The Clarksburg telegram. [volume] (Clarksburg, W. Va.) 1874-1926, 1912-10-31
Exploded Again.


The following question and its an
swer are taken from tariff
primer" in the Baltimore Sun:
How does the protective tariff
increase prices?
by enabling the American manu-
iacturer or producer to charge prac-
tically as much more for his product
as the tariff tax in addition to the
price OF the foreign product"
This mistaken theory has been
exploded SO often tina; 1t seems al
most superRuous to explode it again,
yet so many confusing and fallacious
tariff arguments are being put forth
by Democratic hack writers that an
other puncture OF this favorite one
is not out OF place at this time.
One does not have to plunge very
far into the depths OF logic in order
to ascertain that it is absolutely i'm
possible for manufacturers of prod
ucts that are protected by the tariff
to add the amount Of the tariff rate
to the selling prices of their
products. Suppose, for example, a
certain little article that re-
tails in this country for %
+, cents costs % cents to be manu-
featured in this country and is cents
10 be manufactured in England.
Such cost difference should be
made because it is notorious fact
that labor is cheaper abroad than it
is in this country We shall ma
turally assume that both the Ameri-
can and the English manufacturer
want to make n reasonable profit in
the goods they make and sell, so we
shall add, say, two cents to the cost
of the article, which would bring
the selling price OF it up 10 % cents
in America and 30 cents i'll England.
in order to Offset or equaiize this
cost difference, we shall, for exam
pie, apply a tariff duty OF five cents
on the English article.
Now, according to the Democratic
charge, the American manufacturer
ADDS this five cents tariff duty to
the selling price OF his own article.
That would bring the selling price
OF the American product up to 80
cents. But, this will not work. Just
rs soon as the American manufac-
turer does this, the English manu-
facturer, who can turn out his goods
for 20 cents in England, will pay his
i've cents tariff duty and invade the
American market with the same arti-
clio at % cents. How long could
American manufacturers sell their
price-inhated products at so cents
while the English manufacturer Of
fered the same thing at % cents?
1t can be plainly seen now that the
Democratic charge is groundless.
The American manufacturer VIII
have to meet his English competi-
ton with selling price of LOWER
than Is cents in order to capture the
business. Hence, in order to pro-
tect American work and Amer
lean wages adequately, it will
be necessary to make the tariff rate
on this article Just little bit more
than the <actual first cost difference
in order to prevent foreign inva-
sion of this particular market. IL
both the English and American
manufacturer can offer the same
article at exactly the same price,
both would be exactly upon the same
plane and there would be no protec-
tion OF American industry whatever.
That is as plain as day. The object
of the protective tariff is to create
and build mp a home market, in
crease and diversity American in
dustries in the face OF the cheaper
labor of foreign countries. A cent,
for instance, should he added to the
tariff duty, making the English price
OF the article &c cents in this coun-
try, whore it is contemplated the ar
ticle is to be sold. The American
manufacturer cannot raise the price
of his product that extra cent be-
cause the minute he does so English
competition sweeps in upon him and
he Is commemorative compelled Ia sell
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