Edgefield advertiser. [volume] (Edgefield, S.C.) 1836-current, 1840-03-19

result of causes inherent IN the system IL
self, in the present condition OF our coun-
try, Il originates in the fact, that every
increase of protection-is necessarily fol-
lowed by an expansion of the currency,
which expansion must continue to enlarge
,ill the increased price of production 10
consequence shall become equal to the
increased duty, aud when the importation
of tbe articles prohibited may again take
Mace with profit. That is the principle;
and az it is essential to the peace and pros
nerily of the country that il should be
Clearly understood, l intend to establish
lis truth beyond doubt or cavil' aud for
that purpose, shall begin with the tarlff OF
,2s. the last and by far the boldest OF The
series, with the view Of illustrating, in its
case, the operation Of The principle; l
entreat the Senate TO give me its fixed at
,eu,ion. The principle, we'll understood,
will shed food Of light on the past and
nreseut difficulties of the country, and
guide US in safety in our future course.
To give a clear conception of the oPe-
ration Of the tariff Of 1928, it will be ne.
cessary to premise that it comprehended all
the leading articles Of consumption that
could be manufactured in our country; a
mounting in value to not much less than
one-half of the whole Of the imports; that
the duties on these articles were increased
enormously, as has been stated say mol
less than forty or fifty per cent; that the
average domestic exports at the Time Was
not much short of sixty millions of dollars,
and the imports for. consumption about
the same; that the revenue from the i'm
norris was about half that sum; and that
of the exports, about three.four,hs consist
ed of the great agricultural staples oil the
South. What. then. with these lacts'
must have beenits necessary operations on
the currency of the manufacturing States!
We export, to import. Itis impossible to
continue 10 export for any considerable
length of lime, without corresponding re.
turn of imports. 1t would be TO give a
way our labor for nothing. Our exports
then, continuing at an average OF sixty
millions, in what, under the operation OF
the tariff of 1928, must the corresponding
imports to the same amount return? Not,
certainly, to the same extent as before It's
passage, in The articles on which 1t had 80
greatly increased the duties! Its object
in raising them, was 10 give our manufac-
lures the home market, by excluding the
foreign articles Of the same description.
fit failed in that, it failed in accomplish
ing any good whatever, and became an
unmixed evil, without benefit TO any one.
The return, then, of imports, must have
been principally in articles on which the
duties were not raised as far as the con-
SUMPTION of the country woulI warrant,
and the balance. after paying what was
due abroad, in gold and silver. The first
effect, then, must have been to turn the
foreign exchange in our favor; most i'm
portant consequence connected with the
increase of gold and silver in relation 10
the currency. The next must have been
10 turn the domestic exchanges still more
strongly against the staple States, and in
favor Of the manufacturing. 10 under
stand this portion of the operation, | must
again repeat that the object Of The tariff
was 10 cut of the consumption of the for
eigu articles, in order that they should be
snpplied by our own manufactures. The
necessary consequence of this must have
been to diminish the demand abroad, and
tn increase it in the manufacturing States,
and thereby TO turn The influx OF gold and
silver to that point, in order to purchase
the supplies there, which we have been in
the habit of obtaining from abroad. These
causes combined, must have had the ef-
feet of adding greatly tc the capacity of
the banks in that quarter to extend their
discounts and accommodations, and with
il the circulation Of their notes. With a
growing supply Of specie, and the ex-
Change favorable in every direction, as
must have been the case, there is no limit
to the business of banks, nor are they slow
to perceive or to act on such favorable
circumstances. Nor must we overlook
another powerful cause in operation, the
fiscal action of the Government. through
the operation Of which, the vast sums COL
lected under such high duties, was trans
fsrred to tho same quarter, to oe applied
in discharge of the public debt, and dis
bursed on the innumerable objects of ex-
penditure there.
Under the operation Of such powerful
causes, there could not but be vast and
sudden expansion Of the currency where
they were in such great activity, aud with
that expansion, a corresponding increase
of prices, and the cost of production. Nor
could this state of things cease till the in
creased cost of production become equal
to the duty imposed for protection. Al
that point, aud not before, must specie
cease to flow in, aud the exchange 10 be
favorable; but when reached, the tide
must turn, importations Of The protected
articles would recommence, specie flow
out, and exchanges become adverse. This
must be so obvious, that it would only
darken, 10 attempt to make it more clear.
with the turn of the Tide the banks must
contract; and pecuuiary embarrassment
and distress follow. Such, under the ope-
ration of the causes assigned, must be the