The new dominion. [volume] (Morgantown, W. Va.) 1876-1904, 1889-09-14

of liquor or brands Of liquor to
which they are accustomed for for
eign liquors at the same or even less
prices Moreover it is beyond doubt
that we can produce most of our
spirituous liquors cheaper than they
can be made anywhere else in the
world.
THE GAS AND LOCAL TRUSTS.
The gas, street railway and SINH
lar local trusts fall rather under the
head of natural monopolies, and offer
little difficulties. as rule, to the
municipal governments under which
they attempt to operate Each city,
by its inspection laws, its supervis-
ion and its control of service and
rates, can protect its residents from
imposition.
In extreme cases it is justified in
dislodging monopoly by even as
sumipg to discharge the service itself
for where a particular service in its
own nature partakes of the nature
of monopoly, the "let alone" policy,
which is the ordinary duty of the
State, is rs disastrous to the rights
of those whom the State is bound to
protect as its interposition in other
cases to foster monopoly. But this
is, in my judgment, the last remedy
to be thought of, and justifiablc only
when others fail. Still, it permits
us to dismiss these local trusts from
further consideration.
THE TARIFF THE GREAT MoTnTR OF
TRUSTS.
The existing tariff imposes tax
averaging nearly fifty per cent on
the value of all the dutiable goods
brought into this country, which in
many cases, as in refined sugar and
cotton bagging, we have already
seen, is entirely prohibitory. In
deed, it is avowedly an extreme pro-
tective tariff; that is to say, its du-
ties are not laid TO bring money into
the treasury, but for the very pur-
pose of keeping out foreign products
that might compete with like pro-
ducts made at home. 1t is, there
fore, the nursing mother of trusts.
Almost any highly protected article
where production may be centralized,
like that of refined sugar, in a mod
crate number of establishments can
be made the basis of trust as readi-
ly as sugar Now the hard condi-
ton of the consumer is that the very
purposes for which these tariff taxes
are laid requires that they shall be
laid on the plain necessaries of life.
1t is a familiar maxim that "Protec-
tion, to be available, must be got
cut of the belly and the back of the
great mass of the people, 1t is,
therefore, chiefly in the highly taxed
commodities that supply his primary
wants, and which he cannot, there
fore, forego, that the citizen is find
ing himself to-day levied upon by
the trusts.
THE PROTECTION OF HAMILTON AND
CLAY.
The theory of the protective tariff
of Alexander Hamilton, and after
wards of Mr.. Clay, was that it gave
a premature and temporary assist
ance to young industries to get them
on their feet earlier than they could
of their own strength if subjected to
foreign competition. And Mr.. Ham
ilton expressly opposed excessive
rates as tending to monopoly, and
said that if after reasonable time
any industry still needed protection,
it was proof that there were natural
impediments to its building up in
the country, and it should be aband-
oned. In our centennial year tariff
rates are six or seven times higher
than Mr.. Hamilton first arranged
them in the beginning Of manufac-
lures. Moreover, there is not an in
stance in all that hundred years of
any industry once admitted into the
government hospital that has not at
once become professional 'old sol
dier, and forever afterward whined
with terror or shrieked with rage at
the suggestion that it should again
face active competition in the ranks.
And by both Mr.. Hamilton and Mr..
Clay protection was granted on the
fundamental condition that those
engaged in the fostered industries
would honestly compete among
themselves, so as to give the consum.
er, whose taxes supported them, the
benefit of their cheapest production,
in order that he might be relieved
as soon as possible of the burden of
carrying them.
kTHE PROTECTION OF TO-DAY.
But the theory of those who de-
fend the existing rates is not that of
Hamilton or Clay, but of Henry
Carey, to whom protection meant
not temporary aid to home indus
tries until they could get firmly on
their feet, but permanent and com
plete prohibition of foreign products
the like of which could be produced
in this country. He believed and
taught that it would be beneficial to
us to have the oceans which encom-
pass us turned into sea of fire.
If my venerable friend, Judge
Kelley, who has done me the honor
to write me that he is reading these
papers. happens to peruse this para
graph, he will not object. / believe,
to my saying that both his teaching
as statesman and his practical
work as law maker, in framing our
tariffs since 1861 have been in ac-
cord with the doctrines of Mr..
Carey.
TARIFF CAUSES ovERPRoDUCTIoN.
But the tariff is otherwise respon-
sible for trusts. The high bounties
it offers in many industries cause an
extraordinary rush into them on the
part of those who are tempted by
the promise of greater profits than
can be made in industries pursued
under normal conditions. This rush
leads, sooner or later, to excessive
production, and then, to escape the
loss threatened by an overstocked
market, resort is had to some kind
of combination to maintain prices
and to control supply.
The circle is, first, excessive stimu-
lation; next, excessive production,
and lastly, combinations against the
consumer. know it is strenuously
denied by defenders of our tariff
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