National Republican., 1883-01-17


lector or the secretary Of tho treasury that he
was innocent Of any fraudulent intention.
Mr.. Sherman said that if the tariff policies
of this and of other countries were to be dis
cussed upon every paragraph this bill would
never be disposed of, and he felt that he ought
TO apologize TO the senate for occupying time,
in the present condition of business, in reply
ing to speech so general in its character as
that of the senator from Kentucky That
senator had attacked an axiom recognized by
all civilized nations as their guide in tariff
legislation, namely, the doctrine that in levy
ing duties on imported goods tho duties
should be madc specific, instead of ad
valorcm, wherever practicable. This was
the principle accepted in France and
Germany, and the country whose rcc-trado
policytho senator from kentucky approved
so highly, Great Britain, levied mono but spo-
cifc duties on importations, except in the
case of one article, the essence of spruce. The
advantages of specific over ad vaorem duties
were as well demonstrated as any of the AK
IONS of Euclid. But there were certain arti-
cles to which, from their nature, the specific
system did not well apply and in those cases
IL was necessary TO resort to ad valorcm duties.
Iron was an article to which, from the great
variations in value of its different forms,
the ad valorem system might be sup
posed to be applicable, but experience
had shown that more certainty was
attained by classifying tho articles made of
iron according to value and levying q specific
duty equal to an ad valorom rate on the ordi-
nary price. Tho same was true of wool and
other articles whose value was greatly changed
by manufacture. Yet the attempt TO avoid
the uncertainties of the ad valorem system by
classifying goods that must be classified in
order to be levied upon fairly, was here made
an argument for resorting TO ad valorem du-
ties. The senator from kentucky had tried
TO strengthen his argument by saying that it
was impossible TO distinguish with the naked
eye the difference between two grades of
wire paying different duties, but tho wire
gauge would enable our customs officers to
tell the difference in moment The argu-
ment against specific duties, that they pre-
vented the consumer from benehtting by the
fall in prices constantly going on, furnished
incidentally an answer to the general charge
against the protective policy that it kept
prices up. That policy, by protecting and
fostering American manufacturing industries,
had brought about the lowering of prices of
which the senator from Kentucky spoke, and
the same policy continued for twenty years
longer would enable this country to proclaim
free trade with all the world. This very article
upon which the senator had chosen to make his
speech, bichromatc of potash, illustrated the
benefits of the protective system. Before il
was manufactured in the United States it
was worth 30 or 40 cents u pound but
an enterprising Baltimorean undertook to
manufacture it here and congress gave the
industry n small protection, and the re-
suit was that the price fell to II cents a
pound, foreign valuation. and 16 cents
pound, domestic valuation. If Congress
had not encouraged this industry the Scotch
monopolist would have maintained his price
and all our calico manufacturers would have
had to pay him tribute. Should that protcc-
tion be abandoned and tho Scotch mOnopolist
allowed to beat down tho American? Com
mon sense and experience answered no
and dictated that congress should give the
American manufacturer all tho protection re-
quired to enable him to maintain himself
and to pay his workmon American wages
In this way competition would reduce the
price of the article, and in time it would be
produced from the mines in California at
z or cents % pound. We ought not u
go back to ad valorem duties, but ought to
continue our aggressive policy, giving all
parts Of the country the same opportunities
for the development of their resources. II
this were done ten years hence in Alabama
and Tennessee there would be great hives OF
manufacturing industry, and Chattanooga
would become another Pittsburg. The iron
| industries of the country were those most
capable of great and advancing development
and he hoped to SEQ the United States
not only the greatest wheat and cotton pro-
ducer but also the great buildcr-the archi-
tect of the world. These results could only
be attained by adhering to progressive pol
| icy, which would protect and encourage
American capital and American labor.
Mr.. Beck concurred in all that Mr.. Sher.
man had said about the resources of the Coun.
try, but he observed that that senator had
not ventured to defend the system of specific
duties levied upon the ad valorem basis. Nc
other country had over adopted that system
| nor had any other tariff bill in this country
ever proposed it to anything like the extent
| that this one did. Notwithstanding the
speech of the senator from Vermont MIR. Nor.
rill the other day and of the senator from
Ohio, he (AIr. BeclS) repeated that this bill
taken schedule by schedule, would be found
to be an ingenious effort to increase duties
and to promote frauds upon tho revenue
| He believed n sta tement which he had seen the
other day. that the cotton schedule as reported
by the tariff commission involved an increase
over the present duties Of over q million
dollars. AS to iron and steel, he had consulted
the bureau of statistics and had received @
letter, signed by Joseph Nimmo, jr., which hC
would embody in his speech, and stated, in
substance, that the imports during the tisca
year ending June 80 1882, had paid about
S22, $4,000 duty under the existing law, and
would have had to pay about $26S50,000 il
levied upon at the proposed ratc-an increase
of over II per cent.
Mr.. Allison asked Mr.. Beck what he meant
by the proposed rates"
Mr.. Beck replied that he meant tho rates pro-
posed by the tariff commission. He agreed
with very sensible Boston gentleman (Mr
Endicott) who had said that if congress really
| desired to make tho labors of tho commission
result in u reduction of taxation, the effective
mode would be to lay the bill on the table and
enact the report.
Mr.. Morgan thought that bichrOmate ot
potash was a very good item upon which Il
! discuss the merits respectively of the two sys
| tens of leyying duties, bccausost was a simple
article, with no confusing classiflcations. The
senator from Ohio (Alr. Sherman) secuted the
idea of going back to the exploded system o
ad valorem duties; yet the committee O
which he was q distinguished member had
reported to the senate the bill by which about
80 per cent. of all the articles enumerated in
il were to be taxed on the ad valorem plan
Between pages 63 and n he (Mr. Morgan
had counted 11i articles set down for taxa
! tion, and of these 100 were to DO taxed
on purely nd valorem basis He noticed
too, in going through the schedules, that ont
article was taxed ad valorem, while another
of the same class was taxed specifically; anC
il would be necessary for the committee to eX
plain this, for no man not in the secrets of the
business could account for this changing
backward and forward between the two sys
tens. One thing, however, was clearly mani
fest, that large manufacturing establishment
importing articles to be used in their manu-
features were to be allowed in nine cases Out
of ten to bring them in ON ad valorCm
duties while in nine out Of ten of the
other cases, the articles consumed by the peO
pie who pay the taxes were TO be visited will
specific duties. Yet. in the face of these facts
the senator from Ohio would have the senat,