PROTECTIVE TARIFFS AND PRICES. 65 



Since that day a multitude of other products has been added to 

 this enumeration, some of which form a necessary part of every 

 farmer's ordinary supplies. Now, we ask, what determines in our 

 markets the current prices of manufactures of which we produce all 

 that we consume, none being imported ? What, unless it be cost 

 in production and competition for sale ? The inevitable tendency 

 of rivalry in business is to reduce profits to a minimum, and to keep 

 them there. Even Free Trade writers admit that. Consequently, 

 the ever-recurring, never-ending competition among our domestic 

 manufacturers for the possession of the same markets constitutes a . 

 force constantly moving in the direction of greater cheapness ; for 

 the moment any one should arbitrarily attempt to raise his prices, 

 his rivals would step in with their lower charges and take away from 

 him his customers. In what way can this rule of effects be injurious 

 to Western farmers? 



If it be answered that our Protective system operates to increase 

 cost in production, and through that to enhance prices, we ask how 

 such position is to be reconciled with the cases we have specified 

 cheaper woolens, cheaper steel, and cheaper door-knobs? If so,, 

 why do we now annually export increasing quantities of many fin- 

 ished products which found no export demand at all under the 

 policy of partial Free Trade? If so, why did the proportion of 

 manufactures in our domestic exports, in 1860, amount to 13 per 

 cent, under partial Free Trade; yet, in 1874, amount to 19 per 

 cent, under Protection? If so, why did we export, during the four 

 years, 1858-61, of iron and steel and their manufactures, to the 

 value of only $21,861,230, while, during the four years, 1871-74, 

 we exported, of the same classes of articles, .to the far greater 

 value of $52,325,398? If so, why did we export, in the four years 

 ended June 30, 1874, locomotives to the number of 247, and to 

 the value of $3,590,648, yet not any under the tariff of 1857? 

 As all these exports were destined to markets in which they en- 

 countered and overmastered that foreign competition which, it is 

 said, could and would undersell our manufactures in our home 

 markets, and thus force down prices, were it not for the restric- 

 tions imposed by our Protective tariffs, we wish to know how our 

 producers are able to vanquish that foreign rivalry in foreign coun- 

 tries, away from the shelter of those tariffs? 



