Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1906-03-05
new ECONOMIC THEORY
Mr.. Shaw's Argument For Con-
t;nued Protection.
LIBEL ON AMERICAN INGENUITY

High Prices Have Reduced Wages BY
Comparison With the Profits of
Capital-The Cost of Living Must be
Reduced by Revising the Tariff
Schedules.
The enormous overcapitaliZation of
the trusts and combines renders it nee
eSSary for them to continue to exact
high prices for their products or be un-
able to pay dividends on their fictitious
capital. The protection the tariff gives
them makes the high prices possible. as
it prevents competition from abroad.
50 that the trusts have Il monopoly of
the home market. TO make the Amer
lean people pay these high prices the
tariff must he preserved intact. not to
produce revenue for the government.
but to shelter the trusts. Secretary
Shaw is defending this policy of trust
protection and high prices on the
ground that ''cheap products of labor
mean cheap labor" which Is Il new
theory in economies that the protec-
tionists have invented to hold working
men to the support Of the Republican
| party in its league with the combines
and corporations.
| Mr.. Shaw. being secretary of the
treasury, is supposed to speak for the
administration on such economic sub
jccts as tariff and revenue; so. al
| though his ''cheap" doctrines are alb
surd and his statements fallaciOus, yet
as President Roosevelt allows him to
continue Oh the stump it must be sup
posed that sounding the praises of high
prices is Endorsed by the administra-
ton.
| 1t is not true that cheap products of
labor mean cheap labor" says the New
York World, nor was that libel upon
American ingenuity wont to be uttered
in the earlier days Of tariff argument
1t used to be said that competition,
coupled with high wages kept products
cheap by compelling the improvement
Of the machine. OF late the trust
makers have learned the trick of i'm
proving the machine, raising the price
and pocketing the stupendous profit OF
progress
The portion Of labor in American pro
duction has generally increased within
the past few years when measured In
dollars and cents. 1t has not increased
when measured by meat and rent and
clothing. 1t has actually declined by
comparison with the profits Of capital
The Republican party has an unri
vailed opportunity for public service IN
reducing the cost Of living by revision
Of the tariff, and this service it Is, by
its reiterated pledges, bound to render
1t Is bound to reduce tariff taxation
which has proved unnecessary and bur
densome. 1t Is bound to seek such
reciprocal arrangements for freer trade
with other nations as Germany Is JUS
now anxious to make.
Nor can the question be lodged. Il
is unacceptable. 1t Is pressed by the
woman with the market basket. 1t il
urged by the growing deficit.
There are not 50 many ways in which
the governments expenditure can be
made to match its income. This car
be done by cutting down expenditure
and the only place where many mil
lions can be spared Is in our mounting
bills for warlille preparation. 1t cal
be done by tariff reduction which shall
stimulate foreign trade and so swell
the custom house receipts. There Il
| no other way.
1t may be a distressing choice for thu
stand patters, but they cannot evade i
by abusing cheapness, which Is thu
universal demand of every citizen whel
he spends his wages.