The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1891-11-02

Tariff and High PrIces

To the Editor of the Press:
1t is alleged that high duties make high
prices; this is not literally true, though high
prices may, for time. be consequence of
high duties. The assertion that high duties
make high prices is based on principle be-
yond that of mere protection to home trade
1t means that high duties are fixed for the
purpose, and with the intent, that the man.
ufacturers and producers of this country
shall realize excessive profits from the con-
sumner. This is not the case. A duty may
be never so high, and have no bearing on the
legltimateresult of home competition. How
ever high tariff may be it Is no evidence, in
itself, that the foreign article of trade can
not be made in this country and sold at as
low price, as the imported article. 1t is to
establish this very fact; that the home
product can be thus made and sold. that the
foreign article is, or may be for time, sub
jected to an unusual rate of duty. The ult-
mate result then Of high rate Of duty-as
has been repeatedly demonstrated-is, that
instead of meaning high prices, 1t means
lower prices than the same article can be
produced for abroad.
1t is within the bounds Of possibility that
a high duty, so-called, may represent the
whole difference between the actual cost of
production and the selling price. In such
case, unless the duty represents percent
age greater than fair profit on the article
sold, it, the price, is not high TO the consumer
and / think this leads to the true cause and
meaning of both high and low prices.
The direct effect of tariff on market prices
is small when compared to home competition
as a factor in controlling prices. When
goods are sold at the cost OF production.
which is common result OF an active com.
petition over which the tariff has no direct
influence or control. what becomes OF the
duty imposed on such classes Of goods, OIL
rather, what does such duty represent, II moi
| a simple tariff for revenue? Granting thai
| it represents, in a measure, more than this,
| tariff for protection, what would be the
| effect If the duty was taken off and import
| ers were thus enabled to undersell our home
manufacturers and producers (who were al
| ready selling at cost just the amount repre-
| ably equivalent to the establishment or in
| PRODUCTION of a gigantic English or foreign
| trust and monopoly which would be speedily
| ruinous to our home industries, and conse
| Quently to the interests of labor. In this
| general sense a protective tariff may ap
pear to influence home prices by protecting
| our manufacturing and labor interests
against surplus and unwarantable competi
ton, but the practical answer to this is found
In the comparative condition and ability tt
buy of those classes of consumers most near
ly affected by high prices.
On general principles protective tariff /:
first principle of self protection based or
the assumption that nation Is In a position
to supply its own wants from its own re.
sources, and that the adoption of such q
tariff will inure to the material benefit and
prosperity of the whole people. When this
is proved it seems to be outside of the CUES
ti0n, to trouble ourselves about the cost o.
production In Europe, or what foreign good
might be sold for In our markets.
1t Is at the root OF all benefits arising from
protective tariff, or from the principles Of
selfprotectioD, that all undeveloped indus
tries which are capable Of large devel0pe
ment and OF supplying, or nearly supplying
the home demand within reasonable limi
of time, should be well protected by tariff
even at the cost of temporary Inconvenience
OF increase of cost, to the consumer. Ii sucf
result Is impracticable or impossible, II
should be classed with the mistakes to which
Governments as we'll as individuals are liza
ble-to be remedied with as little delay as
possible-t0gether with all other errors in
cident to a protective system, wherein thu
| greed Of large capital on the one hand, ant
gAf 81 gafSfssg des %s f SR ths 9t BE-
| tective-tariff fence just high enough so tina
| our w0uld-be competitors for home-trad,
| could climb In If the top rail was knocked
| oil, and at the same time increase the pro
lection to our manufacturing and produc
tive interests by removing the duty from all
raw material that we are obliged to import.
think the balance between the price OF
labor. cost of production, and the purchasing
power of money In the United States will
never be quite as low as 1t is in Europe.
Practically, then, the effect of a protective
tariff, even high ta6iff is. that In the United
States the consumethas always the advant.
ege of buying at low prices. BE can buy
more for his money, because he has more
money to buy with. AS long as competition
is kept lively in this country, prices mus
necessarily find the lowest level consistent
with the best interests, both social and ma
terial. of the people as whole. The danger
to be feared, in the near or distant future
from high prices and the advanced cost Of
living is much nearer home than in tariff
on foreign goods. 1t lies in that ominous
threat to general business competition, In
the Capitalization of capital, in the crowdinl
out of the small manufacturer and producer
Its name is Trust. Il is the last thing 10 the
world to be trusted by the people, and the
first thing to be attacked by any honest
political party. IS. W.