Year: 1879

q ~.
!, WHAT THE GOVERNMENT MAY DO TO RI
LIEVE THE PEOPLE.


r In addition to what was suggested in th


first number of these papers, in relation
the currency, the coming Of silver wort
, 4124 grains in the dollar, with its legal ten
der value restricted to the payment of debt
contracted before resumption, the Nationu
Government may do much to relieve th
present distress The abandonment of tn


protective system by which the people a
large are taxed for favored few, woult


at once be followed by a revival of trad'


and consequent advancement in the pric


of our exports-including cotton, Eng


land is our greatest customer for cotton


yet the tariff is so arranged that Englisl


manufactures of cotton are not allowed to


come to this country in exchange for the


raw material. I do not propose to discuss
| the old questions between the free4traders


and protectionists. Our people are now


wholly committed to free trade, but in as


certaining the causes of the present dis


tress and the remedy, it would be grave


omission to overlook the present protecN


tive tariff. will state for the benefit of


the young men who have come to manhood


since discussion on this subject ceased,


that the duty imposed by protective tariff


is not wholly paid to the government, but


in most instances when the article taxed is


produced in the United States, the tariff is
so high as to prohibit its importation, and


this increased price thus allowed to be


charged by the home manufacturers, nearly


equaling the duty tax, is paid by the con-


sumner to the home manufacturers. Thus,


if duty on the foreign article be so per


cent. on its cash value, it cannot be import
ed if similar article is made here and sold
at an advance of 40 per cent and the man
ufacturer here can charge this 40 per cent.
and collect 1.-THE whole amount of it going
into his pocket, since the importation of
the foreign article is prohibited by the tax.
In this way it is safe to say that the people
of the United States pay fully as much to
American manufacturers in the shape of in
creased prices as they pay in the way of
revenue into the Federal Treasury. This
enormous sum is taken directly from one
class of the people and paid to another.
Ths class thus imposed on are the farmers
and especially the producers of cotton and
wheat, as these articles constitute so large
part of our exports.


Since there has been 80 little discussion
of the tariff question of late, it may not be
improper to explain how tariff on imports
largely affects the value of the exports of
this country, and largely falls on them. All
foreign commerce is barter-a mere ex-
change by one country of its surplus pro-
ducts for the surplus products of another.
Money, gold and silver, perform little more
than the function of a measure of values |
in this oommerce-the mere yard-stick, if |
I may use the expression, by which the
value of the exchanged commodities is as
No nation is an exporter of
coin unless it be a producer of it, by haV-
ing gold or silver mines; and then coin or
bullion is itself an article of commerce.
The country producing the coin exchanges
it for things that it needs more than it does
money.


That this is the function of money, is
evident when we consider that it passes
from one country to another, only i'll the
settlement of balances-that country re-
hitting it which has bought from another
moro than it has sold to it; and this bal-
lnce according to the varying fortunes of
rade is sometimes in favor of the one
country and sometimes in favor of the
,ther. 1t is clear that unless a country
PRODUCES gold and silver through its mines,
IS above explained, it cannot for a long
period of time, export more coin than it im-
,orts In case of excessive expectation
without production, the fund of coin would
,e exhausted.


So it happens that the goods imported
nto tho United States are not paid for by
he importer with money sent to the for
ign country, but by means of bills of ex-
hange drawn against the proceeds of ex-
,orts sent from this country to that coun-
ry from which the importation comes, and
ice versa.


If cotton and wheat and other articles
I commerce did not differ in quality, that 9
), if every grade of cotton was exactly of
be same value, and 80 Of every bushel of
heat, and every yard of cloth and every {
at, and every pair of shoes, and all other q
could be seen at once that the s
Sc of money in exchange could be dispen- ?
ed with. The trade would be then direct il
nd immediate exchange, of one article for d
mother, and this arrangement would be as p
ssy and simple as an exchange for money. v
But because pound of cotton does not &
WAYS represent the same value but may +
g worth 8, 9, 10, IL or II cents, according h
, quality, and the same is true of all other Il
rticles of commerce, it results that the h
,nvenience and facility of commere re- o
uire an invariable standard Of value, by b
hich the worth Of each article IL measured. 81