Telegram-herald., 1890-04-09

home, as we'll as the price OF the foreign
article, Is enhanced by the amount Of the
duty levied.
Although the fact that imported com
bear an average duty Of AZ per
cent. might seem upon superficial con-
sideration TO warrant the statement that
the price OF imported goods, and of like
American produced goods, is increased
by that amount, and TO justify the earn
est denunciations of Free traders, still
candid and sober. consideration demands
that an inquiry be made whether the
statement be true. Denunciaticns are not
evidence. nor are bare assertions proof.
1t seems that there are three clearly de-
fined classes of commodities upon which
the tariff operates differently. They may
be said 10 consist, first, OF commodities
whatever we consume; second, of com
modities which we produce and do not
import, whether restricted or not; and
third, OF commodities which we produce
and also import.
All commodities NAV be arranged I'M
QCl cJLilt N4At W lii--C ilNeAAos
somewhat loosely, but definitely enough
for our present purpose.
Concerning the first two groups moth
ing need be said. They are not ordi-
narily those commodities with which
Protectionist, az Protectionist, concerns
himself, for a duty levied upon such
commodities protects no American in
dustry.
The third class of commodities will be
found TO involve complicated considera-
tons. This class includes articles pro-
duced alike in the United States and in
foreign countries, and consequently those
in which there is a competition between
home and foreign producers. This is
the class of commodities concerning
which there is the real dispute between
the two systems of Free-trade and Pro-
lection. For the purpose of considering
this class Of commodities cotton goods af-
ford as good an illustration as any other.
Suppose that cotton goods were now
paving no duty and were selling in the
United States at five cents per yard, be-
ing partly of foreign and partly of home
manufacture.
Would the levying of duty of % per
cent. increase the price of such cOttOns
by one-fifth, OF, in other words, would
cottons sell at six cents per yard? Under
free competition they would not. Why
should they? American producers prior
to the levying of the duty of 90 per cent.
could manufacture cottOns a. five cents
per yard. The cost of production is no
greater now, bat another factor in the
problem of price has been introduced.
The foreign supply at Eve cents per yard
within our ports is now diminished. IN
less we suppose that the English produ-
Ger prefers to reduce his profits rather
than curtail his market, in which case
TIE effect upon prices of the duty levied
would be nothing.
II. however, the English manufacturer
could not or would not continue 70 sell
cottons at the former price OF five cents
a some what different result must follow.
Either the American consumer must buy
the cottons which he must have In ex-
cess Of the former American product at
the rates at which foreign producers can
place them within our ports. and per
haps submit % a somewhat increased
price FOR the homo male article. or he
must look 70 a stimulated production
among American manufacturers.
This latter result rapidly follows when
capital ia so eager Of invest ment "a at
present. and when every avenue Of prof
liable employment Of wealth and bUsi
ness capacity is quickly occupied and
pre-enpted. In either CAGE the result
would % an increase at first. tho price
fuctuating between fve and six cents.
according 20 varying conditions Of pro
duction: but in the latter the increase
would tend % DC temporary and ths price
would approximate toward the Eve cents
previously demanded. or under some
conditions even to lover price. and this
result would come about on account Of
the ompetition among American pro
ducers and the resultant new and i'm
proved processes Of manufacture and
better methods Of management and con
troll
This i m effect too often lost sight q
n measuring the relative adva1taEes and
aissdvsntages q the = > policies q Pro
lection snd Free-trade. Il l. vel known
thar labor and capital hesitate T. embark
In new enterprises when the rewards
offered sre only ordinary CT uncertain
and distant. ard the Possibility - loss
great. yet when cuce engaged in the iD-
dustTy. when she cspstal has been fairly
fixed ia the pant. AMI wher ia6or and
executives ability have heen attracted ~
81. they are ready & enter into = oognpati-
tlon a. inoesssnt aud SO eager a. - inszsre
prices shich uaeassre The cost = lsboT
aud Interest. snd oofy a rno,jerate amouns
O. profits
Il - ono = the stock srr-rDents a
Free traders that dirty levied uV.on FOR
eiEa made Tac-ts "a ssl-s horne prod ncsrs
~ n7ch srficles e. rsive the price, II faei'
own wares ~ An aaenut eQasl ~ fnr
import duty and That ssach a tariff = t,r
eflcsent cssee ~ fhe uasuv trss1s an
cofuhinrs thar aT-ler present ind seeria
c~gsrszsssoa era free a,oue frr at rity
Hst sair sHs7uiusfian ~ thr Ftrcrr Fl
Industry dafine the fs-t ss1y fssrs rH