Monopolies -- United States; Railroads and state -- United States
The above illustrations will serve for all articles of general
consumption. Let us look at the effect of the tariff upon other
articles, taking railroad iron as an illustration. Under a revenue
tariff railroad iron was sold for less than two-thirds of its present
cost. Manufacturers amassed princely fortunes; laborers were better paid
than they are now; the iron interests seemed to be in a prosperous
condition; the demand was growing and increasing, and has continued to
increase, until the supply is insufficient; and both foreign and
domestic markets are depleted, and at times exhausted. With this
increasing demand and scant supply there seems to be no good reason for
government protection to home manufactures, yet a protective duty of
about one-fourth its value is allowed on railroad iron. While the
companies constructing the roads pay this duty, the producing classes
also pay it in the end, in the shape of appreciated charges for
transportation. The protection afforded to manufacturers does not extend
to the laborers and operatives. The slight increase on the amount paid
them does not meet the increased cost of living resulting from the
protection tariff. They must pay more for what they consume, as well as
receive the pay for their labor in depreciated currency. The effect of
protecting the iron interests is to strengthen a monopoly that is now so
rich and powerful that it controls some of the largest states in the
Union. For this protection it returns no equivalent. The effect is the
same in other manufacturing states. The owners of the factories make
large profits, but the laborers and operatives, while their wages have
advanced, really do not receive as much, over and above the increased
cost of what they consume, as they received prior to 1860 under a
revenue tariff.
The purchasing power of a dollar before 1860 was as great as that of one
and a half dollars now, for the reason that then it was the value of a
coin dollar, while at the present time it is the value of an
irredeemable paper dollar, at no time worth a dollar in coin, and for
the further reason that the present tariff compels labor to pay for its
purchases from thirty to eighty per cent for protection to the
manufacturer. Thus, while the actual increase of wages is, as shown by
reports made after investigation, but twelve per cent, the cost of
living has increased fifty per cent. Under the plea of encouraging home
manufactures, the operative and laborer is compelled to work at
starvation prices, and it is not strange that they are organizing mutual
aid societies.
Public-domain text, read in full here on John Shaqi.
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