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The Commoner
VOL. 15, NO. 3
20
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The Tariff and Business Depression
A Complete Answer to Critics of the New Tariff Act
Tho following Is an open letter ad
dressed to "Walter S. Dickoy o Kan
sas City, Mo., by tho editor of tho St.
Louis Republic:
"Walter S. Dickoy, Kansas City,
Mo.: Sir At tho Lincoln Day Young
Republican banquet, in tho city of
St. Louis, you said, according to tho
St. Louis Glob Democrat of tho fol
lowing morning:
" 'A majority of tho people of the
United States aro again convinced
that experimenting in freo trade is
disastrous to our people.
The voters of tho United States will
hold tho democratic party responsible
for tho widespread prevailing bus
iness depression and lack of remu
nerative employment. This great,
rich, new country requires a protec
tive tariff.'
"We democrats welcome this ex
pression of opinion from one who is
not a political spellbinder, accustom
ed to deal in unlimited talk and in
' discriminate condemnation of the op
posite party, but a republican bus
iness man of standing and experi
ence, who expects his words on econ
omic questions to be taken seriously.
I have tried in vain to evoke from the
republican press of the middle west
detailed discussion of tho relation of
' tho Underwood tariff to the prevail
ing business depression. I am glad
to put to you certain questions in
view of certain facts, and to invite
your full and explicit reply.
"We have just received from Wash
ington tho monthly summary of for
eign commerce for December, giving
statistics for the calendar year of
1914. The figures contained in this
article are all taken from tho pub
plication, and tho numbers in paren
thesis refer to its pages, to aid you
in your reviow of our case.
f-
OHILDREN SHOWED IT
Effect of Their Warm Drink in the
1 Morning
"A year ago I was a wreck from
coffee drinking and was on the point
of giving up my position in the School
room because of nervousness.
"I was telling a friend about it and
Bhe said, 'Wo drink nothing at meal
time but Postum, and it is such a
comfort to have something we can
enjoy drinking with tho children.'
"I was astonished that she would
allow the- children to drink any kind
of coffee, but she Baid Postum was
not coffee, but a most healthful drink
for children as well as for older ones,
-and that tho condition of both the
children and adults showed that to
be a fact.
"I was in despair and determined
to give Postum a trial, following the
directions carefully. It was a decided
Bucoess and I was completely won by
its rich delicious flavour.
"In a short time I noticed a decided
Improvement in my condition and
kept growing better month after
. month, until now I am healthy, and
do my work in tho school room with
ease and pleasure. I would not re
, turn to norvo-dostroylng coffee for
any money."
Name given by Postum Co., Battle
Creek, Mich. Read "The Road to
Wellville," in pkgs.
Postum comes in two forms:
Regular Postum must be well
boiled. 15c and 25c packages.
Instant Postum is a soluble pow-
' der. A teaspoonful dissolves quickly
in a cup of hot water and, with cream
and sugar, makes a delicious beverage
instantly. 30c and 50c tins.
Both kinds aro equally delicious
und cost per cup about tho same.
"There's a Reason" for Postum.
sold by Grocers.
"In 1914, under tho Underwood
tariff, wo imported $28,000,000 worth
of manufactures of iron and steel. (I
shall use round figures to avoid con
fusion.) This was $5,000,000 less
than our importations in 1913, and
$700,000 less than those of 1912.
(461.) How can democratic tariff
policy with respect to the iron and
steel schedule bo held 'responsible
for tho widespread prevailing busi
ness depression and lack of remuner
ative employment,' in view of tho fact
that wo imported less iron and steel
manufactures in 1914 under the Un
derwood tariff than in either of the
two preceding years under tho Payne
Aldrich tariff?
"Take cotton goods. This sched
ule is one of the protection strong
holds. Last year we bought $60,000,
000 worth of manufactured cotton
goods abroad. (457.) But the year
before we bought $66,000,000 worth,
and the year before that nearly $68,
000,000 worth. Now, Mr. Dickey,
how can democratic policy with re
spect o the cotton schedule be held
'responsible for the widespread pre
vailing business depression and lack
of remunerative employment,' in
view of the fact that we imported less
cotton goods last year under the Un
derwood duties than in either of the
two years immediately preceding un
der the Payne-Aldrich duties?
"Look at the return on chemicals.
Under the Underwood law in 1914
we imported chemicals to the value
of $101,000,000. (456.) This was
almost exactly the same as the total
for 1912, but it was more than $13,
000,000 less than the figures for
1913. How can democratic polioy
with respect lo the chemicals sched
ule be held 'responsible for the wide
spread prevailing business depression
and lack of remunerative employ
ment,' in view of the fact that we
imported $13,000,000 less chemicals
in 1914, under the Underwood tariff
act, than we did the year before, un
der the Payne-Aldrich act?
Take Schedule K, wools and wool
ens. This schedule has been Called
tho 'citadel of protection. Hero, on
account of the lowering of rates, im
portations or manufactured Roods in
creased from $17000,000 in 1913 to
$44,000,0u0-nearly 2 2-3 as much.
(467.) But two facts nodd to be re
membered. One is that raw wool im
porta under free, trade, increased al
most $30,000,000 worth.
juviaenuy tne American woolen-.
manuracturers could not have been'
very hard hit, or what use would
they have had for all this raw ma
terial? Nor has tho erownr ftiifprrv
The prices of wool have not fallen on
account of free trade; they averaged
domewhat higher in 1914 than in
1913. The other fact is that of the
99 sorts of woolens scheduled under
the Underwood tariff, 16 are taxed at
50 per cent or over and 60 at 35 per
cent or over, while only 17 aro lower
than 25 per cent, and only five lower
than 20, this last group containing
I .7, , 1,or cent ana fre6 raes,
shoddies and mungo. (See the Pro
tective Tariff Cyclopedia, p. 145.).
Now, Mr. Dickey, you know the
history of the wool and woolen sched
ule, and you remember how North
uuu uobk in senator Aldrich's office
and what Aldrich said about 'the tail
going with the hide.' Do you believe
that the changes in Shedule K aro
responsible for the widespread pre
vailing business depression and lack
of remunerative employment?' If so
how do you reconcile tho belief with
the steady prices for wool and tho
good demand on the nart nf ai
tap0Tt0tS,Stacturor3' rOTeal4
"Let us look hi :
"J- a- che earthenware,
atone and china schedule, a field near
akin to that of your own business.
Our imports last year were a round
million less in value than during the
year before and a little less than for
1912 (457). How can democratic
policy with respect to the earthen
ware, stoneand china schedule be
held 'responsible for the widespread
prevailing business depression and
lack of remunerative employment,' in
view of the fact that We imported less
of these goods under the Underwood
schedules in 1914 than in either of
the two years preceding under the
Payne-Aldrich schedules?
"Last we come to lumber. Here
the Underwood tariff puts us on a
free-trade basis And we imported
lumber in 1914 to the value of a few
hundred thousand dollars less than
in either 1913 or 1912 (466). How
can democratic policy with respect to
the lumber schedule be held 'respon
sible for the widespread prevailing
business depression and lack of re
munerative employment,' in view of
the fact that we imported less lum
ber last year under the Underwood
free trade than in either of the two
years before under Payne-Aldrich
protection?
"Perhaps you feel like exercising,
at this point, the American "privilege
of questioning; the "questioner and in
quiring how The Republic accounts
for the depression in the field of in
ternational trade, if the tariff has had
nothing to do with it? I make haste
to answer. The trouble is that the
other fellows quit buying of us. They
did not 'flood the market' with their
goods. They stopped taking ours.
"The Republic holds that our
business has been depressed because,
as shown by the export statistics con
tained in pages 476-486 of the pub
lication I have been quoting, our
overseas customers took of us in
1914, $13,000,000 less agricultural
Implements, . $12,000,000 less bars
and carriages, ?M, 00 0,0 00 less chem
icals, $27,000,ttCO less copper and
manufactures of copper, $232,000,
000 less cotton $5,000,000 less iron
and steel manufactures, and $39.
000,000 less wool products and man
ufactures. They took $105,000,000
worth more of fdodsiuffs and food
animals than in the previous vear.
but they cut down other purchases
so tremendously that theis total pur
chases were $377,000,000 lead on the
year's trade. They demanded our
gold instead. They bought of us
$287,000,000 less of raw materials
for manufacturing than they did the
year before, $51,000,000 less of man
ufactures for further use in manu
facturing,, fend $161,000,000 less of
finished Manufactures (453). -
"1 do not need to point out to wrii
the fact that this deficiency of $377,
000,000 oiuthe year's business in the
international field means far more
than a loss, of income to that amount
on the part of the specific industries
concerned, grave as Bueii a loss is. As
a practical man, you are familiar with
the fact that receipts from produc
tive industry go at once into the
channels of trade, and that through
the loss Of nearly $400,000,000 of in
come from the failure of the foreign
buyer to purchase goods we were
ready to sell, the United States lost
an overturn of a vastly larger amount
from Its domestic trade.
"Now, Mr. Dickey, I ask you as a
business man whether you ever heard
of a recipe for keeping business
good when your customs ,if .
!Mi?f fl 1 f B? you' aa tt stud6rtt
of the tariff, what possible effect the
fected general business unfavorahw
during 1914. And I challenge yZ
aai critic of the tariff policy of X
democratic party, to say whweln
that policy is embodied and the un
dorwood act is wrong, and what rule
the republican party proposes to foi.
low in reyiaing tho schedule, if it getB
the chance. I do not expect you to
suggest detailed schedules, of course
that would bo absurd. But so far as
general policy goes, what would you
recommend bo done with the iron and
steel schedule, the wool schedule, tho
china and stonewaro schedule, the
lumber schedule?
"I shall be glad to give space to
your reply.
"EDITOR OP THE REPUBLIC"
- AFRAID OF PROSPERITY
The other day the Wall Street
Journal, financial paper, quoted ono
of the leading bankers of New York
thug:
"We shall not have to wait for a
general eleotion before prosperity re
turns, and, the only danger is that
prosperity may "become so great be
fore November, 1916, that it may be
the means of keeping the democratic
party in power."
This gentleman apparently would
sing, "Sweet are the uses of adver
sity." But could there be any plain
er confession that adversity was de
liberately used fpr political purposes?
Could there be any plainer warning
that opposition to a particular polit
ical party is likely to bring news of
adversity that; does not exist? The
changed tone of republican organs of
the "party or nothing" type imme
diately after the election last Novem
ber was proof enough of this. Not
a sign of returning prosperity was
visible on their- horizon up to the eve
Of election, but the very morning af
ter some eager tory organs broke in
to exultant ehahtferover facts they had
known for weeks.
Happily prosperity will not wait on
the permission of political financiers,
but the banket in question confessed
clearly enough that the talk about
the tariff was rot, Milwaukee Journal.
BEGINNING THEIR 1010 CAM
PAIGN The question suggests as to what
the republican opponents of the aa
nUnistratlori, whether they are mem-
fertwi. . hAMMKnti n vnrinllR reDUDli-
can journals, hope to gain by their
continual -despicable nagging cu w
administration. " . .
Partisan advantage, of course. Ana
in attempting to gain party advantage
they are forgetting patriotism at
time when real and practica tfatnoi
ism is needed in this country more
than it has been for years past.
unaersianaaoie hbuw l Lnv lie
that these republicans arc alreaayu
ginnin the campaign for 1916. Thow
tactics are those they are accustom
to employ just before a nation eiw
tion. They are employing then now
when politics and political consider
ation should be forgotten for in
sake of the nation. But tc some re
publicans, their party comes first,
their country second or iw
Schenectady Gazette (Demj.
tariff onn linvn A. t.. . .
uu,v uu HWtt uaiances ex-
oept as it restriots the amount of fer
Sifd? C?llne int0 tn Itfme
dlEni Prt e found in the
detnu&a matistics fdf 1914 nn .
, ouied in the regular official publica
tions ior uie supposition that the
Underwood tariff has in any way af-
A M2SSON IN PATRIOTISM
St. Paul Pioneer Press: When he
Mexican situation reached a cr
last spring, a New York newspaper
Wired dol. W R. Nelson of The , Kan
sab City Star for his views on the aa
ministration. The colonel promptly
wired back: t a(j-
American patriotism now a? it wa
last April.
Ml