New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1892-10-26
HOW THE TARIFF WORKS.
WHY 1T DOES NOT INCREASE,
THE PRICES.

3 - = = = = x - ~ ~ 6<ASEs
THE PRICES.
The Building Of lndustrios--When
Assured Against Foreign Com
petition They Compete
Among Them
selves.
Many honest, sensible men are sad
" perplexed over the questions that
are constantly presented TO them by
the free traders of how and why does
protective tariff build up manufac-
turers? And how can such a tariff
make any Kind ofgoods cheaper, when
the consumer has to pay the duty
when he purchases the goods? It is.
evident say, the free traders, that if
the duties on manufactured articles
were taken of, the manufacturers in
foreign countries could afford to sell
US the goods for just that much less
money. The free traders are sharp
enough to otfurnish any particular6g
ures to help the honestinves tigator out
knowing well that such questions on
this subject conceal many things that
would be developed and made plain
il they attempted to explain them by
the use OF plain, common sense figures
And SO, the honest man, after think
ing the matter over a little while, con-
cludes that the questions are unan
swerable, and that the free trader
must be right.
But, really, how can a protective
tariff cheaper an article, and at the
same time keep the rate OF wages paid
to workmen up to a high standard?
It certainly does look at first sight
that the manufacturer would take of
the rate OF duty on an article made
in a foreign country to keep his prices
up to the highest notch. But let us
give the question a, chance to solve
itself and see what will come Of it.
At the present time the fight for and
against protective tariffs is being
waged almost exclusively between
England and the United States, as all
other important nations that have
heretofore tried q free trade policy
have abandoned it except England.
For illustration, then. we will simply
make use o. the conditions existing in
these two nations.
AS TO WAGES.
No one disputes the fact that the
rate OF wages paid In the United States
is much higher, for all kinds oflabor,
than is paid in England It is evident,
then considering the wage rate alone,
that it costs more TO manufacture an
article in the United States than in
England, provided the material costs
the same in both countries; and just
as long as shecan manage things SO as
to sell more fiher manufactures with
out paying any thing for the privilege
of using our market, just SO long can
she control the market. Under such
circumstances as these, the man who
invests money in manufactures in
America is playing losing game
AS all political parties claim to be
the laboring mans friend, and Want
to pay him good wages. Something
must be done to cover up this diff
ference in wages to enable the Ameri-
can Manufacturer to sell his wares in
the same market with the goods made
in England.
COMPETITION
Nothing is more true than the old
adage that Competition is the life of
trade and cheapens merchandise It
is equally true, however, that "no
competition keeps prices high" These
trite truths are better understood in
England than in any other country.
just let the United States start in to
manufacture something that England
has heretofore entirely controlled, and
see how quick the English manufact-
urer will put his price on that article
down in order to cripple the American
manufacturer and prevent the up
building Of competition. And if there
is nothing done to prevent the English
man from having free access to
American markets he viii triumph
every time, because he gets his work
done by poorly paid labor.
How, then, is it possible to create
competition in manufactures? Shall
it be done by reducing the price Of
labor? Or shall it be done by insur-
ing the man who invests his money in
factories against competition from
pauper, slave or convict labor?
There is always plenty OF money
ready to be invested in business when
there's a reasonable chance to get a
fair rate OF interest for it's use. On
the other hand, very few men are will
ing to invest money in nything that
promises almost certain to return no
profit or interest. Then we have the
case stated as follows:
Mr.. A has hundred thousand dol
lars which he would like to invest in
something that would pay him five
per cent interest He would like to
manufacture shoes; so he investigates
that business and finds that on ac-
count of the rate of wages, it will cost
him two dollars a pair to make shoes
and put them on the market.
He also discovers that the English
makers are selling those shoes for
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