The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1889-11-06

imports of foreign merchandise will settle It.
Goods imported into this country are placed In
bonded warehouses without In the first in
stance paying any duty. The duty is not paid
until the owner or consignee enters the goods
for consumption, and he may let them remain
In the warehouse for three years, and at any
time within that period re-export them TO any
| other market in the world. Ii he has paid the
| duty he is entitled to have il returned to him.
During the last fiscal year over seven mill
ion dollars of dutable goods were re-
shipped to foreign countries, and over thirty
eight million dollars remained in the ware
houses waiting have no doubt, favorable
| opportunity TO place them on the market and
that favorable opportunity would be when the
owner could sell at profit, including the tariff
tax that ne would have to pay to withdraw
| them from the warehouse for consumption.
There is no necessity which compels the i'm
porter TO bear the cost OF the tariff In order
that he may enjoy the privilege OF selling his
goods in our markets, as he still has the mar
kets OF the world open 10 him for three years
after his goods have landed on our shores.
There is no question, as have said, as to
the necessity of reducing the federal revenue.
To this all parties are agreed, but as to the
manner in which il shall be done there is
direct and well-defined issue between the DEM
ocratic party and the republican.
The democratic party favors reduction OF
the revenue mainly by revision of the tariff,
so as to relieve, far possible, the neces-
saries of life from federal taxation, and to
place upon the free list such articles, IN crude
or partially manufactured state, as are used IN
our domestic manufacture; and, if n still fur
Their reducIian can be safely made. to repeal
the tobacco tax, except such parts OF it as rest
upon cigars end cigarettes.
The position Of the republican party may be
stated in the language OF its Chicago platform,
follows:
The republican party would effect all needful re-
duction o. the national revenue by repeating the
taxes tobacco. which annoyance and
burden to agriculture and the upon spirits used
in the arts and for mechanical purposes; and by
such revision OF the tariff laws will tend to check
imports Of such articles produced by our peo
pie, the production of which gives employment to
our labor, and 10 relieve from import duties those
articles OF foreign production Except luxuresl the
like Of which cannot be produced at home II there
shall remain larger revenue than Is requisite for
the wants Of the government, we favor the entire
repeal OF internal taxes rather than surrender OF any
part Of our protective system.
This is bold and unequivocal declaration IN
favor Of protection for the sake OF protection.
The taxing power is to be used with view OF
checking imports, and not with a view of rails
ing revenue.
The sO-called doctrine OF protection, as here
tofore claimed by its advocates. extended no
farther than the right to adjust a tariff laid for
revenue so as to afford protection to certain in
FAINT American Industries but the Chicago plat
form demands tariff for protection per sc,
and In that sense it loses its character as
revenue measure and becomes bounty law in
favor OF the protected industries. | am OPP
posed 20 the doctrine of protection
nOunced in the Chicago platform among others
upon the following grounds:
1. That il is a peryersion of the power of
congress ito lay and collect taxes, duties. i'm
posts and excuses" and tends to the establish
ment OF class legislation in its worst form.
2. 1t compels the laborer to engage his
services at the market price fixed on the basis
OF free trade, and TO purchase his supplies at
the market price fixed under the operations of a
protective tariff and this in effect reduces his
wages and decreases the purchasing power OF
the money he receives for them.
3. 1t fosters and cherishes monopoles by
keeping out foreign competition, and thus
enables capital to organize into trusts and TO
control production and prices
1t is folly 20 denounce monopolies and at the
same time uphold a system of laws that not
only make them possible, but encourages their
formation.
A. The products of protective industries are
necessarily excluded from the free markets Of
the world, By reason of the increased cost of
manufacturing under the protective system.
The only market open TO them is the home
market, from which foreign competition is in a
measure excluded. This is especially true
@hen the tariff is upon machinery or material
used in any of our manufacturing industries.
To return to the democratic policy of rev.
enue reform. II is as have stated:
/. To revise the tariff by placing on the free
list such articles of foreign production as are
used as material in our domestic manufactures
and,
2. A reduction of the tariff on the neces-
saries OF life, so as to relieve them, as far as
possible, from the burthens of taxation. The
treasury reports of our imports for the last
fiscal year show in the list of dutiable goods
imported articles crude, or partially manufac-
tured, but for use as raw material in do
nestle manufactures, foreign merchandise of
the value of $136.000,000. The tables showing
the amount of duty paid have not yet been
published, but if we take the lowest average of
80 per cent. we have the very
large sum of S40.OO0,OOO duty paid
exclusive OF freights and profits, $176,OO0OOO,
instead of Sl36,000000 the price at which the
foreign manufacturer could supply himself
with the same article. burthen OF S4OOOOOOO
upon American industries is sufficient to shut
their products out Of any neutral market in the
world. But that is not the only burthen the
protective system entails upon the people; in
many instances excluding the foreign article,
it enhances the price of the domestic articles
and to that extent they pay bounty, but the
government receives no revenue.
While the country is seemingly prosperous
and the people are able to pay for domestic
goods at the high price (which protection
enables our manufacturers to charge and which
they must eharge) in order to make profit
upon them under the protective system) we
do not realize the weight OF the burthen we
are carrying. Ii is only when the limit
Is reached, and the country is suffering from
overproduction, and we look abroad for a mar
ket for our surplus, that we realize
fully this false system of political economy
and the cost. This is well illustrated by Gov
Ames of Massachusetts, in his article on the
present condition of the iron industries of New
England. in which he demonstrates that unless
they can be relieved from the tariff burthens
on raw materials, they will be compelled 10
close up. The same condition exists in regard
to other of our industries, particularly in the
manufactures of wooden goods, although at
present perhaps not to the same extent.
Abstractly speaking, | suppose no person
would oppose the reduction OF the duties upon
the necessaries of life it is only when we I'M
dertake to make a practical application of the
proposition that opposition is encountered
Next to food, there is nothing more necessary
than clothing, and in this rigorous climate Of
ours we need good warm clothing, and vet we
are paying duty OF over thirty millions year
| upon woolens, being at the rate of about 20 per
cent ad valoren, and every effort to reduce or
modify the tariff upon wooden fabrics has so far
failed.
The Mills Bill
In the last congress, the house of representa-
/ tives being democratic, passed what is known
as the Mills bill, and while it is by no means
perfect bill. il step in the right direction.
IL embodied in general the democratic idea of
revenue reform by largely increasing the free
list and reducing the tariff on necessaries, par.
ticularly on wooden fabrics and clothing. 1t
also repealed that part of the tobacco-tax
which more particularly affects the producer,
but left it upon cigars and cigarettes. | will
| examine this measure more in detail before
| close.
II