The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1870-07-23
AMERICAN LABOR.
HE BUTTER, POTATO, AND GRAIN MoNoP
OLISTS.


THE BUTTER, POTATO, AND GRAIN MoNOP-
oLIsTs.
TIE Chicdgo Tribune says:
"fut Congress still maintains taxes, direct
and indirect, to the amount of not less than
kS0O.O00,000 of this enormous tax, less than
one-balf is received by the government The
remsnder is distributed to private individuals
and classes who control legislation"
This statement, 50 frequently reiterated
by The free traders, depends for its truth
on Tie theory that wherever we import any
part of our supply of an article, the price
Of a ] we produce, as well as Of all we
impArt, is raised by the amount of the
duty Now if this be true, the estimate
Of 540O,O00,000 Of taxes paid to private
par Yes is entirely too small. Indeed, the
amtunt of taxes paid to private parties on
this basis would exceed the whole annual
production of our industries.
For instance, we last year imported g.
| 785, 093 TBS. of butter, under a tariff duty
of cents tb. which pays the revenue
S267, 403.75. This, on the free trade the
DRY, adds four cents a pound to the price
Of all the butter consumed in the United
Stctes, because the home price is fixed by
the foreign. In 1860 we produced $780,
500, S54 TBS. Of butter and supposing our
prd luction to have increased by go per
ce1l !, which is our average increase in
9th Pr products, we are now producing 1885,
25b, 1897 TBS. Now, although this is one
hundred times as much as we import, yet
as our production Of coal is forty times as
much as we import, and Of lumber twenty
four times, and of pig-irOn twenty-four
times, it will be seen that the same principle
applies to all, viz. that the importation is
Insignificant as a means of supply, oom-
pared with the domestic production. But
says the Chicago Tribune, that makes no
difference. The greater the amount Of the
domestic supply, the more certainly its pro-
dn ers have their price increased by the
amount of the duty. Assuming this to be
trae, butter pays four cents extra per 10. to
thu butter makers on account of the tariff,
beng tax on the consumers of butter,
and bunting to 500, 454,275.88 annually.
Again, we imported 100, 900 bushels of
potatoes, which paid duty of 25 cents per
buahel, or $40, 458.81. Now, according to
the Tribune, the potato monopolists'' had
the price of their whole domestic product
enhanced by rs cents bushel. Our do
nestle product in 1860 was l52 100000
bu.laels, or in 1870, say 243, 100000
bushels, the consumers of which must have
paid for them S6O, $500, 900 more than they
WI uld have been compelled to pay but for
til tariff. Fer there can be no deviation
frdm the rule that the foreign price, with
dHy added, fixes the price of the home pro
ducts.
Again, we imported grains. -four and
meal under an average duty Of Is cents per
blishel, upon which we collected a total
revenue of $954,616.46 Our domestic
production Of those articles amounted in
l $50 TO about z, 2S8, 270, $50 bushels, which
if increased by the average rate Of duty on
the amount imported, would have levied a
tax on the consumers in favor of the ''grain
mOnopolists" Of $343, 29O, 627.50 or about
ec lal to our whole national taxation. On
th Sc three articles, butter, potatoes and
gr inns, the consumers would be paying the
ppducerS tax, over and above the cost
Of production, amounting to $433, 544, 1902
I SO the Tribune is too modest by half 1t
Aght with the same ease assume aud state
that the people are taxed by all the grind
ing monopolies combined at least five thou
sand millions Of dollars, leaving them abso-
lutely not a crust nor bone for theiT
own consumption.
Did it never CLEAN on the understand
ing Of the Chicago Tribune, that there
n ght be some defect or error in a theory
v Iich, when applied, results in sbch start
Ing conclusions 1t never tires Of ap-
FAying its solitary rule of craftsmanship to
TAg iron, wool, salt, coal and lumber But
never remembers to apply it to grain,
potatoes and buffers.
Now, if it be false in regard to one, it
must to the other 1t does not do to say
tat grain, potatoes and butter are articles
cf expectation as well as ofimport So are
pig iron wool, salt and lumber VIII the
Tribune accept the doctrine that our farm
els a, collecting sl33 OOO, 900 of private
tex" on their grain, butter and potatoes,
over and above the sum paid the government
oA the portion imported Of these articles ?
And if not, will it back down from the
sition that the American manufacturers of
pig iron, salt, lumber and coal collect tax
on their whole product, equal to the amount
o the duty per ton? 1t must do one or
IL 4 other, to show faith in its own principle
VOn the contrary, if our law of prices is
til true one, viz. /: that the price Of any
aIAicle depends on the ratio of the whole
supply to the whole demand, and TIE foreign
price only contributes to regulate the
domestic price in the proportion that the
foreign supply bears to the domestic supply
then at what conclusion do we arrive Our
importation Of coal, being adequate to sup
ply only one fortieth part of our demand,
attributes one part in forty towards fixing
t price. If there is a fall or rise Of 40
9 ,nts ton in coal, one cent per ton of the
f9Il or rise may be credited to Nova Scotia.