The Tiffin tribune. (Tiffin, Ohio) 1868-1887, 1872-12-12
VOLUME 25-NUMBER 9

> IL NAC Ncf CiO lL4cuA OF us natural
resources. Anticipating 2 condition
OF peace, we may also anticipate a
general reduction in the percentage
OF Custom duties. This reduction,
however, should not be measured
solely by the wants OF the Treasury,
but regard should be had also to the
condition Of the various branches OF
industry in which the people are en-
gagged.
THE FREE TRADE QUESTION.
For purposes Of Government, the
principles Of political economy sre
national, and not cosmopolitan. A
nation that can produce q given arti-
Gle at less cost than it can be prOduc-
ed elsewhere, may wisely accept free
trade in il, but q nation having natur-
al advantages for its production, vet
destitute OF skill In the incident art OF
trade, must wait for the opportunity
l that sometimes comes from the ca
lamtty of war, or secure q more eco
nomical ana more constant support
Ia the policy of the Government. II
average natural facilities exist, the
period OF necessary protection is q
short one compared with the lifetime
OF a nation, while the advantages
gained can never be wholly lost; but,
il reasonable natural facilities do not
exist, then system of duties for Pro-
lection is q present and future burden
without adequate compensation. So
I varied and rich, however. are the ma
tuTsl resources OF the United States
that we either are or 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, COM
/ fort, and luxury, and Of the machine
/ ~ by which these articles are produc-
ed or obtained. Herein is 3 sufficient
justification for the existing prOtec-
| tive system, and for its continuance
/ during the transition period. Nor Is
/ the prospect of ultimate successful
competition with other countries dis
turbed by the circumstance that the
wages OF labor are higher in this cOun-
try than ia those.
If, ten years since, il was the
thought of any that the only way to
a successful contest with Europe was
in the reduction Of the wages Of labor
to the European standard, that
thought has disappeared probably in
presence of the fact that nigh wages
on this side Of the Atlantic have slim
ulated emigration until there is a near
approach to equality in the cost Of
labor, and of the eOexisting fact that
the addition thus made to the number
Of labOrers has only aided in the de-
velopment of our resources without
yielding any quarter an excess Of pro-
ducts or retarding In any degree the
prosperity Of the laboring population.
This prosperity on their part Is assO-
ciated with higher and constantly
improving intellectual and social cul-
ture and condition. It being given
that an intelligent person has all the
special knowledge Of an art or trade
possessed by the most experienced
and best-trained operative, who, out
side Of this special training and ex-
perienee is, and machinery being Civ
en-, also the intelligent person pro-
ceeding to improve and simplify
methods Of production to such an ex-
tent that an addition TO his wages Of
even 100 per cent represents but a
small part of the advantage gained,
yet the special training and knowl-
edge of the ignorant man Is the basis
Of the Improvements made.
This truth, considered first with
reference to a single American labor
er, and then multiplied many hun
dred thousand times, represents the
advantage OF America over Europe
and Asia in the contest for final peace
ful supremacy In the affairs Of the
world. Thus Is America solving the
industrial problem Of the'ages By ex-
acting cheap production from expen-
sive labor. The reason for these re-
marks may be found IN the opinion I
entertain that the tariff system of the
country has contributed largely to the
general prosperity, and that tsueh gen.
eral and continued prosperity Is the
only basis on which even a wise f.
nanclaI poIlcy can rest.
LEGAL TENDER NOTES.
In discussing the other changes
caused by the war, issue Of the United
States notes, and Of notes by the na-
tiOnal banks, should be considered to-
gether. Indeed, they are necessary
parts Of our financial system, and
neither can be substituted for the 9TH
er without general disturbance 10 the
State bank system, and 20 any system
of private bank, as to render argu-
ments in its behalf in these respects
necessary, while the substitution Of
an equal amount OF United States
bonds, which otherwise would be
thrown upon the market, absorbing |
the domestic capital, or, II purchased |
abroad, adding by the amount Of in !
terest TO the annual balances against |
US in our account current with other |
countries. Second, one oflce OF a !
bank is to aggregate the capital Of
small possessOrs, and thereby TO fur
nish means in aid OF important COM |
mereial and financial undertakings, |
not only at the centers but in the re-
mote and newly settled parts Of the /
country. Thirdly, the national banks |
are used as aids to the Government, !
which otherwise would require large |
Increase in the number Of the desig- \
mated repositories and proportional I
increase OF the public expenses with
out the least appreeiable advantage.
FOurthly, they fSeilitate exchange be- |
tween different sections Of the coun-
try, thus diminishing the cost Of COM
mercial transactions. Filthy, they 4
are generally less disposed than pri-
vste parties controlling equal capital
to demand exOrbitant rates Of inter
est but it does not follow from these
views, nor would It follow from those
Of similar character which might be
that the system is perfect;
nor does it follow that the issue Of
notes directly by the Government
should be surrendered, and the busi-
ness Of furnishing a currency yielded
to the national banks. The circula-
ton Of each bank is fixed arbitrarily
by rule Of law.
BANK CIRCULATION SHOULD BE LINZ
TIED.
Aggregate circulation Is, therefore,
4 fixed sum, and consequently there
Is practically no reserve to meet the
increased demand for money ocea-
stoned by extraordinary events at
home or abroad, and arising periodic
ally with the incoming Of the har.
vest. The old State bank system Is
commended for the quality
termed elasticity, but that quality as
'ound in that system was the princl-
pal source Of financial disaster. Un- /
Ter that system, in OOeyance Of pres
INT demand for coin, there was prae-
iealIy no limit to the issue Of a paper !
currency. The increase oil the circu-
alton was attended and followed by :
IN advance IN prices, excessive i'm
consequent demand for {
,oin drawn from the banks 10 meet I
abroad, a simultaneous re- {
luction of the paper curreney,and the {
distress Of merchants and 8
,ankers. As the circulation Of a bank c
s a source Of profit, and as the mana c
,ers are usually disposed 10 Oblige G
heir patrons by loans and aeeOmmO- {
IatiOns, il can never be wise 70 allow {
,anks and parties who have pecunia- c
y interests at stake n increase or di- [
ninish the volume Of currency Ia the T
,OuntTy at their pleasure. Nor do C
Ind the condition Of things a Law or Z
ule on which We can safely rely. q
JpOn these views I form the cOnclu- a
ion that the circulation Of the banks q
hould be fixed and limitel, and that Q
he power to change the volume OF 3
laper in circulation, within limits e. .
ablished by law, should remain In Q
he Treasury Department. A degree n
n the volume Of the currency Is es- =
ential for two reasons: First, the c
usiness of the Department cannot be 3