The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1904-11-25
How the Tariff Operates.

The New York Journal OF Cothh'e'e'
~ 4, o,,r recent experience in the iron
industry as illustrative Of the Americas
no+oo,,vo nolcy. It says that at the
a,o4.,om Of this industry is an abunaale'
supply of ore. olleaply mined anu a Us
h,nd with other materials at po'hts -
l,,sanl,fact,re but that this mas peel I
.,ono1,olized and held far above the co7e
nr.ce Tho price is held up BY con'fol
-, : coordination, and Is protected by q
dntv On foreign ores The price OF ORG
determines the cost and consequence N1e
nrlce Of pig iron, and that determines tite
price and cost of steel ana iron III ~
forms, ..At every point" says our con-
temporary, {. THE tariff Shield IS he' "
ra,nst foreign competition, and at every
no;nt domestic competition is strangleo
s,y partial monopolies or pool agrceflpe'.less
and an artificial level OF cost ana pr'ce
is maintained, which makes II q peru
4 II produce In excess OF the doHestlc az
mand as the surplus cannot be disposea
~ outside of the barrier without a sac
rif,cc" II then explains that under TINS
system there is large proht Wlth''' lug
tariff Enclosure in times OF act.Ve eee
mand. which industries using iron ana
steel as material and consumers OF 1telr
product must pay; but when demand .
supplied, or is suppressed by hlgh cost
Of supply. there is sluggislncss, II not
s,opnation. within that Same inclosure,
for the closing of inlets has clogged
outlets for surplus.
could there be a better Illustration than
this Of the manner in which the ta11il
operates to control prices and to cur
tail production? II Is the boast OF pro-
tectionists that the industries OF the
United States arc Indebted to the. protec-
tive tariff for their growth and develop
ment. but 1t Is at least a debatable ques-
ton whether the tariff has been a ben
eft or a drawback. It Is not disputed
that we have built up enormous indus
,rics. ard that this has been done under
the tariff system; but it does not neces-
sarlly follow that this is case OF cause
and effect There are political economists
who contend, and with q fair show or
reason. THAT Hur' industries have grown
up in spto,. Of. The tariff and not be-
4 cause of it. Al ono time the protection
lists made the home market idea the
basis OF their theory, but 1t was ad-
,nitted by President Mckinley not long
before his death, and is now admitted gen.
orally by protectionsts, that In order
10 keep our Industries going We must have
a foreign market for our surplus products
But in order that We may sell In for
eign markets in competition with for.
eigners, we must make the price to suit
and in order TO do this we must reduce
95 the cost Of production to the minmum
Had there been no high protective tariff
dp,ing The past twenty or thirty years
y our manufacturers would have beer
compelled TO exercise every economy II
their operations: would have learned hov
and would have put themselves III posi-
tion long ago to compete In all the opel
markets Of the world, for in a nep
country ike ours, with an abundance
OF cheap raw materials, with the bcs
wol.kmen on the face of the earth, am
with other recognized advantages, W
could have defed foreign competition a
home and abroad.
If there is u nation upon the cart
whose interest 1t is TO have u world
wide open marker and the greatest pos
sible freedom of trade, that nation Is u,
United States, OF all nations, We stan
loss in need OF protection against forcig
competition, and we are in better positio
than any TO compete for trade abroad
free-tor-all contest 1t is the convi,
lion Of tariff rcformers not only tn;
the high protective system Of the Unite
States Is wrong in principle, but that
Is The poorest sort OF business policy Il
us 70 maintain II al home and encourae
II abroad
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