Eastern times. [volume] (Bath, Me.) 1846-1857, 1851-11-13
EASTERN TIMES.
Bath, Thursday, Nov. Is, 1851.
Political Panic.

money pressure TO the workings OF the Tariff
Of ls46. "The country is drained Of the spe-
Gle, to meet The excessive impertations under
our present low Tariff" say these journals,
and this, it is asserted, sufficiently accounts for
the panic that the money market has recently
experienced. Now we think it can be sufi-
ciently shown, from the best commercial au-
thority in the country, that this panic In the
market is attributable TO totally different
cause than that asserted above, and fnrther-
more, that the reasoning Of whig prints, that
under low duties, importations are invariably
excessive, thereby turning the balance of trade
against us, so as TO cause a drain OF specie
and convulse the monetary system, is false
and unsupported by facts.
First, we will introduce the testimony OF
the Journal of Commerce, the most reliable or
gan of commercial policy and interest In New
York. In commenting upon the wholesale as
sertions of the New York Tribune, to the ef-
feet that the heaviest merchants of that city
were breaking, &C.. it says
"The Tribune well knows that there have
been no failures of any Importance, and none
whatever which can be traced directly or indl-
rectly to the effects of the Tariff of 1916. We
do not remember a season for many years,
when unexpected and startling failures have
been so unfrequent as during the current sea
son. There is quite a pressure for money,
such as must naturally occur at intervals under
any Tariff or system of commercial policy
but our merchants, who have had several years
of prosperity, have stood under it mantully,
and met their payments with great promptness
There are some croakers who have taken this
opportunity to create further panic; and we
regret TO see the Tribune arrayed on their side.
If it must live in an atmosphere of gloom, lei
it stick TO the Rochester knockngs aud other
spirit wonders, but we protest against this
wholesale attack upon commercial credit"
In addition to this, we have the following
strong language from that able commercial Pc
riodical, HUNTS Merchants Magazine, directly
TO the point, aud which cannot be gainsayed.-
In an article on the recent money pressure it
says
"That the banks are the authors of the
present prevailing panic in the money market,
there can be no question. There have APP
peared no signs in the fiscal armament to indi-
cafe coming storm. No comets trail, with
war and pestlence in its wake. has swept
through the untroubled air. No evening
blight-no midnight mildew has visited the
honest fields The resources of the country
are greater than at any former period. Its ag-
ricultural yield redundant TO repleiion its
commerce spreading lis white wings to a rich
return; its public works productive beyond
example; individual, State and Federal credit
al an envable attitude, with seven millions of
excess of specie over 1850, and California 10
augment the store. Contract this picture
with that of 1887, when were importing
our bread from Eur0pe-when orr hall-fnished
works were consuming themselves in interest
and decay, and no means TO complete them
when Federal and State stocks and private
credit were cunvulsed by the threat of repudia-
ton and the faint of suspicion clingiug 10 our
name. Then why this panic at a season SO
buoyant-so full of auspiciuus promise /
When every wind that whistles on the noun
tans or signs through the valley, speaks of a
future prosperity and greatness which the
croakng of thousand banks can not gainsay !
The money making power should be visited in
the State, and taken from the custody of cor
poraiions. The period is not distant when
some other generation will look upon the re-
Prospect, aud marvel that we should have toll
Grated for single day such colossus as the
money-making prerogatlve of banks"
How much more credit is evidence from
such sources entitled to, than the mere asser-
tons of particular prints, made for political
effect, and unsubstantiaied by good logic or the
least show of figures.
I. l.. I. Il. :.
confidently asserted by the advocates of high
tariff in our country that low duties inv ariably
produce excessive importations and conse-
quenily turn the balance of trade against us,
and see if it is has any foundation in fact.
To go back to the first tariff, known as
the tariff of 1916, speaking generally, we find
that importations under it, instead of falling of
from previous years, were enormous, produc-
ing general initiation of trade, and resulting
in the fearful commercial revulsions of 1919
So, too, at a later period, we find an excess OF
imports occurring under system of high pro-
tective dnties-in the years 1884, 5 and g.
The Compromise Tariff of 1888, although il
operation, had only reduced the excess in the
rates of duty beyond 90 per centum, one tenth
part in the years 1884 and '35, and one fifth
part in 1886, still we find the following bal.
ance of trade accrued against us in these three
years, as appears by the figures 5
1884, '35, sc
Imports, S566, 397, ITO
Exports, 354 ,69l 500
Excess imports, S21I, 705, $50
The reduction in duties under the Compro-
mise tariff just alluded to, was gradual up TO
the year 1910, and it appears that the importa-
tons steadily diminished as these duties grad
ually lowered.
Says the Bangor Democrat, in commenting
upon the same subject
"We admit that it appears paradoxical, at
first blush, TO affirm that it is not the tendency
of high duties TO diminish imports. Directly,
they do undoubtedly have that tendency, but ii
is more than counteracted by the effect which
they have npou the currency. High tariffs
are invariably the siepa for Bank nflations.-
Bankers delude themselves with the belief that
the duties will keep importations down, and
that they can safely expand their paper issues,
and IN the train of their expansions, is sure 10
come that commercial extravaganza of which
we witnessed the effects eighteen years ago.
During the twenty-four years of the prolec-
tive policy commencing with 1916, we had an
almost uninterrupted succession of excessive
inn nd IL. r