The Paducah evening sun. [volume] (Paducah, Ky.) 1906-1929, 1909-06-25
BAILEY AND THE CONSUMER

II Il
Senator Bailey has discovered a
new principle. He protests against
| free raw material, because, he says,
lit relieves the manufacturer of the
burden, and throws the burden on
the consumer, who must purchase
the manufactured product, which Is
protected by the tariff. We wonder II
Senator Bailey thinks the consumer
doesn't pay the tariff on raw ma
terial, too, and on everything else on
which a tariff is levied. Anyone. who
says the consumer does not ultimate
ly pay the tariff, is not wise. He
pays all the incidentals, the wages,
the cost of material, the transporta-
ton charges, the insurance, the
risk and a profit; just as the renter
pays the taxes on his landlords
property. Anything that enters into
the cost of a thing. including taxes
and interests, adds to the burden of
the consumer. Senator Bailey must
get that into his head.
That would knock the theory of
the protective tariff into a cooked
hat, If the population were divided |
into two distinct. never confused
classes. the producer and the CON
sumer. But all are consumers and
all are producers. Producers Of raw /
iron, wood, corn,
cotton, rice, suger, oil--ask for a
high tariff to keep out competition
from abroad, and enable them to
maintain the price they desire for
their products. Now these men,
farmers, planters, mine owners and
timber men. are producers; but they |
also are consumers of the products
OF factories. Steel manufacturers,
oil refiners, mill men and others,
ask for a high tariff on their prod
ucts, In order that they may pay the
American wages and still compete in
the home market with tariff manu-
featured in Europe, where wages
are lower. They are producers; but
they also are consumers OF what the
farmers raise, the miners dig out OF
the ground and the lumber men saw
up.
In the mills and on the farms and
in the stores are men and women
working, who demand higher wages
than are paid for similar wages in
Europe They are supposed to bene-
At by the high tariff, which operates |
to check the supply for the local de-
mand. In that sense they are par
takers In the profits of the produc-
ers, and yet they are consumers, as
well. Now. the theory of the tariff |
Is that by increasing the profits and
enabling the higher wage scale to be
met, the purchasing capacity Of the
individual is increased. thus increas-
ing the demand for all kind OF prod
ucts, which must be supplied by
home industries. This demand for
the manufactured product increases
the demand for raw material, which |
also benefits in price. So all are
considered In one sense producers,
who benefit by the tariff. and In an
other consumers, who pay the tariff.
For instance an increased tariff on
sugar might cost the average con-
sumner as much as ten cents a year,
while netting the trade millions of
dollars.
That is theory of the Protective
tariff. Whethef one considers 1t the
right theory is a matter OF individual
choice. Honest. intelligent men diff
fer on the subject. and there are
millions for and against 1t. But
Bailey need shed no tears for the
ultimate consumer. That gentle
man knows he has to foot all the
bills, no matter what form they take.
whether under free trade or protec-
tive tariff.