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The Commoner.
VOLUME 11, NUMBER 2S
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The Commoner,
ISSUED WEEKLY
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THE COMMONER, Lincoln, Neb,
of tho depleted and depleting condition of tho
public treasury, as a result of republican oxtrava
gance, a tariff of 20 por cent ad valorem on raw
wo.ol is now proposed as a revenue 'necessity.
Henco, I take it that tho duty of 20 per cent
ad valorem on raw wool in this bill was because
of tho rovonuo which this item will produce. In
other words, an ad valorem rate of 20 por cent
on raw wool will produdo more than $13,000,000
In revenue, and the necessity for raising this
revenue explains why wool is not on the free
list in this bll. And I also take it that just
as soon as the state of the public revenues will
permit, raw wool will be placed on tho free list.
Wo all know that tho appropriations have been
made, aggregating more than $1,000,000,000,
for the next fiscal year, and by a republican con
gress, and the necessary revenue must be raised
by this democratic house.
Robert J. Walker, the great democrat, who
was secretary of the treasury in 1845, laid
down the following rules, which ought always
to be strictly observed in tho writing of a demo
cratic tariff bill:
First. That no more money should bo collected
than is necessary for tho wants of tho govornment
economically administered.
Second. That no duty bo imposed on any article
above the lowest rate which will yield tho largest
amount of revenue. b
Third. That below such rate discrimination
may bo made, descending In tho scalo of duties,
or, for Imperative reasons, tho articlo may bo
placed in tho list frco from all duty.
Fourth. That tho maximum rovenuo duty should
bo lmposod on luxuries.
Fifth. That all minimums and all specific duties
should bo abolished and ad valorem duties substi
tuted in their places, caro being taken to guard
against fraudulent invoices and undervaluations
and to assess tho duty upon tho actual market
valuo.
Sixth. That tho duty should bo so imposed as to
operate as equally as posslblo throughout tho
union, discriminating neither for nor against anv
class or section.
Now, Mr. Chairman, there has been some
dispute as to what the policy of the democratic
party has been with, regard to free raw ma
terials, so let us examine tho record and ascer
tain tho policy of tho democratic party at all
times in the past when the question of free raw
materials was being by it considered. I take the
position that untaxed raw materials of manufac
tures has been the policy of the democratic
party, and desire to submit the proof. In a
letter written to tho people by Robert J Walker
November 30, 1867, he uses the following lan
guage: But tho tariff of 1846, although it re
mained much longer In operation than any other
tariff and produced much moro beneficial result
.was susceptiblp of Ercat improvements, especially
in its application to tho presont condidon of our
country. First, tho raw material of manufactures
as recommended in my first annual report, should
bo duty free, as is tho practice of all enlightened
nations. This proposition then made by mo was
to some extent defeated at that time by Mr. Cal
houn. His argument was this: That, so far as no
revenuo was collected on tho raw material of
manufactures Imported here, wo must make good
tho loss from other articles, and that this was an
unjust and unconstitutional discrimination in favor
of American manufactures. My answer was, first,
that it would never be unconstitutional to permit
any ono or moro articles to como in duty free;
second, that Mr. Calhoun had agreed to a largo
free list in tho compromise tariff of 1832; third,
that, In point of fact, there was no real loss of
revenue, but a real gain, resulting in this way:
That as our Imports were measured by our exports,
specie only liquidating occasional balances, and
that as we reduced our exports wo were necessarily
diminishing our imports and decreasing our
revenue. To illustrato this I said that dyestuffs
are now frco from duty and wo havo a consider
able export of dyed goods to "foreign countries; but
if wo impose a tax upon dyestufTs, which are ad
mitted duty frco by all other countries, wo shall
either annihilate or gradually diminish our exports
of dyed goods, correspondingly decrease our Im
ports, and diminish tho revenue. This proved to
bo the case, as is shown by tho tables of our ex
ports of dyed goods under the tariff of 184 G as
compared with those of 1842. After a close in
vestigation of this subject and after examining
the tariffs and tho manufacturing establishments
of foreign countries In 1851-52 and 1863-C4 I am
convinced that to admit tho raw material of manu
factures in all cases duty free would greatly In
crease our wealth, augment our exports, imports,
and revenues, and diminish tho burdens of taxa
tion. Let us remember that in taking the duty off
the raw material tho consumers tho people of tho
United States get the manufactured article at a
lower rate. This, then, is another step in tho re
duction of taxes.
Mr. Chairman, you will observe that Mr.
Walker says the then distinguished senator from
South Carolina, Mr. Calhoun, defeated the
proposition of free raw material in the tariff
bill of 1846. Recently I was reading one of Mr.
Calhoun's speeches on the tariff and found this
expression: That a tariff law should be writ
ten so that there should be "equal burdens and
equal benefits." Which at first blush is very
confusing. But upon analysis from a demo
cratic standpoint the fallacy should be easily
discovered. In tho first place, to my mind,
it is not democratic doctrine, for the reason
that the democratic party has always held to
the proposition that any tariff is a tax and
any tax is an evil, therefore, they should be
laid so that tho burden shall be as nearly
equally borne, as is possible, by all the people.
But when you go one step further, as Mr.
Calhoun did, and say that a tariff should
also be laid so that the benefits should be
equally distributed among the people, then
you destroy the dootrine that taxes are bur
dens, and, therefore, evils, but you say in
effect that taxes are good things and put money
into tho pockets of the people. I say that is a
republican doctrine and the very doctrine that
tho republican party has always carried out in
their tariff legislation, and the effect has been
that they have legislated money out of the
pockets of the people and placed it in the coffers
of the special interests. By their tariff legisla
tion they have enriched the few at the expense
of the many. By their tariff legislation they
have made it possible for one man to get with
out earning what another man earns without
getting. "They have enabled the slimy hand
of greed to pick the pockets of the poor." (Ap
lauso on the democratic side.)
Mr. Guthrie, secretary of the treasury in 1856
made tho following statement regarding free
raw materials in his recommendation of the
tariff bill of 1857:
In recommending for tho third time tho vnmnani
ing the schedules of tho tariff act X l846Tand tho
reduction of tho rovonuo from customs, I have felt
constrained, by a conviction of its propriety again
to recommend as ono of tho modes of reducmir tho
revenue, that tho raw material used in our manVi
facturos should bo admitted free of duty manu-
Under laws of great wisdom and forecast nil
K?Kn mr' with beneficial ! oKplo55nt ?2
their tonnage in making tho exchanges
Slout&
SSSfi ln, th UnItod States and Tse?1n tho ?2S"
deny to the raw material produced In ? those 1
tfi nd us?d In, our factories the same f ?oed2m
thus failing to allow the same constant and Drofl?'
ablo employment of our capital and labor rK.
samo beneficial occupation of the Thomo nZ'a rJB
market with cheap articles of our ?wS maSufa?1
ture and the samo beneficial employment of '2
tonnago in making tho exchanges our
Further on in this same report this great
democrat says: s
The principle is recognized that taxes should
t0Vftrbi? lov,cd or thQi purpose of 'rovonuo. and I
think it clear, lnasmuph as tho duty Isnot nmSinri
that tho principle would not bo vinilffi h
authorizing tho admission of the raw material s
n our manufactures as proposed freoofdStvT?
is suggested in contravention of tho legislation It
other nmnufacturing countries, and as an indirect
reduction of taxes on the consumer of tho homo
manufactured article, and may well, be considered
a step in advance toward free trade! """t-rea
Hon. William R. Morrison, of Illinois, report
ing the democratic tariff bill of 1886 and he
was speaking for the democratic party in tho
lower house of congress among other thines
said: '
The duties intended to bo removed by tho bill
are chiefly those which tax articles used by our
own manufacturers, which subject them to a hope
less competition at home and abroad with tho
manufacturing nations, none of which taxes such
materials, that our own manufacturers may suc
cessfully compete both at homo and abroad with
manufacturing nations which do not tax materials
thus securing markets for tho products of hands
now idle for want of work to do. nanus
Mr. Mills, in 1888, in reporting the Mills bill
to a democratic house, and which was adopted
by a democratic house, made the following
statement regarding free raw materials:
With the markets of the world open to us our
manufacturers may run their mills on full time
f0n0ntant employment to their laborers, with a
KSfyflncrcas?ff rate. of wages. With tho mar
S25 nihe world open ,to the sal of their products
iViiT?11?1110 an .a(itlvo and con8tant demand for
i.hc ra-w materials required ln manufactures
which will stimulate, promote, and reward the wool
growers and the producer of cottSnT hemp? flax
WneSUr;?: and other materials of manufacture
W,aro tne Merest producers of cotton in tho
world, we aro second in tho production of wool
W0,Pt on the markets annually quantities of hemp
Who?' and oup country is fulfof ores and coaE
Jn aM,W0 necd ,Is manufactures enough to consume
crLtonnnno.al Product of these materials and
Smoa" active demand for them, so that our
workmen may bo constantly employed and
thlseIourhiSl,?,ric?8 for theIr labr- oP acS?mpflsh
Sin manufacturers must havo markets for tho
fninii ?t,t5iriwarcs W theso markets are to bo
SEn tfe ?!P countries as well as at home. To
take tho foreign market from the foreign ma"hu
fu?r Wu must Produce our goods at a loweV
avl SabS? ni nV ?h, Pincipal elements of cst
?2i ?i a material. In many of our manufac
tures the labor cost is lower than in any country
nwhhnnrLd' a?d ltt th0 C08t of materials wo?S as
ri as ln focign countries wo could produce
ro00ds more eaply than they and largely in-
m3 rnIfeX?orts to foeIen markets. The dn
St $7P000 000 non0n? manufactories Is now estimated
Shoiit Si'A n!in0nfinOf whIch amount we export only
about ?136,000,000, or less than 2 per cent. If wo
xnnliohUl? freo ,f duty auch raw materials as wS
do not produce and can only bo produced ln foreign
countries, and mix with our home product in thS
various branches of manufacture, we could soon
W?thannJi oxports several hundred millions
With untaxed raw materials wo could keep our
mills running on full time, our operatives in con-
SS. ;Sipi,0?m?n,t and haVG an active demand for
L?aT materials in our own factories. If thero
2?d no duty on any materials entering Into
manufactures, many articles now made abroad
would bo made at home, which, while it would
glvo more employment to our own labor, would
give a better market to many articles which wo
produce and which enter Into manufactures, such
as cotton, wool, hemp, flax, and others. With this
end In view we havo gone as far as wo could and
done what wo could in tho present condition of
things to place our manufactures upon a. firm and
unshaken foundation, where they would have ad
vantages over all tho manufacturers of tho world.
Our manufacturers, having the advantage of all
others in the intelligence, skill, and productive
capacity of their labor, need only to bo placed
on the same footing with their rivals in having
their materials at the same cost in tho open mar
kets of the world.
It will be remembered, I am sure, that when
this bill reached the senate from the house,
naturally the republicans were prepared to war
against its adoption in that body, and did attack
the measure from every possible quarter, but in
obedience to the pledge of their party to the
people and in compliance with the command
from their own consciences, we find supporting
this tariff bill in opposition to the forces against
them, with all the strength and power that
knowledge of being right gives in battle, such
' tried and true democratic senators as Isham G.
Harris, Z. B. Vance, Daniel W. Voorhees, and
James B. Beck, who were the democratic mem
bers of the committee in the senate having this
bill in charge.
Hon. Richard Coke, in a speech, in, the United
States senate, I think, stated the democratio
position very clearly when he said:
Give us free, untaxed machinery and freo raw
material, such as coal, ore, wool, jute, and other
textile products, theso being tho bases of all
manufacture; a tariff devoted solely to raising
Jy,Knuo fo5 support of tho government will
doubly protect tho American worklngman's wages
and send our cheapened goods without handicap
Into foreign markets to moot and defy tho competi
tion of tho world.. All tho reasons for placing raw
21-118 0Kn b eo llst apply with twontyfold
power to tho machinery which manufactures It.
fl" ono Pound of machinery engaged in the
m?aiJ.utactur? ,f any article on tho dutiable list, or
lJSY material entering into any such article,
!UHdJPay a 8lnSlQ penny of tariff tax. All in
SSiJifanci?"j. eveiT hindrance, every ounce of
lZ?Siy v ican o removed from our products
22id-b? taken away and American energy, re
Jf' JnvcnUon, skill, and genius given a fair
opportunity of winning primacy ln tho commorco
2L- wor,ld When this grand consummation shall
it?UiT,as Jt must sooner or later, and tho sooner
iter' tno, Products of tho worklngman's labor,
5V0, " ,r conflned to the home market as now, with
its ntful seasons of high demand and glut, or to
tho manipulations of combines and trusts, will find -