Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1916-11-30
Democrats Yielding on Tariff

Democrats Yielding on Tariff
Near the close of the recent political
campaign, the chief OF the bureau OF
foreign and domestic commerce, OF the
Department of Commerce, practically
admitted what the Republicans had
been asserting for more than a year
that the United States can not hope
under the present tariff law to. main
tain the trade with South America we
nave won since the war began.
Republicans have consistently con-
tended that South America had begun
buying from us merely because she
could not obtain the goods she needed
from Europe. and that her sales TO
us we're largely a continuance of the
increased .ales which began when our
tariff wall was torn down in 1918. For
political effect. the Department Of
Commerce had been parading our
growing trade with South America and
giving the impression that this trade
had been acquired as a result of the
domestic commerce. AS matter of
fact, increased purchases from us!
were due entirely to inability to buy
in Europe, and increased sales to us
were made possible by reduction of
tariff duties. We purchased from South
America some raw materials that we
needed in manufacturing war orders.
The admission made by the bureau Of
foreign and domestic commerce is con-
tanned In the assertion that what we
need is a bargaining tariff" A bar
gaining tariff is nothing more nor less
than a protective tariff which may be
somewhat reduced on some commod-
tiles in exchange for similar conces-
sIons from other countries on other
commodities. After the close of the
war, South America will buy where
she can buy the cheapest just as she
has done in the past. Upon the ter
mination of the war, when European
ships are no longer needed for the
transportation of munitions and SOL
diers. and when the interned German
merchantmen are released, the usual
lines OF transportation between Eu-
rope and South America will be re-
stored. and South America will begin
again buying the manufactured prod
ucts Of the cheap labor Of Europe. We
shall lose not only our war order trade
but a large portion of our market il.
South America.
The two successful trips of the SUBJ
marine merchantmen Deutschland
have been sufficient to demonstrate in
a very spectacular manner what will
happen in the way of importation after
the war Is over. On her second trip.
the Deutschland brought securities
worth 100000 and a cargo OF goods
worth 100000. She did that under
the most adverse circumstances that
could be imagined. When million
dollar cargo Of goods can be hrouyb+
mere under such circumstances and
soid Ill our markets, there can he M
possible doubt that when the war i.
over, German producers will he reoa,.
ana able to sell their products in our
markets in competition with our own
producers. unless restricted by the re-
establishment of a protective tariff.
Every million dollar cargo of foreign
goods sold here means curtailment Of
our own production. With every reduc.
tion or the quantity of output, will go
corresponding increase in the INIT
cost OF production, so that the Amer.
can manufacturer will be at dis.d
vantage in selling his goods in South
America in competition with the Ell.
ropean manufacturer.
While protective tariff is prima rily
designed to restrict imports. it has the
indirect effect of encourag cling exports
because it enables the American nro-
Queer to operate his factory at fun
capacity and produce his commodities
at relatively lower cost Operatine
at less than full capacity. he cannot
afford to sell his commodities at a price
which will successfully compete with
the manufacturer who pays lower
wages in Europe and Asia.
Whatever one chooses to call it, eth.
err IA protective tariff or bargaining
tariff, it is evident that we shall need
some adequate tariff legislation to Sc