The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1897-09-30
NELSON D|NGLEY WRITES
O NTHE PRESENT CONDITIONS IN
THE STATES.
Declares Prosperity and Protection
Have Come to be Pcrmancnt-rrec
silver Fallacy Knocked Out.

There seems to be a concession on
all sides i'm the United States that
genuine revival of business has set in
during the past two months. which
promises gradual but solid improve
ment until the country reaches tine
great prosperity of the period from
1879 to 1898.
1t is more than coincidence that the
beginning of the industrial and BUSH
ness depression was Immediately af-
ter il became known the Presidential
and Congressional elections of 1892
had resulted in a complete triumph
of men pledged to overthrow the pol
icy of protection. 1t is inevitable that
n change from such policy to the
policy of encouraging home produc-
ton and manufacture determined up
on at the recent session of Congress
would tend to ulspel distrust and TO
establish confidence, and these results
are quickened and strengthened by
the conviction among business men
that the scheme to depress the cur
rency was given a fatal blow by the
result of the election last November.
and also by the concurrent rise in the
price of wheat and other farm pro-
duets.
It is probable that dollar wheat is
not to be expected in the future when
the wheat crop is abundant, for the
reason that reducing the cost of hand
ling wheat by machinery and the COM
petition of Russia and Argentina will
make it possible in ordinary years
to profitably grow wheat at lower
price. But wheat and other farm
products will not be as low as they
nave been in the past tour years OF
depression, tor the simple reason the
restoration of the purchasing power
of the people means an Increase OF
consumption and consequent mainte-
nance OF better prices. And with TINS
demonstration that the prices OF farm
products as well as of everything else
are made by the cost of production
and supply on hand, and the demand
on the other hand and not by the price
of silver, the 16 to 1 free silver fallacy
will be dealt so serious blow that
it must eventually give way to the
teachings of experience, just as the
fiat money fallacy gave way in loF9-
1850 to the object lesson OF the Nivi-
fying effects of return OF sound
money.
1t would be too much to expect tine
Is to silver fallaCy will nor ue an
issue in the Congressional elections OF
next year. especially if, as it is proc
able, wheat is lower next year tnan
now and free silver leaders are able TO
! maintain their hold on the Democrat
ic party. But the importance of max
/ ING an end to this source of distrust
| &C 1t =
men of the country will be found in
solid opposition to this falllcy. as they
were last year.
There is no good reason to believe
that we shall have another tariff agi-
tation to disturb the business of the
country for many years.
In the second place the industrial
and business interests of the country
after the experiences of the tariff ag-
itation which they have had in the
past four years, will demand tarih
repose. And in the second place be
fore any active steps could be taken tc
revoutioniZc our tariff, our industries
and business will be so thoroughly adj
justed by the new tariff. and will ther
have before them so complete dem
onstration OF its beneficence in com
parison with the results of the tariff
of 1894, that any attempt to carry al
election against protection would bt
futile.
There can be no doubt that the pro
tective tariff today is stronger than il
ever has been in the history of the
country. If any one doubts this le
him interview the average citizen "a
he meets him, and he will find grea
abundance of evidence that protection
has come to stay.
What took place during the fouI
months the tariff bill was being con
sidered in the Senate is well known
Not far from one hundred million dol
lars worth of merchandise in excess
of the amount imported in the sam,
period of the previous year was i'm
ported in advance of any demand TO
consumption, simply for the purpos
of avoiding the payment of new or in
creased duties provided by the pend
ing bill.
If the new bill had not been pend
ing not one dollar of this would hav,
been imported after July "a, and tn
S32 100000 paid in duties at the rat
of the old law prior to July / would
have all appeared as revenue for tn,
present fiscal year, and the deficienc,
for the last fiscal year would have in
creased to $4,000. 600 instead of ben!
only about $1S,000,000.
But there has been a great loss o
revenue by the importation of mer
chandise, like wool, free of duty, un
der the tariff of 1894, and dutiable I'm
der the new tariff, and of merchandis
like sugar, on which the duty is i'm
creased by the new tariff. This loss i
absolute, and is estimated at nearI
Si0,000,000.
There Will be no revenue from su
gar and wool and many other article
imported before the new tariff becam
a law. II is estimated the loss of rev
enue from anticipatory importation
under wool and woolens. sugar. sill
manufactures of flax and tobacco 70
several months will reach nearly $40
100000 month. But by January, am
perhaps earlier, the stock of sugar an
many other articles imported i'm ad
vance to avoid the new duties will b
Al =.