Belmont chronicle. [volume] (St. Clairsville, Ohio) 1855-1973, 1890-05-29
FREE RAW MATERIALS.
THE EFFECT THEY WOULD HAVE
UPON OUR COMMERCE.

Commerce differs from other industries
in that it depends upon, or exists on ac-
count of, the relation to one another of
other industries. Its Office is not to
produce, in the sense of changing the
form of materials. 1t only changes their
place. 1t is wrong to identify commerce
with trade between nations. Professor
R. E. Thompson defines commerce clearly
when he says that it is ''the interchange
of services or Of commodities between
persons or groups of different industrial
functions"
In a rude industrial state where one
individual is engaged in doing what in
a higher industrial state Is divided into
several distinct occupations, there can
be no active commerce, but commerce
arises and increases with the division of
labor attendant upon varied industry.
With the specialization among workers
and the subdivisions within industries,
the industrial function of each indi-
vidual is narrowed, and with this mar
rowing of his industrial function his de-
mand for the services and commodities
of others is increased.
If, by reason of the creation of new
interests in any section, a more varied
industry is established, renewed activ-
ity will show itself in the conduct of
commerce.
1t is undoubtedly true that if all the
claims made by Free-traders in reference
to production are valid free raw mate
rials will increase the amount of ocean
transportation; and it is but fair to sup
pose that under a system of Free-trade
| the foreign commerce would be greater
than at present. The increased importa-
tions from other countries. resulting
from a policy of Free-trade, would oc-
casion increased activity in foreign ship
ping. The carrying trade of the world
is now in the hands of England. In 1882
the total earnings of all countries arising
| from shipping amounted In round num-
bers to $685., ,000,0O Of this sum British
ships received S36S, 100000, or So per
cent The United States received $780,
900, 900, or less than 20 per cent
When we add TO this statement the
| fact that three-fourths of the tonnage of
the United States is engaged in the coast
wise and fishery trade, and the remain
ing one-fourth in the carrying trade, we
can see how small fraction of any in
creased activity in the carrying trade
would come to the United States. Any
fiscal policy we might adopt which tends
to increase oceanic commerce would be
of direct benefit to the commercial inter
ests of England on account of her more
efficient merchant marine. It matters
not for our present purpose what is the
reason of her superiority on the sea, but
it could be readily traced In a great
measure to subsidies and the lower wages
of her seamen. Our policy of Protection,
which offers to all industries the condi-
tions of successful production, and to la
Dor the highest possible rewards, insures
a healthy commercial activity within the
United States.
If there is one fact which has been es-
tablished as the result of sound economic !
investigation it is that under the modern
development Of industry the greatest
measure of welfare to our nation cannot
be secured without varied or diversi- |
fed industry. With our present popula-
ton we are nation of some twenty
millions of workers. All these differ in |
their capacities and tastes Some are
not productive when engaged In agricul-
ture. Others will not find their full de-
velopment outside the mines and fac |
tories The diversifcation of industry, |
which offers to each the opportunity of
the greatest development and production
that the natural limitations of his facul- |
ties permit, will give us the highest de-
velopment and largest production as
nation. We want to see something like |
a balanced union of the four great in |
dustries.
1t is not to be supposed that these will |
grow equally, for conditions will cause
greater extension of one than of an
other. But it can be expected that
through wise Protection industries which
are fairly capable of permanent prosper
ity may be offered favorable conditions
Of development. With a policy Of Free
trade one industry grows and another
languishes. The one industry which |
possesses the greatest relative advantages
over that industry among other trading
nations will be developed and others neg
lected.
It is possible that in some countries,
under certain conditions, this may be
best. These conditions do not exist in
the United States today. Those parts of
the United States which have the most
varied industry show higher annual in
come to the farmer and greater returns
to farm laborers. Some sections of our
country, notably the south, in which
single industry has been dominant, have
not acquired the wealth which has come
to other sections, ner is the wealth SO
widely distributed. These sections, with
rich mineral deposits and extensive for
ests, have clung to agriculture and neg
lected their other resources. Those who
look for new south, if they find 1t at
all, will find it upon the basis of a new
industrial organization, brought about
largely by the Protection afforded to her
raw materials
If the principles of Free-trade be true
and final, an encouraging prospect is not
presented to workingmen. England has
practically Free-trade, and her laborers
in the factories and in the mines get mis-
cradle wages which compel the adoption
of low standard of living. Her farmers
are not prosperous, and the Irish peas
antry, who prospered in their own coun-
try under protection, and now prosper in
ours, fare even worse. In 1885, with
population of $4,000, 900, England had
.7sO, 900 paupers, and many more on the
verge of pauperism. The United States
In 1880, with population of 50,000,000,
had IS, 900 paupers.
The whole argument of Free-trade is
that, by directing our energy to the pro-
duction of those articles which we are
especially adapted to produce, we can
buy those articles which we need and do
not produce with less expenditure of
labor and capital than if we were to try
to produce them ourselves. Free-trade,
then, tends to national specialization of
industry. Protection tends to national
diversification of industry.
"With a perfectly Free-trade," says
Cunningham, ''it would probably be i'm
possible for any country to refrain from
specializing while the country that was