Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1910-07-14
GOLD OR THE TARIFF
High Cost of Living Blamed on
Yellow Metal
THE REAL CRIMINAL IGNORED
Friends Of Protection Select q Scape-
goat to Bear the Sins Of High Tariffs.
A Theory That Is Difficult to Prove.
Relation Between Duties and Prices

The theory that the increased gold
supply. Endorsed as it has been by So
many able economists. is responsible
for the high cost Of living has been
eagerly grasped by the friends of high
protection as Il weapon Of defense in
their present trouble. 1t is II perfect
gOdSend to them to be able to throw
the blame on too much gold" The
Massachusetts commission on the high
cost of living has lent the weight of its
authority. whatever that may be. to
the fashionable doctrine.
We do not say that there is not some
truth In the doctrine. but we do say
that 1t is far from being proved and
that considerable part Of the high
cost of living can be sl.,wn to be due
not to the plentifulness of the yellow
metal, but to our old friend the tariff
We therefore protest against the gold
depreciation theory being made the
Scapegoat to cover the sins of the real
criminal
The commission says: with regard
to the tariff the facts that prices have
fallen and risen during long periods
without relation to change in duties.
that prices have been rising in Great
Britain under free trade and that large
increases have taken place in the
prices of commodities not appreciably
affected by the tariff show conclusive
ly that the tariff has not been the ac
tive factor in the recent upward move
ment of prices in this country"
These are reckless statements com
ing from a supposedly judicious and
unbiased body Of men. We shall show
that there IL n relation. and an init
mate one. between high duties and high
prices. that the rise In prices in free
trade England since 1896 has been only
half what II has been in this country
and that the tariff has been an active
feature in the upward movement of
prices In this country since then.
First. then. as to the relation between
duties and prices
We will take the last three tariff
laws before the Payne measure for
examination. During the four years Of
the Mckinley tariff the average duty
collected on free and dutiable goods
was 22.56. while prices according TO
BradStreet's index numbers were on
an average 7.t:'4G. During the three
years of the Wilson bill the averages
on duties and prices as above were
respectively 20.93 and 64l53. During
eleven years Of the Dinclev hill tho
averages on duties and prices were.
of1S and 1856 We thus SOC thn,
prices were higher under the McEin
Icy tariff than under tn" Wilson tar
if and that they h"'ame high again
under the Iingey tariff That is to
say. prices We're high when tariffs wrr"
high and low when tariffs were low
As Il matter of fact they show II mark
cd advance after the passage OF each
high tariff
Now as To the rise of prices in free
trade England. II is true that prices
have risen in ENGLAND since 1896 Ru
they have risen there only half as
much as they have here With is
the rise has been about 60 per cent
according to BradStrept's. But In Eng
land the rise has been scarcely 30 per
cent. according to the London Econo
mistS figures
AS to the tariff not being the active
factor in the rise Of prices since 1906
it is II we'll known fact that the era
Of trust formation was uShered in by
the passage of the Dingey bill. that
great breeder of trusts The function
not to reduce them to the competitive
standard. and so brazcnly did they
carry out their purpose for the first
few years after the Dingley bill was
passed that by 1902 the cost of living.
which was largely in their hands. had
risen 40 per cent above the 1891 stand
ard. The extent of their eXtortion may
be gauged by two thinGs-the lower
level Of English prices and the lower
prices charged by them to foreigners
for the same articles Tie persistence
of the trusts in the policy of diScrimi-
mating against home buyers caused
great uneaSineSs in Washington at the
llluc, itiuluS MCNllIeN 10
alter his views. so much so that the
offending manufacturers were warned
of what might happen to their protec-
ton II they continued their discriminate
ing policy. 1t may be that within the
last four or five years the trusts have
not appreciably raised prices. but there
was no necessity for them to do SO
They got their fine work in during the
first few years after the passing Of the
Dingley bill. Gold may have done
the rest.
In the face Of such facts as the
above there is no use In harping con
tinually upon the plentifulness Of gold
us il that disposed Of the whole ques
ton. In so far as the gold standard is
at fault the question Is an information
al one and we can only solve 1t In
conjunction with other nations. bu,
in so far as the tariff IS at fault we can
apply the remedy at once without wait
ing for any other nation. The remedy
is plain-too plain for the MaSsachu
sets investigation committee to see il
They were not looking for Il plaiu
remedy; they wanted Il reconcile rem.
edy, something that would mystify the