Manchester Democrat. [volume] (Manchester, Iowa) 1875-1930, 1913-01-08
BRYAN ANSWERS CERTAIN TAR
a...,t LEE EAl ACIES

The following questions were sub
mitted to Mr.. Bryan by represen-
tative of the Boston Transcript. The
ans wers 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 re-
duced by reducing the tariff.
Second. The possibility that lower
ed cost Of commodities would be fol-
lowed 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 compe-
tition between wage earners. A re-
'duction in the prices of the product
would naturally increase the demand,
and an increase in demand would in
crease the number of employees neces-
sary to produce the large quantity
demanded, and thus the tendency
would be to increase wages rather
than to lower them. The protection
lists have for generation threatened
a reduction in wages if the tariff is
reduced, but the threat does not rest
upon an economic basis, and it Is evil
dent that it has failed this year to
make the impression that it has In
former campaigns.
Third. The possibility that there
might then be the same discrepancy
between wages and cost Of living. q
Answer. This question is hypo-
thetical and it is answered in The
answer to the second question
Fourth. The possibility. that tariff
reduction would entail new taxation
for revenue which would bear just as
heavily. ~ g@...l ,:%9
s Answer. This question seems to
assume that "a reduction in taxation
would not result in greater revenue. 1t
is not only possible, but probable that
a reduction in the tariff would in
crease 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 result
in placing a heavy burden upon the
consumer without yielding any rev.
nue. at all It is a common mistake
Of pro1ectiCnists to. measure the Dur
den borne by the consumer by the
amount Of the taxes collected, where
as the people may pay to the protect
ed Interests many times the amount
that reaches the treasury. IT., for IN
stance. we import orc tenth as much
of given article as we consume ana
the domestic industry collects approx
matcly the full amount Of the tariff,
lae burden upon the c1pie IS ten
times as great as the amount recelV-
ed by. the goverrHcn, in revenue. IN
such a case reduction in the tariff
might double the revenue and at the
same. time compel reduction IN ths
price of the domestic article as to
greatly increase 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 likely
10 bear as heavily upon the masses
IS tariff taxation, for there is no
,ther form that bears more unequals
lpon the public. 1t would be difficult
therefore, to find a new system whicI
would not be more just to the masses
han the tax on consumption whlch
,hey have so long borne-a system
,nder which the poor man pays more
han his share, and the rich man less
han his share.