The Black Hills union. [volume] (Rapid City, Pennington County, Dakota [S.D.]) 1889-1904, 1890-12-18
AN OPEN LETTER TO M. j
RIDDLE.
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4 Tariff System Pf6pdsei f8E Ills ffhiS.
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bran ssin-;fqat, comtRuhicatI9ihi
meeting 81 farmers and iaborine men
to discuss political and financial
questions 1s no doubt q good one.
But the reading of at least one
Independent paper is a necessity to
any man who would be an intelligent
voter, as the g. o. D.. papers system
atica1ly suppress OF. misfepreseht
s sssty th 'ksR Nh aSs Y E}sshi lh kHYt tA Sas
Opened Its columns for all h0hest Re.
formers to exchange ideas-not is
wrangle and misrepresent each
others theories, but to assist each
other in reaching right conclusions
and principles. In presuming to
answer your request allow me to say
l am not a banker and further I do
not believe you need any advice from
bankers, but 1 claim to have some
knowledge Of political ec5hbmy.
Next to your article in the same
paper is one signed ga Farmer,n
which sets forth many of the reasons
given IN support ola protective tariff.
1t is a good article and a truthful and
strong argument in It's main POINTS.
Notice particularly that part where
he says kTTheif Interest and aim Ii to
secure commercial Supremacy Now
what is. commercial supremacy?
just this: il l in my dealings with
other men buy more than / sell and
thus become indebted to them they
have commercial supremacy over me.
And vice versa. Just the same be-
tween nations as individuals. Did
you ever know an individual to hab
ttually- pay out annually large
sums more than his income from all
sources and yet remain prosperous?
No, because that would be impossible
and it is just as impossible for d ma
tiln as for an individual.
Now where IA Farmer" makes his
mistake is in assuming that the pro-
tecttve tariff has prevented and will
prevent other nations from securing
commercial supremacy over us. We
have had a protective tariff now since
1861 and it has utterly failed in that
respect. The bureau of statistics
shows a balance of trade against us
since 1888 including gold and silver
Of more than eighteen hundred mill
lions Of dollars largely accumulated
since 1861. 1 have figured up the
amounts, taking the different years
and adding together to get the result
and know | am telling the truth. So
our money has been exported. That
is precisely the evil which the pro-
tective tariff was to prevent and
which "a Farmer" assumes it has pre-
vented and will prevent, and yet here
are the facts which | have stated.
Any one can examine the government
reports and know for himself it is
true. Now there are three ways by
which large amounts of money are
taken from us to foreign countries:
First, in payment for imported goods.
Second, by our citizens travelling in
foreign countries. Third, interest
and principal paid on corporate loans
negotiated In foreign countries. OF
the two last the government has no
knowledge and collects no statistics.
The merchandise, all classes, exported
has been usually since 1873 larger than
imports, leaving a balance in our
favor, but in foreign travel and pay
ment of interest on loans there is
every year a heavy balance against
us.
lhaye a letter from the chief OF the
bureau Of statistics in answer to my
inquiry, showing that a little over
100000 of our people visit foreign
countries, other than Canada and
Mexico, annually. l estimate the *
pense at $75, Q00, 900. Then the pay
ment of interest can hardly be less
than 800, 900, 900 and may be more.
Two years ago the Financial Chr0n.
icle, of New York, estimated the bal.
ance against this country at S16l, 600.
900 for that year. Last year there was
property in this country sold to for.
eign syndicates to the extent of 5000.
600, 900 which probably just about rep
resents the balance of trade against Us
on all items for that year. This bal
ance at present is being re-invested
here. 1t is not taken out Of the coun
try.
Suppose now that your neighbol
owes 81, 900 at ten per cent interest, at
the end end of the year he says I don't
want to pay that interest at present
but will give you a note for 800 at 1C
per cent. You want your money out
drawing interest and you take the
note. That i%srepeated year after year
until you become alarmed and de.
mand your money. Then the other
fellow has a financial panic. Now you
represent England and your neigh.
Dor the United States, and you can
see the point. The fact that these
debts are corporate debts makes nc
difference. The corporations collect
from the people to pay them and con.
sequently it is debts of the coun-
try as much as government bonds are
Now take the other statement of "A
To MN ors3 fhof lost vaor wo N, ~ tod
1924, 600, 900 worth of foreign merchan.
as well have been produced at home,
which is true; and then think of how
to pay 5000, 900, 900 annually to other
countries easier and better for us,
than to shut out that amount of i'm.
ports and manufacture that much
more ourselves. If you learn such
way please let me know, as [ have
not been able to do SO. We can not
increase our exports in quantity very
much because the worlds market will
not absorb more. Even if we reduce
our selling price others must do the
same and we would lose value with.
out gaining quantity Of sales. OuI
highest balances of trade on exports
and imports were when money was
comparatively plenty and prices high
was from 1877 to 1885. So the idea
that our exports will largely increase
with a low tariff and low prices fol
labor aud consequently low prices OF
farm produce and merchandise is
simply nonsense, or if not what, good
could come to us by reducing every.
thing to the European standard: a
tariff that is best for you is best fol
your neigbor also, although you may
be a free trader and he a protection.
list. You can not both be right in
your opinions; then do not quarrel,
but go to work calmly to learn which
is best and then work together. That
is the reform idea.
NowI will explain why and how
our protective system has proven a
fraud. The protective system was
planned and intended to encourage
home industries, to make us CONNER
cially independent by keeping oul
money at home: and that conld be
done only by keeping the balance q
trade in Jul favor. This tariff Law
enacted at the commencement of a
great war which for four years oc-
cuniad the %attAnfiOn If tha whole