The daily union. [volume] (Washington [D.C.]) 1845-1857, 1851-08-16

Tho Panic ard the Tariff
# seems TO be fixed principle in the system OF wing
tactics to manufacture panic pending the Pennsylvania
elections in order to make the present revenue laws un
popula and affect the OF the Keystone State About
wo wears ago efforts were made at great expense TO
vince the Pennsylvania golfers that they on the
verge of ruin and that they inevitably sink into the
abyss unless the tariff Of 1916 was speedily repealed
One of the OF the press which was most vocite-
rous in its cries of ruin and in IFS denuncatons OF the
democratic policy was at the time those cries and denun-
Citations were uttered, making large investments in coal
mining operations This fact is significant in itseif but
subsequent events vindcated the tariff of 1916, proved
the depression in the coal interest resulted from Gauss
entirely independent Of that act and exposed the trick
which the monopolists and advocates OF special pvi
eges attempted play off the good people of Pennsy-
vana.
temporary stringency in the money market OF New
York has been ndustriously magnihed and zealously
trumpeied forth to the world of the lamenlable
consequences OF the democratic policy oetod five years
ago by the prophets OF federalism. The monoposts as
se that domestic industry being crushed by the specie
export, and they chronicle, with great industry for
Pennsylvania eyes, The purchases of railroad iron in
sources Of the country. We will not at this time enter
into an argument prove that il is for The advantage OF
the country to purchase in the cheapest markets We
have but little TO add to the of arguments which
have already been presented tina, point But will
remark passing that it would appear to the unintia-
ted somewhat strange that the wing party which pre-
tends be the peculiar friend and guardian Of internal
Improvements, wishes TO levy tax railroad iron
which would at give fatal check TO railroad
municaiion. Since 1916 railroad communication TO the
extent OF 1857 miles has been opened, at cost Of
$780, ,Ol7 and during that time roads have been COM
menced and in the course OF construction which
will add largely 10 these figures. Could this work have
been accomplished with tax on iron approximatng 10
that which the corporations demand Can the works in
progress be continued if that should be now imposed
How then, do the who boast OF their friendship to
internal improvement justify their conducts How is the
phenomenon TO be accounted for The is plain
The wing party nothing for internal improvements
Individual members of the whg party for particular
enterprises in which they pecuniany interested but
party, ii the internal improvement, question only
for party purposes II wishes break down and DESTROY
State improvements and crush individual enter pses in
order to build ups favorte idea of class legislation To
that end wished TO place internal inprovem under
tn. control Of the federal government the first step TO-
wards enormous expendtues-he objec, being to in.
the power OF the central authority and build up
system OF high duties for the benefit OF monopolss and
to The destruction OF labor.
But TO return TO the money pressure in New York
There abundan, facts TO prove that not caused
by the tariff Of 1916 and there are plain add pa,en,
causes, utterly and entirely independent of that act to
which i, can be traced. II the law OF 1916 tended TO
create a money pressure. it would have manifest
ed that tendency during the Mexican war, when we
were making large specie disbursements in foreign
country and when the great commercial nations OF
Europe ottering the verge OF etrevable bank
ruP,cy 1t would have manifested that tendency during
the last year OF low prices for exports OF breadslu
But there are the surface which for time
past were operating 10 produce temporary pressure
Their effects might have been easily guarded agains,
but for unaccouniabe reason, for reason
to be accounted for only by s,trbung
and disregard 10 mercantile and commercial interests
the New York banks have sought give greater effect
10 those causes. We mention those causes in ORDER
L. The heavy losses by the San Francisco fires.
D. The losses by fall in the price OF cotton.
g. The defective management Of the Philadelphia min,
coming double eagles be exported instead of smaller
coin for domestic exchanges.
l. The system Of banking founded on deposes Of
stock instead of being based spece-thus driving the
specie abroad
These causes would, in ordinary times, exert power
fu tendency to create pressure They have been coun
terac'ed in great degree if entirely by the sauary
influence OF the independent treasury and the great pros
penty which has flowed from low duties But the New
York banks have entered The lists and disturbed the
raons OF trade On this point cannot do better than
quote the lucid statement of New York corresno,d
eni--the ables and most reliable commercial vr;,sr
in America In his letter OF the l2h, after stating the
oans specie circulation. and deposes Of the New YORK.
banks, he says:
n figures the increase Of loans this city from the
close OF 1919 the close of June, Is5lvz during thirty
months-wn thirty millions Of dollars. million pei
month paid by the banks than they received This
paper discounted from thirty ninety days. and
may average sixty days. in which 81 100000 due
At the banks every day by the city merchants The
which thesc possess hose liabilities mostly
notes for goods sold and make those available
they must, under system Of doing business redscoun
II the banks utterly refused TO discount and the
could procure money from other sources the entire loans
the banks would be quidsted In sixty days. and ali de-
msnd Tor money would cease. That is. however an i'm.
possibility No doubt nearly all the paper held by the
chants IL sound. and will be paid natures and the
avais enable them discharge their debt, TO the
banks but the latter irs and good notes or