BRGE, MAS

H. A. METZ & CO.
Aniline and Alizarine Colors,
Dyestuffs and Chemicals

Sole Licensees and Importers of the Products of FARBWERKE, vormals MEISTER LUCIUS BRUENING Hoechst-on-Main, Germany 122 Hudson Street, New York, N. Y. 140 Oliver Street, Boston, Mass. 104 Chestnut Street, Philadelphia, Pa. 23 So. Main Street, Providence, R. I. 317 No. Clark Street, Chicago, Ill. 210 So. Tyron Street, Charlotte, N. C. 1418 Empire Building, Atlanta, Ga. 20-22 Natoma Street, San Francisco, Cal. 45 Alexander Street, Montreal, Canada 28 Wellington Street, Toronto, Canada

MEMBERSHIPS IN THE AMERICAN PROTECTIVE TARIFF LEAGUE

EXPLAINED BY

THE FOLLOWING PLEDGE: The undersigned hereby declares his devotion to American industrial independence and pledges himself to pav to the American Protective Tariff League annually the sum of One Hundred Dollars (or so much thereof as may be called for in any year by the Executive Committee), with the privilege of terminating this obligation by giving written notice to the General Secretary of the League on or before December 31 for each year thereafter.

sh Logwood.

Haematines.

Fustic.

Logwood Crystals.

Aniline Colors.

New York

Philadelphia

Boston

THE LINEN THREAD COMPANY

FLAX THREADS and YARNS

96-98 FRANKLIN ST., NEW YORK BOSTON, CHICAGO, PHILADELPHIA, ST. LOUIS, CINCINNATI, SAN FRANCISCO.

Olmsted & Tuttle Company

CHICOPEE, MASS.

Contractors with Cotton Mills for all their prod ucts of Waste. Manufacturers of Wiping and Packing Waste; "Fleece Filled" Layer Mattresses, Pillows and Cushions; Carpet Linings, Comfortables, Wadding, Caulking Cotton, House 15.

{ $2.00 A YEAR.

SINGLE COPY, 5 CENTS.

DYESTUFFS

for all advanced

processes of

Textile Coloring

CASSELLA COLOR

COMPANY

182-184 Front Street, New York

"EXCHANGE VALUE OF FARM PRODUCTS"

is the title of a speech made by U. S. Senator Reed Smoot, of Utah, August 26, 1912.

This speech has been issued in document form by the American Protective Tariff League as Document No. 99. Send postal card request for free copy

Miller Bros.' Steel Pens

Are American and the Best
Miller Bros. Cutlery Co., Meriden, Conn.
Manufacturers

STEEL PENS, INK ERASERS & POCKET CUTLERY

M. A. HANNA & CO. Coal, Iron Ore and Pig Iron CLEVELAND, OHIO

MERIDEN CUTLERY CO.
Fine Table Cutlery

MERIDEN, CONN.

New York Office

Philadelphia

"The Vital Issue Before the American People.

A reproduction of the great speech of Hon. Joseph W. Fordney, M.C., of Michigan, a member of the Ways and Means Committee of Congress.

One copy will be furnished free to any person sending a postal card request asking for document No. 93. Address

W. F. Wakeman, Secretary.
339 Broadway, New York.

21 Murray Street

American Manufacturing Co.

Manufacturers of

CORDAGE

Noble and West Sts.

Brooklyn, N. Y.

THE SOLVAY PROCESS COMPANY Manufacturers of Alkali, Carbonates Caustic and Crystal SYRACUSE, N. Y. DETROIT, MICH. HUTCHINSON, KAN.

COLLEGE

VOLUME LIV-No. 1.

REVOLUTION IN HOME INDUSTRIES.

Free-Trade Enables Foreign Manufacturers to Take Possession of American Plants.

Correspondence AMERICAN ECONOMIST. WASHINGTON, D. C., July 2.—One of the most striking evidences of the change which has been brought about by the new Tariff is shown in the announcement that the Baldwin Steel Company plant at Charleston, W. Va., has been purchased by a German company and in a short time will be remodeled for making special grades for tools and engine building especially automobile engines.

There have been any number of instances of American manufacturers going abroad to take advantage of the cheap labor of foreign countries and at the same time utilize the open market under the American Tariff law. With the balance of trade going against the United States it is clear that the exodus of American manufacturers will continue until a Protective Tariff is restored.

Steel Ingots Made in Germany. Another danger is now shown to confront the United States in the migration of foreign manufacturers to this country. The German company which has purchased the Baldwin Steel Company plant will supply the American plant with steel ingots made in its home plant at Rhineland, Germany, to be finished here, the duty on raw steel being practically removed.

The new owner of the Baldwin plant is called the Stahlwerk-Becker-A. G. Willich Company. Reinold Becker, the director general, was in America until recently concluding the deal, and has returned to Germany and will send back a technical engineer.

In this way the company gets the advantage of low-priced labor for its raw material and escapes the higher duty on its finished product, in this country, by operating a finishing mill here.

Business Done by Present Company.

For years this company has had a selling agency in America under the name of the Becker Steel Company, in New York, that handled all of its American business. It is understod that the new order of things will do away with this selling agency and all business will be done by the parent company through its American branch.

The German enterprise is one of the first in the steel line to enter American

markets in this manner since the new Tariff law became effective. The competition is mainly with high-grade steel makers and crucible producers.

A Favorable Movement.

The foreign view of the situation created by our new Tariff law is revealed in the consular reports, which show an increased cost in all our markets. The foreign manufacturer is busy supplying our home market. The foreign middleman is also taking advantage of the plight of our own manufacturers and merchants. All this tends to unsettle American business and displace American goods. Witness the solicitude of a Belgian agent who is prepared to furnish low-priced goods for American

con

sumers in various lines, from pig iron to cotton and woolen blankets. In his letter the Brussels, Belgium, manufacturer says:

DEAR SIRS: As the new American Tariff suppresses the customs duties for a certain number of raw and half-prepared material and diminishes for a great part these same duties on the finished goods, I think that the moment is favorable for the offering you my services.

I therefore beg to ask you to kindly let me know with all particulars, i. e., by sending me, if possible, complete specifications pro forma invoices re the following Belgian articles, which I am in a position to supply promptly and at very low prices:

Every description of cast iron, iron and steel; pig iron for foundry use; blooms, billets, slabs; merchant iron and steel, round, square and flat; ears for making turned shafting a specialty; sheet iron of any description; hoop iron; rails, beams, T, U, varillas, American section and weights; steel constructional works, bridges and roof trusses, riveted girders; cast iron pipes for water supplies, and all re metallurgy.

Portland cement of any specification, packed in bags or barrels of any weight, at buyer's option. Window glass of any size and thickness. Polished plate glass, beveled or not, plated or not. Textile fabrics of any kind. Cotton and woolen blankets, linen cloth drills or trousers.

I trust that you will send me a full description of the orders which you may eventually put before me, and I shall hasten to quote you immediately my lowest prices. In the event that my offer would be of no interest to you, I should be greatly obliged if you would hand it over to some friend of yours, who could eventually purchase articles of Belgian manufacture.

The best commercial and bank references are at your disposal.

BRUSSELS, Belgium, November 7, 1913.

Another evidence of the manner in which American gold, which might be circulating in America for American products, goes out of the country for the encouragement of foreign manufacturers and the employment of foreign labor is the influx of foreign goods as advertised by the great department stores. Southern Manufacturers Hurt by Free-Trade. It is not only in the East, but in the solid Democratic South, that complaint is being made against the effects of the

$2.00 A YEAR. SINGLE COPY, 5 CENTS.

Underwood-Simmons Tariff law. The following three letters from Southern manufacturers tell the story of Democratic discontent:

EDWARDS MILLS, ATHENS, Ga., May 28, 1914 J. Hampton Moore, Washington, D. C. DEAR SIR: Replying to your letter of May 27 in regard to cotton mills in Georgia running full tilt. In this section around Athens there are nine cotton mills. One of these is running full time, the balance all running four days in the week, and have been for some time. Business this year with us has been the worst yet. Whether this is due to the Tariff law we can't say. We have not been able to sell our product this year, so had to cut down running. Could not get near cost for yarns, so we quit making it. We hear that many mills in the South are running three or four days a week, and some closed down entirely. L. F. EDWards. GASTONIA, N. C., May 28, 1914. Hon. J. Hampton Moore, M.C., Washington, D. C.

DEAR SIR: Replying to your favor of the 27th, we are operating only one-half of our machinery, and have not been able to run that only at a loss for some time.

This mill was erected during the year 1912 and was equipped with the most modern machinery we could buy at that time. We manufacture 8s to 20s. Yours truly,

C. B. ARMSTRONG. MOUNT HOLLY, N. C., May 29, 1914. Hon. J. Hampton Moore,

House of Representatives, Washington, D. C. DEAR SIR: In reply to your favor of the 27th inst., I beg to say that we find the market conditions in our business at present very unsatisfac. tory. While we are running short time at present on old orders, we find it almost impossible to sell further quantities of yarns in sufficient quantities to take up our full production at popular prices. The prices we are offered in most all instances are below the cost of production, and, as we see the conditions at present, it seems that very soon we will of necessity have to close down for a while and await the improvement of prices for our product. Yours very truly,

TUCKASEEGEE MANUFACTURING CO., H. A. Rhyne, Secretary and Treasurer. Diminished Employment and Wages. What is happening in the East is shown in the following letter received by Congressman J. Hampton Moore, of Philadelphia, from the Brown-Aberle Company, of Philadelphia:

PHILADELPHIA, June 8, 1914.

View of a Wide-Awake American Business Man After Studying Business Conditions Abroad.

Manufacturers' News. Upward revision of the Tariff must be ordered by Congress before prosperity returns to this country, in the opinion of George R. Meyercord, one of the directors of the Illinois Manufacturers' Association.

Mr. Meyercord expressed the opinion on his return from several weeks' study of conditions abroad.

"Protection for our industries is the foundation of our national prosperity," said Mr. Meyercord, "and the quicker the present administration realizes this fact the better it will be for our manufacturers and business men and working people. If the administration does not realize this quickly enough there will be a change in the administration. people are beginning to wake up from the low Tariff dream.

Our

"I found England more prosperous than it had been in a decade, everybody working overtime on American orders, and it is entirely due to the market opened in the United States by the removal of our Tariff upon textiles, hardware, cutlery and other manufactured products that England can supply at less cost than this country, because it does not have to pay the wages of the industries in the United States.

Many American Buyers in Germany. "I never saw so many American buyers as there were in Germany. They had engaged all the hotel accommodations in the industrial towns. They were buying everything in the manufacturing line you could think of, and every purchase they made means that much less work for our own people. It was the same in Switzerland and France. Our downward Tariff revision has been an excellent thing for Europe.

"European manufacturers and European workmen are fattening at the expense of the United States. The textile mills in England are working overtime, while ours have laid off men. A similar condition prevails in the steel, iron and other industries. As a consequence hundreds of thousands of people are out of employment in this country. The number of unemployed will increase rather than decrease. An unprecedented grain crop such as now is indicated will help considerably. Possibly there will be a temporary prosperity in the fall, but I look for an extremely hard winter. There must be a complete reversal of the Tariff policy of the present administration?"

Reduced the Cost of Living, But"Has not the lowered Tariff reduced the cost of living?" Mr. Meyercord was asked.

"In some respects it has," he admitted.

haven't the money to take advantage of lower prices and either are out of employment or are anticipating lack of work or decreasing business, and so are compelled to retrench in their expenses? A wave of economy has swept over the land, and everyone knows what that means. It means less business for everybody."

"But cannot our manufacturers, by increasing their efficiency along the lines recommended by Secretary of Commerce William C. Redfield, compete successfully with the cheaper European products ?"

No Efficiency on a Falling Market. "That suggestion of Mr. Redfield's is asinine, and we are not hearing so much along that fine as when he first assumed office. How can efficiency of production be increased or even maintained on a falling market? To operate at the highest degree of efficiency there must be plenty of business and plenty of employes. How can a man operate his plant efficiently with a greatly reduced working force? There's no use of talking efficiency on a falling bunch of orders. You might as well talk of increasing the efficiency of the White Sox after reducing the force from twenty-four to fourteen men. You can imagine how much efficiency you would obtain under such a condition, can't you?"

"The theory has been," it was suggested, "that what trade our manufacturers lost in the domestic market would be more than overbalanced by increased foreign business."

Foreign Trade Falls Off.

"The fallacy of that argument never has been more apparent since the returns have begun to reach us," Mr. Meyercord answered, "I noticed in last week's edition of Manufacturers' News that for last April alone there was a decrease of more than $37,000,000 in the value of exports from this country and an increase of more than $27,000,000 in the value of imports, as compared with April, 1913. That tells the story, for most of these exports and imports are manufactured products. Where is the foreign trade we were going to secure? There are some lines of manufactured articles that we are exporting in considerable quantity, because there is no competition in them by foreign manufacturers, chiefly because our products are controlled by patents, but God help us when the patent rights expire.

First Cost of Production.

"Our foreign trade is co-existent upon our domestic trade, and a little reflection will make this easy to understand. Export trade is founded upon an artificial condition. It has been possible for us in the past to do good export business entirely, because the first costs of production have been lessened by a good local market. Our inventions, our pat

terns, our dies, our machinery, enter into first cost of production.. By a large sale of manufactured products in this country we have been enabled to cheapen the cost of production so that we have been in a position to sell our surplus abroad at prices that would allow us to successfully compete with foreign industries. We cannot do this on a falling market. We must produce our manufactured articles in great quantity, and we must not only produce them but we must sell them in great quantity if we are to get any foreign trade that is worth while. Falling' domestic consumption makes it impossible for us to compete with foreign manufacturers in their own countries except in lines where there is little or no competition.

Can't Reduce Wages.

"We shall have to go back to the old Tariff. The unions will not permit the reduction of wages in this country so that we can compete successfully with foreign manufacturers. Lowered Tariffs have reduced the cost of living to some extent, but this is balanced by loss of employment, and if freight rates are advanced the cost of living will be higher than ever."

Mr. Meyercord has given Tariff conditions as much study or more than any manufacturer in Illinois. He is president of the Meyercord Company, Inc., Chicago, manufacturers of decalcomania transfers, and also is president of the Vitrolite Company, of Parkersburg, W. Va. He is chairman of the Tariff committee of the National Association of Employing Lithographers, and has taken an active part in all the deliberations concerning the Tariff in Washington.

Even the South Protests.

We used to hear much about Liverpool markets, and how they fixed the price of grain in our own markets. All that is true under Free-Trade, and it is equally true that the price of our corn is now governed by the price of corn in Argentina, South America. We have come to that; it is the modern "A. B. C. Arbitration" which comes close to farmers. Even in the South, the farmers are complaining of the Tariff's effect upon their products. The Texas Stockman and Farmer says:

"The fact is that the new Tariff is playing havoc with the producers of the South."-Northwestern Agriculturist.

Swat the Free-Trade Microbe.

There is a microbe more death-dealing to our homes and nation than those "harped" about in the medical journals. And it lurks right among us--the tendency to Free-Trade with foreign countries. The farmers of the country should continue to swat this pest. We may not be able to put it out of business permanently, but we can make it so sick that it can't do much damage. Swat continually. -Clintonwood (Va.) Moon.

That American Business Men Should Make Themselves Felt in Political Affairs.

When

PROTECTIVE

Albany Journal. THE AMERICAN TARIFF LEAGUE held its annual meeting last January it adopted, by unanimous vote, a resolution declaring that

It is in the power and certainly within the rights of American business men to exert a potential influence in American politics. Business has rights which politicians are bound to respect. To the end that these rights shall be respected THE AMERICAN PROTECTIVE TARIFF LEAGUE recommends and urges a larger participation in It is imporpolitical affairs by business men. tant that they shall exert increased influence in public affairs. More business men in politics are needed for the Congressional, State and Presidential campaigns of 1914 and 1916, if the public business is to be conducted with intelligent and sane regard for the business needs and the prosperity of the country.

Should Become Politicians. Speaking before the New York State Bankers' Association at New London, Frank A. Vanderlip, president of the National City Bank of New York, brought out the same idea. He said he believed in solidarity of effort on the part of business men, in effective organization to impress upon the public and the Congress their views about legislation.

"Instead of denouncing politicians," he declared, "I tell you you should become politicians. If intelligence, experience, success, proved genius for administration, trained executive powersand these are the qualities business men are supposed to have-are not to rule in a democracy, then so much the worse for the democracy. To-day business is practically unrepresented in Congress. Wealth, even success, is felt so to militate against a man in public life as practically to exclude him from preferment. We have no reason to be ashamed of being business men; we have great reason to be proud of it."

The Power, the Right and the Duty. The time has come when not only it is in the power and within the right, but also it is a duty, of American business men to make themselves felt in politics. Unless they perform that duty, which they owe to the public and to themselves alike, they may soon be left in a position where they will be powerless.

It has come to pass that in high official circles business is regarded as something to be tolerated only, and to be hedged in with all possible restrictive regulations. On that theory all legislation is shaped. And always there is clamor for more hostile legislation.

Business Has Rights. Business has indeed rights which are entitled to respect. They must be asserted, else business will fall into decay, and adversity will come upon the people of this country. Agricultural prosperity alone cannot make general prosperity. Commerce and industry must be reasonably free to be active, to expand, to ad

vance.

In a few months there will be opportunity so to change the personnel of the lower house of the Congress that the legitimate interests of the country will

And the right kind of a change in the personnel, in the political complexion, of the House of Representatives will have the effect-which is of paramount importance just now-of discouraging foreign manufacturers from proceeding to expand the capacity of their establishments for the purpose of invading more forcefully the American markets which the Democratic low Tariff policy put in operation has opened to them without regard for the legitimate interests of American producers.

The only reason why the effects of Tariff reduction have not yet been felt more severely in the United States is that foreign producers were not prepared to take full advantage of the opportunity held out to them by the Democratic party.

Foreigners Are Hesitating.

They are hesitating yet, since it must seem unbelievable to them that the people of the United States will keep in control of their affairs a party whose policies are such that they favor foreign industries and place home industries at a disadvantage. They are waiting for the outcome of the Congressional elections next November. If those should send another Democratic majority to the House the foreigners would regard that as a signal for them to proceed on the assumption that their advantage in the United States could be regarded as per

manent.

But if a Republican majority is sent to the House the foreigners will know that their advantage will remain only until it will be possible for the American people to oust the Democratic party completely and restore the Republican party to power, in order that to American industries and American labor may be restored the degree of Protection to which they are justly entitled because of the difference in the cost of production at home and abroad.

Should Do Their Share.

It behooves the business men of this country to do their share toward the election of a Republican majority to the House of Representatives. Intelligent workingmen, who can see causes and their effects, can be relied upon to do their share. All others who want to see conditions restored under which this nation experienced its greatest prospèrity, will give their aid.

Already the wits of Americans have been whetted sufficiently to enable them to perceive that the Democratic party is the same that it always was, and its activities are producing the same effects which they produced twenty years ago. It will be possible materially to shorten

the period of "psychological depression" by sending a physical Republican majority to the House next November.

Our Fishermen Have Suffered. The free fish provision in the Democratic Tariff law seems to be of far greater benefit to the Canadian and Newfoundland fishermen than to the fishing interests of Gloucester or the fish-consuming public of the United States. So great has been the injury inflicted on the Gloucester fishermen that they are sending A. Piatt Andrew to Washington to ask Secretary of State Bryan to open negotiations with Canada and Newfoundland with a view to securing equal rights for American fishermen in Nova Scotia and Newfoundland waters, without which they will be unable to compete successfully with their Tariff-favored rivals. Some of the great fish-handling companies in Gloucester seem to have profited by the removal of the duty on fish, but the public has not been benefited to any large extent thereby, and the real fishermen of Gloucester, the men that risk the perils of the sea in pursuing their calling, have suffered materially from the Democratic plan of throwing the doors wide open to foreign competition without exacting anything in return.-Springfield (Mass.) Union.

How Much Argentine Corn? Democratic papers are attempting to convince intelligent Indiana farmers that Argentine corn let into the country by Free-Trade Tariff will have no ruinous effect on prices paid the American farmer. As a matter of fact the present crop of Argentina is estimated at 400,000,000 bushels, and that country consumes only 60,000,000 bushels for its own use. A mere "drop in the bucket" attitude toward these 400,000,000 bushels of corn which hav no Tariff to exclude them from the American market is a brave bluff that the American farmer will call before long. Monday's Chicago grain market report states that "corn made a little better showing last week, helped by a better call from the East and by stormy weather in Argentina."

ว

Yet in the face of the fact that Chicago markets vary with Argentine weather reports, some Democrats will protest that the corn Tariff is O. K.Winamac (Ind.) Republican.

Investments are not made for fear that the ordinary profit in return for risk will not be permitted. That is the psychological condition. Until that bear is removed investment will be slow and the markets which depend upon investment weak. Add to this the loss of domestic markets by our manufacturers by reason of the reduction of the Tariff and we have the physical causes of the psychological conditions which the President truthfully says prevail.-San Francisco Chronicle.