The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1890-01-21

depression had, with a single exception.
easily explained, followed the enactment by
congress Of free trade tariff, as certainly a
effect follows cause. One Of the most suggest
i've experiments of that kind had its origin in
the tariff TO which have Just referred, passed
In lS46 in apparent harmony with England's
newly declared financial policy. At that
moment southern president QMr. Polk and
southern secretary of the treasury CMr.
Robert ]. Walker) were far more interested
in expanding the area Of slave territory than
In advancing home manufactures, and were
especially eager to make commercial ex-
changes with Europe on the somewhat diff
cult basis OF cotton at high prices and return.
ing fabrics at low prices.
Under ordinary circumstances the free
trade tariff Of 1916 would have promptly
fallen under popular reprobation and been
doomed to speedy repeal. But it had singu-
Lar history and for time was generally ac-
guessed in, even attaining in many sections
acertain degree of popularity. Never did any
other tariff meet with so many end so great
aids OF an adventitious character to sustain il
as did this enactment Of 1916: CALIFORNIA;
gold, our war with Mexico and the Crimean
war Tho export of manufactures from Eng
land and France was checked; the breadstuffs
OF Russia were blockaded and could not reach
the markets Of the world An extraordinary
stimulus was thus given to all forms Of trade
In the United States. For ten years-1s46 to
leoo-these adventitious aids came in regular
succession and exerted their powerful infu-
ence upon the prosperity Of the country.
The withdrawal or termination Of these
influences, by treaty Of peace in Europe
and by the surcease of gold from California.
brought Widespread financial panic, which
involved rum or thousands, including
proportionately as many In the south as In
the north.
AMERICA HAS HAD AMPLE EXPERIENCE.
The American people had twice before
passed through q similar experience. On
the eve OF the war Of 1912, congress guarded
the national strength by enacting highly
protective tariff. By its own terms this
tariff must end with the war. When the
new tariff was to be formed, popular cry
arose against "war duties though the coun-
try had prospered under them despite the
exhausting effect Of the struggle with Great
Britain. But the prayer Of the people was
answered, and the war duties were dropped
from the tariff Of 1916 The business Of the
country was speedily Frustrated. The peo-
pie were soon reduced to as great distress as
In that melancholy period between the close
OF the Revolutionary war and the organiza-
ton Of the national government-l7S3 to
I7s9.
Relief came at last with the enactment Of
the protective tariff of 1924, to the support of
which leading men Of both parties patriotic
ally united for the common good That act,
supplemented by the act Of 1928, brought
genuine prosperity to the country.
Sectional Jealousy and partisan zeal could
not endure the great development of manu-
features in the north and east which followed
the apparently firm establishment Of the pro-
tective policy. Out of this strange complica-
ton came the sacrifice Of the protective tariff
Of 1S24-2S and the substitution Of the COM
promise tariff Of 1888, which established an ad
valorem duty Of 20 per cent. on all imports,
and reduced the excess over that by 10 per
cent. annual sliding scale for the ensuing ten
years.
The apprehension Of evil soon became gen.
eral, public confidence was shaken, the panic
Of 1887 ensued, and business reversals were
rapid, general and devastating. There was
no relief to the people until the protective
tariff of 1912 was enacted; and then the
benefcent experience of 1924 was repeated on
even more extensive scale. Prosperity,
wide and general was at once restored
During this long period free trade tariffs
were thrice followed by industrial stagna-
ton, by financial embarrassment, by distress
among all classes dependent for subsistence
upon their own labor. Thrice were these
burdens removed by the enactment Of a pro-
tectiye tariff. Thrice the protective tariff
promptly led to industrial activity, to finan-
cial ease, to prosperity among the people.
1t Is true that financial panic occurred In
1873, and its existence would blunt the force
VI my argument II there were not an impera-
lively truthful way of accounting for it as
distinct result from entirely distinct causes.
The civil war, which closed in 1866, had sac
rifced on both sides vast amount Of prop
erty. Reckoning the money directly az
pended, the value OF property destroyed and
the production arrested and prevented, the
total is estimated at 5000, 100000.
AMERICAS GROWTH SINCE 1860.
Notwithstanding the evil prophecies on
both sides, the panic did not come until eight
and a half years after the firing of the last
gun in the civil war. Nor did it come until
after two great calamities in the years imme-
diately preceding had caused the expendi-
ture Of more than 500, 000, 900, suddenly
withdrawn from the ordinary channels Of
business. The rapid and extensive rebuilding
in Chicago and Boston after the destructive
fires Of 1871 and 1872 had a closer connection
with the panic Of 1878 than is commonly
thought. Still further, the six years de-
preston, from 1878 to 1872 involved individ-
ual suffering rather than general distress
The country as a whole never advanced in
wealth more rapidly than during that period.
Viewing the country from 1861 to 1880
full twenty-eight years-the longest undis-
turbed period in which either protection or
free trade has been tried In this country.
ask Mr.. Gladstone If parallel can be found
TO the material advancement of the United
States
In 1860 the population Of the United States
was in round numbers 81 ,000,O At the
same time the population Of the United King
dom was in round numbers $4,000, 900. AT
the end Of twenty years QSSW, it appeared |
that the United States added nearly $50, O00,-
100000 to her wealth, while the United King
dom had added nearly 15,000, 000, 900, or |
about one-half. The United Kingdom had |
added 5000 600 to her population during the |
period Of twenty years, while the addition to
the United States exceeded $1,000, 900.
In 1850 the average wealth, per capita, OF
the United Kingdom was 81 900, while in the |
United States it was but $3.50. In 1880 the
United Kingdom had increased her per capita
wealth to 81 go, while the United States had
increased her per capita wealth to $50. The
United Kingdom had in twenty years in
creased her per capita wealth % per cent,
while the United States had increased her per
capita wealth more than 90 per cent. If al |
lowance should be made for war losses, the |
ratio of gain in the United States would far |
exceed 100 per cent.
HOW PROTECTION HAS LOWERED PRICES.
John Edgar Thompson, late president Of |
the Pennsylvania Railroad company, pur.
chased 100 tons of steel rails in 1862 at price
freight paid to New York; duty of As per |
cent unpaid Of $1o3.A gold coin. By way
Of Illustrating Mr.. Gladstone's claim to |
superior quality Of manufactures under free
trade, the railroad company states that many
Of the rails broke during the first winters |
trial) In 1870 congress laid a specific duty |
of $2S per ton on steel rails. From that time |
the home market has been held by our own |
manufacturers, with steady annual fall in |
price, as the facilities of production increased,
until the past summer and autumn, when |
steel rails were selling in Pittsburg, Chicago |
and London at substantially the same prices. |
Does any free trader ON either side of TIL |