The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1890-03-08
PROTECTION FALLACIES.
Hon. Hugh McCulloch Reviews
Blaine and Gladstone.
ayETERAN FINANCIER'S OPINION

sne Venerable Ex-Cabinet Onicer Draws
Ie,wons from the History Of the United
states-why Panics Occur why Tarih-
Cannot Cause Prosperity.
The North American Review for January
contained an article by the Right Hon. w. T..
Gladstone advocating free commercial inter-
eourse between nations and "a reply by the
Hon, James G.. Blaine which have excited
treat interest. The New York Times has
sow presented reply to Mr.. Blaine by the
venerable banker, Hon. Hugh McCulloch'
founder of the state bank system that pre-
vailed in Indiana Just before the war, comp
kroller OF the currency during part OF the
war, secretary Of the treasury under Presi-
dent johnson for four years and under FRESH
Dent Arthur for five NOTWITHSTANDING the only
man who has held that office twice. FOLLOW
ing is Mr.. McCullochs artcle
Mr.. Gladstone treats the question OF inter
national trade as IL it were not only All eco
.omic but also scientific question, applica-
Me Alike to all countries and to all conditions
of the same country; to the United States and
10 Great Britain; to the former when she was
dependent upon the latter for manufactured
roods, and now, when she is a leader among
Inc nations in the extent and variety OF her
manufactures.
Mr.. Blaine, on the contrary, disregards the
doctrine OF scientific political economy In us
Bearings upon international trade, or rather
he docs not consider political economy as one
If the exact sciences, whose doctrines are
equally applicable TO all countries and to all
.fapes of their development
Mr.. Gladstone Is q believer in free trade
the free trade which, in connection with her
manufactures, has made that little kingdom
not q fortieth part as large as the United
States-the greatest maritime and manufact-
airing nation in the world, upon whose colo
nial domains the sun never sets.
Mr.. Blaine believes that it is to her protec-
tive policy that the unparalleled growth and
general prosperity of the United States are
mainly attributable.
Mr.. Gladstone regards international trade
~ barter, and believes that such trade, essen
tal MS il may be to national greatness, can
not DO healthily carried on unless this is its
character.
MIR. Blaine knows. Of course, that trade be-
tween nations must mainly be carried on by
mutual exchanges; that no nation can be long
engaged in trade with adverse balances COIL
stantly accruing, to be settled with coin, I'M
less coin is one Of its chief products; but he
believes that such are the circumstances OF
the United States that she can only be pros
porous by ignoring the policy OF free ex-
changes; that nothing could be more injurious
TO her people than for her to open her ports
TO the manufactures of other countries free
from import duties, or subject only to such
duties as might be needed for revenue; that
owing to cheaper labor in Europe manufact-
urers in the United States could not, even in
their home markets, compete with European
manufacturers.
Mr.. Gladstone goes beyond the economic
question and speaks OF protection as a moral
question, and by this presentation OF 1t he has
in certain quarters subjected himself to ridi-
cule. That there is anything immoral in n
protective tariff has never entered into the
conception of protectionists, but TO Mr. Glad
=, stone there could he no other conclusion. lie
regards monopoly as the necessary outgrowth
Of protection, and consequently at war with
freedom; that protective duties lead TO waste
full expenditures of the public moneys; that
they are burdensome to consumers and I'M
equal In their burdens. II these views are
sound is no not right in denouncing protect
i've tariff rs mmorali
Mr. Blaine presents no argument against
these views upon the moral bearing of the
question because, perhaps he does not con-
slider 1t necessary.
GREAT BRITAIN'S REVENUE SYSTEM.
Now, although 1t may be presumptuous in
me to avow it, am far from being In full
sympathy with either of these distinguished
statesmen While believe that the people Of
all nations would be better and happier If all
Instructions to international trade were re-
moved, and to this extent agree with Mr.
Gladstone, | see no grounds for even the
hope that this will be done on this side of the
millennium.
Great progress has been made within the
present century in the assimilation of nations,
but they are still wide apart in their forms
--ef government, the nature of their produc-
tions, their land tenures, and consequently In
their modes of taxation. So different are
they in thes, respects that Il system OF reve-
nue. which would be well suited 70 one nation
might be quite unsuited TO another.
: Free trade has proved to DO wise and whole
come for Great Britain. She is rich and able
TO support an expensive government by taxes
upon land and incomes; but she has been un-
nble to ndoctrinate her Canadian and Aus
tralian colonies with her free trade policy {;
nor has it been long since she pushed protec-
ton to prohibition. A great many wise
things can be found in the tariff laws OF the
United States but nothing SO unwise rs were
the corn laws of Great Britain. We sustain
protective duties on the ground that they en-
courage home production; we do not put
heavy duties, il any, upon articles that We
cannot produce and which are in common
use. Taxes upon tea aud coffee were bad
enough, but we never had any thing upon our
tax rolls 50 bad as the British tax upon bread
stuffs, which everybody needed and which
could not DO produced in sufficient quantity
1t home.
No nations so closely resemble each other
In the character of their people and the es-
sential nature OF their governments the
United States and Great Britain, and yet
they differ decidedly in their revenue systems,
and they thus differ because they differ, not
only in age, but in extent of territory and
governmental control Great Britain has
passed the period Of rapid growth; her peo-
pie, although not homogeneous, are 30 fixed
in habits as TO be rarely affected by such
movements as have frequently disturbed the
equilibrium Of other nations. Parliament Is
her only law making power. Her colonies
. S..lf I,.,