The clarion. [volume] (Jackson, Miss.) 1883-1888, 1883-12-19

presses himself strongly IN favor o.
! low tariff with free trade ultimstsly
in view. He says the Democratic party
must come out squsrsly and holdy for
tariff reform, ahd that then Ne nay
look confidently for success next ysaf.
The strength Of the low tariff advocates,
he says, viii b mainly IN the West
The new industries springing up In the
South will make few converts TO protec-
ton for the reason that these industries
can thrive much better in competition
with Observation-Disclosures IN than than
without protection. he says that such
high tariff Democrats as may be driven
from the party by a determined stand
for tariff reform, car well be dispensed
with-that it Is manifestly un-Demo-
cratic to impose unequal and unjust
taxation, and the sooner We rid ourselves
of such Democrats the better. This Is
sound doctrine, and we are very glad to
see Gen. Mcclellan give such heroic
advice, bat when he advises against the
speedy payment of the national debt,
and deprecates the effect of this upon
our banking system, We must take issue
with him. The positions held by him
and Mr.. Arthur, as expressed il his mes
sage, are almost identical-only he bold
ly advocates a reduction of the tariff,
while the President intimates that q
reasonable curtailing would meet his
approval On the other branches Of fis-
cal legislation their views are identical.
Singularly enough, they both hail low
tariff as blessing, because 1t viii de
crease tie annual revenue, and therefore
postpone the payment of the public
debt. If We thought it would have such
an effect. we would regret it, though we
should continue to advocate the reform
OF the grounds of justice. But will Il
follow that the revenues will decrease
Many kinds of goods will be imported
under a low tariff which are virtually
prohibited now, so that, while upon suct
goods as it pays even now to import, the
duties may be much smaller, the defci
viii in all likelihood be more than com
pensated by the increase in the "nov
prohibited" class. At the same time tht
consumer will not feel the tax. fol
he has been paying it all the while, only
heretofore it has gone into the pocket,
of the Infant industries" whereas Their
it will go into the common treasury Oh
the nation.
Now let US see if the debt cannot be
paid without Injury to our commercial
interests and with evident benefit to oul
| general business and the welfare of oul
people. Mr.. Mcclellan says:
"The rapid paying off Of our national
| debt Is, in my opinion, not only uncalleC
| for, bat is creating serious alarm among
/ those in positions Of trust who must invest
in securities that are standard. Our excel
lent nstional bank system i seriously
| threatened by the prospect of having this
volume Of national debt swept away with.
out any immediate provision for anything
in the nature OF u security to take It's place.
| A friend Of mine who has, az a trustee in
a large institution, large investments to
make was seriously embarrassed a day or
two ago by the last call OF outstanding
bonds. He and his co-trustees had several
hundred th Dusand dollars 40 invested, and
| in reinyesting 100000 of the sun, in
question they were forced 10 buy 4 per cent
governments at over IL. What necessity
is there for this frantic paying off of our
| national debt?"
The alarm We think, exists no
where so far as the detriment to the
trade Of the country is concerned. No
doubt, there are fears among bankers
that decrease will be seen in their
enormous profits, or possibly even the
present banking system is threatened,
but that is all. The fact that the call
ing in of bonds forced a certain "friend
OF mine" to pay l22 for new 4 per cents,
is worth very little when the veal of the
whole country is Considered, and certain
ly the friend has no cause Of complaint
when he knew the conditions attaching to
the bonds when he bought them, and
when he went into the banking business
Now as to the necessity of paying off the
debt. We presume that by necessity
the General means. what good reason.
We have just shown that reduction in
the tariff need not be followed by a cor
responding reduction in the revenues.
and if the surplus were used in paying
off the debt the country would cease to
be taxed to pay interest. Now unless
the abolition of the debt will bring about
financial crisis, or reduce the currency
so appreciably as to render commerce
sluggish and difficult, the expenses of
the government are reduced and the
benefit is manifest. The debt can only
be paid of gradually, hence no sudden
effects can be felt from the destruction
IF securities and the consequent embar-
rassment of the banks. The charters
If the banks, being granted at diff
Ferent times and each running twenty
years, expire gradually. Now, if the
law authorizing the renewal of these
charters we're repealed, and, as each bank
vas forced out of business, the govern
nent we're to issue its own notes green
backs-for a sum equal to the currency
Withdrawn, the Interests of trade would
not suffer, and We would have substituted
a debt on which no interest n as to be
paid for an interest bearing one. Besides
the coin which had been locked up as
the basis of the bank issues, would have
to seek investment elsewhere, and this
would cause a stimulus in business
which would inevitably tend to busi-
ness activity and prosperity. As to the
value of greenbaeks, if the credit of the
government Is as good as it Is repre-
'ented-if its bonds are worth on the
market a premium of % per cent-it is
lutte likely that its current notes would |
BASS at par, especially If made legal
ender.
The ew Orleans Riot.
The fer. ntest over the guberna-
orial nomination in Louisiana has
aused much trouble In the country
many Of them sending two sets
f delegates to the State Convention,