The Iola register. [volume] (Iola, Allen County, Kansas) 1875-1902, 1888-03-23
THE LESSON OF IT.
NO. I.

the foundation OF the government,
noting the character of the different
laws and merely glancing, without
comment, at the historical reasons for
the many changes that have been
made. 1t may now be worth while to
study these reasons more closely and
see whether or not the experience OF
the past may help US to determine the
best line of action for the present and
the future. And in this second review,
while endeavoring as always to state
opposing views with fai rness. we shall
not attempt to conceal our own firm
conviction that the experience Of the
past century confirms and justifies the
claims made by those who support the
principle of protection.
Previous to the adoption of theConstitu
ton no imposts had been levied. Foreign
goods monopolizel our markets and
competition with them was not at
tempted. Under the protection af-
forded by the very moderate duties
levied in 1889, numerous manufact-
uripg establishments at once sprang
up and during the period that preced-
ed the war of 1912 the country enjoyed
uniform prosperity. Free traders ac-
knowledge the impetus thus given to
manufactures; but they cite this aud
the accompanying general pros
perity as evidence that a "revenue"
tariff s all that is required and that
the tariff of the present day is need
lessly high. In advancing this claim
they forget to take account Of changed
conditions. At the beginning Of the
century foreign goods were brought to
our shores in small wooden sailing
vessels, at great risk. They are now
brought here 10 great steamers at inn
mensely reduced cost, both in time
and in labor, and with minimum risk.
Bearing these changes in mind it will
be seen that ten PEI cent tariff in
1889 was equal to at least a forty per
cent tariff now, 80 that, moderate as
was the apparent rate of our first act
it was in reality, highly pro tective.
Free traders point to the depressing
effect of the reduction Of the war tariff
of 1872 as proof of their claim that |
high tariff is hurtful, giving an arti-
fetal Stimulus to trade which is certain |
to result in destructive reaction.
They forget however, that the reaction
in this instance did no: set in while
the duties were still high. 1t was
only after they had been suddenly and
greatly lowered that distress resulted
and the cause of this distress was the
Tremendous influx Of foreign goods
which the law rates of duty permitted.
In 1915, the last year of the high tariff,
the total value of the goods imported |
into the United States was in round |
numbers twelve millions of dollars. |
In 1916, the first year of the low tariff. |
the imports jumped to the enormous
sum of one hundred and thirteen mil |
lions of dollars. The inevitable result |
of this flood of foreign goods was the
displacement of our domestic wares |
and the destruction of our mannfactur-
ing interests; and the destruction of |
these brought depression and disaster
to the whole country which continued
as long as the low tariff remained in |
force.
But almost Immediately upon the |
adoption of the protective tariff of
1924, the country revived, manufact-
ures were again established and pros
perity re-appeared. Speaking of this
period Mr.. Clay once said that the
severest depression he had witnessed
in the country was during the seven
years of free trade preceding the act
Of 1924, and that the highest prosperity
was during the seven years of prctec-
ton following that act.
This prosperity continued as long as
the protective tariff was allowed to
remain in force. The quantity of for
eign goods imported steadily declined
and they were replaced by American
goods Whose manufacture afforded
employment to labor and created q
market for agricultural products. Bot
the South, giving its entire attention
to agriculture and forgetting that the
prosperity of one section ola country
depends upon the prosperity of every
other section, constantly clamored
against the protective tariff as upjustly
discriminating against it. and in 1882
this feeling found its extreme express
sion in the Modification ordinance of
South Carolina. The prompt and firm
action Of President Jackson soon put
an end to the incipient rebellion. But
the threat of disunion created such ap-
prehension in the North that the
point in controversy was yielded and
Mr.. Clay's compromise measure pro
viding ''sliding scale" by which all
duties should be reduced to twenty
per cent within ten years, was dopted. |
Practically. the same results followed
the adoption of this measure as follow.
ed the low tariff act of 1916. Impor.
tation of foreign goods increased from
SO millions in 1882 to 176 millions in
1886, our manufactures were broken
down, there was no market for either
labor or provisions, and there was
general business stagnation, culmina-
ting in the financial disasters of 1881.