The commoner. (Lincoln, Neb.) 1901-1923, October 29, 1909, Page 13, Image 14
?Tw!XnP' nw wj1 i' wr - r - 4 -. wMnW,ntif)i' - 'ijiUiMnijm)iilrfr'. "' OCTOBER 29, 1809 The Commoner. MR. HARDY'S SPEECH (Continued from Pago 11) In our industrial development where our manufacturers must find a mar ket for our surplus goods, and we are told that If congress -will take tho tariff off raw materials American manufacturers can produce their goods at a cost which will enable them to successfully compete in the markets of the world against the manufacturers of other countries. If the American manufacturer, with free raw material, can ship his products to foreign markets and, after paying ocean freights and in surance upon them, can sell them In competition with foreign rivals, he can certainly take the free raw ma terial and, saving ocean freight and insurance, hold tho American market against foreign goods which have been compelled to p'ay ocean freights and insurance." "With every word of that statement I agree, but I would not correct one wrong by perpetrat ing another upon the people. I would net lay one cent .of tariff for protection of any kind to anybody, but even for revenue, I would not lay a 10 per cent tax to collect 3 per cent revenue. I have shown that with a tariff on his raw material, our manufacturers can not sell as cheaply at home as tho foreigner can if you let the foreigner's finished pro duct come in free. Neither can he pay such tax and sell abroad as cheaply as the foreigner, unless you give him a drawback; and this Is what all parties In all bills have done. "When you tax his raw material and give that drawback, you provide by law that his exports shall cost him less than his goods sold at home, and so force him to charge more' for his goods at home than abroad, in order to make the same profit. Raw Materinl iIf we wish to buy our own manu factures as cheaply at home as they are sold abroad, we .must repeal our duties on raw material. That will eliminate the drawback clause of the tariff bill, and then let us make it a crime for any manufacturer of tariff-protected goods to sell for the foreign market cheaper than he does at home, and then, with the dwind ling list of beneficiaries under the tariff and the masses of the people growing more opposed to tariff bur dens, we will put tho products of the manufacturer, one at a time, or all at one time, on the free list. I want to impress upon you further that every raw material man on earth, when you put a duty on his product, will agree with and join the manufacturer in jiving him a com pensatory duty and an added duty on the finished product, while if you take the duty off the raw material, he helps you to lower and fight the duty on the finished product. In the house, when tho duty on hides was removed, although It af fected only a small portion of the leather used in shoes, there was a reduction on leather and shoes more than equal to the amount of the duty on hides. When the schedule came up in the senate, Mr. Aldrlch sub mitted the hide proposition first and said he withheld the leather schedule until he should find what was done with hides. The senate put a duty on hides, 'and Mr. Aldrlch then brought in his leather schedule, on which there was more than a com pensatory duty. The conference com mittee struck out the duty on hides and accompanied that action by re ducing the duty on leather and its products, so that if the people want ed a lower du.ty on shoes, they got it by repealing tho duty on hides. Price of Shoes Mr. Bailey declared that the price of shoes has not fallen since this action, but, if that be true, It proves too much. It bbwls over Mr. Bailey's other argument that the rato of duty 13 on tho finished product alone fixes its price. I made that samo argu ment, and In the main it Is true, but both Mr. Bailey and myself must ad mit that it is not always true, if wo have found that when wo havo re duced tho duly on shoes it does not lower their price. There are some exceptions to tho principle that lower dutieB mako low er prices. One of thorn was referred to by Mr. Dolliver, who said he some times amused himself attempting to apply that principle to commodities on which the duty was actually great er than tho whole prlco of tho com modity In our home market. Of course that duty was so greatly pro hibitive that you could cut Ir. lmlf in two and not lower tho price of the commodity. In that case tho manufacturer was not placing his price as high as ho could under tho tariff, but he had lowered it to in crease and encourage consumption by his own people. It may bo so with shoes. I know tho duty on shoes under tho Dingley law was entirely prohibitive, since only about $45,000 of revenue per annum was received under that law, I think, on all leather products, and that much would have been received under any possible rato from the Idle rich who would have bought them just to be able to say they were imported. And so our shoe man may be ablo to sell at the same old price and still keep out the foreign shoo. If so, ho will not lower it. I don't know about this, but I do know that the way to make the price of the domestic pro ducts approximate the foreign price Is to lower the tariff, and having got ten one lowering, if that does not help us, real democrats will strive for a greater lowering and not wish to put back a rnw material on the dutiable list and thereby help the protectionists to obtain a raised duty on the thingswo buy. No Infant Industries Again I say wn have no Infant In dustries. Why should wo or any of us need protection? The combina tions, the fraud and lies of those clamoring for protection to protect our. laboring men against the pauper labor of Europe are too clear to fool the sensible laboring man longer. These samo protectionists own fac tories or interests in factories both here and in Europe. Hero thoy want protection against the pauper labor of Germany and France, there they want protection against the skilled la bor of America. Tho same selfish In terests control the governments both here and there and rob the masses in each country separately by form ing trusts to raise the prices of their products and to oppress labor as far as they dare, while in its name they demand laws under which they pile up the millions of their blood-stained fortunes. The great steel trust at Pittsburg demands protection for American labor and imports its employes from so-called pauper Europe. They can't speak our tongue; they work seven days in the week, and don't know when Sunday comes. To protect this kind of American labor, the trusts demand a tariff. Why, Mr. Carnegie himself testified on oath that his Pittsburg mills can and do rroduce at a less actual cost than any mill on earth. But T call you to witness did any wool senator help lower the steel tariff? New England, the homo of protection, is importing its labor by the millions until her population is no longer mainly American. She is grinding both foreign and American-born worker while demanding In their namo of us who are yet free, thank God, in the land of the farm and the plow, that wo pay her a tribute from our toil greater than any ever gathered from subject na tions of Asia, But did any wool senator help to lower tho tax on textiles? No, tho wool men and tho woo en cloth men mot in Chicago and fixed their joint -ohodulo. I am tired of the cry for protection, whether it bo for Ponn3ylvania, for New Eng land or for my nearest neighbor. I am tired forcvermore! Henceforth my Intention is to vote every timo I got a chance to put every article of common use on tho free list, whether it bo raw matorlal or finished product. I will vote to put tho finished product thore. I know that will bring the raw material. I will vote to put tho raw material there; I know that will help to put the finished product on tho freo list, and I intend to vote for every reduction except on lux uries that 1b proposed on any article I can not got on tho freo list. All protected Interests are banded to gether through lifo and unto death to rob tho people. I shall cut them off foro and aft whenover and how ever I can. Just one thing more from Mr. Bailey. Ho quotes Mr. Bryan as fol lows: "The third argument 1 dosiro to present In favo of free raw ma terial Is that tho tax Is generally lightest which is imposed on tho products at the most advanced stage. If tho tax increased tho price of tho product and It can be of no benefit to a protected industry unless It does that increase growB every timo it passes through a now stage of manufacture. Each one who handles the product exacts a profit not only upon the original price, but upon tho tariff, and the tax grows like a snow ball. Tho consumer therofore finds that, other things being equal, tho tax Is cheapest when levied upon tho finished product only because It is levied but onco." Mr. Bailey replies: "Tho main fact which Mr. Bi yan recites as justi fying the doctrine of free raw ma terial produces oxactly the opposite conviction in my mind. Ho says that each one who handles tho product exacts a profit not only upon tho original price, but upon tho tariff, If this be true, then Instead of being an objection to levying a tax upon the raw material it becomes an argu ment in favor of it because it estab lishes what all democrats so much desire, the wider distribution of tho effects of the tariff tax, which must Inevitably reduce Its benefits to some and its burdens to others." Now that seems to me absolutely amazing. If the manufacturer buys wool In London to import and pays Into the treasury 10 cents per pound duty, makes it into cloth and sells it to the clothing manufacturer at a profit of 10 per cent and tho clothier sells it to the consumer at a profit of 10 per cent, both the cloth-maker and the clothier actually making a profit on the tax; that, says Mr. Bai ley, is tho most democratic tax of all, because more people havo gotten some benefits from the tax. He ab solutely forgets that after all these profits have been added to tho tax the poor consumer bears the burden and pays for it all. And you are the consumer, you are Roger Q. Mills' "forgotten man," you are W. J. Bryan's "common peo ple." and this Is J. W. Bailey's "logic," and ho seems to say It se riously. It illustrates my estimato of him. He is assertive, wonderfully re sourceful, brilliant, a great actor, but Incapable of profound thought or ac curate reasoning. He has gotten so infected with the republican idea of tho "wider distribution of the effects of the tariff" that It is bard for me to believe be haa not gone too far into tho protection camp to be alto gether uncoDBcious of it. What be is really arguing for Is a tariff that gives the most benefits not one that imposes tho lightest burdens. 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