The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-03-21


Silt seems 10 hc tho accepted
opinion OF tbs leaders Of both ,hc
Democratic and Republican, parties tlnt
me true measure of tariff To be- i'm
posed unon Imports Into this country
cohlpctinE with home manufactures il
the difference In the cost OF produc-
ton here and abroad" Their is in this
resumption, 10 my mind, a concealed
lhllacy that renders It obnoxious to
the crccds of both parties 1t is not
Democratic, as 1t furnishes degree
OF projections 1t is not Republican
10y while ii furnishes protection 81
furnishes It to the wrong rnnn-to tho
iore!sn manufacturer. This is absurd
rms may best be seen by means Of an
Illustration.
Take two suits Of clothes OF equal n
trinsic value one made in America. OF
Anne rican grown wool. by American
W"rkmcn. the other made In ENGLAND
OF English grown wool. by English
Worknen Tho cost OF production OF
t11S American made suit, VII say. IS
SIS. The cost OF the English made
SUIT Sl2 The difference in cost oi
production would be so. This would
he the tariff imposed on the English
production. Each manufactures would
be entitled to a reasonable profit on
cost OF Production say 30 p,r cent
This would give tho American manu-
lecturers $3.50 profit and The English
manufacturers $3.50 pront. That the
eye may aid the mind In comprehcnd-
Ing the matter. / VIII tabulnte these
american suit-cost OF production
tacstur:rS selling priec, S2l6o.
English suit, 'oSr OF production
sl2: difference in COS, UariG) SO; 20
per cent. profit S9IOt manufacturers
selling price. S20.4o
nov whieh Of these suits would tho
suit ct $2lS0 or the English suit at
S20io?
70 ask the question is 10 answer it
Tic would buy the cheaper English
suit every time, and thereby say $i.20
the difference in price. 1t seems owl
dent to me. therefore, that tariff
equal 70 tbs difference in tho cost OF
production at homo ana abroad dis
eliminates against the American pro-
duccr 10 the extent of $l.2O. and 10
that extent gives the English manu-
Lacturer protection. TO meet this con
d!tion the American manufactures
would nave to sell at about - per cent
proht on cost Of production while the
English manufactures could soil at a
profit of 20 per cent. on cost of pro-.
duct!on, ana no innttcr What the diff
ference is, the advantage viii always
be TO the foreigner HOW long could
orr home manufacturers stand a com
petition like this? In less than cigh-
teen months all OF us would probably
nc wearing English suits. Our manu-
facinrers in this Industry would have
to close down. and their thousands Of
employees he without JOB Now u
protective policy will reverse All these
conditions 1t will put the $l.2O
against us as above stated, on The 9TH
or foot--on the English manufactured
It will thus keep our factories going
and give their employees Il job at high
wages. This il will do by raising the
tariff. as VIII he seen nv the follow
ing illustration:
Using the same formula as b fore. eN-
ccpt raising the percentage of tariff
from 80 per cent. 10 40 per cent, we
Ia - "a IA ID
English suit--Cost of productions,
s12: 20 per cent on cost ttarifD, SS.40;
20 per cent profit on cost. $40; sell
American suit--Cost OF production.
SIS: 90 per cent profit on cost, $3.50
selling price, S2l.G0.
made suit $40. i'his shows i imat the The
English made suit cant he sold ana
realize 90 per cent profit for less than
$3.50, which the American made suit
can be sold for S2l.Go and realize -
profit Of 20 per cent. on cost. Now II
the foreign manufacturers VIII COM
pate with the home made suit. he must
cut his profits onc-half, Sl20 which
would make it losing business. And
what is Il little remarkable about T. is
this: That increasing the taE+m does
not increase the cost to consumer if
he buys American made goods. it sim
ply preserves TO thu home manufacturer
The reasonable profit OF 20 per cent. or
cost of production, which lower tariff
took away from him tScc former
statcmenO. Now take another view
which shows the glaring absurdty Of
indiscriminatcly lowering the tariff
may lead to. Instead of Increasing tho
tariff from 80 per cent. to 40 per cent.
as in tho above statement. we will
arbitrarily reduce j. from 80 per cent.
to go per cent, and we have this re-
suit:
English sut--cost of production.
| Sl2; 30 per cent. on cost (tarin), $500:
! 90 per cent. profit, $40; selling price,
SIS.
| SIS. nrofits nothing; selling M ,osi
| SIS.
How could tho American manufac-
] tmrcr run his bnainesS on bnsis like