Shenandoah herald. [volume] (Woodstock, Va.) 1865-1974, 1888-05-04
A DANGEROUS MISTAKE.
New York Tribune.

The theory Of Nr. Mills aud other
advocates OF tariff reduction is that
the manufacturers make too large
prod,s. They give the working
men higher wages than were torn
erly pa Mr.. Nils admits, but be-
cause laJIr has increased in eff
cheney. Mr.. Mills afIirms that
"nine-tenihs Of all the manutac
lures consumed in the United
States could be produced more
cheaply here than in England,D
but that manufacturers, having a
duty OF 100 per cent. or more, take
all the benefit to themselves. On
this theory the Mills bill proposes
to cut down duties generally for
the purpose OF squeezing the water
out Of prices, 80 TO speak-fOrcing
the manufacturers TO be content
with moderate profits. This he be.
lleyes can be done without affect.
ing at all the quantities Of goods
produced, or the wages Of labor,
while the reduction in the cost Of
materials will greatly cheaper pro.
dnctiOD.
Let it be granted that Mr.. Mills
and a great many Of bis friends are
entirely sincere in this belief, aud
will strive with all the earnestness
Of conviction TO lead American
workingmen to adopt it. All the
old llnes of attack on the protective
system are practically abandoned.
The latest form Of assault, 1t is
hoped, will turn American work
ingmen against the tariff, and un-
I'll that can be done change OF
sl stem cannot be expected. Grant.
ing Mr.. Mills's sincerity, Is he not
mistaken 1t would be a fearful
thing for the country to act upon
such "a theory az this, and then TO
find out by the destruction of in
dustries, and the suffering of mil
lions of working people, that it was
all "A mistake. Assuming that Mr..
Mills himself is anxious to be right,
and that those who act with him
do not want to curse the country
by clinging to mistaken theory
without taking all reasonable care
TO assure themselves whether it is
mistaken, let the facts be cOnsid.
cred.
Ii is true that the manufacturers
in this country are realizing I'M
reasonable profits Deal candidly,
Mr.. Mills, and admit that If it were
so, it in any branch of business
profits much in excess of g per cent.
could be realized, an almost unIim-
tied capital would rush into that
business. Money is available here
every hour, to the extent of many
hundred millions, for any enter
prise in which 6 per cent. can be
reasonably assured, aud more, to
the extent of thousands Of millions,
waits in Europe for every invita-
ton of that sort. Mr.. Atkinson,
in the work which Mr.. Mills 50 ex.
tensively quotes, remarks Of the
cotton manufacture distribution of
Products, page 1927: "The business
would extend with great rapidity |
if there were a pos tive assurance |
OF 6 per cent. upon the capital, or a
quarter of cent per yard.p 1t is |
so of almost every other industry as
we'll.
What IS the situation which ey- |
cry candid inquirer may discover
a considerable part of the cotton
mills of this country are now idle; |
many others make no dividends
Quite a large proportion of the |
woollen factories have done moth.
ing for the past year, or are chang.
ing their machinery to other uses.
On the first of January, when the
iron output was unusually large,
there were 2i6 furnaces idle, against
34l at work; more than 80 per cent.
of the producing capacity was even
then unemployed, and now the pro-
portion Is greater. OF the steel rail
mills, which Mr.. Mills supposes to
be maklDgenOrmOus products, many |
are now idle because they cannot
afford to produce at current prices,
and the imports within the past
year have virtually shut out of EN-.
plOyment many thousand working.
men IN that industry alone. What
a miraculous thing 1t Is, Mr.. Mills,
that the protected manufacturers
do not choose to work, and to re-
alize the enormous profits you sup
pose they can gain !
When the honest and candid in.
quirer compares the profits and div.
idends of American manufacturing
Establishments, he discovers that a
great many earn no profits at all
that a great many others are only
able to pay dividends less than the
current rate of interest that the
cases in with large dividends are
scared by exceptional advantages
in location or exceptional skill in
management are but few indeed
a list of sixty representative New
England concerns, embracing most
of the long.estabIished and pros.
porous companies, for ten years