New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-02-18

Is the outcome of mental atmosphere III ""'
certain fundamental principles cohcer""s '"0
financial and economic welfare OF the hd'o"
have come TO b. clearly seen. These principles
have vital bearing on questions no" ui''e'
agitation in the United States.
The first principle concerns the revenue Vi
government and the means Of securing 1t. IL IS
that the end and aim of a governments med
ding with its finances should be TO secure
we-balanced budget with moderate taxes as
rossible In America this principle would seem
TO demand some caution in reforming suouehy
the existing tariffs. which have far more 70 90
with the Governments revenue than III
France Such caution is all the more nee
essarv as the silver difficulty. which is far
from being finished and does not oe
pend on America alone. pushes steadily low
ard a deficit. The uncertainty ABOUT t"e
American tariffs has now kept up for some
weeks the rates of the Bank Of England "nie
the prospect Of new and Unforeseen movements
which are likely to result in American nnahces
helps to proong the present crisis in France
This IS strongly expressed by lie Pour ct lie
C,ntre" a Free-Trade journal Of finance, when
admits frankly that Protection must hold its
ovn so long as the disturbing causes Of interna-
tonal commerce continue international credt
and commercial exchanges would receive new
lif. from any monetary understanding. Ana II
is at a time of monetary MISUNDERSTANDING 'ha'
tariff reformers have come forward to add' py
a sudden change working havoc with national
revenue. A new disturbing element TO the cnaos
already existing.
NJ Sicgfred the Deputy for Havre. is another
authority on the foreign commerce Of France
who's voice in the past mas been constantly
raised against the policy Of protection; ana ne
is sim violently opposed TO any increase in the
In .afsh a. q
dinner IF Economists. has declared that he finds
a decisive reason for the monetary crisls not III
the practice Of Protection. AS Free-Tradcrs have
been clamoring so long. but in the rate 81 eX-
change The foreign commerce Of country
may be with another which has not the same
standard of exchange. as between France with
gold and India with silver; or worse yet, IL
may be with a nation like the Argentine
Republic having deprecated paper cur
rency In all the latter countries NJ S!eg-
fried points out. the depreciation OF eX-
change loads 10 an Increase Of expectation. for
which gold Is received. and u a corresponding
decrease % importation. which X Is attempted
T. replace by native industry. Thus the cotton
spinning ~ Bombay and Calcutta has taken
away large part Of The Indian and Chinese
market from Manchester. while in ten years the
production of sugar ir the Argentine Republic
per cent This is only the beginning Of long
list Of similar examples IN the face of which
countries with good money must either protect
themselves or suffer in their own foreign COM
mcrce.
This is a phenomenon which no mere taking
about tariffs viii explain. II is a pity. therefore,
when the legislators Of country already threat
ened with a heavy denct deliberately take to
tinkering with tariffs which supply the revenue
on the pretcnce that Free Trade. in the long run,
will remedy such disturbance in international
commerce NJ Siee!red is franker, II not wiser
First Of AL. he asserts sorrOwfully That no one
can be astonished If Protection makes its way
more and more in every country which has good
money and has t. defend itself against countries
which have not Second he has only two-fold
remedy TO propose against all these evis-a
tariff Of customs duties against countries having
an cquivaloit STANDARD Of exchange. and sec-
ond supplementary tariff against countries with
a deprecated currency. Whatever may be the
theoretical value Of this proposal, IL Is n COM
p!e,e admission Of what may be- set down
second principle. Protective tariffs are neces-
sary to a nations production and commerce un
der the present financial conditions Of the world
The necessities Of national revenue and its
dependence on protective customs duties are far
different in France and in the United States
on the one hand. the productive population Of
France may be roughly estimated only two
thirds that Of the United States. On the other
the yearly expenses of the French Govern
mcnt are two-nfths greater. while her avail
able receipts are only thrce-eighths in en-
cess Of those COMMANDED by the American Gov
eminent before the introduction Of the Mckinley
tariffs What may be reckoned the military
EXPENSES Of France army and navy. pensions
annual interest. etc. on that part of the public
debt due 10 war; amount to $2O.o00,O00 more
than the entire corresponding expense OF the
United States army and navy. Indian list and
pensions). And the customs receipts of France
are N500OO.O9o less than those OF the United
States IL 1890. As may be seen. the boidest
fnancier might hesitate before undertaking 10
balance the French budget. In country less
uniformly rich, and where the national debt was
less in the hands of the citizens themselves. II
Is doubtful II the present conversion of rentes.
which will save the Government over si2, 100000
each year, could ever have been carried through
Now Finance Minister Burdeau to whom the
project of conversion is due. Is known to have a
theory Of his own to the influence Of exchange
on the price of national productions whether
protected or not. What has not come to his
head is to set the cart before the horse and to
make Protection responsible for the threatened
deficit, or to consider bran l-new set OF tariffs
| reformed In the sense of Free Trade. as a pos
sble remedy
This primary attention TO securing the revenue
of the Government is based on third principle
which also deserves more consideration than It
gets in the United States. The difference Of ex-
change is bound to influence international COM
merce and national revenue, no matter what
economic policy Is adopted. Hard times which
are not the result of Protection will not be soft
ened by Free-Trade tariffs. least OF all where
the latter are sure to disturb yet further an al
ready disorganlzed revenue
The reaction in the minds OF Free Traders
themselves against the tendency to settle all
i Questions of finance by their own economic pol
Icy has brought out the most astonishing con-
lessions. Nj. Francis Maynard, Editor-n-C Chief OF
the .EIgaro." ami a neutral n the debate nates