Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1919-03-28
Up co THE TARIFF WALLS:
WE MUST FOLLOW SUIT
American Wages and Industries Can Be
Saved From Foreign Attack Only BY
Revision of the Underwo ood Schedules

Saved From Foreign Attack Only BY
Revision of the Underwo ood Schedules
WE HAVE been so busy thinking
w about a number of other matters
since August, 1914, that most of US have
forgotten that there is such a thing as
the Underwood tariff law.
But when peace shall finally be estab-
lished and the European countries begin
to offer their products for sale every
wage-earner and every manufacturer in
this country will have the weakness Of
the present tariff law forced upon his
, attention.
No sooner had the law been passed in
1913 than the imports began to increase
and the exports to decrease. Of course,
the revenue fell off. but the demoraliza-
tion of industry which had begun was
more serious than the reduction in the
national income.
We were told by the Democrats that
our exports were but small proportion
of our national production and our i'm
ports but a small part of the national
consumption. and an attempt was made
| to persuade the people that foreign
trade. anyway. was hardly worth consid-
oring. 1t was more important, they said,
that the consumer should get the benefit
Of low-cost foreign goods than that the
home producer should be protected in
| the home market.
Fortunately, these Democrats will not
! have charge of the framing of tariff
! law to displace the one now in force. 1t
will be framed by men who believe in
the protective policy.
There never was a time in the history
| of the country when the need for pro-
tective tariff law was more imperative
than now. European countries have
already put an embargo on the importa-
! tion Of foreign goods of many kinds.
! They have had to do it because they have
bought so much abroad that they no
! longer have money conveniently avail
able to pay for more The war made
! them buyers instead of sellers. The war
counteracted the defects of the Under
wood tariff and saved American trade
| from ruin.
How abnormal present conditions are
| is illustrated by the fact that our eX-
ports in January Of the current year
amounted to $623 100000 and our i'm
ports were only S2l3.OOO,000. There was
balance of S41O,OOOOOO in our favor,
or a sum so great that if it were kept
up for twelve months it would give us
a favorable balance of nearly $5.0O0,00O,-
600. Foreign exchange would break
down in an attempt to adjust istef to
| such an enormous burden. This sort of
thing cannot continue.
France and England have decided to
produce at home eeerything that they
can possibly make for their own con-
sumption. Mr.. Schwab, who has re-
Gently returned from Europe, reports
| that there will be virtually no foreign
market for structural steel, as all which
will be needed for reconstruction work is
to be produced in England, France and
Belgium. The European countries have
decided that work must be provided for
the idle and that the money paid out for
the restoration of the devastated coun-
tries must be kept at home.
What is true of steel is true of scores
of other manufactured products. Not
only must these countries keep their
money at home, but they must manufac-
ture for export as much as possible in
order that they may be able to pay the
interest on the war loans held abroad.
Ten billion dollars of these loans are
held in the United States. The interest
must be paid in goods, and sound inter-
national finance requires that the prin-
cipal shall be paid in the same way.
France has a protective tariff. That
will be continued, and doubtless the rates
will be raised in order to prevent the
flooding of her markets with foreign
goods.
Great Britain. which has been free
trade country for many generations. is
on the eve of adopting the protective
policy. Mr.. Bonar Law, the Chancellor
of the Exchequer, has already announced
in Parliament that the government is
planning an imperial preferential tariff
The most vital vested interest in the
kingdom, he said, is high wages. Some
thing must be done to prevent the sale
in British markets of japanese cotton
goods at price lower than the British
textile manufacturer has to pay for the
raw cotton. The cotton manufacturer
must be protected. He said, further
that a preferential tariff on sugar would
develop the empires sugar industry
The British colonies should have the first
claim on the British markets, according
to him, not only for the sake Of develop
ing industry under British control, but
as a Just recognition of and reward fol-