The Leon reporter. (Leon, Iowa) 1887-1930, 1909-12-23
TARIFF AND TRUSTS FURNISH
THE ANSWER.


When President Taft cites the i'll
creased prices of farm products to
prove that high tariff is not RESPONSE
HE for any considerable share of the
increased cost of living let him turn
to James j. Hill for his answer
There is reason, a natural reason
for the mounting prices of food pro-
ducts. That reason Is given by Mr..
Hill clearly, cogently, convincingly.
But there is no sufficient reason for
the enormous prices of manufactured
products. except as it is found in such
artificial causes as protective tariff
which eliminates competition from
abroad. and trust agreements which
eliminate domestic competition.
Food products are rising in value
because. as Mr.. Hill graphically
shows, consumption and population
are increasing SO much faster than
production The demand is rapidly
increasing. while the supply, relative
ly. Is diminishing at an alarming
rate. And the prices are fixed, in an
open market. by the law of supply
and demand. In this case, since pop
ulation is bound to go on increasing,
and with it the demand, the remedy
lies in increasing the supply. Mr..
Hill is the John the Baptist of that
remedy, crying his religion in the
wilderness. And he is rendering the
whole American people an inesti-
mable service in his preaching of this
gospel
But conditions are radically differ
ent in the industrial field. Our manu-
facturers are not decreasing, rela-
lively, as we'll as actually. Farm eX-
ports are falling off, factory exports
are climbing up at an amazing rate.
In manufactures, in a word, supply
is increasing faster than demand,
and the energies of our business
world. and of our federal govern
ment. are necessarily devoted to find
ing and developing foreign mar
kets for the surplus products. When
the same condition prevailed as to
farm products. when not only this
country but the world was glutted
with wheat and corn and other pro-
ducts of the soil, prices fell to near
the vanishing point.
Why does not this same material,
logical tendency manifest itself now,
in the case of the output of our mills
and factories?
There is still another reason why
factory products should be cheaper,
aside from that found in relatively
increased supply. That other reason
is lower cost of production. Most
of the processes of manufacture,
formerly done by hand, are now done
by machinery, at only a fraction OF
the old cost. One man, in number
less instances. does today the work
that dozen or a score or hundred
men were required to do generation
or two past. Science and invention
every day of the year, are bringing
forward improvements all calculated
to improve and cheaper and expedite
manufacturing processes. This is
quite the contrary of the condition
that governs the production Of food.
AS Mr.. Hill shows, in ten states there
is less production Of wheat per acre
than there was ten years ago. The
same labor, the same or better ma
Thinery, costing more money, applied
to land that costs more money, pro
duce less wheat rather than more
wheat Naturally, wheat rises. Blu
the same labor and improved ma
cllinery bring forth more factory out
put than was possible ten years ago
Why, then, do not manufactures fal
in price. or at least remain stable
Why, instead of falling, have actual
ly risen an average of about so pc
cent
Tariff and trusts furnish the an
swer.
In conformity to natural law farm
products are rising, and must contin
ue at their high level, until the rem
edy invoked. by Mr. Hill is applied.
And in defiance OF. natural lay
factory products are rising, and viii
M continue to rise, as long as the tari1
is used to make the American con
sumner helpless while the trusts ii
him hand and foot and go throug
his pockets.
why is the steel trust paying ia
dividends on $500, 100000 or NOR
Of water?
Why is the Standard Oil earnin
from 40 to so per cent on it's capi
talization?
Why are the New England cotto
and wooden mills earning as high a
a 81 per cent annually?
Why are scores upon scores @
trusts increasing their wealth so raj
idly that multimilionaires have be
come as common as flies in August
It is because. while America
genius, invention. industry. faYorabl
conditions of all kinds, enable ther
to produce a constantly increasin
supply at cheaper cost. tariff an
trust grating enable them to dispos
4 Of their bigger and cheaper suppl
at a higher cost
There is the difference betwee
Il rising farm prices and rising factor
prices.
James J. Hill has effectively an
swered William Fl. Taft.-Omah
World-Herald.
Did you ever notice that the fe
low who does the most boostin