The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1855-03-12
The Tarin, the Currency, ana Trade.

d
er folly than tbst which has beer exemplifed
in the tariff Contests. For nearly forty years,
American politicians have been divided into
two parties, Pr0tectionists and Free Traders,
each abusing each other with the utmost viru-
lence, and each claiming that nothing short OF
the thorough adoption of its peculiar doctrines
corid save the country. All this while, the
isct has been that the country-which was to
be saved-cared little or nothing about the ia.
riff; was most slenderly interested in its provi-
sions; and would have got on equally well un-
der either school Of political economists. When
this has been said-as it has occasionally poll
ticians have secuted the idea, and called atsen-
tcn to the vital Importance of the tariff contest
in Great Britain; inferring of course that it
was equally moment0us here, and forgetting or
choosing to overlook the notable fact that To
England free trade meant cheap bread, where
as here it's warmest adherents could only claim
that it was a judcious commercial system with
out particular hold on public sympathy. In
the one country, every man ielt himself directly
concerned in it's attainment; in the other, 1t
was only by process of abstract reasoning
that its advantage could be explained, and by
an indirect and barely perceptibe change in
values that it's working could be felt. Yet
politicians on the one side IS well as the other,
have striven might and main to make it appear
that the peoples welfare depended upon cor
rect choice between the two systems; aud have
actually succeeded in persuading several thou
sand intelligent creatures that such was the
case.
This is fallacy worth exploding, and very
hasty glance at past history will do it. From
the acknowledg ement of NE independence Of
the United States to the brea.'N ng out OF Ine
war in 1872, Europe supplied this {, auntry Win
manufactures No one audibly Object u 70 an
arrangement which seemed to consist of '0r
exchange Of raw produce on the one side for
manufactured goods on the other. Before
the war broke out, the commercial quar-
rels in which the United States were in
volved had given an impetus to home manufac-
lures; we find the customs duties falling
from $16,ooo,oO0 in 1908, to seven and eight
millions in following years and finally to
$4,000, 900 and 100000 in 1914 and 1915,
and of course the consumption being If any
thing increased during the same period, the diff
ference was supplied by the factories in the
States In 1916, after peace had been declared,
rush of foreign manufactures took place, no
less than $50, O0OO 900 being paid for duties that
year. In terror and ruin, the manufacturers
fastened to Washington to implore relief, or,
as they called it, protection against these TO
reign importatiops. 1t was asking the country
to put its hand in it's pocket and pay go much
to Peter and Paul, because Peter and Paul
were likely to do o bad business But
the Fourteenth Congress found affairs in
. shocking condition all over the country
in consequence Of the war. Mr.. Calhoun, Mr.
Lowpdes and many others agreed to do what
they could to relieve the manufacturers and
traders, and for their accommodation, telera-
bly, high tariff was passed, and natiolal bank
established. The former did not attain its OBJ
ject, Of course, no protective tariff ever did
and the bank afording facilities to merchants
the importations continued TO be large, and in
1918 and 1919, financial .revulsion was the
consequence.
Again the manufacturers and merchants
ran to Congress for help, and Monroe
who, in 1920, was about entering on hi:
second Presidential term, espoused theil
views warmly. He was elected; but wher
Congress came to legislate on the prevail
ing commercial distress, it was found thai
the free traders--as they began to be called
from New England and elsewhere were in ma
jority. Mr.. Clay aud other politicians who has
their fortunes to make took up the question o
protection to home manufactures with grea
zeal, and an active agitation was kept ny
throughout the country. And though undel
the act of 1916 the importations had fallen OF
from s36,000,0 600 in that ear to 5000, 900 il
1921 and 81, 100000 in 1922, in consequence,
Of the prevailing financial embarrassments
thus proving If anything could be proved
that it was not because the tariff was too los
that business did not thrive, Mr.. Clay sue
ceeded early in 1924 in carrying his protective
tariff, in opposition to Webster and the New
England men.
The depression OF 1889 being over, bust
ness began TO revive, and the revenue from i'm
ports again increased in 1926 to over $4,000.
600. The manufacturers of course claimed tina
they bad not protection enough, and in January
1927, they soon brought forward a bill t.
raise the rates of duty still higher 1t wa.
defeated in the Senate by the casting vote O
John G. Calhoun, and a temporary striugency
in the money market reduced the imports tina
year.
By this time, interests had undergone som.
change. Manufactures had been established il
New England whose citizens therefore became
high tariff men !; while the Southern State,
went, as they said, for free trade, that is
o low tariff 10 1928, the mercantile com
munity having recovered from the embar