The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1920-10-23
ARTIFICIAL TRADE BARRIERS


ARTIFICIAL TRADE BARRIERS.
Advocates OF a high rate of duties
on imports are rejoicing over the
prospective addition to their ranks of
the southern farmers. The growers of
cotton and peanuts are said to be pre-
pairing to move on congress for the
purpose Of obtaining for their prod
ucts protectioA from foreign COMPETE
ton.
Those Mbo demand a protected mar
ket for their wares never seem to con-
slider the millions OF consumers who
are chiefly interested in supplying
their needs at the lowest possible
price. The protectionists dismiss the
consideration of these persons by as
surfing them that they will be able to
obtain a higher wage II foreign COM
petition be eliminated or curtailed.
But this argument appears to have
lost some of it's force since the war.
The establishment of a relatively
uniform level in the wages paid to la
Dor thruout the world is an Important
postwar development with a vital
bearing on the future position of the
United States in foreign trade, accord
ing to the foreign trade review of the
Guaranty Trust company of Now
York. This changed wage situation,
due in large measure to the war, will
exert a salutary influence on the
movement of American goods, the bull
letin says, tending to level world pro-
duction costs and permitting this
country's entrance into a freer COM
petition with goods of foreign manu-
facture.
The general foreign exchange situa-
ton. and more particularly the fact
that the American dollar is at a pre-
MUM in Europe. stands today as the
most serious obstacle in the way of
American foreign trade. The prob
lem serves to demonstrate our depend
ence upon the rest of the world for our
commercial growth, and to emphasize
the Importance of acquiring a broad
vision of our trades necessities, over
looking no opportunity to eliminate
the trade barriers which restrain COM
petition.
During the half century preceding
the war, period representing the
golden age of English Industrial and
trade development. large and prof.
liable British overseas commerce was
developed. A low unit of cost in pro-
duction was largely responsible for
this growth. Germany, likewise pro-
ducing at a comparatively low cost,
developed highly organized CONNER
cial system and made serious inroads
into British commerce during the ten
years just prior to the war. The
United States, electing to operate upon
a different standard of Ilving, involv-
ing higher wage cost, was unable to
gain a position as a large exporter of
manufactured goods compared with
Great Britain and Germany, except in
those lines where our wider use of
automatic machinery reduced the unit
cost Of production to a point that per-
mitted competition with similar prod
ucts manufactured on the lower Eu-
ropean wage scale.
Fortunately for the United States,
the postwar period finds this condi-
ton decidedly altered. European la
Dor costs, says the bulletin, have adj
vanced tremendously Until they now
parallel, to a considerable degree, la
Dor costs in this country. This change
deprives Europe of one of her greatest
foreign trade assets and improves, In
like measure. the outlook for Amefi-
can foreign trade so far as competition
in productive costs is concerned.
wages will, of course, vary, but a COM
paratively level situation seems as
sured turnout the industrial countries
whose commerce is affected by pro-
duction costs.
THE foregoing" says the review.
lis one step in the elimination of trade
barriers. others will follow in the
course of natural evofution-the
progress will not be rapid-and by
normal processes we shall be able to
help preserve thruout the world uni
form standard of wages and more
natural flow of commerce"
With the element of foreign "pauper
labor" eliminated. what reason will the
protectionists have to offer for setting
up artificial trade barriers at the ex-
pense of the whole people of this
country?