The Ohio Democrat. (Logan, O. [Ohio]) 1886-1906, 1889-05-11
NOTABLE CONFESSION.
A Remarkable Admission Made by the
Iron and Steel Association.

A Remarkable Admission Made by the
Iron and steel Association.
II is an inexplicable anomaly that
capitalists who have invested in man
ufactures 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-
lation of the investment OF capital in
new plants, tho investors in which are
eager to share the temporary profits.
Thus the time soon arrives when the
iron and steel mon must either manu-
facture at loss or suspend production
until the glut in tho market shall have
been relieved. Tho loss sustained by
investors onSctount 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 statements "In 1885," it says,
there was no appreciable check to the
general impetus which had been given
to the European iron and steel indus
tries in 1887. Without a 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 a
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 il now the advocate
of a high protective tariff. How it
can reconcile the condition" which
it describes in the foregoing para
graph with its pet theory of the benef-
cence of protection, is simply incon-
ceivable. 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. Thisis an unquali-
fled 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 its 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 haUing deliberately limited them
scIccs 10 he home ma1ht through The
policy Of protection and having pro-
luced large surplus, becayse of The
stimulus of protection, were
obliged to suffer from reactionary
Influences of an abnormal and ruin
ous competition. They could not re-
ieve themselves of those fatal in
iuences by competing in foreign mar
Sets, for the log-rolling tariff had
'aised the cost of production to
point at which it was impossible for
hem to sell in Il foreign market ex-
,ept at loss. 1t is high time that
he mere pride of opinion which |
holds many iron and steel manufact-
lrers to the fatful fallacy of protec-
ion should yield to the practical
of economic facts such |
IS that presented in the para
'raph copied above from the annual
eport of the American Iron and Steel
association. - Harrisburg CPa.) Pa
riot.