The morning call., 1894-05-20
HOW FREE TRADE WORKS.

The Stockton Independent makes good
point against a free-trade business man of
that city, who was indignant because
neighbor bought in San Francisco for SIS
an article which the Stockton free-trader
was selling for $40. The Independent
says:
He argued that 1t was unwlse, unjust. un-
neighborly ana bad business policy 10 send the
money away from home without al least trying
10 get Tie same goods at home for The same
price. All his arguments were like those APP
piled by Republicans to support the protective
system, but he refused TO see that he should ex-
tend the operation of the principle he argued
beyond The limits of his own town. H. is just
like those Democrats who approve the "Home
Trading Association" recently started in the
Northwest and yet denouucs protection as
fraud.
The home trading principle Is about all
the protection a comparatively small COM
munity has against the competition Of the
several countries which have a speciality
in which they excel. There are certain
lines of manufactures, including iron and
steel, in which Great Britain has led the
world. In France, in Germany. in Brus-
sells and in most other European countries
combine to make each the cheapest pro-
Queer Of certain lines o; goods. Under
free trade the rest of the world must CON-
pete with these several nations in the line
in which they are the most successful
On high-priced goods transportation Is not
an appreclaole protection to the distant
community. Competition is practically
even. If the small community cannot pro-
duce goods as gooo and at as low a price
as its distant competitor it cannot sell its
product. Tariff duties are designed
to protect the producers of one
country against the competition of
distant countries, each of which IS en-
abed by natural advantages or acquired
facilities to supply foreign markets at
prices lower than the home cost of pro-
duction. Unless this form of protection
may be invoked. the centers of industry
would supply the whole world. On the
principle Of letting each nation do what it
can do best. which is the foundation-stone
of free trade, the United States would be
allotted the task of producing raw mate
rial for Europe to work into finished
goods. Capital in This country would not
build factories that would be unproduc-
tive in consequence of the ability Of some
other nations TO undersell the home
product in the home market. OF course,
among the States of the Union there can
be no protection. Each State selects its
own lines of industry according TO its
advantages Iu consequence of this San
! Francisco buys most OF its boots and shoes
of Boston. The shoe business in that
! locality Is conducted on more econ omi-
! cal principle tnan as yet prevails with US.
| The same is true of most other articles
of common needs. We can buy them a
! little more cheaply than we can make
| them. But the hardship of free trade is nit
| Igated by the fact that the Eastern States
do business under nearly the same condi-
! lions as this State. The advantage they
| have is in a more perfect system, closer
economy and worn channels of trade. IL
/ time equality in these respects will be
established. since there Is but little fer.
ence in the standards of living in the Eas
and in the West. Abroad the average
standard is lower.