§ 16. The return to high tariff, 1921. With the ending of warfare in November, 1918, began to be heard anew the agitation for higher duties. Some industries, such as the chemical, which had sprung up during the war, saw their end if, and when, German trade was resumed. The financial depression about the middle of 1920 further stimulated the demand from many quarters for a return to high protective duties to "give employment to our labor." The demand for a prohibitive tariff is always heard at such times. Our prediction made in 1916 was that12 the conclusion of the war must bring a new readjustment that must cause a severe shock to some enterprises and this must have been so under any possible variety of tariff, for such changes are logically related to the subject of financial crises rather than to that of the tariff.13 Further it was said at that time: " Under various pretexts, such as the danger of a flood of cheap goods after the close of the great war, attempts will be made to make the tariff still more prohibitive. If the attempt is made through temporary rates to reduce the shock of the trade adjustments, of the 'dumping' after the war, then the devising and administration of such measures should be delegated to an expert, disinterested, permanent tariff board. The task is to prevent temporary 'unfair competition' and sudden changes, rather than to raise permanent barriers to fair trade."

The sweeping victory of the Republican party in November, 1920, was probably aided in some part by the belief that higher protective duties would remedy the situation. Agricultural interests were particularly hard hit by falling prices due to the closing of European markets because American credit was suddenly withdrawn. So temporary acts providing for higher duties on both manufactured and agricultural products were passed in 1921, and the country moves again toward a period of higher duties.

12 First edition of this work, pp. 23G, 238.

13 See below, ch. 16, § 13.                                                       

References

Johnson, E. R., Van Metre, T. W., Huebner, G. G., and Hanchett,

D. S., History of domestic and foreign commerce of the United States. N. Y. Carnegie Inst. 1915. McKinley., Wm. Tariff: a review of the tariff legislation, 1812-1896.

N. Y. Putnam. 1916. Sumner, W. G., History of protection in the United States. N. Y

Putnam. 1877. Taussig, F. W., How tariffs should not be made. A. E. Rev., I:

20-32. 1911. Taussig, F. W., Tariff History of the United States. 6th ed. N. Y.

Putnam. 1914. Same. Free trade, the tariff, and reciprocity. New York.

Macmillan. 1920. (A collection of the author's articles and

speeches of the last 15 years.)