Fergus County argus. [volume] (Lewistown, Mont.) 1886-1946, 1893-03-02

Whatever else may be said Of tile
political economy Of our contenip,-
rary, it requires no new sounding ap-
paratus to fathom its depths. Ii harps
upon the price of wool being regulated
by the law of supply and demand"
and for that reasoa the tariff cannot
affect it. To US this il very shallow
argument. The law VI supply and de-
msud is an old one in the science of
political economy; but even its greatest
advocate, and the father of the modern
school of political economy. did not
pretend that the law Was not subject To
control by many influences. IL will
not be denied that the supply uf any
product of agriculture is subject to great
change, from natural CAUSES, and WOO
is by no means an exception 10 this
rule. 1t is no less true that the supply
can be, and often is, regulated 10y indl-
viduals or governments. The demand
for wool is practically n fixed quantity.
If then the supply can he limited or
restricted, the demand being fixed, the
price must increase, according to til.
law of supply and demand. Ii the de
mand for wool in the United States /,
u fixed quantity, or nearly SO, and III.
supply al be limited, it must neces-
ssrily enhance the price of wool in this
country, and to the sheep men of Mon
tana. This is exactly what u protective
tariff is designed to accomplish, al d
does accomplish in its practical work
in-s. An American protective tariff
has q very decided tendency to de-
crease the demand, i'm American mrr-
kets, for foreign woods, and Of course to
increase the demand for Americas
woods. In other words, it decreases the
supply for American markets, and SO
increases the price in those markets,
With most articles the supply, as well
al the price, is regulated, to ~ consider
| able extent, by the demand. The pro-
duction can be increased indefinitely,
to meet an increasing demand, while
over-production, beyond certain limits,
is seldom seen. When a market he
comes glutted, the production de-
~creases.
1t is not denied, at least it cannoL be
refuted, that the cost of producing
wool in South America and in Aus
tralia is very much less than in the
United States; consequently an in
crease in demand would be taken ad-
vantage of more quickly there than
here; but even If il were not, the cost
| of production being So much less, the
production itself would be very much
greater there than here. Ii then the
demand for foreign Wools was to be in
creased by the removal of all tariff
from hal article and its products, the
South American and Australian grow
ers, because of their greater facilities
for the production of wool, would in
crease their production to such an ex-
tent as to flood the American markets,
to the exclusion of American wool, ex-
cept of those grades which cannot be
successfully produced in foreign coun-
tries. The inevitable result would be
hat American wool growing would be
practically wiped out, unless the Ameri
can grower could so decrease the cost
of production as to bring it down to the
cost in those foreign countries.
-Protectionists believe in the law of
supply and demand quite as firmly as
do our Democratic friends, and it is
this very belief in hat law which i'm
pels them to seek to regulate the law
in the interest of American industry
and labor.