The Sauk Centre Herald

SAUK CENTRE HERALD:
Thursday March 6, 1890.

DUTIES AND PRICES.

THE ancient statement, never true when first made and often completely refuted, that the entire duty on imported articles is added to the price of protected products in this country, is once more repeated by Mr. Mills, of Texas, in an article contributed to "The North American Review."

"The Bulletin" of the Iron and Steel Association takes occasion to reply with most convincing figures, on the very branch of trade which Mr. Mills selects as the most satisfactory test.

Referring to the similar statement made by Mr. Cleveland, Mr. Mills remarks, "I will take steel rails to start with," and in reply The Bulletin submits from official data prices of steel rails each in this country and in Great Britain with the quantity produced in the United States. In the years 1867-1870, inclusive, the duty on rails was 45 per cent ad valorem; thence to August 1, 1872, it was $28 per ton; thence to March 3, 1875 it was $25.20 per ton; thence to July 1, 1883, it was $28 per ton, and since that time has been $17 per ton. This is to be added to the British price, and also the cost of transportation, commissions and insurance, which "The Bulletin" reckons at $3 per ton, though it is in almost every instance larger. As duties and freights have to be paid in gold, there must also be added, for comparison with American prices in currency, the premium on gold for the earlier years, which averaged 2 per cent in 1878, 5 per cent in 1877, 10 per cent in 1876, 14 per cent in 1875, 12 per cent in 1874, 13 per cent in 1873, 12 per cent in 1872, and 1871, and 15 per cent in 1870. With these additions the cost of steel rails in Great Britain, given in the first column of the following table, would be raised to the figures given in the second column, representing total cost of rails imported, duty paid in currency, and in the third column is shown the average price of the American rails for the same years:

Ratio.

The above table is constructed from the figures given by "The Bulletin," the cost of imported articles in currency being calculated for comparison. But for the year 1875 prior to March 3 the duty was but $25.20, and the cost imported would have been but $82.62, and for the year 1872 after August 1, the duty being $25.20 per ton, the cost of imported rails would have been $107.33. Thus constructed, the table shows at a glance that in only one year since 1872 has the cost of American rails been as much as the cost of foreign rails with duty and other charges added. It should be remembered that, the manufacture having been begun in this country in 1866, only 84,000 tons were here produced as late as the year 1872, and the American production had not at that time large enough to affect the price materially.

From that time onward the American manufacturers have steadily undersold the imported product, excepting in the year 1880, when the demand for rails so far exceeded the capacity of American works that the average price was somewhat higher than that of imported rails.

It will appear from this table also that the cost in this country has been greatly reduced until the makers have been able to sell for some years past at a price from $12 to $15 per ton below the price of imported rails; that the price has been constantly determined by home competition, and that since the advance in the cost abroad this year, the American price is just the same as the price in England. More complete refutation of the old free-trade theory could not well be imagined, and yet it is safe to say that the figures, however conclusive, will not prevent Mr. Mills or any of his associates from repeating the same untrue statement whenever it happens to fit their purpose. -New York Tribune.

	Price.	Cost	Price.
1870	$50 37	$83 98	$106 95
1871	54 99	102 31	102 50
1872	67 64	110 47	112 00
1873	89 05	122 31	120 50
1874	68 75	108 58	94 25
1875	44 28	85 82	68 76
1876	32 12	69 43	59 25
1877	29 20	63 21	45 50
1878	25 55	57 68	42 25
1879	26 88	57 88	48 25
1880	34 42	65 42	67 40
1831	30 41	61 41	61 13
1882	26 27	57 27	48 50
1883	22 72	53 72	37 75
18832	22 72	42 72	37 75
1884	23 19	43 19	30 75
1885	23 11	43 11	28 50
1886	18 70	38 70	34 50
1888	19 70	39 70	37 08
1888	19 15	39 15	29 83
1889	24 57	44 57	29 25
1890	Feb 35 00	55 00	35 00