THE COMPROMISE ACT.
In 1833 the celebrated Compromise Act became a law, and reduced the duties on imported goods about one-half. The effects of this reduction were not immediately felt. The change from abundance to famine is gradual; want comes when waste stops from exhaustion. Our surplus supported us for a time, but we lived on our capital rather than its profits. This could not and from plenty we were again plunged into poverty and general distress.
In 1836 the importation, amounted to $189,980,035, or an increase of $63,458,703 over those of 1834, the first year of the Compromise tariff, with an average, for the three years ending in 1837, of $155,465,703 per annum. These excessive importations again drained the country of specie and drove capital from the manufacturing to the agri cultural interests, and the result again came in ruin to many and loss to all. The second crisis commenced on the 10th of May, 1837, by the suspension of the New York banks, followed by the banks throughout the Union. Importation—which still amounted
to about $141,000,000, or $23,500,000 in excess of the exports—declined $48,000,000, because we were drained, bankrupt, and could not buy more or make the ruin greater. The nation again became a borrower to save its credit. Bankrupt laws obliterated indebtedness, and financial troubles ensued which even to this day leave their marks.
Thus we see the cause and effect. There is no speculation about it. History shows it in such clear and prominent letters that "he who runs may read." Protection to domestic industry brought prosperity; free trade brought adversity. The laws govern ing those results are as immutable as the laws of society, and no more. We cannot long continue to spend more than we earn, or to buy more than we sell, unless we reverse our usual course, and instead of "selling rabbit-skins for a sixpence and buying back their tails at a shilling," try to play that game on others.