Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-09-17

Washington, d. c., Sept. 15.-The
conferees of the senate and house OF
representatives within a short time
will report to their houses a new meas
ure revising the rates of customs du-
ties which must be paid to bring for
eign merchandise into the United
States. This measure is of unusual
interest because it represents the first
great tariff revision since the Euro
pean war, a struggle which exercised
the most profound effect in history on
the economic position of the world.
One of the notable facts in connec
ton with it is that there has been a
radical alteration in the alignment of
nigh tariff advocates. For genera
tiohs. the republican party has stood
for a high protective tariff while the
democrats have varied between out
right free trade and tariff for revenue
only.
The great strength of the republican
protectionists always has reposed in
the northern states where are located
the manufacturing industries. These
industries have supported the republi-
cans because the republicans favored
high protection.
Closely affiliated with the manu-
featuring interests have been the bank
! ing interests of the country; in fact
manufacturing enterprises and banks
frequently are owned by the same per-
sons. This has meant that the bank
ing power of the United States has
been in favor of high tariff duties.
A great change has come about qui-
city in this regard as a result of the
astounding events Of the war. The
people as a whole put up the money TO
buy the Liberty bonds and lend money
to u European allies but the banks
! also were heavy investors. Indeed,
/ the banks made it possible for many
| of the people to buy. It will be remem-
bered how banks arranged TO sell
| bonds to the people during the drives,
on q monthly installment plan. The
banks had to pay the government with
in a shorter period. so they were act
ually putting up the money. Many
purchasers did not complete their in
stalment purchases and the banks
found themselves compelled to take
over the bonds. The consequence was
that the banks became great holders of
these securities.
Bonds Make Free Traders
Now more than S11 ,00O, O00, 900 in
Liberty loan money is in Europe and
Europe is slow in making repayment.
Europe is poor and cannot pay us in
gold as we already have so large a
proportion of the worlds ~gold--about
half of il. There are three ways for
a nation TO make payments: in gold,
in goods. or in service. Europe can
not pay in gold. She is paying in
services by carrying American cargoes
in her ships and by entertaining Amer
lean tourists. The bulk of the pay
ment must be in goods.
To pay in goods European countries
must export to US all manner Of com
modities of the sort W. require. 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-
d~uction are lower than American costs.
This applies chiefly to labor which is
the big item in manufacture of all
kinds. American wages are higher
! than in any other country In the world.
The bankers realize that 10 get their
money back from Europe they must LEI
Europe bring in goods TO sell here
a high prefecture ldrhI "ouiu proven
this. Therefore. for the first time In
history. the American banking commun.
itv has departed from its traditional
advocacy Of a high protective tariff anC
has leaned toward low rates.
Because of the close affinity be
tween the banking and manufacturing
interests. the change has not been SC
marked as otherwise would be the case
but nevertheless il is apparent and has
had a profound effect on the passage
of the tariff bill.
Cause of Delay With Tariff Bill
This doubt on the part of the finan.
( cial interests is responsible TO a large
extent for the delay Of a year and
half in enacting the tariff revision and
it has had an effect in keeping soms