Evening journal. [volume] (Wilmington, Del.) 1888-1932, 1915-09-16
SALES OF PRODUCTS ABROAD GIVE EMPLOYMENT
TO AMERICAN LABOR

GkTENHE reason why domestic manufacturers should
market their products abroad occaseeally at a
price somewhat less than the cost of manufac
turing. seems absolutely beyond the mental grasp Of
the average Democrat" said prominent authority on
foreign trade recently when the present Secre
tary Of Commerce. Mr. Redheld was in Congress dur
ing the discussion Of the so-caled popgun tariff bills
introduced by Mr. Underwood for the purpose Of re-
cording the veto Of then President Taft he led the
attack this feature price reduction this atti-
tude Of the Democracy crystalized in the Bati-
more platform, which declared among other things,
that articles entering into competition with articles
Of American manufacture which sold abroad more
cheapy than at home should be put the free list"
The only time this selling policy is adopted in this
country is when surplus is produced which not
be marketed at home in which case It may be sold
abroad at whatever price be obtained for it and
thus labor and capital kept employed, though
there is cut in profits. But in Germany this dump
ing policy is a regular part of the German campaign
to sell products at dumping" prices in order not
merely to get rid of lots surplus stocks but,
broadly TO keep their factories running at 100 per
cent efficiency thus reducing the unit cost mini
mum While England is the pioneer in this dumping"
movement, Germany is today It's chief exponent The
handicap to domestic factories employing American
workmen by Of difference Of cost elimination
Of all profits and often inferior quality of the foreign
article must be experienced to be appreciated
AS concrete example Of how cut price sale OF
plus American stocks would work to our advantage,
take the manufacture shoes-the average profit on
which all the factories the United States is from
to eight cents pair when running at full ca
pacy Now the manufacturer his factory at full
capacity hreef ourths of the time and shut down one
fourth the time. his profit would be cents pair;
but if he OF his output at full price
and the rest at cost abroad, he would make cents
pair on his total output If he manufacturers 1OO0,-
600 pairs of shoes year when running at full ca
pacy running profits for the year at cents would
be $50 O0O If he full capacity, but sold onefourth
his product at cost his profit would be 100000 But II
he ran three-fourths OF the time full capacity and
shut down factory one-ouyth of the time his profit
would be s225OO Le cents 10000 pairs Of shoes.
Il is plain to be SEEM therefore that he could afford
TO run his factory at full capacity selling one-fourth
of the output at loss of Is cents pair, and still
come out at the end of the year with the same net
prodt that he would get n he ran his factory three
fourhs of the time at its full capacity and shut down
for the remainder of the year, to say nothing of the
fact that he would keep his labor organization together
and on the payroll and his capital employed In addi-
ton to that where gets into foreign market with
his product he makes just that much progress in emi-
mating foreign competitors
But the trade restrictions which inevitably accom-
panv Democratic administration result in the Amer
lean manufacturer fighting a losing battle to retain
his own home market The extent to which that home
market Is lost when the prohibitions of war do not in
tervene is a matter of common knowledge to ever,
student OF import statistics under freerade or tariff
for-revenue law Once peace is declared abroad Ger
many from the ramparts Of her high tariff wall vii
lombard us with great masses OF manufactured pro
ducts now acoumulatng within her boundaues. sh
win take her pay in raw materials with which TO con
time her trade war upon us. No Democratic admins
tration can meet that situation consistently with III
past record