The Brookhaven leader., 1889-09-12
PROTECTION AND TRUSTS.
MonopoIistic Combinations Made Possible
Only by High Tariff


Only by a High Tariff
We have often stated the argument
against industrial trusts, and one OF
the arguments against high tariff is
that it favors their establishment.
Trusts are more numerous and power
full than ever, and protection has re-
Gently achieved signal victory. Dur
ing the campaign the large dependence
of trusts upon protection was plainly
demonstrated, and it will hardly be
contended that if the protective policy
had been defeated at the polls. trusts
would have continued to multiply, eX-
cept upon the belief that there would
be no serious disturbance of the tariff.
The relation of high tariff to trusts
is evident and simple. A high tariff
discourages importations of protected
manufactures. Such Encouragement
is supposed to secure the home mar
ket II, then, the existing domestic
producers OF protected manufacturers
can agree to combine instead of COM
pete. they can destroy domestic COM
petition, and command the market at
their own prices. In a period OF
tendency to the aggregation of capital
this result is quite sure, as experience
proves, to follow high tariff. Such
tariff is expressly designed to secure
domestic monopoly. But that mo-
nopo}y, once established, will by its
own law tend TO its own aggrandize-
ment. Defended from foreign compe'
titlon, it will strike at the domestic
competition which remains.
This is the actual situation, and 1t
has naturally alarmed some of the
warmest friends of high tariff, who
see plainly the dangers OF trusts.
They see that they destroy the funda-
mental argument for a high protect
i've policy, which is that it tends to
diversity industries, and that DIVERSE
fl ed domestic industries are indispen-
sd BILE to a great nation. Consequently,
even if high tariff inevitably en-
hances the price of articles which it
excludes from importation, the in
crease should be periodically borne
duction and the free and fair COMPETE
ton of domestic industries for the do
nestle market will presently diversity
| industries and lessen prices. dhis is
the great argument of hig yrOtect-
i've policy. But the natura, develop
ment of that policy discredits it. This
| is denied By some of its ardent friends.
| But it is obvious. The very fact OF
| the rapid rise of trusts illustrates it.
| Undoubtedly wise and humane view
| of a high tariff regards it not as a de-
vice of taxing the many for the few,
| but as a National benefit. 1t is a
theory that nation may we'll pay a
| high price for its industrial independ-
ence of the rest of the world, and
that patriotism should persuade it's
citizens to pay, at least for time,
higher prices for certain commodities
than other nations pay, in order to So
cure the immense advantages of indus
trial independence. This is the most
engaging, because not wholly a mer.
cenary argument for a high tariff.
But it is sentimental, not practical.
In practice, just in the degree that a
high tariff tends to secure that indie
| pendence, the independence is abused
to the selfish interests of class. The
abuse is expressed in the word trusts.
Are they patriotic? Are they formed
for the public benefit or for private
advantage Are the prices which,
like all monopoiies, they can COM
mand, the price of greater National
Independence or tribute paid to mo-
nopolists? Yet are they not in this
country the simple, natural and in
evitable result of the industrial stu
alton produced by high tariff? Is it
! supposed that except for such tariff
they would be generally organized?
The natural corrective is foreign COM
petition. II it be argued that such
competition would merely tend to in
ternational trusts with the same ends
in view, that is only to say that the
evil would become so vast that it
would be prohibited as against public
policy. Laws to prevent combina-
lions to raise prices are proper and
familiar But the discussion of the
subject of trusts will inevitably deepen
the conviction that high tariff, by
its necessary results, produces the eff
fects of such combination. -Harper's
WeelSlv find