The San Francisco call., 1896-06-21
THE PHILOSOPHY OF PROTECTION

There is q scientific and economic value
to the operation of the existing tariff act,
but unless we profit by what it teaches we
shall be not better circumstanced. "We
learn geology the morning after the earth
quake" says Emerson. What is true OF
geology is true of economics. 1t is in the
wreck and ruin of oyerthrown commerce
and industry that we must look for the
cause of disaster, but if we do not read
the lesson aright-if we do not correctly
follow the effect back to the cause and as
certain wnere we have acted without judg-
ment and understanding-we still grope
in political darkness. It was not intended
by the authors of the present tariff law
that it should injure the people. The
principles of all political parties are right
in the abstract, for they mean the better
ment OF the people. 1t is the policy or
way OF giving them practical and active
force in operation that works good or
harm.
The principles of the Wilson-Gorman
act are in perfect accord with the objects
the founders OF the Government had in
view-that is, the advancement of the peo-
pie in all ways that are calculated to
further secure to them personal liberty
and the largest possible returns upon
effort honoraby expended. But the pol
icy which the Democratic party adopted
to reach the desired end was faulty
throughout, and hence in operation the
principles of our Government failed 10
give the people the proper degree of pro-
lection at some points and gave them too
much at other points, and at both points
and between them the commerce and the
industries OF the people were, consequently,
greatly weakened; and not only so, but at
best the act could not produce enough
revenue to supply the needs OF the Gov
ernment's expense account. Thus, while
the principles of the Democratic party as
to custom house levies upon merchandise
imports are correct, the party's applica-
tions of them are seriously harmful. 1t is
only fair to assume that it was not mali
cous intent but inability to comprehend
an economic problem so complex in its
relation TO the diversified interests of the
country as is the tariff question that
plunged the nation Into such whirlpool
of commercial disaster.
The policy of the Democratic party has
created or caused an earthquake of great
dimensions in the world of business and
We know the cause of it. If we shall
profit by the lesson which the scattered
rocks teach, there will be no more up
heavals of that kind. The danger which
free trade would subject the country to is
well known, and we know how to avoid it,
but quite as much harm would confront
the people were unjust and discriminating
tariff laws to prevail. 1t may sound para
doxical to say that for the most part the
nation must look to taxes upon importa-
tions to support the Government, and at
the same time prevent by high tariff laws
imported merchandise coming in compe-
tition with our manufacturers, but it is
not paradoxical, for nothing of the kind is
contemplated. A protective tariff has
many duties to perform. In the first
place, it must be SO shaped that it will
prevent the formation of trusts and
monopolies. That could not be done
under tariff that was prohibitory.
In the next place it must protect our in-
dustries up to where our industrial wage
men are secure in constant employment at
wages which enable them to have a rea-
sonable balance, il they will, on every pay
day after liquidating their debts contracted
meanwhile for comfortable living. The
industrial plant must be protected up to
where it is amply compensated for the cap
ital invested in it and for all expenditure,
direct and indirect, incurred by its opera
ton. From that point on competition
should be invited from every quarter.
That would prevent the formation of
corners and the like to advance commod-
tiles to abnormally high prices, for the out
side manufacturer would stand ready to
supply the people at former prices. II a
TRUST should attempt to reduce prices be-