New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-04-29
ARTIFICIAL MARX ETS.

"The Chicago News" endeavors to make it
appear that, according to tho leading pro
tectiye Journal" TIE TRIBUNE the natural
price of wheat is "its price in London and
Livelpool.D The distortion here is so glaring
that it ought to miSlead no one, and yet 1t may
be cXpedient for the benefit of others who IN
sist that price established under the operation
of q protective tariff must be artificial price,
and as mschievous as the prices dictated by
grain gambling, to consider the distinction
briefly.
Grain gambling might control the markets of
Liverpool and London, and establish purely
artificial prices there, as we'll as at Chicago.
Whether more money would be required is not
now important Established in the same way,
the price would be in every respect rs " artl-
fetal" Objectionable and dangerous, SO that it
involves deception to imply that the market
on either side of the ocean is necessarily natural
or artificial. A price is artificial wher it does
not express the desire of anybody who wants
wheat except Us the gambler wants the chips
which represents the gains in his game. 1t is
natural when it expresses the desire OF those
who want actual wheat for consumption in
comparison with the desire Of those who have
actual wheat to sell.
The person who bets on the chances of gam
bling game is fiat or lamb. AS the professional
camester "corrccts the luck" by brace boxes,
marked cards and loaded dice, the operator
manufactures the price on which he bets and by
the brute force OF more money than those can
command who are trying to manufacture prices
the other way When the footpad with thick
stick offers the traveller nothing for his watch,
he manufactures price for 1e watch which
is exactly as natural as the price fixed for the
bushel of wheat by mer who are for the moment
in any market able to buy more than anybody
else can sell, or to sell more than anybody else
can buy. That market for watches is artificial,
and the Chicago market for wheat during most
of the last wear has been artificial in the same
sense.
"But." says the free-trader, that is Just
what the tariff does it enables the manufact-
urer of particular article to charge Just what
he pleaseso Not at all, because it leaves the
field absolutely free to every other manutaci-
nrer in the country to make the same article, and
to sell at lower price if he likes. There is no
| MONOPOLY for anybody, and the price made eX-
| presses, not the power of some one to mark up
a ouotation in order to win bet, but the actual
desire of consumers compared with the desire
of producers and holders. The producer is re-
strained in his charge by his knowledge that
Others can make the same article, and at u
certain price.
"Stll, producers can and do combine to fix
prices and restrict production" That IS they
combine to defeat the very object Of the pro-
tectivc duty, which is to encourage production
and secure permanent cheapneSs. SO long as
they are able to defeat the tariff, they can and
do establish prices that are not natural. Only
the protective law exposes them to far greater
probabilities of ruinous competition from other
people who have the power to produce, and
who are equally assured of shelter against
foreign competition. Hence it results that IN
almost every case successful combinations 90
control prices have been in articles the pro-
| ducti0n of which il either not protected or not
affected by protective duties.