The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1896-09-07
pArEaNALssM GONE TO SEED.

BISMARCK committed the 6erlndn EN-
pire to the policy of fostering, aiding
and protecting its industries In 1879.
With more of sincerity than our
American system possesses, he
sought to make 1t universal Every
body was to be directly benefited in
stead of, as with us, bonus
being given to few, with the expec-
tation that, directly or indirectly, they
would share it with the rest. He did
not hesitate to follow the logic of the
would not and could not foster, he
granted bounties. Himself Junker, he
took care that the agriculturfsts should
have their share of protection. 1t is the
law OF our nature that assistance
breeds dependence and that it con-
time that our manufacturers were will
ing to say that they wanted less or
no protection. Their cry and endeavor
has always been for more. German
nature is of the same kind, cast in the
same mold. The agrarians are clamor-
Gus for extensions of the policy, each
new enactment, by it's unforeseen eff
fects, creating a need for still further
artificial conditions.
The beet sugar bounty policy of Ger
many, as well as that of France and
Austria, illustrates this The same ar
guments moved Bismarck that we hear
with us now. Germany is importing
sugar; if properly encouraged, aided
by the state until 1t can stand alone,
the country can make all the sugar it
needs and keep the money at
home. So sugar making was added
to the paternalistic care Of the empire
A bounty was paid the beet grower
tax was laid on imports Of sugar
But this had to be paid for, and even
an emperor knows no way of getting
money into his f1sc except by taxation.
SO material tax was laid on the
beets, and an excise tax on the manu-
featured sugar, both of these being
paid by the manufacturer, thus leav-
ing the unsuspecting farmer under the
impression that he was being aided by
his government, unconscious of the
fact that the material tax on his
beets meant when the competitive
point was reached diminished price
for his product. Then came the point
of saturation, when home consump-
ton was home supplied and a surplus
was made that must be exported or
drag down the domestic price. Then
came the export bounty, paid to the
dealer who exported sugar to foreign
markets
But there the exporter met the COM
petition from other countries. Ceasing
to be an importing and becoming an
exporting nation Increased the supply
in the common market and, conse-
quently, the competition This the ex-
porter met by sharing first a part and
then all Of his governmental bounty
with the foreign dealer, in other words.
lowering the price abroad to the ex-
tent of the bounty, giving the for
elgner cheaper sugar than the do
nestle consumer could get. We have
seen something of the same effect in
our own experience in this fostering
business, when our manufacturers
were selling their wares abroad at
lower prices than they obliged the
home buyers to pay. Germany and
France gave the rest of the world the
cheapest sweets it has ever had, or,
PROBABLY, could have had under nor
NAL conditions. We have been de-
prived Of the full benefit of this by our
own foolish legislation that taxes food
imports, and, in the case of sugar. for
the benefit Of a trust Instead of the
treasury of the people. So great has
been the increase Of production in those
countries that the practical loss of the
Cuban supply has hardly been felt.
What the price would be, could the
millions of tons of Cuban cane sugar
have been added to the supply, cannot
be estimated.
But the curious result of it all is
that such an ENHANCEMENT of interests
has been created, the conditions have
become so artificial, that return to
the normal is almost impossible. The
! have at last realized that they are be-
ing hurt instead of helped; that their
bounties are offset by their taxes. and
they have recently moved to secure
from France cooperation in the abol-
ishment of the bounty system alto
gether. AS long as one nation contin-
ues it the others must In an address
they say the system is breaking down
of its own weight. Stimulated produc-
ton is reacting in ruinous competition,
while the only beneficiaries Of the
bounty, the exporters, declare they will
be ruined if the system is discontinued.
But the French are apparently con-
tented with the system. They say they
cannot compete with Germany and
Austria, whose lands are more fertile
and whose labor is more :skillful. But
the inevitable end is not far off. I'm
less the artificial structure is taken
down slowly and with careful hands,
it is bound to topple over and crush
those under it. 1t is paternalism gone
to seed.
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