The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1886-11-25
CARLISLE.
THE KENTUCKY STATES
MAN DELIVERS AN
ABLE ADDRESS.
SHOWS WHY PROTECTION DOES
NOT PROTECT THE La
BoRER-oTHER ITEMS

ooiyad with rreat applause, and spoke as fol
lows: ,., .,...,, a soIf a,,i
dent truth, We cannot AFFORD TO ignore the TACT that
even in this age of philosophical speculation anu
practical knowledge, there are men IN the front
ranks of literature, politics ana business, tiose
who seriously contend that the government can
make its citizens rich and prosperous ny taXlhg
them If these gentlemen should attempt 10 con,
vince the public that the farmer could be maze
more prosperous by increasing the TAX tor hls
land or that the manufacturer could be benefited
BY compelling him TO pay hlgh rate Oh taA aiUh
on his machinery or his income, the aOsurdlE
of their position would De SO apPhrent AZ ~
cite universal ridicule and yet such prop0slu0ns
wonld be no more absurd or unreasonable
than the assertion that the prosperity vi
the people generally can be Increased by imposing
taxes upon their food, their clothing, their bnlld,
in0 materials their means of transportation ana
tools and implements used In thelr INDUSTRY,
Taxes do not create wealth, they destroy IL. An
taxation whether II be direct or ln1lrect, ana no
matter how 1t may be disguised or IN what manner
lie payment may be enforced, Is ultimately
charge upon labor, while It's immediate ana lnYa-
riabe effect is TO withdraw the inl amount VI laA
alton from the productive industries OF the PEG
nle When IL is equitably imposed Tor puDnc
purposes only, and its proceeds honestly USED
In defraying the necessary expenses anu lhee,
ING the jubt obligations OF government, all
are equally benefited, and no one has tue right To
complain But when the tax is imposed upon one
part of the people, or one class OF Industries, sun
ply for the purpose oil increasing 'le ploHee Va an
other class of ndustres or when the tax is so lald
that te necessary effect is to increase the prOhts IN
some indusrie at the expense OF others equhIl!
merioriors, the impOicy and injustice OF the pro
,eesinr are too obvious To elulie comment. 40
solute equality in the adjustment OF the rates OF
taxation and in the designation OF articles upon
which II shall be imposed, Is not 10 oe eNpecteu,
and In fact is not attainaOle, but substantial
eonaity and uniformity are essential elements In
every just revenue SYSTEM ,,
So long as the power OF taxation Is lhCTehseu
only for the purpose OF raising revenue lor we
mt ha nriuHinips
and uniformity, in large degree al least. But
when the power is perverted ana used 10 increase
the profits of private individuals and prevent the
collection Of revenue by the government, II Is I'M
nossihle 10 regulate lis exercise by any rule or
principle, except tavoritism and selhshness III
such case equality and uniformity would heces'
sary defeat tue primary OBJECT OF inc TAX, because
IL is evident that II all were compelled 10 pay IN
equal tribute To each other, nobody would ne ben
ehed and IL lie just as evident that II all DO not
nav equal tributes somebody must be cheated.
American industries, (and by these mean TO
include every honest ami useful occupa'
tion) can not be promoted by any
system of taxation, or any pollcy OF leg,
islation which Discriminate between them ana
compes ole to contribute part OF its own earn |
ings 20 increase the profits or prevent losses In the
other. There should be no eXpatiated or perse-
cuted industries in this country. There should De
no ranks or degrees among the legitimate occupa |
tions of the people, nor any road TO the favor or
bounty OF the government not open TO all alike
Mining and manufacturing, and occupations de
pendent upon them, are great ana valuable INDUS |
tries, and should be cherished and promoted In |
every proper way. They afford employment To
many millions Of capital and many thousands OF
aborers and their products contribute Largely To |
the wealth and comfort OF tle people but they
are not by any means, the only American indus
tries ia households of poor, In fields and forests
In the mines and factories, in stores or shops, Oh
railroads and canals and rivers, on nigh seas
everywhere-there are American industries |
struggling with the mighty forces OF
nature and subsiding, combining and utilizing the |
elements of eartu and air, and any view OF our in
dpstrial system which fails TO comprehend all
THESE necessarily leads to partial and erroneous con
illusions. Taking that broad view OF them which |
comprehends the smallest as well as tue greatest
and appreciates the interests OF the whole Instead
of a part only, 1t is Impossible to understand how
their growth and prosperity can be promoted by
taxation In any form. IL is not dihcult To see
how a system which prevents competition and
therefore, increased prices may enable an lndivdu
al who has capital involved in particular industry
TO realize profits instead OF suffering losses but II
is manifest that this must always be done at the
expense of consumers of his products who are also
as a general rule engaged in industrial pursuits
In every such case the actual losses are precisely
the same % II competition had not been prevented
and prices had not been increased. But instead of
being borne by the individual who carries on the |
business, they fall upon the purchasers of this
product, and are paid out of the earnings OF other
Industries. The other industries, therefore, not
only make good his losses, but pay him profit
besides, thus giving him bonus for investing his
capital and wasting his skill ana LABOR In an I'M
profitable business
That taxation for protective purposes has result |
ed, SO far, in a continuous waste of capital and OF
labor In this country Is conClusyely shown by the |
present condition of the socalled protected indus
ires and by the history of our legislation on the
subject The advocates OF the system proposed II |
only as temporary sxpedient to aid In the per,
manent establishment of certain industries, and
insisted that after few years OF dependence upon
the bounty of the government and people, they
would be strong enough to stand alone and com
f..l1. .at0h NlNasr NfN- ia -
In the home markets, but in all Others.
Under the influence of this argument,
the first protective tariff was enacted in 1910, and
vet after seventy years have passed, many OF the
same industries which then asked mpOrary as
sistance are now demanding these double rates OF
the duty then deemed sufficient, and their accred-
tied committees and organs unanimously declare
that unless these enormous bounties shall be ia
definitely continued these industries must cease to
exist According to their own showing the policy
inaugurated nearly three'quarters OF century ago
for the purpose of rendering them independent and
eelsustaining have had exactly the opposite effect
Its constant tendency has been, and is now, TO i'm
pair their ability to compete with the products of
similar industries elsewhere, and TO make tnem
more and more depen0ent upon the bounues and
special legislation for support 1t has added
largely To the cost OF production by increasing the
pri. e Of machinery and materials, and the neces'
saree of life. II has confined the products OF so
called protected industries to home markets eX-
clusiyely, so that the amount OF production must
be regulated by the domestic demand alone, and
operations must be suspended when that demand
shall be satisfied.
il has obstructed International exchanges, thus
partially excluding the products OF our other IN
dustries from profitable markets abroad, dimln-
ishing their earnings and arresting their growth
and prosperity. Ii has provoked other govern
ments TO resort to retaliatory measures discrimi-
mating against our products and trade in their own
markets. and giving preference TO the products and
trade of our most formidable rivals, and here, at
home, by encouraging capital and labor t. rely
upon legislation for profits rather than their own
capacity. IL has greatly smpaired that spirit OF
Independence and enterprise which is absolutely
indispensable TO the successful prosecution of bust
ness In this age of improvement and progress.
This Il only few of the evils which the existing
system of taxation has inflicted upon the country.
Many valuable industries, which would have
hourished without IL, have been tortured TO death
by its unequal burdens and unjust Determinations,
willis others have been crushed by combinations
and monopolies, which IL creates and sustains.
Some have prospered in spite of it. but the source
of the peoples wealth, the aggregate aCcumula-
ton of savings in all branches of industry, is
doubtedly much less than it ought to have been,
and would have been under more equal revenue
system and more liberal commercial policy.
few have become very rich, but many have become
very poor, and the gulf between luxury and penury
Is growing wider and wider day by day.
This unnatural and dangerous condition of at-
fairs could not possibly exist in young and rapidly
developing country like ours, If the laws and regu
lations affecting the creation and distribution of
wealth were just and equal in their operation.
With friendly soil and friendly climate, with in
exhaustible stores of coal and iron, the two most
powerful material agencies in our modern civiliza-
ton: with vast extent of unoccupied and unde-
nd