Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1926-10-27
CERTAIN IMPORTANT FACTS

nuOuL ldhlHS up Lne Ldrl1I as an Is
sue in the next Presidential election
remains to be seen. AS to its aris-
ing sooner or later there need be no
doubt. When it does, I'VE. may be
look what Andrew w. Mellon had to
say last week respecting our tariff
policy.
: He laid emphasis on a feature that
: heretofore has not received the con-
sideration it deserves, the influence
of prosperity in the United States on
the worlds prosperity. He reminds
,us that If this country's consumption
of rubber were for any reason cut
down to the world average there
would be no market for half the
worlds present production Of rub
Der: that IL our coffee consump-
ton were reduced to the world
average the purchases Of the worlds
crop would be cut by 40 per
cent; that like reduction in the
consumption OF sugar would ruin
Cuba financially; that while we are
using n per cent of the worlds silk
IL we were reduced to the worlds
average Of use there would follow
cut Of 10 per cent. This is applica-
ton Of the fact which should be well
of employment is detriment rather
than an asset to the community, even
the community of nations.
Under existing conditions this
country is contributing tremendously
to the worlds market. During the
last fiscal year we imported from
foreign countries merchandise to the
value Of four and half billion dol
lars. He contends that the volume
of imports depend on q country's
purchasing power. Importers, as
others, insist on bills being paid and
bills are not paid unless there is
money with which to pay them. Our
productive capacity is nothing short
of marvellous. The profits from that
production find their way into the
channels of trade. More than Is per
cent of our imports come in free of
duty. How would the importers of
that merchandise feel about reduc-
ton of our purchasing power?
With regard to labor's interest in
our protective tariff Mr.. Mellon has
this to say:
Consider again what our tariff
policy has meant to American labor
l know personally of one manu-
t.ln tt f,,rr 1t
in France, in Brazil and in the
United States. The wages paid
labor today at these three plants re-
duced to American currency are as
follows: Unskilled labor gets in
France tx cents an hour, in Brazil
1914 cents; in this country 40 cents.
Skilled labor 101a, II and 65 cents
respectively. In other words, q
laborer in this Industry gets six
times more per hour in America that
lie does in France for the same kind
of work. Can it be to the interest
OF the United States that equality be
established by the removal of the
protection of the tariff"
Nor has he overlooked the criti-
cism of the tariff protecting the
aluminium industry in this country
in which he Is said to have large in
terests. Those, who might wish to
hit what they term the aluminium
trust with a free trade club, are re-
minded that: "The principal cost of
the manufacture of aluminium is
electric power and labor The
cheapest power in the world is
hydro electric; the cheapest labor is
fproion ha
has many power properties in the
United States, but others in foreign
countries, and the largest power of
all is now being developed in Cam
ada. From its plants in the United
States the American market is sup
pled; from its plants abroad the
foreign market is supplied. If the
present tariff on aluminium is main
tanned, developments for the eXpan-
sion of domestic business will be
made in the United States.
If the tariff be removed, those de.
velopments will occur in foreign
countries, and part of the American
market be supplied from abroad.
Inc effect of removing the tariff on
aluminium would not in the least be
to hurt the Aluminium Company.
but to deprive the United States of
the beneht of enlargd mandatory
here. Less capital will be invested
mere and less labor employed"
This is not an isolated instance:
there are other enterprises similarly
situated. Labor In recent years has
been sufficiently informed to recog-
nize the benefits accruing from our
tariff policy. And what concerns
labor concerns most of US with the
exception of those who are importers
and those who are loaning money to
the foreign producers and are look
ing to immediate profits rather than
to the maintenance of Americas
consuming capacity and ability to
buy.
With regard to proposed changes
In the tariff between the countries
of Europe Mr.. Mellon regards this in
a sense a desire to emulate condi-
lions existing in our own country. In
the foreign countries the standards
of living are similar. though much
lower than ours, but between those
countries are hampering tariff bar.
riers. The only comparison he sees
with respect to us he~thus expresses.
The two would only become COM
parable If we should consider each of
the forty eight States a separate ma
ton, each having its own tsrifs a..
own railroads, its own currenov ~, 20
its own language. Under such Gov