The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1888-09-21
THE FACTS OF HISTORY.
Free Trade aud Protection as They Have Been
Tested in the United States.

enjoying an unprecedented degree OF prosperity;
that 1t is peculiarly blessed above oil other ma
tions Of the earth in all the elements of material
wealth; that here in the last quarter Of a GEN.
tury has been nurtured into being one of the
grandest and most stupendous industrial sys-
TENS OF any age-a system employing over "a
DOC, O00, 600 Of capital, and turning out annually
more than 81. 500, 900, 900 worth Of manufactured
products. That there is q cause for this phe-
uomenal prosperity. this unprecedented growth
and development, goes without question. What
Is that cause9 We have two great political par
ties in this country, each striving for the mastery.
The Republican party, marching to the conflict
nnder the banner on which is inscribed PRO
lection TO American Industry" is vehemently
maintaining that this wonderful prosperity
which the country is enjoying has been brought
about wholly through the instrumentalities OF
the Republican system of protection. The DEM
ocratic party, on the other hand, is also march
Ing TO the conflict under their banners, on which
is inscribed, Free Trade and are just as We
hemently contending that this prosperity ia not
due to the Republican system OF protection, but
that il has been brought about In spite OF it.
Mere assertions 60 for naught unless we can
substantiste them by indubitable evidence;
therefore we Will endeavor to brush aside the
mist and the fog surrounding this question. and
let In the light of history. The first real pro-
tective law enacted in this country was in 1874
What was the condition of the country for n few
years previous to the enactment of the tariff law
OF 1878 Mr.. Sargent, the historian, says:
The condition of the country IN 1924 was far from
prosperous The amount of our ax ports had dimin-
ished to an alarming degree, while our imports of for.
eign goods had greatly increased. The country was
drained of its currency, and it, commerce was Grip
pied. Nor was there any home market for the staple
productions of the soil. Both cotton planters and
wool growers shared IN the general prostrsticn; and
even the farmer ha5 ~ sell his produce at q loss. or
Eoan - nm hand I'll ~ n ruipef Iahor could with
difficulty find employment, and its wages were hardly
sufficient 10 supply the bare necessities of life. Money
could only D., procured at enormous sacrifices Dis
tress and bankruptcy ~pervadsd every class az the
community.
Such was the terrible condition Of the country
during the seven years previous to the enact
ment of the tariff Of 1924. OF the beneficial re-
suits which followed the enactment OF the tariff
of li24. We have the testimony OF the immortal
Clay himself. Eight years after the protection
system had been adopted IS the policy OF the
country, and after recalling the gloomy picture
he had presented in 1924, Mr.. Clay said:
I have now to perform the more p:easing task az
exhibiting an imperfect sketch OF the existing state
of the unparalleled prosperity OF the country. On =
general survey We behold cultivation extending. the
people fully and probably employed, and the pubic
eountenances exhibiting tranquility, contentmert and
happiness. And II we descend into particulars. We
have the agreeable contemplation of a people out OF
debt land rising slowly IN value, but in a secure
and Statutory degree; q resdy. though not
SAIrSNdGAnt Y . Ell q surplus pTO4uaN4OLs OF
our industry; innumerable focks and herds browsing
and gsmboling on ten thousand hills and plains,
covered with rich and yerdant grasses; our cities eS-
panded, and whole villages springing up, as II were,
BY enchantment our exrcsfs and imports increased
and increasing: our tonnAy~ foreign and coastwise,
swelling and fully occupied, tie rivers Of our interiors
animated b. the thunder sd lightning OF countless
steamboats,; the currency sound and abundant; the
puoie oSo. OF tMo was neatly re.erth~a' anu 10
crown all the public treasury OVERCOMING. emhsr-
RAISING Congress. rot 10 ind subjects If taxation. but
70 select the objeet which shall be relieved
from the iinpost- IL the term Of seven years were TO
be selected Of the greatest prosperity which this
people have enjoyed since tie establishment Of their
present Constitution. II would De exactly that period of
seven years which Immediately followed the pas sage
of the tariff OK 1924.
This prosperous condition. as here related by
Mr.. Clay, continued until the year 1893. when the
Democrats OF the South. III a &c of insane jsal-
ousy. caused by ihe marvellous growth aud
prosperity OF tbs Northern States, demanded
and succeeded, by the aid of their Democrats al
| lies OF the North. in securing the repeal OF the
tariff law of lS24, and substituting in Us stead
the COMPROMISE measure of 1889. which pro-
vided for a gradual reduction OF tee tariff, un-
I'll free trade should,virtuslly prevail. During the
existence OF the compromise measure or 1923
We have undoubtedly the finest illustration of
the beneficial effect Of the protective system. as
well as the evil resulting from free-trade. 1t is
a we.l-kpown fact that as the tariff was reduced,
as contemplated in the compromise measure,
the condition of affairs gradually changed. the
currency became Gerangsd, labor was unem-
ployed, and things went from bad TO worse, IN
Ill it eliminated in the terrible financial crash OF
1897. Our manufacturing interest was over
whelmed. stagnation and ruin was on every
hand. Then followed the protective tariff of
1S42, which continued 10 force until il was re-
placed by the free. trade measure of 1S46. Mr..
Clay, In speaking of the good effect OF the tariff
OF 1872, says:
1t sc, ms to me that if there were ever a beneficial
effect from any public measure fully demonstrated il
Is that the tariff of 1872, beyond all controversy.
ralava1 both md tho paopla n shG Tv;4a
States from a peculiar embarrassment. bordering on
bankruptcy.
And again. in o public letter written after the
repeal Of the tariff measure OF 1872, and the snb-
s%titution of the tariff for revenue only of 1916,
Mr.. Clay said:
/ believe the system Of protection, notwithstanding
the opposition which it has encountered, has pushed
the Nation forward half a century in advance of
where it would have been If the doctrine Of free trade
had always prevailedin our public council
Mr.. Hudson. a Democratic member of the
lower branch Of Congress, who had voted for
the repeal of the tariff of 1872. and for the adop-
tion Of the free-trade measure OF 1876. ia q
speech delivered in Congress on the 9TH dav of
February. 1878, in speaking of the tariff of lS42,
said;
Then our finances were in the most prosperous con-
dition, there being a surplus of ten millions of dol
lars in our treasury, and now, under the operation Of
the free-trade measure of 1916, we are on the verge
of bankruptcy.
Clearly the free-trade measure Of 1876 failed
to plish the object for which it was in
tended, for we find as the years went by that
the condition of the country did not improve,
but that stsgnation and distress was the pre-
vsilipg disease. Mr.. Fillmore, in his message
to Congress in December, 1851, says:
Our manufacturing establishments are broken down
by competition with foreigners. the capital invested
in them is lost, thousands of honest and industrious
citizens are thrown out of employment, the destruc-
ton of our manufactures leaves the foreigner with
out competition in our markets, and consequently
raises the price of the article sent here for sale.
President Buchanan graphically describes the
condition Of things, In bis message to Congress,
December, 1851.
In the midst of unsurpassed plenty in ali the pro.
ductions and in all the elements or wealth. we find
our manufactures suspended. our public works re.
tarded, our private enterprises of different kinds
abandoned, and thousands of useful lahore rs thrown
out of employment and reduced to want.
We thus see how the good ship of state had
been drifting aimlessly from protection to ffee
trade, and from free trade to protection ever
since its organization, but now soon to become
safely anchored in the harbor of protection.
Early in March, 1861, was introduced into the
lower House of Congress, by Mr.. Morrill,. of
This bill was thoroughly protective in its every
feature. This measure readily passed both
Houses of Congress and soon became q law. 1t
is useless to enlarge on the benefcent influence
exerted by this measure. That it has stood the
test of . quarter Of a century: that the manu-
featuring industry Of the country has advanced
with gigantic strides; that the Nation to-day is
occupying the most exalted position among the
nations of the earth, is the best evidence Of the
s~alutary influence of this measure.
With these facts before rs can we, as patriot