366 [Assembly 



Slowly but surely, the reduction of the duties proceeds; gradua 

 at first, but rapid as the termination of the Act approaches. Without 

 apprehension of the coming evil, the banks of the country, with the 

 bank of the United States at their head, stimulated by the desire of 

 profit, and having no settled principles of action, and little knowledge 

 of the laws of currency, advance in the career of increasing the 

 bulk of the currency, but the substitution of mere credit in the place 

 of capital — the States and public stocks without stint, which as 

 American credit is yet unimpared, are appropriated to meet the 

 balance in Europe, which increasing imports occasion, thereby hiding 

 from observation the real condition of the country, and the catas- 

 trophe is ready for development before the nation is aware of its 

 position. 



Great Britain, with free access to our markets and an accumulating 

 mass of our bonds in her hands, now determines to reduce the value 

 of our great staple which keeps her spindles in operation, and enables 

 her to control the commerce of the world. Then came the Waterloo 

 of the contest — that noble man, whose power as the financier of his 

 age, will one day emerge from its present eclipse, fought the battle 

 bravely, but like the great captain of modern history, became at 

 length the victim of circumstances beyond his control; the opposition 

 of the government — the great fire at New York — but more than all 

 else combined, the sure result of the Compromise Act, increasing the 

 imports, and turning the tide of exchanges against us, like the rapid 

 march of Blucher decided the day against him, overwhelmed the 

 currency of the United' States, burying beneath its ruin the credit of 

 States, of Banks, and of individuals, and for a time his own fair 

 fame. Death soon released him from the thraldom of undeserved 

 obloquy, but posterity will inscribe his name on the same tablet 

 with those of Morris, Hamilton and Dallas. 



The tariff of 1842 began slowly to reconstruct the fabric of national 

 prosperity in spile of the mass of ruins with which it was encum- 

 bered; but " free trade " has become the policy, not only of the 

 Democratic party, but to some extent of the Whigs tff the South, 

 and extensively of the mercantile public; it will work its results and 

 demonstrate its character, whether for good or for evil time will 

 probably determine, since there is little hope, in the present state of 

 public opinion, that any other policy can be introduced. It is 

 however, wise to study the subject in the light of experience, that 

 we may no longer grope in the dark like our predecessors, with no 



