Rural Wealth and Welfare: Economic Principles Illustrated and Applied in Farm LifeFairchild, Geo. T. (George Thompson)
Science
Rural Wealth and Welfare: Economic Principles Illustrated and Applied in Farm Life
Fairchild, Geo. T. (George Thompson)
Agriculture -- Economic aspects; Economics
The advantages and disadvantages of copyright are essentially the same in
character, though the dangers are less. Since the large part of the reward
of an author or an artist is in the repute he may secure, there is little
danger of fostering an unfair spirit of monopoly. The franchise is subject
to the same principles, but its dangers in practice are very great. So
long as the advantages to the corporation securing the franchise may be
enormous, if it is sufficiently extended, there is great temptation to
bribery, both in the original issue and in the maintenance of inspection
and municipal control. Nothing has so interfered with good government of
cities as the manipulation of franchises. These abuses underlie the
popular call for municipal ownership of water works, lighting plants and
street railways.
_Protective duties._—A still more widely extended method of stimulating
industry by special incentives is seen in what is called a protective
tariff. This is a system of duties upon articles produced in foreign
countries so levied as to check the natural competition by increasing
their cost to consumers. The increased cost of such articles, if not too
great to destroy the demand, increases the incentive to manufacture
similar articles within the country.
The schedule of tariffs becomes then a very important element in all
productive industry, and requires the nicest adjustment to the needs and
abilities of the nation. If associated, as is usually the case, with the
raising of government revenues, the adjustment becomes more difficult, and
requires the judgment of experts in commerce as well as in statistical
knowledge of industries and government necessities. While in any country
the existing tariff is presumed to have been established to meet public
need, the fact that there is necessarily a restriction upon freedom of
exchange makes it always open to question. The tariff laws, like all laws
restricting freedom of action, must always have evident reason for
existing. The burden of proof rests with the one who defends such laws.
This is especially true with reference to tariffs, because the trend of
civilization is certainly toward greater freedom of intercourse in all
directions. The barriers between nations are generally giving way before
the introduction of ready transportation and quick communication. The
statesman who maintains the necessity of restrictive tariff must always
stand ready to explain this obstacle to more complete association. For
this reason we have the constant agitation of tariff questions and the
impossibility of permanent settlement in any particular.
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