The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1875-09-16
WHY WE HAVE NO FACTORIES.
To the Editor of the Bulletin

To the Editor of the Bulletin:
Tread your article in your issue of Sunday,
under the heading of "Work for Those Who
Want 1t" with much attention.
You are correct in stating that there are
thousands and tens of thousands of persons
in comparative idleness here who should be
employed in manufactures and in various in
dustrial pursuits. You are correct also in
stating that these thousands are willing and
anxious to work if they had chance. You
state also, what is undeniable, that the pros
perity and increase of cities are as much due
to manufacturing as to commerce.
will state, furthermore. what is universal
ly recognized as an established truth, that
although cities may be originated by COM
merce, yet they never attain more than
minor importance, unless manufacturing is
united with it. But manufacturing will in
evitably follow, if not prevented by some ex-
traneous cause.
Whilst there are thousands in actual want
and anxious to work, you are seemingly
astonished that factories should not be estab-
lished.
I am surprised that after you had stated
the premises 90 clearly that the obvious con-
clusion did not follow-that the want of
manufactures is owing to want of capital.
Meaning, of course, that those in possession
of capital, who are always, as general rule,
best acquainted with the most profitable way
Of employing it, do not think it could be
probably invested in this city in any manu-
featuring industry. The cause of the want
OF capital is excessive taxation. Although
capitalists may not always be aware of the
cause, they see the effect in the Frustrated old
industries around them and in the failure of
all new enterprises of the same character.
As my own opinion may not be of much
weight, will quote to you the words of one
who is universally recognized as an authority
on this and kindred subjects. man of whom
the most profoundly and variously learned
writer of this age, and whose powers of
thought were comm ensurate with his learning,
BUCKLEY says: "Well may it be said of
Adam Smith, and said too without fear of con-
trsdiction, that this solitary Scotchman has,
by the publication of one single work, con-
tributed more to the happiness of man than
has been effected by the united abilities of all
the statesmen and legislators of whom history
has preserved an authentic record"
Adam Smith says, Book s.: "When the
owners and employers of capital find that
whatever revenue they derive from it will not
in a particular country purchase tbs same
quantity of those necessaries and convent
ences which an equal revenue would in al
most any other, they will be disposed to remove
to some other. Aud when, in order to raise
those taxes, all or the greater part of merchants
and manufacturers, that is, the employers of
great capitals, come to be continually exposed
to the Notifying visits of the tax-gatherers,
the disposition to remove will be soon
changed into an actual removing"
in6 .rfth o nfry vuil1 ri1xy
fall with the removal OF the capital that sup
ported it, and the ruin Of trade and the manu-
features will be followed by the declension of
agriculture"
Now, Mr.. Editor, does not this portray our
condition, as much as if it was written with
special reference to the Louisiana of to-day?
Again this great writer says: IA tax which
tended to drive away capital, would SO far
tend to dry up every source of revenue, both
to the sovereign and to society, not onlv the
profits of stock but the rent OF land and the
wages Of labor, would be more or less dimin-
ished by it."
could give you fifty quotations from this,
and other distinguished writer's on political
science, to exhibit the all-destroying influence
of excessive taxation, but it is needless. They
are too obvious to require further illustra-
ton.
will merely state that relieving by legisla-
tive enactment factories from all taxation will
contribute very little towards encouraging
these enterprises, especially if they find
market for their productions at home in an
overtaxed community. As it is, the tax which
others pay, or tn 1t paid by the community in
the aggregate, which curtails production, de-
stroys business and limits the power to pur-
chase so essential to those who produce arti-
cles for sale.
1t is universally conceded that excessive
taxation destroyed that extraordinary pros
perity which Holland SO long enjoyed from
her great commercial and manufacturing in
dustries A taxation arising from the long
wars waged against Spain for her national ex-
istence, it is true, but not the less crushing
on that account. Had she, as other nations
our own among the number-wisely re-
pudiated her debts, it would have secured
her permanent prosperity, instead of being
crushed by them down to comparative pow
erty and to insignifcsnce among nations.
No, Mr.. Editor; until taxes are greatly re-
duced the prosperity of this people can
neither ebe restored by railroads, manufac-
tories, nor by any agency that human iDge-
nuity can suggest and the present exactions,
if continued, will inevitably carry us still
further downward to poverty, by destroying
the few industries that remain.
ARCHIBALD MITCHELL.