Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1842-07-15
an1a3a4a

Tie truth is, that trade must be entirely rec'prccai,
and that no restriction can create n permanent I'M
pqrta,ion Of spccie-nor can ii retain finally III the
country more than it is fairly entitled TO, accord.
irc to the adjustment or balances, and the annual
amount OF productive industry. You may, by high
taxation, cut uii a certain branch Of trade, and there.
by desanee demand and supply ana mat may again
aicc, your exchanges, which would, TO I certain
extent, act upon the export or import Of specie IN lis
Gral adjustment. BIZ, gentlemen nigh; suppose, that
# restrictions o. high Tariffs could prevent The expnr-
ta.ion OF specie, 1t could be done in England. The
Tariff is certainly ligh enough there. And, yet, what
haze we seen within the last lew years: Take The year
ii lc3S, and part Of 1899. The Bank OF England
had always acted upon the idea that exchanges were
the test of the currency of a country. And when ex-
changes were against Nhem, they considered the cur
rcncy and circulation were e2pandcd; and when they
were AZ PAR, or in favor Of them, that then there was
contraction. To control this, they would raise or sink
Tie price Of interest, so as to Affect discounts and err
cula!ion. Nov exchanges might be u true test of the
level of currency, If all nations had precisely the same
permanent tariffs, and If Hey always had invariably
The sause annual amount Of products. But this again
depends upon the seasons themselves, which must al
WAYS lie the same also. a change in the productions
Of a country, and Of lis tariff, will produce a change in
the state Of It's foreign trade; and must conse quen,ly
affect tile state OF exchanges, 70 a great extent, 'nde-
penGeE: Of local currency. In 1c2S, exchanges Sc,
steadily against England, Notwithstanding the Bank had
a fill supply Of balIion On hand, and the circulation
| was moderate. In January Of that year, il had fo,e95,-
eco, which had been considered Il ,GCO, 600 more than
was necessary for a sound state OF the currency. But,
from Tie pre- valcncc Of wet weather, it was supposed
that The crop OF grain would fail; aud The consequence
was, in August, ISIS, exchanges rose against England
On tie Sh January, 1889, The bullion in her bank
was 99,336,tCc, which was ~&iil,OG0 mere than The
wear before; aGd yet exchanges ran SO steadily
iaeainst lie hank: TINT On TIE ID April, lS39, the
STOCK Of bullion had diminished to .f7.013,ot0. a
d..;n Lad been mtde in Il ftw months Of f2,235,'
pG0 &c meet oXcl.anrts. The great reason was, that,
from lie failure IF the home cop, large importa'
iions Of c;a;n had been made iroin tie Baltic. II
"as from tbs state Of things, and not from 4 email
stock II l%aljon, O. large circulation, that exchanges
ran 50 steadily aeaits. England. The demand fer gold
continued IN lie fare Of The fact, that the directors oil
lie tank la;sod tie price Of intei.st to ) per censura
and, on The 2eth luuc, 1880, they advanced ii 10 j
yer con,un; and on the lst August il was fixed at the
unprccrdcnt rate q 6 per cent. Still the drain for
srecie continued, AID they were compelled 10 obtain
80, CG2,o G0 from lie Bank OF France. Now | have ia
ken ;ais operation upon the expectation ard importation
of specie from a country full Of restrictions and high Ia
riiS. Ard am compelled &c lcleve, that the doctrine
of a hish tariff being necessary to prevent tie cypor'a.
tioa o! our specie. is Il ns II ignCrant assumption. The
un,h il, That il ali depends upon the State Of trade; .:t
That, aeain, is !. sUla,rGb by he :Eva5iabl, rule Of denaid
and supply. /, is one of The most beautiful and pl,io
sopAical Laws of gold and silver, that they will find
iAeir level. Press them where you will, yet, Ike
water. they will rise 10 a common surface. ionr un
wise and pragmetical legislation may produce a TEN
porary depression n. some roin, bet lis whole eftc
is to dcrsnse trade, and The !aw % natural demand ar,
supply, and thus urjds:!y 10 disturb The distribution c
wealth
Mr.. Chairman, in proposing my tax upon Cur i'm
porta;iurs III The present state Of The coinns rcIai weird
we must take into consideration the contracted state o
OF. currency and circulation; ard, also, that The inte
res, on the DEBT Of The country abroad, amounting Il
near SIC, eco annually, must be paid out Of cur ex
ports, and vii! fall, in some measure, asa tax upon oul
imports. Under all these circumstances, our CON
merce canao, bear a taxation Of SO per cent. 1t wi
inevitably Re avoided by sH struggling, which WI! f:o"s
a benef, 10 British tonnage, Gas far as the supplies o
Ike interior West, through the ST. Lawrence, may be
conce:ncdO and an injury TO ours. You will be d'sap
pointed in your revenue; and those mho expect protec
lion, vii! also be disappointed. There is a grea
change not only in cur condition, but a still greatel
change in The condition Of the whole Commercial
world within the last twelve years, which We c.nno
overlook in framing our tax laws, or any system O
policy which is TO last. The doctrine that a high Ia
riff is necessary 10 preserve our specie, is an ignorant
assumptions; and if il were true, it would produce ar
injurious efiec, upon the wages of labor and the per
Report Of the Chamber Of Commerce ard Manufactures a
Manchester, on Bank Of England, 1910, ?. I'll.