The Leon reporter. (Leon, Iowa) 1887-1930, 1913-05-15
DON'T EXPECT "A TOO SUDDEN
CHANGE. ..... g..

Chairman Underwood, who is in
charge of the tariff reform bill, has
sent out warning which is not only
timely, but opportune, for it will pre-
vent those standpat republicans,
whose sole aim and desire is to deal
a blow to the democratic party, no
matter If it hurts the common people,
from making some political capital.
In his statement, Chairman Under
wood gave 1t as his opinion that it
will be year at least before the
country will experience what bene-
fits may be expected to come from
the reduction in duties AS to very
few commodities-suga for instance
Mr.. Underwood said he expected a
speedy reduction in prices. But for
the reduction in general to work
themselves out, will, as Mr.. Under
wood said, take time. The stocks of
goods now in the hands of retailers,
as we'll as in the hands of manufac-
turers and jobbers, may be expected
to be closed out at prices fixed under
the present tariff rates. AS to wool
EN- and cotton goods, Mr.. Underwood
said that he expected to see a grad
ual reduction brought about.
The tariff is in process Of reduc-
ton from protective to a competi-
tive basis Under the present sys-
TEN favored manufacturers are not
required to sell in competitive
market They can, by agreement,
merger or other device, fix prices
practically to suit themselves while
the protective tariff shuts out the
foreign competition which otherwise
would serve to keep prices at fair
and reasonable level. Under the new
systenl-which President Wilson and
Mr.. Underwood term the competitive
tariff plan--the rates are made suf- |
low to put the home manu-
facturers on their mettle and oblige !
them to deal fairly with the people. |
If they plot to reap extortionate pro-
fits the new tariff will be sufficiently |
low to enable foreign-made goods to |
be brought in and sold at profit !
The spur of this potential foreign |
is what is depended up
on to lower prices.
But just here, it seems, comes in a |
new and unlocked for element which |
will tend, for the next year or two to
keep present prices steady. The Eu-
ropean buying market is bouyant as
it has not been for many years. The
demand is almost unprecedently con-
slant and strong and the tendency of |
prices is, in consequence, upward.
The European mills are working full !
time, the expectations of American
into Europe is in
creasing, and still there is trouble
supplying the demand
Plainly, this situation interposes
an obstacle to an early and marked
reduction in prices in the United |
States following the passage of the |
Underwood bill. Europe has no great |
surplus stock of goods with which to |
flood our market. Europe is sharp |
put to it to meet her own demands. |
This means that the spur of possible |
European competition will be dulled, |
for the time being, end that the |
downward tendency of prices that
had been built up by the protective |
tariff will be very moderate in the |
beginning. American manufacturers
appear to have sensed the situa ton, |
since they continue working their |
mills to capacity to turn our pro-
ducts to meet the present demand, |
instead of waiting for cheaper raw |
materials as they would if they ex-
pected an early and sharp reduction
in prices.
The patient American consumer
will do we'll to take notice and gov
ern himself accordingly. The reduc-
ton in tariff will unquestionably |
tend to reduce prices of over-protect-
ed goods, and, in the long run, the
reduction will be considerable. But |
it will not be done at once, or in a
few weeks or a few months. The
buyer today may rest fairly we'll as
sured that what he buys now will be
used up before he gets any
chances to buy much cheaper.-St |
Joe Observer