The star of the north. [volume] (Bloomsburg, Pa.) 1849-1866, 1850-02-28
'N'IEM'B!''IER5,
PROTECTION.

There isian article in the February num-
Der OF Hunts Merchants Magazine, which
ough; to be procured and carefully read BY
those democratic doughJaees whol periodi,
cally disgracethemselves by oferingsostpro.
tectrye" resolutions and making high tariff
speeches in our State and National LegiJa.
lures. We commend it 10 the particular at
tention of Siuien Cameron and Henry
Church. e,tt a - se IS yl,s
The article alluded to is written by Genr.
c. t. James, of Rhode Island, who is largely,
Interested in the new cotton factory at Har.
risourg, and is a reply to the clamors of Mr.
Amos A. Lawrence, in a previous number of
the Magazine, for more protection to the
cotton manufactures Of the country. si#f
--AA--I----- :. - 49, 1. a.. =. = -.
four first rate mills, which, according to their
declared dividends, had earned little more
than 8 per cent on the aggregate capital for
eleven years past-and this was not enough.
more protection" was needed! Now there
are neutrality-suspicious. we might say there
are thousands of farmers in the Cumberland
valley, who work from morning till night, in
heat, cold, and rain, who 90 not cIear any,
thing like per cent. on their capital invest
ed. These hard-working men would bs
laughed at if they asked the government 10
protect them. V
But Dir. James, himself manufacturer
says the manufacturers make much higher
profits than they admit or their published
dividends show, and ho explains tho matter
in the following satisfactory way: ss-'--
GAS to dividends-what criterion do they
afford, by whichto Judge Of the amount of pro.'I
fits! None at all. A companyEmay .-.wield
a capital of $500, 900, and owe one half of ii.
They may earn $3.50, 900 in one year, or SO
per cent on the capital and, instead Of de-
claring dividend, take the profits 10 pay
the debts There arc great many compa-'
nies, one of them as wealthy and as success
ful as any in New England, which latter was
established in 1908, and the others since,
which have never declared a dividend but
all have made money. sAnd how with the
first-class Lowell companiesl Have they d.
vided all their profits? Or have they'reserv.
ed greater proportion from yeaIto year, to
bring up nominal capital TO real one, and
to build new and extensive cotton-mills as
most Of them have done? Mr.. Lawrence
has given us no lightlfrom the books on this
point. One company, to be sure, he tells
US, has made stock dividend this year of
25 per cent, which amounts 10 $500, ,000.-
i fhiS nIoncy has teort rxpondrd In Ifle erec-l
lion of a new cotton-mill. This amount and
more, was on hand last year; but, had Mr..
Lawrence's statement been made out of them.
we should have heard nothing of it. Is il.
not true, that vast amounts of profits from
Lowell mills have thus been reserved and
iqxasted, even within ten or FIVE years past,
,tot which not even stock dividends have
been declared? If so, what reliance can be
placed ONT MIR. Lawrence's columns of dc.
Haefed dividends, as to the amount of profits,
Who can tell by. Them whether the profits
have averaged 8 percent, 1s, %, ox.5o =
Some of these mills are reported, M 1s49,
"Ath WV tiouodhu AlUib .t0dH III
1s45, and so on, up to twelve thousand
more; yet they represent no increase of cap
ital stock. How is this, if the business has
been SO extendediby means of new subscrip-
tions
Besides the voluntary testimony of Mr..
James as to the profableness of American
cotton manufactures, under the existing tar
if, we have other strong evidence furnished
us in the fact that an English house has sent
out to Boston cargo of Ginghams made in
exact imitation of those manufactured at the
Lancaster Mills" in this country Even the
labels Of the American goods have been i'm
itated by the English manufacturer. This
shows tina, the Americans have, fairly beaten
out foreign competition in the article of
Ginghams, at least, reducing the Englishman
to The degrading necessity of cotntsJsiting in
order to get sale for his goods. Does ata-
riff that produces such results as these need
amendment t-Valley!Spirit.