Staunton spectator. [volume] (Staunton, Va.) 182?-183?, 1832-05-04
Speech on Henry CIay.

the British Colonial System, deiiUered
ihthe Senate Qfthe United STATES,
on the 2nd, Sd and 9Th, Of
February 1882.
Continued
The great law Of price Is determined 10y
the supply and demand. Whatever affects
either affects the price. If the supply is in
creased, the demand remaining the same the
price advances if both supply and demand
are undiminished, the price is stationary and
the price influenced exactly in proportion to
the degree of disturbance TO the demand or
supply IL is therefore n great error to sup
pose that an existing or new duty necessa-
rily becomes component element, to its
exact amount, of price. If the proportions
ofdemand and supply are varied by the duty,
either in augmenting the supply, or dimin-
ishing the demand, or vice versa, price is
affected, TO the extent of that VARIATION
But the duty never becomes an integral part
OF the price, except in the instances where
the demand and the supply remain, after the
duty is imposed, precisely what they were
before, or the demand is increased, and the
IMPLY remains stationary.
competition, therefore, wherever existing,
whether at home or abroad is the parent
cause of cheapness. If high duty excites
production al home, and the quantity of the
domestic articles exceeds the amount which
had been previously imported, the price will
fall. This accounts for an extraordinary
fact stated by a Senator from Missouri
Three cents were laid as duty upon pound
of lead, by the act of 1928. The price at
Galena, and the other lead mines, afterwards
fell to one and half cents per pound. Now
1T, is obvious, that the duty did not, in this
case, enter into the price for it was twice
the amount of the price. What produced
the fall 1t was stimulated production at
home, eXerted temptation of the exclusive
possession of the home market This state
of things could not last. Men would not
continue an Improbable pursuit some a
bandoned the business, or tie total guam
tity produced was diminished, and living pri-
ces have been the consequence. But, break
down the domestic supply, place us again in
state of dependence on the foreign source,
and can it be doubted that We should ulti-
mately have 10 supply ourselves at dearer
rates 1t is not fair TO credit the foreign
market with the depression of prices produc-
sd there by the influence of our competition.
Let the competition be Withdrawn, and their
prices would instantly rise. On this subject,
great mistakes are committed. have seen
some most erroneous reasoning, in late re-
port of Mr.. Leo, OF the Free Trade Conven-
ton, in regard TO the article of sugar He
calculates the total amount of brown sugar
produced in the world, and then states that
what Is made in Louisiana is not moro than
two and half per cent. of that total AL
though his data may be questioned let us
assume their truth, and what might be tho
result? Price being determined by the pro-
portions of supply and demand, i. is evident
that, when the supply exceeds the demand,
the price will fall. And the fall is not al
ways regulated by the amount of that excess.
IL the market, at given price required five
or fifty millions of hogsheads of sugar, a sur
plus OF only few hundred might materially
influence the price land dffuse itself through
out the whole mass. Add, therefore, the
eighty or one hundred thousand hogsheads of
Louisiana sugar to the entire mass produced
in other parts Of the world, and it cannot be
doubted that material reduction of the ar
;icle, throughout Europea and America, would
take place. The Louisiana sugar substitu-
ing foreign sugar, in the home market, TO
he amount of its annual produce, would force
an equal amount of foreign sugar into other
markets, which being glutted the price would
necessarily decline, and this decline ofprice
would press portions Of the foreign sugar in
to competition, in the United States, with
Louisiana sugar, the price of which would
also be brought down. The fact has been in
exact conformity with this theory. But now
let us suppose the Louisiana sugar to be en-
tirely Withdrawn from the general consump-
tion-what then would happen: A new de-
mand would be created in America for for
eign sugar, to the extent Of the eighty or
one hundred thousand hogsheads made in Lou
isiana !; a less amount, by that quantity would
be sent to the European markets. and the
price would consequently every where rise
Ii is not, therefore, those who, by keeping
on duties, keep down prices, that tax The
People, but those who, by repeating duties,
would raise prices, that really impose bur
thens upon the People.
But il is argued that, if, by the skill, ex-
perience, and perfection, which we have ac-
Guired, in certain branches OF manufacture,
they can be made as cheap as similar articles
abroad, and enter fairly into competition
With them, why not repeal the duties as to
those articles? And why should we? As
Stunning the truth ofthe supposition, the for
eign article would not be introduced in a
regular course of trade, but would remain
excluded by the possession of the home mar
lSet, which the domestic article had obtained.
The repeal therefore, would have no legiti-
mate effect. But might not the foreign ar
ticle be imported in vast quantities, 10 glut
our markets break down our establishments,
and ultimately, to enable the foreigner TO
monopolize the supply Of our consumption
America is the greatest foreign market for
European manufactures. II is that to which
European attention is constantly directed. -
II great house becomes bankrupt, there,
its storehouses are emptied, and the goods
are shipped to America, where, in conse-
uuence ofour auctions, and our custom house