1840.

191,275

6,573,405

505,217

264

Massachusetts.

737,699

Rhode Island

108,830

3,276

471,022

1,003,170

69,881

454

1,431,454

334,008

1,521,191

3,002,142

497,204

547,694

Alabama

590,756

869,554

7,941

1,476,670

55,558

60 21,594,354

1,793,773

Mississippi

375,651

305,091

1,784

- 697,235

11,978

69 5,985,724

Illinois..

· 11,515

2.580,641

72,144

17,135

19,725,146

815,259

57,204

10,749,454

132,109

Arkansas

2,896,721

151,263

2,915,102

42,306

127,504

3,058,290

2,911,507

141,525

2,249

Iowa..

43,112

312

43,725

43,725

1,449

59,578

326,438 1,024,148 1,293,772 1,992,155 705,765

538,279 1,649,716 386,006

66,897,244

4,792

299,170

129,921

572,608

232,981

878,532 52,275

577,810

930,703

787,098 1,008,240 2,310,533 434,935

7,109,423 3,685,315

430,527 1,217,874 2,028,401 2,099,746 475,271

495

3,914,184 1,237,919||

241,036 619,980

675,982 1,623,608 110,055

1,289,802

395,672 1,495,254 126,756

348,018 1,271,161|

5,987

2,147

51,472 188,786

1,894,372

153,375

135,190

295,890

16,075

301,052

113,955

38,049 3,274

15,354 706

4,673

3,507

5,566

1,500

The Necessity of a Protective Tariff to a
Sound Currency.

More than three years' ordinary supply of consumption has been forced upon us in a single year. At a late meeting of the 'HOME LEAGUE' of the The conclusion of your committee is, therefore, State of New-York, a Committee was appointed that the effect of diminishing or annulling duties to consider and report upon the History of our on imports, in the present condition of Europe, Tariff, its Effect in increasing or diminishing Im- will be to increase importations to a most extravagant degree, as the official figures they have exports, and its Influence upon the Circulating Me-hibited above most demonstrably show. dium and the Value of Property. This Committee promptly and well performed the duty devolved on it, and reported the result of their investigations to the League' on the 23d ult. Their Report, after a preliminary history required, proceeds as follows:

Act of 1833.

1828..

1829.

1830.

1831..

1832.

Total..

Act of 1833. $12,379,176 1834...

11,805,501,1835.

.12,746,245 1836.

.13,456,625 1837..

.14,249,453 1838.

$64,637.0001 Total.

92,056,481 .69,241,029 .60,860 005 $363,490,188 $303,353,188 Here is exhibited an actual gain, in five years, in the imports of this class of articles, of three hundred and three millions of dollars.

Excess of Free Goods imported in the last

five years...

The next thing required by the resolution, is to asce.tain the influence of importations in increasing or diminishing our circulating medium of money. The circulating medium of our country is composed principally of the notes of banks. These notes, which are the measure of the value

of every description of property, have been increasing, gradually, (till our late embarrassments began,) for fifty years, as property and negotiain metallic money; and as bank notes are more tions have increased. They have all been payable convenient than metal for the transaction of our business in this country, and among ourselves, the metal is rarely required. In consequence of this, the banks which supply these bills have issued several times the amount of specie in their possession.

While these notes have circulated from citizen

Your committee, after thus briefly tracing the progress of the tariff, from the commencement to the present time, have provided materials for answering the question proposed, viz: How far duties on importations increase or diminish importations; and for that purpose they will examine the official documents that give us the amount of the value of all the duty free articles imported for a series of years, before the passage of the Compromise Act, and for the same number of years after its passage. For by means of these articles paying no duties, we can measure by figures the full operation of this misnamed, unreciprocated to citizen, accomplishing negotiations, all has free trade; and the period is well adapted to test been well; but after the duty-free articles were its effect, because the nations of Europe have been increased, much larger amounts of goods were at peace and these articles have been produced imported into our country than before, as we have and brought here, subject to no molestation, quoad shown by the official reports. The prohibitions of hoc, it is the genuine free trade. foreign countries prevented us from exporting an Value of duty free articles im- Value of duty free articles im- equal amount of our productions, or, if exported, ported five years next pre- ported five years next subse- the proceeds were taken from us by extorting vious to the Compromise quent to the Compromise most extravagant duties. The balance, for a time, $68,393,180 was settled by loans or State bonds, stocks, &c., 77,940,493 till foreigners became possessed of from two hundred to two hundred and fifty millions of dollars of these loans and securities, and their credit began to be questioned. Their credit onee shaken, the balances for goods coming in could no longer be met by loans or stocks, and our bank notes not being received in the countries from which the goods came, metallic money was called for, and When it was announced to the world that the as it was chiefly in the vaults of the banks, drafts United States had made their ports free and open were made on them and repeated. This, of to certain productions, there was a rush for our course, compelled the banks to check their dismarkets from every nation of Europe producing counts, and the circulating medium has thereby similar articles, and floods of goods soon came been contracted to the extent, that there is not a pouring in. So great was the rush, that the duty sufficiency in circulation to liquidate existing free articles imported into this country the next debts contracted under a more expanded currenfive years after the Compromise Act passed, did cy, and, at the same time, transact the ordinary not fall short of our whole importations of the business of the country. Embarrassments and five years preceding, including those that paid bankruptcies have been and are the inevitable conduty as well as those that did not, only $18,470,- sequences. As long, therefore, as bank notes con203. The ports of the United States were the stitute our currency, and these notes are payable only free ports on earth which afforded a tempt-in metallic money, and the amount of our imports ing vent, and all the vast accumulations and refuse exceeds our exports, the balance will be drawn merchandise of Europe were shipped for America. from the banks in specie, and the issues of notes The effect of abolishing duties may be illustra- will be checked, (if managed by intelligent and ted, perhaps, more satisfactorily by a single arti- honest directors,) until their notes are withdrawn cle, as, for instance, silk, and comparing the im- from circulation, in amount, under ordinary cirports before and after the duties were taken off. cumstances, equal to, at least, three times such Our average consumption of imported silk, for the balance. (a) twelve years preceding the passage of the Compromise Act, did not equal six millions of dollars. In a single year since its passage, the consumption of foreign silks has exceeded three times six millions; so that reduced duties not only increase importations to an almost incredible extent, but consumption is also increased along with it.

The Committee will next consider the effect of (a) It is a maxin of discreet bankers, that their circulation should never exceed three times the amount of specie in their vaults. The influence of importations in abridging our circulating medium, when the balance of foreign trade is against us, is, therefore, in a compound ratio of three to one. It operates with a lever power in severing the links of the great chain of credit which holds together the commercial and business world.

an increased or diminished circulating medium on the value of property..

year would not this community find more confidence and money, property on the advance in value, lesswant, and general increased comfort and prosperity? And were this same community in our situation, with a paper currency, would not the additional supply of metallic money, by which nations adjust balances, enable their banks to triple the amount of money for all the purposes of production, by the stimulus it would give to industry, by increased confidence, and enlarged means? The value of property might not advance in the precise per cent. proportion, with the increase of circulating medium, but the tendency would be a continued ad

vance towards it.

The Committee have before them the return of the Bank Commissioners of this State, from 1836 to 1841, both years included. The circulation of all the Banks in 1836 amounted to $21,127,927, and in 1842 to $14,559,338, being a reduction of about 33 1-3 per cent. The depreciation of property of the whole State has been probably quite equal to 33 1-3 per cent.; and, from a table prepared with much care, it appears that the specie in all the Banks of the United States was as follows: In 1839, $45,132,637; 1840, $33,105,155; showing a reduction of over twenty-five per cent. in oze year; and from the same table it appears that the circulation of the Banks of the country was, in 1837, about one hundred and forty-nine millions of dollars, and in 1840 short of one hundred and seven millions of dollars. Much of the real estate bought for purposes of speculation, if now subjected to a forced sale, would not bring two years' interest on the prices at which it was sold. Agricultural produce of some descriptions has fallen from 50 to 60, and even 75 per cent. Stocks of almost every description have declined, and same hove depreciated from par to nothing. The products of large manufactories, operated by machinery, have probably suffered, generally speak

The circulating medium of this country, consisting, as has been remarked, chiefly of notes of banks, is employed to measure values in all negotiations, and of all property. To illustrate this part of the resolution, we will suppose a community isolated from all others, with a given amount of money, performing the duties of a circulating medium, and supposing one half of the whole were destroyed in one night, the remaining half would represent the value of the property; and if all were to agree, the next day, that one half of a dellar should buy and pay as much as a dollar had before, no material injury would be wrought; but if they did not agree, the debtor portion of this community would be obliged to pay double value to the creditor portion; for the contracts are for whole dollars, not half dollars. Some of the debtors would be compelled to sell, many of them being, through mortgages and other pledges, directly in the power of their creditors." A few rich men, (and there are always such in every community,) having a large proportion of this circulating medium in their possession or under their control, and understanding the condition of the debtor portion, as they generally do, would pruchase property at their own prices. If the individuals of this community were in the way of extensive negotiations, credit, &c., it is easy to see the perfect confusion that must ensue-the breaking up of confidence and credit. Labor, already performed, not obtaining its wages, would have less motive for farther performance; a few might find employ at low wages, but, to a great extent, there would be a suspension. Bankrupt acts would become popular among those who detested them before, and im-prisonment for debt, in the opinion of those exposed to it, would be barbarity barbarized The circulating medium might, in this supposed case, be so far reduced that the whole amount of money or circula-ing, less than any other property. In many parts ting medium would not pay the sums due to a few capitalists. (b) If this community were immediately to discharge those bankrupted, so that they, with others, might be employed in productive labor, and could open a trade with a country that would supply them with money,and put industry in general action, and give confidence to credit, a large proportion might weather their difficulties, and save to themselves a competency. But if, like the people of the United States, they were so foolish, when they had it in their power to enforce a profitable exchange, to agree that for every dollar's value they bought, to pay one hundred cents, but for every dollar's value they sold, they should receive only fifty cents, (the other fifty cents to be called duty,) for the privilege of trading with them; and if, in summing up the account of trade at the end of the year, they should find less money in their community than before, would not every body cry shame on the negotiators of so foolish a bargain?

Would it not be the true course for such community to make a firm stand against all exactions on its productions by other countries, or balance them by equally exorbitant counter charges on their productions; then multiply by industry the articles which could be sold abroad as much as pos. sible; buy only necessaries; and at the end of the

(b) The estimated wealth of one individual in the city of New York, is about equal to two-thirds of the specie of all the banks of the United States in 1840. It will undoubtedly exceed all the specie in the country if the "Compromise Act" goes into full effect.

of the country, particularly the non-specie paying and the repudiating sections, where the vital principle of credit has received a shock, a much greater depreciation will be found. If the depreciation of the property of the whole country is put at 33 1-3 per cent. since our embarrassments commenced, the Committee think it short of the reality. The Committee deriving their conclusions from the established effects of the Compromise Law during the eight years previous to the 31st of December last, in increasing importations and thereby drawing from the country the precious metals, or, if not actually drawn, liable to be drawn, by a foreign debt of from 200 to 250 millions of dollars suspended over them, (which all cautious bankers will unceasingly bear in mind,) for balances, interest on stock, &c., due to foreign countries, and thus inducing a reduction of the currency -are of opinion, that if the Compromise Act goes into full effect without alteration, there will be a farther decline of the value of property equal to what has already taken place, making the amount of depreciation, since our embarrassments commenced, 66 2-3 per cent. (c)

(c) The Committee, in soming to this conclusion, are aware that the duties on some few articles were advanced at the extra session of Congress, in accordance with the horizontal priciples of the Compromise Law; but even the inadequate protection which might have been looked for by this law is partially counteracted by the circumstance, that a part of them were raw materials required in our factories and workshops, and in that particular give foreign competitors an additional advantage over American industry.

contraction of this circulating medium, and through these means reduced the prices of property, and thereby deranged values, intrinsically doubling the amount to be paid on contracts for money heretofore entered inte; affecting thereby all the relations of our whole social system, embracing those essential points which relate to the wages of labor, and the necessaries and comforts of life; which has already bankrupted thousands, and threatens tens of thousands, whom nothing will save but a wholesome Tariff, speedily adjusted by practical men of sound sense. Such a Tariff will afford the only means by which this generation can be redeemed from inextricable embarrassments; embarrassments which, if not relieved before the present session of Congress closes, will blast the prospects of the middling and poorer classes now on the stage of action, chiefly for the benefit of foreigners, and those among us who have the means and the heart to extract wealth from the misfortunes and miseries of their fellow citizens.

If only nine articles, as before enumerated, made duty free, and reduction of duties on the residue, equal to four-tenths, have in eight years, viz. from the 15th of March, 1833, to the 31st December, 1840, brought down prices 33 per cent., the Committee do not consider it unreasonable to conclude that four times that number of articles yet to be made free of duty by the act after the 30th of June next, and a further reduction of six-tenths of the duties, in addition to four-tenths within six months, that is, between the 31st of December, 1841, and the 30th of June, 1842, will cause another reduction in the prices of property fully equal to the first. As soon, therefore, as the effects of the final reduction, the 30th of June next, are fully realized, three times the amount of property will be required to pay a debt which would have been required when our country was in a prosperons condition. loans and other stocks held in Europe, redeemable in specie, will require fifteen millions of dollars annually to be raised and sent thither, to say nothing of the two hundred and fifty millions principal. If it is said we will pay for it in flour, England will, it is true, allow us to sell to her hungry subjects; but only on condition that she takes out what she pleases. It is determined by a changeable corn law scale how much, but that scale she In the great struggles of 1816, 1824, and 1828, regulates herself. The owner, when he ships it for the Protection of American Labor against defrom this country, knows not whether she will de-pressing Foreign rivalry and the oppressive influmand an eighth, fourth, er, half. It all depends on how she pleases to move her scale.

The

The official statements of Mr. Dodge show that subjects of Europe consume more than forty-one millions of dollars worth of tobacco per annum ; their masters allow us to supply them, on our first paying them a tax of more than thirty-five millions of dollars on the same.. Preparations are making to empty the ten thousand warehouses of merchandise in Europe to supply the free ports of America.

When the contents of these warehouses come under the hammer, and the proceeds are converted into specie, we are confident facts will fully verify our estimates.

A very brief summary of the conclusions of your committee may not be amiss. A tariff of protection, to be increased from time to time, so as effectually to countervail the competition of foreign countries, and secure to our own mechanics and manufacturers the home market for all the fabrics

of necessity and comfort, and provide a vent for agricultural productions, was no doubt the object

of our revolutionary statesmen.

They were well aware that reduced duties increased importations. And a demand for specie will necessarily contract our bank bill currency in the proportion of three or more to one on the balance of imports over exports, thereby reducing the prices of property in proportion to the contraction of the circulating medium.

If the views of the patriots of the revolution had been followed out, there is not a doubt that our importations would have been kept down, so as to have been fully balanced by our exportations. A sound, steady, and adequate circulating medium might then have been maintained, based on an abundance of the precious metals, at all times fully adequate to the legitimate business of the whole country, and its credit fully sustained, it would have answered all the purposes of solid Gold; but the free admission of foreign commodities, from short-sighted legislation, have produced a violent

T. B. WAKEMAN,

}

ADONIRAM CHANDLER, Committee.
JACOB T. WALDEN,

New-York, February 23d, 1842.

Where Stands New-York?

ences of European policy, NEW-YORK, hand in hand with Pennsylvania and the entire Centre of the Union, was ardently and unanimously favorable to Protection. There was then no party on this question; though the Federalists of the East and the Cities, being deeply interested in Commerce, were generally averse to the Protective Policy, mistakenly fearing that it would destroy Commerce and the Revenue, and lead to Direct Taxation! Now the pretence of its opponents is that it will produce too much Revenue, while Direct Taxes are their idol! But out of the Cities, there was here no party; New-York, through every organ of her public sentiment, demanded the Protection of her Industry.

We have already published the unanimous and urgent Address of the Tammany Society demanding Protection even to Prohibition; as also the according responses of JEFFERSON, MADISON and MONROE. We now add to them the unanimous declaration of the Democratic Legislature of 1820 in favor of that Policy-as follows: