The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1877-09-06
DAVID A, WELLS ON FREE TRADE

HELiGle eHbIbleu HOW bHHII jig Nbbloh
Regain Prosperity discusses some
questions and presents In support OF
them statistics which are Of peculiar
Importance to this community at this
particular time, and to which we invite
attention for this reason. In address
ing himself to the solution OF this
problem, Mr.. Wells finds exactly the
same causes Of depression and suggests
precisely the same tons which
have been set forth repeatedly In the
whole question, as he sees 1t, and as
we have presented 1t, is How shall we
create new demands and larger mar
kets for the products OF the nation?
This question, by reason Of circum-
stances of legislation rather than Of
natural and spontaneous growth. in
wolves. first, the subordinate PROPOSE
ton By what agency has our market
been circumscribed and limited. while
demand does exist III the world, to an
extent so disastrous to our industrial
classes 7 And, secondly, How can the
business of the country be revived by
removing the causes of depression and
affording to our products free and un-
burdened access to markets which
already exist, and which we have only
to reach on equal terms with other COM
petitorss
The essay ID q powerful argument In
favor OF the opening Of our ports to the
trade OF the world, and against that her
m etical Chinese policy Of isolation
which has written the Iliad Of our woes,
and, in view of the call we publish this
morning for free trade convention at
Saratoga on the 9Th instant, we should
like to publish the entire document, but
shall have to content ourselves with q
brief synopsis Of its main points. He
goes at once to bottom facts, and shows
,rhv we trade. Trade, he says, Is essen
TALLY barter, exchange, and money 10,
and can be made by any circumstances,
but mere medium Of contingent and
collateral consideration and value. He
thus states this proposition. and we can
conceive of no presentation more COM
preh ensive or simple.
"There IL no wealth to be made through
trade or exchange Of products beyond the
simple economy that results from the pro-
Queer supplying the consumer cheaper than
the consumer can supply himself directly by
his own efforts"
Mr.. Wells then goes on to show how
our vicious tariff has shut ourselves In
as well as excluded other nations from
competing in our home markets, in sup
plying products whose prices are not
based on honest and legitimate de-
mand, but on distractions placed be-
tween demand and supply by vicious
legislation. We have proclaimed to the
producers and laborers of the world
outside Of our country that:
ave do not think II desirable that you
should sell your products on your labor in
this country. and 50 far rs we can interpose
legal distractions we don't intend that you
shall"
In suggesting the sources OF our de-
preston the remedy for It must neees-
sarily occur. There can be but one
healthful incentive to production, and
that Is demand. When production ID
stimulated by the artificial means Of
protection, the necessary result is that
the market Is limited and the sole pur-
pose then becomes to monopolize this
limited demand. When this demand Is
supplied, surfeited by the unnatural
stimulus that has been applied, there
can be but one remedy, and that Is to
enlarge the demand by opening up q
competition In other markets. or else
the production must be limited, as the
market has been.
In substantiation of his propositions
Mr.. Wells cites the commercial opera
tions between the United States and
Canada:
In ts52-53. in the absence Of anything like
commercial freedom, the aggregate exchanges
| between the two countries amounted to only
| $40 8g1 600 The subsequent year treaty OF
| reciprocity went into effect whereby the peo-
| pie of the two countries were enabled to trade
and exchange their products with little or no
| obstruction In the form Of import duties. The
| result was that the aggregate OF exchanges
rose the very first year OF the operation OF the
| treaty from $2O69l 900 to S33,4N,00O, which
subsequently increased, year by. year, until IT
reached the figure of S55, 900 in 1923, and
$4,000, 600 in 1S65.66,
In 1866 the reciprocity treaty was re-
pealed and our exchanges fell to $685.
10000. There is no reason why, under
the natural laws Of trade, the exchanges
between ourselves and the people OF
Canada should at all differ from those
between the States, and yet Mr.. Wells
makes the following statement:
The aggregate value of all the exchanges
between the 4,000. 600 of people in the Domi
MON of Canada and the 440OoOO0 of people In
the United States for the year 1875, through
every variety of instruma ea was onl.
the United States side of the line, under The
condition of perfect internal free-trade, eff
fected exchanges between, themselves
through the agency of railroads alone, to thu
extent Of $1,000,000,O0o.
This argument is further strengthen
ed by statistics of the trade with Chill