New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1883-07-19
4 STUDY IN ECONOMIC SCIENCE.


Germany is of the highest value as practical
study in economic science. The second paper
which appeared in yesterdays issue, reviews
the recent HISTORY of the chief industries under
the ri yai systems of Free Trade and Protection.
The industrial progress OF the Fatheriand nad
been retarded for many generations oy con-
fused political conditions and lack oil unity,
when Bismarck succeeded in welding the scat
tered monarcbies and prlncipalites into com
nact empire. Sedan brought deliverance from
external foes, gave Germany n commanding
position in Europe, and opened the way aor
paci6c era of industrial development. Eco
nomic science ranked first IN Importance
among Imperial questions, and the Govern
meut Was forced to decide between Free
Trade and Protection. Taking the advice OF
university professors aud the leaders of the
political party which had given him constant
support, Bism arck introduced Free trade tue
main ridiculous in the tariff schedules being
made in 1872 and 1878. Being without pre-
iudice or prepossrssion on either slde' ne re-
solved to subject the rival systems 10 the TEST
of practical experience and to ABIDE oy the re-
sults. Accordingly in 1878, being dlsap-
po,pted with the economic results oil Free
Trade. he reverted to a high tariff, the scheu-
ules going into effect IN the following year.
Germany affords within the compass OF dozen
wears scope for direct comparisons IN the prac-
tical operation of the two systems. These
commissions Mr. Porter is making in his letters.
the results being greatly TO the advantage vi
Protection.
German manufactures during the Free Trade
neriod exhibited a rapid decline, and IL was not
until the Protection system was proposed ana
adopted that the recovery became DercepnDle.
This statement receives remarkable confirm
ALTON in the statistics OF the production OF IRON
ore. pIg-iron and finished iron and steel. Stag
nation has given place to activity, furnaces
that were blown out under Free Trade have
been relishted, and a prodigious impulse has
been given to n large class of industries. 1he
advantage possessed by English maDuiac-
turers in the proximity of beds OF coal and iron
has been overcome, and the German iron trade
is how 6ourishing, wo:kmen aud capitalists
sharing in the benefits. -Four years OF Protec-
| ton have added SO per cent to the number OF
| workmen en- lOyed, 81 per cent to the aggre-
gaze amount of wages, II per cent to the aver
age wages paid TO each workman, and . per
cent to the dividends.
| There has been corresponding improvement
| in the manufacture of textile fabrics. which
had steadily declined during the Free Trade
period We by 10 means thiuk that this change
! for the better rs due entirely To the sn0stltn-
| ton of Protection for Free Trade. Allowance
| must be made in these comparisons Tor the
PROSPEROUS times Which set in after period oil
commercial depression about the time Bis
marck changed his economic policy. Bnt Vt can
easily lie proved that corresponding industries
| in England have not derived from the general
! Improvement of business the same degree Of
| bcne;t which has been experienced in Germany
| There has been no increase OF wages IN Eng
land. whereas in Germany workingmen in all
! branches OF manufacturing are earning more
/ and are also better of than they were four years
ago. Then there is the universal verdict OF
| German manufacturers that while the times are
| petter than they were, the tarifl has given
| tremendous impulse to industries that were
! languishing under Free Trade.
| AIR. Porter's methods Of investigation are
| laberioas and thorough. and be cvinces no
disposition to exsggerate the Importance OF
| Ills conclusions. lie is conducting his indus
trial inquiry with paiustzking care, and tue re-
sulfs of his observation and study art set forth
| in q comn.endablc spirit of candor and modera-
ton. He iinds Germany a fruitful field for
economic study, because the lines Of came
and effect are sharply drawn and theories can
he subjected to practical tests. Ii his conciu-
sions point unerringly in the direction Of Pro-
lection, it is in consequence OF a principle re-
coynized by John Stuart Mill, the greatest OF
Free Trade writer's when tie made this con-
cession: sIt is just remark, that nothing
- has a greater tendency to produce improve
q ment in any branch Of production than Its
trial under a new sci Of conditions But 1t
1cannot I've expected that individuals, at their
q own cost, should introduce new manuiac-
q ture AMI bear the burthens Vt carrying II on
until the producers have been educated up 70
q the line pt those with whom The processes nave
- become traditional. A Protective duty, con-
. tinued for reasonable time, will sometimes
be the least incOnv enient mode in which a
country can tax itselt for the support OF such
AN experiment"