The Washington union. [volume] (City of Washington [D.C.]) 1857-1859, 1858-12-05
THE PROTECTIVE SYSTEM IN A FINANCIAL POINT
OF VIEW.

OF VIEW.
There are not many persons who have studied the
Protective System in all it's bearings upon the manufac-
turing industry Of the country. 1t may be admitted
that high duties promote profits amongst those ell
gagged in the home production OF the article taxed.
All mpost laws operate, of course in favor of the
manufacturer because they cut off less for
eign competition and give the manufacturer the
monopoly of the home market. But there is such
thing as administering too many stimulants, pro-
ducing undue excitement, where reasonable energy
alone is required. Tariff laws merely affect dstri
button between capital and labor. They protect
the former at the expense Of the latter. They
say to the agriculturaiist, " You must consent to
buy your goods of American manufacturers at
higher rates than you could obtain them of
importers and dealers in like articles made
abroad" Thus revenue tariff is levied upon the
producer II it is a high tariff, the advantages to
the manufacturer SO great that enterprising
at once invest all their capital and incur in addition
large debts in the business Thus the legislation of
the country operates as a powerful stimulsnt the
work is vastly overdone depression follows, not
only to entail bankruptcy upon the persons i'm
,nediately involved, but ruin upon thousands of
iaborers who have been employed. In this way
it often happens that the price of goods is reduced
far below thoir real value, and perhaps below the
cost at which they could be imported from abroad.
The inevitable eject of high protective tariffs u.s. in
spite Of eli disastrous experience to derange the
general industry of the country. They stimulate into
existence domestic competition even more depres-
sing for time than the foreign They offer reward
to speculative industry, based upon the advantages
they are permitted to enjoy over those engaged in
agricultural and other pursuits, which brings into
the field large class of adventurous men, who vain
ly imagine that they thus perpetually endowed
with peculiar benefits, which more than compensate
them for want of capital In fact, it is common to
treat the advantages to arise under the law as sub
Stituts for capital itself.
The evils of the Protective System are thus
aced directly to the manufacturers themselves
~ the theory Of the law, the agricultural and COM
mercal portion of the community are taxed for the
purpose of comforting benefits upon them. And such
is its ultimate effect, though in reaching it all expe
renee teaches that those who intended to be
the special benefcares required first TO meet
domestic competition which deprives them, for the
time being, Of the advantages they would have other
wise enjoyed. saf.tsr. aa e a..s
Ia this view, it is extremely doubtful whether the
advocates Of protection will be able to command the
solid support of the manufacturers of the country
in their proposed campaign for a high tariff Per-
haps no other subject has been discussed SO much
and in 80 proftless way the question of protec-
ton. As long az it was q part of the creed Of
powerful party, it was able to command the cordial
and, we may add, the almost fanatical zeal of the
manufacturers But is not now saving ordinance.
II is an affair of business problem in political
economy and a vast majority Of the American PEG.
pile are prepared to approach its discussion with
eyes wide open to its evils and its benefits II is
not any more democratic wing question: re-
publican or an abolition question. The sceptre has
departed from the old wing organization whose ban
ners were covered all over with devices promising
special benefits to manufacturers. The idea has
been exploded that any branch of American la
bor has right to claim peculiar advantages over
Others in the legislation of Congress and we may
add the conviction is next to universal that bust
ness which can be sustained only by the operation of