Ellsworth American. [volume] (Ellsworth, Me.) 1855-current, 1891-02-19
The Drawback Provision of the McKin-
ley Bill

In a recent speech at the Chamber of
Commerce dinner in New York, Carl
Schurz attacked the Mckinley bill, claim
ine that it 80 enhanced the price of the
manufactured goods produced in this
country that it put them at disadvantage
in the foreign market and rendered them
unht for expectation and thus narrowed
and crippled our foreign commerce. and
suggested as \ remedy such a revision of
the tariff Ms will deliver our manufacturing
industries of these artificial burdens which
increase the cost Of the things they have
to use in production, thus permitting t. en-
to obtain those things as cheaply and advan-
tageously As their foreign competitors
obtain them, and in that way giving them
n fair chance for the export trade"
If Carl Schurz had read section 25 Of
the Tariff act of oct, /, 1890, he would
have seen that the Mckinley bill provides
Just exactly the remedy which he desires.
namely, the obtaining of the raw import
ed material which enters into the manu-
facture of articles manufactured or pro-
duced in he United States las cheaply and
advantageously as their foreign competi-
tors obtain them and thus having fair
chance for the export trade"
Section - of the Mckinley bill provides
THAT where imported materials on which
duties have been paid are used in the man
ufacture of articles manu- aCtured or pro.
duct d in the United States, there shall be
allowed on the expectation of such artl-
Clcs . draw back equal in amount to the du-
ties paid on the materials used, less one
per cent. of such duties, provided that the
imported materials, or the parts of the
articles made from such materials, shall
so appear in the completed article that
quantity or measure thereof may be asCer-
tanned" This section is "A new depart
urc in the field of drawbacks and one of
great interest to our manufacturing and
commercial industries This idea of en-
cOuragement of our export trade by draw
backs. which has run through our customs
legislation from our earliest history, has
been gradually developing into broaitr
and more liberal enactments. The earlier
legislation, il Is true, provided for draw
backs on imported articles, but no draw
backs were allowed on merchandise after
it had been withdrawn from custody of
officers of the customs" The tariff act Of
ls6l placed articles 'wholly" manufactur-
ed in the United States from imported ma.
teralS on equal footing with imported
ticles manufactured i'll foreign countries
and afterwards redistrbutcd to foreign
countries Subsequent enaCtmentS pro-
yided for draw back on imported materials
used in articles manufactured in this cOun-
try provided they constituted large per
Ceutage of the manufactured articles, say
30 or 20 per cent. These Were forward
steps. but section % of the Mckinley bill
removed all limitations as to quantity of
the raw imported material and allowed a
draw back of ninety nine per cent of all
duties on all imported materials used i'll
manufacturing or producing articles which
should subsequently be exported to for
eign countries. This substantially gives
free foreign materials, encourages manu-
facture aud production in this country
when the articles manufactured here are
exported to foreign countries. American
laborers and industries are thus fostered
and protected and America get, the advau-
tage not only of producing articles into
the manufacture of which imported mate
rialS enter, but also the opportunity Of
building up large and important eX-
port trade which will prove of great adj
vantage to our commerce. This wise and
beneiicent provision of the Mckinley bill,
Of which our manufacturers throughout
the country are largcl! availlng them
selves, and it, reciprocity provision open
ing up new fields for export trade and
commercial activity without detriment to
the policy Of protecting our laboring,
agricultural and manufacturing classes,
will in the near future show the wisdom
of our Republican legislation in contrast
with free trade legislation proposed by the
Democratic party. The sober, second
thought of the American people, after
reasonable period of testing its effects,
will vndicate the tariff legislation of the
last Congress as a benefactiou and not a
curse as has been claimed by its oppo-
nents.-Editor T, X. Simonton in Camden
Herald