The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-09-21
AGR|CUL TURAL STAPLES,
The Subject of Their Pro-
lection Discussed by
David Lubin.
FOR A BOUNTY ON EXPORTS
Lucid Explanation of Views Show
ing the Inadequacy of Free
Trade Remedies.

| The following communication on David
Lubin's proposition for the protection of
| agricultural staples will be read with in
| terest, more especially as the writer is the
| author of the proposition and Califor-
MAN. His plan for the amelioration of
trade and agriculture has been held by
some of the leading thinkers of the United
| States as worthy of more than the usual
| consideration, and the Home Market Bull
| letin of Boston, recognized market
authority-has discussed it at length. In
reply Mr.. Lubin states:
| Editor Home Market Bulletin; Boston, Mass
| Your September issue contained lengthy edi-
| torial review of the proposition for the protec-
| ton OF agricultural staples by an export
| bounty in reply to letter from Alex R. Smith,
| the editor of Seaboard OF New York.
With your permission l will briefly review
| some OF your statements, in the hope that free
| and impartial discussion of this question must
| in the end serve useful purpose.
On pages 3 and you quote from a speech
which l delivered on this proposition before
| the Portland (Or.) Chamber of Commerce, as
| follows:
| Summing up we find that because we imp ,rt
must export. We cannot export protected manu-
features because foreign nations will not accept
them on account Of the artificial enhancement of
their prices caused by protection We must, there
fore, offer them some commodity in exchange for
OR imports at the worlds freetrade prices. That
commodity is agricultural staples and this is veri-
fled by the United States statistics, which show
thu our exports are follows; Mining forestry,
fisheries, m manufactures and miscellaneous. rs per
cent; agricultural staples, "a per cent To dimfn-
ish or TO cease exporting agricultural staples at
free-trade prices would compel US to diminish or TO
cease exporting, or to bankrupt the country by
paying in bullion. 1t was shown previously that
as soon accept the worlds price for the ex-
ports Of our agricultural staples we must also &C
cept the price for the greater quantity sold
for home uSe Those, therefore, who assert that
agricultural staples directly indirectly pro-
tected are in error.
We must conclude, therefore. that manufactures
protected at the expense of agricultural staples,
ana as the cost OF protection is very great the I'M
Justice therefore is very garng and without par
allel in economic history among civilized nations
The remedy is clear. We must place all Ameri-
can industries on an equal footing We must pro-
tect none or we must protect all In protecting an
industry producing a surplus for expert must
adopt different method than that for the protec
| tiop of home manufactures against imports The
latter requires a tariff against imports, while the
former requires a bounty the exports. The
bounty on the exports will do for staple agriculture
precisely what the protection tariff does for home
manufactures. and the operation of the two will
equaliGe the cost OF protection
At the conclusion of the quotation the Home
Market Bulletin says
| The one grand assumption upon which this
theory rests is that staple agricultural products
not and cannot be protected, directly or indirectly
! by duties on imports when there is surplus for
export and its only other basis is that protection
| enhances the cost of the manufactures and other
Yes, this one grand assumption" or rather
! the two assumptions above specified, once
| proven groundless would render this PROPOSE
| tion OF no value whatever. may be permitted
| to add right here that If the Home Market Bull
| letin has proven its case by the arguments
| given against this proposition then IL has rem
| dered the protection wing OF our political
| party great and lasting service. ii on the
| contrary it can be clearly shown that the
premise, argument and conclusion by the
| Home Market Bulletin willno stand the test
&, a ,a1l
| be expected that ii will the more readily be in
| a mood to place this proposition to rigorous
| test best calculated to determine the real
| truth at issue, regardless OF any bias engen-
| dered by prOconceNed notions.
| Continuing, the Home Market Bulletin says:
Doubtless Mr.. LubiD and. Mr.. Smith will agree
that if these premises are proved untenable the
| whole theory must fall. AS partial answer TO
the 1rst take this extract from the Chicago Inter
| Ocean:
| tThe farmers of America, who were deluded in
| 1890 and 1892 by the free-traders cry, Liverpool
fixes the price of wheat now have painful leisure
! in which to discern that Liverpool fixes the price
| in accord with the American demand. When our
! factories running full time and when wages
are high the price OF wheat is high in Chicago and
| consequently in Liverpool"
| SO then, according to the Inter Ocean, ''When
our factories are running full time and when wages
high the price OF wheat is high in Chicago and
| consequently in Liverpool"
| With the permission of the Home Market
! Bulletin will reverse the order of this state
ment. using the words agricultural staples"
!
reach the minds eye:
"When the prices of agricultural staples are high
| in Liverpool, consequently in Chicago. then our
| factories are running iull time at high wages"
| The two statements are clear enough as far
| as simple words can make them clear. There
| should not be any misunderstanding as to
| their meaning, yet they convey diametri-
cally different idea and lead to radically diff
| ferent conclusion. The question is which is
| right? Upon a proper understanding OF this
| rests the solution of the greatest economic
! question confronting the American people,
| and in the solution OF which is involved the
| tendency of the republic
| If the Home Market Bulletin and the Chi
| cago Inter Ocean have any doubts in the mat
| ter let them take these two statements to the
| capable and honest political economists of our
| country; TO the men of experience in the wheat
pits or cotton exchanges; to experienced man.
uiacturerS; to men having O wide range of
business experience in this and in foreign
countries, and in almost every instance they
will find that the first statement is wrong-the
second is right So evident and clear is the
proof present that 1 nm spared the task of
copying mass of facts and figures by the
timely appearance of d most convincing article
in the very same issue of the Home Market
Bulletin itself.
The article in question is on page and is
reproduced here:
ARGENTINE AS AN AGRICULTURAL COMPETITOR.
The Argentine Republic produced In 1894 more
than 100000 tons OF wheat In 1878 it inn
ported $4,000, 900 worth OF wheat. These two
statements will show at what pace the country is
being developed. A single railway that fifteen
years ago did not carry ton of wheat now trans
ports 427 600 tons year, and others in proper
| ton, and yet who knows anything OF the
country will deny that but small fraction of land
has been sown even in the wheat belt; so that If
all should be sown which Is adapted especially to
wheat the 2000, COO tons would be 10000 .O00 in
deed it will not be long before 10,0U0,000 per
| nun is reached We speaking OF the
! northwestern belt but we must not forget the far
south, where nothing has yet been done in the way
of corngrowing, but which is as fertile country
| as that which has been planted.
These figures from the Buenos Ayres Herald.
| That paper expresses great hope for the country
| and adds:
..All we have said OF wheat would apply to barley
! oats rye and MAIZE and we may with confidence
| look forward TO the time, and that not distant
| one when Argentine will export more cereals to
| Europe than sent from the United States.
| The great wheat sections are none OF them more
| than SO miles from ships which will carry prod
| uce abroad, while in the United States the whest
| fields are 1000 miles from shipping. The cost Of
| transport handling and loading is here less than
| in the United States, that the latter may well
| regard Argentine its most formidable Compel
| itor in feeding the millions of Europe"
| What is here said of Argentine may with al
| most equal force be said of other cheap land
and labor countries
The United States has been exporting agri-
| cultural implements and machinery mostly for
| the cheap land and labor countries at the rate
| of about $5 100000 year. Yet this only a
| small portion actually exported to those coun-