St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1888-03-12
His Plan for Reducing Inter-
nal Revenue Taxation to the
Extent of $7O,OO0,0oo.
Pig Iron Left Untouched--T
Internal Tax on Tobacco
Repealed.
A Short Essay on the Princi-
pies Applied in Using the
Randall Knife.
Special to the Globe.

Special to the Globe.
WASHINGTON, March 11.-Samuel j.
Randall will introduce i'll the house to-
morrow his bill to reduce and equallze
duties Oh imports, to reduce internal
revenue taxes and for other purposes.
In explanation of its terms and scope,
he makes the following statement:
'The bill repeals the entire internal
tax on tobacco and OH fruit brandies. 1t
also repealS the license tax on whole
sale and retail liquor dealers, leaving
these, as recommended by Jefferson, so
that the state authorities might adopt
them.' It makes alcohol used in the
arts free, and reduces the tax on whisky
to so cents per gallon. On the tariff the
bill is careful and complete revision
of the whole tariff system. 1t car
ries to the free lists large num-
Der of articles now paying duties
and which enter into consumption,
either as raw material or otherwise, and
in the production of which there is 10
Injurious competition between this and
other countries. In the revision OF the
tariff, the aim has been intelligently to
apply consistent principles to all
branches of industry; and, in SO doing,
our industrial system has been cOnSid-
cred as a whole, and differing from
other industrial systems in the import
ant fact that the labor in this country
receives larger share of the annual
products of labor and capital combined
than in any other country. This i'm
portant advantage to
TIE LABOR INTERESTS
of the United States the bill aims to
preserve throughout, while, at the same
time, lin fairness to all interests" as
stated in the Chicago platform, ITO re-
duce and equaIize" the duties on I'M
ports. The principles applied to the re-
vision of the tariff in this bill are: First,
that the difference in cost of producing
commodities in this country and other
countries, where there is no climatic or
other natural causes, which can not be
produced abundantly in this country, has
been studied and everywhere adhered
to as the cardinal principle to be en-
forced in any revision Of the tariff. In
such scheme all Industries, of course,
should stand OH an equal footing, and in
noinStance should the powers OF govern
ment be used to elevate one above
another. In other words, our indus
trial system must be considered as
whole in which all who participate in it
share its benefits whether they are en-
gagged in one industry OF in another.
been kept constantly in view and that is
that the line which marks the difference
in cost of producing commodities here
and abroad-in other words the line of
fair competition-iS always and neces-
Sarily above the point of maximum rev.
enue. Consequently to reduce the du-
ties on any commodity below the line of
difference in cost, which, as stated, is
the line of even competition. until the
line of maximum revenue is passed,
nece SSarily
INCREASES THE REVENUES.
On the contrary, to raise duties from
the line of maximum revenue by lessen
ing importations, reduces the revenues.
This principle has been kept In view
throughout the bill in the adjustment OF
duties. To determine just where the
line of difference in cost falls is, of
course. in many instances, difficult; but
it may be safely assumed, when i'm
portation in any line of commodities is
large and increaSing-and no good
reason appearing why things can not as
well be produced here-that such duties
are below the cost line, and that the ad-
vantage is with the foreign producer.
If production in the same line is dimin-
ished, or suspended altogether, in
this country, it becomes proof positive
that the advantage is too great to be
overcome without a readjustment OF du-
ties. In such caSeS-embracing, how
ever, but few articleS-there has been
no hesitancy, in preparing this bill, to
raise duties so as to permit these indus
tries to take their place abreast with
others in the country. Where impOrta-
tions are light and increasing it may
consistently be assumed that the duties
are quite high enough and in many
cases may be safely reduced; and, in
case the industry is of such nature as
to permit trusts and combinations of
any kind to raise prices above the
level of
PRICES OR PROFITS
in other industries, then it becomes inn
portant that the cost line should be
closely adhered to; and that has been
the aim in this bill in the industries
where trusts and combinations are sup
posed to have such power. 1t is less
important, of course, to apply this rule
rigidly where prices are regulated
through free competition. In such cases,
under Well-knOwn economic principles,
the tendency is always to general level
in profits, wages and prices in any in
dustrial system. In working out the de-
tails of the bill under these principles,
the aim has been to pare closely and ad-
just carefully the different schedules,
with the object always in view to lower
duties wherever possible and reduce the
revenues. being careful at the same
time to hurt no established industry.
The estimated reductions under this bill
will be: On internal taxation repealed,
S7O,OOo,OOO; estimated reduction on tariff
schedules, $25, 100000. The bill is the
result of great labor and industry, and
is framed after the fullest inquiry and
conference with those directly inter-
ested. The rates will not suit many of
deemed fair and proper response to
the demand for reduced rates in our
tariff laws. The bill is fully twice as
long as the Mills bill, and relates to