The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-05-17
DRAWBACK BLOCKS
TARIFF REVISION
Shaw's Little Scheme Furnishes
Free Raw Material Without
Bothering Congress.
Bv w. w, Jermane,

company. 1t is made of an imported tin
and solder containing foreign lead. In
1904, 63,31S,414 cans got the benefit Of
this drawback, some, of the principal
benefciaries being the Standard Oil
company, the beef trust, .and. the fruit
and salmon canning combinations. The
new allowance will add to the drawback
account.
Other recent additions to the draw;
back list are manufacturers OF ''refned |
butter'' from imported "butter
grease,' who combine it with, American
salt and American glucose, and ship it
out of the country mixed with domestic |
butter. Heretofore, drawbacks We're al
lowed only when the precious mixture
was not combined with domestic butter.
Shaw Gets Around Tinkering.
These are two minor instances of the
onward march of the drawback. In
fact, the drawback is the little nipple
ment with which Secretary Shaw seeks
furnishing manufacturers with free raw
material without asking congress to
" tinker the tariff. The drawback is
a new buttress of protection of the
standpat order, the Importance of which
seems to be little understood or appre-
ciated by the average American voter.
Recent decisions Of the treasury de-
partment and the attorney, general have
wonderfully liberalized the drawback
law. Under decisions by former Attor-
ney General Olney, drawbacks were al
lowed upon articles manufactured IN
part of foreign and in part Of domestic
material and exported, only when phys
ical or chemical analysis would disclose
the ingredients. Recently. Attorney
General Moody has upset this lnterpre-
tation by declaring that the drawback
may be allowed when by any means
by bookkeeping or otherwise-the for
eign material can be traced to the man
ufactured article declared for export:
Secretary Shaw is giving the most lib.
eral Interpretation to this opinion in
the granting of drawbacks.
The Milling Drawback.
Several months ago the milling inter
ests of the country became so lnsistent
in demanding a supply of Canadian
wheat that they frightened the stand
patters They threatened to start a
propaganda for tariff revision in the
| direction of free raw material so as to
remove the duty upon all foreign wheat
The agitation was started in connection
Canadian reciprocity and free leather:
Secretary Shaw gave thought, and
came to the rescue with his little draw
back implement. He found that draw
back on Canadian wheat mixed IN mill
inc with domestic wheat intended for
EXPORT in the form Of -four would have
an especially quieting effect upon the
to Attorney General Moody with such
happy results.
Senator Hansbrough of North Dakota,
and a few democrats did some objecting.
The Hansbrough protests led to a polite
correspondence Of an edifying character
between the senator and the secretary
nothing more. The millers got the free
Canadian wheat to the extent to which
it was indicated, by their profit account
and the tariff revision agitation ceased
in that quarter. New England has not
secured it's Canadian reciprocity nor it's
free leather, although it is difficult to
see why it cannot get the latter thru
diligent use of Secretary Shaw draw
back.
No More "Free'' Demands
There is little probability that de,
mand for free raw material alone, Will Il
| ever again threaten protective tar1H
interests. The majority Of manufac-
turers now have free raw material.
Theoretically the drawback system as
now interpreted will give free raw W, ma ma
ticles intended for export. SINCE this
places him on an equality with all man
ufacturers in forei;g n business and on
an equality with American manufac-
turers in domestic business-so far as
the raw material is concerned-thereg
seems to be no reason why he should
ask for a change. The tariff as. 1t
stands protects him from the foreign
manufacturer in the domestic markets.
Out of the imported material used
bv manufacturers in 1904, amounting
to SAT- ,62O,224, an aggregate Of $3.50,
SOO,767 was entirely free of duty. OF
this about $266,0O0,000 consisted Of
crude material, and about $65,000,0OO
of material partially manufactured.
Duty was paid in the first instance
on $146,S24, 957, a great deal less than
one-third of the imported raw materials
used by American manufacturers. The
rest was free raw material. There are
no exact figures to show what portion
of the remaining dutiable raw materia
was benefited by the drawback. but
the large amount paid in drawbacks in
dicates that If considerable amour
of the dutiable imported raw materia
intended for the use of American manu-
facturers paid it's full proportion Of
tariff duties on value basis, it would
have paid but $6O,OO0,000 out Of $3.50,
100000 in 1904. Since the tariff upo1
this imported raw material as rule, l!
much less than upon imported manufac
tured goods, it paid much less thar
100000, 900 in tariff. In the meantime
the drawback amounted to about S.,
100000 year.
Where Raw Material Goes.
It is quite certain that the larger