The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-06-05
ANOTHER HILL SPEECH

Mr.. J. j.. Hill delivered one OF his
highly interesting and solidly substan-
tial addresses before the Illinois Manufac-
turers' association IN Chicago last night.
The address covered a variety Of sub
jects, but the most important passages
were those relating to foreign trade,
railway competition and trusts.
AS to foreign trade Mr.. Hill Is con-
WINGED that it is good and that the time
has come when we must give UP the pro-
tective tariff. 1t has done it's work, in
his opinion. and he holds also that it
gets credit for some works that would
have been done without it, as for in
stance, the building up Of the iron and
steel industry. TIT is doubtless true In
recent years. Mr.. Hill will find many
sympathizers with this idea that the pro-
~tective tariff has done it's work for
America and that the era of a new policy
has arrived. There is nothing more than
the conviction the, late President McKin-
ley evidenced in his last speech, the
great reciprocity speech at Buffalo.
1t is evident that we can not 60 on
Indefinitely enjoying a huge balance Of
trade. The balance, if 1t should long
keep up, would paralyze trade. Our ad-
vantage would be so great that the other
nations could no longer trade with us, be-
cause we would have sucked up all their
gold and silver. The situation will right
itself in. time. Either our foreign trade
will decline or we shall have to buy
more Of other nations. If we wish them
to keep on buying of us we shall have
to buy more from them. Nations do not
get rich by trade except as they act as a
medium between other nations. Nations
enrich themselves by their own Indus
tries, by what they create. Interne-
tional trade is primarily an exchange OF
goods and commodities, Of finished goods
for raw material, Of food products for
goods, of one sort of goods for another.
When this exchange is balanced it lie
sort Of perpetual motion. When it be-
comes symmetrical one of the parties
to it is exhausted and trade languishes
and dies. Then, although the nation that
has Slapped the others commerce may
have vast stores of gold and silver they
are useless because the circle OF ex-
change having been broken, there is nc
demand for its surplus products.
If we wish to share international trade
we must give up the idea that we can
keep the home market all to ourselves
To go into the markets Of the world with
our goods means that the world mus,
come into our markets with it's goods
OF course for a time, perhaps for many
years, we can send out goods and take
back bullion in payment instead Of Other
goods. But that is not permanent
nor healthful condition. 1t will event
ually terminate itself destructively. For
tunately it is only beginning with us.
Mr.. Hills idea that the trusts can be
effectively regulated by insisting thar
capital stock shall represent either pait
up capital or property, IN other words
that it shall not be watered, is all rish
30 far as it goes. The evils Of wateret
stock have long been recognized In til,
west and are now recognized everywhere
With watered stock an impossibility
great INCENTIVE to- the creation of IN
substantial trusts would pass away. Bu
the dangerous powers of the correct1.
capitalized trusts would ststs.A remain t,
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