The anti-monopolist. [volume] (Saint Paul, Minn.) 1874-1878, 1874-09-10

FREE TRADE AND PROTECTl ON
1t has always been claimed that
Protective Tariff was meant for and did
improve the condition Of the laboring
classes that it insured them constant
work at wages avove the average rate
OF wages Of the unprotected nations ;
and the argument was made with a
great deal Of apparent force that wages
IN America had always been above the
wages of other nations because of the
protective system.
Men of intelligence would admit in
conversation that the theory was false !;
that liberty was better than restraint !;
that the great essential rof successful
commerce was absolute freedom of in
terchange; and that the doctrine of Pro-
lection belonged to an imperfect. semi
developed state Of society,", and was
found in perfection in China and Japan.
But, they would say, while we admit
that the theory is erroneous, look at
the results. An era Of protection is an
era of universal prosperity, while the
periods s0t comparative free trade are
accompanied by financial rcvulsions and
poverty and suffering for the laboring
classes.
And to some extent this has been the
case, and for this reason:
A protective tariff, by increasing the
profits Of certain protected pursuits
concentrates in few hands the wealth
which before was spread among thou
sands; and this concentrated wealth
produces, necessarily, for time,
commercial and business activity.
For instance, we will suppose that
one thousand men in community have
$1,000 each. Now while they may en-
joy the comforts and pleasures Of life,
there is no display, no wastefulness, no
great. enterprise, no rushinghbead. But
suppose by some legislative action, the
entire wealth Of the one thousand men
is concentrated in the hands Of one hun
dred of them, leaving the remaining
nine hundred poor and in debt. What
are the results? First, each of the one
hundred, instead Of being worth $4,000
is worth $4,000. These one hundred
representing five millions Of capital
get together; the; organize; they build
stores, factories,ships and palaces; they
are splendid in new equipages; they live
riotously; they construct railroads; and
other works Of internal improvement;
they give employment to large numbers
of workmen; and for time the commr.
nifty has all the outward signs of great
progress and prosperity. But gradually
the poverty of the nine hundre ed poor
and plundered citizens makes itself more
and more apparent. They suffer; they
complain: they organize for political
resistance; they overcome their plum
derers at the polls: and they take
possession Of the government.
Then comes collapse. The bulk of
the people, who should constitute the
real basis OF oil trade, commerce, and !
prosperity, are in debt and impovcr-
ished; they are driven to the closest
economies; they cannot pay their
debts; the results are the factories
are closed; the stores are idle; the
railroad trains run empty; an era of
poverty and great suffering is upon the
people.
Then the Protectionists point to this
state of affairs and they exclsiln "See
the results Of your free trade! while
we ruled you had prosperity. Now
what have your.
This had been the history Of the
United States prior to 1872. In 1872
We had reached such . period of dis.
content. A financial revolution was in
cvitable. Protection had wrought out
its legitimate results. A political revo-
luton, would, as usual, have followed
bat the business men of the United
States, merchants, bankers spectators,
capitalists, united in an appeal to the
people to re-elect Grant and prevent that
collapse. The appeal was sue
cessful. Greeley and his specie-pay-
ment doctrines were repudiated at the
polls by an overwhelming vote; and
was assured four years more
Of life. The business community drew
a long breath Of relief-they looked
forward to an era Of gieaA activity and
prosperity.
But the laws Of trade cannot be
out Of thci: course any more
than the laws of nature. Suddenly,
like thunder out Of . cleae sky, came
the downfall of Jay Cooke and the
rest the world knows.
And Greeley was dead; specie-pay-
menEs were not resumed. the tariff wss
1he financial convslsisn is the OUT