The Ashland union. [volume] (Ashland, Ashland County, Ohio) 1854-1868, 1854-10-18
The Crisis u, Canada.

pursued in Lower Canada are the cut
ting and saving of timber and ship-build-
ing, both for the English market, upon
which the Pl ovinee is mainly if not
entirely dependent, as the principles of
British free-trade require. According
", when the market is depressed the
Province is ruined, not having any re-
sources of its own in the wav Of varied
manufacturing industry to fall back upon
Thus the price of both timber and ships
having sunk enormously in England all
apprehension among the Canadians, and
every mail from Europe is waited for
with tremulous anxiety, and numerous
failures arc inevitable.
Since the great impetus given to ship
building from the demand for vessels
which the discovery of gold in Australia
and California occasioned, that branch
of production has become one of great
Importance, especially at Quebec-the
annual value of the ships built there be-
ing between three and four million dol
lars. But the ships recently sent thence
to England have not realized anything
like the price expected. From GA a
tun, the price of Colonia built vessels
has, in a very short space of time sunk
to Gl0. The ship-builders, generally
do business on capital furnished by com
mission brokers, who charge five per
cent. for indorsing for the ship-builders.
While the wages of ship-carpenters
have been unprecedentedly bigh-reaeh-
ing 50 a day-it is quite possible that
the brokers may have advanced On many
vessels more than they will bring when
they come to be sold to English buyers.
In such cases the loss viii fall on the
brokers who advanced the money
Against the contingency of loss by any
other means, they take good care topro-
vide by insuring the vessel while in
course of construction, and when ready
for sea, by taking a mortgage upon them,
besides insuring both vessel and cargo.
But against such Il fall in the value of
vessels as will prevent their bringing on
sale the amount advanced upon them.
they have no security. These ships,
constructed for sale in the Liverpool
market. leave Quebec in the middle or
toward the end of May, laden with tim
Der. They are paid for in bills, gencr-
ally at six months, by the English hou-
ses them and these bills are in danger
of being dishonored whenever heavy
losses have been suffered by the English
purchasers on the vessels.
The position of the timber trade in
Canada is not less gloomy. 1t is the
practice of timber merchants-about a
dozen of whom control the entire bust
ncss-to go to England in November,
aud during the winter to contract with
English houses for the delivery of tim
Der in Quebec in the spring at certain
rates. In many cases the timber thus
sold has yet to be purchased from the
lumberer. 1t is shipped in the middle
or at the end of May, and bills, gener-
ally at four months sight, are drawn
against it upon the English house to
whom it was sold. These bills, also, are
just now becoming due; and as there
must have been very heavy losseson the
timber from the extraordinary decline
in the price, fears of failure and the
non-payment of these bills In some cases
are anticipated.
Very little timber is shipped by mer.
chants from Quebec without its having
been previously sold to some English
house; and on such cargoes as have been
thus sent on speculation we learn that a
loss of from $4,000 to $4,000 per cargo
has generally been sustained. Timber
which was purchased at Sd. per cubic
foot, and on which Is. freight was paid,
has not brought over Is. 4d. in England.
An equal loss must lave been sustained
by English houses which purchased last
spring at the prices which then ruled.
The intelligence of the great decline
in the prices of ships and lumber was
the signal for all the banks in Quebec,
whose customers are chiefly engaged in
these branches, to stop discounting at
once. Holders whose necessities oblig-
ed them to realize were compelled to dc
so at a great sacrifice, Of course the
rich firms refuse to sell in the present
depressed state of the market. ShiE
owners are losing money, owing to the
low figure to which freights have sunk
Last year 4Os. % load so cubic feet
was paid for timber to Liverpool nov
the figures are down as low as 27s. cd. tt
sos. The decline in freights, ships anC
timber, came simultaneously, and it as
sailed all the chief interests of Quebec
The prospect for Canadian ship build
ing during the ensuing winter is not yer,
bright. Ship-carpenters who used to OBJ
tain less than half a dollar a day, SOM
years ago, have received So this season
Since the decline in the price of ships
however, an attempt has been made t.
reduce the wages to 81 a day; and al
though it was resisted at first it viii
have to be submitted to iu the end.-N
Y. Irlbuac.