RAILROAD IRON THE TARIFF TRANSPORTATION. 85 



through an increase of the duty. Although Congress did not 

 grant the full measure of relief asked, the tariff on steel rails was 

 changed from an ad valorem of 45 per cent, to a specific of i */ 

 cents per pound, amounting in practice to an addition of 4 per 

 cent, to the former rate during the period from Jan. i, 1871, to 

 Aug. i, 1872. Under the stimulus imparted by this legislative 

 encouragement and protection, coupled with the great demand for 

 rails created by the rapid extension of our railroad system, various 

 new rail works were established in the United States, by which a 

 strong competition was engendered among American producers, 

 besides the rivalry with foreign makers, the inevitable tendency 

 being to lower prices. In short, the wise forecast of the memo- 

 rialists has been made manifest in the result ; for American steel 

 rails are now selling at $75 currency per ton,* below the price real- 

 ized for iron rails two years ago, and that, too, in our markets, 

 where English steel rails can not be afforded at less than $95 cur- 

 rency. As a consequence, railroads may now be constructed at a 

 lower cost than before, which is proof positive that our tariff, so 

 far from being an impediment, is really an energetic aid to cheap 

 transportation. Here, if it be true, as Free Traders assert, that the 

 duty is necessarily added to the price of the dutied article, whether 

 imported or home-made, the pertinent inquiry arises, Why are 

 American steel rails sold at $75, when English steel rails are held 

 at $95 ? Why do not domestic producers compel consumers to 

 pay either the whole or part of that additional $20 per ton, when, 

 according to Free Trade theory, they have full power to make that 

 exaction ? A theory thus contradicted by every-day experience 

 must be worthless for any practical purpose, and certainly should 

 not be adopted as a trusty guide in the enactment of tariff laws. 

 These two facts are of more value and importance than a dozen 

 cart-loads of Free Trade theories that the price of foreign steel 

 rails has been reduced, within a few years, by the pressure of 

 American competition, from $150, gold, per ton, to $95, currency, 

 and that our domestic makers are underselling the latter price by 

 $20. Now, when it is considered that such competition, so poten- 

 tial in bringing down prices, has been the offspring of our Protec- 

 tive tariff, it must be admitted that the policy of Protection is 

 conducive to cheap transportation. 



*Since this chapter was written the price has been still further reduced. 



