The Tariff in Our TimesTarbell, Ida M. (Ida Minerva)
History
The Tariff in Our Times
Tarbell, Ida M. (Ida Minerva)
Tariff -- United States -- History
The duty on thread was lowered in 1909, but there is no rational
interpretation of the doctrine of protection which can defend that which
it still carries. All that the suppliants pretend to ask is enough to
cover the difference in wage cost here and abroad—enough to defend Mr.
Barbour in the United States from Mr. Barbour in Ireland! According to
the calculations of a practical independent thread man doing business in
both countries, the actual difference in 1909 in the cost of production
in Ireland and the United States in well-managed factories was not over
six cents a pound. But the Payne Bill fixes the protection of the three
linen threads most used in shoe-making at 15½ cents, 18¾ cents, and 20
cents. It is doubtful that this reduction is sufficient, now that the
linen thread maker gets his raw material free, to produce any effect at
all on the price to the trade. The duty is still grotesquely
prohibitive.
When one goes over less important but still essential articles of the
household, he finds numbers of them where the price advanced in the
first decade after the Dingley Bill through a tariff-supported trust.
Take the item of starch. From whatever product made it carried under the
bill of 1897 a duty of 1½ cents a pound. Starch and its related products
made from corn are now largely controlled by the Glucose Trust, as it is
called—the Corn Products Company. The Glucose Trust is popularly known
as a Standard Oil concern. That company has, to be sure, issued “A
Protest and a Warning” against the association of the name of the two
concerns. But so long as the headquarters of the Corn Products Company
are 26 Broadway, its president a director of the Standard Oil Company
and four of its directors on the Board of Directors of the Standard Oil
Company, the protest and warning will have little influence on a cynical
public. In a statement presented at the recent tariff hearings a
complainant said that since the formation of the Glucose Trust in 1902,
in spite of many improvements, chemical and mechanical, corn starch
which for years had sold at $1.00 to $1.50 per 100 pounds in New York
sold in car-load lots at $2.65 per 100 pounds! Without the tariff, this
combination could not last a day for both England and Germany could
compete with them. Not only compete in price, but outstrip them in
quality, for naturally enough concerns like the Glucose Trust
controlling a market are indifferent to quality. Quality is a thing
which men are driven to by the fear of a rival taking their market. Take
this fear away and you get inferior goods—that is, the poor are not only
obliged under the protective tariff to _pay_ more, but to _buy_ more.
Our potato starch factories also do not pretend to compete in quality
with the German concerns in spite of the higher prices they get. They
are not obliged to make the best goods. Their market is secure without
it.
Public-domain text, read in full here on John Shaqi.
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