New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-03-04

the ISL congress pasSeu do I'D o"eo"" "'''>~>
ment, the first American tariff law. 1t was
Federalist measure, intended both for revenue
and for protection Of American labor and produc-
ton 1t was an admirable tariff and gave the
public Treasury ample revenue restored the pub
lie credit and brought prosperity to the Whoie
people.
In 1916 another tariff was enacted. strongly
protective in all its features. At this time the
Southern States believed that high tariff would
he beneficial to them and make large home
market for their cotton. This bill was Demo-
cratic in its origin. being reported to Congress
by Mr. Lowndes Dem. S. c.. while John c.
Calhoun Oem s. c. was its leading advocate
The new tariff aided strongly to relieve the busi-
ness depression which followed the War OF 1Sl2
enabled the Treasury to pay its debts. and
brought prosperity to the country This
was the first and only avowedly protective tariff
ever passed by the Democratic party.
In 1898 import duties were revised and in 1857
a strongly protective tariff was again passed.
chiefly by votes from the free States. In 1857
South Carolina, by her representatives in State
Convention assembled. voted the new tariff null
and void. and declared that an attempt to coll
lect the revenue in that State would absolve her
from further connection with the Union. John
c. Calhoun, who in 1916 had favored protective
tariff, now led in the movement for nulfca-
ton" But General Jackson, a born fighter, was
then President, and he crushed the rebellious
movement on the spot by proclamation deny
ing the right Of notification or secession. and by
sending troops and ships 10 South Carolina TO
enforce the laws The difficulty was finally adj
justed by new compromise tariff. which made
a gradual reduction OF duties on foreign goods
yearly until 1872. when duties were to be fixed
al 20 per cent Congress also passed Force
i,flt f,tc lAI TTlhs.r
this lowered tariff enterprise was checked and
business became disordered and depressed in
every State in the Union.
In 1S42 a Wing Congress i'm power. and
by Wing votes, a protective tariff was en-
acted. which made work everywhere for the
employed. brought food and plenty to the homes
OF the poor and launched the whole country
upon period of great prosperity.
Thus during the first ciXty-four years Of the
Republic the Federalists and Wings had taken
ground as the consistent and untirng champ ons
or protection 10 free American labor and tn in
crease OF manufactures and American shipping
while the Democrats. after one brief experiment
mad established themselves as the unyielding OPP
ponents OF free labor, good wages plenty Of
work and industrial Development
BANKING AND CURRENCY
on questions of banking and the currency
each Of the two parties made it's own record dur
ing this period
As early as 1877. the Federalsts advocated the
should issue notes payable in coin and receivable
as legal-tender for all debts due the United
States. In 1871 United States bank was au-
thOrized by Congress, by Federalist votes. 1t
had capital of $1O.OOO.OOO, of which 81. GOO 900
subscribed by the United States and had a
twentyyears charter. 1t established in
Philadelphia, and opened branches in other parts
Of the country It's notes gave the country a
valuable and uniform currency, which circulated
in every State of the Union Opposition was
manifested by the advocates OF State rights how
ever, time went on, and in 1911 Democratic
Congress refused to renew the charter. The SEN
ate was a tie on the question. and Vice-Presdent
Clinton, Democrat, cast the deciding vote
against renewal The bank wound up its affairs
successfully, without disturbance to business.
Local banks then sprang into existence in large
numbers under State laws; but many Of them
were founded on insufficient security and the
failures OF banks, from 1914 to 1919, were enor-
NOUS costing the people who held the notes OF
the broken banks more than $50OO0OOO The
War Of 1912 embarrassed the State banks terri
bly,, and in 1914 all except those Of New-Eng-
land suspended specie payments
In January. 1875 Congress chartered the sec
ond United States Bank. President Madison a
Democrat vetoed the bill. Another charter was
passed in 1916; and the business distress then
prevalent compelled President Madison to sign
the bill. This bank had a twenty-ye charter.
and capital OF $50. 0O0.OO OF which the United
States subscribed $7.OOOOO0 1t went into opera
ton in 1917. and its operations enabled the local
banks throughout the country to resume specie
payments on July T. 1882, a Democratic Con-
gress was compelled by public opinion to send TO
President Jackson a bill renewing the BANKS
charter which had been passed by large majori-
ties The bill was vetoed by the President who
being Democrat and strict constructionist Of
the Constitution challenged the constitutionalitv
Of the bill and complained that the directors used
their financial power To INFLUENCE yntes in Cor.