The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1842-07-21

to be said that the excess Of price here that Of
other countries could only be fixed proportion, to
be regulated by the tariff itself and that foreign trade
could only operate to reduce any accidental elevation
of the domestic price beyond that proportion. This
expansion Of currency and of prices would also
pand the credit system. They woul not only cease
to buy much of al such prices, but they would also
sell to all that could purchase, either wi money
or credit They would, in this way nhate the bubble
of credit until it BURST and thus they would break
down, not only many If the manufacturers, but they
would ofthose great reyulsions which lead to
general liquidation of debts and To the prostralon OF
all the great productive interests This Is no mere
theory. Ii to this very cause that Adam Smith
attributed the destruction OF the manufactures OF Old
Spain. | will not pause 10 inquire how lar he was
right in this suggestioni but In our Own country we
have seen a similar state of things. The tariff OF
1916 led to that of 1924; and that of 1924 produced
the state of things out of which grew the supposed
necessity for another tariff IN 1870. The expansion
of the currency, produced by these almost prohbnoIy
duties, encouraged the Importation OF foreign COM
modtes produced under sounder state OF currency,
almost as much, and sometimes more than the actual
tax discouraged their consumption. L his tendency
OF tariff to expand the currency, and thus TO destroy
pro tanto The protection which affords, is diminished
by large free list of commodities which 90 no.
come into competition with any that are manufactured
at home Foreign commerce derives partial support
from this free list and the returns are made not In
money but in goods. Manu- lectures TO ;, thus ind
frcgn market to some extent, and receive their re-
turns in the same mode The domestic production
for foreign consumption although manned, sill con-
tinues to exist and the capacities OF the home mar
kei for absorbing the domestic manufactures are not
SO much d ninished under the other system.
The extent of his free list under the Compromise
Act was one of the causes which rendered That the
most benefcent of all the tariffs since 1916, In It's OPP
Grafton upon the whole country, and upon the manu-
facturers themselves The tables collected by Sena-
tors Calhoun and Woodbury. prove this description
of its operation to be correct. The facts" there
gathered from official documents, worth more than
all the arguments than can be urged MI WooC-
bury selects two periods OF ten yearsthe hrst iron
1920 TO 1890 of comparatively high protection; and
the second from 1880 to 1870 of comparatively low
protection and covering the greater part of The ope-
ra ions of the compromise act During the first pc
Rod the American tonnage actually diminished. 1t
was less in 1880 than in 1920; and during the latter
nea,y doubIed-it beng Isl, 1871, TIC In 1880, and
50 lS0, 764 in 1910 During the first period, the ex-
ports of domestic origin increased less than sixteen per
cent. but during the latter, they nearly doubled
the exports of 1880 being $50 462O29; and those OF
1910 amounting to BIB 1916 634 Mr.. Calhoun
lected two periods of years each the one from
1925 to 1882 which peri d OF high protection;
and the other from 1888 to 1910, which was period
of lower duties and entirely embraced by the opera
tons of the compromise act In the first PERIOD the
port of domestic manufac ures dcreased these ex-
ports being S. 729 1877 in 1925, and amounting only
to SIS $50 633 in 1882. But, in the second period,
these exports nearly doubled In 1883 they
were sc, 557,0SO; and in 1910 they amounted to
$2 S4SS $40 1t will also be seen, by reference to
some tables collected by my friend and colleague,
MI Hubbard ! that under the operation of this com
promise ac, the home market has been almost entirely
secured to The domestic manufacturer. Ihe estimated
aggregate value of American manufactures is 1855
800 542; whilst the whole fofe gn IMPORTS including
a great proportion of articles not made In this coun
try, are only estimated at $40 100000 by the Chair
man of Ways and Means. The woollen manufac-
lures imported are but little more than half Of those
made home. Of cotton goods, the Imports are
about fifth of those manufactured here; and the
proportion of foreign iron is even LEGS than that OF
coiton But what is worthy Of most attention, Mr..
Speaker is the fact that the increase of our trade
during this period was greatest with those nations
which furnished with the commodities admitted
free from duty Ii these benetcent effects were, in
any part to be absorbed to this free list, surely the
manufacturers had no interest in alternating The pro-
ceeds of the public lands, so as TO create necessity
for taxing those articles. How, then, stands my col
leagues argunent' His reference to contempora-
neous history have failed sustain him. The
object for which he thinks the stipulation was made,
could not heve been attained by observing these
fluctuations of excess deficiency in the revenue
must still have REQUIRED, if the land money had been
distracted The idea of securing stability in the
revenue system, is expressly excluded by fact that
the law provided other means for the avowed purpose
Of efecting that end and of adjusting all fluctuations
in the revenue, and means too, which would have
rendered he surrender of the public domain inconss
tent with the interest of the manufacturers. The
clause of the which he erred in support Of his
views cannot bear the construction which he has
given without leading to consequences which Con-
gress could have designed And moreover
there were circumstances of probable occurrence
which rendered such disposition Of the lands abso-
lately incompatible with the cardinal provision in the
act, that the duties after 1872 should not exceed
lwenty per cent. On the contrary, the General Go
vernment had constantly used the revenue arising
from lands for its ordinary expenditures. The con-
inuance OF this usage was everywhere expected by
the people, and the opposite idea is of recent origin.
believe, now, that we could remedy the evils
under " hch the Treasury abors, five were to make
proper reductions in the expenditures, call back The
revenue from lands and lay duties within the limits
of the compromise act. Within these limits believe
tariff might be framed which would yield even more
revenue than either of the bills before the House.
have spoken Of the operation of the compromise
act. do not propose to enter upon the nature
of It's obligations | have never suIpOs that Con-
gress had not the power TO repeal It, | have never
believed that it had the force Of constitutional pro-
vision. But have always considered it as of higher
sanction than any act OF mere ordinary legislation 1t
was a bill of peace. 1t gave harmony distracted
and divided people 1t received, in some degree, the
assent of all parties. texpressed to extent the
will Of both the majority and minority upon mos,
exciting question In other words, it was compro-
mise of great and Of dangerous differences and the
expectation was created that it would not be lightly
disturbed. For the first years of its existence it
onerous to the treetrade party; they, however, OBJ
served it regiously. Towards its close they began
TO feel its benefits and will not dwell upon the
manner in which its obligations regarded by
The other parties to the compact.
(To be contnted)
From, the .Ne,c York Standard.
TYLER MEETING IN THE PARK.
A large and enthusiastic meeting of the citizens in
"a, of fhA of he Au,ipi