Staunton vindicator. [volume] (Staunton, Va.) 1860-1896, 1890-03-07
VOICE OF EXPERIENCE.
Hon. Hugh McCulloch Reviews
Blaine and Gladstone.
AVETERAN FINANCIER'S OPINION

Lessons from the History of the United
States-Why Panics Occur-Why Tariffs
Cannot Cause Prosperity.
The North American Review for January
contained an article by the Right Hon. w. e.
Gladstone advocating free commercial inter-
course between nations and a reply by the
Hon. James G.. Blaine which have excited
great interest. The New York Times has
now presented reply to Mr.. Blaine by the
venerable banker Hon. Hugh McCulloch,
founder of the state bank system that pre-
vailed in Indiana just before the war, comp
troller of the currency during part of the
war, secretary of the treasury under Presi-
dent johnson for four years and under Presi-
dent Arthur for five NOTWITHSTANDING the only
man who has held that office twice. Follow
ing is Mr.. McCulloch's article:
Mr. Gladstone treats the question of inter-
national trade as if it were not only an eco
nomic but also a scientific question, applica-
BILE alike to all countries and to all conditions
of the same country; to the United States and
to Great Britain; to the former when she was
dependent upon the latter for manufactured
goods and now, when she is leader among
the nations in the extent and variety of her
manufactures.
Mr. Blaine, on the contrary, disregards the
doctrine of scientific political economy in its
bearings upon international trade, or rather
he does not consider political economy as one
of the exact sciences, whose doctrines are
equally applicable to all countries and to all
stages of their Development
Mr. Gladstone is q believer in free trade
the free trade which, in connection with her
manufactures, has made that little kingdom
not fortieth part as large as the United
tato tQCt1 ar n1
uring nation in the world, upon whose colo
uial domains the sun never sets.
Mr. Blaine believes that it is to her prOtec-
tive policy that the unparalleled growth and
general prosperity of the United States are
mainly attributable.
Mr.. Gladstone regards international trade
as barter, and believes that such trade, essen
tial as it may be to national greatness, can
not be healthily carried on unless this is its
character.
Mr. Blaine knows, of course, that trade be-
tween nations must mainly be carried on by
mutual exchanges; that no nation can be long
engaged in trade with adverse balances con-
stantly accruing, to be settled with coin, I'M
less coin is one of its chief products; but he
believes that such are the circumstances of
the United States that she can only be pros
porous by ignoring the policy of free ex-
changes; that nothing could be more injurious
to her people than for her to open her ports
to the manufactures of other countries free
from import duties or subject only to such
duties as might be needed for revenue; that
owing to cheaper labor in Europe manufact-
urers in the United States could not, even in
their home markets, compete with European
manufacturers.
Mr. Gladstone goes beyond the economic
question and speaks of protection as moral
question, and by this presentation of it he has
in certain quarters subjected himself to ridi-
cule. That there is anything immoral in
protective tariff has never entered into the
| conception of protectionists, but to Mr.. Glad
stone there could be no other conclusion. He
| regards monopoly as the necessary outgrowth
| of protection, and consequently at war with
| freedom; that protective duties lead to waste
| full expenditures of the public moneys; that
| they are burdensome to consumers and un-
! equal in their burdens. If these views are
| sound is he not right in denouncing protect
| i've tariff as immoral?
| Mr.. Blaine presents no argument against
these views upon the moral bearing of the
question BECAUSE perhaps, he does not con-
| slider it necessary.
GREAT BRITAINS REVENUE SYSTEM.
Now, although it may be presumptuous in
| me to avow it, I am far from being in full
sympathy with either Of these distinguished
| statesmen. While believe that the people of
| all nations would be better and happier if all
| distractions to international trade were re-
| moved, and to this extent agree with Mr..
Gladstone, l see no grounds for even the
hone that this will be done on this side of the
millennium.
Great progress has been made within the
present century in the assimilation of nations,
| but they are still wide apart in their forms
of government the nature of their produc-
TONS their land tenures, and consequently in
| their modes of taxation. So different are
they In these respects that system of reye-
| nue which would be well suited to one nation
! might be quite unsuited to another.
Free trade has proved to be wise and whole
some for Great Britain. She is rich and able
| to support an expensive government by taxes
upon land and incomes; but she has been I'M
| able to indoctrinate her Canadian aAd Aus
tralian colonies with her free trade policys
| nor has it been long since she pushed protec-
ton to prohibition. A great many wise
| things can be found in the tariff laws OF the
| United States, but nothing SO unwiea as were
the corn laws of Great Britain. We sustain
protective duties on the ground that they en-
courage home production. we do not put
| heavy duties, if any, upon articles that we
| cannot produce and which are in common
| Use. Taxes upon tea and coffee were bad
| enough. but we never had anything upon our
| tax rolls 80 bad as the British tax upon bread
stuffs, which everybody needed and which
could not be produced in sufficient quantity
at home.
No nations SO closely resemble each other
in the character of their people and the es-
sental nature of their governments as the
United States and Great Britain, and yet
they differ decidedly in their revenue systems.
and they thus differ because they differ, not
| only in age, but in extent OF territory ana
governmental control Great Britain has
passed the period Of rapid growth; her peo-
pie. although not homogeneous, are so fixed
In habits as to be rarely affected by such
movements as have frequently disturbed the
equilibrium Of other nations Parliament is
her only law making power Her colonies
are to some extent self governing, but Eng
land, Scotland and Ireland are united under
one head and subject to one jurisdiction,
Neither has control of its local interests
such control as Ireland is now struggling to
obtain Taxes are high in Great Britain, but
her debt is large and her expenditures, inn
perial and municipal, are heavy, but in no
other country are they 80 little burdensome,
so little felt by the people generally.
Having substantially adopted the policy of
free trade she looks chiefly to lands and IN
comes for her revenue, and as the lands are
held by comparatively few and the taxes
upon them constitute part of their rentals,
they, like the income taxes, fall upon those
who are able to pay them. With wisdom
worthy of imitation, she imposes 40 taxes
upon productive industry That has full
ply, and il not aided by The government
nothing is done to impair or check its freest
ffot,a han 7tauaf1 mo
system seems to me an exhibition of states
manship of the highest order. The members
of parliament receive no pay for their serv-
ices, but her cabinet ministers-the advisers
of her majesty. who are ex-officio members
receive large salaries, as do her judges and
other officers. Hers is not q niggardly gov
ernment but it is not wasteful Yhe rich
taxpayers have much to say about the pub
lie expenditures, and they are careful to see
to it that they are neither misdirected nor
extravaganza.