Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-09-06

SOliCd6uCS lIdl lie would SIdnO DIV the
bill as 1t reached the Senate.
Il never have contemplated at any time
making any fight on the tariff outside the
party caucus" was Senator Newlands'
statement last night, just before entering
the democratic caucus. Later he gave out
q further statement explaining his posi-
ton on the tariff bill and the currency
bill.
In caucus last night Mr.. Newiands made
last stand In favor of gradual reduc-
ten years, and in favor Of a tariff on
sugar and raw wool. But he was de-
feated, and at the close told his COL
leagues he would support the bill.
The Newlands Resolution.
The resolution offered in the caucus
by Senator Newlands and which was de-
feated was as follows:
THAT the reductions in tariff duties
called for by the pending bill should be
distributed and apportioned over a period
Of three years, and that an amendment
to this effect be prepared by the finance
committee.
THAT at the end of three years
further reductions should be made Of all
excessive duties, through a tariff board
organized by Congress and acting under
a rule fixed by Congress-; and that the
committee on finance prepare an amend
ment to the pending tariff bill to this
effect.
THAT tariff duty of Is per cent be
placed upon wool for a period of three
years. and that thereafter the duty be
reduced to 10 per cent.
That at the end of three years the
tariff duty on sugar be fixed at u
cent per pound for period Of two years,
and thereafter at 10 per cent ad
val0rem."
In his formal statement Senator New
Not Bankers Plot.
Il found a general Tightening of the
money market, caused by what I regard
an unfounded apprehension regarding
pending tariff and financial legislation. l
do not believe this to be due to any
propaganda by the large banks with a
view to forcing amendments which they
desire to the pending currency bill, but
rather to the natural conservatism Of
bankers
The country has pronounced its ver-
dict In favor of material reductions in
| the tariff. which will, Of course, affect
| the protected industries. whose custom 1t
has been to add In our local market the
duty to the normal or International price.
The average duty of the existing tariff
protected product being 81. our domestic
producer adds 43 cents. making the price
$1.43. 1t IL proposed to cut this duty
down to an average OF 25 per cent, which
means that such products will hereafter
sell on an average of $1.25, instead Of
Slab This means. ultimately, IL the
democratic contention that the duty is
added to the price is correct. a large re-
ducti0n in the prices received by the pro-
tected industries
ssThooA cfrio donop1opt ,rnn
credits from the banks, and it is nat
ural therefore that the banks should
be overlooking and revising their loans
with view to securing the safety Of
tected Industries. l find that such
loans are being everywhere closely
scrutinized, and that contraction is the
rule of the hour. This is true of west
ern industries, such as sugar and WOOL
as we'll as OF eastern manufacturing In
dustries.
Currency Bill as Offset.
THE administration. realizing that
this would be the result of tariff re-
duction. decided to enter upon financial
legislation which would insure bet
ter banking system, responsive to the
legitimate demands of our Industries
! for the credits necessary to the main
tenance and extension OF business.
1T very wisely concluded to enter
upon financial legislation that would
unionize the various banks in differ
emit regions of the country into credit
reserve associations which would SO
handle the reserves under government
supervision as to bring them to the
rescue wherever needed to prevent
monetary stringency or panic.
I'm doing this it has sought to make
all issues Of notes. even those formerly
issued by the banks, government is
| sues. and to place the capital and
operations Of the reserve banks under
the control Of q board composed en-
tirely of government officials.
1T is perhaps natural that the banks
should fear the effect of placing SO large
proportion Of their capital under the con-
troll Of what they call a political board.
and think their fears have led them to
exercise additional caution In loaning
banks have been calling upon the city
banks for their deposits. and this limits
the capacity CT the city banks to make
loans.
the average tariff duty from 43 per cent
to IS per cent Is sufficient I think tariff
duties should ultimately not exceed an
average Of IL per cent. but I would make
the reduction gradually over q period OF
duction over a period Of Ave or ten years
to not exceeding 10 per cent through a
tariff board acting under a rule fixed 5y
Congress.
For Gradual Reductions.
II do not believe that sugar and wool
should be so suddenly drifted to free
trade. We are engaged. not in making
perfect tariff system based upon demo-
cratic principles OF tariff for revenue
only, but in making material reductions
Of excessive duties In such way as not
to injure or destroy any legitimate indus
try, according to the requirements of our
party platform. l believe that II we go
to free trade on wool We should go
slowly. meanwhile leaving a moderate
revenue duty, but not protective duty.
LAS to sugar. my views are unchanged.
None Of our insular possessions can COM
pete with Cuba In sugar production. We
should. therefore, stop short of such
reduction as will bring disaster In Ha-
wall. Porto Rico and the Philippines. We
can accomplish this by maintaining
moderate revenue duty So. also, with
the beet sugar industry OF the west. The
production Of alfalfa and beets VIII be
the main industries Of our irrigated re-
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