New-York tribune., 1872-12-03

Sn,rinas Of PROJECTION and Free Trsdo, and ~
mn, oh m baniena OF tho war tho nation advanced
mpIdiy aud safely IN the Development OF its natural
aso anticipate general reduction In the percentage OF
Customs dutes The reduction, however should not be
shomld be had also TO the condition OF the various
branches Of industry In which the people are ensed
FREE TRADE QUESTION
For purposes OF Goyornmont the principles OF po-
litical economy national, aud not cosmopolitan
nation that produce given article ut css coat than
Il be produced elsewhere may wiscy accept free
trade I'm it hut nation having natural advantages Tor
s production yet destitute of skill In the Incident art or
trade must walt for tho opportunity that sometimes
comes from the calamity Of war, or secure
more economical and more constant suRpp nnP1pn
facilities exist the period OF necessary protection Ia
short compared with the lifetime OF oall?u WINE
asonabc natural facilities do not exist, then system
Of duties for Protection is present ana future pun
however arc the natural resources Of the
United States that we either are or may mlay
and more experienced countries OF the world In tho pro
ducton Of the chief articles OF personal necessity com
fort and luxury and Of thu machinery by when tnese
articles are produced or obtained Herein sufficient
Justification for the existing protective Nsen hnu i0r
Its continuance during tho transition period NOT ~ the
prospect OF ultimate successful competition with other
countries disturbed by the circumstanoe nat tho wages
OF labor are higher in this country than In those'
ten years since y S nSTS % E91oe 1I Sny was 6e
reduction OF the wages OF labor to the European stand
ard, that thought has disappeared prooa9y IA pressure
the fact that ngn wages on VI
have stimulated emigration until there Is
near approach TO equality IN the COSY OF
labor and OF the cooxistng fact that the ADDITION
thus made 10 tho number OF laDorers mas qhii qhii
aided in the development OF our resources without ye
any quarter excess Of products or retardg IN any
degree the prosperity of the laboring population Ihl5
prosperity their part is associated with higher anu
and condition.! IL being given tllgt ntell,Sent
person has all the special kno"l.dse oI n an ar ar
bestraned operative, who outside OF THIS special train
ing and experience Is, and machinery being gwen also
ff frs1l liferf
ad'ti i b WOES Of even 100 uer cent represents bnt
small part of the advantage gained. yet tue sp' elal
training and KNOWLEDGE of the lguOrant man Is the OASIS
Of the improvements mades
American laOorer aud then multiplied many hundred
thousand times represents the advantage OF America
Europe and ASIA in the contest for hna peaceful
supremacy IN the afdrs OF the world. Thus America
solving the Industrial problem OF the ages ny eAdctlhs
cheap production from expensive labor The reason for
these remarks may be found IN the opinion entertain
that the Iih syscin OF the country has c"ntHDuied
and prosperity s the only basis on when even
a wise financial policy can rest
LEGALrENDIR NOTES.
In discussing the other changes caused by the war
issue OF United states notes and OF notes by tue national
banks should he considered together Indeed they are
necessary parts Of financial system AM neither can
be substituted Tor tho other without general disturbance
10 the Slate bauk system and 10 any systom Of private
hanks. as TO render arguments in its behalf IN
these respects necessary, while the SUBSTITUTION or
an equal amount OF United states notes as
currency would be productive or serious evil
and losses. Tr,t. The national banks mold ncariy
our hundred million United states bonds which othor
Nise would be thrown upon tbe market, absorbing
emount of intrct 40 tie annual balances against ns In
our account current With other couEtes. second. one
office OF bank s. 90 agcrc gate The capital OF small pos
sessors and thereby 10 furnish means IN aid ofln
porlant commercial aud financial undertaking.
not only at the ccuCgs but in tie remote aud
nev,ly Settled uart4 OF the country Thirdly The
national banks are used aida to The Gov
crease W The number OF the detienated dcposorcs and
increase Of tho pubic EXPENSES without
the least apprccaOle advantage. fouithly they
facilitate exchange between different sections Of
the country, thus diminishing the cost OF commCr
cial transactions Fthy, they arc generally
equal capital to demand exorbtant rates OF glerel~
but docs not follow from these views nor woun u ful
low from those of similar character which might be
that the issue Of notcs directly by the Government
currency yielded 70 tha nafouaIDauks The circulation
Of each bank IS fixed arbitrarily byA rule Of law.
BASK CIRCULATION SHOULD Be LINrTsD.
Aggregate circulation is therefore, fixed sum, and
queDy there Is practically reserve 70 meet the
increased demand Tor money casoncd by extraordn
airy events at abroad, and arising periodcaiy
with the incoming Of harvest. The old state bank
system is sometimes commended FOR &c quality termed
elasticity, hut that quality as FOUND IN that system
was the principal. source OF financial dsaster Under
that system In obeyance oi Iresent demand Tor com
there was prac caB no limt 10 me issue o. aPtI
currency The increase Of the circulation Vas attended
and followed by an ady21ee N ~, ees edGeg e troT &
The banks 10 meet balances abroad, 70 Hmui
taneous reduction m the paper currency ana
the consequent distress oi merGhlnls ana DaLh
ers As the ,circnation OF bonk is source
of profit, and as the managers are usually 1 as
lions II can be wise 70 allow banks and parties
ho hgyf P yo,ar of e9rren IN TO- country at their
pIesire Nor do Ind the condition Of thi a law or
Views ! form the conclusion that the crcu
afion OF the banks should be fixed and
voIme Of paper ip circulation within limits established
by9hw, should remain in the Treasury Department
reasous Est. The business OF the Department canno
be transacted properly If limit s hxed ana me power
limit is detfed. a rule of this nature wonld
compel the Secretary to nsS SScuTule 6,h.Iai. large
the credit the Government In meeting the ordnarY
ness and political revolution In the United states Eu
rope ESPECIALLY would this be true, now that our 0rdl-
nary currency Expenditure are greatly OF our
currency revenue. secondly, there Is neces-
sity every Autumn for MOVING the crops WIN
they may in hand for export and consumption as
wantcd this work,hould be done IN the main before
tho lakes rivers aud canals are closed, and yet 1t can
be done without the use OF large amounts of cur
In theisummer months funds accumulate At the cen
teTs bnt the renewal OF bnsiugss ~ August aud sepiem
gives employment FOR large sums and leaves tlc or
nothing for forwarding m crop. IN OctobeT ana NOyen
ber Nor would this difficulty be obvlated by perna-
ncnt increase or peImane9t IeuuedGn 4I tfe
the natural order OF things, aud increases with
iS iS dance Of is haryess The crops cannot be
oved neruly by the aid Of bank balances checks and
J
states paid at "a the producers fhe money
finds way sp cdiY into the channels OF trade and 20
the commercial cCners but II II be allowed 20 remain
general after the reason for It's Issue has ceased
volume Of currency would be increased permanently
and tho year following the same process would be
repeated with the came results and thus would
the country depart more and more widely from
the policy OF resumption The problem Is 10 find way
increasing the currency for moving the crops, and
diminishing IL at when that work is done. Tnis Is
necessary work and inaemuch cannot be confined
the banks where but ia the Treasury Department can
the power he reposed While the currency
the practical to
accumulate large balances IN the Treasury during the
\ Summer 10 be used, II necessary, in the pur
4 chase OF the bonds IN the Autumn, thereby