The republic. [volume] (Washington [D.C.]) 1849-1853, 1849-10-20
Public EconeIny.-No. A.
Proieciioe duties NOT taIesPrOtsction a from
foreign taxation.


ProieciiUe duties MOI Protection a from
foreign taxation.
MEssas EDrroRs In my last undertook TO show
that protective duties NOT ta1es any parties or
persons whosoever, where the advantages which all
parties and persons enjoy under protective sys-
TEN are considered; and, generally, that the prices
of protected articles not only not enhanced, but
reduced. Sometimes, and for a season-that is, till
a home competition shall have been established
and become vigorous-the prices of certain articles
are increased; but, even then, the benefits of the
system to all parties than counterbalance
transient and limited result of this kind, that, all
things considered, protective duties never taxes
For the most part, however, and almost without ex-
cepton In the end, the articles thus protected are
obtained cheaper than could be done without pro-
lection. The reason of this, shown In my
last article, is the great and potent principle oil
new competition between two grand commercial
spheres of the world--the American and European
or foreign. 4 yrori this might be expected; 1t is
proved by facts This is view of the subject
which Mr.. Cotton believe, has been the first to
put forwards and think il is the true view. He
has propounded the theory, and verified it by
facts.
But tits asked what, then, is the benefit ofprotec
ton to the protected they get for their
products; and especially ifthey obliged to take
ess3 The benefit from the long established
and now well known maxim, that small profits in
large business better than large profits in small
business. The design and effect of protection
" secure the home market to home producers; and
as far possible, always, in the end, to enable
these same producers to go into the foreign mar
ket, and compete with all the world. When they
are able to do this it is proof positive, not only that
the protected articles cheapened, bat that they
are down to the lowest point at which they can be
produced in any part of the world.
"Cotton goods" says Mr. Cotton, (which cost So
cents yard before the tariff of 1885,, protective
tariff shave been reduced to 7 cents. Cotton
shirtings have fallen, under the system Of protec-
ton, from IS cents yard to s. sheetings, from 80
to I; checks, from 80 to 8; striped and plain ging
hams, from 26 to 8; printed calicoes, from 30 in
1926, to 9 in 1914; each of the above being sup
posed to be of the quality at the high and re-
duced prices The fact that the British govern
ment have been obliged to enact different duties for
their eastern dependencies of 5per cent, then
of 81 next of lOt and last of l5 to exclude Ameri
can cotton goods-is conclusive evidence that the
American manufacturers can and do sell cheaper
than the British. This is great, a stupendous
fact.
ssFrom 1909 to 1914, before cotton manufac-
tured in the United States the British duty the
material was 25s I'd. per cwt., or nearly 81 cents
pound From 1915 to 1919, it was IS. cd. per cwt.,
or nearly 2 cents pound. At last it got down to
farthings pound; and that was taken off Gin l845)
for protection against American competition. But
for American manufactures, ESQ protected,) the
American cotton grower would have been In the
power of the British government at this moment,
with duty against him in England of 81 cents a
pound on raw cotton, more less. There is no
doubt that, if this domestic and world wide compe
tition had not been brought into the field by the
American protective system, the prices of cotton
goods would have been kept up much above what
they are at present." some rs, some 80, and some
over 100 per cent. higher
What is true of the history of the prices of cotton
manufactures above, is proved by Mr.. Cotton to
have been true of all other manufactures, which in
this country have enjoyed system of permanent
protection The facts illustrate the potent influence
of the great principle which he has laid down, and
establish the conclusions not only that an Ameri-
can protective system tends to cheaper the articles
protected, and does cheaper them, but that our
manufacturers can live and profit by it too Where,
then. is the tax? There is such thing, butquite
the contrary.
need not explain to you, Messrs Editors how
country--every other interest, indeed, no matter
what's benefited by the establishment of domestic
manufactures especially the agricultural inter
ests-on an immense scale, by having market for
their products brought to their own doors. In a
given population, with given number of interests,
every new art is benefit to of those interests,
and an injury to none. 1t is thus public and gen.
sral oood IL is like an undulation in body of
water, which gently moves over the entire surface
ill every part is affected by IL.
1.-THE consumer" says Mr.. Cotton, no matter
who he is, is benefited in many ways under a
protective system-by cheapening most of the arti-
cles he has occasion TO by giving him employ
ment if he lives on wages; or, whatever be his
ca Killing or position, by making it more productive
10 himself in prosperous state of society-that 1t
il impossible he should not participate in the gen
eral welfare, so as to than compensate for any
supposed burden, which, however, is only iinagn-
ary. When the duty is not prohibitory, the pro-
tected article s never desrer but always necessa-
rily cheaper, by bringing home competition into
the field against foreign. Even prohibitory duties
reduce prices Ia the end, in the of articles in
general demand, If the system of protection be re-
liable and capital dare venture into the business TO
sufficient extent, il always will If protection is
secure"
But, Messrs. Editors, to have proved, not only
that protective duties not taxes, but that they
have altogether contrary influence, and that in
a very great degree, in all their domestic aspects,
relations and results and in application to all par
ties whosoever and whatsoever-to have proved all
this, say, is but a small thing compared with what
Mr. Cotton undertakes in his oath chapter, which ]
now propose to consider, viz; that can american
protective system Is rescue from foreign taration"
The simple announcement of this proposition
does not in itself, naturally suggest the extraordi-
nary course of argument that is constructed upon
it. Il is not simply undertaking, but en-
tirely conception. Nevertheless, 1t Is com
po.ed of facts which have been common property
for ages All the credit that is due to this effort is
the collection and arrangement Of these facts so as
10 bring them to bear such result, which, OF
course, must, in the first place, have been con
ceiyed The argument, indeed, is so extraordinary,
that some persons. ON reading il, though disposed
10 respect the author have paused to consider whe-
asr IL can possibly be 40 The principle and the ar