The Massachusetts spy. [volume] (Worcester [Mass.]) 1831-1858, 1832-03-21


power has been excited in America, and brough
into being to act In corporation collision will
European industry. Europe acts within ITSELF ant
with America and America acts within itself, ant
with Europe. The consequence is, the reduction
ofprices in both hemiSpheres Nor is il fair to ar
que from the reduction ofprices in Europe, to hel
own presumed skill and labor exclusively. We
| affect her prices and she affects ours. This must
always be the case, at least in reference any
tlcles as to which there is not total non-inter-
course and if our industry, by diminishing the
| demand for her supplies, should produce a dimnu-
alton in the price of those supplies it would be
very unfair to ascrbe that reduction to her ingenu
Ity, instead of placing 1t to the credit of our own
| skill and excited industry.
| Practical men understand very well this state OF
the case whether they do or do not comprehend the
! causes which produce it. have in my possession
! letter from respectable merchant We II known
! TO me- In which h says, after complaining of the
operation of the tariff of 1923, on the articles TO
I whch IT applies, some of which he had imported
and that his purchases having been made in England
before the passage of that tariff known it pro-
duced such an effect upon the English market. that
the articles could not be re-Sod without loss he adds
" Tor 1t really appears that, when additional duties
are ladupon an article, it then becomes Lotrer in
stead OF higher" This could not probably happen
where the supply of the foreign article did not ex
coed the home demand, unless upon the supposition
Of the increased duty having ercitcdor stimulated
the measure of the home production
me great law OF price is determined by supply
and demand. Whatever affects either, affects the
lrlce. If the supply is increased, the demand re-
naming the same, the price declines if the demand
is increased, the supply remaining the same, the
price advances; If both supply and demand are I'M
diminished the price is stationary. and the price is
mi enced exactly in proportion to the degree of dis
turbance to the demand or supply. 1t is therefore
great error to suppose that existing or new du-
" necessarily becomes component element to its
exact amount, of price. If the proportions of de-
maho and supply are varied by the duty either in
augmentlng the supply or diminishing the demand
or wee versa, price is affected, TO the extent of
mat variation But the duty never becomes an in
'egta' part OF the price except in the instances
where the demand and the supply remain. after tho
duty is imposed, precisely what they we're before
or the demand is increased and the supply remains
Stationary.
Competition, therefore, wherever existing, wheth
e- at home, or abroad is the parent cause Of cbean
ne IS. 1T high duty excites production at home
and the quantity of the domestic article exceeds
the amount which had been previously imported
the prioe will fall This accounts for an exfraord
nary tact stated by Senator irem Missouri. Three
cents were laid as duty upon pound of lead, BY
the act of 1923. The price at Gaena and the 9TH
er lie ad mines, afterwards fell to one and half cents
per pound. Now it is obvious, that the duty did
not, in this case, enter into the price for it was
twice Me amount of the price. What produced
the fall 1t was stimulated production at home.
exertef by the temptation of the exclusive posses.
sion Of the home market. This state of things could
not last Men would not continue an Improbable
pursuit; some abandoned the business or the total
quantity produced was diminished, and living pric-
es 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 ultimately have to supoly
ourselves at dearer rates 1t is not fair to credit
the foreign market with the depression of prices
produced there by the influence of our connection
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 report of Mr. Lee of
the free trade convention, in regard 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 more than two
and half per cent. of that total. Although his da-
ia may be questioned, let US assume their truth
and what might be the result Price being deter
mined by the proportions of supply and demand it
is evident that when the supply exceeds the de-
land, the price will fall And the fall is not al
ways regulated by the amount of that excess. If
the market at a given price, required five or fifty
millions of hogsheads of Sugar surplus of only a
few hundred might materially influence the price
aRd dlffuse itself throughout the whole mass Add
therefore the eighty or one hundred thousand hogs
heads OF Louisiana sugar to the entire mass produc-
ed in other parts of the world, and it cannot be
doubted that material reduction of the nrice of
take place.
The Louisiana sugar substituting foreign sugar in
the home market TO the amount of its annual pro-
dnce, would force an equal amount of foreign sugar
lHto other markets. which being glutted the price
would necessarily Decline and this decline of price
would press portions of the foreign sugar into com
petition, in the United States, with Louisiana Su-
gar the price of which would also be brought down
Inc fact has been in exact conformity with this
theory, But now let us suppose the Louisiana Su-
gar to be entirely withdrawn from the general con.
sunptOn--what then would happen A new de.
mand would be created in America for foreign SUI
gar, TO the extent of the eighty or one hundred
thousand hogsheads made in Louisiana; a less
amount, by that quantity, would be sent to the Eu-
ropean markets; and the price would consequently
every where rise. 1t 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 burthens upon the
people.
But it is argued that, if by the skill, experience,
and perfection, which we have acquired in certain
branches of manufacture, they can be made as cheap
similar articles abroad and enter fairly into COIN
petition with them, why not repeal the duties as to
those articles And why should we Assuming
The truth OF the suppostion, the foreign article
would not be introduced in a regular course of
trade, but would remain excluded by the possession
of the home market, which the domestic article
had obtained. The repeal, therefore, would have no
Legitimate effect. But might not the foreign article
be imported IN vast quantities, to gut our markets
break down our establishments and ultimately to
enable the foreigner to monopelize the supply Of
our consumption America is the greatest foreign
market TOR European manufactures. 1t is that TO
which European attention is constantly directed
If great house becomes bankrupt there its store
houses are empted, and the goods are shipped TO
America, where, IN consequence of our auctions
and our custom house credits, the greatest facili
ties are afforded In the sale of them Combina-
finn pitfan ,.l4
even the operations OF foreign governments might
be directed to the destruction of our establishments
A repeal therefore OF one protecting duty from some
one or all OF these causes would be followed by
flooding the country with the foreign fabric, sur
charging the market, reducing the price, and
compete prostratlon OF our manufactures; after
which tie foreigner would leisurey look about to
indemnify himself in the increased prices which he
would be enabled to command by his monopoly of
the supply OF our consumption. What American
citizen after the government had displayed this
yacllaing policy, would be again tempted to place
the smallest confidence in the public faith, and ad-
venture once more in this branch of industry?
Gentlemen have allowed to the manufacturing
portions OF the community no peace they have
been constantly threatened with the overthrow of
the American System. From the year 1920, If not
from 1916, down to this time they have been held
in a condition OF constant alarm ard insecurity.
Nothing is more preludcial TO the great interests
of nation, than unsettled and varying policy. Al.
! though every appeal to the National Legislature
! has been respondedto, in conformity with the wish
and sentiments Of the great majority Of the peo-
pie, measures OF protection have only been carried
by such small majorlties, to excite hopes on the
one hand, and fears on the other. Let the country
breathe let its vast resources be developed let i'll
energies be fully put forth, let it have tranquility
and, my word Tor 1t, the degree OF perfection in tn,
arts which it viii exhibit, will be greater than lha
which has been presented, astonishing as our pro