The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1855-02-27


during which tour different tariffs have been In ope
ration-ewo protective, one compromise and one 70.
venue tariff Tho bank returns sre made up TO the
LIST January, and the trade returns up to the sofa
OF June each year. II viii be seen that from 1870
to 1887 both inclusive thai thu loans aud discounts
Of the banks rose from two hundred millions rs.
pidly mp to FIVE hundred millions. 10 about seven
years the banks more than doubled their disc 1unts
In the same time. the value OF imports more than
doubled, increasing in seven years from seventy TO
ono hundred and thirty nail Ion Of dollars. This
great and rapid increase was under the operation
OF high tariff. The compromise nc, Of 1882 on.
forced high duty during it's early operation, and
II was not until after 1887 tina. the rates were re-
duoed-beltw what was called protective stand
ard. From 1887 TO l843 tire bank movement fell off
more than fifty per GEN. having 10 that time been re
duced from five hundred million to two hundred aud
h'ty million OF dollars and the mportations we're re-
duced in the came time about fifty per cent, having
fallen from one hundred and forty millions in 1887
to sixtyf millions In lS43. This decrease was
under the operation Of revenue tariff being the
last nve years OF the compromise act. From lS43
TO lS47 there was gradual but steady increase in
bank credits, and the importations advance from
s'xtyfour million up TO one hundred and forty.six
million OF dollars. This was under the operation OF
Q high protective tariff. The period included be.
tween the years 1888 and lsi7 presents some very
extraordinary results in connection with the effect
CT tar rs upon our import trade From 1898 to ls43
under low tariff, the imports fell II: m one hun.
dIed and thirteen million TO sixty -four million; while
from 1872 to ls41, under high protective tariff,
the imports increased from sixtyfour million TO
one hundred ard fortysix million. Now, as these
tariffs worked just the reverse Of tina, claimed BY
protectionis's, 1t is necessary for MS TO show what
was the real cause Of these fluctuations or va
riateD s In our foreign import trade. From 1888
TO ls43 tie banking movement Of the country fell
on from four hundred and eightyfve millions TO
two hundred and fifty four millions of dollars: hen
she decrease IN import atoms. From 1912 to 1847
the banking movement increased from two hundred
ard 6fty four millions 10 three hundred and forts
four millions: hence the increase in innovations
The real and only cause ia found in the variations
Of banking credits. From 1886 out the present
tariff has bee in operation and as II was gra luatei
previous to Its adoption, to 8 revenue standard, II
hiss been particularly Objectionable to The prot,
tonists, and bias been source OF considefable
ltical capital to the party press. In lSi7, TIE E.
year Of the operation Of the present tariff II i'm
portstioDs amounted to ono hundred and forty ak
millions Of collars. In 1854, the eighth year u It'd
operation, the importstions were valued a. three
hundred and -four millions Of dollars increase 10
TIE AM uai importation, in that short time, of one
hundred and fifty hit milllona This is attributed,
by the prote ctionsts entirely {, the low rates Of
duty levied upon foreign manufactures but Is can be
easily shown that the banks have been tie cause Of
this enormous expansion in our foreign trade. The
IarI IN In .lnl DUDa
and in 1854 to 1907 2s7 42s showing increase In
1854 ever ls47 Of 1927 00i 49, being equal TO nearly
ole hur dred per cent. II Is certainly very extrsor
drary what uniformity exists between these two de
psftments OF finance aud commerce. They movs
tcgether, upor down. An expansion Of bsnk credit
il sure TO produce an increase in importation and
cont, action in cIeds-a contraction In our foreign
trade The increase In bank loans since ls47 Is the
sole Of the increase In imports II would have
been precisely The same had the average rate Of duties
upon foreign manufactures and merchandise bsen
double what 1t has been In the ssme period The
above table will b valuable guide to Legislators
ard We can conceive Of nothing more conclusive in
its arguments and results. II we wish 70 contract
our importstions We must contract our bank loans
Until something Ii done to regulate the banking In.
stutions Of the country We shall be subject to those
violent AID excessive fuctuaiions.