Monopolies -- United States; Railroads and state -- United States
SEVENTH.--_Free Trade and Direct Taxation._--Our conclusion would not be
complete were we to omit a reference to the subject of tariff. Indeed,
it so interlaces the question of transportation and the construction of
railroads as to become an integral part of our discussion. Disclaiming
any partisan views of the question, we shall try to demonstrate that all
tariffs are unjust and oppressive. In a former chapter we have shown the
operations of our tariff, and some of its results. We now proceed to
demonstrate that the true rule in all our dealings and commercial
transactions is, _to sell where we can obtain the best prices, and to
purchase where we can obtain the desired article for the least money_.
Demand and supply should regulate the prices in our dealings, and
protective tariffs should be repealed. A "protection" that taxes
three-fourths or four fifths of the whole people, in order that the
remaining fraction may amass riches, is an oppression that ought not to
be tolerated. No class is more oppressed by protective tariffs than the
farmers and producers of the country. They do not ask, nor do they
receive any protection.
With high or protective tariffs, farmers and producers pay much more
than their just proportion to the support of the government. The
consumer simply pays tariff duties on what he consumes, while the
producer not only pays on what he consumes, but his product must pay a
large part of the duty upon what is consumed by others. The products of
the country are its wealth. No matter who is obliged to pay the duty in
the first instance, ultimately the producer must pay it. To illustrate
this proposition, let us take any given article produced, manufactured,
or constructed in the United States. There is a duty on some of the
material used in the manufacture of the reaper. The manufacturer pays
this duty, and adds it to the cost of the machine purchased by the
farmer. In the erection of factories, machine shops, furnaces, and
foundries, dutiable articles are used, all of which, in the end, must be
paid for from the products of the country. In the construction of
railroads, locomotives, cars, etc., iron and other articles are used
upon which there are high tariff rates. These duties are paid by the
companies in the first instance, the amounts paid are included in the
cost of the roads, and must be returned in shape of increased rates for
transportation over the roads. In the end these duties are paid by the
producer. Every bushel of wheat, corn, or other grain, shipped over a
railroad, pays part. Protective tariffs are so interwoven with the
construction of railroads and the internal commerce of the country that
they cannot be separated from the questions we have been discussing. All
tariff duties are direct charges upon the productions of this country,
and not on any other. Import duties are not paid by the people of the
country from whence the goods are imported, but by our own people. It
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