Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1894-02-22
WILMINGTON. THURSDAY. FEE. ss.

HfLhAN11OAft ihtAtsDd1p rem NgF
Let us consider the nature and effect
of bill to reduce taxes upon imports
and of n bill to increase taxes upon I'M
ports. TO state the case is to argue it,
for the results are self.evident. The
effect of a bill reducing taxes upon i'm
ports is exactly the reverse, while pend
ing upon its passage, of that of bill
increasing such taxes. Also, the effect,
after its passage, of bill reducing such
taxes is just the reverse Of bill increas-
ing such taxes.
Take the Mckinley bill, which is the
existing law, and consider its nature
and effect. 1t proposes to check i'm
ports by increasing duties. Its purpose
was declared. 10 a very large extent
the price at which we can buy imported
articles fixes the price at which we can
buy similar articles of domestic manu-
factpre. As this is too well known to
require citation, and the data are all
here beside me, importers acted upon
this timely warning Of an increase Of
duties and largely increased their pur-
chases abroad. They imported all the
goods they could st the lower duties, in
order to sell them for a large profit at
the law-made prices after the duties
were increased.
From tin-plate up and down they
used their own money and all the
money they could borrow, until the
banks were strained, to stock up with
imported goods. .Iobbers and retail mer-
chants also desired to get, before the
higher duties went into effect, all the
imported goods they would likely want
for long time to come. This took large
quantities of goods out of bond, and
consequently the receipts Of the govern
ment were largely increased during the
tendency of the Mckinley bill.
How was it with the domestic manu-
facturer9 Forseeing that the goods of
his foreign competitor could only be
procured at higher prices after the pas.
sage of the Mckinley bill, he naturally
wanted all the stock he could produce
so as to take advantage of the rise in
price. Especially was this true of those
who use foreign materials in the pro-
duction of their goods. They would
have to manufacture at greater cost
after the Mckinley bill went into effect
than they would before it wentinto effect
The same set of facts and the same line
Of reasoning led buyers of domestic
goods to make large purchases before
the enactment OF that bill. Thus domestic
manufacturing and domestic trade were
also stimulated before the cnactmen. Of
that law.
But what were the subsequent and
permanent effects of the Mckinley law:
After its passage the stores, mills and
warehouses were full Of goods. Ad.
vanced prices were asked and consump.
ton was reduced. All over the country
wages were reduced. The permanent
effect of reduced consumption is re.
duced production, and of course a cor.
responding reduction in wages and in
compensation by the vast army of wage
earners of the varied products of oui
people. Thus we have lower wages
especially in the protected industries
and lower prices for all products no
protected or susceptible of protection
These facts are too recent and too wei
known to all around me to require any
thing more than their statement. The
temporary effect then of a bill increasing
taxes upon imports is to stimulate trade
and to increase the receipts of the gov
eminent. The permanent effect is Il
reduce wages, reduce trade, and reduc,
the receipts Of the governmental Con
gresham @. r. Brechinridge of arkansas