Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1888-08-21

consequence Is inevitable although In
production on either side is not confined /
the very choicest locations, the total prod
uct of their labor is twice as much as for
merly. In other words, there is doubl
quantity Of food, clothing, and all the nee
eSSaries and comforts of life. to be share,
among the producers of wealth, simpl,
from the elimination of the number of non
producers. fall the men now enrolled il
armies and navies were advaniageousIy
employed in productive labor there woult
doubtless be larger division of comforts
and necessaries of life for all, because more
to be divided than now, and no greater
number to receive it just so in the cast
before u.s. Every thousand persons en-
| pioyed IN needless transportation and in
Fictitious commerce are so many subtract
ed from the great body of producers, from
the proceeds of whose labor all must. Of
course, be governed by the magnitude Of
the quotient.
! But, if this be so advantageous, it is
queried, why is any legislation necessary :
| Why would not all voluntarily see and
| embrace it? | answer, because the ap-
parent individual advantage is. often to be
pursued by course directly adverse to the
asserts the contrary of this; maintain
| ing that if every man pursues that course
most conducive to his individual interest
the general good will thereby be most GER
tainly and signally promoted. But to say
nothing of the glaring exceptions to this
law which crowd our statute-books with
injunctions and penalties, we are every
where met with pointed contradictions OF
its assumption, which hallows and blesses
the pursuits of the gambler, the distiller,
and the Gbertine, making the usurer a
saint and the swindler a hero. Adam
Smith himself admits that there are avo-
cations which enrich the individual but
impoverish the community So in the
case before Us. A B is farmer in Hi
nois, and has much grain to sell or ex-
change for goods But, while it is demon
strable that if all the manufactures con-
sumed in Illinois were produced there the
price of grain must rise nearly to the
average of the world, it is equally certain
that A BIS single act in buying and consum-
ing American cloth will not raise the
price of grain generally, nor of his grain.
1t will not perceptibiy affect the price of
grain at all. A solemn compact of the
whole community to use only American
fabrics would have some effect; but this
could never be established, or never en-
forced. A few free-traders standing out,
selling their grain at an advance which
might accrue, and buying "where they
could buy cheapest" would induce one
after another to look out for No. l, and let
the public interests take care of them
selves; so the whole compact would fall to
pieces like a rope of sand. Many one
would say, ''Why should | aid to keep up
the price of produce l am only con-
sumner of it"-not realizing or caring for
it less palpably involved his own; and
that would be an end. Granted that it is
desirable to encourage and prefer home
production and manufacture, tariff is the
obvious way, and the only way in which it
can be effectively and certainly accom-
plished.
But why is tariff necessary when manu-
features are once established? "You say"
says free-trader, 'that you can manufact-
ure cheaper if protected than we can buy
abroad then why not do it without pro-
lection, and save all trouble2" Let me an
swer this cavil:
will suppose that the manufactures of
this country amount to 100000, 900 per
| annum, and those of Great Britain to
$500, 100000. Let us suppose also that
under an efficient protective tariff ours are
produced 5 per cent. cheaper than those
Of England, and that our own markets are
supplied entirely from the home product.
But at the end of this year, 1843, we,
concluding that our manufactures have
been protected long enough and ought
now to go alone-repeal absolutely our
tariff, and commit our great interests
thoroughly to the guidance of "free
! trade" Well at this very time the
| British manufacturers, on making up the
| account and review of their years business,
| find that they have manufactured goods
costing them IS q, 900, 900, as aforesaid, and
have sold to inst about that amount, leay
| ing residue or surplus on hand of SIS ,000,-
900 or S20,000,0O0 worth. These are to be
sold and their net proceeds will constitute
| the interest on their capital and the profit
on their years business. But where shall
they be sold? If crowded on the home
or their established foreign markets, they
will glut and depress those markets, caus-
ing general decline of prices and heavy
loss, not merely on this quantity of goods,
but on the whole of their next years bust
ness. They know better than to do any
such thing. Instead of it, they say, "Here
is the American market Just thrown open
to US by repeal of their tariff; let us send
thither our surplus and sell it for what it
will fetch" They ship it over accordingly,
and in two or three weeks it is rafting of
through our auction stores at prices first,
5, then 10, Is, 20, and down to 80 per cent.
below our previous rates. Every jobber
and dealer is tickled with the idea Of buy
ing goods of novel patterns SO wonderfully
cheap; and the sale proceeds briskly,
though, at constantly declining prices, till
the whole stock is disposed of and our
market is gorged to repletion.
Now, the British manufacturers may not
have received for the whole $40, 900, 900
worth of goods over $14,000,000 or SIS
100000; but what of it? Whatever ii
may be is clear profit on their years bust
ness in cash or its equivalent All
their established markets are kept clear
and eager; and they can now go on vigor-
ously and protitably with the business Of
the new year. But more: they have Grip
pied an active and growing rival; they
have opened new market, which shall
ere long be theirs also.
Let US now look at our side Of the ques-
ton:
The American manufacturers have also
a stock Of goods on hand, and they come
into our market to dispose Of them. But
they suddenly find the market forestalled
and depressed by rival fabrics of attractive
novelty, and selling in profusion at prices
which rapidly run down to % per cent
below cost. What are they to do? They
cannot force sales at any price not utterly
ruinous; there is no demand at any rate
They cannot retaliate upon England the
mischief they must suffer-her tariff for
bids; and the other markets of the
world are fully supplied, and will bear but
a limited pressure The foreign influx has
| created scarcity OF money as well as q
| plethora of goods. Specie has largely beer
j arnnrtad in navment which has com nell ad