Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1913-01-27
BRYAN REPLIES
TO TARIFF QUIZ
Explodes Some Tariff fallacies
Propounded by the Bos-
ton Transcript
CAN LOWER LIVING COAT
Lowering of Tariff Would
Not Necessarily Result
In Lower Wages
CAN LOWER LIVING COAT

The following questions We're re-
Gently submitted to W. J. Bryan by
a representative of the Boston Trans
script. The answers will be found
following the questions.
First. The possibility of lowering
the cost of living by tariff reduction.
Answer. Tariff reduction can low
er the cost of living to the extent
that tariff duties have increased that
cost. Where the price level in this
country is, through the operation of
tariff duties, raised above the price
level in other countries, it can be
reduced by reducing the tariff.
Second. The possibility that low
cred cost of commodities would be
followed by lower wages.
Answer. A lowering of wages
would not necessarily follow a lower
ing of the tariff. Wages do not de-
pend upon the tariff but upon COM
petition between wages earners. A
reduction in the prices of the pro-
duct would naturally increase the de-
mand, and an increase in demand
would increase the number of EN-
ployes necessary to produce the larg.
er quantity demanded, and thus the
tendency would be to increase wages
rather than to lower them. The pro.
tectiOnlsts have for generation
threatened reduction in wages if
the tariff is reduced, but the threat
does not rest upon an economic basis
and it is evident that it has failed
this year to make the impression that
1t has in former campaigns.
Third. The possibility that there
might then be the same discrepancy
between wages and cost of living.
Answer. This question is hypothet-
ical and it is answered in the answer
to the second question
Fourth. The possibility that tar
if reduction would entail new taxa
ton for revenue which would bear
just as heavily. y
Answer. This question seems to
assume that reduction in taxation
would not result in greater revenue
1t is not only possible. but probable
that a. reduction in the tariff would
increase the revenue by increasing
the imports and at the same time in
crease the demand for labor by in
creasing the domestic output Where
the tariff is prohibitory it may re-
suit in placing a heavy burden upon
the consumer without yielding an
revenue at all. 1t is common mis-
take of prOtectiOnists to measure the
burden borne by the consumer by
the amount of the taxes collected,
whereas the people may pay to the
protected interests many times the
amount that reaches the treasury. IT,
for instance, we import one-tenth as
much of given article as we con-
sumo and the domestic industry col
lects approximately the full amount
of the tariff. the burden upon the
people is ten times as great as the
amount received by the government
in revenue. In such a case reduc
ton in the tariff might double the
revenue and at the same time COM
pei such reduction in the price Of
the domestic article as to greatly in
crease the demand and thus aid the
consumer and the laborer.
The fourth question permits of an
additional answer, namely, that no
new form of taxation would be like
ly to bear as heavily upon the masses
as tariff taxation, for there is no
other form that bears more unequally
upon the public. 1t would be diff
cult, therefore, to find a new system
which would not be more just to the
masses than the tax on consumption
which they have so long borne-a
system under which the poor man
pays more than his share, and the
rich man less than his share.