Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1914-07-02
ESTABLISHED 1925.
Thursday, July 2, 1914.
The Why and the Wherefore.

and comprehensive plan for the pres
ervation of Germany industry and Tor
the conservation of Germany prosper
ity Ions before possibilities in that di-
rection were even suspected by the
American low-tariff advocates.
The German plan is nothing more
than the idea that German factories
should be kept busy all the time ana
that il is not a crime for manutac-
turers to dump their surplus stocks
in any part of the world that offers
an inviting market AS concrete
example. there is the matter of cut
lerv. In one small German manu-
featuring town certain manufac-
turer has an establishment which has
a nominal capacity calling for the
employment of a thousand men. The
factory can make money on TINS oasis
but it cannot find market for a sur
plus at money-m making prices. Here
is where the intelligent German pol
lev comes in. The thousand German
workmen may earn say 50 day each.
By adding another thousand to the
plant it would mean that this small
manufacturing town would have Just
$4,000 a day more to distribute among
its merchants.
To add that extra thousand men
means that half of the factory's prod
duct must be sold at very low prices
practically at cost. The manufacturer
is not concerned in adding to his
business cares and investing adol-
tional capital to do 100 per cent more
business without profit. But the Ger
man government sees to 1t that
market is created abroad for this sur
Mus: and while the manufacturer is
obliged TO sell in this new market at
cost, he is creating a new demand for
German knives, and in the future he
will profit by that market.
German knives are sold in the
United States cheaper than they are
sold in Germany, but thousands OF
worknen are kept in employment IN
Germany by reason of that tact. Ana
this policy, extending throughout
Gernany's industrial line, brings
millions and millions of dollars to the
Fatherland every year and keeps up
national prosperity-Utica SATURDAY
Globe.
The above may assist in under
standing some things at the present
time, but it does not make plain to the
average citizen why-with the United
States reaping all the penalties or
depressed industries, idle millions, and
a flood of cheap imports-consumers
are getting none of the benefits in
lower prices.
1t is a good business proposition for
German industries to keep help en-
ployed even If the surplus has TO be
disposed of at cost or less, because
they are widening their market and
bringing more money into their coun-
try and communities. Would that
some American industries could find
market at cost for their product at
home or abroad, for the sake of their
laborers.
A letter from Washington reads
That the Democratic tariff is tearing
UP the American boot and shoe indus
try is shown by the official figures
from administrative bureaus of the
government. Under the Democratic
tariff law, foreign made shoes are be-
ing sold in the very shadow of the
Capitol of the United States. Since
the Underwood tariff law placed all
boots and shoes on the free list, for
eign-made footwear has been flowing
into the United States at steadily
increasing rate.
The Underwood law has not been
f,,II vet
the importations of boots and shoes
for the first seven months it was in
effect almost equalled the total i'm
portations for the entire year OF 1913
1t looks as though the first year OF
the Democratic tariff law would bring
twice the amount of foreign made
boots and shoes into this country than
were imported the whole of last year
under the Republican tariff law.
These statements are based on fig
ures which Representative John j
Esch, of Wisconsin, has just secured
from the Director of the Census, and
the Bureau of Foreign and Domestic
Commerce Mr.. Esch has just given
these figures out for the first time. He
says: THE United States is the lead
ing manufacturer of footwear in the
world and it's total output is valued a.
over $500, 900, 600, annually, giving EN-
ployrnent TO a quarter of a million
people. While it is true that the i'm
portation compared with our total de-
nestle output is relatively small, thu
increase in the importations since ths
new law went into effect is relativel,
large and is significant in that
shows that, with each months opera
ton of the new law, there will be al
Increased displacement of American
made goods, with consequent less
ened demand for American labor.
"No one will deny that our Ameri
can workmen ought TO have Furnished
the half million dollars worth of boot
and shoes which will be importe'
during the first year Of the new law
operation, especially when there ha
Teen no reduction in the cost to tn
American consumer.
with like purposes and effect as U
pther industries, the American hom
market will be broken down: unem
ployment will be increased; purchas
ing power diminished; stagnation i
business continues and even grow
worse. Truly, Democracy, SO far a
the tariff is concerned, has learne
.Gs-- l..,t the reouie must lear