Weekly independent. [volume] (Elko, Nev.) 1887-1914, 1907-10-11
THE TARIFF FOSTERS TRUST

lHh lANlff fUSIkkS IkUSI
In an interview published IN the
Minneapolis Sunday Journal, Ex-Gov-
rno Douglas of Massachusetts ex-
pressed the following interesting views
on public questions:
The necessitise Of lite-food, clothing,
building materials and the ike-have
risen in cost on an average Of go per
cent in the greatest period Of expansion
and Initiation i'll the history OF the coup-
try, Of which we have Just reached the
top. charge that 90 per cent of this
increase Sc directly the result Of high
tariff duties and tariff protected trusts
This enormous Increase in the cost
Of living has not only neccssitated IN
increarc i'll wages averaging perhaps %
per cent" eaid tho governor, abut has
increased the cost OF both ordinary pro-
duction and permanent in improvements.
Consequently more capital than ever be.
fore is required to do legitimate bust
ness.
@But not all business is strictly lp-
ultimate. When the prices OF every.
thing are rising there ARE great oppor-
tuDities for unearned protits-.hat is
profits from simply holding imperisha-
BILE property. Tho temptation to specu-
late in real estate and commodities is
so great that not only are prices unduly
enhanced from this cause, but all the
available surplus capital is absorbed and
the demand for capital Tor both business
and speculative purposes has become SO
high and the strain on credit facilities SO
great that many legitimate businesses
can no longer be conducted at a profit.
AS a result, building and mnnufac-
turing operations in some lines, and rail-
road and other improvements are be ing
postponed or abandoned. Business
must halt until either new capital can be
created or values and prices readjusted
to lower levels aud sufficient old capital
RELEASED to lessen the demand for capital
and thus give the lower interest rates.
ado not charge that all Of the increase
in prices since 1891 is chargeable to the
existing protective tariff system, but |
do charge That about 20 per cent is.
Tie mere statement OF those palpable
facts should indicate to Intelligent
minds the true and real remedy for the
evils Of trus: and inflated prices.
"Ihe real remedy lies in the removal
OF the duties that shelter and protect
them. Then, and not till then, will
prices be reduced to the permanent
benefit OF the people. Had such tariff
duties been removed last year, prices
would have declined m average OF per
haps 10 per cent, less speculation would
have resulted, much capital would have
been set free, tie strain upon our credit
structure would have been relieved and
business might now be running smooth
ly, instead OF haltlnSly. Should we
have a serious business depression this
year or next, it will be largely the result
OF our absurdly high tariff, and might
have been avoided by the reduction ui
tariff duties
Former Governor Douglas asserted
that President Roosevelt has in reaIit,
done nothing OF value in breaking W
the trusts, and that the combination.
which arc today legally and Officially
dead have their hands rs deep III tn,
pockets of the country as ever. Il,
characterized the ~trust busting OF til,
administration as @speClnculatorT aud n
against "the good and the bad, the lie
gitimnte and the illegitimate," md ms
serted that they are more for political
effect han for safe and sane dispciplinar,
regulation. He refused to discuss tn,
presidential election further than to sa,
thnt il the democratic party will take
position on the tariff and do all possibl,
to abolish special privileges with
proper platform and candidates. he ha
- Al. --z