Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-03-25
OBJECTS OF PROTECTION
Plank of Republican Platform an
Ideal Principle.
ADMISSION OF RAW MATERIAL
Mr.. Underwood of Alabama Pro-
poses Three Ways for overcom-
ing Treasury Deficit.


tory feature of the Payne tariff bill Is
the placing of certain crude, raw ma
terials used in manufacture on the free
list, Representative Crumpacker OF In
diana, the most pronounced downward re-
visionist among the republican members of
the ways and means committee. in a
speech in the House today, discussed at
great length the protection idea, and some
of the most important schedules in the
new bill. He said that tariff bills are pc
culiarly the result of compromises, and
that he had no doubt that the Payne bill
is great Improvement over the DingIey
act.
The object of protection. said Mr..
Crumpacker, lis to stimulate domestic
industries along natural lines, where the
resources of the country are capable Of
supplying the entire domestic demand,
thereby creating home competition and
securing TO the people the comforts and
accessories of life at stable and reason
able prices. Customs duties that are not
levied in harmony with this principle are
not logical protective duties. 1t is not
the policy Of protection to simply sur
round special interests with conditions
under which they may make increased
profits. Neither should it be the object
of protection to simply increase the price
Principle Is Ideal.
Mr.. Crumpacker said that the tariff
plank of the national republican platform
OF 1908, which declared that the duties
ought to be sufficient only to cover the
difference in cost of production in the
United States and in foreign countries.
securing a reasonable profit to the pro-
Queer. is an ideal principle. He stated,
hon hot ;v; olrix
practical application of that principle, be-
cause of the constant huctuation In the
cost of production in America and
abroad
Protective duties should not be unnec-
packer. 1t is often charged that pro-
tective tariff creates trusts. Trusts are
combinations growing out of the passion
of avarice, ana they are created to stifle
competition and increase profits. All
combinations are not trusts. Trusts exist
in free trade countries as we'll as in coun-
tries that maintain protective tariffs.
The chief difference is that in a free trade
country there Is no tariff behind which a
prices unjustIy and imposing upon the
people. while in a protection country, II
the tariff Is higher than is necessary to
cover the difference In the cost of pro-
duction, combinations may degenerate into
trusts and raise prices clear to the top of
the protection wall with entire safety"
Relation Of Protection to Labor.
Speaking Of the relation of protection
to labor. MIR. Crumpacker said that the
vital purpose of a protective tariff Is to
Increase opportunities for the employment
of capital and labor in tho development of
the natural resources. II there were no
protection to American labor. he said, the
level of wages in this country would
gravitate to the level OF wages In foreign
countries. and he declared that the pres
ent tarfn policy tends to keep up the
high standard Of wages and living that
now prevails in the United States.
Notwi .hstanding the high scale Of
wages in this country. said Mr. Crum-
packer. the United States can success
fully compete with the entire civilized
world in many lines Of production, be-
cause 1t has the greatest ma rket OF any
country. and because it's 90.00O,000 peo-
pie have a consuming capaci v equal to
that of almost half the entire popula-
ton of the globe. It's natural resources.
try, and conditions are such here. he
commended. tina the capacity and eff
cheney of labor can be increased in a
greater degree by machinery.
Admission Of Raw Material.
Speaking in favor Of the free admis-
sion of raw material for manufacture
Mr.. Crumpacker said: "The theory OF
the free raw material doctrine is that
1t promotes the greatest development
Of Industries. and gives the greatest op-
portunitieS for the employment OF CAPT.
tai and labor. Duties upon raw mate
rails are handicap upon the American
manufacturer for the expor trade. They
operate to protect his competitor in the
neutral markets by seriously increasing
his cost Of production. There is no great
producing country in the world except
the United 8 ates that does not give it's
manufacturers the benefit OF free raw
materials
MI Crumpacker made a lengthy ar
gument In favor Of free hides, asserting
that the duty on hides has increased
the cost of shoes for the wage-earner
additional capital nor created employ
ment for single additional laborer. He
said the average farmer will derive
more direct benefit In the decreased
cost Of boots. shoes, harness and other
leather products than he now derives
from the tariff on cattle hides.
Factors in Open Markets.
Mr.. Crumpacker declared that many in
dustries II placed upon an equal footing
with foreign competitors with respect to
materials. could we'll afford to pay the
high scale Of American wages and still be-
come important factors in the open mar
kets. He proposed, as a means of ex-
banding our trade with South America,
that raw materials from that continent be
admitted free Of duty to be made into
finished products in the United States and
sold back to the South American coun-
tries. He said that the drawback provi-
sion Of the Payne bill will tend largely to
increase export trade.
Attacking the tariff forrevenue-only'
policy Of the democratic party, Mr.. Crum
packer declared this to be a sham and a
fraud. He discussed the maximum and
minimum provisions of the Payne bill and
declared 1t to be a wise provision.
II predict for this bill said Mr.. Crum-
packer. IF IL shall be enacted into law.
the sincere approval of all the people Of
the country who are interested only in
promoting the general welfare. Following
its enactment l confidently look for such
a revival Of industrial activity as will
foreshadow another era of prosperity more
splendid. il possible. than that which fol-
lowed the enactment of the Dingley law
in 1897"
Raising revenue sufficient to support
the government by means OF duties levied
on foreign merchandise was urged as the
wish OF the majority of the American
people by Representative Oscar Under
wood OF Alabama. who followed Mr..
Crumpacker
The consideration OF the questions in
volved in the bill now pending before
the House. said Mr.. Underwood, brings
before us all the lights and shadows of
varying intensity involved in the taxa
ton Of imported commodities from the
position of the extreme prohibitive pro-
tectionist to that of the free trader. In
my Judgment. with deficit in the Treas
ury. estimated all the way from one hun
dred millions to one hundred and fifty
millions of dollars, the most important
question for us to consider at this time
is the raising of sufficient revenue to sup