Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-02-15
DEFENDS FREE PORTS
Secretary Shaw Explains His
Plan to Business Men.
IS NOT A NEW PROPOSITION
Wide Difference of Opinion Followed
the Suggestion.
ASKS FOR CONSIDERATION
Head of Treasury Department Con-
cedes That There is Much Force
in Free Trade Arguments.

SPRINGFIELD, Mass, February H.
Leslie NJ. Shaw, Secretary of the Treasury
was the principal speaker at the annual
dinner of the board of trade this evening in
Cooley's Hotel The Secretary devoted
nearly all of his address to trade condi-
lions and theories He explained at length
his position in regard to free ports. and
said that he saw no harm in the fact that
some American goods are exported at prices
lower than they sell for at home. Mr..
Shaw said:
I'm a recent speech before the New
Hampshire board Of trade 1 suggested the
adoption Of the German economic policy of
free ports. The reception given this sug-
gestion is somewhat amusing Some have
declared it novel, some impractical. two or
three have used the term fantastic while
others have truthfully stated that there is
nothing new in the proposition, and in proof
thereof have cited Germany's experience.
Others still have indorsed the suggestion
as great and wise conception.
mo one objects to bonded tannery into
which South American hides can be taken
free Of duty, provided the leather produced
therefrom is exported. No one objects to a
bonded shoe factory for the consumption
of imported leather provided the shoes pro-
duced therefrom are exported No one OBJ
jects to a bonded mill for the consumption
Of cheap Canadian wheat provided the -four
anu oil ny pIOQuCtS dIe cApOTteO. NO one
would object If a macaroni mill were bond
ed in which free Canadian flour should be
consumed provided the macaroni produced
therefrom was exported.
Economic Writers Object.
But when the feasibility of including a
tannery. a shoe shop, flour mill ~and a
macaroni factory under a single bond Is
suggested in imitation of Germany eco
nomic writers hold up their hands in horror
and amazement and rack their imagination
to find grounds for condemnation.
Some have gone to the extent of saying
1t would be unconstitutional to include two
concerns under single bond, though the
constitutionality of a bonded single fac
tory has never been suggested Such law
OF course would have to be general and ap-
plicable only on certain conditions. The
bonded territory would have to be inclosed
and prepared at private expense. The gov
eminent would bond then. as 1t does now,
when conditions were compiled with.
Long articles have been written to show
that the plan Is less desirable than the
present policy of bonding single factories
and of allowing drawbacks. No one to my
knowledge ever recommended bonded ports
as substitute for bonded factories. suG-
gested them as an extension of the present
policy. IT the present policy Is REASONABLE
and beneficial, both Of which are conceded
let 1t be continued; meanwhile the enlarge
ment and extension of this policy is Ger
tainly worthy of serious consideration.
Free Trade Arguments
Though a strong protectionist myself 1
concede there is much force in free trade
arguments. Undoubtedly the American peo-
ple in the swing of years would be prosper
Gus were this a free-trade country. Wheth-
er they would be as prosperous as under
protection Is question to be discussed
elsewhere.
IF New England is to have Protection for
her manufactures. then 1 insist that Flor
ida shall have protection for her cftrous
fruits, Louisiana for her sugar, Texas for
her cattle, Montana for her wool and Da-
kota for her wheat. If New England is to
have free trade in the things she consumes
then let her concede free trade in the things
she produces. Protection in spots and free
trade In spots Is the most vicious political
heresy known to man.
VIII you pardon the suggestion that the
American producer Of shoes has no right to
complain Of the price of leather? Only the
on that subject. If the government of the
United States were to furnish material for
the shoe factory gratis and at public ex-
pense, competition would be as brisk in five
years as 1t Is now, and profits would be
reduced quite as low, and, in my Judgment,
lower.
The Question Of Labor.
THE manufacturer of shoes for export
is seriously affected not only by the price
of material, but by the price of labor Be-
cause Of this and for the purpose of ena-
bling him to employ American labor at the
American scale of wages, bonded factories