The Arkansas banner., 1843-11-18
POLITICAL
BANK AND PROTECTIVE TARIFF. Extract from one of the Money Articles
 tue .Neu York Herdld

Extract from one of Ae Money Articles Of
 tue .New York Herald.
 Those who contend for protective tariff and National Banh, contend for two anta- gonist principles, ss far as '1protection to home industryn is concerned IL is intended by high tariff to exclude from our markets foreign goods, in order that home manuiac- lures may enjoy them without competition This IS done by imposing upon tho importer of foreign goods d tax called duty. Now no goods of any description ever go from one country to another, but through the move ment of individual merchants, who import and export ali articles solely with view to their own individual profit. Last year wool len goods of a certain description were worth Sa per yard in England, and were worth here $3; and the duty was 20 per cent, or 40 cents per yard; tax charges 10 per cent, or 20 cents per yard. Consequently they could be imported and sold at the price here to the farmers, at $3 per yard, and leave the merchant c profit of 40 cents. On the first of September, the duty was raised to 40 per cent, or so cents per yard. This absorbed the whole profit, and no more was imported. The customary foreign supply being thus forced out of the market, the manufacturers here now obtain better prices. This is the operation of protection, All the talk about home competition reducing prices, is too im- pudent humb~g to be replied tc. The pco- pie of the United States are too mucaa given to reasoning for themselves, to be made to believe that home competition is less kurtful 10 individual manufacturers than foreign, and therefore it is not their object to excite the former, as they falsely allege, by high ta- riff The object is only to keep the market to themselves; yet, while this is their object, they themselves help to defeat it, by allvo- eating National Bank The money prices of goods consist in the relative supply of each. If the supply of money is increased, ahe quantity of it which may be obtained for an article is in the same proportion. If gold grew as fast and as abandamtly as wheat, it would relatively be worth no more, even if it was consumed as fast, but it cannot be in- creased faster than nature has ordered The banks, however, by issuing paper money, payable on demand, increase the quantity of money at pleasure, and prices rise as they bid They increased the quantity of money from 6O,0O0,000 in 1880, to $50, 100000 in 1857. The consequence was, that all 1 prices rose 100 per cent. As long as this large quantity of money was convertible into | specie, it was as good, and exporters sent any quantity of goods here, without the smallest regard to the tarifE-sold them at the highest prices-turned the proceeds into gold, and carried it home. The paper was no use to them, and they could not buy pro- duce to carry back, because prices here were so much higher than there, that they would lose by the operation. Under the swelling prlces, the imports rose from sS70,000,000, in 1880, to SlS9,000,000, in 1886. If the tariff had been raised to 80 per cent, in 1886, the imports would still have continued, be- cause the abundance of currency had raised prices 100 per cent, leaving still margin of 2o per cent to foreign shippers. At the same time, the rise of raw material and labor here destroyed the ability of the manuiac- turers to compete at all with foreigners- Hence It IS that in l842, under low tariff, low prices and specie currency, they reco- vered thelr ability to export manufactures.
 IS singular anomaly that those people contend for such contradictory and suicidal
 measures. But it arises from the fact that they are the dupes of politicians Since ,be formation of this government, the country has been divided into two parties, the one lean
 ing towards magnificent central govern ment, the splendor of which should, in some degree, ape the glare of European courts This policy involves national debt, enor- nous revenues, high taxes, and correspond ing extravagance. The other party clung to
 republican simplicity, freedom from debt, and unrestricted trade, and taxes as low as the most rigid economy in the expenditures of government wonld permit Now for the go- sernment of the United States, in time of
 peace, there are but two sources of revenue
 the public lands and the customs. Duec,
 taxation in time of peace is out of the oues.
 non; no man would have the hardibood to
 propose it. Now, with a sound and s,eaa,
 cHrEeQcXr. tho U.