Daily Richmond Whig. [volume] (Richmond, Va.) 1840-1842, 1842-01-12

Il ,""uIu oc destroyed, what elect would that pro.
| nueff The sugar plantations would be converted
| ioio cotton keids, and the gentleman from South
| Carolina would find increased competition in the
production OF his favorite staple while his sreai
| Northern market, which now consumes oae quar-.
| er OF the whole crop. would he lost. Meanwh ie,
the experiments Of Great Britain in India would sue
coed. and she would DO enabled to obtain her raw
| m,tenal from her own colonies Thus would the
policy OF tho South spread desoation over the coun
| try. and involve her in the same common ruin.
| The gentleman from South Carolina has assum.
| ed that all protective duties were tax upon the
| people, TO be paid n hourly to the manufnc.
tuters lilo has asserted, again aud again. that prices
Viii rise inst in proportion to the increase Of du
". This. MIR Speaker. i, far from being tho fact.
SO far is this from being the TRUTH that the opposite
| is more frequently true. There is, admit, no ab
soii,c, fixed rule in this case. What is true of ono
| article my not be true Of another What can be
| shown to be the result of duty al one time, may
not be produced to the extent at another Much
mus, depend upon tho supply aud drmand. IL will
also be found true TINT small deficiency in tn. sup.
ply will raise tho price of the whole commodity in
the market fnr ahovc the value Of the deficit. And,
on the other hand, surplus, though small will re.
ducc the price OF the whole commodity far beyond
The value of the surplus. surplus worth 8 no 900
would frequently produce an aggregate reduction
OF the whole quantity in the market to the amount
OF $4,000 This principle il s., essential 10 the
right understanding OF this par, OF our subiac that
trust shall I've pardoncd. Il attempt a more full
Illustration. We will suppose lha, there ar, ten
and that 500 per quarter is fair rem, for each Of
them. But the number OF traders wishing TO Occur
~ the'c shops is but nine, thereby le,yins n sur
plus OF one shop. Now. sir, what will I've tho prac-
teal effect OF this stnte OF things Nine shops will
I've occupied, and one will be vacant. The owner of
the vacant shop, seeing all his neighbors enjoying
an income OF 500 per quarter. while he receives
nothing, Offers his shop for 800, on the wise prin.
ep!e that he had better take that than nothing.
ms Offer induces of the tr,dcrs who is paving
Sloo, TO quit the shop he occupies and take tho
one he can have Tor 500 This change leaves ano;her
shop empty; and this induces its os ncr 10 pu, that
al S9o per quarters this induces another To rcniov-
and take shop at $50. And so they will 90 thrnryh
with each shop, till all are broush, down 10 500
Here has been reduction Of $40 upon zach shop
making an aggregate OF 500, being inet euu,i
TO the value of Tho surplus. And how s.ands the
matei now Why,sr, there ia ons empty shop "a
al tnc oeSnnlnsi nnd the same process OF reduction
viii 90 on. TIL the pcc IS brought down s, low, AS
10 induce some person TO embark in tra,ir, who.
unner oth,r circumstances, would not think OF
ensaging IN this kind OF business
This principle. which every pr,ct;c,, mn, ,;ii
readily acknow ledge, enters largely inn our can,
mefce, ooth foreign and domestic ard has An nh.
important bearing upon prices. Keeping this prn
Me IN view, let US inquire into the eff CT of tar
III upon prices. suppose an article now paying
~ per cent. be subjected 10 20 per cent more
according In the gentlem ms doctrine the nricc
must ta'se ~ per CEN. IN our market But in fact
this will not rs the c,se. The American merchant,
who ms been IN the habit OF taking this article of
an tnssi>h house TO the amount of 50 900. writes
u his correspondent in Great Britain that in conse
qnence OF the Increase of DUTY, he can now take
bu. 900, unless the manufacturer will reduce his
price. The British manufacturer, knowing full
well that II $1,000 worth OF his fabric he thrown
into his home market, il will reduce the price and
lessen the value of his whole stock on hand i'm
meciateIy reduces his price, and supplies hi. Old
customer with the usual quantity of the article
The amount OF the reduction will depend upon the
state of the market : sometimes it will he more and
sometimes less. The average, pcrhaps would n.
one-hllt of the increased duty. the foreisn MANN
iieturer, paying one.half of the additional duty
the actual ''uty paid by the importer would be 30
per cent. instead oi 40 But rs the increased duty
would protect the manufacturer, our citizens would
embark with Yankee zeal in this specie, of mann
iacture This would produce competition al home
ana the increased quantity OF the fabric thrown into
our market, would have n tendency TO produce n
surplus and tins would 10 keep dow the prico
here would he double competition n connect.
ron 10 between me ioreisn and the domestic mlnu.
iacturers, and competition between tue domestic
manufacturers themselves The natural tendency
OF this would DO to reduce prices Its operation
would I've more or less sudden, ACCORDING 10 tho
Character oil the manufacture. Ii il were costly
kino OF manufacture, or one which required great
experience or skill, 1t would take longer TO bring
tins reduction about. But if the manufacture were
OF such nature as to require but little capital or
little experience, the competiiion and conseopcn,
reduction would be more i'm mediate. After m ,kino
all allowances Tor fluctuations, from various causes
we lay It down as n general principle, which will
hold good, take number of years in succession
That duties looking TO protection, if they are Judi.
cousy laid, will reduce prices
This not only appears evident from the nature of
the case, but IS sustained by facts taken from official
documents. These facts I will present for the con-
sideratIon of the House.