CONTENTS

I THE PRESENT POSITION OF THE DOCTRINE OF FREE

TRADE

The doctrine of free trade apparently triumphant in 1870.-
Subsequent reaction.- Tenacious hold of ancient fallacies.
- Protection and wages.- Dumping.- Agricultural compe-
tition and political problems.- Protection to young in-
dustries. The causes of economic progress.- England,
Germany, the United States.- Intensification of national
feeling. Attitude of economists.- Conclusion.

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II ABRAHAM LINCOLN ON THE TARIFF: A MYTH

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1

'Keeping the goods and the money": a myth. A sequel.-

Epilog.

III HOW THE TARIFF AFFECTS WAGES

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Widespread belief in the United States that the tariff raises
wages.- Familiar facts inconsistent with the belief. The
volume and variety of our exports.- Great Britain not under-
sold by British India.- Trade relations between Great Britain
and Germany.-Does the Tariff, though not the cause of high
wages, serve to keep them up? - It does in those competitive
industries in which effectiveness is not high.- Results to be
expected from abolition of duties.- Improbability of any
abrupt change.-Cases of labor monopoly.- Causes of the
general and dominant productiveness of American industry.-
"Efficiency" and effectiveness in manufacturing indus-
tries. Significance of low wages in certain manufacturing
industries.- Conclusion.

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Wages and other money incomes, not prices, the important

thing.- High wages consistent with low prices where there

is effectiveness of labor.-"Domestic commodities" not neces-

sarily high in price in countries where money wages are high.

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70

Bitterness of trade rivalry.— Foreign trade enriches a

not by bringing in money, but through the exchang

ports for imports.-The mechanism of internation

and the effects on it of the war.- The fundamental f

promoting exports is the effectiveness of labor and

Four devices for promoting export trade, (1)

bounties, (2) special transportation rates for exp

ness, (3) special prices by producers on export sales,

cessions in rates of duty secured from foreign cou

Attitude of the United States in international trade a

national politics.— The open door.

VI RECIPROCITY

Effects of different forms of reciprocity.- Limited re

or reductions of duty.- Hawaiian sugar.- Europe

procity arrangements after 1860.- Another method, &

McKinley tariff act of 1890: imposition of special

Effects in the United States and in foreign cou

Conclusion.

VII COST OF PRODUCTION AND THE TARIFF .

The plan of basing tariff rates on differences in cost

duction.- Worthless as a solution of the tariff o

Consistently applied, it means not moderate dut

universal and unlimited protection.— Difference betw
free-trader's point of view and the protectionist's.— E
ness of labor in relation to proposed equalization of
Cost inquiries nevertheless desirable.- Dependency o
facturing industries on protection exaggerated.- Dep
of universal prosperity on the tariff even more exag

VIII AN INQUIRY ON THE COSTS OF WOOL and W

Report of the Tariff Board of 1910 on wool and wo

How costs of wool were calculated.- Conclusions

expediency of a duty on raw wool.- Costs of wooler

Light on the compensating system. The ques

principle.

X THE PROPOSAL FOR A TARIFF COMMISSION

XI

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No tariff commission can settle policies.- No scientific solu-

tion. A tariff commission nevertheless can do good.- Evils

of traditional methods.- What kind of commission is desir-

able.- Advantages and disadvantages of a permanent com-

mission.― Non-partisan investigation needed in any case.

TARIFF PROBLEMS AFTER THE WAR.

Three classes of articles: military, essential, non-essential.-

(1) Military articles; the choice between tariff duties and

other methods.- Special situation of the coal tar and dye-

stuffs industries.-(2) Essential articles; potash as an ex-

ample.-(3) Non-essential articles; the tariff controversy

pure and simple.— Various shades of opinion.- What a tariff.

commission can accomplish.

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