The Chanute times. [volume] (Chanute, Kan.) 1897-1913, 1903-03-06
EXPORT DISCOUNTS
SELLING ABROAD CHEAPER THAN
AT HOME.
The Practice a Far More Common one
In Free-Trade Great Britain Than
Under a Protective Tariff In the
United States.

The practice Of granting discounts
on goods sold for export is the OASIS
for much of the agitation for reduction
Of the tariff. For example, the soul OF
Gov. Cummins boils with virtuous in
dignation at the contemplation OF SO
foul a crime as that which Is involved
in selling surplus products to foreign
ers at a lower price than that whlcn
domestic consumers are required 10
pay. The souls of Senator bolivar,
Director of the Mint Roberts and other
watch dogs Of the tariff boil similarly
and for a similar cause. They cannot
tolerate the thought of building up for
eign trade by such means, and they
propose to stop the thing by tearing
open the tariff schedules and introduce
ing what Gov. Cummins calls "poten-
tial foreign competition" Congress
man Tawney also exhibits some per-
turbation at the thought that some
portion-about 1 per cent-of our do
nestle production finds it way to for
eign buyers at slightly cut prices, and
he proposes a Congressional commits
sion to inquire into the matter with
view to arriving at some method
tariff reduction, of course-whereby
American mills and factories will be
forced to shut down when the limit OF
domestic consumption shall have been
reached. Incidental to this plan 1t is
proposed to lower the tariff bars SO
that it will be much easier for foreign
producers to work off their surplus on
the American market at cut prices and
thereby diminish American production,
employment and wages. Great heads
these Republican reformers have.
The practice Of price cutting to for
eign customers is universal. 1t OBJ
tains to a very limited extent in the
United States, where protection pros
perity has created demand that alb
serbs all our industrial production as
fast as 1t can be turned out 1t OBJ
tains much more in foreign countries.
All over Europe goods for export are
invoiced at lower prices than the pre-
vailing market price for the same
goods at home. In this connection at
tention is called to the following ex-
tract from a letter to an American
house, dated Sept. IL, 1902, from the
firm Of Charles Cammell & Co., linn
tied, of Sheffield, England:
In regard to reducing prices for
export business, this is done by us,
inasmuch as the prices we obtain from
home railways are sensibly higher
ahr
Cammell G Co. sell steel rails. They
do business in free trade country.
Hence it cannot be protective tarlr
that enables them to obtain from home
railways prices that are senslDly
higher" than the prices obtained from
customers abroad" And yet we hear
of no parliamentary commission to ex-
anime into the matter and report
plan whereby the British iron producer
shall be compelled to stop his quest
for foreign trade by means OF reduc-
ing prices for export business. For
eign governments seem to think 1t
good thing to market surplus products
abroad and thus maintain production
and wage paying at home. For exam
ple. the charters Of considerable
number of English railways require
that goods for export shall be carried
at a lower freight rate than goods for
home consumption. 1t is only in the
United States that progressive" re-
formers are to be found who would
not only stop the sale of surplus prod
ucts abroad, but would offer special
inducements to foreigners to dump
their surplus on the American mar
kat