Democratic Sentinel, Volume 10, Number 43, Rensselaer, Jasper County, 26 November 1886 — JOHN G. CARLISLE. [ARTICLE]

JOHN G. CARLISLE.

The Renowned Kentuckian on tlie Tariff and the Evils Thereof. Responding to the toast “American Industries —Their growth and prosperity cannot be promoted by unnecessary or unequal taxation,” Hon. John G. Carlisle said: Although the toast just read asserts a selfevident truth, w.j cannot afford to ignore the fact that even in this age of philosophical speculation and practical knowledge there are men in the front ranks of literature, politics, and business who seriously contend that the Government can make its citizens rich and prosperous by taxing them. If these gentlemen should attempt to convince the public that the farmer could be made more prospeious by increasing the tax on his land, or that the manufacturer could he benefited by compelling him to pay a high rate of taxation on his machinery, or his income, the absurdity of their position would be so apparent as to excite universal ridicule, and yet such propositions would be no more absurd or unreasonable than the assertion that the prosperity of the people generally can be increased by imposing taxes upon their food, their clothing, their building materials, their means of transportation, and the tools and implements used in their industries. Taxes do not create wealth; they destroy it. All taxation, whetiier it be direct or indirect, and no matter how it may be disguised or in what manner its payment may be enforced, is ultimately a charge upon labor, while its immediate and invariable effect is to withdraw the full amount of the exaction from the productive industries of the people. When it iH equitably imposed for public purposes only, and its proceeds are honestly used iu defraying the necessary expenses and meeting the just obligations of the Government, all are equally benefited, and no • one has a right to complain; hut, when a tax is imposed upon one part of tho people or one class of industries simply for the purpose of increasing the profits of another part of the people, or another class of industries, or when a tax is so laid that its necessary effect is to increase the profits in some industries at the expense of others equally meritorious, the impolicy and injustice ot' the proceeding are too obvious to require comment. ESSENTIAL ELEMENTS OP REVENUE. Absolute equality in the adjustment of the rates of taxation and in the designation of the articles upon which it shall be imposed is not to be expected, and, in fact, is not attainable ; but substantial equality and uniformity are essential elements in every just revenue system. So long as the power of taxation is exercised only for the purpose of raising revenue for the support of the Government, the principles of equality and uniformity can b 8 recognized and enforced in a large degree, at least; but when the power is perverted and used to increase the profits of private individuals and prevont the collection of revenue by the Government, it is impossible to regulate its exercise by any rule or principle, except favoritism and selfishness. In such a -case equality and uniformity would necessarily defeat the primary object of tho tax, because it is evident that if all were compelled to pay equal tribute to each other nobody would be benefited, and it is just as evident that if all do not pay equal tribute somebody must be cheated. American industries—and by these I mean to include every honest and useful occupation—cannot be promoted by any system of taxation or any policy of legislation which discriminates between them and compels one to contribute a part of its own earnings to increase tho profits or prevent losses in another. There should he no expatriated or persecuted industries in this country. There should be no ranks or degrees among the legitimate occupations of the people, nor any road to the favor or bounty of the Government not open to all alike. Mining and manufacturing, aiid the occupations dependent upon them, are great and valuable industries, and should be cherished and supported in every proper way. They afford employment to many millions of capital and many thousands of laborers, and their products contribute largely to the wealth and comfort of the people; hut they are not by any means the only American industries.

INDUSTRY STRUGGLING WITH NATURE. In the households of the poor, in the fields and forests, in the mines and fa dories, in the stores and shops, on the railroads and canals and rivers, on the high seas—everywhere there are American industries struggling with the mighty forces of nature, and subduing, combining, and utilizing the elements of the earth and the air; and any view of our industrial system which fails to compehond all these necessarily leads to partial aud erroneous conclusions. Taking tnat broad view of them which comprehends the smallest as well as the greatest, and appreciates the interests of the whole instead of a part only, it is imx>ossible to understand how their growth and prosperity can be promoted by taxation in any form, it is not difficult to see how a system which prevents competition, and therefore increases prices, may enable an individual who has capital involved in a particular industry to realize profits instead of suffering losses, but it is manifest that this mußt always be done at the expense of the consumers of his products, who are also, as a general rule, engaged in industrial pursuits. In every such case the actual losses are precisely the same as if competition had not been prevented, and prices had not been increased ; but instead of being borne by the individual’ who oarries on the business they fall upon the purchasers of his products, and are paid out of the earnings in other industries. The other industries, therefore, not only make good his losses, but pay him a profit besides, thus giving him a bonus for investing his capital, and wasting his esill and labor in an unprofitable business. EFFECTS OF PROTECTIVE TARIFF. That taxation for protective purposes has resulted so far in a continuous waste of capital and labor in this country is conclusively shown by the present condition of- the so callecb protected industries, and by the history of our legislation on the subject. The earlv advocates of the system proposed it only as a’ temporary expedient to aid in the permanent establishment of certain industries, and insisted that after a few years of dependence upon the bounty of the Government and people, they •would be strong enough to stand alone and compete successfully with their rivals, not only in the home market but in all others. Under the influence of this argument the first protective tariff was enacted in 1816. and yet, after seventy years have passed, many of the same industries which then asked temporary assistance only are now demanding more than double the rates of duty then deemed sufficient, and their accredited committees and organs unanimously declare that unless these enormous bounties shall be indefinitely continued tho industries must cease to exist. According to their own showing, tho policy inaugurated uearlv threequarters of a century ago for the purpose of rendering them independent and self-sustain-ing has had exactly the opposite effect. Its constant tendency has been, and is now, to impair their ability to compete with the products of similar industries elsewhere and to make them more and more dependent unou bounties and special legislation for support. It has added largely to tho cost of production by increasing

the price of machinery and materials and the necessaries of life; it has confined the products of the so-called protected industries to the home market exclusively, so that the amount of production must be regulated by the domestic demand alone, and oper itions must be suspended when that demand is satisfied; it has obstructed international exchanges, thus partially excluding the products of our other industries from profitable markets abroad, diminishing their earnings and arresting their growth and prosperity ; it has provoked other Governments to resort to retaliatory measures, discriminating against our products and trade in their own ports and markets and giving preference to the products and trade of our most formidable rivals, and here at home, by encouraging capital and labor to rely upon legislation for profits, l ather than their own capacity, it has greatly impaired that spirit of independence aud enterprise which is absolutely iudispensable to the t-B.vjgsful prosecution of business in this age JfetMßfovcment and progress.