The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1844-06-17

launched into greater expansions than il had previously
been under Post notes issued to Ill the vacuum pro
by the removal Of the deposss and the currency
was inflated beyond what had ever been before The
United States Bank increased Its issues from 1888 to 1886
from S7 5s2l7 to o7t 422 an increase of nearly six
millions of dollars while the increase of ali the banks in
States for the period from ss4 $50 $40 to $40
les 500 an increase of nearly fifty i've millions of dollar,
short time after the transfer of the deposss from thu
United States Bank to the pet State banks the friends OF
the former institution succeeded in getting passed the dis
ribution ac dividing the immense surplus revenue that
under the high tariffs among the States there.
BY deprivng the State banks the advantages
in holding SO large capital The stimulus given to State
banking and their immense issues and
s"counts were dfSSd Of the foundation which they
were based During the expansions alluded to- specula
tons in every species of property carried very
great extent Stocks real estate, merchandise &C. reach
ed an immense fictitious values the importatons were
enormous rising from in $780, $3.50 $50 os5
in 1886 causing very large expectation of specie meet
our foreign indebtedness and suspension of specie pay
ments by our banks in 1887 Bankruptcy and ruin mme
datey followed this movement revolution in the cur
rency and in commercial affairs generally took place that
threatened the ruin of the whole community Since 1887
the impsratons have been gradually falling off, which
with the sliding scale of duties has reduced the govern
men receipts from year to year. until in s4o the gross
amounted III
against $40 SIS 327 in 1896 In ls4O the compromise act
had nearly reached its last grade and the importaons
only amounted to $lo7,i4i,oi0, reducing the nett
receipts from customs to less than twelve millions of dol
lars. reduction OF both imports and rate OF duty re
duced the receipts OF below the annual sxpend
lures and the government have since been obliged to
raise small debt. The currency found its lowest point
in 1912, since which time it has been steadily increasing
The tariff act of 1912 brought into existence again the
high average rate Of 1923 and 1892 and already see
bringing into existence the same evils produced by
former tariffs The renewed inaation going on in
the currency is steadily swelling imports which,
with the high duty, il creating immense reve.
nue. greatly exceeding the expen ditures of the 20.
vernnent The small debt must soon be paid off, after
which surplus revenue must accumulate. The high
tariff Of 1912 will in few years, explosion in
the feelings of the South calling for its repeal for
dihcations, which, with the dangers arising from a
large surplus revenue may have the desired effect
on the friends Of the present bill and another CON-
promise act will undoubtedly be proposed perfected
adopted There is very strong prejudice against the
present tariff act This feeling will yearly increase
til it will become too strong to resist and compromise
must grow out of any future agitation of the question
Should another year the reestabhment of anohe,
United States Bank with the present tariff act still IN
force and large surplus hand the country
will be placed precisely in the position it occupied in
1880 The bank would of course hold the deposits and
the State banks would be again placed in hostile posi-.
ton towards it. The present tariff would create surplus
revenue, even under the most limited imports provided
the government was administered properly We hardly
believe the most restricted state of the currency would
prevent the accumulation Of surplus the present
average rate Of duty Consequently there appears be
no alternative but to reduce the tariff cannot be done
tefore another session Of Congress Until then surplus
hav lad 1s,, HI
ment Any surplus after that would only be great evil
producing specuatons expansions in the currency over
mportstons exports Of SPECIE and all the evils that nd
turay follow such movements. Bring forward the same
arguments that induced the passage Of the Compromise
Act, and they unanswerable.