Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-09-22
The COLLAPSE of a Theory

II IS an interesting II not meanlngIul CO.
incidence that the stock market picked
up, steel trade took turn for the better,
industry at large squared it's dropping Shout
ders, and talk of the business future waxed
cheerful, all in the wake of Postmaster Cen
eral Hays chilly remarks touching high
tariff. Said this discerning member Of the
Administration which stands pledged to up
ward revision "The very basic conditions on
which tariff is built-namely, the cost of
manufacturing in various European countries
with relation to our own cost of manufac-
ture, and the value of the currency of the
various European countries with relation to
the value of our OWLS at the present mo-
ment as shifting quicksand and as I'M
foreseeable as the weather." This unmistak-
ably was a hint to the Fordney bill protago-
nists to give pause to their zeal. That measure
and all like it would best wait, they are now
warned, albeit the echoes of their party's slo-
gan, High tariff or hard times,' still ring
from last autumn's campaign.
Mere coincidence it may have been that
Mr.. Hays interesting and, as taken by some
of his Republican brethren, heretical remarks
were followed by pronounced betterment in
sundry ailing fields of industry and business.
But the significant thing is that his words
and the altered policy they disclose had no
untoward effect whatever on the quickening
pulse of prosperity. From the expostulations
of true-blue Protectionists, one might have
inferred that such dashing of cold water
the Fordney bill would have sent prosperity
to bed with ague 1t would seem, however,
that business is standing the shock rather
well.
The fact is world conditions have broken
away, in open minds at least the last but
tress and coign of vantage by which tradi-
tional protectionist theory found support. No
longer is the United States a debtor nation, no
longer are our industries j. weak infancy, no
longer can they continue to expand and pros
per without ample foreign markets. Europe
owes us billions of dollars, and now can pay
only in goods and services. A tariff which
made it impossible for those goods to enter
our ports would make it impossible for us to
collect debts Moreover, if we do not buy
from those to whom we wish to sell, to whom
indeed we must sell if our industrial surplus
is to be marketed, how can we expect them
to buy from us? High tariff walls, instead of
keeping prosperity in, would shut it out.
Cases there are which call for special treat
ment-the new dyestuffs industry, for
ample, which is a key to national defense,
as well as to general industrial security, and
which, it appears, is threatened with unfair
and altogether sinister competition. But
surely it is not needful, in order to safeguard
r1ghtful interests such this to make
sweeping tariff advance which at once would
burden the rank and file of consumers, Sc
rfously if not disastrously cut down our for
eign trade, and Indefinitely delay the worlds
business readJustment. A hopeful sign it
is that some leaders in the Republican party
economic rather than a political standpoint
and in the light of the common instead of
particular interests. May they grow in wis
dom, and their tribe increased