Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1908-08-22

be well to define the difference be-
tween a revenue tariff and protec-
tive tariff. A revenue tariff is so
framed as to collect a revenue and
you stop when you get enough; pro-
tective tariff may be so framed as to
collect but little revenue, and yet lay
heavy burden upon the people-and
you never know when to stop. To IL
lustrate: a tariff may be made so high
as to absolutely prohibit importation.
If, in such a case, the manufacturers
yield to the temptation mentioned by
Mr.. Taft and combine to take advan-
tage of the duty, the consumers will be
heavily taxed, and yet none of the
money will reach the treasury.
Another Example
Let us suppose another case: If we
import one-tenth of certain kind of
merchandise and produce at home
nine-tenths, and the imported and do
nestle articles sell at the same price,
then the treasury receives duty on the
foreign article and the manufacturers
collect nine times as much on the do
nestle article as the treasury collects
on the one-tenth imported. 1t becomes
a matter of great importance, there
fore, to the people at large, whether
the tariff is intended to raise revenue
or is framed in the interest of the
manufacturers and for the purpose of
protection. No one would think of
employing in a city, a county or
state a tax system under which the
bulk of the tax would go to the col
lectors. and yet the Republican lead
ers demand the continuance of a sys-
tenn under which the protected inter-
ests receive far more than half the
money collected from the people
through the operation of a high tariff.
AS a tariff law interferes with the
natural laws of trade, one who pro-
poses a protective tariff takes upon
himself the burden of proof to show,
first, that protective tariff is right in
principle; second, that 1t is wise as
public policy, and third, that 1t is nee
essary. And yet what protectionist at
tempts to present an argument in sup
port of any one of these propositions?
Is 1t right to tax all of the people for
the benefit of few? Where a COM
munity has attempted to collect taxes
for the aid of an industry, even when
the industry was to be located in the
community, the highest court in the
land has declared such a tax to be
larceny in the form of law. If a city
government cannot rightfully tax all
the people to bring an industry into the
city, where such benefits as are con-
ferred are more easily seen and more
universally enjoyed, who will say that
farmer in the Missouri valley can be
rightfully taxed to support an industry
in a distant state?
AS matter of public policy, is It
wise that the industries that do pay
should be compelled to carry upon their
backs Industries which, according to
the arguments made by their repre-
sentatives, could not live without aid?
Have we not seen this system intro
ducing corruption into politics, and is
it not building business upon an I'M
substantial basis? Having secured a
tariff from one party, the beneficiaries
loudly declare that the country will
be ruined If any other party obtains
control of the government .Manufac-
turers have inundated their employees
and threatened them with a reduction
in wages unless a party favorable to
the system was continued in power
This is an old device, and there are
indications that it is being resorted to
again. The New York Leather Betting
company has sent out number of let
ters to companies with which it has
business dealings, asking them to post
in their factories a notice saying:
Believing that the election of Taft
and Sherman means a safe and con-
sentative administration, the day fol-
lowing the election we shall start this
plant on full time and keep going"
A1CAC 10 a OAACSJ dtLGliPI " 1llu04lCO
the election by a bride. 1t is virtually
promise of wages if the Republican
ticket Is successful. and an implied
threat in case of Democratic success;
but the offer is so made that 1t gives
the employees no guaranty of its full
filmen. The same kind of promises
were made in 1896, and yet for six
months after the election times were
worse than they were before. There
were business failures and bankrupt
Giles, and many institutions that prom
ised their employees steady work and
good wages, shut down or reduced
wages. If any factory posts up the
sign which the Leather Betting COM
pany is sending out, the employees
ought to get together and ask for a
guaranty as to the amount of the
the length of time during which the
guaranty is to extend. If the votes
are to be bought, the purchase price,
at least, should be made secure. If the
employees ge-citizenship-is to
be sold, he ought at least to be sure of
his mess of pottage.
Whole System Vicious
But the whole system is vicious.
Business should not be built upon leg
| islation; 1t should stand upon it's own
merit, and when it does stand upon it's
own merit we shall not only have
purer politics, but we shall have less
fuctuation in business conditions and
more equitable distribution of the
proceeds of toll
l cannot pass from this part of my
subject without calling attention to the
fact that Secretary Taft has allowed
himself to be drawn into the use of an
argument which the beneficiaries of
protection have been employing for a
generation. Speaking of the gradual
substitution of a revenue tariff for the
protective system, he says in his notifl-
cation speech:
1.-The introduction in power of a party
with this avowed purpose cannot but
halt the gradual recovery from our re-
cent financial depression and produce
business disaster, compared with which
our recent panic and depression will
seem small indeed"
Here is a threat of panic. if the
Republican party is not retained in
power. This panic argument was
worked overtime in 1896, but am sur
prised that a Republican refers to it
| in the present campaign.
We have had three panics since the
Republican party was born: the panic
of 1873, the panic of 1893 and the panic
of 1907 The panic of 1873 came after
the Republican party had been in COM
plete control of the federal government
for twelve years, and eleven years be-
fore our party succeeded in Securing
control of the executive branch of the
government The startling "panic and
depression" of 1873 occurred in the
very midst of Republican rule, Just
after a Republican victory, and under
high tariff. Is it not strange that
Secretary Taft should forget this panic,
when he warns us to beware of any de-
-