Show J I THE TI-IC DINGLEY BILL SILL fy Bv v U. U S. S Senator J. J L. L Rawlins 1 THE general purpose of the so-called so Dingley Bill as expressed in its title was was to raise re revenue and to encourage the industries of the cou country As to revenue it was vas not proposed ed in this measure to deal with internal direct or excise taxes No change was proposed or made in existing statutes upon the latter subjects More revenue was to tobe tobe tobe be obtained if at all by changes in the rates of duty upon imports Those proposing proposing proposing pro pro- posing and responsible for the enactment enactment enactment enact enact- ment of the Dingley Bill had to decide how to raise by tariff duties the needed revenue and at the same time satisfy the demands of their coadjutors for protection to their respective lines of industry Up to a certain lim limit it the imposition tion of f duties may augment tu ment the receipts of the he Federal Treasury and also give advantage to the home producer of the articles subject to the duties when imported imported imported im im- ported over his foreign competitor to toh the h extent of the duties imposed A tariff act reaches the highest standard as asa asa as as- r a a revenue measure when the product of Jf the imports mul multiplied ti plied by the rates of r duty is at a maximum That means the ther r greatest amount of revenue for the support support support sup sup- port port of the government Duties without without with with- out out ut imports or imports free of duty a like alike yield no revenue It is plain that duties may be placed so high as to present pre pre- sent ent importations and aDd thus be as destructive destructive de- de of revenue as free trade or the absence of all duties Any duty upon an n article imported enables the domestic Producer of the like article as against the foreign competitor to sell for higher price in the home market So he is protected If such protection does not curtail imports it may comport with the greatest yield of revenue To such point revenue and protection may proceed proceed proceed pro pro- in harmony When however the cost of production production production tion in this country is reduced to the foreign level and competition here has brought down prices so that foreign goods after payment of the duty cannot be sold except at a loss imports must cease as well as all receipts receipts' of the gov government from that source Whenever Whenever Whenever When When- ever home production may defy unhampered unhampered unhampered foreign in intrusion into our markets tariff duties neither yield revenue nor lend encouragement to home industry They are simply ineffective for any pur pur- pose If an industry at home cannot successfully compete on equal terms with like industries abroad and duties are placed so high as to shut out the latter protection is manifestly afforded at the expense of revenue It follows that all revenue duties upon articles produced in this country are also in some degree protective But the converse proposition is not true Protective Protective Protective Pro Pro- duties may be be so high as to preclude preclude preclude pre pre- clude revenue Concede the policy of raising a large part of our needed revenue by means of import duties and there remains many questions as to how the duties shall be adjusted These latter have given rise to party issues as well as divisions of sentiment among members of the same party One method of adjustment would be to impose the duties only upon articles not produced in this country such as tea coffee and the like ent entering entering enter enter- ring r- r ing into general consumption but this method has never been in vogue It would leave our market free except as asto asto asto to those articles we do not anywhere A s f. f f 1 1 produce These duties would be for forthe the sole purpose of revenue and would f have no protective effects The ar argument argument uW u- u W ment for this method is that it would leave leav the people free to pursue those f lines of industry to which the country ii in its nature and is best suited 4 and to buy and sell at home or abroad A on the most favorable terms which the 2 open markets of the world might afford that those hose in power would b be free from If r I any inducement or temptation to so legislate as to build up one industry N and destroy another or in favoritism to discriminate between classes and sections sections sections sec sec- and that business could be carried on with more safety and profit in accordance with the natural laws 0 of I p trade and industry without fear of disturbance disturbance dis dis- f by the interfering will or caprIce caprice caprice ca ca- price of the lawmaker But in this r. r country this method has never had the i test of experience though it has many sincere and ardent advocates I Another method of tariff adjustment favors the imposition of moderate duties t generally upon almost all articles which may be imported so as to interfere with the eligible and natural pursuits of the people to the least extent to operate throughout the coun country try as nearly equally as possible and not to discriminate I 1 between classes and sections This method looks to the raising of revenue However it does not close its eyes to the incidental advantages resulting fr from m mI the duties to the home producer as I against his foreign competitor Our people are engaged in an almost endless r variety of pursuits and almost everything everything every every- thing imported from abroad is produced to some extent in some part of our extensive extensive ex ex- P. P domain If some duty is laid t upon every article from abroad com competing pet pet- ing with these at home the incidental 1 y w ws advantages are as widely and equitably s distributed among all classes of people t as possible without any sacrifice of revenue r r J q This method does not fail to see that duties upon foreign articles may enable the home producer to exact higher prices in some instances by forming combinations or trusts to the extent of the duties and thus increase the burden of the consumers Now all our people are engaged neither in producing nor nor consuming the same things Some produce produce produce pro pro- duce one thing and some another r Some need certain kinds of articles for consumption and others other kinds What will be used depends much on on locality climate mode of living th the degree of or wealth and the varying customs cus cus- cusp toms and tastes of the people If Ii If certain grades or kinds of articles im imported im j f ported are admitted free of duty it it makes necessary the laving of heavier duties upon other grades or kinds in order to raise the given amount of money for the use of the government just as in the case of direct taxes if a a portion of the property in a State is exempted exempted exempted ex- ex empted the taxes on the residue must be proportionately increased Injustice manifestly results The consumers of of the articles relieved of duty bear no share of the burden of supporting th the government while the burden is augmented augmented augmented aug aug- on that portion of the people needing and anal using the dutiable articles On the other hand the portion of our our ourO O people engaged in in the production of the articles made dutiable are given an in increased increased increased in- in creased advantage at the expense of the producers of the articles made free Iree This may be illustrated by a question i which came up in the Senate at the last last session of Congress The tariff bill proposed proposed proposed pro pro- posed a duty of two dollars per thousand thousand thousand and feet on all aU grades of rough lumber which would include red pine white whitepine whitepine white whitepine pine yellow jellow pine balsam spruce hemlock hemlock hemlock hem hem- lock and all other kinds pf lum lumber ber soft and hard Certain men high protectionists protectionists protectionists until recently who had exhausted exhausted exhausted ex ex- hausted their white pine lands in Michigan Michigan Michigan Michi Michi- gan and Wisconsin became possessed 0 of i kike flike lan lands s in Can Canada da and desired free entrance entrance to the markets of the United States for their lumber It was accordingly accordingly accordingly accord accord- moved in the Senate to make white pine lumber free Had this carried it would have been a pal palpable pable discrimination in favor of this class operating in Canada and against the consumers of lumber other than white while whitepine whitepine pine throughout the country A more equitable and meritorious proposition would have been a uniform reduction on all kinds of lurn lumber ber so that a man building his house of pine would contribute contribute contribute con- con tribute in the same ratio for the support of the government as the man building of spruce or hemlock In the warmer sections of the country cotton cloth is in more general use than woolens A Auty duty uty on the former with the latter free would be a discrimination against the people in the south and as between the manufacturers of wool and cotton if Every candid observer of current history history his hs- tory ory must see and deprecate the predominating predominating influence of organized and centralized centralized cen cen- wealth in the control of legisla legisla- tion Measures enacted at the behest of P this his power are not likely to be disinterested disinterested disinterested and impartial This does not imply that those wielding the power are worse orse than others would be similarly situated They naturally feel called ed pon upon to advance the interests which I they represent s nt Such wealth is found employed employed chiefly in tra transportation banki banking banking bank bank- i ing 1 and manufacturing These constitute a triple ani alliance ance of tremendous power I I Such an all pervading oligarchy of wealth the world perhaps has has not before seen It moulds governmental governmental govern govern- mental policies and its unseen hand handwrites handwrites B writes rites tariff schedules 0 I t. t Not Nt empo employed ed in the crude and extractive extractive extract extract- 1 ive ive ve industries s they are not the objects of its its concern It prefers the urban to the rural the East to the VV West est the North to to the South To accomplish its ends it has utilized the advocates both of MT i free trade and ot of high protection n ma making mak k ing the one class the complement of the other It guards the products of the in industries industries industries in- in in which it is engaged by prohibitive prohibitive pro pro- duties to the delight of the protectionist protectionist protectionist pro pro- I and then hen soothes the troubled soul of the free trader by putting the things it has to buy on the free list Thus deformed protection and limping limping limping limp limp- ing free trade are made to go hand in hand to foster monopoly which by the f same device an and at the same time evad evades s any contribution for the support of the government which it so uses for its own enrichment Since the enactment of the McKinley bill in 1890 more than one half in value of all imports has come in free of duty that duty that is in 1892 per cent in 1893 per cent in 1 1894 per cent This while the McKinley Act was in operation During the same years the average rates rate of duty upon dutiable imports were per percent percent percent cent for 1892 per cent for 1893 and per cent for 1894 Under the Wilson Act in 1895 the percentage of imports coming corning in free was in 1896 in 1897 1997 The rates rate on dutiable imports for 1895 were 41 75 and for 1896 10 1018 18 Fee imports under the McKinley act thus exceeded those under the Wilson Act while the rates of duty on the dut dutiable imports were on an average about ten points higher It is probable that under the Dingley Act the relation between free and dutiable imports will be about medium between the two preceding acts while the rates on imports will be higher than either It would at first impression seem that the effect of the operation of these acts has been one moiety of protection and another of free trade Yet they have been regarded and truly as the most radical measures of protection since the government t was organized Unfortunately the articles article 5 admitted d free were not those necessary things most widely needed and used They have been such as served the interests as a rule of organized wealth such as h. h free raw sugar for the American Sugar free hides for the r Refining Company leather trust free silver-lead silver ores for fort forr forthe forthe r t tr the smelting combination and White Lead Trust free materials for the Glass Trust and so on Recently some concessions to in industries industries in- in r outside the alliance have been beenk k 4 1 compelled but most grudgingly yielded i The general result has been that an article has been made fre free for purposes of d discrimination or made dutiable to toJ J the same end This virus so permeates the recent as asIf aswell If Y well as the former tariff ac acts s t that at its IJ j. j general and final effects will in In my mya my a opinion be most disappointing to those I who expect most from it f |