The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1920-11-27
DO WE NEED MORE PROTECTION

III WE NEED MOtIL INOIECIlON
Much has been said during the re-
cent campaign about an upward tariff
| revision. There is no doubt that man
ufacturers and producers along vari-
Gus lines will make strong appeals to
build the wall higher against foreign
competition for the protection of
American industry" Probably the
proponents of such a policy do not
give full consideration to the situation
by which our country is confronted,
or realize fully that the day has gone
by for giving special aid to enterprises
which have had ample opportunity to
get on their feet.
The time has come to recognize the
fact that an entirely new set of con-
ditions has arisen. In the old days of
tariff legislation, we were a debtor ma
ton with many infant industries
struggling to get a foothold. Our
steel production was barely fifth of
what it Is today. Our exports consist
ed chiefly of cattle: grain. minor food
stuffs, copper, zinc and other raw ma
terials. We did not even produce all
the textiles we consumed. Except for
fear of competition that might smoth-
er struggling enterprise, we would
have been inclined to welcome impor-
tations from abroad. Prices were low,
and our manufacturers might not
have survived if they had been forced
to battle against wholesale dump
ing"
Today Europe alone owes us in gov
ernmental obligations approximately
$40. 900. The mere problem
of meeting interest payments on this
sum has been deferred In addition
to this, private credit to the extent of
several billions has been granted to
foreign business interests. On top of
all this, we are creating a further
credit balance, as our exports for the
first nine months of the present cal
endar year are about $4,000 900, 900 in
excess of imports.
How will Europe ever be able to
repay the $4,000 100000 in govern
ment loans, the great sums advanced
in private credits and continue to pur-
chase raw materials from us unless
there be free importation of her own
products?
1t may be pardonably patriotic to at
tempt to shield an American manufac-
turer from British. French or German
competition, says the Wollman Re
view, but If in this process we pre-
vent the repayment of bills now owing
to us and also prevent the sale of our
oh ~ l. \.
where the national advantage for us
comes in. Our European debtors have
only one means whereby they can
make satisfactory liquidation of their
obligations to US. That is by selling
goods to US. We do not want their
deprecated paper currency. They
could not be expected to send US gold
in such quantities.
Formerly in exchange for our
products there was an offset in divi-
dends and interest on American Sc
curities held abroad. We used their
ships to carry our goods, and paid
hundreds of millions in freight and
insurance charges. Our tourists
spent hundreds of millions annually
on the continent. We have bought
back our securities, we have our own
merchant marine and are attempting
to garry our own insurance. Tour
lists expenditures are nominal COM
pared with pre-war days.
Consequently. the one method by
which Europe at present is able to pay
even her current obligations to US is
by the sale of her own products here.
To ignore this new Set of conditions
and enact tariff legislation for pro
tective" purposes would mean the vir-
tual notification of Europe's debt to
US, and it would take away from for
eign buyers the only means whereby
they might be enabled to pay US for
our wheat, cotton, copper and all the
raw materials and crude and manu-
featured products which they wish to
huy.