“The moment,” answered Mr. Blaine, “you begin to import freely from Europe you drive our own workmen from mechanical and manufacturing pursuits. In the same proportion they become tillers of the soil, increasing steadily the agricultural products and decreasing steadily the large home demand which is constantly enlarging as home manufactures enlarge. That, of course, works great injury to the farmer, glutting the market with his products and tending constantly to lower prices.”
“Yes, but the foreign demand for farm products would be increased in like ratio, would it not?”
“Even suppose it were,” said Mr. Blaine, “do you know the source from which it will be supplied? The tendency in Russia to-day, and in the Asiatic possessions of England, is toward a large increase of the grain supply, the grain being raised by the cheapest possible labor. Manufacturing countries will buy their breadstuffs where they can get them the cheapest, and the enlarging of the home market for the American farmer being checked, he would search in vain for one of the same value. His foreign sales are already checked by the great competition abroad. There never was a time when the increase of a large home market was so valuable to him. The best proof is that the farmers are prosperous in proportion to the nearness of manufacturing centres, and a protective tariff tends to spread manufactures. In Ohio and Indiana, for example, though not classed as manufacturing States, the annual value of fabrics is larger than the annual value of agricultural products.”
“But those holding the President’s views,” remarked the reporter, “are always quoting the great prosperity of the country under the tariff of 1846.”
“That tariff did not involve the one destructive point recommended by the President, namely, the retaining of direct internal taxes in order to abolish indirect taxes levied on foreign fabrics. But the country had peculiar advantages under it by the Crimean War involving England, France, and Russia, and largely impairing their trade. All these incidents, or accidents, if you choose, were immensely stimulating to the trade in the United States, regardless to the nature of our tariff. But mark the end of this European experience with the tariff of 1846, which for a time gave an illusory and deceptive show of prosperity. Its enactment was immediately followed by the Mexican War; then, in 1848, by the great convulsions of Europe; then, in 1849 and succeeding years, by the enormous gold yield in California. The powers made peace in 1856, and at the same time the output of gold in California fell off. Immediately the financial panic of 1857 came upon the country with disastrous force. Though we had in these years mined a vast amount of gold in California, every bank in New York was compelled to suspend specie payment. Four hundred millions in gold had been carried out of the country in eight years to pay for foreign goods that should have been manufactured at home, and we had years of depression and distress as an atonement for our folly.”
“Then do you mean to imply that there should be no reduction of the national revenue?”
“No; what I have said implies the reverse. I would reduce it by a prompt repeal of the tobacco tax, and would make here and there some changes in the tariff, not to reduce protection, but wisely foster it.”
“Would you explain your meaning more fully?”
“I mean,” said Mr. Blaine, “that no great system of revenue, like our tariff, can operate with efficiency and equity unless the changes of trade be closely watched and the law promptly adapted to those changes. But I would make no change that should impair the protective character of the whole body of the tariff laws. Four years ago, in the act of 1883, we made changes of the character I have tried to indicate. If such changes were made, and the fortifying of our sea coast thus undertaken at a very moderate annual outlay, no surplus would be found after that already accumulated had been disposed of. The outlay of money on fortifications, while doing great service to the country, would give good work to many men.”
“But what about the existing surplus?”