New-York tribune., 1909-03-18
THE PAYNE TARIFF BILL.

II is impossible at first sight Of the provisions
of bulky tariff bill 10 estimate its full effects
either as an instrument Of protection or as
producer Of revenue. Yet even a brief examina-
ton of the measure introduced yesterday by Mr.
Payne will. we think. convince any fairminded
critic that II aims ar effective and rational tariff
revision and honestly endeavors to carry into
effect the policies of the Taft administration
and the pledges Of the Republican national plat
form The Republican party is firmly committed
TO the protective principle. and wants to give
vitality 10 that principle by applying it justly
and intelligently. using il not only 10 protect
labor here against lower wages abroad, but also
10 extend our foreign market through reciprocal
trade agreements and TO protect our exports
against discriminating foreign tariffs.
Conditions in international trade have changed
greatly in the last ten fifteen years. The open
9el6 of which Golden dreamed has been fenced
off in many directions. The principal nations or
the world. Great Britain excepted, allow access
10 their markets only at a price and each, IS
ready 10 bargain with the others for mutually
advantageous concessions. The United States
has attempted once or twice to make its tarln
system conform TO modern conditions. It adopt
ed policy of reciprocity in 1890 But that pol
icv was unwisely abandoned In 1894. when the
Wilson-Gorma law was passed. and was re-
vived in too limited q degree IN the present
IingleT tar1u. 1t Is propoSeNl HoN 10 I'ihe az
vantage of special opportunities offered MS, and
to repe unfriendly determinations by applying
the maximum minimum principle, allowing the
minimum duty TO countries which treat us eqult-
ably and enforcing the maximum against coun-
tries which put us on the prescribed list Ihe
great advantage of the observation-disclosures plan
is that il is automatic in operation II does away
with the delays and annoyances OF negotiating
special arrangement with each country WIN
which we exchange tariff concessions The re-
turn 10 the reciprocity system and the adoption
Of the maximum minimum method are dlStncI
advances IN tariff legislation.
Conditions have also greatly changed in DO
mestic production. Many of our industries have
81 grown that they do not now need the measure
Of protection which they needed decade ago
Material reductions have been made. therefore,
notably in the duties on iron and steel productS'
feathers and boots and shoes, and certain raw
materials such as hides, iron ore and btuminous
coal. have been transferred to the free list On
q great many articles in the dutiable list a re-
duction has been made averaging from 20 to -
per cent A highly commendable advance in
libpraIitv is shown in removing the duty on art
objects not OF recent production. To provide
revenue some increases have been made. Tea Is
put once more on the dutiabe list, and higher
rates are imposed on certain articles cassed as
luxuries Probably as a temporary e1pedient TO
heritance tax is reimposed The chief objection
10 that tax lies IN the fact that many of the
states already tax inheritances It Is reported
that the provisions of the New York state law
were followed in drafting the inheritance tax
section Of the Payne bill. New Workers will
therefore have to pay double inheritance taxes,
and in many other states the same double bur
den will have 10 ne borne. II should he easy.
however to drop the emergency Inheritance tax
in hoe nClp
quate. Just as it was dropped after the Spanish
war. To succor the Treasury the S40.G00,00O
cash paid for the Panama Canal COmpanys
rights and plant will be restored 10 il from the
proceeds of a bond issue. This Is 4 proper
transaction for too large share of the cost Of
the canal should not be laid on a generation
which will not greatly profit by its operation
The Payne bill does tardy justice 10 the Phil
ippines in giving the islands free trade with the
United States. while limiting their sales Of srgar
and tobacco here 10 amounts which represent
fair share Of Philippine production. but will not
disturb the domestic sugar and tobacco markets. !
II also re-enacts the Cuban reciprocity agree
ment through which both Cuba and the United /
States have greatly benefited Two administra-
tive provisions in the bill are important One /
protects American patents abroad by applying /
the same rules TO foreign patents here that are
appIied to American patents in foreign coun- /
tries The other makes the wholesale price of
articles in this country the basis on which 10 |
value imports consigned here and not offered for
"a 10 in the open market in the country Of their
origin The provision is aimed at the sort of /
undervaluations most difficult to detect. those as
10 which il is not possible 10 collect definite
and satisfactory testimony concerning their ex
port value
The bill. as a whole shows evidence Of careful (
and intelligent preparation. It may he expected /
10 serve As basis for a thoroughly satisfactory
tariff revision.