The herald., 1897-05-02
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! ! MR.. KlNhEY'S 4
! ECONOMICS )


|T ECONOMICS :
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Mr.. Kinney, like many another free
trader, is unquestionably strong In his
destructive criticism of the protection
list theory. I quite agree that a pirate
| feet, lowering about our harbors, de-
stroying half our imports, has about
the same economic effect as 80 per
cent tariff, but while agreeing to the
identity Of effect, do not by any means
agree as to the harmfulness Of that ef-
feet in regard to the alleged
lowering Of wages. The free
trader always assumes as AK
iomatic that increased powers of pro-
duction are necessarily concomitant
with increased wages. With this grant,
ed, 1t Is simply necessary for him to
show that free trade increases the pow
er of production to prove that free
trade increases wages. Now, l abso-
lutely deny that wages necessarily In
crease with increase Of productiveness.
Let the free trader first prove this, and
I will admit all else. as I myself admit
that free trade increases the product
iveness of labor.
It is right here the orthodox protec-
Zionist falls down. He fears he will
give away his entire case II he denies
that labor must necessarily share in
any improvements made in the produc-
ton Of goods, and hence he feels him
self forced to contend that free trade
fails to have any such effect.
The protectionist constantly places
himself in the most ridiculous attitudes
in his vain endeavors to disprove the
almost self-evident fact of the increase
in the productiveness of labor which
must necessarily come from the break
ing down of any barrier between the
laborer and access to more effective
machinery Of production.
He practically tries to show that 1t
takes less labor for the Cuban to make
his own ice and the Canadian to raise
his own bananas under glass than 1t is
for them to exchange products, each Civ
ing what it is easy for him to produce.
owing to his peculiar climate and other
natural conditions, and taking what
the same conditions make it difficult
for him to produce.
The stupidity Of the protectionist in
denying the advantages that accrue to
productiveness from the free exchange
of products Is only eQualled by the etu-
pidity Of the free trader in calmly assum-
ing without accurate investigation that
this increase of productiveness
must as matter of course ben
eft the laborer. The free trader
assumes that we are living in
the best possible Of worlds under the
best possible Of economic systems, and
that the laborers divide up the total prod
uct between themselves on an equitable
basis. so that IL any general increaes Of
production takes place the laborers have
just that much more to divide up. In
other words the free trader assumes that
socialism Is already introduced and is in
full working order. If the free trader
and the protectionist would first come
together and settle once for all what de-
termines the rate Of wages there would
be a lot of irrelevant discussion saved.
1t would not be out of the way either
II the free silver man also Joined in this
conference.
1t has always been a most singular
thing to me that while the fixity Of the
law Of wages Is seen daily in every mans
life. and the knowledge of this law is
|of primal necessity in the conduct of
every industrial undertaking, yet when
men begin to discuss economic questions
one would think that they knew as little
Of the principles governing the rate of
wages as they do Of the manners and Gus
toms Of the Inhabitants of Mars.
If you are looking for work and go to
a prospective employer with your petit
tion you will find that his reply given
you In his capacity Of business man,
In his private office. will be quite a DIFF
fenent affair from the talk he uttere on
the stump as politician.
AS business man he will tell you that
the wages he will pay are determined
not In the least by what profit he can
make out of your labor, but simply and
entirely by what he must pay a substi-
tute in case you decline his offer.
This will be a business mans reply.
whether the scene takes place in free
trade England, free silver Mexico or pro-
tectionist America. Neither the tariff nor
the currency has any direct effect on
wages. Demand and supply settle the
price OF labor exactly as they settle the
price Of every other commodity. If free
trade increases the demand or dimin-
1shes the supply of labor wages will rise.
and not otherwise. Mr.. Kinney pins his
faith on an increase of wages coming
from free trade owing to its increasing
'productivenese of labor. This does not
follow. grant the increase of produc-
tiveness, but insist that free trade must
also create an increased demand for
labor before I will admit that II Will in
crease wages.
Free trade is simply labor-saving de-
vice and has exactly the same economic
effect as labor-saving machinery with
this important exception. The use OF
steam power for instance, instead of
hand power in a country means the es-
tablishment Of the steam engine in that
same country, say France, for instance
This means a certain benefit to labor re.
mains with France both from the maxi
ing of that engine and from the running
OF 1T after 1t Is made. The use Of the en-
gine may throw some men out of en-
ployment, but certainly the effect is not
so great In this direction as II the en-
gine were built and operated in England
and the product shipped into France.
Now, this Is what free trade would
usually mean. There Is no doubt, taking
world view of the case, but that It
vuol11d fr1 o5,,o