The Louisiana Democrat. [volume] (Alexandria, La.) 1845-1918, 1889-05-22
NOTABLE CONFESSION.
Remarkable Admission Made by tho
Iron and Steel Association.


Iron and Steel Association.
1t is an inexplicable anomaly that
capitalists who have invested in man
ufacturcs of iron and steel have not
long ago discovered that the high tariff
instead of comforting lasting benefits
upon them works to their decided in
Jury in the end. While its immediate
effect is to enhance the prices OF their
products it operates finally to cause
an overproduction through its stimu-
Iation of the investment of capital in
new plants, the investors in which are
eager to share the temporary profits.
Thus the time soon arrives when the
iron and steel men must either manu-
facture at q loss or suspend production
until the glut in the market shall have
been relieved. The loss sustained by
investors on account of overproduction
soon eats up the profits made before
competition became abnormal. 1t is a
practical illustration of the allegory OF
Pharaoh's lean kline eating up the fat
ones.
The American Iron and Steel Asso-
citation in its annual report just pub
lished makes the following remarka-
BILE statement: 'In 1885, it says,
there was no appreciate check to the
general impetus which had been given
to the European iron and steel indus
tries in 1887. Without single ex-
ception every leading iron-making
country in Europe increased its pro-
duction of iron and steel in that year
and sold its products at increased
prices. 1t is noteworthy and remark
able that this healthy condition of the
European iron trade existed during q
year when our own iron and steel in
dustries were suffering from serious
reactionary influences, and when our
imports of European iron and steel
were much less than in the preceding
year." The american Iron and
Steel Association has always been
and presumably is now the advocate
of high protective tariff. How it
can reconcile the condition" which
it describes in tie foregoing para
graph with its pettheory of the benefi-
ccnce OF protection, is simply incon-
ceivablc. The admission that the
suffering Of the iron and steel indus
tries OF the United States from seri-
Gus reactionary influences" in 1888
was not due TO imports of European
iron and steel, is clear and explicit.
The association declares that it is
noteworthy that these SERIOUS reac-
tionary influences" were felt at time
"when our imports OF European iron
and steel were much less than in the
preceding year, This is an unquali-
fed confession that importation of
foreign iron and steel could not have
had any thing to do with the ''reac.
tionary Influences to which the asso-
citation refers. What, then, is the cause
OF the depression in the iron and steel
trade?
European iron and steel manufact-
urers are not coddled by high pro-
tective tariffs, yet it is admitted by the
American Iron and Steel Association
that every leading iron-making coun-
try in Europe not only increased its
production but sold it's products at in
creased prices, while the highly pro-
tected American iron and steel indus
tries were suffering from serious reac-
tionary influences when our imports of
European iron and steel were much
less than in the preceding year.
European manufacturers of iron and
steel did not sell in our markets as
largely as before, yet they increased
their production and their profits.
They did not sell in their own mar
kets only, but in the neutral markets
of the world. American manufact-
urers having Deliberately limited them
seiUss 10 The home market through the
policy Of protection and having pro-
duced large surplus, because of The
unnaturat stimulus of protection, were
obliged to suffer from reactionary
influences of an abnormal and ruin
Gus competition. They could not re-
lieve themselves of those fatal in
fuences by competing in foreign mar
kets, for the log-rolling tariff had
raised the cost of production to
point at which it was impossible for
them to sell in foreign market ex-
cept at u loss. 1t is high time that
the mere pride of opinion which
holds many iron and steel manufact-
urers to the fatful fallacy OF protec-
ton should yield to the practical
demonstration of economic facts such
as that presented in the para
graph copied above from the annual
report of the American Iron and Steel
Association. - Harrisburg Pa) Pa
riot.
nERN~DATir