People's Pilot, Volume 3, Number 27, Rensselaer, Jasper County, 22 December 1893 — FOR TABIFF REFORM. [ARTICLE]

FOR TABIFF REFORM.

Majority Report on tho Wilson Bill Frascntod. ! ABSTRACT OF THE LOSG DOCBJIEKT. I , It Is »n Elaborate Argument In Denunciation of tlie I’roteetion Policy and for a 1 ariflf for Revenue Only. MAIN POINTS IN THE REPORT. : Washington, Dec. 20.— Mr. Wilson, Chairman of the committee on ways aDd means, on Tuesday submitted his report on the tariff bill to congress. The leading- points made are as follows: Tile American people, after the fullest and most tnorougu uebate ever given by any people to iheir liscai policy, have deliberately and rightly decided that the existing tar.ff is viroiig m principle and grievously unjust in ope, ation. rii dealing with the tariff question, as with every otuer long-standing ab-se that has interwoven itself with cur social or industr.al systtin, the legislator must always remember teat in tue beginning temperate reform is s«.fest having iu itself the principle of growth. a giiiiko at the tariff legislation of our own country ought to satisfy ever; intelligent student that protection has always shown its falsity as a system of economy by its absolute failure to insure healthy aud stable prosperity to manuiaciures. it teaches men lodependon artificial help, on laws taxing their countrymen for prosperity in business, ratner than upou their own skill and effort, it throws business out of its natural channels into artificial channels, a here there must always he ffcetuaiion and uncertainty, and it maces a tariff system the foothold of party pol,tics and the stability of large business in.treats tue stake of every popular election. None have recogn.zed this truth more fully limn the wiser men who from time to time have engaged in the so-called protected industries. Years ago Edward Everett stated in au oration at Dowell that the sagacious men who founded the manufactures of New England were never friends ot a high tariff policy. V» hen congress began to ropeal war burdens ana to relieve mi-.nufaoiurers of the internal taxes, w hion they hau used to secure compensating duti s on like foreign products, mere arose a demand throughout the country, withoui respect to party, for a reduction ot the war tar.ff Unable to res.st this demand the protected industries baffled and thwarted any reduction of constquetice until 18*2, when they deteated a house bill that did mane a substantial reduction by substituting a senate bill Which canned a horizontal cut of id per cent. As soon, however, as die election of 101 l gave the next house to the democratic party, that bill was repc-aied by the out-going republicans and rales restored to what tuoy were i efore 1872. And although the demand tor tariff reform aud reduction ot taxes has ever since been a burning and a growing one in the country, the protected inuustrits have exacted and received iiom ever, republican congress elected since 1874 an increase ot their pr lection, occasionally permitting the repeal or the lessening of a tax . that was paid into the treasury in order to keep away from, or to increase duties levied tor their beiiehh

Protect on' left to Us natural mi mentun never slips short ot pr bibitiou and prombitury wads are always needing to Le built hi her or to be patched and strengthened! A protective tar.ff never has and n ver can give st.ibi.ity and sni fa tioii to i,s own beueliciari. s. Even it its v.tt ms are too w<ak or too Scattered to agitate Ur its deerea-i, tuo.>e beneficiaries are sure to agitate lor an inciease. Winn lie reform tar.ff of ihib was bt f. re ci ngress the ie r isi.uure was full of piop ocies that it would ue.,t oy our man factur ng industries, throw I..ber out of unp.i.ymeut, or comp 1 i, to work at pauper wage , ana dwarf and arrest the prosper, u• gio. .h of the country. Every r prescut.U vo of four great manuiacturing Stan s o. New England vot d aga.usL .t witu gioomy forebodings ot ,ts blighting effect Tot rate ot duties provided in that tariff was much lower than those of the bill we here offer. \v nut was the result? Instead of paralyzing the industries and pauperizing the labor of New Etiglauu, or tue rest of Ino country, the tariff ot 18-10 gave immense vigor to manufactures. witu steady employment, and increasing wages to labor. So that after eleven years’ experience under it, the longest period ot s ability we have; ever enjoyed under any tariff, iho representatives ot those same states with practical unanimity voted for a further, reduction ot 2i per cent, and by a two-thirus vote sosiaiueu tile tariff of 1857 which made a reuucUou of 25 per centum. And so well contented and prosperous were the mauufacturei'4-of ‘hat and other sections ot the country under, the low rates of the tariff of 18 i 7, that when the Morrill bill of 18ul took the first backward step mere was a general protest against it. wir. Sherman of Ohio said: “When Mr. Sinuton says the manufacturers ure urging and pressing this bill he says w hat ho must certainly * know is not eorreot; tho manulacturers have asked over and over again to be let alone." Mr. Morrill himself has since said that tho tariff or 1861 was now asked for, and but coldly welcomed by manufacturers. (Congressional It cord, 1809 70, page 8.29,). The history of. American industry shows that dur ng no other per,od has there been a more healthy aud rapid development of our manufacturing industry than during the fifteen years ol low tar ff from 1846 to 1861, nor a more healthy and haiuionious growtn of agrieuliure and all the olhen great lnuu->tries of the country. No ebapunin our political experience carries with it a more salutary lesson thuu ti.is, an 1 none could appeal mure stiongly to lawmakers to estahlisu a just and rational system of public revenues, neither exhausting agriculture by constant blood le ting nor keeping manufactures alternating between chills aud, fevers by artificial pampering. In this direction alone lies stability, concord of sectionsand of great industries Those who ixnieode the right of benotleiaries to lix their own bounties must necessarily commit to them the framing and wording of tue laws by which those b, unties are secured to them. A coicgnittee of congress thus becomes, merely the amanuensis of, the protected interests It has been shown so clearly and so- ; of leu in tlie dtebaies ot this-, house that nearly i every important schedule of tho < xistieg law ! was maue in its very words, and flgutes by r.epI reseutattves. of the interests it was framed, to, I protect that it is unnecessary in our report toe i present the secord proof of. this iact, but.u may i not be amiss-to cite further eviueuce to show that this is-not onlv the necessary rule hut th« open and a-rwwed method.ot framing protectivetariffs. When the senate substitute for the bill passed, by this house in the Fiftieth congress, wlbeh substitute is a real basis, of the existing law, was being prepared, I Senator .Hoar, of Massachusetts, apI peared before the senate subcommittee ! aud mini this language: "lnstoad of i coining before your subcommittee ton a formal I bearing- *u our Massuiehusetts industries, I thought!.The best, way, was to carefully prepare a table of all the vanious industries, perhaps some sixty or seventy in ah, aud as.; Brother Aldrich to go over thaio with me and asceriain what the peoplo wanted in ea.li case, aud if there; were any cases where the committee had not already done exactly what the petitioners desbiad, or had not,inflexibly passed upon the quesriota. I oould have a hearing before you, bull laid in every instance tlsa action of the committee, as Mr. Aldrich thinks it likely to be, as entirely satisfactory to the iiuen s-t.-i I represent with the exception of ona or two and the papers in regard to these cases I have handed no,Mr. Aidrich.t’

No stronger inaictment of the whole protective system could be made than that w hioh is unconsciously carried in these words of a Uidled Stales senator, that the laws which impose taxes on title great masses of peoolo must, he written in language so. technical ‘that the most intelligent citizens cannot fully understand them %ud that the rates of taxation should be dictated by the selfishness and greed of those w hs. are to receive the taxes. V, e have believed that the iirst step toward a reform of the tariff should be a release of taxes on th* materials ol industry. There caa he no substantial and beneficial reduction upon the necessary clothing and other comforts of the American p-ople nor any substantial and hem-ficial enlargvmentef the field of Ameriouu labor as long as we tas materials and processes of production. Every tax upon the producer fal's with increased Sorce on the consumer. It is Mrerefoiea very narrow and short-sight-ed view which supposes that we roieuse the duties, on iron ore and coal and wool and other like articles for the ben* lit of those’who manufacture our iron and steel, our woolen and other fabrics. We are legislating for the gre.at millions of consumers beyond them ana the scores of thousands of laiorers to whom they may thus give steady and well-paid tin-loyment. It is no less a narrow and short-sighted view that supposes that a removal of the tit riff duties on snob necessaries of industry will iuflic-t any real loss upon those who produce them in our own country The enlargement ot markets for our product iu other countries, the increase in the lintrnal commi roe and in the carry,ng trade of (•til- own country, Will insure a growing home market for all these things that wilt quickly outstrip anything they could have nnuer tbo protect,vo system. Iron -and coal are tho basis of modern industry. Tho abundance and

cheapness of their supple effer* us iu many lines of productions the manufacturing supremacy of the worli. White the mines of otiit-r countries are becoming exhausted -and the coot of mining in consequence is increasing we are constantly discovering and developing new sources of supply. The discovery of the immense beds of bessemer ores in the lake region and of foundry ores in several of the sou hern stales, their convenience for ira.nsi-orta.ion and for the as--Bctr biage ot materials, the use of rhe steam shovel in mining—all these have so ibeapened tue cost of producing p g iron and sb-el as to ta- e away all possibility aud danger of foreign competition in almost every part of the countfy- No less rapid ltosbeey the growth df our «>al production. The coal area of the Unfted Mates as stated by Ms. baward in the Coal Trade for 1893. Is estimated at r92,iAJU square miles, of which 120. ji0 can be comfortably w orkad at present. T his coal area is over three times'mrger than that of the rest of the world combined. The existing duty of 75 oents a ton on iron ore and on bituminous coal cannot bw Ju-.t.fled either as a protective or a revenue duty. The importations into this country are too smalt to add m iternklly to our revenue, while no one contends that the costof miningis higher in the United States thin in the countries that might seek ou * market. This house in two congresses in recent years having, after lull d- bute, p esed laws putting wool upon the free list, it is uotdeeined necessary in this report to attempt a restatement of the reasons for doing so. It is enough to say that the tariff upon wool, while bringing no real beneflt to the Amer.can wool grower, least of ail to tlie American farmer, who iu any balancing of accounts must see that he yearly pays out a good dullar lor every doubtful dime he may receive under its operation. has disastrously hampered our manufacturing industry and made cruel aid relentless war upon the health, the eomfort and the productive energy of the American people. In addition to the so-cal.ed raw materials we have released from their tariff duties cero ? i“P®«-taut articles and manufactures which we have shown o ir capacity to produce cheaper than any other com ir,, such as nig copper and the more important ucncuitural Implements Any urt.de or manufacture which can sustain the competition of like foreign articles in other markets can defy such competition in the home market. Upon the large sizes ot pinte glass, where the duties were even higher, we nave made a reduction of about oue-thlrd. In the iron and steci schedule, beginning with free ore ami a duty of 22 H per cent, on pig iron, we have reported a scale of duuett considerably below those of the existing law, graduated according to the degree of umuufocinre. wuica should bring beneut to the consumer without culling for any bait in the imperial pr gross of that greut industry In our Conn,rThe cuty upon steel rails has been put at 25 p r eeiit, which, according to the report of ou* department of labor, quite compensates tor all difference in the cost of production in this country and. aoroad.

In the sugar schedule we should have preferred to Wipe out at a single executive stroke the existing bounty system. We believe it lobe contrary to the spirit Of our institutions, and can conceive of no circumstances under vvhich. we should have advocated or approved its introduction into our laws. We have found lb existing there as we fi.nl tt virtually existing in every other schedule of the tur if, and dealing with it in the more open uuu offensive forms, as we have dealt with otner seneutuos where large proper.y interests are at stai.e, we have reported a provision fur us repeal by such stages as sha.t gradually obliterate lk from our laws while peruuumg those wuo have invested luige means unuer me expectation of its continuance reasonauie uniti iu wnnh they may prepare to tuke their stand with the other indusiricso. the cuuutry. Duties upon imported tobacco leaf suitable for cigar wruppers, whicu were so enormously advocated by tne act of lsb.i. nave been placed at such hgures as, after caretui investigation, were deemed likely to produoe most revenues to the treasury, but uus tjycvnas aioue decided the rates. Tneir amoUut is so hign that no domestic producer need oiaun tuat there is nut abundanl protection and to spare for his product in them. Ol the staple agricultural products, including meats and provisions, wo are suou large exporters, and must cou.inue to be auou large exporters, that any duties upon tueu: are useless lor protection unu iru.ties*, tor revenue and generally can only be imp* sed feu* the purposo ot de.uuing the farintro in u the Lel.ef that they are receiving some consideration and benelit under tho tar.ff although 100 puces of their proauc.s are tixed iu the aorta's market uz Couipetiiion with like proauc.s produced by th* cheapest labor of tue world. To the la raid's of .he ihuntry we have given U-.taxed agr.cn.tura. unpeincuts aud bihding tame aud uutaxeii .o.iuu ties tor vi-e adduional tx-asou in the latter cane th.ttco.iou is the largest export cr. poi thu country, solo abroad in compctiti, n w i.u the ih ho tabor oi India and of Egypt, bei.ovL.g tha* it was sufficient tor tne p.tva.o u.x gat-er, r U> foi.ovv the farmer in tne nt rt.e.s ok *,ts own country and not to puisue him into all tne markets ol the world. In the schedule of spirits, wine, and other beverages the changes matte ..rv» siignt and with the view to xirodue.iou of ,u.reused revenue from these very proper source.;, of revenue laxat.on. Tile an y up.,n spirituous liquors is put at douh.e ifao iu.ernai revenue tux upon the same, vvhue tee auiu. of ub cents a gallon on s.ill wines Tuipor ed iu. casks is retained, with a proviso uuu.iug tiro highest du.Ks on such wines to t,"i per cent. Tne average rate ok autiea icv.ed under the existing law upon the dutiable goods imported iu 18112 was 487 1 jier cent. Had uie dunes proposed in the present tmi beeu levied upon that year s importation of dunuoic-goods the averitge rate, including tnosu we nave transferred to the free list, Would have been 3U.31 per eeiit., but so many of the rates t.i cue pn sent law are really prohibilory it is impossion; to say whatiia real ra.e ol taxation is, yet it is sate to as hrp. that it is much higher liutu any import tables will disclose. it must be understood, hownver, ihat tho rates aoove mentioued cau ouiy ie Called closely approximate aud nut m.i.ne.ualuiau; accurate, but they illustrate toe extent of luo reciucnous pro{>osed by the present, but, aud tue relief which it will give to tne taxpayers, and especially to the laborers of lilts country. Taking the iinporluiioiis ol lodii, tlie latest, winch were accessible to the Committee when its tables, were prepared, the ne« r,.uce would operate a. reduction of nearly one imrJ of tne dudes 'teUecied under tne tariff; nut Dus great reduction iu taxes uo.ually paid to tne government is no measure «f il.-e liglmt,.ng oi buruen io the taxpayers of tuo uounuiy. Tuat reduction, may no estimated at sevorui mare than, the reduction ol taxes.

it may be said mat we are not justified in. making such a.largo reduction in revenue at a. time when government itee pis and expenditures can no longer be baaaujed and when some new source of temporary revenue must be sought for. We have been compelled to ratal n some articles upon the dutiable nst and toleave some duties nigner. luan we desired because of the present necessities of lue treasury, but no have not telt unvt any temporary shrinkage of revenue should deter us irum iarrying out as lai.bfuUy and. as effectually as.w.e could the instructions given by the American people when tins congress wos pul into power. Our own,experience ..nil turn ol other countries has shown mat decrease of tariff duties immediate,ty operates such. an. enUrgtmeUl of,-com-merce, ui prouuc-tien. and c-cn.-vumjAion as.rapidly to make up any loss of revenue threatesed by tnese rtducUcms. A most important change in the bill proposed frum ihe present law wtu be touud in .he general substitution of.ad Valorem for specific duties. this must always he the characteristic of a r-iveaue tariff levied upon a large rango oi articles, especially when tuey include the plain necc rsaries of lire. A uuiy which taxes according to kind, pound, weigut, measure, or the line,, without regard to quality, tuways oppresses the less- wealthy consumer and lightens the j..st burdeits-of his rtener ieoovv citizens. li is the purpose of the present bill to repeal in tolo seetion d of the tanff aei of October 1, lgilO, commonly but most t rroneotlsly called lts reciprocity I',-uovision. That act placed sugar, niolusscs, oofi.ee, tea anu hales on Uie sree list, but auiborijou the president, should be be satisfied ihai the government or any other country producing such articles, imposed duties upon me agricultural or oilier pcoducts of the UnitertStaies which he might deem reciprocally tin* qual and unreasonable to suspend tuo provision under w hicb these articles w ere admitted into this country tree. This section has brought no appreciable advantage to American exporters, is not in .intention or effect a provi sion for reel procity,but for rwtaliactou. it inflicts penal.ies. upon the American p, up.e by making ihem pay higher prux-s lor these articles, if th* fiscai necessities of other nulioua compel them to levy duties upon the pr'ouuetsof the United I Stales, which, in the opinion of the president, i are reciprocally unequal and unreasonable. I Under the provisions of this section presidential proclamations have been issued itnpos* j ing retaliatory duties upon ihe five above mew I tioned articles, whin coming from certain j countries. These proclamations have nearly - led to ill feeling in the rouutries thus discriminated against, ami in the case of soveral of ; them have led to diplomatic correspondence is ■ which they have claimed with apparent justicß 1 that suuh discrianinattons against them were violations or our solemn treaty obligations.