The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1904-05-25
WEDNESDAY, MAY IS, 1904.
A COMPLAINT OF HIGH PRICES.

We find in a Republican cOntempo-
rary, which stanchly advocates the
whole Republican position, the follow
ing remarkable statement:
Our prices are above the level of the
world market. and the world is going else
where for its supplies. We must pay for
our purchases abroad with gold, of which
we have sent $55. 900 to Europe in a
few weeks. The only corrective of this
is a fall in prices. which would induce
foreigners to begin buying our goods
again. This is prevented for the present
by the redundancy of money, which is
lent at l per cent in New York. But the
bank reserves are running down every
week with the heavy gold shipment and
the treasury drafts on the banks. This
can end only in a contraction of credit
which will put the screws on prices till
they are low enough for an active export
trade
All this is quite true, but an extreme
departure from average Republican
logic. The Republican on the stump
and elsewhere generally tells us that
high prices are boon, that high prices
mean high wages and general prosper
ity and that prices can be made and
kept high only by big duty on i'm
ports. This is the essential principle
of the whole protective theory
The difficulty in establishing a sane
and honest system of customs duties
in this country has been the depth and
height and breadth of popular ignor-
ance on the subject of prices. When
ever we clap on high tariff, prices do
advance temporarily. This is just as
certain as that five pounds extra pres
sure in the steam gauge means more
price advance may be added to wages,
and for the moment prosperity be
stimulated, Conversely, when it be-
comes necessary as a remedial meas
ure to cut down the tariff, prices are
momentarily depressed and business
speed slackens.
Therefore, prosperity has come to be
connected in the public mind with high
tariffs and business depression with
low, because of these temporary eff
fects. The average man has not
thought out the problem far enough
to perceive that no legislation can alter
ultimately or prevent the operation of
the natural laws of trade; and to I'M
derstand that in business just as in
health the lowering of the temperature
and the pulse is often the only way
of return to health.
What our contemporary SAYS about
business conditions and prices is alb
solutely true. AS long as trade con-
sists of an interchange of products. it
rests upon the existence of a buyer as
We'll as seller The United States de-
ponds more than most nations. aside
from Great Britain, upon it's foreign
markets The great stimulus given to
manufacturing by protection has forced
us into the foreign field to find GUS
toners for manufactured articles
just as we have always had to
go there TO find customers for
our agricultural products. If the
foreign market is curtailed. stagna-
ton and business distress in this conn
try must follow. Yet we can hold this
market only by making prices that the
foreigner will pay. We must meet
world competition there. Hence if is
that when our price level is too high
the evil eorrects itself; and must do
so, though all the legislatures and
tariffs and other laws in mans control
We're set against it.
The point We wish to make is the
admission from the Republican side
that the rise and fall of prices cannot
be affected at all by tariffs or the alb