New-York tribune., 1904-08-12
CHAMBERLAIN'S PROGRESS
First Tariff Commission Report
Rusty Free Trade arguments.
London. July g

a. f-bar7berlsfns movement. When you get
.,cb an extraordinary tariff as the Americans
ssys 20 said one Of the ironmasters. somebody
-,,s+ suffer but. the whole. / believe IL IS a
r,od thing 1 have known Germany for fifty
- and believe that that country has ad-
.,ca5 th-ee times as fast as We have. Similarly
4, America their prosperity IS far in excess Of
,ns country so that their policy cannot be
e.ne5 had one. II American tariffs were re-
srosd Il might help Us to recover great deal OF
- ,ra de Ne have lost I'm America" This is one
~, n hundreds Of admissions in the evidence
.eto-A the commission that protection in
America and in Germany has brought prosperity
nth il i'm large measure and is forcing England
- change her free trade policy in self-defence-
= the Americans were 10 lose faith in their sys-
sem and 70 reduce their tariffs, English manu-
sacturers might hope 20 regain their lost ground;
INT otherwise they are beaten In the great mod
or hattie for a market and must adopt the
American tactics in order 10 have any chance Of
success This is the position now occupied by
.bs Tariff Reform League under Mr.. Chamber
,ain's leadership: and the conclusion is reached
that the defence Of the home market will open
she way for imperial federation. Americans
ought not 10 lose sight Of these facts IN casting
,bsir ballots in the Presidential election this
,,asr Their protective system has triumphed,
,ba British manufacturer himself being the wit
ness and its adoption in a modified form can
only be question Of time in England unless the
Americans themselves come 10 the rescue OF the
lost cause Of free trade by restoring the Demo
cratic party 10 power.
Free trade has always attracted professors IN
colleges because il enabled them 10 teach econo-
mics by means of broad deductions from alb
stract principles This was q simpler and more
convenient process than that Of investigating
fhe actual conditions Of modern industry and
finance The mistake which pedants in colleges
have made n England as we'll in America is
that Of assuming that political economy is an
exact science. like any branch Of mathematics,
n which conclusions can be inferred and results
worked out with precision and certainty. In
reality fl is as variable as human nature. and
SIS principles cannot he generalized offhand. but
must be tested from decade 70 decade by the
practical experience Of men and nations. For
long period the English free trader consoled
himself with the reelection that protectionist
nations were running and impoverishing them
selves, and that the United Kingdom would he
enriched a. their expense 50 long as II should
continue 10 have free imports ana 10 buy in the
cheapest market.
The Tariff Reform Commission in its first re-
port on the iron and steel trade exposes the
.aIacies IN these conclusions Il has received in
ploying over 8 per cent Of the labor IN this
combined trade-231 0oo out Of an aggregate Of
265 600 workers; and II has ascertained that
while this industry has been advancing rapidly
= other countries il has remained almost sta
tionsry here. The imports have increased 600
per cent and the exports have declined ~ per
cent and foreign competitors. protected II their
own home markets, have made it the basis FOR
The conquest Of the British market The masters
% the trade have been consulted, and only < Per
cent OF them are content with free trade and
policy Of tnaction. The employers Of 81 per cent
Of the labor are convinced that neither masters
TOR neH can expect equality OF conditions and
fair play unless tariffs are set up against tariffs
snd the home industries protected. The COM
mission Itself reports unanimously that the rela-
tive decline OF the iron and steel industry here
cannot be attributed 10 natural disadvantages or
want az skin and enterprise on the part either Of
British uanufac cturers or Workmen but IS due 10
the fsCt that their competitors in the United
States and Germany. having secured control Of
their home markets by means of high tariffs and
the regulation Of their export trade are IN posi-
tion 10 dump their surplus products here and in
other foreign markets without reference TO cost
Accordingly il recommends a general tariff with
low duties against countries admitting British
goods on fair terms: a preferential tariff for
4
maximum tariff designed to operate against pro-
tectionis1 countries.
Times have changed since Cobden's disciples
welcomed free imports as a source Of national
wealth. The statisticians experts on customs
and representatives. Of great industries and the
colonies who unite in signing this important re-
pof condemn the old phrases and theorems
about cheapness as unscientifc when applied
modern industrial methods. One iron and steel
master after another has testified that. cheap
nsss does not depend upon purchases in the
lowest market. but upon continuous operation os
plant employed in production. one manufact-
urer has been closely examining his books and
has discovered that. while he can make steel at
- 2 ton when his works are running for their
fun production Of one thousand tons week. it
VII cost 81 shillings more if his men are only
half employed. Other steel and iron manufact-
urers have corrohorated this statement by Civ
ing the cost Of production when there was full
or partial employment. They have drawn the
PRACTICAL Inference that iron and steel cannot be
produced al the lowest cost in the home market
unless the works are fully operated and conse-
Queutly that dumping by foreign competitors is
highly scientific process II enables American
or German manufacturers to keep their own
works running continuously. and thereby to
lower the cost or production al home and
abroad The British manufacturers in their
turn are placed at a serious disadvantage wher
their goods are displaced in the home market.
They caFinot keep their works I'm operation al
fuh capacity. and consequently are unable 10 re-
ouoe the cost OF production TO the lowest level
The commission grounds its argument in favor
q a tariff upon the necessity for defensive meas
ufes against dumping. 1t shows that protected
countries have superior facilities for securing
ilaNiiham output and continuous running. and
0uhp thelr SURPLUS products IN free markets.
l'' 0'"S "i'hout loss hut even with largely
increased profit II disnissas sc . GU. =,