Daily Nashville patriot. [volume] (Nashville, Tenn.) 1857-1858, 1858-01-04
The Secretary of the TTeasury and MIR.
Nathan Appleton.

| The Administration seems still vexed
about the best mode of supplying the mon
!! ey demands of the Government. In cast
ing about for information, the Hon. Sec
rotary of the Treasury applied to Mr.. Ma
THAN APPLETON, of Boston, for his "opin-
ion of the effect which the present fnan-
cial crisis will have upon the revenue for
the next twelve months" The reply,
which we subjoin, is as just as it is with.
ering to the professions and practices OF
the democracy, on the subjects of banks
and tariffs. 1t is as follows.
BosToN, November 4, 1857
To the Secretary Of the Treasury:
| DEAR SIR: have the honor to acknowledge
the receipt of your letter of 2st ulinio, enclosing
circular to the Collector of Boston, snd request
| ing my opinion of the effect which the present f.
nancia crisis will have upon the revenue for the
| n xt twelve or eighteen months.
| II is very difficult question, and one on which
| cannot form a very def nite opinion. Del" We
| that the present crisis in it verify wholly
unnecessary, and was produced entir,ly by the
nismanage of the New York Banks in con-
| finuing their violent contraction Of the currency
after al necessity for iL had cease, inasmuch ~
the export of gold I'd ceased before the nfdl of
| SepteiD Der and could OF y be made at a loss
| ,red to bills Of exchange. This policy the New
| York Banks still continue, although sp.cit is )w
| ing into the country even from Europ,. If con-
| tnued long enou b it will be introducing pure
| speci currency throughout the whole country,
which perhaps might be done in the course OF
a twelVemo 'th; but during which nearly all trade
and manufacture must cease, at present. Ic
is not probable however, that tbs system VIII
be continued much ion er, so contrdry as 1t is
TO the interests of the banks and OF tie whole
country. But it will be a sloT process to recover
from the paralysis and wreck brought upon
ny this intense contraction OF the currency.
Perhaps il will not he large estimate 10 say
that the revenue will be diminished to an xteHt
equal to ITS ordinary product for six months At
the same time the country being in state OF the
highest prosperity, except for this deragement Of
the currency when that is correct IL will return TO
its usual action with great elasticity. 1t is how
ever, undoubtedly true that both the imports aud
duties for the last two years have been In excess
of a wholesome trade
1 have been many years out of active business.
and cannot undeTtak to give opinion on the
working OF the tariff upon the revenue. |
cannot however, avoid expressing the opinion that
the present tariff besi!e being founded wrong
principle, is in its construction, the most clumsy
and in its practical operation the most ncOnveni ut
OF any tariff VT On has been ADOPTED in the United
States. OF thi- | think you must have had your
elf pretty tull rxprri nee in thu many d in nit
questions which you hav been call ii on to decide.
What can be more absurd than the diff rent clas-
sifcation of wOOen and worsted and the various
manufactures of cotton? What improvement
and simplicity il woulI introduce 10 make all textile
fabrics OF ton, wool, silk, &c, subject TO tn
same rate OF duty, which should place a 20 per
cent, anu make every thing under 20 per cent.
tree
| was a member OF Congress in 1882, 1888,
and 1912, during "a OF which ssions tar taIIif
was the most interesting subj OF discussion.
The tariff of 1912 was framed upon tuC principle
of raising IA sufficient revenue by duty on hrtIclrs
similar to those made in this country for the pur~
pose of affording protection to Auer an labor ana
the capital invested in manufactures. l voted for
that bill, in company with Mr.. Polk. Cave Jotson,
ana many others leading men of the Democratic
party. In fact, the protective system intro
due especially by that party Ii Is u'tog tner
system essentially Democratic, for the b-n' lit OF
labor, although MIR. Secretary Walk, was able, III
1916, TO persuade jority of Congress that Il
only capital w ch favored by it.
There is one consideration grOwins out OF the
pr, sent tariff hch is orthy att ntion OF tho
cotton planters. Larzr quantities OF cloths for
printing and dyoing have been imported at a duty
OF 19 per cent. This is done in querce OF
their being made OF one-halt LwO-tnlrds from
Bombay cotton, which l. of less value than our
own three to four cents a pOuLd, i'll reuc. just
about DUAL to the duty. The only rtmrdy for tins
is the ia perrin. of from Ii, ID, which some
Of our auutacturers were preparing t" do but for
the present Disturbances, but which will undouht
edly be done il the trade is open.
With much respect, your very obedi' ut servant,
NATHAN APPLE ON.
Hon. HOWELL COBB, S,cretlry OF the treasury.