American union. [volume] (Morgantown, Va. [W. Va.]) 1855-1859, 1857-10-09
Our Financial Dill IicuIties The Cause
The Tariff and SubtreaSury, &c.

largest measure Of comfort which the
nature Of the cause admits, and we con-
ccive the present financial embarrass-
ment will not have been in vain if it
shall result in inducing the people calm
ly to examine into the causes, past and
present which have brought ruin upon
almost every branch Of domestic indus
try.
The superficial and unthoughtful and
Democratic quacks, assign various rca-
sons for the present monetary crisis.
One asserts it is the result Of violent
contraction of discounts by the banks,
while another thinks it is the building
of railroads, and still another finds the
true cause in the extravaganza and
speculation of the people. Now, it is
plainly to be seen that these are all re-
suits, and not causes; and that they
flow as naturally from the real cause
as the main result to which they have
only been accessories. In other words,
all the circumstances above named
the extraordinary contraction of loans,
the depreciation Of stocks, the panic
in the stock market, &C., are all but
the effects of one great cause. Fail
ures multiply, and business stagnates,
because money cannot be procured,
even at usurious rates Of interest. And
the reason that money cannot be pro-
cured is explained in the report of the
Secretary ofthc Trcasury-from which
source We learn that we have exported
TO Europe, since 1850, an aggregate of
$272, 100000 in gold, or an average
of S34, 900, 900 annually, which is our
excess of imports over our exports
Here, then, is one great cause for the
present distress for money. We have,
since 1850, imported some $272,000,-
600 more of foreign goods thar we have
exported Of domestic produce, and We
have to pay for this increased importa-
tion in coin. This excess of imports
Is the consequence Of most fallacious
commercial policy-a policy Inaugural
ted by Locofoco quacks, which ignores
the principle of protection to home
manufactures, and goes in strong for
low duties and an approximation to free
trade. This policy is the original cause
of our misfortuncs. Low tariffs have
induced overtrading, and ovcrtrading
is the true cause Of our present inan-
cal difficulties. We have been pur-
chasing moro goods from Europe than
we are able to pay for with our exports,
and the banks have been drained of
the precious metals to pay the balance
against us, which balance, as We have
before said, has averaged, since 1850,
about $34, 100000 per anuum!
1t is not little singular that these
financial revulsions always take place
under Locofoco rule, and arc lcgiti-
mate consequence Of Locofoco policy.
The suspension Of 1887 flowed ncces-
sarily from the low tariff Of 1892, and
the ruinous financial policy of Jack
sons and Van Buren's administrations.
They encouraged the expansion of
bank currency by their system of de-
posting with the pet banks, and the
low duties under the tariff Of 1888
stimulated immense importations Of
foreign goods. Thus, home manufac-
lures were crippled, the specie was sent
abroad, and general ruin followed.
In 1910 the people, who had not
been then fully recovered from the evil
consequences Of the rcvulson of 1887,
rose up in their majesty, and with re.
markable unanimity, swept tho origi-
majors Of such widespread mischief
from power. Prominent among the
benefccnt results Of that change was
the adoption of the tariff Of 1912, un.
der which American industry was 50
fostered and stimulated that the country
soon emerged from bankruptcy, and
once again entered upon the high road
to national prosperity. There was no
undue speculation, initiation or unheal-
thy excitement, but under the genial
influence Of protection to home indus.
cry, the nation was rapidly recovering
its lost tone and spirit, when Folks
success restored L0cofocosm to power,
and the tariff of 1916 turned the nation
back to that policy that had previously
been so disastrous to every interest,"
The injury this change wrought to our
infant manufactures was marked aud
decided, but fortunately the rapid
growth Of the country, in population
and resources, had so strengthened the
manufacturing interests by 1856, that
it might possibly have been able to
weather out the storm, and survived
even the i'll consequences Of a most dis
astrous policy, had not Locofocoism,
led on by Mr.. Hunter, passed tho new
tariff act Of 1857, which went into op.
Grafton on tho 1st Of July last, and
opened still wider the door for foreign
iuportations, some Of the results Of
~'icl "o arc nov beginning to realize.
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