The Camden journal. [volume] (Camden, S.C.) 1836-1851, 1840-03-07
SO 100000 56,500,000

These arc, it will be borne in mind, the
principal manufacturing States. In the
period of two years, we find their bank
circulation, taken in the aggregate, ex-
panred from thirty-eight to fily-six and
half millions, equal 10 forty-four per cent.
But this falls far short of the actual in"
crease. The year 1929 is not Included.
1t must have been one Of great expansion,
as the import of specie greatly exceeded
its exports; which, with the favorable ex-
change implied, must have greatly increas-
ed the business Of the banks and the cir
culaton of their notes. The reverse must
have been the case in 1882, which is in
cludcd; as we know by the report itself,
that year aud the latter part Of the pre-
ceding, was a period of severe contrac-
ton. If a return could be had of 1929,
80, and the early part of 81, | venture
nothing in asserting that we should find
the comparison, compared with 1929, the
year Of the tariff, far greater in proper
iion.
That there is no mistake in attrinuiing
this great expansion to the tariff; might
be farther shown, if additional proof we're
necessary, after such conclusive evidence.
from the fact that it is impossible to as
sign any other adequate cause. As far as
can be seen, there was no other cause IN
operation, political or commercial, that
could have produced the results. |! was
a period Of profound peace, and the ex-
ports Of the country steady to an unusual
degree.
Should doubt, however, sill remain in
the mind OF any ore after al this acrnnlu-
lalion Of evidence, will next call tie at
tc ton of the Sena!c to fact which must
lie conclusive with all Ci'roscd to receive
the truth. BY turning to the table snow
ing the extent of bank circulation in 80
and 80 in the four States already referred
to, il will he seen that the expansion was
greater or less, just as the States, rcsrcc-
ti"ely, were Eiorc or lHss manufacturing
1t will not be doubted that Rhode Island
is the most manufacturing of the four,
and we accordingly find there the greatest
expansion; ana that for the simple reason,
that there the causes assigned must have
been in the stale Of the greatest activity.
Her bank circulation doubled in the short
space of two years, as appears by the ta-
BILE. Massachusetts, is the next; and we
find hers is the next highest, b ing sixty
five per cent. New York is still less So,
and hers is but forty per cent; and Penn
sylvania, the least Of the four, had, ex-
cludng the Bank of the United States, in
creased only twenty per cent. Ii the
statement had extended farther South, and
taken in the staple States, venture little
in making the assertion that instead of ex-
pansion, their bank circulation would, for
the same period, have been found iii the
opposite state, for TIC reverse reason. 1t
will be seen the Bank of tile United States
had expanded sixty-seven per cent. This
great increase, compared to the local
banks of Pennsylvania, may probab!y~be
attributed partly to loans negotiated far
lhcr East, and not impro5a5ly because her
accommodations were somewhat enlarged, |
from causes connected with her etfurts, at
The time, to obtain renewal of her char
Ter.
trust that have now established to
The entire satisfaction of the Senate, the |
ruth Of the great principle which mas been
laid down-lhat every increase Of p-otec-
live duties is necessarily followed, in the
present condition of our country, by an
expansion of the currency, which must
continue tn increase till the increased price
Of production, caused by the expansion,
shall be equal to the duty imposed, when
a new tariff will be required. Assuming |
then, the principle as iucontrovcrtable,
it follows that the natural tendency Of the
protective system is to expand, in seeking
10 accomplish its Object, till it terminates
n explosion. 1t would be easy to show,
rom what has already bcca stated, that
his tendency must continue till the ex-
ports shall be so reduced as TO be barely
sufficient to meet the demands Of the
for the articles not included
n the protection; as il must be obvious,
10 long as they exceed that amount, SO
ong must specie continue to be imported,
md the exchange TO be in our favor, till
he protection is broke down by the ex-
,anson of the currency.
The consummation, therefore, Of the
;ystcm, must be one of two things: cX-
,loson, or the reduction of The exports,
- &C NOT IN exceed the amount Of the un-