Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1845-07-18
THE TARIFF AND THE CURRENCY

We commend TO our readers a careful Perusai
Of the following letter from The Philadelphia cer-
respon len, Of the Union. Its views seem TO Is
full of forc. and eminently calculated 10 aid IN
successful adm tmen, OF The knolly queslio" u
the Tariff: :,
"One OF the most important questions ihai WIN
REQUIRE the attention OF the new Congress, IS Inc
adius menv Of The Tariff OF 1872 on PrihciPies
satisfactory 10 all sections oil The country One
great incipIe seems 10 be settled by men OF an
parties; and that is, that no more revenue siouiu
he raised By taxation, Than an economical auElih
i,ratIon If The Government requires
"Uur poll ica Tatiifies, who expect 10 raise
whiflwind that they may ride into power upon
the storm, embarrass The action oil Inc Govern
EeIi greatly. a calm, cool, and deliberate con
sheraton of this important measure, WIN leiei
ence 10 the true interests CT the country, VIII
bring all The conflicting sections oil the Chion
nearer t"geiher, and hope speedily setlle lhe
Yexatinus question. The welfare oil Inc Peo-
pie requires that il should be permanently ar
ranged, so that men making investments IN
manufactures NAV know how 10 calculate
Many PERSONS in this STATE are of the opinion toi
which am one) that no tariff can De ADJUSTED
thai will secure to the business OF the country d
steady marker, under nuctuaiing currency
such az We b I'VE had Tor the last thirty years
From the history of The past We mnsl ara" oui
lessons Tor The future. In retrieving The e3pan-
sions and conlraclions OF the unrestricted paper
system OF the coun ~ Tor The las,quarter oil cen
tury. il will be seen tina, i, has had a most COM
lnahdng influence upon The prices OF properly,
produce and labor. Ii is only necessary 10 refer
10 few instances Of recent date 10 establish inns
position In 1884, the bank loans ana discounts
amounted 10 1914 lI9, 499 the imports Of me
country amounted Tor the same period 10 slSo'o.l'
332 ind The sales of the public lands 10 "a, No',
600. In 1886, only TWO years after, NE loans
and discounts Of the banks we're increased TO
S475 5O6 0SO; the imports to Slc9 9eO,o55, and
the sales of The public lands 10 S2i, 1o9 800
This increase in impoItations ami The sales OF
The public lands was caused BY The increase on
bank accommodations, ocedSt0rcd oy ne surplus
yersue being deposited IN tic STATE BANKS, ana py
them loaned out. Here was an Increased I'M
poriaiion of foreign merchandise, in two years
OF 1853 $50 703-iuoding the country with vast
exces. OF golds 10 the great injury oil all our own
manufacturers, and TO The ruin OF many OF theis;
This increase in bank accommodations caused
a spirit oil speculation all over the land, never
parallelad in any former period Land, produce,
labor and indeed everything, assumed false
value This lasted only a short time; after
which, the contraction ensued, which, IN IT'S el-
fects was most ruinous. None suffered more
severely than the manufacturers; vel shey never
attributed their c;DbaraSsmen;s TO ioe risht cause
H. then, NV position is sound that the sudden ex-
pansions and con,raclons oflhe currency unsettled
business as well as changed The prices ofall manu-
fac:Gied articles, The hrstduty ofGovernment will
be. 10 regulate the currency in such manner
tina, these sudden changes will not take place
How this is 10 be done, is the great question.
"At the present time, the surplus revenue de-
posited n the banks amounts 10 more than seven
millions of dollars ana forms great part Of her
capital this is now loaned ont IL the importers
and mercan ,le men generally Should the Go
rernment call for this amount suddenly II Will
cause another panic. The only efteclual way
Ia prevent these sudden changes in our crcu!al-
Ing medium, which IS 40 injurious 10 our manu-.
faciurers as we'll asto other business men, is 20
separate The Government money from The banks,
80 thai they uav have no influence over lie sur
plus reyenue. The hanks will then be able 10 fur
nish hs merchant and business man with regular
accommodations, and nanics will cease. during
the twenty-iour years existence OF The Bank o.
lis ss s aha sas Caused by The sudden in
crease and decrease In bark paper. The duty If
government, is plain; and that is. gradually 10
withdraw The government funds from these lnsil-
,ulions, II conpaiih!e with Tie laws Q! Congress-
AMI thus promote The interest Of our manufacture
ers, and indeed al business classes, 81 suoslan-
lial and permanent policy"
Nothing is clearer 10 our mind than The init
male connection be,ween the Tariff question and
lie question Of the currency. All experience de-
rnonstrates, that, with The contraction Of the cur
:ency, imporalions decline, and ritc retsa. For
instance, as shown above, in two years, from
1884 10 1886, The currency was greatly expanded,
and with j, f1llowed an increase OF importations
Ct 1868, ass, .03. On the olher hand, from 1887
ID 1888, there was a contraction OF the currency
Of S33 GAG 9S0 and The import, OF tina, year fell
$4,000 Sl6. Let lis now look al The operation
cf a system of high dates: High duties, as
matter OF course, have The effect at first Of check
Ing Tire importation of such articles as they are
imposed on. This produces b1iance Of trade
e favor .! The country, and specie is imported 10
pay Tor the excess oi our exports in place OF the
article whose inlrodaction is checked. The great
er par, u this specie being driven out Of cIcula-
lion hy The cheaper paper currency, forms depo-
81. in The banks. This specie is made the basis
Of a larger issue OF paper; the currency is ex-
panied, prices take 4 start, trade becomes lively
and system 81 heavy imporiations begins once
more. This will be particularly the case with
rs VINO import our goods from country in which
Inc currency is less exnanded, and, consequently,
dearer than our own; because The foreign seller,
receiving larger price for his goods on account
OF our expanded currency, may carry home his
pay in srecie, and may yet realize profit. in
spite Of the high duties imposed. This increase
Of inporla,ons tends TO ioIce the balance Of
Trade asainsiu us. Specie mus; be foriiconn" /"
pay for our impo.talions The banks arr forced
10 con,rac, their issues, 10 strengthen themselves
against The necessary demand for specie. y pa
mic easues, with .all Of prices, and general
breaking up Of contracts and ruin OF !. sines>.
AS soon as the impora,ions shall be reduced, so
as % throw ihc balance Of trade once more in
%. fSv"r the contraction will cease, and things
vii q NJ soon % descend again. In England
The sl.c!s Of :h,s alternating expansion and con-
traction Of the currency are truly tremendous,
and the operations OF the Bank OF England, in
inerensn or reducing The currency are ic!; OYER
The world.
li,sesc views be correct, is it no: Of the deepest
importance, that our Government should look 10
The TWO intimately connected subjects Of unre-
strained currency ard high dule>} Is it no, the
dsty of the Government 10 withhold from the
Banks The public funds, whose effect will be 10
stimulate undue speculation; and, at the same
tiGe, 10 reduce the system OF duties 10 moderate
and permanen; standard, which will ohviate, in
grea, degree, the evils ske;ehed abovel Under
our miIsd currency, il is probable that we shall
always have 10 suffer some OF he t2d effects Of
these uncertain commercial vibrations; ye; it is
the duty oflhe Government By Withholding lis IN
reference In matters which should be moro wisely
and safely ien 10 the natural operations Of The laws
Of traie-if i, cannot prevent The mischiefs, not
only TO The manufacturers themselves, but 10 all
the interests Of The country, it surely should mol
inefpose It's powerful influence 10 stimulate the
causes Of evil. II the duties be reduced to mode
Tale rates, an the alternate contraction and ex-
HanS;nn 81 The currency hp ~ Aim I'd BIZ The