The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1886-10-16
The Tariff and Competition.
written for tho Democratic Advocated

Written for the Democratic Advocate.
The inevitable effect of the tariff, as we
have seen, is to increase the'price OF living;
and this always more than balances any in
crease which it may produce in the price OF
labor 1t is no benefit TO the laborer that, by
an act of legislation, his wages are increased
ten per cent when by the same act the price
of living is raised forty per cent. Suppose
the iron and coal miner does get few cents
more for his labor in consequence of the
tariff on iron aud coal. What good is that to
him so long as in consequence of the policy
of protection extended to multitude of indus
tries, he pays forty per cent. more for every
thing that he eats, and drinks, and wears,
than he would be required to pay in the abb
sence of protection? 1t is sheer nonsense,
then, to talk of protective tariff as benefit
ing working men; and to appeal to them for
their votes on this ground, presumes an enor-
nous amount of Ignorance on their part.
But to this argument that, by increasing
the price of goods, the tariff necessarily in
creases the price Of living, the answer is
sometimes made that this effect is only tempo
ram, and that prices will soon be lowered
again in consequence of competition. The
| imposition of two dollars yard on French
cloth, for instance, it is said, will not perma-
nently raise the price of cloth manufactured
in America by the amount of two dollars;
for, in consequence of the duty, multitude
of manufacturers will soon engage in the pro-
duction of cloth, and these will presently be-
gin to undersell each other, and thus the
prices of protected cloth will be lowered. The
same law applies to all other classes of pro-
tected goods.
But, if this be so, then we ask, what is the
use of protection? 1t appears, then, that pro-
lection after all does not protect, or at least
not permanently. Should it be said that
| &c lr 1ad t0
dustries as long as they are weak and in their
infancy, and that it becomes ineffective and
useless when these industries have become
strong we might for the sake of argument
grant the distinction. But what sense is there,
then, in talking any longer about protective
tariff in these United States? Are the indus
tries of this country still in their infancy?
One would suppose that the most OF them at
least are full grown and able to take care OF
! themselves If the iron industry, for instance,
is still an infant, it is to say the least very
big infant, for it can raise millions of dollars
to carry presidential elections and to buy
votes in Congress. And yet the advocates of
protection are never satisfied, but, like the
daughters of the horse-leach, they constantly
keep on crying, give, give!
We have, however, no disposition to deny
the reality of competition, and its effect in
lowering prices. Only let us try to under
stand precisely how the thing works, and who
is benefited, and who is hurt by this compe-
tition. When protective duty is first I'M
posed on certain kind of goods, the produc-
ton of those goods becomes very profitable.
The men who first engage in this production
soon become immensely wealthy, while the
mass of the people in consequence become
poorer. One millionaire thus always makes
some thousand of paupers. But the immense
profits connected with a certain industry pres
emily attracts a crowd of capitalists to that
industry, and IN short time 1t is orer- done
Men rush into the production of protected
goods to such an extent that in short time
they produce more than the country can con-
sumo. And now, at this point, competition
begins, and prices commence to go down.
What is the immediate effect Of this decline
in prices? A lolcering Of the tcdgeS Of Ld6OrerS.
The first thing that manufacturers do, when
they come into competition with one another,
and when consequently prices begin to decline,
is to cut down the wages of their employees.
They are not willing to forego the profits
which the system of protection at first enabled
them to realize, and yet they must self their
goods cheaper than they did in the beginnings
so there remains nothing to be done hut the
cutting down of the wages of operatives. A
reason frequently assigned for the unwilling
ness or inability on the part of capitalists to
accept reduction of profits, is that they
need large margin Of profit in order to meet
the seasons of dulness or suspension which
are the inevitable consequence of this over
production.
The whole effect of competition is thus
thrown upon the laborer. The competition
of manufacturers affects not their own profits,
but the wages and comfort of their employees.
These are merely kept few degrees above
the point of starvation. They are not per-
mitted to starve absolutely, for the same rea-
son that horse is kept from starvation,
namely, because his labor is profitable to his
owner; and if they choose to quit work and
''go on u strike" the rich capitalist knows
how to supply their place at even lower rates
by fresh importation of laborers from Eu'
rope or Asia, for on such goods there is nc
tariff.
But this depression of wages is not the
whole of the evil. The over-production and
ruinous competition produced by protec-
tive tariff lead to frequent disturbances oil
suspensions of industry. The glut in the
market must sooner or later be followed by q
suspension of production. Every now and
then the mill must stop running for while
The furnace must lie idle few months in the
year. In order to meet these seasons of sus
pension or depression the capitalist makes
provision by reducing the wages of his EN-
ployees and so keeping up his profits. But
the laborer is able to make no such provision
as it takes all his meagre earnings to main
tain himself and family from day to day; and
then when the suspension comes, the iooit q
at the door, This is the way the tariff pro
notes industry, and helps the laboring man.
There are natural laws of production ano
trade, which are as inviolahle as any Other
laws of nature; and any tampering with these
laws must inevitably produce evil results. il
| 70, To- To off
courses of all the rivers in the United States
there would be sorry work. As long as they
are left to follow their natural channels they
give no trouble; but if an effort were made tc
change these channels according to some ar
ti6cial plan, there would no doubt be constan
trouble. So it is when an effort is made tt
direct the course of industry by Legislative
enactment. The strikes, and suspensions
and failures are the natural consequences o
this economic folly. LUX.