The daily union. [volume] (Washington [D.C.]) 1845-1857, 1846-07-23

as our hrst directly protectivo tariff Now, fortn-
nately, IN 1910, returns were diligently sought by
the then Secretary Of the Treasury of the state
and value OF existing manufacturer; and the result
OF eonessedly limited information Yves, 1hat that
early period the annual value Of the manufactures
] made IN the United Statos was, IN round numbers,
/ NJ i,Vooooo year or two afterwards, under a
resolution of Congress, Mr. Galiatn, the thea able
Secretary of the Treasury, employed Mr.. oTench
Coke, Jealous friend and Distinguished advocate,
by pen and speech, Of the manu- interests
lof the country, TO make digest of the former re-
turns, and obtain all other attalnabie aorsation Of
INC state and progress Of tbs manufactures Of the
Union In his report, made after labonous research
and full consideration, he estimates the annual value
OF The manufactures of the Union for 1918 at 1900
200 600, and declares his conviction that they are
advancing at the rate Of 10 per csal per snnam.
Our population was thsss, only about s,000, 900.
From the carefully sscostsaed statistics OF the corr
sas OF lstO, oaf population having then advanced
10 upwards Of IL 600 000 Il sppssrs that the whole
amount OF capital in the United States embarked "a
manufactures was about $3.50 100000 The valossl
created from It's employment, will pretend, 81
/ presume, could have equalIed 100 per cent. and
YET that amount Of annual value would not have
bptns by great deal like ratio TO population, or
leyincod anything like the, annual advance which
i we're manifested by the anhual values and rate of
PL?grsss IN 1913. Sach is 'she ispsntable falling
on AFTER thirty years proteeton Such the result Of
the forcing and pamporng system, "a contrasted
wth the ELECTS Of free industry and fair compoth
lion, sustained only by the incidental encourage
ment OF moderate revenue duties. Should not this
exhibit starle the protected Classes themselves into
uonot and examination OF the operation OF their
mach Wanted and cherished system upon their
true interestsl To such inquiry, j would respect
iaNy invite them. My belief is, that they will
hnd comparatively limited class alone are sustain
ed by the protective system, and they without per-
manent benefit to themselves and great loss to the
nation. '.rg ......" rr. rr : .|Hal ~
The manufacturing and other projected classes,
Mr.. Chairman, may, for the purposes Of the pro-
posed inquiry, be embraced In three divisions: n
l. First. Those whose products cannot be made or
raised as chenply, or nearly cheaply, the i'm
ported products Of like character in foreign coun-
\ tries, . ....r .s TrvgEerHlS m
Secondly. Those whose products cost in produe-
qon here no more, or very tIe more, than like pro-
1 ducts OF foreign importations, and mny therefore
| enter into competinoo with the foreign imports
within our own markets, but who are MOI 80 firmly
i established or do not produce largely as 10 en-
gross the internal market and exclude the foreign
lmportatiens; and, . r.. ..ga....r1 ..g.., -
| Thirdly. Those who can make. their products as
cheaply, or even more So than articles Of like char
aoter abroad and being established, have engrossed
the markets Of the country with their supplies, and
! excluded the foreign imports. sd. - f..ni
In relation to the first Of these classes, il may be
promised that when the cost OF producing any arti
Gle Is seriously, and from permanent causes less in
foreign country than in our own, il is vain to
hope, by any temporary protection or bounty, toll
establish its production here so that il can flourish
and sustain itself During The present discussion,
we have heard many faliaces urged on the faith Of
the well known maxim that prices are regulated by
supply and demand. In limited sense, and as APP
plicable to particular markets. this is sufficiently
true Tor general assertion; but on comprehensive
vIev, and with relation 10 permanent duration, Il is
| incorrect and deceptive On any extended scale 4
and as a permanent thing, however temporary de-
hcencies and huctuations may occur in particular
markets, supplies will always be aorded equal u
the demands Of purchasers, and those supplies will
be furnishsd from the sources whshce they can be
obtained cheapest, unless the obstacles of nn-
wise legislation interviews soE thwurt the laws efl
trades and they will be sod pnms cost Of produce
ton, with fair tetm on ths capital invested This
is manifest; for If from deficient supplies or other
cauees, the article commands mere than fair profit
on prime cost, capital and labor viii be tempted 10
engage in its production until, by composition and
abundant supplies, the rates Of profit reduced
II, on the other hand, from over-produchon or an
other cause less than a fair profit on the prime cost
Of the article is all that it will command its produce
tion will be surely abandoned, and first and most
rapidly in those quarters where the prime cost OF
production is highest and least enables them to en-
dure reduction or continuance. To apply these
principles to the first class referred to- no extent of
| supply induced by the exclusion Of foreign COM
petition and inordinae advances in price, conse.
quent on the monopoly of1high protoctive duties
can cause a permanent reduction of the price Of ar.
ticles not susceptible of production here cheapy
as abroad to the prices of the foreign article. The
difference in the prime will always let the inter
nal production be stimulated and fed by bounties to
the utmost, gauge the excess of price that must be
paid for the home article over the foreign Such
production could not be carried on day, but must
Immediately go down, unless high bounties be paid
to sustain IT, or which amountst to the thing the
command ofprices be given il by the exclusion Of the
foreign and cheaper production. 1t s and so long as
the prime cost is less, will be- without high pro-
tection losing business. On such class of produc
TONS what now viii be effect fthe protective sys-
tenn To induce mer, to engage in business so wholly
dependent and precarous very high duties, such as
to afford inordinate bounes to internal production
must be imposed on the foreign imports, For some
years. therefore, and to those who first embark un
der such stimulants, inordnate gains in the form Of
prices enhanced to the amount Of the duty, or 30
nearly as only to avoid the foreign competition, are
realized Such larger bounties, if the system be
continued, finally, however, induce flow Of capi-
tai and labor from other internal productions OF
more real value and, by domestic competition under
such excessive inducements, the business is usually
overdone; glut ensues in the market; prices tenn
porarily fall below the actual coat of protection and
a fair profit thereon. The more feeble and recent
establishments or those least favorably situated for
the prosecution of the business are borne down,
the laborers cast out of employment. and the own
ers and projectors utterly ruined. Production thus
! diminishing, the surviving establishments again
command the markets; prices rise to the level of
the duties again. and inordinate profits are again re-
allied. After various fluctuations of this kind,
things finally settle down Under the influence of do
nestle competition to prices giving only fair re-
turns on the prime cost within the country with no
inconsiderabe added premium for the risks of so
dependent business. But the prime cost being
greater of production here than abroad, the prices
| can never be brought down to the rates for which
the foreign articles could be commanded; and the
difference is perpetual bounty paid by all other
ho he L..
Dor and capital in employment at loss, which
might else be pro6tably engaged in other productive
occupations Thus a dead loss---the difference be-
tween the cost of production here and abroad--isI
incurred by the nation, and constant contribution
extorted from all other productive industry 10 keep
men deirng aDay at losing business nndto support at
profit enptoymenis ,clch cannot support Themselves
And in this general sacrifice, what gain is there to
such home producers themselves, At first the
heeting enjoyment Of enormous profits, followed by
fluctuations and ruinous reverses; and finally, as
| a permanent result, only reasonable returns on
labor and capital embarked in N precarious and