Perth Amboy evening news., 1922-09-23

With the adoption of the new tariff
regulations the revision OF
the rates CT customs duties which
must be paid to bring foreign mer-
chandise into the United States. The
measure is of unusual interest be-
cause it represents the first great
tariff revision since the European
war, a struggle which exercised the
most profound effect in history on
the economic position of the world.
One of the notable facts in
ton with it is that there has been a
radical alteration In the alignment
of high tariff advocates. For genera
tions, the Republican party has stood
for a high protective tariff while the
Democrats have veried between out
right free trade and tariff for re-
venue only.
The great strength of the Repub-
lican protectionists always has re-
posed in the northern states where
are located the manufacturing in
dustries. These industries have sup
ported the Republicans because the
Republicans favored high protec-
ton.
Closely affiliated with the manu-
featuring interests have been the
banking interests of the country: IN
fact. manufacturing enterprises and
banks frequently are owned by the
same person. This has meant that
the banking power of the United
States has been in favor of high tar
if duties.
A great change has come about
quietly in this regard as a result OF
the astounding event of the war.
The people as a whole put up the
money to buy the Liberty Bonds and
lend money to European allies.
but the banks also were heavy in
vestors. Indeed, the banks made it
possible for many of the people to
buy. 1t will be remembered how
banks arranged TO sell bonds to the
people during the drives, on a
monthly instalment plan. The
banks had to pay the government
within a shorter period. SO they were
actually putting up much of the
money. Many purchasers did not
complete their instalment purchases
and banks were themselves compell-
ed to take over the bonds. The con-
sequence was that the banks became
great holders of these securities.
Bonds Make Free Traders
Now more than Sl1, 900, 000, 900 in
Liberty loan money is in Europe and
Europe is slow in making repay
ment. Europe is poor and cannot
pay us in gold, as we already have
so large a proportion of the worlds
gold-about half of it. There are
three ways for a nation to make
payments; in gold, in goods, or in
services. Europe annot pay in gold.
She is paying in services by carrying
American cargoes in her ships and
by entertaining American tourists.
The bulk of the payment must be in
goods.
To pay in goods European coun-
tries must export to us all name
of commodities of the sort we re-
quire. Most of these goods are of
the sort made in the United States.
A. protective tariff is designed to
keep out foreign goods so that the
American made product will not be
met in its home market by foreign
competition. Foreign costs of pro-
duction are lower than American
costs. This applies chiefly to labor
which is the big item in manufac-
ture of all kinds. American wages
are higher than in any other
try in the world.
The bankers realize that TO get
their money back from Europe they
must let Europe bring in goods to
sell here. A high protective tariff
would prevent this. Therefore, for
the first time in history, the Ameri-
can banking community has depart
ed from its traditional advocacy OF n
high protective tariff and has lean
ed toward low rates.
Because of the close affinity be-
tween the banking and manufactur-
ing interests, the charge has not
been so marked as otherwise would
be the case, but nevertheless IL Is
apparent and has had n profound ef-
feet on the passage of the tariff bill.
Cause of Delay With Tariff Bill
This doubt on the part OF the
financial interests is responsible 20 a
large extent for the delay of a year
and a half in enacting the tariff re-
vision and 1t has had an effect in
keeping some OF the rates lower than
old time protectionist Republicans
would have put them.
A statement which shows how the
banks feel about the tariff is con-