Democratic Sentinel, Volume 14, Number 14, Rensselaer, Jasper County, 25 April 1890 — HIGHER TARIFF TAXES. [ARTICLE]

HIGHER TARIFF TAXES.

THE M'KIMEY BILL AT LAST BEFOKE THE HOUSE. Kx-Speaker Carlisle, Speaking for the Democrats, Shows that the Measure Carefully Protects the “Infant” Indus- *. tries and Increases the Public Burdens. {Washington telegram.] Just before midnight, Wednesday, Mr. Carlisle was called out of his bed and informed that the Republicans of the Ways and Means Committee had again changed their bill by restoring hides to the free list, and by making saga: lree, with a bounty of two cents a pound on sugar produced in the United States. For the fifth time Mr. Carlisle had to rewiite the report of the m nority to suit the changed conditions. This afternoon the completed tariff bill was reported to the House, with the report of'the - majority written by Chairman McKinley. While surprise was expressed at the change in sngar after the repeated declarations of McKinley and his colleagues that the bill was completed, the Western members of the committee are jubilant over their success in getting sugar on the free list. Oovernor Gear, ot lowa, and Mr. La Follette, of Wisconsin, stood out for free •agar till they were overwhelmed by the majority of the committee, nnd then submitted under protest. In order to save their hides in New England, the Eastern high-taxers consented to make sugar free with a bounty. Of course this has made Clans Spreckles very angry, and Mr. McKenna, his representative on the committee, has written a minority report protesting against the change on sugar and claiming that he has been treated with bad faith. Spreckles has been making millions of dollars a year out of his Sandwiijh Islands sugar, which he has brought in free under the reciprocity treaty and sold in a protected market. It is charged that he put $450,000 into the beet sugar industry simply as a ruse to save the protective tax on sugar. He hoped that by joining hands with the beet sugar men Congress could be made to believe a great new industry was springing up which the protective party would not dare harm. The Republicans Lave Gov, Gear and Mr. La l'ollette to thank for whatever credit they hope to set out of the change of front on sugar. t is announced that while no changes have been made in the wool schedule, changes will be made in ctrpet wools in response to public sentiment after the bill has been taken up in the Honse.

XHE M’KINLEY ABORTION.

Mr. Carlisle's Scathing Analysis Tlio True Inwardness of the Measure Existed In the Minority lteport. ’SThe report of the minority is a concise ;and forcible statement of the views of the tariff-reform party, and its arraignment of the McKinley bill for its imposition upon the people in the interest of the classes will undoubtedly become the great campaign document of the year. !l'he report says' JUST AND EQUAL TAXATION. The minority contends for the principle of just -and equal taxation upon all, according to their ability to biarthc burden, while the majority has in this bill thoroughly committed itself to the pol'cy of unjust and unequal taxation of the many for the benefit of the few. We are as ■ anxious as the majority can possibly be to promote and enoourage American industries and ■ advance the interests of American laborers, and those who impute to us any other purpose or design either misunderstand or misrepresent our position. But wo believe that both these objects can bo accomplished by reducing the fcurdens of taxation, and not by increasing them, and that the benefits thus secured will be far more permanent and far more satisfactory to those directly concerned than any supposed ;advantage that can result from a different policy. The majority, after months of patient aud laborious investigation, has Lean able to satisfy ■ a part only of the demands made upon it. The only remedy is to remove as far as possible arti--ficial burdens aud restrictions, and give to all oar industries an equal chance in the field of coinpetion at home aud abroad. PROTECTION A CONFESSED FAILURE. According to the statements made beforo the •committee the protected industries of the country have never oeen at any time in our history In such depressed aud discourag ng condition as they ft:e now. Ai.er nearly ininy years of • continuous protection by government taxation tor their support a great many of them are reported to be on the very verge of bankruptcy and ruiu, while very few of them, according to the testimony, are yielding a lair profit upon the capital invested. A great many of the parties engaged iu these industries have declared that the slightest reduction in the rates of duty now imposed upon competing foreign products would compel them to close their works and 1 discharge their employes, and others have even igone so far as io assert that they will be forced to go out of business if the rates of taxation are not increased. At the same time the laborers in those industries are complaining of inaruffleieut repeated suspensions of work and a general condition of uncertainty and insecurity in their relations to those who give them employment. Those laborers, fully re- ■ alizingthe 1 act that tbis system has wholly failed to increase their earnings or improve their condition in ahy way, have been compelled to organize trades unions and resort to ■ other methods of combination and co-operation for self-proteel ion; and these various erganizations now afford iho only efficient means at their command for the preservation even of the existing rates of wages. While we have ne> doubt that many of the

statements made btf re the comtnitue were .great exaggerations ol the actual condition of •ffairs, yet, alter making proper allowance for the zeal of advocates pltading their own cause, • enough remains to show clearly that the existing system of protection, after* a trial cf thirty years, has proved a failure, and that, instead of ■hem g strengthened and made more restrictive and prohibitive, it ought to be abandoned, and ■ a more liberal policy inaugurated. When capital and labor unite in declaring that our protected . Industries are not profitable under that system, it was designed and has been rnainvtained for their spec.al benefit, the conclusion is inevitable that there is a vice in it somewhere that ought to be removed; for there is no reason to doubt that in a country like this every productive industry would be reasonably prosperous if a wise and just revenue and financial policy prevailed. We believe, therefore, that the only manner in which our industries Can l e uelped by leg.elation at the present time is to exempt from ia.- aiion the mateiials they are compelled to use . and to reduce proportionately the taxes on finished produc.s, so that ail our farmers, mechanics, and manufacturers may be able to compete on equal terms with those of other countries. That is the policy vie advocate and which we desire to Bee inaugurated and completed just as early and as rapidly as circumstances will permit. The capitalist who has invested his money in those industries, the laborers he employs, and the domestic consumer to whom he sells, would all be benefited and nobody would be injured. With untaxed materials, it ia evident that they could afford to pay'their laborers better wages than they can afford to pay them now, and still sell their products to •consumers at lower prices than are now charged. M.O.VDKRINO THE MANY FOR THE FEW. At a time when it is confessed by all parties that the Government does not need additional revenue, but that there ought to be a reduciion cf its receipts, the bill reported by the ma ority proposes to levy upon a great many articles of absolute necessity higher rates of duty than were ever heretofore proposed in any measure reported to Congress. These increases of rates are made in every instance tat the purpose of restricting trade and thereby affording what is •called protection to the producers of similar

articles in this country. The original argument in protective dntiss was that they were neoessary to foster infant industries by preventing ruinous competition from abroad until they could stcure a hold on the home market, and thus become self-sustaining, and it was again and again predicted by the earlier advocates of the system that a few years of public support would enable them to uo this. But the present till is baaed upon precisely the opposite view. It is framed upon the assumption that as our industries grow older they grow weaker and ..more dependent upon the bounty of the Government and the forced contributions of tbe people who purchase and consume their product, and, accordingly, we find, that as a general rule the important increases in the rates of duty are made with a view of still further protecting the products of our oldest industries, such as manufactures of iron and steel, woolen goods, cotton goods, manufactures of flax, hemp, etc. The original claim that i r jtection was to be a temporary expedient, and tnat after the lapse of a reasonable time the masses of the people would be compensated for their previous outlay by obtaining goods made at home more cheaply than they could l>e obtained abroad, has b3en entirely abandoned, and it is now avow, d that taxation of tbe many for the beneflt of the few is to be the settled policy of the government, and that this unjust system is to be made more •onerous and restrictive from time to time as subjects lor its application may be discovered and as the demands of old industries may increase. Hereafter taxe3 are to be imposed for she primary purpose of protecting certain private Interests against competition, with incidental revenue for the government, and our people are to be deprived of the privilege of purcl. sing, without paying tribute to somebody, any aiticle which any one or more persons in the United States, however incapable or wasteful, might possibly succeed in producing, with the aid of a sufficient tax on their neighbors to establish and maintain them in the business. NEW INFANTS TO BE CODDIED. For instance, there are a few jiersons in this country who believe that they could manufacture tin"or tin plate if these who use that necessary article were compelled by law to pay a higher tax upon it, and accordingly the bill now reported proposes more than ta double the duties. Thjs will injuriously affect the interests of thousands of laborers now engaged in the manufacture of iin cans and other vessels used in canning fruit, vegetables, meats, an 1 fish in nearly every part of the country, and it will constitute a direct charge upon the producers and consumers of these various kinds of food, but the theory upon which the bill is based takes no account of the welfare of this great mass of American citizens so long as two or three firms or corporations insist that the tax will be beneficial to them. Again, there aro a few persons in the United States wrho claim that if they had what they call “proper encourage mint” they could produce raw Bilk here, and accordingly this bill proposes to compel all the people to pay out of the public treasury a bounty of 81 a pound, or 82,240 per ton, on all the raw silk reeled from cocoons, and 7 cents on every pound, or 8150.80 per ton, of fresh cocoons, including the worms, produced in the United States. This expense is to be charged to all the people, whether they use silk goods or not, and bo paid out of the public treasury. At the same time the bill proposes to make enormous increases in the rates on woolen goods, which all our peoplo are compelled to purchase and use, and vtry large increases in tho rates on some kinds of cotton and linen goods, which are absolutely necessary for the health and comfort of all classes. The increase of taxes on wool and woolen and worsted goods, including carpets, amounts to about 815,500,000 per annum, estimated upon the importations of the last fiscal year; but in fact it will be many times that amount by reason of the enhanced prices which consumers will be compelled to pay for the domestic product.

DEAR NECESSARIES AND CHEAP TOBACCO. While the bill proposes to make this large addition to the tax on woolen clothing and carpets, it also proposes to abolish the internal revenue taxes to the amount of $8,800,994 on manufactured chewing and smoking tobacco and snuff—articles which certainly cannot bo classed among the nocessaries of life. Wlrle we would be willing to rejeil the internal revenue taxes on tobacco in connection with reductions upon olhot articlei which tho people are obliged to use, as vas proposed by the bill which passed the last House, we c muot agree to a measure which provides for tha abolition of any part of such taxes and at the same time increases the rates of duty on cotton, linen and woolen clothing, and on earthenware, g ass ware, table cutlery and many forms of iron and steel which can not be dispensed with. Besides, about the only substantial reason that can be urged for the repeal of the tax on tobacco is the fact that the governmental supervision and control necessary to enforce its collection is a constant source of vexation and annoyance to those engaged in manufacturing that article. A mere reduction of the tax from 8 cents to 4 cents per pound does not dispense with this supervision and control to any extent whatever, nor does it diminish to any extent the expense of collection. Tho same supervision, tho same books and forms, the same bonds, oaths and penalties, and the same number of officials, will be required to collect 4 cents per pound that are required to collect 8 cents per pound. WHERE THE BILL INCREASES TAXES. We cannot undertake here to point out in detail tho numerous increases in ths rates of duty on imported goods which this bill proposes to make, but a lew will suffice: The lowest grades of woolen yarn, worth not over 30 cems per pound, are to be subjected to a duty of 112 per tent., while the most costly yarn will pay 72 per cent. One grade of coarse cheap blankets will be require 1 to pay 106 per cent., but the finest blankets will pay 72 p;r cent. The coarsest and cheapett woolen hats will be subjeet to a duty of 111 per cint. and ttie finest to 66 per cent. Women’s and. children’s cheapest dress goods with cotton warp are to be taxed 105 per cent, and the finest 73 psr cent. The lowest grade of woolen cloths will pay 125 per cent, and the highest grade 86 per cent. The cheapest qualities of knit goods for underwear range irom 112 to 138 per cent., but the finest *nd most expensive will pay 78 per cent. vVoolen shawls of the coarest and lowest grade used by the poorest people will pay 135 per cent, duty, and worsted goods of the lowest grade will pay 130 per cent., while the highest grades will pay 90 per cent. There are many increases of the rates on iron and steel, and scarcely any reduction On articles which can be imported at all under th© existing rates. The reduc.ions in tnis schedule, as a general rule, will not diminish taxation to any appreciable extent, while all the increases are so arrangel as .o obstruct importation* and enhance the prices of the domestic articles of the some kind. On comuu n table cut lery the new rates of duty imposed by this b 11 are very largely in excess of tho old cnes, nmier which our manufacturing establishments have been successfu ly carried on for many year*, ani on the cheaper grades of pocket-knives and rizers especially the rates are greatly increased. Common window glaßs. not exceeding 16 by 24 inches square, is inct\ a-el to 123 per cent.; not exceeding 24 by 33 inches square, is raised to over 135 per cent., and all sizes above th it are raised to over 138 per cent., while there are very large increase* upon bottles and various other manufactures of glass.

Camel’s hair, a raw material extensively used in this country in the manufacture of certain kinds of goods, and which has been admitted free of duty for a good many years, is by this hill taken from the free list and subjected to a tax of 12 cents per pound, which is equivalent to 77 per cent, ad valorem. During the last fiscal year we imported free of duty 6,648,C 97 pounds of this material, which is absolutely necessary to enall j some of our manufacturing establishments to carry on their business and supply the goods they are now making for their customers, but if this bill passes and the same quantity is imported n>xt year, it will cost the peopls $797,771 in addition to the value of the hair itself.BThe imposition of this duty, like theiimposition of all other duties on raw materials. works a double injury. In the first place it imposes an unnecessary burden upon' the consumers, who in the end pay all the duties with profits added, and, in the second place, it destroys the power of the domestic manufacturer to compete with his foreign rival in the production of the goods into which the taxed material is converted. We have for a long time been endeavoring to increase our trade with the people of Central and South America and Mexico; and at our request an international conference ia now being held to devise means for the accomplishment of this result. The people of all these countries had a right to suppose that this Government was acting in good faith when it invited them to send their delegates here, and that nothing would be done by us to disturb the. harmony of their deliberations or prevent the success of their mission; but in the midst of their consultation and when it was earnestly hoped that some practicable plan might be agreed upon for the establishment of closer commercial relations, this bill Is reported, containing provis-

ions which v 111 not only retard reciprocal arrangements for the future, but destroy a large part of the trade now existing between this country and some of our neighbors on the south. The policy of placing farm products on the dutiable list, as provided for in this bill, in order to give the farmer protect ion, is fallacious; It is impossible to protect the farmer against foreign competition in his home market, because he has no such'competition. ENORMOUS BOUNTIES FOB BUOAB GROWERS. , Last year the grades of sugar jrhich are now made free yielded to. the Government 854,894,181, all of which is now to be surrendered, and tbe sugar industry is to become an annual charge upon all the peopls who are engaged in other occupations, some of which are far more important and all of which are fully as meritorious as this one. In 1888. which is the last year for which we bare complete returns, the sugar product in this country was 375.855,877 ponnds, so that even if there should be no increased production under the Lpunty system tbe sum which the people are to be compelled to donate each year for the support of this favored industry will be $7,520,000, or 8113,000,000 during the fifteen years. But the very object of the bounty is to encourage the production of this article, and its advocates ciaiin that in -a few years it will result iff a domestic supply equal to the whole demand for homo consumption. 1 In addition to the heme product we imported and consumed during the last fiscal year 2,750,421,302 pounds of sugar not above No. 16 in color, making a total annual consumption, including domestic and imported, of 3,076,277,079 pounds, and therefore, if iha system results as its advocates predict, the annual payment out of the Treasury will be $61,528,426, even without onv Increase in the amount now consumed. Wo protest against the gross favoritism and injustice of such a polioy, and we deny the moral or constitutional right of the Government to tax the peopls who grow corn, wheat, cotton, rye, oats, and other agricultural products for the purpess of raising money to be given to those who produce sugar or any other article. The bounty provisions contained in this bill are confessions that the whole system, which it seeks to strengthen and extend, is a system of discriminations between the various productive industries of the country—a system which imposes charges upon some for the support of others, and disregards eve.-y principle of justice and equality in distributing the burdens of taxation. In our opinion, the increase in the tobacco schedule, resulting mainly from the imposition of a duty of 82 per pound upon unstemined leaf for cigar wrappers, will bo $16,305,925, instead of 89,754,069 as shown by the tables, and we are confident that an analysis of the importations of that article for a series of years past will sustain our position. DELUSIVE PROMISES OF THE BILL. We do not ineau to assert that the bill actually increases tho customs revenue 865,000,001 over what it is under existing law, but that it proposes to impose upon the articles it leaves upon ths dutiable list, except sugar and molasses, that sum in excess of the amount collected on tho same schedules last year. It places upon ths free list articles which y.elded a revenue of 86,039,969 during the last fiscal year, and it makes a reduction of 854,922,110.56 on sugar and molasses, and these two sums, amounting to 860,902,079, being deducted from the 868,000,000, leaves a net increase of over $4,000,000 in tariff taxation under this bill. In our opinion the exercise of a just discrimination in the selection of the subjects of taxation and in fixing the rates of duty to be imposed upon each would enable the Government to realize irom this source of revenue ample means for its own support, and at the same time greatly improve the present condition and prospects of all our citizens who have invested their means or embarked their labor in manufacturing, mining, agriculture and commerce. While we would gladly co-operate with the majority in the passage of any measure which would relieve the people from unnecessary taxation, promote the prosperity of our various industries, and secure ample wages and steady employment to the laborers engaged in them, we feel constrained to make an earnest protest against this bill, because, in our opinion, it will not accomplish any of those desirable results. , Messrs. Carlisle, Mills, McMillin, Breckinridge nnd Flower signed the minority report. VIGOROUS PROTESTS. Importers of Hosiery ami Dealers in Sporting Goods Object to Higher Taxes. [New York spscial.j All the principal New York importsrs of hosiery met to-day and siguei ths protest already signed by all the leading hosiery importers of Philadelphia, Boston ami Milwaukee against the proposed change by the McKinley bill of the duties upon cotton hosiery and underwear. LLeavenworth (Kan.) special.] The local gunsmiths and sporting goods dealers are in receipt of a communication from New York gun manufacturers urging them to write at once to the Kansas Representatives and Senators at Washington protesting against the proposed new tariff bill, which increases the duties from 35 to 80 and 100 par cant on breechloading guns. If the new tariff on guns takes effeat the result will be to cut tho business of the sporting goods men in half in this particular line-. Deluding the- Farm -lit. [From the Chica<o Tribune, Republican.] Western Congressmen who are supporting the McKinley bill, which proposes to rase tho taxes ou nearly all the necessaries of life, seem to think the farmers will be satisfied with tho idea that they are being “taken in on the ground floor” in the new tariff deal, and will be enabled hereafter to ext ;rt ar.ificial prices from their town customers just as the ultia protected manufacturing bosses have long done with their victims. Farmers will not be able, however, to see that they can be benefited by establishing non-intercourse with other nations. For this reason it will hurt American, farmers- as much as the Canadians to cut off trade with Canada. If the United States bars out Canadiau barley Canada will certainly forbid the impoitation of American beef, pork, and corn, and Congress will And it has been cutting off the nose to spite the face. For every Canadian who is injured by this prohibition policy an Americau will have to suffer as much, duties on agricultural products may drive Canadian farmers out of the Eastern markets and deprive this country of their purchases, which always equal their sales, but no one has explained how such levies can add a particle to iha price of products which are produced in the West in excess of home needs.

Why Domestic Linen-Is lirapo.ssiblev [From the Chicago-Tribune-.] The McKmlev tariff bill doubles the duties on fine linen g tod . and oj cheaper goods raises them to 5j per cent, al valorem and 3 cents a pound. To sugarc at this- bitter pilil to the farmer the duty on flat fiber is largely increased. If there is a human being who. imagines that this doubling of duties or ©n>3 still larger will add to the quantity of linen made oir flax grown in this country he is doomed to disappointment. Ever since 1720. when the Scotch-Irlsh first came to America, the manufacture off linen has been faithfully and unsuccessfully tried by them and their descendants. Coming from a. land notable for fine flax and its linen industries, the Scotch-Irish tried, wherever they settled in this country, to. do what they had done so successfully at "home.” They stuck to it patiently till cotton fabrics were cheapened, and then gave it up utterly. Millions of dollars have been sunk in the attempt to manufacture linen in this country, and capital has learned its lesson. Therefore it is madness to talk of increasing the linen duties. As this is one of those cases where protection cannot protect it would be wise to take them off altogether and let the American consumers enjoy the full benefit of climates which are specially adapted for the growing of flax and the manufacture of linen. A be cent issue of the Leader-Courier, of Kingman, Kingman County, Kan., contained the advertisements of no less than ninety sheriff’s sales of lands in that one county. Is Kingman County peculiarly unfortunate, or is it a fact that Kansas farmers are having a hard time of it in spite of the unspeakable benefits of a home market secured for them by an act of Congress taxing them some 45 Eer cent, on pretty much everything they ave to buy? Must we after all give up Senator Spooner’s beautiful doctrine that a mortgage is an evidence of prosperity? Let us have light on these interesting questions.— Chicago Times. A Westeen man lias discovered a process for making whisky out of beans.