Show I balance of trade Basis of Protective Tariffs is One Vast Mistake Lo men Elding exactly opinions on the tariff are Vice President Senator Smoot of p declare that when this na-Haim ports goods that could have IE made at then our own labor has been to precisely that extent Ill A Plausible plausible and common is today the basis of the man's totally is the real U main reason for the recent of that party in State This good-sounding K the employment of our own Br at home instead of the em-Kment of foreign labor abroad the one idea that has kept test Republicans in line despite Kie other faults proved and now Kely admitted against the party as a And while K idea remains in any man's he is likely to go on voting Ik men who will in turn vote to every day a large part earnings to the trusts and combinations that at much of the financial of our Upward Revision Smoot says he is not rejoices at the recent of because he that imports prevent our industries from at Ogden President Sherman said at that the increase in im-SJ should lead the people whether Then we again ge the it will not be Sary to check a sentiment for downward and resort to a re- E 11 upward in some ward revision will be the S if the vice president Utah senator can have gr I Is Utah President Sherman has delved in New York by nearly every in all the progressive or jit states has been defeated Republican President Taft himself now appears to have gone over to the in Even Illinois is despite Speaker Cannon's Utah alone in favor of high and special privileges her congressmen therefore out against the sentiment of the nation as a and they wil be in a hopeless minority in case they all return to What will Utah What Protectionists Those who have never read J. B. or Adam Smith or John Stuart or or or or any of the host of others who have written treatises on are quite easily led to with Vice President Sherman and Senator that to import goods will drive our own labor out of employment and will drain the country of its money to pay for But a greater error was never put into The simple fact is and here the vice president and the senator are at sea that the more products we the more we shall import to pay for for imports are simply the pay for The Lesson to Be This is the lesson that every protectionist must sometime learn this lesson was perhaps the greatest surprise of my as protectionist father having taught me the orthodox version of to home I opened Say's Political and read the following proof of this so strange to many or any other of foreign-made goods come into a it must not be supposed that in money will be sent out of the country to pay for the imported nor that worth of home labor has been displaced by the The of less value at fact is that goods home have been exchanged for goods of greater value from and the import is simply the pay for the labor engaged in-making the goods that were In this one paragraph we find the solution of the This is the great truth that every economist proves and Excepting in a few American the authors have basely tried to becloud this great no writer on political economy has been able to explain exchange between nations giving this proof in great and with the The vice president admits that our country has a strange ability absorb the imports in addition to the absorption of domestic But why shouldn't we have ability to absorb the Any productive peo- pie have only non-producing like the fail to cue ability to imports' lor communities alone get none of them and they and their like are the only communities that this old world can and it is of any such A people without imports are always they are often are mostly Protection's Says exports should exceed our imports Dy some to annually in order to make good our obligations and prevent the export of Our exports have nearly every year exceeded our imports by these the of in our favor now reaches some two billions of yet this balance never comes it never can come it represents that much American labor and capital invested in other glands and giving employment to and the protection-list's dream that this is paid in money or or every ten or at any other is the greatest delusion that possesses the minds of the those blind of the blind that have led the f country into the ditches of sugar oil food and the high prices of all trust-made The Real Here is the fact But for at the custom f our imports would usually be greater in value our than our otherwise there would be no gain in For it from the vice dent's own that foreign nations do not send gold and ver to pay up this mysterious of that is forever and yet never being paid While he asserts that our amount to or he actually shows that these are paid for in while arguing that the foreign obligations to if similarly paid in displace American and are therefore a curse instead of a Hear great increase in our imports is the displacement of American Just the for when a yard of silk is imported from that is only because some American farmer or other worker has produced a surplus and sent it the silk being the pay for the labor that produced the When a silk maker asks for protection against French silk factories he is really asking for protection against all Americans who are exporting surplus No silk or other foreign goods will come except as beef or other American products purchase Stop exporting and you can stop there is no other way of stopping The Balance of just consider calmly the plausible theory that if a nation imports more than it it will have to pay the in gold or Britain each year imports half a billion dollars' worth of goods over and above what she but she has never yet been drained of her money to pay the In there is not enough coin in existence in all nations pay off this of one single nation for twenty What is this It is England's gain by What is our own so-called It is what the country loses each year to Europe by payment of It does not it has never though it now aggregates two It has gone to other is due to a mere of What We Let us prove it right here at The vice president's main contention is that importing goods displaces American labor and takes away American The argument is very but without the least foundation in For consider what happens when the C. M. I. or Auerbach's imports a car load of worth let us and when all the other city merchants import enough to total in a few Does that amount of money go to New York and Chicago to for these Not at for Cache valley sends bushels of grain at per Sanpete still Park City and Bingham send their hundreds of thousands of ore and all the counties send the in every few equals or exceeds the value of the total Goods Pay for Ask a banker whether or not a car load of gold and silver is shipped every six months to Chicago and New and he will tell you that local merchants simply buy drafts and send these slips of paper to pay for the goods they the banks keeping the money right here in their And those who buy our likewise buy drafts from the banks in Chicago and New York to pay for these goods which we send to These drafts represent and money represents the and the goods represent we buy eastern goods and pay with the east buys our goods and pays with what is it that has really been exchanged between the two Goods and bits of paper in a while a little The only values that have actually been transported both ways are the Money real money has not moved at all only slips of while the real money has stayed right at home doing its work where it Only goods have changed and since goods represent the labor of one section has been exchanged for the labor of another section each section has given profitable employment to the labor in the other and without this beneficial exchange great deal of industry must stop and many laborers must be idle in both Stop this exchange importing for one and any community will be practically and will have like the In a The whole truth and nothing but the truth about the entire question is simply A Scotch firm will produce a ton of pig iron and send it to us for while Scottish merchants will accept ten bushels of American wheat or three pairs of American shoes in payment for the If the government permits this American farmers and shoemakers will supply us with all the iron we need at per ton and will compel the steel I trusts to sell at that But if America retains a tax of per ton on imported pig the trusts will sell at per ton and so will the importers the agents of the The difference will be that it now takes 15 bushels of wheat or five pairs of shoes to get the and America pays onel third more for all her oa the protection theory that it la better to have the trusts make the iron at than to let the ers produce it by exchange at This country thus loses by all the advantages to us by tC Chinese will furnish us with and exchange for implement They get but 10 cent per our labor gets twenty times that Hence they work 20 days for us if we work one day for We raise but it would cost than to raise wheat and then ei change for And if we go II raising the Chinese will goJ raising then they will dI cover our secret and will not eg exchange with us as our labor will have run Chinese labor out of work worth only 10 cents a they will have taken our work that is worth per It therefore follows that best characterization of a tive tariff bill that I have W seen was given by John A. Kasson in He SL title of the tariff bill be changed to bill to vent the diffused Providence from being the people of the United |