New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1869-02-20
PROTECTION.
HENRY C. CAREY ON Mr.. WELLss REPORT
LETTER SIXTH.

Question, ind you stauDg .
Tba. the demand for the last few years has been fully
eona TO or has tended 10 exceed supply which IN turn
resulted constantly augmenIed prices Ine price iS
Albany NewYork, market having advanced since lSoi'
about 100 per cent" .
The demand" having thus exceeded the supply"
the price, as we see has greatly risen" The remedy
FOR this would seem TO be very simple Let us return
once again 10 the Revenue tariff policy OF the period from
1876 to 1860 Let witness again that condition OF
exhaustion which marked its closing years ana those o
its free trade predecessor in ls42-years IN Won VIC
built few houses; in which chips were runous 10 tner
owners IN which railroad stock failed to eomn"uu -
market even 40 per Of its costs in which iai
eyerywhere burlened with heavy mortgages III "iI.
tina little farmers OF the West paid interest at III! %
between 20 ard 40 per cent per annum ~ W.. 10
and furnaces were closed, ana mines =.
which laborers and mechanics by buhureuS VI 49,
were wholly without employment; IN WHICH, % ~ t'
agents wore sent abroad beg In Europe Ior loas anu
0nay I'm which the Treasury receipts exhlDl moro th
600 as the proceeds of loans and treasury noes
thus bearing testimony TO constantly deeinn8 power
m contribute TO the public revenues let u.s. as say re-
turn to the exhaustion of 1872 to that OF $780, ana We
h ,ce AGAIN see the supply Of lumber and OF labor
exceeding the demand the prices Of both becoming 50
aduced that while the lumberman shall find dlfncui1
"a Obtain the food required by his family ana hiSo'
houses shall remain unoccupied ana uhprou"0'o "
oeir owners because of the inability OF miners nechan
~ aud aborers 10 pay their little modieum OF rente
vo, know as well as l. find place in your report
WHIT Because like Of those presented in regard 10
iron they did not suit your purpose Had all been gwen
Won would have found yourself compelled to an exhpi'
ton OF harmonic Interests resulting nom protecnon'
scb as nds no parallel any other portion OF the earth
Giving the few you have selected you have done your
utmost toward persuadng your felowctizens to believe
That the protective system presents to view universal ds
,ord high wages beng injurious to the capitalist on the
me hand Of rents being ruinous to the Ia
porer on the other ...
The great demand for houses having caused increased
demand for materials supply Of foreign lumber" is
as you tell u.s. absolutely essential TO meet the require
fepts Of the country" and thence result two things
which as you assure them follow as matter OF neces
Jity," to wit:
"Firs That whatever duty is imposed on the foreign
rodnct paid wholly the consumer, ana therefore
nuivnent so much direct tax and secondly that the
price of the imported article REGULATES ana ess t s
that norton of the latter which exposed TO the compe
ton Of the foreign supply nnd Pg tSe ceSmstsnce
Enhances The price of foreign lumber be tax or some
f be domgsS product to the same extent Or in other
words tax the importation OF foreign lumber 9e-
comes also tax upon the consumers OF the wnOe 90
nestle product; with this essential difference that IN the
one case the proceeds Of the tax result to the 6ensnt OF
Che national teasurw and the other to the benefit e1
cnsivey Of private interests
The answer to all this is found in the simple expression
that the man who must 90 to market must pay the cost
of getting there be it in what form 1t may whether that
farmer close to market obtains the full money value OF
his products his competitor at distance OF TO- co. 80 or
100 miles from market selling at prices less by 20 49, or
50 per cent as the commodities they have raised need
the application Of more less power to the work OF
transportation Give to these latter turnpike roads and
dlmnution Of taxation" exhibits itself in the increased
money value Of both land and labor. Give them rail-
roads and the effect Of further dmnuton of taxation"
makes itself manifest in duplication Of the price Of
land. Bring the market home by placing the consumer
at their Sides and at there arises such demand for
the minor produce Of the farm that land now sells readily
for dollars where before st could command but dimes
Time and again in that Revenue-Tarf period In which
were so cy sown the seeds Of the late Rebellion the
farmer OF Iowa had been required to make his election
between using his fuel selling 1t at a dime per
bushel. At Manchester, that bushel would command
probably. tpeny yards Of cotton cloth and yet when
that cloth reached Iowa SINGLE yard OF 1t would com
mand in exchange another
OF the farmers power OF purchase having persisted
where on the road Who, hen, paid the tax OF trans
portaton Was 1t not the farmers Did he not to his
heavy cost then learn know that the man who must
go to market must pay the cost Of getting therei AS
Rlredly no did. So, too, does the Canadian
lumberman, sad experience having taught
him that when our furnaces had been
closed and when houses had almost ceased 10 be built
the supply OF his commodity had far exceeded the
demand free his neghbors across the line from all
dependence Canadian forests Rejoicing now in the
demand resulting from projection OF our COT
ton. and other industries aud knowing well that abo
lion of duty would be followed by reduction Of price,
me seeks TO retain for himself his share Of the millions
that are contributed toOur public treasury and TO
aid him this effort s that you venture the assurance
that prices here are fixed by those at which obtain
the trivial quantity which passes across our frontiers
Close the furnaces and mills, and stop the building OF
houses and 1t viii soon be found that prices deter
mined here and not the little markets of Toronto Of
Montreal.
In confirmation Of the views thus expressed, now pre-
sent for yourIconsdeaon the following passages from
reports by the Collectors Of Customs at two Of the
"oGDENsBuRG, Aug. 3, 1868
THE supply and demand In the United States Is so
much larger than IN Canada that impOrtatiOns from
there affect markets but little. The following art-
sufficient quantities affect markets: Butter cheese
sggs wheat rye. oats, barley, and beef cattle Our i'm
our productions aud with expectations that we can
be affected but little BY the supply from Canada"
CLEVELAND Oct 20, 1853.
"The chief articles OF importation at this port arc um
Der and barley The lumber market here entirely
troIled Dy me saginaw market, ana Canadian markets
great extent controlled by American markets, and
the result e that the Canadian producer has TO conform
hls prices to market figures here; this virtually
makes tho Canadian pay the duties foreign merchan
TO enable the importer to pay the duties and s not
ovorshoot the American market As the demand in
compelled look 70 foreign market for sale Of his mer,
ehanase ana Tor nus reason he must necessarily regu
buying always MAKES allowance for the duties and the
reality pays the duty himself" "
That each OF Jupers satellites exercises over the
movements OF Jupiter himself little influence is en-
trey undoubted but 1t is very slight were the
smaller body stricken from existence careful observation
would be required for enabling the
fact that change had really occurred So very nearly
there Canada exercising scarcely influence th'
great internal movements Of the Union than is exercised
the great planet by its Insignificant dependant.