The Birmingham age-herald., 1909-03-28

all, for although the republican party has repeatedly declared that they favor a tar iff to protect the difference in cost of pro- duction at home and abroad. they have placed their duties so greatly in excess of this amount and in so many cases at pfohlbittve rates that we are compelled 10 reach conclusion that their tariff bills are written to prohibit and not for the purpose of equalizing the difference of the cost of production. in fact, they are protecting the manufacturer in his profits as declared in the last republican plat form. The democratic party has always declared for a tariff for revenue. It is true that any tariff taxes that are levied which allow some imports to enter the country would be in one sense a tariff for revenue, but l take it that the clear meaning of the declaration of the party in favor of a tariff for revenue means competitive tariff. that Is. a tariff that al- lows sufficient imports of every product made in the United States to be imported from abroad to bring about fair and hon. ! est competition, thereby, producing rev. enue, and at the same time preventing the home producer from hiding behind a tariff wall that will enable him to es- tablish monopolies and unduly increase ! the burdens of taxation resting upon the American people without their receiving ! any benefit in return, either in the shape of revenue for the government or in the 1 development of the great industrial inter ests of the country; for it is an eXom that cannot be disputed, that the moment any industry is enabled to create a mo- nopoly it's development along lines of best endeavor at once ceases.
 If there was more general understand ing that the tariff is tax in which pri- vate interests share the proceed with the government there would be a more rig orous questioning of the various duties imposed by Congress than has yet been manifest.
 What Is Protection?
 Professor Taussig, in his testimony be- fore the ways and means committee at the recent hearings, stated: Protection is granted for the purpose of enabling new industries to establish themselves and to offset the difference in cost at home and abroad. If an infant industry cannot be strong and lusty in a reasonable time, it shows it is developed by artificial means and Is not justified and the props should be taken away. Statistics conc1usively show that most of our industries are now able to stand alone" Again he stated: Our natural advantages, improved ma- chinery. efficiency of American labor and ocean frieght rates in many instances overcome the difference in cost of labor
  oped before the ways and means commit
 tee on the pending bill demonstrate be- yond a doubt that if the definition as de- fined by Professor Taussig of tariff for protection, if the truth, that there are very few if any Americans industries that are left within its terms or entitled to it's support. On the other hand the testimony is conclusive that the present rates of duty are far in excess of the difference in the cost of production, and when the tariff duties exceed the difference of1he cost of production at home and abroad they are of necessity levied for the sole purpose of protecting the manufacturer S profits, which to my mind, can not be justified under any circumstances, for when the manufacturer has a fair field an equal terms he should be required to rely on his own resources, energy and business judgment to successfully meet his competitor and drive him from the field. Whenever you agree to the doc Urine that he is entitled to a protective wall to prevent competition yon have laid the foundation stone to create monopoly and to unduly and unjustiy lay burdens upon the consuming masses of the people.
 Tariff for Revenue.
 Prior to the war of 1912, the duties levied under the tariff acts, although they incl dentally afforded some protection, were NAOoA4S ASsAC0 bOACl9 AOt thV PhlpOSO ol obtaining revenue. but during the war of 1872 the embargo acts and other restric- tions that necessarily arose from the war developed certain lines of manufacture to an extent that they were controlling the American market at prices above those justified by normal conditions. To main- tain this suited condition they called on Congress to enact a tariff that would pro- 1 teet them against foreign competition, and the tariff of 1S16, carrying an average ] rate of 20 per cent ad valorem was an | outgrowth of this sentiment. From that l day to this the. great industries of this | coSntry have been fostered and protected | by tariff laws, in many instances prohib- | itive laws, in order that they might grow strcng and self-sustaining. As the infant industry grew in most instances the tariff | rates increased instead of diminishing, un- til wa have reached condition where the duties are so high they no longer produce fair amount of revenue, and in great many instances by the continual increase of the duty; in other cases it has been brought about by allowing the old duties to remain when the progress and develop ment of the American industry had placed it in position where it was enabled to compete on equal terms with its foreign rival
 In a speech delivered in the House of Representatives on March 4 last, Mr. Tawney, chairman of the appropriations committee of the House, stated that there would be a deficit in the treasury at the end of this fiscal year amounting to $780, 0O0,00O l do not think he has made an over estimate. It is absolutely necessary to meet this deficit or we will bring dis aster to the government and the business interests of the country.
 How to Avoid Deficit.
 There are but three ways in which the deficit can be avoided. First, by reducing expenditures; this seems to be impossible under republican administration. Sec ond, by 1evying taxes additional to those now imposed on the people, in order that the present tariff duties assessed in the interests of the manufacturer may not be disturbed. Third, by reducing the present prohibitiye duties of the Dingley bill to a competitive basis, where they will produce sufficient revenue to meet the dmands of the treasury, The protection sentiment in this country has been fostered and cher- ished for so many years by the republi- can party that many great manufactur- ing interests look upon 1t as vested right and seem to believe that regardless of whether the government has sufficient revenue to maintain 1t that they are en- titled to the absolute and entire control of the Ameriean market without oompeti- tion from abroad. This clearly is not a healthy condition of affairs. Where any great corporation in the United States controls 50 per cent or more of the pro duction of a particular commodity the people are in arms at once and declare 1t to be a trust; that legislation is needed to control it; that 1t is not entitled to control 50 per cent of the supply of any great commodity that the people need. A x1.- a.