The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1893-12-16
TALK ON TARIFF.
.
Close of the Political
Economy Course.
ne MercantiIists and the Physio-
ll-ratics Principles of the Man
chester School Expounded.

In the ninth and last lecture Of the uni
yersity course on Political Economy"
:: " llich was delivered by Professor c. G.
:, P1ehn in the Art building last evening.
the subject Of international Exchange"
was considered, and the tariff history of
the United States was given st length and
infinitely
: In speaking of the cosmopolitan stand
= point from which some economists con-
i. slider international exchange versus the
national standpoint Professor Phlen said
that the most obtIusive fact which mill
tates against this is the existence OF ma
tions. They are growth, body of peo-
pie politically under tile same government
and laws, socially organized, actuaied by
the same spirit and generally akin In Ian
guage ana religion. We cannot ignore the
fact Of their existence, nor the fact that
great differences exist between them.
On the other hand we cannot strictly
liken nations to individuals In exchange,
as advantages do not accrue to nations in
the same way as to individuals, and al
though individuals may not be entirely
selfish nation must be, though some times
its pest interests are served by considering
the interests of other nations.
In the international exchange IL is not
ducine goods which determines whether
or no the exchange shall be made More
over, when two articles are produced in
the same neigbbOrhood one of the most
important factors in fixing their relative
value is their absolute cost Of production
but when one of those articles is brought
from distance its value is influenced
little by It's cost Of production in that dis
tant place, but 1t is largely affected by the
cost OF production of the thing for which
1t Is exchanged. The more perfect ex-
change becomes the less important are
national boundary lines. A better distiuc-
tlon for economies recognizes local aGyan-
q: tages IN producing certain lines of COM
moditles; thus districts lying within the
same nation may exchange on exactly the
same principles as those attributed TO in
ternatlonal exchange, as New England
and the South; or portions of d strict of
the same economic quality may lie in diff
ferent nations, the formation of the Ger
man customs union under the leader
ship OF Prussia being result of the latter
condition.
In speaking of the attempts which have
been made to regulate commerce the lee
turer said that the mercantilists in the at
tempt 10 foster home industries advocated
restricting both exports and imports, re-
strictng the movement of precious metals,
ste, while the physiocratics although ad-
verse TO such regulations as a general
thing. did admit such restrictions as far as
they affected agriculture especially.
Until The establishment of what is
known as the Manchester School proper,
which really is synonymous with the doc
trlne of laisseZ faire. in 1889 these prin-
ciples of which that school makes practical
application were considered to be unat-
tainable Ideals.
Economic thinkers of to-day stand ON
common ground as regards the fundameD-
tai principles of economies, but differ as to
the application of these principles 10
specific cases
There are four objects for which ma
ton may. with good results, restrict It's
- foreign trade-to diversity its own indus
tries, to make itself independent Of for
elgn wars, III The way of commercial. wal
to crush trade monopoly or trust in an
other country hostile to home industries,
TO compensate for internal taxes. 1t is
agreed further that revenue tariffs are
legitimate forms of taxation, just and de-
sirable iD many cases, and that whenever
1t is possible to have International free
trade without detriment to different ma
tions IL should be put into operation. Ex-
port duties are now almost unknown.
The professor then proceeded 10 give the
history of the American tariff. Tariff is
scale or system of customs duties, which
are taxes laid on the importation of vari-
Gus comm ODDITIES into a country. Such