The Hays free press. [volume] (Hays, Kan.) 1908-1924, 1921-11-17

and equitable treatment of the prob
lem. By using American valuation as
a basis, a reasonable degree of Pro
lection is afforded by the fixing of
moderate rate. An argument IN
favor of American valuation is that in
the past the Government has been
obliged to rely upon the importers
invoice for information regarding the
foreign price or Foreign value. For
eign countries have objected strenu-
ously TO Investigations regarding the
cost of production or selling prices.
"Appraising officers in general
frankly admit their inability to pass
on the correctness of information
furnished in invoices. The result has
been that for many years unscrupu-
lous importers have undervalued art
icles imported to the detriment OF the
honest importer and the honest mer-
chant.
sUnder the old system certain very
large merchants in America have
found it to their advantage to acquire
manufacturing establishments in for
eign countries. The foreign price
stated in the invoice did not include
profit. This would bear down the
dutiable value and the duties paid.
The profit would be made on sales IN
the American market. Obviously the
smaller merchant without foreign
connections cannot engage in similar
practices and the small merchant is
obliged to face an unfair sort of COM
petition. 1t is not surprising that re-
representatives. of some of the very
large department stores are siren
uously opposing the American valua-
ton proposal.
"The present law is wholly made
uuate. From the date of the enact
ment of the low rates until the out
break of the war in Europe exports
did not only not increase but declined
with rapidity and alarming regularity,
while imports increased. America did
not capture foregn markets but for
eigners captured American markets.
Industry languished and unemploy-
ment prevailed. The war checked the
flood of foreign goods and created a
demand for supplies of every descrip-
ton, and adverse conditions in 1913
and 1914 were to a large extent for
gotten during the continuation of
hostilities.
with the end of the war and the
resumption of production in Europe,
foreign competition once more is be-
ing keenly felt. Industry and trade
in the United States is at low ebb.
This industrial depression is the in
evitable result of the Offering of for
eign goods upon the American market
at less than the American cost of pro-
duction.
THE disparity between wages paid
in America and abroad is very strik-
ing. The cost of the same or compar-
able article differs in various coun-
tries, due mainly to the lower labor
wages paid in the countries of lower
prices. Countries having the lowest
paid labor and consequent low cost
of production pay a much lower duty
than those countries where civiliZa-
ton is most advanced in the standards
/ of living and therefore such countries
are very severely Disseminated
( against. The result is that American
industry and labor receive Protection
| against a country such as England
/ where the labor costs are highest but
little or no Protection against the
countries having low labor costs such
as Japan and Germany"
In this letter of Chairman Ford
ney's we think our readers will b,
able to find additional reason for tn
opposition of Marshall Field & Co., t.
the American valuation system, an
additional reason why every retail
merchant who is not interested il
J foreign manufacturing should favo
/ the system.-American Economist.