The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-09-13
Low PRICES ABROAD.

Low PRICES ABROAD.
The Democratic campaign managers are
trying to make an issue out of the fact
that some American manufactures are sold
abroad cheaper than they are in this coun-
try. the inference being that the American
consumer is robbed to the extent Of the
difference between home and foreign prices
Responsibility for this alleged condition is
laid on the tariff. The condition is greatly
exaggerated and it's cause is misrepre-
sented. 1t is true that some American
manufactures are sometimes sold abroad
cheaper than they are in this country, but
the amount is small and 1T is done for rea-
sons independent of the tariff. During the
year ended June 80, 1902, our manufactured
products amounted to s13001. 100000, of
which we sold abroad s4O5.s9o.763. and of
this amount only s3,9S2.OOO at lower than
home prices. OF our total sales of manu-
features abroad only 1 per cent. was at
less than home prices, and of our total
manufactures less than one-thirtieth of
per cent. was so Sold This is an exceed
ingly small matter, but the Democratic
party is grasping at very small straws
nowadays.
The United States industrial commission
investigated this subject and the testimony
before ii shows that in almost every in
stance when a reduction of prices was
made for foreign markets it was done for
good business reasons. Some of the reasons
fore the commission were to 10 per cent.
to commission houses; lower because of
drawback; lower to meet English, French
and German cheap labor manufactures; 20
per cent. lower to get rid Of out-of-date
surplus; lower rather than be forced out of
the market; to per cent lower to meet
foreign prices; lower because terms are
cash. Some of the witnesses testified that
they sometimes resorted to cut prices in
order to keep their factories running full
time, which means giving employment to
American wage earners. II reviewing the
testimony the commission said in its re-
port:
In order to gain and hold foreign trade it
has occasionally been necessary for both
combinations and individual exporters to
make low prices to foreign purchasers. 1t
is in evidence before the commission that,
even within this country, the more distant
markets receive concessions in price. In
about 20 per cent of the cases covered by
the commissions returns the export prices
have ruled lower than those charged to
home consumers. Sometimes merely sur
plus stocks have been unloaded upon the
foreign market. At other times, when the
home demand has slackened somewhat. it
has been possible to keep manufacturing
establishments employed to their full ca
pacity and most productive efficiency only
by finding a foreign market for part Of the
product, and that could be best done by
cutting prices.
The practice is quite common in all coun-
tries. and on the part of separate establish
ments as well of combinations. Were
! this plan not adopted, il would often be
necessary to run the plants only part of the
time, which would not merely throw a por-
| ton of the laborers out OF employment but
would also add materially to the cost of
| production of the remaining product. 1t is
! probable, therefore, that when the export
| prices have been at cost ri the result has
| been, by keeping the plants fully employed,
| to hold the prices to American consumers
lower than would have been possible other
| wise
The report further showed that Of all the
manufacturers reporting only about 20 per
cent. ever sold goods abroad at less than
home prices for such causes as those above
named, while so per cent. never did so
at all.
1t is a curious fact that the practice
which Democratic leaders aver exists
among American manufacturers as a result
| of the tariff has existed to greater or less
extent in free-trade England for more than
fifty years The report of a royal COM
mission to the British Parliament in 1915
said: 1.-The laboring classes in the manu-
featuring districts are very little aware of
the extent to which they are often indebted
for being employed at all to the losses
which their employers voluntarily incur to
gain and keep possession of foreign mar
| kets" A report made to the industrial
commission by an agent who investigated
the subject in Europe shows that the prac-
| tice prevails to some extent in all COM
mercial countries. 1t grows out of business
conditions entirely independent of tariffs
Under the Wilson German tariff this coun,
try was flooded with foreign manufac-
lures which were sold cheaper here thar
they were in the countries of their manu-
facture and American wage earners were
the sufferers, as they always are from
Democratic policies.
AS TO TIN PLATES.