New-York tribune., 1886-03-11
PROTECTION AND MONEY
EFFECT OF THE TARIFF ON CIRCULATION
SILVER NOT so STEADY COMMODITY As NAcGEarL
THE BANKING SYSTEM.


| NEw-HAvEN, March 10.-Pr0fcssor Thomn.
sons ninih lecture GU protection crowded g,r,h
Sheffield Hall Tonight His subject was Pro,ec,io
and Money lie argued that although money wa, a
! commodity yet no other commodity was 90 hanne,s,
and restricted, and he showed how protection has thrown
the balance of trade in favor OF this country bgrn nm
its wealth retaining home what was once a s,ar,a
| Of great revenue for England The speaker then p.
viewed the history OF tine former will cat" baokp
system East and West and praised the presen, t,o,
banking system, which be sal OF the bes. bar II,
was too expensive for the aud poorer cou,tr.
OF America These latter should have something oeaper
The speaker maintained tnat America di not want rea
trade money ave have had enough OF that he .aa
and then lie related instances OF the trouble and os
stoned here tie private and nor
sOna banks. One was that OF FFeHcbman who 10 I-Ii
landed In Savannah, Ca. with $4,000 ln gold which Ia
deposited In one OF ths banks lie was bound for
Boston, and allowed to draw out only bu,
when no left the place. The value Of the bin. fai.I
rapidly the further hc got from Savannah that
when he reacned to the "uIb" rs prop,rty b,I
shrunk about 80 per cent Every st1beman and ferry
keeper had bank Of his own in those days" went on
the speaker. "SucA free trade IN money tho
Uuited states Bank finally pat down At thts
there nothing easier to knock than on 0,
banks When a person attempted to pass a bill tho
merchant took down cOuntsrfe dstectOr aud scru,l.
nzed the bill for length thickness color weight locality
etc. II 1t found ali right in these respects from
to 10 per discounted from II according 30 tho
distance OF the bill from its bank and then the trade
was cOnsummated.
THE prominent effects OF protection on our monetary
circulation that It prevents drain Of god and silver
from u.s. to favorable balance Il trade
and maintains the useful supply OF for industrial
Gold goes from the agricultural countries those
devoted h CHEST grades OF diversified manufacture
to purchase supplies England formerly ned sl.IOo..
600 900 OF United states bonds THIS wa. IN the plr al
free trade But protection has developed
try and compelled the return 10 Us OF large part
National bonded eHIedhess ami ltls now held In oar
own land"
Traders claim that things were cheapest where money
scarcest lie cited Portugal and japan as Instances
"The United states formerly similarly siui-ed.
Now, under partial fee trade policy forced upon 40
the cannOns mouth Japan ls suffering for the want Of
money and has 40 assurance that ls suucrI-s Will IA
the near tutuIe De aIsNlated money Is more .hAl tAe
instrument OF exchange IL ls the Instrument
paper into association with, perhaps. 6O1.O0D
persons through this association, from the ncwsboy
press aud II money annihiaed this assOcla
ton would be suspended. We could neither buy nor
powerless tue savage. II money is not plenty a'soci
alton is limited aud channels clogged II "a large supply
OF money comes Joins hand 10 hind stimulates .er
prise finds new opening. ana makes produce master of
the situation"
In exploding the freetrade argument that balance
OF trade Is ia .aey the pelker sHd; oar exports
exceed imports By the charges for ships .ls0
we are losing ground But we told that our silver
policy specimen result OF projection, that the Gov
ernment buying up the bulk OF the output Of sil.
yer and putting it into sO-cent dollars which
carrying to rnn, diving out gold and periug
resumption Now II is not protection principle FOR hs
Government to buy up the product OF any one set OF
The Bland law of 1877 not creation Ot the
prOtcctioniss The South and West favored II. such
men as Carlisle. MOrrsO Buckner and Bland AMI all
West except Huyd l. protectionsts who are now
opposing this perous coinage, for example, Cleveland
Manning, Kelley Hoar and Hawley. There is .0me-
thing be said for the law but the great mistake Was
IN not limiting 1t to some specified time. lhe result
shows that the experiment has been failure aud
ought coinage Oft now. First because U is
for the interest OF the country 10 stop
coinage which is sweeping US TO the edge OF financial
preciplce secondly. because IL viii be for the interest
OF silver restore 1t the worlds by international
agreement. The supply Of gold IN the world is con.
stanty esseDing While its In the arts IS decreasing
IL Is estimated that In twrntylv years the consump
ton will keep pace with its production The supply Ot
the other hand IS much greater silver j. In n
creased supply and diminished demand Gold and silver
together stcadier than either alone yet silver as
steady az any other commodity except mackerel.
Laughter Strange to say mackere Is as steady as al.
most any American commodity which has been quoted
fnr ynnrs.n