Republican news item. [volume] (Laport, Pa.) 1896-19??, 1905-12-07

Gain In Our Exports More Than or
set by Increase In Adverse Trade
balances, Loss In Revenue and In
iury 10 Domestic interests.
In estimating the value and advan-
tage Of reciprocity as illustrated in our
trade with Cuba the admirers of that
system apparently are able to see but
ouc aspect of the case. They contine
their appreciation of the blessings of
reciprocity to the single fact that our
sales to Cuba have increased from S21,-
IG1 ,G3S in 1908, no treaty year, to
S3S,3S0, goo in 190J full treaty year.
This Increase of $f6,GlS9G2 i'll goods
exported to cuba is accepted as cou-
clusively demonstrating the perfect
working of this reciprocity arrange
ment. The demonstration is good as
far as it goes. But there is another
side to the proposition--in fact, several
other sdes-for example, the trade bal
ance side
In 1908 fiscal year, before we had
entered into the reciprocity experiment,
our purchases from cuba amounted to
$G204279O, and our sales to Cuba We're
21.1G1 .G3S; adverse trade balance,
Sill .152.
In 1904 (iscal year,, with six months
Of reciprocity, our sales had increased
to 81, ,3TT ,iG5, and our purchases had
Increased to $TG.9S3.41S; adverse trade
balance S49.GGJ, ,gJ3 an increase of $S,-
424,&C1 over 1903.
IN 1903 (iscal year., with twelve full
months of reciprocity, our sales to Gu
la had Increased TO S3S3SO, 900, but
irpurchascs Erom Cuba had increased
- %SG.30I,2 ,259, leaving an adverse trade
b lance of $47, ,923,G59.
There was, it is true in 1908 slight
increase in the share of the United
States in the total volume of Cuba's
import trade as compared with the no
treaty year OF 1908, but the fact re-
mains that in 1868 we were furnishing
Cuba Il cash surplus of about $4S,000,
COO with which to buy goods from com
pcting countries.
Thea there is the customs revenue
side. Under the terms of our bargain
we reduced our tariff - per cent on
cigars and tobacco of the value of S14,
S11 .2SS, the loss of revenue amounting
to about 100000. On the SGS3S0000
worth OF sugar and molasses and other
dutiab,e articles the tariff reduction of
20 per cent amounted in round figures
to $TO0o,0O0, so that the total loss of
revenue in 1903 was $10,O00.000
The gain of $16,61S, ,9G2 in our 1903
exports to Cuba as compared with eX
ports in the no treaty year of 1903 is
partially offset by our $10C00,000 loss
in revenue
The fact is that three-ffths of the OK
pense of gaining export trade with Gu
ba is being paid out of the United
States treasury. All the people of the
United States are being taxed for the
benefit of the relatively few people
'.ho are Increasing their profits through
larger sales to Cuba. Moreover, the
loss of S1O,000,0O0 n year in revenue is
the chief cause of the deficit in the ma
tioual treasury.
Then. again. there is the industrial
side of TIE Cuban reciprocity question.
Thc heavy increase in imports of leaf
tobacco and cigars from Cuba by rea
son of the reduced tariff duties has to a
practically equivalent extent diminish
ed the demand for the production Of
domestic leaf tobacco and cigars of do
nestle manufacture. This loss to these
two industries may be roughly estimat-
cd at $3.0O0,000 year at least.
The loss to the Industries concerned
in beet sugar production in the United
States has been many times greater
than 100000 by reason of the re
duccd duties on Cuban sugar provided
for in the reciprocity arrangement
Truman G. Palmer, Il recognized au-
thority on domestic beet sugar produc-
ton, is responsible for the statement
that Cuban reciprocity headed off the
construction of some eighty new plants
which were projected in 1901 and
which would have required over forty
millions of dollars worth of new Amer
lean machinery and other material and
which would have annually turned
some twenty millions of extra dollars
into the pockets of the American farm
ers and as much more into the pockets
of American laborers."
ii viii be seen, we think, by any un-
prejudiced observer that on the whole
the gain of $1G6lS.9G2 in our exports
to Cuba in 1905, under the reciprocity
arran cement has proved Il costly gain.