, 1873-07-21

eomcboty o!Ho pIlnil chow como law for tho
HtocIs-wntoriug operations Of Tho paHt, wo el,al
continue to hold Tint tloy wcro ns unprincip1od
and vicious in their conception aB thay aro op-
pross1vo and domoralfziny III their tendency.
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HOW DUTIES MULTIPLY THEMSELVES.
Tho ct. Louis Globe makes n laborol effort to
show the farmers that tho duty on iron cannot
have caused tho increase in cost OF railroad
iron, and Of building and operating railroads, bo-
ca1lso TINT increase is gronter than "s9 ton -
which this martoloualy y:ill-nfor,ucl pnpor as-
sumcs to bo tho duty On iron railsl Until tho
Globe can acquire about ono-tcnth nB much In
formation in rogard to tho dutioB actually i'm
posed by tho tariff aa tho avornge farmor pos
eeBses, 1t had bottor not undertake to instruct
him worry much. Tho duty on rails Is not 40
ton, but 70 cents por 100 pounds, which, for n
ouatom-houso ton, a s15.Gs por ton. Neither
docs that duty affect tho prico of iron only to
tho extent Of tho duty ttsclf, Us tho Globe md
otllor entirely ill-informod persons imagine.
For first, thcro aro charges for and profits upon
importation next, tho dutios aro pnid in
gold, and thoir practical eroct ms'Bt
be increased by tho premium on gold
and finally, Tho iusent and partial effoct of tho
dutica is TO force 4 scarcity Of foreign goods In
our markets., and, whonever the demand hero In
creaaos, 1t gives temporary monopoly to the
American maker, enabling him to charge what
rateB ho ploasos until higher ratos hayo been
IN
era that large shipments can bo safely made,
and until q sufficient foreign supply arrives. Tho
effect Of d monopoly whenever unusual demand
arises is to push tho ayerngo Of prices considora-
bly, higher Than IL would otherwise bo, evon with
duty, charges, and premium on gold added.
1t may SOON to tho Globe (and to somo other
persons who know 80 nttlo that they suppose tho
duty On rails to DO only 80 tony that tho inn
portera charges arc not necessarily Increased by
tho duty. But IN importer, like any other per-
eon engaged in business, is compelled to earn
interest on tho capisM employed, and tho
duty compels him to employ in tho imrorta-
tion Of iron just s15.es in gold moro than
it would cost him for each ton If tlloro were no
duty. Moreover, tho monopoly duty causos IN
uncertain mud auctuattng market, yielding somo-
times largo losses and sometimes large profits.
and, in orery transaction Of that character,
something bosdes ordinary interest," Is taken for
risk. The margin Of tho importer is thus raised
above 10 por cont on his Investment but his ill
vostmcnt is the ontiro Sum required to purchase,
and move a ton of iron, and pay duties on it,.
Tho duty alone, in 1871, tho latest yoar Of which
cont of tho original cost, tho change from gold to
currency, and tho Importers charge OF 10 per
cent Oh tho entire outlay swollod tho increase Of
cost to IS por cent, and tho effect Of monopoly
| duties upon tho average Of pricoa pushed tho
increased charge still higher in 1879 and in the
| years from 1868 to 1850 inclusive. Thus 1t
| is not uncommon to find duty of 40
| per cent 30. swolled In it's practical offoot
| upon prices TINT it actually cauaos IN
incsease Of GO Or 70 per cont. In such cases,
1t is worry common cheat rcaorted to by the
advocates Of proteotion-and worry shallow one
to pretend that the increase in prices cannot
be thus cauaod, because 1t exoeods tho apparent
amount OF the duty.
Ono thing tho farmers can SEQ for Themselves
that tho railroads now hayo to pay over $50 d
ton for iron, Which, for tho tllreo yearB 1860,
1860, md 1861, under a q per cont revonue duty,
averaged less than 945 ton Ono other thing they
can sco-that railroads Which charged them local
ratoa Of 2 and cents por ton por milo before tho
War now charge thom and s oonts por ton per
mile, mud yet, na thoir yearly returns Bhow, de
| not make aB largo not earnings in proportion tt
tin capital invested md busness dono aa tho,
did boforo. The farmers will not bo % allow at
tho Globe to understand that the incroaso Of ratos
ia in very many casos compollod by tho increased
cost OF operating railroads. Moreover, wlor
tlloy find tho largest and most prosperous roads
charging less for their through business than
they did boforo tile War,-thnt buhinesa having
so groatly inoroasod that thoy can do SO without
loas whilo thoy arc forced to do so by competition
tho farmor quickly rcasons thnt, II tho actua
cost Of operating had not boen incrcasod ono
half, the san,e ronda could profltably reduct
their charges still moro and would have boe1
forced by tho 6arlo competition to DO 80. Thus,
In both casos, tho farmer ia the victim Of the
wholaHalo robbery which tho monopoliBts do
yised, and which the Globe so brightly defends
by stating tho dutica on iron Mt 80 a ton. We
recommend the Iron and Stool Association to
supply that papor with moaesatoly-informoa
pupil of somo public school, in ordor to render
ita advocacy Of tho tarifr-swindle little lea
damaging to ita friends.
THE WE5IERN UNION TELEGRAPH C0M
pAWY,
Mr.. Gardner q. Hubbard, tho principal adyo
cato OF tho Postal Telegraph, hns contributed
paper to tho o1lrront number Of tho North amer
ica" Reuie'o, on Postal Te1ography, in tho coura
of which ho mnkog mn assault upon tho WoHtor,
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