Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1888-10-26
Protection and Wages.

Protection and Wa ceo.
Daily Orcgguiau May 3, Isl
That the value oi capital III the two
countries i substantially equalized Is
apparent from the fact that money can
now be had on undoubied security
where exemption from excessive tax
alton l. assured AT about as low rates III
American as in England. 1t used to be
said that American capital could not
compete with British capital, and that
protection was IL necessary ior American
capital as for American labor. This
part OF the argument IL substantially
overthrow. But the doctrine that our
labor must be protected by duties viz
tuailv prohibitcry, persists still. 1t l.
the stronghold OF the advocates OF pro-
lection. And yet We conceive it to be
an entire fallacy-a fallacy lurking in
ole-sided and partial view OF the
subject.
Inc more foreign goods We take, the
more labor We must employ at home.
To the protectionist this may appear a
paradox; and yet it is one OF the most
certain truths ol political science. We
must pay Tor our imports by oul exports.
We can pay Tor them IN no other way.
Our exports are created by home labor.
The more We buy OF foreigners, the more
home labor, therefore, we must employ
to create the article to pay Tor what We
buv Ii free trade increases our inn
ports. it must therefore increase our ex-
ports, and by consequence must stimu-
late the demand for home labor. In
other words, every foreign purchase
Of.
tie labor to create that with which the
purchase is made. We have the advan-
tage of England in variety and album
dance of raw materials, and in food.
We are substantially on an equality with
her in the matter OF cheap capital.
Since she has food to import. taking
much of it from us, and larger part OF
her raw materials also, than We, and
since her old advantage over us in capi-
tai is virtually at an end, we need not
fear her competition. Our system now
tends to foster home monopolies rather
than to protect the wages OF the work
ipgman. 1t is admitted too, that it bears
hard on Il people situated as, we are on
the Pacific slope 1t at once restricts
our trade with the only customers who
take our products, and forces us to pay
higher prices loI SoouS WHICH, We
are compelled to buy. Since the
adoption of free trade by Great
Britain, wages in that country
have gone up on the whole average more
than one-quarter, and in some depart
ments fully one-half. Experience here
comes in against theory in the matter o.
alleged reduction of wages. But grant
ing that wages might be somewhat re-
hn f,,
it in cheaper goods, which working PEG
pie, as well as others, must consume
Moreover, wages are not great ele
ment in the cost of manufacturing. We
have not the figures OF the census o
1880 and hence we draw from those O
1870, for illustrations on this point
These figures show that wages then were
1910 per cent. OF the value of the pro
duct in the manufacturing, mechanical
mining and fish Industries of the United
States. The value of the material USED
was "a 10 per cent. OF the product, while
the remaining 23.4l per cent. was due te
buildings, machinery and so on. Ii We
call wages 20 per cent. of the whole
value of the product and admit thai
wages are 40 per cent. higher here thar
in England, then the difference is but Il
per CcUt. Oh ~ per CcIlt, UT . per CcIll
of the whole value. Nothing could
show more convincingly that the inter.
ests of domestic labor are not at stake
here to the extent which the protection
lists claim. England lets in raw mate
rial. We tax all raw material from
abroad to protect one interest or an
other. The consequence is an advan
take over us in free materials, which
equalizes, if it does not exceed, any adj
vantage which she can have in cheaper
labor. We can manufacture as cheaply
as she can, if We would avail ourselve:
OF all our opportunities and that without
materially reducing wages either. But
+ as all tariff taxes, like other taxes, mus
OF necessity re-appear in higher commo
dities, Of what avail is it to the working
man to keep up his wages by artificial
stimulants, when at the same time anc
by the same process the manufactured
goods which he must consume are KEEP
up at high rate too?
''YOu might as well say that II you Gu
or q dogs tail and ears the same day h,
has reason to feel highly amused, enter
tained and grateful. rs to say that tarif
ON coal, which enables the coal combina
tion to restrict production, which reduce
the earnings OF the miner and artifcially
puts up the price OF coal, thus dwelling
the cost Of the wOrkinRman'a fuel WA