The Conservative (Nebraska City, Neb.) 1898-1902, March 07, 1901, Page 6, Image 6
6 The Conservative * FREE TRADE AND FOREIGN MAR KETS. - All the earlier advocates of "protec tion , " notably Henry Olay , its greatest apostle , urged it as the temporary means of building up American manufactures , which , they claimed , when once well de veloped , would maintain themselves without further government support , or permanent burden upon the people. Said Clay : "No one in the commence ment of the protective policy ever sup posed that it was to be perpetual. " De clared Garflold : "I am for a protection that leads to free trade. " Surely wo have now reached that stage to which they looked forward , when our industries are fully grown and established , and abundantly able to stand alone. This is demonstrated by the vast and increasing number and quantities of manufactured goods we are sending abroad fifty mil lion dollars in value last year. In sober fact the country has at last fairly out grown "protection , " granting all its pretended needs in the beginning. Cer tainly the great lines of manufacturers now seeking foreign markets have noth ing to fear from free trade. They cross the ocean and undersell the foreigner in his own market. How then can he com pete with them in their home ? There is no doubt that the great majority of American manufactures could today successfully sustain unrestricted foreign competition and if there remain any who are still unable to do so , the "pro tection" which even the lowest and most strictly revenue tariff that we can have for many years would give , should be sufficient. Every intelligent man knows that our manufactures are now so de veloped and whether by means of erin in spite of "protection" matters not that they glut the home market and are overflowing into foreign markets on all sides. They no longer need "protection" against the foreigner ; no longer can it do them any good as against them. But the cry is now raised that even if not needed , "protection" can do no harm and should be preserved as a wall of de fense for the future. The plea is a specious one , and calls for a little scrutiny. It does not follow necessarily that a measure that does no good , can work no harm ; indeed the reverse is true in most cases , and this on examina tion will be found a striking instance of that fact. No harm that the country is overrun by."protectiou" born trusts like noxious weeds which keep the prices of steel , lumber , coal , glass , lead , salt , and scores of other articles above the level of fair cost and profit ? No harm that every consumer in the land is forced to pay tribute to these monopolists , who , having foreign competition shut out for their "protection , " promptly combine to stop domestic competition , and exact every cent possible from the people ? No harm , then why are so many public men and journals , republican as well as demo cratic and independent , lamenting this state of things , and declaring that the true way to correct it is to abolish the "protection" which gave it birth ? Sell Cheaper Abroad. The victor in the great struggle for the world's markets will be the nation that produces goods at the least cost and sells them at the lowest price. Every cent of extra cost levied by these trusts upon the articles used in manufacturing is a burden upon our industries and a handicap in the race for foreign trade. The aim and effort and effect of pro tectionists and trust monopolists alike is to hold up prices to an abnormal level , a level higher than the natural one. When nearly every material of manufactures is thus raised in price , even though in some cases the extra cost is slight , the goods produced must be greatly en hanced in cost , and so much less able to compete in price in foreign markets. But how much greater is the handicap when the tariff trusts actually sell their products abroad cheaper than they will at home. The public little knows how extensively this lias been done , and is being done , but the discrimination in this way of the great steel trusts is so flagrant that it is attracting general at tention. They have been selling steel plates by thousands of tons to British shipyards at prices far below what they exact from American shipbuilders. And some of the veiy men responsible for such unpatriotic discrimination against their own countrymen are foremost in trying to force the ship subsidy bill through Congress on the ground that American shipyards cannot compete with British. Let any one who doubts these facts read the report of the United States Commissioner of Navigation for October , 1900 , and the Monthly Sum mary of Commerce and Finance for last December of the Bureau of Statis tics , pages 1,893 , 1,896 , 1,401. The Boston Herald of Feb. 10th gives another instance. It says that two great steel companies , the Illinois Steel Co. of Chicago and the Lorain Steel Co. of Cleveland , have just sold 17,400 tons of steel rails to be delivered in Mel bourne , Australia , for $28.65 per ton. The price in the United States is , and lias been for some time , $26 at the mill. Deducting the cost of transportation to Melbourne , not less than $10 a ton , and the price at which these companies sold their steel rails in Australia is only $18 or $19 a ton , which is $7 or $8 less than the price they exact from American rail roads. Does the "protection" on steel rails of $7.84 a ton work no harm , which enables these great steel companies to grant such advantages to foreign cus tomers , while denying them to Ameri can ? This tariff-trust policy of high prices artificially maintained at homo , and selling goods abroad at low prices will niako America pay tribute to the world at largo , and convert her foreign trade from , a benefit into a grievous burden. A like burden is thrown upon all our industries by the "protection" on the raw materials of manufactures , such as wool , flax , hemp , hides , ores , coal , lum ber and many other articles which en hances their cost to the manufacturer even when not aggravated by trusts. No other civilized nation , not even high ly protected Franco or Germany , thus taxes the food of their factories , the ma terials upon which their artisans exer cise their skill , and adds an extra and unnecessary cost upon their products to handicap them in the race for the world's trade. Under modern conditions and competition the manufacturer in order to succeed must draw his supplies from the whole world , wherever he can find them best and cheapest. This is particularly the case with woollen man ufactures , in which a variety of differ ent wools only to be found in different countries are absolutely necessary , and the same is true of the iron and steel works and measurably of many other manufactures. Over and over again have the woollen manufacturers pointed out how heavy a load such "protection" on wool imposes upon their industry , and how indispensable is the use of for eign wool to mix with native , but all in vain. The political shepherds have pro tected wool until both the wool grower and wool manufacturer are languishing unto death. Prosperity of Unprotected Boot and Shoe Industries. The American boot and shoe manufac turers , owing to the superior skill and efficiency of the highly-paid American workman , are now beating the world in their goods , both in quality and cheap ness , and are beginning to send them widely abroad. As an encouragement to their enterprise , skill and industry , the Dingley act took hides from the free list , where they were for many years , and laid a duty of 16 per cent upon them , which gave just so much "protection" to the great Chicago meat packers , who alone reap any benefit from it , and added just so much to the cost of boots and shoes , and made the struggle to intro duce them into foreign markets so much the harder. How can our manufacturers compote for foreign trade under such burdens with any hope of success ? Must they always have to contend with their own government as well as with the foreign competitor ? Perhaps the greatest evil and burden of this so-called "protection" to the people at large , especially to the great agricultural producers , lies in its restric tion and prohibition of imports. Pro ducts for products is the rule of com merce. Imports shut out , only keep ex ports shut in. National trade cannot