The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1896-05-18
AN ECONOMIC PRINCIPLE.

Nothing could be wider of the truth than
the assertion of the Democracy that pro-
tective legislation is Iegalzed favoritism
1t is self-evident fact that the effects OF
legislation, be they good or i'll, do not ex-
haust their influence until every business
interest is involved. The unwritten as
well as the written laws which govern in
all the avenues OF trade interchange could
not II they would build up one industry,
or strengthen the position of another, and
exempt all others from participation in
the consequences of such favoritism.
There is necessarily mutual dependence
between all business enterprises in a
country like the United States, where no
one enterprise greatly predominates. This
is not altogether an agricultural, manu-
featuring, mercantile. mining or mechan-
ical country, nor does either one of these
vacations conspicuously transcend any
other. In their direct and personal ope-
ration each one is wholly independent of
every other, but it is very different when
they come to dispose of the product of
their effort.
The farmer is free to SOW and reap in his
own way, but WI en- he comes TO market
the product OF mis- fields he must first
gather up the threads that bind him to the
distant consumer, and should the strength
of the thread which binds the consumer to
the source from which he gathers that
which enables him to buy the farmers
produce be weakened or broken, not only
Is the market of the farmer closed but all
the facilities that are employed by him to
reach the distant consumer are crippled,
and not only so, but all intermediate III
dustries and individuals are involved.
The Democratic party says it would be
better for the farmer to continue his Jour
ney in search of a consumption market
across the ocean to Europe, because the in
dustry which makes a home market for
his produce is protected against foreign
competition at the expense of the farmer.
Assume. then, that free trade prevails and
the home market is destroyed by reason OF
the suspension OF the industry which EN-
ployed operatives who made the market
Tor the farmers produce. To reach con-
sumers in Europe he is now Obliged to en-
pIoy additional intermediate forwarding
and transportation agencies which swell
the cost of marketing the yield of his
fields. But that is not the most discour-
aging condition of supply and demand
which confronts him between his barn
and the European consumer. When he
offers his breadstuff and provision in, say,
the Liverpool market he is told that prices
are fixed by the cost of raising cereals and
provisions in Asia and South America.
Thus does free trade bring the American
farmer down to the level OF something
worse than the pauperism of Europe.
That is the truest economic principle, Sc
far rs the farmer and his market are con.
cerned. which most reduces the distance,
and hence the cost of transportation, be.
tween himself and the consumer of his
produce. The closer he can induce EN-.
ployers of men to establish their enter
prises to his fields the greater will be his
profits. This economic truism does not
however, apply only to farmers. 1t is
necessarily the fundamental principle Of
true political economy, and until it is per.
manently adopted the Nations prosperity
is bound to be spasmodic and unstable.