, 1891-07-25
A THE MKINLEY BILL
EXPLAINED TO ENGLISHMEN BY Mr..
ANDREW CARNEGIE.

The time always comes when a measure can
obtain calm consideration. however violent the
denunciation with which it may have been
greeted. It was impossible that the excite
ment aroused in Britain by the Mckinley bill
should long continue. We may imagine the
Motherland now somewhat exhausted, and
prepared to examine into it's merits and demer-
its under the influence OF reason, not passion.
1t is really remarkable measure IN the amounts
dealt with. in the manner of dealing, and in one
or two other aspects it may be pronour ced the
most comprehensive fiscal measure ever passed
by any Legislature; even greater than the re-
peal Of the Corn Laws, for that was a simple
and direct process-the duties on corn had to
be abolished, Just as in the Mckinley bill du-
ties on sugar had to be. These produced 10
much greater revenue than the corn duties, and
yet one paragraph in the Mckinley bill swept
them away.
Britain has naturally viewed the bill simply
as a highly protective measure; but this is a
very small part Of it indeed. Let me give a
short analysis. The following changes We're
made:
First duties we're increased upon a few
articles; some grades of linens, woollens and
plushes, cutlery and tin-plate, being the prin-
cipal.
Second, duties were reduced upon steel
rails, iron and steel plate, structural iron and
steel of various forms, and some other articles
of less importance.
The duties decreased and those diminished
might be estimated as about balancing each
other, giving the bill q neutral tint, neither
protective not free-tradish.
The duties we're entirely abolished upon ar
ticles hitherto dutiable to the number of seven
ty five articles or groups Of articles, the prin-
cipal of these being jute, hemp, manila,
spirits Of turpentine, briar wood, india rubber
scraps, hat material of straw and other yege-
table fibre, potash, alizarine dyes, Burgundy
pitch, cork-wood, indigo, hides, gutta percha
crude, ores Of gold, silver and nickel, and
nickel matte, phosphates, raw silk, and other
articles generally classed as raw materials.
In the one item sugar an annual revenue OF
fully ten millions sterling was cut off. Sugar
now is as free in America as it isin Britain. Du-
ties upon imported articles are abolished
which yielded not less than thirteen millions
sterling per annum. In addition to the free
sugar which the American now enjoys, the
bill also repeats all special taxes tina t were IN
force "upon dealers in leaf tobacco, manutac-
turers of cigars and pedlers of tobacco The
duties levied upon works Of art are likewise
reduced one half. Of course these should
have been abolished, but q reduction from 30
to Is per cent was all that could be carried at
one time, although the majority of the Repub-
lican party favored placing art upon the free
list.
After this short statement, / think that 1t
will be agreed that the Mckinley bill would
have been an important measure even Il 1t had
stopped with the changes noted, and far more
of a free trade than a protective one; but 1t
does not stop with these changes-far from it.
1t contains a new idea, or at least an extension
of an idea, which in my opinion is to affect
Europe more in the future than any increase
of duties under the bill. Here is something
for political economists to ponder over. Sec
ton % provides-"That where imported ma
terials on which duties have been paid are used
in the manufacture of articles manufactured or
produced in the United States, there shall be
allowed on the expectation of such articles a
drawback, equal in amount to the duties paid
on the materials used, less l per centum of
such duties.u Under this clause, it will be
seen, any American manufacturer can now
practically obtain his materials from Britain
or elsewhere free of duty, when he manutac.
lures these materials in competition and sells
them in the markets of the world. Several
important concerns have already availed them
selves of this clause, and many others are
about to do so. An item which appeared IN
the New York newspapers the other day pos
sesses much significance. 1t reads as follows:
'|Twantv .Savan locomotives were shiDDed yes