New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1885-12-07
SILVER AND THE TARIFF.
4 FREE.TRADE VIEW OF SOME NATIONAL
QUESTIONS.

PRACTICAL ECONOMICS. A Colleeuon OI oIonCic
Prospecting certain OF the Recent ;Econoni.0
Experiences OF the United States. By DAVID n
WELLS vo., PIP. 259 q. p. Putnams SONS
This collection in attractive form Oh papoi'
previously published will be gratifying TO iarso
number of readers who have warmly appreciated
the services of Mr. Wells in the discussion Oh many
economic questions. Three of the essays are On
initiation and silver coinage. six are devoted 10 We
tariff question four discuss the taxation OIL diseu
spirits and the closing essay on the production anu
distribution of wealth, was an address oy MT "olis
as president of the Social Science Association III
the discussion of the money question, MI Weils mas
rendered great public service and bis contributions
to scientific knowledge on other economic questions
have been of recognized value. His beheis III le
gard to the taxation of distilled spirits are ho'
accepted by many. who nevertheless appreciate the
ability of his reasoning and are thankful lor lno
information he gives. Even those who most
strongly dissent from the wel-kDO wn views oil MI
Wells ON tho tariff question recognize with pleasure
his general courtesy in debate and his ability 10
comprehend that the advocates OF protection "Io
patriotic in their aims and honest In their peHels
" Mr. Wells il net mere destructive; he earnestly
urges (page 74l that under the existing nScai
policy of the Nation. which has been long continued
many vested interests have grown up ana been
fostered which entitled to the largest and most
generous consideration, and which cannot be arbl-
occasoning such changes in the direction OF indus
try as may work great temporary injury to not
few persons With the most honest intent. 1t VIII
be only too easy for taxreformers to arrest by nu
dicious action the tide of public opinion, now set
ting strongly in their favor These worus ITS.
published some years ago, gave to the advocates VI
q change of duties a warning which they nave 1alleu
to observe. The consequences of that failure, Mr.
Wells would doubtless admit, have been disastrous
to them and to the country.
Mr. Wells has urged the adoption of either the
French or the Walker system of tariff as a model,
belle wing that it is impossible to adjust duties after
The manner of the present tariff with fairness 10
different interests and that such m adjustment, II
,nce effected would become unfair in very short
lime through the changes in the relations of IL
ustry. In short, he believes that the existing sys-
TEN cannot help the industrial development OF the
country But Mr. Wells any who read bis writ
ings, should contrast his melancholy predictions IN
past years with the magnificent growth of the
country in prosperity and wealth. and the wonder
full development of the various industries which
long ago seemed to him to be oveIburdened and
virtually suppressed by .unwise legislation. I'M
doubtedly great embarrassments have resulted nom
defects in the tariff But the splendid practical re-
suits which have been attained under its operation,
greater than were previously attained under any
form OF taxation, constitute argument IN It's
favor which, it must be said, even Mr.. Wells is not
able to refute
The general fairness and di entity of tone preserved
by Mr.. Wells merit communication. In this respect
mis- papers contrast very sharply with the spleful
and untruthful utterances of Nj. Sumner At times,
1t is true perhaps from force of association lie falls
into bad habits, and uses expressions which are
beneath his dignity, as, for example, when he speaks
of Senator Hoar as " an intellectual crank" page
IL 1,o ba doa ~ hat
tesy toward opponents which Is Indispensable IN
an argument intended to persuade or convince.
Mr. Wells thinks that the tariff has ceased TO have
value to the cotton manu- lactuTe but that the duties
on machinery enhance the cost Of production and
so shut out the American producer from foreign
markets The information given tpage s2) regard
ing the cost OF manufacturing here and abroad Is
interesting, but the remedy proposed, a repeal OF
duties on machinery, 10 curously inadequate Mr.
Wells argues that wages are not higher here than
abroad; if So the cost Of labor in the product is
not greater and the cost of living does not ahect
the matter. Mr.. Atkinson has shown that 10 per
cent interest on all capital invested in cotton man
ufacture Is not more than about four enths of per
cent per yard on thrty-siA-nch sleeting costing
Z cents per yard But only part of the capital Is
put into machinery, let say One-haf, the Interest
ON which would be twO-tenths of a cent per yard.
Again much Of the machinery Is cheaper here than
any machinery that could be imported, the boilers
and gnes for instance, and most of the fixtures
Let rs say that half of the machinery Is Of this
sort; the duty on machinery can therefore Affect
only the other half, OF which one-tenth OF a cent
per yard yields 10 per cent interest But the lfer
ence between the cost of machinery here and III
other countries is only part of its entire cost here
and certainly less than one half, for the duty Oh
imported machinery does not exceed 40 per cent.
Therefore, less than half OF Onetenth of cent per
yard will pay 10 per cent on the difference in the
cost Of machinery which might be imported and
TINS on goods which sell for more than cents per
yard. Does Mr.. Wells really think that 50 small
q change would alter the whole course of foreign
trades
Mr.. Wells himself is probably unconscious how
far he reasons upon the mistaken assumption that
a duty on imports always enhances the price of
a corresponding domestic product. Probably he is
aware that in many instances the course of prices
proves that the burden has fallen wholly or mainly
on foreign producers. Nevertheless. much of his
reasoning is apparently based upon an unconscious
assumption that the cost of living and production
here is increased not merely TO the extent of duties
imposed but even more. The cost of living in this
country Is the entire annual product, plus the entire
value of imports, plus the eutre value added to
both by mechanical trading or transporting SER
vices, let us say. roughly, $S,000,000,OO0. The
entire sum raised by duties is, let us say, $780,
100000 or pig per cent of the cost of living. The
assumption that addition TO the cost of living be-
yond this limit. and greatly beyond, is caused by
duties for protective purposes. which would not be
caused by other dutiesyiedna adequate revenue,
has no warrant The assertion needs at every step,
and ia respect to every item, to be proved, and
not be assumed He who consciously or uncon-
sciously takes it for granted misses the vital point
in the discussion 1t is here that Mr.. Wells often
r. ...OfL fen ff0icV Gnff tFaran ~