The great West. [volume] (St. Paul, Minn.) 1889-18??, 1890-03-07
PROTECTION FALLACIBS.
Hon. Hugh McCulloch Reviews
Blaine and Gladstone.
a VETERAN FINANC1ER's OPINION
The Venerable Ex-Cabinet O03cer Draws
Lessons from the History Of tho United
States-Why Panics Occur-Why Tarihs
Cannot Cause Prosperity.

cburse between nations and reply oy the
Hon. James G. Blaine which have excited,
great interest The New York Times has
now 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
troller OF the currency during part OF the
war, secretary of the treasury under Presi-
dent johnson for four years and under Presi-
dent Arthur for five months being the only
man who has held that Office twice. Follow
ing is Mr. McCulloch's article:
Mr.. Gladstone treats the question of inter.
national trade as if it were not only an eco
nomic but also scientific question, applica-
BILE alike to all countries and to all conditions
of the same country; to the United States and
to Great Britain; to the former when she was
dependent upon the latter for manufactured
goods, and now, when she is leader among
the nations in the extent and variety of her
manufactures
Me- Blaine, on the contrary, disregards the
doctrine OF scientific political economy in its
bearings upon international trade, or rather
he does not consider political economy as one
of the exact sciences, whose doctrines are
equally applicable to all countries and to all
stages of their development.
Mr.. Gladstone is a believer in free trade
the free trade which, in connection with her
manufactures, has made that little kingdom
not fortieth part as large as the United
States-the greatest maritime and manufact-
uring nation in the world, upon whose colo
NAL 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
as barter, and believes that such trade, essen
tial as it may be to national greatness, can
not be healthily carried on unless this is its
character. g., s.i
Mr.. Blaine knows, Of course, that trade be-
tween nations must mainly escarried on by
mutual exchanges; that no nation can be long
engaged in trade with adverse balances con-
stantly accruing, to be settled with coin, un-
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 moral
question, and by this presentation of it he has
in certain quarters subjected himself to ridi-
cule That there is anything immoral in O
protective tariff has never entered into the
conception Of protectionists, but to Mr.. Glad
stone there could be no other conclusion. He
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. If these views are
sound is he not right in denouncing a protect
i've tariff as immorall
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 BRIrANs REVENUE SYSTEM
Now, although it 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, l see no grounds for even the
hope that this will be done on this side of the
millennium. w.
Great progress has been made within the
present century in the assinnilationof nations,
but they are still wide apart in their forms
of government, the nature of their produc-
tions, their land tenures, and consequently in
their modes of taxation. So different are
they in these respects that system of reve-
nue. which would be well suited to one nation
might be quite unsuited to another.
Free trade has proved to be wise and whole
some for Great Britain. She is rich and able
to support an expensive government by taxes
upon land rnd incomes; but she has been UNI
able to in doctrinate her Canadian and Aus
tralian colonies with her free trade policy;
nor has it been long since she pushed protec-
tion to prohibition. A great many wise
things can be found in the tariff laws of the
United States, but nothing so unwise as were
the corn laws of Great Britain We sustain
protective duties on the ground that they en-
courage home productions; we do not put
heavy duties, if any, upon articles that we
cannot produce and which are in common
use Taxes upon tea and coffee were bad
tax rolls so bad as the British tax upon bread
stuffs, which everybody needed and which
could not be produced in sufficient quantity
At home.
No nations SO closely resemble each other
in thecharacter of their people and the es-
sential nature of their governments as 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 ago. but in extent of territory and
governmental control. Great Britain has
passed the period OF rapid growth; her PEG
pie, although not homogeneous, are 50 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
are to some extent self governing, but Eng
land, Scotland and Ireland are united under
one head and subject one jurisdiction.
Neither has control of its local interests
such control as ireland is now struggling to