The Washington herald., 1913-11-08
SATURDAY, NOVEMBER 5, 1919
Mr.. Charlie. M. Sehw.b on the Tariff.

Charles NJ. Schwab learned IN his
recent two weeks visit to Europe
enough to convince him that good
deal of industrial and trade reaction
now prevails upon the Continent,
and especially in Germany. This
depression he believes is not momen-
tary, but will continue throughout the
winter. 1t will inevitably, if his iudg-
ment be correct, be followed by con-
stantly decreasing prices for COM
? modities. Therefore he deems it the
better part to wait until he can take
advantage of these lower prices when
making contracts for the vessels with
which he proposes establishing feet
whereby the iron ores mined at Chile
and possessed by himself and. his as
sociates can be transported through
the Panama Canal to the United
States.
The note of regret that business
should be so poor which sounded in
Mr.. Schwab's statement is the feature
of the remarks made by him just as
he landed which has been caught up
and studied all over the country. And
yet in this statement there is some
thing of especial significance to those
who are trying to forecast the probable
2 effects upon American industry of the
new tariff law.
Were business in Germany especially
in the iron and steel industries 10 be
excellent, so great that the plants were
occupied to their capacities in filling
orders, but little heed would be paid
; at present by the German manufac-
turers to the new American tariff. For
as long as Germany can market, at
excellent prices, her from and steel
output, she is certain not to seek any
place where she can dispose of her
commodities because of the low price
she might put upon them.
But if Schwab has not been led astray
by those things he saw and learned in
MS lNO MSShS NlSll llSl SOuOItiOlI9
in Germany strongly favor early seek
ing of American markets by German
manufacturers. In order to command
our markets the prices charged for
Germany's iron and steel commodities
must be very low-for there is al
ways the ocean freight charges, insur-
ance and interest charges to be con-
sidered in figuring upon the cost of
articles exported from Germany or
any other foreign nation to the United
States
Such business prostration as Mr..
Schwab says prevails in Germany un-
doubtedly will influence the German
manufacturers to bring their products
to the American markets.
The high authorities in the iron and
steel trade are convinced that Ger
many may enter speedily into strong
competition with American steel and
iron manufacturers. There are other
factors, however, than low prices for
commodities which consumers will in |
evitably study before making up their
minds whether they will do well to
buy of Germany or of the United
States.
In the long run, after the new tariff
has become fairly well adjusted to
American business life, the chances are
that the American manufacturers of
iron and steel products will be COM
PEELED to accept smaller profits than
they have at any time in the past, ex-
cepting> in seasons of great depression.
But not until there has been a thor
ough test will the ability of the new
tariff to reduce prices of iron and
steel commodities to the ultimate con-
sumers be determined.