New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1870-07-06
THE QUESTION STATED.

UNE the favor of reading his volume Gt ia a
small one) designed to elucidate the science Of
Political Economy, will do him the justice TO
say that he has at least fairly stated the lead
ing positions he combats, and often in tho
most forcible terms that their proponents and
champions have been able to command. lie
has certainly tried TO meet them on their
chosen ground-to show from Whdt be dissents,
and why. That his positions are unsound and
his arguments weak, every Free-Tradcr is
bound to believe; but even they will hardly
say that he has not sought them and met them
on ground Of their own choosing.
We ask the candid readers attention to one
more citation from Prof. Bowen's new "Ameri-
"can Political Economy and we ask that
reader to Judge whether Prof. Bowen does not
also meet fairly and squarely the positions
he cOntrOverts. Hear him:
"The advocates for Free Trade have always insisted
that must buy merchandise OF England, not only to
induce but to enable England 10 buy merchandso
Of that must buy Of any country In order to sell
10 her. and must buy much SELL But II Is not 80
1t is not necessary that should take enough Of Engsh
manufactured goods TO pay for all the cotton, tobacco
and wheat which sell to England. England is able.
though Of she is not very willing, 10 pay tho
balance In tea from China, coffee from Brazil hemp from
Russia whatever other article from whatever other
country 1T TO require. We compel her To pay
us in whatever commodities may select for the art
ces which sell TO England, cotton, tobacco, and
wheat are Of prime necessity her, and most Of them
she cannot obtain elsewhere As our exports must pay
for our Imports the only point 10 be considered H. hos
IRE can dispose Of exports 10 most ddranage on obdi"
for them the largest return Of The imports.
"The 10 OF domestic products H. the labor
that is expended upon their production But the cost 10
US Of oregn products is the labor which has been
expended upon their production, but he tdtor Uhte We
epend upon the articles hat are 0ren IN eTch0hgs
for those products.
'The advantage OF interchange Of commodities be-
tween nations says Mr. Mil Consists simply and
solely i'm thisthat il enables each 10 obtain with given
amount OF labor and capital, greater quantity OF all
commodities taken together This IL accomplsAes ny
enabling each, with quantity Of one commodity when
has it much labor and capital purchase guam
tty Of another commodity which, if produced at home,
| would have required labor and capital 20 a greater
amount To render the importation Of an article moro
advantageous than its production, 1t is not necessary
that the foreign country should be able to produce
with labor and capital than ourselves We may even
have positive advantage in its production; but II We
are 80 far favored by circumstances 20 have dH
greater positive advantage in tho production OF sons
other article which is in demand in the foreign country
we may be able to obtain greater return 70 our labor
and capital by employing Of 1t In producing the
article in which advantage is least but deyotng IL
all TO the production OF that in which our advantage
greatest and giving this 10 the foreign country III eA
change for the other 1t not difference In the dbso-
lute cost Of production, which determines the inter-
! change, but a If renee In the comparative cost
The inhabitants OF Barbados. for instance, favored
by their tropical climate and fertile soil, can raise pro-
visions cheaper than We can in the United States And
vet Barbados buys nearly all her provisions ron t'
| country Why is this sol Because though Barbados
has the advantage over US in the ability to raise pro-
visions cheapy she has a still greater advantage over
us her power to produce sugar and molasses IL she
has advantage Of quarter in raising proVlsons
she has an advantage Of onehaf in regard to products
exclusively tropical and is better for her TO employ
all her labor capital in that branch Of production IN
which her advantage greatest She thus by trad
ing with u.s. obtain breadstufs and meat at smaller
expense Of labor and capital than they cost ourselves IT.
for instance, barrel Of flour cost ten days labor in tho
United States and only eight days labor in Barbadoes
the people Of Barbados still protaby buy the Hour
from this country IL they pay for it with sugar
which them only sir days labor and tho people OF
this country proftably sell them the four buy
from them the sugar provided the If raised In tho
United States would cost eeCen days labor. This 10 q
striking example to show the benefit Of foreign trade 10
both the countries which parties to it, Tho limited
States receive sugar. which would have cost them eleven
DAYS labor by paying for IL with -four which costs them
| but ten days. Barbados receives flour, which would
have her eight days labor by paying for II with SUI
gar which costs her but six days II Barbados produced
both commodities with greater facility, but greater ia
]
| interchange.
"Now let us apply these principles to the trade be-
tween England and the United States. To simplify tho
matter we will take but article, -FOUR represent
ing all the commodities that America sells to England
and but one article clo representing all the goods
which England sells TO America. Suppose, on account
OF the respective advantages possessed by the two coun-
tries, that the production OF barrel OF flour IN En-
gland costs much labor and capital would suffice
for the manufacture Of ten yards of cloth; while In
America one barrel of flour DE produced for three
hfths Of ts in Engandthat Is, for much labor
and capital would in England, manufacture only sr
| yards OF cloth.
countries be established the two commodities will be
changed for each other at the rate both in England
! and America The price will be equazed between the
two countries; but at what point will II be equazed
Shall the English price be established in America, or
shall the American price be established in England Or
shall price intermediate between the two be estab-
lished Either OF these three suggestions is possible.
"The Engslman afford 10 give ter yards forit will
cost him OF labor and capital TO produce thu
| flour in his country, or for himself on the other
hand the American afford to sell the flour for sir
yards because this quantity Of CLOTH produced in his
own country would cost him than the flour. Sup
pose that by the hggng OF the market the price in both
countries fixed yards. The advantage OF the
trade is then shared between the two countries but Is
shared unequaly. America gains yard each bar
rel she receives yards OF cloth for the labor
which formerly produced but six; England gains three
yards each barrel for the flour costs her but
yards barrel. while it formerly cost her ten. We will
suppose that these rates America sells 100000 barrels
OF flour to England and receives in exchange Of course
100000 yards OF cloth The Demand each side be-
just sufficient To carry of the supply received ON the
other. SO long England wants only this amount OF
-four, and the United states only this quantity OF CLOTH
the Interchange will continue az this rate giving three
profit