The Maryville times. (Maryville, Tenn.) 1884-1944, 1898-03-12
FINANCIAL SUPREMACY.
Foreshadowed as the Result Of
American Protection.
Our Present Economic Policy VIII
Soon Place the United states In
the Lead of All other COM
mercial Nations.

Some very striking facts are men
toned by the New York correspondent
of the Sydney Morning Herald. Within
the past month, he writes, the East In
dian railroad has bought 7,7Os tons of
rails from the Maryland Steel COM
pany, because, as stated in the British
parliament, the bid was GS,675 lower
than asked by the lowest English ten
derer. All the electrical locomotives,
carriages and machinery for the new
underground London railway have been
contracted for with an American firm,
and a Wilmington car building COM
pany has received very large order for
cars from the English Southeastern
railway.
The Herald's correspondent is
amazed and COMPOUNDED. Indeed, he
well may be. The circumstances give
practical contradiction to essential ar
guments Of doctrinaire free traders.
They exhibit industries which had to be
protected from infanticide on the part
of mature British comprehensive
| wicked uncle of the economic child's
story-grown dp and attained to such
robustness as to be able to contend on
more than equal terms for share in
the disputed inheritance of the worlds
trade.
Intrenched against attacks from
without they are able to make vigorous
sallies, and carry the war of COMPETE
ton into the enemy's territory. The
oretically, they should be feeble,
aenemic industries, ready to faint and
die the moment they were deprived of
spoon feeding"
Confused by such an utter rout of
theory by fact, the correspondent in a
helpless sort of way seeks consolation
in the thought that the thing can't last.
This recourse to prophecy lands him in
worse predicament than that which
he hoped to escape. His only ground
for arguing that the advantage of the
protectionist over the free trade coun-
try cannot continue is in effect that the
former has reduced the latter to sort
of poverty. "How," asks the bewildered
correspondent, "can such transactions
possibly continue if the buyers are shxt
off from paying in the only currency
they have to send-other goods?"
During the past four years, he de-
clares, Europe has been almost drained
dry of floating American securities. In
other words, America has by virtue of
the output of her protected industries
paid off her Indebtedness to England,
and American promissory notes are
now in American strong boxes. Nay,
more, last year England had to settle
up with SS0,o00,000 in gold. This opera
ton was perceptible in Australia. Much
of this gold was shipped from Sydney
to Frisco, the plain meaning OF which
: was that Australian indebtedness to
England had been hypothecated to
America. Just as banker compels an
indebted customer to hand over mort
gage deeds held by the debtor from
third parties, and requires that the in
terest be payable by the mortgagoi
direct to the bank.
But, argues the free trader, there
: must be limit to this. The United
States, by tariff enactment, practically
refuses to permit England to pay hel
trade liabilities in the only currenc.
she has to send-other goods.
! This is begging the question. In trad'
: transactions nations do not require Of
: need yearly settlements of principal
Great Britain has never done so; Venic,
:. never did; nor did Genoa. The idea i
;, preposterously at variance with univer
sal practice and convenience.
A nation or community CONNER
g cially supreme is content with tn
! tribute of interest. Instead of United
States securities being held by the cap
italists of England, British securitie
will be held by the. capitalists of TIL
9 United States. Instead of vast sums il
dividends passing from New York II
q London, the direction of the remit
tances will be reversed.
9 The tariff laws of the United State
may be bar against repayment in Brit
II ish manufactured goods to the exten
y of annual balance of trade. But SOM
of that balance will be capitalized, ant
the rest will be paid in such form a.
suits the creditor. If British manufac
: lures be objectionable, raw materia
a from her colonies and those mart
l. which have hitherto supplied her fac
tories will doubtless be acceptable.
a Frankly considered the way out o
n the difficulty which stuns the Sydne.
j. Morning Herald's correspondent |
n plain enough. But 1t indicates trans
1t fer of the financial and trading su
r premacy, of the world, the triumph o
W the protectionist system over the fal
t. lacious theories of Cobden.-Australial
Star Sept. 9, 1890.
Acted in Time.
s. 20 1,a fOrno+tap that 3b