The Somerset herald. [volume] (Somerset, Pa.) 1870-1936, 1881-11-30

lHE pIiiicipic, anu Christianity re-
peated declaration of the Free Ira
ders that, "a tariff is tax added to
the cost, both of the imported arti-
Gle and of the like article made or
produced in this country-a tax on
the people for the benefit of the So
called monopolists," is well and
ably met by the Iater- Ocean in an
article, from which we extract the
following lucid and convincing
statement:
While, however, protectionists con-
cede that in IFS incidence a protect
i've duty may be q tax in appear
ance when we regard only the price
paid for the article, it may cease to
be so when we regard the increase of
purchasing power which the article
here imparts to the aggregate body
of purchasers. So far as the increas-
ed price OF protected article is
made up of inevitable elements of
expenditure on the part of the pro-
tected class.the whole increase returns
to the aggregate body on whom it it
levied, in the form of an increase of
their purchase power. Thus sup
pose the cost of steel rails to be made
up four-fifths of cost of labor and
one-fifth of profits and capital. The
cost of labor is made up say one
third Of shelter or rent, one-third OF
food, and one-third of clothing. Ii.
therefore, a ton of steel rails cost
s35 to manufacture in England and
s55 to manufacture in America, if
we import them from England we
really import loan of English cap
ital on which we pay 81 interest,
a loan of English land or shelter on
which we pay SO rent, n purchase
of English food at $40. and of Eng
lish clothing $40. We have rein
forced the purchasing power of Eng
lish consumers by s35, but as Eng
land only buys one-thirty-ffth of
what she consumes from US, only 81
out Of the thirty-fye returns to rein
force our purchasing power. To
the extent OF s34 out OF the s35 our
purchasing power is drained--di-
minished--or to use the mos; ~
rect expression, taxed. Ins,,.ad
of reinforcing our purchasing power,
we have really imported $40 worth
of English food and clothing to
compete With our own.
If on the other band. through a
protective duty of SIS, the price be
raised to SEQ per ton and We buy the
American article, we pay te the
manufacturer s. profits on his capi-
tai. which, if it be a greater profit
than he needs for consumption, and
greater than he could make in other
industries, he invests it in extend
inging his works. The S55 cost of
production diffuses i4zalf in the pur-
chase of materials, costs " ''plant
and tools" and in wages of labor, !
including the wages expended in
the raw materials. OF this, SIS
would go for the purchase of Ameri-
can shelter, SIS for american food,
SIS for American clothing, all of
which elements one-thirtieth might
be imported. Thus the whole $50
would &c to reinforce the purchas-
ing power OF American industries
generally, except tke 81 which
might be paid for articles Of foreign
production. On the American in-
dustrial body as a whole the ex-
haustion, drain or tax which on the
Supported ton was s34 out of s35, on
the dcrsestic ton is only 81 out Of
$50 In tisss sense the protective
duty instead Of besizc tax, is the
plug which stops the sg,:est Of all
taxes, viz, the lying still and idle
while Foreigners 90 the work we
ought to do and draw on us for the
nav