Middlebury register. (Middlebury, Vt.) 1886-1937, 1888-10-19
THE TARIFF.
mir. Battells Letter Continued. |


Gle entitled "Pleas for Protection Exam
ined," we quote again:
IS. Protection promotes native indus |
try by providing fresh channels for the
employment of native labor. 1t would
be well if this were all, but truth requires
the addition of the following words: ut
at the same time destroys more of the
old channels for the employment of ma
tive labor than it provides new Such is
the fact, and in its suppression lies the
fallacy. Ceasing to import foreign goods
means ceasing to export those native
goods which were sent in exchange for
the former, and throwing the producers
of such native goods out of work. 4
country that adopts the protective sys-
TEN ceases to import and produces for it
self certain articles which we may call
Y Y L, and thus capital and labor ac-
quire fresh channels for employment
So far, so good; but this good inseper-
ably brings with it an evil that far more
than counterbalances it. When the ma
ton in question imported the articles y
y Z, it exported in exchange for them
other articles of native manufacture
which we may call A b c. But when
the nation ceased importing the former,
it necessarily (for imports and exports
are, as we have seen, correlative) ceased
exporting the latter. What is the conse-
quence? The articles A G are no long
er exported, or are exported in diminished
quantities, and the capital and labor
which produced them remain unem-
ployed. The capitalist can afford to
wait: but what of the labor-sellers who
tive industry being promoted, it is the
old channels for employment that are
destroyed
Eventually, the displacement is par
TALLY remeded by the absorption of the
disorganized capital and labor into the
new industry. But is the change which
has been effected through this displace-
ment benefit? Certainly not. Quite
the contrary. The advantages which the
division of labor confers have been sci
t aside. The capital and labor which were
employed in the production of articles A
e B C, with which the foreign producer
D could not compete, are now diverted tc
: the production of articles X Y Z which
/ cannot compete (else, why protective
y duties?) with the production of foreign
/ ers. In other words, men are taken away
hat Il hot bo, oil
| ers and set to work on what others cal
do better than they can. The capital anC
labor which used to be employed remu
neratively are now producing a los
which has to be made up by public
= subvention in the shape of an import tax
"f, instead of taking the instance of
;, nation that is adopting the protectiy
u system, we take that of protected ma
II ton that is adopting free trade, we ar
: rive at analogous results. Such nation
y by abolishing the import duties on Ger
u tain articles Y Y Z imports them fron
! abroad, where they are cheaper, and dis
II continues their production at home. Thu
/ capital and labor lose some of their oil,
u channels of employment But let us lool
e at the other side. Now that this sam
II country imports, instead of making, tn
u articles n Il, it necessarily exports il
J. exchange for them (for every increase o
ID imports necessitates a proportionate in
IL crease of EXPORTS other articles of ma
Is tive production, which we may call A
IL n thnc ohn rf a.,
y ment are created. The capital fixed an
u floating, and the labor, which have be
y come disused by ceasing to produce tn
y articles n y L, are utilized in producin
?. the articles A and c for which an expoI
L demands created by the importation o
T. the articles y y Z. And now let us il
quire-Is the change which has been e1
t. peterborough this displacement a benz
E. fit? Yes, and a very decided one. The sam
y capital and labor that was before vi
$ probably employed in producing tn
III protected articles Y Y Z, which the fol
Is eigner could produce cheaper or better
are now profitably employed in produt
ing the articles A B c, which suit the TO
eigner's market, and which he readil
IL takes in exchange for his own. Henc
IT, the labor and capital which used to |
III devoted to losing are now devoted to r.
vi munerative industries, the consumers Ell
III joy the benefit of cheap goods instead {
II dear ones, the division of labor is effec
III ually carried out and a great impulse
ee given to foreign trade, In this WaV N
IT. producer gains, the consumer gains, tt
IT. national wealth is increased, and the gel
VI eral commerce of the country is extent
IL ed.
=, "The fresh industries which protecto
-. creates are created at the expense of Il
~ staple old industries which protectic
y" curtails. The former can only exist b
taxing the entire community; the latt,
-alf