7 5 occurred in 1 7 7 0 when molasses was sold at 2 shillings in January and fluctuated between 1 shilling 7 pence and 1 shilling 1 1 pence in all other months of the year. At this time Philadelphia merchants felt confidence in the market for molasses but were aware that it must be offered within a moderate price range. T o a correspondent in St. Christopher, Clifford wrote: " Y o u r island molasses would answer always if bought moderate. T h e country people are fond of it.'* 7 N o different market developed for molasses before the close of 1 7 7 5 and the average annual prices of the last five years of the period were close to 1 shilling 9 pence and " J u n e 2, 1768, Thomas Clifford to William and Thomas Smith, St. Christopher. " A u g u s t 1 0 , 1 7 7 0 , Thomas Clifford to William Smith, St. Christopher,

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never over i shilling 1 0 pence. In these years, as in all the period after 1767, the characteristic movement was no more than a mild fluctuation about a sustained level. Unlike molasses, rum was subject to variations in price, especially in the years from 1 7 6 5 to 1 7 7 2 . A l l West India products, including rum, were "rising fast" 48 in the last quarter of 1 7 6 5 . In this rise, rum reached its height of 3 shillings 9 pence and kept as high as 3 shillings or more through April of the next year. After a drop in midsummer it was again at 3 shillings in the late fall. The longest period of rising prices in these closing years occurred from March 1767 to February 1769. At the start of this rise, rum was selling at 2 shillings 8^2 pence. For the most part a steady advance lasted until prices had been raised 8 pence by February 1768. Even the arrival of " a good many vessels . . . together from the West Indies" 49 toward the close of February did not prevent the price of rum from rising to nearly 3 shillings 6 pence by April. In M a y the report of a captain who was trying to market a cargo of beef in the West Indies led to the conclusion that "in all [the] West Indies rum [is] high; produce low." 5 0 T h e fact that rum did not advance further this year was not attributed to its abundance. It was rather connected with the lack of resources of some of the dealers. Clifford wrote in June, " R u m is not plenty, yet as it falls into a great number of hands some of whose circumstances will not permit them to defer the sale, it does not rise as I expected it would." 8 1 Even choice Jamaica spirits, which were priced higher than West India rum were in danger of being sacrificed at 4 shillings 3 pence a gallon because the "person who has it is about reducing immediately if he cannot obtain that price." 82 As late as December, when the price of rum was 3 shillings 6 pence a gallon and rising, it was still reported as "very scarce just now." 58 The rise went on until February 1769 when rum sold for 4 shillings a gallon. B y the next year prices were lower as a result of " November 7, 1 7 6 5 , Thomas Riche to Warner and Blyden. " F e b r u a r y 2 1 , 1768, Orr, Dunlope and Glenholme to Park Henderson and Co., Belfast. " M a y 25, 1768, Orr, Dunlope and Glenholme to Park Henderson and Co., Belfast. " June 2, 1 768, Thomas Clifford to William and Thomas Smith, St. Christopher. " J u n e 18, 1768, Orr, Dunlope and Glenholme to Greg, Cunningham and Co., New York. "December 16, 1768, Thomas Clifford to Thomas and Edward White.

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extra supplies which had reached the city. At the close of this year, 1 7 7 0 , when West India rum was selling for less than 3 shillings, Clifford wrote, " T h e overstock of rum at our market has reduced the

CHART X X — A N N U A L

R E L A T I V E S OF W H O L E S A L E PRICES OF MOLASSES

AND R U M IN P H I L A D E L P H I A ,

1720-1775

(Base—Monthly Average, 1741-1745) price and the prospect is less promising than we expected."" In this he was mistaken. Prices were slightly higher in the next three months. In March and April 1 7 7 1 it sold for 3 shillings 2 pence, and, in June, Roberdeau wrote, " T h e demand for it [rum] is now coming in." 85 The price rose steadily from August to December, ending this year " N o v e m b e r 1 6 , 1 7 7 0 , Thomas Clifford to William Smith, St. Christopher. " J u n e 8, 1 7 7 1 , Daniel Roberdeau to Purcell and Bruley.

MOLASSES AND RUM

207

at 4 shillings 6 pence, the highest it had been since the first months of 1 7 6 4 , when supplies were deficient. T h e r e a f t e r prices of rum declined until M a y 1 7 7 2 . T h e fluctuations in price made the monthly changes unpredictable for most of this year. Correspondents in Jamaica were informed in M a y that even their higher-priced " r u m is got down to 3 shillings 8 pence per g a l l o n , " ' 6 but in a later letter P o l l a r d wrote, " I am sorry I mentioned in my last that rum was got down to 3 shillings 8 pence as it has since advanced to 4 shillings 2 pence and is likely to keep up," 0 7 and in September and even in November it was still expected to be " h i g h during the w i n t e r . ' " 8 T h e price of Barbados rum, which was as usual lower than that of the Jamaica, advanced from M a y to August 1 7 7 2 and was then expected to "continue about the s a m e . " 9 News of the hurricane in a number of the islands brought a flurry in prices of rum and other W e s t India products in October and N o v e m b e r 1 7 7 2 . T h e disaster resulted in a demand for shingles, boards, and other staples in the Islands which speeded up trading" 0 and made " r u m and spirits . . . very p l e n t y " 8 1 here in 1773 and " v e r y slow sale" 1 ' 2 even in the spring of 1 7 7 4 . I n the closing years of the Colonial period, W e s t India rum sold for approximately 3 shillings a gallon. T h e annual prices of rum and molasses emphasize the effect of the Colonial wars. T h e swing in prices of molasses from 1 7 3 9 to 1 7 4 4 coincides with the time when Great Britain and Spain were at war. T h e second swing from 1 7 4 4 to 1 7 5 0 covers the years of the war after F r a n c e joined with Spain and the post-war adjustment. T h e other outstanding movement in the price of molasses, which lasted from 1 7 5 5 to 1 7 6 4 , seems to be connected with the French and Indian W a r . T h e swings in the prices of W e s t India rum tally roughly with those in molasses. Except in years affected by m a j o r wars, prices of rum and molasses were extremely stable. F r o m the early twenties to 1 7 4 8 the molasses " M a y 1 2 , 1 7 7 2 , William Pollard to William Plummer, J a m a i c a . August 1 8 , 1 7 7 2 , William Pollard to George Whitehorn Lawrence, J a m a i c a . K September 1 5 , 1 7 7 2 , William Pollard to William Plummer, J a m a i c a ; November i o , 1 7 7 2 , to George Whitehorn Lawrence, J a m a i c a . " A u g u s t 29, 1 7 7 2 , T h o m a s C l i f f o r d to Jonas M a y n a r d , Barbados. *" October 1 3 , 1 7 7 2 , William Pollard to Peter Holme, Liverpool. 41 August 24, 1 7 7 3 , William Smith to Mercer and Ramsay, New Y o r k . " M a r c h 9, 1 7 7 4 , William Pollard to E d w a r d Barrett, J a m a i c a . 17

208

PRICES

IN COLONIAL

PENNSYLVANIA

series had an upward trend. In the first half of the fifties and from 1764 to 1775 the prices of molasses were maintained at a higher level than that of the two decades before the war with Spain. R u m also in these later peace-time years usually sold at a higher price than in the twenties and thirties. It did not, however, have the upward trend which characterized the price of molasses in those yearsj instead, its fluctuations in price were around a horizontal or even slightly declining trend. T h e rise in price which molasses had gradually made over two decades was equaled in prices of rum between 1739 and 1742. N E W ENGLAND

RUM

R u m distilled in New England was quoted regularly in the Philadelphia papers from April 1739 to the Revolution. W h e n it first appeared it was 19.7 per cent cheaper in price than the rum from the West Indies with which it was competing. Throughout all the years from 1739 to 1776 New England rum continued to sell for less than that from the Islands. T h e two differed less in type and timing of fluctuations than in price per gallon. Both rose moderately in the last four months of 1739 and maintained the higher levels through March 1740; then N e w England rum dropped back to the levels of April to August 1739, to which it adhered from April through October 1740. Though there was no marked change of level in the prices of N e w England rum, it never again, in the Colonial era, dropped back to as low a price as it sold for in the months before the declaration of war with Spain and in seven months in 1740 when the price was 1 shilling 8 pence per gallon. There were only three periods of marked fluctuation in the prices of N e w England rum between 1740 and 1775. These occurred at the times of similar swings in the West India product. T h e first was in the thirty-one months from October 1740 to M a y 1743. T h e second might be dated from the end of 1746 to March 1749 and the third from the last quarter of 1755 to February 1765. N e w England rum, in the Philadelphia market, started the upswing of the early forties after the prices of West India rum had advanced. In October 1740, N e w England rum was selling at 1 shilling

MOLASSES AND

RUM

209

8 pence when 2 shillings 8 pence was the current price for West India. Both reached the peak of their rise in December 1 7 4 1 . At this time New England rum sold for 3 shillings pence while West India brought 3 shillings 1 0 pence. In 1742, New England rum fluctuated more in price than the extensively used Islands rum. It reached its low of 2 shillings 2 pence in March 1 7 4 3 , five months ahead of the comparable low in West India rum. From 1743 to 1746 the tendency of prices of New England rum was mildly upwards, though toward the end of 1746, when prices were declining, Powel wrote, "Bills on Boston and Rhode Island will not do as we can have nothing from thence but to a great loss." 83 This condition was more fully explained in a later letter. " T h e y do send vessels from both Rhode Island and New England hither to purchase wheat, flour, pork, and Indian corn but they are at so great a loss for any commodities to send here for purchasing, that their vessels come generally empty, or if they bring New England rum, which sometimes they do, it will seldom yield more than their own money and often not so much, so that they are obliged to pay for what they buy chiefly in bills [ o f ] exchange on England, or silver or gold. Necessity obliges them to deal with us, but we have no occasion for any goods they have and I cannot, as I said above, think of anything can be had at Rhode Island that is like to do here." 94 In the last two months of 1746 New England rum was quoted at 2 shillings 7 pence, but, like West India rum, it soared in 1747 and the first two months of 1748 until it sold for 4 shillings 3^2 pence in February 1748. After a severe decline, its price rose to an even higher level of 4 shillings 7 pence in December 1748. In four months prices of New England rum had dipped as low as 2 shillings 4 pence. Between this time and 1 7 5 5 or 1 7 5 6 there is no evidence in prices of any strong demand for the rum distilled in New England. It was more in demand in 1 7 5 7 and 1758 and, in three peaks in 1 7 5 9 and 1760, sold at levels well above 4 shillings. From this last peak, June 1760, a persistent declining tendency lasted until February 1765. During the course of this decline the merchants had difficulty in disposing of all the supplies from Providence, and a shipment of " September 24, 1 746, Samuel Powel, J r . to Gabriel Manigault, South Carolina. June 29, 1747, Samuel Powel, J r . to Gabriel Manigault, South Carolina.

64

210

PRICES

IN COLONIAL

PENNSYLVANIA

N e w England rum was " a l l stored, not being at present in demand.'" 5 By February 1765 N e w England rum could be bought in Philadelphia for 1 shilling 10 pence. Y e t this low price was not expected to last as it was anticipated rum would be in "demand for the harvest.'""' N o marked demand developed in this or later Colonial years and N e w England rum fluctuated a few pence above 2 shillings, except for an occasional month or two, for the remaining years of the period. P E N N S Y L V A N I A AND P H I L A D E L P H I A

RUM

Pennsylvania rum, for which prices are available from 1752 to 1775, and Philadelphia rum, for which there are prices from 1766 to 1 7 7 5 , were doubtless in wide use in country consumption at an early date, as is indicated in the comment to Barbados in 1743 that one-half of the spirits used by country people in Pennsylvania was distilled by them for domestic consumption. 67 T h e regular inclusion of the local rum in newspaper prices current indicates that by 1752, at least, it was being traded to other areas. T h i s inference is supported by the fact that in 1759 more than 1,100 gallons of Philadelphia rum were specified in the exports and by 1763 as much as 52,290 gallons. From 1752 to 1755 the prices of Pennsylvania rum were at a slightly higher average and more stable than those of N e w England. Later the two series show nearly similar fluctuations and competed at approximately the same price. T h e second grade of rum of local distillation, that is, Philadelphia, differs little from that termed "Pennsylvania." Its prices have been kept separate merely because the quotation of both in different categories seems to imply that there was some choice between the two. In this record the two series are available at a time when the three grades of Colonial rums were following a horizontal trend with minor fluctuations of little moment. Their relation to the prices of molasses, West India rum, and domestic produce will be discussed in the following comparisons, since it is important to indicate that the domestic rums were relatively, as well as absolutely, lower than the West India product after the middle of the 1760's. " D e c e m b e r 9, 1762, Francis and Rolfe to Nicholas B r o w n and Co., Providence. " M a y 4, 1 7 6 5 , Francis and R o l f e to Nicholas B r o w n and Co., Providence. " M a y 3 1 , 1743, Samuel P o w e l , Jr. to T h o m a s Hothersall, Barbados.

MOLASSES THE

EXCHANGE

AND

211

RUM

R A T I O O F M O L A S S E S FOR

RUM

From 1720 to 1727 rum was relatively much higher priced than molasses. Usually about 2 gallons of molasses were equivalent in price to a gallon of rum. For more than a decade rum declined in value. In the years from 1728 to 1735 about 1.75 gallons of molasses would exchange for a gallon of rum. T h e relatively lowest values of rum occurred from 1735 to 1739 inclusive when, on the average, 1.5 gallons of molasses were all that was required in exchange for a gallon of rum. Although in subsequent years West India rum appreciated in value in terms of molasses, it never reached as high a level as in the first eight years of the period. From 1740 to 1755 the exchange ratio between these commodities was usually from 1.6 to 1.7 gallons. T h e greatest deviation was in 1745 and 1746 when between 1.2 and 1.4 gallons of molasses would suffice in exchange for a gallon of rum and from 1749 to 1751 inclusive when rum was relatively so dear that more than 1.8 gallons of molasses were required to buy a gallon of rum. In these latter years molasses declined at a swifter pace than rum. From 1755 to 1758 molasses advanced in price more rapidly than rum with the result that usually less than 1.5 gallons of molasses could be bartered for a gallon of rum. T h e years from 1759 to 1 7 7 5 were characterized by a relationship between rum and molasses about the same as from 1728 to 1735 and substantially higher than from 1735 to 1758. In these closing years between 1.6 and 1.9 gallons of molasses were equivalent in price to a gallon of W e s t India rum. In general, the prices of N e w England rum followed closely those of molasses. As a result the ratio between the price of this grade of rum and of molasses has not the variations discernible when W e s t India rum is related to molasses. Usually 1.25 gallons of molasses would exchange in the Philadelphia market for a gallon of N e w England rum. Similar ratios would describe the relationship of Philadelphia and Pennsylvania rum and molasses. T h e lowness of this ratio in contrast with the ratios of W e s t India rum indicates the difference in price between imported and continental rum, which tended to widen near the close of the period.

212

PRICES

IN COLONIAL

PENNSYLVANIA

In 1745 and 1746, when molasses was relatively dearer than West India rum, slightly more than a gallon of molasses would buy a gallon of N e w England rum. F r o m 1749 to 1 7 5 1 , when molasses declined more rapidly than W e s t India rum, the price of N e w England rum was also better sustained than that of molasses, with the result that from about 1.33 to 1.5 gallons of molasses were equivalent in value to a gallon of N e w England rum. It is to be expected that such relationships would exist among these commodities. In general, the price of the domestic article would be most affected by the price of its imported raw material, but in periods of scarcity of imported rum the available stocks of continental rum might command a higher price than that justified by the cost of molasses or in times of ample supply of the imported, the domestic might be sacrificed below its usual level. These relationships were accepted by merchants and commented upon when there was any substantial deviation from the usual proportions." T H E E X C H A N G E R A T I O OF MOLASSES AND R U M FOR F L O U R

T h e relation of molasses to flour, entangled as it is with conditions in Pennsylvania and the W e s t Indies and with the important trade between these localities, does not show a clear trend during the period from 1720 to 1775. Instead there appears to be one movement from 1720 to the middle forties which overshadows fluctuations from year to year, and a similarly dominant but reversed movement from the forties to the outbreak of the American Revolution. O n the basis of the average annual price of flour and molasses in 1720, slightly less than 7 gallons of molasses could be bartered in the Philadelphia market for a hundredweight of flour. This relationship is typical of conditions in the decade of the twenties. D u r i n g the ensuing years the price of molasses tended to increase in relation to that of flour. In the twenties the ratio had never fallen below 6.64 gallons, but in five years in the thirties less than this quantity was exchangeable for one hundredweight of flour. T h i s underlying tendency of prices of molasses to rise in terms of flour culminated in the years 1742 to 1747 inclusive when the price of molasses was relatively so high that " M a y 3, 1765, Francis and Rolfe to Nicholas Brown and Co., Providence.

MOLASSES

AND

RUM

213

between 3.42 gallons and 4.82 gallons of this commodity would exchange for a hundredweight of flour. During the remainder of the Colonial period an opposite tendency prevailed. Thus between the years 1 7 4 8 and 1 7 6 1 there were only two years when the price of 4.5 to 5 gallons of molasses equaled that of a hundredweight of flour. T h e typical relationship was for 6 to 7 gallons of molasses to barter for 1 1 2 pounds of flour. This corresponds with the terms of the exchange of these two articles in the decade of the 1720's. T h e relative value of molasses continued to decline from 1 7 6 2 to 1766. T h e n the ratio was from 7.34 to 8.51 gallons of molasses to one hundredweight of flour, while from 1 7 6 7 to 1 7 7 5 the disparity was further increased, from 8.45 to 1 1 . 5 8 gallons being the terms of exchange in the Philadelphia market. West India rum maintained a more stable relationship to flour than did molasses. During the 1 7 3 0 ' s when molasses was growing dearer there was some tendency for rum to become cheaper in terms of flour. In the forties rum corresponded with molasses, both increasing in value. From 1 7 2 0 to 1 7 4 1 inclusive from 3 to 5 gallons of West India rum were required in the purchase of 1 1 2 pounds of flour, but from 1 7 4 2 to 1 7 4 7 inclusive 2.24 to 3.02 gallons would sufficc. In the years between 1 7 4 8 and the Revolution, West India rum declined in value, but not to the extent that molasses did. T h e fluctuations around this basic tendency were similar in both commodities except from 1 7 5 3 to 1 7 5 5 and from 1 7 5 7 to 1 7 5 9 . M o lasses increased its relative value in 1 7 5 3 , but declined in the next two years. In 1 7 5 5 , however, it was dearer than in 1 7 4 9 and 1 7 5 0 . T h e West India rum, in contrast, declined continuously from 1 7 5 1 to 1 7 5 5 . At its lowest point it was cheaper in terms of flour than it had been in 1749. T h e second disparity between molasses and rum developed in the next few years. By 1 7 5 7 molasses had advanced in relation to flour until it was dearer than at any other time after 1 7 4 7 . A f t e r reaching this peak, molasses again declined in value. West India rum, on the other hand, had not increased as rapidly in terms of flour from 1 7 5 5 to 1 7 5 7 as had molasses, but it continued to increase until 1 7 5 9 , two years after molasses had reached its peak.

214

PRICES

IN COLONIAL

PENNSYLVANIA

T h e gradual decline in the value of West India rum is shown by the fact that in most of the years in the 1750's from 3.5 to 4.5 gallons of rum would exchange for a hundredweight of flour. In the next decade there was more concentration between 4 and 5 gallons, while in the six years preceding the American Revolution from 5 to 6 gallons of rum could be secured for a hundredweight of flour. N e w England rum in the years from 1739 to 1 7 7 5 , when its prices are available, lay between the value of molasses and that of West India rum with respect to its ratio to flour. In general, the movements of the prices of N e w England rum followed those of molasses more closely than did West India rum, especially in the decline in value in relation to flour in the latter part of the period. In 1740 and 1741 a hundredweight of flour could be purchased with 4.82 and 5.55 gallons of N e w England rum. During the next six years New England rum was so high in relation to flour that from 2.77 to 3.87 gallons of this rum equaled the value of a hundredweight of flour in the Philadelphia market. In the decade of the fifties more than 5 gallons of N e w England rum were usually required in exchange for one hundredweight of flour. T h e continuation of the decline in the relative values was so great that in the sixties more than 6 gallons were usually required and often over 6.5 gallons. In the years immediately preceding the Revolution the least amount of N e w England rum needed in exchange for a hundredweight of flour was between 7 and 7.25 gallons, but usually more than 8 gallons were exchanged. T h e Philadelphia and Pennsylvania rums were about equal in price to that of N e w England and fluctuated in the same way so that they bartered for flour in much the same ratio.

CHAPTER PRICES OF O T H E R

WEST

IX INDIA

PRODUCTS

Sugar, molasses, and rum constituted the bulk of the trade between the W e s t Indies and Philadelphia. In addition, the ships usually carried small quantities of more compact and comparatively more valuable merchandise, especially g i n g e r , pimento, indigo, and cotton. T h e imports of these minor products of the W e s t Indies were not confined to amounts needed f o r local consumption but were large enough to permit trading with other colonies and with G r e a t Britain. So extensively and continuously were these products sold in the Philadelphia market that it is possible to examine their m o v e ments in prices, a l t h o u g h to a somewhat lesser extent than f o r the m a j o r products of the Islands. Jamaica ranked above the other British W e s t Indies in the g r o w t h of these subsidiary commodities. In fact, as early as 1728 it was pointed out that "its principal productions besides sugars are cotton, ginger, pimento, m a h o g a n y wood, l o g w o o d , and indigo." 1 O f these commodities, series of prices are available for g i n g e r , pimento, indigo, and cotton. T h e prices of g i n g e r and pimento are significant because they were the only spices produced in the W e s t Indies and the only ones imported into P h i l a d e l p h i a chiefly f r o m the country of origin. O t h e r spices came by w a y of the D u t c h and E n g l i s h importers f r o m the East Indies. GINGER Continuous prices of ginger were quoted in the P h i l a d e l p h i a market f o r only short intervals. In 1 7 2 1 race or root g i n g e r was 34 shillings 6 pence a h u n d r e d w e i g h t of 1 1 2 pounds f o r most of the year, but dropped to 1 9 shillings in N o v e m b e r . It continued to decline in price, for a l t h o u g h it sold at 19 shillings f o r all of 1 7 2 2 , 1 Boyer's "Political State of Great Britain," Vol. X X V , February 1728 in Anderson, Origin of Commerce, Vol. I l l , p. 398.

215

216

PRICES

IN COLONIAL

PENNSYLVANIA

it had dropped to 1 7 shillings 3 pence by M a y 1 7 2 4 . Sometime after January 1 7 2 5 ginger increased in price. B y J u l y 1 7 2 8 it was selling for 28 shillings a hundredweight. T w o months later it advanced to 29 shillings. E a r l y in the next year it was reported scarce and no price was given. T h e most consecutive account of prices of ginger in Philadelphia runs from 1 7 3 1 to 1 7 4 5 . At the beginning of this fifteen-year period of active trading in ginger its price was 30 shillings a hundredweight. B y summer the price had been raised 2 shillings. Between September 1 7 3 1 and June 1 7 3 2 ginger was relatively cheap and sold between 22 and 26 shillings, but by August its price was higher than in the previous year. During the closing months of 1 7 3 2 and the first months of 1 7 3 3 the prevailing price was 35 shillings. Thereafter a declining tendency dominated the movements of ginger for approximately a year and a half until its price was reduced to 27 shillings in J u l y 1 7 3 4 . In the fall ginger again advanced to 3 5 shillings, and it reached 37 shillings 6 pence in the following June. Again prices sagged. B y February 1 7 3 6 ginger was priced at 28 shillings. T h e increase from this rather low level was more gradual than the previous rise. It was a year before ginger again sold for 3 5 shillings. During M a y and June 1 7 3 7 , however, the price was 40 shillings. F r o m some points of view recessions such as those of 1 7 3 1 , 1 7 3 4 , and 1 7 3 6 may be regarded as temporary interruptions to an upward movement in prices which began about the middle of the previous decade. During these years the trade in this commodity was relatively small. T h e only available information shows that in 1 7 3 0 about 53 hundredweight were imported, in 1 7 3 4 only 1 5 hundredweight, and in 1 7 3 6 , when there is no specific information about the imports, 85 hundredweight were re-exported. It is significant that in 1 7 3 4 , when the imports were less than a third of what they had been four years earlier, the price of ginger rose rapidly and that in 1 7 3 6 the price was evidently so low that it was more profitable to ship it to other markets than to store it in Philadelphia. T h e protracted decline from the peak of prices in 1 7 3 7 was broken by a short run-up in the prices of ginger in the latter part of 1 7 3 9 . F r o m J u l y to October of that year ginger sold for as much as 3 2

OTHER

WEST

INDIA

PRODUCTS

217

shillings, after having been priced at 27 shillings in January. B y the beginning of 1 7 4 0 , ginger was quoted at 25 shillings, the lowest it had been in nearly eight years. For more than three years, with only occasional variations, this was the prevailing price of ginger. In 1 7 4 3 , especially after April, ginger dipped in price, dropping as low as 16 shillings per hundredweight in the fall of that year. It was not until J u l y 1 7 4 4 that prices regained the level of 25 shillings which was held throughout the remainder of that year and all of 1 7 4 5 . In subsequent years ginger was never quoted in the prices current. From merchants' records it is possible to obtain only a sketchy account of the behavior of prices of ginger. In 1746 Powel felt that " a little ginger would also sell well in Philadelphia." 2 Ten years later race ginger sold for 26 shillings a hundredweight, but advanced during the year to 35 shillings in October 1 7 5 6 , when ginger was "scarce." 3 Before the close of the year ginger sold for 26 shillings a hundredweight, but in the spring of 1 7 5 7 it was again reported to be scarce. A year later a Philadelphia merchant wrote, " T h e race ginger which he advised thee was to be had from 28 shillings to 3 2 shillings was sold before thy order for purchase came to hand and [ I ] have not been able to meet with any since, but expect the first Jamaica vessel will bring [some] of that article." 1 T h e r e is no evidence that ginger sold above these prices later. Probably the fluctuations were limited to a range of from 20 to 28 shillings per hundredweight since the price was no higher than 28 shillings in 1 7 6 1 and was as low as 20 shillings in 1 7 6 3 . E v e n in the early seventies ginger sold for 27 shillings. PIMENTO

T h e other spice which came from Jamaica was pimento, referred to in many accounts as "allspice." From a mercantilist point of view, the supply of pimento from Jamaica was prized because, as a contemporary pointed out, it "lessens the consumption of spices which are only to be had of the Dutch at their own rates."® ' F e b r u a r y 8, 1746, Samuel Powel, J r . to Thomas Stratton, Jamaica. * October 14, 1 7 5 6 , Thomas Wharton to Gerard G. Beekman, New York. ' A p r i l 14, 1 7 5 8 , Thomas Wharton to Gerard G. Beekman, New York. * Boyer in Anderson, loc. cit.

218

PRICES

IN COLONIAL

PENNSYLVANIA

The movements in the price of pimento differed somewhat from those of ginger. In the first place, the range of its fluctuations was greater; secondly, it did not show the advance from 1 7 3 4 to 1 7 3 7 which characterized the price of ginger. The maximum price of pimento in 1 7 3 4 , the year the newspaper quotations first appear, was 18 pence a pound. Although this price reappeared several times in 1 7 3 5 and once as late as December 1 7 3 7 , the direction of the underlying movement was downward. By December 1 7 4 0 the price had fallen to 1 0 pence a pound, which was the prevailing price for nearly a year. At the close of 1 7 4 1 and during the early part of 1742 there was a rally in which prices rose as high as 1 4 pence a pound, but the usual price from December 1 7 4 0 to March 1 7 4 3 was 12 pence. During April and M a y 1 7 4 3 pimento sold for 5 pence, the lowest price at any time when quotations are known. From this depressed level it advanced in price for three years until it sold for 1 3 ^ pence in April 1746. From this peak, prices declined intermittently until in the fall of 1 7 4 7 pimento could be purchased for 7 pence a pound. T h e greatest rise in price occurred during the closing months of the war with France and Spain and even after the Treaty of Aix-la-Chapelle. After pimento had been quoted at 8 pence a pound in the closing months of 1747 and the first part of 1748, it advanced rapidly, selling for 1 4 pence in September and October, 18 pence in December, and 20 pence from February to April 1749. During the next two years pimento was not quoted in the price lists of the Philadelphia market; although it had been apparently declining in price in M a y and June 1749, it was again quoted at 20 pence a pound from J u l y until October 1 7 5 1 . From 1 7 5 2 to 1 7 5 5 pimento usually sold between 16 and 18 pence a pound, although in two months it dropped as low as 13 pence and once rose to 20 pence. From 1 7 5 6 to 1 7 6 0 the decline was more rapid. Nevertheless, there were substantial variations in price within each year. These were largely caused by the relatively small amount of pimento in the market and the time required to import additional supplies to relieve a scarcity. For example, early in J u l y 1 7 5 6 a Philadelphia

OTHER

WEST

INDIA

PRODUCTS

219

merchant bought 1 , 2 0 0 pounds of allspice at 1 2 ^ 2 pence a pound to re-export. 6 This evidently cleared out the supply. Before the end of the month another merchant reported that there was little pimento in the market. 7 B y October it was quoted at 16 pence a pound, an advance of pence in three months. T h e next three years brought about similar wide fluctuations, although on progressively lower levels. After pimento dropped to 9 pence a pound in August 1 7 5 9 , its range of price fluctation decreased. F o r the rest of that year and in 1 7 6 0 pimento usually sold between 9 and 1 0 pence a pound, the low price recurring in September 1 7 6 0 . Compared with the swings in the years 1 7 3 4 to 1 7 6 0 , the prices of pimento were relatively stable from 1 7 6 0 to 1 7 7 5 . During 1 7 6 1 and 1 7 6 2 pimento was quoted almost continuously at 1 0 pence a pound. T h e next year merchants sold it between 10^2 and 1 2 pence per pound. In that year pimento, as well as many other West India products, was in demand. 8 At the close of 1 7 6 4 another merchant was selling pimento at 1 1 pence per pound and had " a pretty brisk sale." 9 This was a typical price during the next four years, although there was a slight downward tendency, especially in 1 7 6 8 , when 1 0 pence was quoted in several months. B y 1 7 7 1 , after pimento had sold for 8 or 9 pence from June to September, it became " v e r y scarce." 10 During the early seventies pimento usually sold between 7 y 2 and 1 0 pence, its lowest prices occurring in 1 7 7 2 and 1 7 7 3 . In the following year there was a slight downward tendency, but in 1 7 7 5 the price of pimento was raised to 1 2 pence. INDIGO

T h e only dyestuff for which adequate prices in the Colonial period could be secured is indigo. Although some was being raised in the Carolinas, the grade usually sold in Philadelphia came from the West Indies and often it was specified as "French indigo." T h e prices " J u l y 3, 1 7 5 6 , Thomas Wharton to Gerard G. Beekman, New York. ' J u l y 19, 1 7 5 6 , Thomas Riche to Jacob Van Zandt, New Y o r k . " M a y 1 0 , 1 7 6 3 , Philip Benezet and Ogden & Hewes to captain of the sloop "November 30, 1 7 6 4 , Daniel Roberdeau to Meyler and Hall, Jamaica. 10 October 1, 1 7 7 1 , William Smith to Comfort Sands.

Sally.

220

PRICES

IN COLONIAL

PENNSYLVANIA

CHART X X I — M O N T H L Y

R E L A T I V E S OF W H O L E S A L E

(Base—Monthly

OTHER WEST INDIA

PRODUCTS

221 PER C E N T

PRICES OF I N D I G O IN P H I L A D E L P H I A ,

Average, 1741-1745)

1731-1763

222

PRICES

IN COLONIAL

PENNSYLVANIA

current listed indigo from 1731 to 1763, with occasional gaps. Indigo was comparatively cheap in 1 7 3 1 , and in the first part of 1732 it fell still lower to 3 shillings 6 pence a pound. By August it had increased to 5 shillings 9 pence, but before the end of the year it had settled to 5 shillings, which was the prevailing price during the next year. In 1734 the price doubled, indigo selling at 10 shillings by December. T h i s price held to March 1737 except for several months of recession in 1735 and 1736. In April 1737 the price dropped to 6 shillings 9 pence. During the next six years there were considerable variations in price around an average of 7 shillings 6 pence. T h e price was especially low in 1740 when indigo sold for six months at 6 shillings a pound. In the next two years a substantially higher price was paid. From M a y 1741 to February 1743 indigo never sold below 8 shillings. By N o vember 1743 prices of indigo had been lowered to 6 shillings 9 pence. In spite of a brief rally in the summer of 1744 and again in 1747, indigo tended to become cheaper until in the latter part of 1748 it was quoted at 5 shillings. This was the only time between 1733 and the Revolutionary W a r that indigo sold at such a low price. T h e advance in price during the next three years was more rapid than the decline from 1743 to 1748. B y the close of 1749 indigo had advanced 2 shillings a pound, or from 5 to 7 shillings. By the next September indigo was selling at 9 shillings 6 pence, but it fell immediately to '7 shillings 6 pence, a price which held for the next seven months. B y July 1751 indigo was quoted at 14 shillings, and although it fell back to 10 shillings in the next three months it returned to 14 shillings for five months in 1752 and January 1753, when it was scarce in the Philadelphia market. 11 B y the following summer indigo had again declined to 10 shillings. Even this price must be considered abnormally high, except for the years from 1751 to 1757. In 1754 indigo sold for 11 to 12 shillings a pound. In the next year it never dropped below 12 and in the months from June to August soared to 15 or 16 shillings. For the next four years prices tended to decline. In 1756 indigo varied from 10 to 14 shillings 11

September 27, 1752, T h o m a s Wharton to James Beckham, Lancaster, Pennsylvania.

OTHER

WEST

INDIA

PRODUCTS

223

a pound; in 1 7 5 9 from 8 shillings 3 pence to 1 2 shillings; in 1 7 5 8 from 8 to 1 0 shillings; and in 1 7 5 9 from 7 to 8 shillings 3 pence. E v e n though the prices in 1 7 5 6 and 1 7 5 7 tended to be lower than in the years immediately preceding, it was still referred to as "scarce" and " d e a r " in the letters of Philadelphia merchants. 12 It was probably the unparalleled scarcity and high prices of indigo in the years 1 7 5 1 to 1 7 5 7 that influenced Wharton to write, " I f there should be any good French indigo to be sold [ I ] should rather have it than a bill of exchange." 1 3 Underlying the variations in prices of indigo from 1 7 5 9 to the Revolutionary War, there was a strong upward tendency. In some years this appears magnified, especially from 1 7 6 9 to 1 7 7 2 . From 1 7 5 9 to 1 7 6 2 indigo sold at a low level compared to its other prices between 1 7 5 1 and 1 7 7 5 . T h e variations were within a range of 7 shillings to 8 shillings 9 pence. In 1 7 6 3 indigo was again scarce14 and the price varied between 8 and 1 0 shillings. In the remaining years before the Revolutionary W a r the Philadelphia papers never quoted indigo in the prices current. It is striking that the Act of Parliament levying a duty of 6 pence sterling a pound on indigo of foreign growth took effect September 29, 1 7 6 4 . " T h e resentment of merchants against this l e v y is shown by a quotation from the letter of a Philadelphian who instructed his correspondent in St. Eustatia: " P r a y don't send any goods subject to duty for us by any other vessel than what we shall order. Six pence per pound sterling duty on indigo is a monstrous charge." 1 6 T h e account books and letter books of Philadelphia merchants which have been frequently used as sources in months when newspaper prices were not available provide an account of prices which at least shows the levels of the separate years after 1 7 6 3 . In 1 7 6 4 indigo sold between 7 shillings 9 pence and 9 shillings 3 pence; in the next three years between 7 shillings 9 pence and 1 0 shillings. " M a y 28, 1756 and June i6, 1 7 5 7 , Thomas Wharton to Gerard G. Beekman, New Y o r k ; July 28, 1756, Thomas Rirhe to Jacob Van Zandt, New Y o r k ; June 20, 1757, Thomas Wharton to George Trenchard. " J u n e 8, 1 7 5 6 , Thomas Wharton to John Franks, Halifax, England. " September 10, 1 7 6 3 , Francis and Rolfe to Nicholas Brown, Providence. 15 McPherson, David, Annals of Commerce, Vol. I l l , p. 396. " F e b r u a r y 24, 1769, Hollingsworth and Rudulph to Patterson and Buckley, St. Eustatia.

224

PRICES

IN COLONIAL

PENNSYLVANIA

CHART X X I I — M O N T H L Y

R E L A T I V E S OF

WHOLESALE

(Base—Monthly

OTHER

WEST INDIA

PRODUCTS

225 PERCENT

PRICES O F C O T T O N IN P H I L A D E L P H I A ,

I731-1775

226

PRICES

IN COLONIAL

PENNSYLVANIA

In 1 7 6 9 , when indigo was " i n very great demand," 1 7 and in the following years to 1 7 7 2 , prices several times were as high as 1 1 shillings. T h e r e was but a slight decline from this high level in the years from 1 7 7 3 to 1 7 7 5 when the usual price was 1 0 shillings. Such a price was considered high by Philadelphia merchants. 18 Usually from a pound to a pound and a half of indigo could be purchased with a hundredweight of flour. In 1 7 3 2 and 1 7 3 3 indigo was relatively so cheap that more than pounds could be purchased. T h e years when indigo was cheapest were 1748 and 1 7 4 9 when about 2 % pounds could be purchased with the unit of flour. Again in the late 1 7 5 0 ' s and early 1760's more than 1 % pounds and once even more than 2 % pounds of indigo were given in exchange for one unit of flour. T h e highest prices of the period occurred in 1 7 5 2 , when less than a pound of indigo was equivalent in value to a hundredweight of flour, and in 1 7 3 6 , 1 7 3 9 , and 1 7 5 5 , when a trifle over a pound could procure a hundredweight of flour. COTTON

T h e prices of cotton are available from 1 7 3 1 to 1 7 7 5 . During these years there were frequent fluctuations, but they are overshadowed by outstanding swings in price. F r o m 1 7 3 1 to 1 7 3 2 the price declined slightly. I n M a y of that year, when cotton was at 1 0 pence a pound, it sold for as low a price as was reported in the pre-Revolutionary period. There was a general upward movement from 1 7 3 2 to 1 7 3 8 , broken by a slight recession in 1 7 3 4 and again in 1 7 3 5 , when it dipped to 1 0 pence in one month. Twice in the f a l l of 1 7 3 8 cotton was quoted at 18 pence and for the next year and a half it held firm at 1 6 pence. As late as J u n e 1 7 4 1 fluctuations continued near this level, but in the next three months the price contracted again to 1 0 pence. F r o m September 1 7 4 1 to April 1 7 4 4 prices were comparatively low. T h e prevailing price was a shilling a pound. T h e transition to the higher level of the later forties was accomplished in two steps; from J u n e 1 7 4 4 to December 1 7 4 5 prices fluctuated around 1 6 " N o v e m b e r 4, 1 7 6 9 , Hollingsworth and Rudulph to Patterson and Buckley, St. Eustatia. " J u n e i i , 1 7 7 1 , William Smith to Gerard G . Beekman, New Y o r k .

OTHER

WEST

INDIA

PRODUCTS

227

pence a pound, while from February 1 7 4 6 to M a y 1748 cotton tended to sell for 2 shillings a pound, although it frequently dropped below this level. In the latter part of 1748 and the first four months of 1 7 4 9 the quotations were near 18 pence. T h e sharp drop in 1748 was occasioned by the arrival in port of three prize vessels loaded in part with cotton.19 T h e upswing of the third major movement was more gradual than the preceding one. B y June 1 7 5 1 cotton had advanced to 2 shillings 4J/2 pence. T h e decline from this was such that a year later cotton could be bought in Philadelphia for 2 shillings and by November 1 7 5 2 for 18 pence. Slightly higher prices prevailed in 1 7 5 3 ; in some months cotton rose to 2 1 pence, but in the first part of 1 7 5 5 it receded to 16 pence. In general, prices remained low until well into 1 7 6 2 . During these years cotton sold for as little as 1 5 pence and as high as 2 1 pence, but for the greater part of the time the price fluctuated between 16 and 18 pence. These prices, low in comparison to those of the years immediately preceding and following, are high in relation to prices in the decade of the thirties and early forties. T h e last important swing in the prices of cotton started from this low level. By J u l y 1 7 6 2 the price had nearly doubled. In that month cotton commanded 2 shillings 1 0 pence a pound, the highest price known in Colonial years. A rapid shrinkage in price followed. By April 1 7 6 3 cotton had fallen to 1 7 pence, but by the following October it had rebounded to 2 shillings 3 pence. In general it can be said that a high average of prices characterized the years from 1 7 6 2 to 1 7 6 7 . Cotton was scarce in 1 7 6 6 , as appears from the interest of Clifford in cotton from the British island of Tortola. H e wrote in the middle of 1 7 6 6 : " I find there is but little cotton in this city. Unless a quantity should arrive much greater than I know of any reason to expect, I believe if thine is good it would retail at 2 shillings 6 pence per single pound. Some is bespoke at that price. T h e y ask for Tortola cotton. As I never heard of much raised at St. Croix and that island is so near the former, I suppose it is T o r tola cotton." 20 " J u n e 1 0 , 1 7 4 8 , John S w i f t to his uncle, J o h n White, London. J u l y 1 7 , 1 7 6 6 , T h o m a s C l i f f o r d to Gerard G . Beekman, N e w Y o r k .

20

228

PRICES

IN COLONIAL

PENNSYLVANIA

During the first part of 1767 cotton was still selling above 2 shillings a pound. From 1767 to September 1768 the price held near 21 pence. By January 1770 it had fallen to 14 pence. This was as cheap as cotton sold in any month after 1744.

CHART X X I I I — A N N U A L

R E L A T I V E S OF W H O L E S A L E

C O T T O N IN P H I L A D E L P H I A ,

(Base—Monthly Average,

PRICES

OF

1731-1774

1741-1745)

During most of the time between 1770 and the first quarter of 1773 the price fluctuated between 14 pence and 16 pence. In 1773 and 1774 the extent of the fluctuations increased, the price rising as high as 19^2 pence, only to drop back to 15 pence. In December 1774 the price of cotton sharply advanced from 16 to 22 pence and in 1775 rose above 2 shillings. T h e relation between the price of cotton and that of flour was such that in 1731 slightly more than 7 pounds of cotton could be purchased with a hundredweight of flour. From 1732 to 1738 cotton was much cheaper. In fact, in three of these years more than 10 pounds of cotton could be procured with a hundredweight of flour. In 1739 and 1740 cotton became much dearer—between 6 and pounds was all that could be obtained. This peak of value was followed by two years of extremely low prices when between 1 0 % and pounds of cotton was the equivalent in value of 112 pounds of flour. In the next years cotton again appreciated in

OTHER

WEST

INDIA

PRODUCTS

229

value until in 1 7 4 6 and 1 7 4 7 about 5 pounds of cotton were equivalent to a hundredweight of flour. In the next two years cotton fell in value until 1 0 pounds of it were required in exchange for a unit of flour, while in 1 7 5 1 the ratio had rebounded to 5^3 pounds. From 1 7 5 1 to 1 7 7 5 cotton tended to decline in value. B y the middle of the fifties nearly 1 0 pounds could be purchased with 1 1 2 pounds of flour j in 1 7 6 0 about pounds. During part of the sixties there was a slight gain in value, as little as 8^4 pounds being equivalent to a hundredweight of flour, but by 1 7 6 9 approximately 1 r pounds was the barter ratio. In the next three years cotton declined to such an extent that nearly 1 6 pounds were given in exchange for a hundredweight of flour.

CHAPTER

X

PRICES OF STAPLE COMMODITIES IMPORTED FROM EUROPE Philadelphians relied upon imports from Europe for many kinds of merchandise. It was in this manner that the colonists obtained most of their fine fabrics, glassware, house furnishings, and ironware. Such commodities were never quoted in the prices current. In addition, there were more staple products which were sufficiently well graded and sold often enough in large quantities to warrant listing in the weekly summaries of prices. Among such commodities were wine from Madeira, salt from England and from Portugal, gunpowder from England, and pepper and tea, which usually reached Philadelphia by way of London. MADEIRA

WINE

T h e general course of prices of Madeira wine in Colonial years is fairly easy to state. If one were to apply a straight line trend to the 56-year period, the movement would be steeply upward, rising higher in each successive decade. Such a trend, however, would be a pure fiction in terms of the process by which prices rose. W h a t the chart of the relatives of Madeira wine really shows is a nearly level curve of prices from 1720 until after the first quarter of 1 7 4 1 , with a mild upward tendency. In these years the price of Madeira wine varied between £18 and, at most, £22 a pipe of 110 gallons. E v e n at these low prices there was little trade in this commodity. Norris complained in 1 7 1 9 , " F o r as much as the market being so very dull as that not one person had yet offered to buy one pipe there is no selling for good pay." 1 M o r e than two years later he also stated, " I t is a kind of rarity to meet with freight from M a deria . . . no wine now in this country except what Parker brought in." 2 ' A p r i l 9, 1 7 1 9 , Isaac Norris to Benjamin Bartlett, Madeira. ' N o v e m b e r 24, 1 7 2 1 , Isaac Norris to Richard Miles, M a d e i r a . 230

STAPLE

COMMODITIES

FROM EUROPE

231

Prices of Madeira wine were not quoted in the Philadelphia newspapers from 1 7 2 4 to 1 7 3 3 . By 1 7 3 0 , however, the importations had evidently increased, but the consumption failed to keep pace. In the summer of 1 7 3 0 Norris warned his Madeira correspondent that the market might be glutted in the fall. 3 T h e following winter, in another letter, he wrote, "Nothing will put off [i.e., sell] wines but their goodness considering what is already imported and what expected daily, but I think it would be an advantage if thou sent some old and some new." 4 A year later Norris again referred to the great stock already in this port.5 At a quotation of i l l Madeira wine was considered high even at the end of the thirties,6 though in 1 7 3 6 , 1 7 3 8 , and 1 7 3 9 this was the prevailing price. From 1 7 3 4 to 1 7 3 9 there was a well-developed trade between Philadelphia and the Madeira Islands. On the average, five of the vessels which cleared from Philadelphia listed the Madeira Islands as their first port of call and about six of the vessels which entered the port in each year came directly to Philadelphia from these islands. A period of quite different character in the movement of prices is found in the years from 1 7 4 1 to 1 7 5 5 or 1 7 5 6 . In these years there were more marked fluctuations in wine prices and two long swings which are more notable for the duration of the price movement and the underlying upward direction than for the extent of the particular rise at the climax of each movement. In the first of these periods, the upswing after April 1 7 4 1 was quite steady for two years, or until the early part of 1 7 4 3 . Though there was some recession in the middle of 1743 there was an abrupt spurt upward at the end of the year. It is significant that the tendency toward higher prices for Madeira wine coincided with the marked reduction in the trade with those islands during the first part of the war with Spain. Although before 1 7 4 0 there had been an average of six ships entering Philadelphia each year from the Madeira Islands, there were none in 1 7 4 0 and only three in each year from 1 7 4 1 to 1 7 4 4 inclusive. It is equally ' August 4, ' December 'December 'November

1 7 3 0 , Isaac Norris to Pantaleon Fernandez, Madeira. 7, 1730, Isaac Norris to Pantaleon Fernandez, Madeira. 1 , 1 7 3 1 , Isaac Norris to Captain Thomas Lloyd. 16, 1 7 3 7 , Robert Ellis to Lawrence Williams, London.

232

PRICES IN COLONIAL

CHART

PENNSYLVANIA

XXIV—MONTHLY

R E L A T I V E S OF

WHOLESALE

(Base—Monthly

STAPLE

COMMODITIES

FROM

EUROPE

233 PER CENT

PRICES OF M A D E I R A W I N E IN P H I L A D E L P H I A ,

Average, 1741-1745)

1720-1775

234

PRICES

IN COLONIAL

PENNSYLVANIA

striking that the abrupt rise to £40 a pipe by January 1 7 4 4 from £25 in October 1 7 4 3 and the more abrupt drop to £25 in March 1744 occurred at a time when the trade from the Madeira Islands had been interrupted to such an extent that no vessel arrived in Philadelphia directly from those islands between June 1 7 4 3 and March 1744. Between March 1 7 4 4 and December 1 7 4 5 Madeira wine sold in Philadelphia for £ 2 5 to £29 10s. a pipe. By February 1746, however, the price had fallen to £20 and during the remainder of the year never rose above £25. These lower prices, which brought quotations back to the level of the early months of 1 7 4 1 , followed the arrival in 1 7 4 5 of 1 1 vessels from the Madeira Islands, the largest number that entered directly from there in any year between 1 7 3 4 and 1760. In the second price oscillation of these middle years the upswing from the unduly low levels of 1746 was neither rapid nor steady. Although prices dropped after the level of £ 3 0 a pipe was established in 1749, they returned to this level in 1 7 5 0 and held to it with little variation until the first quarter of 1 7 5 3 . A gradual rise until August 1 7 5 3 brought a trifle higher price for Madeira wine. The August price of £32 8s. marks the end of this upswing, which is notable mainly for the stability of prices at the moderately high levels reached by 1 7 5 0 and held until 1 7 5 3 . While prices dipped from 1 7 5 3 to 1 7 5 6 , the prevailing price was £ 3 0 a pipe. Speaking in general, one might say that in these middle years of the Colonial period prices of wine rose from a level of £22 to nearly £28 in the first swing in prices and to nearly £ 3 1 in the second price swing and had no tendency at the end of this period to slip back to the levels of earlier years. In these years the underlying rise was persistent enough to be called a trend. It is in the years after 1 7 5 5 that prices of Madeira wine seem to have broken away completely from their past tendency and to have established a wholly new and higher level, with a drift to an even higher one in the closing years of the Colonial period. The new level with which one is dealing by the close of the 1750's was £ 5 0 a pipe, and, since this tended to be the prevailing price until the middle of 1 7 7 2 , it is important to consider the course of prices in some detail.

STAPLE COMMODITIES

FROM

EUROPE

235

In the expansion phase of the attainment of this level, prices of Madeira wine rose £5 between April and September 1756 and another £5 by February 1757; this increase brought prices to £40 a pipe. The direct trade from the Madeira Islands to Philadelphia was at a low point in the early part of the Seven Years' W a r . Only 3 vessels arrived at Philadelphia from the Madeira Islands in 1756 and only 2 in 1757. Such a small number of entrances had not been reported since 1744. In the years between the Treaty of Aix-laChapelle and the beginning of the Seven Years' W a r , from 5 to 10 vessels had arrived each year directly from the Madeira Islands. The short embargoes in parts of each year from 1756 to 1758 caused some monthly variations, but in the main the price of £40 lasted from February 1757 until near the close of 1758. T h e average price of the next year was £45, but Madeira wine sold for as high as £50 in October 1759 and, despite unsettled prices in the first half of 1760, was even listed at £57 10s. in September 1760. This was the peak in the years before 1764 and was an extreme price, not long maintained. Of more significance is the fact that wine prices tended to fluctuate around a level of £50 until late in the spring of 1763. From June 1763 until June of the next year prices declined, but they moved abruptly upward in the closing months of 1764 to a new high of £60. The level of 1765 was lower and by 1766 the old level of £50 had been reestablished. Except for a dip in 1768 and the first months of 1769, this price was quite uniformly maintained until August 1772. The extent to which the upward trend in prices during the Seven Years' W a r and the persistence of a high level afterward were influenced by local and British duties would be difficult to appraise. A provincial impost as high as 30 shillings a pipe in April 1758 applied to all wines (Statutes at Large of Pennsylvania, April 29, 1758). The duty of £7 sterling per tun (2 pipes) levied by the British act which became effective on September 29, 1764, applied to Madeira and similar wines when imported directly to the colonies. The same wines when imported by way of Great Britain were favored by a differential of £3. In the three and a half years before the Revolutionary W a r , M a deira wine seems to have been in the process of establishing a still

236

PRICES

IN COLONIAL

PENNSYLVANIA

higher level. In four months in 1 7 7 2 , in January 1 7 7 3 , and again in November and December 1 7 7 4 the price of wine reached £60 and in three months was as high as £62 10s. Prices rose particularly high in 1 7 7 5 by a process of gradually increasing each month from J u n e to November, when Madeira wine was quoted at £ 7 0 per pipe. Madeira wine was, then, one of the commodities which contributed to the step upward to a higher level of prices which characterized

CHART X X V — A N N U A L

R E L A T I V E S OF W H O L E S A L E PRICES OF M A D E I R A

W I N E IN P H I L A D E L P H I A , (Base—Monthly Average,

1720-1775 1741-1745)

the last three or four decades of the pre-Revolutionary W a r era. It differed from domestic commodities in the clearness with which the separate steps were marked. It differed also in that the change of level between 1 7 4 0 and 1 7 55 was slight in degree in comparison with the rise in commodities of Pennsylvania origin and in that in the change after 1 7 5 5 and especially after 1 7 5 9 the extent of the rise in wine was vastly more than that found in flour, corn, beef, or any of the domestic commodities for which it was exchanged. Madeira wine was one of the few imported commodities which

STAPLE

COMMODITIES

FROM EUROPE

237

not only increased in price but also increased in v a l u e in relation to flour. T h i s development was most pronounced a f t e r 1 7 4 8 . In the prior years there were fluctuations in the value of M a d e i r a wine. D u r i n g the early twenties the exchange ratio was that 2 ) 4 to 3 g a l l o n s of wine equaled a hundredweight of flour. In the closing years of the next decade and in the beginning of the forties the variations were between 2 and 2J/2 gallons and 2 t 0 gallons. F r o m 1 7 4 3 to 1 7 4 7 M a d e r i a wine was relatively high in v a l u e : f r o m i y 2 to 2 ) 4 gallons w o u l d exchange f o r a hundredweight of flour. I n 1 7 4 8 , h o w e v e r , M a d e i r a wine was nearly as cheap as in 1 7 4 1 ; more than 3 * 4 gallons could be purchased with a hundredw e i g h t of flour. T h e tendency thereafter was f o r M a d e i r a wine to become dearer. D u r i n g the fifties the usual exchange ratio between wine and flour was 2^4 t 0 gallons. F r o m 1 7 5 9 to 1 7 7 5 the variations were around a still higher value of wine: usually 1J/2 to 2 gallons were traded f o r a hundredweight of flour. SALT

T h e prices of f e w necessary commodities in common use, and habitually imported, were harder to estimate f o r purposes of a continuous monthly record than those of coarse and fine salt. Coarse salt was so much in use at certain seasons f o r packing and curing meat and fish that, if scarce, it w o u l d command almost any price. A scarcity in any other colony w o u l d deplete speedily a seemingly abundant supply. A g a i n , at the news that " g o o d " prices could be had f o r salt in Philadelphia, such quantities of it w o u l d arrive on incoming vessels that merchants w h o had stocks w o u l d have to sell at l o w prices and incur discouraging losses. A t times fine salt, which was imported mainly f r o m E n g l a n d , was f a r out of line with the prices at which the coarse salt, brought primarily f r o m Lisbon and occasionally f r o m T u r k s Island, could be sold. T a k i n g into account the alternation of periods of scarce and excess supplies, it w o u l d be difficult to say what conformity one should expect to find between the prices of the two salt series and those of other commodities; taking into account the different sources of supply and uses, it is equally difficult to suggest what conformity one should expect between the

238

PRICES IN COLONIAL

PENNSYLVANIA

CHART X X V I — M O N T H L Y

R E L A T I V E S OF W H O L E S A L E

(Base—Monthly

STAPLE

PRICES OF S A L T I N P H I L A D E L P H I A ,

Average, 1741-1745)

COMMODITIES

1720-1775

FROM EUROPE

239

240

PRICES

IN COLONIAL

PENNSYLVANIA

price movements of the two salt series. Taking into account the fact that a bushel of fine salt weighed 62 pounds and that a bushel of coarse salt weighed 80 pounds or more, it is uncertain what difference could be expected in the level of price per bushel for the two grades of this commodity. Fine salt usually sold at a higher absolute price by the bushel than coarse, yet there were many times when coarse salt was dearer, for short intervals, than fine. Curiously enough, in our base years, 1 7 4 1 to 1 7 4 5 , the prices of fine and coarse salt shifted back and forth in such a way as to make the average price of the sixty months approximately the same for the two different grades of salt. Consequently differences in the relatives of the two may be taken as roughly equivalent to absolute differences in the original prices. There was no other period when fine salt stayed cheaper than coarse for as long a time as it did in 1 7 4 1 and 1 7 4 2 . Y e t many short stretches of such a relationship will be noted in the discussion of the fluctuations in the two series. T h e prices of both series of salt had dropped by the middle of 1 7 2 2 from the quite high levels at which our record starts in 1 7 2 0 and 1 7 2 1 . T h e average for the year 1 7 2 2 , despite an upturn in the last four months, was lower than any annual average until 1 7 5 1 . September 1 7 2 2 was a turning point in the direction of the prices of fine salt, and J u l y of that year in those of coarse salt. During the rest of 1 7 2 2 and most of 1 7 2 3 salt prices rose to an unusually high level which formed the topmost part of a price swing between the years 1 7 2 2 and 1 7 2 6 . This period in prices was so broken by a severe decline in 1 7 2 4 that only the curve of annual averages justifies one in dating the completion of this episode in the history of salt prices in 1 7 2 6 , when there was a more prolonged stretch of low prices followed by moderate, though higher, levels in 1 7 2 7 and 1 7 2 8 . Another era of high prices appeared in the salt series in 1 7 3 0 and 1 7 3 1 . In the expansion part of this period, prices of coarse salt are lacking until January 1 7 3 1 . T h e fact that when the papers renewed their reporting both grades of salt appeared at the same quotation makes one think that the series of fine salt, which we have been able to establish f r o m the Norris and Allen account books,

STAPLE

COMMODITIES

FROM

EUROPE

241

gives an adequate description of the movements in prices of both kinds of salt between 1 7 2 6 and 1 7 3 1 . F r o m the low of October 1 7 2 6 , prices rose until December and kept at an intermediate and comparatively stable level until N o v e m b e r 1 7 2 7 , when, contrary to the usual course of prices in winter months, they dropped. Salt prices, though never down to the extreme low of October 1 7 2 6 , were low enough to make the average of the year 1 7 2 8 equal to that of 1 7 2 6 . In each of the next three years the average price of salt exceeded that of the preceding year, yet the maximum in the monthly prices of fine salt occurred from N o v e m b e r 1 7 3 0 to J a n u a r y 1 7 3 1 when prices equaled the high levels of the three closing months of 1 7 2 3 . O n l y twice in the succeeding years before the Revolution were higher prices paid f o r fine salt. Coarse salt dropped at once f r o m the high price of the first month of 1 7 3 1 , but fine salt held at first to quite high levels and then fluctuated widely in the course of a downward slope which lasted until J u l y 1 7 3 4 . I n many ways the two salt series had divergent tendencies in the decade of the thirties, though they were both at high levels at the same time in 1 7 3 2 and again in 1 7 3 3 . Coarse salt rose irregularly f r o m low to high between M a r c h 1 7 3 1 and J a n u a r y 1 7 3 3 and completed the downward part of this swing between then and September 1 7 3 6 . D u r i n g 1 7 3 5 , however, it was moving upward while fine salt, which shared in many of the fluctuations, had a slight downward tendency. T h e two were quite f a r apart in level in the last four years of the decade of the thirties; fine salt seems to have been stabilized at a medial price, coarse at an unusually low level. Both series show the influence of the war with Spain. F i n e salt prices moved up rapidly f r o m the low of August 1 7 3 8 to a high in August to October 1 7 4 0 . T h o u g h they dropped at the end of 1 7 4 0 and again in 1 7 4 1 , the high level of 1 7 4 0 recurred at the end of 1 7 4 1 and in the early months of 1 7 4 2 . In the case of fine salt, the highest prices in these years were double the lowest. E v e n this was a small increase compared with the effect of the war upon the salt which was entering the port of Philadelphia f r o m the coasts of Spain and Portugal. It was at this time that the prices of coarse salt overtopped those of L i v e r p o o l or fine salt for the largest number of consecutive months in our record.

242

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PENNSYLVANIA

Prices of coarse salt, if measured from the level of the first half of 1 7 3 9 , had more than trebled by the spring of 1742. Part of this rise took place before August 1740. There followed a period from August 1 7 4 0 to M a y 1 7 4 1 when a uniformly high level held except for one month. From M a y 1 7 4 1 until April 1 7 4 2 the final steep ascent was made. In the downswing, coarse and fine salt followed the model of many other commodities in that they declined most in the last half of 1742 and continued downward until the end of 1 7 4 3 or the middle of 1744. The salt series differed from others in the speed with which the next upswing got under way. Both coarse and fine salt rose abruptly from June 1744 to February 1745. Prices settled a little throughout the spring and summer months and then revived more than usual in the fall and winter. Throughout 1746 the tendency was still more upward and unusually high levels were reached by October of 1746. In this upswing each of the three peaks occurring in the spring and the fall of 1745 and again in the early fall of 1746 was higher than the preceding one. In fact both grades of salt were by this time above the high levels of 1 7 4 1 and 1742. Up to this point the advance from 1744 had been persistent, interrupted only by a mild tendency for prices to recede after any especially high month. There was nothing in the prices, however, to indicate the serious shortage of salt which developed at the end of the year 1746 and which was little less than a salt famine. Coarse salt, which sold in September 1746 for the high price of 3 shillings a bushel, had risen to 5 shillings 6 pence by the middle of November and to 9 shillings by December of that year and held that price at the beginning of 1747. Fine salt rose in the same way from a trifle over 3 shillings in September to 9 shillings 6 pence in December 1746. The extent to which merchants anticipated the undersupply of salt in the colony is indicated by a letter of Charles Norris as early as April 1746 in which he gave the price of salt as 3 shillings a bushel and added, " I believe, if stored till fall and not much coming in from your port, may stand a good chance for 4 shillings per bushel and upwards." 7 In making this forecast he was really naming a 1

April 1 j , 1 7 + 6 , Charles S. Norris to Steer and Baron.

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price as high as any at which fine salt had ever sold. Later in the year it was clear that there would be a dearth of salt in all the colonies. In J u l y , Powel wrote: " I apprehend salt is scarce throughout North America. It now sells here by the load at 2 shillings 1 0 pence per bushel and I have sold near 1,000 bushels to go to N e w England at 3 shillings. It is sold by the load at 3 shillings 3 pence at N e w Y o r k . T h e Bermudians assure me there is none at Turks Island and, if that be the case, I expect we shall not have so f u l l a supply as usual. And I presume they must want it greatly in N e w England, etc.; otherwise they could not afford to pay a freight upon the cost of 3 shillings per bushel from hence." 8 In the first week in December, Powel wrote: " S a l t is high here at present. W o u l d now yield by the load 6 shillings per bushel and I don't doubt but it would fetch 2 shillings 6 pence in the spring." 9 Coarse salt did decline as low as Powel had predicted, but its price rose to 4 shillings in August and September 174.7. Fine salt declined a little less than the coarse and had the same type of upswing in midsummer. Neither grade of salt held these high peaks, but both remained notably high throughout 1 7 4 7 and most of 1 7 4 8 . Prices of coarse salt dropped very slightly from August 1 7 4 8 until trade opened in February 1 7 4 9 . Fine salt prices stiffened in January 1 7 4 9 . T h e downswing of 1 7 4 9 and 1 7 5 0 was rapid in both series. T h e same merchants who had been selling coarse salt at 3 to 4 shillings a bushel in 1 7 4 7 and 1748 were glad to get 1 shilling a bushel f o r their supply in 1 7 5 1 1 0 and had to accept 8 pence a bushel at one time in 1 7 5 2 . " Prices of fine salt, unlike coarse, ceased to drop after J u l y 1 7 5 1 and although both series rose to moderately high levels at the close of 1 7 5 2 , only fine salt kept its gains until after the spring of 1 7 5 4 . Coarse salt, by contrast, dropped back and had a low, unstable price until 1 7 5 5 . This movement of prices from 1 7 4 4 to the middle of 1 7 5 1 or 1 7 5 2 is one of the longest swings in salt prices in the Colonial era. If the extreme prices at the end of 1 7 4 6 and the beginning of 1 7 4 7 were eliminated, there would still be left a major cycle of uncommon " J u l y 1 6 , 1 7 4 6 , Samuel Powel, J r . to Gabriel Manigault, South Carolina. * December 5, 1 746, Samuel Powel, J r . to Vas Fereira and Mitchell. " J u l y 2 7 , 1 7 5 0 , James Pemberton to his brother J o h n , London. 11 M a y 9, 1 7 5 2 , Sam Emlen to John Pemberton, London.

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severity that tallies closely in origin with the time France entered the war, just as the major rise from 1 7 3 9 to 1 7 4 2 had reflected the interruption to trade in the beginning of the war with Spain. The movement of prices of coarse salt during the war with Spain from 1 7 3 9 to 1748 were, as might be expected, somewhat in inverse relationship to the number of vessels arriving in Philadelphia directly from Portugal. In 1 7 3 9 there were 2 1 such vessels, 1 0 more than in the previous peak year of 1 7 3 6 . In 1 7 4 0 the number engaged in direct trade from Portugal to Philadelphia increased to 47. While prices of coarse salt rose in 1 7 4 1 and part of 1742 and declined in part of 1742 and in 1 7 4 3 , there was a rather constant amount of shipping from Portugal to Philadelphia of about 1 0 vessels a year. The upswing in prices from 1 7 4 4 to the end of 1746 coincided with the decline in the number of vessels entering from Portugal. Only 6 arrived in 1 7 4 4 and 5 in 1 7 4 5 and 2 in 1746. In the closing years of the war, trade increased to 6 or more. In 1 7 5 0 the number of vessels entered at the Customs House directly from Portugal was 10. This was increased to 1 2 in the following year and to 21 or more in each year from 1 7 5 2 to 1 7 5 4 , when the prices of coarse salt were low. It should be noted that when prices of coarse salt were high from October 1 7 5 2 to February 1 7 5 3 only 4 vessels entered between August 1 7 5 2 and April 1 7 5 3 and only 1 between November 1 7 5 2 and April 1 7 5 3 , while 5 arrived in April 1 7 5 3 . The unsettled movement of the prices of coarse salt and the mild swing at low levels of those of fine salt serve to separate this earlier period from that of the French and Indian War. All prices in the years from 1 7 5 5 to 1 7 6 3 were subject to so many dips, caused by short embargoes, that it is unnecessary to call attention to many of the price recessions. T h e upward price tendency appears to have been sufficiently interrupted at the close of the decade of the i75o's to date one swing in price from J u l y 1 7 5 5 to about August 1759. T w o high peaks were reached in these years, one in the summer of 1 7 5 6 , when fine salt was highest, and the other toward the end of 1 7 5 7 , when both series of salt were notably high but coarse was dearer than fine. In the middle of 1 7 5 7 , when Philadelphia trade opened after an embargo, Thomas Wharton wrote, "Lisbon salt they ask 2 shillings 9 pence per bushel for, and Straight salt 2 shillings 6 pence,

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but the sale at present is but dull, nor do we believe it will be very brisk till towards the f a l l . " 1 2 Both grades of salt declined in 1 7 5 8 and 1 7 5 9 , but apparently it was easier to get adequate supplies of Lisbon than of Liverpool salt in the next two years, for fine salt had an independent upswing which made the levels of these years moderately far apart. This veering apart in the salt series occurs first in the downswing of the coarse salt price in 1 7 5 9 . At this time trade with Lisbon seems to have been unhampered, not only in salt but in articles upon which there was supposed to be some restriction, since in this year a merchant wrote, " F o r salt from Lisbon we have a free trade by act of Parliament and, although the wine [Lisbon] and fruit is not free yet, there never has been any seizure made of those articles in this port but are daily brought in and no notice taken thereof." 1 3 In the last four months of 1 7 5 9 prices of coarse salt made a sudden advance owing to a temporary demand at a time when the supply in the hands of wholesalers was low. In the middle of September, Baynton had to write, " W e could not procure any more Lisbon salt . . . don't know when we shall be able to do it, there being none of that article in town." 1 4 Fine salt especially rose in 1 7 6 0 . By February it was selling a shilling a bushel above the Lisbon j by December the differential was I shilling 3 pence. In terms of actual levels fine salt sold for 3 shillings 3 pence in December 1 7 6 0 when coarse sold for 2 shillings. Before the close of the next year the price of fine salt dropped. T h e second swing in prices in these war years dates from the spring of 1 7 6 1 in coarse salt and about a year later in fine salt. Both were high in 1 7 6 2 , dipped in 1 7 6 3 , and returned to a secondary high at the close of 1 7 6 3 . In the case of fine salt, the post-war peak of 1 7 6 3 overtopped the prices at all high levels during the war. Prices of both grades of salt declined steadily except for some months of shortage of coarse salt in 1 7 6 5 , and did not finish this period of contraction until 1768 and 1769. In September 1 7 6 5 it was noted that "coarse salt hath taken a start unexpectedly. T h e y now 12

June 6, 1 7 5 7 , Thomas Wharton to Gerard G. Beekman, N e w Y o r k . February 28, 1 7 5 9 , T h o m a s Wharton to Perriott, Dawson and Co., H u l l , England. " S e p t e m b e r 1 3 , 1 7 5 9 , Baynton to Captain G e o r g e Simpson. 13

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ask 2 shillings per bushel per the quantity and indeed they that have any seem unwilling to sell at any price as they expect it will rise." 14 A month later another merchant wrote in answer to an inquiry from outside Philadelphia for salt: " W i l l send you salt as soon as vessels arrive from Lisbon. Salt is now three shillings out of the stores. None here in vessels. N o doubt it will fall when any arrives." 16 B y 1768 the prices of both grades of salt were low. T h e complaint was made that " g o o d Liverpool salt has been sold here lately from 17 pence to 18 pence per bushel but it is slow sale, we imagine, and pretty long credit." 17 So much salt was brought to Philadelphia in the years from 1768 to 1772 that for the most part the market was quite overstocked. Much was shipped along the coast to other ports and quantities of the remainder stored. In October 1770, Clifford wrote to a correspondent in Bristol, "Salt will not answer, the market being quite overstocked." 18 Again, early in November he complained to the same correspondent: " T h e length of her passage has been a great disadvantage to us in the sale of the salt. N o purchasers now at almost any price. Are shipping a quantity of it round to Baltimore as we hear it will do better there. Expect to store the remainder." 19 A f t e r years of mild change in price, quotations for salt suddenly jumped to an inordinate peak in the last three months of 1772. Liverpool salt, which had been selling as low as 1 shilling 6 pence a bushel from April to August 1772, rose to 2 shillings 6 pence in October and had doubled its summer levels by November. T h e tense situation in these months was caused by a dearth of fine salt in New Y o r k and a vigorous demand from that city upon the stores and incoming supplies of Philadelphia. T h e suddenness of the rise was explained to a Liverpool merchant: " H a v e sold salt for the high price of 2 shillings 3 pence per bushel. This is 3 pence per bushel more than the last cargo from Liverpool sold for about a week ago, September 16, 1 7 6 5 , T h o m a s C l i f f o r d to Harper and Hartshorne, Antiqua. " October 1, 1765, T h o m a s Riche to Samuel Cornell, New Bern, North Carolina. " J u n e 1 1 , 1768, Orr, Dunlope and Glenholme to G r e g , Cunningham and Co., New York. " O c t o b e r 14, 1770, T h o m a s Clifford to Lancelot Cowper, Bristol, England. November 5, 1770, T h o m a s C l i f f o r d to Lancelot Cowper, Bristol, England. 15

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and is chiefly occasioned by the demand for that article from N e w York."20 Coarse salt made the same kind of advance in the last months of 1 7 7 2 , but this was a flurry which ended abruptly and was followed by a declining tendency until October 1 7 7 4 . T h e active trade to L i s bon which accounts for the cheapness of coarse salt is well known. T h i s trade was engaged in sufficiently by Philadelphia shippers to lead Pollard to conclude: " I do not think there will be much shipping in our port unemployed this season. T h e Lisbon markets are got up and no doubt those in the Streights may be affected in the same way in a greater or less degree. I believe the Lisbon markets must continue good if the ports at home should not be opened." 2 1 E v e n in the early months of 1 7 7 5 the price of coarse salt was low enough to lead Wharton to report to his brother on the arrival of his vessel, " T h y snow arrived with about 2,500 bushels of salt. . . . W e were all of opinion that it would be most for thy interest to sell the salt though at the poor price of 10^2 [pence] per bushel." 2 2 T h i s proved to be a most unwise decision, for prices of coarse salt swung steeply upward before the close of 1 7 7 5 . T h e movements in the prices of Liverpool salt differed from those of Lisbon salt in the pre-Revolutionary W a r years since they held for a longer time near the level of the peak at the close of 1 7 7 2 and kept comparatively high for two years except for a sharp dip in the summer of 1 7 7 3 and a severe decline in the last part of 1 7 7 4 . In their predictions at this time merchants were as easily alarmed as at other times by seasonal declines. T h e resident representative of an English house, writing in M a y 1 7 7 3 , stated: " I really am at a loss what to advise to be sent out from Liverpool. Salt is now at 1 6 pence per bushel and I fear it will be lower." 2 3 In the f a l l he had to report: " S a l t is at the high price of 2 shillings 3 pence. It has been 2 shillings 4 pence, but a great deal is soon expected in." 2 4 T h e next week in October he reported lower prices and added, " D o 30

October 1 7 , 1 7 7 2 , William Pollard to Peter Holme, L i v e r p o o l . March 9, 1 7 7 4 , William Pollard to Levinus Clarkson, Charleston, South Carolina. a M a y 6, 1 7 7 5 , Thomas Wharton to Joseph Wharton in London. " M a y 6, 1 7 7 3 , William Pollard to Peter Holme, L i v e r p o o l . 34 October 2 5 , 1 7 7 3 , William Pollard to Peter Holme, L i v e r p o o l . 21

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not believe I could obtain 2 shillings f o r another cargo." 2 5 A f t e r fine salt had advanced to still higher levels toward the close of 1 7 7 4 , C l i f f o r d reported to Bristol sales of salt " f o r 2 shillings 6 pence per bushel." 2 6 A s one w o u l d expect, L i v e r p o o l salt mounted steadily in 1 7 7 5 to an inordinate peak at the close of that year. T h e annual prices of fine and coarse salt bring out clearly the d i f ference in level between the prices of these two series, especially in the twenties and thirties. In subsequent years there was some tendency

CHART

XXVII—ANNUAL

RELATIVES

IN P H I L A D E L P H I A ,

OF W H O L E S A L E

P R I C E S OF

SALT

1720-1775

(Base—Monthly Average,

1741-1745)

f o r the two series to come closer together in terms of their absolute prices. i T h e annual prices also indicate more clearly than the monthly prices that the war with Spain which began in 1 7 3 9 did not raise the quotations f o r fine salt until 1 7 4 2 , while those of coarse salt, which had been unusually low in the latter part of the thirties, had increased considerably by 1 7 4 0 . D u r i n g the years of the war after 1 7 4 1 , the two series moved more closely together, the greatest d i f ference being that the average price of fine salt in 1 7 4 7 was higher than in 1 7 4 6 while coarse salt was lower. I n the latter part of the J M

October 3 0 , 1 7 7 3 , W i l l i a m Pollard to Peter Holme, L i v e r p o o l . November 28, 1 7 7 4 , T h o m a s C l i f f o r d to T h o m a s F r a n k , Bristol.

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second war with France, fine salt reached a peak as early as 1 7 6 0 and had a high average price for the next four years. T h e prices of coarse salt were correspondingly high only in 1 7 6 2 . A g a i n in the early seventies, as the Revolution became more imminent, the price of L i v e r p o o l salt tended to increase out of proportion to the price of coarse salt. A b o v e all else, however, the annual prices show a horizontal trend in both series in contrast to the upward trends in the domestic series and in that of Madeira wine. T h e amount of salt exchanged for a hundredweight of flour varied widely in the different years. On the whole, fine salt was relatively dear before 1 7 4 8 , although f r o m 1 7 3 4 to 1 7 3 8 more than 5 bushels equalled in value a hundredweight of flour. T h e typical exchange ratio in these years was less than 5 bushels, and often, especially in the thirties and forties, between 3 and 4 bushels. F r o m 1 7 4 8 to the R e v o l u t i o n , salt became relatively cheaper. O n l y once was less the 5 bushels sufficient to purchase a hundredweight of flour. M o s t frequently between 8 and 9 bushels of fine salt was the ratio in exchange f o r flour. Coarse salt was usually cheaper than fine. T h e greatest disparity was in 1 7 3 7 when more than 9 y 2 bushels of coarse salt could be secured f o r bushels of fine salt and in 1 7 7 4 when 1 3 ^ bushels of coarse salt would exchange f o r 8 ^ bushels of fine. M o r e important than the periods of disparity in the values of the two grades of salt are the years around 1 7 4 6 and 1 7 7 2 when there was little difference in price between them. GUNPOWDER

T h e prices of gunpowder were quoted in the Philadelphia newspapers f r o m 1 7 2 0 to 1 7 2 3 and f r o m 1 7 3 4 to 1 7 6 3 . I n most of the other years the records of merchants furnish a thread of prices upon which to j u d g e the level. T h e fluctuations in these prices differ completely f r o m those of all other commodities in our record of these years. It is to be expected that in the price of any commodity so essential f o r the conduct of the intermittent wars of this period the effects of war and threats of conflict would be magnified. T h e two most outstanding

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cases happened in 1744. and 1762. T h e preparations for the expedition to Louisburg raised gunpowder from £9 per cask of 100 pounds at the beginning of 1744 to £20 in September. T h e second example of rapid increase in 1762 reflects the threat to Philadelphia from the war with France. T h e w a r w i t h Spain, predicted by M r . Pitt, being at length declared ( J a n u a r y 4 , 1 7 6 2 ) , the g o v e r n o r c o n v e n e d the assembly in M a y , for the purpose of c o m m u n i c a t i n g t o t h e m the intelligence, and obtaining means f o r the defense of Philadelphia, w h i c h he represented t o be in great dang e r , inviting the e n e m y by its weakness and its w e a l t h . T h e house, sensible of the dangers arising f r o m the union of F r a n c e and Spain, w i t h great alacrity appropriated t w e n t y - t h r e e thousand

five

h u n d r e d pounds, the

parliamentary allotment f o r 1 7 5 9 , to this object, and resolved to erect a fort, m o u n t i n g t w e n t y c a n n o n , on M u d island, at the confluence of the D e l a w a r e and Schuylkill

rivers,

c o m m a n d i n g the navigation

of both,

f o r w h i c h they voted five thousand pounds. . . . T h e w a r against F r a n c e and Spain w a s not of l o n g c o n t i n u a n c e ; peace being m a d e with both on the third of N o v e m b e r

1762."

In other war years the price of gunpowder was high, although it was dwarfed by these two outstanding peaks, one of which came in the years chosen for the base of the relative prices. T h u s from the latter part of 1740 to the early part of 1742, from 1745 to 1746, and from 1756 to 1759 gunpowder tended to sell for approximately £12 a barrel of 100 pounds. This is a high price compared with the £8 which prevailed in the early 1720's, in 1738 and 1739, and from 1751 to 1754. T h e fluctuations in the other years between 1720 and 1775 were between £8 and £12. In the early twenties from to 7 pounds of gunpowder could be purchased with a hundredweight of flour. F r o m the middle of the thirties to 1744 gunpowder tended to increase in value. In 1736 about 4Ys pounds was the exchange equivalent of one hundredweight of flour. In the next two years its value declined until pounds were required. D u r i n g the war with Spain gunpowder increased in value. In 1740 less than 4^2 pounds exchanged for a hundredweight of flour. In 1744 the dearest prices of all were quoted when less than 2^4 pounds were required. In the next two " Gordon, Thomas F., The History of Pennsylvania, pp. 393-394.

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years gunpowder remained relatively high, ^Vs pounds to 3 pounds being the exchange ratio for flour. From 1748 to 1 7 5 5 gunpowder was comparatively cheap: between 7 and 9 pounds were equivalent in value to one hundredweight of flour. By 1 7 5 7 barely more than 5 pounds was the exchange ratio. By 1 7 6 1 the value had again declined until nearly 7^2 pounds could be procured. The disturbances in 1762 raised the value until less than 4 p o u n d s of gunpowder equaled the value of a hundredweight of flour. PEPPER

It is difficult to give an account of the trade in East India spices. Usually they were imported into Pennsylvania from Great Britain, but often a shortage in one Colonial market would be met by reexports from another colony. Such a condition was described in 1 7 3 9 in a letter to London. "Pepper," the Philadelphia merchant explained, "is at present a very dead article occasioned by a great quantity from Boston just before yours arrived, which they sell at 2 shillings a few pounds together. H o w they can afford it at that price I cannot tell, though 'tis probable they have got it out of some India man at sea." 28 A price of 2 shillings a pound was typical during the decade of the twenties, but by the middle of the thirties pepper had advanced to 2 shillings 6 pence to 2 shillings 10^2 pence. In 1 7 3 9 , when Powel complained of a price of 2 shillings as being low, other merchants were selling pepper for between 2 shillings 2 pence and 2 shillings 4 pence. As the war with Spain progressed, pepper rose slightly in price, usually selling for 2 shillings 6 pence in the early forties. During 1744 and 1745, when many commodities declined in price, the behavior of the prices of pepper in Philadelphia is unknown to us. A merchant did comment, however, that pepper was "very much wanted here." 29 In the summer of 1746 Powel remarked that pepper sold between 3 shillings and 3 shillings 3 pence per pound. This rather high price he attributed to the fact that "there is of late very * J u l y 26, 1 7 3 9 , Samuel Powel, J r . to Benjamin and William Bell, London. M February 14, 1 7 4 5 , Samuel Powel, J r . to Benjamin and William Bell, London.

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little prize spice come here." 3 0 D u r i n g the closing years of the war pepper usually sold at or slightly under 3 shillings a pound. A f t e r the close of the war the price of pepper was again about 2 shillings and held near this level until after the beginning of the French and Indian W a r . D u r i n g 1 7 5 6 especially pepper advanced in price. On J u l y 1 9 a merchant was forced to write that the prices of pepper which he had quoted only four days before would have to be raised. 31 In November the price of pepper was 2 shillings 1 0 pence. In the early part of 1 7 5 7 still higher prices were probably paid, but at the close of that year a firm of Philadelphia importers wrote, " T h e r e is such a large quantity of pepper in town that it is f e l l to 2 shillings 9 pence per pound." 3 2 In the following spring the price of pepper again advanced to 3 shillings, but by October it had fallen to 2 shillings 6 pence and less than a year later to 2 shillings. During the remainder of the French and Indian W a r and for at least a year after the Peace of Paris, it usually sold for about 2 shillings a pound. F r o m 1 7 6 5 to 1 7 7 0 , pepper sold at the highest prices of the Colonial era. U s u a l l y in these years it was priced at 3 shillings 3 pence or more, sometimes rising to 4 shillings and even above 4 shillings. T h e high level of prices indicated by merchants' letters is confirmed by several months of newspaper quotations in 1768 in which pepper was listed at 3 shillings 3 pence to 3 shillings 9 pence per pound. In December 1 7 7 0 , the price f e l l to 2 shillings 1 0 pence and in J u n e 1 7 7 1 settled to 2 shillings 3 pence, which was the usual price for three years. Around this time William Smith reported that in spite of the low prices there was " n o sale for pepper." 3 3 T h e next year C l i f f o r d wrote to his correspondent in London, " P e p p e r cost in E n g l a n d i 2 ^ d [sterling] but within a few days the price with us is reduced to 23 pence per pound owing I suppose to a quantity sent from your city as W i l l i a m Smith . . . sold a parcel and reduced the price." 34 T h i s is the only record that prices of pepper varied from 2 shill30

August 25, 1746, Samuel Powel, J r . to Gabriel Manigault, South Carolina. J u l y 19, 1 7 5 6 , Thomas Wharton to Gerard G. Beekman, New York. December 4, 1 7 5 7 , Gough and Carmault to William Neatt, London. April 2, 1 7 7 1 , William Smith to Robert C. Livingston. September 26, 1 7 7 2 , Thomas Clifford to Robert and John Murray, London.

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ings 3 pence in 1 7 7 2 . E v e n in the next two years they do not appear to have dropped below 2 shillings. Near the close of 1 7 7 4 , probably because of the non-importation agreement, pepper advanced to 3 shillings 6 pence in November. Comparatively high prices were quoted, also, in the latter part of 1 7 7 5 . From a long-time point of view, the movements of the prices of pepper in the Colonial years can be divided into two periods. During the twenties and early thirties the prices fluctuated around a low and even declining trend. Before the close of 1 7 3 4 , however, pepper had risen and was selling for 2 shillings 6 pence or more. In the remainder of the Colonial period this would be a typical price for pepper. During the first war with Spain there was practically no variation from this price until after France entered the war. T h e price of pepper then advanced substantially, only to return to a lower price after the close of the war. A f t e r the outbreak of the Seven Years' W a r pepper again sold above 2 shillings 6 pence for several years, but dropped back when more active trading began after the French power in Canada had been broken. T h e greatest deviation from the horizontal trend in the prices of pepper from 1 7 3 4 to 1 7 7 5 occurred in the six-year period from 1 7 6 5 to 1 7 7 0 when pepper usually sold between 3 shillings 3 pence and 4 shillings and sometimes higher. From the end of 1 7 7 0 to 1 7 7 5 pepper was usually quoted between 2 shillings and 2 shillings 3 pence and rarely rose above 2 shillings 6 pence. TEA

While it has been impossible to supplement the occasional newspaper prices of Bohea tea in Colonial Pennsylvania sufficiently to give consecutive monthly prices, quotations were frequent enough to indicate the prices at which tea sold. T h e highest prices of Bohea tea in the years f r o m 1 7 2 0 to the outbreak of the Revolution occurred in the early spring months of 1 7 2 0 when it was quoted at 50 shillings per pound. Prices of tea declined irregularly from then until the close of 1 7 2 4 , when it was selling for 1 7 ^ 2 shillings. In each year from 1 7 2 4 to 1 7 2 7 the quotations advanced a little over the previous year. Whether the high of the price swing which began in January 1 7 2 5 was in 1 7 2 7

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or 1 7 2 8 is uncertain, but in M a y 1 7 2 9 prices were at the level of January 1 7 2 7 and the quotations of 1 7 3 0 carried prices lower. Samuel Powel, in writing to D a v i d Barclay of Cheapside at the close of this year, said that he had sent too much tea and " i t is now a drug." 3 5 Still lower levels were reached in each succeeding year until after the middle of 1 7 3 7 . T h e decline in price during these years appears to have been caused by the extraordinary amount shipped into Philadelphia. T h u s in November 1 7 3 1 Powel wrote to Thomas H y a m in London, " O u r town has tea enough for these two years. They say there is of last year's importation nearly 2,000 pounds." 36 T h e influx of tea apparently continued. T w o years later, when good tea selling at 1 0 shillings per pound was considered to be cheap, 37 Powel again wrote, " O u r town is so exceedingly overdone with tea that 'twill sell at no rate," and he estimated that the available stock would last two or three years. 38 Still more supplies were received indirectly from the West Indies. 39 T h e following year tea continued to be plentiful in the market and sold at from 6 to 1 0 shillings. 40 It was shipments from other areas that disrupted the market for tea. Samuel Powel explained: " T h e market here is not more variable for anything than tea. Y o u may judge pretty near from the entries at home what quantity of other goods are shipped hither, but tea, especially when cheap at home, is thrust in here from the Islands, N e w E n g land and [ N e w ] York in very large quantities which you can't be apprised of." 4 1 T h e price in London was slow to affect the colonies. In another letter to Bell, Powel said: " I note thou says the price of green tea is risen with you, but that will not suddenly affect the price here where we are exceedingly over done with it. I can only retail thine now and then at 1 0 to 1 1 shillings. In this place is used near ten pound Bohea to one green and the latter being apt to spoil with long keeping . . . people are afraid to buy any quantity of it." 42 " December 28, 1 7 3 0 , Samuel Powel, J r . to David Barclay, London. " N o v e m b e r 1 2 , 1 7 3 1 , Samuel Powel, J r . to Thomas Hyam, London. " N o v e m b e r 6, 1 7 3 3 , Samuel Powel, J r . to Benjamin Bell, London. " N o v e m b e r 6, 1 7 3 3 , Samuel Powel, J r . to David Barclay, London. "December 4, 1 7 3 3 , Samuel Powel, J r . to Benjamin Bell, London. " M a r c h 22, 1 7 3 4 , Samuel Powel, J r . to Benjamin Bell, London. " M a y 28, 1 7 3 4 , Samuel Powel, J r . to Benjamin Bell, London. "December 16, 1 7 3 4 , Samuel Powel, J r . to Benjamin Bell, London.

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In the spring of the next year the price of tea was still lower and the outlook uncertain because there were " s o many tea sellers here that the price is run down next to nothing." 43 During 1 7 3 6 and 1 7 3 7 tea prices continued to decline until in August 1 7 3 7 the best Bohea was sold at 7 shillings 6 pence a pound/ 4 This was the result of additional importations from New England 4 5 and from N e w York. 4 * From 1 7 3 7 to the middle of 1 7 4 3 prices of Bohea tea continued to decline slightly. New York supplied most of the needs of the Philadelphia market. 47 By the summer of 1 7 4 0 the price had declined to 7 shillings a pound and under because of the plentiful supply. 48 By fall, prices had declined still lower. 49 T h e next year Powel reported that Bohea tea was retailing at 6 shillings 6 pence and that the continuation of the imports from N e w York made any rise in price seem improbable. 50 A year later he wrote that he had disposed of the tea at from 6 shillings 6 pence to 6 shillings. 51 T h e indication is that there was a sizable swing in prices of tea in the years from 1 7 4 4 to the early 1 7 5 0 ' s . Prices rose markedly from 1 7 4 4 , when France entered the war, to about the end of 1 7 4 7 . In September 1 7 4 4 , Powel wrote that tea was selling at 7 shillings 6 pence52 and by the close of October that it was at 8 shillings. 63 There was evidently a considerable scarcity of tea in most of the colonies. In a letter to a merchant in Barbados, Powel wrote: " I have taken a great deal of pains to get thee some good Bohea tea but cannot yet succeed. It is very scarce and none in town but what is in the retailers' hands, but we daily expect some from London." 5 4 About the same time Powel wrote to his London correspondent: "Bohea tea is now scarcer than ever I knew it since it has been in " A p r i l 2 1 , 1 7 3 5 , Samuel Powel, J r . to Benjamin B e l l , London. " A u g u s t 2 2 , 1 7 3 7 , Samuel Powel, J r . to Benjamin B e l l , London. " D e c e m b e r 6, 1 7 3 6 , Samuel Powel, J r . to Benjamin Bell, London. " N o v e m b e r 2 3 , 1 7 3 7 , Samuel Powel, J r . to Benjamin B e l l , London. " N o v e m b e r 20, 1 7 3 8 and June 1 2 , 1 7 4 0 , Samuel P o w e l , J r . to Benjamin and W i l liam Bell, London. " A u g u s t 28, 1 7 4 0 , Samuel Powel, J r . to Benjamin and William B e l l , London. " October 8, 1 740, Samuel Powel, J r . to Benjamin and W i l l i a m B e l l , London. " October 20, 1 7 4 1 , Samuel Powel, J r . to Benjamin and W i l l i a m B e l l , London. M October 28, 1 7 4 2 , Samuel Powel, J r . to Benjamin and W i l l i a m B e l l , London. " S e p t e m b e r 1 1 , 1 7 4 4 , Samuel Powel, J r . to Benjamin and W i l l i a m B e l l , London. " O c t o b e r 3 1 , 1 7 4 4 , Samuel Powel, J r . to Benjamin and W i l l i a m B e l l , London. 54 November 2 4 , 1 744, Samuel Powel, J r . to T h o m a s Hothersall, Barbados.

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common use. It would not yield 9 shillings 6 pence per the chest, but none in town but what is in the retailers' hands."" 5 T h e f o l lowing summer it was estimated that because of the scarcity, Bohea tea would readily sell at 8 shillings per pound by the hundredweight. 5 6 B y f a l l the anticipation of the levying of duties had brought about a large importation of tea. T h e situation in October 1 7 4 5 was thus summed up by a contemporary: " A s you order, shall not be very hasty in the sale of your tea though we have a prodigious quantity imported. I think about 1 2 0 chests which will stock us for a great while, and I am told some people here have advice of a great deal being shipped on the Mesnard before the act takes place. I shall be better able to j u d g e in a little time how the price will go." 5 7 In the early months of 1 7 4 6 the price of tea remained firm, but importations f r o m N e w E n g l a n d and uncertainty about the commercial policies of Great Britain prevented further rise. In J u n e , a Philadelphia merchant wrote, " I expected the price [of tea] would have advanced, but small parcels continued to drop in from N e w E n g l a n d and 'tis thought some people will find means to import it f r o m H o l l a n d from whence you know it will come much cheaper than from you. W e are told here that the duty will be taken off teas exported from E n g l a n d . " 5 8 In the next few months the price of tea advanced rapidly. B y August 1 7 4 6 it was selling between 1 2 shillings and 1 2 shillings 6 pence per pound by the chest.59 In October the price was 1 4 shillings. B y February 1 7 4 7 tea was "scarce and dear." 8 0 T h r e e months later Powel wrote to his London correspondent: " G o o d Bohea tea sells for 1 5 shillings per the chest, but it is very scarce. If much comes it will be lower. T h e y begin to send some parcels f r o m N e w E n g l a n d which I suppose is Dutch tea." 6 1 Sufficient supplies were evidently not received before fall. T h e price of tea advanced to about 1 7 shillings by J u n e 1 7 4 7 . It is probable that the high prices of tea in Philadelphia attracted " N o v e m b e r z8, 1744, Samuel Powel, J r . to Benjamin and William Bell, London. " J u l y 3 1 , 1 7 4 5 , Samuel Powel, J r . to Benjamin and William Bell, London. " October 7, 1 745, Samuel Powel, J r . to Benjamin and William Bell, London. " J u n e j , 1746, Samuel Powel, J r . to Benjamin and William Bell, London. " A u g u s t 23, 1746, Samuel Powel, J r . to Benjamin and William Bell, London. " F e b r u a r y 16, 1 7 4 7 , Samuel Powel, J r . to Benjamin and William Bell, London. " May 3 1 , 1 7 4 7 , Samuel Powel, J r . to Benjamin Bell and Son, London.

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shipments from London and from nearby colonies. N o merchants' comments are available, but by October 1 7 4 8 Bohea tea was selling at 8 shillings—a lower level than it had had for three years. F r o m 1 7 5 2 , at least, and perhaps from a year earlier, there was a long period of relatively stable low prices of tea which lasted until about the beginning of 1 7 5 5 . In the spring of that year there was a sudden increase. N o explanation was offered when the following comment was made by another Philadelphia merchant: " B o h e a tea . . . is charged at 9 pence per pound more than I some time ago sold for, which is owing to the sudden rise of tea here. Some persons now sell for 6 shillings 6 pence, others for 7 shillings per pound. I think I may venture to say that nobody sells under 6 shillings." 6 2 By J u n e the price had again declined to 5 shillings and by November to 4 shillings 8 pence. E a r l y in 1 7 5 6 tea sold at 4 shillings 6 pence per pound. 63 At the beginning of June, Thomas Wharton wrote to a correspondent in N e w Y o r k : " W e have tea of thine in our hands. T h e most they could obtain is 5 shillings per pound retail and some do sell for 4 shillings 1 0 pence per dozen [pounds]. H a v e not sold any, nor do we expect that we shall unless a declaration of war is made. T h o u g h no large quantity has been imported from London, yet several chests has comc lately from your port."' 14 T h e next day he wrote again: " C l i f f o r d will give 4 shillings 6 pence per pound f o r two or three chests of tea payable in two months. Advise thee taking of it which does not arise from any other motive than the dullness of trade with us and the great plenty of tea so that some persons do sell by the dozen pounds at 4 shillings 1 0 pence." 6 5 T h e situation did not improve. On J u n e 1 2 he again wrote to W a d d e l l that neither C l i f f o r d nor Sam Wharton "incline to give that price as they are able to buy very good at 4 shillings 6 pence. Several large parcels have come lately from your quarter, which they offer at 4 shillings 7 pence per single chest." 66 A week later he was able to report that he had sold one chest at 4 shillings 9 pence per pound with two months' " March 3 1 , 1 7 5 5 , T h o m a s Wharton to J o b Jacobs, Wilmington, North Carolina. " A p r i l 1 , 1 7 5 6 , T h o m a s Riche. " J u n e 2, 1 7 5 6 , Thomas Wharton to J o h n Waddell, N e w Y o r k . K J u n e 3, 1 7 5 6 , T h o m a s Wharton to J o h n Waddell, New Y o r k . " J u n e 1 2 , 1 7 5 6 , Thomas Wharton to J o h n Waddell, N e w Y o r k .

258

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credit, but that another merchant was selling at 4 shillings 7 pence per pound by the single chest.47 A t the end of the month he sold four chests of tea at 4 shillings 6 pence per pound.88 During July 1756 the Philadelphia market was unsettled. About the middle of the month a merchant wrote, " I have nothing new to acquaint you only a war must be and that we expect every moment and we are all in confusion." Before the letter was dispatched he added, "Since the above we have a declaration of war between France and England." 6 8 This news caused a flurry in the price of tea. Before the close of the month it was reported that "tea has got up to 5 shillings and 6 shillings a pound. Some people ask but no price is yet settled." 70 A t the beginning of August 1756 Wharton reported that it had risen to 6 shillings 6 pence. 71 T h i s probably refers to retail prices, since at the same time he wrote to W a d d e l l that teas "will not at present command 6 shillings 6 pence per pound, neither do we think they will towards fall, if then. Believe [ I ] could obtain 6 shillings." 72 During the fall and winter, trade came almost to a standstill and prices sagged. In November it was reported that tea was 6 shillings per pound retail and 5 shillings 9 pence in larger quantities.73 In January 1757 it was offered for sale between 5 shillings 3 pence and 5 shillings 6 pence per pound. 74 In the following summer another importer wrote: " T e a begins to be inquired after and sought for, though this is not yet raised anything to speak of, but believe it will. W h e n the price is a little better fixed, [ I ] shall be for informing you thereof. A t present, [it is] 5 shillings 6 pence to 6 shillings." 76 B y September 1 7 5 7 , the price had advanced still more, and further advances seemed so certain that the usually pessimistic Wharton wrote, " T e a is grown dearer and I believe will still be more so, wherefore thou ought not to sell at too small a profit." 76 " June 19, 1 7 5 6 , T h o m a s W h a r t o n to John Waddell, N e w Y o r k . " J u n e j o , 1 7 5 6 , T h o m a s Wharton to John Waddell, N e w Y o r k . ™ July 16, 1756, T h o m a s Riche to Abraham Harris, St. Croix. " J u l y 28, 1756, T h o m a s Riche to Jacob Van Zandt, N e w Y o r k . " August 5, 1 7 5 6 , T h o m a s Wharton to Joseph Bennett. " A u g u s t 5, 1 7 5 6 , T h o m a s W h a r t o n to John Waddell, New Y o r k . " N o v e m b e r j , 1 7 5 6 , T h o m a s Wharton to John Waddell, New Y o r k . " J a n u a r y 13, 1 7 5 7 , T h o m a s Wharton to John Waddell, New Y o r k . " J u l y 15, 1 7 5 7 , Micheal Hillegas to Peter Clopper, New Y o r k . " S e p t e m b e r 12, 1 7 J 7 , T h o m a s Wharton to John Carnan, Maryland.

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During the next two years the price remained high and had risen to 7 shillings 6 pence by the middle of 1 7 5 9 . " In 1760, tea, which had been 7 shillings in January, sold for 5 shillings 9 pence before the end of the year. During 1 7 6 1 prices of Bohea tea remained relatively low, but between January and August 1762 they almost doubled and while there was a decline which lasted from September 1762 to June 1763 the level did not go as low as it had been before the rise of 1762 got under way. Neither did it regain the stability it had had before 1762 but, in 1 7 6 4 , it rose slightly in much the same way as in 1762. Prices then declined gradually until February 1 7 6 7 , when it sold at 5 shillings 3 pence a pound. B y J u l y the price was rising and in August and September it sold at more than 6 shillings a pound. In this year, in the midst of much discussion among merchants about non-importation from England, supplies reached the port from other areas, and prices of tea dropped nearly to 5 shillings in October 1 7 6 7 , as is clear from the explanation that "tea we can import from any port of the world but London, legally, although there is great quantities come here from Ireland and the West Indies owing to our want of officers and no vessel of force lying here at present." 78 That quantities of tea were on hand or being received is indicated by the low level of prices in the years 1768 and 1769. In M a y 1768, when the merchants of Boston, New York, and Philadelphia were drawing up a resolution "to import no dry goods from Britain after the first of next August until some acts passed in England laying duties on several goods imported here be taken off," 7 9 Bohea tea was selling in the Philadelphia market at 4 shillings 4 pence. By December of that year it was down to 4 shillings. When in March 1769 "the merchants of this city coolly and with great unanimity resolved to decline ordering any more goods, a few articles excepted, from Great Britain until these acts of Parliament we complain of are n

August 29, 1759, Thomas Wharton to Joseph Bennett. October 16, 1767, Orr, Dunlope and Glenholme to William Beath and Co., Newry, Ireland. The merchant's use of "legally" is explained by Dr. A. M. Schlesinger: "Through a strange transposition of terms, people had come to speak of merchandise, legally imported but brought in contrary to the agreement, as 'contraband.' 'Tea from Holland may lawfully be sold,' wrote Hutchinson. 'Its a high crime to sell any from England.' " Schlesinger, Arthur M., The Colonial Merchants and the American Revolution, 1763'77'PP' 7 8 f" M a y 5, 1768, Orr, Dunlope and Glenholme to Benson and Postlethwaite, Liverpool. 78

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repealed," 80 tea was selling at 3 shillings 9 pence and by June 1769 was as low as 3 shillings 3 pence. In fact, in the controversial years from 1 7 6 5 to 1769 it was coffee, not tea, which was rising in price. T e a was supplied in the Philadelphia market in 1769 at the lowest prices it reached in any year for which we have price data and was sold as low as 3 shillings 9 pence in November and December of that year. Prices of tea advanced to 5 shillings 3 pence in February 1 7 7 0 and reached 7 shillings 5 pence in M a y , when the news of the partial repeal of the revenue acts led the merchants, after several meetings, "to go into a general importation, except tea." 81 Yet a price as high as 7 shillings 6 pence lasted only in the four months from M a y to August 1 7 7 0 , and tea was selling at 5 shillings 6 pence by January 1 7 7 1 and at 4 shillings from March to August 1 7 7 2 . After a slight rise at the end of the year, the same price was quoted from March to M a y 1 7 7 3 . Toward the middle of 1 7 7 3 the merchants seemed quite as willing to retain their tea as to sell it. Pollard, writing to Boston, stated: " T e a has taken a sudden rise here and the dealers in that article don't incline to sell any large quantity. They ask 5 shillings per pound but I believe none has been sold at that price." 82 Some were in such straits as to be willing to shade their price, and though large dealers wisely quoted theirs at 5 shillings, 83 there was no month before November in which prices of tea averaged as much as 5 shillings. The explanation given for this change of price was: " T h e great talk of war altered the prices of several things in our market and made them fluctuate. Tea got up to 4 shillings 3 pence to 5 shillings per pound in a day or two. Some people do sell this article now for 4 shillings 6 pence per pound by the chest." 84 A new factor entered into the tea situation when it was attempted to send some directly to the port of Philadelphia and we learn that " w e are hourly expecting the tea here which I fear will make some disturbance as many inhabitants of the city seem disposed to " M a r c h 1 1 , 1769, Thomas Clifford to Walter Franklin, New York. " M a y 1 3 , 1 7 7 0 , Thomas Clifford to Lancelot Cowper, Bristol, England. " J u n e 1 7 , 1 7 7 3 , William Pollard to Samuel Ellit, Boston. " J u n e 1 7 , 1 7 7 3 , William Pollard to Thomas Lee, Boston. " J u l y 16, 1 7 7 3 , William Pollard to Baltus Van Fleek, New York.

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oppose its being landed. I wish that the East India Company had kept it at home and I am of the opinion they will wish so before they receive remittance."' 5 When it is considered that tea sold at 6 shillings a pound in N o vember and December 1 7 7 3 or at a higher price than was paid for it at any time after the middle of 1 7 6 6 except during the seven months of 1 7 7 0 , one can understand the cross-currents of sentiment about the East India Company's attempt to land it. B y December a Philadelphia dealer was "so bare of tea that all that is come or may be coming will not last above two weeks," 86 and another wrote that none of the best green was to be had except at an exorbitant price.87 Prices of Bohea tea went no higher than 6 shillings in any month in 1 7 7 4 and kept between 5 shillings and 5 shillings 6 pence for most of the year even though merchants had been informed privately that "the Congress have agreed upon a total non-importation of all goods from Great Britain and Ireland and that no goods shipped after the first of November will be allowed to be landed." 8 8 Though our prices of tea are very incomplete in the years before 1 7 5 2 , when supplies enough to last for several years were often received at one time and wholesalers were not regularly exchanging it, such quotations as we have, plus the correspondence of the merchants, are sufficient to show that prices of tea were normally much higher in the years before 1 7 5 0 than they were between 1 7 5 2 and 1 7 7 5 . Since the local produce had shifted to a higher level before 1 7 5 0 , prices of tea in the Philadelphia market were particularly low in terms of the colony's own produce and were especially low in 1 7 6 8 , 1 7 6 9 , 1 7 7 1 , and 1 7 7 2 . SUMMARY

T h e long-time movements in the prices of these staple commodities imported from Europe were dissimilar. T h e prices of Madeira wine rose between 1 7 4 0 and 1 7 6 0 , the greater part of the rise coming in the latter part of the decade of the fifties. F r o m 1 7 6 0 to 1 7 7 5 the price of Madeira wine was usually at least twice what it had "November England. December ' December "October i,

1 8 , 1 7 7 3 , W i l l i a m Pollard to Benjamin and J o h n Bower, Manchester, 1 8 , 1 7 7 3 , William Smith to Mercer and R a m s a y , New Y o r k . 1 7 , 1 7 7 3 , William Poiiard to William Barnett, I\ewport. 1 7 7 4 , T h o m a s C l i f f o r d to T h o m a s F r a n k , Bristol, E n g l a n d .

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been between 1 7 2 0 and 1 7 4 0 and tended to rise still further after 1 7 7 1 . In contrast, the fluctuations in the prices of salt, gunpowder, and pepper centered around a horizontal trend, at least after the early thirties, and the price of tea had a declining trend. T h e most important factors affecting prices of these other commodities imported chiefly from Europe were the two major wars. Gunpowder had the most extreme fluctuations and rose especially high when France entered the war which had been started with Spain in 1 7 3 9 and when Spain entered the war which had begun with France on this continent in 1 7 5 4 . One of the most striking contrasts between these imported commodities and the staples of Pennsylvania, aside from the difference in trend, is the behavior of the prices in the first part of the war which was declared in 1 7 3 9 . Unlike the domestic commodities, most of which had their peak of prices in 1 7 4 1 , fine salt, pepper, tea, and even Madeira wine did not rise above the pre-war level until 1 7 4 2 or later. Coarse salt also was at its peak in 1 7 4 2 , but it had started to rise after 1 7 3 9 .

CHAPTER

XI

T R A D E IN BRITISH

GOODS

Although the trade between England and Philadelphia included such important articles as London loaf sugar, Liverpool salt, gunpowder, tea, and many spices, such as pepper, the bulk of the trade consisted of manufactured articles. According to Clifford, the ships brought from England "all kinds of British manufactories in great abundance and India goods, etc. In the last of the winter or early in the spring [we] choose to import our linens and other things fit for summer, the latter end of which we should have our woolen goods of all kinds ready for the fall sale to use in winter. The spring is the best time for iron mongery, cutleryware, furniture for furnishing houses, and all other brass and iron work. Our imports of those articles are very large, the people being much employed in agriculture, husbandry, clearing and improving lands, but slow progress is made in the manufactories here. Good grindstones assorted, and sometimes a quantity [ o f ] Newcastle coal, would sell readily. . . . Empty bottles, phials, and other glass will sell. Those articles are what we chiefly get from your part of the country." 1 T h e varying specifications of the grades of these goods have prevented the determination of a consecutive series of prices. The changes in the grades and in the description of the grades was only one reason why these commodities were not quoted in the prices current lists of the newspapers. An even more pertinent reason was that they were seldom traded in at wholesale by the merchants. The goods were imported by Philadelphia merchants from British houses who granted credit terms or were sent on consignment to the Philadelphians. In either case the local merchants usually disposed of these goods at retail. T o understand more clearly the problem involved in the sales of manufactured articles, the terms of credit and the customs of trade 1

July 25, 1767, Thomas Clifford to Abel Chapman, Whitby, England. 263

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must be known. T h e letters to the English houses from Philadelphia traders reveal the usual terms of credit. For example, Powel wrote, " F o r a man that uses this trade the most advantageous way, I esteem, is always to keep a stock here on hand." 2 T h e reason for maintaining the stock was implied in a previous letter to another Londoner. " I t ' s only sold as people want immediately for use unless it be at an underrate. . . . If they be sold for their value little or none of the pay will be had in less than 12 months and some of it longer." 3 These terms were probably longer than usual because trade in 1728 was very dull. Such methods of trading would seem to exclude the textiles, ironware, and other manufactured articles from this study of wholesale prices. Overweighing all objections, however, is the fact that the prices of English goods in relation to the prices of domestic produce often conditioned the amount and direction of trade. For a description of the trade between Pennsylvania and Great Britain we have used the value of the exports from this colony to Great Britain and the value of the imports of British goods which have been frequently quoted from Whitworth. These data are in sterling and could not be converted into Pennsylvania currency by the use of prevailing exchange rates because of the variable factors of the transportation charges and of the "advance" made by Colonial merchants. It has often been pointed out that the method of computing the total value was to multiply the volume of trade in each year by the unit price in 1697. Such a procedure would give results closely approximating a physical index of trade. Unfortunately, it must be assumed that there were some items in the series which were affected by changes in market price. E v e n if a substantial number of items were not subject to change, the number of new fabrics and the changes in kinds of articles imported in the course of the Colonial period make it certain that there were items for which current prices had to be used because the article itself was not produced in 1697. In spite of the many limitations, an index of the total value of imports and exports between Pennsylvania and Great Britain does reveal significant fluctuations in trade. W h e n these data are used in conjunction with the letters of merchants in regard to the trade in ' A u g u s t 6, 1728, Samuel Powel, Jr. to John Simpson, London. "June 28, 1728, Samuel P o w e l , Jr. to T h o m a s H y a m , London.

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British merchandise in general as well as to specific commodities such as nails and osnaburgs, it is possible to give a continuous account of changes in the state of the market for British goods in Philadelphia. T h e imports of merchandise from Great Britain in the three years from 1 7 2 0 to 1 7 2 2 averaged about £24,000 sterling or about £ 3 2 , 0 0 0

CHART

XXVIII—INDICES

OF

ESTIMATED

FIRST

COST

S T E R L I N G OF T R A D E B E T W E E N P E N N S Y L V A N I A G R E A T BRITAIN,

OR

VALUE

IN

AND

1720-1775

(Base—Monthly Average,

1741-1745)

in the currency of Pennsylvania of that time. In 1 7 2 3 , when they were about one-third less, they were at the lowest point recorded between 1 7 2 0 and 1 7 7 4 . F r o m this low point imports increased rapidly, nearly doubling in value between 1 7 2 3 and 1 7 2 4 . In 1 7 2 5 the total value was nearly three times that of 1 7 2 3 , while in 1 7 2 6 it was nearly four times as large. In fact, the imports of 1 7 2 6 were the largest in any year before 1 7 3 6 .

266

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It is not surprising that, after three years in which the value of British imports into Pennsylvania increased rapidly, the market should be comparatively overstocked. In 1 7 2 7 the value of imports fell off to about the level of 1 7 2 4 , but at the beginning of 1728 the London drapers were informed that "our town is very full, especially of linens" and that "the pay here grows worse . . . and goods sell lower." 4 Nevertheless there was some demand for fine calicoes, osnaburgs,8 and India cotton checks.® During this year there was a slight increase in imports, but in 1 7 2 9 they declined to the lowest point between 1 7 2 3 and 1774. In this year, although Powel's store was "almost empty," the pay was "so bad" and the town was "so much glutted with goods" that he was "discouraged from sending for anything more yet awhile." 7 T h e year 1729 was depressed, whether measured in terms of imports, exports, or prices. In September, Powel wrote, " T r a d e with us grows worse every day." 8 T o another merchant he wrote, " T h y flannels are still unsold and will not go off at any price." 8 In interpreting the comments of merchants with respect to specific articles of trade it is important to distinguish those goods which at the beginning came largely from England but later were supplied from some other source. For example, in 1 7 3 0 linens were "the greatest drug in our country." 10 In subsequent letters it is apparent that the trade with England in linen was reduced by direct importations from Ireland and later by the development of the domestic manufacture of linens in Pennsylvania as a result of the immigration of the Irish. Early in 1 7 3 0 a Philadelphia importer reported to his correspondent in London, " W e have large quantities [of duck] from Ireland very lately and garlix are become the greatest drug we have which is also occasioned by vast quantities of linen from Ireland." 1 1 Nearly four years later the same merchant wrote, "Linens are at ' J a n u a r y i , 1 7 1 8 , Samuel Powel, J r . to David Barclay, London. * March 6, 1728, Samuel Powel, J r . to John Askew, London. " M a y 4, 1728, Samuel Powel, J r . to David Barclay, London. ' M a y 16, 1729, Samuel Powel, J r . to David Barclay, London; to Thomas Caney, London. "September 27, 1729, Samuel Powel, J r . to Thomas Foster, London. 'September 27, 1 7 2 9 , Samuel Powel, J r . to Robert Willan, London. '"January 8, 1 7 3 0 , Samuel Powel, J r . to David Barclay, London. " January 10, 1 7 3 0 , Samuel Powel, J r . to Thomas Hyam, London.

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present a v e r y great drug occasioned by great quantities from Ireland."12 It was also early in the thirties that another merchant commented when reporting that twelve pieces of linen were still unsold that " t h e y have been a drug long from the great importation of all sorts of linens much cheaper from the North Ireland." 1 3 A few years later Thomas H y a m was informed, " T h y duck I doubt will lie a great while ere 'twill sell for the cost and exchange the money. T h e y can and do bring that commodity much cheaper from Ireland having a very large bounty upon exporting it and we are now very f u l l of it." 1 4 Within the next decade the influx of immigrants, especially from Ireland, gave an impetus to the local spinning and weaving of flax and wool. Hockley reported in 1 7 4 2 that an order for 3 0 0 or 400 pounds of swingled flax was "not to be had unless notice is given to the people before hand and then it must be got from a number of people as they use great quantities themselves." 1 8 B y 1 7 4 3 , according to P o w e l , " a vast deal of linen and woolen is made within the Province; so much linen by the back Irish inhabitants that they not only hawk a great deal frequently about both town and county, but they carry considerable quantities away to the Eastward by land, quite away as far as Rhode Island." 1 " It was to be expected that such a condition would develop as an outgrowth of the trade in flaxseed. Since it was shipped primarily to Ireland, the return cargo often consisted of linen. T h e domestic industry was also stimulated by the growth of flax for flaxseed, as Powel explained in the same letter: " T h e call for flaxseed to Ireland continues and increases. It puts our people on sowing a great deal and they must work up the flax or let it perish as we have no export for i t . " 1 " I t was also possible for the demand of consumers to change the likelihood of sale of some specific article. F o r instance, in reference 13

December 4, 1 7 3 3 , Samuel Powel, J r . to David Barclay, London. December 26, 1730, Isaac Norris to Joseph Hoar and Samuel Pike, Cork. "September 9, 1 7 3 5 , Samuel Powel, J r . to Thomas Hyam, London. 15 November 1, 1742, Richard Hockley to Thomas Penn, London, Pennsylvania zine of History and Biografhy, Vol. X X V I I I , 1904, p. 38. " J u n e 16, 1 7 4 3 , Samuel Powel, J r . to David Barclay and Son, London. 13

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to duck Powel reported in 1 7 3 0 : " P e o p l e are beginning to dislike that sort of cloth. T h e y say it wears very i l l . " 1 7 At another time Norris, commenting upon a grade of linen in use in the colonies, said, "The garlix are not so much in demand as the Fashions also affected the sale of goods. In 1 7 3 3 it was said, " T h e romall [East India silk] handkerchiefs are quite out of wear here." 1 9 There was also at certain times a tendency to substitute East India products for fabrics woven in England. Powel described such a substitution in the late thirties: " T h e guenorettas and sapendecies are altogether unsalable and are all now by me and so are the poplins, though they were but a f e w years since in demand. But the great importations of India silks lessen the wear of all English manufactures fit for summer. T h e prunelloes are likewise almost out of use and all unsold and your Baragon will not do by any means nor the German serges." 20 English trade measured by the value of imports showed increasing activity from 1 7 2 3 to 1 7 2 6 followed by three years of limited shipments and then a gradual improvement in the early thirties. These general characteristics of trade were reflected in prices of textiles as indicated by the price of osnaburgs. In the first quarter of 1 7 2 0 , osnaburgs, of which there were many grades, were lower than at any other time between 1 7 2 0 and 1 7 3 1 . In the last nine months of 1 7 2 0 osnaburgs were regularly quoted in the American Weekly Mercury at 1 5 pence an ell. F r o m 1 7 2 1 to 1 7 2 3 merchants' records place the price range for osnaburgs between 1 a n d 1 6 pence an ell. T h e r e was little advance above these prices until the last part of 1 7 2 5 , when they sold as high as 19 pence. Although in the early months of 1 7 2 6 the prices appear to dip, they had returned by J u n e to a comparatively high level. F o r two years and a half the usual price of osnaburgs was between 1 7 and 18 pence. I n 1 7 2 9 the price was slightly reduced to between and 1 7 pence but advanced the following year to between 1 7 and 1 ^ / 2 pence. L i k e other English goods in 1 7 3 1 , osnaburgs declined in price, especially in the latter part of the year, when they sold between 16^2 and 1 7 pence. D u r i n g " A p r i l 19, 1 7 3 0 , Samuel Powel, J r . to Thomas Hyam, London. " A u g u s t 10, 1 7 3 1 , Isaac Norris to Richard Hill. "December 4, 1 7 3 3 , Samuel Powel, J r . to John Bell, London. " A u g u s t i , 1 7 3 7 , Samuel Powel, J r . to William Sheldon and Co.

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the period from 1 7 2 0 to 1 7 3 1 osnaburgs were usually in fair demand and probably did not fluctuate as severely as other English goods. F o r example, in 1 7 2 8 one importer wrote to London, " T h e oznaburgs, I hope may sell pretty well." 2 1 Three years later the same Philadelphian wrote, " V e r y good oznaburg will always sell." 2 2 T h e decline in price in 1 7 3 1 was evidently considered to be slight by the merchants. This is borne out not only by the letter just cited from Powel but also by the fact that in the latter part of the year Norris, who was selling osnaburgs for slightly less than in some of the earlier months of that year, wrote that "osnaburgs is the scarcest commodity with us." 2 3 Other articles of British manufacture shared in this somewhat cyclical fluctuation in trade. Among the other important commodities shipped from Great Britain were nails and ironware. In the fall of 1 7 2 7 an adequate supply of nails and ironware from the ironmongers in London seems to have been available in Philadelphia. Powel wrote in November of that year, " N a i l s are not so much [in] demand as some time since." 24 At the opening of the next year he wrote more concretely of the likelihood of having little urgent buying. H e then reported: " A l l sorts of ironware [are] exceeding plenty. Nails sold for 7 pence per pound. I think it best to keep ours for a better market." 2 5 In M a y of that year he informed the same distributor that disappointing sales were resulting from his stocks of iron products: " N o t h i n g at present being more dull in selling than ironware." 2 8 Quite unmindful of the supplies in Pennsylvania or the dullness in general trade, another London house shipped nails to Philadelphia in this very spring month when little market for them was in sight. Promptly Powel wrote, " T h y nails etc. I got on shore yesterday. I admire who could advise to ship nails. T h e y have been long a great drug here and at this time are so much so that they will not fetch 50 per cent together." 2 7 Whether the landing of the "nails etc." which Powel had been 21

J u n e 28, 1 7 2 8 , Samuel Powel, J r . to John Askew, London. J u n e 1 9 , 1 7 3 1 , Samuel Powel, J r . to T h o m a s H y a m , London. " August 1 0 , I 73 I, Isaac Norris to Richard Hill. " ' N o v e m b e r 28, 1 7 2 7 , Samuel Powel, J r . to T h o m a s Plumsted, London. J a n u a r y i , 1 7 2 8 , Samuel Powel, J r . to Thomas Plumsted, London. a M a y 4> 1 7 2 8 , Samuel Powel, J r . to Thomas Plumsted, London. 57 M a y 1 6 , 1 7 2 8 , Samuel Powel, J r . to John Simpson, London. 3

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so loath to receive proved to be less an error than he feared at the time is uncertain, but the market of the next year proved better than that of 1 7 2 8 . In the months between M a y and November 1729 the demand for nails changed quite completely. So brisk was the sale that the ironmonger in London learned from a letter of Powel in November, " I f I could have foreseen the great alteration there has happened in the price of nails within this six months I could have sent for a good parcel. T h e y are now got to 9 pence current and if no great quantities come will not be under, but there is no dependence on that. When any English commodity is very scarce with us, I have observed, we are presently overdone with that sort." 28 Other Philadelphia merchants sought supplies of nails in London in 1 7 3 0 . Norris showed disappointment with his failure to receive any in the shipment of goods forwarded to him in the spring. In acknowledging other goods he commented, " I t was unfortunate that thou did not send the nails I wrote for. They have been extreme scarce and are so still." 29 T h e change in demand for nails in the last half of 1729 and in 1 7 3 0 after the dullness of 1 7 2 7 and 1728 tallies with the change in the total curve of the value of imports of British goods. Although between 1 7 2 9 and 1 7 3 0 a rise of 63.1 per cent occurred in the value of imports, in the next two years they failed to hold at such a high level as was reached in 1 7 3 0 . More than adequate supplies of nails seem to have been attracted to Philadelphia in the early thirties. By the fall of 1 7 3 4 complaint of extreme dullness again appeared. In the meantime some shift in areas of trade had occurred. In October, Powel wrote, "Nails are a very dead article and likely to be so. They send them much cheaper from Bristol from whence we are largely supplied by the company who are owners of the iron works in Maryland and Virginia who have desired their factor here to write for as much ironware as the whole province will take off." 3 0 In general, trade with England increased from 1 7 2 9 to 1 7 3 9 , when the war between Great Britain and Spain broke out. Usually * November 8, 1 7 1 9 , Samuel Powel, J r . to Thomas Plumsted, London. May 19, 1 7 3 0 , Isaac Norris to Daniel Flexney, London. " October 4, 17341 Samuel Powel, J r . to Thomas Plumsted, London,

,,

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the imports would increase one year and decline slightly the next. The only exception to this rule was that after the imports had increased 63.1 per cent in 1 7 3 0 over the previous year, there were slight declines for three years, but even in 1 7 3 3 the value of the imports was 36.1 per cent more than in 1729. The exports from Pennsylvania to Great Britain, on the other hand, did not have the strong upward tendency shown in imports in these years. Instead they increased considerably from 1 7 2 9 to 1 7 3 1 and fell off abruptly in 1 7 3 2 . This was followed by three years of increasing exports until in 1 7 3 5 they were valued at more than in any other year from 1 7 2 0 to 1750. Although a high value of exports was maintained in 1 7 3 6 , severe declines for three years lowered the value of exports to Great Britain to the lowest point since 1729. In 1 7 3 1 , when prices of many commodities were low in the Philadelphia market, an importer ordering merchandise for spring wrote, " I know of no sort of goods much in demand here at present only duck would just now go off, but there may be a glut [of that] perhaps in the spring.'* 31 About the same time Logan pointed out that if a treaty were concluded with the Indians there might be a demand for certain types of goods. 32 E v e n after imports had declined for two more years Thomas Hyam was informed that duck was "a dull article, it being exceeding plenty." 33 A month later his Philadelphia correspondent wrote to him, " N o more of thy duck is yet sold nor do I see any prospects of its being sold suddenly, very great quantities being now in town." 34 The decline in imports had, however, affected the stocks of some goods. By the summer of 1 7 3 3 fine white flannel was "scarce." 35 Other fabrics found no ready sale. Even as late as M a y 1 7 3 5 Reynell reported to a merchant at Plymouth: "English goods are more plentiful here than I have known them these seven years. We have had vast quantities imported here this spring. They have fallen about 1 5 to 20 per cent." 38 Sales through the summer seem to have been 31

November 1 2 , 1 7 3 1 , Samuel Powel, J r . to Thomas Hyam, London. " N o v e m b e r 30, 1 7 3 1 , James Logan to Sam Storke, London. " N o v e m b e r 6, 1 7 3 3 , Samuel Powel, J r . to Thomas Hyam, London. December 4, 1 7 3 3 , Samuel Powel, J r . to Thomas Hyam, London. J u l y 6, 1 7 3 3 , Samuel Powel, J r . to John Bell, London. " M a y 3 1 , 1 7 3 5 , John Reynell to Richard Deeble, Plymouth, England.

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disappointing. I n September another English firm was warned that "times are very dull here at present. Goods sell very slow and at a very low price. W h e t h e r they will mend or not is very uncertain. T h e only thing that can induce me to think they will is the poor sales that will be made this year [which] may perhaps discourage people from shipping much next year." 3 7 At this time both the disposal of the supplies on hand and the difficulty of predicting in advance the special kinds and colors of fabrics which consumers would buy were perplexing to merchants. One way of informing British houses was to make frequent and detailed reports on what had seemed to interest consumers. This was the method followed by R e y n e l l , as he pointed out in the fall of 1 7 3 5 . H i s comment was, " S e n d no plains for the future. T h e y will not do here. . . . B y sending thee an account from time to time of what goods are sold and the prices they are sold at, thou wilt be able to j u d g e what goods will be the most necessary to send in the spring. If thou send any duroys, let half of them be mixed colors." 3 8 Just a few months before the war with Spain started, a local merchant commented on the market for textiles in Philadelphia: " V e r y few of our people will go to the price of anything better than oznaburgs for frocks. A middling sort of calico does best for this market, such as cost from 2 4 shillings to 26 shillings per piece, 18 yards in a piece." 39 T h e period from 1 7 3 9 to 1 7 4 8 can be divided into two parts: the first, when Great Britain and Spain were at w a r ; and the second, after France entered. I n 1 7 4 0 and especially in 1 7 4 1 imports from Great Britain increased markedly. N o t since the rise from 1 7 2 3 to 1 7 2 6 had imports increased for two consecutive years. T h e unusual volume, which in 1 7 4 1 was valued at the highest figure of any year from 1 7 2 0 to 1 7 4 9 , can be explained in part at least by the belief of London merchants that the war would raise the price of imported goods in the colonies. A s long as France did not join the war the merchants were doomed to be disappointed. Near the close "September 1 5 , 1 7 3 5 , John Reynell to Michael Lee Dicker, Exon, England. x October 4., 1 7 3 5 , John Reynell to Richard Deeble, Plymouth, England. " J u l y 20, 1 7 3 9 , John Reynell to Joseph Ingram and Son, London.

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of 1 7 4 0 Powel wrote, " I note what thou says about European goods —that thou expects they will be dearer here in proportion to the extraordinary charge of bringing them and indeed it should be so, but I don't observe that any goods sells for more than they did in time of peace." 10 Somewhat later he wrote to another London merchant, " I did expect the war might have had some influence on the price of European [goods], but it does not turn out so in any one sort that I know of." 4 1 T h e supply of goods on hand was large, especially in relation to the apparently limited demand from the Philadelphians. 42 During the summer of 1 7 4 2 , Hockley wrote to Thomas Penn and described the state of trade: " T h e vast quantity of goods and number of hands they are in makes everyone feel the effects of it in some shape or other and when there's so great plenty and variety the people will not buy but just as they want to be supplied and where a shopkeeper used to lay out one hundred pounds at a time they don't now ten. M r . John White has sent over a very considerable cargo to Messrs. Hamilton and Coleman to the astonishment of all his friends, and the gentlemen themselves. 'Tis true they will draw commissions let them be sold never so low, and I could at this time buy £400 sterling worth of goods at 5 per cent less than they cost in England and they must be sold and will be at vendue in a few days from this. . . . I am sure no honest factor would advise any of their employers to send any more goods yet awhile, and know this to be the case of several here who have written to several of their correspondents not to send them any more goods till they give them encouragement." 43 E v e n in 1 7 4 3 Powel admitted that the trade in European goods had been "overdone . . . for some time past, great quantities remaining upon hand." 44 Powel had recognized as early as 1 7 4 0 that it was war with France that would have the greatest effect on the shipping between Great Britain and the colonies. E a r l y in that year he predicted, "October 8, 1740, Samuel Powel, J r . to Thomas Hyam, London. " March 16, 1 7 4 1 , Samuel Powel, J r . to Benjamin and William Bell, London. " M a r c h 25, 1 7 4 1 , Samuel Powel, J r . to Thomas Hyam, London. " J u l y 24, 1742, Richard Hockley to Thomas Penn, London, Pennsylvania Magazine of History and Biografhy, Vol. X X V I I I , 1904, p. 3 1 . " J u n e 16, 1 7 4 3 , Samuel Powel, J r . to David Barclay and Son, London.

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"Should we fall into a war with France, it must unavoidably cause great alterations and difficulty in all the American trade. T h e fear of this has a considerable effect on our little trade already and its being really so must have a greater." 45 In 1744, after war with France had been declared, but before the news of it reached Philadelphia, Powel recognized that because of the supply of goods on hand such a war would not be apt to affect prices for at least a year. H e wrote, " W e daily expect to hear of a French W a r and should that be the case I suppose the insurance must rise pretty much and I do not expect the value of English goods will alter here much the first year of a war. . . . T h e Spanish war has not affected the price at a l l . " " A year later, after many ships had either been captured, been destroyed, or become privateers, with a consequent reduction in the volume of trade, Powel reported, " T h e r e is not one piece of checks of any sort in town and very few white linens." 47 Some other goods were also scarce. T h e war had increased the demand for various types of ship-fittings imported from Great Britain. As early as February 1743, when the trade in other goods had been "overdone," cordage was "very scarce." 48 Again, in the fall of 1744 a British house which had formerly shipped Russian duck here was informed that it was "now pretty much wanting and so are many other naval stores." 49 Later, the building and prospect of building ships emphasized the shortage of bolt-rope, cables, cordage, rigging, and sail cloth. 50 Nails and glass were also scarce and in demand. In August 1745 there was "not a barrel of tenpenny nails . . . to be sold in town," 5 1 while in December Powel also wrote, " T h e r e is not one box of glass or cask of tenpenny nails unsold in this city." 52 It is small wonder that with so many specific commodities " A p r i l 29, 1740, Samuel P o w e l , Jr. to Thomas Hyam, London. " A p r i l 1 8, 1744, Samuel Powel, Jr. to D a v i d Barclay and Son, London. " A p r i l 10, 1 7 4 5 , Samuel P o w e l , Jr. to John Barclay, London. " February 20, 1743, Robert Ellis to John Lidderdall, Virginia. " October 31, 1744, Samuel P o w e l , Jr. to Thomas H y a m and Son, London. " A p r i l 30, and December 30, 1 7 4 5 , Samuel Powel, Jr. to Robert Wheatle, L o n d o n ; A p r i l 25, 1746, to T h o m a s H y a m and Son, London; M a y 21, 1746, to William Blair, Belfast; September 5, 1746, to Robert Wheatle, London. M August 8, 1 7 4 5 , Samuel P o w e l , Jr. to T h o m a s Plumsted, London. " D e c e m b e r 10, 1745, Samuel P o w e l , Jr. to Thomas Plumsted, London.

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being out of stock that Powel would comment, " T h e r e never was a greater scarcity of European goods here since my m e m o r y . " " In 1 7 4 5 , as a result of a declining tendency over a period of four years, the total value of the imports from Great Britain was 40.4 per cent less than in 1 7 4 1 or approximately equal to that of 1 7 3 9 . In the closing years of the war, trade with England improved owing in part to the capture of Louisburg and the freeing of navigation from the attacks of the French. In addition there was some importation of English goods indirectly into Pennsylvania by way of the other colonies. In the latter part of 1 7 4 6 , Powel inquired for glass and rigging from South Carolina." In the spring of the next year he mentioned that there had been " a great deal of rigging come in from Liverpool, Boston, Maryland, etc." 58 Near the close of the war it became apparent to the colonists that the British ministry did not understand how much they feared the French. T o the merchants who had witnessed an almost complete stoppage of trade for a short while, largely because of the activities of the French from their base at Louisburg, the problem was acute. One of the most complete summaries of the issues involved as affecting Pennsylvania appears in a letter from Powel to Thomas H y a m in London: " I wish your ministry could be brought to j u d g e rightly of the value and consequence North America is to Great Britain and the danger of the French gaining some settlements in some part of what is now possessed by the English. If they should once get masters in America, England could never hold the balance again according to my present apprehensions. Less than half a century may enable North America, if no uncommon accident happens, to become very formidable—I mean the English part of it—as they are capable to furnish within themselves everything necessary for naval armaments of the growth and manufacture of those countries, gunpowder excepted and for this nothing but saltpetre is wanting. A n d as the people increase greatly their number, in time to come will furnish great quantities of all things necessary without being obliged to call on Europe for them. This is at a great distance, but I think thoughts 13

July 29, 1 7 4 5 , Samuel Powel, J r . to David Barclay, London. ** October 25, 1746, Samuel Powel, J r . to Gabriel Manigault, South Carolina. 55 March 4, 1 7 4 7 , Samuel Powel, J r . to Robert Wheatle, London.

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of this sort should have some weight with our great folks so that they should not part with us tamely; and at present our settlements are of so great an extent of seacoast from Carolina to Newfoundland that trade is very liable to great interruption as well as the ports open to privateers or greater force making descents if not gaining settlements. And should Cape Breton be given up, which we fear will be the case, the French on any rupture may from thence destroy all our trade." 56 T h e high prices of English goods probably tended to continue after 1 7 4 5 even in the face of increasing imports, either because the goods had been purchased in England at a high price or because the merchants felt that a certain price should be asked. Rumors in 1748 that a treaty of peace was likely to be made influenced some dealers to liquidate their stocks. T o at least one merchant, however, such a policy seemed erroneous. In a letter to a relative in London he explained what he was doing and his justification for it: " T h e notion of a peace has frightened people that had goods on hand and made them sell at almost any price to get rid of them, but for my part [ f r o m ] what I can collect from public papers, I can't find that a peace is certainly to be depended on; and if there should not be one, exchange I think will rise again as high as war which will make a great drawback upon the profits of goods that are sold upon credit; and if there should be a peace, I don't apprehend that goods will come much cheaper from England." 5 7 A short while later he mentioned that goods were " v e r y plenty" and "sold at so low a rate, that the profits will be but very small, 1 5 0 per cent is the most that can be got upon any sort of goods except coarse woolens, and many things are sold for a great deal less." 68 Before the close of October 1 7 4 8 , when he was placing orders for goods to be shipped in the spring, he commented, " T h e town is at present so full of goods that it is scarce possible to know what will be most wanted in the spring; the shopkeepers when they want anything go through every store to try who will sell cheapest before they buy. . . . If you send any more, pray buy them cheap." 8 * " M a y 3 1 , 1747, Samuel Powel, J r . to Thomas Hyam and Son, London. " [October] i 748, John Swift to his uncle, John White, London. ™ October 1748, John Swift to his uncle, John White, London. "October 22, 1748, John Swift to his uncle, John White, London.

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During the closing months of 1 7 4 8 and 1 7 4 9 , English goods on sale in the Philadelphia market declined still further in price. T h e reductions were so substantial that the " a d v a n c e " on goods, which had been regarded as low at 1 5 0 per cent, was lowered to 1 0 0 per cent and "reckoned a good sale" in April 1749. 0 0 T h e situation was also aggravated by the large imports in 1 7 4 9 , which were more than two and a half times as much as in the previous peak year of 1 7 4 1 and more than the total of the three years from 1 7 4 6 to 1 7 4 8 . T h e pouring in of English goods is reflected in the comments of John Swift. Although near the close of April 1 7 4 9 he wrote, "Spring goods are very much wanted now," 6 1 scarcely more than a month later he reported, " T h e town is already overstocked with goods and the spring far advanced so that I have no hopes of having a very quick sale nor of getting a great profit by them." 0 2 Imports from Great Britain continued to arrive in great quantities. In fact, from 1 7 4 9 to 1 7 7 4 there was not a year in which the value of imports was as low as it had been in the maximum year before 1 7 4 9 . In the interim between the Treaty of Aix-la-Chapelle and the beginning of the French and Indian W a r , prices of English goods declined. T h e total value of goods imported during this period was high, partly, perhaps, because of the dullness of the English market and the hope that the distant colonies offered a more profitable one. 63 Some of the other correspondence of the period reveals that, from the point of view of the local merchants, too much merchandise had been imported. E a r l y in 1 7 5 1 one merchant wrote, " W e should have sent for many more goods, but the place is so stocked with them that we have very little sale." 64 In 1 7 5 2 European goods were "not wanted." 6 5 At the beginning of 1 7 5 5 another Philadelphian wrote that "people complain much of dull times." 66 Toward the end " A p r i l 1 6 , 1 749, John S w i f t to his uncle, John White, London. " A p r i l 27, 1 7 4 9 , John S w i f t to his uncle, J o h n White, London. " J u n e 2, 1 7 4 9 , John S w i f t to his uncle, John White, London. " M a y 22, 1 75 1 , John Stamper to Simpson and Blackburn, London. " A p r i l 1 6 , 1 7 5 0 , John Stamper and W. Bingham to John and George O ' K i l l , London. " M a y 9, 1 7 5 2 , Sam Emlen to John Pemberton, London. " F e b r u a r y 1 8 , j 7 5 5 , William Dickinson to Israel Pemberton in Charleston, South Carolina.

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of the year Reynell commented: "Trade still continues dull, though the prospect of an approaching war with France has advanced the price of some goods already, while others of which there is great quantities in town continue the same. There can be no doubt if we have a French war, goods will advance. They sold [during] the last war at about 175 per cent advance and bills of exchange were at about 85 per cent so there was a good profit and I hope in case we have a war it will be the same again." 67 During the conduct of the French and Indian War there was another large swing in the value of goods imported from Great Britain. Some English goods were becoming scarce or had been distributed among the retailers. For example, at the beginning of 1756 it was reported that "as for sixpenny nails, we have none at market only in shopkeepers' hands."68 Such a condition would give an impetus to increased importations. From 1755 to 1757 the total valuation of imports was moderately low but rising. From 1757 to 1760 the value of the imports increased at an extremely rapid rate. In that time they climbed to within 2.8 per cent of the peak of imports in the Colonial period. From this high level the importations from Great Britain dropped by more than two-thirds in 1761 and held at about the same low point in 1762. The large and increasing imports, especially from 1758 to 1760, more than satisfied the current demands of the colonists. In 1 7 6 1 a merchant complained that " I cannot find that the profits of this trade is at all adequate to the risk." 69 Some of the contributing factors cited by merchants were the extremely large quantities imported and the slow sales.70 The same merchant inquired of one in New York, "Pray how do you go on in York? Can you really maintain yourselves? If you do, you are better off than the Philadelphians. For my part I slave and sink." 71 About the same time he explained that "so great is the glut of dry goods with us here" that he had not sold £500 worth of goods and had not been paid for more than £20 of that.72 "December 1 7 , 1 7 5 s , John Reynell to Thomas Sanders. " J a n u a r y 22, 1 7 J 6 , Thomas Riche to Samuel Cornell, New Bern, North Carolina. " May 20, 1 7 6 1 , Daniel Clark to Thomas Dromgoole, Haiti. " May 25, 1 7 6 1 , Daniel Clark to Mildred and Roberts, London. " J u l y 8, 1 7 6 1 , Daniel Clark to William Howard, New York. " J u l y 1 7 , 1 7 6 1 , Daniel Clark to William Neatt, London.

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In the spring of 1 7 6 2 Clark felt that conditions had improved so much that it would be profitable to trade from Ireland and E n g land to Pennsylvania, then to the West Indies, and back to Philadelphia en route to England and Ireland. H i s specific suggestions were: " I think you could employ a vessel to advantage between Galaway, Liverpool, this place and the West Indies, viz: from Galaway to Liverpool, there take in salt, coal, and ale, and on your coming out call at the Isle of M a n ; take in Bohea tea, gin, brandy, silk handkerchiefs, etc. These always sell well here and we are happy in the freedom and liberty of our trade, being strangers to any interruption from officers. Then from this town to the West Indies and here back again [in] time . . . to return to Ireland with flaxseed. Could you but establish the servant or passenger trade to this country you'd find [it] extremely advantageous." 73 Some of the specific factors which probably influenced Clark were that "India goods are much called for," 7 4 "there is not a good piece of osnaburgs in the city," and "Irish linen is scarce and high." 7 5 In the years from the Peace of Paris to the Revolution, the imports of British merchandise had two somewhat cyclical movements, each of which had two peaks. Imports increased during 1 7 6 3 and 1 7 6 4 and, although they sagged for two years, they maintained a comparatively high level from 1 7 6 4 to 1768, attaining a secondary peak in 1 7 6 8 . In the next two years imports fell off to such an extent that in 1 7 7 0 they were lower than at any other time between 1749 and 1 7 7 4 . In 1 7 7 1 imports from Great Britain increased and totaled to the greatest value in the Colonial period. Just as after the lower peak of 1 7 6 4 , there was a decline for two years after 1 7 7 1 in the value of imports, followed by a rise in 1 7 7 4 to another secondary peak. In 1 7 7 5 there were practically no imports from Great Britain. T h e fluctuating character of Pennsylvania trade with Great Britain in the years between the end of the French and Indian W a r and the beginning of the Revolutionary W a r is reflected in merchants' comments. As usual, after the close of war, the Philadelphia market was disturbed by "several bankruptcies," " a scarcity of money," and in™ M a y 3 1 , 1 7 6 2 , Daniel Clark to J o h n and Andrew French, G a l w a y , Ireland. " J a n u a r y 2 5 , 1 7 6 2 , Daniel Clark to Mildred and Roberts, London. 15 October 1 5 , 1 7 6 2 , T h o m a s C l i f f o r d to Isaac C o x , New Providence, Bahamas.

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creasing "expenses of l i v i n g . " In addition C l i f f o r d wrote, " T r a d e is extreme dull. T h e ships from London have brought vast quantities of goods some of which, I think, they never will get paid for as that branch is quite overdone." 7 6 Not only were English goods dull, but even West India staples sold slowly. In the summer of 1 7 6 4 a merchant reported, " I have the most of your last shipment still on hand, which must surprise you, but we have had dull times beyond conception, and, without in manner giving away your goods, I have not been able as yet to put them o f f ; however, I think trade begins to be a little brisker, and I hope by the fall there will be some demand for your produce, which at present is very d u l l . " " It is doubtful that in the fall there was much improvement, for in November C l i f f o r d explained: "Business in the dry goods is indeed v e r y poor with many of us, owing much to the difficulty we are at to get paid for what we sell. T h e commotions we have been in amongst ourselves and the Indian war have also contributed thereto." 78 In the opening months of 1 7 6 5 , Newcastle coal was also reported as " s l o w sale." 7 9 T h e protests against the Stamp Act contributed also to the uncertainty of 1 7 6 5 . In the late summer and early fall there were considerable exports to N e w E n g l a n d where the merchants intended " t o lay up their vessels after the time fixed for the Stamp Act to take place comes, unless some method is agreed on for clearing out without stamps." 8 0 B y November it was said that in Philadelphia " a general stop is put to business. . . . A general aversion appears among the people to the late acts of Parliament. Much is said about declining to send for any more European goods unless those acts are repealed, but nothing conclusive is yet done." 8 1 A n agreement was made, however, "not to order any goods from E n g l a n d on commission and [ t o ] forbid all the goods heretofore ordered unless the Stamp Act is repealed." In addition the "merchants and traders" were "determined to encourage the Irish trade by im" April 7, 1764, Thomas Clifford to Isaac Cox, New Providence, Bahamas. " J u l y 6, 1764, Daniel Roberdeau to Meyler and Hall, Jamaica. " N o v e m b e r 20, 1764, Thomas Clifford to Mildred and Roberts, London. " A p r i l 6, 1 7 6 5 , Thomas Clifford to Gerard G. Beekman, New York. "October 8, 1 7 6 5 , Thomas Clifford to Harper and Hartshorne, Antigua. " N o v e m b e r 1 7 6 5 , Thomas Clifford to Walter and Sam Franklin, New York.

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porting everything that can be l a w f u l l y brought from Ireland." 8 2 A t the same time it was pointed out that " t h e chief articles that answer here from Ireland which can be brought are linens, which ought to go to Liverpool to receive the bounty, beef, butter, and . . . servants."* 3 Another form of protest was referred to when it wras pointed out that " g r e a t quantities of homemade cloths, linens, blankets and various other articles are daily brought to this city and manufactories [are being] e r e c t f e d ] . I think it the duty of every man in E n g l a n d , more especially those in trade, to endeavor by all justifiable means to get the Stamp Act repealed." 84 E v e n in 1767, trade was still " v e r y dull here at present." 8 ' 1 A l s o , in the fall of that year the house of Baynton, W h a r t o n and M o r g a n stopped payment. 86 T h e attempt to promote non-importation in the spring of 1768 was not apt to be successful, according to one Philadelphia firm. " A resolution," they wrote, " o f importing no dry goods from Britain after the first of August next . . . wre think will not become general from what we see and therefore it will in a short time die away, as many, and indeed the principal, importers here have not, nor will they sign the resolution relating thereto." 8 7 Another merchant referred, during the year, to the market for specific types of goods. T h e necessity on the part of some people " t o retrench their expenses . . . renders gloves, waiters etc., very unsaleable." 88 Later he also mentioned that "superfine cloths may sell any season, but coarse woolens will only do in the fall." 8 9 T h e decline in the imports during 1769 and 1 7 7 0 was foreshadowed in this comment of Clifford's in December 1768: " T h e " N o v e m b e r 9, 1 7 6 5 , B e n j a m i n M a r s h a l l to B a r n a b y E g a n , Pennsylvania Magazine of History and Biography, V o l . X X , 1 8 9 6 , pp. 2 0 9 - 2 1 0 . " N o v e m b e r 9, 1 7 6 5 , B e n j a m i n M a r s h a l l to T h o m a s M u r p h y , Pennsylvania Magazine of History and Biografhy, V o l . X X , 1896, p. 209. " D e c e m b e r 1 4 , 1 7 6 5 , B e n j a m i n M a r s h a l l to J o h n Scott, Pennsylvania Magazine of History and Biography, V o l . X X , 1896, p. 2 1 1 . K J u l y 4 and O c t o b e r 9, 1 7 6 7 , O r r , D u n l o p e and G l e n h o l m e to B i g g e r and Hurlbert, London. " S e p t e m b e r 20, 1 7 6 7 , O r r , D u n l o p e and G l e n h o l m e to G r e g , C u n n i n g h a m and C o . , New York. " M a y 1 1 , 1 7 6 8 , O r r , D u n l o p e and G l e n h o l m e to Benson and P o s t l e t h w a i t e , L i v e r p o o l . " J u n e 25, 1 7 6 8 , T h o m a s C l i f f o r d to T h o m a s P e n i n g t o n , Bristol, E n g l a n d . ™ O c t o b e r 12, 1 7 6 8 , T h o m a s C l i f f o r d to Isaac Sperin T i v e r t o n , E n g l a n d .

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frowns of our mother country and the unfavorable appearance of our American affairs does not encourage large importations from Great Britain."*0 T h e feeling of resentment increased in the early months of 1769, as is evidenced by the recurring comments of Clifford. T o a Bristol exporter he wrote, " T h e inhabitants of this continent are generally uniform in one sentiment of retrenching their expenses by lessening their imports and supplying themselves as much as possible at home."*1 T o a London correspondent he wrote, "Trade is so shackled here at present that we are obliged to decline any further importation from Great Britain."* 2 By April, joint action had been agreed to. At that time Clifford wrote, "Our merchants have come to resolutions of importing no goods from England, a few articles excepted, until some of the late acts of Parliament. . . are repealed."*' At the same time Clifford wrote to Bristol, giving specific instructions as to what might be sent to him from England and pointing out the fact that Irish goods were not included in the non-importation agreement. "Irish linens may be freely imported from Cork. . . . I think it's probable a few barrels or tierces of mess beef might be disposed of to a d v a n t a g e . . . . As tin when wrought up is so useful among the poor, perhaps a few boxes of that mayn't be improper. . . . I think 100 dozen of Clothier's fine wool cards would not at this time be too many. I have imported those kind of cards and although they have been used, yet when they are dressed up they are little inferior to new. Cotton cards have been shipped through a mistake instead of these which prove but of little value, [and] therefore, ought to be avoided."*4 There were recurring comments that goods were "longer on hand than they formerly would have done" and "payments still slower."*5 Toward the middle of the year certain articles which the colonists needed were becoming scarce. Not only were stocks lacking in the warehouses of the importers but only small amounts could be found among the retailers. One of the scarcest articles was nails. An illustra" December 7, 1 7 6 8 , Thomas Clifford to David and John Barclay, London. " F e b r u a r y 28, 1 7 6 9 , Thomas Clifford to Lancelot Cowper, Bristol, England. " F e b r u a r y 20, 1 7 6 9 , Thomas Clifford to Mildred and Roberts, London. " A p r i l 8, 1769, Thomas Clifford to Thomas and I. Phipps, England. " A p r i l 8, 1769, Thomas Clifford to Lancelot Cowper, Bristol, England. " J u n e 9, 1769, Thomas Clifford to Lancelot Cowper, Bristol; September 30, 1769, to Walter Franklin, New York.

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tion of the shortage is given by the explanation: " N a i l s are very scarce here owing to our merchants stopping importing goods from England. It was not in our power to get you a whole cask of sixpenny nails, though we searched every store in town. Was obliged to take a half barrel." 96 By the close of 1769 restricted imports and substantial sales had reduced still further the stocks of English merchandise. The general conditions appeared bright to Clifford: " A great number of merchants are selling off their stock of goods. Indeed the clerks tell me more than half the stores in town will be quite clear in a short time, which will leave a great opening for importations in the spring in case the Revenue Act should be repealed." 97 H e also pointed out the advantageous trade possible in certain specific commodities. In the latter part of November and the first of December, when he was placing orders for the following spring, he wrote, " I f trade opens in the spring, care should be taken not to overdo it. Blankets and all kinds of coarse woolens are much wanted. . . . Nails are indeed very scarce. Our imports in general will I think by that time be well exhausted." 98 T o his son, Thomas, who was traveling in Great Britain, Clifford wrote, " I don't think there is a bag of large shot in the city while bar lead and small shot, especially the former, lays on hand. Small shot is most wanted in the spring and large in the fall. . . . Forge hammers is much wanted, anvils not so saleable. . . . A l l sorts of woolens are so wanted that vendue is best place, I think, for them to be sold at." 99 In the early months of 1 7 7 0 Clifford continued to believe that restrictions on trade imposed by the non-importation agreements would be relaxed. In February he wrote, " T h e committee of merchants will put off a general meeting, I expect, if they can, until we hear what Parliament will do respecting the Acts and if they determine against us I believe some new agreements will be entered into and such articles as we are most immediately in want of allowed to be imported." 100 Even at the beginning of M a y he expected that " w e shall agree to import all such goods as are free of duty for raising a " J u n e 2 i , 1769, Hollingsworth and Rudulph to Alice Blanchfield, North Carolina. "November 8, 1769, Thomas Clifford to Lancelot Cowper, Bristol, England. "November 1 7 , 1769, Thomas Clifford to Lancelot Cowper, Bristol, England. "December 1 2 , 1 7 6 9 , Thomas Clifford to his son, Thomas, traveling in Great Britain. "* February 20, 1 7 7 0 , Thomas Clifford to Lancelot Cowper, Bristol, England.

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revenue." 1 0 1 B e f o r e the close of the month another merchant revealed the fact that " t h e tradesmen are uniting to prevent the importation of goods and it seems likely the prohibition will continue." 1 0 2 B y the middle of J u n e , C l i f f o r d appeared to have been reconciled to the voluntary restrictions on trade. A t that time he wrote to Bristol: " T h e non-importation agreement seems more firmly fixed than ever. Upon every new resolve of this sort, efforts are made to help ourselves and to avail of such measures as are in our power and indeed if 'tis not our own faults it will be productive of good, by introducing moderation, industry, and frugality. A commendable spirit is raised in the people for promoting the culture of silk for which the soil and climate of these Provinces seem exceeding well adapted. Great success hath attended the process so far as we have proceeded. I must not omit to remark that all the other colonies upon hearing the merchants of R h o d e Island had broke through the agreement, resolved to have no trade, commerce, or intercourse with them." 1 0 3 T h e conditions in the first part of 1 7 7 0 gave to the merchants the impression of a great scarcity of goods. I n the correspondence of C l i f ford with his son there are many references to the lack of English goods in the market: " I have frequently written thee that many people were selling of their goods at vendue and it's clear to me, if the Acts are not repealed, from the restless disposition of many people and the necessitous circumstances of others, that some trade will be allowed and a reception here f o r all sorts of coarse woolens. Some checks perhaps may be allowed as very few is left on hand of any kind and scarcely any osnaburgs. Calicoes are in better demand than they were, but I cannot either at private or public sale get any of the women's stuff, shoes. I think none have been sold since thee went away [October 1 7 6 9 ] . " 1 0 4 I n other specific comments to British merchants C l i f f o r d mentioned that wool and cotton cards and saltpetre would be "saleable." 1 0 5 B y September C l i f f o r d had realized that the high prices indicated 101

May 9, 1 7 7 0 , Thomas Clifford to Parr and Bulkeley, Lisbon. May 22, 1 7 7 0 , Israel Pemberton to Joseph Pemberton in Annapolis, Maryland. 1M June 14, 1 7 7 0 , Thomas Clifford to Lancelot Cowper, Bristol, England. 10 * February 19, 1 7 7 0 , Thomas Clifford to his son, Thomas, traveling in Great Britain. 105 June 1 4 , 1 7 7 0 , Thomas Clifford to Lancelot Cowper, Bristol, England. 102

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an unwillingness on the part of merchants to sell when they feared that they might be unable to replenish their stocks rather than an actual scarcity of goods. At that time he warned Cowper in Bristol, " O u r shops are not quite so bare as one might expect and I am of the opinion when the trade opens we shall not find so great a demand for goods as hath been expected. I wish it may not be overdone.'" 0 6 Before the close of the month the subscribers to the non-importation agreements decided that beginning January 1 5 , 1 7 7 1 they would "be at liberty to import from Great Britain as usual save such goods as now or hereafter may be subject to duties for raising revenue." 1 0 ' A f t e r the restricted importations of 1 7 6 9 and 1 7 7 0 it is not surprising that the value of the imports in 1 7 7 1 exceeded those of any other year. Likewise, in the light of the enormous imports of 1 7 7 1 , it is not surprising that before the close of the year Clifford would complain of an overabundance of goods. In a detailed letter to his son he described the general condition, mentioned a few articles which were out of stock, and complained of "the great slackness of customers appearing to buy the common run of our goods. Indeed we sell very little and I hear others make the same complaint. I do think the Province much overstocked and before thee buys goods to send home after so long absence thee will no doubt expect orders and proper hint from me and I can see no encouragement to make out orders yet. . . . W e apprehend the great import of ravens duck for some time past may have occasioned osnaburgs to be so remarkable dull. W e are out of brown Russia shirting of all sorts and the raven duck almost gonej very few calicoes on hand. N o cambric or lawn nor any India goods, so that, if we have proper encouragement, shall furnish thee with a list of spring goods. Sale of checks is so uncommonly dull." 1 0 8 A month later Clifford felt that some dyestuffs, especially madder and redwood, would sell in the following spring and that cordage at a reasonable price would find a market in Philadelphia} "but English rigging will not sell as well as that made here." 1 0 9 One of the difficulties in the English trade, according to Clifford, was that "when the ""September 1 5 , 1 7 7 0 , T h o m a s C l i f f o r d to Lancelot C o w p e r , Bristol, E n g l a n d . September 2 7 , 1 7 7 0 , T h o m a s C l i f f o r d to Lancelot C o w p e r , Bristol, E n g l a n d . ' " O c t o b e r 1 6 , 1 7 7 1 , T h o m a s C l i f f o r d to his son, T h o m a s , traveling in Great Britain. " " N o v e m b e r 1 6 , 1 7 7 1 , T h o m a s C l i f f o r d to his son, T h o m a s , traveling in Great Britain. m

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goods cost most with you, they are lowest with us, occasioned by their great plenty." At this time Bristol glass was overstocked. 110 T h e continuation of the import trade at a high rate in 1 7 7 2 , although slightly lower than that of the previous year, added to the difficulties of the merchants. According to Clifford, " T h e quantity of European goods that has been imported of late is much too great for the consumption and occasions slow sale. Large quantities must and will lay on hand at present. Don't order any, trade being much overdone." 1 1 1 About the same time another merchant wrote to a trader in Jamaica that "business has been a little brisker than usual on account of the arrival of sundry vessels from different parts of Great Britain but still a general complaint of trade prevails that European goods are sold on too low terms and the demand by no means equal to the imports." 1 1 2 By J u l y the situation appeared so serious to Pollard that in writing to England he gave warning that the overstocking of the Philadelphia market might precipitate failures here that would have repercussions in London, Liverpool, and Bristol: " T r a d e was never in such a situation here as at present. T h e city and country are glutted with every kind of goods and thousands of pounds worth are selling weekly at the different vendues for much less than they cost 5 and this has been the practice now for near two years and perhaps may continue for 18 months or two years more, in which time I cannot think but many must fall. And this probably may affect some houses on your side the water, which is the reason I mention it, that you may be on your guard with your London, Liverpool, or Bristol friends . . . who deal largely this way, for I am certain there must be a great deal of money sunk by the trade in this city, there being hundreds more people in this trade, importers and retailers, than can possibly support themselves and families by it." 1 1 3 In September there were specific comments that pepper and tea were being offered at reduced prices and that nankeens which "early in the season sold for 1 1 shillings a piece are in no demand at pres1,0

November 16, 1 7 7 1 , Thomas Clifford to Thomas Frank, Bristol, England. M a y 16, 1 7 7 2 , Thomas Clifford to David and John Barclay, London. " ' M a y i o , 1 7 7 2 , William Pollard to George Whitehorn Lawrence, Jamaica. ' " J u l y 1 , 1 7 7 2 , William Pollard to John Woolmer, Halifax, England. 111

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ent." 1 1 4 Pollard's anxiety as to the continued solvency of the local importers, since " m a n y of them I am certain sell goods for no profits" and since "Manchester goods are selling daily for less than the first cost," was increased by information which he received as to the financial position of many British firms. " I am extremely sorry," he wrote, " t o hear of the wretched fate of so many considerable houses in trade as I doubt not it will affect in some measure the whole trading body throughout the Kingdom. I wish we may not have something of the sort in this city for there appears to me something v e r y extraordinary in the conduct of our merchants for a year or two past." 1 1 8 Clifford also referred to the overstocking of European goods and the fact that sales had been "much worse than usual." 1 1 6 T h e dullness of trade continued. T h e merchants were caught on the horns of a dilemma. In the first place the high prices of domestic produce discouraged exportation and made the problem of remitting payments more difficult. In the second place, the prices of imported goods which they sold remained low here. Pollard, in a letter to a firm in Manchester, described the slackness in trade: " A s to business, there seems scarcely to have been any done for several weeks past. T h e L o n don vessels are expected in the course of a week, but I believe very few goods indeed. . . . It is the general theme with every one that they have considerable quantity of your goods on hand and that they have been sold so low for some time past that they cannot get the first cost for them and, therefore, cannot think of ordering any more until an alteration takes place; and I assure [ y o u ] I fear that will not be any great degree this year, for the country stores all complain of being overstocked with goods and the demand very slow indeed." 1 1 7 P o l l a r d also revealed the fact that the conditions of trade made the merchants somewhat irascible. " T r a d e , " he wrote, "is in such a wretched situation that the tempers of the merchants seem so soured that, if one merchant on your side charges an article one penny higher than his neighbors, the man here seems to make it his business, having indeed very little else to do, to blaze it to everyone he is acquaintSeptember 26, 1 7 7 2 , T h o m a s C l i f f o r d to R o b e r t and J o h n M u r r a y , L o n d o n . October 3, 1 7 7 2 , W i l l i a m P o l l a r d to Peter H o l m e , L i v e r p o o l . " " O c t o b e r 21 and N o v e m b e r 27, 1 7 7 2 , T h o m a s C l i f f o r d to T h o m a s F r a n k , Bristol, England. m A p r i l 6, 1 7 7 3 , W i l l i a m P o l l a r d to B e n j a m i n and J o h n B o w e r , M a n c h e s t e r , E n g l a n d . 114

115

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ed with. . . . I have visited every one of your friends this week and I find that the orders for the fall will be very small indeed. Samuel Howell and Sons, B. Rawle, P. Turner, and Jacob Winey are leaving off. Several others are standing still for a while. M r . William Miller, Samuel Pheasants and Meace and Caldwell seem a good deal dissatisfied." 118 Pollard also gave his explanation for the fact that the consumption of English cloth was not as much as might be expected. In his comments he pointed out the transition which had taken place in the colony from a frontier settlement to a more densely populated community which turned the attention of people to some forms of manufacture. In his own words, " M a n y people are of opinion that the country people who used to wear check have substituted Russia linen, . . . but I am inclined to think that the manufactory of coarse linen increases fast in the country, for the old settlers, who had good plantations, go off apace and when their farms become divided among their children each has not sufficient for the employment of his children in agriculture 5 and many thousands rather than go farther back into the country where lands are cheap or undertake the arduous task of clearing new lands, turn to manufacturing and live upon a small farm as in many parts of England." 1 1 9 T o a Liverpool exporter Pollard wrote, " T h e merchants seem determined to import very little until the consumption has taken off the greatest parts of the prodigious stock that is now on hand." 120 In detail Pollard criticized a shipment of stockings from Liverpool. " T h e fabric is not very suitable to this market—these are a strong, serviceable stocking and those of 4 threads at a low price would have looked much better and would have sold better here. T h e people of this country have got into a bad practice of importing the lowest priced goods of every kind." 121 Another merchant reported that "we have plenty of plate iron, copperas, spanish brown, redwood, alum, and brimstone. Send none of these articles." 122 " ' A p r i l 1 8 , 1 7 7 3 , William Pollard to Benjamin and John Bower, Manchester, England. "* April 6, 1 7 7 3 , William Pollard to Benjamin and John Bower, Manchester, England. May 6, 1 7 7 3 , William Pollard to Peter Holme, Liverpool. m May 6, 1 7 7 3 , William Pollard to William Crosbie and J r . and Co., Liverpool. 122 May 20, 1 7 7 3 , Thomas Clifford to Thomas Frank, Bristol, England.

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T h e colonists were not alone in suffering a contraction of trade in 1 7 7 3 . In a letter to Thomas Franklin in N e w Y o r k , William Pollard mentioned that he had "received a letter from our mutual friend, Messrs. Bower of Manchester, advising me of their great distress on account of the many failures at home and the almost total stop of circulation in trade and begging me to intercede with their friends on this side [ o f ] the water for their friendly assistance at this alarming period." 1 2 3 During the summer there was a slight improvement in business in Philadelphia. Pollard felt that the local situation was better than that in N e w Y o r k , largely because certain merchants in Virginia and Maryland had not received their usual supply of goods in the fall of 1 7 7 2 and the spring of 1 7 7 3 . As a result, they had been forced to take "considerable quantities from this city and been a means of scattering that glut of goods that were on hand here." 1 2 4 This indirect demand from Maryland and Virginia continued into the fall and, although there was hardly what could be called a boom in business, the merchants were confident that "goods will fetch a better price this fall."125 Nevertheless, in the fall and winter of 1 7 7 3 the business situation was not without its problems. F o r example, "checks still continue to be sold at vendue in great quantities and at very low r a t e s , " 1 " and "this country is overstocked with woolens . . . and these too flimsy for outside and too thick for linings." 1 2 6 Besides, there were some failures in Philadelphia. 1 2 7 E v e n in January 1 7 7 4 , "woolens never did before sell so bad as they have this fall . . . and they are extremely overstocked at N e w York." 1 2 8 In 1 7 7 4 the value of imports from Great Britain was larger than in the previous year but still well below the peak of 1 7 7 1 . In March it appeared to Pollard that conditions here had improved somewhat. 121

J u n e 22, 1 7 7 3 , William Pollard to T h o m a s F r a n k l i n , New Y o r k . J u l y 2+, 1 7 7 3 , William Pollard to Benjamin and J o h n B o w e r , Manchester, E n g l a n d . 125 September 2 7 , 1 7 7 3 , W i l l i a m P o l l a r d to Benjamin and J o h n B o w e r , Manchester, England. 1M December 20, 1 7 7 3 , W i l l i a m P o l l a r d to John Moorhouse, Sowerby near H a l i f a x , England. 111 October 28, 1 7 7 3 , William P o l l a r d to Benjamin and J o h n B o w e r , Manchester, England. J a n u a r y 7, 1 7 7 4 , Stephen Collins to J o h n .

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H e wrote to a correspondent in Leeds: " I am in great hopes that the trade in this country will in a little time get into a little better situation. . . . Several have dropped the trade and several others do very little indeed." 1 2 9 B y M a y he was less optimistic. In spite of the fact that the spring sales had been "brisk and very satisfactory," he pointed out that there was still " a n old stock on hand," in addition to the fact that "the country is largely indebted for goods and many of your prudent friends will order but little until the country debts are lessened." 150 A s the year progressed trade dwindled. Near the close of June, Pollard wrote, " M a k e no provision at all for next spring unless my future letters be more encouraging." 131 Shortly afterward, in a letter to another firm of English merchants, Pollard stated: " T r a d e [is] in a languishing situation occasioned by the steps that [the] government on your side the water have lately taken by shutting, or rather, blocking up the port there [Boston]. It was uncertain whether the merchants there would be permitted to receive the goods they had ordered to be shipped them in the fall." 1 3 2 T h e events of the remaining months and their effect on English trade are a familiar story. T h e First Continental Congress met in Philadelphia on September 5, 1774. O n October 20 the Congress adopted an agreement or "association" prohibiting the "importation, the purchase, or use of goods from Great Britain, or Ireland, or their dependencies after the first day of the succeeding December." 133 T h e effectiveness of this non-importation agreement can be shown by the fact that in contrast with a total valuation of imports of more than £625,000 sterling in 1774, the imports of 1775 amounted to less than £1,500 sterling. A more concrete evidence of the swings in prices of British goods may be secured from the scattered series of prices of osnaburgs, a representative coarse linen fabric. During the twenties osnaburgs had sold as high as 19 pence an ell, but had declined to I6J4 pence in 1729 and again in 1 7 3 1 . A moderate advance occurred during the m M a r c h 16, 1 7 7 4 , W i l l i a m Pollard to James Buck, Leeds, England. "" M a y 16, 1 7 7 4 , W i l l i a m Pollard to Benjamin Bower, Manchester, England. m June 25, 1 7 7 4 , W i l l i a m Pollard to Benjamin Bower, Manchester, England. 1 , 1 July 8, 1774, W i l l i a m Pollard to Crowe and T a y l o r , Norwich, England. "* Gordon, T h o m a s F., The History of Pennsylvania, pp. 497 f.

TRADE

IN BRITISH

GOODS

291

first part of the thirties, the price rising to 1 9 pence at the end of 1 7 3 4 and in the first part of 1 7 3 5 . After a dip in the latter part of that year and in 1 7 3 6 to 1 7 pence an ell, the price of osnaburgs appeared to settle at 1 7 ^ 2 to 18 pence, where it held during the first years of the war with Spain. A f t e r France entered the war, prices advanced considerably and reached approximately 24 pence in 1 7 4 7 . E v e n in 1 7 5 0 osnaburg still sold for 1 9 pence an ell, and in the early months of 1 7 5 2 at 18 pence. Before the close of 1 7 5 3 , however, the price had fallen to 1 6 ^ pence an ell. Some time after the opening of the French and Indian W a r , prices rose to 19 pence and later even to 20 pence. Quotations for osnaburgs became very infrequent after the Peace of Paris, but it is probable that the fluctuations were usually between 1 7 and 19 pence except in the most depressed years, when the merchants disposed of them with difficulty or at very low prices. This was the situation in the sale of osnaburgs in 1 7 7 3 . In the spring the Philadelphia representative for many British houses wrote: " W e have had such a glut of osnaburgs that it has been in vain to attempt the sale of yours. T h e best sort, I think, will sell but the others are too ordinary." 1 3 4 In August, after sales had been made at reduced prices on six months' credit, he reported to the same firm that their osnaburgs were unlikely to obtain as high prices as they had expected because "the Scott's send that article out very low." 1 3 5 At this time other British goods were dull and English exporters were urged not to make "too great preparations for the spring trade, for I fear the orders will not be large. At Philadelphia I think they will be tolerable." 136 F r o m the mass of comments by contemporary merchants, supported by the prices of osnaburgs on record, one may conclude that the movements in prices of British goods during the Colonial period roughly correspond to the fluctuations already noted in London loaf sugar, Liverpool salt, pepper, and tea. Like these specific commodities, British goods were depressed in price at the end of the twenties and m A p r i l i o , 1 7 7 3 , William Pollard to Shepherd, L a n g t o n and B i r l e y , H o r k h a m , Lancashire, E n g l a n d . ' " A u g u s t 3 1 , 1 7 7 3 , William Pollard to Shepherd, Langton and B i r l e y , H o r k h a m , Lancashire, E n g l a n d . J u n e 8, 1 7 7 3 , William Pollard to Benjamin and J o h n B o w e r , Manchester, E n g l a n d .

292

PRICES

IN COLONIAL

PENNSYLVANIA

the beginning of the thirties. Likewise they were slow to respond in the early years of the war with Spain. In fact, many of the textiles and other manufactured products did not advance until 1744 or later, although some articles used in the outfitting of ships had advanced somewhat earlier. A l l during the Colonial period there were years of great activity in the sale of British goods, followed by others when the market was overstocked, payments slow, and failures frequent among merchants. These periods of depression were especially marked after each of the two major wars. From the passage of the Stamp Act to the beginning of the R e v o lution, there were several interruptions to trade in British goods as the result of voluntary agreements in protest against the succession of tax measures, followed by short periods of intense activity when the restrictions were temporarily lifted. T h e most significant aspect of the behavior of the prices of British goods, so far as the prices of osnaburgs are typical, is that from 1720 to 1775 there was a horizontal trend underlying the successive swings.

CHAPTER XII

T H E GENERAL INDEX OF PRICES T h e m a j o r emphasis in this study has been on the short- and longtime fluctuations in the prices of specific commodities and their relation to the changes in the prices of allied commodities. Such an analysis, however, does not bring out clearly the changes in what might be called the average of wholesale prices in the Philadelphia market. In order to summarize in a single index the diverse movements of individual series, it has been necessary, first, to select commodities with adequate monthly prices, and, second, to determine which of the various methods of averaging and weighting was best to use. A f t e r various grades of a commodity had been combined to f o r m one series, there remained twenty items with sufficiently continuous quotations to permit the construction of an average of wholesale prices. These commodities were: beef bread

gunpowder indigo

rice rum

tar tobacco

corn

molasses pitch

salt

turpentine

cotton flour

pork

staves sugar

wheat w i n e , Madeira

T h e fact that there are too few quotations of such commodities as ginger and hemp to warrant including them in the general index is some indication that they did not enter so largely as the more f r e quently quoted articles into the trade of Philadelphia. Flaxseed could not be included because its extreme seasonality in marketing, which concentrated the sale of it into a few months, caused great fluctuations in price, and left many months without any quotations. I t cannot be assumed, however, that the twenty most frequently quoted commodities were of equal importance. All the available evidence shows that pork was more important than beef in the early economy of Pennsylvania, that wheat was more important than corn, 293

294

PRICES

IN COLONIAL

PENNSYLVANIA

and that rum was more important than Madeira wine, but there is less agreement as to the difference in extent of importance. Statistics of production or consumption are unavailable. T h e total data on imports and exports by specific commodities are not consecutively available and it is difficult to judge the representativeness of scattered years. Furthermore, there is no way of forming a weighted total if some weights are derived from exports and some from imports since the exports of Pennsylvania produce represented only the unconsumed surplus while the imports, if corrected for re-exports, more nearly approximated the total consumption. The area to which imports were distributed might also differ from the area from which the exported surplus was drawn. Since, therefore, any weighting would have been arbitrary and would have required equally arbitrary changes in the importance of different goods at specific times, we feel justified in being equally arbitrary in assuming that each of the twenty commodities typified groups of somewhat equal value. COMPARISON

OF G E O M E T R I C AND A R I T H M E T I C

OF W H O L E S A L E PRICES OF 2 0

INDICES

COMMODITIES

TWO methods of averaging the unweighted relatives based on the monthly average of 1741 to 1745 were considered: the arithmetic and the geometric. Both indices are shown on Chart X X I X . Because of the scarcity of the data only the arithmetic index was constructed for the period of the twenties. T h e arithmetic and geometric averages from 1731 to 1775 have a marked similarity whether the indices are compared by means of a chart of their monthly averages, by one of their monthly moving averages, or by the dates of the significant turning points of the successive swings and the extent of those swings. T h e upper section of Chart X X I X shows the monthly average of wholesale prices of both the arithmetic and the geometric index. T h e nature of these averages makes the curve of the geometric series fall lower than that of the arithmetic. In addition, there is a tendency for the curves to separate as the distance from the base period of 1741 to 1745 increases. Nevertheless, any movement in one index is, to some extent, reflected in the other. T h e curves of the two-month moving averages of the twelve-

CHART X X ]

p I^LW WL —IFV — * \ - AAZ \

V/

A JF*

u

IF»V

MF IV Y7*

F

T

—

32

1733

1734

J734

1736

1737

R XXIX—ARITHMETIC

1738

1739

1740

1741

1742

1743

1744

1745

1746

A N D G E O M E T R I C I N D I C E S OF A V E R A G E

1741

MON

r

/V 4

R

J, h H

AJ1

A\

à

A

j

F

—

—

—

—

Î T H L Y W H O L E S A L E P R I C E S OF 2 0 C O M M O D I T I E S IN P H I L A D E L P H I A ,

I

HIA,

PER CENT

.160

172O-I775

^Industrial Research Department, University of Pennsylvania

THE GENERAL

INDEX

295

OF PRICES

month moving averages shown on the lower section of Chart X X I X , emphasize the difference in level in the two methods and bring out clearly their similarity in long-time movements. T h e most detailed examination of the significant turning points TABLE

I

T I M I N G OF SWINGS IN A R I T H M E T I C AND G E O M E T R I C INDICES OF 2 0 COMMODITIES

(Base of R e l a t i v e s — M o n t h l y A v e r a g e of 1 7 4 1 to 1 7 4 5 ) Beginning o f Rise

Peak

End o f Recession

Average Date

Relative

Date

Relative

Date

Relative

Aug. 1721

79-7

Sept. 1725

115.7

J u l y 1721 M a y «732 Feb. 1732

79.1 87-3 82.5

J u n e 1732 M a r . 1732

88.1 85.6

M a r . 1735 J a n . 1735

100.6

Geom.

97.8

Apr. 1737 Apr. 1737

84.1 82.2

Arith. Geom.

M a y 1737 M a y 1737

86.7 85.2

Nov. 1737 Nov. 1737

IOI . I 98.8

M a y 1740 M a y 1740

84.2

Arith. Geom.

J u n e 1740 J u n e 1740

85.9 847

Aug. 1741 Aug. 1741

"7-3 115.1

M a y 1744 M a y 1744 [ M a y 1745

85.0 84.2 84.0]

Arith. Geom.

J u n e 1744 J u n e 1744 [June 1745

91.4

F e b . 1749

89.7

F e b . 1749

127.6 122.4

Apr. 1755 Apr. 1755

108.4 105.5

Arith.

M a y 1755

109.5

Aug. 1761

118.6

Geom.

M a y 17 55

106.2

133 -1 134-8 13°-3 130.2

Aug. 1761

114.4

Arith. Geom. Arith.

83 0

88.3I Nov. Mar. Nov. Mar.

1759 1761 1759 1761

Arith. Geom.

Sept. 1761 Sept. 1761

125.7 121.6

Jan.

Nov. 1762 1763

148.2 141.5

J u n e 1765 J u n e 1765

114.0

Arith. Geom.

July July

1765 1765

127.2 120.3

Aug. 1766 Nov. 1766

139-1 133-3

Apr. 1769 Apr. 1769

115.8 no.3

Arith. Geom.

M a y 1769 M a y 1769

"7-3 112.2

Aug. 1772

153°

Nov. 1772

I44-Î

M a r . 1775 M a r . 1775

134* 127.3

120.1

296

PRICES

IN COLONIAL

PENNSYLVANIA

and measurements of the eight swings in prices from 1732 to 1775 shows even more clearly the likeness of the results of the two methods. In every major swing from 1737 to 1775 the length of the complete cycle measured from low to low was identical since both curves reached their minima at the same time. There was less similarity in the dating of the peaks (Table 2). In the four swings from 1737 to 1761 the time of reaching the peaks did coincide, but in the three from 1761 to 1 7 7 5 the arithmetic index reached the maximum two or three months ahead of the geometric. T h e difference between the lowest price and the subsequent peak is shown in the second column in Table 3, expressed as the percentage that the low price is of the price at the peak. T h e greatest difference in this rise as measured by the two indices occurs between 1732 and 1735 when the arithmetic index rose 2.4 points less than the other when measured by this procedure. In two other swings the arithmetic average showed a slightly smaller rise than the geometric, but in the average of the eight swings the arithmetic index rose .04 points more than the geometric. T h u s there is a marked similarity in the extent of rise in prices as measured by either index. T h e decline of prices measured from peak to the following low shows even a more marked similarity between the two indices. T h e maximum difference in the extent of fall occurred from 1759 to 1761 when the arithmetic index dropped 1.3 points less than the geometric by this measurement. In two other cycles the arithmetic index dropped proportionately less than the geometric, while the average of the eight cycles showed that the arithmetic dropped . 15 points more than the geometric. O f the nine cycles from 1721 to 1775, the one from 1721 to 1732 shows the greatest variability if measured only by the total rise and fall. If any allowance is made for the differences in length of the various swings, the one from 1740 to 1744 becomes the most severe. T h e mildest swings were the two between 1732 and 1740, the one between 1755 and 1 7 6 1 , and the one from 1765 to 1769. T h e cycles varied considerably in duration. T h e one from 1721 to 1732 and that from 1744 to 1755 were each about 130 months in length. Those from 1755 to 1761 and from 1769 to 1775 covered 76 and 71 months respectively. T h e shortest swing in the entire

THE GENERAL

INDEX TABLE

OF

PRICES

297

3

S U M M A R Y OF C Y C L I C A L M O V E M E N T S IN A R I T H M E T I C A N D G E O M E T R I C I N D I C E S OF 2 0 COMMODITIES

Years

Number

Percentage

Type

of

of

of

Months

Preceding

Average

Number of Months

Percentage of

Index of Succeeding Cyclical L o w to Variability Peak

Number of Months

of

L o w to

Rise

Peak

of Decline

68.4

80

75-5

28.0*

130 59 62

in T o t a l Cycle

1721-1732

Arith.

5°

l732->737

Arith.

34

86.8

14.8

35

84.4

25 27

83.6

Geom.

84.0

15.8

83-3 84.0

16.7 16.4

37

1737-1740

1

740-1744

1744-1755

1755-1761

1761-1765

1765-1769

1769-1775

Arith.

7

83.2

30

Geom.

7

83-2

30

Arith.

'5

33

72-5 73-2

48

15

71.8 72.1

27.8

Geom.

2

7-3

48

Arith. Geom.

57

66.6

74

85.0

68.8

74

86.2

24.2 22.5

'31

57

14-7 15.6

76 76

33

37

131

Arith.

55

81.4

21

89.1

Geom.

55

81.0

21

87.8

Arith.

15

80.0 80.8

81.0 80.6

46

17

3' 29

•y-5

Geom.

193

46

Arith.

14

86.3

32

83.2

15.2

46

Geom.

17

85-5

29

82.7

1

46

Arith.

40

Geom.

43

75-7 76.3

31 28

87.7 88.1

18.3 17.8

» 28.0=100-

68

-4+75-5 See Mills, F. C., The Behavior of 2

5 •9

71 71

Prices.

period was that from 1 7 3 7 to 1 7 4 0 , which was completed in only 3 7 months. From some points of view, as is brought out by the chart of the moving average, the two cycles from 1 7 5 5 to 1 7 6 5 , which are largely dominated by the French and Indian W a r and the immediate post-war readjustment, might be considered as one major swing. In discussing the index of prices the arithmetic average will be

PRICES

298

IN COLONIAL

PENNSYLVANIA

used f r o m 1720 to 1 7 3 1 and the geometric from 1 7 3 1 to 1 7 7 5 . T h e cyclical appearance of the general curve will be emphasized in summary and the extent to which particular commodities differed f r o m the total in the successive swings will be noted. F L U C T U A T I O N S IN G E N E R A L C U R V E AND I N D I V I D U A L

SERIES

D u r i n g 1 7 2 0 and the first part of 1 7 2 1 wholesale prices declined in Philadelphia. T h e extent of the decline in these months gives no indication of the total f a l l in prices f r o m a higher l e v e l or even of what prices had been in the earlier years. T h e swings in prices f r o m 1 7 2 0 to 1 7 7 5 might suggest that there were somewhat similar swings in earlier years. M o r e significant than this, however, are the comments of the merchants before 1720. F o r example, Norris wrote in 1 7 1 9 that flour was high here. 1 Still further evidence is to be found in the comments during 1 7 2 0 and 1 7 2 1 , especially in reference to the dullness of the market, and in the discussion of schemes for issuing bills of credit. In N o v e m b e r 1 7 2 1 Norris commented, " I intended to send some wheat, but the country debtors have been backward and money is so extremely scarce that we begin to be, or rather have been for some time, pinched for want of some proper medium of currency without which commerce is a perplexing employment." 2 T h e pressure for a paper currency resulted in the authorization in M a r c h 1 7 2 3 of £15,000 in bills of credit and of an additional £30,000 at the close of that year." I t was in August 1 7 2 1 that the upswing of the first of the nine waves of prices in the years before the American R e v o l u t i o n started. T h i s first m a j o r movement, one of the two longest, required nearly eleven years for its completion. T h e advance of the first three years was interrupted twice. First, after prices had increased 13.9 per cent by January 1723 they tended to recede for six months. Secondly, after January 1 7 2 4 , when the average price was 22.6 per cent more than in J u l y 1 7 2 1 , it dropped until by M a y it was only 9.1 per cent above J u l y 1 7 2 1 . T h e m a j o r advance of the swing from 1 7 2 1 to 1 7 3 2 was ' N o v e m b e r 23, 1 7 1 9 , Isaac Norris to John Stacy. ' N o v e m b e r 24, 1 7 2 1 , Isaac Norris to Benjamin Bartlett, M a d e i r a . ' P h i l l i p s , H e n r y , Historical P- 37-

Sketch

of

Paper

Currency

in the

A merican

Colonies,

THE

GENERAL

INDEX

OF PRICES

299

accomplished within the next year and a half. By September 1 7 2 5 prices had risen 46.3 per cent higher than in 1 7 2 1 . T h e initial impulse towards higher prices in 1 7 2 2 than in 1 7 2 1 appeared in many commodities, especially in naval stores and rum. Other commodities such as molasses, Madeira wine, and tobacco increased slightly in price. Among domestic products, flour and brown bread made mild advances in 1 7 2 2 . Some of these commodities continued to increase during 1 7 2 3 , especially tobacco, tar, and molasses. In addition corn, salt, and muscovado sugar rose in that year. During 1 7 2 4 and 1 7 2 5 most commodities increased rapidly in price, especially the staples of Pennsylvania. Naval stores also tended to sell at higher prices during these years. T h e contracting aspect of the next seven years can also be broken into three parts separated by abrupt breaks: the first period extends from September 1 7 2 5 to March 1 7 2 8 , during which prices haltingly declined; the second from April 1728 to February 1 7 3 r , when prices fluctuated around a moderate level; and the third from March 1 7 3 1 to M a y 1 7 3 2 , in which prices held near a low level before dipping slightly in M a y 1 7 3 2 to a point but 10.3 per cent above 1 7 2 1 . During 1 7 2 6 most commodities maintained a high average price, some declining slightly and others even advancing above the average price of 1 7 2 5 . Only molasses and salt, which had moved lower in 1 7 2 5 , continued downward in 1 7 2 6 ; the price of tobacco also dropped sharply during 1 7 2 6 . In 1 7 2 7 and 1 7 2 8 declines were more general. Most commodities continued to drift downward until 1 7 3 1 , although the decline was broken by temporary rises in some years. T h e decline of salt and molasses was interrupted for three years; that of wheat, flour, bread, and tar for two years. In general, the staples of the continental colonies were lowest in 1 7 3 1 . T h e general average of prices remained low during 1 7 3 2 , largely because West India rum and naval stores and even bread, beef, and pork tended to drop still further in price. In addition British products, such as Liverpool salt and loaf sugar, declined to a lower average price in 1 7 3 2 than in 1 7 3 1 . In summary, prices of most commodities were depressed in 1 7 2 1 . During the next two years advances in some commodities more than offset recessions in others. During 1 7 2 4 and the first part of 1 7 2 5 a

300

PRICES

IN COLONIAL

PENNSYLVANIA

widespread increase raised prices for 1 7 2 5 to a high average which was held in the following year. T h e prices of most commodities dropped during 1 7 2 7 . During the next three years there were many fluctuations, but the tendency was slightly downward. Severe declines in 1 7 3 1 lowered prices that year. T h e still lower prices of many series in the next year offset the increases of others, especially grains and tobacco. T h e next two swings in prices, as measured by the geometric average, were shorter and more moderate than the one in the decade of the twenties. In the first of these, which occurred from February 1 7 3 2 to April 1 7 3 7 , prices had climbed nearly 1 8 . 5 per cent by J a n uary 1 7 3 5 , but by 1 7 3 7 they had fallen slightly below the minimum of 1 7 3 2 . T h e peak of 1 7 3 5 had been preceded by a year and a half in which prices fluctuated around a comparatively high level which persisted through most of 1 7 3 5 . In M a y 1 7 3 6 prices reached what might have been the low of this swing had it not been for the dip in April 1 7 3 7 , for prices had moved upwards for ten months before this sharp slump in the spring of 1 7 3 7 . In the second swing prices started upward in M a y 1 7 3 7 and by the following month they had climbed back to the level of the first quarter of that year. T h e upward tendency of the latter part of 1 7 3 6 and the first months of 1 7 3 7 seemed to continue, culminating in N o v e m ber of that year at a point slightly above the peak of 1 7 3 5 . T h e contraction which followed was broken by a short fluctuation in 1 7 3 9 in which prices rose to within 5.5 per cent of the peak of 1 7 3 7 , but by M a y 1 7 4 0 prices had dropped to 1 6 . 0 per cent below the crest of the swing, or approximately as low as in the depressed month of February 1 7 3 2 . T h e rise in prices from 1 7 3 2 to 1 7 3 5 was general except in naval stores, meats, and corn. B y 1 7 3 5 the other commodities were moderately high. I n 1 7 3 6 beef, pork, and corn started to rise, molasses, wine, and cotton continued to advance, while the prices of other commodities declined. T h e upswing in prices during 1 7 3 7 and 1 7 3 8 did not affect as many commodities as had the previous recession. T h e naval stores, in general, continued the decline which had dominated most of these commodities for much of the thirties. Loaf sugar, indigo, and gun-

THE GENERAL

INDEX

OF

PRICES

301

powder did not share in any of the advance of 1 7 3 7 and 1 7 3 8 . It was the Pennsylvania products which moved upward during these years; most of the imported commodities did not so consistently rise in price. T h e pronounced decline in prices in 1 7 3 9 was largely confined to mainland products, except naval stores and pipe staves, although salt, molasses, sugar, and Madeira wine also receded. Although many of the imported commodities such as cotton, indigo, tobacco, wine, and rice, and even some domestic commodities such as meat and barrel and pipe staves, had a lower average price in 1 7 4 0 than in 1 7 3 9 , more commodities moved upward in that year than in 1 7 3 9 . These fluctuations were to some extent influenced by the threat of the approaching war with Spain. T h e danger of the war was great enough to affect prices of domestic products but not enough to raise, more than temporarily, the prices of imported commodities. A short run-up in prices in the latter part of 1 7 3 9 illustrates this condition. E a r l y in September a contemporary wrote: " T h i s rumor of war has occasioned our country produce to rise very much. . . . T h e merchants expect to sell yet higher. T h e people are very cautious in buying, expecting it will lower." 4 T h e major swing in prices from 1 7 2 1 to 1 7 3 2 and the two smaller fluctuations between 1 7 3 2 and 1 7 3 9 were free from disturbances caused by war. There were also few changes in the Colonial regulations imposed by Parliament. T h e Act of 1 7 3 3 , which placed prohibitory duties on the import of rum, sugar, and molasses from the foreign plantations, except "sugars of the growth or produce of the dominions of Spain or Portugal,"" was not enforced and certainly had little, if any, effect on the prices of these commodities sold in the Philadelphia market. In contrast, the period after 1 7 3 9 includes the war with Spain and France, which was not terminated until 1748 by the Treaty of Aix-la-Chapelle, as well as the Seven Years' War, which was not ended until 1 7 6 3 . T h e trade of Pennsylvania was severely affected by these wars. T h e war with Spain from 1 7 3 9 to 1748 affected prices differently in successive years. In the first part of the war, before France joined 'September 3, 1739, Richard Hocklev to Bernard Hannington, Pennsylvania zine of History and Biography, Vol. X X V I I , 1903, p. 3 1 3 . Anderson, Origins of Commerce, revised by Mr. Coombe, Vol. I l l , p. 457.

Maga-

302

PRICES

IN COLONIAL

PENNSYLVANIA

Spain, prices in general moved through a complete cycle. T h e advance was especially marked in the latter part of 1740. T h e demand for provisions for the expedition in the West Indies raised the prices of domestic goods. These had tended to sag at the first news of actual war since there might be some interference with the usual trade in the staples of Pennsylvania. T h e products of the W e s t Indies also rose because some sources of supply were cut off. O n l y the prices of English goods of which there were large and increasing stocks in the colony were not affected during the first part of the war with Spain. In the fifteen months from M a y 1740 to August 1741 the average of prices advanced 38.7 per cent, culminating in a peak higher than any previous peak after 1720. This high average was maintained from June 1741 to March 1742. Fine salt, like the British goods, and muscovado sugar and cotton, which had peaks in 1739 and 1740, were the only commodities quoted in the prices current which did not have a higher average in 1741 than in 1740. T h e contraction after March 1742 was almost as rapid as the rise to the peak of 1741. By April 1743 prices had declined 22.7 per cent from the maximum of August 1741. T h e decline continued, although interrupted by four months of rising prices, until in M a y 1744 the average of the wholesale prices was 26.8 per cent less than in August 1741. Between M a y and November 1744 prices rose approximately to the level of the latter part of 1743, but by M a y 1745 they had receded to a slightly lower average than that of the same month of the previous year. In 1742 it was primarily the staples of Pennsylvania and the naval stores and rice from the Carolinas which dropped in price. T h e decline in these commodities continued during the next year; practically every other commodity likewise declined. Only beef, pork, and M a deira wine had a higher average in 1743 than in the previous year. Although the monthly average of prices dropped further in the first part of 1744 and held near a low level as late as the spring of 1745, the prices of many specific commodities showed in 1744 the effect of the entrance of France into the war. Gunpowder especially rose promptly to a level which dwarfed the high prices of 1741. T a r , salt, rum, sugar, and Madeira wine also rose in price. T h e staples

THE

GENERAL

INDEX

OF

PRICES

303

of Pennsylvania and other continental colonies, however, declined in the Philadelphia market, largely because of the contraction in the volume of shipping. In 1 7 4 5 , when the general curve turned upwards, it was chiefly as the result of advancing prices for grains and grain products as well as salt, rum, and molasses. Forest products, whether in the form of staves from Pennsylvania or pitch and tar from the Carolinas, did not advance in 1 7 4 5 . In the closing years of the war with France and Spain wholesale prices in Philadelphia rose to a maximum in February 1 7 4 9 , when the general index was 45.4 per cent higher than in 1 7 4 4 and even 6.3 per cent higher than in the peak of 1 7 4 1 . English goods also increased in price at this time. In 1 7 4 6 practically all of the commodities which had advanced in 1 7 4 5 except West India rum continued to rise. In addition, the upward movement in the total curve was assisted by increases in the price of staves, meat, and sugar. B y 1 7 4 7 all commodities were rising in price except beef, coarse salt, and gunpowder. Still further advances were made in 1 7 4 8 , except in New England rum and salt, in West India products, sugar, cotton, and indigo, and in the related products of Pennsylvania, hogshead staves. During 1 7 4 9 , other West India products, especially rum and molasses, declined in price and the Colonial products of beef and pork, tobacco, and tar also receded. In considering the five years of expanding prices after 1 7 4 4 it is significant that only corn, wheat, bread, flour, and turpentine had higher annual prices in each succeeding year. Other Colonial staples, especially staves, tended upward during most of the period. T h e prices of rice and pitch were the last of the series to move upwards, not advancing appreciably until 1 7 4 7 . Only gunpowder tended to recede in price during most of the period. T h e period from 1 7 4 5 to 1749 derives its greatest importance from the fact that during these years wheat, flour, bread, staves, pork, muscovado sugar, cotton, and Madeira wine established distinctly higher levels of prices than had prevailed from 1 7 2 0 to 1 7 4 5 . As a result, the index never again dropped below what would have been a high average in the decade of the thirties. At the peak of February 1 7 4 9 wholesale prices as measured by the geometric average were

304

PRICES

IN COLONIAL

PENNSYLVANIA

22.4 per cent higher than from 1 7 4 1 to 1 7 4 5 . E v e n in 1 7 5 5 , when prices were lower generally than at any other time in the Colonial period after the Treaty of Aix-la-Chapelle, the index was 5.5 per cent above the average of 1 7 4 1 to 1 7 4 5 . During most of the time between the two wars with France, prices were from 1 0 to 20 per cent higher than they had averaged in the first five years of the war with Spain. F r o m 1 7 4 9 to 1 7 5 2 especially, a high level was maintained, usually more than 1 5 per cent above the average of 1 7 4 1 to 1 7 4 5 . During this time some commodities continued to advance. The most conspicuous example is turpentine. Its average annual price, for each of the eight years from 1 7 4 5 to 1 7 5 2 inclusive, exceeded that of the previous year. T h e other naval stores did not show a corresponding gain in price, although both tar and pitch were at a higher price in 1 7 5 0 than in 1 7 4 9 anc ^ pitch advanced still further in 1 7 5 1 . Meat, wine, and indigo reached successively higher levels from 1 7 5 0 to 1 7 5 2 than they had in 1 7 4 9 , while tobacco and cotton advanced in 1 7 5 0 and 1 7 5 1 . Rice, muscovado sugar, and hogshead staves had higher averages in 1 7 5 0 than in 1749. This upward movement in the prices of some commodities was balanced in part by declines in bread, loaf sugar, New England rum, and gunpowder, which sold for progressively lower average prices in the years from 1 7 5 0 to 1 7 5 2 . Grains, flour, West India rum, salt, staves, and tar declined in two of these years. T h e greatest part of the decline occurred in the second half of 1 7 5 3 . As a result, nearly all commodities had a lower average price in 1 7 5 4 than in the previous year. T h e outstanding exceptions were flour, bread, and tar. T h e further recession of 1 7 5 5 was practically as widespread as that of the previous year. T h e only commodities which had continuously lower average prices from 1 7 5 3 to 1 7 5 5 were tobacco, pitch, turpentine, and cotton. During 1 7 5 6 and most of 1 7 5 7 commodities in general continued to sell at comparatively low prices although, after April 1 7 5 5 , the general index turned slightly upward. T h e depressed character of these years arose, at least in part, from the recurring embargoes, which partially or completely prevented clearances of vessels. As early in the war as 1 7 5 5 , a limited embargo " i n order to distress the French"

THE GENERAL

INDEX

OF

PRICES

305

was placed on Pennsylvania and some other colonies. As a result there was "no sale for anything but lumber, all our vessels loading with that article; flour, wheat and all kinds of provisions being no sale." 6 This embargo, which was placed late in August, was the second in that year. 7 Probably as a result of this, the vessels which cleared from the port of Philadelphia in 1 7 5 5 numbered only 399 in contrast to 480 or more in each of the three previous years. Another embargo in the following year contributed to the fact that only 363 vessels cleared. Not since 1749 had so few ships left the port of Philadelphia. T h e most drastic embargo of all occurred in the spring of 1 7 5 7 , when only 5 ships were permitted to sail between March 1 0 and June 27. T h e embargo was lifted on June 27 and within three days 52 ships cleared. T h e direction of shipping was also affected from 1 7 5 7 to 1 7 5 9 when, because of the failure of the European crops, shipment of foodstuffs from the colonies was prohibited except to Great Britain and Ireland. These interruptions to trade account for many of the short-time fluctuations which are superimposed on the general upward movement in prices which became especially marked in 1 7 5 8 . B y 1 7 5 9 practically all commodities were selling for higher prices than in 1 7 5 5 . T h e only exceptions were sugar, indigo, and tar. At this time, when these commodities were at their lowest prices during the Seven Years' War, other series such as rice, molasses, rum, pitch, and turpentine were at their highest prices of the war years. During the next six years or more the movements of these five commodities were not like those of the general curve. Rice, molasses, and rum tended to decline in price until 1 7 6 5 , while pitch and turpentine receded until 1 7 6 2 and then, after the war was over, advanced along with tar from 1 7 6 3 to 1 7 6 5 . T h e effect of this war on prices of rice is somewhat similar to that of the preceding one. In both cases the high freight rates of the war " S e p t e m b e r 1 6 , 1 7 5 5 , T h o m a s W h a r t o n to J o h n C a r n a n , M a r y l a n d . 7 In connection with these e m b a r g o e s T h o m a s W h a r t o n w r o t e to correspondents in the a d j o i n i n g colonies " p l e a s e to i n f o r m G . G . B e e k m a n that the e m b a r g o here is l i k e l y to continue l o n g e r than the time it w a s at first l a i d f o r . " ( J u l y 3 0 , 1 7 5 5 to J o h n S a y r e , v i s i t i n g in N e w Y o r k ) . L a t e in the f o l l o w i n g month he stated, " I t is reported the e m b a r g o here w i l l be laid a g a i n w i t h i n a f e w d a y s to continue till D e c e m b e r , b u t can't w r i t e certainly on t h a t . " ( A u g u s t 2 1 , 1 7 5 5 , to J o h n C a r n a n , Maryland).

306

PRICES

IN COLONIAL

PENNSYLVANIA

curtailed shipping and lowered prices of rice in the colonies. T h e downward slope in the prices of rum and molasses may be attributed to the capture of prize vessels and to the conquest of the French West Indies, especially the island of Gaudeloupe in M a y 1759. Most commodities continued to advance for at least three years after 1759, although the upswing was broken by a recession in 1761. In that year it appeared to the colonists that the war with France was over. N o t only had Fort Duquesne and Quebec been captured in 1759, but in the autumn of 1760 Montreal and the rest of Canada had been surrendered to Great Britain. Some commodities, however, continued to advance in 1 7 6 1 . T h e average prices of pipe staves and tobacco were higher that year than at any other time during the war. Barrel and hogshead staves, muscovado sugar, and tar continued to advance. Meats also tended to increase in price during 1 7 6 1 . T h e entrance of Spain into the war early in 1762 contributed to a general upward movement in prices. Coarse salt and gunpowder rose especially. Other imported commodities such as cotton, muscovado sugar, and wine also increased in price. Pennsylvania grains and grain products and meats rose in 1762, but their highest average prices for this swing were not reached until 1763, after the Treaty of Paris. T h e prices of pork rose for still another year. Except for these staples of Pennsylvania and for rice, salt, and naval stores, prices receded in 1763. D u r i n g 1764 all series except naval stores, pork, wine, and cotton dropped lower. T h e net effect of the various price movements during the Seven Years' W a r is shown in the geometric average of wholesale prices. In spite of many fluctuations, prices in general were only 2 per cent higher at the beginning of 1758 than in April 1755. By November 1759 they had advanced 23.5 per cent above the low of 1755. A f t e r sagging until April 1760, they rose again until in March 1761 they were approximately as high as in November 1759. Between March and August 1761 there was a recession severe enough to reduce prices to within 8.4 per cent of the low level of April 1755. This dip, which occurred in all prices at some time between March and August, did not last long. Before the close of the year the average of commodity prices was 20 per cent higher than in 1755. This level was maintained as late as April 1762. In the next four months the steepest part of the

THE GENERAL

INDEX

OF

PRICES

307

rise in prices during the Seven Years' W a r occurred. By August the index had risen 3 3 . 1 per cent above that of April 1 7 5 5 . Even such a level, the highest in the period up to this date, was slightly exceeded in January 1763, when the average stood 34.1 per cent above the low of the middle fifties. At this time prices in general were higher than at any time before 1 7 7 2 . Just as the rise in the latter part of the first war with France and Spain had brought prices to a permanently higher level, so in the years following the rise from 1 7 5 5 to January 1 7 6 3 prices tended to fluctuate around a higher level than ever before. The recession from the peak of January 1 7 6 3 was broken by rises, partly seasonal in character, in the fall of that year and in 1764. The lowest prices in the immediate post-war years occurred in June 1 7 6 5 , when the index was approximately the same as in the lowest month of 1 7 6 1 . This decline from January 1 7 6 3 to June 1 7 6 5 lowered prices 19.4 per cent. Part of the contraction must be attributed to the Stamp Act and the resulting controversy, which reduced the trade of the colony. As early as 1763 the colonists were affected by the attempts on the part of Great Britain to enforce both old and new regulations of commerce. In the fall of 1 7 6 4 a Philadelphia merchant wrote: "Cash monstrous scarcc. I believe we must turn to barter as the men of war are here so strict that nothing can escape them . . . and so many new acts of Parliament lately made seems as if America would be much distressed. T h e dreadful lumber acts if continued will, I fear, be of great disadvantage." 8 This uncertainty over the enforcement of trade restrictions was aggravated by renewed Indian attacks in the Ohio Valley and around Detroit. It is also necessary to consider the recession in prices in Philadelphia from 1763 to 1 7 6 5 in the light of the difficulties that many governments were facing in readjusting their finances after the Peace of Paris and in relation to the failures of merchants, especially in Amsterdam and Hamburg, which seriously affected British houses. "October 22, 1764, Benjamin Marshall to Dr. James Tapscott, Pennsylvania Magazine of History and Biography, Vol. X X , 1896, p. 208. Marshall had referred nearly a year earlier to the " t w o men of war in our river for some time past to prevent any clandestine trade being carried on either to Spain, Portugal, or any of the French West India Islands." November 1 2 , 1 7 6 3 , Marshall to Hugh Forbes, ibid., p. 205.

308

PRICES

IN COLONIAL

PENNSYLVANIA

It was of this time that MacPherson said that there was "almost an entire stop to all business." 9 Pennsylvania had too many commercial connections with Great Britain to be able to remain free from the effect of such a widespread depression. B y the close of 1 7 6 5 prices had advanced 1 4 . 6 per cent or to within 7.7 per cent of the peak of 1 7 6 3 . M u c h of this rise came from the demand for shipments to Portugal, especially staves, although the prices of other staples were also affected. In addition, the enforcement of commercial regulations in the West Indies had reduced the usual amount of supplies from that area, with the result that prices of West India produce soared. In the early months of 1 7 6 6 prices dropped as rapidly as they had risen the previous year. B y April the total index was only 2.5 per cent higher than in J u n e 1 7 6 5 . A n abrupt rise, similar to the one in 1 7 6 5 , occurred between April and November 1 7 6 6 . T h i s upswing in all commodities, except the staples of the West Indies, raised the total index in November 2 . 1 per cent above the peak of December In contrast to the abrupt movements in prices in 1 7 6 5 and 1 7 6 6 , a comparatively unbroken recession set in from 1 7 6 6 to April 1769. T h e net decline during this period was 1 7 . 3 per cent. T h e result of this contraction was that in April 1 7 6 9 prices were not only 3.2 per cent below the minimum price of 1 7 6 5 but at the lowest point after 1 7 5 8 . Almost every product shared in this downward movement. Some commodities, especially pitch and tar, had lower average prices in every year from 1 7 6 5 to 1 7 6 9 . T h e staples of Pennsylvania, especially grain and meat, had more sustained prices, f o r , although some of their markets in the West Indies had been restricted by regulations of France and Spain and even indirectly by Great Britain, a substantial market had been maintained in E n g l a n d where, because of scarcity, foodstuffs were permitted by successive acts of Parliament to enter free of duty. Conditions in Philadelphia during this swing in prices, especially in the years f r o m 1 7 6 5 to 1 7 6 7 , are thus summarized by Gordon: A spirit for public improvement w a s at this time very prevalent, displaying itself in the erection of a light-house, churches, and other public 'McPherson, David, Annals of Commerce,

Vol. Ill, p. 372.

THE

GENERAL

INDEX

OF

PRICES

b u i l d i n g s . . . . T h e interests of c o m m e r c e w e r e p r o m o t e d by t h e

309 pur-

chase of t h e l o w e r half of R e e d y island, at t h e h e a d of the D e l a w a r e b a y , a n d the e r e c t i o n of piers f o r t h e c o n v e n i e n c e a n d s e c u r i t y of vessels d e l a y e d f r o m p u t t i n g t o sea by a d v e r s e

winds.

I n despite of the d e m a n d f o r l a b o u r , w h i c h h a d e v e r y w h e r e p r e v a i l e d , a n d w h i c h h a d been i n c r e a s e d by t h e resort of the people t o domestic m a n u f a c t u r e s , the p o o r - s y s t e m , so f r u i t f u l in c r e a t i n g the pauperism it w a s d e s i g n e d t o r e m e d y , b e c a m e v e r y oppressive. T h e p o o r - r a t e s of the city a l o n e n o w e x c e e d e d f o u r t h o u s a n d p o u n d s per a n n u m . I m p a t i e n t of this e x p e n d i t u r e , the l e g i s l a t u r e , on t h e a d d r e s s of the g r a n d j u r y , a u t h o r i z e d the e r e c t i o n of a n a l m s house a n d house of e m p l o y m e n t . . . . A t the o p e n i n g of the a l m s - h o u s e , in O c t o b e r ,

1 7 6 7 , there w e r e admitted

two

h u n d r e d a n d e i g h t y - f o u r persons, a n d the n u m b e r w a s in J a n u a r y f o l l o w ing, three h u n d r e d and sixty-eight.10

In the spring of 1769, when the merchants of Philadelphia formally joined those of Boston and N e w Y o r k in an agreement for non-importation as a protest against the T o w n s h e n d Acts, prices of all commodities were undoubtedly low, trade d u l l , and the community suffering from the conditions that usually accompany periods of general depression. A f t e r A p r i l 1769, prices improved rather continuously for more than three years. By the fall of that year wholesale prices had increased 10.7 percent. Tobacco especially rose in price. Beef and pork, which at that time were so scarce that some had to be imported, increased in price more rapidly than did most commodities. M a n y other series shared to a lesser extent in this advance. F r o m September 1769 to A p r i l 1772 prices tended to rise, but at a less rapid rate than in the summer of 1769. A t the end of this more gradual climb the index was 18.0 per cent higher than it had been three years before at the depths of 1769. T h e final spurt in prices during 1 7 7 2 raised the index 1 1 . 0 per cent between A p r i l and N o v e m b e r . In the latter month prices were 31.0 per cent more than in 1769 and even higher than in the war peak of January 1763. B y a slight margin the prices in November 1 7 7 2 were the highest in the Colonial period. T h e rise from 1769 to 1 7 7 2 was shared by many commodities. W h e a t , flour, and bread from Pennsylvania, coarse salt and Madeira 10

Gordon, Thomas F., The History of Pennsylvania,

pp. 4 1 1 - 4 1 2 .

310

PRICES

IN COLONIAL

PENNSYLVANIA

PER CENT

C H A R T XXX—ARITHMETIC

INDICES OF A V E R A G E M O N T H L Y WHOLESALE (Base—Monthly

THE GENERAL

INDEX

OF PRICES

311 PER CENT

P R I C E S OF 1 2 , 2 0 , A N D 2 2 C O M M O D I T I E S I N P H I L A D E L P H I A ,

1720-1775

312

PRICES

IN COLONIAL

PENNSYLVANIA

wine from Portugal and its dependencies, and tar from Carolina sold for higher prices in each succeeding year in this period. In contrast, muscovado sugar tended to decline, molasses and loaf sugar did not advance after 1770, while staves averaged highest in 1 7 7 1 . Other commodities, especially the staples of Pennsylvania, were at their maxima in 1772. O f the naval stores, only tar had its peak in that year. Pitch and turpentine, although progressively higher in 1771 and 1772, continued upwards during 1773 and 1774. T h e chief characteristic of the years immediately preceding the American Revolution was the tendency towards a higher level of prices than at any other time in the Colonial period. T h e transition appears to have occurred during the long upswing from 1769 to 1772. Although the prices of nearly all commodities, and especially those of the products of Pennsylvania, receded for more than two years after the peak of November 1772, the lowest subsequent point on the general index was higher than any of the peaks before 1750 and only 4.5 per cent less than the crest of 1766. A R I T H M E T I C INDICES OF W H O L E S A L E P R I C E S OF 1 2 AND 2 2 COMMODITIES

In order to reduce to a minimum the effect of estimated prices, an arithmetic average of twelve commodities—namely, beef

flour

pork

sugar

bread

molasses

rum

tar

corn

pitch

salt

wheat

— h a s been constructed and is compared on Chart X X X with the arithmetic average of twenty commodities. T h e fluctuations of the smaller group of commodities center around a lower level than those of the total group from 1720 to 1740 and from the latter part of 1749 to 1775. Between 1745 and 1749 the index of the smaller group tends to exceed the other, especially at the close of 1746 and the beginning of 1747, when salt was unusually high, and at the close of 1748 and the beginning of 1749, when wheat, flour, bread, and rum were dear. T h e prices of these commodities have a greater weight in the average of twelve series than in the larger group.

THE GENERAL

INDEX

OF

PRICES

313

T h e difference between the two curves in the middle twenties arises from the fact that tobacco, rice, and turpentine, which were relatively high then, are not included in the smaller group. T h e separation of the curves in the later period and particularly after 1 7 6 3 is due to the exclusion of the series of staves, tobacco, and Madeira wine from the index of twelve commodities. T h e effect of the inclusion of prices of bar and pig iron on the average of wholesale prices in Philadelphia is also shown on Chart X X X . For the period from 1 7 6 7 to 1 7 7 5 when the prices of iron are most complete, we have constructed an arithmetic average of twentytwo series. T h e inclusion of the prices of bar and pig iron has lowered the average slightly from what it had been when twenty commodities were used as representatives of wholesale prices, but the level is still well above that indicated by the index based on twelve commodities. Regardless of whether an arithmetic or a geometric average is used, or whether twelve or twenty or twenty-two commodities are combined in the index, the recurring swings in prices and the high level around which they fluctuated in the later period still stand out as fundamental characteristics of the movements of wholesale prices in Philadelphia.

CHAPTER STERLING

XIII

EXCHANGE

Our final step in proceeding from the relatively simple analysis of individual series of prices to more complicated indices which represent general conditions brings us to an analysis of sterling exchange. T h e rate of exchange on London was selected for special study because of its importance to the colonists and because of the stability of the metallic content of the English pound during this period. 1 Before the issue of bills of credit in 1 7 2 3 , the currency in Pennsylvania consisted of coins of Spanish, Portugese, French, Dutch, and English origin brought into the colony in the course of trade. Since the merchants were keeping their records in pounds, shillings, and pence, they had to translate the value of the foreign coins and make allowance for difference in weight and fineness of coins of the same denomination from time to time. T h e silver coin which was best known and most plentiful in all the colonies was the Spanish piece of eight, later known as the Spanish milled dollar. Because of its prevalence and wide acceptability it became the basis for rating other coins. T h e customary ratings which determined the relation between the colonial and the English currency differed among the various colonies. T h e English rating of 4 shillings 6 pence for the Spanish dollar had been established in accordance with the assays of Sir Isaac Newton in 1 7 0 4 . T h e attempt to establish a maximum rating of 6 shillings in the plantations by the Proclamation of 1 7 0 4 and the enforcing act of 1 7 0 7 did not result in uniformity partly because the legislation did not apply to gold coins2 and partly because various other ratings had been established by custom. ' " F r o m 1600 to 1 8 1 6 , the pound sterling equalled 1 7 1 8 . 7 grains of fine silver." Bullock, Charles J . , Currencies of the British Plantations, Economic Studies, American Economic Association, Vol. II, 1897. Footnote, p. 300. 1 Gold coins, especially Johannes, moidores, ducats, and occasionally English guineas, appeared in the accounts of merchants in increasing numbers as trade with Portugal and the West Indies expanded. 314

STERLING

EXCHANGE

315

N o study has been made of the amount of coin which entered or was shipped out of the colony of Pennsylvania nor can any estimate be made of the amount of coin in circulation at any one time. T h e continuous shipment of specie to England in payment of balances made a serious drain on the amount in circulation. Even in these shipments the proportion of gold to silver can be ascertained only for scattered items in single payments. Changes in the price of gold and silver and the ratio between them, of course, made merchants favor one or the other in payments. In like manner they favored the receipt of the coins which were kept most uniform in weight. T h e amount of Pennsylvania currency that was paid for £ 1 0 0 sterling rested fundamentally on the arbitrarily increased rating given to the Spanish dollar by the Pennsylvanians. 3 During most of the Colonial period, the Spanish milled dollar was rated at 7 shillings 6 pence in contrast to the rating of 4 shillings 6 pence in London. T h e ratio between these valuations would make the " p a r of exchange" 1 6 6 % . T h e actual rates of exchange, however, varied considerably from this. It is to these variations that most attention must be given, since they reflect what might be called the net effect of general and specific conditions in all areas to which trade from Pennsylvania was going. T h e supply of bills of exchange on London available in the Philadelphia market depended directly upon the quantity of goods exported to Great Britain and the price of those articles there, which, ' It has already been pointed out that the rating of 6 shillings for the Spanish piece of eight, adopted in Pennsylvania, was reported by Claypoole, Treasurer of the colony in 1 6 8 3 . (Chapt. I, Note 5 ) . This antedated the English recoinage of 1 6 9 7 . Pennsylvania, like the other colonies, did not adhere strictly to a valuation of 6 shillings but evaded the Proclamation of Queen Anne by increasing the rating of the ounce of silver. In 1 7 2 0 the price of the ounce of silver was raised from 6 shillings 10^/2 pence which approximates a rating of 6 shillings for the dollar, to 7 shillings 5 pence, and in 1 7 2 3 raised still further to 8 shillings 3 pence. An evidence of the change of rating is furnished by an advertisement by a group of merchants which appeared in January 1 7 2 1 in the American Weekly Mercury: " W e whose names are hereunto subscribed, do, for the encouragement of trade and commerce, promise to receive in payment for all goods, sold after the date hereof, dollars called Lyon dollars, at the rate of 5 shillings, the English crown at 7 shillings and 6 pence, the half-crown at 3 shillings and 9 pence, the English shilling at 18 pence, and the English 6 pence at 9 pence, proclamation money." (American Weekly Mercury, J a n . 3 1 , 1 7 2 1 ) . In December 1 7 3 9 Isaac Norris wrote, in comment upon the report of the assembly on the prices of gold and silver, that the ounce of silver was then at 8 shillings 6 pence, the same rating given in the report to the Assembly for that year. (Dec. 2 1 , 1 739, Isaac Norris to Charles .)

316

PRICES

IN COLONIAL

PENNSYLVANIA

over a period of time had, of course, some relation to the prices of the same goods in Philadelphia. In addition, Pennsylvania had an indirect source of supply of bills on London through "triangular tradings." One such source was the West India trade; the total valuation of exports to the West Indies usually exceeded the value of the imports from the Islands. This so-called favorable balance of trade was settled by credits in London either by means of bills of exchange on London or through the adjusting of merchants' accounts. It was possible to make remittances to London in this manner because there was usually a balance in favor of the Islands in their trade with Great Britain. T h e supply of bills from this indirect source involved, therefore, the quantity of Pennsylvania staples sent to the Islands and the prices paid for such produce there and, in addition, reflected the exports, especially of sugar, from the Islands to Great Britain as well as the prevailing prices for those commodities in London. In like manner, the trade with Portugal provided an indirect source of bills payable in London. A s a result, the relation between prices in Lisbon and those in Philadelphia also had some weight in determining the rate of exchange in the province. T h e specific price of bills was affected not only by these various interrelations, but also by similar variables which operated in determining the demand for these bills in Philadelphia. This demand was chiefly affected by the quantity of goods imported into Philadelphia and their price in London, if imported directly, and by their price in Philadelphia when the goods had been sent on consignment. These supply and demand factors are the generally recognized causes of fluctuation in the price of bills and especially of the fluctuations between the specie import and export points. T h e r e are many special factors which must be recognized in any understanding of the fluctuations in the price of bills much greater than might be expected. Chief among these is the fact that usually it was illegal to export coin from Great Britain. 4 T h e principal exceptions were allowed when it was necessary to send British currency 4 Channing, Edward, A History of the United States, Vol. II, p. 497. Evidence of the variation between the law and the fact is given by Chalmers. He wrote in part, "There were countless subterfuges and devices for smuggling coin out of the kingdom if any profit were to be made; and the state of the silver currency of England in the 17th and 18th centuries is ample proof of the failure of this prohibitive legislation." (Chalmers, Robert, A History of Currency in the British Colonies, pp. 4-5.)

STERLING

EXCHANGE

317

to pay the army and navy engaged in military operations. T h o u g h the laws against " m e l t i n g or exporting of coin never did effectually afford such protection, or prevent such melting or exportation altog e t h e r ; yet it is indisputable that to a certain extent they did both. It is certain that they diminished the profit of m e l t i n g and exporting coin by the hazard they attached to these operations." 5 T h u s there was really a somewhat indeterminate export point as far as sterling is concerned. U n d e r these conditions the export point w o u l d be further f r o m par than the import point, and if it should happen, as was unlikely, that the balance of trade was unfavorable to Great Britain the price of bills could be severely depressed. O n the other hand, a high price for bills might be expected to result in the shipment of g o l d or silver f r o m the colonies. U n d o u b t e d l y the merchants were correct in saying that their markets were drained of metallic currency, but part of this exporting of coin might be attributed to the issues of paper currency, which doubtless aggravated the situation rather than corrected the so-called scarcity of money. T h e r e is no doubt, however, that the supply of silver in Pennsylvania w o u l d never have sufficed to finance the continued unfavorable balance of trade with E n g l a n d . F o r example, in 1728 P o w e l wrote, " A n d for shipping silver I can't pretend to do that for it was never so scarce as now. I f I were to pawn all I have in the w o r l d , I don't think I could pick up £100 in all our t o w n . " 6 A n o t h e r special factor is that during a war not only might the supply and demand for bills be affected but the increased freights and insurance of such a period would change the point at which it might be profitable to purchase bills at an unnaturally high rate. Such a condition is typified by the f o l l o w i n g excerpt f r o m a letter written by a Philadelphia merchant in 1 7 4 9 : " A great many people h a v e been obliged to ship dollars because they could not get bills. I should have done so too if I could have seen that there w o u l d be anything got by it, but it does not appear to me that they w i l l make a better remittance than bills at 7 2 ^ per cent [ £ 1 7 2 ^ Pennsylvania currency for £100 sterling] when the freight and insurance and all charges are paid." 7 T h e rates of exchange have been collected f r o m merchants' acA n o n . . Observations on Bullion Payments, p. 4.-5. " O c t o b e r 1 6, 1 7 2 8 , S a m u e l P o w e l , J r . to J a c o b W y a m , E n g l a n d . ' A p r i l 27, 1 7+9, J o h n S w i f t to his uncle, John W h i t e , L o n d o n . 1

318

PRICES IN COLONIAL

PENNSYLVANIA

210 200

EX CHA NGE RA TES

190 180 170 160

•

m

\ .

r

150 140 130 120

\

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R A T E S OF E X C H A N G E OF L O N D O N -

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319

210 200

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190

V V' V

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180

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150 140 130

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P E N N S Y L V A N I A C U R R E N C Y FOR £ I O O S T E R L I N G ,

1771

100 1772

1722-1775

1773

1774

1775

320

PRICES

IN COLONIAL

PENNSYLVANIA

counts and letters. These rates were usually appended to lists of prices quoted by the Philadelphians and were often mentioned even when prices were omitted, especially at the time of remitting payment to London. T h e bills were normally drawn at forty days sight. As many quotations as possible were copied and combined into monthly averages by computing the arithmetic mean of the various rates. T h e average monthly rates of exchange are shown on Chart X X X I , page 3 1 8 - 1 9 , and are given in the Appendix, Table 1 7 , page 4 3 1 . N o estimating was done to get figures for the months in which actual rates were not known. T h e annual averages of exchange rates, which are given in the Appendix, Table 18, page 4 3 2 , were computed from quarterly averages of the monthly rates. F r o m 1 7 2 0 to 1 7 3 9 the transactions in bills of exchange were very scattered. During the early twenties the usual rate was 133J/3. Such a quotation would correspond with the valuations established by the proclamation of Queen Anne in 1704. 8 There is evidence, however, that issues of paper money 8 in 1 7 2 3 caused a temporary slump in the value of Pennsylvania currency or, as a contemporary might have said, an increase in the price of sterling. At this time merchants complained that they were receiving only paper money in local transactions. T o Norris it appeared that he was receiving "paper trash for good g o l d . " 1 0 B y 1 7 2 7 the rate of exchange appeared to have been stabilized at £ 1 5 0 Pennsylvania currency for £ 1 0 0 sterling. It should be pointed out that the scarcity of bills led to remittances of produce; just as the Philadelphia merchants were " g l a d to get anything of the country product" 1 1 for what they sold, so were they accustomed to sending goods rather than bills of exchange to England. It was in 1 7 2 8 when the rate on bills was holding at 1 5 0 that Powel wrote, " A s to remitting thy effects by bills of exchange, that would be very difficult to do. It is but very seldom that our paper money will purchase them, and gold is not to be had almost on any terms. If I can get bills for thee, I will send them, but I do not think it can be done. * Douglass, William, Currencies of the British Plantations, edited by Charles J . Bullock, Economic Studies, American Economic Association, Vol. II, No. 5, pp. 301-302. * References to issues of paper currency through the text are based on Pafer Currency of the American Colonies by Henry Phillips, J r . 10 February 1725, Isaac Norris Ledger. 11 November 8, 1728, Samuel Powel, Jr. to David Barclay, London.

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T h e e must be content with tobacco, rice, sugar, or anything our money will buy." 1 2 As late as J u n e 1 7 3 0 bills on London sold at the rate of 1 5 0 in spite of the additional currency authorized in 1 7 2 9 . At this time L o g a n wrote to John Penn: " N e x t , as to paper money, against which neither J . Steel nor I dare say one word and I confess I have never been against it so long as its value is kept up by not exceeding in quantity. But I fear the popular frenzy that now reigns will never stop till we are in as bad credit as they are in N e w England where an ounce of silver is worth 20 of their shillings, and then an English shilling of your quitrents will be about three pence. T h e y already talk of making more and no man dares appear to stem the fury of the popular rage. T h e notion is that while any man will borrow on a good security of land more money should be made for them without thinking of what value it will be when made. T h e y affirm that whilst the security is good the money cannot fall and if the exchange rises to 200 'tis only the sterling money that rises for ours is still the same."' 3 In the latter part of 1 7 3 0 Pennsylvania currency declined still further so that the rate increased to 1 5 5 . It is difficult to say how much of this rise in exchange rate can be attributed to the issue of 1 7 2 9 . During these years merchants were hard pressed to meet obligations in England. In the fall of 1 7 2 9 Powel had written to a British correspondent: "People are now grown so very backward in their payments that trade is hardly worth following and, indeed, I cannot advise thee to send me any more goods unless thee wilt order thy remittances per the West Indies. Then perhaps one might give business more despatch. But remittances direct—I mean such as are like to turn to account—are very difficult to be made." 1 4 B y the following spring even the outlook for remitting to London indirectly by way of the West Indies appeared discouraging to Powel. T o another merchant in London he wrote, " A s to shipping thy effects to the West Indies I am really at a loss at present. . . and for bills or silver it is next to impossible at present to get any." 1 8 "October i6, 1728, Samuel Powel, J r . to Nicholas Witchell. " N o v e m b e r 1 7 , 1729, James Lopan to John Penn, Pennsylvania Magazine and Biography, 1 9 1 0 , Vol. XXXTV, pp. 1 2 2 - 1 2 3 . 14 September 30, 1729, Samuel Powel, J r . to John Askew, London. " A p r i l 19, 1 7 3 0 , Samuel Powel, J r . to Thomas Hyam, London.

of History

322

PRICES

IN COLONIAL

PENNSYLVANIA

In the fall of 1 7 3 0 Powel wrote still more pointedly, " I f thee dost not give me orders to remit the remainder of thy effects in our country produce it will be very difficult to do it any other way, for as you have no demand in Europe, nor like to have soon, there are no bills to be had on almost any terms." 1 8 T w o months later he informed a linen draper in Cheapside: " N o bills nor anything else worth remitting direct to be had. I shall be obliged to remit to the West Indies in order to get money in E n g l a n d . " " The evident scarcity of bills seems sufficient to account for the rise in the rate of exchange in the second half of 1730. Little attention need be paid to the issue of 1 7 2 9 , especially since during the first months of 1 7 3 1 the rate of exchange receded to £ 1 5 0 Pennsylvania currency to £ 1 0 0 sterling. T h e increase in the bills of credit outstanding by the reemission in 1 7 3 1 of what had been automatically refunded appears related to the marked depreciation in paper currency in that year. Not only did the rate of exchange rise from 1 5 0 to 162^2 between June and October but the premium paid on gold in addition to its legal price of £5 10s. per ounce increased from 1 2 . 5 per cent in February to between 17.5 and 20 per cent in November. 18 As a result of these increases in the premium on gold, Logan calculated that with the addition of other charges the rate of exchange would be £ 160 Pennsylvania currency for £ 1 0 0 sterling. Nevertheless there was some advantage in shipping the specie since bills were selling at 162J/2. 18 About the same time Logan informed other correspondents that, because of the decline in the prices of grain in Europe and of provisions in the West Indies, bills of exchange as well as gold and silver had become very scarce.19 T h e problem of remitting is further illustrated by another quotation from Logan. " I could not by any possible means procure either bills or gold or silver in exchange for thy paper money that I have in my hands and I have never had either order or liberty to make any other kind of remittance for you. I am now in some measure made more easy by thy order in that letter to ship . . . to the value of £300 "October 1 5 , 1 7 3 0 , Samuel Powel, J r . to Thomas Hyam, London. "December z8, 1 7 3 0 , Samuel Powel, J r . to David Barclay, London. " N o v e m b e r 18, 1 7 3 1 , James Logan to Arch Hope and Co., London. "September 28, 1 7 3 1 , James Logan to L . Aubrey, London; November 16, 1 7 3 1 to James Larkey, London.

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on thy account in flour and bread." 2 0 F r o m a subsequent letter it appears that L o g a n shipped flour, bread, and beer to a merchant in South Carolina to be credited to the Londoner's account. 21 In J u l y 1 7 3 2 , gold was preferred to silver in making remittances. T h i s is indicated by a request of Norris: "Please to make the remittance in good bills, sent to me here, or gold or silver but would rather choose gold or bills." 2 2 During 1 7 3 2 exchange never dropped below 1 6 0 and in the f a l l of 1 7 3 3 advanced even to 1 6 5 . At the close of that year Powel was to write to a London correspondent, " T h o u well knows it is either paper money or country produce we receive for what we sell and it is very seldom either of these will purchase bills, gold, or silver and when they will many people are catching at them." 2 3 It is probable that bills sold within this range of 1 6 0 to 1 6 5 during 1 7 3 4 and 1 7 3 5 , especially in view of the steadily increasing imports from Great Britain and the consequent greater demand for bills. At the close of 1 7 3 5 Powel again had to explain, " I t is with so much difficulty that anything for a direct return for E n g l a n d is to be got here that I must again request thy orders for shipping at least a part of thy effects to Carolina or to the West Indies." 2 4 During 1 7 3 6 and 1 7 3 7 there was a further slight depreciation in the currency in terms of sterling with the results that in 1 7 3 7 the rate on London rose to between 1 6 5 and 1 7 0 . At this level the Spanish milled dollar would be valued at 7 shillings 6 pence in Pennsylvania currency. This ratio may be considered as par in the years from 1 7 3 7 to 1 7 7 5 . Since there was no further change in the rating of the Pennsylvania shilling, the chief interest in the remaining period is the deviations from this par of exchange and their relation to prices and trade. During 1 7 3 9 , when the legislature, through a committee under Isaac Norris, investigated the currency and as a result increased the amount of bills of credit to £80,000, the prevailing rate on London was 1 7 0 . T h e same ratio between Pennsylvania currency and sterling M

November 1 7 , 1 7 3 1 , James Logan to L . Aubrey, London. February 2 1 , 1 7 3 2 , James Logan to L. Aubrey, London. " J u l y 27, 1 7 3 2 , Isaac Norris to D. E. Isaac. 3 November 6, 1 7 3 3 , Samuel Powel, J r . to John Bell, London. M December j , 1 735, Samuel Powel, J r . to Benjamin Bell, London. 51

324

PRICES

IN COLONIAL

PENNSYLVANIA

persisted during the first part of 1 7 4 0 , but in the twelve months following J u n e there was such an appreciation in the value of Pennsylvania currency that by J u n e 1 7 4 1 the average rate on London was 1 2 8 ^ . T h e cause of this extreme decline in the rate on London was the financing by the British government of the expedition against the Spanish in the West Indies. T h e purchase of foodstuffs to be sent from Pennsylvania to the West Indies for the use of the R o y a l N a v y resulted in a large volume of bills on London. T h e effect of this decline on prices in Pennsylvania was to keep the prices of British goods from rising. T h e difference between the usual rates of exchange and the relatively low current rates on London enabled American importers to pay the increased freight and insurance charges caused by the war. This is referred to by Powel as early as October 1 7 4 0 when he pointed out to a London correspondent that English goods were as cheap as before the war and had not advanced "in proportion to the extraordinary charge of bringing t h e m " since "the fall of exchange which is now no more than 55 per cent is something toward the extraordinary expense of insurance, freight, etc." 25 British goods could also be shipped to Philadelphia on commission because without any advance in price in terms of Pennsylvania currency there would be an increase in price to the exporter in England after the proceeds of the transaction had been converted into sterling. For example, in the spring of 1 7 4 1 Powel noted that the low price of tea in Pennsylvania would be offset by the f a l l in exchange. 24 This appreciation in the value of Pennsylvania currency is sufficient to account for the fact that prices of British merchandise did not advance during the early years of the war with Spain. At the same time the f a l l in the rate of exchange on London meant that still higher prices for Pennsylvania produce had to be obtained abroad in order that the domestic exporter could break even. " I note," wrote Powel in the spring of 1 7 4 1 , "what thou says of grain being scarce generally in Europe. It is also much dearer here than usual and exchange lower. Bills on London are now current at 45 per cent and wheat is 4 shillings 9 pence per bushel so that it must keep a good price to get anything considerable by it." 2 7 B

October 8, 1740, Samuel Powel, J r . to Thomas Hyam, London. " A p r i l 8, 1 7 4 1 , Samuel Powel, J r . to Benjamin and William Bell, London. " A p r i l 8, 1 7 4 1 , Samuel Powel, J r . to Thomas Hyam, London.

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E a r l y in M a y , before the lowest exchange rates were quoted, P o w e l mentioned that the rate had declined to 1 3 3 M or 135 and added that probably this would " b e some disappointment to some gentlemen on your side who have sent their ships to load and probably expect to be drawn on at 50 per cent or 6o.,,2S It is easy to see the troubles of British traders who expected to buy £ 1 5 0 to £ 1 6 0 in Pennsylvania currency with £100 sterling when they could purchase only £ 1 3 5 or less. F r o m its lowest level, reached in June, the rate on sterling advanced. T h e short crop of 1741 forced the British to send most of their supplies of provisions for the fleet from E n g l a n d and Ireland and consequently reduced the supply of bills here. T h e result was that in the latter part of 1741 exchange fluctuated between £140 and £ 1 5 0 to £iOO sterling and in the early months of 1742 bills sometimes sold as high as £ 1 6 5 . In fact, during 1742 exchange did not fall below 160 until after August. A l t h o u g h these rates were low in comparison with those quoted for some time before 1740, they appeared high in terms of the low exchange of 1 7 4 1 . A t this time one merchant preferred to ship flour to Jamaica as an indirect remittance to London. 2 8 E v e n in the fall when bills sold between 150 and 155 some Philadelphians expected still lower rates. It was at this time that P o w e l wrote: " W e have never had bills more plenty than at present, nor money scarcer. H a r d l y a day passes but I am offered bills." 3 0 Another merchant commented when bills of exchange were at 150 per cent that advice had been given not to buy any because it was expected that they w o u l d be still lower. 3 1 A f t e r the recession in the closing months of 1742 s 2 exchange adM a y 2, 1 7 4 1 , Samuel P o w e l , J r . to T h o m a s H y a m , London. " J u l y 10, 1 7 4 2 , Richard H o c k l e y to T h o m a s Penn, L o n d o n , Pennsylvania Magazine of History and Biography, V o l . X X V I I I , 1904, p. 29. " O c t o b e r 26, 1 7 4 2 , Samuel P o w e l , Jr. to E d w a r d Fell, t r a v e l i n g in M a r y l a n d . " November 1, 1 742, Richard H o c k l e y to T h o m a s Penn, L o n d o n , Pennsylvania Magazine of History and Biography, V o l . X X V I I I , 1904, p. 39. " It w a s about this time that the merchants of Philadelphia published an advertisement, referred to by P h i l l i p s as establishing the value of the dollar at 7 shillings 6 pence. Phillips, H e n r y , Jr., op. cit., pp. 26-27. F r o m the evidence of the exchange rates it is apparent that such a valuation was customary perhaps as early as 1 7 3 7 and certainly by 1 7 3 9 . In the l i g h t of the decline in the e x c h a n g e rate in 1 7 4 1 and the fluctuations f r o m 1740 to 1 742 it seems more likely that the merchants were merely t r y i n g to restore the conditions of t r a d i n g to the p r e - w a r basis. T h i s interpretation is strengthened by the fact that the merchants determined to abide b y the terms of their agreement f o r three y e a n . x

326

PRICES

IN COLONIAL

PENNSYLVANIA

vanced almost continuously for four years. During 1743, especially after April, the rate varied between 160 and 165. T h e r e was some scarcity of good bills at that time. According to Powel, when exchange was at 162^2 he "was obliged to make friends to get what I wanted at that rate. I do not see any prospect of their being much lower. T h e y are now, indeed, at 60 [ 160] but I do not know of any but what are engaged." 3 3 During 1744 the rate advanced still further, bills usually selling between 165 and 170. In the fall Powel wrote to a London correspondent, " I hope it will not be long before I may send you some more bills but they are now very difficult to be got at 70 per cent." 34 In March 1745, when trading was complicated by the scarcity of vessels and high freight rates," the same merchant reported: " E x change is started on a sudden [rise] here to 75 per cent and perhaps may hold so until our London ships are sailed which may be in about three weeks; then 'tis like they may lower again to 70 per cent." 38 Powel must have been disappointed. There is no evidence that bills sold for less than 175 during that year. In April he wrote, "Bills of exchange . . . now are difficult to get at 75 per cent." 37 It was reported in November that "bills of exchange are now at 7 7 ^ to 80 per cent and that is so high that I doubt our trade will hardly bear it." 38 F r o m December 1745 to M a y 1748 exchange held above 180 except for a few months in 1746, and never dropped below 175. By the close of 1746 most Philadelphians must have been, like Powel, "almost discouraged as 'tis like to be very difficult getting any money into England, exchange being from 80 to 85 per cent and bills hardly to be got." 3 9 In the same month Powel referred to the fact that he would "not have shipped the cash but that I think it as good a remittance as bills even with the insurance and that it may be a great while before I shall be able to remit you money per exchange." 40 In the middle of February 1747 D a v i d Barclay in London was in" November 15, 1743, Samuel Powel, Jr. to Benjamin and W i l l i a m Bell, London. " S e p t e m b e r 1 5 , 1744, Samuel P o w e l , Jr. to T h o m a s H y a m and Son, London. " M a r c h 5, 1745, Samuel P o w e l , Jr. to T h o m a s Hyam and Son, London. " M a r c h 1, 1745, Samuel P o w e l , Jr. to T h o m a s Hothersall, Barbados. " A p r i l 1 5, 1 745, Samuel P o w e l , Jr. to Benjamin and W i l l i a m B e l l , London. " N o v e m b e r 1, 1 7 4 J , Samuel Powel, Jr. to Robert Wheatle, London. " D e c e m b e r 26, 1746, Samuel P o w e l , Jr. to T h o m a s Plumsted, London. " D e c e m b e r 1 1 , 1746, Samuel P o w e l , Jr. to Smith and W i l c o x .

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formed that "exchange is so extravagantly risen that I do not know when thou [wilt] get any more bills from me from hence. They are at 90 per cent. I cannot think of purchasing at that rate." 41 Sterling exchange apparently sold at 190 as late as March 4, 1 7 4 7 . There is no evidence that as high a rate was ever quoted at any other time before the American Revolution. In a space of six years, therefore, the Pennsylvania merchants had been confronted with the greatest range in the rate on bills that ever was quoted between 1 7 2 0 and 1 7 7 5 . In 1 7 4 1 bills had been lower than the ratio between the Pennsylvania and the English shilling as set by the proclamation of Queen Anne in 1704, that is 13 3 J/3 per cent. And by February 1 7 4 7 the rate had risen until £ 1 9 0 Pennsylvania currency was required in exchange for £ 1 0 0 sterling. This depreciation in the value of Pennsylvania currency can hardly be attributed to the emission of £ 1 0 , 0 0 0 in 1 7 4 4 , which merely replaced old notes and did not add to the gross amount in circulation, or to the £5,000 of new bills emitted for the King's use in 1746. It should be noted, however, that in 1 7 4 5 there had been a general reissue of the £80,000 of currency for an additional period of sixteen years. It is difficult to relate fluctuations in the rate for sterling with changes in the amount of the trade of this colony. T h e lapse of time between the ordering and the receipt of merchandise and the terms of credit upon which goods were bought and sold have been discussed in Chapters I and X I . The length of time between delivery of and payment for goods seems to make the volume of imports and exports and the rates of exchange rather insensitive to variations in each other. W e have also pointed out that the only consecutive account of the trade of Pennsylvania is restricted to the annual value of that between the colony and Great Britain and that the values of imports from Great Britain have usually been estimated from the unit price in 1697. In spite of these limitations, the movements in the exchange rates, especially that from 1 7 4 4 to 1748 when they rose and held above par, may be attributed in part to the interruption of the usual export trade of Philadelphia which cut off the indirect source of supply of bills and made it impossible to remit indirectly in the form of country produce. Also the demand for bills increased as a result of the " February 16, 1 7 4 7 , Samuel Powel, J r . to David Barclay, London.

328

PRICES

IN COLONIAL

PENNSYLVANIA

larger volume of imports from England after the two years of 1 7 4 4 and 1 7 4 5 when the imports were of comparatively small value. In the last part of the war with France and Spain, the value of Pennsylvania currency again appreciated. E a r l y in March 1 7 4 7 exchange dropped to 1 8 5 and even to 1 8 2 ^ 2 and was expected to decline f u r t h e r . " B y the close of April it had fallen to 1 8 0 . " It did not, however, decline below this point until J u n e 1748 and actually rose to 1 8 5 in the latter half of 1 7 4 7 . In sending a bill of exchange near the end of M a y 1 7 4 7 the remitter complained, " I t cost me 85 per cent which is more than I expected to give a few days ago, but it seems it is always the custom in this place for bills to rise just when a vessel is ready to sail for London and I happened to stand off a little too long in hopes they would be l o w e r . " " In J u n e 1748 bills fell to 1 7 5 and even to 1 7 0 . T h e cause of the sudden decline is revealed in the letter of a contemporary. " T h e i r being so l o w , " he wrote, "is occasioned by three prize vessels loaded with sugar, coffee, cotton, and cocoa . . . which is now selling and will be chiefly bought to ship to England." 4 ® Although this may have caused the initial break in the rates of exchange, it must be pointed out that the general resumption of trade resulted in a large supply of bills of exchange from the more usual sources. B y the beginning of September bills were " a dull sale at 65 per cent" and Richardson was " a f r a i d they will not be better." 46 T w o months later he reported, " F o r the bill I am offered no more than 6 5 per cent, but as we have some vessels almost ready to sail for England am in hopes of getting 67Y* per cent." 47 Probably the increased volume of imports from England in 1 7 4 9 contributed to the fact that for most of that year and during the first part of 1 7 5 0 bills usually sold between 1 7 0 and 175. 4 8 After J u l y " M a r c h 9, 1 74.7, Samuel Powel, J r . to Gabriel M a n i g a u l t , South Carolina. " A p r i l 30, 1 7 4 7 , Samuel Powel, J r . to Gabriel M a n i g a u l t , South Carolina. " M a y 30, 1 7 4 7 , John S w i f t to his uncle, J o h n White, London. " J u n e 1 0 , 1 7 4 8 , John S w i f t to his uncle, J o h n White, London. " September 1 , 1 7 4 8 , Joseph Richardson to Captain Patrick T r a c y . " N o v e m b e r 3, 1 7 4 8 , Joseph Richardson to Captain Patrick T r a c y . " In the spring of 1 7 5 0 John S w i f t shipped some coin and silver to London. T h e transaction, which is given below, is significant because of the rating of 7 shillings 6 pence f o r the Spanish milled dollar and f o r the same rating of the English crown. T h i s rating

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1 7 5 0 , however, the rate on bills tended to decline. T h e first drop lowered them to 1 6 7 ^ and less in the closing months of 1 7 5 0 . There was a rebound in 1 7 5 1 , bills tending to sell at 1 7 0 , but in March 1 7 5 2 when a Philadelphia merchant paid 1 7 0 for a bill of exchange he commented that that was somewhat "higher than any has been sold [ f o r ] some time past." 49 T h e decline in the rate during that year was so rapid that by the beginning of November bills payable on London sold at 1 6 2 ^ ™ and before the end of the month they sold at 160. It was pointed out that "they are commonly low this season of the year." 5 1 At this rate bills on London were lower than at any other time between the Treaty of Aix-la-Chapelle and the beginning of the French and Indian War. In January 1 7 5 3 the rate rose to 1 7 0 and fluctuated between 166^2 and 1 7 0 until December 1 7 5 5 . During most of this time there was discussion of additional issues of paper currency. In the spring of 1 7 5 3 Isaac Norris wrote to Charles, " O u r paper money has now become so essentially necessary to the trade of this Province that it will be very agreeable to us all to be well informed of the sentiments of our superiors there concerning it and how far they distinguish between the care this Province has always taken in their additions or emissions of their bills of credit and the unbounded licentiousness of some other of the colonies." 52 In December 1 7 5 5 the rate of exchange increased to 1 7 2 ^ 2 to 1 7 5 and held well above 1 7 0 during most of 1 7 5 6 . It is not possible to separate the effects of the additional currency issues of that year from of the English crown corresponds to that given in the advertisement quoted in footnote 3. T h e price of the ounce of silver, 8 shillings 6 pence, corresponds to that quoted by Norris in 1 7 3 9 and by others in the forties. 440 21 2 3 207

M i l l ' d Dollars Ditto unmilled French Crowns English " oz. : 2 dwt. Spanish Silver

(fr (a @ @

7/6 7/6 7/6 7/6 8/6

165. . — . — 7 1 7 .6 — . 15 — T . . 2 . 6 88 — . 4 262

which makes at 7 2 ^ % Exchange 1 5 2 6 6 m March 2 4 , 1 7 5 2 , Joseph Richardson to Staccy and Orme. M November 4, 1 7 5 2 , Joseph Richardson to Stacey and Orine. 51 November 30, 1 7 5 2 , Joseph Richardson to Stacey and Orme. " A p r i l 1 4 , 1 7 5 3 , Isaac Norris to Robert Charles, Leicesterficlds.

15

4

330

PRICES

IN COLONIAL

PENNSYLVANIA

the effects of the disturbances of trade arising out of the Seven Years' War. B y orders of the ministry, an embargo was laid on all vessels loaded w i t h provisions, not bound to any other colony. Vessels thus destined were permitted to sail, on bond given to land the cargo at the port designated in the clearance. T h i s restriction was continued for a long time, and was greviously complained of by the merchants, and protested against by the assembly, in vain. T h e stock of provisions was greatly accumulated, and the cargoes of forty vessels, loaded at the wharfs, were perishing, whilst G r e a t Britain, Ireland, and the W e s t Indies were suffering for food. 5 3

As that war progressed the value of Pennsylvania currency appreciated in terms of sterling. T h i s is reminiscent of the behavior of the early years of the war with Spain, especially 1740 and 1741. It was in 1740 and 1741 that the demand for produce to supply the royal forces in the W e s t Indies gave rise to many bills of exchange payable in sterling. D u r i n g the Seven Years' W a r there was another large supply of bills resulting from the shortages of foodstuffs in Great Britain, especially from 1757 to 1759, when the colonies could export provisions only to Great Britain. T h e explanation for this increase in the value of Pennsylvania currency is to be found, also, in the internal financial conditions of Great Britain. According to Chalmers, " D u r i n g the two first years of the war [ 1 7 5 5 and 1 7 5 6 ] the ministers borrowed money at 3 •per cent. But, five millions being lent to the administration, in 1 7 5 7 , the lenders required 4 ^ per cent." 54 As the war progressed, the credit of the government fell still further. By 1759 there was "an unusual scarcity of gold and silver . . . in E n g l a n d " and the Bank of England issued "cash notes for £15 and for £ 1 0 . " " T h e rate of appreciation of Pennsylvania currency, however, was not as rapid as in the earlier war nor did it go to such extremes. It was in these years when the sterling rate fell gradually that the largest issues of Pennsylvania currency were made. 56 " Gordon, T h o m a s F., History of Pennsylvania, p. 340. " Chalmers, George, Domestic Economy of Great Britain and Ireland, p. 1 29. " Anderson, Origin of Commerce, revised by M r . Coombe, Vol. I l l , p. 603. " G o r d o n , T . F . , of. cit., pp. 3 7 1 - 3 7 2 . "Remittances from England had been delayed; and such was the scarcity of money in Philadelphia, that no purchaser could be found for bills upon the British Treasury. Under these circumstances, Colonel Hunter, the agent

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EXCHANGE

331

As early as M a y 1 7 5 9 only £ 1 5 0 of Pennsylvania currency was needed to purchase £ 1 0 0 sterling. With such a persistent fall in the rate of exchange it is not surprising that from 1 7 5 6 to 1 7 5 9 the volume of imports tended to increase. T h e total value of that trade increased continuously from 1 7 5 7 to 1760. T h e ensuing nse in the rate of exchange was more rapid than its f a l l had been. From August 1 7 5 9 until well into 1 7 6 0 the usual rate was 1 5 5 . In the third quarter of 1 7 6 0 there was a substantial increase, bills selling between 1 6 0 and 1 6 2 ^ , and in the last quarter of that year a still further increase, after which from £ 1 7 0 to £ 1 7 2 of Pennsylvania currency exchanged for £ r o o in London. T h e depreciation in Pennsylvania currency in terms of sterling was not checked decisively until after the rate had increased to 1 8 0 in August 1 7 6 1 . This was the only time between the Treaty of Aix-laChapelle and the American Revolution that Pennsylvania currency could buy so little in London. In the years which followed there was a tendency for exchange to return to the par of 1 6 6 ^ . T h e rate on London during 1 7 6 2 was usually between i y 2 l / 2 and 177^2 i from 1 7 6 3 to 1 7 6 5 it varied between 1 7 0 and 1 7 5 . T h e rigorous enforcement of British laws with respect to the trade of the colonies and the protests of the merchants against the Stamp Act interfered with many of the usual sources upon which merchants depended for bills on London. One Philadelphian, for example, reported that he "had a deal of trouble" in procuring bills and that they were " v e r y scarce here." 87 F r o m October 1 7 6 5 until M a y 1 7 6 7 the rate for sterling was usually between 1 6 0 and 1 6 7 ^ . Only once did it rise as high as 1 7 0 . These comparatively low rates reflect the distaste of the colonists for British goods and the smaller demand for exchange on London because goods purchased there were not especially salable at that time. Additional factors caused a sharp break in the rate of exchange in November and December 1766. Before the middle of November the f o r the contractors for supplying Assembly a loan of one hundred in installments of six, twelve, and that sum." " October 22, 1 764, Benjamin

money to the forces in North America, asked of the thousand pounds currency in Provincial bills, payable eighteen months. T h e house consented to loan him half Marshall to D r . J a m e s Tapscott,

of History and Biografhy, 1896, Vol. XX, p. zo8.

Pennsylvania Magazine

332

PRICES

IN COLONIAL

PENNSYLVANIA

rate was 1 6 0 " a n d falling." 5 8 B y the close of the month the same merchant wrote, " B i l l s on London have fallen to 48 per cent and, it is thought, will be much lower owing to the large draft for wheat and flaxseed j and we suffer prodigiously for want of circulating cash not having yet obtained a repeal of the Act of Parliament against striking paper currency.'* 59 About the same time another Philadelphian confirmed the fact that exchange was "under 50 per cent" and that "money is so scarce it is next to [an] impossibility to collect any even for bills of exchange." 80 T h e news of such low rates on bills in Philadelphia attracted purchasers from N e w Y o r k . Near the middle of December, Roberdeau acknowledged the receipt of an order from a New York firm to purchase sterling exchange, but commented, " Y o u were too late in your application for bills, which have been current at 50 per cent and have been as low as 475^2 of dubious credit; but exchange is just now at 52^2 and 55 per cent occasioned by an opportunity of conveyance immediately for London, which naturally and always raises exchange ; but as that opportunity will cease this day, I make no doubt in a very little time bills will again be as low as 50 per cent but I do not expect them lower, of such as I should choose to purchase." 61 During the spring of 1 7 6 7 bills tended to sell for 1 6 0 and above. A further advance in the rate occurred in the summer of 1 7 6 7 , when from 1 6 7 ^ to 172J/2 was the prevailing quotation. In the fall of 1 7 6 7 Pennsylvania currency again appreciated, the rate ranging between 1623/3 and 1 7 0 . Such rates were typical during 1768 and the early months of 1769. In March 1 7 6 9 , Clifford pointed out to a New Y o r k merchant some of the problems involved in selling bills of exchange in Philadelphia. " I am not buying bills myself," he wrote, "but if thou sends me any . . . must sell them; and that will be done for the highest exchange I can get. W i l l i n g and Morris sell their own draft at 64 per cent; West India bills at 635/2. If I should obtain 65 'tis more than I could promise myself at present. Shipping frequently to England and not importing much goods of late, the balance is in "November "November "November 0 Pecember

13, 25, 27, 16,

1766, 1766, 1766, 1766,

Daniel Roberdeau to Hyndman and Thomson, St. Christopher, Daniel Roberdeau to William T u r n b u l l , Spanish T o w n . T h o m a s Riche to P a r r and Bulkeley, Lisbon. Daniel Roberdeau to Breese and H o f f m a n , N e w Y o r k .

STERLING

EXCHANGE

333

my favor and the exchange [being] low prevented me from drawing [and] kept me bare of cash. At present no prospect appears of bills rising." 62 After April the rate fell sharply and some bills were sold for 1 5 0 between September 1 7 6 9 and J u l y 1 7 7 0 . It is not surprising that with rates for sterling as low as they had ever fallen in the French and Indian W a r , a Philadelphia merchant should write, " T h e lowness of exchange as well as the price of American imports into Great Britain almost forbids a longer continuance of ships in that t r a d e . " " These low rates on London arose indirectly out of the decreased demand for British goods. T h e non-importation agreement which became effective in Philadelphia in the spring of 1 7 6 9 was but a repetition on a bigger scale of the retrenchment in the use of British goods in 1 7 6 5 and 1766 in opposition to the Stamp Act. T h e cessation of part of the commercial dealings caused a serious reduction in the amount of sterling needed to balance accounts. In August 1 7 7 0 there was an appreciable rise in the rate of exchange and by October bills were selling at 160. T h e resumption of normal trading with England and the large imports in 1 7 7 r, which were at the maximum value of the Colonial period, probably contributed to the fact that during the first three quarters of that year bills in sterling sold between 1 6 5 and 168. During Octobcr and November the rates were lowered to between 1 6 2 ^ 2 and 1 6 4 and by December to 160. Although in the early months of 1 7 7 2 the prevailing rate on L o n don was between 1 6 2 ^ and 1 6 5 , it declined in J u n e and fluctuated for the remainder of the year between 1 5 7 ^ 2 and 160. This recession prompted Pollard to write: " A t present business seems off the hinges and out of order. Bills for instance always heretofore got up at this time of the year 5 or 7Yz per cent higher than in the fall of the year. This year they are two per cent lower than they were last fall.» 6 4 In 1 7 7 3 there was a gradual increase in the rate of exchange. In J u l y sterling sold for 1675/2 to 1 7 0 . T h e next month a Philadelphia " M a r c h n , 1769, Thomas Clifford to Walter Franklin, New York. ™ May 16, 1770, Thomas Clifford to Lancelot Cowper, Bristol, England. " J u n e 19, j 7 7 2 , William Pollard to Thomas Earle, Liverpool,

334

PRICES

IN COLONIAL

PENNSYLVANIA

firm wrote: " E x c h a n g e at present is high though the sale is not very brisk. T h e last bills, 40 days, obtained 67]/2 per cent, but in the fall of the year we do expect it will be down perhaps to 60, maybe under." 85 Actually, however, the rate declined only to 165 in September and then returned to 167^2 in the closing months of 1773. This advancing tendency continued as late as September 1774. " O u r exchange," wrote a merchant at that time, "has been favorable for a

CHART X X X I I — A N N U A L

RELATIVES OF W H O L E S A L E PRICES OF FLOUR

CORRECTED BY R A T E S OF E X C H A N G E ,

( B a s e — M o n t h l y Average,

1720-1775

1741-1745)

long time. . . . T h e y [bills] are rather on the decline and as soon as produce comes plenty to market, which will be in a few weeks, they will fall."®6 Whether because of the crops coming to market or the non-importation agreement which grew out of the First Continental Congress and which became effective in December 1774, the rate on London, which had been 1 7 2 ^ in September 1774, was 170 in November and between 165 and 1 6 7 ^ in December. During 1775, " A u g u s t 6, 1 7 7 3 , Stocker and W h a r t o n to Christopher C h a m p l i n , N e w p o r t , in Commerce of Rhode Island, V o l . I, p . 449. " S e p t e m b e r 8, 1 7 7 4 , Stocker and W h a r t o n to Christopher C h a m p l i n , N e w p o r t , in Commerce of Rhode Island, V o l . I, p. j 13.

STERLING

EXCHANGE

335

when there were practically no imports from E n g l a n d , the rate of exchange sagged once to as low as 1 5 7 ^ 2 , although usually it held at 1 6 0 or above. F r o m the latter part of the thirties to 1 7 7 5 the monthly fluctuations in exchange rates ranged from 1 2 5 to 1 9 0 after the level of the earlier years had been increased from 1333/3 to 1 5 0 and then from 1 5 0 to 166^3. E v e n on an annual basis the variations were between 1 4 5 and 1 8 5 . If these various rates were used to convert the annual prices of commodities in the Philadelphia market to their equivalent in sterling and these computed sterling prices expressed as relatives of the average of 1 7 4 1 to 1 7 4 5 , the changes would be somewhat as indicated on Chart X X X I I . 6 7 W e have taken, as an example, the price of flour in the Philadelphia market. T h e annual relatives of the prices of this commodity computed on the basis of Pennsylvania currency are represented by the solid line and are identical with those presented on Chart I I I in Chapter I I . T h e broken line shows the annual relatives of flour on the same base, 1 7 4 1 to 1 7 4 5 , after the absolute annual prices of flour had been adjusted to their sterling equivalent by use of the annual averages of exchange rates. A comparison of the relationship of these two lines shows that when the adjusted figures are used, the upward movement in the prices of flour after 1 7 4 4 , although still apparent, is somewhat reduced. T h e adjusted annual relatives for flour were considerably above the original relatives during the twenties, although the distance between them diminished during the decade. During the thirties, the adjusted relatives, which closely approximated the original series, were more often below those based on prices in Pennsylvania currency than above them. This relationship tended to hold during the remainder of the Colonial period. T h e greatest exception occurred in 1 7 4 1 when the peak of prices would have been still higher if measured in terms of sterling at the then current rates of exchange. " The use of sterling exchange rates in settling accounts with British merchants was recognized in Pennsylvania. In 1766 Franklin wrote from London to the Assembly, " I therefore inserted a clause to make sterling debts due to British merchants and payable here recoverable according to the rate of exchange at the time, which I think is no more than we have always practiced in the courts of our Province." April 12, 1766, Benjamin Franklin to the Committee of Correspondence of the Assembly of Pennsylvania, Pennsylvania Magazine of History and Biografhy, 1 8 8 1 , Vol. V, p. 353.

336

PRICES IN COLONIAL

PENNSYLVANIA

In subsequent years, prices in terms of Pennsylvania currency were Jower in terms of sterling when exchange rates were unusually high, as from 1745 to 1749 and from 1 7 6 1 to 1764, but in 1 7 5 9 , 1769, and 1 7 7 0 , when the rates were exceptionally low, the relative prices were raised. In spite of the variations, the movements of the two curves are similar. A similar adjustment of the prices of all other commodities would make comparable changes. In general, it can be said that when the rate on sterling was below 159, or about its average in the base period, the relative prices in terms of Pennsylvania currency would be raised if adjusted, and when the rate was above 159 they would be lowered. This method of converting prices from Pennsylvania currency to sterling might be subject to limitations at any time, and especially in periods when British credit was lowered such as in the first part of the Seven Years' War. The conclusions would be strengthened if it were possible to compare the fluctuations in the rates of exchange on London with those on another country.

CHAPTER

XIV

CONCLUSIONS T h e explanation of the movements of prices in Philadelphia is not to be found entirely in happenings in the province or even in all of the colonies, but can be completed only by those who relate the prices to conditions in areas to which Philadelphians traded most extensively. Probably at no time since the Revolution have prices in Philadelphia been so influenced by external affairs as they were during the Colonial period. In the comments of contemporaries we have seen that the price of wheat in Philadelphia was partly determined by the crop here and in Europe. A slight failure in the European harvest might reduce the competition of European wheat in the West Indies, while a more severe failure might even widen the market for Pennsylvania wheat abroad. At other times, if Pennsylvania staples could not be sold advantageously in the W e s t Indies, trade with that area might be so reduced that there would be a scarcity of West India products in the local market. T h e diversity of the factors which governed the shorttime fluctuations in wholesale prices has been stressed in the comments of the merchants. It has not been possible, however, to explain adequately all price variations. I n summary, it is possible, f r o m a statistical point of view, to separate the three classes of variations usually found in monthly series. This classification has the greatest significance when the changes in prices of specific commodities are considered. First, innumerable variations in prices arising out of the slowness of transportation and the diverse areas f r o m which supplies were acquired added to the seasonality of many series. So many other risks entered into their trading that merchants had to be wary of buying for themselves or involving joint owners or other houses in purchases at seasons when articles were likely to be high. Certain usual seasonal variations were expected. Those who could 337

338

PRICES IN COLONIAL

PENNSYLVANIA

purchase in advance were often informed of the times at which articles should be accumulated. As early as 1 7 2 9 a London merchant was informed that prices of wheat had enough seasonality to warrant attention to the time of purchasing. " T h e e mayst," Powel wrote, "generally take it for a rule that the best time to purchase wheat here is in February, March, and April." 1 This was particularly true in years when old wheat was carried over. On the other hand, prices of West India produce, unless navigation was unusually open, were likely to be high in the spring before the arrival of the supplies from the Islands, where the best time to purchase sugar, rum, and molasses was February and March. 2 The likelihood of getting West India products low by waiting until the first rush of the local demand was over was pointed out in May 1728 when Powel wrote, " I think it might be of advantage if thee ordered rum, molasses, and sugar to be purchased in the right season for it which is next month." 3 Rice was likely to be procured in Philadelphia on the best terms in the spring. As early as 1 7 2 4 it was pointed out that by the end of J u l y the "year is too far spent for rice to come to anything of a market." 4 The widening of the market for rice by direct shipments to the south of Europe later in the Colonial era made no change in the time most favorable for dealings in Philadelphia. In March 1 7 6 3 Clifford told a correspondent that "this is the best season of the year to find rice here." 8 If purchasers waited until fall to order rice they were unlikely to find supplies in any quantity. For instance, Clifford wrote in October 1 7 7 1 , when the price of rice was 1 7 shillings 6 pence, "Rice at this time of the year is not to be had at any [reasonable] price." 9 When Pollard wrote to a London merchant that "the best time to purchase lumber here is in June and J u l y " 7 one may draw the in1

August 28, 1 729, Samuel Powel, J r . to John Simpson, London. * March 7, 1 7 7 0 , Thomas Clifford to John Martindale, Barbados. ' May 6, 1728, Samuel Powel, J r . to Thomas Hyam, London. ' J u l y 30, 1724, Peter Baynton to Alexander Nisbet, South Carolina. ' M a r c h 29, 1 7 6 3 , Thomas Clifford to Nicholson and Bampfield, Charleston, South Carolina. * October 17 and November 16, 1 7 7 1 , Thomas Clifford to Thomas Frank, Bristol, England. ' May 2 j , 1 7 7 2 , William Pollard to William Reynolds, London.

CONCLUSIONS

339

ference that under ordinary circumstances this was the time w h e n adequate supplies were most l i k e l y to be on hand and w h e n the lowest prices were most likely to be current. A u g u s t was considered to be a particularly poor time to buy flour, not because the price w o u l d necessarily be high, but because it was " a n unfavorable time to purchase flour as they mix new wheat before 'tis sufficiently cured to keep." 8 M e a t , especially pork, was dearest during the summer and early fall and the merchants counted on the fact that it would d r o p in price toward the close of the year when new supplies came to market. Flaxseed underwent the most extreme seasonal fluctuations in its prices. T h i s condition developed f r o m a combination of natural forces. In the first place, flaxseed did not usually begin to come to market until about the first of N o v e m b e r . F o r this reason many ships arrived in the fall to procure cargoes of flaxseed to carry to Ireland. T h e regular coming of these vessels and the eagerness of their captains to sail as soon as possible before the river was blocked with ice influenced the local traders to hold back the supplies in order to obtain the highest price of the season; consequently prices often doubled, but it also happened sometimes that in the scramble at the close of the year the dealers w e r e disappointed as the result of their own delays. T h e price of wheat was also affected sometimes by holding back supplies when a number of vessels were in port, but as this did not occur as regularly as with flaxseed, random or accidental fluctuations rather than a marked seasonal pattern were introduced into the prices of grain. It was to be expected that prices of agricultural commodities which had a definite crop year would undergo seasonal fluctuations since the supply of these commodities w o u l d be comparatively fixed until the next harvest. In addition, the dependence of the community in general upon agriculture introduced some seasonality into the supplies of lumber and iron since the output of these products would be concentrated in the slack season on the farms and would be interrupted during the busy harvest season. ' A u g u s t 2 2) 1 7 6 8 , T h o m a s C l i f f o r d to W i l l i a m Smith, St. Christopher.

340

PRICES

IN COLONIAL

PENNSYLVANIA

At the same time there were commodities which sold in Philadelphia without any marked seasonal changes in price. Such commodities as pepper, tea, and salt, which were of small bulk and of high value, could be easily stored if a satisfactory price could not be immediately obtained and might rise in price considerably at any time when the stocks on hand were low and when there was little prospect of procuring additional supplies. T h e prices of British merchandise were likewise comparatively free f r o m seasonal changes. Temporary reductions in price were out of the ordinary because the British merchants usually considered it best f r o m the point of view of their sales to keep extra supplies on hand rather than to try to anticipate demand closely. T h e second type of fluctuations that affected many series of wholesale prices in Philadelphia is the successive swings. These cycles have been stressed in the discussion of the general curve as well as in the description of the specific commodities in which they appear. Chief among these are wheat, flour, bread, corn, rice, pork, staves, and naval stores. T o contemporaries, such price changes appeared to be the result of crop conditions at home or unusual demands from abroad. T h e i r recurrence was never noted. Although we have pointed out the swings in the price of related commodities, we can offer no more adequate explanation than those proposed by modern business cycle theorists. In tracing the effect of specific events on price movements in the Colonial period, it must be remembered that the province was small in area, in population, and in trade, and that, therefore, seemingly small disturbances may have bulked large in the economy of that day. Undoubtedly, too, that economy was quickly responsive to agricultural conditions both within and without its area. Attention should also be given to the fact that the prices of such commodities as Madeira wine, molasses, r u m , and loaf sugar, which did not undergo the swings typical of most of the other commodities, were definitely influenced by the m a j o r wars with France and Spain. Some of the swings in the commodities most subject to cyclical movement also occurred during the war years. Since the two war and immediate post-war periods cover a substantial portion of the Colonial era, special attention must be given to

CONCLUSIONS

341

them. In both cases, two swings in the prices of most commodities can be detected, marking the belated entrance of either France or Spain into the war already in progress. In considering the effect of these wars on prices, it is significant that the demand for specific commodities differed somewhat according to whether the chief military operations were on land or at sea. T h e high costs of freights, insurance, convoy, and other charges raised the price of some commodities, and by cutting off part of the foreign demand, lowered others. T h e incentives for privateering reduced the number of ships engaged in trade, attracted the seamen away from merchant ships, and raised their wages to what seemed to contemporaries extravagant levels. 8 T h e capture of prize ships and the auctioning of their cargoes was often the only source of supply of certain articles and caused erratic fluctuations in their prices. Some of these products were purchased to ship to other colonies and even to London. During the French and Indian W a r especially there were two opposing forces operating on the prices of Pennsylvania produce in the Philadelphia market. In the first place, the frequent embargoes on the port and the prohibition upon sending foodstuffs to any place except the other British colonies and Great Britain restricted somewhat the shipment of these articles. At the same time, the presence of a British army in western Pennsylvania and the location of the commissioner of supplies at Lancaster deflected part of the usual quantities of produce which would have found their way into the markets of Philadelphia. In appraising the price movements, especially those of British goods, during the war years, it is necessary to make allowance for the variation in the rates of exchange on London. T h e appreciation of Pennsylvania currency in the early years of both wars meant that without any advance in the price of British goods the merchants had "December 2 1 , 1744., Samuel Powel, J r . to T h o m a s H y a m and Son, London. " O n this side of the water abundance of English privateers are out. No less than six out of this port another fitting and the eighth a-building. Mostly stout vessels well fitted and manned f o r the purpose, but I think it would have been much better f o r us to have followed our trade and have taken our chance. Our seamen are all taken up in that w a y and are so difficult to be got f o r the merchant ships that they have six pounds and upwards per month to any part of America and no less, I am told, than 25 guineas per man f o r the run on board this ship f o r London, and she has lain laden and waiting f o r seamen about six weeks."

342

PRICES

IN COLONIAL

PENNSYLVANIA

an unexpected balance with which to pay the added costs of transportation and might even have a larger sum to remit to England. In addition to undergoing both seasonal and cyclical fluctuations in price, each commodity obeyed a trend of its own. In some series this long-time movement was horizontal or slightly downward, in some upwards, and in others horizontal for short periods but at successively higher levels. The two commodities with a marked downward movement in prices were turpentine and loaf sugar. A severe decline in the price of turpentine from 1 7 3 2 to 1 7 3 9 lowered it from the high level which it had previously maintained. During the remainder of the Colonial period its swings in price, like those of other naval stores, centered around a horizontal trend. Its price never again rose as high as it had been in 1 7 3 2 and earlier. T h e movements in the price of loaf sugar centered around a horizontal trend during the thirties and forties. Between 1748 and 1 7 5 1 its prices dropped substantially and held until 1 7 7 5 at a lower horizontal level than before 1 7 5 1 . Turpentine and loaf sugar were the only commodities which, in the latter part of the Colonial period, sold for less than was paid for them at the beginning of the period. The movements in the prices of pitch, tar, salt, and rice centered around an approximately horizontal trend during the entire period. The average of 1 7 4 1 to 1 7 4 5 was a rather typical price for pitch, tar, and fine salt, but it was lower for rice than in any other five-year period and higher than would be typical for coarse salt in the rest of the Colonial period. An extreme contrast to these is to be observed in the prices of the remaining commodities, which sold for higher prices just before the Revolution than in the early Colonial period. Although the movements in their prices were similar to that extent, there were significant differences in the amount of the upward movement as well as in the time and process of change to the higher level. Molasses and rum advanced less than the other series while wheat and Madeira wine sold at more than double the level of early years. The prices of staves, which were among the relatively lowest-priced commodities in the early twenties, more than trebled by the sixties, when they were among the relatively highest-priced articles. The

CONCLUSIONS

343

other commodities rose to varying levels between those of rum and molasses and those of wheat, Madeira wine, and staves. Molasses was the first commodity to show a slight but unmistakable tendency towards a higher level. F r o m 1 7 2 1 to 1748 its prices moved steadily higher and reached a point which they could not maintain in the comparatively peaceful years before and after the Seven Years' W a r . Nevertheless, the movements from 1 7 4 1 to 1 7 7 5 may be viewed as fluctuations around a horizontal trend at the level established in the rise between 1 7 2 1 and 1 7 4 1 . T h e next commodities to start their advance to higher levels were staves, muscovado sugar, beef, and pork. It is difficult to say when the price of staves first advanced, but at the close of 1 7 3 4 prices of barrel and pipe staves were well above their average in the early twenties, to which they never again declined. T h e price of hogshead staves had not advanced so rapidly and in 1 7 3 6 it even receded to approximately the level of the early twenties, but in 1 7 3 7 they were nearly as high relatively as the other staves. T h e later movement in the prices of staves can be described either as a steeply upward trend until the early sixties followed by a horizontal or even a slightly declining tendency, or as three successively higher levels, connected by rapidly rising prices from 1 7 4 5 to 1 7 4 7 and from 1 7 5 9 to 1 7 6 2 . T h e trends in the prices of muscovado sugar, beef, and pork are more definite. Muscovado sugar, which had been low and perhaps slightly declining in price from 1 7 2 0 to 1 7 3 3 , moved rather steadily upward from 1 7 3 3 to 1 7 4 7 and then held at a comparatively high and stable level from the latter part of the forties to 1 7 7 5 . T h e upward movement in the prices of beef and pork did not begin until two years after that of muscovado sugar, but it continued longer and reached a relatively higher level. F r o m 1 7 3 5 to 1 7 6 3 prices of beef gradually but persistently increased, and the corresponding rise in the prices of pork lasted a year longer. During the sixties and the first part of the seventies, prices of meat fluctuated around a horizontal trend. T h e early years of the war with Spain, which began in 1 7 3 9 , seemed to give an impetus to the prices of rum and Madeira wine to move to a permanently higher level. Between 1 7 3 9 and 1 7 4 2 West India rum increased substantially in price, rising to a level which it held

344

PRICES

IN COLONIAL

PENNSYLVANIA

to the end of the Colonial period. Its prices advanced markedly in the closing years of that war and during the Seven Years' W a r , although they dropped considerably during the middle fifties. T h e first shift in the level of Madeira wine prices occurred between 1740 and 1743. T h e price of 1743 held for two years. A f t e r a dip in 1746, there was another slight upward movement until 1754, followed by an extremely steep rise in prices from 1755 to 1760. T h e level then reached was maintained until 1 7 7 1 , when prices of Madeira wine again moved upward. Between 1743 and 1747 the prices of cotton nearly doubled. T h e level which they held for the remainder of the period was approximately 50 per cent higher than the average before 1743. T h e most significant changes in levels, because of the importance of the commodities involved, were those of wheat, flour, and bread. From 1720 to 1744 the price of flour fluctuated around a horizontal trend. Between 1744 and 1749 it more than doubled in price, and tended to rise still higher in later years. Even if the influence of the first three years of rapidly rising prices is eliminated, there is still a slight upward tendency from 1747 to 1764 and a much larger rate of increase from 1764 to 1 7 7 5 . Similar upward tendencies affected at the same time the prices of wheat, but to a greater extent than those of flour. T h e trend in the prices of bread was also similar, but not as marked as in flour. In the latter part of the forties tobacco also rose, but only to a slightly higher level than it had maintained in previous years. T h e greatest change occurred when the prices of tobacco rose from 1764 to 1 7 7 1 . B y 1771 tobacco was selling for nearly twice as much as it had during most of the thirties and forties. T h e price of corn was relatively lower than that of wheat from 1720 to 1740 and even tended to decline slightly. W h e n wheat rose to higher levels in the latter part of the forties corn also moved up, although not as rapidly nor to as high a level. Thereafter the prices of corn were not even as well maintained as those of wheat and in 1757 and 1758 they dropped as low as they had been in some years before the rise. T h e result is that the shift to a permanently higher level in the prices of corn did not actually come until the rise from 1758 to 1759. In the remaining years of the period the fluctuations

CONCLUSIONS

345

in the corn prices centered around a less marked rising tendency at a lower level than did those of wheat. T h i s examination of the seasonal and cyclical fluctuations and the long-time trend in prices gives an indication of the variety of price changes which occurred in the colony. Some commodities had definite seasonal movements, others did not; some underwent pronounced swings in prices during the entire period, some were affected primarily in years when wars were in progress, others gave practically no indication of cyclical movements. E v e n in those commodities which had such variations, there was diversity in the timing and extent of the movements. A s to the long-time directions in which prices were moving, there were likewise disparities in direction, time, and extent of change. In order to examine variations in the values of commodities free, at least in part, from currency problems, and unhampered by the use of a fixed base period, we have computed the number of units of the various commodities which could be purchased for a hundredweight of flour. F r o m a general point of view, these comparisons, which are given in detail in the discussion of specific commodities, are significant because they bring out the time and the manner in which the price movements in other commodities differed from those of flour. Our composite index of wholesale prices summarizes the varying movements and shows the recurring swings in prices and the change to a higher level in the latter part of the Colonial period. M a n y of the times in which, according to this index, prices were high or low in Philadelphia correspond with well-known similar periods of prosperity and depression in other areas. In order to abbreviate the monthly indices, presented in Chapter X I I , by eliminating the seasonal and random changes, the annual figures are shown on Chart X X X I I I . I n this compact form, the general upward trend of wholesale prices in Philadelphia stands out clearly. Further analysis shows that, like flour, the general indices were affected by different rates of change in various periods. F o r example, the arithmetic index of 20 commodities followed a slight upward trend of less than .2 of a point a year f r o m 1 7 2 0 to 1 7 4 4 . I n the period f r o m 1 7 4 4 to 1 7 6 4 the trend mounted 1 . 6 points a

346

PRICES

IN COLONIAL

PENNSYLVANIA

year, but, if the exaggerated influence of 1 7 4 4 to 1746 is removed, a better fit is secured by a trend increasing .5 points a year from 1 7 4 7 to 1764. A higher rate of increase of 1.4 points a year characterized the index in the years from 1 7 6 4 to 1 7 7 4 . The strength of the upward pull in prices, especially in the latter

CHART

XXXIII—ARITHMETIC

AND G E O M E T R I C

INDICES

A N N U A L W H O L E S A L E PRICES IN P H I L A D E L P H I A , (Base—Monthly Average,

OF

AVERAGE

1720-1774

1741-1745)

part of the Colonial period, is most clearly shown by a five-year moving average. This computation reveals that the average of every five-year interval beginning in 1745 or later is higher than any before 1 7 4 5 , and that the average of each interval beginning in 1 7 5 7 or later is higher than any which started before 1 7 5 7 . T h e average of every five-year interval in the arithmetic index of 20 commodities

CONCLUSIONS

347

from 1 7 2 0 to 1 7 4 4 inclusive falls between 87.9 and 106.0. T h e averages from 1 7 4 5 to 1 7 5 6 inclusive fall between 1 0 8 . 1 and 1 2 0 . 4 and those from 1 7 5 7 to 1 7 7 0 inclusive, between 1 2 2 . 2 and 1 3 7 . 6 . Thus in each succeeding period the lowest five-year average exceeded the previous maximum. T h e significance of the varying trends in the prices of commodities is one of the most challenging of the numerous questions suggested by the study of prices and factors affecting prices in the Colonial era. W h y , when most commodities were rising in price, did pitch, tar, salt, and rice fail to share in any part of this increase and why did turpentine and loaf sugar actually decline: T h e upward trend in the prices of grains especially is in contrast to the constant level of grains from 1 8 0 0 to i 8 6 0 . W e have attempted to give that part of the answer which can be found in sterling exchange. T h e rates paid in Philadelphia for bills of exchange on London show that the greater part of the depreciation in Pennsylvania currency occurred before 1 7 3 9 . T h e fluctuations in the subsequent years sometimes increased the value of Pennsylvania currency and at other times, especially around 1 7 4 6 and 1 7 6 1 , temporarily depreciated it further. In other years, also, the variations were severe enough to keep continuously before the merchants the difference in the value of money between the time of contracting and of paying debts in England. T h e effect of currency issues on prices and exchange rates was not as marked as the increases which accompanied remissions or changes in the conditions under which bills of credit had been authorized by the Provincial Assembly. It is evident that the major part of the explanation of the differences in trends of prices involves studies in many unexplored fields. Changes in the amount and terms of credit, increases in the velocity of circulation of money, changes in the prices of gold and silver and the ratio between them, and the influence of such monetary factors on prices have not been stated. N o appraisal has been made of changes of technique in industry and commerce which would bring about reductions in the cost of producing and transporting goods. Little attention has been given to the rapidly increasing population of Pennsylvania with its complex effect on prices through the enlargement of the domestic market and the diversification and development of local

348

PRICES

IN COLONIAL

PENNSYLVANIA

industries. During the period, doubtless, changes in the value of agricultural lands and in the intensive and extensive margins of cultivation influenced and were influenced by prices. This record of prices serves to explain part of the background of economic, social, and political events primarily in Pennsylvania and to a lesser extent in other mainland colonies, in the West Indies, and in Great Britain. This is not its sole use. A continuous record of prices to 1 8 6 0 will serve to link the experience of early years with developments which came afterwards. It is out of the contrast of price movements in the two periods that the process by which changes in economic life were brought about can be explained.

APPENDIX

M E T H O D

T h e methods used in the analysis of the movements of prices f r o m 1 7 2 0 to 1 7 7 5 were adequately explained before the results of the specific measurements were given. W e have, however, relegated to the appendix the detailed discussion of how the individual series of prices were obtained and how they were combined into the various indices. CONSTRUCTION

OF T H E

SERIES OF P R I C E S OF E A C H

COMMODITY

T h e chief source of the original prices of the commodities was the prices current as published in the Philadelphia w e e k l y newspapers. T h e various Philadelphia papers from which these lists were copied and the years in which prices were available are shown in the Biblio g r a p h y , page 434. T h e complete list of prices was used whenever it was printed and occasional corrections made for typographical errors. W h e n the files of the Historical Society of Pennsylvania indicated a gap of even one issue, a search was made in other libraries in order to make certain that all possible prices had been collected. T w o steps were involved in converting these quotations into average monthly prices. Since the prices quoted were the range for the week and in addition were often for a range of qualities, it was usually necessary to compute the average prices of each commodity w h e n ever a quotation was available. T h e s e were combined into an average m o n t h l y price by computing the arithmetic mean of all the price quotations in any month. Sometimes only one paper carried the prices and may have published them only once during the month. A t other times several newspapers would quote prices more frequentl y d u r i n g the month. F o r this reason the average monthly prices may be based on from one to ten quotations. I n handling the period before September 1 7 5 2 , when the calendar was corrected and the Gregorian calendar adopted in E n g l a n d and the British colonies, no allowance was made for the error which had existed. W e did, however, follow the modern practice of beginning 3 J1

352

PRICES

IN COLONIAL

PENNSYLVANIA

the years in January instead of in March. As a result, January 1 7 4 3 follows December 1 7 4 2 , although in the old style it would have been called the eleventh month of 1 7 4 2 . T h e same method of adjusting dates was followed in relating merchants' accounts and correspondence to newspaper quotations. A f t e r the average monthly prices for each commodity had been determined, there still remained many months in which there were no quotations. T h e complexity of the problem of procuring satisfactory data to complete the series arose out of the varied reasons which had prevented the newspapers from publishing the prices current. T h e availability of data to supplement those from the newspapers has a direct relation to the volume and continuity of trade in each specific commodity. F o r periods when the prices current, either in whole or in part, were not published in the newspapers because of a lack of space, adequate quotations are likely to be found in the records of contemporary merchants. T h e search becomes more difficult and often yields no results, however, when the gap in the newspaper accounts was caused by a partial or complete cessation of trade either from the port being closed by ice in the winter or from embargoes either on Philadelphia or on a port with which a considerable amount of shipping was usually engaged. In all cases, however, the problems involved in locating and selecting price quotations comparable with those from the newspapers can not be overestimated. T h e type of data used to supplement the newspaper list had to be based on an understanding of the sources of the newspaper data. These were summaries of transactions originating out of the shipping activities of the merchants of the port. Captains whose ships entered from foreign ports were expected to post all general information, price lists, and newspapers, which they collected at their ports of call. Merchants engaged in assembling a cargo posted at the Coffee House the prices they were willing to pay to farmers and others who could furnish them with supplies, just as the prices paid by purchasers of goods from incoming cargoes were recorded. T h e newspaper summary of prices gave the range of prices within each week for transactions in important commodities. These summaries were sent in the letters of merchants to correspondents in other areas and copies of the papers were supplied to captains.

APPENDIX

353

In supplementing newspaper prices our procedure was based on using as continuously as possible the records of well-known merchants who were engaged in importing and exporting. These shippers quoted, in their letters, prices which, derived from dealings at the Coffee Houses, correspond exactly with the reports in the newspapers. Their comparability is justified by the nature of the prices and has been proved by checking the prices current given in the merchants' letters with those published in the newspapers. It must be realized, however, that the total volume of correspondence, especially in the early part of the Colonial period, was not large and that only part of it has been preserved. Added to this difficulty is the fact that correspondence was especially scarce when natural or legal restrictions interfered with trade. It was more difficult to use the account books, such as ledgers, journals, day books, receipt books, and waste books, kept by the same merchants. In selecting prices from these sources, one has to keep in mind the type of quotation that would be comparable to the prices current. T h e same men who were engaged in the import and export trade also operated stores in which purely retail transactions were dominant. F o r this reason, every entry had to be scrutinized to determine whether or not the price was affected by 1) 2) 3) 4) 5)

the the the the the

size of the transaction inclusion of a charge for the container inclusion of a charge for porterage length of the credit period quality of the merchandise.

As it was not always possible to be certain that any price was free from every defect, it was necessary to depend upon an average of prices to minimize the errors that were likely to be found. Wherever possible, at least 1 1 quotations were taken in a month. Where a number of prices could be obtained, the arithmetic mean of the unit prices weighted by the quantities sold at each price was computed. T h e use of several quotations for different days in the month adds to the comparability of prices from account book records to those of the prices current. As a test of the adequacy of the data from merchants' records, we overlapped the series. When we were satisfied that

354

PRICES

IN COLONIAL

PENNSYLVANIA

a particular merchant's accounts were adequate, we used those prices as consistently as possible. Because we felt that this material was as representative of wholesale prices in Philadelphia as the figures quoted in the prices current, we have not distinguished between these two sources in Tables i to 9 of the Appendix (pp. 360-421) where the average monthly prices of each commodity are quoted. T h e sources of these supplementary prices are listed in the Bibliography on pages 434-436 and in footnotes to Table 1. Even after considerable work, there were some months in the Colonial period for which we could find no record of prices for certain commodities. For these months we were forced to estimate prices by several methods. First, reference was made to the original collection of newspaper and letter-book prices and if any quotations had been given in the early days of the month following, such prices were carried backward and allowed to stand as the average price of the previous month. In the same way, a quotation near the close of one month would be used as representative of prices in the following month. A t other times when the gap was wider, the last quotation in the month before the gap and the first quotation in the month after the gap were averaged and that average used as the price of the intervening month. W h e n the gap extended over more than a month it was often found that the last quotation before the gap and the first quotation after the gap were identical. In such cases this price was repeated in the intervening months. If there had been a change in level an attempt was made to fit the prices of one series on those of related series, or on the retail prices of the same commodity. As an extreme measure, it was sometimes necessary to scale in, arbitrarily, the missing prices by making an equal amount of change in each month. T h i s method was not used if the gap was more than six months, except in five cases. In spite of all these attempts there were certain months in 1756, 1 7 5 7 , and 1758 where so many series were blank that no attempt was made to estimate prices. In the tables of average monthly prices all of these estimations are indicated by italics except the quotations carried from the previous or following month. T h e final averages of prices which were computed on each series

APPENDIX

355

were the annual prices which are published in Table 10 of the Appendix (pp. 422-424). T h e procedure used was to take the arithmetic mean of the 12 average monthly prices in each year. W h e n any monthly price was missing the available data were averaged quarterly and the annual figure derived from the quarterly averages. T h i s method minimized the distortion which would have been introduced by merely averaging the available prices regardless of their concentration in only part of each year. In some cases it was necessary to estimate a quarterly price by averaging the last monthly quotation in the previous quarter with the first monthly quotation in the following quarter. N o annual price was estimated completely, but some annual relatives had to be obtained by averaging the estimated relatives for 12 months. C O N S T R U C T I O N OF T H E T O T A L INDICES

Four indices of wholesale prices were constructed. T h e first three are unweighted arithmetic averages of 12, 20, and 22 commodities; the final index is a geometric mean of 20 commodities. T h e first step was the computation of the monthly relatives of prices of each series, using the monthly average of the five years from 1741 to 1745 as the base. These years were selected because prices were more consecutively available from the newspapers at this time than at any other period and because an inspection of the original prices showed that most commodities completed an entire swing of prices in that period. T h e analysis indicates that 1741 to 1745 was a satisfactory base period for nearly all of the commodities. It was also the nearest possible approach to the base period, 1721 to 1745, selected by the International Scientific Committee on Price History. An inspection of the various series of prices which had been collected showed that for 29 series adequate prices were available for inclusion in an index. Nevertheless, many of them were not continuously available from 1720 to 1775. Some of these problems were solved when the monthly relatives of the various grades of a commodity were averaged to form an index of prices for that commodity. For example, only one of the four series of bread prices was complete from 1720 to 1 7 7 5 , but when the monthly relatives were averaged we had a continuous index of prices of bread representative of the

356

PRICES

IN COLONIAL

PENNSYLVANIA

kinds being sold in the market. T h e series were inspected to make certain that the addition or elimination of one series of relatives did not distort the index for that commodity. Similarly, for sugar it was possible to combine the monthly relatives of London and Pennsylvania loaf sugar and then to combine this average with the relatives of the prices of muscovado sugar. In like manner, the prices of New England rum were introduced into the general index by using only the relative of West India rum in the early part of the Colonial period and averaging the monthly relatives of N e w England and West India rum when both series were quoted in the Philadelphia market. T h e relative prices of different grades of salt and sizes of staves were also added in order to form single series. T h e purposes of this averaging of the grades of the different commodities was the elimination from the general index of any chance weighting by preventing bread, rum, salt, sugar, and staves from having, individually, more weight than flour or wheat, of which only one grade was quoted. B y solving, as far as was possible, the problems of each individual series, we knew what effect was being introduced into the general index. T h e final work on the commodities and grades of commodities left 1 2 series with complete monthly records from 1 7 2 0 to 1 7 7 5 and 8 more series with such continuous data that they could be included if certain gaps could be filled. T h e extent of the problem, which was simplified by the fact that sometimes scattered prices were available to indicate the level at which the commodity was selling, can be seen from the following list of the 8 commodities and the dates for which prices are lacking: Cotton Gunpowder

Indigo

Rice

— J a n . 1 7 2 0 to Dec. 1 7 3 0 inclusive April 1 7 6 4 to Dec. 1 7 6 6 inclusive — J a n . 1 7 2 5 to Aug. 1 7 3 4 inclusive—scattered prices available Oct. 1 7 6 3 to Sept. 1 7 7 5 inclusive—scattered prices available — J a n . 1 7 2 0 to Dec. 1 7 3 0 inclusive Oct. 1 7 6 3 to Sept. 1 7 7 5 inclusive—scattered prices available —April 1 7 2 6 to Jan. 1 7 2 8 inclusive

APPENDIX

Staves Tobacco

Turpentine

357

J u n e to Dec. 1 7 3 0 inclusive Oct. 1 7 3 3 to Aug. 1 7 3 4 inclusive J u n e 1 7 5 8 to Feb. 1 7 5 9 inclusive — J a n . 1 7 2 4 to Sept. 1 7 3 4 inclusive — J a n . 1 7 2 3 to April 1 7 2 4 inclusive J a n . to J u n e 1 7 3 0 inclusive Oct. 1 7 3 3 to A u g . 1 7 3 4 inclusive Oct. 1 7 7 2 to Sept. 1 7 7 5 inclusive — J a n . 1 7 2 3 to J a n . 1 7 2 6 inclusive

J a n . 1 7 2 7 to Feb. 1 7 3 1 inclusive—scattered prices available Wine, M a d e i r a — A u g . 1 7 2 3 to M a r . 1 7 2 4 inclusive J u l y 1 7 2 4 to Dec. 1 7 3 2 inclusive Feb. to M a y 1 7 3 3 inclusive N o v . 1 7 3 3 to J u l y 1 7 3 4 inclusive F o r the bulk of the period, the arithmetic index of the relatives of the 20 commodities was computed without any difficulty. When one or more of the 8 commodities were incomplete, it was necessary to adjust the average of the other 1 2 to 1 9 series in order to eliminate the effect of the incompleteness of the data. This was accomplished by measuring what the effect would have been in the 1 2 months before and the 1 2 months after each long gap if the series had been missing there also. T h e known ratios between the complete and the incomplete index before and after the gap gave a basis for adjusting proportionately the incomplete index. W h e n the data were missing at the beginning or end of the period, only the ratio after or before the gap could, of course, be used. Wherever possible the known level of the incomplete series was introduced by adjusting to the annual price derived from scattered prices, but the month-to-month fluctuations of the complete series were preserved. Series by series, therefore, the unweighted arithmetic average of 20 commodities was constructed. W e believe that we were able to compute in this manner an accurate description of the general average of wholesale prices in Philadelphia. W e do not assume, however, that by this adjustment we could actually estimate what the prices of the incomplete series had

358

PRICES

IN COLONIAL

PENNSYLVANIA

been. Nevertheless it is possible to compute what the relative of the missing data should have been in order to produce the general index. These relatives, which were derived for all gaps from 1731 to 1775 in order to have a basis for computing a geometric average of prices, were never converted into actual prices. T h e unweighted geometric average of the relatives of the 20 commodities was computed in order to make allowance for the dispersion of prices. Although the geometric index could have been constructed by adjustments similar to those made on the arithmetic index, the relatively minor amount of such estimations from 1731 to 1775 made the easier solution of using the derived relatives for the incomplete series more practicable. T h e use of this method in the years before 1731 would have required a considerable number of additional computations. Since both the arithmetic and geometric indices gave nearly identical results (see Chapter X I I ) , it was not deemed necessary to compute the geometric index for the period 1720 to 1730. A median of the monthly relatives was also computed, but it was discarded since its fluctuations were too erratic. T h e unweighted arithmetic average of 12 commodities was constructed in order to give an index free from all of the estimating for periods of more than a few months at a time. T h e arithmetic average of the 22 commodities was computed to include the prices of bar and pig iron for the short period after 1767 when they were completely available.

TABLES

360

PRICES

IN COLONIAL TABLE

PENNSYLVANIA 1

A V E R A G E M O N T H L Y W H O L E S A L E P R I C E S OF IN

COMMODITIES

PHILADELPHIA

1720 Commodity Corn Wheat Tobacco Rice Bread brown middling ship white Flour Beef Pork Salt coarse fine Molasses Sugar loaf, London loaf, Pennfl. Muscovado Rum New England West India Wine, Madeira

Jan.

Feb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

Dec.

s-bu s-bu s-cwt s-cwt

1.58 3.16 14.0 16.0

1.62 3.19 14.0 16.0

1.75 3.13 14.0 16.0

1.75 3.1 14.0 16.0

1.75 3.0 14.0 16.0

1.75 3.13 13.5 16.0

1.75 3.13 13.5 17.0

1.75 3.0 13.5 18.0

1.75 3.0 13.0 18.0

1.75 3.02 14.0 18.0

1.75 3.04 14.0 18.0

1.75 3.04 14.0 18.0

s-cwt s-cwt s-cwt s-cwt s-cwt s-bbl s-bbl

11.88 14.13

11.5 14.5

11.38 14.38

11.0 13.75

11.0 13.0

11.0 13.0

11.0 13.0

11.0 13.0

11.0 13.0

11.0 13.0

11.0 13.0

10.0 12.0

18.0 9.5 30.0 45.0

17.0 8.75 30.0 45.0

16.0 8.75 30.0 45.0

16.0 9.5 30.0 47.5

16.0 9.5 30.0 47.S

16.0 9.2S 30.0 47.5

16.0 9.42 30.0 47.5

16.0 9.5 30.0 47.5

16.0 9.5 30.0 47.5

15.0 8.25 30.0 47.5

2.88 1.44

2.0 1.38

2.0 1.29

2.0 1.29

Unit

s-bu s-bu s-g&l

18.0 18.0 9.69 9.5 30.0 30.0 45.0 45.0

3.0 1.49

2.88 1.46

2.5 1.46

2.0 1.38

2.0 1.29

2.13 1.21

2.0 1.21

2.33 1.21

s-lb s-lb s-cwt

41.25 37.5

37.5

37.5

37.5

37.5

37.5

32.0

32.0

32.0

32.0

32.0

s-gal s-gal £-pipe

4.11 18.0

3.5 18.0

3.88 18.0

3.06 18.0

2.08 18.0

2.11 17.88

2.25 18.0

2.25 18.0

2.22 18.0

2.21 18.0

2.21 18.0

2.33 18.0

22.5 2.25 3.0 16.5 10.0 8.0

22.5 22.5 22.5 22.5 22.5 22.5 2.25 2.25 2.25 2.25 2.25 2.25 3.0 3.0 3.0 3.0 3.0 3.0 16.5 16.5 16.5 16.5 13.5 12.5 10.0 10.0 10.0 10.0 10.0 10.0 8.0 8.0 8.0 8.0 8.0 8.0

22.5 2.25 3.0 12.5 10.0 8.0

22.5 2.25 3.0 12.5 10.0 8.0

22.5 22.5 22.5 2.25 2.25 2.25 3.0 3.0 3.0 12.5 11.5 12.5 10.0 8.0 10.0 8.0 8.0 8.0

7.5

7.5

Indigo

s-lb

Staves barTel hogshead pipe Pitch Tar Turpentine

s-M £-M £-M s-bbl s-bbl s-cwt

Cotton

s-lb

Gunpowder

£-bbI

7.5

7.75

7.75

7.5

7.5

7.5

7.5

7.5

Figures ¡0 italics are estimated. For method see page 351. Sources—The A merican Weekly Mercury: Jan.-Dec. The hundredweight (cwt) equals 112 pounds except of tobacco of which it equals 100 pounds.

7.5

7.5

APPENDIX

361

TABLE 1 ( C o n t i n u e d ) A V E R A G E M O N T H L Y W H O L E S A L E P R I C E S OF COMMODITIES IN

PHILADELPHIA

1721 Commodity Com Wheat Tobacco Rice Bread brown middling ship white Flour Beef Pork Salt coarse fine Molasses Sugar loaf, London loaf, Penna. Muscovado Rum New England West India Wine, Madeira

Unit s-bu s-bu s-ewt s-ewt

s-ewt s-ewt s-ewt s-ewt s-ewt s-bbl s-bbl s-bu s-bu s-gal

Jan. 1 83 3 0

Feb.

Mar.

17 5

2 0 1 96 3 13 3 0 10.0 10 0 17 5 16 75

11 0 13 0

11 0 13 0

10.0

15 8 30 45

10 75 13 0

5 15 0 15 0 25 8 75 8 5 0 30 0 30.0 0 45 0 45 0

2 33 5

25

2 33 2 5 1 25

2 0 2 5 1 25

s-lb s-lb s-ewt

35 0

s-gal s-gal i-pipe

2 42 2 42 2 42 20.0 20.0 20 0

Indigo

s-lb

Staves barrel hogshead pipe Pitch Tar Turpentine

s-M £-M £-M s-bbl s-bbl s-ewt

Cotton

s-lb

Gunpowder

£-bbl

22

J

2 25 3 0

12 8

0 0

S 0

s.o

35.0

35 0

22 5 22 5 2 25 2 25 3 0 3 0 12.0 12 0 8 0 8 0 8 0 8 0

8 0

8 0

Apr. 1 92 2 SS 10 0 16 0

10 5 13 0

15 0 8 75 30 0 45 0 1 67

2 25 25

35 0

2.42 20.0

22 5 2.25 0 12 0

i

0 0

0

May 1 2 9 16

92 92 5 0

10 5 13 0 15 8 30 45

June 1 3 9 14

63 04 25 5

10 5 13 0

0 IS 0 25 8 5 0 30 0 0 45 0

1 25 1 5 1 27

1 17 1 83 1 25

July 1 3 9 14

54 04 25 5

10 5 13 0 15 8 30 45

Aug. 1 3 1C 14

54 04 5 5

Sept. 1 3 10 14

54 04 5 5

Oct. 1.63 3.04 10.5 14.5

10.5 13 0

10 5 13 0

10.5

0 15 0 75 9 5 0 30.0 0 45 0

15 0 9 5 30.0 45 0

15.0

1 08

1 17

1 17

1 75

1 67

1 SS

1 25

1 04

1 04

13.0

9.5 30.0 45.0 1.17

1.5 1.04

35 0

32 5

32 5

32 5

32 5

32.5

2 04 18.0

2 08 18 0

2 21 18.0

2 29 18.0

2 29 18 0

18.0

22 2 3 12 8 8

5 22 5 22 5 22 5 22 5 25 2 25 2 25 2 25 2 25 0 3 0 3 0 3 0 3 0 0 12 0 12 0 11 0 11 0 0 8.0 8 0 8 0 8 0 0 8 0 8 .5 8 0 8 5

8 0

8 0

8 0

8 .0

8 .0

2.29

22.5 2.25 3.0 11.0 S.O 8.5

8.0

Nov.

Dec.

1.71 3.21 10.5 14.5

1.88 3.21 10.5 14.5

10.5 13.0

10.5 13.0

15.0 15.0 8.88 8.88 30.0 30.0 45.0 45.0 1.08 1.33 1.04

1.08 1.33 1.04

30.0

30.0

2.42 20.5

2.42 20. S

22.5 22.5 2.25 2.25 3.0 3.0 13.5 13.5 10.0 10.0 9.5 9.5

9.0

9.0

Sources—Mercury: Jan.-July, Sept., Nov.; ALLEN: Apr.-June, Oct.; T. COATES: April, May, Nov., Dec.; DICKINSON: May. A full list of the papers and manuscripts will be found in the Bibliography, pp. 434-436.

362

PRICES IN COLONIAL TABLE 1

PENNSYLVANIA

(Continued)

A V E R A G E M O N T H L Y W H O L E S A L E P R I C E S OF COMMODITIES IN P H I L A D E L P H I A

1722 Commodity Con Wheat Tobacco Rice Bread brown middling ship white Flour Beef Pork Salt coarse fine Molassea Sugar loaf, London loaf, Penna. Muacavado Rum New England West India Wine, Madeira

Unit

Jan.

Feb.

s-bu s-bu s-ewt s-ewt

1.71 3.33 9.5 14.5

s-ewt s-ewt s-ewt s-ewt s-ewt s-bbl s-bbl s-bu s-bu s-gal s-lb s-lb s-ewt

Oct.

Nov.

1.71 1.71 1.71 1.71 1.75 1.75 1.75 1.75 3.33 2.92 2.92 2.92 3.04 3.04 3.04 2.86 9.5 9.5 10.5 10.5 10.5 10.5 10.5 10.S 14.5 14.5 14.5 14.5 13.5 13.5 13.5 13.5

1.75 2.86 10.5 13.5

1.75 1.75 2.67 2.67 10.5 10.5 13.5 13.5

10. 5 13.0

10.5 13.0

11.5 12.5

11.5 12.5

15.0 8.88 30.0 45.0

15.0 15.0 15.0 15.0 15.0 15.0 15.0 15.0 8.88 8.88 8.75 8.75 9.25 9.75 9.75 8.94 30.0 30.0 30.0 31.0 31.0 31.0 31.0 31.0 45.0 45.0 45.0 45.0 45.0 45.0 45.0 45.0

15.0 8.94 31.0 45.0

15.0 15.0 8.13 8.25 31.0 31.0 45.0 45.0

1.0 1.33

1.29

30.0

s-gal 2.42 s-gal ¿-pipe 20.5

Indigo

s-lb

Stave) barrel hogshead pipe Pitch Tar Turpentine

s-M £-M £-M s-bbl s-bbl s-ewt

Cotton

s-lb

Gunpowder

£-bbl

Mar.

22.5 2.25 3.0 13.5 10.0 9.5

1.75

1.0 1.33 1.29

30.0

10.5 13.0

1.0 1.33 1.29

30.0

Apr.

10.5 12.0

1.0 1.33 1.29

30.0

May

10.5 12.0

0.92 1.33 1.29

30.0

June

10.5 12.5

0.92 1.33 1.21

30.0

July

11.5 12.5

1.25 1.21 1.21

30.0

2.42 2.42 2.29 2.29 2.29 3.17 20.5 20.5 20.5 20.5 20.5 20.5

Aug.

11.5 12.5

1.25 1.21 1.21

Sept.

11.5 12.5

8.25

8.0

7.75

7.75

7.75

11.5 12.5

1.58 2.0 1.21

2.67

1.42 2.45

1.21

1.21

33.75

33.75

37.5

3.17 3.53 20.5 20.5

3.53 20.5

3.88 3.88 20.5 20.5

22.5 2.25 3.0 13.5 10.5 9.5

22.5 22.5 2.25 2.25 3.0 3.0 13.5 13.5 10.5 10.5 9.5 9.5

30.0

1.42

22.5 22.5 22.5 22.5 22.5 22.5 22.5 22.5 2.25 2.25 2.25 2.25 2.25 2.25 2.25 2.3 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 13.5 13.5 13.5 13.5 13.5 13.5 13.5 13.5 10.5 10.5 10.0 10.0 10.0 10.0 10.0 10.5 9.5 9.5 9.5 9.5 9.5 9.5 9.5 9.5

8.5

1.58

Dec.

7.5

7.5

7.5

2.22

1.21

7.75

37.5

7.75

Sources—Mercury: Feb.-Aug. Oct., Dec.; ALIEN: Sept., Dec.; BOHSALL: May-Sept., Nov. Dec.; NOMIS: Aug.

APPENDIX

363

TABLE 1 ( C o n t i n u e d ) AVERAGE

MONTHLY WHOLESALE IN

P R I C E S OF

COMMODITIES

PHILADELPHIA

1723 Commodity Com Wheat Tobacco Rice Bread brown middling ship white Flour Beef Pork Salt coarse fine Molasses Sugar loaf, London loaf, Penna. Muscovado Rum New England West India Wine,Madeira Indigo Staves barrel hogshead pipe Pitch Tar Turpentine

Unit

Jan.

s-bu s-bu s-ewt s-ewt

1.75 2.67

s-ewt s-ewt s-ewt sewt s-ewt s-bbl s-bbl s-bu s-bu s-gal

Feb. 1.75 2.67

Mar. 1.75 2.67

Apr. 1.75 2.67

May 1.75 2.67

June 2.0 2.67

July 1.75 2.79

Aug. 1.75 2.79

Sept. 2.0 2 . 79

Oct.

Nov.

2.0 2.79

2.04 2.79

Dec. 2.08 2.79

13.5

13.9

14.3

14.7

15.1

15.5

15.0

14.5

14.0

13.5

13.0

12.5

11.5 12.5

10.0 12.0

10.0 12.0

9.5 11.5

9.5 11.5

9.5 11.5

9.5 11.5

9.5 11.S

9.5 11.5

9.5 11.5

9.5 11.5

9.5 11.5

15.0 8.38 31.0 45.0

15.0 8.38 31.0 42.5

15.0 S.3S 31.0 42.5

15.0 8.25 32.5 42.5

15.0 9.0 32.5 42.5

15.0 8.75 31.0 41.25

15.0 9.04 31.0 38.25

15.0 15.0 15.0 9.04 9.07 9.1 30.17 29.33 31.0 3S.25 3S.25 31.25

15.0 9.13 28.5 3S.25

15.0 9.13 28.0 38.25

1.58 3.0 1.21

1.58 2.56 1.21

1.58 2.11 1.21

1.58 1.67 1.25

1.58 1.58 1.25

1.58 1.58 1.17

3.0 4.0 1.55

3.0 4.0 1.67

1.58 1 63 1.25

2.05 3.04 1.17

s-lb s-Ib sewt

37.5

37.5

37.5

37.5

37.5

37.5

37.5

s-gal s-gal £-pipe

3.88 20.5

3.08 20.5

3.OS 20.5

2.08 20.5

2.0 20.5

2.08 20.5

2.08 20.5

2.67

22.5 2.25 3.0 13.5 10.5

22.5 2.25 3.0 13.5 10.5

22.5 2.25 3.0 13.5 10.5

22.5 2.25 3.0 13.5 10.5

22.5 2.25 3.0 13.5 10.5

22.5 2.25 3.0 12.0 10.5

22.5 2.25 3.0 12.0 10.5

22.5 2.25 3.0 12.0 10.5

7.75

7.75

7.75

7.75

7.75

7.75

7.75

37.5

2.53 4.5 1.30

3.0 4.0 1.42

36.67 35. S3 35.0

2.21

2.67

35.0

2.67

2.33

22.5 22.5 22.5 2.25 2.25 2.25 3.0 3.0 3.0 12.0 12.0 12.0 11.67 12. S3 14.0

22.5 2.25 3.0 12.0 14.0

s-lb

s-M £-M s-bbl s-bbl s-ewt

Cotton

s-lb

Gunpowder

£-bbl

So urea—Mercury: Feb., Apr., June, J u l y , Dec.; J u l y - D e c . ; T . C o a t e s : J u l y - S e p t . , Nov., Dec.

Allen:

7.5

J a n . , Apr., Sept.-Dec.;

7.5

7.5

Bonsall: J a n . ,

7.5

7.75

Mar., M » y ,

364

PRICES IN COLONIAL TABLE 1

PENNSYLVANIA

{Continued)

A V E R A G E M O N T H L Y W H O L E S A L E P R I C E S OF COMMODITIES IN P H I L A D E L P H I A

1724 Commodity Corn Wheat Tobacco Rice Bread brown middling ship white Flour Beef Pork Salt coarse fine Molasses Sugar loaf,London loaf, Penna. Muscovado Rum New England West India Wine, Madeira

Unit s-bu s-bu s-cwt s-cwt s-cwt s-cwt s-cwt s-cwt s-cwt s-bbl s-bbl s-bu s-bu s-gal s-lb s-lb s-cwt s-gal s-gal £-pipe

Indigo

s-lb

Staves barrel hogshead pipe Pitch Tar Turpentine

s-M £-M £-M s-bbl s-bbl s-cwt

Cotton

s-lb

Gunpowder

£-bbl

Jan. 2.08 2.79 12.75 9.7 11.5 15.0 9.13 34.0

39.0 3.0 3.61 1.67

Feb.

June

July

Aug.

Sept.

¡3.25

13.5

9.9

10.1 11.75

10.3 12.0

10.5 12.0

10.13 10.13 10.13 10.13 12.0 12.0 12.0 12.0

15.0

15.0 10.5 25.5 41.25

15.0 10.5 25.5 35.25

15.0 11.13 30.0 35.25

15.0 11.38 30.0 35.25

15.0 11.38 30.0 35.25

1.29 3.0 1.33

1.83 2.92 1.54

2.5 2.83 1.54

2.5 2.83 1.5

3.12

11.75 15.0 9.59

10.04

40.0

32.75

39.75

40.5

2.13 3.29

2.43

1.S6

3.21

2.82

1.29 2.42

1.67

1.65

1.62

3.0

2.9

7.5

May

13.0

2.0S

1.96

31.0

14.0

Apr.

2.13 2.13 2.13 2.13 2.13 3.29 3.29 3.42 3.42 3.42 17.25 18.25 20.25 20.25 27.75 13.5 15.75 15.5 15.5 15.5

2.0a

33.0

12.5

Mar.

29.0

2.79

2.5 3.5 1.33

30.0

2.13 3.42 27.75 15.5

10.13 12.0 15.0 11.5 30.0 32.5 2.5 3.5 1.33

Nov. 2.13 3.92 27.75 15.5 10.13 12.0

2.54 3.5 1.33

23.0

3.0 21.0

1.92 2.08 21.0 20.0

17.5

17.5

17.5

17.5

17.5

10.0

10.0

10.0

10.00

10.0

17.5 10.0

7.5

8.0

8.0

8.0

S.O

12.5

12.5

12.67

11.33

13.0 10.0

7.5

7.5

7.5

7.5

30.0 1.92

30.0 1.92

1.92

8.0

30.0

1.92

Dec. 2.13 3.92 27.75 15.5

10.13 12.0

15.0 15.0 12.25 12.5 30.0 30.0 32.75 32.75

27.0

20.0 2.0 2.5 13.0 10.0

30.0

15.0 11.5 30.0 32.5

Oct.

30.0 2.42

2.54 3.5 1.33

30.0

2.42

17.5 10.0

8.0

S o u r c e s — M e r c u r y : M a y - J u l y , S e p t . , N o v . ; ALLEN: A p r . ; BONSALL: J a n . , M a r . , J u n e - D e c . ; T . COATES: J a n -

Aug.;Nouis:Nov.

APPENDIX

365

TABLE 1 (Continued) A V E R A G E M O N T H L Y W H O L E S A L E P R I C E S OF COMMODITIES IN P H I L A D E L P H I A

1725 Commodity Corn Wheat Tobacco Rice Bread brown middling ship white Flour Beef Pork Salt coarse fine Molasses Sugar loaf, London loaf, Penna. Muscovado Rum New England West India Wine, Madeira

Unit

Jan.

Feb.

Mar.

Apr.

s-bu s-bu s-cwt s-cwt

2 3 27 15

s-cwt s-cwt s-cwt s-cwt s-cwt s-bbl s-bbl

10 13 10 13 10 13 10.13 12 0 12 0 12 0 12.0

s-bu s-bu s-gal s-lb s-lb s-cwt s-gal s-gal £-pipe

Indigo

s-lb

Staves barrel hogshead pipe Pitch Tar Turpentine

s-M £ M £-M s-bbl s-bbl s-cwt

Cotton

s-lb

Gunpowder

£-bbl

15 12 30 32

May

June

July

Aug.

Sept.

2.13 2.19 2.25 2.25 13 2 13 2 13 2.13 2 3.63 3.63 3.59 3.54 83 83 4 25 4.54 3 75 27 75 27 75 27.75 39.25 39.25 39.25 39.25 39 5 16 63 17 75 tS.it 20 0 20.0 21.0 22.0 22

0 25 0 75

2 54 3 5 1 46

15 12 30 J2

0 25 0 75

? 54 3 5 46

IS 12 30 32

0 15.0 25 11.5 0 30.0 5 32.5

2 54 3 5 1 46

2.54 3.5 1.46

10.13 10.19 10.25 12.0 13.0 13.0

16.0 11.5 32.0 42.5

16.0 17.0 18.0 18 0 11.25 11.69 12.13 12 13 30.0 30.0 30.0 30 0 42.5 42.5 42.5 42 5

30.0

30 0

30 0

30.0

30.0

3 0

3.0

3 0

2.5

2.5

17 5

17.5

17 5

17.5

17.5

2.5 2.5 1.46

30.0

2.79

17.5

2.5 2.5 1.46

2.5 2.5 1.46

33.75 37.5

2.S6

IS.5

2.92

Nov.

Dec.

2.0 25 2 0 2.0 54 4 0 4.0 4.0 25 35 33 31.42 27.5 22.0 0 22 0 22.0

10.13 12.0

2.5 2.5 1.42

Oct.

10 25 10 75 14 25 13 0

2 5 2 5 1 46

37 5

2 92

10.75 14.25

10. St 14.0

18.0 1S.0 18 0 12 75 12.75 13.0 30.0 30.0 30.0 43.44 42 5 42.5 2 5 2 5 1 46

37 5

2 92

2.5 2.5 1.46

37.5

2.92

2.5 2.5 1.5

37.5

2.92

19.5

19.5

19.5

19.5

19.5

9.0

9.0

9.0

9.0

9.0

Sources—Mercury: Jan., Mar., June, Aug., Nov.; ALLEN: Dec.; BONSALL: Jan.,Mar.-May, Aug., Dec.; NOERIS: Apr., May, Oct., Dec.

366

PRICES

IN

COLONIAL

PENNSYLVANIA

TABLE 1 (Continued) A V E R A G E M O N T H L Y W H O L E S A L E P R I C E S O F COMMODITIES IN P H I L A D E L P H I A

1726 Commodity Corn Wheat Tobacco Rice Bread brown middling ship white Flour Beef Pork Salt coarse fine Molasses Sugar loaf, London loaf, Penna. Muscovado Rum New England West India Wine, Madeira

Unit s-bu s-bu s-ewt s-ewt s-ewt s-ewt »-cwt s-ewt »-cwt s-bbl s-bbl

Jan. 2.04

Feb. 2.07

Mar. 2.11

10.1S 14.0

10.94 14.0

u.o 14.0

lt.O 12.5 30.0 44.3S

11.0 12.05 30.0 45.31

18.0 18.0 11.25 12.0 30.0 46.25 50.0

2.5 2.5 1.46

2.5

t-Ib s-lb s-ewt

36.25

35.0

35.0

2.96

3.0

3.0

19.5

19.5

14.0

14.0

Indigo

s-lb

Staves barrel hogshead pipe Pitch Tar Turpentine

s-M £-M £-M s-bbl s-bbl s-ewt

Cotton

s-lb

Gunpowder

£-bbl

2.14

3.75 4.04 3.75 4.0 24.5 21.5 18.5 17.19 22.0 22.0 22.0

s-bu s-bu s-gal

s-gal s-gal ¿-pipe

Apr.

19.5

2.33 1.42

2.5 2.5 1.54

U.O 14.0

2.0 1.52

37.5

May

June

July

Aug.

Dec. 2.0 3.5 14.0

11.5 14.0

14.0

11.0 14.0

11.0

14.5

11.5 14.25

11.5 14.0

18.0 13.0

18.0 13.0

1S.0 13.0

1S.0 13.13

18.0 18.0 13.13 12.5

50.0

50.0

5 0.0

49.0

49.0

11.25

11.25

11.5 14.19 14.0

1S.0

12.0

11.0 12.5

50.0

50.0

1.5 1.5

1.5 1.5

40.0

38.0

2.21

1.54 1.5

40.0

1.49 1.25

37.5

2.17

4.22

1.5 1.28

38.0

3.0

2.97

2.87

3.08

2.95

19.5

19.39

19.29

19.IS

19.07

IS.96

14.0

14.0

14.0

14.0

9.0

9.0

3.75

Nov.

16.0

17.2t

2.25 3.92 16.0

14.0

Oct.

2.0 3.5 14.0

2.25 3.92 3.75 16.67 16.33

2.IS

4.0

Sept.

8.83

15.0 16.67 13.81 14.0

Sources—Hercury: Jan.-Mar., June-Aug., Nov.; Allen: Apr., May, Oct.; Bonsall: Jan.-Mar., May, July-Dec.; Denbah: Apr.; N o u i s : Feb., Apr-Dec.

P.

2.OS

3.52

1.39 1.33

35.0

1.5 1.54

32.0

49.0 2.5 1.54

32.0

3.75

3.75

1S.S6 18.75 IS. 33 20.0 14.0 14.0

18.75 20.0 14.0

3.25

9.0

Batntoh: Apr.,

9.0

9.0

July, Aug.;

APPENDIX

367

TABLE 1 ( C o n t i n u e d ) A V E R A G E M O N T H L Y W H O L E S A L E P R I C E S OF COMMODITIES IN P H I L A D E L P H I A

1727 Commodity Com Wheat Tobacco Rice Bread brown middling ship white Flour Beef Pork Salt coarse fine Molasse* Sugar loaf, London loaf, Penna. Muscovado Rum New England West India Wine, Madeira

July

Aug.

2.0 1.92 2.0 2.0 3.33 3.58 3.46 3.35 17.5 19.08 18.25 20.0

2.03

2.03

3.23

3.12

Unit

Jan.

Feb.

Mar.

s-bu s-bu s-cwt s-cwt

2.0 3.5 14.0

2.0 3.41

2.0

15.17

16.33

s-cwt t cwt s-cwt s-cwt s-cwt s-bbl s-bbl

11.5 14.0

12.12 11.93 13.0 13.37

11.95 13.25

11.97 13.13

11.98 13.0

18.0 12.5

1S.0

19.0

19.0

19.0

19.0

12.32

12.13 12.2 S 11.63 11.56 11.65 11.49

s-bu s-bu »-gal s-Ib »-lb s-cwt s-gal s-gal £-pipe

Indigo

s-lb

Staves barrel hogshead pipe Pitch Tar Turpentine

s-M jE-M £-M s-bbl s-bbl s-cwt

Cotton

s-lb

Gunpowder

£-bbl

49.0

48.25

2.25

2.0

1.54

1.5

32.0

32.0

3.31

47.5

2.0 1.46

32.0

Apr.

46.75

2.0 1.42

32.0

May

46.0

2.0 1.36

32.0

3.75

3.63

3.5

2.54

2.5

18.75 18.0

IS.7 5

IS. 66

IS. 56

IS. 47

June

46.0

2.0 1.29

32.0

2.29

1S.3S

Sept.

Oct.

Dec. 2.0 3.0

18.42 19.92

19.21

2.0 3.0 18.5

11.61

11.24

10.87

13.5

13.75

10.5 14.0

11.0 13.5

10.63

13.25 19.0

19.0

20.0 10.5

20.0 10.5 32.0

19.0 32.0

49.33

50.0

46.67

47.33

19.0 11.0 48.0

2.25 3.0

Nov.

48.67

2.33

2.33

2.33

2.03

1.33

1.37

1.42

1.46

32.0

2.36

IS.28

32.0

2.42

18.19

32.0

33.5

1.75 l.S

35.0

2.81

3.0

18.09

18.0

15.0

17.0

18.0 19.0

2.61

18.0

13.75

10.0

1.76 1.5

35.0

3.01

18.67 19.0

11.0

Sources—Mercury: Jul., Mar., Nov.; ALLXN: Feb.-July, Sept.-Nov.; BONSAIX: Apr.-Aug., Oct., Dec.; DENHAM: Feb., Mar., May, Sept.; NOÏHIS: Mar.-Sept., Dec.; Powii: Oct.

368

PRICES

IN COLONIAL

PENNSYLVANIA

TABLE 1 ( C o n t i n u e d ) AVERAGE MONTHLY WHOLESALE IN

P R I C E S OF

COMMODITIES

PHILADELPHIA

1728 Commodity Corn Wheat Tobacco Rice Bread brown middling ship white Flour Beef Pork Salt coarse fine Molasses Sugar loaf, London loaf, Penna. Muscovado Rum New England West India Wine, Madeira

Unit

Jan.

Feb.

s-bu s-bu s-cwt s-cwt

2.06 3.0 17.5

s-cwt s-cwt s-cwt s-cwt s-cwt s-bbl s-bbl s-bu s-bu s-gal s-lb s-lb s-cwt s-gal s-gal ¿-pipe

Indigo

s-lb

Staves barrel hogshead pipe Pitch Tar Turpentine

s-M £-M £-M s-bbl s-bbl s-cwt

Cotton

s-lb

Gunpowder

£-bbl

Mar.

Apr.

May

2.13 2.19 3.OS 3 . 0 17.0 17.0 21.0 21.0

2.25 3.25 16.0 16.0

10.25 14.0

10.25 13.88

10.0 13.75

10.0 13.0

18.0 10.25 30.0 50.0

17.0 10.13 30.0 50.0

16.0 17.0 9.88 9.13 30.0 40.0 50.0 65.0

1.77 1.5

1.78 1.5

35.0

3.5

35.0 2.83

1.79 1.5

35.0

2.83

1.67 1.46

35.0

2.17

June

July

Aug.

Sept.

Oct.

Nov.

Dec.

2.38 2.5 3.38 3.5 16.5 17.0 1S.0 20.0

2.5 3.75 16.0 18.0

2.0 3.67 16.25 18.0

2.0 3.58 16.5 19.0

2.38 3.5 14.0 19.0

2.38 3.5 14.0 19.0

2.38 3.5 15.0 19.0

10.0 13.0

10.5 14.0

10.25 14.0

10.0 14.0

10.0 14.0

11.0 14.0

11.0 14.0

18.0 9.63 40.0 62.5

18.0 1S.0 18.0 9.82 10.0 11.0 41.88 43.75 35.0 62.5 60.0 60.0

10.0 13.0

17.5 19.0 9.63 9.5 40.0 40.0 65.0 65.0

1.67 1.48

35.0 2.34

1.67 1.5

35.0

2.5

1.69 1.67

35.0

2.42

1.71 1.55

35.0

2.67

1.67 1.42

35.0

2.42

1.67 1.5

35.0

2.58

18.0 18.0 10.75 10.5 35.0 35.0 60.0 60.0

2.11 1.5

3.0 1.5

36.0

36.0

2.5

2.5

12.0 10.0

12.0 10.0

20.0 1.75 19.33 20.0

20.0 20.0

15.0 14.5

10.0 9.0

11.0 9.5

12.0 10.0

12.0 10.0

12.0 10.0

11.0 10.0

11.0 10.0

10.0

Sources—Mercury: Jan., Feb., Apr., June, July, Oct., Nov.; ALLEN: Mar.-June, Aug.-Dec.; BON&ALL: Feb., Aug., Sept., Oct., Nov.; DENHAM: Jan., Mar.; NORJUS: Jan.; POWEL: Jan., Feb., May, June, Sept., Oct.

APPENDIX TABLE

1

369

(Continued)

A V E R A G E M O N T H L Y W H O L E S A L E P R I C E S OF IN

COMMODITIES

PHILADELPHIA

1729 Commodity Corn Wheat Tobacco Rice Bread brown middling ship white Flour Beef Pork Salt coarse fine Molasses Sugar loaf, London loaf, Penna. Muscovado Rum New England West India Wine, Madeira

Unit

Jan.

Feb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

Dec.

s-bu s-bu s-cwt s-cwt

2.25 3.S ¡6.0 20.0

2.25 3.5 17.0 20.0

2.25 3.5 ¡7.5 ¡9.0

2.0 3.58 18.0 18.0

2.0 3.58 18.0 18.0

2 4 13 18

2.17 3.67 13.0 18.0

2.25 3.67 ¡3.0 ¡S.O

2.5 3.75 13.5 19.0

2.17 3.67 13.5 19.0

2.17 3.71 13.5 ¡S.97

1.79 3.92 15.0 18.93

s-cwt s-cwt s-cwt s-cwt s-cwt s-bbl s-bbl

11.0 14.0

11.0 14.0

10.0 14.0

11.0 13.5

11.0 13.5

11 0 13 5

11.5 13.75

10.0 14.0

a.o 14.0

12.0 14.0

12.0 15.0

11.25 14.75

18.0 10.5 35.0 50.0

18.0 10.5 35.0 50.0

¡S.O 10.0 35.0 57.5

18.0 9.0

18.0 9.0

18 0 18.0 9 75 11.0

¡S.O 11.5

¡9.0 11.75

19.0 11.5

19.0 12.25

51.25

51.25

51 25 51.25

51.25

50.0

50.0

50.0

¡9.0 11.0 29.0 56.0

s-bu s-bu s-gal

2.5 1.5

2.0 1.5

2.0 1.54

1.96 1.58

1.87 1.58

1 95 1 58

2.0 1.54

2.0 1.5

2. 17 1.25

2.17 1.58

2.33 1.63

2.83 ¡.63

2.33

2.33

2.25

2.17

2.00

1 67

1.67

2.0

2.0

2.17

1.85

2.0

33.75

36.0

35.0

2.4

2.5

3.0

3.17

3.0

12.0 12.0

11.0 12.0 9.38

10.0 10.0 9.83

¡2.0 12.0 11.13

14.0 12.0 12.0

S.17

8.5

8.0

8.0

s-lb s-lb s-cwt s-gal s-gal £-pipe

Indigo

s-lb

Staves barrel hogshead pipe Pitch Tar Turpentine

s-M £-M £-M s-bbl s-bbl s-cwt

Cotton

s-lb

Gunpowder

JE-bbl

35.0

35.0

2.5

2.5

12.0 10.0

12.0 10.0

35.0 2.46

12.0 ¡0.0

35.0

2.42

12.0 10.0

35.0 2.42

12.0 10.0

0 33 0 0

35 0

2 42

13 0 12 0 8 0

31.5

2.42

13.0 12.0

7.5

7. S3

37.5

36.25

Sources—Mercury: Feb., Apr., June, July, Oct.-Dec.; Pennsylvania Gazette: May, June, Nov., Dec.; ALLEN. Feb.-Dec.; BAYNTON: June-Dec.; BONSALL: Jan.; No t i l s : Dec.; POWEL: Mar., Apr., Aug.

370

PRICES

IN COLONIAL

PENNSYLVANIA

TABLE 1 (Continued) AVERAGE MONTHLY WHOLESALE PRICES o r

COMMODITIES

IN P H I L A D E L P H I A

1730 Commodity Corn Wheat Tobacco Rice Bread brown middling •hip white Flour Beef Pork Salt coane fine MoUxaes Sugar loaf, London loai, Prnn», Muscovado Rum New England West India Wine, Madeira

Unit s-bu s-bu s-ewt K W t

Jan.

Feb.

Mar.

2 . 0 1.91 3.88 4 . 0

1.81 4.0

Apr. 2.0 3.83

May 1.87 3.83

17.47

16.0

16.0

16.0

16.0

June 1.88 4.0

July

Aug.

Sept.

Oct.

Nov.

Dec.

1.83 1.91 4.0 4.0 10.0 11.0

1.9S 2.06 2.13 3.33 3.33 3.25 14.0 12.0 13.0

1.83 2.75 18.0

s-ewt s-ewt s-ewt s-ewt s-ewt s-bbl s-bbl

11.0 14.0

12.0 15.0

11.0 15.0

11.0 15.0

11.0 15.0

11.5 15.0

11.0 15.0

12.0 15.0

12.0 15.0

12.0 15.0

12.0 15.0

11.0 14.5

11.0 30.0 57. J

12.0

12.0

12.0

12.0

12.5

12.5

13.25 11.0

11.0

17.0 11.0

18.0 8.5

57.5

57.5

51.13

58.75 60.5

60.5

60.25

60.25

60.0

60.0

60.0

s-bu s-bu s-gal

3.5 2.0

3.5 2.0

3.0 1.54

3.0 1.5

2.S3 1.5

2.67 1.5

2.5 1.5

2.33 1.42

2.5 1.33

3.25 1.33

4.0 1.42

4.0 1.42

1.8

1.7

1.65

1.63

1.64

1.57

1.63

1.83

2.0

1.75

1.88

2.0

32.5

30.0

3.0

3.0

15.0 12.0

15.0 11.S

15.0 11.6

15.0 11.4

15.0 11.2

15.0 11.0

8.0

8.0

7.75

7.5

7.7

7.9

»-lb s-lb M»t s-gal s-gal £-pipe

Indigo

s-Ib

Staves barrel hogshead pipe Pitch Tar Turpentine

s-M £-M £-M s-bbl s-bbl s-ewt

Cotton

s-Ib

Gunpowder

£-bbl

27.5 2.33

29.0 2.83

30.5 2.33

32.0 2.33

32.0 2.33

15.0 10.S 12.0

33.0 2.42

15.0 10.6

34.0 2.33

15.0 10.4

35.0 2.33

15.0 10.2

35.0 2.42

15.0 10.0

35.0 2.42

15.0 11.5

Source*—Utrcwy: Aug., Sept., Nov.; Pa. Gwctte: Jan., Feb., Apr.-Aug., Oct.-Dec.; ALLEN: JIN.-Apr., Aug. Sept., Nov., Dec.; BAYHTOH: Jan.-Oct., Dec.; N o u i s : June, Nov.; POWIL: Jan., Dec.

APPENDIX

371

TABLE 1 ( C o n t i n u e d ) A V E R A G E M O N T H L Y W H O L E S A L E P R I C E S OF COMMODITIES IN P H I L A D E L P H I A

1731 Commodity Corn Wheat Tobacco Rice

Unit

Jan.

Feb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

s-bu s-bu s-cwt s-cwt

1.92 2.25 11.0 18.0

1.7 J 2.75 11.5 16.0

1.58 2.5 12.0 14.0

1.5 2.25 11.0 15.0

1.83 2.21 11.0 15.0

1.5 2.21 11.0 17.0

1.5 2.17 14.0 15.5

1.67 2.5 16.0 14.0

1.5 2.5 18.0 14.0

1.67 2.63 14.5 14.0

1.67 1.67 3.06 2.58 15.5 15. tl 14.0 14.0

s-cwt s-cwt s-cwt s-cwt s-cwt s-bbl s-bbl

10.5 14.0

9.5 12.5

9.5 11.5

9.0 11.25

9.0 11.25

9.25 11.25

8.5 11.0

8.17 11.0

8.38 11.25

8.88 11.63

9.3 12.0

18.0 8.0 30.0 65.0

16.S 8.0 31.0 60.0

15.0 16.0 16.0 16.0 16.5 17.0 7.75 7.75 6.75 7.17 7.81 7.81 32.0 33.6 35.2 36.t 3S.4 40.0 55.0 50.0 50.0 55.0 54.0 54.5

s-bu s-bu s-gal

4.0 4.0 1.5

2.67 3.5 l.J

1.33 3.0 1.42

1.5 2.5 1.46

1.5 3.0 1.46

2.0 3.5 1.25

1.75 3.5 1.25

1.5 3.5 1.28

1.5 2.5 1.25

1.5 3.0 1.25

1.67 3.0 1.3

1.67 2.65 1.4

s-lb s-lb s-cwt

2.0

i.n

1.83

1.67

1.67

1.75

1.71

1.67

1.5

1.5

1.67

1.67

33.0

34.0

30.5

24.0

Bread brown middling 8hip white Flour Beef Pork Salt coarse fine Mola&ses Sugar loaf, London loaf, Penna. Muscovado Rum New England West India Wine, Madeira

s-gal s-gal £-pipe

2.5

2.5

2.42

2.33

2.33

2.29

2.5

3.06

3.08

Indigo

s-lb

6.0

5.75

5.5

5.0

5.0

5.25

5.25

5.25

Staves barrel hogshead pipe Pitch Tar Turpentine

s-M £-M £-M s-bbl s-bbl s-cwt

15.0 13.0

16.0 12.5

14.0 12.0 8.0

14.0 12.0 10.0

14.0 12.0 10.0

Cotton

s-lb

Gunpowder

£-bbl

1.17

1.25

35.0

1.33

35.0

1.17

35.0

1.17

36.0

14.0 10.5 9.0 1.25

36.0

14.25 10.5 9.0 1.25

36.0

14.5 10.5 9.0 1.25

Dec.

9.0 12.0

15.0 16.0 16.0 16.0 7.63 9.36 10.02 8.17 40.0 40.0 40.0 31.75 60.0 55.0 57.5 55.63

32.0

32.0

2.81

2.9

2.9

5.0

4.67

4.67

4.3)

14.0 10.5 9.0

14.0 9.75 12.0

1.0

0.92

14.0 10.0 10.0 0.92

14.0 10.0 10.0 0.92

7.5

Sources—Mercury: Jan., Mar., May, June, Aug.-Nov.; Pa. GatetU: Feb., May-Dec.; BAYNTON: Feb., Apr.; NOES is: Apr., July; POWZL: Apr., June, Sept.

372

PRICES

IN COLONIAL

PENNSYLVANIA

TABLE 1 ( C o n t i n u e d ) AVERAGE

MONTHLY

WHOLESALE IN

PRICES OF

COMMODITIES

PHILADELPHIA

1732 Commodity Cora Wheat Tobacco Rice Bread browo middling ship white Flour Beef Pork Salt coarse fine Molasses Sugar loaf, London loaf, Penna. Muscovado Rum New England West India Wine, Madeira

Jan.

Feb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

Dec.

»-bu s-bu s-ewt s-ewt

1.67 2.58 16.25 14.0

1.67 2.58 16.63 14.0

1.67 2.69 17.0 14.0

1.67 2.57 16.0 14.0

1.67 2.58 13.0 16.0

1.67 2.6 17.0 18.0

1.71 2.61 15.5

1.75 3.03 14.0

2.0 2.75 17.5

2.25 2.75 17.5

2.0 2.83 13.0

2.0 2.83 13.0

s-ewt s-ewt s-ewt s-ewt s-ewt s-bbl s-bbl

9.0 12.0

9.5 12.0

9.25 11.75

9.2 11.8

9.2 11.8

9.2 11.75

9.0 12.0

16.0 8.0 37.5 53.75

16.0 8.5 36.25 51.88

16.0 8.33 35.0 50.0

16.0 7.82 30.0 50.0

15.0 8.0 28.0 50.0

14.0 7.83 26.0 50.0

15.5 8.0

9.0 11.83 9.75 15.0 8.17

9.0 12.0 10.13 15.0 8.56

9.0 12.0 10.5 15.0 8.88

9.0 12.0 10.0 15.0 8.0

9.0 12.0 10.0 15.0 8.0

46.25

42.5

45.0

47.5

53.0

53.0

s-bu s-bu s-gal

1.67 2.29 1.42

1.67 1.94 1.33

1.67 2.5 1.33

2.0 2.75 1.44

2.0 2.5 1.4

1.58 2.38 1.35

1.58 2.25 1.33

1.58 2.13 1.39

1.92 2.23 1.4

2.25 2.33 1.38

2.75 2.75 1.33

2.75 2.75 1.33

s-lb s-lb s-ewt

1.75

1.83

1.83

1.75

1.75

1.67

1.54

1.42

1.54

1.67

1.67

1.67

Unit

33.5

35.0

35.0

34.0

35.0

32.5

32.25

32.0

31.0

30.0

35.0

35.0

s-gal s-gal £-pipe

2.83

2.75

2.72

2.65

2.36

2.28

2.33

2.36

2.42

2.42

2.42

2.42

Indigo

s-lb

4.09

3.79

3.5

4.0

3.75

3.5

4.63

5.75

5.25

4.75

5.0

5.0

Staves barrel hogshead pipe Pitch Tar Turpentine

s-M £-M £M s-bbl s-bbl

12.0 10.0 10.0

14.0 10.0 11.0

14.5 10.0 10.0

15.0 10.25 9.5

14.5 10.5 9.25

14.0 10.0 9.0

14.0 10.0 9.0

Cotton

s-lb

1.0

1.08

1.08

1.0

1.0

Gunpowder

£-bbl

9-CWt

13.0 10.0 10.0 0.92

12.0 10.0 10.0 0.92

0.92

0.92

14.0 10.0 10.0 0.83

14.0 10.0 10.0 0.92

14.0 10.5 9.0 1.08

9.0

Sources—Mercury: M a r . - J a n e , Aug., Oct., Nov.; Pa. Gaictte: J a n . , Mar.-Aug.; BAYNTON: Dec.; NORMS: F e b . , Aug.; POWIL: M a r .

APPENDIX

373

TABLE 1 ( C o n t i n u e d ) A V E R A G E M O N T H L Y W H O L E S A L E P R I C E S OF COMMODITIES IN P H I L A D E L P H I A

1733 Commodity Com Wheat Tobacco Rice Bread brown middling ship white Flour Beef Pork Salt coarse fine Molasses Sugar loaf, London loaf, Penna.

Unit s-bu s-bu s-ewt

Staves barrel hogshead pipe Pitch Tar

Feb.

Mar.

Apr.

May

2.0 2.79

13.0

2.0 2.83 13.0

14.0

2.0 2.75 14.0

2 0 2 83 14 0

9.0 12.5 9.5 15.0 8.0

9.0 12.5 9.5 15.0 8.0

9.0 12.5 9.75 14.5 8.0

9.0 12.5 10.0 14.0 8.0

9 0 12 5 10.0 14 0 8 0

9 12 10 15 8

50.0

50.0

46.S

43.0

43 0

43 0

2.0 2.83

s-ewt

s-ewt s 67 2 63 17 0 11 5

2 2 16 11

2 2 15 11

2 2 15 10

s-bu s-bu s-ewt s-ewt

2 3 18 14

wj 2 08 1 67 08 3 17 2 88 18 5 18 0 5 0 14 5 14 0

s-ewt s-ewt s-ewt s-ewt sg

7 5

7 5

7 5

7 5

7 0

6 75

6 75

25 0 2i 0 6 57 7 0

Z5 0 7 0

25 0 6 J

6 0

6 0

6 5

6 5

7 5

0 41 0 40.0 37 5 39 0 39 0 38 75 40 0 40.0 38 3 63 3 25 3 13 3 13 3 13 3 19 3 38 3 5 13 5 25 5 25 5 25 5 13 5 38 5 38 5 25 5 5 15 5 16 0 0 14 0 14 0 14 5 12 0 13 0 14 0 25 12 5 12 0 9 5 10.0 8 0 10.0 10.0 10 0 75 4 75 4 5 4 0 4 0 3 75 3 0 3 0 3 5

1 0

1 0

10

1 0

10.0

10 25

10 0

10.0

0 96 10.0

1 0

10

1 0

10.0

10 0

10.0

0 92 10.0

45 0 45 0 45 0 3 63 3 31 3 0 5 5 5 5 5 5 14.0 14 0 14 0 10 0 10.0 10 5 4 0 4 0 4 0 10 10.0

0 96 10.0

1 0 9 0

Sources—Mercury: Jan.-Dec.; Pa. Gazette: Jan.-Aug., Oct.; ELLIS: Feb.; MOERIS: Mar., June-Dec.; POWXL: Feb., Mar., June, Nov., Dec.; REYNELL: Jan.-Dec.

PRICES

384

IN COLONIAL

PENNSYLVANIA

TABLE 1 ( C o n t i n u e d ) A V E R A G E M O N T H L Y W H O L E S A L E P R I C E S OF IN

COMMODITIES

PHILADELPHIA

1744 Commodity Corn Wheat Tobacco Rice

Unit

Jan.

Feb.

Mar.

Apr.

s-bu s-bu s-cwt s-cwt

1.5 2.5 14.0 11.5

1.5 2.67 ISO 11.0

1 2 15 11

5 67 0 5

1 2 13 10

s-cwt s-cwt s-cwt s-cwt s-cwt s-bbl s-bbl

8.5 14.5 9.0 16.0 9.0 35.0 65.0

8.0 14.0 8.5 15.0 8.5 35.0 65.0

8 14 9 16 8 35 65

7 5 5 5 14 0 0 9 0 0 14 5 25 7 5 0 40.0 0 60.0

5 S 0 5

May

June

1 2 12 10

1 48 2 0 2 .5 2 .5 11 .75 11 5 10 .25 11 .5

1 47 2 36 11 83 10 .83

1 5 1.42 2 .33 2 .42 2.67 11 75 12 .0 12.0 11 . 0 11 .5 11.33

7 5 12 75 8 0 13 75 7 25 40.0 58.75

7 .0 12 75 7 75 13 5 6 75 50.0 55 0

7 13 8 1« 7 53 60

7 13 8 14 7 50 61

1 58 1 5 1 67

2 25 2 33 1 92

67 29 0 0

July

Aug.

Sept.

Oct.

Nov.

1 .42

Dec. 1 .42 2 5 12 0 11 5

Bread brown middling ship white Flour Beef Pork Salt coarse fine Molasses Sugar loaf, London loaf, Penna. Muscovado Rum New England West India Wine, Madeira

s-lb s-lb s-cwt

1 67 1 67 1 67 1 67 1.67 1.67 1 67 1 67 1 67 1 67 1 67 1.67 1 33 1 33 1 25 1 33 1.33 1.33 1 25 1 29 1 33 1 28 1 33 1.30 50.0 55 0 55 0 48 75 55 0 57 5 50 0 45 0 45 0 43.33 47 5 47.5

s-gal s-gal ¿-pipe

2.33 2 33 2 33 2 38 2 67 2 67 2 58 2 5 2.5 3 17 2 92 2 96 3 29 3 25 3 22 3 0 3.25 3.17 25 0 25 0 25 25 28 25 29 0 26 83 25 0 40.0 32.5

Indigo

s-lb

6.0

6.5

6 5

Iron bar pig

JfMon £ ton

6.25

6.0

6 13

Staves barrel hogshead pipe Pitch Tar Turpentine

s-M £-M £-M s-bbl s-bbl s-cwt

Cotton Gunpowder

s-bu s-bu s-gal

1.67 2.0 1.75

1.67 2.17 1.67

1 67 2 0 1.67

1 67 2 0 1 67

7 0

40.0 40.0 3. 25 3. 0 5 5 5. 0 14.0 14.0 10.0 10.0 4.0 4.0

7.0

40.0 3.0 5.5 14.0 11.0 4.0

40.0 3.25 5.5 14.0 10.0 4.0

s-lb

1.0

1.0

1. 0

1. 0

1. 13

£-bbl

9.0

9.0

9. S

9. 5

9.5

7 0

7 13 8 14 8 55 60

5 0 0 5 0 0 0

2 17 2 33 1 83

7 5

40.0 40 0 40.0 2. 75 2 38 2 5 4. 75 4 44 4 5 14.0 13 5 14 0 9. 0 9 5 10.0 3. 5 3 25 3 5 1 33

1 25

13. 75 12 5

5 0 17 0 5 33 0

2 17 2 39 1 67

6 5

8 0 8.0 8 0 5 0 13 0 12.83 12 5 0 9 0 8.67 8 5 0 14 5 13.83 14 0 7 75 7.17 7 0 5 0 40.0 35.0 35 0 25 65 0 63.33 47 5

2 25 2 5 1 67

6 5

2 5 2 5 1 67

2.5 2.5 2.08

2 58 2.67 3 25 3.36 26 5 25.83 6 5

6.5

40 0 40.0 40 0 40.0 2 83 3 25 3 25 3.08 6.42 4.67 5 5 7 5 14.0 13 33 14 0 14 0 12.67 10 67 12 25 12 0 3 67 3 S 3 5 3.5 1 28

1 29

17 33 20.0

1 33 20.0

1.33 20.0

Sources—Mercury: Jan.-Dec.; MOBJJS: Jan.-Dec.; POWEL: Mar., Apr., Aug., Oct.; REYNELL: Jan.-Dec.

2 5 2 5 2 33

2 67 3 5 25 0 6 5

40 3 5 14 14 3

0 0 5 0 0 5

1 33 20 0

APPENDIX TABLE

1

385

(Continued)

A V E R A G E M O N T H L Y W H O L E S A L E P R I C E S OF COMMODITIES IN

PHILADELPHIA

1745 Commodity Corn Wheat Tobacco Rice Bread brown middling ship white Flour Beef Pork Salt coarse fine Molasses Sugar loaf, London loaf, Penna. Muscovado Rum New England West India Wine, Madeira

Unit

Jan.

Feb.

s-bu s-bu s-cwt s-cwt

1 2 12 11

42 38 75 5

s-cwt s-cwt s-cwt s-cwt s-cwt s-bbl s-bbl

8 12 8 14 7 35 46

0 8 0 5 12 5 75 8 5 25 15 0 25 7 0 0 35 0 25 45 0

s-bu s-bu s-gal

2 5 2 5 2 33

1 2 11 11

42 33 5 5

2 75 2 "5 2 33

Mar.

Apr.

1 2 11 11

42 33 88 25

8 12 9 13 7 35 45

8 5 7 5 5 25 12 5 12 5 9 0 8 0 0 14 0 13 5 5 7 0 7 0 0 0 35 0 35 0 0 43 75 42 5

2 5 2 58 2 33

1 2 12 9

42 33 0 5

May

2 5 2 58 2 25

1 2 11 7

42 33 5 5

2 5 2 5 2 08

June I 2 13 8

July

Oct.

2 3 14 10

0 0 0 0

2 2 14 10

17 88 75 75

0 8 5 14 0 5 9 0 5 0 15 0 25 9 0 0 45 0 5 75 0

8 13 8 14 8 37 62

8 5 0 13 5 5 75 9 0 75 15 5 75 9 0 5 35 0 5 55 0

63 1 71 2 0 67 2 75 2 67 75 14 0 13 0 0 10 0 8 0

« 75

13 9 15 7 37 48

8 5 25 13 75 25 9 0 0 15 0 88 9 0 5 37 5 75 55 0

2 58 2 63 2 33

2 5 2 5 2 38

8 13 8 14 9 40 67

Nov.

Sept.

Aug.

2 5 2 5 2 33

2 67 2 5 2 33

2 92 2 5 2 42

2 2 14 11

0 83 0 0

2 83 2 5 2 42

Dec. 1.67 2.67 13.5 11.0

8.5 13.0 9.0 14.0 8.0 35.0 50.0 2.75 2.67 2.5

s lb s-lb s-cwt

1.67 1 67 1 67 1 67 1 67 1 67 1 67 1 67 1 67 1 67 1 67 1 67 1 25 1 25 1.25 1 25 1 25 1 25 1 25 1 29 1 25 1 25 1 25 1 25 45 0 42 5 42 5 42 5 42 5 40 0 42 5 42 5 42 5 43 75 47 5 42.5

s-gal s-gal £-pipe

2 75 2 75 2 75 2 71 2 5 3 75 3 67 3 5 3 38 3 0 25 5 26 0 26 75 27 0 27 5

Indigo

s-lb

6 25

Iron bar pig

£-ton £-ton

30 0 6 0

Staves barrel hogshead pipe Pitch Tar Turpentine

s-M £-M £-M s-bbl s-bbl s-cwt

37 2 5 14 12 4

Cotton

s-lb

Gunpowder

£-bbl

2 58 2 58 2.58 2 63 2 63 2 67 2 67 3 04 3 13 3 17 3 17 3 04 3 08 3.08 28 0 28 5 29 5 28 0 27 75 28 0 27.5

6 5

6 0

6 25

6 5

6 38

6 5

6 5

6 5

22 0 6 04

6 0

6 0

6 0

6 0

6 0

6.0

22 0 6 0

22 0 6 0

45 3 5 16 9 4

50 3 4 14 9 4

5 35 0 35 0 35 0 32 5 37 5 40 0 40 0 88 2 25 3 13 2 88 2 75 2 88 2 88 3 0 5 5 25 5 13 4 88 4 5 4 75 5 0 5 0 0 14 0 14 0 14.0 14 0 12 0 12 0 12 0 5 14 0 13 S 11 0 9 0 8 5 9 0 9 0 0 4 5 4 5 4 25 4 0 4 0 4 0 4 0

1 29 20.0

1 25 20 0

1 29

1 29

11 25 10.0

1 33 10 0

1 33 10.0

1 33 10 5

1 33 12 0

0 0 0 0 0 0

• 33 12 0

6 25

6 5

6.0

6 0

6.0

0 50 0 40.0 25 3 25 3.0 5.0 S 5 0 12.0 0 14 0 10.0 0 10 0 4.0 25 4 5

1 38 11 5

1 42 10 75

1.33 12.0

Sources—Mercury: Jan.-Dec.; Pa. GazetU: Jan.-Mar.; Pennsylvania Journal: Mar.-June, Nov., Dec.; LOGAN: Mar., June-Oct.; MORRIS: Jan.-Dec.; PEMBERTON: Aug., Oct.-Dec.; POWEL: Mar.-June, Sept., Oct., Dec.; REYNELL: Jan.-Dec.; RICHARDSON: Sept., Oct.

PRICES

386

IN COLONIAL TABLE

1

PENNSYLVANIA

(Continued)

AVERAGE MONTHLY WHOLESALE PRICES o r IN

COMMODITIES

PHILADELPHIA

1746 Commodity Corn Wheat Tobacco Rice Bread brown middling ship white Flour Beef Pork Salt coarse fine Molasses Sugar loaf, London loaf, Penna. Muscovado Rum New England West India Wine, Madeira

Unit s-bu s-bu s-cwt s-cwt

s-cwt s-cwt s-cwt s-cwt s-cwt s-bbl s-bbl s-bu s-bu s-gal

Jan.

Feb.

Mar.

Apr.

1 2 13 7

2 0 2 5 13.5 7 5

1.67 2.58 12.32 7.5

1 5 1 58 1 83 2 17 2 67 2 75 96 3 22 12 32 13.0 13 66 14 33 7.25 7.0 7 0 7 0

5 5 S 5

13 0 8 s

14 0 14.0 8 75 8.75

14 0 8 5

8 0 8 0 8.0 36 25 36 25 36.25 45 0 45 0 50.0

7 S 40.0 55 0

2 75 2 5 2 67

2. S3 2 5 2 58

2.S3 2.75 2.58

3.0 3 0 2 58

May

June

July

Aug.

Sept.

2.4? 3 21 15 0 6 5

1 3 15 6

83 08 5 25

Oct.

Nov.

Dec.

1 2 14 6

1.88 3.0 14.25 7.0

1.67 3.0 15.0 7.25

16.0 12.0 17.5 10.0 40.0 52.5

16.0 12.0 17.0 9.25 37.5 50.0

75 92 75 17

16.67 15 75 16 5 12 0 11 67 12 0 17 75 17 5 18 0 10 25 10 19 8 0 8 25 10 42 11 0 47 5 39. 7S 40 0 45 0 45 0 50.0 56.25 56 25 62 5 62 5 55 5 55 0 14 0 8 5

3.0 3 0 2 5

14 25 15 17 8 75 10 33

3 33 2 83 2 42

3.0 3 17 2 42

3 0 3 5 2 38

3 0 3 08 2 43

3 88 3.67 2 5

5.5 5.5 2.46

9.0 9.5 2.5

s-lb s-lb s-cwt

1 25 1 25 1.25 SO 0 47 5 50.0

s-gal s-gal £-pipe

2 75 2 75 2 75 2 75 2 71 2 67 2 61 2.58 2.58 2 75 2 67 2.75 3.08 3 25 3 17 3.08 3 08 2 96 3 0 3 0 2 96 2 89 2 91 2.92 25.0 22 0 20.0 20.0 20 0 22 0 25 0 25 0 23 75 22 5 24 5 25.0

1 25 1 25 / 25 1 25 1 38 1.25 1 25 1 25 50 0 45 0 45 0 45 0 44 5 45 33 46 0 47.5

Indigo

s-lb

6 0

6 0

6.0

6 0

Iron bar pig

£-ton £-ton

5.94

5 88

5.91

5 94

Staves barrel hogshead pipe Pitch Tar Turpentine

s-M £-M £-M s-bbl s-bbl s-bbl*

40.0 3 5 5 0 12 0 10.0 14.0

Cotton

s-lb

Gunpowder

£-bbl

1 67 12 0

40 0 4 0 5 0 11 0 10.0 12 0 2 0 12.0

40.0 4.0 5.0 12.0 10.0 14.0 1.67 12.0

40 3 5 12 10 14

6 0

0 40.0 83 3 0 0 5 0 0 12 0 0 9.0 0 14.0

1 5 12.0

75 12.0

6 0

38 3 S 12 8 14

6 0

6 0

6.0

6 25

6.5

6.0

6.0

19.5 5.63

75 40 0 42 5 43 33 38 0 42.5 3 9 5 38 5 13 4 5 4.25 0 5.38 5 08 5 5 5 42 5 5 0 10 0 10.0 11 67 11 33 11.5 0 8 33 8.5 8 0 8 5 10.0 5 14 0 14 0 14.0 14.0 14.0 0 0

12.0

2 0 12 0

1 75 12 0

1 83 11 0

1 83 11 0

1.25 50.0

42.5 4.5 5.13 11.5 8.5 14.0

2.0

2.0

11.0

11.0

* The quotations of turpentine changed from hundredweight to barrel in January 1746. (Three hundredweight « one baiTel.) Sources—Pa. Gazette: Jan.-Dec.; Pa. Journal: J an.-Mar., Aug.-Dec.; MOULIS: J an.-Dec.; PEJCBERTOM: Jan., May, June, Nov.; POWEL: Jan.-Aug.,Oct.; REYNELL: Jan.-Dec.

APPENDIX TABLE AVERAGE

MONTHLY

1

(Continued)

WHOLESALE IN

387

P R I C E S OF

COMMODITIES

PHILADELPHIA

1747 Commodity Corn Wheat Tobacco Rice

Jan.

Feb.

Mar.

Apr.

s-bu s-bu s-cwt s-cwt

67 3.0 15 0 25

2 3 12 7

0 0 5 5

2 3 12 7

0 0 5 5

1 3 17 10

s-cwt s 34»> 347. 4 3 ' i 4 3 1 Sugar, London and Pennsylvania l o a f , 1 8 1 185 —duties on, 1 6 5 —imports o f , 1 8 1 —prices o f :

444

PRICES IN COLONIAL

annual, 4 1 3 compared with total index, 1 9 9 - 3 1 2 monthly, 1 8 2 - 1 8 5 , 3 6 9 - 4 1 5 relation to prices of flour, 1 8 5 trend o f , 1 82, 342 Sugar, muscovado, 1 6 3 - 1 8 1 —duties on, 1 6 5 —prices o f : annual, 1 7 4 , 4 2 3 compared with total index, 2 9 9 - 3 1 2 relation to prices of flour, 1 8 0 - 1 8 1 trend o f , 1 7 9 - 1 8 0 , 343 —source o f , 1 6 3 Tar, 132-153 —bounties on, 1 3 2 , 1 3 3 , 1 3 4 , 1 3 5 , 1 4 0 —grading of, 140 —prices o f : annual, 4 2 4 compared with prices of pitch, 1 4 9 1 5 0 ; of staves, 1 5 2 - 1 5 3 ; of turpentine, 1 5 0 ; with total index, 2 9 9 - 3 1 2 monthly, 1 3 2 - 1 4 9 , 3 6 0 - 4 1 5 relation to prices of flour, 1 5 0 - 1 5 2 trend o f , 1 5 1 - 1 5 3 , 342 T e a , Bohea, 2 5 3 - 2 6 2 —imports o f , 254 —prices o f , 2 5 3 - 2 6 1 , 4 2 1 Textiles, see Calico, Cordage, Duck, Linen, Oznaburgs, Woolen goods T i m e to purchase: —beef and pork, 339 —flaxseed, 339 — l i n e n , 263 — l u m b e r , 338 — r i c e , 92, 338 —West India products, 1 8 7 , 338 — w h e a t , 338 — w o o l e n goods, 263 T o b a c c o , 79-84 — c r o p s , 79 —prices o f : annual, 4 2 2 compared with total index, 2 9 9 - 3 1 2 monthly, 79-83, 3 6 0 - 4 1 2 relation to prices of flour, 84 trend o f , 84, 344 T o t a l index, see Index T r a d e customs, 2, 1 0 3 , 263-264, 2 7 2 , 3 1 6 T r a d e with: — C a r o l i n a s , 2, 3 3 - 3 4 , 97, 1 0 6 , 1 0 8 , 1 3 2 , *75 — E n g l a n d , 2, 4, 88, i n , 1 5 9 , 2 6 3 - 2 9 2 , 315-336

PENNSYLVANIA

— I r e l a n d , 2, 6 7 - 7 1 , 1 0 8 , 1 0 9 , 1 1 1 , 1 1 7 , 266-267, i79> 339 — M a d e i r a Islands, 2, 29, 2 3 1 , 2 3 4 , 2 3 5 — M a r y l a n d , 2, 28, 289 — N e w E n g l a n d , 2, 28, 6 1 - 6 2 , 1 0 9 , 1 7 0 , 1 86, 209 —Newfoundland, 101 — N e w Jersey, 28 — N e w York, 37, 170 — P o r t u g a l , 2 3 , 29, 3 5 , 3 7 , 4 5 , 4 7 , 49, 60, h i , 1 1 7 , 1 2 8 , 2 4 4 - 2 4 5 , 247 — R h o d e Island, 6 1 - 6 2 , 209, 267 — S p a i n , 4 7 , 49, n 7 — V i r g i n i a , 2, 1 0 8 , 289 —West Indies, 2, 28, 3 7 , 38, 6 1 , 1 0 5 - 1 0 6 , 108, 1 1 7 , 163, 170, 174, 175, 176, 1 8 6 , 1 9 9 , 279, 308, 3 1 6 , 3 3 7 , 338 T r e a t y of Aix-la-Chapelle, 74, 1 8 3 , 2 1 8 T r e a t y of Vienna, 24 T r e n d of prices (see also individual commodities) , 3 4 2 - 3 4 5 Turpentine, 1 3 2 - 1 5 3 —bounties on, 1 3 2 , 1 3 3 , 1 3 5 —prices o f : annual, 424 compared with prices of staves, 1 5 0 ; of tar, 1 5 0 ; with total index, 299312 monthly, 1 3 2 - 1 4 9 , 3 6 0 - 4 1 5 relation to prices of flour, 1 5 0 - 1 5 2 trend of, 1 5 1 , 1 5 3 , 342 Units of value, 7 and note, 3 1 5 and note Virginia, see T r a d e War: — e f f e c t of rumors on prices, 24, 94, 1 7 1 , 249, 2 5 8 , 260, 301 W a r with Spain and France, 1 7 3 9 - 1 7 4 8 , 2 7> 3 1 > 33) 6 °> 6 8 , 1 0 3 , 1 0 5 , 1 0 6 , 1 2 0 , 124, 1 4 1 , 143, 145, 147, 1 7 1 , 172, 193, 1 9 4 , i97> 207, 2 1 8 , 2 3 1 , 2 4 1 , 248, 2 5 0 , 262, 272, 274, 275, 3 0 1 - 3 0 3 , 3 4 0 - 3 4 1 , 343 W a r , French and Indian (see also Seven Years' W a r ) , 38, 4 1 , 6 3 , 1 0 8 , 2 0 7 , 280, 34' W a r , Seven Years', 1 7 3 8 - 1 7 6 3 (see also French and Indian W a r ) , 75, 1 4 6 , 1 4 7 , 2 5 0 , 2 5 8 , 262, 3 0 1 , 3 0 5 - 3 0 6 , 330, 340341 Weather: —cold, 43

INDEX — d r o u g h t , I i , 2 2 , 3 i , 3 4 , 4 3 , 4 8 , 60, 6 4 , 70, 1 6 1 — f l o o d , 93 —hurricane, 1 2 9 , 1 7 9 , 207 — i c e in r i v e r , 1 6 , 4 5 , 72 — n o ice in r i v e r , 7 0 — r a i n , 35, 42 — s e v e r e w i n t e r , 1 1 , 2 2 , 2 8 , 2 9 , 3 5 , 60, 106-107 —storm, 129 West I n d i e s : —products, 2 1 5 prices o f , 1 6 3 - 2 2 9 time to purchase, 1 8 7 , 3 3 8 , 3 3 9 — t r a d e w i t h , see T r a d e Wheat, 9-55 — c r o p s , 1 1 , 16, 2 1 , 22, 24, 25, 26, 28, 29, 3 ° . 3 * . 3 3 . 4*> 4 3 . 4 5 . 4 « , 4 7 , 4 « — e x p o r t s , 2 3 , 30, 4 5 , 4 7 , 1 7 0 —prices of:

445 annual, 5 1 - 5 5 , 422 c o m p a r e d w i t h prices of c o r n , 5 6 - 5 7 , 6 0 - 6 4 , 7 7 . 7 ^ ; of flaxseed and hemp, 7 8 ; w i t h total i n d e x , 2 9 9 -

monthly, 9 - 5 1 , 3 6 0 - 4 1 5 relation to prices of flour, 5 4 — — t r e n d of, 54, 77, 343*344 Wine, Madeira, 2 3 0 - 2 3 7 — d u t i e s on, 2 3 5 —prices o f : annual, 423 c o m p a r e d with total index, 2 9 9 - 3 1 2 monthly, 2 3 0 - 2 3 6 , 3 6 0 - 4 1 5 relation to prices of flour, 2 3 7 trend o f , 2 3 6 , 2 6 1 - 2 6 2 , 3 4 3 - 3 4 4 Woolen goods: — m a n u f a c t u r e o f , 267 —supplies o f , 267, 283, 284 — t i m e to purchase, 2 6 3