Imperial Valley press., 1937-07-07
DEVELOPMENT OF RESOURCES
CONES At DPICE

JOWES At A PRICE
An interesting letter from F. P Okher
Of El Centre furnishes food for thought.
Says Mr.. Okher, relative To a recent
editorial in these columns about the
free port at Mexicali:
"Should not the country with the
greatest per capita production of materi-
ais for food, clothing and shelter have
the lowest living cost; and the one with
the lowest living cost and an abundant
production from all the other natural
resources have the lowest manufacturing
cost and the one with the lowest living
cost and the lowest manufacturing cost
have the highest standard of living on
earth; and should it not be able to estab-
lish a super position in world trade to
protect its home markets against all the
competitors without any tariff whatso-
ever? Are not Americans the dumbest
people on earth ,"
No, Mr.. Okher, we do not believe Am
ericans are the dumbest people on earth.
Take them on the whole we are inclined
to believe they are the smartest people
on earth. So far, at least, they have not
allowed themselves to become subject to
a Hitler or a MusSolini, or to be exploited
teal or economic reasons. That, it seems
to us, is enough to prove their smartness.
Returning to the economic conclusion
reached by Mr. Okher, we believe his con-
clusion to be we'll reached-as far as he
has gone The trouble is that he has not
gone far enough. He has taken the Unit
ed States as an isolated point in world
trade He has not considered the condi-
tions prevalent in the countries which
furnish competition for some of our
industries.
If industry and economic life were on
an equal plane everywhere in the world,
perhaps there would be no need for
tariffs of any kind. In that case the
United States, with its abundance of
natural resources, would be in position
to establish its super position" in world
trade. Unfortunately, there is no equal
plane.
Take the case of the Mexicali free
port, which inspired Mr.. Okher to write
us.
There would be no danger from the
free port if prices We're the same in
Mexicali as in CaleXico. Equal prices,
however, presupposeS equal wages, equal
rent, equal taxation and equal operating
costs. These things are not equal.
Before Mexico. is on the same industrial
and economic plane as the United States,
there must be an end to peonage in Mex
leo. Instead of drawing 80 cents day in
wages, the Mexican laborer must draw
five dollars or eight dollars a day. In
stead of making his evening meal on corn
meal, pink beans and bacon, he must dine
on the things that now grace the tables
only of those Mexicans considered by
their fellow countrymen to be wealthy.
Instead of living in hut of mud and
bare willow or mesquite poles, he must
live in modern dwelling with electricity,
running hot and cold water, electric
refrigeration and all the other "every
day" comforts enjoyed by laborers in the
United States
Also, before Mexico reaches equality
and puts into effect the high standard of
living we now enjoy, she must develop
those natural resources which are hers
in abundance, but which lie dormant for
lack of financing. Such development will
cost money. The standard of living will
rise when Mexico brings about this devel-
opment, it is true, but so will the price
of labor and commodities The whole
country will pay interest on the money
put into development of her natural re-
sources. 1t is the penalty that must be
paid for high state of development.
<NIIT nIID NAV