The Lambertville record. [volume] (Lambertville, N.J.) 1872-1968, 1889-12-18
From the Anlerican Economist.
EFFECT OF PROTECTION ON PRICES.

Will 1t not be OF sufficient interest 10 your read-
ers to give trustworthy comparison OF the de-
cline in prices In the two countries?
The Hon. VIM. E. Brown, formerly
Chief Justice of the Supreme Court OF
Georgia, Governor of Georgia and now
national Senator from that State, in re-
markaby comprehensive speech OF March |
14tb, 1888, answered in advance most OF
our friends queries.
1t may be remarked that Senator Brown |
is peculiarly representative man, not |
only having filled the above named honor
able positions politically and judicialy |
but also largely engaged in farming and
now is president of the Western Atlantic |
Railroad Company. In that speech, re-
ferring 10 the effect that Protection TO |
home Industries has had and now has on
the nation he quotes his experience in buy
ing 100 tons OF Bessemer steel rails for the
use of his railroad ut $4,000 per ton
some u or IA years ago. In 1888 when
the duty on imports WAS $28.0 per ton he
bought 2O00 tous at $3S. 80 per ton which
he could at the time OF his speaking have
duplicated at $31. 90 per ton, and that 1t
had sold as low as 1927 per ton.
He ascribcd that wonderful reduction
to the fact that Americans stimulated aud
encouraged by the national policy OF Pro
lection had invested immense sums OF
money in plants to produce the article aud
competition between themselves and for
| cipuers had cheapened that article so
essential TO safe, effective and rapid trans
portation, until it is practically cheaper
than iron for the same purpose.
Henry V. Poor editor of the RGttWdg
Manual reports decline in price Besscmer
steel from $l66. 90 per ton in 1866 TO
$2S, 30 in 1885, and this reduction in price
was great factor IN reducing cost OF
railroad freight from one and two thirds
cents per mile per ton in 1855 to two-thrds
of a cent per ton per mile in 1857
Senator Brown concludes his masterful
review of the history of our steel indus
tries under low and a high Tariff by the
following conclusion. ''If by nnfriendly
free Trade legislation you could destroy
the Bessemer etcel factories oil thls coun-
try and turn over the whole business TO
the British manufacturer as / believe some
persons would be glad TO do, 1t would not
be five years, no, not three years until
they would put up the price IN this mar
ket to 500. 90 or even $1,000 per ton. ln
other words, whenever the home supply
is destroyed and all our great railroad in
tercsts in this country are dependent upon
foreigners for their supply of Bessemer,
we are then at the mercy Of the foreign
manufacturer and must pay whatever
price he chooses TO dictate.
Turning TO rice, he quotes the war
price Of $l4.00 and upward per l00
pounds and It's decline under liberal Pro-
lection which stimulated home production
/ to one.duarlcr that rate and deduces the
same lesson that he did from the steel ex.
perience. He then adverted to cut nails
which under a duty of $l.25 for keg OF
100 pounds had fallen by competition OF
| home manufactures stimulated by etfec-
tive Protection to $500 per key of 100
lbs. with similar references.
| Right here some Free-Trade Critic may
remark that Senator Brown is demonstra-
ting too much, as with such an element
of declining prices for the erealio-s OF
labor, sure ruin must await the laborer
But Senator Brown is not thus caught
| mapping, for he further remarks, that
while the influence of Protection in slim
ulating American manufacturers by COM
petition to produce ut the lowest rates,
wages to workmen have advanced, so that
to-day tue American producer not only as
FT~~.bF~ Flmore dollars for days work
a FSYstlr or anlo- Protection times. but
I1a nnar %, doiIa hnvs moro of the nccessar,es
ond injuries of life Take for instance
The article of nails so briefly and pungent-
10 nresen,cd Inv senator Brown. In the
voar 1914 when The duties on imports
.ver.ged less Than seven ner cent. "a. 84)
we are ,old nv The report Of the Massachu.
set,s Rnreau If Statistics for 1885 page
! 900 that the nree ~ 10 nennv was ii
c,s nor Mound and ,hot nal. ma lxers, WAGES
! a. ,ha na.ras, d.te renorted 1917 (see mage
0os wore a M ner dav In 1854 (see
naae a5el under The Influence of Protec.
lion Inc nrice Of nails had dropped to
onaIoma,,rr Tho Free.Trade nrice while
,yocea m nail.makers had advanced TO
sI a ar nearly donble the nav vouchsnfed
" ,ba Free-Trade era
All The foregoing Is in accordance with
tho ,vell.known law of nolitical economy
,ha, nndar rronor p,o,ec,ion ,he tendency
Of ro material (apd in Ills connection
wo consider labor ma n raw materially 10
.dvsnce In nr,ce willie The comnleted
fahric recedes In market value.
| In MI the foregoinv quoted instances
and the MANY more we have in our mind,
The decline In prIce referred to by our
CORRESPONDENT has invariably been initl-
a,ed nv this conn,rv as the logical and
practical sequence Of Protective legislation
Europe- that is to say, England-has
onlv followed orr lead. somelimes ID, cause
,usihheu' ehoub, " 81 ,""s