Ypsilanti sentinel. [volume] (Ypsilanti, Washtenaw Co., Mich.) 1843-1900, 1844-01-31
For the Sentinel.

\ For the Sentinel.
THE REASON WHY A PROTEC-
TIVE TARIFF RENDERS GOODS
| CHEAPER.
Mr.. EDITOR:
! l closed my fopmer communication,
designedly leaving il open to such queries
as these :-"How is it possible that man.
ufacturers can pay as much for stock and
labor, and sell their goods as cheap as
before the passa &c of the presen, Tariff,
and now saake money, when they lost il
before1" IF given quantity of goods
brought given price before the passage
Of the present tariff, and money was lost
upon them then. how is it possible, if The
cost reproduction is the same, that they
can now be sold at profit, for less
price?
To all but those who have TO foot the
bills, these are probably the blindest pro-
positions in the whole science of pro,ec-
ton, and they are both solved by this one
fact; that by protection re give our opn
market to our O,on manufacturers. Ex-
perience has compelled me TO solve this
aroblem; and | hesitate not to say, that
the affirmative of the above propositions
is not only true but the reasons phy, are
capable of demonstration. The follow.
ing may as taken as true illuslre
the manner in which the
business has been carried on
try for the Iast three years.
Before the passage of the tariff
cost Of given quality Of saiinst
follows. Wool and warp say 80 CT
stuffs and labor say % cts. equal
cents per yard. Such cloths actually
sold in market at that time for 81 cents
per yard; being nossinaa profit of Is cts
per yard, or more than twenty-five per
cen. upon the cost. But as our market
was constantly gIu,ted with foreign goods.
a forced sale ofthe goods for cash eeuld
not be made at rates which would pay
Tho actual cost and commissions, aud the
only alternative was TO place Them in
store with some commission house in hope
of ultimately selling without loss. Here
the goods usually lay from six to eight
months before sold, and when they we're
sold it was generally, if not entirely, on
credit Of eight months without interest.
But as the manufa cturer could not con-
tinue his business without realizing in
advance the proceeds of his cloths, II was
necessary for him 10 submit to the follow
eg charges: first, the bank charges two
per cen, for collecting the company's
drafts; next the commission house char
ges two and one half per cent for accept
lance; this having to be repeated every
ninety days subjected the company to the
bank collection fee, equal with the &C
ceptance 20 ten and one half per cent.
quarterly interest IN advance equal to
eight per cent, ten per cent, upon the
amount Of sales for sale and guaranty, e.
quail to IL per cen. upon the cost. These
items amount to 81 IL percent loss Of
about five per cent more than the aomi, |
nal profit; without bringing in The month";
ly bills for storage, .insurauce, postage,
printing. etc. This estimate is has ed up-
on the superstition that the manufacturer
was so fortunate as to have his cloths
sold within four months upon the usual
credit. When the cloths lie six, twelve,
fifteen. or eighteen months before sale, |
The expense Of interests. drafts, &c. &c. |
is proposlionably increased, and Of course |
the loss greater.
Now it may be conceded that in glu..
9 d market much must depend upon luck
and chance in efec:ing sales, and of
course sometimes a case Of goods will
sell more promptly, or for better price,
or the purchaser may cash his own eight
months paper 5 per cent. Of, and on such