The Daily state journal. [volume] (Alexandria, Va.) 1868-1874, 1872-08-14
EFFECT OF TARIFF REDUCTIONS.

The free-trade theorists have had an un-
expected nut to crack in the effect produced
by the recent tariff reductions, from which
it has puzzled them greatly to extract any
satisfying meat. Contrary to all their
expectations and predictions, the effect of
the reduction has been to advance the price
of the foreign articles from which the tariff
has been lifted, to the extent of the entire
tariff reduction, and in some instances to a
still greater extent. 1t is the same old
story, repeating itself a hundred times
over in all experimental efforts of the kind,
when one nation thinks to monopolize all
the advantages of free-trade by the mere
trick Of legislation. '.a
The tariff reduction, when it first went
into operation, caused for time, as might
have been expected, general dulness in
trade, buyers holding off in expectation of
lower prices. But" says the New York
Economist, Sin one grand essential they
were doomed to disappointment. They
did not find that prices We're reduced to the
extent of the tariff reductions, and for
very sufficient reason. The advance in
gold very nearly covered the tariff reduc-
tons, and rendered it impossible for i'm
porterS to make the expected concessions.
Then, again, the general advance in prices
Of commodities in Europe compelled I'M
porters to pay full rates for goods, and in
many cases the usual discounts were with
held" . ,sa. ..r
But the Economist might have gone
further and said what will be found gener-
ally if not invariably true under like cir
cumstances, that if one cause is not suffici-
emily operative in sending up the prices of
goods on which tariff reduction is made,
another and more sufficient cause will be
found to intervene, so that foreign govern
ments after all will reap the lions share of
the reduction. This is generally true in
respect to all foreign productions, and uni
versally true where the foreign product is
oae largely controlled by the government
already seeking its monopoly. In the teeth
Of all practical results on this head, we
find the free-traders still riding their old
hobby, and strenuously insisting that there
has only been failure in this particular
instance, because Of some exceptional inau-
ences not generally operative in other and
similar cases.
When the duty on iron was reduced
from nine to seven dollars ton, we pre-
dicted a corresponding rise in the foreign
article as one of the legitimate results of
the reduction, showing or seeking to show,
that the foreign dealer and not the Ameri-
can consumer would reap the benefit of it.
The effect has been precisely as we pre-
dicted, the price of iron commencing to in
crease at once, and continuing steadily to
increase against all the most hopeful expec-
tations of the free-trade theorists.
According to the free traders's ideas, the
price Of iron should have been reduced to
the American consumer, just two dollars
ton by reason of the tariff reduction but
instead of that it rapidly increased to
point beyond the reduction, and is still in
creasing. His economic law of reduction
has proved to be most expensive one to the
entire country for iron enters more uni
yersally into consumption with us than
any other commodity that can be named,
and the rise of two dollars ton, provoked
by the tariff reduction, will take from us
not less than ten millions of dollars this
year, to 60 into the pockets of the foreign
producer--aH as the result of these free
trade .fallacieS.
And the same effect has been seen in the
case of sugars. The price has not only
stubbornly refused to fall in harmony with
the free-trade theory, hut has actually adj
yanced. But the free-trader has his usual