Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1922-02-10
Must We Buy If We Sell?
(American Economist

The United States Government is
business corporation. Fortunately.
despite the amateur and ineXpert
management of the last administra-
ton with it's Free-Tradc and other
foolish laws, rules and regulations, it
is still a going concern" Being
business concern, it must run It's
business according to business prlncl-
pies, exactly the same as any other
business organization, or it VIII get
into difficulties. In fact, it is in Diff
ficulties now, although solvent, con-
dition which cannot last always un-
less there is a change in its business
methods. When the voters decided
for change of administration it i'm
piled that a change of business meth
DDS was desired, as we'll as a change
of management.
Unfortunately, there arc many men
who pose as tinanciers and econom-
lists who advocate the continuance of
the old methods. One of the old
methods which they wish to have
continued is the Underwood Free
Trade Tariff. and the reason they give
for such continuation is the alleged
fact that we produce a surplus of
certain products and that other coun-
tries will not buy of us unless they
can sell to us. But our surplus pro-
duction is no new thing, so the argu-
ment loses force at the start, for we
have had Protective Tariffs for the
greater portion of our national life.
The claim that other nations will
not buy of us, unless they can sell to
us is disprovcn by the fact, which We
have SO often pointed out, that our
exports bear no recognizable relation
to the volume of our imports. BY that
we mean that our exports to certain
countries are largely in excess of our
imports from them, while, in other
cases. our imports are largely in eX-
cess of our exports. In very few in
stances do our export and import
trade with any country anywhere
near balance. This is the result of
business laws applicable to nations
no less than to private concerns, as
we shall show.
A prominent business man related
to us the following incident which
will tend to make our meaning clear.
He was in the Office of the purchasing
agent of certain railroad at the time
when representative of prominent
manufacturing institution was pres
ent and making a bid for patronage.
The argument was something like
this: I'VE patronize you by shipping
all OF our goods over your road, and
you don't buy anything of US in re-
turn Turn about is fair play and
you ought to patronize us. since we
patronize YOU" The answer was, in
effect: I'VE appreciate your patron
age and hope you will continue it,
but you patronizc us because we give
you good service and it is handler for
you to ship over our road. Now we
are willing to patronize you, provided
you make your prices right. We buy
where we can get the best prices. no
matter whether those who quote
them are our patrons or not"
That is the way business is done
among large concerns, and that is the
way business is done among nations.
In fact, the buying and selling is done
mostly by private business concerns
and not by the Government, and they
do business with foreigners on ex-
actly the same basis as they do with
home concerns. ,
Foreigners buy goods in this coun-
try because we have what they want
and which, perhaps. they cannot get
elsewhere. In all instances, they buy
here because it is to their advantage |
to do so. and not because they wish |
to patronize Americans.