, 1869-12-23
ARTIFICIAL sr1Mu1Anrs 10 INDUSTRY,

that it is to the advantage of the country to
Production by Legislation, nud
thereby create extraordinary competition,
aod thus eventually reduce prices. This
theory has cost shs count1ya vast amount Of
prodtless taxntion, great waste Of capital
end i1'Sr, and has, in .tact, retarded ths
healthy and natural increase Of tho pasticu-
Lar manufactures or other productions
which it has attempted to foster. The FIRST
requisite for successful industry is freedom.
Artificial restraints and artificial stinulants
are alike deleterious, and that s3stkm is
always the best in its results which
permits prices to regulate themselves in
obedience to natural. laws Prices can1ot
always be controlled by tariffs. High tar
ills cannot produce high prices where the
supply Of the commodity is largely il oacess
Of the demand. and FREQ trade will not low
er prices where the demand for consump-
tion exceeds The supply, Of this We bavo
instances in the caso OF American wool and
wheat
Prices rise because Of increased demand,
which is always an indication Of the inn
provement In the ability Of the people to
purchase !; or because Of diminished sup
ply, which signifies scarcity and privation.
Prices fall because Of an increase in the
supply, or reduction in the demand.
Abundance Of articles needed for human
comfort is always blessing to tho comuu-
nifty !; hut reduction in demand, implying
m inability to purchase. meana poverty.
' Protection, ".as it is called, is intended to
inczense The price by diminishing tho sup.
ply. It generally restricts tho demand, and
to that extent defeats itself. Men soon
learn to do without things which
they cannot afford to have. High
prices caused by scarcity, whether caused
naturally or aztifcially, signify national
poverty; while the same high prices,
resulting from an increased lcmand-that
is, activity Of tEade-imp'y national pros
pcsity, which is only another nnme for the
ability of the people to purchase.
The application Of this principle to exist
ing facts is admirably mnde by Commits
sioaez Wells in his recent report. The all
surdity Ct attempting to rcduce prices
through artificial competition is shown in
the practical workings Of large number
af "protected trades. The f.st effect Of
an attempt to stimulate domestic produc-
ion br duty on the foreign compe t,tive
s1ticle Is to enhance the price to the con-
sumes, *hich nffords lasge and sudden
profits to all these engaged in the pro-
ductior, and especially to those having
large stocks On hand But this does not IN
crease the demand for the article. On tho
contrary, being an additional ta1, it lessons
the ability Of the public to purchase. The
large profits tempt other persons TO cugago
III the same businesa; skilled Labor and
capital being both in demand, they hAye to
he obtained at advanced rates, and the new
CONCERNS, contending against ali these dis
advantages-high interest, ine1perience Of
detail, and increase Of wages-are forced
to compete with their mora firmly estab-
lished rivals, and are compelled to resort to
all manner Of e1pedlents, ending in de-
notalizaticn Of the business, under which
the younger ard weaker give way, with
less CT capital, time. labor, and matesial.
This Is the inevitable result Of attempts 70
lover prices by competition produced arti-
ficislly.
Let us look At two instances cited by aIr.
Wells: That CT wool, when the men
who rushed into sheep-yais,ng under
protective tariff had to kill 81 per cont
Of their stock, md even now are selling
wool at prices below the average rate Of tho
previous twenty-five years. That il . case
Of increased production md competition,
after taEiug out Of the hands of the people
the means to buy clothing, The other L.
lustradon is that od paper. In 1868, the
supply Of PAPER Was unequal to the demand.
Tho price Of paper advanced 100 per cent,
and the profits were eno1mous- In 1864.
T3, &C, capital and labor rushed into tho
production ofpaper, and mills sprung up on
every stream in the country. There never
was 90 much paper produced in the same
length Of time, and the result was that
prices fell, until at last they are lower than
they were before the war, and the business
is in an extremely depressed condition II
is not for the interest Of the community
that any legitimate business should be pros
trated, as that Of the paper manufacturers
has been- Many have abandoned their
mills. Others have sold out 10 older estab-
hshm.nts at great loss. The waste Of
capital and labor is national loss The ar
thcial stimulus IN thia case wzs the war,
and the consequent demand fornewspapers !;
but its effects and operation were the same
rs any other artificial stimnlus-h protective
tariff, for instance.
The history Of mankind Is u continuous
record Of the fact That industry thrivea
snd people are prosperous to tho extent
that they are freq OF legislative inter.
ference rra res!,einte: ~hen n-ic.s ri l.tor