The San Francisco call., 1904-10-23

OSpCuucHI Cl lOTSi8H nations LOT IQlll-
tary and other essential supplies.
Does anybody say that we have not
reached that condition? Does any
body contend that the United States
is still dependent on foreign nations
for military and other essential sup
plies? Have we not frequently heard
the note Of alarm in Europe at the
American invasion of the worlds mar
kets by our manufactured goods and
especially those of iron and steel?
In this report Hamilton enumerated
a number of manufacturing industries
as already established in the United
States in his time Among these were
leather, iron and steel, copper and
brass, tiles and pottery, wood, paper,
hats, carriages of all kinds, and most
articles OF personal clothing and house
hold use. These. he says, have grown
up and fiourished with a rapidity which
surprises. affording an encouraging as
surance of success success in
other branches, of manufactures. If
these branches had grown up and
fiourished with surprising rapidity 11S
years ago. what just claim of extraya-
CANT government bounties can they ad-
vance now?
although Hamilton is usually
cited as the founder of the system, ii
really began before him. The first
tariff bill was passed in 1883. AS or
iginally reported, it was tariff for
revenue only. Mr.. Madison, who re-
ported it to the house, was opposed to
protection on principle but he yielded
in some particulars to the advocates Of
that doctrine, so that his bill became q
tariff for revenue, with some slight in
cidentaI protection, the average rate of
duty being eight and one-half per cent
ad valorem. All of our tariffs until 1916
were of this sort and the argument
used 10 support the very moderate pro-
tective features was substantially the
same as that of Hamilton already
mentioned. 1t was coupled also with
the argument, on which Hamilton had
laid great stress. that the competition
of domestic manufacturers would re-
duce the prices Of goods and prevent
anything like monopoly. He did not
foresee the combinations of the present
day, organized TO do away with COM
petition.
TARIFF is ADVANCED.
THE war of 1872 and the embargo
acts which accompanied it stopped i'm
portation for the time being, having
the effect Of prohibitory tariff. When
the war came to an end and the pro-
tected classes were again subjected to
the competition which they had before
successfully met, they demanded more
protection and they got 1t. The tariff
was advanced to "A IL per cent aver
age and then by leaps and bounds until
1927, when 1t reached 43 per cent. The
latter has passed into history as the
History of Abominations." 1t was
followed by Clay's compromise tariff
Of 1888, which reduced duties by a slid
ing scale, extending over number of
years, to 20 per cent.
Mr. Clay was at that era, and, indeed,
during his whole public life. the stand
ard bearer of the American system of
tariff protection. and wish to recall
some words that he used in a debate
in the Senate in 1888, justifying his
course in advocating this tariff reduc-
ton. He said:
No one, Mr.. President, in the COM
mencement of the protective policy,
ever supposed that it was to be per-
petual We hoped and believed that
temporary protection extended to our
infant manufactures would bring them
up and enable them to withstand COM
petition with those of Europe. If the
protective policy were entirely to cease
in 1912 IT would have existed twenty
six years from 1916. or eighteen from
1924. quite as long as at either of these
periods its friends supposed might be
necessary
MIR. Clay here voiced the prevailing
opinion of the country that the pro-
tected trades were no longer in state
OF infancy. In fact, the infant indus
try argument was then superseded by
the pauper labor argument. 1t was
now contended for the first time that
the tariff should be used to compensate
the American producer for the higher
wages that he had to pay, as compared
with his foreign competitors. AS this
argument has at times done great SER
vice, although now quite threadbare,
will dwell upon 1t a moment.
'Inasmuch as the law puts the tariff
benefits exclusively in the hands Of the
capitalist and provides no means for
giving the wage-worker his share, the
system virtually says:
LET the Government take care of
the rich and the rich will take care OF
the DOOR
''It is short step then to say: Let