Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-09-06
NEW[ANDS IN LINE
/. FOR PARTY'S TARIFF
Announces He Win Support
Bill on Final Vote in
the Senate.
HIS FIGHT IN CAUCUS
RESULTS IN A DEFEAT
Democratic Leaders Relieved When
Nevada Senator Declares He
Will Not Bolt.

Senator Francis G. Newlands of Neya-
da. whose stand on the tariff bill had
caused his democratic colleagues some
concern. brought relief to the minds OF
administration leaders upon his return
from the west yesterday. The Nevada
senator, though determined to make a
fight within the party lines. assured his
colleagues that he would stand by the
bill as II 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.. Newlands made
last stand in favor of a gradual reduc-
ton of the tariff duties over q period of
ten years, and in favor OF a tariff on
feated, and at the close told his col
leagues he would support the bill.
In his formal statement Senator New
lands said:
Not Bankers Plot.
L found a general Tightening Of the
money market. caused by what l 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 it's YER
dict in favor of material reductions in
the tariff, which will, of course. affect
the protected industries, whose custom it
has been to add in our local market the
The average duty Of the existing tariff
is 43 per cent. and the normal Price Of a
protected product being 81, our domestic
producer adds AZ cents, making the price
Sl.43. 1t is 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 SIPS. instead Of
SLAB. This means. ultimately, II the
democratic contention that the duty is
added to the price is correct. a large re-
tected industries
These industries are dependent upon
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
their deposits. largely loaned to pro-
tected industries. ! 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 well as of eastern manufacturing in
dustries.
Currency Bill as Offset.
1.-The administration. realising that
this would be the result of tariff re-
duction. decided to enter upon financial
LEGISLATION which would insure a 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
ent 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.
TN 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
the control of 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
their depositors' money. The country
banks have been calling upon the city
banks for their deposits. and this limits
the capacity Of the city banks to make
loans.
Il do not believe that the reduction Of
the average tariff duty from AZ per cent
to 25 per cent Is sufficient. I think tariff
duties should ultimately not exceed an
average Of IS per cent. but l would make
the reduction gradually over a period Of
three years and provide for further re-
duction over period Of five or ten years
to notsexceeding Is per cent through a
tariff board acting under a rule fixed by
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 q
perfect tariff system based upon demo-
cratic principles Of tariff for revenue
only, but in making material reductions
of excessive duties in such a way as not
to injure or destroy any legitimate indus
try, according to the requirements of our
to free trade on wool we should go
slowly, meanwhile leaving a moderate
revenue duty. but not a protective duty.
LAS to sugar. my views are unchanged.
None of our insuiar possessions can COM
pete with Cuba in sugar production We
should, therefore. stop short OF such a
reduction as will bring disaster in Ha-
wall, Porto Rico and the Philippines. We
can accomplish this by maintaining a
moderate revenue duty. So. also. with
the beet sugar industry Of the west. The
production OF alfalfa and beets will be
the main industries of our irrigated re-
gions. where the success Of the govern
ment irrigation projects depends largely
upon beet growing form of intensive
cultivation necessary to the development
Of the soil by rotation Of crops. No con-
tention is made for any high protective
duty: the ultimate duty should not ex-
coed one-half cent a pound-the duty
which prevails in England, France and
Germany. 1t will be productive of reve-
nue. and at the same time would save
an important western industry from in
| jury. and our insular possessions from
| prostration.
Sugar Trust Benefited.
Il cannot see why we should AK duty
of J.. cent a mound on rice and deny