The Montgomery advertiser., 1909-09-19
BAILEY MAKES REPLY FOREMAN Texas Senator Favofs
 Low Revenues. SURPRISED AT ARGUMENTS Declares Nebfaskzn's Democracy
 Pegins to Waver. Price of F1ni.hed Product Is Net Rse- uiated by That of Raw Material.
 Pies is For Con- sumer.
SURPRISED AT ARGUMENTS

7
 Dallas. Tex. Sept. fs-Before q
 large and enthusiastic audience. United
 States Senator J. W. Bailey tonight rec piled to an address delivered in this
 city last Tuesday by William J. Bryan
 on Democracy and the Tarif."
 MT. Bryan declared for free raw ma
 terial and reduced, rates on manufact-
 ured goods and severely arraigned the
 Texas Demcratio platform of 1886.
 which denounced this doctrine. | Senator Bailey contended tonight for low revenue duties on both raw ma l terials and manufactured articles. l Tn his speech. Senator Bailey ascstb- | ed the authorship of the Texas Demo- cratic platform of Isse. which was att tackled by MT. Bryan. to former United States Senator John II. Reagan and do-
 ed the Wilson bill for admitting raw
 materials free of duty. while mRnufact-
 ured articles were protected by heavy
 duties. He declared that the Texas
 platform was in harmony with the tar
 iff plank of the National Democratic
 platform of 1896. when Mir. Bryan was
 candidate.
 Taking up the four reasons advanced l by Mir. Bryan in favor of free raw
 materials. Senator Bailey made reply to l o2cn
 Mir. Bryan that duty on raw material
 would be an embarrassment to ths
 manufacturers in export trade. Senatnr
 Bailey said:
 .'of course duty on the raw nas-
 teriai is an .embarrassne to ths | manufacturer, just as any tax ig an
 'embarrassnnent. In the same sense to the man who pays 1t. Of course. when | the manufacturer pays tax on his
 raw material his cost of production Is | increased just that much. but when the | government lays tax on the manu- living is increased just that much te | all American consumers and I would I prefer to relieve the senibarrasamenf' I of the American consumer at home than to relieve the ieTnbarrassfisnt of I the American mnnufacturer abroad. "And my answer to those who de-s mana free raw material In order that -four rnanufe eetureye may compete In cha lfnarkets Of the world is that am wtil- lfng to take the tAx aR the v v mats- the tax of the ilriiebsd product 1 be- lifeve that American consumers are as much entitled to the benefit of coinpq< II tition In our markets as American manufacturers are entitled to eofnpsto
 in foreIgn markets 1T ~ ws are so haxs s,. 4 benefit of the American ninnufacturer abroad, let US have also free trade in I their finished products for the benefit l of the American ccnsumers at hone.
 '.Mr. E3ryan's second argument I agains a duty on raw material is that lit is at last duty on the conHunier. l @This Is strange language to como from e man who has been three fifnns Ia Presidential candidate of the Der1o< cratic Party To contend that . de- mand must levy a compensatory duty ] is to convict the Democratic Party Of adopting the worst of protection dey | vices. Where did Mir. Bryan learn that n Democrat in construing e revenue tarifY, Is obligated to give the uianu~
 facturer a compensatory dutyy 1 "A compensatory duty has not place l in the vocabulary of Democrat who | believes that all taxes should be ievied for the purpose of raising money fo l support the government because it is | employed for the purpose of auoxlng I the manufacturer to compensate him. self out of the pockets of the peopls I for the taxes which he has paid to- ward the governments support. The 1 manufacturer as we'll as every other man will do that whenever he can and often enough without special law | enabling him to do it.
 "The Democrstic party has alwaYs l contended that the price of the aniah- ed product Is not regulated by the ! price of the raw material or by the final cost of production. We have al- ways insisted that the manufactures looks to immunity from foreign conl~ petition, which the duty on the inisb-
 ed product furnishes him and not to | the cost of production. when he comes to fix the cost of his commodities. T have always believed. and be- lieVe now, that the Democratic parfv has been and Is right in that connee- ton. I belive that the manufacturer will etact from the American people the highest price he can without s<- posing himself to foreign competition.
 and do not believe that reducing tho
 cost of production to the manufacturer
 will reduce the price of the goods | to the consumer.
 'Mr Bryan's third reason for sup-
 porting the doctrine of free raw matt
 eral is that the tax is Iightest when
 imposed upon products at the moae
 advanced stage.
 "He says that each ose who handlea
 the product exacts a profit not oniy
 upon the original price. but upon tna l tariff. If this be true, then instead of being an objection to Ievying a fax upon raw material. it becomes an ar gument in favor of 1t because 1t estah-
 fishes what all Deocrats so much desire.
 the wider distribution of the efgaot ae
 the tarin which must inevitably ra~
 duce its benefit to some and its burden
 'Mr. M declares that the con- sumer al that other things bsink
 equal. thu ax Is cheapest when it la
 levied upS finished product only. That
 would undoubtedly be true under q
 system of Republican taxation. beeausa | they levy their eompensatory and dlf- | terentlal duties for the sole and only purpose of enabling the manutactures l to take from the consumer every snss- 1 cies of tax which he has been eompsll- l ed to pay; but under Democratic sys- l tenn of tarim for revenue only. tlta
 duty would be fixed at the lowest rata l consistent with the revenue necessf- | ties of the government and therefore. l 1t would be neither higher nor lower | on the manufactured product In consa- l quence of the duty on the raw mats- I rial"
 Senator Bailey discussed the hindins | force of platforms and declared himself
 a strict party man. but declared his | Texas constituents had declared aHainst | free raw material and he had always | publicly opposed lt. hence he abeyad | his constituents and his own com ' aa .af faa.