The news-democrat. (Providence, R.I.) 1906-1909, 1906-09-11
SHAW MAKES A
TARIFF SPEECH
At BALTIMORE

Salisbury, N. c., Sept. III have
been criticised for saying that | would
prefer 10 have the American manufac-
turer sell his products abroad cheaper
than at home. This Is the same as say
ing that | would prefer to have the
products OF our factories close foreign
shops rather than have the products OF
Foreign shops close our factories"
secretary Shaw last night thus sum-
med up his address on the Republican
tariff policy, delivered before large
audience OF Republicans. He declared
the tariff system permitted such a con-
dition OF affairs insured a market for
the surplus Of American mills and was
strong factor in preserving the pres
ent era OF prosperity. He continued:
our political opponents lay much
stress on the fact that some American
manufactures are sold abroad cheaper
than at home. That the practice pre-
walls TO some extent all must admit but
that IL does not prevail generally or to
any considerable extent is easily estab-
lished. non partisan industrial COM
mission was appointed by congress I'm
1898, which after spending moro than
three years In the investigation. filed
it's report i'm 1902, which was published
In is large volumes. This report con-
tains all available evidence on this sub
ject.
After making careful compilations
from the data therein contained Senator
Gallinger Of New Hampshire, stated on
the floor OF the United States senate, In
April 1904, that approximately $4,000
600 worth OF American manufactured
products are annually sold abroad
cheaper than in our own domestic
markets.
No one has ever attempted to dis
prove Senator Gallngers conclusions,
though our political opponents con-
tinue TO speak of the practice as we'll
nigh universal The $4,000, 900 worth
can he far more than accounted for
by the advantage given TO exporters
under our drawback laws, and il is
quite likely the estimate is too low.
EXPORT POLICY.
TT has been the policy Of the Repub-
lican party for many years TO allow
manufacturers who export their pro-
duct the advantage of the cheapest pos
sble raw material. The Dingley tariff
law provides two ways by which ex-
porters may avail themselves of this
advantageous privilege.
"lFirst. the law authorizes the manu-
facturer OF merchandise for export I'm
bonded factories and permits 10 be
transferred thereto, not only imported
ores, iron and steel billets and other
material free OF duty, but also spirits
and tobacco free OF internal revenue
tax.
Under the American scale OF wages
the value Of ordinary American manu-
facturers Is about equally divided be-
tween material and labor The conver-
sion into finished products, therefore Of
$40. 900 600 worth OF raw material con-
sumed i'm bonded factories would Justify
the sale abroad OF twice that amount of
refined or manufactured products cheaper
than at home.
"The other method provided in the
Dngley law for allowing manufacturers
who export their products the advantage
OF cheap material authorizes the secre-
tary of the treasury TO pay back 10 the
exporter OF manufactured merchandise 90
per cent. Of the duty which he has actual
ly paid upon any imported material con-
sumed therein.
During the last fiscal year there was
refunded TO exporters OF manufactures
produced i'm whole or I'm part from inn
ported dutiable material approximately
$.0oO,OcO The refund Of duty averages
about 3 per cent OF the value of the ex-
ported merchandise. This drawback pro-
vision, therefore, justifies the sale abroad
OF Sl20, 600. 600 worth of American-manufac-
tured merchandise per cent. below the
domestic price Of similar articles.
The Republican party gives the Ameri-
can manufactures for the foreign market
however, every possible advantage except
that Of cheap labor No law can pro-
tect the American producer I'm any foreign
market, hence the exporter of the product
OF American labor is given the cheapest
possible raw material.
III IL be said that this Is TO the advan-
tage of the exporter. | reply that Il aids
quite as much those whom the exporter
employs, while those who supply the or
binary needs Of these employed artisans
are benefited also.
The practice complained Of is not con-
fined TO America, nor is it limited TO
countries where the protective principle
prevails. Every government OF Europe
approves il, and all, save one, encourage
It,
Special agents OF the treasury depart
ment throughout Europe occasionally
pick up two catalogues published by the
same house. one marked export and
the other domestic" There catalogues
will be identical in every respect except
price and the price for export will be
from to . per cent. lower than for
the domestic market.
but what shall be said OF this practice
as policy? Is the practice bad per Sc?
Who suffers because OF II? Does the
American laborer? Go ask the man who
produces these exported wares thus
dumped abroad. l have been criticised
for saying that | would prefer 10 have
the American manufacturer sell his prod
ucts abroad cheaper than at home rather
than have the foreign producer sell his
wares in America cheaper than at home.
This is the same as saying that I would
prefer to have the products OF our fac
tories close foreign shops rather than
have the products Of foreign shops clogo