THE TARIFF AND EXPORT EXPANSION. You Can't Increase Your Sales Abroad by Letting Foreigners Have the Home Market. Muncie (Ind.) Press. James J. Hill, the famous Northwestern railway magnate, is out in a statement combating the notion that to restore prosperity in this country there must be an upward revision of the Tariff. Forcefully he argues against any such proposition. He says manufacturing in this country has been stimulated to such an extent that our home markets can no longer absorb all our production and that foreign outlets must therefore be provided. But why does Mr. Hill assume that a revision downward of an American Tariff automatically revises downward a foreign Tariff? Mr. Hill's native Dominion of Canada, after rejecting reciprocity, has boosted Tariff rates on American importations, especially steel products, since the Underwood Tariff laws gave Canadians new market opportunities in the United States, which, for instance, enabled Canadian steel manufacturers to sell rails to American railroads at a time when American steel mills were running on short time and badly needed the business. In the Argentine Republic recently there were street demonstrations in favor of higher Tariffs against American shoes, and it is announced that the Argentine authorities are revising their Tariff upward against American products, although we are letting Argentine grain, live stock and hides into our market free of duty. Brazil has done the same thing. Downward Tariff revision in the United States does not create a market for a dollar's worth of American products abroad, and it is curious to hear anyone arguing otherwise. It is true, as Mr. Hill states, that manufacturing has been enormously stimulated in the United States-and Protection did it over the protest of those who would like to make this country an agricultural dependency of Europe. The better reason, therefore, for not bringing about additional displacement in the American market of American-made product. Why give the foreigner the real and substantial boon of free access to our markets, without taking into account his cheaper cost of production, in order that we may send our own manufacturers on a wild goose chase for customers in these countries, where, owing to cheaper labor costs, goods can be manufactured and foodstuffs produced more cheaply than here at home? The very recent history of the United States proves not only that you can't increase your sales abroad by merely letting the foreigner have your own market, but that the existence of Protective Tariff is no barrier to export expansion. As a matter of fact, our exports grew enormously between 1900 and 1910, and the best of it was that as the result of the exchange we sold a half billion dollars' worth more stuff in foreign lands than foreign producers sold here. The Underwood law reversed that process, and by destroying our home market and the vitality of our home industries reduced exports, while increasing imports, until the European war began. It is quite probable that Free-Trade would be helpful to railroad systems which have their mileage along the border line between Canada and the United States, with feeders running into Canada. But the shipment of foreign made or raised articles into the United States to displace in our markets articles made or raised in this country does not represent a permanent contribution to our national wealth except in the matter of transportation charges, which, of course, stay in the United States. Mr. Hill may go on arguing that downward Tariff revision helps rather than harms the United States, but after having experienced the pangs of the new freedom for ten months under the Underwood law the people of this country know a good deal better. They Are Getting Ready. North Carolina was once in the list of "Solid South" States, but has recently become quite a manufacturing State, and it is evident that not only workmen but merchants who depend upon the trade of workmen are beginning to realize that it won't do for them to rely upon the Northern States to maintain Protection for their industries. They are getting ready to send Congress some senators and representatives who will help to do the Protecting. Bristol (Pa.) Courier. Byways and Pitfalls. "There is no highway of legislation but there are many byways," said Woodrow Wilson when he was a candidate for President. Since the discovery of flaws in the Tariff law which will cost the Treasury $20,000,000 it is quite apparent that Democratic Legislation not only pursued a course through the byways, but enencountered fatal pitfalls.-Bristol (Pa.) Courier. SMITH & DOW Shoe : : Machine Smith & Dove Mfg. Co. Manufacturers of Threads FLAX and TOW YARNS CHENEY SILKS 1 For everybody and every purpose-Manufacturer or Merchant, Man or Woman. Cheney Brothers, 4th Ave. & 18th St., New York In shapes to help Weak ankles To ease painful bunions and to Make Walking Easy SOLD NOWHERE ELSE JAMES S. COWARD 264-274 Greenwich St., N. Y. (NEAR WARREN STREET) Mail Orders Filled Send for Catalogue COLLEGE CAMBRIDGE, MASS American Economist DEVOTED TO THE PROTECTION OF AMERICAN LABOR AND INDUSTRIES. VOLUME LVI-No. 5. Pittsburgh Plate MANUFACTURERS OF Plate Glass GENERAL OFFICE: Pittsburgh, Frick Bldg., Pa. NEW YORK, JULY 30, 1915. MEMBERSHIPS IN THE AMERICAN PROTECTIVE THE FOLLOWING PLEDGE: THE UNDERSIGNED HEREBY DE. H. A. METZ & CO. Sole Licensees and Importers of the Products of 122 Hudson Street, New York, N. Y. To American Producers: Please report to us any article or articles of use in agriculture, mining or manufacture in the United States for the supply of which we are dependent upon any foreign country. Give details. THE AMERICIN PROTECTIVE TARIFF LEAGUE 389 Broadway, New York L.F. FACTORS AND COMMISSION MERCHANTS 254 Fourth Avenue New York Miller Bros.' Steel Pens Are American and the Best STEEL PENS, INK ERASERS & POCKET CUTLERY M. A. HANNA & CO. HARVARD UNIVERSITY LECTURES ON By Dr. Robert Ellis Thompson. These lectures were delivered in Harvard University by appointment of the Corporation and Overseers, that the students might hear what was to be said for the policy not favored by the Professors of Political Economy of that institution. They state the case for Protection in a clear and scientific way, so as to conciliate the prejudices of those who know the Protectionist theory only through the misrepresentation of its enemies. Only a few copies of original edition can be had. One Dollar a copy, postpaid. American Protective Tariff League 339 Broadway, New York, N. Y. THE LINEN THREAD FLAX THREADS and YARNS Encourage Home Industry, Especially when you find it to your business Copying Papers in endless variety. DIAMOND MILLS PAPER CO. 44 Murray Street, New York The American Protective 339 Broadway, New York, will furnish gratuitously information and facts on any phase of the Tariff question, on postal card request. "TO FARMERS: What Has the Underwood Free-Trade Document No. 24 just issued by the American Protective Tariff League advances no argument, but simply gives the facts regarding the rates of duty on agricultural products under the PayneAldrich Law of 1909, and the Underwood Law of 1913. It ought to be in the hands of every voter. Ten copies sent to any address for Ten Cents postpaid. Address W. F. WAKEMAN, Secretary. 339 Broadway, New York. TARIFF LITERATURE We give below the complete list of the DEFENDER Documents published by THI AMERICAN PROTECTIVE TARIFF LEAGUE, with number of pages and prices. The whole list will be sent to any address for one dollar. Order by number only. 10 25 Copies Copies First Prize .30 .60 3-"Home Production." Essay, 188. C. D. TODD, 24 pp...$0.13 $0.25 4-"Protection Which Protects." Speech by Hon. WELDON B. HEYBURN, U.S.S., of Idaho, 32 pp.... 7-"The Protective Tariff; Its Advantages to the South." Speech of Hon. J. C. PRITCHARD, U.S.S., of North Carolina, 16 pp....... 10 "Farmers and the Tarif." THOMAS H. DUDLEY. 16 pp..... 11-"Abraham Lincoln on the Tariff -Extracts from Lincoln's Speeches and Writings on the Tariff." dress by Hon. W. F. WAKEMAN, at Liberty, N.Y. 16 pp.. 13-"Workingmen and the Tarif." 16 pp...... .10 .10 .20 .20 66-"Blight of Free-Trade-Blessings of Protection." Edited by Hon. ROBERT W. TAYLOR, M.C., of Ohio. 8 pp... 67-New .$0.08 $0.15 England Against Free Wool." Speech of NELSON W. ALDRICH, U.S.S. 16 pp. 68 The Tariff." Speech of Hon. MARRIOTT BROSIUS, M.C. 16 pp. 74 "An Appeal in Behalf of Tariff Stability. Address and Resolution Adopted at the Twentieth Annual Meeting of American Protective Tariff League. 4 pp..... 76 "That Terrible Eclipse." An Exposition of Finance and Industry Under Three Administrations and Three Tariffs During the Decade of 1890-1900. By FRANCIS CURTIS. 16 pp..... 77-"A Democrat Who Flopped. Why Did He Flop ?" Speech of Hon. JOSEPH CROCKER SIBLEY, at Bradford, Pa., September 17, 1900. 78"Protection Ad .10 .20 8 from the DOWN. 8 pp. 21-"What Is a Tariff?" 4 pp.... .05 24-"To Farmers: What Has the Underwood Free-Trade Tariff Done to You?" 8 pp. Early Days of the Government." By a Southern Protectionist. 12 pp. .10 30 "The Dingley Tariff." 48 pp.. 32-"Blaine's Reply to Gladstone" and "Free Trade or Protection." Speech of Hon. CHESTER I. LONG, M.C., of Kansas. 16 pp.. 34 "Blaine's Reply to Gladstone," in German. 24 pp...... 36 "Taking Liberties with perity," Address by T. .13 .25 Pros Z. COWLES, Morristown, N. J. 16 pp. 37-"The Tariff and Cuban Reciprocity. Speech by Hon. WILLIAM ALDEN SMITH, 16 pp..... 38-"Cuban of Michigan. Reciprocity," by a Member of Congress. 16 pp.... 39-"American Tariffs and American Sheep." Speech of Hon. CHARLES H. GROSVENOR, of Ohio. 16 pp. 40-"Let the Tariff Alone. Speeches by PRESIDENT ROOSEVELT, at Minneapolis: SECRETARY SHAW, at Peoria; SECRETARY ROOT, at Boston, etc. 16 pp... 43-"Reciprocity and Tariff. The late THOMAS B. REED and Hon. LIONEL R. SHELDON, on the Economic and Legal Aspects of Reciprocity by Treaty. 32 pp.... 44-"American Merchant Marine Discrimination Duties." Speech by Hon. STEPHEN B. ELKINS, U.S.S., of West Virginia. 32 pp.. 45-"Why First Voters Should Be Protectionists" and "Protection Our Proper Permanent Policy.' Speeches of Hon. JAMES T.McCLEARY, of Minnesota. 64 pp.. 49 "Economic Aspect of Reciprocity." Two Lectures by JOHN P. YOUNG. 16 pp.. 50-Tariff Revision-Shall the Dingley Law Be Tampered With?" Expressions of Views by U. S. Senators and Congressmen. 12 pp.... 52-"American Tariffs from Plymouth Rock to McKinley and Dingley." "Prosperity is the Issue, Protection Is Panic Proof." Speeches by Hon. J. H. GALLINGER, U.S.S., of New Hampshire. 128 pp..... Text of the Trade Arrangement 84 "Home Market." The Tariff in 85-"Producers and Speech by Hon. LESLIE M. SHAW, 86 "Shall There Be a Hides ?'' Live Stock Speech of Hon. FRANCIS E. WARREN, of Wyoming. 16 pp.. 87-"Tariff Reduction Always Brings Hard Times." Extracts from a Speech of Hon. JAMES T. McCLEARY, of Minnesota. 8 pp.... .08 88 "The Roosevelt Idea of Tariff Revision." Extract from speech of Hon. JAMES T. MCCLEARY, of Minnesota. 8 pp..... 89-"Reciprocity-What It Is and What It Is Not." Extract from speech of Hon. JAMES T. McCLEARY, of Minnesota. 8 pp.. .08 90-"Trusts and the Tariffs.' Extracts from speech of Hon. JAMES T. MCCLEARY, of Minnesota. 8 pp. 91-"Condemns the German Agreement." Resolutions of the American Protective Tariff League remonstrating against the Agreement as illegal, unfair and contrary to the policy of Protection. 4 pp... .05 .10 93-"The Vital Issue Before the American People." Speech by Hon. JOSEPH W. FORDNEY, of Michigan. 32 pp.. .20 94 "Not a Menace of Our ForestsInsignificant Portion of American Timber Growth Used in the Production of Wood Pulp and Paper." 8 pp..... .30 2.00 4.50 Extracts from the speeches of Hon. WM. J. BRYAN 95 The Tax on Corporations." Hon. JOHN S. WISE. 8 pp...... .08 98 "The New Tariff as Its Friends See It." By CHARLES HEBER CLARK, in the Philadelphia Saturday Evening Post, October 1, 1910. 8 pp.. By .15 .08 .15 59 "The Tariff." Hon. WM. MCKINLEY, and arranged in parallel colums. 16 pp. 61-"Pottery." By U. S. Consul BURGESS. 16 pp.. 63-"Farmers' Egg Basket. 4 pp.. 64-"The Tariff.' Speech of Hon. THOMAS B. REED, of Maine, Feb. 1, 1894. 16 pp... 99 Exchange Value of Farm Prod- 65 "Shall the Republic Do Its Own Work?" Speech of Senator JOHN P. JONES, of Nevada. 80 pp.... .60. 1.20 AMERICAN PROTECTIVE TARIFF LEAGUE Offices: No. 339 Broadway, Between Worth and Leonard Streets, New York. CAMBRIDGE, MARS American Economist DEVOTED TO THE PROTECTION OF AMERICAN LABOR AND INDUSTRIES. VOLUME LVI-No. 5. EFFECT OF FREE-TRADE BLUNDERS. American Industries Crippled by Fear of Fierce European Competition After the War Is Over. Correspondence AMERICAN ECONOMIST. WASHINGTON, D. C., July 29.-In the campaign of 1912 President Wilson said that it was not necessary for the United States to be economically independent through Tariff Protection in times of peace and that he was quite confident that there would be no war. This prediction was about as true as his other theories regarding the Tariff. Entirely aside from the fact that all the industries of the United States have been built up under the Protective Tariff in times of peace as well as in times of war, the present European conflict shows very clearly that Protection is essential. What has been happening under the Free-Trade policy as applied especially to dyestuffs is shown by a recent statement of the Department of Commerce. Naturally, the statement tries to gloss over the acute character of the emergency, and tries to argue that the production of coal tar dyes is actually progressing in the United States. If this were true, however, there would be no need for the State Department to take the steps that were recently taken to utilize the Swiss dye works pending the development of the industry in the United States. Why Capital Is Waiting. The trouble has been that capital is holding back because of the certain knowledge of what would happen to the American dyestuffs industry once the European war is over and Germany is free to unload her dyestuffs upon the United States. The Swiss plants heretofore have received from Germany supplies of so-called "intermediate" coal-tar products to be converted into the finished dyes. Germany now threatens to cut off this supply on the ground that it was being exported by Switzerland to France and England. The statement issued by the Department of Commerce, while making an obvious effort to avoid the admission that Protection is necessary. concedes that the effects of the dyestuffs famine are becoming more and more apparent. "In some instances," the statement says, "textile mills are forced to shut NEW YORK, JULY 30, 1915. down for the time being until new supplies of color can be obtained." In one instance an American firm is said to have developed the manufacture of a coal tar "direct black" dye, which replaces the German dyes heretofore used, particularly in the hosiery industry. No Dyestuffs Coming. While efforts are being continued to secure dyestuffs from Germany, the Berlin authorities refuse to allow any shipment unless free passage to Germany is guaranteed for American cotton, or other products of equal value. "Information from abroad," the statement continues, "leads to the conclusion that the activity of the great German dyestuff works has been diverted largely into the manufacture of munitions of war and hospital supplies." Despite that, the bureau says, German manufacturers have on hand a stock of dyes "adequate to meet the pressing needs of the moment and to cover the needs of American consumers for months to come," and adds: "Everything points to the conclusion that German manufacturers will, in event of a cessation of hositilities, try to promptly stock the American market, and will vigorously endeavor to regain all ground lost during the past embargo. The Department of Commerce is carefully watching the situation and will not hesitate to recommend such action as may prove necessary to prevent 'unfair competition' by foreign producers on our soil against the developing of American dyestuff industry." Can Manufacture Cheaper Abroad. Another evidence of what has been happening under the Free-Trade Tariff is given by Henry C. Downward, president of the city council of Wilmington, Del, who has been investigating the possibility of inducing new industries to locate in Wilmington. "I know of a large company that some time ago had under consideration the expansion of its business," he said. "I thought it might consider Wilmington as a desirable place in which to locate. This is the result of a recent interview I had with a representative of that company: 'We can manufacture in Cologne, Germany, where we have a plant employing 4,500 men, cheaper, on account of the low wages, than we can here in America. The water rate from Cologne is low, and, with only a 15 per cent. Tariff on the machinery we make, we only need buildings here in which to assemble the finished machinery. Under existing conditions we do not propose enlarging our plant in this country.'" There was a loss of about $90,000,000 in customs revenues, comparing the collections of July, 1913, and July, 1914, with the fiscal year which just closed. The Democrats are now saying, however, that in the first fiscal year in which the Underwood law was operating, sufficient revenue was produced. They pointed to the record of the Underwood law for the nine months of its operation between October, 1913, and June, 1914, as proof of its potency as a revenue producer. In order to do this they have been compelled to resort to an ingenious perversion of the facts. Juggling the Statistics. The Department of Commerce, in a quarterly statement of importations and duties collected, extends the first quarter of the fiscal year 1914, from July 1 to October 3, 1913, during which period the Republican Tariff law was still in effect. During this period the duties collected on imports amounted to $88,380,457, which the Democrats presume to credit to the Underwood law. If the Underwood law had been in force during this period, the duties collected for this period would have been $57,395,953, giving a balance in favor of the Protective Tariff law of $30,984,504. Thus it is shown that for this quarter the Underwood law was benefited by the Protective Tariff law to the above amount. The duties collected during the second quarter of the fiscal year, 1914, amounted to $65,274,599. During two months of this quarter, however, Protection still applied to raw wool, which yielded a revenue of $668,883, and for the entire period on manufactures of wool, $1,635,460; on sugar, $7,963,521, or a total yielded by the Payne-Aldrich Tariff for the second quarter of $10,287.864. During the third quarter revenues were collected to the amount $66,457,102. During two months of this period Protective Tariff rates were still effective on raw wool, which yielded a revenue of $688,883; on manufactures of wool $1,635,460, and on sugar $7,863,521, or a total yielded by the Payne-Aldrich |