The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-08-20
WHY THE SENATE HATS.

The senate is planning a months
recess. without taking action on the
pending tariff bills Except among
certain small groups of beneficiariss
no proposed tariff legislation by eithar
party, whether revising rates upward
or downward, has ever provoked moro
opposition or aroused popular disap
proval to a greater extent than the
l2easure now before congress. This s
not because the tariff as a means 81
producing revenue is believed to have
been superseded by other devices.
Nor is it because adherence to the
principle of protection has absolutely
died out in this country.
The country rejects the tentative
proposal on other grounds. These are
summarized by the Wollman Review
as follows:
The bill in several instances goes
farther than protection. 1t reaches
the economic absurdity OF prohibition.
In many cases it will be valueless s
a revenue producer, for it would abso-
iutely bar imports and thus permit
uncaIled for advances in prices on the
articles involved.
Under the so-called American vaIua-
ton plan it would act as a restraint
on international trade because the i'm
porter could not calculate in advance
the duty to which he would be sub
jected, altho he might be sure it would
be confiscatory.
We know that the world can re-
cover firm its depression only by the
production and interchange of goods.
We know that Europe, to say nothing
of the discharge of her colossal debts
to us, can pay us for raw materials
only in the form of goods. By making
the importation of goods difficult, we
cut off from ourselves the necessary
outlet for our surplus raw materials.
Critics of the new tariff bill have
pointed out the pernicious advantage
that ce1ild be taken of the American
was devised for the purpose of raising
barrier that could not be leaped by
those countries, such, for example as
Germany, which are supposed to have
their selling power greatly increased
by their deprecated exchange. AS an
illustration, it is related that a re-
turned army officer bought a trinket
in Vienna for the equivalent of about
ten dollars in American money. He
found out upon arrival that a New
York department Store would have
charged him about one hundred dol
lars for the same article. Under the
American valuation plan and so per
cent rate he would be paying fifty
| dollars duty-on an article that cost
him one-fifth of that sum. More
! over. he would not be able to tell be-
forehand the amount of the tax for
which he would be mulcted at the
time he made his purchase.
This duty may easily become pro-
gressive. as is pointed out by one of
the leading newspapers in the follow
! ing: Take an article whose foreign
value is one dollar. and a similar do
nestle article sells for one dollar fifty
An ad valorem duty. of so per cent
would Increase the price of the for
eign article imported to the level of
the domestic price, which CORE
spends with the theory of the protec-
tive tariff. But if the so per cent is
to be added to the domestic price, it
becomes rs cents. The imported ar
| ticle. duty paid. then advances to
Sits.
Now II the domestic manufactu--
ers take advantage of this Increase.
which they often do. the SO per cent
duty is not to be calculated on s1.O0
or $3.50. but on $1.75. The tax has
grown to s7h cents. Under its shell
ter the domestic price may advance
again. which will in turn afford ba-
sis for a further increase in the tax"
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| THE Erie railroad soo.,,r "a bn.-,