Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1846-07-31


wlhou. the poor dependence al premiums ard
honniies. without any meritricious alliances
with political parties aud their interested lead
ers. lhey would, in ali probability. nave hun-
rished more vigorously, and attained 10 har-
der and nobler growth To show that | am
in,.ulsins no fanciul speculation here, we may
refer 10 the extent Of manufactures and the
rates Of their annual advance prior 10 the COM
mence,ie ul Of The protective system. As sys-
TEN, none pretend lha, il originated before 1916;
anil ndeed the Tariff Of 1871 is generally re-
sagde As our first directly protective tariff. Now,
fortunately, in lSle, returns were diligently
sought ny lhe then Secretary OF Inc Treasury, oil
the state and value o; EXISTING manufactures: and
the result OF copiessediy limited Information was.
ina, al that early period, linz annual yaine OF the
manufactures made in the United States was in
round Numbers. Sil7UU0, 600. A year or two
afterwards, under resolution OF Congress- MIR.
Gallalin The then able Secretary OF The Urea
suTy. employed Mr. Tcnch Coke, jealous friend
and distinguished advocate, by pen AM speech, Of
The manufacturing interests ot The country, 10
make digest Of The former returns, and obtain
all other aiia Unable Information oil he stale ard
progress Of the manufactures OF the uoion. In
his report made after la!oIions Ifselrch and full
confederation. he estimates The ANIMAL value 81
,hr manufactures Il he Unon for 1873 al goo
.
advancing Il, lie iale -. 20 PER cent Per annum.
Oar population was then only abo1t S,0OGUG0.
From ne carefully asceGained statistics III tho
census II $780, our population hayiag then adj
vanced 10 upwards OF 100000, ii appears that
Inc whole amouhlof capital in the United States
embarked in manufactures was abuu 1883 coo,
aaa Tie va!nes created from its employment,
more will pretend. presume, could have equallcd
100 rcf cen and yet that amount 3i annual
value would not have borne, by great deal, a
like ratio 10 population, or evinced am thing like
The annual advance which were manifested by
The annual values and rate OF progress in 1913.
Such is The lsmeniablc falling oil il,er thirty
years projections such the result; OF The forcing
and pamprrirg system, as coE;ras!ed TiIii he e-
lecs Of lrca Industry and fai. competition, su>-
tanned un!y h. the medicinal announcement al
moderate revenue duties. Should MOI his EXHIBIT
,iarilc the protected classes themselves ii!o
doubt AMI examination ct he operation OF their
much vauned and cherished system upon lieir
truc interests? To such inquiry wouid respect
fully invite them. My belief is, thai ney will
find comparatively limited class alone Ire sus-
tanned by The protective system, and they without
permanent benefit 10 themselves, and a g'ea! loss
10 The nation.
The manufacturing and other pFoiecedclasses,
MIR. Chairman, may, Ter the purposes OF he pro.
posed inquiry, be embraced in three divisions
First Those whose products canno; be made
or raised as chcany, or nearly as chcaply as the
imported products Of like character in ,uIcien
countries;
Secondly. Those whose products cost IN pro-
dpciion here, 10 mere, 0: very lille MGR, Than
like products Of foreign Epora'ione, art may
thcrrl..re enter into competition with me iofcicn
Imports within anr own ma rkcts, bui who are not
so firmly established or do MI produce 50 iaiee'y
as 10 enercss The internal market and cScllcc The
foreign mporiations; and,
Tnlrdlv Those who can make their products
as cheaplv, or even more So han articles oil Hike
character abroad, anu being established have en-
crossed the markets ul The country with their sup
plies, and excluded the foreign imports
In relation 10 Inc first of these ciasse-, il may
be promised, that, when the cos. OF producing
any article is seriously, and from permanent
causes, less in foreign country than in our own,
il is vain 10 hope, BY any, temporary protection
or bounty, 10 establish its pfodnciaa here, 50
thai il can iiaIfs.. aud sustain iiSrf. DARN.
The present DISCUSSION. ~ have heard many ial-
lacies urged On ihe iih 81 he we:i known max
i'm. that prices are regulated ~ supply and de-
manJ I'm limited sense, and as applicable 10
patricular markets, This is sufficiently true iai
General assertion; but, on comprehensive
view, and with relation 10 permanent duration,
i, is incorrect and deceptive. On any extended
scale and AS permanent Thing, however tenn
poraly deficiencies and fluctuations may occur
in particular markets, supplies VII always De
afforded equal 10 the demands III purchasers,
and those supplies will lie furnished from The
sources whence they can lie obtained cheapest,
unless III. Obstacles at an unwise legislation IN
tsrvcnc 10 thwar, The law, Of lraje; aad they
will be sold n prime COS, ct production, with a
!air rc;urn on the capital invested. This IS ma
nlest for il, from deficient supplies, or other
causes, the article commands n.ure than Ian
profit ON prime cos, capital ard labor VIII Dc
tempted 10 engage in its production, lniil, pY
com jetilion and abundant supplies, The rates
cf profit ara reduced II, on The other hand,
from over production or any other cause, less
than fair prof, on the prime cost oil the arti'
Gle is all that il will command its production
will be surely abandoned. and nrst ana most Ia
n;Jlv in those quarters where the prime cost Of
production is highest and least enables them 10
endure reduction or continuance. To apply these
principles 10 The first class referred To- no extent
of supply induced b. the exclusion OF foreign
competition and incrdinae advances IN price
consequent on The monopoly Of high protective
duties, can cause a permanent reduction OF Inc
mice of articles NOT susceptible of production here
as cheapy as abroad, lo Ihs prices of The foreign
article. The difference in The prime cost will al
WAYS. lei The internal production he stimulated
and ted by houniies 10 The utmost, sauee The ey-
cess Of price tina, must be paid Tor the home ar
licle overlhe foreign. Such production could mol
be carried on day, but must Immediately GO
down, unless high bounties be paid 10 sustain II, or
which amounts 10 the same thing, The command
OF prices be given it, b. the exclusion oil inc 10
reign and cheaper production. IL IS, ana SO ions
as the prime cost is less, ever will be, without
high protection, losing business. On such
class OF productions, what now will tc the enec!
of The protective svsfeml To induce men TO en-
cage in 4 business 50 wholly dependent and pre-
caren., very high duties, such rs To alo'd NOR
dinatc hounlies 10 internal pfoinclion, must De
imposed On The foreign imports. For sone years
,here;nrr and 10 those vino first embark under
such siimnlanls, inordinate gains, IN me form OF
nrices enhanced To the amount oi The Guty, or
81 nearly as only TO avoid Inc foreign conpe-
,,ion. are realized Snch larger houn'les, II the
system he continued, finally, however, induce
A w of capital and labor from other internal pro-
duc;ions OF more real value, and, by domeshc
connection, under such excessive inducements,
the business is usually ovefdane; slut ensnfs
in the market; prices Temporarily iali below Tue
actual cos; vi protection, and fair prom there
an The more feeble and recent establishments,
or those least lavorably situated Tor The pros'cu-
linn of The hnsineSs. arr hrrne down, me iahoFers
cast gu! Of employment, AMI The owners and pro-
ieclors utterly .nined. Production thus dimin'sh-
ing The surviving establishments again com,
r,ani Inc markets; prices rise 10 the level Of
The duties again, and noriina'e profits are again
realized. After various fluctuations OF this kind,
things finally settle down under The influence oi
domestic competition to prices giving only fair
returns on the prime ccst within the country,
with no incons;derablc added premium for The
risks Of so DEPENDENT business: But Inc prime
cost being greater of production here than abroad,
the prices ca n never be brought down TO The rates
for which The foreign articles could be command
ed; and ,he difference is a perpetual bounty paid
by all other classes, who consume the products,
10 maintain labor and capital in employment
At loss. which might else be p'otl!a5ly engaged
in other productive occupations. Thus dead
!oss-the difference between the cost Of protuc-
lion here and abroad--is incurred BY The nation,
and constant contribution ex;orled from AL
Other productive Industry 10 keep men etirtng
a,rev ct a losing business, and Ia snpPoTt a
,ya6 emp'oymcnis ,rtieh eGanot support them
uiSes. And, in this general sacrifice, what gain
is there 10 such home producers themselves Al
frs, The dseling enjoyment OF enormous profits,