The Lambertville record. [volume] (Lambertville, N.J.) 1872-1968, 1899-08-02

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Producers Instead of Diminishing
Them by the Removal of Protect
I've Tariff Duties.
If the house leaks, Is 1t the best rem
edy to burn 1t down? Surely practical
people would inquire whether the cost
of mendIng the leak might not be less
than the cost of building new house.
This problem appears to be raised by
the Washington Post, which, after
nppreclntive comment on remarks of
The Tribune regarding advances In
price Of few commodities, states that
"lf the combinations Will not halt In
their hosting Of prices, If they push on
until they cripple our growing export
trade by Unfortunately increasing the
cost OF production, we shall confidently
expect The Tribune and every other
consistent advocate Of protection to
urge on congress the imperative neccs-
sity Of pulling down such part Of the
tariff wall as furnishes shelter for
monopollstlc trusts"
This does not appear to be the per-
fection of reason. 1t takes ID for
granted that the existing tariff favors.
or at least permits. excessive advances
which would not be made without TIA
thing not proved. 1t takes for granted
that prices would be permanently re
duced IL the home protection should be
crippled by exposure TO foreign COM
petition. Worst of NIL, II assumes that
permanent cheapenlng of products can
lao. iaIr Iv
surely by continued encouragement Of
home industry and competition than In
any other way. These are assumptions
for which The Tribune sees no war
rant.
Higher prices than are charged even
now We're for many years charged by
combinations OF foreign manufacturers
when they held consumers In this coun-
try Mt their mercy. No other instance
need be mentioned than the malnte-
nance for many years of prices for tin
plates above those now quoted. the
Welsh makers combining to fix prices
at pleasure because there was no com
petition here. Exactly the same thing
has been seen In many other kinds of
manufacture and Is seen now In some
which have not yet been so established
here that home and foreign producers
cannot readily combine to control
prices, as they do combine. There Is
no evidence whatever known to The
Tribune tending to show that relief
from excessive prices can be secured
by driving part of the producers out of
the business and leaving the rest, do
nestle and foreign. TO control prices by
combining.
But there IL evidence, mountains of
1t, to prove that continual encourage
ment of home manufacturers does ere
ate n competition against which no
combination can fight without destruc-
tion, unless by putting prices so low
that 1t shuts out competition. The
steel rail combination was destroyed In
that way, the steel beam combination
n little later, the old nail trust the old
wire trust. and who can reckon how
many trusts and combinations In other
branches of business have been driven
Into bankruptcy In the same fashion?
The only important combinations or
trusts which have been able to survive
all competition thus far are the Stand
ard oil company, which has no duty on
Imports To help 1t In the least. and the
Sugar Refining company, which has re-
pentedly bought up one set of compcti-
tors after another. only to find itself
quickly confronted by others more
powerful Duties on sugar long main
tanned for revenue purposes suffice to
promote the same never ending com
petition which every combination In
protected industries Inns to face. The
question whether continued encourage
ment OF home competition will more
surely and more quickly break down
combinations In particular industry
than n removal of all duties Is not one,
II may be admitted. which can be in
every case decided by past experience
alone, without regard to the conditions
existing In that industry. hut it is
demonstrated by experience, rs surely
as anything can be, that In the great
majority OF eases that continuing force
has broken down combinations and So
cured permanent advantages to con-
sumers which could not otherwise have
been attained.
1t Is this ultimate advantage which
men are apt to overlook When they
see that the price of any article Is too
high. the first impulse Is to break 1t
down at once and by any means. hut
If that course would destroy part OF the
works engaged and leave the market
mt the mercy OF smaller number OF
producers, what difference does II
make whether part OF them are for
eign? The ocean has never yet proved
barrier against trade combinations
found profitable to men on both sides
The other remedy Is to draw into the
business an increasing number of pro-
ducers, enlarging and improving works,
studying new processes and ever try
ing TO secure larger markets for them
selves. This addition of works, with
perpetual Incentive 10 improvements of
methods and economy of production.
almost invariably ends in collapse Of
the combination, and then the country
has producing power large enough or
more than large enough TO supply all
Its needs That only gives ground to
hope for permanent cheapness. Pros
trating part of the works and reducing
the production is never step toward
permanent cheapness though 1t may
sometimes bring quick relief for the
time. New York Tribune.