Morris tribune., 1892-09-21
A SAD TARIFF LESSON.
fSpecial and Copyrighted.)

Especial and Copyrighted.)
The last session of the Norwegian
parliament, recently rrorogued. Wit
messed new departure in fiscal legisla-
ton, which briefly may be characterized
as a determined effort to relieve the
common people aud the industries Of the
country of some of the burdens imposed
by a ruinous tariff policy. Although
Norway is q country with limited re-
sources, her experience in tariff legissa-
ton is instructive and valuable. 1t Ii
Illustrates with unmistakable pla!nness
that the inevitable effects Of a tariff for
revenue oaly is to impoyeriSh the conf
mon people.
Norway was one of the first coun-
tries in Europe to embrace the
economic gospel of Richard Golden.
Towards the close of the corn law
campaign in England, a young man OF
eminent ability was appointed to teach
political economy in the university of
Christiania, and with him free trade
made it's entrance into Norway. His
work soon bore fruit. The univer-
sity began to grind out free traders at
rapid rate, and gradually the press
drifted into the hands of these young
and aggressive followers of the great
prophet of England. The Norwegian
people, generally so slow and deliberate
in their movements, were converted to
the new gospel in an incredibly short
time. Opposition was silenced, and the
doctrine of protection was commonly re-
garded as an economic lunacy. Golden
had no sooner scored his first triumph
on foreign soil by the conclusion of
the commercial treaty between England
and the empire of Napoleon III, than
Norway followed in the footsteps of
France, adjusted her import duties on
tariff for revenue only basis and con-
cluded series of commercial treaties by
which she bound herself to adhere to the
new policy for number of years. Thus
free trade was firmly established in
Norway.
Various reasons of fiscal and indus
trial nature account for Norway's easy
conversion to the new policy. In the
first place, the expenses of the govern
ment made it necessary to levy duties
on all or nearly all articles of import as
well as few articles ofexport. The rails
ing of revenue consequently must be one
of the main objects of any tariff which
might have been adopted. Moreover,
from fiscal point of view, the lower
ing of duties on manufactured articles
looked like very slight sacrifice com
pared with the concessions made by
foreign countries for the benefit of Nor
wegian shipping and Norway's staples
of export-lumber and fish products.
In exchange for these concessions Nor
way exposed her tiny industrial plants
10 practically unrestricted foreign
competition, and placed the main bur-
den of taxation upon the shoulders of
the common people by raising about
two-thirds Of her total revenue by heavy
import duties on few articles of COM
mon consumption, especially coffee,
sugar, tea, Illuminating oils and tobacco.
In other words, she adopted the very
policy which the Democratic party en-
deavors to establish in this country.
The new policy was inaugurated under
favorable auspices, and for a time all
went well. There was a steady and
increasing foreign demand for lumber
and fish products; imports increased
enormously, and business fourished.
The source of all this apparent pros
perity was the phenomenal growth of
Norwegian shipping. Containing
population of less than 100000 people,
Norway in few years attained the rank
of the third maritime power in the
world. Her flag foated over all the
seas, and the net income of her ocean
carrying trade, some $50, 100000 annu-
ally, was sufficient to cover the large
difference of value between imports and
exports and thus keep the balance of
trade even. Free trade was worshipped
as the mother of the new activity and
what appeared to be rapid accumula-
ton of wealth.
This spell of an illusory prosperity did
not last long, only some fifteen years.
By that time iron and steam had largely
displaced the old wooden vessels, and in
consequence the value of Norway's mag
nifcent feet of clippers was almost de-
stroyed. They could not be employed
pro6tably. A large and steadily in
creasing adverse balance of trade stared
the nation in the face. The conclusion
was inevitable. Gold flowed out of the
country to pay for imports; business
was at standstill, employment was
scarce, wages fell, and the country sank
gradually deeper into the quagmire of a
financial and industrial crisis. AS If
carried by contagion general bank
ruptcy swept the whole line of coast
cities, so prosperous and Furnishing
during the first years of free trade. In
some OF them nearly every business
house was wrecked.
: Nor was this all, nor perhaps the
worst effects of the free trade policy.
The most deplorable feature of the sit
uation was that the people found them
selves practically helpless. They had
learned to consume more literally, de-
pending upon foreign countries for
manufactured articles. These they
were no longer able to buy in sufficient
quantities, while they We're as unable
to manufacture for themselves. Now it
became evident how completely free
trade had Slapped the strength Of the
country. It's manufacturing industries,
never of great Importance, had scarcely
made any progress whatever. Many
industries had been wiped out of exist.
ence by foreign competition. !. The
once SO prosperous tradesmen in the
cities were ruined, as was also the
l. -