Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-10-09
TERMS OF THE DISPATCH.
PITTsBURG. THURSDAY. OCT. g. 1890
COMPETITION CHECKS ENToRTIoN.

COMPETITION CHECKS EATORTlON.
An attempt is made to prejudice the pub
lie in advance against the Mckinley tariff
bill by the assertion that it will raise the
price OF necessities as well as of luxuries.
This impression is brought about BY the
rapacity of some merchants and importers in
Selling upon the bill, before the public are
fully acquainted with its provisions, as a
pretext of extorting higher prices from
buyers.
That sort of sharp practice is by no means
uncommon. The facts are that we will have
to wait few weeks, perhaps few months,
before the markets can rightly adjust them
selves to the conditions imposed by the new
law. But it is well to note that there has
been absolutely no pressure or necessity
brought TO bear on importers thus far for in
creasing prices at all. There has not been
enough time for any foreign goods
worth mentioning to get into the
country since Monday, when the
new schedule of customs became
operative. The goods upon which prices
are now being advanced are, for the most
part, goods which came in under the old
tariff and which could be sold at the old
prices if the importers and merchants did
not wish to take the advantage of the extra
dollar which is to be made by talking up the
increased tariff Eggs in the Pittsbulg and
Allegheny markets were advanced several
cents per dozen the morning the tariff law
went into effect. Of course they were not
Canadian eggs either nor did they pay
duty.
This is Just mentioned to indicate that
there is room for a good deal of clap-trap
about the threatened increase of prices. That
prices will be changed on a number of COM
modities is quite likely; but the
forces of competition must be
got in play before the general
results can be estimated. The very purpose
of the tariff is to stimulate home industries
Whether it be in eggs, or carpets, or dry
goods, If sharp and big profits are shown to
arise from the new state of things it will
not be long before more people and more
capital engage in the business which is pro-
ducing these large profits. Nothing indeed,
but the formation OF new trusts in a whole
sale way, can prevent this competition which
is the check to e1tortion. As The DIS
PATCH has said frequently in the considera-
tion of the McKin .ey bill, some months will
be required to estim ~ its effects. But in
the meantime it is not in the least strange
that the temporary unsettlementc caused by the
increased duties on foreign goods is taken ad-
vantage of by parties with large stocks of low
tariff goods on hand to sell them for as much
as possible, on high tariff basis. Nor is it
surprising that Democratic papers or pollti-
clans make a great ado at the start over the
new market quotations.
The public will not expect wonders in a
week, nor will they be alarmed by advances
that are so manifestly fictitious as some that
have been announced in the past few days.
The only sort of judgment that can be worth
anything about the operation of the tariff
must wait until the market steadies and the
forces of competition at home. inspired BY
the increased profits and inducements for
home production, come into play.