The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1892-09-23
A SAD TARIFF LESSON.
Tariff for Revenue Only Slapped Nor.
ways Strength and Ruined
Her Industries.
The Heavy Burdens of Taxation Fell
Upon Her Common People and
Crushed Them.
Tariff for Revenue Only Will Bring
the Same Calamity Upon
American People.
Especial and Copyrighted.)

parliament, recently prorogued, wit
messed new departure in fiscal legisla-
ton. which briefly may be characterized
as determined effort to relieve the
common people and the industries of the
country of some of the burdens imposed
by a ruinous tariff policy. Although
Norway is a country with limited re-
sources, her experience in tariff legisla-
ton is instructive and valuable. 1t IL
Illustrates with unmistakable plainness
that the inevitable effects of tariff for
revenue only is to impoverish the COM
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, young man of
eminent ability was appointed to teach
political economy in the university of
Christiania, and with him free trade
made its entrance into Norway. His
york soon bore fruit. The univer-
sity began to grind out free traders at a
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 50 SLOW and deliberate
in their movements, we're 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
l. %xs,, /,
on foreign soil by the conclusion of
the commercial treaty between England
and the empire of Napoleon Ill, than
Norway followed in the footsteps of
France, adjusted her import duties on
a 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
to a practically unrestricted foreign
competition, and placed the main bur-
den of taxation upon the shoulders of
the common people by raising about
thirds Of her total revenue by heavy
import duties on a 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 we'll. 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 a
population of less than 1850, 900 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 500, 900, 900 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.
niticent fleet of clippers was almost de.
stroyed. They could not be EMPLOYED
prohtably. A large and steadily m.
creasing adverse balance of trade stared
the nation in the face The conclusion
was inevitable Gold flowed out of ,he
country to pay for imports; business
was at standstill employment was
scarce. wages fell. and the country sank
gradually deeper into the quagmire of
financial and industrial crisis As !,
carried by contagion general bank.
ruptcy swept the whole line of coast
cities. so prosperous and f1ourishins
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 Geplorable 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 thew
were no longer able to buy in sufficient
quantities. while they were as unable
to manufacture for Themselves Nnv 4.