THE 337 -^ £. TRUTH ABOUT u PROTECTION. 5J BY JOEL BENTON. * 5f eui |3ork: CHARLES L. WEBSTER & CO 1892. Copyright, 1892, CHARLES L. WEBSTER & CO. {All rights reserved.) PRESS OF Jenkins & McCowan, NEW YORK. PREFATORY NOTE. It is impossible to discuss a topic exhaust- ively, which requires an octavo, within the limits of a brief essay. I have therefore been obliged to omit much from this tract that might have been forcibly said on behalf of my contention. The college boy, who had for his subject “ Infinity,” and but five minutes to treat it in, represents my situation. < ) But I trust I have given here proper atten- tion to the fundamental points that are the basis of “ Protectionism.” When the whole American people shall once thoroughly under- stand them, a better day will dawn for the re- public. To contribute slightly to that end has been my chief purpose in writing this essay. \ The Author. Poughkeepsie, N. Y., Aug. 18, 1892. J Digitized by the Internet Archive in 2017 with funding from University of Illinois Urbana-Champaign Alternates https://archive.org/details/truthaboutprotecOObent THE TRUTH ABOUT “PROTECTION. “ Protection,” so called, is the sugar-coated label for a vast and complicated system of high taxation applied to commerce. This taxation is not placed for purposes which make taxation just and lawful, but for the benefit of certain special firms and businesses. While it is put directly upon imports, so that all goods foreign and domestic are raised in price by it, it is also a burden upon exports, since this en- hancement of price, both upon manufactured articles, and the raw material from which they are produced, makes competition in the world’s markets either very difficult or utterly impos- sible. It has been called the “ American Sys- tem ” for it reaches out always for high-sound- ing names and phrases ; but it is no more American than the Mohammedan religion is. It was the invention of foreign and despotic governments, and came down from ancient and mediaeval times. In a free government like ours, where the people are declared to be 5 6 THE TRUTH ABOUT “PROTECTION.” equal, it is an anachronism and a stinging in- justice. “ Protection ” is an anomaly in our govern- ment, for it is a species of socialism, no coun- terpart to which exists under our constitution and laws. It has, in fact, no direct warrant in law. Whenever and however it has been established here, it has got into existence as a parasite, and consequently by a fraud upon the people. Before every tariff bill the introduc- tory or enacting clause says : “ An act to raise revenue,” or words of tantamount meaning. It is only by this swindle of professed intention that “ Protection ” lodges itself in our legisla- tion, or can possibly get a foothold — if you omit the one provision in the McKinley bill whereby direct bounties are given to the sugar producers. It is hardly necessary to cite this exception, however, for “ protection ” by boun- ties is not likely to be repeated. Even the “Protectionists” dread the open character it gives to their theoretical and esoteric nostrum which works best the more its modus operandi is kept out of sight and is unknown. Fortu- nately, this instance of “ Protection ” has been legally defined to be a proper part of the sys- tem. This, while it settles the fact (which your “ Protectionist ” gets red in the face in denying) that the tariff is a tax, also contro- THE TRUTH ABOUT “ PROTECTION.” / verts in another point the unanswerable decis- ion of the late Justice Miller — one of the clear- est-minded men ever on the United States bench — who said in the celebrated Topeka case (Loan Association vs. Topeka) : “ To lay with one hand the power of the government on the property of the citizen and with the other to bestow it on favored individuals to aid private enterprises and build up private fortunes is none the less robbery because it is done under the forms of law and called taxation. This is not legislation. It is a decree under legislative forms.” This brave and honest decision makes one thing plain : Wherever there is “ Protection ” there is robbery. In imitation of a certain be- lief of theology, the government under this system is made to show preference to a few and impose preterition and reprobation on the mass. By its operation the tariff beneficiaries are bountied while the great multitude of the people are bled for their benefit. The favored producer represents but a comparative few, while the plundered consumer represents every- body. “ Protectionism,” as has been well said, is the doctrine that waste makes wealth. If a son should ask his father for capital to assist him to do an unprofitable business — the fact being known to both that for a period of 8 THE TRUTH ABOUT “PROTECTION.” fifty or a hundred years it could not be made profitable, so that at the expiration of that time it would still need the father’s fostering purse, with no predictable epoch in sight when the subvention might cease — the father would promptly decline the request, even though he were a “ Protectionist.” Yet this is precisely what he, as a faithful son of the Government, asks the Government to do for him or for somebody. If a business by a careful outlay of capital, by wise economy and by Yankee shrewdness and inventive wit cannot possibly be made to pay, it is a positive loss to under- take or continue it. And the Government, in this case, should not be asked to tax the peo- ple for its support. If it can be made to pay, as the large multitude of manufactories and crutched-up industries can of themselves, then “ Protection ” is an impertinence and uncalled for. In any event it is a swindle, though it be embodied in a hundred statutes. The suppo- sition that a country can be forced into un- profitable businesses with ultimate gain, which individuals cannot contrive to make successful, is one of the fundamental errors which under- lie “ Protection.” But this is only one of its many hallucina- tions. It is a dogma of pseudo-political econ- omy which seems to have been born on the THE TRUTH ABOUT “PROTECTION.” 9 pupil’s side of the kindergarten or nursery, for it is a distinct attempt at compassing the child’s desire of being able to “ eat your cake and have it too.” But the proverb says,, and says rightly, that this feat cannot be done. The way the “ Protectionist ” thinks he can do it is by trying to sell without buying. He does not perceive that all trade, reduced to the final analysis, whether between individuals or na- tions, and whether money or commodities are used, is nothing more nor less than barter. And what is called trade between nations is really nothing more than so many individual bargains. If they can be profitably made they go on and benefit results. If they cannot, they stop, and the individuals who engaged in them find other ways to attain their ends or satisfy their desires ; so that the nation is not called upon to see what kind of trade or how much or how little trade is done. It has no business to compel trade by a bribe, or to pun- ish it by penalties. It does its whole duty when it takes its hands off, and looks the other way. The “ Protectionist ” bogy, there- fore, of the “ unfavorable balance of trade,” which for fifty years and more he has been evoking to scare the people with, is a pure fic- tion of a perverted political vision. There is p.o such thing (in other words, no such a IO THE TRUTH ABOUT “ PROTECTION.” “ Mrs. Harris ”), and any tendency to such a danger meets constantly a self-limiting brake in the mechanism of commerce that reverses, at a certain point, the whole movement. There is really no more need of the Govern- ment’s putting itself into a state of concern and anxiety about the amount we buy of other nations than there is of its settling up the bal- ances of the far larger aggregate — inconceiv- able in amount — of our purchases and bargains at home. Every single bargain with a for- eigner is a purely individual one, and it is either good or bad as any particular bargain is which one of us makes w T ith a fellow-citizen. If we find a profit in the bargain, in either case, we are apt to repeat it ; if we find injury we go elsewhere or desist. If this were not so there could be no possible remedy. Any attempt to call in the aid of Congress to adjust matters like these — or to fix tariffs except strictly for revenue — is to introduce untold mischief an