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AUGUST 2, 107
The Commoner.
7
A CABINET OFFICER 'S FRANK TALK
After Senator Hopkins of Illinois, had hold
a conference with Mr. Roosevelt at Oyster Bay
ho announced that "the conclusion was reached
that no tariff revision should be undertaken
until after the next presidential election."
"It would be suicidal to the republican
party," the senator added, "to undertake a re
vision ofaho tariff during the next congress.
'After the presidential election I believe it will
bo the duty of the republican party to revise
the tariff and that it will be done."
Mr. Hopkins remarked that he believed
- such an argument would appeal to and be ac
cepted by the republican revisionists in all parts
of the country. x
If these "arguments" do appeal to repub
lican revisionists they are certainly a susceptible
lot of people. These people ought to know that
there is no hope for tariff revision after or be
fore election day.
,,. Commoner readers may remember that at
the beginning of the Roosevelt administration
there was considerable talk about revision and
some republican editors and members of tho
party s- rank and file really imagined that there
Is hope, for that reform at the hands of the re
publican party. So great was this expectancy
that a cabinet officer speaking to Walter Well
man, then Washington correspondent for the
Chicago Record-Herald, frankly stated why
tariff revision under the republican party is im
possible. Without naming his authority Mr.
Wellman printed the Interview in the Record
Hera d of August 12, 1902, and in the Record
Herald of August 16 Mr. Wellman indicated that
the cabinet officer referred to was Mr. Shaw,
then secretary of the treasury. -
In the beginning Mr. Wellman quoted a
member of President Roosevelt's cabinet as
saying: -
"It Is all nonsense to talk about a re- '
vision of the arfff. it can not be done.
' . Wfe may as well understand that at the
outset. Republicans who are demanding
revision are demanding the impossible."
f V?S!a,nati,?nB were given for the state
ment that "it is all nonsense to talk about tho
revision of the tariff." The first explanation
was that Senator Aldrich and other eminent
republicans in the senate would not permit tariff
revision. The second explanation was that tariff
revision might result in a panic that would
topple over" all of the industrial combinations.
It seems that the action of the Iowa repub
lican state convention and the sentiments ex
pressed by1 a number of leading republican news
papers favorable to tariff revision had impressed
upon administration leaders the necessity of In
forming their fellow republicans that tariff "re
vision is an impossibility and that it would be
.wise to abandon all hope on that line.
Mr. Wellman quoted this cabinet officer as
Baying:
"Let us suppose that the republican
party tries to revise the tariff, and tries
honestly. We might &-t a good bill t'-rough
the house, but in the senate it would be
fixed to suit Mr. Aldrich, the leader of the
high protection element, and his followers.
When we got a bill through we might have
revision, but it might be a revision upward
instead of downward. Every one knows
, that it is impossible to put a tariff 1111, big
or little, through, the senate if Mr. Aldrich
objects to it."
Mr. Wellman then asked:
'.'Do you mean to say that the republi
can party is impotent to reduce the tariff,
no matter what the popular demand might
be? Do you mean to say that your great
, party is subject to the will of one man?"
The cabinet officer replied:
"I mean to face the facts as I find
them. Our party passed the McKinley law,
..and that law put the tariff higher than it
had ever been before. We enacted the
Dingley law, and its average duties are
higher than the average of the McKinley
law. As the senate is now constituted I
see no hope for any proposition to revise j
downward. We may bring on an agitation,
and that agitation may unsettle "business
and interfere with prosperity. It may pos
- slbly result in some revision, but I can not
for the life of me see how it is going to
be revision with reduction. If wo go
through all this turmoil and unsettling for
the sake of getting a tariff just as high or a
llttlo higher I think we shall feel very fool
ish when It is all over.
"Our friends out in Iowa think they
want some revision of tho tariff. So do our
other friends, tho retail butchers. But I'll
wager something pretty they can't agree as
,lo where the protection shall bo taken off.
The butchers want free meats, but if the
Iowa republicans want tho tariff taken off
cattle and other live stock they have failed
to make their wishes known. I venture
the assertion that a proposal to take off
the live stock duties would bo very unpopu
lar in Iowa. The tariff is largely a local
question, after all. One section won't have
one schedule touched and another won't
have another scheduled fooled with, and
then there are men like Aldrich who will
raise hades if tho duties on doll's eyes are
shaded a hair's breadth, and who will log
roll and makd combinations and help
everybody who will help them to take caro
of dolls eyes."
Mr. Wellman then asked: "Are we to un
derstand, Mr. Secretary, that tho Roosevelt ad
ministration Is opposed to tariff revision?"
The cabinet officer replied:
"I do not pretend to speak for tho
administration, but only for myself. Thero
is great danger that our people wilf work
themselves itno a state of excitement over
the revision question without understand
ing the difficulties that stand in tho way.
If they force the republican party to do tho
revising they won't get the sort of revision
they want. Jf they put the republicans out
and bring the democrats in they won't get
what they want, either. Fortunately the
senate is republican for years to come, but
if such a thing were to happen as the demo
crats getting full control of the government
and they were to enact a tariff law like the.
Wilson act we should have a dreadful panic
in this country, probably the worst wo over
had. Do you know that If we had today
tho customs revenue which the Wilson law
provided we should have a deficit of $200,
000,000 a year, with gold exports, gold at a
premium, the government forced to aban
don the effort to maintain parity between
gold and silver and compelled to give two
silver dollars for one of gold; and this, of
course, would spell disaster."
Mr. Wellman then said: "Your conclusion
then, Mr. Secretary, is that agitation for tariff
revision is unwise at this lime?"
The cabinet officer then made perhaps tho
most interesting of the several interesting state
ments in the interview. He said:
"Yes, agitation Is the worst of it. Ono
agitation is worse than two revisions, busl
- ness men say, but we can't get one without
having the other. I am well aware that I
may fall under tho criticism of people who
say the protectionists won't have the tariff
revised in good times because they don't
want a check to prosperity, and won't have
It revised in hard times because the country
can't stand it. But I am opposed to agita
tions, notwithstanding the action of my
party friends in Iowa.
"There is widespread belief that no
danger of panic or hard times exists in our
country now. Prosperity is so great and so
general that the people are unable to see
any end of It. I am not an alarmist, and I
am not expecting trouble, but it is true that
wo have today all the conditions for a sharp
reverse. There is a general supposition that
both the banks and the people have so much1
money they dp not know what to do with
It, and that therefore a panic Is an absolute
impossibility.
"Let me give you some facts without
comment. You go out to the farmers and
ask them how they are getting on. They .
will tell you that they were never before so
prosperous. They are out of debt, and have
plenty of money. Ask them where their
money is and they will tell you it is in the
local banks. Call at the country banks and.T ,
inquire into their condition, and their offi
cers will tell you they are all right. Money
plentiful and reserves above 40 per cent.,
x 'Where is your money?' 'Oh, it is In tho
banks of Omaha, Minneapolis, Kansas" City,
r "Ql you RO to tho bakers In Omaha,
Kansas City and Minneapolis, and they will
tell you the same thing. They are In good
Bhapo; reserves 35 per cent. 'Whore is
your money?' in Chicago.' Now go to
Chicago. Samo story. Banks all right.
NovTyoV PCr CGnt' BUt th monoy ,H ,n
"Finally, pursuing your inquiries in
Now York, you will find that both deposits
and lonns havo been enormous. Tho money
is not in the banks. Thero aro only six
national bauks In Now York that have not
boon below tholr reserves since January 1.
You want to know whore this money Is?
Well, $450,000,000 Is loaned by national
banks on tho bonds of Industrial corpora
tions. These corporations Issued bonds in
stead of stocks because tho national banks
can take the former and can't take tho lat
ter. Intrinsically they are no better than '
stocks. In most of them there has been
X LwatGr"curIu&- Horo yo eo whero
$450,000,000 of tho country's surplus
stands against a lot of undigested, promotion-produced
securities. The trust com-
panies have put out millions moro In tho
samo way.
"That Is whore wo stand. It is all
right as long as It is all right. But I don't
want to see anything happen. I don't want
to see these industrials begin to topplo ovor,
to fall against one another and come down
in a heap like children's play-blopks. And
this is one reason why I am opposed toa
tariff revision agitation that might start
things going the wrong way."
It will be observed that It was not contend
ed that tho tariff does not need revision. Ono
objection was that Senator Aldrich and other
republican leaders would not permit tariff re
vision and that tho republican party Is Impotent
to give tariff revision oven though other party
leaders wore unanimous as to tho Importance of'
the reform. Tho other objection was that tariff
revision would start a "topplo" in Wall Street
securities.
How would tariff revision accomplish this
result? This member of Mr. Roosevelt's cabinet
explains it in a most interesting way. Repub
lican leadors have had much to say concerning
tho immense amount of bank deposits and this
member of Mr. Roosevelt's cabinet traced these
bank deposits to New York whero $450,000,000
is loaned by national banks on the bonds of
industrial corporations. He admitted that these
corporations employed a trick whereby they
could borrow this money by issuing bonds In
stead of stock, He admitted that intrinsically
the bonds are no better than the stock. He ad
mitted further that in most of these industrial
concerns there has been "a lot of water-curing,"
and ho pointed out that "$450,000,000 of the
country's money stands against a lot of undi
gested promotion-produced securities." He
pointed out that the trust companies have put
out millions of dollars moro in tho samo way.
"That is where wo stand," said this cabinet
officer. "It is all right as long as It is all right."
But this cabinet officer pointed out that tariff
revision agitation may result in tho toppling
over of these water-cured concerns, and this
cabinet officer didn't want to "see anything hap
pen." He didn't want to see these water-cured
concerns topple over. Ho didn't want to see
them "fall against one another and come down
in a heap like children's play blocks." Ho
wanted the people to restrain theiir disposition
to criticise public policies and to provide rem
edies for public evils. He wanted them to trust
the republican party; to "leave tariff, revision
to the tariff's friends;" to "wait until after the
election;" to depend upon tho political party
which derives Its campaign funds from the tariff
barons for a re-adjustment of tariff schedules in
the Interests of tho people but of course on
"thoroughly safe and sane lines."
All of which being interpreted means that
THE TARIFF WILL NOT BE REVISED by the
republican party after, or before, the election
( in the interests of the people.
"Does it, after all, require much Jirgument
to convince an intelligent person that the shelter
which tho greedy trusts find in the republican
tariff will never be destroyed by a party whoso
campaign funds are contributed by the special
interests that thrive and grow fat through these
extraordinary privileges? -
'- . .
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