The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1870-06-28

| SclNeS euuGdNOItu W SAAO" NANS
prices of home labor and supplies remain
inflated by paper circulation oil over 1UU
millions, all The Government operations
to depress the price OF gold 70 pay Tor for
eipn Goods and duties work against home
Industry. But we have seen the paid or
cans of some OF the legislative monopo-
| lies continually crying that oil this forcing
down of gold is gain, and demanding
that the Secretary Of the Treasury shall
drop his whole pile Of gold on the market
to break it down.
Our contributor states that they pay for
labor now 81 so to 81 90, against 81 for
merly; and that on the previous wages
they could produce iron so as TO sell It at
SEQ. as well as they can now at $50 70 $3|2.
We suppose this Is true, and we are glad
to have the statement from an intelligent
manufacturer. 1t shows that 1t is not
prohibitory tariff that Is needed to protect
the IRON production, but a recovery from
the arrangement caused by the paper
money imitation; and that in this derange-
ment no protective duty can be etectual.
Taking this statement Ofthe disturbance
of wages, we find that home labor costs
from 30 TO 60 per cent more than when
all was on specie basis. The same ratio
will hold good in the cost Of general sup
piles and in the cost Of the workman's
living; so that he is no better OF than
before.
But while tue price Of labor and Of
general supplies and subsistence remains
| inflated by 4 paper currency Of over 700
millions, the gold premium has been
forced down by several unnatural causes,
so that gold is but ten or twelve per cent
above the paper money. II casts the EN-
ployer 80 per cent more in paper money
10 lire home labor; but it costs the mer-
chant but 12 per cent more in paper
money TO buy gold to pay for foreign labor
and for duties. Thus by this currency
arrangement the foreign labor gains AZ
per cent over the home labor. This is one
Of the things that neutalizes our high
protective tariff, so that in spite Of enor-
nous duties, many Of which are meant to
be prohibitory, we import enormously.
To present this fact in another form: the
paper dollar is at this rate worth but 62
cents to pay for home labor, and Is worth
50 cents 10 pay for foreign goods.
Ifthe CURRENCY initiation which raised
home prices go per cent raised also the
price Of gold at the same rate, the relative
situations of home and foreign labor
would continue the same; and the duties
being payable in gold, would give the
same rate Of protection. But the substi-
tuition Of bonds for gold TO pay foreign
balances, and Of legal tender notes TO pay
domestic debts, and the operations OF the
Treasury to break down the price ofgold,
have resulted in cheapening gold to pay
for foreign labor, while home prices re-
main inflated by the undiminished volume
Of paper money; and thus the foreign pro-
Queer is secured m advantage Of AZ per
cent according TO thee wages and state
ment Of our contributor over home la
Dor.
II is for this reason that We have held
that oil artificial means to depress the
price Of gold are injurious to home indus,
try. and that when the equalization OF
gold and paper money is to be brought
about, it must be done by means that will
appreciate the paper money instead OF de-
preciating gold, II the purchasing power
Of the paper dollar in wages and subsist-
ence were raised IN the same ratio as In
gold, then home manufacturers would
not be placed ut u disadvantage by the
paper money initiation, and would retain
all the advantage the tariff gives them.
But the very organs that some of these
most favored interests have fed have
bounded the Secretary Of the Treasury 10
break down the price of gold, and have
scofIed at our exhibit Of It's disastrous
working on American industry. This
only shows that service Of this kind, that
can be purchased, is either too Ignorant
or TOO insincere to be help.
Our contributor states that with prices
Us they were before the currency dcrange-
mcnt they could now produce iron 10 sell
ut $50 q ion, US well as they can now at
the present rate. This shows that cur
rency reform is what this industry needs
more than u prohibitory duty. He OBJ
iects to the term monopoly for the pig iron
interest. The pig iron interest shows q
thorough combination, and an employ
ment Of organs and Of agencies to intlu-
enCe legislation. 1t is able TO force upon
our legislation duty Of 50 a ton, on an
article whose transportation TO our shore
is alone protection OF % per cent. 1t
was able for years to keep the price Of pig
iron at from $40 to $50 and upward, to
the great oppression Of all the higher iron
manufacture, and Of all other industries,
and TO the forcing Of an inordinate impor-
tatiOn OF the higher forms Of irOn..
1t was enabled do this by means Of
the favoritism of the Government. We
hold that all this makes the conditions
that Justify the term monopoly. Itistruc
the price Oriron has declined. This is the
natural reaction Of proscriptive duties.
They first create q combination and high
prices, which prevent the growth Of the
Industries that consume the article, and
thus in due time the restricted COnSump-
ton results in over production, and the
favored interest cries out in distress. The
high price OF crude iron has restricted the
growth Of all the industries that consume
iron. Some it has crushed, such as
the shipbuilding for the foreign trade
Iron is u material in all other indus
tries, and in all labor.saving machinery.
Pig iron ut from $40 to $50 q ton means
high profits and restricted consumption,
and this surely brings over production.
Then it takes long time TO restore the
due growth OF the industries that con-
/ sumo iron Meantime the iron prOduc.
ton is depressed in spite Of high duties
That which is best1or the iron producer
Is a steady price ut q moderate profit,
which will allow the growth Of all other
industries, so rs TO multiply the cOnsump-
ton Of iron A government monopoly,
that gives enormous profits for few years,
is sure to result in corresponding deprcs.
sion. 1t dwarts the consumption Of iron,
and thus kills the goose for the sake of