The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-12-25
The Financial CrisBs.
LETTER FROM Mr.. APPLETON TO THE SECRETARY OF
THE TREASURY.

BosroS, Nov. 4, 1857.
have the honor TO acknowledge the receipt Of your let
ter Of 2Sth ut enclosing circular 70 the Collector Of
Boston, requesting my opinion Of the effect which the
present financial crisis VIII have upon NE revenue fer The
next twelve eighteen months.
II very difficult question, and on which cannotform
very definite opinion believe that the present crisis
duced wholly by the mismanagement OF the New York
banks, continuing their violent contraction Of the
AFTER a % Saa S. naa
MIDDLE OF september, and could only be made
at loss compared to bills Of exchange, This
specie is flowing into the country from Eu-
rope continued long enough il will be introducing
pure specie currency throughout the whole cuounry,
which might perhaps done in the course OF twelve
month but during which nearly all trade and manufacture
must cease, at present is not probable, however,
that this system will be continued much longer CONTRA
ry il To the int ress Of tho banks and Of tho whole
country But will be slow process TO recover from the
paralysis and wreck brought upon by this intense
traction OF the currency Perhaps IT WIN not DO TOO largo
estimate to say that the revenue will be diminished to
an extent equal to its ordinary product for six months
the same time the country being III state OF the highest
prosperity except tor this arrangement Of tho currency
when that s corrected It will return 10 its usual action
with great elasticity II is however, undoubtedly true
that both the imports and duties for the last two years
have been in excess OF a wholesome trade.
have been many years out of active business and can
not undertake give opinion the working OF the
tariff upon the revenue. cannot, however, avoid
expressing the opinion that The present tariff besides
being founded on wrong principle is IN rs construction
the most clumsy, and in It's practical operation the most
nconvenent Of amy tariff which has been adopted in the
pretty full experience in the many difficult questions
which you have been called TO decide What can be
absurd than the different casscations of woolen
and worsted and the various manufacturers OF cottonY
What Improvement and simplicity IL would Introduce
make all textile fabrics of cotton wool linen, silk &c
subject to the rate of duty which should place ut
% per cent and make thing under 20 per cent Free
was u member Of Congress in 1892, 1883 and 1910,
during each of which the tariff the most in
teresing subject Of discussion.
The tariff of 1882 was framed upon tho principle
of raising sufficient revenue by duty on ar
tIcles similar those made in this country for
the purpose of aordng protection TO American labor and
the capital nvt sted in manufactures voted for that
bill in company with Mr.. Polk, Cave Johnson, and many
other leading OF the democratic party In fact, the
protective system especially by that party
1t altogether system essentially democratic, for the
benefit Of labor although Mr. Secretary Walker was able,
in 1916, TO persuade majority of Congress that was
only capital which was favored by it.
There Is consideration growing out OF the present
tariff which worthy the attention of the cotton planters.
Large quantities of cloths for printing and dying have
been imported al duty Of 10 per cent This is done in
consequcn of their being made of half TO two thirds
from Bombay cotton, which of less value than
three four pound difference just about equal
the duty The only remedy ter this the importing Of
from India, which of manufacturers
preparngbut for. the present dis tr banccsbut which
will undoubtedly be done If the trade is open.
NATHAN APPLETON
Hon. Howell CoBB Secretary Of the Treasury.