Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1889-06-27
PROTECTION FOR TRANSPORTATION,

The theory of our protective system is
based upon the doctrine or idea that the
political independence of our nation would
he neutralized by the commercial depend
ence which would follow the policy of
free trade. At the close of the war for
independence something more than 100
years ago, the commercial conditions ex-
listing in England and America presented
strong contrast. England was densely
populated country, with superabund-
ance of cheap labor. England was a
country Of idle capital, producing a low
rate of interest. These conditions OF
abundant and cheap labor, large volumes
OF idle aad cheap capital, are the most
favorable to the development of manufact-
ures that could possibly exist
On the other hand, America was a
sparsely settled country, deficient in labor,
deficient in capital, conditions which make
labor high and the rates of interest usur-
lous. These conditions are most unfavor-
able to the development of manufacturing
industries.
To protect country where labor was
scarce and high, and where the ruling
rate of interest was high, against the inev-
liable superiority of manufactures by a
country where labor was abundant and
cheap and the rate of interest low, resort
was had to the protective system.
The system finds its greatest popularity
to-day in the opinion that it maintains in
Us an industrial independence. We have
upon this continent at the present time a
formidable competition in the carrying
trade. A great transcontinental railway
has been built from ocean to ocean in the
Dominion of Canada, spanning the con-
tinent upon British soil and under the pro-
lection of the British flag That great
transcontinental highway is a competitor
1or transcontineutal commerce. 1t is
2lready in negotiation for the purchase Of
weak and failing systems of transportation
IN the United States The Canadian sys
TEN will soon penetrate our territory by
connecting lines, trunk lines and feeders
The greatest possible subiugation which
any people may know, aside from political
subiugation, is that which flows out of a
monopolized condition of the CARRYING
trade. Transportation across the continent
within Canadian lines is carried on where
the general grade of cost is cheaper in
everything. 1t is prosecuted under essen.
italy English conditions, with the rates
of labor and interest low, and with the
cost of materials which enter into the con-
struction and operation of railroads at a
lower grade than in our own country
England has already monopolized the com.
merce of the seas, and if the competition
aow offered by the Canadian system is not
checked, she will monopolize our inter
state and continental commerce as we'll
If there Is any value in the protective
system, it applies to the carrying trade
with the same urgency as to any other in
dustrial pursuit.
In another colum we print liberal ex-
<ract from an open letter to the Senate
Committee on Our Relations with Canada,
written by A. n. Towne, of the Southern
Pacific Company. Its thoughtful perusal
will convince every candid mind that the
Canadian system of railroads is a more
serious menace to the commerce of the
United States than any free-trade PROPOSE
ton could possibly be. Mr.. Towne's letter
presents the cause for our country clearly
and forcibly. 1t is in many respects a re-
markabie paper.