The case put by the author, it will be seen, of money depresses its value; and as all comis the counterpart of that which I illustrated the mercial restrictions upon imports while exports effect of our restrictions upon the value of mo- are free, must not only cause an accumulation ney. The same argument, however, which of money, but permanently retain it as long as shows that the repeal of restrictions would cause the restriction continues, it follows that the money to flow out of the country, and rise in price, or, more properly, the exchangeable vavalue, equally proves that the imposition of re-lue of exports must be permanently diminished strictions would cause money to flow in and sink in the precise degree that the value of specie is in value. depreciated.

Mr. Ricardo, one of the most distinguished of the practical economists of Europe, lays down these principles:

"Gold and silver having been chosen for the general medium of circulation, they are, by the competition of commerce, distributed in When it is contended that the protecting dusuch proportions amongst the different coun- ties do not fall exclusively upon the consumers, tries of the world, as to accommodate them- but partly upon the producers of the exports, selves to the natural traffic which would take and partly on the consumers of imports, every place if no such metal existed, and the trade merchant's clerk is ready with the reply, that, between countries were purely a trade of bar-as the importing merchant must add the duty ter." as well as his usual profits to the cost of every "Now, suppose England to discover a pro-import, it necessarily follows that the consumcess for making wine, so that it should become er must pay the duty. her interest rather to grow it than to import it, Now, it is admitted, that the importing mershe would cease to manufacture cloth for ex- chant must increase the money price for which portation, and would grow wine for herself. he sells a foreign manufacture, so as to indemThe money price of these commodities would nify himself for the duty paid on it; but we have be regulated accordingly. Cloth would conti- seen that this enhanced money price is producnue for some time to be exported from this ed in part by the depreciation in the value of country, because its price would continue to money. In whatever degree the increased be higher in Portugal than here; but money, price of protected articles arises from this deinstead of wine, would be given in exchange preciation in the value of money, all other comfor it, till the accumulation of money here, and modities, in the same market or commercial its diminution abroad, should so operate on the community, will experience a corresponding relative value of cloth in the two countries, that increase of price. it would cease to be profitable to export it."

It is not true, therefore, as is sometimes sup"It is thus that the money of each country is posed, that the northern farmers and laborers apportioned to it in such quantities only as may are as much oppressed by the protecting sysbe necessary to regulate a profitable trade or tem as the people of the southern States, other barter." than the planters. Experience confirms the "But the diminution of money in one conclusions of theory on this subject. Whate country, and its increase in another, do not op- ver increases the prosperity and profits of the erate on the price of one commodity only, but great and leading employments of capital in on the prices of all." any community, has always been found to in

"This higher value of money will not be indi- crease the prosperity and profits of all suborcated by the exchange; bills may continue to be dinate employments, as well as the wages of negotiated at par, although the prices of corn labor. It is obvious that, in the same local and labor should be 10, 20, or 30 per cent. community, where the transfer of capital and higher in one country than another." labor from one employment to another, is easi"When each country has precisely the ly effected, there cannot long continue differquantity of money which it ought to have, mo- ent rates of profit and wages of labor. The ney will not, indeed, be of the same value in truth of this remark will strike the commonest each, for, with respect to many commodities, it observer. But the precise mode in which this may differ 5, 10, or even 20 per cents but the ex-equality of profits and wages is produced, is not change will be at par." so obvious. If, for example, protecting duties

Here, sir, is a distinct recognition of the prin- enhance the money price of the various manuciples for which I am contending, as it regards factures upon which they are laid, to the full the distribution of money amongst different na- extent of these duties, they, at the same time, tions, and the changes produced in its value by enhance the price of all other articles in the the increase or diminution of its quantity. The manufacturing region, though not to so great cases stated, by way of illustration, are not pre- an extent. In whatever degree the rise of the cisely analagous to our case; but I feel war- price of protected manufactures is produced by ranted in saying, that if this were submitted to the increased quantity and diminished value of

in the money price of the staples of exporta- same burthen in consequence of this duty. tion in the United States, almost exactly pro- But the southern shoemakers, it is obvious, portioned to the duties, while the money price would pay taxes to the amount of one million of the protected articles would remain un-six hundred thousand dollars, while those of changed. The unchangeable value of the sta- the north would pay none at all. Here, then, ples of exportation would be no more diminish- would be a specific tax of one million six hun ed than it is now, but it would be more obvi- dred thousand dollars levied on the producers ous, from being indicated by a fall in the mo- of shoes in the south, diminishing the annual ney price of these staples, instead of a rise in income of that section of the Union precisely the money price of protected manufactures. to that extent, as compared with the income For the purpose of embodying these princi- derived by the northern section from the same ples in a practical illustration, and of demon- quantity of the same kind of labor. The course strating that partial and discriminating duties of reasoning which I have applied to shoes, upon a portion only of the national consump-will equally apply to every other article; and, tion must operate as taxes upon production, I it will follow, that the grand aggregate of this will suppose that one-third part of each and ev-scheme of partial and discriminating excise duery article consumed in the United States were ties, would be to throw the entire burthen of produced south of the Potomac, and the other federal taxation upon the southern States, two-thirds north of that river. I will, more- though the consumers of both sections would over, suppose that a political economist were to be equally affected by it. It would be exclurise up in the north, and propose that the whole sively a tax upon the producers, and would be amount of the federal taxes should be levied by in no respect less unjust and oppressive than excise duties upon that third of the various ar- if the same sum were levied, by a poll tax, upticles of our consumption which was produced on the shoemakers, and the various other prosouth of the Potomac. He would be at no loss ducing classes of the southern States. for arguments to sustain this proposition, as a Now, Mr. Chairman, if that scheme of adjust and equal scheme of taxation, if it be true justing the tariff should prevail, which proposes that the whole burthen of indirect taxes falls to repeal all the duties on unprotected articles, upon the consumers. He could truly allege and levy the whole federal revenue by import that it would be much more economical to col-duties upon those articles which are obtained lect the duties from one-third part of the Union from abroad in exchange for cotton, tobacco, than from the whole, inasmuch as only one- and rice, we shall have the very system which third of the number of revenue officers would I have described, to all substantial intents and be required; and if it would be an equal and purposes-the only difference will be in the just system, its economy should be decisive in name. In the one case as in the other, the entire burthen of federal taxation will be thrown

which had carried them through the war, and ing and disbursing officers, but it will consist which were apparently as miraculous as the mil- of the sum which those officers would have itary resources of the French Emperor. They made in some private pursuits, if they had not made the important discovery that the aggre- been unproductively employed by the Governgate wealth of a nation, and particularly its pe- ment. cuniary resources for war, are scarcely diminished at all by the heaviest taxation, so long as the revenue collected is disbursed within the country; and that almost the whole operation consisted, not in destroying capital and wealth, but in transferring them from one class of the community to another.

I have selected this single instance of the effect of the Government disbursements, as an illustration of the whole. In a pecuniary point of view, the nation loses, in the aggregate, only the sum which the officers, soldiers, sailors, and other persons employed by the Government, are prevented from making in some proSir, I am greatly within the limits of what I ductive employment. This would not amount, might affirm, when I say, that taxes, to the upon an average, to more than five millions of amount of five millions of dollars, levied on the dollars, on a revenue of twenty-four millions, southern States, and disbursed in distant collected and disbursed by the Government.parts of the confederacy, are more burthensome The remaining nineteen millions are merely and oppressive than taxes to the amount of ten transferred from those parts of the Union where millions would be if disbursed amongst those the taxes are levied, to those in which they are States. It is a great error to suppose that the distributed, without any aggregate diminution collection and disbursements of revenue anni-of the national wealth. In a country like Enghilates just so much of the productive capital of land, having a small territory, this operation is the country. To exemplify this, let us sup. scarcely felt. The burthens of the taxes, and pose that Congress should provide for the an- the benefits of the disbursements, are so equalnual appropriation of three millions of dollars, ly distributed every where, that the one is al(as I fear it soon will,) for revolutionary pen-most completely counterbalanced by the other. sioners; let us further suppose that the New In the United States, it is almost precisely the England States should receive, in pensions, reverse. In South Carolina and Georgia, for three times the amount of the whole expenses example, States which contribute probably three of their local governments; is it not apparent times their proper quota of taxation, amounting that they would gain three times as much as to upwards of five millions, there have not been they would lose by the combined operation of annually expended one hundred thousand dol the State taxation and federal disbursements? lars for the last ten years. Almost the whole Vermont would annually receive, judging from of a revenue of twenty-four millions is distributher present pension list, about two hundred ed north of the Potomac, principally among the thousand dollars of this pension fund. Now, manulacturing States; adding additional stimu some body must pay the taxes by which these lus to their industry, already too highly stimupensions are provided: the Government cannot lated by the enormous bounties of the protectcreate money, like Midas, by converting every ing system. In the exact degree that these unthing it touches into gold. Whoever they may equal disbursements enrich the northern States, be that pay these taxes, it is certainly a burthen it is self-evident that they must impoverish to them, abstracting precisely so much from those of the south. It is a perennial current their annual income. The money goes to Ver- which constantly flows out and never returns, mont, and is paid to the pensioners; and the old and must inevitably exhaust any fountain, howtheory assumes that it is so much productive fever abundant. It is precisely as if the taxes capital forever vanished and gone. But, it is collected in one country were disbursed in an Almost the precise sum of money other; and I will venture the opinion, that, if which was taken from the tax payers, is now in the taxes raised in England for the last twenty the hands of the pensioners, and is just as pro-years, had been disbursed on the continent, the ductive as it ever was. The pensioners may whole island would have been, at this moment, themselves apply it to some useful and profita- a desolate waste.

not so.

ble business, and if they do not, the very first If, Sir, these views of the pernicious influ persons to whom they pay it away, almost cer-fence of the taxation, protection, and disbursetainly will. What, then, is the amount of the ments of this Government, upon the prosperity aggregate national loss of wealth and capital of the planting States, rested solely on specularesulting from this operation? It is precisely tive reasoning, I might be disposed to distrust the sum which these pensioners would have the results of that reasoning, however clearly produced by their labor, without the pensions, made out. But, Sir, I live in a country where beyond what they now produce by that labor the oppressive influence of this system is pracafter receiving the pensions; and this would tically felt; and where impressive memorials are not, probably, amount to ten per cent. on the every where scattered over the fairest region that sum they receive from the Government. If the the sun of Heaven ever shone upon, bearing tespensioners should prove to be industrious men, timony to the truth of the exposition I have preand apply their incomes to some productive sented. The historical and statistical phenomepurpose, the national loss will be reduced to a na of the manufacturing and planting States for mere trifle. It will consist, not, indeed, of the the last sixteen years, gives the most ample and expenses of collecting and disbursing, for even conclusive confirmation to all I have said on this these will accrue to the benefit of the collect- subject.