The Bourbon news. [volume] (Paris, Ky.) 1895-19??, 1907-09-10
Tariff CataChism.

for the aid Of home factories produc-
ing connecting articles.
@. What is a revenue tariff?
A. A revenue tariff. is a traiff levied
for the purpose of raising a revenue.
Q. What is the difference between
the two kinds of tariff?
A. Revenue tariff is collected for the
benefit of the whole public. and the
government stops when it gets enough.
A protective tariff is imposed. for
private benefit, may be so levied as to
impose a heavy burden without raising
much revenue and there is no limit to
{ its exactions except the greed of the
protected interests and the patience
of the people.
Q. Who pays the tariff?
A. The consumer.
Q. How can this feet be estab-
lished?
A. By reason, by observation and
by experience. If a tariff were paid
by the foreigner it would be no protec-
tion to the home industry. Only
when the consumer must pay more
than the foreign price for an imported
article can the home producer charge
more than the foreign price for the
domestic article. A tariff paid by the
foreigner would give no protection to
an American manufacturer. Then, too,
the government gives rebate on raw
material then the finished product is
exported. Why does the government
pay the rebate to the domestic manu-
facturer if the foreigner pays the tar
iff? But experience is the best test
Go abroad, buy in the open market,
and when you return you will pay the
duty and you cannot find any foreigner
to reimburse you.
Q. Is such a tax constitutional?
A 1t F5RlateTf9eespirjt Of ..tS9NeOn,
stitution for it collects from the many
and gives to the few; but as the pro-
tective features are concealed in rev.
enue law it is difficult to get decision
on the principle involved.
Q. Can the wisdom of such tax
be defended? s..Se
A. No; a policy of favoriteism is
never wise in republic. A govern !
ment of the people, by the people and
for the people should be administered
according to the maxim: Equal rights
to all and special privileges to none.
Q. Is the present protective tariff
necessary?
A. No; it is about twice as high as
would be necessary to cover the entire
labor cost of protected manufacturers.
The fact that we are exporting an in
creasing amount of manufactures is
proof that our industries do not need
the present protection. And it must
be remembered that our manufactures
have the benefit of the freight when
the foreigner brings his goods here,
while the foreign competitor has the
benefit of the freight when we export.
And it must also be remembered that
the tariff on ali kinds of material, or
and on food and clothing in
creases the cost of articles manufact-
ured here. If we can now export it
spite Of these burdens we could export
more if the tariff were reduced.
Q. Does high tariff make good
wages?
A. No. If it is said that we pay
higher wages than they do in England
"a stock argument with protectionists
it is a complete answer to say that
England with no protective tariff pays
better wages than Germany does I'M
der protection. Our best wages are
paid in our unprotected industries and
the fact that we export goods made
with our high priced labor is positive
proof that good wages do not depend
on protection. The labor organiza
tions have done far more to increase
wages than all the tariff laws.
o. What about the home market
argument?
A. The friends of protection claim
that the farmer can afford to pay more
when he buys because the manufact-
urers furnish him home market, but
this is fallacy. The staples of the
farm are exported and the price re-
ceived for the surplus exported fixes
the price received for the part sold at
home. As the farmer sells in the I'M
protected markets of the world and
buys in protected market he is con-
stantIy drained of his earnings for the
benefit of the manufacturer and the
manufacturer now shows his ingrati-