Evening journal., 1920-05-06
TARIFF AND COST OF LIVING.

MH a~GUTzON B0RGLUM has issued pamphlet under
ia the auspices OF Committee OF Twelve in which
he the assertion that by policy OF protection
indirect taxaton) the Republicans gave America It's pres
commercial prominence and laid the foundation lor
the present charge callcd cost Of living lie further
declares that The Republican party created also our
trusisn themselves, valuable Institutions But II gave
them powers that today the very root of our unrest
and safely be held only by the nation
Il would be difficult for Mr.. Borgum to substan'aie
these statements by citation OF industrial facts or sas
Ties. II il true that policy Of "protecton i'u
foundation for the high cost Of living then the Demo-
cratic policy OF reduced tariff which put into enect
in October 1913 should have reduced the cost Of living
Statistics show, however that The wIlson-Underwood
Tariff Law had no such effect the cost Of living con-
tnued TO advance even before the world began IN
doubtedly the cost OF living is somewhat higher under
protectlon than under free trade But this difference
should always be kept in mind; under protection the
people Of the country have employment and are earns
wages with which to buy commodities. Under free trade
Americans purchase considerable quantity OF their sup
plies In foreign countries send their money abroad throw
workmen in their own country out Of employment and
deprive themselves OF the means with which to buy.
Low prices mean nothing to The man who is out OF a
lob Immediately following the enactment Of the under-
wood Tariff Law OF 1913 imports increased and our
exports decreased with the result that hundreds OF thou
sands OF men were discharged from mills that were either
Oioo'
The age-earnng capacity OF the nation was decreased
but there was no corresponding decrease in the cost oil
living Measured in terms OF the buying power OF day
labor there Is no justification whatever for Mr. Borgum
statement that the Republican policy Of protection lays
the foundation for a high cost Of living
Neither is true that the Republican party created
the trusts II that true then the Democratic tariff
laws OF 1891 and OF 1919 would have destroyed the trusts
The records will disclose however that although both
those tariff laws resulted In enormous increase In tn
number of bankruptcies the business failures chienl
those Of small industries The attempt to destroy trnst
by reducing me tariff destroyed immense number
small enterprises and left The large enterprises to con
tluue their existence although with decreased activ
and corresponding decrease in their pay rolls. Trust
are not peculiarly American institutions They exist
free trade Britain.
prior 10 the enactment Of the law which imposed
duty on tin the United states bought It's tinpate fron
manufacturers in Wales. America then had tin in
dustry whatever. Following the enactment OF the Me
Klnley bin in 1890 a tn-plaie industry eslabshe
in the United states and Il developed rapidly that do
nestle competition reduced the price OF tin to the con
sumer and America bought tin cheaper than ever before
If If be conlended that there was tin trust esabshe
in the United staiaes remains for Mr.. Borslum and hi
associates to demonstrate wherein there was any disae
vantage In buying from American tin trust as con
pared with a British tin trust which charged high'
prices The destruction OF American industries hroug
free foreign competition does not destroy trust o'
merely changes its location,
II is Just as easy for trust TO control importation
as IL is to control domestic production in fact the co
troll OF commodities that imported is easier than
control Of domestic production for the domestic field
fords broader opportunity for the establishment OF ma
uachrne enterprises and the maintenance OF successi
u competition