The spirit of the age. [volume] (Woodstock, Vt.) 1840-1844, 1842-03-18
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Theqs'are, il will DO borne in mind the principal
manufacturing States In thl pGrod Of two years,
we find their bank circulation taken in IL. asgre-
gate, expanded from thr,y-cigit 10 ilty-six and Il
half millions of doI'ara, uadng an increase Of sis-
teen and a half millions, equal 10 iNrty-tour per
cent. But this falls Gar short of this actual increase
'i'hs year 1929 is not included 1t must have been
one of great expansion, rs the import Of specie
greatly exceeded It's exports; which, with the fay
CRADLE state of the exchange implied, mus, have
greatly increased the business Of the banks and the
circulation 70 their notes. The reverse must have
been the case in 1882, which Is included rs we
know by the report itself, that year and the latter
part Of the proceeding. WIS a period Of severe
contraction. If u return could be had Of 1925, 80
and the early par, Of 81, venture nothing in as.
sorting that we should find the comparison, conl-
pared with 1928. the year Of the tariff, far grea-
ter in proportion.
That there il no mistake in attributing this great
expansion to the trif, might be farther shown, il
additional p,ool were necessary, after such conclu-
sys eIidence, from the fact that il is impossible to
assigned any other adequate cause. AS far as can
be seen, there was no other canse in operation,
political or commercial, that could have produced
the results. It was period Of profound peace and
the exports and imports Of the country steady to
an unusual degree.
Should doubt. however, still remain in the mind
Of nny one after all this accumulation of evidence,
will next call the attention of the Senate 10 fact
which must he conclusive with all disposed to re-
ceye the truth. By turning 10 the table showing
the extent Ofbank circulation in 80 and 32 in the
tour States already referred TO, will be seen that
the expansion was greater or less. just as the
States, respectfully, were more or less manulnc-
Y, ,,,n I,,1 l,,.l H. II "A 4 :
is the most manufacturing Of the four, and we ac-
cordngy find there the greatest expansions; aud
that for the simple reason, that there the causes
assigned must have been IN the state Of the great
estac,ivity. Her bank circulation doubled in the
short space Of two yeals as appears by the table.
Massachusetts is the next aud we find here lis the
next highest, being siSty-fve percent. New Yorl.
Is still less so, aud hers is but forty per cent.
Pennsylvania, the least Of the four, had, excluding
tho Bank Of tue United States, increased ony TWEEN.
~ per cent II the statement had extended far
ther South, and taken in the staple States ven
ture little in making the Insertion that, instead OF
expansion, their bank ciiculaiian would, for the
same period, have been found in the opposite states
for reverse reason. |! will be seen the Bank Of the
United States had expanded sixly-sevcn per cent.
This great Increase, cOmpIreI TO the local banks
Of Pennsylvania, may probably be attributed partly
TO loans negoiiled farther Eastan not improbabIy
because her accommodations were somewhat en-
larsed, from causes connected with her efforts, a,
the time, TO obtain renewal Of her character.
lrus, that have now established to the entire
satisfaction Of the Senate, the truth of the urea,
principe wiIch has been laid downfall every in
crease Of protective duties is necessarily followed.
ia the present condition Of our country, by an OK.
pansion Of the currency, which must continue TO
Increase ill the increased pr;c of production, caus
ed By the expansion shall be equal to the duty i'm
posed, when q new tariff will be required. As
,unirg. then. the principle as inconIrovertuble, il
fellows that the natural tendency Of the protective
system Is To explnl, in seeking 10 accomplish liz
object, Ill. il terminates Ia explosion. It would be
easy 10 show. tiOn what has already been stated.
tIi tbi l,Iien.y must continue iii the exports
siAll,be s, rei1red ~ 20 be barely sufficient 10
met the demands Of the country for the articles
not incluod in tie pro,ecton as it must be obyi-
sI,, % l,n. as they e,,aed the amount, 50 long