The News-Herald. [volume] (Hillsboro, Highland Co., Ohio) 1886-1973, 1891-07-09
WHAT PROTECTION DOES.
AN ABLE EXPOSITION OF THE TRUE
THEORY BY SENATOR ALDRlcH.

It Shows That Import Duties Alone Are
What Buoy the American Manufac-
turer and His Employees Up Above the
Flood of Foreign Competition.
The following is taken from recent
speech by Senator .Aldrich:
The experience of the United States
will, perhaps. furnish just criterion of
the relative commercial progress of
Great Britain and Germany in recent
years. In 1860 Great Britain furnished
89.17 per cent. of our imports, and in
| 1890 %. 63 per cent, while Germany fur
nished 5.24 per cent. in 1860 and 1859
per cent. in 1890.
Manufactures covering the entire field
of industrial creation, once firmly estab-
| lished, are of inestimable value in pro-
noting and maintaining the greatest
possible efficiency in national productive
forces. For the. manufacturers of any
| of the industrial nations to achieve sue
cess under existing conditions it is
necessary that they should conduct their
operations upon a large scale. 1t be-
comes more and more apparent every
day to the intelligent student Of econom-
les that a better understanding of the
law of increasing returns is bringing
about q revolution in manufacturing
methods. Great savings in the cost of
administration and distribution and
great improvements in machinery are
stimulated and rendered possible through
greatly increased production. Manufac-
turing can only be carried ON in the
United States on d scale which will Sc
cure the best results by giving to domes-
tic producers the home market and by
maintaining the purchasing power of the
American people at the present high
level through the retention of the pro-
tective policy. 1t is true that some of
the manufacturers of the United States
when competing in the production of
certain articles labor under some disad-
vantages which for obvious reasons can
not be removed at once. A much higher
level of wages and the much greater
earnings of all persons engaged in useful
employments in the United States neces-
states relatively higher cost of produc-
ton in many articles.
In order to enable the American pro-
ducer of these articles to meet his foreign
competitor in our own markets on equal
terms it is necessary to equalize condi-
tions by levying protecting duties. A
critical examination, however, of the ul-
innate effect of the protective policy
upon our ability to compete in the expor-
tation Of manufactured articles will show
that the advantages l have referred to
will in constantly increasing number OF
cases more than balance these disadvan-
tages In all cases where American man.
ufacturers have secured the control OF
the American market the result has been
lower level of prices throughout the
world. In many such cases, and their
number is, as have said, constantly in
creasing, we have by the improved meth.
DDS, the much greater use Of machinery
the superior skill and enterprise of oul
mechanics, reduced the cost of produc
tion in the United States below that in
competing countries. For instance, take
the case Of agricultural implements. The
market in the United States having been
secured to the American manufacturer
he has been enabled by improving and
cheapening methods and by economies in
production to drive his competitors out o1
many foreign markets. Does any one
! suppose that the American agricultural
implement manufacturer would have
been able to secure large foreign trade
through unequal conditions Of competi
ton, Of large portion of the American
market? Our ability to compete in for
eign markets does not depend, as is evi
denced by the case have cited and by
many others that are analogous to it
upon the character of the article pro
duced. We have obtained and held un
der adverse circumstances fair share o.
the foreign trade of articles in which tht
home market was extensive enough tx
fully awaken the inventive spirit and tx
enlist in their production the highes
types Of American skill and enterprise.
Our only hope, then, of increasing tht
volume Of our exports of manufactured
articles is through the development ani
prosperity which is possible through {
retention of the protective policy.
Having given some of the reasons which
lead me to believe that the maintenance,
Of the protective system is indispensable,
to q profitable foreign commerce, fee
bound to say that as Protectionist dt
not think the duty Of our government il
this behalf ends with levying protective
duties. It should at least encourage om
foreign commerce by securing frequen
and rapid direct steam communication
with the countries that are our natura
customers. In this regard the Unitei
States should adopt the agencies which
have been found productive Of such salts
factory results in the experience Of every
other commercial nation.
Our government should also as rapidly
as possible enter into friendly and re
ciprocal arrangements for the enlarge
ment of mutually profitable trade with
those countries, especially those lying
south Of US In the American hemisphere