New-York tribune., 1896-11-16
TARIFF DISCTS SSION.

4 good many business men seem 10 omit iheT
practical knowledge and bid farewell to ther
common sense when they talk of the iarn rs
it is now certain that there must he discussion
of the subject until the revenue laws have bcch
so altered as to give the Treasury enough money
for necessary expenses. and to give the indus
tries better protection against foreign conlpe-
tition it would seem obvious that the sooner
the matter can be taken UP and settled the bet
ter for all business Interests But the few III
tercscd parties who profit by trade in foreign
rather than domestic products keep UP per-
petual outcry that agitation of the tarti q'ies-
ton is always bad for business Surely com
mon-sense and business experience might he
protitably applied to this subject. 1t never de-
presses business of any sort 10 have an I'M
preston prevail that prices are going to be
little higher
When consumers think prices are likely to he
materially reduced, as they were laborlously
persuaded in the campaign OF lST2. they nat
urally defer purchases as far as they conven-
Ienly can That makes business stagnant.
Dealers Of all sorts are unable to sell off their
stocks as soon they expect. and moreover
do not want to take in new stocks at time
when a rival. by buying a little later. may he
enabled to undersell them. When consumers
and dealers both restrict purchases. manu-
featuring works have to close and wait. EX-
actly this state of things resulted in the winter
of 1892 and the spring Of 1893 from the agiia
ton for reduction of duties. and the belief Ia
boriously taught by Democrats that prices were
going to be greatly reduced.
The expectation Of an advance in prices has
lust the opposite influence. There were thou
sands of purchases made in October because
men had an idea that Mckinley would he
elected and that holders of all sorts of ma
terials and products would then look forward
to an advance and hold for higher prices.
The mere anticipation Of coming advance
caused some rise, and more has come since the
election in iron. wool. leather hides and many
other articles. There are thousands OF con
sumers who have begun 10 think already of buy
ing at present low prices a suit of clothes. a
dress a carpet, or something else they know
they are going to want because they think they
NAV have to pay more a little later. But
when many consumers buy each n little more,
dealers stocks the more readily reduced,
and they are the more anxious TO buy soon il
they think that little later the goods VIII cost
them more. So the increased orders stimulate
the manufacture. which in turn anticipates as
far as it can by buying materials if they
are expected to advance The idea that higher
duties may cause some advance in prices is not
necessarily correct as to many articles. and yet
It is widely prevalent, and Is the natural
consequence Of the labOrious teaching that du-
ties have wickedy raised prices. The men who
realize that thriving and growing home manu-
facture, by its own competition. in the long run
| always lowers prices for consumers. may also
| perceiye that the immediate effect of a change
! may be TO advance prices to some extent for a
| time
These are not mere theories but the teachings
| Of practical conmOn-sense and practical eX-
| perience also. From 1866 TO 1880 there was
| never an agitation Of the tariff question that
| did not look toward some reduction Of duties,
| and in not a single instance did such an aglta-
ton fail to depress business. On the other
| hand everybody knew throughout the year 1S'U
that an advance Of duties was to be expected.
and in that year. and every month Of that year.
| business was larger in volume and better in tone
than it ever had been before. Men who cannot
| trust their own recOllectons can find abundant
proof Of this in all the records Of clearing houses
and Of trade. Agitation to put down duties
looks to lower prices and checks trade. Agita-
| ton to strengthen duties and more cffcctually
defend home industries always leads men 10 ex-
pect higher prices. for time at least, and
hence always stimulates trade.