The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1853-01-12

III the yeui io7 n which closed the operation OF
the high tart of lsl2, the value 81 rolled iron
imported vas sl,l27, 4lS-averaging al per
ton. p.,y going back little further we can find
q better illustration of the strength Of the posi-
ton We intend assuming. In 1889, when the
compromise tariff Of 1882 had been in operation
seven years, and the per cent Of duties had be-
come very much reduced, the value of rolled
iron imported was s,,lsl ,lso-averaging $50
per ton-a higher price than ruled at any time
during the operation Of the high protective tariff
Of 1912. For seven years previous to 1889,
the iron manufacturing interest of the coun-
try had been highly protected. 1t is true,
under the act Of 1882 steady but gradual
reduction was going Oh in the rate of duties;
but the manufacturers Of this country,
for seven years, had everything in their
favor, SO far as an inflated paper currency
and high duties were concerned; notwithstand-
ing which the quantity Of rolled iron imported
in 1889 was greater. and the average price
higher than in any previous year. This shows
how much advantage to the great consuming
classes of the country. protection to this or any
other manufacturing interest is 1t is possible
that twenty or thirty years continued protec-
ton might build up the iron or any other inter-
est so that it could successfully compete with
foreigners; but we are not. or rather have not
been able to do so. We have such a variety Of
interest to promote, such an immense extent OF
country to improve SO much necessity exists
for opening in the shortest time all the arteries
Of Ia Oh or,:d 1u incrnociru nnpu1 afi0n
to protect and bind together. such extremes to
connect. such unbounded. unlimited resources
to deveope that it has been. and still is. utterly
out of the question to wait the slow movement
of those who require so much aid and support
from the government in the shape of prohibitory
duties.
Where would our great railroad system have
been had we waited for our own manufacturers
to supply tie iron at their own prices? And
where would prices have been had there been
such duty imposed as would have prohibited the
Importation of a foreign article? The first would
not have been developed to one-quarter the ex-
tent it is at this moment. prices for the iron
would have ruled SO high that it would have
required at least fifty per cent more capital to
have built the roads. By checking the extern
sion of railroads and thereby preventing the
opening Of new channels of commerce. the pro-
gress of the country would have been materially
retarded. and all the most important interests
of the masses sacrifced-and for what? Merely
for the purpose Of filing the pockets Of compare
lively limited number of iron manufacturers.
faster than smaller profits would The manu-
featuring interest of this country. generally is
fully impressed with the belief that the only
true policy for the government to pursue, is to
sacrifice every other interest for that.
Within the past four years we have paid
s2446I us to foreigners. for rolled iron. We
will admit that large per cent Of this aggre-
gate has been in railroad iron. imported for
roads constructed within that period This iron
has been purchased at prices varying from
wenty-nine to forty-fve dollars per ton and q
good part Of it has been paid for in railroad
bonds and other first class securities Previous
to the reduction of the tariff in 1916. our rail-
road companies were paying from sixty to
eighty dollars per ton for railroad iron, both at
home and abroad ; and at that time the railroad
movement in the United States was very mode
rate compared with what it has been since. At
that time the railroad mania in Great Britain
and throughout Europe was at it's height, and
the market prices for iron had reached very
high points. This enabled our manufacturers to
extort immense rates from companies then con-
structing roads here. Instead of turning out
iron at fair rcmunerating prices they took ad-
vantage of the limited supply from England
caused by the immense home demand and con-
sumption, and realized enormous profits This
is undoubtedly all right and proper in the way
of business; and viewed in that light. not word
of complaint can be uttered. But let us look at
the result. Protection at home. demands abroad
for consumption far in advance of the sup
ply with domestic demand greater than
our manufacturers could meet, enabled them
TO realize profits in o year or two. sufficient
to return the full capital employed. Then
it was all sunshine. Had there been no
protection under the tariff. their profits
would have still been very great. There was
harvest ready to be gathered; and the iron man
facturers gathered it. In the course Of time. the
railroad mania in Great Britain and on the Con-
tiAehl cApioucu' lAousduus eHbaStu III THAT
speculation were ruined. The extensive iron
manufacturing establishments created by the
demand for iron rails became idle and large
portion of the immense amount of capital invest
ed in them became unproductive. For time,
all was chaos and confusion. The excitement
had been so intense and extended. 80 many had
become SO deeply involved. that the effect was
almost universal and disastrous. A long period
Of stagnation followed. Many Of the iron manu-
featuring establishments continued operations
upon more limited scale, and prices Of iron
became reduced to the lowest points. The de-
mand almost entirely ceased. and nothing but
the necessity Of keeping in motion, TO make the
sacrifice as light as possible kept any of them
going The effect Of this was to place prices IN