Vernon County censor. [volume] (Viroqua, Wis.) 1865-1955, 1905-08-23
GRATIFIED BRITONS.
PLEASED WITH FREE TRADE IN PAN
ANA PURCHASES.
English Manufacturer Hailed with
Approval the Short Lived BIunder
of Proposing 10 Buy Materials In
Markets of Europe.


There is rejoicing among British
manufacturers. They are looking with
longing eyes to the United States as a
more fertile field for the cultivation
Of their trade. Two things have de-
veloped this hopefulness. The first
was the announcement conveyed by
the cable from the United States sew
eral weeks ago that all supplies for the
Panama canal, including even ships,
MARKETS.. regardless of the patriotic
policy which would give preference TO
American manufacturers. The second
was the announcement that the presi-
dent contemplates bringing before con-
gress the question OF tariff revision
and that the railroad interests that OPP
pose rate regulation by some federal
agency Will aid in making tariff re-
vision prominent in order to make that
issue more prominent than the one of
rate regulation
With competitors from all over the
world free to bid on supplies for the
Panama canal, 1t follows, as a logical
result, that Germany and Great Brit
ain would profit the most, while the
supplies purchased from American
manufacturers would be third IL
amount If ships are required by the
canal commission they will not under
this policy be purchased in the United
States, for the German and English
shipbuilders, with their lower wage
scales, can easily undei>bid the Ameri-
can shipbuilders. even though the latter
have so little to occupy their shipyards
that they will be ready to sell at al
most the cost price. 1t is further to
be appreciated that the English ship
builders are not fully occupied, and In
the past few months new concerns
have engaged In shiphuilding and are
competing actively for business.
Whether German shlpyards are also
not oyerbusy / do not know, but even
If they have plenty to do the German
shipbuIlders can be relied upon to COM
pete actively for any business the Pan
anna canal commission may have. In
the sldpbuilding line.
If, on the other hand, the demand for
ships for the canal is so immediate as
not to permit of the delay necessary
for their construction, there are scores
of English and German vessels, more
or less old and more or less unsuited
FOR the passenger business, which will
be offered at low rates, which cannot
be met by any Americans who may
have ships to sell. Thus the determi-
nation to purchase from the lowest
bidders regardless Of their nationality
practically precludes the purchase of
any ships In the United States. If
ships are TO be chartered and not
bought, foreign shipowners cae easily
underbid American shipownlrs. This
policy will undoubtedly be economical
from the point of the cost of construct
ing the Panama canal, bu. it certainly
will not be In any degree calculated to-
upbuild our American merchant ma
rine or TO advance the patriotic policy
of recovering the carrying trade, even
in small degree, for the United
States
When 1t comes to other supplies for
the canal work, the decision to pur-
chase In the cheapest market practf-
cally removes the tariff vail which
was constructed to protect the Amer
lean manufacturers. 1t is an axiom Of
commerce that the foreign manufac-
turer always sells cheaper abroad than
at home. The English and German
invariably practice this
policy and complain against others for
doing the same thing. The foreign
trade thus captured serves 10 reduce
the average cost OF manufacture by In
creasing the volume and gradually
serves to reduce the domestic price.
This is the direct result of the practice
OF American manufacturers in making
an export price. against which the
have made and do make
such loud protests. This practice of
dumping" to a large degree, counter
acts the effect of protective tariff. 1t
facilitates the entrance of foreign
goods into our own domestic market
our tariff wall.
1t follows that with en- increased de-
mand In the United States. due to the
decision of the Panama canal commits
sion to buy in the cheapest market,
the foreign manufacturers will be keen
to seek the business of the canal COM
mission and to get q goodly share Of it
viii greatly reduce prices. This means
that to Great Britain and Germany
will go large share Of the business of
the canal commission, to the exclu-
sion of the domestic manufacturer
until such time as congress enacts leg
islation requiring all purchases for ca
nal work TO be made N the domestic
market, as it now requires all pur-
chases for other government work
ar1nor plate. for instance-to be made
Of domestic concerns.
The prospect of struggle over the
traiRs which these cables seem to
promise. is especially pleasing to the
British manufacturers, who are fully
aware of the advantage to them Of
even the slightest reduction OF existing
duties. They are also not unmindful
of the fact that a fight over the ques~
ton of the tariff is certain TO breed
strife In the Republican ranks and to
bring nearer the day when a party
hostile to the doctrine OF protection, no
matter how cleyerly that hostility may
be hidden. will gain control of the leg
islative and executive branches of the.
United States government Thus the