Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-09-11
WHY SOME STUFFS
ARE CHEAP ABROAD
Secretary Shaw Explains the
Price at Home.
Difference is ONLY SMALL
Value About Equally Divided Be-
tween Material and Labor.
GOODS THAT ARE CHEAPER HERE
Articles on Which Drawbacks Are Al
lowed Are Numerous and Varied
Refund on Duty Averages.
DIFFERENCE is ONLY SMALL
Value About Equally Divided Be-
tween Material and Labor.
GOODS THAT ARE CHEAPER HERE

do with the tariff Secretary Shaw
told the audience of North Caro-
linians which he addressed at Sails
bury last night that under the
American scale of wages the value
of ordinary American manufac-
lures is about equally divided be-
tween material and labor. He also
declared that he personally was
willing to pay little more than
otherwise would be necessary to
the end that the products of
American labor shall be put on for
eign markets.
SALISBURY, N. c., September 11.-Sec-
rotary Shaw arrived in Salisbury at 8
o'clock last night. When he was introduced
to the 800 people who had gathered to
hear him he warmly cheered. Rep
resentative Blackburn introduced the Sec
rotary The audience included many lead
ing democrats. United States Senator Over
man and former Representative Henderson
of North Carolina were among them. There
were also representative republicans from
a dozen western North Carolina counties
in the audience. The Secretary declared
his belief In the political campaigns as edu-
Gators of the people and then discussed the
tariff at length.
Secretary Shaw said in part:
Our political opponents lay much stress
on the fact that some American manufac-
lures are sold abroad cheaper than at
home. That the practice prevails to some
extent all must admit, but that 1t does not
prevail generally or to any considerable
extent is easily established. A non-partisan
industrial commission was appointed by
Congress in 1885, which, after spending
more than three years in the investigation
filed its report in 1902 which was pub
lished in eighteen large volumes. This re-
port contains all available evidence on this
subject. After making careful compilations
from the data therein contained, Senator
Gallnger of New Hampshire stated on the
floor of the United States Senate in April,
1904. that approximately 100000 worth
of American manufactured products are
annually sold abroad cheaper than in our
own domestic market. No one has ever at
tempted to disprove Senator Gallinger's
conclusions, though our political opponents
continue to speak of the practice as we'll
nigh universal. This 100000 worth can
be far more than accounted for by the ad-
vantage given to exporters under our draw
back laws, and 1t is quite likely the esti-
mate Is too low.
Policy of the Party.
1t has been the policy of the republican
party for many years to allow manufac-
turers who export their products the ad-
vantage of the cheapest possible raw ma
terial. The Dingley tariff law provides
two ways by which exporters may avail
themselves of this advantageous privilege
First, the law authorizes the manufacture
of merchandise for export in bonded fac
tories and permits to be transferred thereto
not only imported ores, iron and steel bill
lets and other material free of duty but
also spirits and tobacco free of internal
revenue tax. During the last fiscal year
approximately $4,000 600 worth of imported
ores for smelling, material for manufac-
lure and distilled spirits and tobacco were
thus used and the entire product exported
and no duty or internal revenue paid
thereon Had this material been entered
Tor consumption in this country the duty
and internal revenue tax would have heen
quite a large amount and, to the extent
OF TINS saving in the cost of the finished
pfoduct' the smelter and manufacturer
could reduce his export price and still make
the same profit.
Under the American scale of wages the
VaIue OF ordinary American manufactures is
about equally divided between material and
labor The conversion into finished products
therefore. of $10,G00.OOO worth of raw ma,
terlal consumed in bonded factories Would
justify the sale abroad of twice that
amount OF refined or manufactured products
cheaper than at home. / should not be sur
prised TO learn that most of the outnut ~
these bonded smelteries and factories is
sold abroad below the price prevailing in
the United States.
The other method provided in the. Ding
ley law for allowing manufacturers who
export their products the advantage of
cheap material authorizes the Secretary of
the Treasury to pay back to the exporter OF
manufactured merchandise 90 per cent OF
the duty which he has actually paid upon
any imported material consumed therein
During the last fiscal year there was refund.
I'd 10 exporters OF manufactures produced In
whole or in part from imported dutiable
material approximately $1,000 600 The re-
fund of duty averages about per cent of
The value of the exported merchandise. This
drawback provision, therefore justifies the
sale abroad of S120,O00.0O0 worth of Amer
lean manufactured merchandise per cent
below the domestic price of similar articles
Both these provisions of the Dingley tariff
law were enacted for the avowed and sole
purpose of enabling the American EMPLOYER
of labor to put his product on the foreign
market at reduced prices. In this way only
rs he able successfully to compete with
rivals who always have the benefit of cheap
labor and frequently of non-dutiable and
untaXed material.
Drawbacks on Articles.
The articles on which drawbacks are al
lowed are numerous and varied Last ve.r
drawbacks were allowed on eighteen art,-
cles In which dutiable iron or steel was
consumed, nine articles in which dutiable
imported lead ore or lead bullion was in
corporated, three articles in which duhah,o
tin plate formed part. nine articles in
which dutiable sugar or molasses was used
twelve different articles in which imported
dutiable alcohol was used several in which
imported dutiable hides or leather was used
and no end OF articles in which dutiable
imported wool was used Drawbacks were
allowed on over 100 manufactured articles
In the production of which fifty different
kinds of dutiable imported materials were
consumed.
The policy of allowing drawbacks upon
the expectation of manufactures into which
dutiable raw material has entered is in
strict harmony with the principle of pro-
lection. The protective principle avowedly
and in fact gives the American producer an
advantage within the American market
but no economic policy can give the Amer
lean producer an advantage over his for
eign competitor in the foreign market. b.
The republican party from the time of its
birth until now has protected the laborer
who produces for the American market in
every way possible for man to conceive.
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