Montana labor news., 1937-04-22
THE COPPER TARIFF
SITUATION IN BRIEF

I'll (h1A9t 49, - - - T
on foreign produced copper. This
Act would have automatically ex-
pired in June, 1894, if it had not been
extended for one year by Presiden-
tial Proclamation. Then, in 1885,
the same tax was written into the
Revenue Bill of 1885, which auto
matically expires in June, 1887, and
which is now in the process of being
rewritten. If copper is to be in
cluded again, there is much work
to be done by those who are inter-
ested.
The reason that copper protection
was written into the Revenue Bill
rather than enacted directly as a
tariff is that no tariff bill has been
written since 1880, at which time
the need Of copper protection was
not as evident as it was later. The
tariff situation is now being handled
under the reciprocal tariff policies
of the Administration, hence there is
no immediate likelihood of includ-
ing copper as a tariff. Copper must
be protected by means of excise
taxes in the revenue bills, which
means that work has to be done
every two years until such time as
permanent tariff legislation is enact
ed.
The conditions which caused enact
ment of the copper tariff of 1882
still exist today and will continue
to exist indefinitely. The United
States copper industry cannot COM
pete with the foreign copper indus
try and survive because of the low
cost of production abroad resulting
from higher grade ores, enormous
ore reserves, employment of inden-
tured or peon labor, substituting Of
their own industry by foreign coun-
tries as necessary to their own ma
tional defense program, the produc-
ton of copper as a by-product in
foreign countries, and many other
factors.
The continued protection of the
United States copper industry is
necessary if the United States cop
per mines are going to maintain their
wage scales and standard of living
to which United States citizens are
accustomed. Nc more is being asked
than sufficient to equalize the diff
ference in costs between United
States and foreign mines as caused
by the better conditions for work.
men prevailing in this country.
The continuation of the excise tax
on copper is essential to the welfare
of all United States citizens since
countless employees in many indus
tries in all states are directly de-
pendent upon the operation of the
copper mines and many times more
are indirectly dependent. This not
alone applies to the enormous direct
purchases of materials, supplies, and
equipment by mining companies, but,
even more f%ar-reaching, purchases of
food, clothing, and other necessities
by those directly and indirectly en-
ployed. The influence of copper
mining extends to every state in the
Union.
Without continued protection a
complete collapse of the United
States copper industry would be in
evitable, which would throw out of
work many thousands who have re
Gently found Unemployment, cut off
the release of great sums of money
spent throughout the United States
as a result of increased purchases by
the copper mines and their en-
ployes, seriously cripple the reve-
nues of many states and the United
States by loss of taxable wealth, and
have many other equally detrimental
effects.
A healthy copper industry is also
absolutely essential to the national
defense and international independ-
ence of the United States. Copper is
as necessary to the army and navy
as it is to industry, and it is incon-
ceivable that the United States, with
ample copper resources, would ever
permit itself to be dependent upon
foreign countries for its copper sup
plies.
Five years of operation of the cop
per excise tax has proven very bene-
fetal. 1t has successfully prevented
importation of foreign copper and
has allowed the United States cop
per industry to correct, in an order
ly manner, what appeared in 1882
to be an impossible situation. The
mines have successfully liquidateo
huge surplus stocks, much of which
were dumped" into this country
from foreign shores just prior to the
original enactment of this tax.
The United States copper industry
has recovered from the effects Of
foreign competition prior to 1882 ano
is now on the threshold of becoming
a healthy and enduring industry
employing many thousands of men
doing millions of dollars in business
with other industries, contributing {
greater tonnage of freight to the
railroads than most other industries