New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1860-01-13
Aesplorls Dailp Gribnnrs
CRISES. THEIR CAUSE AND
EFFECT.
MR.. CAREY TO MIR. BRYANT.
LETTER sEcoEp.

oceur IN Freetrade times, and aerer in periods when
the pohcy of the couury s being directed toward the
ceh'ion OF oOD' sc na k.,s and toward the relief Of
our farmers f the terrific taxes of trade aud trsns-
pcrtation to which icy are DOW subjected That
sueh arr the acs, you readily satisfy ourpeb by
hooking back the great specuaons of the -four perl
DDS Of 1917 1895 1882 and 1885, followed By che cri.
see ct 1892, 1887, 1912, and lS57-and then comparing
them with the remarkable steadinets of movement
which characterized teoe of the protective tariff Of
lSS and 1912. Study financial history you may,
you will find in ns every page evidence of the
sopndness Of the views of Washington, Jefferson,
snd Hamilton, Adams, Madison, and Monroe, each
and all Of HON had foil belief 10 the accuracy Of e
ideas 70 W ell enuscated by Gen. jackson. when he
deClered that We bad been loog subect 10 the
"po5cy Of British merchants that IL Was time we
should become q little more Anericanized and
that if continued longer the policy of feeding 1.-THE
"paupen and laboIeis of England in preference To
our own, We should "al be rendered paupers our
selves"
Why is all this Why must it be sol Why must,
and that IhevitoHy, speculation, to be followed by
crises, parayses, and day.growDg pauPerism be the
mvasbe aiter dsDt upon the pc icy which looks TO The
separation of the producer of product from the
terials are converttd1 To obtain 40 answer TO all
these OUT Hions let look again, for moment the
proceedings connected wi the printing and publca
ton of The EreniHg Post. Dealing directly with
your paPer-maber, you pay him cash, or give hin
notes in exchange for which be readily obtains the
moDey-no artificial credit having bees created Place
Sourselfnow, if you pease, at distance Of several
thousand miles from The msputscturer and connt the
l.
pa@-eaeh and every change giving occasion 10 the
creation Of notes and bills and to the charge of
missions al stOrage-and on ~ill as think, be dis
poted TO arrive with me al the conclusion that the
tendency toward the creation OF artificial credits aud
toward speculation, grows with the grOe h of the
power of the midolemen 10 tax the producers and
sumeIs Of the wo Id.
Seeking further evidence Of this lot me ask you to
look the circumstances which attend the sale Of your
products. Nov, your customers being cloee al hand
you ale paid in cashyour whole years business not
giving suppose occasion for the creation of sin
lie note. Change your position, putting yoursef in
that Of the Manchester manufacturers, at drtnce Of
thousands Of miles from your customers, compelled to
deal with traders al snspoIters aid study thu guam
u'y of notes and bils with their attendant charges
Tia! would be created the augmentation Of price and
queDce-tbe power that would be sOculnul4ted the
hands of those who bad meney to invest and desired
to proGuce such cries as those which you have we'll
dtpicitd-and you wll most aseurediy arrive at the
coneu.on that there is but road toward steadness
and freedom and that that road is be found in the
direction OF having for their oIiec, the
cose approximation of the producers and consumers of
the products OF the ear1h.
Studying next the great facts of financial hietory
with ascertain how far they are in accordance
with tie theory you may thus bave formed, you WILL
that, in those prosperous years OF the Tariff OF
1923 from 1880 10 1888 the quantity of bank notes IN
circulation was but So 0G0 GOO No sooner however,
had we entered upon the Free.tiafe policy, providing
for tie gradual ciupution end ultimate abolition Of Pro
lection, than We fDd rapid gro~th Of speculation,
consequent upon the growing power for the croaton
artificial credistbe average circulation Of the Year,
from 1884 10 1887 having been no ess tban i49 mbons
or nearly twice what il before bad been. Under the
protective tariff Of l842 the average was but 10 mill
ions; but no sooner had Protection been abandoned,
than we End increase rapid 10 have Carried up
tie average from 1876 lSi9 to 49, ano tina. of 1850
and 1851 TO I43 millions. In that period speculation
had largely grown, but prosperity had as much de-
clined then the circulation small, domestic cOul-
mtIce wss grst-mines having been opened, furnaces
and factories having bee built and labor having found
its full reward When, on the contrary, the circulation
had become so great, mines were beng closed and
miners ere being TuiDed - furnaces and factories
" ere being sold by the sheriff, and people
UNEMPLOYED In the one case, men were becoming
more free, while in the other they were gradually
oeng the power 10 determine for themselves 70 whom
thew would sell their labor, what should be its re-
ward Ip the one there war q growing competition for
the purchase Of the laborers services. In the other
tete was increasing competition for their sale Such
having invariably been the case, can you, my dear Sir
be state 10 believe that the question 10 whose discus
sion have invited you not one OF the prices OF cot
ton or wooden cloths, but as, really, that Of mans prog
ress towurd thai perfect freedom of action which we
shuld all desire for ourselves ind those around ne, ON
the one band OF his decline toward slavery, and its
attendant bgrbaritn the Other7 That, as It seems
10 me, yon can scarcely do.
Atpo period in the history of the Union has compe-
ttjon for the purchase Of labor accompanied by grow
ing tendency toward Improvement in the condition OF
the aborer been no universal so great as in 1872
1884, end l8f7 The closing years Of the several periods
in ch the policy of the country was directed toward
the approximation of the producers and consumers OF
the county, by means of DeaspIes Of Protection. Al
none has the competition for s sale, with correspond"
ing decline IL The Gbores condition. been 70 great as
in the closing years Of the Free-rAde penod' TO W.T.
fr,Yn 1870 10 1924 and from 1910 10 l8a2.
Great as vas the prosperity With which we elofed
,he period which had commenced in this latter year,
three .bo1, yeers of the Tariff OF 1916 sufced for re-
producing that competition for the safe Of labor, relief
fro m viii had been the object Of the me who made
H. wit