Democratic Sentinel, Volume 12, Number 12, Rensselaer, Jasper County, 13 April 1888 — REFORMING THE TARIFF. [ARTICLE]

REFORMING THE TARIFF.

* The Majority Report of the Ways and Means Committee on the Mills BUI. Shall Taxation Be Reduced or Shall ' the Surplus Be Systematically Squandered. Why Wool Should Bo Placed on the Free List—Hitting the ' 'C-. Trusts. Following is a synopsis of the report of the majority of the House Ways and Means Committee on the Mills tariff bill: The report cites that the surplus for the last fiscal year was $5 ■,(k > O,(Mk. > , and for the current year is estimated at sßl,buU,oUo, and says, “With receipts growing larger and expenditures growing smaller, we must soon gather in the treasury the larger part of the circulation of the country, to the great injury of Its business and ihe bankruptcy x>f many of its people. Some method must be adopted by Congress to prevent the congestion which must occur under existing laws. “There are two ways in which this excessive accumulation may be prevented. We may reduce taxation to the level of expenditures, and leave in the pockets of the people all moneys not needed for public purposes, or we may raise expenditures to the height of taxation, seeking out new and useless objects of appropriation on which to lavish the great and growing revenues not needed for any legitimate wants of the public service. If we adopt the latter course, these very objects of useless expenditures will gather upon Congress in such increasing numbers and with such growing demands as to fasten upon the Government a permanent and unchangeable policy of extravagant and reckless appropriations. This policy once adopted will not only breed corruption in public life, and demoralization in private life, but will compel, in of depression, an increased rate of taxation for the people or an .increase of bonded debt for the Government." Then, stating that there is but one safe course—viz., reduction of taxation to the necessary requirements of an honest and efficient administration of government—the report suggests the question, “Upon what articles shall the reduction be made?' and pro■ceeds: “The committee have determined to recommend a reduction of the revenues from both customs and Internal taxes. They have carefully kept in view at all times the interests of the manufacturer, the laborer, the producer, and the consumer. The bill herewith reported to the House is not offered as a perfect bill. Many articles are left subject to duty which might well be transferred to the free list. Many articles are left subject to rates of duty which might well be lessened. “in the progressive growth of our manufactures we have reached the point where our • capacity to produce is far in excess of the requirements of our home consumption. As a consequence, many of our mills are closed, and many of those still in operation are running on short time. This condition is hurtful to the manufacturer, to the laborer, and to the producer of the materials consumed in manufacture. The manufacturer loses the profit on his capital, the laborer his wages, and the producer of the materials consumed in manufacture loses the market for his products. Manufacturers, in many Instances, to guard against losses by low prices, caused by an oversupply in the home market, are organizing trusts, combinations, and pools to limit production and keep up- prices. This vicious condition of business cou d not exist with low duties on imports. Prohibitory tariffs surround the country with lines of investment and prevent all relief fiom without while trusts, coinbinat.ons, and pools plunder the people within. "In a country like ours, prolific in its resources where the rewards of labor are large, •the capitalist may, by such methods, keep his investments secure and still make profits ; but what is to beuome of the laborers who are thrown out of employment by stopping the wheels ot machinery and limiting the amount of product? Aud what is to become of the producer of the materials to be consumed by the manufacturer? When the fires are shut off the laborers and the materials are shut off at the same time, and the market for both is gone. Whether they labor in the factory or the field ; whether they produce cotton, wool, hemp, flax, ■ coal, or ore ; whether the product of their dailylabor is cloth, iron, steel, boots or shoes, they must have Constant employment to obtain for themselves and families the necessaries and comforts of lire. When out of employment, with earnings cut short, with low prices for their products, caused by the closing of the market, they still must pay for whatever their daily wants require the prices which the tiusts have fixed. What is the remedy for this wrong? It is more extended markets for the sale of our products and a constant ard active competition in business. With active competition combinations and pools are impossible. With the markets of the world open to us our manufacturers may run their mills on full time and give constant employment to their .laborers, with a steadily increasing rate of wages. With the markets of the world open to the sale of their products they will create an active and constant demand for all the raw materials required in manufacturing, which will stimulate, promote and reward the woolgrower and the producer of cotton, hemp, flax, hides,ores, and other materials of manufacture. “The annual prpduct of our manufactories is now estimated at $7,000,000,060, of which amount we export only about $136,000,000, or less than 2 per cent. If we could obtain free of duty Buch raw materials as we do not produce and which -can only be produced in foreign countries, and mix with our home product in the various branches of manufacture, we could soon increase our exports several hundred millions. With untaxed raw materials we could keep our mills running on full time, our operatives in constant employment, and have an active demand for our raw materials in our own factories. If there should be no duty on any materials entering into manufactures many articles .now made abroad would be made at heme, which, while it would give more employment to our own labor, would give a better market to many articles which we produce and which enter into manufactures, such as cotton, wool, hemp, flax, and others. “In starting on this policy we have transferred many articles from the dutiable to the freelist. The revenues now received on these articles amount to $22,189,505. Three-fourths of this amount is collected on articles that enter into manufactures, of which wool and tin plates are the most important. The revenues ■ derived from wool during the last fiscal year amounted to $5,899,816, and the revenue irom tin plates to $5,706,433, “The repeal of all duties on wool enables us to reduce the duties on the mantactures of wool $12,332,211. The largest reduction we have made is in the woolen schedule, and this reduction was only made possible by putting wool on the free list. There is no greater need for a duty on wool than there is for a duty on any other raw material. A duty on wool makes it necessary to impose a higher duty on the goods made from wool, and the consumer has to pay a double tax. If we leave wool untaxed the consumer has to pay a tax only on the manufactured goods. We say to the manufacturer we have put wool on the free list to enable him to obtain foreign wools -cheaper, make his goods cheaper, and send them into foreign markets, and successfully compete with the foreign manufacturer. We say to the laborer in the factory, we have put wool on the free list so that it may be imported and he may be employed to make the goods that are now being made by foreign labor and imported into the United States. We say to the consumer we have put wool on the tree list that he may have woolen goods cheaper. We -say to the domestic wool-grower we have put wool on the free list to enable the manufacturer to import foreign wool to mix with his and thus enlarge his market and quicken the demand for the consumption of home wool, while it lightens the burden of the taxpayer. 'The duty on wool now prevents all the better classes of wool from coming into the country; the domestic product can supply only about one-half of the amount required for home consumption. The WoolGrowers’ Association asks us to put on a duty high enough to prevent the importation of all •wool. The Wool Manufacturers’ Association asks us to put on a duty high enough to keep -out all manufactures of wool. fi Congress

grants this joint request what are the people to do for woolen clothing ?. Are the people to be compelled by Congress to wear cotton goods in tne winter or go without to give bounties to wool growers and wool manufacturers? In the woolen schedule we have substituted ad valorem for specific duties. The specific duties are the favorite of those who are to be benefited by high rates, who are protected against competition, and protected in combinations against the consumers of their products, because it conceals from the consumer the tax he pays the manufacturer. « “The Commissioner of Labor’s report shows the true nature of specific cuties, and the consumers can sec why it is that manufacturers clamor for them. They know tne different values of these goods, and what apt words will embrace the high and low priced together and make the poorer people pay the same tax fur a yard of cloth worth 4 j cents that the wealthy do for a yard that costs $3.66; but that fact the speciuc tariff conceals. The ad valorem rate texes everything according to its value. A duty of 40 per cent, ad valorem would l are imposed a tax of »1.41 cn the yard of bruademth and 18 cents on the cotton warp, cloth that cost 45 cents, and the duty would have been fair to both. As it is, the tax is 18u p<r cent, on the cheap cloth andso per cent on the high-priced broadcloth. “In the cotton goods schedule we see the Same,‘vicious, inequitable, and illogical’ results of the specific duty." The decrease of the production of hemp and flax under duty is discussed, and the reasons given for placing on the free list; also briefly the reductions on earthen and gloss ware and steel rails. On sugar the report says: “We have reduced the revenue received from sugar about 20 per cent, and extended the first class from No. 13 to No. 16 Dutch standard of color. The sugars between Nbs. 13 and 16 are grades of brown sugars which can go into consumption without refinin* and consumers may protect themselves against trusts and combinations by purchasing these grades of imported sugars when the price of the refined is put up and kept up by organized trusts of the domestic manufacturers. The rate of all sugars above No. 16 is reduced so that foreign refined sugars may be imported to prevent high prices and protect the consumer against combinations." A reduction in the price of all canned goods and a benefit to the manufacturer of caus are cited as results of freeing tin-plate. The report concludes: “The bill which the committee reports provides for the repeal ot all restrictions on the sale of tobacco by the producer and for the repeal of all taxes on tobacco except on cigars, cigarettes and cheroots, and of all privilege and license taxes except those for manufacturing and selling cigars, cigarettes and cheroots."