The republic. [volume] (Washington [D.C.]) 1849-1853, 1849-10-15


TO unprotected articles, where it might naturally
and at first sight be expected to hold good. But
even there, practice subverts and demolishes the
theory. How much more when it to en-
counter the stupendous influences which brought
into action by collision of European arts and la
bor with American arts and labor This strife is |
the shock of empires, literally, without figure;
and the theory of free trade, far its doctrines
of prices and taxation are concerned, has more
chance to establish footing in this warfare, than
the poor traveller in the Alps, who finds himself
swept into the deep abyss below, and buried for
ever by the avalanche which comes laundering
from on high. Prices of little account TO the
nations of Europe, especially TO Great Britain, In
this struggle, 80 long the sacrifices are made
negative-so long as money is not lost and even
that may be endured for season. IL is strife Tor
relative ascendency, advantage, power, In which
such sacrifices are made by them in hope OF VIC
tory. Ever since the American fathers while under
the crown, began to supply their own wants, down
to this time, and far rs the people have succeed
ed with without protection, the prices OF the ar
ticles they have produced have been cheapened,
never 80 much as under protective system. The
competition is vast and comprehensive system OF
commercial rivalship in which nations the great
est and most powerful are engaged, by their sys
TENS of commercial policy; in which they have
long been engaged, and were never so active and
jealous as at this moment. The consequence is,
that the prices of articles comprehended III these
schemes have been reduced, generally and particu-
lary, to a degree which could never have been eI-
| perienced without this competition.
| 'There is not only large margin in Europe to
reduce prices, by the wrong that Is done to labor
though no more of it will be used than what is abb
| h,tth ara ia hmm
inexhaustible power in the United States to do the
same thing, under adequate system of protec-
tion much of which has already been employed to
that end. The power here consists chiefly in the
cheapness of our Government the freedom Of our
institutions the enterprise of the people, the in
crease of population, increasing wants, and the
vast physical capabilities of the country. Two
| things only render a protective system neces-
sary to us; our nerorty in the arts, and the higher
| price of labor The first may, perhaps, cease to
| exist in progress of time; but the second cannot
| cease to make the same demands for protection as
it now does, so long social organization and
that of other foreign parts remain the same Amer
lean labor must be sustained which can only be
effected by system of protection against cheap
foreign labor. But after securing to labor proper
| reward, the remaining power of sustaining com
mercial competition with Europe, and other parts,
reduce the prices of protected articles lower
than European producers under their system OF
taxation can afford, will be ample, and must neces-
sarily be so employed by the force of competition,
30 long as competition can be sustained; and when
that ceases from abroad, it will only be because
American power has the day in the market OF
the world, where it will still go reducing prices
of the same articles at home by domestic competi-
ton, as is acknowledged by M. Say in the follow
ing words: "A government cannot, by prohibition
elevate product above the natural rate of price
for, in that case, the home producers would betaks
themselves in greater numbers to its production
and by competition reduce the profits upon it to
f the general level. Ricardo also confesses the
same"
5 have made this long citation from Mr.. Cotton
though but very small fraction of his chapter upon
this subject as a comprehensive exhibition of the
general drift and character of the argument.
II 1t will be seen, think, that the principle of the
I argument is eminently practical, and one which
cannot fail to operate most potenty on this great
, question. Accordingly, we may expect to find IN
the history of prices Of protected articles in this
country the results of the action OF such princi
E pie. Mr.. Cotton conducts US through this history
of fact, in all it's details, from beginning TO end, IL
regard TO the various articles which have enjoyes
a systematic and permanent protection, and tn
reduction of prices is found to correspond with tn
> | above reasoning, In manner and to an exten
most striking and impressive. Such are the facts
and the facts be accounted for only by the rea
y soning. 1t is morally certain, that, if our owl
| people had not been enabled 70 enter into this com
:, petition, under protective system, the foreigl
: | producers, having the market, would have kept u
their prices; and not less certain that, just so far
our protective measures prove inadequate, or ar
4 -. al,f, -,
> power of foreign producers, and heavily take
!, by them.
y It's not denied that in many cases. the effect c
protective may operate to raise the price
OF protected articles in some degree, for brief pc
- Rod; until, ON the principle confessed by both RI
!; cardo and Say as above noticed, domestic compe
:, tition" shall have reduced them TO what Say call
!. othe natural rate of pri, e." The facts adduce
by Mr.. Cotton prove, beyond controversy, that tn
effect of protection in this country il uniformly an
NJ greatly TO reduce prices.
a The fact that the prices of protected articles arr
. in some cases, as exception TO the general ruiz
raised by the act of protection, transienty or eve
:, permanently, does not prove il tax, even TO IL
consumers Of such articles. On the contrary, ii
general operation of the system in securing the pro
"A pcrity Of the country, in which all parties whats'
I, ever participate directly indirectly, and in
;s many forms, is not simply compensation for tn
. exception, but much more. II is believed that =
"A party could be named, paying such excess of pric
:. who does not, under the operation Of protecti'
system receive an ample indemnifcation. How
~, then, could il be a tax?
= Even in the case Of railroad iron, which at pre-
IN emit in the peculiar circumstances Of the case,
~ obtained at a low price, in consequence Of the r
s duction Of duties by the tariff Of 1876, the bude
Nv of railroads are penny wise and pound foolish,
n rejoicing at this event, far II tends, as fac
nj To the establishment Of freo-trade system in d
be country. Under such system they would 10
ze more profits Of carrying the first year after the
I'd roads NAV be put in operation, than they gain
,s this difference in the price Of their iron and Il
- subsequent losses 70 them under the same systen
in ms compared with their chances Of profit under
he protective system, would be incalculable.
al But an adequate, permanent, and reliable prote
o. ton for the manufacture of railroad iron in III
nm douhtedlv in verv brie Of