Belmont chronicle. [volume] (St. Clairsville, Ohio) 1855-1973, 1872-12-12
,TREAsURY ToPIcs.
The Future Financial Policy.


a. -asfs YEA !. ~ 3. s.i,i-
Fron lie Report of Secretary Boutwell)
The attention ofthe public is turned.
naturally to the, future financial policy
of the eonntfy. Thst policy must rest
upon the past and present. The war
CAUSED three great changes in business.
Finaneial affairs have received the
careftd consideration of the American
peopla, The country was compelled to
impese heavy custom duties on mer-
chsEndise. Thus, and without general
obser<ation, and without argument
upon he principles involved, the ma
ton entered upon broad system of
profession. Sec0nd-The Government
issued tre .sury notes for general circu-
latj0a las currency, and prohibited
banks of issue by State authority
ThirdTA system of national banks
was eS& &blished,. and their circulation
.protefted by the national credit. The
/ wisdom of the measures, speaking gen.
[erally has been established, and sub
! iect to Saeh changes, as changing the
eondition and opinions of the country
and. peppIe, may demand that they
will remain a part of our public policy
until the financial consequence OF the
war vii disappear. The weight of the
/ natiOne1 debt has. been so great that for
more than ten years there has been no
oppQrtunity for the practical discussion
of doctrines of protection and free
| trade, md in that long period Ofan un-
.changA protective policy incident to
| the buaens of war the nation had ad-
yaneed Rapidly and safely in the develr
epment of its national resources. An-,
| ticipatin aisondition Of peace we may
also anticipate general reduction in
the perseentage of custom duties. This
| rednetion, however, should not be
tymeasured solely by the wants OF the
TreasurS, but regard should be had
also, sto9 the condition of the various
I branches ofindustry in which the peo-
fple ,arefengaged. In the presence. Of
| the TACT that the leading pursuits OF,
this country are stronger than ever be-
fore in the possession of adequate capi-
tai and a asupply of intelligent iaborers,
there may be a moderate reduction.
lifrom time to time in the rate of duties
as the diminishing expenses n of the
Goyernpent shall permit, without
either Alarming capital or injuring la
bor.. For the purposes of government,
Fprinciples Qfpelitical economy are na-r
l.tionaI, aid not cosmopolitan. a nation
that can produce a given article at lf IS
cost than can. be, PRODUCED elsewhere,
may wisely accept free trade ia it, but
pa nation having natural advantages
for its prpdu uQtion, vet destitute of skill
lin the incidental .arte.l or trades, must
fail for an opportunity that sometimes
comes; froga the calamity OF war, OF, Sc
cure a Is more, eeenomicah, and a more
constant support in the policy of its
tGoVerDI9ent. sslfAverage natural facil-
tities exist, the period of necessary pro-
4 tecti0n is IA short time compared with
1 the life time of the nation, -WEile an
advantageous.g gain can never be wholly
lost. but if reasonable natural facilities
| do not exist, then a system of duties
for protertiofi, a present and future bur-
den. VII itzput ad equate coinpe sensation is
required. SO varied and rich, however,
| are the natural resources of the United
States, that we either are. OF. may soon
be in successful competition with the
Older and more experienced countries
of the world in. the production of the
chief articles of personal necessity,
comfort, and of the machinery hy
| which these articles are produced or OBJ
tanned. Herein is a sufficient justific4-
tion for the existing protective system,
or for its continuance during the transi-
ton period. Nor is the prospect of the
ultimate successful competition with
liother countries disturbed by eircum-
stances. The wages oflabor are higher
| in this country in the main than they
| were ten years since. 1t was thought
that the only way to a successful con
test with Europe was in the reduction
! of the standard; that the thought has
disappeared probably in the presence
of the fact that high wages on this side
| of the Atlantic have stimulated emigra-
ton until there IS a near approach of
equality in the cost of labor, and of the
co-existing fact that the addition thus,
f,made to the iititnber of Iaborers has
tonIy aided in the Development of our
resources without yielding IN any quar-
liter on excess of products, or retarding
lin any degree the prosperity of the la
boring population This prosperity on
their part is associated with a higher
and constantly improving intellectual
and social culture and condition, it be
ing given that ailii1telIigent person has
all the special knowledge of an art or
trade possessed by the most experience
ed and best trained operative, when
outside ofthe special training and ex-
perience. That the special training and
knowledge of the ignorant man is the
basis of innproveme makes this truth
considered. tTis first reference to a
| single Anne ricail .laborer, and then
| multiplied many hundred thousand
ttfmes, represents IS the advantage Of
America over Europe and, Asia in the
contest for final peaceful supremacy in
the affairs of the world. Thus is
| America solving the industrial problem
/ of the age by exerting cheap pfOdac-
| tion from eYpensi4 g labor. The,reason
! for these remarks may be found in the
opinion I entertain that the tariff
system of, the Country had contribut-
D eH largely to the 'getleraf prosperity;
| and that such general and continued
i prosperity Is the only basis ON which
even a. wise financial policy eaH' rest.i
oIn discussing the other changes CAUSE
ed IbyA thsi wal, the issue of United
States notes andDOfnOses ny the nationl
all banks should be considered together
Indeed theyar9 necessary points of6ur
financial system, and neither can :be
substitutes for the otherwithoatagen:
Y eral .disturbance!t to the State bank sys-
tenn, Treasury system, and private
4 banks, as to reader arguments in its
behalf fins these i,respeets necessary;
i while -tho Substitution ofAan ;equal
amountof United States notes as. cur
rency would be productive of serious
evils and losses. FiEst-the national
banks hold nearly four hundred million
q United States bonds, which otherwise
would be thrown upon the market, alb.
sorbing domestic capital, or il purcbas.
. ed abroad, adding by the amount in.
terest to the annual balances against us
! lin our own account current with Other
countries; second-one Office of q bank