New Zealand Times. FRIDAY, OCTOBER 9, 1874.

New Zealand Times, Volume XXIX, Issue 4229, 9 October 1874, Page 2

New Zealand Times. FRIDAY, OCTOBER 9, 1874.

The Yankee correspondent of the London Spectator once defended the protective policy of the United States on the only tenable ground that can be taken up for such a monstrous delusion. The Americans, said he, were a rich and prosperous people, ’ they had natural resources in their country of unparalleled wealth, and it they chose to have manufactories that could only be kept alive by being legislatively coddled they could afford the luxury. On economic grounds, whether political or otherwise, it is impossible to argue against luxuries. The man who says that he is rich, and can afford some luxury or other, takes a ground quite outside the pale of political economy. The only reply that could be returned to the assertion of the Yankee correspondent would bo one in which his accuracy should be queried. This luxury of protection was being paid for, not only by the wealthy who could afford it, but by toiling millions who perchance could hot. They might grin and bear it temporarily, perhaps beguiled into the belief that, it was the true “workingman’s friend,” but when they should find that, instead of helping, it merely robbed them, naturally there would be limits : to their patience. When the purchasing-power of money should be discovered to be decreasing day by day, without wages advancing, their position would obviously be worse, and they would .begin to attach more importance . to ‘necessities than luxuries. This is exactly what has occurred. Instances in which they were fobbed were without number; and the only protection they received was found to be more moonshine. The owners of American .salt mines were protected by a duty ranging from 80 to 108 per cent., but 300,000 tons were annually imported. Upon this duties were paid amounting to £300,000, and as the native,/ article was increased in price to the extent of the Custom-house duties, the consumers were mulcted in the sum of £300,000, which .went into the pockets of a few,dozen salt manufacturers. We have recently shown how the repeal of the Reciprocity Treaty with Canada worked—just-as might have 'been predicted by any disciple of John Stuart Mill. The Hon. D. A. Wells has, on 'more than one ’ occasion, told us that conviction was gradually reaching the minds of his countrymen by the only way through which-#- genuine protectionist' can bo taught - the truth of ‘ political economy—through' - the ’ breeches pocket. The’great historian of civilisation was not correct when he wrote that “ at the present day there is' not to be found anyone of tolerable education who is not' ashamed of holding opinions which before the time’ of Adam Smith were universally received, ” but ,he, was right when he added that the repeal of protective duties was “simply a question of knowledge: those who knew the facts opposed the laws,;' and those .who were ignorant of the facta favored the laws.” Perhaps the evils, of the. system were never more scathingly denounced than by Miss Martineau when she wrote “ Cheating and lying wore essential to the

whole system ; drunkenness accompanied it; contempt for all law grew up under it; honest industry perished beneath it; and it was crowned with murder.” Bather a serious indictment ! ■

In an article recently published in the Scientific American, a rather gloomy report of the American Iron and Steel Association is glanced at. The-average duty on iron imported into, the States is 55 Per cent., and as the country is enormously wealthy in deposits of coal and of iron ore, the presumption might have been entertained that with such an imposition in its favor only the native article would be .in use. This, however, is not the case. During the year 1873 no less than 371,164 tons of iron and steel were sent to America by British ironmasters. Prom other sources we learn that the pig-iron manufacturersof America contrived, by means of the enhanced value of the native article, caused by the heavy duty on the imported, to pocket from two to three millions of money, interest upon which sura would have to be paid by everyone who travelled on American railways, or who used articles of iron ware. In this instance it was found that the mills of the gods, though grinding slowly, were grinding surely. The number of miles of railway laid down in 1873 was exactly one-third less than in 1872. In the former year there were 650 blast furnaces engaged in making pig-iron, and on January 1, 1874, it was estimated that 233 of these were out of blast, and 21,141 smelters were out of employment:- There were fifty-seven rolling mills in-the country, of which ten were running full time, seven were on half time, and thirty-three were not going at all; 11,490 men were wholly, unemployed,, and 10,150 were working only half time. This, says the Scientific American, was caused by the diminution of the demand for railroad iron, and by “ the enforced economy of the people in dispensing with minor articles of iron manufacture, which they could temporarily db without.” Coolly enough; the Iron and Steel Association recommended that, after the fashion of the Hyperboreans who tried to get behind the wind they found so cold, the duty on imported iron and steel should be raised to such an extent as to become prohibitory. The shorter way would be to pass an Act, making the importation penal. It is due to the Americans to say that they are | taking the very best step possible for preventing their children growing up such ignorant and benighted fanatics respecting the subject of political economy as themselves. Their late Special Commissoner, who was converted from a protectionist to a free-trader whilst investigating the fiscal condition of the Union, said, “ This great question of protection against free-trade can never be settled till it is discussed in every schoolhouse throughout the country. What we want to db is to educate. Educate the people up to the nature of free-trade principles, then combine to operate against a few of the abuses, and thus disturb the cohesive element that binds them together.” A statistical report recently issued sets forth that there are about 15,000,000 children in the States, and the annual expenditure upon their education is about 95,000,000 dollars, or £19,000,000, “about onethird of one per cent of the value of the property, real and personal, of the whole country.” The number of teachers in the States is 221,000, and in that of New York alone there are 12,000 school houses, with libraries containing 1,000,000 volumes of books. In these schools there were 230,000 children, and the report says The citizen, however humble, has only to send his child to the public school, and Government furnishes him there, tree of cost, an educational palace, warmed and lighted, the best textbooks and apparatus, and the most skilful teachers.” Before so complete a system of education—compulsory and secularprotection, which is really a robbery of the industrious classes, is bound to fall.

The high price coal and iron attained in Great Britain in 1873 has, no doubt, given the ironmasters in America an opportunity of doing a little more work than they otherwise would have done. Also, a few more steamers were built than there had been, on an average, during the few preceding years. But still the facts relating to the decline of the American commercial marine are of startling significance. The tonnage, instead of being larger than it was ten years ago, in proportion to the increase of population, is more than 50 per cent, less than it was. Twenty years ago, it was predicted confidently that America would, by this time, be the first maritime power in the , world ; but we,; see how that prediction has been falsified, and yet there were good grounds ; for making it. If there were an industry or manufacture in which Americans bid fair to bo pre-eminent in, and enjoyed the greatest natural advantages for pursuing, it was that of shipbuilding. Their clippers were the talk of the world. Their yachts had repeatedly beaten the best and fastest English-built ones. The people took as ; naturally to navigation as ever their British forefathers did. Yet the commerce of the ocean has passed into British hands. Nor is this all. A people that ceases to build ships also ceases to navigate them, and thus becomes every year less of a commercial and maritime nation. This humiliation and loss the Americans have subjected themselves to. Such figures as the foregoing aro bf the utmost importance iii demonstrating; the lino of fiscal policy that should be adopted in all young and growing countries. The very greatest natural; advantages may be neutralized, and the fairest prospects marred, by that evil of evils so often and so falsely termed “ protection to-native'industry#