Hot Springs weekly star. (Hot Springs, S.D.) 1892-1917, 1892-02-26
SUPERSTITION VS.. FACT.
HOW PROTECTION STIMULATES
INDUSTRIES.

Praise for American Commercial Di-
plonacy-Perkins has Fun With q Dem.
ocratic Edltor-Senator Hale to Senator
Rll-Currcnt Items of Iuterest.
Praise for American Diplomacy.
Interminglcd with the quiet peace
celebration of Central Europe VIC hear
triumphant shouts of victory coming
from the United States, our trans-Atlan-
tic rival. After q year of painful labor
and negotiations, the nations of Central
Europe have succeeded in negotiating
treaties which at least are but q mosaic
composed of thousands of compro-
misses: Every advantage yielded by a
neighbor had to be compensated by a
corresponding advantage granted to
hint is but an honest reciprocal ex-
change, item for item. However, the
documents signed at Saratoga by the
German and American representatives.,
which We publish this mornir>
represent "a great victory for
which costs the victor nothing, q
conquest without a blow. It is an ex-
preston of the superior natural condi-
tons of national life and OF the superior
commercial diplomacy of the trans
Atlantic state of the future over
"effete Europe," poor alike in blood
and thought. To-day let us only look
at the American. policy of commercial
negotiations and compare it with the
system introduced by Bismarck. Bis
marck's idea was: In order to obtain
good commercial treaties it is necessary
first to establish q high tariff and then
to offer and make reductions from this
tariff in consideration of corresponding
favors. Under this system the planters
and manufacturers became accustomed
to the unusual rate of protection ac-
corded them and most vehemently OPP
posed any reduction therefrom. The
government was at the mercy of these
classes, and has since 1879 been forced
to a policy of inactivity in the field of
Commercial negotiations.
The new (Caprivi( government partly
abandons this ~fallacious system-
though France seems disposed to CON
tlnue it-and its new treaties grant nu-
merous reductions in return for like
favors.
The commercial ideas of the Ameri-
can secretary of state, Mr.. Blaine, are
entirely different. They are contained
in Art. Ill. of the famous Mckinley
tariff. Whether this tariff as q whole
will prove useful t the United States
remains. to be shown; to-day we con-
6AICI Ouly t1Tl. ILL.,.
This article was inserted by Mr..
Blaine, a friendly opponent of Mr.. Nc
kinley, and has in the latest CONNER
cial negotiations proven its eminent
wisdom most brilliantly. Mr.. Blaine's
idea differs materially from Bismarck's.
1t is as follows:
In order to obtain favorable treaties
the duty on certain important articles
such as sugar, molasses, coffee, tea,
Eldes, etc., was greatly reduced or abol-
Y 2hed with conditions that it might be
1.s-established after January /, 1892, in
case nations profiting by it did not
While according to Bismarck g system,
domestic interested parties became used
to special high duties and formed a SOL
id phalanx against any reduction or
concessions, Mr.. Blaine's system causes
the foreign exporter to profit by the re-
ductlon, and makes of him a powerful
ally to force his (the foreign) govern-
ment to make concessions to prevent
the re-establishment of the American
duties.
This principle is likewise contained
in the new meat inspection bill. whose
threats of tariff war and prohibition
have induced European countries to
raise their prohibition on American
meats. MI. Blaine's idea has been sue
cessful in both cases. 1t has secured
for the United States treaties with Bra
iii, Cuba, and with other of the South
American states. and thus brings Mr..
Blaine's great Pan-American scheme
nearer realization, at the same time
American markets.
Mr.. Blaine's idea has already forced
Germany, Denmark, Austria and
France to repeal their prohibitions of
American meat, and Italy is on the
point of doing the same. But the doc
uments we reprint to-day constitute
Blaine's masterpiece. The central Eu-
ropean tariff union has been rendered
ineffective with reference to the United !
States. The German TARIFF on agriculture
81 products wa to be reduced only in i
favor Of Italy and Austria, ano to be re-
tanned against Russia and America be-
cause the latter nations do not enjoy
ssthe most favored nations privileges"
This would have been profitable only
to German and Austrian farmers, and
not to the people, because these two
nations, not raising enough grain for
themselves. the price would have been
fixed, not by Hungarian grain at $50
marks, but ny American and Russian
grain at 5 marks, as heretofore.
Mr.. Blaine, however, has completely
upset these calculations and made the
new tariff on agricultural products apply
to the United States as we'll, the reduc-
ton of which the United States will
Z profit as follows:
Old Tariff: New Tariff.
Marks Per 100 kills.
Wheot sssss.ss ssss... see. Z. .... D sou
D H5O
br0u 2 go
dOpS....... ."................ ~ lAOO
butter =. 20 1900
20 1900