Daily capital journal. (Salem, Oregon) 1903-1919, 1913-04-25
Wool and Money.
New York Times.)

Gates of duty on wool-as, indeed of
all protectionists-is that purchases
abroad "take money out of the coun-
try" The fallacy that this is necessar-
lily an evil is as old as money itself, and
prevails, in its simplest and most mar
row form, in many town in the United
States which has neighbor and riv-
al. Not long ago a citizen of Albany
who spent money in Troy or vice versa,
was deemed guilty of vague sort of
local disloyalty. Dealers in Brooklyn
still appeal to the same sentiment to
prevent their customers buying in Man
haitian. Indeed, the merchants of New
York are about the only large class who
do not go in fear of the consequences
of free trading, mainly because New
York has no formidable rival on this
side of the ocean. The greatest service
performed for the long future of the
American people by the trainers of the
constitution of the United States was
the establishment of absolute freedom
of exchange between all parts of the
country, in cheerful defiance of the
danger that any one part would drain
any other part Of its money"
The reasoning that convinced Wash
ingtOn, Madison and Hamilton that this
danger was a pure delusion applies to-
day to the removal Of artificial re-
straint of foreign exchange. The main
point is that, as matter Of fact, we
do not buy wool or anything else with
money, We buy it directly, or indi.
rectly, with commodities of our own
and use money to settle the balances
which, by the operation Of the modern
system of finance and commerce, are
reduced to very low amount. Indeed,
if we had to use money in full pay
ments, trade would come to a stand.
still or would shrink to pitiful and dis.
astrous proportions. All the actual mon
ey in the world, suppOSing it could be
handled, would meet the exchanges of
the world for only a few days. If,
therefore, the duty on wool were re-
moved, and our manufacturers were free
to buy their material in the markets of
the world, whether it came from Aus
tralia or South America or Canada, we
need not in the least worry about the
money we should have to send out to
pay for it. The sellers Of the wool
would inevitably be buyers from peo-
pie to whom we sell, and the vast and
apparently complicated transactions
would be offset against each other un-
til our own little balance would be set
tied with entire ease and to fair profit
Of all concerned.
Not that the repeal of the duties on
wool would not produce some disturb
ance and some loss. That practically
is unavoidable. When prices have been
sustained by an artificial restraint or
competition, the beneficiaries must suf
fer somewhat if the restriction be re
moved and competition be permitted
But when the restriction is unjust
when, after years of strict enforcement
it has failed to build up an Independent
industry; when, instead, the industry il
obviously one that must, in any case
undergo great modification, and espe
cially when the restrictive duty il
spread through a wide variety of manu-
factured products and raises the pric
. Of necessaries of life to an immens
, number Of the people, it is right an,
needful that the duty be repealed, An,
il must be borne in mind that the disad
vantage TO the wool growers is no
without remedy. Already they hav
been forced by conditions with whic
7 the tariff cannot deal, to abandon NOR
! and more the raising of sheep for woo
: and to turn to producing mutton, Fo
= wool alone sheep growing is progre'
g sively Improbable, chiefly becaus
the cheap pasture it requires is bein
h steadily reduced by the advance Of SCI
= tlement and agriculture. There are otl
+ or causes for reduced profit in wool
smaller flocks, increased amount an
l. cost Of labor for the care Of flocks, il
y creased cost Of land, increased cost &
u transportation. Where mutton raisin
is practicable, and wool is only vail
L able by.product, the industry continue
Is but wool growing by itself is probabl
l. doomed, II is fair to infer that, wit
L free wool, the change to mutton grow
Q ing would be accelerated and migl
y substantially mitigate the injury fro
. the repeal Of the duty on wool,
u After all, the greatest good to be <,
" from free wool is that on the one han
10 II removes all excuse for the outrageol
y network Of "compeusatng" duties II
y posed ON woolen goods and, on the OF
J er hand greatly helps the enterprisir
4 and skillful manufacturer With FIR,
! wool and proner reduction on wooden