The Hays free press. [volume] (Hays, Kan.) 1908-1924, 1922-04-27
THE TRUTH ABOUT EXPORTS
OF MANUFACTURES

port Irade ana Delttle the home
market, quite the fashion for them to
attempt to convince the public that
American production and American
prosperity depend upon our exports.
In order to magnify the Importance
Of the export trade they make use of
figures which are false and mislead-
ing, and purposely so used, for it is
easy enough to ascertain the facts.
s, Only recently we came across a.
famboyant circular advertising GER
tain export convention to be held in
the near future in which the import
ance of the export trade was greatly
magnified. 1t was stated that our
exports of manufactured products
amount to 20 per cent of our produc- |
ton, a statement as false as any
propaganda ever put forth. Let US
see what are the facts.
According to the census of 1920,
which covered manufactures for the
previous year, our total manufactures
were valued at So, 1910, 2O2, 900,
while our total exports of manufac-I
tured products in. 1919 were valued
at $5,448, 1865, 1886 at the port of exit
The values tthe port of export in
clude the profits of the manufacturer,
the middleman, if any, and the costs
70 transportation to the place of eX-I
port. But taking the gross figures in
each case, the percentage of exports
to the total production is less than 9
per cent-8.6 per cent, to be exact.
The quoted figures are taken from
official reports, and the reader can
figure the percentage for himself. For
the past seventy years our exports of
manufactured products have been
only 5 u per cent of our total output.
We strenuously boject to having
the relative Importance of our export |
trade magnifed, but that does not
mean that we have any inclination to
minimize it. On the contrary, the
doctrine of Tariff Protection which |
we advocate is in the interest of our
export trade, for the figures show
that our export trade has always been
proportionately higher under Protec-
tion than under Free-Trade. 1t is |
impossible to successfully compete in |
the foreign markets when we are un-I
able to hold our own markets and
when the volume of domestic produc-I
ton is low in consequence.
In order to compete in the foreign
markets we must depend in, great
measure on lower production costs
and gu; Sity production is one of
the main elements in lowering such
costs. We must aim to supply the
domestic market with competitive |
products to the greatest possible ex-
tent or our export trade will suffer.
1t would not be true to say that
lower production costs alone help US
in our foreign trade, for there are
other elements which enter into the
question. One of these is nearness
to our customer. Canada is our
second best customer because she is !
our next door neighbor. Cuba and
Mexico are good customers for the |
same reason. The prompt filling of
terms of payment and supriority of
products are all considerations which
determine the placing of export
orders, but the element of cost isl
never lost sight of, and, as everyone
knows, low production costs are large
ly determined by the volume of pro
duction.
Hence it is worse than foolish, it is
economically criminal, to permit for
eign products to flow unchecked into
our markets and drown out domestic
products, an to do so on the plea that
to afford our own products the benefit
of an adequate Protective Tariff
would iHjure our export trade. The
idea of planning to protect a trade
which amounts to only u per cent
at the expense OF. one which amounts
to 9415 per cent is one that it would
disgrace a schoolboy to seriously con-
template. In economics our interna-I
tional bankers rank lower, in some
respects, than should the average
grammar school student.
The prime necessity is an adequate
Protective Tariff which will ensure
quantity production and secure the
home market for home products. With
that done the export trade will take
care of itself.-American Economist.
SPAIN ADOPTS HOME VALUA-
TON