The daily union. [volume] (Washington [D.C.]) 1845-1857, 1846-07-03

not the inevitable consequence first the plethora
n agricultural products in the home MARKET and
second, The universal depression of prices Of hos
10 productsl
And as the carrier as well as the producer is benz
fitted by active and profitable markets. not the infer
% ence warranted that the restrictive system inaicts
great injury upon the internal trade of the country
. and especially that of New York; J
IL need not be said that the depression of agricu
ture is national calamity, affecting the general
happinessi and that its prosperity nfuses freshness
health, activity, and vigor throughout all classes.
And here let il be observed that this interest fur
nishes the means to employ the blacksmith, the tailor
the shoemaker the cabnet-maker, the joiner and
a penter, the wagon-maker; and when these di-
minlshed or cut of, those trades are left TO lam
gushing and sickly existence. But it il urged that
too many engaged, or ars disposed to
engage, in agricultural pursuits. IL this be
, true, II cannot, or ought not to be prevented
. by government interpretation. With our vast unoc-
cupled territory, and the love Of people for a
rcuture the national happiness will be better
cured by policy that shall encourage rather than
rstard that branch ofindustry. Men engaged in the
fields, retain the sentiment of individual liberty.
They cannot be swerved by appeals, that sometimes
urge greganous population into excuses. From
their habits of thinking, they will be the last to
sent TO schemes, however specious, tinfriendy, or
dangerous TO the public liberties; and they will be
the first to resist all such schemes, however old
Wfen theif tendency becomes manifest.
Third Protective duties, 30 far as they tend to
embarrass or prevent all trade, may be admitted to
check excessive trade. Their Influence in this d.
rection has, at various periods, been remarkably
modified by the wedlock Of government and paper
money banking. The process was simple and nau-
ral The revenues being deposited in the banks
the banks loaned them TO their customers. The
Icurency, thus inflated, depreciated; the relative
value Of property increased. Then followed in
creased demand for property. Means TO purchase
1t were at haad. The revenues were still pouring
into the banks, and the banks still pouring them
out The prices Of all domestic productions ad-
vanced some twenty or thirty per cent, and hey ond
the limit Of the protective duty. Away went the
tariff foreign trade received a new impetus; the ma
tonal treasury was inundated with imaginary
wealth, which the banks went lending TO the
community. Thousands advanced to sudden for
tunes. Fine carriages grand establishments prince
lily equipages and furniture-all were the order of
the day, until finally, startling and terrible as the
earthquake shock at bright noon, came the collapse
that spread devastation on the land.
Such is overtrading-the result Of overbankng,
produced by the government partnership with
banks. The tariff, so far from preventing it, could
only lend helping hand to augment the mischief.
Let this government act within the sphere of its
con sututiona duties, confne its fiscal operations TO
the of coin, and provide for the saekeeping Of
its revenues, and leave the laws of trade equalize
the exports and imports, and shall avoid in fu-
ture the disgraceful and demoraizing disasters of
| 1919 and 1897.
There are two other views, subsidiary to those
that have been alluded to- which, they are urged
with much pertinacity, are deserving passing no.
! tee.
|. IL is contended that protective duties, by d.
vertng capital to particular pursuits or branches of
industry, superinduce competition, which effects
reduction Of prices of the protected articles thus
benehting the consumer.
If this proposition is true without qualification is
not the inference fair one, that prices will
ally fall to such extent exclude imports en-
tirely, and thereby defeat revenuel But The areu-
ment, so to speak, furnishes the means of its own
refutation If competition confined to a single State
or nation is so effective to reduce prices, would not
the competition of the world with unrestricted trade
| be vastly more so
| Numerous examples at hand to show that
fall of price has taken place since 1916 on almost
every article of consumption not protected EQUAL or
about equal, to that Of the protected articles Tea
coffee, tobacco, and cotton are familiar instances
But it is not necessary to detail them.
| "a reduction price (says Mr.. Gallatin) is in no
case whatever due to the tariff long as similar
foreign article still be imported and the price of
the domestic commodity is not reduced below that
at which the foreign is sold. Under these circum-
stances the reduction is clearly due to fall in the
price Of the foreign article, and is altogether indie
pendent of the tariff"
| Mr.. Dexter, manufacturer, examined before the
Committee on Manufacturers in 1923, said in rela-
ton to the reduction of the price of coarse coons
at Is owing to the improvement Of machinery, the
reduced price of cotton and the increased skill
in manufacture" If the reduction can be account
ed for on any other hypothesis, it be that the
restrictive system operates to reduce the wages of
labor the price of raw Materials of provisions, of
machinery, or any other article necessary for the
manufacturing process"
1t cannot be admitted, Therefore, that protective du-
ties reduce the price of manufactured commodities
Nor is it, on the other hand, always true that the
price of those commodities is enhanced to the ex-
tent Of the duty imposed. A writer in the Mer-
chants Magazine, Of November last appears to me
to have stated the rule with as much precision as
may be. He says:
duty put upon article we consume hut do
not produce increases its price to the
shape Of profit the merchant who first pays du
~ on the additional capital he requires to conduct HIS bust
ed duty put upon imported article when similar
article be and Is produced at home hut pro-
the imported article and rivai an amount equal 10
The difference in the cost Of producing at home and abroad
produced home cheaper abroad and pro
duced to extent sufficient to all demand it,
does not affect the price at ALL"
| And he adds this significant illustration.
"A duty tea and coffee may be considered as an illus
ron cotton and wool of the second and duty on raw
cotton wheat butter beef, pork and farm productions
generally Of the third maxim"
2. 1t also contended that the revenues raised by
protective duties paid not by the consumer here
but by the foreign producer Of dutiabe commodities
| i'm ported into this country
In reference to this idea, suggestion is hazarded
with great Difference to those who are understood to
maintain it-and that is, that it strikes at the founda-
ton of all protection by any process short of pro-
hibve duties systems There can be no protec-
ton by duties, long the foreigner consents to
pay them. The able writer just referred to ex-
hibs another consequence of this assumption in
strong light. "Thc principle established ;" says
he, "and who does not perceive that the American
people are annually paying large portion of the
expenses of the British government. If we, by
taxing what we buy Of Great Britain, force her to
pay the expenses Of our government, she, by
taxing heavily what she buys of us, pels our
people to pay the expenses Of her government And
as the amount required for the support of our gov
eminent is lie in proportion to population than any
people must be taxed annually many millions of
dollars more to s,nnnrt the nnnarchina Of Eurar,e