The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1857-10-26
p. Ma nks on the Crisis.

We make some extracts OF certain points
made BY Mr. Banks in recent speech de-
livered at FAneuil Hall, Boston, in relation
to the present financial condition of the
country and its causes "
There could be no Just comparison be-
tween the condition now and what It was in
1887. The speculations Of that period were
fruitless, both as regards agriculture and
manufactures. Capital in the latter men
TONED period Was in city lots, whereas now
it was invested in the Industrial interests Of
the country. There was in 1887 but $50 ,000,-
900 in specie in the whole country with
$l49, 000, 900 Of circulation in bank paper.
Now, Mt least in 1856, according to the state.
ment Of the Secretary Of the Treasury, there
was $3.50, DOC. 900 in specie. Probably there
was now ~ much a. $2S9, DOC, 900 to $780,
100000 OF bank notes in circulation In
this State the banking interest was in a safer
condition at present than in 1887 and the
confidence of the people in this particular
was greater and the feeling OF hostility to
the banks was far less. In regard to the
cause Of this crisis, different people held
different views according to their political
bearings--and here Mr.. Banks said that his
purpose was to speak of the policy, and not
in apprehension Of parties or Of men--and
also according to their conceptions Of none
tary affairs.
After alluding to the extravaganza Of the
people, the spirit of speculation and the
effects Of bnnk paper, all Of which had some
share in producing or hurrying up this wide
spread disaster, he said there wns vet an
other cause deeper and more potent than
all those, and underlying them all, and
which was interviewer with the policy of the
! government and the affairs Of the country,
which fostered and promoted the importa-
ton Of foreign goods and discouraged our
manufactures, and deprives American la
borers of employment.
In 1853 new Administration undertook
/ the cares Of government in this Union, and
found US with an expenditure Of &54 ,000,-
600, and on tho lst of July of that year q
surplus Of gold and silver in the Treasury
Of $2l 100000. This state Of things wa,
the inevitable result Of our commercial ant
financial system. The expenditure Of the
Government must either have been largely
increased, or IN alarming, if not fatal, ac.
cumulation in the National Treasury mus,
have been inevitable and this accumulation
in 1857, after heavy payment of National
debt, would reach IT,. sum Of $50, 000, 900
On the LIST Of July, 1858, the surplus in the
Treasury, as estimated, would reach til,
amount OF $i4 900, 900. Such . condition
OF tbs public finances would be No fatal Il
tho interests OF the country ~ it would b,
to the integrity Of the Government. Thi
latter was the first aspect in which the cir
cumstance presented itself to the Admins
tration of that year. 1t had to choose be.
tween m increase Of expenditures or the
reduction OF the revenue, and being concur
rent With the traditions Of the Democratic
party, the Administration represented, a
well rs with the interests OF the countr,
sach reduction was decided on. Mr.. Guth-
RE. OF Kentucky, was then the Secretary oil
the Treasury, and bis administration Of the
duties had never been surpassed, and his in-
tcrest in the success OF national industry
prompted him to the thorough consideration
OF the plan Of recognizing the revenue sys.
TEN. Ills purpose was 10 secure economy
IN the public expenditure, and also the pros.
perity OF every branch Of American industry.
There were in the Tariff Of l84I eigh, sche.
dnles, and he proposed to reduce them to
two-the first paving duty Of Is per cent,
and the second embracing articles admitted
free of duty, which were chiefly raw mater.
ais used in the manufactures Of this country.
The reduction OF the duty from 80 to Is
per cent on the krst schedule would have d
mlnshed the revenue $43,ul0, 900 . year. -.
The 20 articles 10 the second or free li,t
would have caused a further reduction OF
$4,000 900, leaving ut S. UOO. 900 in tho
Treasury. In 1855, when the Tariff was 70
80 into operation, the effect on the country
would have been tho disbursement Of SIS !.
100000 that year, instead Of an sccumula-
ton Of $50 900 900 in the Treasury. In 1857
il would have relieved the manufacturing
interest Of $4,000, 900 each year, and the
people OF the burden Of tbs duties paid on
their imports Of "a 800, 900. These two items
! =. reduction f1olA. .ae NV years prccs0,ny
ls5I would hare shown difference OF SO :
100000 saved 70 thepeople, instead OF being
10 the National Treasury. Such was the
character Of the measure OF Mr.. Guthrie
which was assailed on the ground that il vas
u departure from the principles Of the nc,
u loib, and a protective measure. II was
defended on the principle tina, il was q meas.
are for the revenue, With Incidental protec.
ton 20 American industry, and ia that view
that i Was like every tariff which had been
established since the beginning Of the Gov
ernment.
Robert Kantoul, the most eminent man 81
his day for bis knowledge Of matters Of trade.
IN his speech in Congress, ia 1851. advoca.
seu the enlargement VI the free list and the
admlssion Of raw materials - an slemsn, Of
PsaA ann AA