The Maryville times. (Maryville, Tenn.) 1884-1944, 1899-05-27
EFFECT ON BUSINESS.
Results Invariably Wrought by
Tariff Changes.
Statistics for Sixty-Five Years show
That Financial Stringency Has
Always Followed Free
Trade Legislation.

Always Followed Free
Trade Legislation.
1t will be interesting to note the cor
relation between tariff changes and
business conditions from as early a
date as 1888. The country had marvel
ously prospered under the protective
tariffs of 1924 and 1928, that of the
first-named year being really the first
protective tariff that gave protection.
The passage of these tariffs, in such
quick succession, afforded profound
and general relief from the depression
caused by the repeal of the protective
tariff of 1912, and, as Webster re-
marked: The change was as great as
was wrought when Hamilton smote
the rock of public credit and abundant
streams of revenue gushed forth"
In 1888 a hostile congress enacted a
free trade tariff. Financial depres-
sion followed, manufacturers and mer-
chants suspended, and the situation
grew worse and worse, until the cul-
mination was reached in the crises of
1897. This was one of the most disas-
trous financial revolutions ever known
at that time, being even more severe
than that which followed the repeal, in
1916, of the tariff of 1912.
1t is regrettable that we have no sta
tistics of failures resulting from this
Panic of 1887. Its severity is, however,
expressed in the well-authenticated
statement that bank loans and dis
counts were reduced more than one
half, and that the money loss to the
country was not less than $1,000, Co.,
600.
In 1912 protective tariff again gave
relief to the country. Business revived
everywhere and confidence was re-
stored. After four years of almost UNI
interrupted prosperity there came the
| iniquitous low tariff of 1916, followed
by most disastrous consequences to
business by financial revolution and by
| the entire arrangement of the none
tary system of the country. The evil
results of this free trade policy, which
prevailed for II years, were, however,
| for several years greatly modified by
| an unusual and accidental series of
events, beginning with the Mexican
war, which of itself put into circula-
ton more than $1O0,000,000. This was
followed by the famine in Ireland,
which drew hence our entire surplus OF
| food products, for which heavy pay
ments were made. Then came, as other
counteracting influences, the discov-
cries of gold in California in 1919; the
| European revolutions from 1S4S to 1851,
which almost paralyzed foreign agri-
culture and manufacturing industries
| and increased the demands upon this
country, and, finally, the Crimean war,
which caused tremendous inquiry for
our agricultural surplus. These events
were accidental and unique.
But with 1854 the effect produced by
these events disappeared and orr APP
parent prosperity came to an end. We
were unable, under a low tariff, sue
cessfully to compete with foreign man
ufacturers, and the inevitable results of
free trade policy followed. In 1857
the democrats in congress again re-
duced the duties, already too low, and
again a financial revolution swept
through the country. The effects OF
this panic were observable during the
entire term of President Buchanan.
The number of failures in 1Sj; was
1882, with 1921, 100000 of liabilities,
and an average liability of $59,154.
This appears to have been more dis
astrous crisis, so far as concerned total
and average liabilities, than any of the
subsequent crises, except that of 1898
and, considering the interests affected
financial as well as commercial and in.
dustrial, it was undoubtedly terrible
and far-reaching disaster.
The failures in the following yeal
were 1925, with sos, 794, 900 of liabilities
in 1859 they numbered 1913, with S64,
number was 3,676, involving $79,SO7,
Geo of liabilities. These figures do not
indicate recovery, but rather eNhaus
ton, and this view is confirmed by the
following extract from the message o.
Mr.. Buchanan in 1861:
with unsurpassed plenty in all the pro.
auctions and all the elements of natura
wealth, our manufacturers have suspend
ed our public works are retarded; our pri-
vate enterprises of different kinds are
| abandoned, and thousands of useful Ia
borers are thrown out of employment anC
reduced to want. We have possessed al
the elements of material wealth in rich
abundance, and yet, Notwithstanding al
these advantages, our country, in its mon.
etary interests, is in a deplorable condi.
ton"
In 1861 protective tariff, known a.
the Morrill, tariff, was enacted. TIL,
crisis of that year, which was wholly
due to the outbreak of the war, resulted
in 6,993 failures, with $207, 100000 O.
liabilities, and an average of Sa9,631
After the first shock of the war tn,
beneficial effects of the protective tar
if became observable, and by 1863 The
number of failures fell to 495, with 81,
$4,000 of liabilities and an average o.
$16,343. Owing to the enormous eX
pansion in business, the result of thu
war and the financial disturbances in
cident thereto, the number of failures