372 [Assembly. 



affairs so as to prevent the evils to arise from a "free trade;" it 

 would obviously modify them to some extent by the general reduction 

 of values consequent upon the dimunition of the general bulk of the 

 currency, but would leave us still exposed to the adverse action of 

 the foreign exchanges, but while the currency remains, as it must 

 continue to do of its present dimensions nearly, the issues of banks 

 with a mere modicum of metal as its basis, so small that its contrac- 

 tile force is frightfully great, the obvious effect of a commercial 

 policy, the tendency of which is to increase importations, or to permit 

 them beyond the point at which they are sure to be met by exports 

 of our own staple products, is to abstract the basis of the currency, and 

 thus call into action its terrible power of contraction, to cut the 

 arteries of the body politic, inducing syncope — death. As before 

 observed, it is not material whether the currency is of metal, or 

 credit depending upon metal for its vitality, the moment the imports 

 exceed the exports, the balance must go in gold, reducing the cur- 

 rency if of metal, or destroying it if dependent upon it for its conver- 

 tibility, thus reducing the community to a state of barter. The 

 result is obvious and inevitable, and the violence of the action will 

 be in proportion to the extent in which convertible credit is used as 

 currency, and to the excess of the imports. In the United States, 

 where the currency is almost entirely of convertible credit, and where 

 credit, from the high rate of interest and the active habits of society 

 is so extensively in use, it is the most consummate folly to place 

 ourselves by our own commercial policy, in a position to be at all 

 times liable to the convulsions which a rapid contraction of the 

 currency involves; better to abandon all foreign commerce and shut 

 ourselves up like the Japanese, depending upon our ov/n efforts and 

 the varieties of our own climate for the supply of our wants, than 

 thus to live in constant fear of, and dependence upon the condition 

 of foreign exchang^es; but this is not at all necessary, all our 

 really valuable commerce may be retained, and yet the evil avoided. 



It will be replied, that imports will not necessarily exceed exports- 

 if no protective policy is adopted. The mere pcssibility of such a 

 result should lead to the adoption of the most stringent measures ta 

 prevent it, even if it were not folly to desire the unprofitable trade 

 of exchanging raw produce for manufacturers, the universal badge 

 of a low grade of civilization. 



Let us examine the relative positions of Europe and the United' 

 States, in order to decide the probabilities of equal exports and im- 

 ports. Cotton we can export to the extent of our surplus; tobacco* 



