New-York tribune., 1909-05-02
AlATufUn-MINIMUM CRITICS.

1t is perhaps .ogical on the part Of critics OF
the protective policy to cry out against the
maximum- minimum rate plan. Such a plan
doubles the value of the protective system since
il enables the domestic manufacturer to enjoy
a fixed measure of protection intended TO cover
the differential between cost Of production here
and cost of production abroad and at the same
time enables the government to meet discrm-
ina tons against American exports on the part
Of any foreign nation which wants 10 drive an
unfair bargain asking us for favOrS which II
is not willing 10 grant US in return. Because
the protective principle is thus turned 10 4
double use and is made an instrument to pro
mote external trade well as domestic devel-
opment the enemies of protection naturally de-
nOunce the maximum minimum device as an
obstacle to the overthrow of the protective sys-
TEN.
The easiest way to attack the maximum
minimum project is TO pretend that the trainers
of the House and Senate tariff bills both con-
tempated applying the maximum rates instead
of the minimum rates to the great mass Of du-
table impOrtatiOns. Our former neighbor. The
Times" recently described the maximum-mini
mum plan as Il ''swindle." intended to increase
protective duties all along the line 1t said:
When the work of the Payne committee was
carefully examined il yielded the ordinary dust
and ashes of the Dead Sea fruit. Every reduc-
ton was found to be liable to be wiped out
act replaced
the operation Of the ingenious and Penrose
'rnaximUm and minimum rates clause. 4 rash
~ truthful might call this device a swindle
An equity court, were it possible to drag the
Payne committee before a court Of equity, would
find Synonymous and equivalent phrase What
the committee did this: 1t pretended to
draw a deed conveying substantial relief for
acknowledged wrongs; then in a subordinate
and indirect part of the instrument il inserted
q provision meant in nearly all cases to with
draw the relief and in some to aggravate the
wrongs
Now. nothing could have been further from
the Payne committees idea than to make the
maximum rates apply ain nearly all cases. In
the first place, both the House maximum-mini-
mum and Senate maximum-minimum sections
are so draw wn that the minimum rates will apply
universally for nearly year and after that to all
countries not discriminating against American
exports and with them from 81 To % per cent
Of our foreign trade is conducted. The mini
mum tariff rates will consequently be the nor
NAL rates as the Republican national platform
directed that they should be. The maximum
will apply only in exceptional cases. 1t would be
folly 10 seek 10 apply the maximum rates to any
large percentage of impOrtatlons The
maximum rates are practically prOhibitive.
They will not produce revenue. and the House
and Senate leaders have tried 30 frame bills
which would bring in sufficient revenue TO
meet the expenses of the government. Senator
AIdrich has especially striven to avoid resorting
to an income tax, an Inheritance tax or in
creased internal revenue taxes, on the ground
that the new tariff law will bring in ample
revenue. If ii does not, his leadership will be
discredited special taxes will have TO be IN
posed and the admission will have TO be made
that the present system Of customs and internal
revenue taxation can no longer be depended
upon to support the government. That is the
one result above all others which the Senate
measure aims at avoiding.
\ more rational view, but still captous one,
is taken by another conspicuous critic Of the
max imum-nnimum plan. THE Philadelphia
Record" '.,The Record" holds that the maxi
mum rates will seldom be applied and will in
fact prove an unused weapon in Gn idle scab-
bard In that sense il says that they viii be
futile" Yet a weapon in reserve has its uses.
Tie United States wants to dwell In peace and