The Montgomery advertiser., 1903-07-28
FEARS, TARIFF CRASH
CONGRESSMAN LOWERING FIX.
 PECTs A FIGHT OVER s PROTECTION.
Free Drawback All That Will Save Demolition of Trade wall-, -irni- ture Association in Conven-
 tion in New York Ap- proves Plans.

Ner -"Nothing less than a lib- eraI drawback law enacted at the next session of Congress will save the protective tariff from a fearful onslaught if not utter demolition" In these words Congressman William c. Lowering urged tthe Furniture Association of America, , national organization of retail dealers and manNfacturers. to use It's innuence on the tariff question
 Rseloutions were adopted that if Is the sense of the Furniture Association of America that legislation to relieve our manufacturing interests from the pFese.t prohibtory tax on alcohol should be promptly enacted by Congress and that our laws relating to the payment of draw back on exported articles of domestic manufacture should be amended as pro vided for In the bill introduced in tho last Congress by William c. Lowering of Massachusetts"
 New Trade Outlets Needed.
 Cengressman Lowering said in part: "In all the years of our history as a nation it has come to be a pretty we'll establish ed fact that a tax for revenue on the lines of protection to American industries has yielded a fuller measure of public welfare than a tax for revenue only. but it does not follow that the highest and s- tective tax. ..
 Tt Is a fact that most of the industries of our country to-day are sorely in need of new outlets in the markets of the world for their products and that the tariff should be so laid that the doors may. sometimes swing outward as easily as they swing inward.
 The statfgties show that within the past twenty-five years the number of fac tories has been doubled, the amount of capital invested in them has been quad rupaed the number of employees Is now nearly three times as great aud the total value of their annual product has grown from $5.5Oo. .oo0,0 900 In 1880 to a5,0oo.0oO 600 at the present time.
 ConsumptiEe Capacity overborne.
 "Along witlf4his marvellous increase of productive power there has undoubtedly gone an increase of consuming capacity. But notwithstanding the increase per capita consumption the fact is becoming clearer every day that the productive power of the country has been steadily outgrowing the consuming power and that our factories are being directly con- f'onted with an increasing surplus of products which are required for domestic consumption.
 This, then, being the actual state of affairs. the question remains, how can we increase our sales of manufactured articles in foreign markets? propos touching chiefly on two needed reforms in our national legislation. which l am satisfied would aid in securing the de- sired additional markets for our manu- lecturers.
 Drawback Law is Valuable.
 '"The first of these is the proposition to amend the customs drawback law. a provision of our tariff laws which allows a drawback of the duties paid on ma terials entering into the manufacture Of goods for export upon the exportation of these articles.
 "'The present drawback law has great ly helped to further the export trade in articles made wholly or in part from imported duty-paid materials, so that the advantages of the drawback system are now universally admitted. It has been found. however. in practical experience. that under the operation of this law the requirement that the imported materials on which duties are paid must be posi- lively identified as having been used in the manufacture of any specific lot of exported articles on which drawback has been claimed has operated to make the recovery of drawback a difficult and complicated matter.
 sr Alcohol Should Be Cheaper.
 ''The second proposition is that of the amendment of our internal revenue laws so as to provide for system of cheaper alcohol for manufacturing purposes. The tax of $2.0S on each gallon of commercial alcohol has operated to prevent its gen eraI use in this country and to give the control of the worlds markets in arti- cles in the manufacture of which alco- hol is an important material to Germany, France. Great Britain and particularly to Germany. where there is tax rate of only 56 cents per proof gallon of distilled spirits. s-..
 This proposed change would not cause the loss of any revenue to the, govern ment. .ment, since owing to its high price the taxed alcohol is not now being used for these various purposes. It is certain that reduction of the tax in this coun- try to 70 cents per proof gallon would sufficiently cheapen the cost of this i'm portant material to allow of the expor- tation of many articles from the pro- ductfon of which our manufacturers are now entirely shut out by the high price of the pure grain article
 Here, then. Is an opportunity for the friends of protection to show little wis dom and the sincerity of their solicitude for the home producer.
 Must Allow Some Revision,
 ''If our legislators are wise they will not antagonize the great growing senti- ment in favor of tariff revision. whether fl come under what is known as the Towae idea or that older and country wide demand that has been forcing it. self upon the attention of the party lead CTS for the past few years.
 The only way to hold the friends of protection together Is by the recognition of the material interests of our great and expanding industries They need and must have every possible outlet in the market of the world for their pro- ducts"