The daily union. [volume] (Washington [D.C.]) 1845-1857, 1846-07-23

grow up and flourish With them the permanent in
cidents protection OF strictly duties will
amply suffce, at the same time TO overcome any
disadvantages attending untried pursuits and infant
este bishnenis, and gradually divert the courses Of
trade from the foreign TO the home supplies and
also 10 stimulate capital and labor n embark and
perseyers IN their production. For their growth
and prosperity the protective system Is not needed
But what u its effect on the classes engaging in
them When high duties are first laid on the like
imports from abroad, the prices are enhanced
thereon IN the markets Of the country TO thar
amount The internal products Of the same nature
arc OF course similarly exaggerated, as they do moi
suffice TO supply the markets, and still allow the
forrgn imports TO come In. Enormous profits are
thu. sxtorted from all other classes, in the form Of
high prees, and the most extravagsnt shmulsnts
given 70 the internal production. Under such ex.
trsprdmary incentives, all existing establishments
are rspsdiy Increased, and capital and labor are
quickly employed in commencing Others, wherever
.hs pursuits Of The people and the natural advan-
.ases OF The States viii allow. Even more certain. |
~ than 10 the case OF the former class which
ne have corshdered-for in this class the facilities
are generally far greater and the risk less-wili
excessive production ensue. There will be some
years OF inordinae prosperity, realizing dividends
OF some thirty, forty, or fifty per cent profit; then
3 Ys rom over.cornPeution, and consequent rcvul-
n9ns, winch VIII sweep away most Of the younger
adfenturers and more feeble establishments; and
nnnily after many mutations and depressions, much
houndering and punsins from the extremes Of prof
it and loss, the permanent laws Of trade will pre-
vail, and prices Will settle down to fair returns on
the cost OF production That this picture is not
9yerra~n y apparent from the statements made
h7e fe~ days since by the gentleman from Con-
nerticut, tMr. Rockwell, who, while admitting
that the manufacturers enjoyed intervals years OF
large profits and high prosperity exhibited evidence
OF the large proportion Of manufacturing establish
menus mat 10 me course Of many years, were ruin
ed and stopped, and contended that the average Of
the permanent profit did not exceed three per cent
Ia tins estimate, ] incline to think he must have
greatly erred; still the facts adduced in support of
hs views coneiusiyely demonstrate the disastrous
results TO the manufacturers themselves Of the nha
ions and deprcssions, the fluctuations and agita-
uens, induced by TIE protective system To
the nauon at large, the operation is likewise most
Injurious. Manufactures Of this class may per-
chance be established in the country little earlier
than under more wholesome inducements they
would have been, but mos, dearly is such premature
growth purchased. FIRST, for years, at different pc
RODS, extravagsnt prices, making enormous boun-
ties are extorted from ali other Industrial classes
and then these classes sustain, to some extent, in
common with the manufacturing, the consequences
Of endorsements and revulsions in the trade and
currency Of the country. The retributiye Justice
which ever IN the constitution Of human affairs, fol-
lows exeesscs, unfortunately involves the victims as
well as the temporary benefciaries Of the system.
10 the third class, whose establishments sustain
ed by the state and wants OF the country, are firmly
4 led and engross the home markets, the system IN
one Of unnixed evil. Their successful industry and
mAtured growth have excluded the foreign imports
and high duties, for the purpose of to the
or monopoly TO them, are idle and mop
eratiye Such effect is not, however, fully gener
ally known, and the delusive idea is engendered,
that such protection must give TO them as to other
preferred classes cxorbitant gains. Hence there is
. temptation, often yielded to by the public to en-
bark capital and labor in these pursuits likewise
ID sss os ees s.' nGSS Ss 50
rs resulting consequences Of guts and reval
sions, Is the result to them also. In addition
hey, together with all the other really pro- |
iuctivs classes ofthe country, subjected to the
sSectons and bounties, which swell temporarily the
Golfers of the really protected classes Their inter
sss arc therefore, every account directly adverse
othe whole system, and il is full time they should
be separated in the feeling and action from the other
classes, with whom they confounded This class
IS, believe, by far the most numerous Of the manu
and embraces nearly all engaged in the
production OF the coarser and more essential articles
Of manufacture, including coarse cotons, nails, com
mon glass; and many Others.
From the exposition given Of the workings Of this
protective system on the manufacturers themselves,
are we not authorized, Mr.. Chairman, to conclude |
that its -petng and stimulating are needed to sus-
ain only those for whose production the country Is
not ripsS They can permanently derive no real |
benefit from the forced diversion of their capital and
industry 70 enpoyments entang only loss, to be |
made good by enduring exactions from all other
productive classes while to Others though giving
temporary monopolies and large bounles, high
duties are Of more than questionable utility; and to
others still, yet more numerous and important,
cause only injury and oppression,
But well, indeed, would il be ifthe baneful inhu-
ences Of this system Of mistaken favortsm ceased
with its deuded claimants. 1t might then be left to
time and experience to awaken them to wiser per-
captions and more rightful action. The case is in
deed far otherwise. To the great masses of the
people, and tothe other great branches of industry
the true sources of national wealth and individual
prosperity, the workings Of the system, direct and
indirect, are, with few partial ortemporary compen-
sations, even more disastrous. And the more
our survey of these effects, the
more conclusive must be the condemnation of
the system. Shall we look at it in its tendency to
dsrange that a-important yet sensitive element, !
our banking issues, which pervades, and, accord
ing to its degree of soundness, affects for veal
Of wo all the monetary and industrial operations
81 the spublicl Sir, reason will teach, as expe- |
rience will prove, its deeterious operation in in
dpcing the mutations and revulsions which have SO
often racked the whole framework of trade and |
industry in the nation. The very aim and end Of
our banking institutions are to realize profits to
their proprietors and stockholders This they can
best effect by excessive loans and issues. They
shing their liability to be called on for the redemp-
ion Of their issues in coin or other real values,
and by inducing eager demands the part of
the public for loaEs, at the time that their
apparent resources are enhanced by large deposites
and the seeming abundance ofmoney in the classes
around them. During seasons Of apparent prosper
ty and general confidence the domestic trade and |
exchanges of the country impose inconsiderablel
abilnies the banks to the redemption of their H.
sues, : for; within the range of their circulation,
being received nearly by ALL they are used in all
dealings and measure all values in lieu of the coin
hey represent. In trade and exchanges, on the
other hand with foreign countries these represents
lives of money, having abroad no circulation Or re-
cepton, when taken here, are made TO conform TO
the only international measures of value and really
into gold and silver, other equivalent
values In bills of exchange or exports determined |
by specie standard. In the dealings, therefore, Of
HE people with foreign countries, and especially in
The import trade in consequence Of which returns |
in real values are rendered necessary, are to be |
found almost the only practical demand for the
actual convertibility and redemption by the banks
,f these issues, consequently the most essential
,hecks on their excess Now, all confess that a
eading object and manifest tendency Of the protec