The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1856-07-05
James Buchanan the Friend of the La.
hOrar.

from page 1856 Of Congressional GLOBE OF
1910. This we will do with great pleasure,
and particularly since our neighbor has not
only neglected to quote the main and most
important portions of Mr.. BUCHASAS's re-
marks, but has in a most wilful manner gar.
bled and misstated that portion which they
have quoted. We asked the Ners to quote
that portion of Mr.. BUCHANANs speech
which advocated the adoption in this coun-
try Of the European prices of labor. In
complying with this request, the Neus has
misauotej a sin lie sentence from Mr. BucHA-
NAN, and, then, instead Of giving Mr.. BU-
cuASAN's own language as to the meaning OF
what he said, they publish the construction
put upon the speech by one JOHN DAVIS, OF
Massachusetts,, whom they ironically call ho-
nest JONI DAVIS.
Mr.. BCCHASAN never used the expression
imputed to him by the Ners, emblazoned in
that journal in capitals. He did not say,
"Reduce our nominal standard Of prices
throughout the world and you cover the
country with blessings and benefits" The
expression which Mr.. BUCHANAN used will
be found correctly reported in n quotation
made below 1t is made in connection with
other sentences and expressions, conveying
the meaning Of the speaker, Of which our
cotcmporary carefully avoids the publication.
The speech was one in support Of the Inde-
pendent Treasury bill, and is so fraught with
sound sense, mature judgment and advanced
notions of political economy that we shall
make copious extracts therefrom, including
that portion which is quoted by the -News:
But why need we resort to foreign nations
for illustrations Of the truth of this position.
when it has been brought home to the actual
knowledge of every man within this coun-
try? Hare are not all learned by litter er-
peyience, that Uhen oUr PeriodicGt erpan-
sions commence, tie price ct' all property be-
gins 10 rises IT goes on Increasing nith the
iRcreds5Hg erpdHsioHs uHtit tie bubble burts,
and hen bdRE recommendations, ant bank a..
sues are c,Htracted, tie amount cf property
is reCiuced, and prices rdU TO their former ie-
rel. This is the history Of our own coun-
try, and we all know it. a certain amount
OF currency is necessary to represent the en-
tire eXchangeable property OF country,
and If this amount should be greatly in
creased in the exchangeable productions OF
the country, the only consequence would be
a great enhancement in nominal prices. ]
say nominal, because, this increased price
will not enable the man who receives it to
purchase more real property, or more of the
necessaries and luxuries of life than ne could
have done before.
Let me nov rccur to the proposition with
which commenced and will repeat that
do not pretend to mathematical accuracy in
the illustration which ! shall present. The
United States carry on trade with Germa-
nv and France the former 4 hard money
country, and the latter approaching 1t SO
nearly as TO have no bank notes IN crcula-
ton under the denomination Of five hundred
francs, or nearly one hundred dollars. On
the contrary, the United States is emphatic
ally paper money country, havirg eIght
hundred banks of issue, all Of them emit
ting notes of a denomination as low as i've
dollars and most OF them one, two, and
three dollar notes. For every dollar OF gold
and silver in the vaults these banks, tn, Y
issue three, four, five, and some OF them as
high as ten and even fifteen dollars OF pa
per. This produces vast hut ever chahS
inc expansion of the currency and a couse-
oucnt increase of the prices of al articles,
foreign demand above the prices Of similar
articles in Germany and France. At parti-
cular stages Of our expansions we might with
Justice apply the principle which | have
stated to our trade with these countries, and
assert that, from the great redundancy OF
our curi encv, articles are manufactured IN
France and Germany for half their actual
cost in this country. Let me present an
example. In Germany, where the currency
is purely metallic and the cost Of every thing
is reduced to hard money standard, a piece
of broadcloth can be manufactured for fifty
dollars; the manufactured of which in our
country, from the expansion OF our paper
currency, would cost one hundred dollars.
What is the consequence! lhe foreign
French or German manufacturer imports his
cloth into our country and sells II Tor one
hundred dollars. Does not every person
perceive that the redundancy of our curren-
CIV is equal to one hundred per cent. in favor
Of foreign manufacturers. | would to Hea-
ven that could arouse the attention OF eve
ry manufacturer in the nation to this Impor-
tant subject.
The foreign manufacturer will not receive
our bank notes in payment. lie Will take
nothing home except gold and siiver, or
bills of exchange, which are equivalent. lie
does not cxpend this money where he would
be compelled to support his family, and to
purchase his labor and materials at the same
tate Of prices which he receives for his ma
nufactures. On the contrary, he goes
home, purchases his labor, his wool and all
other articles which enter into manufacture,
at half their costs in this country; and,
again returns to inundat. us with foreign
woolens and to ruin our domestic manutac-
lures might cite many other examples,
but this trust will be sufficient to draw the
public attention to the subject. THIS DEPRE-
CIATIoN OF OUR CURRENCY Is, THEREFORE,,
EQUIVALENT TO A DIRECT PROTECTION GRANTED
TO THE FOREIGN OVER THE DOMESTIC MANUFAC-
rugER. 1t is impossible that our manutac-
turers should be able to sustain such an
unequal competition.
"Sr, solemnly believe that if we could
but reduce this inflated paper bubble to any
thing like reasonable dimensions, New Eng
land would become the most prosperous ma
nufacturing country hat the sun ever shown
upon Why cannot we manufacture, and
especially cotton goods, which will go into
successful competition with British manufac-
lures in foreign markets? Have we not the
necessary capital? Have we not the indus
try? Have we not the machinery? And,
above all, are not our skill, energy, and en-
tcrprise proverbial throughout the world !?
Land is also cheaper here than in any other
country on the face of the earth. We pos
sess every advantage which Providence can
bestow upon us for the manufacture of cot
ton; but they are all counteracted by the
folly of man. The raw material costs us less
than it does the English, because this is an
article the price of which depends upon TO-
reign markets, and is not regulated by our
own inflated currency. We, therefore, save
the freight of cotton across the Atlantic, and
that of the III nufactured article on its return
home. What is the reason that, with all
these advantages, and with the prospective
l.,.s .rhich our law afford to the domestic