The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-09-11
SPEAKS FOR BLACKBURN
SECRETARY GOES TO arm or TAR
HEEL CONGRESSMAN.
Higher PFIOSs Ter American Goods Abroad
That 81 IEaHe IIis Theme Says They
Are Legitimate n Are Fostered ny
nInwiey Law. rs IRepObticans Intended.

CHARLoTTE, N. G.. Sept. lO.-Leslie M.
| Shaw W, Secretary Of the Treasury, spoke at
Salisbury tonight to a large crowd.
Salisbury is the largest town in Con-
gressman r. Spencer B~lackburn's district
and Mr.. Shaw was asked TO speak there by
the State Republican executive committee.
The speech was we'll received. A number
| OF Democrats attended the meeting Rowan
county Is the Democratic stronghold OF the
Eighth district, but the recent lynchiDg
there will help the Republicans.
Mr.. Shaw will speak at Statesville and
Ashevillc tomorrow.
MIR. Shawis address. in part. was as fol-
lows:
Our political opponents lay much stress
on the fact that some American manufactures
are sold abroad cheaper than at home. That
the practice prevails TO some extent all must
admit. but that IL does not prevail generally
or to any considerable extent rs easily estab-
liShed. A Bipartisan industrial commits
rion appointed in 1868 filed its report
in 1907. This report contains all available
evidence on this subject. After making
careful compilations from tho data therein
contained. Senator Gallinger OF New Hamp-
shire stated on the floor OF the Senate in
April. 1904. that approximately H.ooO.0OO
worth OF American manufactur ed products
1NS WIN oChOeN ~"l
our own market. This $4,000. 900 worth can
be far more than accounted for by the adj
vantage given to exporters under our draw
back laws. and. it Is quite likely the estimate
In too low.
1t has been the policy Of the Republican
party for many Years to allow manufacturer
who export their product the advantage
OF the cheapest possible raw material. The
Dingley law authorizes the manufacture
Of merchandise for export in bonded factories
from imported material free OF duty. In
tho last fiscal year approximately $40, 900. oOO
worth of imported material was thus used
and the entire product exported ana no duty
or internal revenue paid thereon.
The DIM ley law alsoaut horizes the Secretary
OF the Treasury to pow back Ia the exporter
OF manufactured merchandise 90 per cent.
OF the duty which he has actually paid upon
my imported material consumed therein.
In the last fiscal year there was refunded
TO exporters Of manufactures produced IN
whole or in part from imported dutiable ma
tarial approximately 81. O0O, O0n. The refund
of duty averages about 5 per cent. OF the
value Of the exported merchandise. This
drA provision. therefore. %tusti1es the
sale abroad of SI20, ON. 900 worth of American
manufactured merchandise 5 per cent. below
the domestic price Of similar articles.
Both these provisions Of the DlnglPy tarin
law were enacted for the avOw ed and sole
purpose OF enabling the American employee
OF labor TO put his product on the foreign
market at reduced prices.
Perhaps I can make this drawback principle
clearer by an illustration. The American
producer Of steel billets has a minimum
prot ection Of Se.72 per ton. The producer Of
spikes and bolts has a protection OF sls.4+
and S33. GO per ton respectively. The Ameri-
can Iron and Steel Manufacturing Company
Of Lebanon. Pa, was paid last year in round
numbers SO, 900 drawback on the expectation
Of avg nnO uCKVh IF ValuaU EniE0a and hOIta
produced from imported steel bilIets.
In effect the Government said TO this con-
Germ: If you will consume $4,000 worth OF
American labor in the manufacture OF s7S. 900
worth Of spikes and bolts there will be paid
back 10 you az soon as you export your prod
uct $4,000 Of the duty which you pay on the
billets consumed. This drawback enabled
this concern TO sell SIS. 900 worth Of spikes
and bolts abroad for S65, 900 and make the
same profit as IL sold az home for 5000.
IT, being impossible to protect the American
producer Of spikes and bolts in the foreign
market. the law authorizes this refund to him
on proof OF expectation, with manifest intent
that he shall sell his product abroad that
much below the American market price.
In some localities there II a demand for
the admission Of hides free OF duty, and the
principal reason assigned is that IL will enable
the manufacturer OF leather goods to export
more Of their products. Drawbacks were
Nv 9Nulg VII
amounts Of exported leather produced from
dutiable Imported hides. and on shoes and
betting produced from dutiable imported
leather. One concern in Boston received
$4,000 in drawbacks on the expectation, of
sole leather produced from imported hides.
pr this sole leather was sold abroad
cheaper than at home. II could have been.
There was $4,000 din er ence In Its cost and
the cost of a like amount Of sole leather con-
sumed at home.
We exported during the last fiscal year APP
p~roXimately $50. OOO.OO0 of manufactured
products, exclusive OF prepared and partially
prepared foods. or this total probably
800. 900, 900 was produced in bonded smelteries
and factories and no duty was collected upon
the material consumed. On approximately
$3.50. OOO,0OO a drawback OF about 5 per cent.
was recovered. Thus il will be seen that
nearly Is per cent. Of our exported manu-
features leave this country costing the ex-
porter less than corresponding articles which
he places on the American market.
Suppose Senator GallingeT's estimate to be
correct, that 1900, 900 OF American manu-
facture is annually sold abroad at prices lower
than prevail in this country, what does II
prove7 We manufacture about ST., OOO, on, OOO
per annum. exclusive OF prepared foods. OF
which sI.OO0,OOO il but one-third OF per cent.
II Senator GaIlinger's estimate Is correct then
for every Al 900 worth OF output from our shops
and factories about 30 cents worth Is sold
abroad cheaper than at home.
The practice complained Of is not confined
to America nor is it limited to countries
where the protective principle prevails.
Every Government OF Europe approves IL and
all save one. Great Britain. encourage il.
Special agents OF the Treasury Department
throughout Europe occasio nally pick up two
catalogues published by the same house. one
marked export" and the other domestic. I"
These catalogues will he Identical in every re-
spect except price. and the price for export
will he from ito % per cent. lower than for the
domestic market.
But what shall be said OF this practice as a
policy1 Who suffers because of Il! Does the
American laborer? Go ask the man who pro-
duces these exported wares thus dumped
abroad.
wish all the world well. hut II any one has
TO be out Of employment. II there must be
suffering some where. then | will use my best
efforts that II come not nigh my country.
Twill consent to pay a little more than other
wise would be necessary TO the end that the
products Of American labor shall be put on