New-York tribune., 1873-06-28
DOES PROTECTION PRorECTt"

This the title of an ingenious letter from Col.
w. M. Gr0svenor which we publish on our fourth
page this morning Mr.. Grosvenor undertakes to
show that the progress Of manufacturing in the
United States was less decided from 1850 to
1870 than it was from 1850 to 1860, the reason
being that our tariff of recent years has been
highly protective, and therefore unfavorable
to the growth of manufactures The writer
of an article in THE DAILY TRIBUNE of June
7 had taken the position that the census re-
turns demonstrated that the growth of manu-
factures in this country was greater from 1850
TO 1870, in spite of the war, than in any pre-
vious decade, and that therefore Protection
did Protect. He grounded this conclusion on
a comparison of the average values of manufac-
tured products per head, as ascertained from the
census, for each of the years 1850, 1860 and 1870
That average he found to be S43 46 in 1850,
$50 o. in 1860 and $109 IS in 1870. Col
GrOsvenor labOrs to prove that the relations
between the above figures, representing the
average of manufactured products per head,
are exactly the reverse Of the relations be-
tween the facts they purpOrt to represent.
In other words, that American manufactures
increased at a less rapid rate from 1850 to 1870
nately the census returns previous TO 1870
give us no data fox arriving at the quantity of
manufactured products. We cannot tell the
number of tons of iron and yards of cloth
turned out in 1850 and in 1860. We have,
therefore, to base our comparisons on the
qucksand of money values, and our conclu-
siOns must necessarily be of the most gross
and general nature.
Comparing 1850 with 1860, and 1850 with
1870, We find in each case an initiation of the
currency and On increase of the average
prices of labor subsistence, and manufactured
goods. Col. Grosvenor makes the most Of the
paper money initiation of 1870, but says abso-
lutely nothing Of the paper money and gold
imitation of 1850. He vigorously cuts down
the money values Of 1870 to make them cor
respond with the values of 1860, but Omts to
perform the same service for the values of
1860, which are in like manner inflated as
compared with those of 1850. Hence his ar
gument is wholly inconclusve; hence we re-
fuse TO be convinced that Protection does not
Protect.
Tue total product of tho California gold
mines from 1949 to 1850, inclusive, was about
u W buo otOCh VI Iu6
precious metals which affected prices through
out the world, and very sensibly ia the United
States The aggregate amount of deposits in
the banks of the United States was $129. 600, 900
on the 1st Of January, 1851, and s957, ,O90,O 900
on the lat of January, 1851. This was consid-
cred to be initiation by sound business men in
those days. The bank note circulation WAS
$155,OOO,OOO on the 1st Of January. 1851, and
$2O9, ,OOO, 900 on the 1st Of January, 1851. The
bank loans and discounts were S4l4, 100000 on
the 1st of January, 1851, and S6s7.OoO,Ooo on
the LIST of January, 1851. Indeed these figures
of bank deposits and discounts make very
respectable appearance, even when compared
with those of 1871, for in March Of that year
the loans and discounts of all the national
banks were only $7o4. 900, and the deposits
1851 100000. Currency, bank deposits, credit,
these, Mr.. Grosvenor will admit, are
tho elements of which prices are
made. and not currency alone Our
figures show that these in 1860 were almost
IL not quite. "a favossble 10 imitation wheu