The Montgomery advertiser., 1909-03-26
Predicts Approval of
 Payne Bill.
MAKES LENGTHY ARGUMENT
"The Theory of the Free Raw
 Material Doctrine"
Ae Declares That if Hill is Eenateo Iato Law . Revival of ln-
 dWtr1al Activity win Foi- low.

 that the chief commendatory feature of the Payne tarin bill, is the placing of certain crude, raw materials used in manufacture. on the free list, Rep resentative Crumpacker of Indiana, the most pronounced downward revi- sionist among the republican members of the ways and means committee In . speech in the house today discussed ct great length the protection idea and some of the most important scne- dulles ih the new bill.
 He said that tariff bills are peculi- arly the result of compromising ana paid that he had no doubt that tho Payne bill Is great improvement over the Dingley act
 The object of protection" said MT Crumpacker. 'is to stimulate domes- tic industries along natural lines, where the resources of the country are capable of supplying the entire do- mestic demand, thereby creating home competition and securing to the people the comforts and accessories or lire toms duties that are not levied In harmony with this principle. are not logical protective duties. It Is not the policy of protection simply to sur round special interests with oon0- tions under which they may make in- creased profit.
 Neither should 1t be the object of protection simply to increase the price of commodities"
 MT. Crumpbacker said that the tanh plank of the national republican plat form CT 1908. which declared that the duties ought to be suhicient only to cover the difference In cost of pro duction in the United States and in foreign countries, securing a reason able profit, to the producer Is an ideal principle. He stated. however. that the difficulty in making a practical ap- plication of that principle Is because of the constant fluctuations in tho cost of production Tn America and abroad.
 "Protective duties should not be un- necessarily high" continued MT. Crum- packer. "It Is often charged that protective tariff creates trusts. Trusts are combinations growing out of the passion of avarice and they are creat- ed to stifie competition and increase profits All combinations are not trusts. Trusts exist in free trade countries as well as in countries that maintain protective tariffs. The chief difference is that in free trade couri- try, there is no tarin behind which a combination can find shelter in fn- rreaang prices unjustly and impos- Ing upon the people, while in pro- lection country, if the tarfn Is higher than is necessary to cover the differ ence in the cost of production, combi- nation may denegenerate into trusts and raise prices clear to the top of khe protection wall with entire safety
 asThe theory of the free raw materf- al doctrine said MT. Crumpacker. Is that 1t promises the greatest de- yelopment of industries and gives the greatest opportunities for the employ ment of capital and labor. Duties upon raw materials are handicap upon the American manufacturer for the ex. port trade. They operate to protect his competitor in the neutral markets by seriously increasing his cost of pro- ductfon. There Is no great producing country in the world except the Unit ed States that does not give its manu- lecturers the benefit of free mater ials"
 MT. Crumpacker made a lengthy ar pument .n favor of free hides. assert ing that the duty on hides has in creased the cost of shoes for the wage earner but has not created any demand for additional capital nor created em- ployment for a single additional la will derive more direct beneft in the decreased cost of boots. shoes harness and other leather products than he now derives from the tarin on cat tie hides.
 MT. Crumpacker declared that many industries. if placed upon an equal footing with foreign competitors with respect of material could well afford to pay the high scale of Ameri. ri. can wages and still become important factors in the open markets He pro- posed as a means of expanding our trade with South America that raw materials from that contiennt DC ad- n,,ttad free to be made into finished products in the United States and sold hack to the Soudth American coun- tries. He said that the drawback pro- ,,,s,on of the Payne bill will tend largely to increase export trade.
 T predict for this bill' said MT Crumpacker. eff 1t shall be enacted into law, the sincere approval of all the people of the country who are in- interested only in promoting the gen eral welfare. Following its enact ment. I confidently look for such re- .viyal of industrial activity as will Eforeshadow another era of prosperity more splendid. If possible than that <,bicb followed the enactment of the sTanaley law in lS9T."