The daily union. [volume] (Washington [D.C.]) 1845-1857, 1849-10-25
Protection.

anOtner.
Gafa aFs4 Protection.
The Boston Atlas of the 18th Of October endeavors to
prop up the protective system by extract from an art-
ncle which we published some time since on that sub.
sct The Atlas fails most sgnally in its effort as it al
ways will fail when it endeavors sustain the cause of the
monoposs by any recognised principle OF national econ
omy or support it by elauhentcated facts gathered
from the practical operations OF trade and commerce
We stated in our article OF the 10th of October which il
criticised by the Atlas, hat if any portion of Anerean
labor is encouraged by protective duty the tax must
fall upon other portions Of american labor, which pays
the duty on the article of consumption" The truth Of
this proposition is not directly controyerted by the At.
las, which contents itself with assang it indirectly and
with saying that it has only the appearance of fairness
and truth The appancy with which the Boston editor
approaches the important subject OF the operation of pro
ecve duties on domestic industry induces us TO believe
that ne has never seriously considered it. We are in
duced therefore, to expose the alacies which he advan
ces, without noticing the conceded imperiinence OF the
language in which they are stated
II any portion of American labor is encouraged by
protective duty that duty enhance the price of the
foreign production upon which it is levied if does moi
exclude il altogether from our ports II the duty be moi
SO high as TO be prohbitory the foreign article on which
ii is levied will still be consumed by American labor
and the importer having to pay protective duty in oul
custom houses, must look to the consumer TO REIN.
burse him. He cannot go into the foreign market and
purchase goods. pay the duties levied at our custom
houses and furnish them American labor on as low
terms as he could afford to furnish them il no duties al
all were paid We have been taught that the wages OF
labor the profits Of stock and the price OF the raw mate
rial were the elements OF the natural price Of all manu-
features But after the manufactured articles leave the
hands Of the manufacturer there are other expenses to
be incurred before they reach the hands OF the con
sumer. The importing merchant must pay freight to
the shp-owne insurance to his underwriters and duties
10 the custom house officers, and he must look to the con-
sumer not only to reimburse him for his whole outlay,
only for the price paid to the manufacturer and the
freight paid the shpowner and the insurance paid to
his underwater, but for the duties paid by him at tie
tomhoue also And II the demand be great enough to
reimburse him for his outay-of whi he protective du
ties form payt-and to yield him fair profit on that
outlay, he will abandon the business and carry his capital
into some other employment The enhancement Of the
price Of foreign manufactures thus occasoned by pro-
tecrye dues enhances the price paid for similar articles
Of domestic manufacture, and places burden on those
branches Of American labor which consume them equal
TO that enhancement
In order to overthrow this reasoning, the Atlas makes
the following quotation from our article Of the 10Th Of
October:
'The laws OF trade mmutable, and legislation
suspend their operation avert the OF
their violation One OF these laws s thar supply and de
exceeds demand the prices mu.t Ia and rice persa
tariff tariff and whether The excess OF sup
is the same"
And againi
at is the law that no one business can for any great
length Of tme pay greater profits than another as soon
as IL acerainod that buness, whether from potec-
ton, bonnte', excess Of demand other
profits greater than any other, capital viii be win from
those less productive, and invested in that produc
tive, until increa ed competition and increased supply has
diminished prices and eqaazed profits"
On these extracts the Atlas comments as follows.
These doctrines which have always contend.
ed They directly with Mr. Riches favorite
proposition, "hat IL any portion Of Ameiean labor
coursged by a protective duty, the tax must fall upon
other portions OF American labor which pays the duty
the article Of consun pon :; and glad, therefore,
TO see the admission from him that they sound,
| lessened.
"When tho supply Of any article exceeds the demand
tho price must FALL and ves versa" Il llows, therefore,
hat any system which tends increase production, de-
1eass prices. Now, in the articles OF irou coal wood
cloth, hemp. and various other things OF which our
annual consumption altogether exceeds 500 OJoOOo the
protective system has been smineny osun,eo,al In in
ersasng probation, and II is well known fact thar most
Of articles be purchased hos and under the
duties established by the tar Of 5i1 for lower prices than
hey could have been had. thirty years ago. day free And
dis is the legitimate eject Of projection 1t drew our cap
tai aud labor into these channels I'LL prodocoa added
to that Of the Of the world caused the supply exceed
The demand, and then prices commenced falling, and have
continued 10 ls till they have reached the point have
| stated
We cannot attribute this shallow sophistry TO the gno
rance OF its author II must have been put forth for the
purpose OF deceving, by who held the intelligence OF
his readers in contempt The laws Of trade immuta
BILE; and when the supply Of any article exceeds the de-
nand. its price must fall and when the supply falls
short Of the demand il must rise There is another law
also. which the sapent editor Of the Atlas seems never
10 have heard Of II is this When the supply 90 far
exceeds the demand as to reduce the price to point
which does not repay fair profit on Ms cost of that
supply, that supply will cease until the continuing