Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1922-09-18
By Freaesaos III Haskin.,

NJ FtI5NAAFA NtA
WASHINGTON, DE- c., Sept. 14.-The
confereess Of tire Senate and House of
Representatives. within a4 short time
will report. to. their houses az new
Observation-Disclosures customsl
duties, which must be paid to bring
foreign merchandise intoath sU,nitede
States. This measure is of unusual
interest because it represents the first
great tariff revision since the Euro
nean a a struggleswhichs exercised,
fha.most profound effect in. history on
the economic position, OF the world.
One of@the notable facts in con-
nection with it is that there. has been
a. radical alteration in the alignment
az high tariff advocates. For gem
crations, the. Republican, party a
stood. for a high protective tariff while
the Democrats have. varied between
outright freestrade land tariff for#rev-
anue only.
The great strength Of The Repub-
lican protectionists always mas re-
poseds ins the. northern states where
are located the manufacturing indus
tries, These, industries have support
ed the Republicans because the Re-
publicans favored high protection.
Closely affiliated with. the manu-
featuring, interests have been the
banking interests of the country; In
fact manufacturing enterprises ana
banks frequently are owned by the
ei-me persona. This has meant that
the banking power Of the United
states has been in favor Of high tariff
duties.
Al great change. has come about
quietly in this regard as a"result ofthe
astounding events Of the war. The
people as a. whole put up money to
buy the Liberty bonds and lend money
to our European Allies but h banks
also we're heavy investors Indeed,
the banks: made it possible for many
Of the. people to buy. 1t will be re-
membered o banks arranged to
sell bonds to the people during the
drives, on aemonthly installment plan.
The banks had to pay the govern
ment within a shorter period, SO they
were actually putting up much OF the
money. Many purchasers did not
complete their installment purchases
and the banks found themselves COM
PEELED to take over the bonds. The
consequence was that the banks be-
came great holders Of these secur-
tiles.
Bonds Make Free Traders.
Now more than $11, ooo.ooo,ooo 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. portion of the worlds gold-about
half of it. There are three ways for
a nation to2make payments; IN gold,
in goods, or i aservices. Europe can
not pay in gold. She is paying in
services by carrying American cor
goes in her ships and by entertaining
American tourists. The bulk of the
payment must be in goods. r
To pay In goods European countries
must export to us all manner of COM
, modities of the Sort we require. Most
of&@these goods are Of the sort made
in the United States.
A protective tariff is designed tc
keep out foreign goods so that the
met in its home market by foreign
competition. Foreign costs of produc.
ton. are lower than American costs
This applies chiefly to labor, which is
the big item in manufacture of al
kinds. American wages are higher
than. in any other country in thu
world. {
The bankers realize that to ge
their money back from Europe the,
nnust let Europe bring in goods to sci
here. A high protective tariff woult
prevent this. Therefore. for the frs
time in history. the American bankin;
community has departed from its ira
ditixEnal advocacy OF a n1gh protectlV
tariff and has leaned toward low rate!
Bet'ause of the close affinity be
tween tho banking and MANUFACTURER
interests, the change has not been s
marked as otherwise would be tn
case. but nevertheless it is apparer
and has had a profound effect OF tn
passage of the tariff bill.
Cause of Delay With Tariff Bill.
This doxlbt IN the part of the f
nancial interests is responsible to
large extent for the delay of a yea
andsa half in enacting the tariff re
vision and it has had an effect in keeI
ing some Of the rates lower than oil