The Grenada sentinel. [volume] (Grenada, Miss.) 1868-1955, 1911-03-10
ITS USEFULNESS GONE
CAUSE OF THE IMPENDING
DOWNFALL OF PROTECTION.
Demand for Downward Revision Of
the Tariff Has Foundation In Facts
-Reciprocity With Canada
the First Step.

4
- |
Originally the protective tariff in
The United States was based on the
theory that a moderate duty should
be maintained on imported goods I'M
til such time as home industries !
could be thoroughly established, and
able to take care Of themselves in
competition with foreign manufac-
lures. The original protectionists were
willing to have the duties removed
when that time arrived. This may be
called the infant industry theory.
After becoming intrenched behind
the barrier Of q protective tariff and
enjoying the benefits of the special
privilege thus accorded, protected
manufacturers evolved the theory that
a permanent tariff should be main
tanned in the interest Of the American
laboring man. because Of the higher
wages paid to him than to foreign Ia
borers. This wal the wages theory
of protection.
When by comparative statistics It
was shown that the labor cost per
unit of product was no higher in
America than in Europe, because of
the superior ability Of the American
laborlng man and the more effective
organization Of American industry,
another point Of view became neces-
sary to justify the protective system,
and the theory was promulgated that
1t really made no difference how high
the tariff might be. even to the point
of the absolute exclusion of foreign
goods, because competition between
the rapidly developing American
manufacturers would keep prices down
to a reasonable level.
There came the era Of trusts and
combinations to sustain prices, and
the purchasers Of American manufac
tured products realized that they were
at the mercy Of the protected indus
tries.
This aspect of the problem was thu
real cause Of the widespread demand
for a downward revision of the tariff
that, in recent years. has agitatet
those members of the Republican par
ty who are not direct beneficiarles o
the tariff but who have been SINGER
advocates Of protection because the,
believe that 1t benefited the countr.
as Q whole.
Outside of the ranks Of direct benz
fciaries Of protection. who are fgh'
ing to maintain the special privilege
they enjoy. practically the entire RI
publican party has now settled BAG
to the theory that the protective tn,
id should be only sufficient to NAL
up the difference between the cost I
production abroad and at home.
Necessarily. q ~corrollary Of this tn
ory is that no protection is needle
against the products Of q country ]
which conditions Of production al
similar to those Of the United States
On this ground President Taft is Il
sisting that the reciprocity agreeme:
between this country and Canada
Just and should be adopted.
This marks an advance step whie
means the ultimate downfall of IL
whole protective system. because u
prejudicial investigation will demo
strate that in most Industries the va
resources. the enormous home marke
the inventive genius. and the capaci
for organization in America make
possible to produce cOmmoditi'
cheaper in this country than abroa
even with higher daily wages and
higher scale Of living for American
borers than for those Of Europe.
This view Of the problem Is fro
the standpoint Of the d~isinterested al
sincere protectionist, and takes no
count of the broader view Of the o,
and-out free trader, whose contenti'
Ia that Unrestricted commerce resul
In each nation and each communi
devoting its energies to those indl
tries for which 1t is best fitted, a
! thus develops industries along natul
' lines, giving equal opportunities to g
: and special privileges to none.-Ks
sas City Star.