The herald., 1897-04-15
LABOR VS.. TARIFF
Observation-Disclosures,
BY ABBOT KINNEY
"

Inc tarlm contains pTONisiou ioi
great number of rebates. What is
rebate? A rebate is a sum of money
paid to a person or company exporting
goods made in America. The rebate is
intended to offset the increased cost OF
manufacture caused by the protective
tariff. 1t is gwen to the exporter to
enable him to sell his goods in foreign
competition with other producers any
where in the world. 1t Is to enable the
foreign consumer to buy American prod
ucts cheaper than Americans can buy
them in America.
American manufactures are sold
cheaper in foreign countries than they
are sold in America. The rebate paid to
exporters is one reason for this. An
other reason is the trust or combine
made possible by the protective tariff.
These trusts crush internal competi-
ton, regulate production or sales as
far as the tariff barrier protects their
prices and sell the surplus in the mar
kets of the world at free prices. The
money paid in rebates is taken from
the taxes The rebate money is forced
contribution from all the people. The
amounts paid bear no relation to the
amounts collected upon the materials
tariff taxed and upon which taxes the
rebates are based. Often rebates are
paid upon materials the importation of
which Is prohibited by the protective
tariff. Under this system American
arms, guns, pistols and powder received
rebates. American arms could be
bought cheaper anywhere else in the
world then they could be bought in
America. An American in war would
have been shot by an American gun
in the hands of the foreigners at less
cost by taxes paid by Americans than
the American could shoot the foreigner
with a similar American gun.
The rebate is frank confession that
the protective tariff is intended to in
crease the price of the thing tariffed.
The rebate is an admission that the
tariff puts the American consumer at
a disadvantage with the foreign con-
sumer The rebate is an admission that
the American manufacturer is handi
capped by the tariff. The rebate is a
declaration that when the interests of
the home consumer conflicts with those
of the manufacturer and trust, the con-
sumner must go under.
ne TeUdtt is IlOTe tIdi oil tlliS. 4>Ot
only will the protective tariff put the
American at a disadvantage which the
rebate declares, but it will tax him
again so as to overcome the disadvan-
tage a foreigner under it would have
who used American goods. The rebate
is given out of our taxes nominally for
the American manufacturer. Anyone
familiar with the astounding fact that
American manufactures are sold cheap
er in foreign countries than the trusts
will sell them here, must perceive that
the rebate and taxes upon Americans
to provide for it goes to benefit the for
eign buyer.
Thus American producers pay taxes
to help the pauper labor and the slave
to every American tool, arm or manu-
facture at less cost than the American
taxpayer pays for the same thing.
Is this out of charity to improve the
paupers' producing power? The trust
combines size up the American tax
payer as a fool of fools and his political
action as a folly of follies. They size
him up right. The rebate is the official
denia. in law of the pretense that the
tariff Is levied to reduce the price of
the manufacture protected. The pre-
tense itself is a confession that 1t is
unjust to increase the profits of per-
sons by taxation.
Recognizing the wrong of taxing one
person for another, the protectionist
says protection reduces the profit of the
protected, and cites reduced prices of
protected articles during the last ten
years.
Does the orange grower subscribe
money to pay lobby to get tariff bene-
fits to lower the price of oranges? Does
the Democratic orange grower yield to
the temptation and sell his soul for the
bribe to get less profits? Does he say,
well, If there is going to be steal
we might as we'll put our hands in the
public pocket and take a part of the
plumber" because he thinks there is
no plunder?
Pretty thin veneer, gentlemen. The
protectionist lies when he says he thinks
protection reduces prices and profits
and he knows he lies. The rebate is
his own confession that he lies.
The truth is. however, that the tariff
does reduce profits all around and finally
those of the beneficiary. The taxes and
bounties being rarely allotted to desig-
mated persons, any unusual profit in one
industry due to protective legislation di-
verts enterprise from other industries
to it. The production is increased, the
market is narrowed and the industry
itself is placed upon the false footing Of
profits, not upon merit, but upon govern
ment favoritism. Politics become more
important than Industrial merit. The
industry thus inflated is overdone; COL
lapse comes, profits cease. then enters
the trust to save what Is left at the pub
lie cost.
The frank repudiation by the pro-
tected beneficiaries of any responsible
ity toward American laborers on account
of the bounties they receive to protect
labor is confession of their masquer-
ade. One of these imported a whole
hamlet of Huns. another in this state,
excepting his superintendent and clerks,
has not an American citizen in his en-
ploy. The Pacific Mail Steamship COM
pany some years ago obtained a giant
subsidy which turned out to be for How
not to do it, in the matter of promot-
ing American commerce. This company
had also subsidy from certain railroads
which in effect paid it not to do what
the public taxes had been paid it to do.
When We come to the protection of abor
we find that this subsidized company
employed Chinese sailors.
This shipping business is an interesting
one to examine. Several large subsidies
have been granted to American steam
ship lines under more or less scandalous