Clarksville weekly chronicle. (Clarksville, Tenn.) 1873-1890, 1878-10-12
THE TARIFF AND THE CUR
RENCK.

capable of being rectified, in regard
to the relative prominence they
have given to the tariff and the
currency as questions for party agi-
tatiOn, thrusting the tariff into the
background while greenbacks are
made the alpha and omega of our
platforms and our Oratory. We in
troduced the subject then inciden-
tally in connection with our COM
ments upon the platforms of the
two parties adopted in the New
York conventions; we propose now
to examine the two questions on
their own merits, irrespective of
their availability in party strategy,
believing the present moment pecul-
iarly favorable tOsuch consideration
now that it appears that the Dem
Ocracy of New York is even less in
accord with the South and West on
the currency question than it is in
reference to the tariff.
We will commence by reconciling
two opinions which we have Occa-
sionally expressed and which on
the surface seem inconsistent with
one another. We have maintained
that the contraction of the currency
effected by Mr.. Sherman through
the measures he has taken as pre-
liminary to resumption are prom
inent cause of stagnatiOn in business,
while on the other hand we have
contended that the money now in
circulation is sufficient for the bust
ness transactions of the country.
These two propositions are only APP
parently contradictory. A period of
abrupt transition in regard to cur
rency, increase or diminutiOn of
taxation, or any other matter di-
rectly affecting values, whether real
or nominal, always exercises an
adverse influence on the activity of
business transactions so long as the
transition lasts, whatever may be
its nature. Uncertainty is the
greatest impediment to trade and
commerce, because men are reluc-
tant to invest their means in the
purchase or sale of commodities
while a process is going on which
subjects their value to constant
changes, the amount of which cam
not be calculated beforehand. Now
what transition could exercise a
more disturbing influence on values
than that change of fiscal policy
which commenced about the year
1874? a policy of enormous in
flation was followed by one of abrupt
contraction, at the same time that
gold, then adopted as the exclusive
standard of value by all Europe and
America, was produced in quanti-
ties less than before, both absolutely
and relatively with the production
of silver. The necessary result of
this was a universal contraction in
nominal values, in the profits of
trade, wages of labor and, while
it was uncertain how far this con-
traction would go, a necessary stag
nation in trade and commerce from
the simple fact that no man wants
to buy when it is certain that what
he buys will be worth less six
months hence than it is now and
uncertain how much less. But all
this does not prove that there is not
enough for the commercial transac-
tiOns of the country. On the con-
trary we believe that there is more
than enough, not more than the
business of the nation ought to need,
but more than it does need. Every
thing goes to show that the currency
now in circulation cannot all of it
beemplOyed in such trade as is going
on row; it is seeking investment in
everything besides trade; both man
ufacturers and merchants and turn
ing bondhOlders. Mr.. Sherman
some time ago boosted that the ma
ton must be prosperous because the
Government could borrow money
at less interest than ever before.
Instead of proving prosperity, this
phenomenon was a certain proof of
depression in business. Men are
willing to invest money in Govern
ment bonds ut any rate of interest,
because there is no other paying in
vestment. No one would invest his
money in bonds at four and a half
per cent. who could find any bust
ness in which he could turn it over
quick and make good profits at
every turn. Let business arrive at
this stage of activity and four per
cent. bonds will soon have no sale,
Government will have to pay five
and six per cent, and so will every
one else who needs money, and it
will be a sign of increasing prosper
ity. A low rate of interest means
low profits in business, and low
profits mean stagnation.
What is it we want, then? Not
more money, but better chances to
use it with profit. Now what is
called a protective tariff is, and is
intended to be, an arrangement of
import duties such as to prevent
foreign commerce, which is the only
means of employing our money
with profit. The protective tariff
has forced the production of innu-
merable articles in excess of what
the home market will consume and
it has forced the assembling of a
great body of special workmen in
our midst who can do nothing but
work at their speciality, and in doing
this has shut out all but home mar
kets and restricted the products of
this specialized labor to home con-
sumption, which is demonstrably
unable to consume them hence the
accumulation of unstable products,
tho forced inactiOn of skilled labor.