Western Reserve chronicle. [volume] (Warren, Ohio) 1855-1921, 1870-05-11
THE FALLACY OF FREE TRADE.
Views on Finance and Manufacturing
Interests.

The following extracts, taken from a
letter addressed by an American located
in London, to a friend in the interior of
this state, are so appropos to the times,
that we make room for them. Abiding
to the frequent assertion of the Free Trade
theorists, that money is but merchandise,
the writer proceeds to give a practical
reason for keeping his money on deposit
at three per cent, instead of placing it
where he could obtain ten and twelve.
We commend the phase of the question
presented in the following extract to the
careful consideration of the advocater of
Free Trade. Practical men cannot fail
to see the force of arguments advanced.
Pittsburgh ReUiew.
this money were invested in iron
al twenty dollars per ton, and you told
me that your neighbors would give me
twenty-five dollars per ton over and
above the cost of transportation, duties,
&c, L would send them the iron, be-
cause l could not possibly sell the iron
at so great an advance. This is also an
other answer practical to your problem.
Taken together these answers practical
dissipate the fallacy that money, like
merchandise, will flow to where it COM
mands the highest rate. The above il
Illustrations, in large scale and measure,
are repeated every day in the gold from
the Pacific States, where interest is high,
first to New York, and thence to this
city (LOndon), where interest is low, and
in the outward flow of merchandise from
this city, where its price is low, to New
York, and thence to the Pacific States,
where its price is high. And they COM
pei us to inquire what other elements en-
ter into the value of money. They are
confidence, security, and the facility Of
quick n easy interchange found in the
great cities. fl loaned your neighbor
at II per cent. on mortgage, and he was
unable to repay me the principal on the
day of its maturity, L must wait his
convenience, or else, at considerable eX-
pense, sue out the mortgage. Here the
failure to pay at maturity seldom hap
pens, and is the exception to the rule.
Here, with money at less than 8 per
cent. on call, 1 can make as large inter-
ests annually as at home with II per
on mortgage. You ask why? 1
answer, through the vicissitudes of
money, and the ability of commanding
large sums at a moments notice. But do
not, l beg of you, understand that 1
settled down here as a mere money
lender-the meanest of all callings-I
hare not; but am only discussing this
question with you as a manufacturer.
This discussion makes it still more
evident that, as a manufacturer, there is
a discrimination against you, not only in
the value of labor but still more in the
value of money-against both OF which,
and especially the latter, if our Govern
ment will not protect you, the people
and country Of america must pay tribute
TO the people and governments Of Europe"
The writer punctures the arguments
advanced by Mr.. Wells, in a paragraph
we present entire:
at almost made my heart bleed TO
read the arguments, theories, and per-
figures of Mr.. Wells, the Treas
1ry Commissioner, for whom personally
entertain great respect, lauded here to
The echo. His proposition to reach Free
Trade-that NEUROLOGICAL haven where
we are told there are 10 financial ills,
md where is to be found wealth, serene,
Tranquil, an6triumphant ,-by a retrograde
movement in the rate of duties on inn
ports, is no less fallacious than it is with
out example. There is not in the history |
Of the world such a thing as Free Trade
in the literal sense which the delusive
dreamers of the school of MI. Wells
teach) maintained on the part of any
government of first rank and, what is
Of still more weight, no government of
first rank to-day in existence ever reach
ed even its present approach to Free
SdUe through high protective duties.
While it was to their interest to have
protection for their manufactures, they
had it and when by that means those
producers of wealth became strong, and
in part to compete with those of
other countries, protection yielded to
and even now the nations
most clamorous for universal Free Trade
RELY upon Free Trade IN theory, reciproc-
Ity IN FACT, and protection IN PRINCE
And shall we, a people not a hundred
years old, put forth our young arm to
the strength of giants who have
through training for a thousand years
prepared for the masterya Let us at
east learn something from precedent.
Let us too inquire whether that divine
MS own, especially for his own house,
he hath denied the faith, and is worse
han an infdel,' is not as applicable TO
he State as to the family.
Turkey and Egypt have almost practi-
al Free Trade, and behold them.
Must we too become such as they are?
The mechanic, the foreman, the super
lntendent, and the financial agent of
heir workshops, arsenals, and navy
Yards are Englishmen their very mon
~ is coined in Great Britain and sent
them, and in their quarrels with each
1ther, as you see, the British minister
caves his post at Constantinople TO set
lie them. And shall we also = in lorna
Dduperis to that power sue" J. NJ.