Rensselaer Republican, Volume 20, Number 31, Rensselaer, Jasper County, 5 April 1888 — TARIFF REDUCTION. [ARTICLE]

TARIFF REDUCTION.

Agreement of the Democratic Major ity iu Support of tne Milla Bill. The report of the majority of the 'ways and means committee that accompanied tthe Mills bill to the House, Monday, is printed. The committee argues at length in support ofk reduc tion of the revenues, and says: 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 interest of the manufacturer, the laborer, the producer and sumer. Thebill 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 k 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, the laborer and the producer of the materials consumed in manufacture. The manufacturer loses the profit on his capital, the laborer loses his wages and the producer of the materials consumed in manufacture loses the market for bis products. Manufacturers, in many instances, to guard against losses by low prices caused by an overy-supply in the home market, are organizing trusts, combinations and pools to limit production and keep up prices. This vicious condition of business could not not exist with low duties on imports. Prohibitory tariffs surround the country with lines of in vestment and prevent all relief from without, while trusts, combinations and pools plunder the people within. The annual product of our factories is now estimated at $7,000,00 ,000, of which amountwe export only about $136,000,* 000, or less than 2 per cent. If we could obtain, free of duty, such raw materials ai as we do not produce, andean 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 m ills running on full time, 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 the manufacturers, many articles now made abroad would be made at home which, while it would give more employment to our own labor, would give a better arket to many articles which we produce, and which wool, hemp, flax and others. In starting on this policy, we have transferred many articles from the dutiable to the free list. The revenues now received on these articles amount to $22,198,505. Three-fourths of this amount is collected on articles that enter into manufacturers, of which wool and tin plate are the most important. The revenues derived fronr. wool during the last fiscal year amounted to $5,899.816 53, and the revenue from tin plate to $5,706,433.08. The repeal of all duties on wool enables us to reduce the duties on tho manufactures* of wool $12,532,211.65 The largest reduction we have made is in the woolen schedule and this reduction was only m ide possible by putting wool on the free list. This is no greater need for a duty on other raw material. A duty on wool makes it necessary to imp ose a higher duty on the goods made from wool and the consumer has'iv par a dcubie tax. —tTW leave wool untaxed the consumer has to pay a tax only on manufactured goods. The Commissioner of Labor’s report shows the true nature of specific duties, and the consumer can see why it is that manufacturers ciamor for them They know the different values of these goods, and what apt words will embrace the high and low prices together, and, make the poorer people pay the same tax for a yard of cloth worth 45 cents that the wealthy do for a yard that costs $3.66; butthat fact the specific tariff conceals. The ad valorem duty taxes everything according to its value. A duty of 40 per cent, ad valorem would have imposed a tax of $1.44 on a yard of broadcloth and 18 cents on the cotton warp cloth that costs 45 cents, and the duty would havel been fair to both. As it is, the tax is 180 per cent, on the cheap cloth and 50 per cenr. on the high priced cloth. In the cotton goods schedule we see the same “vicious, inequitable and illogical” results of the specific duty. On sugar the report says:. We have reduced the revepue received from sugar about 20 per cent., and extended the fir it class from No. 13 to No. 16 Dutch Stamford of color. The sugars between Nos. 13 and 16 are grades of brownsngirs which can g o into consumption without refining, and consumers may protect thaunelves against trusts and combinations by purchasing these grades of imported sugars when the price of therefined is put up and kept up by org in'zed irustaof domestic manufactures. The n.te of all sugars above < No. 16 is reduced, so that foreign refined I < sugars may be imported, to prevent high prices and protect the consumer < against combinations. „