The Holbrook news., 1921-02-11
THE TROJAN HORSE
 OF AMERICAN TRADE

tariff legislation is under consider
 ation in Congress the adquate pro
 tection of American industry is
 made more difficult by the fact that
 large financial interests in America
 are directly allied with the foreign
 interests which desire free entry
 into American markets. These in
 terests antagonistic to American
 industry are of two different kinds:
 first we have the American import
 CTS of foreign goods who desire to
 secure their commodities at the
 lowest possible price, and reap the largest possible profit by the sale of
 those goods to the American con
 sumer. Second we have American
 financiers who have made large in
 vestments abroad and who desire to
 make collection of their credits
 more easy by the shifting of the
 balance of trade more favorable te
 foreign countries.
 During the European war Ameri-
 can manufacturers, particularly of
 war materials, made extensive sales
 to the Allies. These sales were
 made at wartime prices and large
 ly on credit. The credits were car
 ried largely by the bankers-bankers of the class usually designated as international bankers. These inter national bankers are finding diff culty in collecting money due them because the balance of trade has
 been running so heavily against Eu- ropean countries. The debtor wishes to defer payment until the rate of exchange can be brought to a more normal ratio, and this can be ac- complished only by an adjustment of foreign trade more favorable to Flu ropean countries. Larger exports to America and smaller imports from America are desired by European countries in order that they may pay their debts with goods rather than with money.
 It will readily be observed that the interest of the international banker is practically identical with that of the European producer. But it will also be readily apparent that the interests of the American pro ducer are adverse to those of the European producer. Every yard of cloth manufactured in Europe and sold in America means one yard less of cloth manufactured in American mills by the employment of Ameri- can labor and the use of American capital. Every foreign commodity of any character sold in America means the displacement in our mar kets of a similar quantity of the same commodity produced in the United States.
 Manifestly the United States can not go on indefinitely selling to other countries more than it buys from them in goods or in services. There must some time be a balanc- ing of accounts. Recognizing this | bar raised against the sale of foreign | in the United States. The most ardent protectionist does not demand the enactment of a pro hibitive tariff law, but there has always been a demand among Re publicans, and in recent months | among Democrats as well, for the | of a tariff whose sched- ules shall be based upon the prin- ciple of the imposition of an import duty which shall equal the difference in cost of production here and in foreign countries. We are willing that European and Asiatic countries shall ship us some goods. We are not willing that they shall send | them at prices with which the Amer ican producer can not compete.
 American protectionists have no war to make upon the international banker who has financed sales to | European countries. It is desired | that he shall collect every dollar that is due him. But on the other hand, the American people will | oppose the continuance. of an economic situation which per mits a foreigner to market his pro- ducts in the United States at prices which are ruinous to the American | producer. While the in- banker is solicitous- for the welfare of the foreign producer, the American banker, who has fin anced American industries, is also anxious that nothingl shall be done that will bring ruin to American factories and consequent unemploy- ment to American labor.