New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1856-08-12

euibud.
IT, fist effect was 70 nearly double our foreign i'm.
polt.tons in three y.an The had the efet, by re-
duciiob Of prices and glut Of the market Of cushog
the rival manufacturing industry al home. Mills and
vol shop- crippled and closed; the capital am
labor eTivs from hem sought employment In agcu!-
ture; the sales OF public lands announced 70 more than
sevtn-foo the average quantity Of any other period OF
ten years before or years afer~ard; aud the term
wound UP with general bankruptcy OF the National
Treasury and Of the people, brnetg with complete
p, hca rev Oluon, ana compe ling total change 10
the financial policy Of the Government.
The fluctuations Of revenue under !: are strkingy
marked by the fscts that the income rnm al sources
lever efterEard roee t. within eight millions OF thai
of go until the year sj05l ana hsd not "a len so
low a. in the year ls -iuce the year ls2l it 10 fact
touched point below the receipts into the treasury OF
the year 1908. lie fluctuations in period OF hve yesrs
touched both extremes Of the revenue Of the natoa
running Though thirty four year, OF chaugei that II,
tie reverne had not been 20 low for twenty five years
before the year le4l, nor high for fourteen years
after 1886.
Grtotes fuetuation in Prizes under The forrest TIrJs
The butLess of the country felt hese vclsstudes N
our foreign commeI &C. and ANSWERED TO them IKE the
echo. N thin period Of SIX years, while tas taFln
wss developing lis extremes Of change, iron 1880 10
1912 the hgk,s ano owest prices OF eighteen years
were touched Cotton, flour, proysioos, Tobacco,
conn odities Of all kinds, labor and real estate, went
Up in price almost in the exact ratio that importetlons
ncieasec-thai IT, to nearly double the amount OF 1888
in 1885, in 1872 the imports falling to one hall IN
II, 49,
country stood at hall me market '@iue VI SIX yeai'
before. . =. .,
Not an interest Of the country on which s national
or Individual welfare depended bu, had IN that bno
ptrioe undergone conyusots unparalleled since sin
lar caus had resulted in the great Business cata5ro
pie Of le2C-I. -,
Such is the history of the policy which abandoned
the revenues Ct toe Government aud the industr1s
interests Of the country to the operation OF causes not
within its conto
Undue Ezpaasion of Bank C,rcSiGtton insep1rabe
from erces.re Imports Of Foreign Merehand"e.
Ii has been customary with the advocates OF low
taf duties to charge the imitation OF prices, the rage
of speculatioD and the resulting evusons 10 The bun
De,r Or per, of the country, to .xc' ssve Issues oil
beuk paper. The fact that such oger-s' ues always
concur with ibodna Use OF prices " remarkaoe In
deed and offers a pausble explanation Ut the mis-
CHEZ; but the ether fact Of the nyarlaoe concurrence
Of greatly enhanced prices aid excessive ba issues
with the reign OF low tariffs cJnnect these phenomena
in our financial history in category OF relations
which very clearly shows thst they are IN their nature
inseparabe. II this be so, the GOvornmet, which has
the Greet control Of OF tnese agencies In TIE ms
CHI, has an inoiiect but absolute control over the
otbers, and should exert II.
Ffrtd ratio of Bank issues 10 Foreign Imports.
In 1890 the bank circulation was estimated oy Mr.
Gallstn at sci, 100000; in Apri, 1884 the Sscre-
iary Of the Treasury Mr. Tany, estimated 'hc crcui'
tIo at $50 600 600. In the four years
which Immediately prect ded the hrst reduction under
tie Compromise Act, the imports consumed amo lnted
% s:9l 600 600. At the end of the ueN i've years,
1887 he bark circulation had swollen To sl49OOo Ooo
sun the iuIOus for consumption for ls3i-35-3G-31 70
| s4el. OCO coo Thus The iDcrf a-e OF the imporfs
amounted to IS per cent for the period of four years
and the increase Of the bank circulation 10 20 per cent
and If re add The increased pIcLase OF puoic lan1s
Of tlc later the former, we have the pro-
Ioron of the circulation to the expansion OF business
populations, induced by the recuced tam, very eS'
actly balanced
the Uion SUI pd,d tpecie pa5n'nt-, and did not
pormal emily or .fec,ualy resume TIL the Spring OF
ls42; then their circulation rad fallen to >eJoooooo,
ncr i'd II liz higher thai ee9 200 600 again dulnS the
| operation Of the iarff OF lef2.
Since the year 1876, the increase and decrease OF
bank circulation holds 20 exact ratlo 10 the several
iLsrnc-s and rates Of Increase aid dn'Duiion If lm
potts fol- consumption each year of the whole period
| ss involves a dntc, and unquestionabe connection
betwten ibtm.
The tabular statement appended to this report ex-
hbts the coDstaJcy OF this come cton for every single
yea Of our fnaI al history nce 1888 and for periods
of wears be fore and since in ratio nearly mathe
nstIca, that there teems no doubt OF the law which
rules The subject there 10 none OF the facIs which
serve to demonstrate 1t
1t will be seep by reference to the tabular statements
of this report bow little power O'h.r causes ~hch
we're undoubtedly active modifying the results I'd
TO dis urb the working of that one which Il here
assum, TO be The principal
The expansion and contr of bank credits and
issues certainly Influenced by many other cause,
bu' the tact thst they pave occurred during the last
forty Year, year By year. 10 an nva riabe relation 10
the fluctuations in The amount of onr foreign imports
goes er 10 establish the iGes that the van ions IN our
imports rue the fluctuations in our paper currency.
AID tbs law is, moreover so en.Igtlc that it even
oyerrnes the fleets naturally expected from the large
sppp Of gold furnished TO the cunen ~ from the CALI
foa mines for il Is as true as II is surprising that
since 1870 before, every year Of decreased imports
has been marked by an equlvale mt hcrea-e OF bank
circulation, and every year of diminished iinp,rts has
been marked by q diminished bank crculation--cor
responding in emoun, nearly as it ID possible to
otive primary and ruling cause can up rate while
minor and subordinate ones are also IN play.
Lou Tariffs responsible for ercsssire Bank Issues.
That low tariff duties are responsible for the excess
Of ioIgr impOrta iJn that these augmented Imports
ipouce ssive bark isues, and excessive b<bk Id
sues swt prices inordnatey 10 the seres Of depend
ency which is here ALE ged, is rendered upques ion-
abb by the fact that tbt ions # imports paper
circulation, and prees never have occurred ~hsL our
tsrffs were high enough to foster bur Always when
they 20 lO~ as to encourage, home production,
OIL to cubs tute thu foreign commodities for domestic
piodJcis in our make
Under tn. low tariff OF 1916 imports in three
years TO the vast amount of s36s, 0 000a sum
never aft.rwarc approached Within Sl20 900 900 by
a. three successive years t' 1884 1895 aud 1886 the
frit three years Of TIE compromise tariff la those
yesrs lsl6-17ls the bsDk cuaton am TIE foreign
in ports isnged greatly higher than through the whole
period Of th. prt ctve tariffs of 1924 and ls2s. Tue
txl am tioo Of cr dit aid the p<ny.i- Of domestic in
d. stry I'd it, acme in 1875 IL 1920 he p4p cir
Gu d lob aud the iup"rs f. to one bait tue cJun
try sIugg ed through measureless distress un'i tue
ct.ckeo inportat ois al revived hons oustry Of
the period fr 1924 1892 restored the general pro
p.rity ard the rational ne, king ushed the
itopa cebt and gave the first considerable free list Of
Imports which the abundance of our puoic resources
La, stour. d t. u.s.
Again: in 1895, under the first reduction of duties
BY the Compromise act the imports took another sud-
cen rise which reached an enormous hight in 1896
the bank circulation early doubled that Of three years
before and prices Inflated in proportion. AZ er
three years OF fuctuarion the inevitable contraction
sgain CONNER Geo. witch continued by ito downward
pressure into the year s43 Wien picea, imports and
circulation fell even below half their average