San Antonio daily light. [volume] (San Antonio, Tex.) 1886-1907, 1890-05-19

HOW THEY WOULD AFFECT OUR
MANUFACTURING INDUSTRIES.

MHNUFSC UnINS MUD hIEo.
CouId We Compete Better in the Markets
of the Worid?-Our Cost of Production
The Whole Question One of Labor and
Wages.
The objection most urgently advanced
against Protection to raw materials of
manufacture is that, entering as they do
into so many different processes of manu-
facture, the price of the finished article
is increased to such an extent that we
cannot successfully compete with foreign
producers of like articles In brief, it is
argued that if we had access to free raw
wool we might compete in our finished
WOODEN fabrics with England and the con-
tincnt. If we had free iron ore, our fin
ished products, which contain large
amounts of iron, could compete with like
foreign made commodities. If all our
raw materials were free, our manufaC-
tured articles would find an extended
market. while our own people would be
benefited through receiving cheaper man
ufacturcs. These arguments 50 plausi-
bly, urged, depend, however, upon two
assumptions. The first is thatif the duty
on rev materials was removed the price
Of such raw materials would be perma-
nently reduced by the amount Of duty
levied.
The second assumption Is that, with
raw materials Of tn. same value as those
of foreign manufacturing countries, we
could compete with them in the markets
of the world. These two assumptions
we will examine in the order given. BY
way of Illustration we may cite the wool
growing Industry. The tariff on raw
wool prevents the foreign producer from
destroying our wool growing industry.
If this duty were taken off, the foreign
producer could send his wool into our
ports at prices which would destroy the
American industry. After the Ameri-
can industry was destroyed that part of
the demand before supplied by the
American producer would be transferred
to the foreign producer. With this in
creased demand for raw wool its price
would naturally and inevitably rise.
shown in the case OF TIE mining industries
of Great Britain, which, in some instances,
have been carried on at a positive loss To
their owners, in order to enable them 10
destroy American competition. In a re-
port of the commissioner appointed tot in
quire into the condition of the mining
districts of Great Britain, in 1854, we
find the following language used
Il believe that the labOring classes
generally in the manufacturing distriCS
Of this country, and especially in the
iron and Goa! districts, are very little
aware of the extent to which they are
often indebted for their being employed
at all to the immense losses which their
employers voluntarily incur in bad times,
in order to destroy foreign competition,
and to gain and keep possession of for
eign markets. Authentic instances are
well known of employers having in such
times carried on their works at loss
amounting in the aggregate to three or
four hundred thousand pounds in the
course of few years"
After this competition has been de-
stroyed, the English capitalist not only
resumes his usual profits, but recoups
himself for losses sustained in destroy
ing his American rival Revcrting to
the illustration of wool, another feature
of this same assumption is shown. The
American wool grower, encouraged by
reasonable Protection, introduces i'm
proved breeds Of sheep, and thus in
creaseS the average clip per head. As
this clip is 50 increased there results a
greater and more valuable product. This
increase must 90 to somebody. Either
the wool grower will retain it permanent
ly in greater profits, or competition en-
tering will lower the prices to an average
return for labor and capital expended.
1t is a law Of production which Free
trader and PToteCtiouist. must alike recog-
nize that, when cal tai Is as mobile as
now, the profits in any protected indus
try wiz not permanently remain above
the profits gained in other industries,
whether protected or not, which require
substantially equal capital, labor. skill