Manchester Democrat. [volume] (Manchester, Iowa) 1875-1930, 1912-09-25
LESSON s {: on TARIFF "A. / |: |
HOSIERY SCHEDULE SUPPLIES
CLEAR ILLUSTRATION OF ITS
PRACTICAL EFFECTS.
PROTECTION RATE TOO HIGH
Labor Cost Of Production In This
Country Little More Than In Eu-
rope Notwithstanding Differences
In Wages. 81

We have received the following ap-
peal for light on the tariff:
rs this the Democratic idea of the
tariff: That II the tariff is taken OF
hosiery the American product will be
,undersold by the German because it
can be produced cheaper in that coun-
try than 1t can in the United States?
Would this be true Of all things now
carrying tariff?" 81.
80 far as we are aware. the Demo
cratic party has never, made any dec
laration on hosiery, but we are glad
that item was specified. because 1t
Affords peculiarly clear and intelli-
gible illustration OF the practical ef-
feet of the tariff. Hosiery worth q
dollar dozen pairs in Germany is
taxed under our tariff 60 cents and Is
per cent. or Is cents. .Omitting
freight and commissions and incl
dental charges, this hosiery, then,
could be sold here for SITS a dozen.
The census bulletins show that in
hosiery the wages constitute about
one-fourth Of the value gof the prod
uct On domestic stockings worth
$1.75 a dozen, therefore, the total
labor cost would be about A cents.
The position Of the manufacturer,
then, is that where he pays "A cents
to his working people he gets 75cents
OF protection. The Democratic party
does, not believe that he needs any
such rate Of protection. The labor
cost Of production in this country is
little more than it is in Europe in
any line, and In many lines it Is much
less. In the last fiscal year we ex.
ported more than billion dollars
worth Of manufactured goods. In
July more than half Of the exports
we're manufactured goods. OF course,
II 1t cost more to produce manufactur.
ed goods here than in Europe we
could not export on any such scale
as this The employees in our machine
shops get better wages than the men
In foreign machine shops, and yet we
exported machinery to the value OF
SIZE, 100000 in the last fiscal year.
OF course. the Democratic party
does not believe that lowering duties
would close our mills and throw all
our people out OF employment. II it
did 1t would not advocate reducing
duties. The reports OF the tariff
board show. what students of eco.
nomics knew before, that the labor
cost Of production is often lowest
where wages are highest. There is a
book on the efficiency Of labor, or the
relative costs Of labor where wages
are high and where they are low, by
Jacob Schoenhoff. There is a volume
OF lectures on Work and Wages by
Lord Brassey, and another book ~
shim on similar subject. which OF
course, have no specific reference to
cur tariff. but are all the more val
liable for that reason. They are dis
cussions of the greater economy. OF
high-priced labor. Lord Brasseys ia
Their built railroads In every part OF
the world, and he found that 1t made
little difference in the cost Of con-
struction whether he paid shilling
in India. four shilllnss In France or
six shillings in, England; II there
were any difference the cost was low
est where the wages were highest.