St. Johnsbury Caledonian. [volume] (St. Johnsbury, Vt.) 1867-1919, 1904-09-14
Eayors Reciprocity.
Report Of the Tariff and Reciprocity
Committee OF the National Association
of Manufacturers.

OF manufacturers.
At the ninth annual convention of the
National Association of Manufacturers,
held at Pittsburg in May, the tariff and
reciprocity committee made report
which was received with applause
and referred to the committee
on resolutions. The report was pre-
sented by the subcommittee of three of
the executive committee, consisting of
Messrs. Tompkins of North CaS ina.
Jeffrey of Ohio and Hartshorn of New Jer-
sey. Following is full text of that re-
port:
The plan provided in the Constitution
of the United States for direct taxation
to defray the expenses of the Federal
Government has been even less operative
than the theory of an electoral college of
independent electors to select President
of the United States.
The government has uniformly held
to fiscal policy by which expenses of
government are met by funds coming
from excise taxes on liquors and tobacco
and duties levied on goods imported.
From duties levied on imports comes by
far the larger portion OF the money neces-
sary for the expenses OF the government.
There is generally not so great differ
nal revenue charges as to make contro-
versy. The greatest differences of opin-
ion are on the subject ofduties on imports.
The discussion OF this subject is frequent
ly conducted as though it would be feas-
ible to operate under plan of high pro-
hibitory tariffs, or under low or free
trade tariffs. AS matter of fact the ex-
penses of the government cannot be
greatly varied. Therefore the total sum
of the revenues cannot be varied greatly.
Within narrow limits it may be made
higher or lower, but in the main the
question is as to how these tariffs shall
be laid with reference to their effect upon
particular lines of agriculture and manu-
facturers rather than the aggregate sum
be raised.
1t is generally made to appear that
approximately half the people of the
United States are for high tariffs and
half for low tariffs or free trade. We be-
lieve that the division might be more
properly made as follows: Those for
Free trade 10 per cent
Tariff for revenue which Incl
denta1ly protects. 40 per cent
Tariff for protection which Incl
IDENTIFY raises revenue for gov
ernment expenses, 40 per cent
High or prohibitory tariffs. 10 per cent
The second and third divisions are
probably not far enough apart to make
controversy. These would generally
reach the same results if each could be
uninhue need by the extreme element CO.
operating with each.
In the early days of the Republic, when
Congress had less numbers than now,
and when the agricultural and manufact-
uring situation was less extensive and
less complicated than now, the tariff lists
could be handled by Congress in a con-
ferentia1 way and conclusions reached
were at least in the light of an intelligent
discussion of the separate items. Now
it is practically impossible for Congress
to consider inteiligently tariff schedule
item by item. It is impossible for Con-
gress to be generally posted as to the
| merits or dement's OF our trade relations
| with other countries in their details.
We regard it important that tariffs be
so laid (raised or lowered) as to accom-
| plish the following ends:
| L. Raise revenue which in addition to the
excise duties will meet the cost of conducting
| the general government;
| g. Protect American agriculture, manufact.
ures and commerce and the labor employed
| in these;
| g. Promote reciprocity agreement between
| the United States and other nations for mu
| tua1 benefit of the commerce OF the two
agreeing nations;
| 4. To discourage rather than foster trusts
| and monopolies.
Changes in the tariff are now difficult
to make and their effect is dreaded by the
people. This is largely because it is done
in bulk and at one time. "Opening uI
the tariff question is dreaded because
under present conditions it is so far.
reaching and because the rate put upor
money items must be largely guessed at
Reciprocity treaties are not popular
| when proposed.
The idea of reciprocity seems attrac
hf1f f%o Nv Srrr nj ~
specific cases are opposed because of the
apprehension of parties interested in the
articles on which changes are proposed
for lack of knowledge of the effect.
AT the Reciprocity Convention. in
| Washington under auspices of this Asso.
citation resolutions were passed recon-
mending the establishment OF Depart
ment of Commerce; also that reciproc
ity commission be established as a bu
| reau OF this department to investigat.
and report on the effect of changes OF ou1
duties and those of foreign countries fol
reciprocal advantage.
The Department of Commerce ha:
been established. We think it would b.
advantage to have tariff and reel
| procity commission to take testimony OF
the effect of changes in the tariffs ano
make reports to Congress and the Presi
dent.
In order to expedite the changes which
could be made under reciprocity agree
ments it would seem desirable tor Con
gress to establish a maximum and min
, imum list and authorize the President
after proper investigation by the com
mission to make changes within the linn
its of the high and low duties
Such changes might be made:
| 1. To increase or decrease revenue as the
| need might be.
| 2. To put into effect reciprocity or trad,
| agreement.
| 8. To give reasonable protection to Amer
| lean people and interests.
4. In opposition to injurious trusts an6
combinations.
In view of our Investigations, the re
suits of which are expressed in the above
review, we recommend to the Nationa
Association of Manufacturers the pas
sage OF the following resolution:
| Resolved, The National Association o
| Manufacturers recommend to Congress the