Macon beacon. [volume] (Macon, Miss.) 1859-1995, 1891-10-24
THE TARIFF AND PRICES.

High Tariffs Depress the Prices of Farm
Prodncts-Low Tariffs Raise Them-Ths
Lessons of Our History.
The relation between tariffs and the
prices of agricultural products is an in
teresting one. Commerce or buying
and selling between nations is nothing
but barter when unrestricted by legis-
lative acts passed to force payments to
be made in certain products only.
When commerce is free, when trade is
free, nations buy what they need and
pay for it with a portion of that Of
which they have surplus Thus, for
instance, England never raises suffi-
cient breadstuffs for her own consump-
ton; she is therefore an importer of
them. At the same time she makes
more of certain kinds OF manufactured
products than she can consume, with
these, whenever she can, she pays for
her imported breadstuffs.
On the other hand the United States
always has a surplus of breadstuffs, be-
Jond the need of home consumption,
and must sci. it abroad At the same
time there are many manufactured
products for which there is q greater
demand than supply at any price and
resort must be had to importation.
Were trade between England and the
United States free, the United States
would send England breadstuffs and
receive manufactured products as pay
ment But here the high tariff on man
ufactnred products steps in and pre-
vents the exporters of breadstuffs, or
in other words, the farmers, from re-
ceiving payment in manufactured
goods Under its restrictions payment
must be made in gold. Nations, like
individuals, find it to their advantage
to sell at the same time that they buy.
-Just as the grocer will pay more for the
farmers potatoes, butter and eggs
when the farmer will take groceries in
exchange, SO nations will be willing to
pay more for what they need when
payment can be made in goods. This
is especially true of the commerce be-
tween Europe and the United States.
Whenever our laws have permitted us
to accept payment in goods, the prices
of farm products haze been higher
than when payment in goods has been
prohibited.
High tariffs restrict imports and ex-
ports and raise freight rates. Thus
they tend to make exporting unprofit-
able, and this in turn acts disastrously
upon prices
This is not theory but plain fact, and
our experience in the past proves it to
be true. From 1889 to 1916 we had
low revenue tariff which did not se-
riously affect foreign trade; from 1916
to 1921 the tariff, though higher than in
the former period, was generally low
upon most products, except iron and
cotton; from 1924 to 1882 we had
period of abnormally high duties;
from 1888 to 1912 the duties were again /
low; from 1912 to 1915 they were raised
again only to be followed in 1916 by
another low tariff, an in 1857 by
still lower tariff, or what high pro-
tectionists chose to designate as tariff
for revenue.
Our exports of domestic products
mainly agricultural, lder the opera.
tions of these various tariffs, show the
following results:
Revenue tariffs, l7:o to l31i-Exp rts, 1889,
sl9,00D,O00; Isl6, S6i,71,s96 increase, 2iI rer
cent.
Moderate protective tariff, 1916 to lsl4-Ex-
ports, 1916, SG4,7s, 95; 1921, s50,6i9,5oO; dc.
crease, q per cent
High protec i've tariff 1924 to 1S3?-Exports,
1924, S5O,6i950O; 1882 l,726, ,529; increase, q
per cent
Lower compromise tariff 1893 to lsi2-Ex.
ports, 1882, SCI, 726,529; 1912, s9o,799,2i2; in.
crease As per cent
High protective tariff, 1912 to lsi6-Exports,
1872, 1878 2i2; 1916, SOL ,o4!; increase, /
per cent
Low revenue tariff, 1916 to ls57-Exports,
1916, slOl ,Oi2 1857, 1906 7s; increase, Ia
per cent.
Lower revenue tariff, 1857 to ls60-Exports,
1917, 27s9O6 7la; 1860, s3l1, 242 i23 increase, l3
per cent
Thus under eight years of moderate
protective tariff and eight years of alb
normally high tariffs our exports be-
came less than they were in 1916, under
a revenue tariff.
These figures show clearly the disas-
trous effects of high tariffs upon our
export trade. On the other hand, un-
Ter low tariffs, our export trade flour
shed and was prosperous
Not less significant are the effects OF
nigh duties upon the prices of farm
products, In every case, as shown in
he following table, high tariffs low
red prices and low tariffs raised them.
Unfortunately we have no figures of