The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1888-10-27
WOOL AND TRUSTS.


WOOL AND TRUSTS,
One OF the finest contributions 70 the
pending great debate on the tariff ques-
tion was the speech of the Hon. Seth Low
at Cooper Union before the New York
Reform Club. Mr.. Low, as most of our
readers are doubtless aware, Is Republican,
and though the city of Brooklyn Is usually
democratic by from 10000 to 10000 ma
jority, he has been twice elected mayor OF
that city, and has been the most efficient
and popular chief magistrate the city has
probably ever had. But though lifelong
republican, Mr. Low is tariff reformer-
not free trader-and as such was In full
accord with his party, which at every ma
tional convention for the last twenty years
had pledged itself In favor Of tariff reform,
up 10 the last convention at Chicago. That
body, "out Of sheer antagonism 10 the
democratic party forced their own party
into the extreme position of opposition TO
all tariff reform. To go with his party to
that length, Mr.. Low says, would compel
him To sacrifice intellectual honesty and
as, In the pending contest, the question of
tariff reform is squarely presented, he is
compelled 10 take sides with Cleveland and
the democracy.
We :shall not undertake 10 follow Mr..
Low through the whole of his very able
speech, which is quite lengthy, but will
try briefly 10 give the substance of his
points on two important branches-free
wool and trusts
Home grown wool has been protected In
this country, with short Intervals, since
1894, and the singular fact is noticeable,
that the periods Of least protection were
the periods In which the manufacture of
woolens flourished best, and prices of
wool were highest. Since lS6athe protec-
tion of wool has been exceptionally high,
and as compensation for such tax on the raw
IN aterial, the protection of the manufac-
turer has also been high, yet the wooden
manufacture stumbles and halts today to
such an extent that the friends of the tariff
propose to add las the senate bill does
higher duties as the cure all for Its troubles.
This is based on the notion that further
duty will increase the price Of the domes-
tic product. ~ challenge that claim"
says Mr.. Low, "for this reason among oth-
ers
The duty upon foreign woods manifestly
restricts the extent 10 which our manu-
features can be purchased in foreign mar
kets. The absence of this competition
depresses the price of wool In those mar
kets. Precisely to the extent of this re.
therefore, the effect of our duty
upon foreign wool is to depress Its price.
| have heard such depression estimated as
high as 1915 per cent. This depression
not only gives to foreign manufacturers
with whom we compete, their raw mate
rails cheaper than they are entitled to 1t,
but our domestic wool Is lowered in price
by the foreign wool, which In Its turn has
been abnormally depressed In value
through the operation OF the very tariff
that is meant for the protection of our own
weol growers Domestic wool, of course,
Is higher by reason of the duty than 1t
would be If, without duty, IL had TO COM
pete with foreign woods at todsys prices;
but the contention is that, were the duty
removed, foreign woods for the reason
given would rise In price. Our domestic
wool would thus escape the depressing in
fluence of abnOrmally cheap foreign woods,
which 1t now feels despite the tariff. In
other words, our wool growers at present
get the benefit of only part of the duty on
wool Even this benefit they get at the
cost of restricting the manufacture, thus
limiting the demand at home for their own
product.
On the subject of trusts, the argument
of Mr.. Low is equally trenchent. The
claim of the high tariff advocate, ne says,
Is, that although protection at the outset
largely increases the cost of the manufac-
tured article, ultimately domestic compe.
tition reduces the price almost to the level
of the imported article. This argument
may have been good for time, "but," says
Mr.. Low
t. the widespread development of
trusts and kindred combinations TO throttle
domestic competition have deprived the
high protectionist of this plea This
margin between the cost In the presence of
domestic competition and the cost as per
mitted by the present duty, after domestic
competition has been stifled, Is precisely
the margin upon which these combina-
lions feed. II is not to be denied that there
are such com binations in articles not affec-
ted by the tariff, but 1t will be found that
In most cases, II not in all, these articles
enjoy a natnsal protection--that is TO say,
a freedom from foreign competition, by
the gift of nature, quite as effactual as the
protection afforded by the tariff. Whether
or not, therefore, the tariff Is the cause of
these trusts and com binations 1t is perfectly
clear that as TO such OF them as are pro-
tected by the tariff lowering Of the duty
furnishes ready and ample remedy"
Mr.. Low is equally forcible In his treat
nent of the wage question, demonstrating
that the tendency Of excessive tariff taxa
ton Is Inevitably to lower rathr than TO raise
the,standard Of wages. But We have no space
to follow him further, His conclusion Is,
from a careful study of the whole question,
that the mills bill, with Its free raw mate.
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