The daily union. [volume] (Washington [D.C.]) 1845-1857, 1847-12-30

The Journal of Commerce copies our statements of the
imports and exports OF specie, but says there is nothing
new in our argument In justice us, the Journal of
Commerce should have stated that were exposing the
errors OF contemporary We did not aim to give what
was nep, but what was true. And yet there
thing new to us, at least, in article We had
before met with statement in detail, and in this
nexon showing the particular that led to the i'm
port and export OF specie in different years, in the whole
period embraced between 1914 and 1916. Our tables,
recast by the Journal of Commerce teach nothing con-
corning the points in dispute,
But this want of candor in the Journal is entirely
thrown into the shade by the editorial in the Integencer
of Saturday Unable to gansay eude ''the large pa
rade of figures" by which demonstrated by official
returns, the total want OF foundation of It's argument
favor of the protective SYSTEM" it now boldly ayers
that the said system did into operation till the
year 1925 and did not produce its full effect till after the
compromise act of 1882 had been passed
This is bold, indeed By the act of June 1885, addi-
tons made to the old rates of specific duties, (such
existed before the war; OF from thirty hundred
per cent calculated average about foryt per cent
By the act of 1924 further additions made these
duties And vet in the face of these facts, the lntei
gencer can declare that the protective system did not
begin till 1923!
1.-The years 1892 to $780," continues the Inelligencer
swere precisely those in which the full effects of the
| (proective) system were felt in their full force"
This is equally bold From 1921 to 1892, imports,
exclusive of gold and silver averaged about IS millions
year from 1888 TO 1871. they averaged about l25 mil
lions In single year, embraced in this latter period
our imports OF woollen goods exceeded p millions OF
linens and other axen manufactures millions; of iron
| IL,
And all this according TO the lnellgencers theory,
the result OF the high tariff of 1928 Restriction accord
ing to its philosophy increases imports, and free trade
dminshes them!
1.-The imports of 1871 and 1872" adds the Inelligencer
"caused drain of SPECIE and tremendous revuision OF
business"
This is like the rest of the nelgencers bold asser-
tons The imports of these two years were, exclusive
of gold and silver millions, and the exports 2lo mil
lions Making allowance for the profits gained by most
of the exports being carried in vessels, will be
found that the balance of trade favor of this coun
try The exports of gold and silver did, it Is true, in
those two years. exceed the imports in between six and
seven millions; but this owing to inconverble bank
paper driving specie out of circulation
ssThe tariff of 1872" continues the Inelligencer
drought us the great import OF specie of 1913"
For this, there is as little foundation in fact for the
other assertions of the ntegencer. The import of spe
Gle would have been quite great if the tariff of 1912
had never been enacted 1t caused by the utter dis
credit into which bank paper fell after the great bank
vuson at New Orleans, in September 1912 If the tariff
Of 1912 had the effect of bringing specie into the country
in 1si3 why did il not continue to produce this effect in
1884, AS and '46 In these three years, the exports of
specie exceeded the imports in nearly four millions.
| We have shown that in eighteen years of protection
from 1921 to 1892 and from 1912 to 1885, the imports of
gold and silver exceeded the exports in but little more
than twelve million dollars. We have also shown thai
nten years of Comparatively speakng free trade, from
1888 sil and including the year 1si7 the imports of
the metals exceeded the exports in about seventy
millions And, in the eyes OF men of cando and inteli-
gence something than the bold declarations of the
nteicencer will be required to aside facts of this i'm
portance
One of the coroaries of the nellgencer is worthy of
attention:
| "Tbs change of system, combined with the Mexican
war; is threatening with monetary revulsion of no
binary character The rumblng OF the distant thunder is
already heard in our commercial cities"
To this the editor adds letter from gentleman in
Philadelphia a part of which is follows:
The misery produced by the three vile acts Of the adj
minstraon-M Mexican war; subtreasury, and above Ill,
the British tarf-exceeds all credence."
The misery here alluded to has been caused neither
by the Mexican war, nor by the subeasury yet by
the change from system of restriction to of free
trade But it has been produced by independent
of these part of which accurately set forth in the
commercial article in Hunts Merchants Magazine for
December
ssDurng the past month, great change has overaken
the face of financial affairs arising from almost
loss of credit in exchange operations England by which
International payments have resolved hemse
into thei. original elements Of specie shipments, and the
,sorpton of large in transit avoid which, bills of
xchan ge were invented. Wherever trade between
two countries large mutually due both and are
onceed by an interchange of Indebtedness between in
deb,ed individuals This system is based mutual con-
6dence and the undoubted credit of each of the individuals
whose several accounts go make up nations balance
The moment discredit overtakes of drawers the
whole fabric topples down. all bills avoided and spec lie
alone becomes the medium of payment There never was
tne when so universal a dscredit fell upon Eng
ish bills not only America throughout the continent
of Europe, well the commercial world In all the
European cities merchants having dealings with England
began the crash commenced, Tin the early
Augus) accumulate cash balances stop
goods into cash, in order fortify themselves
against the of bills from London The
of capital for which bills running England from
all the world, became at dead because all par
ties interested Immediately srove accumulate equal
against the possible dishonor OF their bills The
Revision rolled forward, and discredit spread, until all
property shipped to England became as it dormant.