The New York herald., 1876-09-18
FREE TRADE OR PROTECTION.
THE ENGLISH VIEW OF THE OLD ARGUMENT
BETWEEN AMERICAN AND xNGLIsu MAxUPAC-
rrpype
From the London Times, Sept.


From the London Times Sept 81
All through the controversy which has lately arisen
on the relative prospects Of English and American
manufacturers conclusion was manifest-,hal the
future belonged 10 free trade rather than protection
Whether protection may havo boen useful for time or
not may DO q question for historians o: Tor tho
builders OF future natonacs, but that in few years
the policy OF protection will be abandoned by tho
United States would seem to be now accepted OF
the landmarks Of the political future II might still
remain TO De considered whether policy OF protection
n certain stages OF naton's progress may not 10
wise and poulc course. and tho legislation
adopted by tho Unacd States IN recent
years is very strong test Of thus policy.
Many contributions have been lately made TO the
study OF the actual position OF industry
in the uuied States and the least iuleresllng IL
the letter OF "A Nanuiacturcrn published on Weuncs
day last IN our city article The writer agrees with
Captain Douglas Gallon estimating very highly tho
degree vi progress made by American turers
under tho system OF projection That the American
SKIN we have had many pioos and not surprising
that this skill, ostcred by a policy vi protection
standard VI intelligence secured by systematic edu
cation has gwen native born Americans u
great start III manufacturing industry. Tho Ca
pacy however to produce excellent sale
not sulcicut To make great commercial success We
dicr from another writer, whose letter ihis sub
Jcct published Saturday, holding thai Tho
excellence oi the article produced sufficient this
end. The lrst CONSIDERATION is whether the goods
ore wanted ana the second is whether
they are wanted at pricc which will remuncrate the
producers Tor the time aid capital spent IN ther pro-
auction. Under The system OF projection this latter
result Is secuted 20 tho United states
European economists hold that the price Of
this advantage is great pccuHiary sacrifice
the part o. the Nation; but that under
the guarantee ol system OF protection capital
may DC proltably Invested IN the establishment Of
manufactures sucn as those Which have sprung up IN
United states has be, q disputed The prac-
teal question ID what Will DO The state o things Wuen
the public begin TO estimate the cost OF protection
Tho letters to which We have referred present graphic
pic,ure OF The collapse which ih.s has already
undergone, and II tue opinion oi other writer's
rect protection as stein the United States
Is doomed, American manufacturers must be prepared
10 consider the iutufc not OF monopoly hiin.
hesto, bat OF unrestricted competition. This Just
what ;hc prvnotcrs VI Lngl.sh commerce have Always
looked forward TO- The relative circumstances of
this country and VI other parts VI, tho
world change IRON time TO time, but wise
commereia estimates are formed on a consideration oil
the iesreo OF speed with which these changes are
brought ABOUT, and Ia The present oondtioa
uf the world We may be content with tho tact that
system of Tree traoe must ultimately promote Enssh
commercial interests not because England IS thereby
enriched AT the expense OF Ohor uaton but because
she has thereby opportunity OF dong tne best
she advance the comfort civilization OF
other quarters OF the wvrlu.
rns THEORY OF PROTECTION
Is that capital invested Ia particular way should be
secGred pron;s winch wodid not Dc secured by the
wants OF the customers whore wants such
was lnscnGcd to supply. tnc proats obtained under
such tempt vast quantity OF capital To en-
bark IN artncai schcincs o production dependent on
pfonittvc duties Capital thus employed Will
secure excellent machinery, and after time excellent
worgncn but customers viii not follow matter OF
coarse and this Is the lesson whcu producers the
LpAcd States are now being taught Tho favor shown
10 naive production ry the Legislature aurcd nl tho
unemployed capita! OF the country. Manufacturers
who had invested lavishly, relying the iavoring
breeze which nllcd their sails, found themselves IN
ruinous competition with the owners OF capital
tempted inio business by the pr0nls secured by a
sys.cm OF pro,ccuon. Everywhere there is cry OF
glull,d markets and ovcrproduction. An arbitrary
policy ike tnat o projection naturally produces such
results Capitalists that the imposition ol uuty
of twenty per cent secures certain profits They may
hope to secure share OF these profits. or that "A
duty ol thirty per cent may be IMPOSED and cover
their investment AS matter oi iaci with rigorous
system o projection we bavc general collapse OF
United states manufactures. Free trade Is
nlzcd as ihc commercial future OF the United states,
welcome such "a convection because this system
must cconomzc nc resources Vt the energetic popuIa-