The Leon reporter. (Leon, Iowa) 1887-1930, 1914-03-05
THE PROOF OF THE PUDDING.

| THE PROOF OF THE PUDDING.
When events themselves emerge,
the prophecies of those events be-
come interesting solely as measures
of the trustw orthiness of the proph-
cts. When the Underwood tariff bill
went into effect, republican prophec-
les of commercial disaster and indus
trial ruin numbered the records.
Those prophecies, today, are OF inter-
est wholly for the lurid light they
cast on republican foresight. 1t is
not necessary to attempt to recall
those gloomy forecasts in detail.
Briefly, if the new tariff reduced the
high cost of food, it, could only do it
at the expense of the American farm
err. And the lowering of the tariff
on manufactured goods was bound to
flood our country with the products
of the pauper labor of Europe
What has happened? The unan-
swerable rejoinder of the event itself
was summarized by Secretary Red
! field in his Wheeling speech on Mon
day evening.
The month Of December, 1918, saw
the largest imports in the history OF
| the nation. AT first glance this seems
| to be what our republican friends
anticipated But when we look at the
detailed statement we find that the
| increase was wholly in the importa-
ton OF foodstuffs and raw materials
| for manufacturing.
| The increase in importations OF
raw materials was inevitable, IN
view of the general expansion of our
manufact urers. For example, take
rubber. No crude rubber is produc-
ed in the United States. The more
our rubber manufacturers expand the
r.orc our imports Of crude raw ma
terials will expand. The same thing
applies to ivory, to skins OF many
kinds, and to a whole range OF ma
terals used in manufacturing not
produced in this climate or on this
| continent. AS domestic trade and
| manufacture for foreign export in
crease, our importations OF such
| crude materials must increase in con-
sequence.
The increase in importations OF
food materials in December is due to
three causes; one economic, one leg
islative and one temporary. The first
| is the fact that growth in population
increases demand at home for food
materials which we cannot produce.
Tea, Coffee and tropical fruits are
conspicuous examples. The second
cause is the lessening of tariff taxa
ton on food, and it's operation is
| most clearly understood when taken
| in connection with the third cause
the partial failure of the American
corn crop last summer. There have
been heavy importa tons of Argen-
tine corn and meat. The price OF
| beef in New York at retail has gone
down 9 cents in consequence.
This has not hurt the farmer. He
| is still getting high prices for his
meat. And it has been a precious
boon to the consumer.
| We turn aside for moment to re-
mark that this means gain all
round. If there is one thing writ
ten clearly on the pages of economic
history, it is the fact that prices that
are too high tend to restrict consump-
ton, and so react against the real
interests of the producers. The high
cost of living that diminishes the
consuming power of millions in
creases the price of the articles pro-
duced by those millions and reacts
against the prosperity of the farmer
and stock raiser. Moderate prices,
well maintained, are best for every
part of the economic world. Some
three years ago, the Republic point
ed out at the time, this fact was inn
pressively illustrated in the Ameri-
can potato market. A partial failure
of the crop occurred. Later in the
season local stocks were exhausted
| 81, ~1,o
did not benefit the farmer, for the
surplus stock was all in the hands OF
the dealers The potato tariff, usual
| ly altogether imperative. like dam
! that is wholly overlooked except at
extreme low water, came into action
| to prevent importations. Result:
the consumer paid moro for potatoes
to eat; the farmer paid more for po-
tatoes for seed; living conditions
| were made harder for everybody; no.
body protited except the middlemen.
This by the way.
But what happened to our manu-
facturers in December, in view of the
awful menace of the 'pauper labor
of Europe?" Why, this: an actual
decrease in importations of manufac-
tured goods, as compared with the
month-October. 1912-most nearly
approximating DEFENDERS figures,
under the Payne-Alarich law.
Since the new tariff went into eff
feet we are
Importing more foodstuffs.
importing more raw materials for
use in manufacturing.
Importing relatively less finished
manufactures.
Exporting more manufactured
goods.
The proof of the low tariff pud-
ding, friends, is in the eating, and
we have now arrived at the eating
stage.-St. Louis Republic.