Richmond daily times. [volume] (Richmond [Va.]) 1850-1853, 1851-10-20

For THE TINES
1T,ssrs Editors II was formerly of the opinion
that the tariff had an effect upon prices. but read
inc the following in Vethake's Political Economy,
began to have my doubts upon the subject Vethake
says, page 42that the smaller the supply of an artl-
Gle is the higher the price will be. Again he says,
page lSShat when the price rises. an importation
from abroad OF the commodity VIII follow. NOV,
raising the tariff dminlshes the supply, consequently
it raises the price. But if raising the ptces mas a
tendencyto increase the Importation how IS me nome
and b hat t tb M
riff is raised. IT Importation Is promoted, the opJect
had IN view is defeated.
write these lines for information. BY reconcllng,
if pessibe,the passages referred to, and rreconcl
liable informing me of the fact, you will confer ia
vor upon me that shall not fail to appreciate
AN INQUIRER AFTER TRUTH
Answer.-There is no subject, in our opinion,
SO much misunderstood as the operation of duties
on foreign importations. The misunderstanding
arises from failure to disc rimnate justly, so as
to reach the truth on the medium ground between
opposing errors.
Two extreme propositions may, we think, be as
serted without fear of contradiction, namely lst.
An absolute prohibition upon foreign manutac-
lures would increase prices by combining the sup
ply to the homo production and 2ndly. An abso-
Lutte prohibition upon manufacturing at home
would tend to increase prices by combining the
supply to foreign importations. The problem,
then, is plainly this: what mean between an abb
solute prohbition upon foreign mportations and
an absolute prohibition upon home manufactures
will ensure the lowest average prices? We an
swer such scale of duties as will prohibit neither,
but will maintain healthy competition between
them The home manufacturer should desire
nothing more than the ability to offer his goods IN
the market on a footing Of steady, untiuctuatlng
equality with foreign goods, and this equality Is
to be determined by the relative cheapness OF
production, and command of capital, IN this coun"
try and abroad. Il is not high prices that he wants
Gas "As Inquirer" seems tosuppose0 but simply
remuneratlng prices, which the foreign manufac-
turer cannot underbid. His profit is better if it
is derived from large business at fair and steady
prices, than from small business at high prices
All this seems perfectly obvious but the next
step in the inquiry is, what sort of duties will
ensure this healthy competition and these stead
dy, fair prices We answer again, with conf
dence, moderate specific duties, which shall notbe
high enough to prohibit foreign imports, and yet
shall be high enough to secure the home manu-
facturer against whatever constant advantage the
foreigner may possess, and particularly against
those sudden and disastrous fluctuations in trade
which so frequently cause large surplus of man
ulactures to gather in foreign hands, and to be
thrown upon our markets to be sold at any price.
The specific duty has this essential difference
from the dd ua1orem 1t makes it the interest of
the home producer to sell steadily at the lowest
remuneratng prices; for then his advantage over
the importer is enhanced whereas, with an ad
ralorem duty, the lower the price the less the pro-
lection For instance, with q specific duty of 5
cents yard on cotton cloth, the American man
facturer will find it more to his interest to sell
such cloth, he can afford it, at 10 cents than Is,
or at cents than 10. Why? Because, at Is
cents, the duty is only third of the price at 10
cents, it is one half, at cents, it is fve-sixths
of the price. But let there be an ad ualorem duty
of thirty three and third per cent on the same
cloth. At the price of Is cents, the duty, or
amount of protection, is 5 cents at 10 cents,
three and third cents aud at cents, it is
cents
What is the necessary operation of the two
kinds of duty, at period like the present, when
large foreign surplus is ready to be thrown into
our ports at very low prices Why, precisely,
what we are every day seeing; the home manu-
facturer losing his protection as the price falls,
S compelled to give up his business And what
must follow that? The foreign manufacturer
having swept away American competition, the
permanent supply will be diminished +; and, &C.
cording to the we'll known law of trade, prices
must rise. This rise will probably stimulate men
&c Il. r
the teaching of experience, to embark upon other
adventures. Another ebb of surplus goods from
abroad will be flung upon our shores, and the
same process of low prices at first, then failures
at home, then high prices, will ensue; and these
disastrous fluctuations will 60 on as long as the
I'D razorem system is adhered to.
This brief statement, of the principles which
should control our tariff policy. contains we think, |
a satisfactory solution of the difficulty of 'tAn In
quirer after truth" The true object of wise
protective policy is not, he takes for granted,
to raise prices, but to give the home manuac-
turer certain and fixed advantage in selling at
moderate prices. And the average result, demon
strably, is, to produce lower scale of prices in
the long rus, than that produced by the unsteady
operation OF al Ualorem tariff, The prices cur
rent of past years, which have been carefully in
Vestigaled with reference to this very question,
sustain entirely this general deduction and, if
we recollect rightly, the fact was fairly admitted
by the celebrated free-trade Convention that met
at Philadelphia some fifteen or twenty years ago
Unfair Opposition.
The course of the Washirgt0a Union towards
the President is marked by disingenuousness
really unworthy of the position of chat journal
The editor daily assails Mr. Fillmore as an Abo-