Evening journal., 1916-11-27
MONDAY, NOVEMBER 27, 1916.
DEMOCRATS YIELDING ON TARIFF.

n yEAR the close of the recent political campaign,
IN the Chief the Bureau OF Foreign and Domestic
Commerce Of the Department OF Commerce, practically
admitted what Republicans had been asserting for
more than year-that the United States can not hope
under the present tar law to maintain the trade with
south America we have since the war began.
Republicans have consistently contended that South
America had begun buying from merely because she
could not obtain the goods she needed from Europe,
and that her sales 70 largely continuance OF
the increased sales which began when our tariff wall
was torn down in 1913. For political effect the De-
partment Of Commerce had been parading our grow
ing trade with South America and giving the impress
sion that this trade had been acquired as result OF
the efficiency OF the Bureau OF Foreign and Domestic
Commerce AS a matter OF fact. increased purchases
from us due entirely TO inability to buy in Eu
rope and increased sales 20 made possibly by
reduction Of tariff duties We purchased from South
America some raw materials that needed in manu-
featuring orders.
The admission made by the Bureau Of Foreign and
Domestic Commerce is contained in the assertion that
what we need is "a bargaining tariff" "A bargaining
tariff is nothing more nor less than protective tar
which may be somewhat reduced on some commodi-
ties in exchange for smaller concessions from other
countries on other commodities. After the close OF
the war South America will buy where she can buy
the cheapest lust as she has done in the past Upon
the termination OF the war. when European ships are
no longer needed the transportation OF munitions
and soldiers and when the interned German merchant
men are released the lines OF transportation be-
tween Europe and South America Will be restored and
south America viii begin again buying the manuiae-
tured products the cheap labor OF Europe We shall
lose not only order trade but n large portion
OF our market in South America.
The two successful trips Of the submarine mer-
ohantman Deutschland have been sufficient to demon
strate in 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 SsO00O00 and cargo OF goods worth $1,000
0O0 She did that under the most adverse circum-
stances that could be imagined. When million-doar
cargo goods be brought here under such crcum
stances and sold in our markets, there can be no
possible doubt that when the is over, German pro-
ducers will be ready and able to sell their products in
our markets in competition with producers,
unless restricted by the reestabshment OF protec
tive tariff
Every mon-dollar cargo OF foreign goods sold here
means curtailment OF our production. With every
reduction Of the quantity Of output will 90 cores
ponding increase in the unit cost OF production, so
that the American manufacturer will be at disadvan-
tage in selling his goods in South America in compe-
tton with the European manufacturer.
While protective tariff is primarily designed to
restrict imports the indirect eect Of encourag
ing exports 1t enables the American producer
to operate his factory full capacity and produce
HIS commodities at relatively lower cost Operating
az less full capacity, he cannot afford to sell his
commodities at a price which will successfully con
pete with the manufacturer who pays lower wages in
Europe and Asia
Whatever one chooses TO call it, either protective
tariff or bargaining tariff" it is evident that we
shall need some adequate tariff legislation 70 secure
us against industrial depression after the is over
unless we are willing to accept the European and As
attic standards OF wages and living