The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1844-07-05
VOLUME L. NUMBER 10.

utho oFeimeW anu suspended ule prosperity oil
the country. And such must again be the legiii.
mate and inevitable tendency Of any system which
directly or indirectly controls the citizen in the
exercise of his discretion in disposng of his own
property on his own terms, and at market OF his
own selection. Trade, and the operation of trade,
should be left free as possble for the laws that
are natural to it have been demonstrated as quite
sufficient for its regulation. The tariff of 1923
attempted diversion of trade from its natural and
national channel; and government, through the
merely artificial principles and regulations Of the
law, and for the purpose>of what is called home
protection created state of affairs that termina-
ted only IN disorganization and paralysis. The
manufacturing interest protected by the govern
men, called upon the banks for facilities to more
extended operations; the prospect of profit to
manufacturers became mania after the passage OF
the law; the banks loaded with reckless berality,
and expanded their circulation beyond precedent
in this enterprise; and these expansions, by the
general diffusion of paper money, augmented the
sales and the profits Of the manufacturers, till the
whole manufacturing interest thought that the
protective system was the climax of legislative
wisdom, and the infallble source of all political
prosperity.
Thus il was, that the steady and regular course
of business and of trade was diverted into new
channels, and carried on by an artificial tide of
success as deusive in its character as it was brief
in its duration. The day Of reckoning came upon
US, in the midst of our excesses; and general
proclamation of bankruptcy was the very natural
result Sir, is this fancy sketch, or is it not the
history Of events, fresh within the memory of eve-
ry representative on this foori But, further to
sustain my position, find in one of the speeches
of Mr.. Calhoun, delivered in the Senate in 1910.
the most satisfactory testimony. 1t exhibits the
expansion of the circulation of the banks of the
manufacturing States for the years 1880 and '32,
he not having been able to procure a statement
for 1929 and 1881, and the balance of the tariff
period, up to the explosion of the banks.
The circulation of the banks of Massachusetts, for
the years 1880 and '32, was as follows: for 1880,
$4,73o,oOO; 1882, 7.7oO, 900; or 65 per cent. in
crease. In Rhode Island, in 1880, the bank circu-
lation was 500 900; in 1882, 81 $40 900, or an
augmentation of 100 per cent In New York, in
1880, the circulation Of the banks was $40 900 O0O
in 1882, it was l4 900 900, or an increase of 40
Fer cent In Pennsylvania, in 1880, the circula-
ton $7,300, 900, in 1882, IS, s,76O, 900, or an
increase of 20 per cent. The circulation Of the
bank of the United States, in 1880, was $I5, $780,
900; in 1882, 1924, 500, ,00O-being an increase of
67 per cent The aggregate amount Of circulation
of these States, was in 1880, $3S 900 000 in 1882,
$50 500 900. These are but theretults of the two
closing years Of the tariff of 1928; and doubt not,
if the estimate could be had for the whole period,
similar results would be developed The estimates
I have furnished show that the increase of bank
circulation, within tie periods indicated, was al
most IN exact proportion to the amount Of protec-
tive duties laid by the tariff.
have thus attempted to show. sir, what have
asserted to be true, viz: that the tariff of 1928
contributed largely to the disarrangement of trade
from the expansion Of the currency Of the country,
in inflated prices ofproduce land, &C., the winding
up of which state ofthings so sgnaly disastrous
to all concerned. Nor was this expansion Of the
paper circulation confined to the aforesaid manu-
featuring States. The banks of these States led
the way and were followed by the excessive issues
Vi udLho VI dil otdtcS Vi OUIOu Inc all
vance of all articles in the country followed the in.
crease ofpaper money, until the prices at which
they were purchased would not admit of exporta-
ton and sale in foreign markets where their circu.
lation was so per cent less than ours. The result
was, that the holders of the produce here held on
for small advance, until the bubble exploded, and
they sunk amid the general crash. Itwas at the
climax Of this period Of bank expansion that wheat
was imported to the United States from Europe,
and sold at profit for less price than our dealers
could take without sacrifice. 1t was at this period,
sir, that the extraordinary spectacle exhibited
to the world of great producing country, with a
surplus ofproduce on hand, augmenting that sur
plus by the purchase of breadstuff3 from foreign
countries. know, sir, it has been charged by
of the politicians of the country that the de-
plorable state of things have been describing was
the result ofhe repeal Of the tariff act of 1925, and
the establishment of the act of 1888, Familiarity
known as the compromise act. Indeed, sir, must
express my surprise to have heard gentlemen on
this floor repeat what Ihad supposed every sensi-
BILE man had condemned; but my surprise has been
greater to hear gentlemen assert that the pros
pery Of the country now was the effect Of the tar
M of 1912. and that this fact sustained the charges
of ruin brought upon the country by the comprom.
Use act.
And now, Mr. Chairman, without designing to
enter into any very extended argument on these
points, shall briefly review them as they have
been presented, and demonstrate by the conclusive
testimony of dates and figures the total fallacy of
these assumptions. And, first / remark that the
suspension of the banks, from 1887 up to the year
1s4l, was the incubus that hung upon and pasied
the energies of the country, and the only true
cause of its commercial prostraton and pecuniary
distress. And it is fact equally familiar to the
people, that the interests of the country have been
gradually recovering and advancing from their
prostration, from the moment of the general re-
IF anecia r,avren hv the hanks in 13ll