These bonds are guarantied by cotton lands supposed to be worth $25,400,000. It has long been the opinion of many of the shrewdest practical financiers of that section of the country that the expenses attending the borrowing of money, wherewith to pursue the banking business, were greater than the profits of planting would warrant. The facts now developing seem to warrant that conclusion. The amount of interest due in Europe for money borrowed for various purposes in this country has been computed at $11,000,000 annually. This is full ten per cent of the whole exports of domestic produce, and must absorb all the profits of those exports. Many of the states have declared their inability to continue those payments, but it is to be hoped that, with the removal of those general causes of depression which have of late years overshadowed the whole commercial world, such an alleviation of business may take place in this country as will enable its citizens to redeem their honor. The great question of national interest now pending before congress is the adjustment of the tariff on such a footing as shall yield a revenue sufficient for all the purposes of government, and at the same time impose the least burdens upon commerce. For the last few years it has been apparent that the customs did not yield a revenue sufficient even for an economical administration of the government. This deficiency has been supposed to be temporary in its nature, and has been supplied by expedients.. At the close of the present month, however, the final reduction in duties as provided by the compromise tariff goes into effect, when a general duty of twenty per cent is to be levied upon all articles. The reduction under the compromise act has been biennial, commencing in 1834. The following table will illustrate its operation: BIENNIAL REDUCTION OF DUTIES UNDER THE COMPROMISE ACT. Years ending Dec. 31. Reduction. 25 per c. 30 per c. 35 per c. 40 per c. 50 per c. 1834-35 .1 241 29 334 38 47 The manner of reduction is by tenths of the difference between twenty per cent and the original duty. Thus, if the duty was fifty per cent, the difference between that and twenty per cent would be 30, one tenth of which is .3, which, deducted from 50, gives forty-seven per cent as the duty for 1834-5; and so on, until, after June, the reduction becomes complete. Three propositions have been made to increase the revenues:one by the secretary of the treasury; one by the committee of ways and means; and one by the committee on manufactures. All of these plans propose duties to average nearly thirty-five per cent instead of twenty. This is to restore the rates of 1834, before any reduction took place. While this is going on on this side of the water, in England arrangements have been made to reduce the duties levied there on imported goods, particularly on American produce. These contemporaneous movements will, doubtless, have a great effect upon the trade between the two countries. In order to form some estimate of the change, we have compiled the following table, showing the trade between the United States and Great Britain for several years, with the rates of duty heretofore existing, and those proposed to be levied in both countries: COMMERCE BETWEEN GREAT BRITAIN AND THE UNITED STATES. Free,...16,600,150 25,365,715 12,240,201 21,227,215 10,448,133 Ad Valorem. Oth.Wool,.. 193,862 667,119 214,581 50 38 40" Hosiery,.... 394,777 Yarn, 366,533 Worsted,... 665,804 198,727 157,480 318,164 7,481,298 1,875,996 767,875 25 23 25 “ 634,942 261,334 25 23 25 “ Oth. Cotton, 339,151 796,406 573,313 626,915 250,179 25 23 25" Wheat,...... Glass 102,000 25 23 25 " 67,000 200 168 300 100,000 152,125 984,334 TOTAL,...47,242,807 78,645,968 44,885,943 65,971,471 33,679,693 908 878 EXPORTS OF DOMESTIC PRODUCE TO ENGLAND IN 1839 AND 1840, WITH THE ALTERATION In For'gn vessels,.... 12,658,500 10,960,468 Present Proposed 1840. Duty. Duty. 22,422 0 0 40 04 48,853 0 4 80 20 For'gn Exp'ts, 3,003,704 1,879,305 4,896,768 4,102,751 5,096,882 The necessity for an increase of revenue has sufficed to harmonize the conflicting opinions in relation to high and low tariff, so far as to allow of the imposition of rates as high as will yield the greatest amount of revenue. The vexatious question of the distribution of the proceeds of the public lands at present retards legislative action upon the subject, and leaves commercial affairs in a state of uncertainty at war with the best interests of the country. The reduction of the English duties it is hoped will be attended with an increased trade between the two countries, and result in the double benefit that while it increases the sale of American produce abroad, it will, by reducing the stock, increase the home money value of the remainder. |