New-York tribune., 1892-03-26
GUNTON ON PROTECTION.
HIS LECTURE AT The REPUBLICAN CLUB.
rxpLAry1yG THE INFLUENCE OF COMPETITION
WHAT GOVERNS 1T.

rXpLNNIyG THE INFLUENCE OF COMPETITIONS
WHAT GOVERNS IT.
Unusual interest IS being taken In the lectures OH
the philosophy Of protection which are behs oeiV.'eN
ot the Republican Club by Professor "corse ""n'''
Of the Institute Of Social Economics. Mr' "ul'on
knowledge Il economic subjects i cnieh'Ne' ''' "0
member. of the Republican Club have already begun
. g,tu,-, them,clvc, for bcing fortunate as 10
secnrc the beueH, OF hls study Of and familiarity WIN
the subject. Last evening the Professor hehVerc "c
second Of the Of ioi lures ana the spc"hcI n
most attentive and Interested audience Ihe iectues
Az, not only for benefit Of the club menoers ou'
for their friends, and for any one who would IKE 10
know mrc about one oi the vital subjects OF the any
. Ir teetou and Competition the subject oi ul3
lecture Lst evening The speaker said iD part
comrot.,ion d. one Of the cherished phrases o'
fre- Trade md -rcaAers Ihd'ed " i 'hos'
,tsA With them. They speok 81 II as the soul OF t'ue
and the Of pfoers-s Tso+e who thus d''y con
tetton Usually h. the iul b"nrht' oi 'o
pe, Ton ony be obsined ey free trade Every u''.
elimination Witch IN tho icnst iDun'ieN win Tie no" o.
cotoiite. in whhersOgver direction low money pri''
Will take h~n t. rcgArdsd a. restriction Of freedom 'nd
, Llnarance 70 progress To them protection N any de-
ere f. restriction competition. and thetefoi" haAd'
mad Of MONOPOLY destroyer Of freedom ard IA enemy
NJ social advance not surprising then mat III pro
pottion a. oylc accept this view their OPPOSITION "
.-oeetfr p0cy AID those who are willing 70 be
ltrty los demand ab.oE'' free trade r'gat'7r oi
eos.qucnccs Now our cracism " FrrcTrsders IL not
maj s.v a.. TO, rBdioai persistent their Claim.
or ab.opt. frr trade but TIC log al Application of
s.cr t,ory which II irue Is what oil should demand
pr, our objection The theory Is no; sound because
IL /. based upon p'ion both of "a" pfucpc OF
proec Non AID the function OF competition
Protection is not mere matrT q tuft"mh'H'''' a.
TIlAde advocate commonly sNSp'ne, but s principle
running through all evolution. 10 which society and IA
tous ind Industrial advance 1rc no exception II our
reTrade friend, would consider IL subject from this
point Of instead VI a>aillng potc IN grne'I
bcap-c Of imperrcton, and crd.uc' Of afn sch'd-
ule- tie, wight contrhrt' 10 re scientific solution oi
tho problem. Thew would then b. -onr holr ~ rttnc-
Ing tn subject 10 a wording economic principe whose
rocoynon nigat become part Of general economic edu-
ai,.on aud thus permanently rlLovc he question Of pro-
ecrou from the led Of mere political controversy to t"
domain economic science Protection of industrial OPP
portuuty would b. CONSIDERED tie las the
protection property and pcrso:l freedom, and torr
,ystn would be- retained modified or abolished ito merits
part Of ths general protection Of cur civilization, IN
the way tlut Army Navy police force judiciary
| and q hool sy.tems arc treated now
Competition l. OF the mlsunier-tood force,
Of society. Although 70 Il odsp~nsabie a unly
nonlc Industrial system IL Ills such function
usually ascriled 70 IT, The habit 0f regarding compot.
ton the clcapacss AID tls lie Of trade is
cntrcy erroneous. ono might well ascrie the
enco o heat light, Iud and water 10 grLvitAto
aioa Is indeed indispensable b. the ohniy movement OF
physlcal phenomena but IL NILS specific function IN the
worlds economy n fail understand pafticu.
Lar action We never understand tho law of phys,al
movement. 81 Ia to study Of economies. IL is not enough
chat titiOn ~ ludi- -Icn,1bc force In
movement, but must understand the special
function II Nils IN the Economy society This view OF
the nfallbllty Of competition which logically sus'aIns
AL opposition organIcd methods Of industrial
and social Improvement has done much t"
Justify the Soclsllsts' opposition "our com
p-titl,c system" They the groat mass ~
mankind state Of ignorance struggling with poverty.
and very small class In state OF comparative aIuencc
tod that all this the inevitable result OF the na'-
divine law " competition naturally produces feel
ansoni-m the whole competitive system OF society
and demand for the adoption of some sort Of onompct
| tive coopcratlon, socialism. The mistake OF our
socialist friends this Instance In most cases Of ero-
nomc doctrine IL IN placing too much reliance upon the
| pestuiates oi '1et-slone" economist.
Now competition oils no such omnipotent role as has
been ascrbrd on the IT, influence II
| limited. There but two ways IN which competition
industry. namey. bv It's action ~ prices.
| ~ upon products.
a. In the realm OF prices influence OF competition
ac:s only upon surplus that is TO IL does and
cannot permanently affect conditions Of economic
| production which determine prices, but can only
Influence the conditions governing the distribution
u profits. For example under monopoly conditions 'hoc'
that 81 pair 10 produce 'Acn might DO sod Vt W
lar thus leaving 100 per cent surplus or profit Now
under competition THO profit would bo distributed % the
community by forcing down Of the price To the cost bnt
no competition could ,s6e the price per
mancntly below uhc coot II the sho- cost r2 no COM
| petition could the prios down 10 81 30.
! thus IL Is only upon the profit surplus tho com
lctton can any influence. In short then. the
Junction competition to distribute The surplus by mln
mlng pont, and icy ond that It do nothing toward
,hea pGning The ioo which really reduce prices
and give mannnd cheaper wealth those which operate
upon the cost OF production. and thoc only So iar as
ouItstton il concerned the price Of cotton coh might
forever have remained what IL was In 1920. 20 cents
yard because II shat produce IL. The only
that price fuen fIom 20 10 cents Is that I'M
uroyed methods reduced the cost Of ts production
| have been introduced. with the introduction OF every
new conryance greater margin OF poht created and
| 4. ls
| tho price down 10 level Of the new cost.
Thus that competition Is only secondary force
"a reducing prlccs-a force which simply acts dis.
rbutOr OF surplus fast surplus plies from the
| utc Oi cos,.rciucing pioctsscs IN prodncton
10 Is clrar then. while competition Is u wholesome
and indispensable force In society whose operation
should be- possible IL is TO conditions which
imnsh the Of production that we must look for any
permanent cheapenng OF wealth These conditions
what Adam Smith properly designated the extent
market-thc demand for the commodities produced
which finally rests upon the consumption and social grade
~ the masses-bccausc II Is the extent OF the market
|