Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1840-02-20

crease of gold and silver in relation to the currency
The next must have been to turn the domestic ex
| changes still more strongly against the staple States
and in favor of the manufacturing. To understand
Tins portion OF the operation, must again repeat tina
the object of the tariff to cut off the consumption
Of the foreign articles order that they should lie sup
Piled by our own manufactures The necessary con
sequence of this must have been to diminish the de-
nand abroad and to increase it in the manufacturing
States, and thereby TO turn the nux Of gold and silver
10 that point, III order to purchase the supplies there
which we have been in the habit Of obtaining from
abroad. These causes combined must have had the
effect oil adding greatly to the capacity Of the banks in
that quarter to extend their discounts and acoGlmo
dations and with it the circulation Of their notes.
with growing supply of specie, and the exchange
favorable in every direction, must have been the
case, there limit to the business of banks,
they slow to perceive or to act such favorable cir
cumstances. Nor must we overlook another powerful
cause in operation the fiscal action of the Government
through the operation of which the sums collected
under such high duties was transferred to the same
quarter to be applied in discharge OF the public debt
and dsbursed on the nnumcrable objects Of expendi-
turc 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, and
with that expansion corresponding increase of prices
and the cost Of production Nor could this state Of
things till the increased Of production be-
come equal 70 the duty imposed for protection At that
point, and not before, must specie cease TO flow in
and the exchange to be Elvorable but when reached,
the tide must turn, lmporatOns of the protected arti-
ces would rccommcnce, specie flow out and exchanges
become adverse. This must be SO obvious, that il
would Only darken to attempt to make it more clear
With the turn Of the tide the banks must contract and
pccuna-y embarrassment and distress follow Such,
under The operation of the causes assigned must be
the rcsat, Tor reasons which appear to Irresistible
But, SIR, do not mean 10 leave important point
to the force of argument however clear and GER
tain. intend TO prove by ncontc3tabc authority of
documents, such was, in fact exactly the result in
Tend to place the principle laid down, have said
beyond doubt cay
The first authority shall adlucc is from the report
of a committee Of the other House, made in February
1892 by Campbell 7. White, the chairman, then a mem
Der from the city OF New York The rcpor, is evidently
drawn with great care, and by familiar with the
subject; and has the advantage of being another
subject, thc currcncy,) without any reference the
tariff protective SYSTEM and evidently without anv
knowledge of its operation Hear then, what the
port says:
9Th" recent cypn:t Of spsci" has swept the desve
ing given 10 the actual resnl, Of production a $780,
commanded nsa'd" prices; warehouses and dwellings were
improve" aud cinhclscd. and money abundant that
could readily r obtained 10 amount, upon rnmI~oy
How changed is the general aspect wlin few months:
Al solid possessions and Of industry remain land
nnes I" be equally productive !ao: with IL usual
r"ward the have not been uniieEdy Whence then,
this !amcai change in aair: Why TIL. scarcity 6f
commercial distress, and absolute ->ihly with many
solvent persons discharge their debts; speedily gric
vosy succeeded III" gratifying and prosperous picture which
50 lately presented"
What confirmation of the deductions of reason, both
in the swelling tide of prosperity, and the turning ebb
OF adversely The sketch of the latter is unsuitcd
the present time good seasons and productive years
and every element apparently, plenty aud prosperity
and yet deep and widespread distress; though that
time there had been no removal Of deposites, had
the Sub Treasury been heard of, to which gentlemen
Il,
affect the country.
The author of the report could give satisfactory
answer 10 his question, whence all this sudden and
means OF -trGfnu II rrrn-l, - Il -. 70 WIN The
year. and the next year felt the swelling, but dclnsvc
tide of an expanding currcncy the exchange turned in
our favor; gold and silver, following the impulse
flowed in banks began to enlarge their discounts and
circulation 1t continued to swell with stronger and
stronger current through all the subsequent year: and
the first part of the next nearly three years, according
the usual PERIOD when began cbb; and then follow
ed the scene, tcngly described by the an
thor, and which to him appeared so unexpected and
unaccountair IT at this point had not the move
mcns the South arrested the farther progress OF the
system, that there would have been another clanor Tor
additional duties. The distress, as usual, would have
been attributed to ovcr-importalion, and that TO the
want of adequate protection and IN lc2, tthe usual
period of four years having ntervcncd another pro-
cclive tariff would have been inflicted, to be followed
BY the train of consequences and with equal dis
appointment TO its authors.
Now sir, TO show that the flowing in Of the precious
metals, in consequence of the tariff of -, IS not
mere assumption, have extracted from the public do
cuI!ents for the years lc9 and lSO, the imports and
exports of gold and silver, which hold III my hand
The import in 20 was 81 lD3Gl2, andthc export ST.
81 iai, making OF imports over exports of
S30g2 i7c; and for 1880 -, lJI,i against 81 ~ O2,
making an excess Of imports Of ;C,&ii,3i2 making,
the two years, of imports OF s!r,otG,-iG
By turning 10 the report already c,;ed it viii he seen
that The estimated amount OF specie in the country
the first of January, lcSc, was but :s2jO0C,o0O, Of
which J,0O0,C00 were III circulation, and S2G,OCG,JOO
in the vaults of the banks that the addition to the
specie in the years forty per cent the whole
amount.
1t now remains to be shown what the effect of
this great proportional increase Of specie, and the IA
vorable state of the exchange which it indicates had
on the banks in the manufacturing States The report
will furnish the information, not fully, bat enough TO
satisfy every reasonable II gives the following
statement Of the amount of bank notes in circulation
in 1880 and 1892 respectively, III the States Of Alassa
chuscts, Rhode Island, New York, and Pennsylvania,
including the Bank of the United States, which will
show the increase in the sport space Of two years
Here Mr. c. read the following statement:
1880 lsS.. Ri. increase
uf Crc'nin