The midland journal. (Rising Sun, Md.) 1885-1947, 1892-12-16
Prosperity and the Tariff.

| incoming Democratic administration few
plain facts drawn from past history, con-
cerning the prosperity of the people under
system of high or low tariff, may be instruc.
tive. The Republican party claim that
prosperity can only be possible through a
high protective tariff, while the Democrats
contend with equal zeal that good times
will always wait upon free trade or
revenue tariff.
This has been the situation politically for
nearly century, and yet the people are
willing to be periodically deceived even at
this late date. The promise of relief comes
from both parties and is based upon directly
opposing conditions. A large proportion Of
those who hold to these views are good citi-
zens and should be credited with honest
intentions. 1t therefore becomes matter
OF careful investigation 10 determine as to
the reasons for such radical differences.
Without attempting to discuss the merits
or demerits of free trade or protection, q
final decision upon which has never been
reached, it is perfectly safe and susceptible
OF proof to state that good times as we'll as
bad times have come to the people under
both systems. Such being the case, it must
be admitted that some other facts aside from
the tariff enter into the economic questions
Of government which brings prosperity or
adversity 10 the people. What is known as
the compromise tariff of 1888 proyides:
That, on the 3lst of December, 1888, all
ad valorem duties Of more than 20 per cent
shall be reduced one.tend; on the 3lst of
december, 1885, there shall be another
reduction of one-tenth on duties of the same
class ; another equal reduction, on the same
class and the same principle, the 3lst of
December, 1887 another do, do, Decem-
Der 81, 1889; on the 3lst of December, ls4I,
one. half Of the residue of such excess. 10 be
taken off; and from and after the 31st of
June, 1872, the remaining half of such
excess to be taken off, leaving a maximum
of 20 per cent.
From this time until 1887 the country
prospered. The Government was not onIv
out of debt, but actually distributed S2S,.
lOl ,646.Ol among the different States. The
currency had increased from SOL 900 900 in
1880 to $l49, 900, 900 in 1887. Then came
the demand for coin from England, together
with the specie circular from President Van
Buren, which required all payments fo1
land to be in specie. AS result the banks
failed, the money fed, and the people
suffered.
Again, 1S46, what is known as the Walk
er tariff was passed. which remained sub.
stantially unchanged until 1857, when it
was reduced to an average of 20 per cent ON
dutlable imports. The circulation at the
close of the panic in 1S43 is given at about
$50, 600 900. in ls47 at sos, 900, 900, and in
1857 at $215,0 900. Beginning with
1850 steady export of gold had taken
place. Congress demonetized all foreign coin
February 21, 1857, and drive from the
country. A run was soon after made upon
a few banks, which disclosed the fact that
specie basis was fraud, and general panic
ensued. Contraction of the currency at
once began. so that by 1858 only about
$40, 100000 was estimated as in circulation.
The above is a record of two serious
panics. during which property values were
almost eliminated, and this. too, under the
operation of the lowest tariff of modern
years.
The Morrill, tariff was passed in 1861,
and has continued in force, with few mod.
i6cations. until the present time. In 1873,
under the influence ofa high protective
tariff, came the most destructive panic of
the century. Here, again is found the
universal cause for such conditions. Green.
backs had been called in and destroyed
and the aggregate volume OF currency had
been reduced from 81 1863, ,4O9.2l7 in 1866
$652 1886, 1852 in 1878. Silver was demon
etized practically that year, and general
financial destruction prevailed. Since that
time the currency has been steadily con.
tracted, and the panic has been continued,
The lesson to be drawn from these state.
ments Of fact are: that in spite of the bene-
fits which may result from either free trade
or protection, hard times and distress will
follow when the volume Of currency is
reduced below the wants of business. The
financial condition of the country at the
periods above referred to is positive proof
that all this tariff tinkering and tariff talk
is entirely useless and can do the people no
good so long as the currency of the country
is insufficient.
If Congress would issue to the people
direct a sufficient amount of currency, tree
from the tribute now levied by the banks
aud usurers the real foundation for prosper
ity ard happier conditions would be laid.
Supplement ;his with an income tax where.
by those who absorb the profits of labor 10
production would be compelled to pay their
full share of Government expenses, and
discussion of the tariff might be profitable.
Until then il is an illusion and snare.
The plain fact that hard times, business,
distress, want and wretchedness, have come
to the people under both free trade and
protection cannot be denied. Another fact
equally plain is that no man living or dead
ever experienced hard times, with its atten-
dant miseries, when there was plenty of
money.-Nationat Watchman.
"Master, your best horse won't eat