Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-05-07

trade theory to that made under the
protective theory-the historic policy of
the Republican party. Speaking gen.
| orally, it has served the country well,
but the past six years have been years
! of unprecedented development, not only
/ in our own country but in other coun-
| tries.
1T has fully justified its existence. It
has restored confidence, rehabilitated
| industry, fostered agriculture, provided
| millions OF wage earnerS with employ
| ment at higher wages than ever paid
| in the history of the world, and brought
an unprecedented prosperity generally
| to our people. For the great ma jority
of the articles for which it provided
protection it is still efficient and suf-
ficient.
Since 1922 conditions in business, in
industry and in agriculture have ma
terially changed. New products have
been added TO the list, improved ma
chinery has been adopted both here and
abroad, foreign competition has at
tackled production in new ways, and
new lines of products are being manu-
featured destined primarily for the
American market.
New competitors have entered the
field seeking markets in the United
States and the competition has been
countries whose newer development has
been important are italy and Czecho-
slovakia.
THE labor cost in production is an
essential factor. The average rate of
wages abroad is 20 per cent or less than
that in the United States. While the
effectiveness Of foreign labor is increas-
ing. their wage scales have not in
creased in proportion. This creates a
j e. rfA cif fSr-n ~
facturer but to the laborer. It is the
desire in the United States to maintain
wages consistent with the American
standard of living. The opportunity of
labor to secure employment and of the
employer to pay wages depends upon
the ability of industry to market its
products. Naturally, foreign products
seek our market because it is a cash
market. Being enormous in size and
varied in demand, it absorbs products
in great variety.
Projections Aim Defined.
Speaking generally, values represent
ed IN invoices should be multiplied by
three to represent American values.
Imports and exports under the act of
| 1922, have been twice those for the
years under the Underwood tariff ex-
elusive of the war and immediate post
/ war years. The protective policy, which
has resulted in increased prosperity in
this country, has increased the value
and desirabilitE of American trade
! The protective policy does not exclude
! and Is not intended to exclude foreign
products from our markets, but does
propose that such products should not
come into this country to the detri-
ment of the American producers and
wage earnerS. Moreover, it can be
safely stated that under the protective
system domestic compensation more
than foreign imports is the most impor-
tant factor in regulating prices which
consumers in this country pay for the
products they consume. Imported arti-
cleS are sold here at whatever prices
may be obtained, irrespective of the
cost of producing such products aboard.
They may be offered at prices little
below those of competing American
products, in order to obtain control of
the market. Also they are sold at
prices greatly in excess of the foreign
COST because buyers are unaware OF
the great profits being made on them
or because of representations made that
they are imported articles with the in
ference that they are therefore better
Industries generally in the United
States are in a sound and prosperous
condition but there are a number OF
instances where the foreign competition
is being sharply felt. There is slack
ening in these, loss of employment, and
number of instances were presented
at the hearings showing that enterprises
had been abandoned or are in serious
straits. Only part Of an industrial
system may be affected, yet the foreign
competition may be important. Agri-
cultural products as whole have been
more generally affected.
I'm order to make the tariff meet
modern conditions the present read
iustment is undertaken. Under the
Underwood act of 1913 agricultural
products generally were put on the free
list. The restoration of these products
to a dutiable status where they properly
belong by the tariff act of 1922 has
been of immense advantage to the agri-
cultural industries. In recent years
however, these industries have been
somewhat depressed and in the present
bill increased protection, which in 9
number of instances is very material
has been proposed for them.
1T is essential that we provide for