The Republican journal., 1922-04-06
BUSINESS CALLS FOR ACTION ON
THE TARIFF.

lars have gone abroad during the last ten
years to establish factories in foreign
countries. The reason for this is plain.
Many kinds of goods can be produced
there cheaper than here and, under our
present tariff laws, can be imported and
sold less price than our home manufac-
tururs can produce and sell them at
profit.
Almost every day we read that our ex-
port trade is decreasing, and we are told
that the only way to increase this trade
is to buy more foreign goods. This is the
argument of the free traders and of the
apostles of near-free trade. These peo-
pie appear to be profoundly impressed
with the value of the foreign markets,
but are serenely forgetful of the fact that
more than ninety per cent of the enor
nous production of the United States has
found its market right here at home The
tariff question today is just this: Shall we
protect that which is our own2
A tariff bill was introduced in the
House of Representatives several months
sgo and has been dragging its way
through hearings and disputations until
it now seems likely it will, before long be
under protracted and bitter partisan de-
bate in the Senate. A very great major
ity of our people believe that our home
industries must be protected by reason
able and well balanc d tariff law and will
demand that definite action establishing
such law shall be taken before Congress
adjourns 1t is to be regretted that the
tariff is now, as it has been in the past, a
political foot ball when it should always
be considered, debated and voted upon as
being a business matter, second in i'm
portance to no other.
In the Senate there will doubtless be a
repetition of all the old arguments for
and against protective tariff, enlivened
by discussion of "American Valuation,
which has been written into the bill.
This is something new in connection
with the tariff and owing to the opposi-
ton of the importers and the mail order
houses great many persons have mis-
conception concerning it " bave 81
-a-~.t ~ saier feaate, i4lo aises-
D. NE An icsn Vasaattcn ahr -
az li it4 fiHrs e-e IS 4yf4 9,a1s.aS
teg faels bich -.ueliIe tH9 N;hols mat
scf.
Our tariff laws place duty on certain
goods. On some articles there is placed
a specific duty" which is specified
sum of money to be paid per pound, per
yard, per ton, etc., without regard to val
ne. On certain other articles. there is
placed an lad valorem" duty, which
means that certain per cent of the val
ue of the goods must be paid as an i'm
port duty. 1t has been the custom to
levy the ad valorem duty on the value of
the goods in the country where they were
produced. This worked very we'll until
the currencies of European countries be-
came debased. The situation today is
such that articles made in Germany
which are subject to an ad valorem duty
get into this country on what is very
near a free trade basis. To illustrate:
Before the World War the German mark,
whether paper or gold, was worth % 8
cents. Gold marks in Germany are now
IN hiding and paper marks are used in
commercial transactions and for pay of
labor in Germany, and this paper mark
is worth less than one cent in the cur
loren duty on German goods is now bas-
ed on the German cost American Valu-
alton provides that the ad valorem duty
shall be based on the American value of
goods coming here from Germany or
from any other country.