Los Angeles herald., 1891-08-23
LETTER BAG
Going Back to First Principles.

1
| EDITORS HERALD: 1t seems to be gen.
orally conceded that the preliminary
battle of the next presidential contest is
to be fought next autumn between the
Democratic and Republican parties in
Ohio, and that Protective Tariff is to
be the principle issue. The Republi-
cans have Major Mckinley, author of
the Mckinley bill, as their candidate
for governor, and they have given out
the word that Protection is to be their
battle cry. Ii they succeed in electing
Mckinley, the national Republican
party will 60 before the country in '92
with presidential candidate and ma
tional platform thoroughly committed to
that doctrine.
This therefore seems to be an oppor-
tune time to examine into and study this
doctrine of Protection, or of the the
ory that the government should, by the
enactment OF tariff laws, protect "our
/ will submit to your readers a few
thoughts on the subject.
Every organized political party, be-
ljeve, admits that revenue with which
to defray the expense of running the
government should be raised by
levying a tax or duty upon arti-
cles imported into this from
foreign countries. The issue in Ohio is
not tariff for revenue, but the McKin-
leyites and Protectionists go farther,
and say that the tariff should be so high
as to either prohibit the foreign article
from coming into American markets, or
greatly to diminish such importations,
so that our American manufacturers
can, by reason of the scarcity of the
article in this market, charge and get a
higher price for their manufactured
goods than they could if the foreign
article were allowed to come in.
This, | believe, is fair statement of
the position taken by protectionists.
Opposed to this doctrine, pretty unani-
mously, stand the Democrats, and in as
great a proportion, according to their
numbers, do the members of the Farm
ers' Alliance and the various lato Or
ganizations enter their protest.
l have, Mr.. Editor, till recently
affiliated with the Republicans, for rea-
sons other than because that party has
had such leaning to protection, but if
that great organization ignores, as it
seems likely to do, the great, living, all
important questions brought prominent
ly before the country by the laboring
people of this land, such as the neces-
sity for an increased volume of cur
rency, the government control or owner
ship of railroads, the abatement of
monopolies, the suppressing of
trusts and kindred iniquities,
and attempts to win the election on the
single cry OF Protection, then I can
no longer 60 with the party.
To me it seems clear that laws which
go beyond the point OF levying tax for
revenue and become restrictive and pro-
hibitory, making scarcity in the
market of certain article, enabling
manufacturers to charge high price for
their goods, are wrong in principle and
injurious to both the capitalist and the
consumer-to the employer and the
employe.
Now let us see if shis is not so:
l believe the statement is true one
that there are certain we'll fixed, uner-
ring natural laws governing trade as
certain and uniform in their operation
as are the laws of gravltation. Take for
instance the law of demand and supply.
This great principle lies at the bottom
OF all commerce, of all business of the
city, the state, the nation, and the
world. 1t is natural law. The price
of every article used by the American
people is regulated by the demand and
supply, or should be so regulated.
When the law is free and unrestricted
business of every kind goes on without
friction, with unerring fairness and
justness, as certainly adjust
ing the conditions OF trade and
keeping everything in the proper
channels with as much certainty and
uniformity as "water seeks it's level"
When interfered with by the passage OF
protective tariff laws, the commercial
and industrial system is soon 'thrown
out of gear" the supply is forced beyond
the demand, the market is glutted with
goods in excess of the natural wants OF
the people, and evil is, by reason of this
violation OF natural law of trade,
wrought to all classes.
To illustrate: There is a healthy
natural demand for a certain amount of
goods-hats for instance. Sixty millions
of people will each year wear a definite
number of hats. This legitimate de-
mand WILL agreeably to an unrestricted
law of trade, and without protective
laws, be adequately supplied at rea-
sonable profit. Suppose now that the
hat manufacturers are protected" by
placing tariff duty on foreign hats so
that none are imported, what would be
the result. The first effect would be to
advance the price of hats 25 or 30 or 80
per cent, thus taxing the consumer
that amount and putting into the
pockets of the manufacturers
a corresponding sum-. Would that not
be class legislation, and be one-sided
and uniair-the favoring OF the few at
the expense of the many? But the evil
would not stop here. The natural laws
of trade have been interfered with
vast number of hats more than is or has
been in demand is thrown on the mar
ket. Capitalists seeking for opportuni-
ties to invest money establish more hat
factories to take advantage Of the high
prices for hats created by law. The
supply soon exceeds the demand; the
hat market is overstocked; the price
which was too high soon goes too low,
and the capitalist finds that he reaps no
profit on his manufactured goods. Other