, 1873-06-20

q
remarkable inso1enco and stupidity.
HOW PROTECTION DEFEATS 1rsELF.
The Question Is often asked by candid mon,
"How will you raiHo tho royonuo which wo now
neod without high dutiou, or such increase Of
imports as to completely destroy our manufao-
tures2 Is not tho tariff question practically
setted, for tho present at 1east by tho existence
OF heavy debt which compols ua to raiso largo
rovonuo ?' However absurd such inquiricB
6oem to thoso who hayo examined tho subject,
thoy aro the uatural expression Of doubts which
want Of information prompts in candid minda,
and should bo met by facta.
It ia truo those doubts would in part be ro-
moved by q full understanding Of one Of the frst
principles Of political oconomy,-a principle ea-
tablishod not only by theoretical reasoning,
but by tho experience OF ages md OF
many nations-that within certain limits
evory reduction OF duty will result in
an incrcaso OF rovonuo. It causes IN i'll
croascd consumption, aud tho lower duty on tho
larger quantity imported will yield more rovenuo
than tho higher duty on tho smaller quantity,
first, because tho higher the duties tho higher
tho additional charges which traders must n1ako
to protect themselves from loas by fluctuations
in tho market, md to obtain return for tho
larger capital required in tho handling OF given
quantity Of goods, theso charges operating az
sort OF duplication Of tho duty and Us TN added
obstacle to consumption second. because tho
higher duty tends to caueo more Of evasion aud
undervaluation and third, because reduction of
cost within certain limits prompts in
crease Of consumption in still creator
ratio. But In spite Of these reaeonings
aomo doubt still remains whothor Increased i'm
portation might not destroy our manufactures,
and whether such m incroaHo as would not break
them down would suffice for tho large revonue
now needed. But few, oven Of tho most intel
ugent froe-traders, arc awaro how complete an
answer to these doubts ia furnished by our own
experience Lot us examine the facts regarding
tbs manufacture and importation Of cloth, and
suppose That the duties aud prices Of 1860 had in
no way been altered by protective intermeddling.
Wc may infer that the growth III production, in
Importation, and in consumption Of cloth would
each have advanced at the Baule ratio at which
onoh actually advanced during tho ton years Of
low dutioe ending in 1861.
During that poriod tho manufacture OF cotton,
,woolon, worstod, ailk, and linen goods actually
advanced 70 per cent, according to tho census
reports Of 1850 and 1850. According to tho
Treasury roeords, also, the importation Of all
goods Of tho aamo kinds actually advanced rs
per cent. Doth progressed with remarkably oven
pace, but zach increased far moro rapidly than
tho population. Clearly, an equal incrense in
both during tho 1aat decade would not haYo do
Btroyod manufacture. But, would It havo
yielded sufficient revenue, or permitted growth
of manufacture materially less than has actually
occurred !? .:
from 1860 to 1860, tho manufacture Of cotton
goods advanced 7G CLIO por cent, and tho 1ike
increaao until 1870 would have :givon us pro-
duotion OF 2,Qa7,a1s,7+o yards, whereas, no.
oording to the osnsus, we aotually 1nalo only
LOGS, 100000 yards in that yoar. But tho
reduced consumption Of cotton during tho War
has oaueha q considerable change in tho uso Of
woolon and woratad inRtqaq Of cotton goods; lot
ua suppose that tho same change had taAoA plaee
under lower duties. Wo consumed In 1900 Boven
and ous-dftA yards per capita Of wooden and |
worated goods, aud In 1870 oight and ono.ffth;
an increase Of ono yard to each poruon. But ope |
yard Of woolon aud worstod goods in tho average |
cannot bo counted rs equal In wear to moro than
four yards Of cotton; ii, thon, had substituted
ono yard OF woolen and worstoa for four yards |
Of cotton, thoro would hayo boon decrease Of |
about 1Go,00o,0o0 yards in tho use Of cot
ton, which, divided betwoon manufacture
and imports, at tho ratio Of produce
tion to imports in 1860, would DO |
loss Of 1os.ooo,ooo yards In production and |
100000 yards in tmporta. Tho production,
inatcad Of 2,027, ,8l3, TAO yards, would then havo
been 1,o1o,81s,74o yards, or s5o,o0o,ooo yards
greater than tho actual production In 1870. !
Again; tho manufacture Of wooden and woratod I
gqodB produced, in 1860, only $4,000. .o52 yards,
aud in 1850 It produced 147,c47.ao2 yarda, an in
croase Of 10 $40 per cent. Had THO mapufao-
tnro advanced at tho samo ratio until 1870, wo
should have produced Of woolon md woretod
gooda 2ob.4oo,8b5 yards, whereas ws sotqally
produced only 100, ,o77,042 yards. Homo, with
out any allowance for change from cotton to
'soolon goods, md without protection, tho
should have produced about |
75,O00,o00 yards moro Of wooden and
woretod goods, advancing at tho rate
of tho last decade OF low dutleB. than 1t
has actually produced Nth protection, aud NTH