" The plan is simple, comprehensive, easily understood, and must commend itself to every thinking business-man of the country.
"The State bank currency will all be withdrawn early in the ensuing year. Congress will, in all probability, provide for the gradual funding of the legal tenders bearing interest issued by Government, if not the non-interest-bearing legal tenders, and the limit could now be fixed so that, when all the other paper issues are withdrawn, the national bank issues will gradually take their place up to the limit.
"After a resumption of specie payments by the banks, the people will, no doubt, desire a withdrawal of all notes of a less denomination than five dollars, and gold and silver will, of course, replace it, which would give us all the metallic currency required.
"With such a limit to the issue, while it provides for all our future wants and all sections of the country in proportion to its business and wealth, it would inspire great confidence among the business community and all other classes, and would prove to be the best and most stable currency in the world.
"Closely connected with the currency is our foreign commerce. Whenever there are over-issues there are over-importations. A well-regulated currency would regulate the foreign commerce to a considerable extent, but not altogether. In the two great com mercial countries of England and France the importations and exportations are regu lated by the national banks, which raise the rate of interest when importations are excessive, and lower it as they decrease. Here we have no such national regulator to regulate interest and importations. In 1850, Stephen Colwell, Esq., of Philadelphia, an extensive iron manufacturer, and who, perhaps, is better acquainted with the pro tective policy in all its details than any person now living, suggested the idea of a sliding scale, which we think is the most judicious recommendation yet made on this subject. It is to fix a fair rate of duties sufficiently protective while they are not pro hibitory, and then to authorize the Secretary of the Treasury, whenever the exporta tions do not exceed the importations, say 10 or 15 per cent. (exclusive of coin), to in crease the rates of duties, say 15 per cent., until the exportations exceed the importations, say 10 or 15 per cent. This would take all legislation on the subject out of Congress,
and would prove to be an effectual check against excessive importations, and thus keep our proportion of coin in the country.
"In carrying out this idea we would suggest the following section to be added to the newly-adjusted Tariff Bill that will be brought before the next Congress:— " 'Be it enacted, &c. That, leaving out of view both the export and import of gold and silver, whenever the exports do not exceed the imports in value fifteen per cent. during any fiscal quarter of any fiscal year, the Secretary of the Treasury is hereby authorized and required to raise the duty on the value of all articles of foreign import (excepting such articles as have been exempted from the provisions of the act) 10 per centum within thirty days after the expiration of each and every fiscal quarter during which the exports, as aforesaid, do not exceed the imports, as aforesaid, fifteen per cent.' "The same power ought to be given to reduce the duties also, when our exportations are excessive, which would draw from other countries more than our due proportion of coin, and thus destroy the markets abroad for our products. If, in after-years, under the stimulus of this truly protective system, our manufacturers should obtain such a foothold as to require less protection, Congress could make a certain percentage of reduction on the whole scale of duties to meet the new state of progress in our manu factures and commerce with other countries.
"This section would also remove the tariff question from further legislation, and would give great confidence and security for the investment of capital in all branches of manufactures.
"The knowledge that such a power is lodged with the Secretary of the Treasury would tend to check importations, because importers would watch the monthly and weekly reports of our foreign commerce, and govern themselves accordingly. In either case, this power, guarded by law, could be better exercised by the Secretary of the Treasury, who has all the figures in his possession, than to trust to the uncertain legis lation of Congress on this subject. And, besides, great fluctuations might occur at a time when Congress was not in session.