Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1882-12-01
A LUXURIOUS VIEW.
The Elections and the Iron Imd,sstyy.
From the American Railroad Journal

The Elections and the Iron Industry.
From the American Railroad Journal
There is perturbation among the iron fur
naces and rolling-mills. The price of
steel rails has declined to $40 per ton, and
great uncertainty hangs about the future
of the prices. This is due in part to the
slackening of railroad constructions; in
part, also, to- the belief that prices of
material and labor have been too high for
the last eighteen months; and in greater
part to the anticipation that congress at
its next session will recast or seriously
alter the existing tariff on importationA
AS weSlong ago foreshadowed the steel
rail combination has felt that the exorbi-
tant duty of 1913 per ton on steel
rails, and $22.4O on iron rails.
imposed for their benefit, could not much
longer be maintained. No doubt before
the elections they would have been willing
to settle upon tariff of one-half of these
much can be saved to incidental protec-
ton. The meaning of the vote recently
cast is interpreted by both political par
ties to be: that taxes must be reduced
that the burdens imposed during the war
shall no longer be kept up twenty years
after the war has ceased, especially as its
chief result is to swell the profits of certain
industries which are now we'll able to stand
alone, and to the purchase of the national
debt at high rates of premium for the
benefit of capitalists who are anything
else than objects of government bounty.
Both Republicans and Democrats will
now make scrambling haste to obey the
popular verdict; neither party deeming it
prudent to be outbid by the other in the
reduction of taxation. Mr.. Kelley, the
chairman of the present committee on
ways and means, is early in the field with
proposition to sweep away the entire
internal revenue imposts, amounting to
more than $156,O0O,OOO a year, This rep
resents about the amount of surplus which
the government has had for the last two or
three years to expend in buying up bonds,
and In improvements of rivers, harbors
and public buildings. The Democrats,
go far as can be discovered.
are divided in councils as to whether
the greater reduction shall be made from
the duties on imports, or from the internal
revenue taxes; ex-Speaker Randall, of
Pennsylvania, like his colleague, Mr.. Kel-
ley, favoring the former, while Mr.. Car
Isle, his western competitor, favors the
latter. 1t is obvious that the intention of
the protectionists in both parties is to
sacrifice the moneys collected on LIQUORS
and tobacco rather than that the tariff shall
be changed so as to injure their special
branches of industry. The presumption is
that the existing tariff will also be attacked.
Not the slightest attention will be paid to
either party to the recommendations of
the existing special commission. The voice
of the people has superseded its mission.
1t the Republicans are wise, in the even
ing of their day, they will offer bill with
i'll the first week of Il 9 coming session
proposing a horizontal reduction of the
existing tariff of 10 per cent. in the year
1889, and an additional 10 per cent. in
1884, and so on until so per cent. shall
have been taken off. In this way the rev.
enues from imports will be but slightly di-
minished, while the manufacturers will be
let down without sudden jar or shock, land
in this way monetary and commercial re-
vulsion may be postponed or avoided. At
the same time the minor items of internal
taxes should be RENTED altogether.
retaining from so to 60 per cent. of
the present taxes on tobacco and dis
titled liquors, and allowing those on malt
liquors to be abolished.
The steel rail combination, like the
national banks, has nothing to expect from
the Democratic party. It is not surpris-
ing, therefore, that some concert of action
has already been had among them, and
that they have resolved to either fill exist
ing orders on half time. or shut down their
mills altogether.
The reports during the week are that
large numbers of men will be thrown out
of employment by the stoppage of rolling
mills. This will be reflected back upon
the furnaces and coal mines. In meas
ure the depression will affect the traffic of
the railroads, especially those which have
coal Or iron industries along their lines,
and thus extend to stock markets, and
thence the alarm will spread all
over the country. AS a political
demonstration, and warming to
the incoming and impstuous Dem
ocrats, this measure will have it's weight
There are few orders in market for either
pig iron or rails, and these few will he de-
SAAAS>Ns WY PASs'CA1S u NOVoLAOho OCilhS
~ nominal. Those who must have steel
rails will be obliged to buy them on the
other side, subject to the present high
duty, or await the result of the struggle IN
congress. The effect will be comparative
stagnatIon of the iron business. The
railroad companies will be able to indem-
nifty themselves somewhat for the loss oc-
casioned by the stoppage of the iron
works by the lower prices for which they
will obtain their supphes-they being
among the largest consumers of iron in
one form or another.
The Democrats do not come into Office
until more than a year hence; and it is in
the power of the Republicans, with their
present majority, to adjust the tariff and
internal taxes so that the will of the peo-
pie will be obeyed, the taxes reduced and
the surplus in the treasury disappear, and
at the same time no violent shock be given
to all those branches of employment in
which America necessarily completes with
Europe.
Hannibal Hamlin is on the ocean, bound
for home on leave of absence. but it is