Manchester Democrat. [volume] (Manchester, Iowa) 1875-1930, 1909-06-09

OUR EXPORT TRADE IN FLOUR
We hear from time to time tha,
the United States is likely to lose
its export trade in flour. This may
we'll be sau,ness economic changes
going on shall be met with changes
in legislation. 1t may he impossible
to do this without sacrificing inter
ests of more Importance. This tn
not an argument for the salvation
of the flour trade; only an exposition
of the conditions that menace 1t.
Our export Trade in -four, Hike that
in other manufactures. has been
built Up on cheap and abundant raw
material, and mechanical efficiency
enough to offset the higher labor
cost, due to our policy of protection.
The tariff does not help the expert
flour trade, though it helps the do
mestio, by increasing industrial con-
sumption. 1t taxes cost Of produc.
tion and limits foreign markets by
closing cur markets to products Of
foreigners. We can keep it only by
keeping OUT offsetting advantages.
In the nature of things these are
not permanent and may be offset by
other nations even while they remain
to lis. Our alert mechanical efficien-
cy has dangerous rival in the scien-
tific thoroughness of Germany. Even
our cheap raw material may be off
set by the. artificial protection of
German export bounties. But the
industrial development of the coun'
try tends continually to deprive the
mills of cheap raw material. 1t may
be for the best interest of the whole
country that this should be done.
When mills grind wheat at the
equivalent of the London price, farm
ers must sell at that price, in CON-
petition with the cheapest wheat la,
Dor of the world American farmers
are gradually escaping from this ne.
cessity with gradual increase of the
consuming capacity Of the country
The export trade in wheat and flour
go together. When we stop perma-
nently exporting wheat, the price will
rise to the general American level,
under our policy of protection, if we
keep that up, and the farmers will
see that we do.
The millers will lose their last adj
vantage in competition with those of
England and the continent and our
export trade in flour will disappear.
We shall even lose the advantage Of
superior quality, when American
farmers in Canada produce wheat
equal to our best and send it to
Europe at the worlds price for the
same admixture with other kinds OF
the most perfect production that is
practiced in our own mills.
1t is pity not to prolong indefinitely
the American export flour industry by
allowing it to use this Canadian
wheat. That would not injure the
IAmerican farmer ine the least II
would benefit him. in cheaper foot
for stock, II he had the acuteness tt
insist upon relieving the mills ol
the duty of 81 per ton ON the coarsel
by prodntcs of Canadian flour ground
for export. to be sold in this country.
Taking it at its worst, what would
be the effect of the disappearance ol
the American export trade in flour
Did the energy and fertility of Amer
ican industry continue, it would no
reduce our total production for ex
port and consumption; on the con
trary it would increase the value o
both by changing its form. There |,
more profit in exporting finished pro
duct than raw material, and man.
finished products, above all food pro
ducts, are the raw material of othe
products.
me CldllSe We contemplate WOuls
be another step upward in our indus
trial development We began witt
exporting the product of farm
labor in wheat. We advance to add
ing the labor of the mills before ex
porting in form of flour. When W.
feed all the flour we make to Ameri
can workmen who are producing ma
terial of higher value for export w
shall increase the national wealth.
There is one dark side to th'
prospect. How are we going to keel
up our foreign trade in anything. a
the ephemeral advantage of ou
cheap and abundant raw materia
disappears, while we shut out foreigl
trade with prohibltory tariff? Tha
is question for statesmen like AID
rich and Cannon.-Farmers Tribune.
1T WORKS BOTH WAYS.