People's party paper. [volume] (Atlanta, Ga.) 1891-1898, 1892-12-09
Prosperity and the Tariff
National Waterman.


National Waterman.
Since the old ghost of the tariff is
to be again brought out for inspection
by the incoming Democratic admin
istration a few plain facts drawn
from past history, concerning the
prosperity of the people under sys-
tenn of high or low tariff, may be
instructive. The Republican party
claims 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 po-
itically for nearly century, and yet
the people are willing to be periodi-
cally deceived even at this late date.
The promise of relief comes from
both parties and is based upon di-
rectly opposing conditions. A large
proportion of those who hold TO
these views are good citizens and
should be credited with honest in
tentions. 1t therefore becomes
matter of careful investigation to
determine as to the reasons for such
radical differences. Without at
tempting to discusss the merits or
dement's of free trade or protection,
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 sys-
TENS. 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 adversely
to the people. What is known as
the compromise tariff Of 1888 pro-
vides:
That, on the 31st of December, 1883,
all ad valorem duties of more than 20
per cent shall be reduced one tenth; on
the 31st 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, December 81,
1889 on the 31st of December, 1841,
one-half of the residue of such excess, to
be taken off and from and after the
31st of June, 1842, the remaining half of
such excess to be taken off, leaving
maximum of 90 per cent.
From this time until 1887 the
country prospered. The govern
ment was not only out of debt, but
actually distributed $28,101,646.O1
among the different States. The
currency had increased from SOL
100000 in 1880 to $149,000,000 in
1887. Then came the demand for
coin from England, together with
the specie circular from President
Van Buren,, which required all pay
ment for land to be in specie. AS a
result the banks failed, the money
fed, and the people suffered.
Again, in 1916, what is known as
the Walker tariff was passed, which
remained substantially unchanged
until 1857, when it was reduced to
an average of 20 per cent on duitable
imports. The circulation at the
close of the panic of 1843 is gwen at
about $60,000,00O, in 1847 at $164,-
100000, and in 1857 at $215,000,000.
Beginning with 1850 a steady export
of gold had taken place. Congress
demonetized all foreign com Febru-
airy 81, 1857, and drove 1t from the
country. A run was soon after
made upon a few banks, which dis
closed the fact that specie basis
was fraud, and general panic en-
sued. Contraction of the currency
at once began, so that by 1858 only
about 100000 was estimated as
in circulation.
The above is record of two Sc
rious 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 a few
notifications, until the present time.
In 1873, under the influence of a
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 de-
stroyed, and the aggregate volume
of currency had been reduced from
81, 1863, 400,217 IN 1866 to 1862, 1885,
1862 in 1873. Silver was demone-
TIED practically that year, and gen
eraL financial destruction prevailed.
Since that time the currency has
been steadily contracted, and the
panic has been continued. The
lesson to be drawn from these state
ments of fact are: that in spite of
the benefits 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 posi-
tive proof that ali this tariff tinker
ing and tariff talk is entirely useless,
and can do the people no good so
long as the currency of the country
is insufficient.