Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1888-07-20
THE HOME MARKET DELUSION.
What Regulates the Price of American
Farm Products.
THE EVIL EFFECTS OF UNNECESSARY
TAXATION.

THE EVIL EFFECTS OF UNNECESSARY
TAXATION.
| To THE EDITOR: The Trainer of
the Chicago platform, which as nearly
as possible would realize the Utopia of
the Irishman S dream of 'whiskey at
shilling a gallon and no hanging for
stealing" declares in a speech now
/ being sent in ton lots over the
country: THE foreign markets for
/ agricultural products is one of the de-
/ lusions of free trade. If it ever had
any real substance as against a good
home market that has long since dis
relevancy of these remarkable SEN
fences to the discussion of a bill pro-
posing a seven per cent. reduction in
our tariff taxes. But | do not wish to
Introduce special pleading in consider
ing questions which should have for all
of us 4 meaning far more serious than
mere party advantage or personal gain.
We may refuse to see their meaning.
/ We may see in them only the means
of gratifying personal ambitions or
enjoying a brief hour of political tri-
umph regardless of the evils that tri-
umph may bring in its train. We
may labor for mere party supremacy
or self seeking, forgetful that this ex-
pertinent of self government is Deepen
dent for its success upon the honest
endeayor of each for the good OF all.
In considering Mr. Mckinley s state
ments, therefore, | shall overlook the
obvious fact that the seven per cent.
reduction proposed by the Mills bill is
neither free trade nor even a tariff for
revenue only.
shall endeayOr to show that a for
eign market, that commercial inter
course with foreign nations and sym
pathy with their peoples are the fun
damental factors of civilization and
progress; that hermitage for a nation
is as hurtful as for man; that with
out a foreign market our course would
be rapidly downward in that which
now constitutes our strength and our
glory the intelligence and character
of the people.
Let us, therefore, inquire regarding
this delusion of foreign market
for our agricultural products. The
latest official returns we have concern
ing agricultural products are found in
the census of 1880. We find that 30
per cent of the agricultural products
Of the country in 1880 were sold in a
foreign market. TO avoid any obec-
ton that the year 1880 was exceptional
IN that regard, | shall assume that not
over % per cent Of our farm products
are at present sold in foreign market,
the exact per centage being wholly i'm
material in demonstrating the fact
that this "deluSiOn of a foreign
market is the only thing which now
stands between the farmer and actual
ruin. That it not only makes it pos
sible for him to sell his products, but
that 1t establishes the price at which
he must sell them if he sell them at
all; that without it our farmers would
be obliged to lose the value of one
fourth OF their crops, or reduce the
productive area of their farms 25 per
cent. AS in other matters relating to
the protective system all honest diff
ticulties and decisions " result from
vague and indefinite reasoning.
Let us see as clearly and definitely as
we can what market the farmers of
these northwestern states must RELY on:
where their products 90 to, what fixes
the price for them, and in that way dis
cover the value to them of McKinley's
" delusion." Every farmer knows
that the latest news from Chicago de
termines the prices in the local market.
There is in every local market GER
tain amount of home demand, but
prices are in no way affected by the
home market. The surplus over and
above the needs of this home market
must go to Chicago-and hence Chi
Cages prices must rule in the home
market. What determines prices in
Chicago? Again we find there a large
local demand, an extensive home
market but, as with the local or home
market where the farmer sells his
wheat, this larger home market at
Chicago, large as it is, has nothing to do
with fixing prices. Chicago must again
look beyond the home market-for it
buys more than the home market
needs. Chicago has behind it the
great wheat and corn growing states
of this country. 1t has before it the
nations of Europe and their needs.
Its reports from the local centers of
the northwest giving condition of
crops, the probable and visible supply,
form one great factor in the problem
of price. Its cablegrams from Liver
pool and London regarding this - de
fusion of Mr.. Mckinley's for
eign market are the second great
factor in establishing the price the
farmer receives for his products. The
needs of the home market are con
slant, and as it cannot consume the
total supply, it cannot establish or in
tluence the price of farm products.
Chicago does not and cannot pay one
price for IS bushels of wheat for the
home market and another price for 25
bushels for the foreign market. 1t
buys the products of the northwest
knowing that a certain percentage of
them must be sold in A FOREIGN market