lling them tbs1
ig to buy yo«
s," he charged
; in the electicn
lem any got*
ed Mr. Prim
gone the otbt!
jch things. V
things in tertf
e it if some <
imc to us.
: — what I ha'
iho wants 01
aks a day. a
I r. Castle kn<*
s in newspapd
Henry Clay once said, "The call for free trade is as unavailing as the cry of a spoiled child for the moon. It
Ver has existed; it never will exist."
Thomas Jefferson, although one of the strongest proponents of free trade in American history, tempered this
°l with protection for American industry when he said, "I have come to a resolution myself, as I hope every good
len will, never again to purchase any article of foreign manufacture which can be had of American make, be
difference of price what it may."
Today the call for free trade is gaining an ever louder and more insistent voice.
Senator William E. Jenner (R-lnd.), on a recent Facts Forum radio program, said in effect that without tariffs to
rs of AmeriCifotect American-made articles from the competition of articles produced abroad in countries where the cost of living
y you are gO»J 'ess, American industries would suffer.
rough the leg1 Congressman Richard E. tankford (D-Md.) contends that the United States, in order to fulfill its role in the world,
Units the <"'ijSt acf wjth more consistency _ mat we cannot combine political internationalism with economic isolationism.
!vs "behind ^ Which philosophy meets with your approval? The remarks of these able legislators may be of assistance to you
like we are d< r6Qching your own informed opinion.
h Radio F«
,., . hefk) K.N s"m JknnEH: We have heard a
e been used effectively by
commercial nation in the world.
rl t- reall 'ot °' arguments in recent years
Mr° Castle, against tari,fs' Wllil<' v"" hear
' i.l -.1. I °f the talking, one might believe
ven though ' m . ... =J
_ b a lse ' tar'tts are some evil device m-
_i eCU ,nd J1''''' Dy RepubUcan senators to stifle
real news an" L^-^, ^ N fa ^^
, ,A.y the truth,
t we should ' f. .
t^i t u„„ .'"uls were invented centuries ago
Khrushchev y , *»
Mr. Castle L '
'I certainly I Qwn ^.^ ^^ ^ ^^
i ■ v si i tlle first United States Congress.
.:','." , '^ p'Tpose, as pointed out by Alexan-
° C^i,i I Hamilton, was to give American
cving our Ch1 inxiry a (.||a||(.r, (() s|ar((,(] m ^
to Moscowri lof Hr.jtjs|i (,,,mp,,liti(,n xjjeBrit.
rders on the* 'government tried to keep the eolo-
;'• Jiut "iy (7 from building industry as a part
Id be that L exploitation program. When the
,y home. It v feies won in(lependence they k]1(.w
.tographed, ' t ind,lstry was necessary to raise
will have t' 'national living standard and for
iy way ot hse. In fact, one of the reasons we
Hnued on /<<" Pst lost the War of 1812 was that
United States industry could not produce enough weapons. As American
industry grew, and with it its wage
scale, tariffs were needed to protect
American living standards against
Cheap foreign labor, because nowhere
in the world had wages gone so high
as in the United States.
Thus, the tariff became a "cost of
living" tax on goods produced by
cheap foreign labor. The tariff system
now works like this. Suppose it costs
three dollars to make a shirt in Massachusetts: two dollars for labor and one
dollar for material. The same shirt in
another country where wages were
hall as high would only cost two dollars: one dollar for labor and one dollar for material. If these foreign shirts
could be freely imported into the
United States, they would drive American shirts from the market, throw
thousands of textile workers out of
jobs, and the dollar saved would be
lost many times over in unemployment
vs, August, iv-iA, Forum News, August, 1956
benefits and lost wages.
All of this would happen, not because our shirts are inferior, but because American workers have a high
living standard. Actually, conditions
would be much worse than in this
example, because there are very few
countries in which workers get anything close to half the American wage.
In some areas of the world, a good
wage amounts to no more than a few
cents a day. That is where tariffs come
in. Tariff laws put a tax on foreign-
produced material which takes care of
the difference in wage rates, thus giving American-made goods an ecpial
chance with foreign-made products.
In the case of our shirt, the tariff
ought to be one dollar. Naturally, this
is a simplified example since many
other factors enter into production
costs, such as mechanization, relative
efficiency, and better management. A
reciprocal trade program is a system
of mutual tariff-cutting between two