The commoner. (Lincoln, Neb.) 1901-1923, October 29, 1909, Page 13, Image 15

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The Commoner.
'jBrWTr''w8r ' 9
(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
the tariff off raw materials American
manufacturers can produco 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 the American market
against foreign goods which have
been compelled to pay 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. the 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 Material
Mf 'wo w!shvto 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 chen let us make it
a crime for any manufacturer of
tari Iff 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 the 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 giving 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 the 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. Aldrich 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. Aldrich 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 the duty on hides.
Prce 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 bowls over Mr. Bailey's
other argument that the rat of duty
on the finished product alone fixes
its price. I made that samo argu
ment, and In the main it Is truo, but
both Mr. Bailey and myself must ad
mit that it Is not always true, If wo
have found that when wo have re
duced the duty on shoes it does not
lower their price.
There are some exceptions to the
principle that lower duties raako low
er prices. One of them was referred
to by Mr. Doll Ivor, who said ho some
times amused himself attempting to
apply that principle to commodities
on which the duty was actually great
er than the whole prico of the com
modity in our home market. Of
course that duty was so greatly pro
hibitive that you could cut it half
In two and not lower the price of
the commodity. In that case the
manufacturer was not placing his
price as high as ho could under the
tariff, but he had lowered it to in
crease and encourage consumption by
his own people. It may be so with
shoes. I know the duty on shoes
under the Dingloy 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 rate 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 able to sell
at the samo old price and still keep
out the foreign shoo. If so, he 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 things -wo buy.
No Infant Industries
Again I say wo 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 same protectionists own fac
tories or Interests In factories both
here and in Europe. Here they want
protection against the pauper labor
of Germany and France, there they,
want protection against the skilled la
bor of America. The 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
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 I call you to witness did any
wool senator help lower the steel
tariff? New England, the home 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 name of us who are yet free,
thank God, In the land of the farm
and the plow, that we 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
tOXtilcS? No. thn wnnl mnn nn.l !.,
woolen cloth men mot in Chicago and
fixed their inltlt. siMirwIntn T nm H...t
pf the cry for protection, whether it
bo for Pennsylvania, for New Eng
land or for my nearest nolghbor.
i am ureu roreverinoro!
Henceforth 1HV intnnflnn lu tn irstln
every time I gut a chance to put
ovory article of common use on tho
free list, whethor it bo raw matorial
or finished product. I will vote to
put tho finished product there.
I know that will bring the
raw material. I will vote to put tho
raw material there: I know timt win
help to put the finished product on
tho free list, and I Intend to vote
for ovory reduction except on lux
uries that Is proposed on any articlo
i uun iiol goi on tno tree list. All
protected Interests are banded to-
Buujui mrougn mo anu unto death
to rob the people. I shall cut them
off foro and aft whenever and how
ever I can.
Just one thintr morn fmm Mr
Bailey. He quotes Mr. Bryan as fol
lows: -The third argument 1 dosirc
to present in favo of free raw mit-
terial is that tho tax is generally
lightest which is imposed on tho
products at tho most advanced stage.
ir tno tax increased tho prico of tho
product and It can be of no benefit
to a protected industry unloHA If.
does that Increase grows ovory time
it passes through a now stage of
manuracture. Each one who bandies
the product exacts a nroflt not onlv
upon the original price, but upon tho
tariff, and the tax grows like a snow
ball. The consumer therefore finds
that, other things boine enual. 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 exactly the opposite
conviction in my mind. Ho says that
each one who handles the product
exacts a profit not only upon tho
original price, but upon tho tariff,
If this bo true, then instead of being
an objection to lovying 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 the
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 tho 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 the 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 tho 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 estimate 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 has not gone too far
into the protection camp to be alto
gether unconscious of it. What he
is really arguing ror is a larin mat
gives the most benefits not one that
imnoses the lightest burdens.
U In conclusion, I don't know why
all this discussion has broken out at U I.vlll
rou Kolrct the
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