Democratic Sentinel, Volume 7, Number 49, Rensselaer, Jasper County, 4 January 1884 — HEWITT ON TARIFF. [ARTICLE]

HEWITT ON TARIFF.

The Albany (N. Y.) Abgus prints the following letter from Congressman A. 8. Hewitt, a member of the ways and means committee: New Yobk, Dec. 26. 1883. Edwin Atwell, Esq., Managing Editor of The Argus, Albany, N. Y.—Dear Sib: I am in receipt of your letter in which you say j The Argus s now engaged in an inquiry into the causes and effect of the present depression of the iron industry. It is especially desired to be known what relation this state of things bears to existing tariff conditions.”— You ask my opinion in reference to these points. 1 answer that he proximate cause of the pieient depression of the irrn industry is to be found in the fact that the capacity for producing iron is in excess of its actua 1 consumption, not only in this country, but in those foreign countries which are large producers of iron and steel. When the supply exceeds the demand, prices fall. Establishments which cannot produce at the current price without loss, are compelled to suspend operations, and thus comes the actual depression to which you refer. The ultimate causes of such a state of things are usually manifold; sometimes they are too obscure to be discovered with certainty. For example: The influence of abundant harvests, or of a failure of crops, upon the general condition of industry, is unquestioned. Yet these very causes may produce prosperity in some branches of business, while they produce depression in others. So in regard to the influence of tariff legislation.— If duties are suddenly raised, at a time when there is a demand for the foreign product, prices will goiip, and the iron business will be prosperous,If, on the other liana, duties so as to admit of a larger supply of the foreign product, the domestic business will for the time being be unfavorably affected, and depression will resu<t. These, however, are only immediate and temporary effects. As a matter of fact, prior to 1878, under the highest tariff ever known in this country, we had a long period of depression in the iron business. But about that time railway enterprises were undertaken on a large scale, producing a sudden demand for more iron and steel than the world was prepared to supply. Prices advanced all over the world, and to these prices was added rhe very high rate of duty then prevailing upon foreign iron brought into this country. The profits of the domestic business became excessive, and the owners of existing works proceeded to enlarge their capacity to the utmost, in order to gather this harvest of great profits, while new capital was attracted into a field in which the returns were known to be be abnormally large. The business being thus overdone, a glut of iron resulted, and the reaction has brought about a state of things even worse than that which existed prior to 1878. The evil from which we now suffer is, therefore, largely due to the fact that the war tariff imposed higher duties tfian were needed for protection, thus giving excessive profits to the manufacturers in a period when the profits would have been large enough without such high protective duties. We are suffering from unnatural stimulation, which aggravated the excitement when the public interest required that it should be allayed, and now aggravates the depression by the excessive capacity for production which i t engendered. How long this depression will continue no man can predict. But inas much as eras of prosperity and uuptess.wn succeed each other in eyelet it is certrin thaf soo fl ri-

er or later we si all come again io the period win itthe doman t. for iron will exceed the supply. Unkss our revenue legislation be meanwhile reformed we shall then have a repetition of the experience thro’ which we have passed since 1878,an experience which shows that excess ive profits are, in reality, of no real benefit, either to the manufacturers, except in rare instances, or to the counti y at large,while the evils resulting from them are serious. They are es pecially injurious to the workingmen of the country, who are the chief sufferers when the inevitable reaction to unnat ural expansion narrows the field of employment for labor. The lesson to be derived from this experieuce is that the duties on all kinds of iron should never exceed the lowest possible point which, in time of depression, will protect the domestic market from the flood of foreign iron which otherwisejmight be poured into its lap, Such rates of duty, provided they are specific, will, on the average, yield the largest amount of revenue; because when the price rises, and the producer no longer needs arotection, the consumer who does need pfotection can then supply his wants at a fair price in the foreign market without paying an increased duty, if he can not get equally fair terms at home Moreover, the experience of all commercial nations has shown that moderate specific duties afford the only saf e • guard against frauds in the revenue, as well from smuggling as from undervaluation in the invoices. The blind adherence to ad valorem duties in our existing tariff has only served to throw the importing trade into the hands of foreigners, and to drive out reputable American houses fi om this business.

The reduction of extra-pro-tective duties to a reasonable standard of specific dutie, is, therefore the ouly practicable means of avoiding an unhealthy iexpan sion of business when it is active. Extra-pro-ductive duties merely result in overproduction, in the general derangement of industry, and in consequent suffering to the workingmen, by the loss of employment & the reduction of wages. They must be made to realize that the only fund’ out of which their wages can be paid is produced by the money wnich is received for the product of industry. Out of this fund must first be paid the cost of the raw maierial, and next the remuneration for the capital employed in the work of production. What remains is the amount avai laable for the payment of wages. Hence the cheaper we can get the raw materials and capital the more we can pay for the labor engaged in manufacturies. High rates of interest and high-priced raw materials mean, therefore, lower wages for labor; while cheap raw materials and cheap capital means higher wages for labor. The working men thus have an interest, direct and immediate, in removing the duty from raw materials, as well in the iron business as in every other branch of industry carried on in this country. By raw materials I mean fuel, ail food uroducts, all materials to which no process of manufacture has been applied, all metallic ores, and all waste products which are fit only to be manufactured.

So far as any relief can be provided by legislation for the existing state of affairs the remedy must be found, first ’n freeing raw materials from all duties, and, secondly, in imposing rates of duty on manufactured products * not more than sufficient to make good the difference in the amount paid for labor hf the production of any given arti(de in this country as compared with the amount paid for the

same labor in other countries with which we compete. For this purpose the incidental protection afforded by revenue duties will, as a rule, be found sufficient . when any protection is needed. I am aware that this last proposition involves the protective idea to some extent, but to no greater extent than is the logical outgrowth of our past legislation. If we had never had protection we should not be required to pay any attention to the question of rates of labor, which are the result, not of protection, but of other conditions entire ly independent of legislation But the protective system hai undoubtedly built up some branches ot industry which otherwise might not, in consequence of the high rate of wages, have existed. Inasmuch as this is their misfortune and not their fault, no sensible legislature would strike these industries down by the sudden abrogation of the protective system. We should, nevertheless, endeavor gradually to reduce its evils to a minimum until, in the progress of time, it shall have given way, under natural laws, to a better and sounder condition of affairs. But in tins assurance of inevitable progress, there fa to be found no justification for the further maintenance of duties, which only tend to reduce the wages of labor, without conferring benefit on any interest whatever: duties which only impair our ability to sell commodities in the open markets of the world, and hinder the natural and healthy gro’th of business. All such unnecessary and hurtful obstruc lions should be removed without delay, and it will be a mockery of duty if congress should fail to open the way to “freer trade” and wider maikets for our products through any fear -of consequence or politicians who have not the, courage of their convictions, or have no other convictions than the desire for office. The mere politician follows ’public opinion; the true statesman instructs it His constant aim should be to make cle a r to those who depend upoh their daily labor fir thiirdulv bread the real basis on which their welfare rests, and then to trust to their intelligence and votes for support. Success on any other condition would be dishonor. Any party*wh;eh expects to get power by playing the game of “hide and seek” in politics does not deserve, and will not gain, the confidence of the country. The only living issue, then, between the two great political parties which divide the country, as I understand it, is this —whether the revenue system shall be reformed, and upon what basis of principle it shall be settled. The republican party believes in the doctrine of protection for the sake of protection. It insists that protective duties are constitutional and are necessary in order to insure to the workingmen a fair remuneration for their labor. It would, therefore, impose duties as uearly prohibitory a« possible on articles produced in this country, and as a policy make free those articles which are not or can not be produced here

The democratic party insists that the constitution merely provides for the imposition of duties for revenue and not for protection, e so far as du tiee so imposed neecs utily as ford incidental protect ion that protective duties can n< and do not favorably affect tl general rate of wages: that 1 gislation is powerless’to pi manentiy increase the remu eration for labor,, although may seriously impair it; th protection can divert laborana ■capital from more profitable into less profitable channels of

jn'liuiry Ji r**evkMiM». Ma»r*r. >b« fu t ill .! the piht'-vltVt* a/Mlefll to-t* boeit k i iu ••>} 14 av 14 tVellCftrii 111 j.HtcJtu! , to make i I llr uUrt n» «•■>»■<>• law co - »intni»u<4 gu<*an >u; Ut«4 thwf&rnuutit of tabut mo* •ng4*t*d it tt<t ifiousirw it to« grw>i »«• .omit or ;;ty icolalb.i* .likoij- ndo ilwtuouy . <oi i joijr; tfa*i <.n«- amy reform uuvr pw**. i«- t* iu ttr«j. r-’ tution and reiUMV*n ui trim ta •(« ■o iuugar tteded t»4» me t rit •■>»! thiund existence; ttaui wxewae ive dutiet are iu re.iity ;o.»ti u.-tive to 1 o-ir prosper?y ; ii«. l<« <*-, .-t, i.-tw materials be rrit »-"d aucb duties constitute .p 1 d«dutii.ua from the w.t f .■*,<<. a . If the question werr ; .p ...an. democratic party < < -Id prr*. raise the public it>i Mir t>> donee imposed iinpu-u? 1 upon aiUeioa no* prod read m lui-jcouatry, and trust to uu'Ufni lawn for lue dvToiepmeut Ct it* iu b-Uln B*l; i>l»q 1-4 Int it f ireciu-rd by tor givu. wxt«*«i> «*f tb»j»r>*. 'led iiidii»tu< » n plactug ue-d iiiduettlrr w tali'o orto’rwiee would bme tt.n »u lue driiiorraii<*<p.irt) ug itae w .teeny lueietuie ot r< foroii id '*o tariff in aueu a wuj as pot to rpnve iue»-» ,Md .attie- Cue iio-ldi ilt.u piolec.liu ail »r <e i 0 rriisonable I'rVraun clmivs. lusiata tiled lbe‘pioir»nve ejaiwai ataad not be eui.u d' d, anti Orin vee that in«,deiair <;uti<— producing ou tbs aver ng- ol y-ui H t sufiieitfut revenue are pdcquaie f -c prutrcliou al the only tint w.ieu dl-u >w needed; that to ill Olid times, Wilt'll UUI pe lluib wouul seek lugei lid «f tiled surplus product iu our uuiL'd, WlHlil.jiO; niU< ring Itaat Illi idle pop mu 10.1 is luegreai »t rod 1 ealaH-i 1y wr unis' men pr«*a>'i y • iu ord 1 w give emp oyw-in 10 our iali >1 «''gag* ed iu tui- moiecied iiiduoil 1* Hat-4 Uli OllH'l pi Hulls rX.la (lO'e.'lV

duiit'o iuti< ly give < xerssiw uiuu e to one Cilia - <it I’li* eXp-’uxe of oita»-l claa e.-, ta . I life in oVeipruUuc iuu. ktaguaticu of busioe4» c and irregular employ ni-*iit fur in tool*, puwt-ik-aa'r pioiect Itself agaluat lire rr ; «>rs~'<4 leiZHldli tJ aud tm* a ifisn lICUUU Ol capit.d living 1 r mire.laoiiubb'profits Ihv c ill'll 1 >.l ot ibv uUHliies* of tile- I'uiiu <1 j ul liils lime Uiwud.i i Sive p.oof >ll it Im- pro.ec ive in ' • •nil mil nli Vi- Clio lubuf > 1 ciipi tai lioui 1 tie 1 0.1 1-pivucea of ;>w ptudu huh, wliii'u is its 1-g.tiuiate If .so 11 B i a**vi> the t o.itic dp»r !•» «p-, r-s’ditiug ill <-«* t*»u upposiup vit tvs til O I.Il) is oil liA rn.lM- lln c oiri-. T<v itep itdisau pu j uIT ir no I" 111‘iiy for ue p lieV wh' 11 lt<i» piod'i. «iritis ’ Xiriii.g p..r<d’sii o i.iuuo iy uh* iiv.ii in itic p-di) piupoHe* to pi t. Uiv .yay *y fi 1 in .ruel*, fuller nude/ -ind - 11w .gcs by abuli'bing the duties on raw nii'ttrials und removing th p'.iely 1 bbtnicUVe features > f in IU ill. I. In. Il 111 II 1.. !<• n.lllse '.llnll ii .in .1 11 p I*..* - j idle, m inc I*, .re of 1' veeue reiiu ni v ii'ftnly adj i-lo to the actual eosdilisn of our -mie - lug ;n ii.mlU'-s. and U>e rep >b ca s< iiat•• -'mill r<*ru»e 11 BJiid ir. imi> bUe «liHli p> fitll'i) j Ullcd. ill. • pl 0 .11 1 c , ■> uiu« ai etuer I. e■ uuntil ng pnrtv now u power b« 1 replaced liy hi udiniiiisirtiilou ’ hi. h wdl te novi* ttae aitiliciul b<u.r is h al'liy progiis-.. du u ttai-i .. t» and >'Ol Uil lhell,, Will till- cjllli if. jizv iLui i i.- nu i mg. r uh 1 . nt tmr-’i . bn! .1 V. rliub e gi-ii 1 enl) T'Q’iirit'g. “ iiiipie loom and ’ CUOUi-’li fur the Iveplii) v s die Va.*t em rgivs. bipseiely you s

ABRAM S HEWITT.

CocoAXur Jumbles -V iry nice litth cake- mm- made <>r two cup* <>t’BU|£ r. «»n< <m •of bull ' twoe e and a 1.-rje CU| • I’ ki >ed ci'co inut i) wieh eno fl ur f o make a douuh mat can !>e rolled U-> fai .y i io p’H«t va I >it- shapi •, aid Lake iu a veiy ho <>■ en m i “My friend finally abandon <ed medicine of all k kinds, and continued a nourishing diet only. About ten weeks ago her attention was directed to a newspaper paragraph, recommending hot water as a remed y for consumption. Feeling that little harm could ensue from its use, she determined to test it. At the moment of retiring, a large tumbler of hot water, in which the juice of a lemon had been mixed to free it from nausea, was tak*en. In a few moments a wamth would pervade the lungs, chest etc,, quickly followed by the most, refreshing sleep, which would be unbrok en by any cough, and thefpa tient wo’d a waken in the morning rested and strengthened. A few days ago she was seized with coughing, during which was coughed up into her mouth a small stone about the size of a pea—formed of sulphate of lime. I believe, and usually considered a symptom of the healing of a cavity in the lung. Whether this marked improvement was due to the hot water, I cannot venture to sn jr, but its beneficial influence in securing sweet sleep and exemption from coughing at night was so marked that I would like some of our readers to test it with their consumptive friends, and give the results of their ex peri once.”—Chamber’s Journal.