La Junta tribune., 1916-05-20
SUGAR AND THE TARIFF.
by Bert spitlel.

me NEWS tDat sugar - huN ~
cents pound or So by the hundred
weight has set the protectionists and
free traders arguing the part the
tariff took in bringing about this
price.
The average person understands
about as much of the workings of
the tariff as he does of the workings
OF German submarine. Yet when
the tariff causes, or is charged with
causing. great fluctuations in the
price OF any commodity of extensive
use it is worth while to attempt to
unravel the tariff question which
has puzzled statesmen for years.
When the price of any commodity
on the tariff schedule rises. protec-
tionists and free traders begin to lay
OF the true cause of the rise. The
free trader thinks the article would
be cheaper II there We're no tariff
and the protectionist thinks il would
be cheaper II the tariff were higher.
The simple act OF reducing the
tariff would undoubtedly reduce the
price OF anything on the schedule for
time II there is likelihood of that
article being imported to sell for the
new price resulting from the reduc-
ton OF import duty. There is how
ever reflex action following the
lowering OF price which must be
taken into consideration. Suppose
that the production OF the article.
sugar for instance, were cheaper In
foreign country than In the United
States. II the tariff were taken off,
and the supply were large enough,
the American product would be driv-
en- from the market. causing the de-
struction OF the sugar industry In the
United States. Some people say. "All
right, II we can get sugar cheaper"
But the removal OF the American
product would change the relation
between supply and demand which
governs prices under competitive con
ditions. As result of the destruc-
ton OF American production. prices
would rise. because competition be-
tween foreign and native sugar would
be over and the foreigner would
practically have control of the mar
ket.
This would happen under competi-
tive conditions. but II the foreign
supply were under the control of a
monopoly. the price OF sugar could
be raised until II was just barely I'M
der that necessary to assure the re-
establishing of the American sugar
industry.
OF course the American factories
could be started II the price got too
high. but by the time congress had
manipulated the tariff to throw the
sugar business into foreign lands.
capitalists would have lost conf
dence In that body and would fear
w phi 'li'li TIE
which had already been destroyed.
Even II they should start again, the
relation between supply and demand
would be about the same ms before
the reduction of the tariff. causing
the new level OF prices. made pos
sible by the withdrawal OF the
American factories 10 be an impos-
sibiliiy now. The re-entrance OF the
capitalists into the sugar industry
would find the foreign industry
much stronger and as result OF its
former control OF the market and II
would be almost impossible to over
come that lead.
People have murmured consider
ably In the past because of the high
price OF sugar. claiming that with
out a protective tariff II would be
cheaper. Admitting that this would
be the case. the low prices would
surely cause the destruction OF the
American sugar industry. Perhaps
In time OF peace. imported sugar
would be cheaper, but in time OF war.
when importation is practically stop
ped. as II n at present. we would
have only native production to de-
pend upon. II factories had been
compelled to suspend operations be-
cause Of the turning Of the business
to foreigners. We would have only
limited supply and sugar instead OF
being 10 cents a pound might be
dollar pound. or impossible to buy
nj all. II must be remembered that
when an industry has been killed II
is not possible TO revive It quickly.
for much Of the capital formerly used
In that industry has become tied up
In other ventures.
The price OF sugar nj the prosont