The Washington herald., 1907-02-15
DEFENDS FREE PORTS
Secretary Shaw Speaks OH
the German Tariff Idea.
ADMITS FORCE IN FREE TRADE
Tariff Must BE Fair to All Sec
tiOns-Discusses Policy of Selling
Cheaper Abroad than at Homo.
steel Rails Not sold for $3.50 Per
Ton Less when Exported.


Shaw. in a speech before the chamber of
commerce tonight, discussed the tariff
and export trades. He said, in part:
In a recent speech before the New
Hampshire board of trade / suggested the
adoption of the German economic policy
of free ports. The reception given this
suggestion is somewhat amusing
NO one objects to the refund, under the
present drawback law. of the duty paid
whenever the output of open factories.
produced from imported material, is ex-
ported. Manifestly. these laws permit the
sale of American-made products from
imported material to be exported at
lower price than prevails in the United
States. That is the intention Of the law.
Il was the purpose Of the legislator and
it is the object of the law to foster the
export trade. But when the feasibility
Of including a tannery. a shoe shop.
flour mill, and a maccaroni factory under
a single bond is suggested in imitation Of
Germany, economic writer's hold up their
hands in horror and aI,szement and rack
their imagination to find grounds for con
demnation.
Though a strong protectionist myself,
I cOncede there is much force in free trade
arguments Undoubtedly, the. American
people in the swing Of years would be
prosperous were this a free trade country.
Whether they would be as prosperous as
under protection is a question TO be dis
cussed elsewhere. Manifestly. it would
not be appropriate on this occasion to
urge the relative merits Of the American
policy OF protection and the English
policy of free trade II is appropriate.
however, TO discuss the undesirabllity Of
applying either principle provincially.
Free trade and protection are AT constant
war with each other, and will not harmon
lze If New England is 10 have protec-
ton for her manufactures then / insist
that Florida shall have protection for her
citrous fruits. Louisiana for her sugar
Texas for her cattle, Montana for her
wool, and Dakota for her wheat. If New
England is TO have free trade in the
things she consumes. then let her coucede
free trade IN the things she produces.
Protection in spots and free trade Ia
spots is the most vicious political hercsy
known 10 man. and resolves all economic
legislationajnto a sqUabble for local adj
vantage.
The Selling Cheaper for Export.
''Win you pardon the suggestion that the
American producer Of shoes has no right
to complain OF the price Of leather? Only
the consumer of shoes has right 70 be
heard on that subject II the govern
ment Of the United states were to furnish
material for the shoe factory gratis and
- -.~. ~ h.
as brisk in I'VE years as it is now. and
profits would be reduced quite as low,
and. in my judgment lower.
THE objection most frequently raised
and most persisteHtly urged against the
drawback. the bonded factory. and the
Bonded port, is that they permit the
American producer 10 sell abroad cheaper
than AT hCme. II there be an article pro-
duced in Europe which is not regularly
sold for export 10 America cheaper than
II is sold IN the country Of its origin. the
Treasury Department has not discovered
II.
"Of all the people Of earth we. who
have the least reason to object and be-
cause Of the prevailing high scale of
wages, have more reason to encourage.
are the only people 10 protest against
placing the product Of American labor in
foreign markets at reduced prices.
steel Rails Not Cheaper Abroad.
The charge had been so frequently made
that steel rails are sold abroad at $50
below the American price that l took
occasion to investigate the matter. ] asked
the president Of the United States Steel
Corporation 10 let me see the records Of
their foreign sales covering the period of
the preceding sixty days. This favor was
promptly granted, and personally exam
ned them. The sales aggregated 25,eo
tons. ,and their foreign designations in
Guided Japan. Buenos Ayres. Peru, Chill,
Bolivia. Havana. and YUCatan. The aver
age price on board cars at factory was
81. s. per gross ton. One sale was at
S2S.25 per ton. which is = cents higher
than the price prevailing at home. The
lowest sale was $3.50 per ton. % cents
lower than the American price.
7 made this statement in a speech at
Rochelle. H.. in October, 1896. and gave IL
to the press, but il seems 10 have pro-
duCed no effect. There came to my desk
day or two ago an editorial in one of
the leading metropolitan journals contain
ing the fippant and ill-advised statement
that the price Of steel rails in the United
States is $50 per ton higher than in
other countries. Without induiring into
the facts. the one who wrote the editorial
assumed that the American price was
advanced p9Ti paseu with the tariff. II is
strange that some of these foreign cOun-
tries which buy our rails never get to see
these published utterances. for 1 cOncede
the Information they contain would be