The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1870-08-06
AMERICAN LABOR.
ADAM SMITH, book iv., chap. II, P. 203
L. Il IL

ADAM SMITH, book iv., chap. II, p. 203,
If the Wealth of Nations, says:
Though there seem, however, 70 be two cases
in which It Vil generally be advantageous to
lay some burden upon foreign for the encour-
arement Of domestic industry.
The first is when some particular sort OF in
dustry is necessary for the defence Of the eoun-
The second case is when some tax is imposed
Al home upon the produce Of domestic indus ~.
80 there are two others in which it may
sometimes be- a matter Of deliberatiDn:
l When some foreign nation restraints by
HIGH duties or prohibitions the importation of
some OF our manuf ,ctures into their country
q when particular manufactures, BY means
az high duties Or prohibitions upon all foreign
goods which can come into competition with
hem have been SO far extended as to employ
great number OF hands. Were those high du
ties and prohibitions taken away all al once,
cheaper foreign goods of the same kind might
be incurred 50 fast into the home market to
deprive al at once many Thousands of our peo-
NE Of their ordinary employment aud means of
subsistence.
Applying these remarks Of the father Of
Political Economy, to our own industries,
we observe:
1llsJ. ull liz lAdhulcCAuiO VI
steel goods and wares Of all kinds, from the
rife to the needle that sews the soldiers
clothing, and also Of cottons, wOolens, and
machinery for making them, are essential to
the defence of the country from the enemy,
during war, and, far more, from our com
petitors 10 industry, during peace.
Secondly. AS we are imposing taxes at
home, upon the produce of our domestic in
dustry national, state, county, and city
taxes inclu ed to an aggregate not less
than $500 coo, 900 year, it falls quite
within Adam Smith requirement that we
should impose some burden upon foreign
for the benefit Of domestic industry"
Thirdly. England lays a tax of three
hundred per cent, on the tobacco which we
manufacture" out Of our soil, sunlight, AN
muscle, and export to her. If we should
send with every ship load Of tobacco, enough
more tobacco to pay the duty, it would re-
quire three ships to carry the duty to the
British government, for one that carries to-
bacco to the people. A large share Of this
tax is really borne by American producers
For the price Of luxury depends as large
ly on what the consumer il willing to pay, as
on It's cost. The consumer would pay
more to tie American producer, if the gov
eminent did not withdraw three fourths of
what he is willing to pay,in tax. Moreover
the tax diminishes the ability Of the consul
mer to buy tobacco, and so checks the pow
er Of the pro ucer to sell it. This, some
may argue, is a benefit to the void That
is a matter of humanitarianism, with which
we have nothing to do. In fact, however,
the effect Of tax upon tobacco, liquors,
and like articles on which very high taxes
are usually laid, on grounds Of morality, is
not 50 much 10 lessen the apparent guam
tity consumed, as to deteriorate the quality /
by leading to the use Of fraudulent substi
tutes. The best tobacco, as raised, is Amer
lean, and hence the English taxes which
rest on American tobacco, tend to encourage
the use of the inferior substitutes produced
elsewhere, thus lessenirg the importation
rom America into England
Finally, we have a vast manufacturing