New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-08-25
A TEST or THEORIES.

| The people are fast coming to a practical
| test of tariff reform theories. At the bottom
| of all ree-Trade reasoning there lies the the
orv that the people will be able to consume and
will consume as much without Protection as
| thew have done with it. For the present, it is
admitted that consumption has materially dl-
minished. and this is attributed to financial
| difficulties But presently, men argue, the old
clothes will be worn out, and stocks OF goods
| in country stores will be exhausted, and the
millions needing the same supply as before
will get them, only at somewhat lower cost
| The mills will be started again, perhaps paying
somewhat lower wages, but for that the lower
cost of products will compensate. The country
is so mighty and 50 prosperous that It's indus
tries cannot long be depressed.
All may sincerely hope that these theories
will prove correct at least as to the recovery,
il not as to the cause. But in order to reach
a clearer understanding, let it be supposed that
the depression will for time deprive quarter
of the workers of employment Already about
a quarter of the shoe and cotton machinery is
idle AZ Der cent of the woollen and a. per
cent of the knitting machinery, and at least
a. per cent Of the iron machinery which i'm
of iron ore and coal and limestone used for
manufacture. Also let it be supposed that re-
auctions of wages, which have ranged already
from 10 TO 80 per cent in many establishments
still at work, will average at no distant date
about 20 per cent Then for every dollar cX-
pended by the millions last fall a quarter will
not be earned, and of the remaining - cents
) will be taken of by reduction Of wages,
leaving 60 cents to be expended instead of
1 90 cents last fall.
If it were possible to reduce all prices in that
proportion. the people as whole could con-
sumo as much as before. But it is not pos
sibIc. because about 50 per cent in value of
things entering into the cost of living arc the
products of farms. and such products are all
normally low the farmer finding II difficult TO
make ends meet. But again, the cost of a
large proportion Of the manufactured products
used by the millions has already been reduced
bv home competition so far that such goods
are as cheap as in any other country. This is
true, as FrecTrade Investigators themselves
admit of all the cheaper grades Of clothing
such as the millions use But these manuTact-
ured articles cover at least quarter of the
total expenditures. Thus no reduction can he
expected as to 40 cents on the dollar repre-
senting farm products, or as 10 - cents on
the dollar representing the cheaper manufact-
ured products, and if all other expenses were
reduced to nothing, rents, fuel, lights, per-
sonal services transportation. and the Injuries
and comforts imported from abroad or pro-
duced at higher cost here. still the co cents
earned instead of the 81 earned last fall would
not suffice TO cover mere necessities.
The Free Trader believes that the man who
is thrown out of work will still eat a much.
wear rs good clothes. occupy a coed home
and procure as many OF all the Injuries and
comforts as the man who earns good wages.
We shall see if it is true. The theory is that
men who earn lower wages will be able {, buy
lust as much with those wages because things
will be cheaper But the farmers do not know
how 10 cheaper their wheat, and the manu-
facturers of cheap woollens and cottons and
shoes cannot sell even rs cheaply as they do