The Washington union. [volume] (City of Washington [D.C.]) 1857-1859, 1857-12-10

market for the fruits Of their industry To do this inn
practicable not to do il would be unjust
How strangely inconsistent is the doctrine OF the pro-
teconsts with the practice Of the government We an
nuay expend large sums of money i'm maintaining a
navy whose chief duty is TO give protection to our
commerce in all parts of the world Appropriations are
asked and freely given to send flag IN search OF new
avenues for increasing trade
The American officer who returns to his country to
the successful tcminatons OF his mission IN hay
ing made and favorable commercial treaties, Is hailed
public beneactor, and all classes unite in doing him
honor. In these demonstrations particpaeSore
cordially than the proteconsts. IT. upon the announce
Ient OF the discovery OF country which promised
large and lucrative commercial intercourse with our
own it should be simultaneously proposed 10 impose upon
that restrictions that would close our ports to
the entry of its productions, under the false theory OF
protecting home industry, what would be the Judgment oil
enlightened public opinion upon the wisdom OF peo-
pie who first expended their treasure in discovering new
mars of trade and Immediately denied themselves all
the promised benefits to be derived from ta In the
supposed the proposition would be more startling but
not unreasonable than when applied to our inter
with those countries between whom and ourselves
commerce has grown up from small beginnings TO It's
present large dimensions This has been accomplished
through policy inaugurated by government,
and which has commanded the approval Of enlightened
minds throughout the world. Other countries have, in
their legislation of late years, manifested by reducing
their duties upon imports, desire to cooperate in the
work of throwing off those sacles upon the freedom OF
commerce which false theories have placed upon it, 1t
would present strange spectacle If the United States
The sentiment among people in favor OF Tree
intercourse is manifested in their domestic well
foreign policy. The strong feeling in the public mind
for the extension of territorial limits is generally at
tbuted to the desire for more land That operates to
extent is freely admitted but such cause fails in
its application to those where the acquisition of new
territory brings with it no proprietary title to the land
And yet the public sentiment for acquiring territory
where every foot of is held by private titles is dec
ded in any other 1t is accounted for satisiacto
y only upon the theory that as our territorial limits are
extended enlarge the Of free trade opening new
markets for the productions Of our industry, unramme
ed with those restraints which restrictive international
policy has imposed
1t an error suppose that the occasional revusions
which have seriously affected manufacturing inter
est attributable to the want Of high protective sys
tenn In the policy which the government has adopted
of allowing many of the materials used by them to
come in either free Of duty at low duties, in the incl
dental protection which tariff laid for the purpose of
gives thenl-in the increasing consumption Of
their productions brought about by the general prosper
ty of the country they will find the most ample encour
agemcnt that could reasonably be expected desired
Like all other interests in the country they suffer from
the too frequent changes Of the tariff, and from those
fluctuations in business which flow from wholly
distinct and separate from the tariff question What
they need is steady prices sound currency, and protec
ton against the effects of expansions IN the credit
system From free and unrestricted commerce with the
world. no interest in our country would derive more
certain and permanent benefit than the manufacturers
Rejecting the proposition to raise the tariff
Of relief and looking to the probable receipts and
penditures for the present and next years. change is
recommended in the act Of March s. 1857, at this time
The present tariff is not regarded perfect far from it.
1t has however been in operaonl less than six months
length Of time too short to judge of its workings
under the most favorable circumstances This fact, in
connexion with the revuson in business, makes twholly
mpracticable to form correct judgment upon its merits
There are changes which should be made soon it
be done with proprety return to the decimal di-
vision in the rates of duties, accurate classification
of various articles and other amendments, would greatly
improve the law if it should be found by experience
unnecessary to make any radical change in its general
provisions. The propety of posponng any action upon
the subject until opportunity has been offered Of test
ing its general merits to admit of no serious
doubt
Returning the question of relief which is expected
from the government it becomes necessary TO inquire
into the cause of the present revusion preliminary to
the consideration of proper remedy for it, Public opn
ion generally holds the banks responsible for all
barrassments The true cause is to be found in the un
due expansion of the credit system The banks consti
tute important part of that system; but there
other elements entering into it which, equally with the
question Of the banks demand public consideration
Credit confined to its legitimate functions is the rep
resentave of capital, and when used within that limit
may extend and inygorate trade and business when it
ceases to be such representative it stimulates overadng
exctcs speculation and introduces an unsond state of
things in the business of the country 1t is this undue
expansion of credit which has brought eounty to its
present endorsements The extension 6f bank credits
and the oyer-issuc of bank notes is part and very
important part of this undue expansion. A spirit of
banks for the of their credit and, yielding to the
PRESSURE they respond by the increased issue Of their
notes. and by enlarging their discounts The extent to
which the banks have enlarged their credit beyond its
proper limits is not to be measured alone by the amount
Of their circulation. At the time the New York city
banks suspended specie payments in October they report
ed larger amount of specie in their vaults than their
notes in circulation and notwithstanding this fact they
unable tomect the demands of ercredtos prompt
ly with specie owing to their credit operations under
their depose system Having extended their credit,
and enabled their customers to do the same, they
unprepared for the revulsion which upon them.
ii be true that embanssmens have been occasioned
by the here assigned must look beyond the
ton of the banks to the operations of other corporations
as well as individuals to athom the entire of
our difficulties. The limits Of this report will not
admit of detailed examination of this subject but sol
itary illustration will present the subject in its proper
light In to circular letter addressed to the
rous railroad corporations of the country the nforma
ton contained in table No. has been obtained tap
pears from this statement that the capital of these
panics amounts Si9 435 661 their Indebtedness to
SALT 243 664 The annual interest upon the latter sum
is $25 093 203 their annual income was S4s 400 4SS
1t proper here TO remark that this statement Is not
entirely accurate some Of the companies failed to respond
to the circular of the department and in such the
returns made by them during the preceding year. and
contained in the last report of my predecessor have been
used In the preparation of the table Whilst it cannot
therefore, be considered perfectly accurate it appo
mates it sufficiently for the illustration of
ment Ii exhibits the extent owhich this class of cor
poratons has contributed to that expansion Of credit
which is properly ehargeabe with the recent reynson
1t is due to large class OF railroad companies to state
that this excessive Indebtedness is not equally distributed
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