The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1869-09-01
ENGLAND.
The Reduction Of the Rate of Discount.

from the London Times tCity Article), August 20l
reduced rate Of thee Der cen
at which 1t was fixed on the 18th ult., to two and
half per cent. The return published this evening
shows that the amount OF securities held by the
Bank other than government funds has run down to
f13 100 1888, which is nearly fe,OO0OOO below the
circumstance the reserve Of notes and bull,
lion , the banking department Is now
the rate was last reduced to two and one-haf per
cent the proportion OF reserve to liabilities only
about forty-seven per cent. and that even in July
1867, when q reduction was made to two per cent
its amount was less than ffty-twO per cent, 1t is
evident there could have been no hesitation this
morning in resolving on the downward movement
An unprecedented sluggishness OF trade and enter
prise is prevalent and as the cheapening of capital
will enable our manufacturers to ship at lower
terms than wOulu otherwise be possible, 1t Is
by this means we must look for an extension OF
business. In proportion as the lowering of the
answers its purpose, reaction Will ensue from
the increase Of transactions and nothing but good
should result to all parties. But, unhappily 1t
would be vain to hope for so discreet course OF
AFFAIRS. A large number OF the public while the
rate remains At two and half, win enter into COM
m1tments for distant instalments foreign loans
other enterprises that may fall due when the charge
is again at five per cent and Will then denounce the
system Of currency that permits any nuctuation In
the terms at which advances to be obtained. The
reduction in the bank rate mas been followed by o
slight fresh decline in nearly all descriptions OF &C.
curities.
The Demands Of Commemorative Trade or
frOtectlOns
From the London Post August III
What can be the secret bond of affinity between q
degree OF political freedom which most people would
be disposed to consider unbounded license and the
utter exclusion OF commercial llbertyf The exist
encc OF such connection Ii strange enigma, and
yet the same phenomena have appeared both in the
Old World and the New. In the earlier days OF the
free trade movement in England, and indeed
during the whole OF Its progress, the chart:
Whenever sS ns they could ''1 muster suesns
strength interrupted the public meetings OF the
were
pose In America It Is the extreme radicals, or re-
publlcans, who are tho chief promoters Of protec-
Ion and the most nveterate enemies Of free trade.
Again, to give another illustration, there was Q
meeting at the east end OF London only the other
day, the persons composing which, to Judge from
tner speeches. and the resolutions that were
passed, must have been equally protectionsts and
republicans The meeting purpSrted 70 be CON con
the violent character Of the incendiary harangues
reverse according to differences Of OPINION to the
most furious followers OF FearRus O'Connor In the
long dead was at its height. and furnished text
| Tor political homies from Mr.. Carlyle. That men
VINO are for mo Church, no State. no nothing, v
| but what has been termed 1.-THE sovereignty OF
| the individual" should insist upon pronibl-
tory tariffs and taxes on the necessares OF
| lile-in other words, the most oppressive OF all
| iaws-s certainly q very curious paradox. II is
| satisfactory to know, however, that q free trade
movement Is on foot in America, which cauno, fall
| among shrewd and Intelligent people, to achieve
the same decisive success IN the end as tnat which
commenced thirty years ago In England and attained
the chief object for securing when 1t had been In
augurated within ten years after Its Initiation. And
| here may remark. In passing, q very curious
free trade movement in England ,oas contempt.
| raneOuS ,cnh the decline and JdH or chnrttsn or
extreme rddicdtsn' and 1t Is curious subject for
speculation whether like phenomenon VIII he
witnessed in the New World.
At this juncture it may not be lnopportune to IN
vite the attention OF those who still seem unaware
that protection in these times Is an anachronlsm and
an anomaly altogether out OF date aud OF Joint
with modern institutions and IDEAS to the rniscon.
struction which has been put upon the dca OF Ger.
| tain famous political economists touching the
| methods OF production IN new countries. for 1t ID
| upon this Misrepresentation that the only remaining
arguments OF any weight or plausiblity In favor Of
problb.tory policy have been based: When. for
others urge that In . new country, equally
adapted for particular industry with 81
oa o OF a. species Of
| the former, TO exclude the wares coming from tn
latter their proposition does not Apply In any rea
Although the American Union a. an Independent
Power Is, In years, but y0ung when compared Will
the age Of Its Industries and manufacturer. Is
| entitled to be considered new country at all. In
very names Of some OF Its principal states iurnisne
| were to hold good In favor OF America as u neN
country relatively to tue countries OF Europe mus
equally hold good az between one part OF the unite
states ana another. Upon this principle new an
partially unreclaimed territory just erected into
state ought 70 nave t8 INFANT INDUSTRIES prOtecte
aud fostered by the exclusion OF the products OF tn
Older states OF the Union and the very idea OF sue
"a house divided against itsef'' Is simply ABSURD
But further, II may easily be shown that there Is
country which needs protection less than Americ'
| because IN no other country-at least among tn
{ great Powers OF the earth-is the population sma
| In proportion to the extent OF its vast resources
other words, there 10 no nation In existence whic
l. possesses all the elements OF wealth and prOsper
a and the powers OF production IN 80 eminent d.
gree, and therefore none winch requires so little u
l. aid OF artlncal props to bolster up and stmulan
, TO develop us commerce and manufactures.
n the manufactures and Industries known In u
u Old World equally exist 10 America, and II would
IS odd-indeed utterly inexpncable-i, with all u
|. natural and material advantages which American
e possess. they could not compete In their own una
II kets against the products OF Europe, which
e Ject u very considerable tax, and tax that
n not possibly be repealed. In the shape OF fregh
* and the charges INCIDENTAL to importation. All th
r the freest trade, the importation Of European pr
e ducts the largest scale from the Old World In
n America could do would DE not TO inlure the natl
r. indus OF the latter, but really TO benefit them
IN | lnpartng that healthy stimulus which would pr
Fl | vent their going 60 sleep There Is axiom, ev
n La the exact SCIENCES, more certain than thls-th,