The Bozeman courier. (Bozeman, Mont.) 1919-1954, 1922-02-15
TARIFF TESTIMONY
SOMETIMES WEIRD

washington, rep. OL the
weirdest tariff argument which has
been presented to the senate finance
committee is that submitted by H.
E. Miles, of Racine, Wisconsin, pres
ident of the alleged Fair Tariff
League"
Mr.. Miles prefaced his statement
with the assertion that the Fair Trade
League stood for the principle of
adequate protection to American in
dustry and labor, and is equally OPP
posed to excessive rates" Judging
from the reports which the league ma
put forth to defeat any rates written
by prepayment of protection, this as
sertion is open to serious doubt. The
Fair Trade League apparently favors
no duty rates except those which it
would be willing to write itself, and
they would probably be lower than the
present rates of the Underwood law.
The witness stated that "the u. S.
Tariff Commission, after years of in
vestigation, says that the tendency of
the tariff is always to make the price
of domestic as well as imported goods
! equal to the price plus the tariff" and
/ figuring on this basis, he finds that
the protection given on 20 industries
alone amounted to $1,000, 900, 900 in
1919" The statement credited to the
tariff commission is so familiary free
trade in character that one does not
hesitate to say, if the commission
ever made such a statement, it was
while the commission vas almost
wholly a democratic organization in
stead of the bipartisan commission
for which congress provided. Again,
in 1919 the Wilson, Underwood law
was in force, as it is to this day, and
it was the authors boast that there
is not a line of protection in the BILL"
and that is one time they told the
truth.
"Prices are easily raised by agree
ment among producers or by a little
spun. in demand" declares Mr.. Miles,
There is a federal trade commission
to take are of price-6xing agree
ments, a court to pronounce judgment
upon conviction, and penalties have
been laid in the past as they will be
in the future. A squirt in demand in.
, variably increases prices. That is az
! economic axiom undeterred by tarics
1t is right here that those importer.
who oppose the American valuation
plan fall down on their argument. L
Americans increase their wholesali
l selling price with the American val
Z uation plan in operation, the foreigne
n gets into our market at a figure rela
lively lower than where America
prices are cut. For example, take
30 per cent duty based on the whole
sale selling price of an America
article of $500, the foreign articl
being quoted at $1.00. Under tn
American valuation plan, this woul
mean a duty of 80 per cent of 500
or so cents duty on the foreign i'm
port, letting it in at 40 cents unde
the American selling price. Now Il
the Americans raise the wholesal
price to $3.50. This would mean
duty of rs cents on the foreign art
Gle, or $1.75 landed-75 cents undC
the American price. If, for purpos,
of competition, the American pri
were cut to $3.50, the foreign artic
would have to pay 45 cents, or a LAM
ed price but 5 cents under the Anne
lean price, and on this basis the tv
offerings would be presented to Il
consuming public. The America
valuation plan would make for con
petition instead of thwarting it.
Mr.. Miles did not add anything
the sum total of human knowledge
the tariff, and his euphemisticall
named league remains under suspi
ion.