Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-10-16

Republican nominee for presidency add
italian 7 cents an hour. And in New
England wages are higher than these
averages for the whole country. Tit
American protective tariff is the only
insurance to our 100000 families whC
earn their livelihood in the cotton ane
wool manufacturing industries agains
the wages prevalent abroad and the
conditions and standards of living
which necessarily result from them.
Prospects Favorable.
The prospects for the textile Industry
are today much more favorable than
for some time past. Both the worlc
situation and domestic situation are i'm.
proving. I believe these industries have
turned the corner. And there are
omens of much broader significance
which sustain me in my beliefs. A.
never before in the industry there il
demonstrated a will to pool its best
brain resources in the solution of pres.
ent and future problems in order that
there shall be mutually of benefit tc
Elimination Of waste in production anC
distribution are in progress. Security
and steady employment are more as.
sured than for long time past.
During this campaign some Of our Oh.
ponentS have asserted that It Is incon.
sistent to support the protective tariff
and at the same time expect q greater
expansion of our foreign trade, Their
presentation of this theory at least indi-
Gates that some of them have not de.
parted from their long-held free trade
theories. e.~ y
Their theory is that If by tariff wal
against competitive goods we reduce the
sales of goods to us from foreign coun-
tries we thereby diminish the resources
of those foreign countries with which
to buy goods from us, and thus in turn
our sales abroad are decreased. It Is
still further asserted that If we by the
tariff reduce the shipment of goods into
our markets, then we diminish the abil-
ity Of foreign countries to pay the
principal and interest on the debts
which they owe us. This theory was
sound enough In the old days of direc'
barter of goods between nations The
trouble with 1t is that it has lost mos
Of its practical application in modern
world and especially as applied to the
American situation. Economic theorie.
and hypothesis just stand the test Of
fact or experience or show application
to new circumstance. Responsible mer
can not daily with critical policie.
which affect the wellbeing of peoples
on the sole basis of a theory. Tit
birth of modern science was the real
ization by the scientists that ever,
f1AAarsry axa& L.
placed upon the scales where the
mentS.
Not n Direct Barter,
One primary fault of this economic
theory is that foreign trade Is no longer
a direct barter between one single
nation and another. World trade has
become more of the nature of a. com.
mon pool into which all nations poul
goods or credit and from which they
retake goods and credit. Let me give
you an example: We ship more goods
to Great Britain than we receive from
her. But we buy vast quantities oil
tropical goods, and she in turn sup.
plies the tropical countries with hel
manufactures In this way the settle.
ment Of international balances ande
obligations Is lifted entirely out of the
category Of direct barter.
The first answer, however, to thi.
theory is that SIS per cent of our $4,-
10000, goo OF annual imports are ad.
mitted free Of duties because they. arr
raw materials, tropical products ant
other articles which we do not our.
selves produce. OF the remainder
from 6 per cent to Z per cent are lux.
uries, upon which duties are levied fol
revenue and which are bought by GU,
people irrespective OF price. The pur.
chasing power of foreign countries i
certainly undiminiShed to the extent OF
this 10 per cent H
A further answer is that 80 Der cent
or $3.50 10000 of imports came in
over the tariff wall and paid duties tr
the useful revenue of the Government
Of about $470. 100000. The PURCHASING
power for our goods was llndiminisheS
by this amount.
A still further answer to this theory
opposed to the protective tariff is the
enormous increases Of what are usually
called the ''inviSihles" of foreign trade
That is the expenditures for freights
for insurance, by tourists, by immi.
grant remittances. for interest and 8
hundred other items.
Sought Out Facts.
Some years ago, believing that these
transactions were of vastly more i'm.
portance in the determination of oul
national policies than had beer
credited to them, instituted an an.
nual determination of the facts. These
determinations show that foreign ma.
tons now receive from us about two
bulions OF dollars per annum for Sery.
Ices, including such items as $770..
100000 paid out In foreign countrie.
by our tourists and $240, 00O, 900 re.
mltted Dy immigrants in our country
to relatives abroad. This sum of twT
billions can be applied by FOREIGNER,
to the purchase Of goods or to nav.
mentS on debts or for services in tn.
United States just the same as thu
money which they receive from tn,
sale OF goods to us. II we add thi.
two billions to the $4,185 900 600 ir
goods they sell us it makes their n,r.
CHASING power over six billions. 81
that the proportion of the FOREIGNERS
buying power, which is effected bv tn,
protective tariff diminishes to even !
smaller ratio.
Still another answer is that thu
volume OF imports is, in fact. deter.
mined by the degree of prosperity o.
nations. BY the very result of the tariff
we have been able vastly to increast
our imports of luxuries, raw material,
and things we do not produce. witt
our domestic prosperity we REQUIRE
more raw materials, and by that sane
prosperity we have the resources witt
which to buy them. BY our prosperit,
we have been able 10 20 abroad a:
tourists and also to remit to our rela.
tives IN Europe. This, 1 believe, ANAL,
extinguishes the already depleted i'm.
portance Of this theory that our tariff