N
Republican Campaign Text-Book
1904
ISSUED BY THE
REPUBLICAN NATIONAL COMMITTEE
PRESS OF THE EVENING WISCONSIN CO.
366-368-370 Milwaukee Street,
130-132-134-136 Michigan Street
Milwaukee, Wis.
it outline of contents.
Paoh.
Things for which the Republican party stands 329
Republican legislation, 1860 to 1904 ;tt2
Laws enacted by the Republican party 888
Work of the Departments, 1897 to 1904 :v,U, 392
Department of State 334
Treasury Department 340
War Department 347
Department of Justice 362
Post-Offlce Department 366
Navy Department 371
Department of the Interior 379
Department of Agriculture 883
Department of Commerce and Labor 386
The Civil Service 393
Railway Regulation 395
Merchant Marine 398
Pensions and Pension Laws 408
The problem of our colored citizens 416
Vote for representatives in Congress, 1900-1902 423
Vote for President, 1900 424
Vote for President, 1856 to 1900 425
McKInley and Bryan states, conditions In 426
Work of the 58th Congress 427
German-Americans for Roosevelt 432
Budgets of principal countries of the world, 1880-1902 435
Progress of the United States in principal Industries 436-440
Development of the United States, 1800 to 1903 442, 443
Railways in the United States, 1883-1902 condition* 444
Financial and commercial conditions of principal countries 445
Last speech of William McKUiley 449
Last s£e,ech of Mascus* £j .Hr.nna 452
Fifty yaars of the'« Republican* party, Hon. John Hay 456
Fifty .years pf the. Republican party, Hon. C. W. Fairbanks 464
Spe*icl/ of Hod. EHhnI Root, Republican National Convention, 1904... 466 Speech of Hon. J. G.' Ca'ririon, Republican National Convention, 1904. 479
Platform of Republican party, 1904 482
Platform of Democratic party, 1904 486
Platform of People's party, 1904 491
Democratic platform and candidate discussed 493
The St. Louis Esopus episode 497
The trusts and Judge Parker 503
Democratic record on the gold standard act of 1900 505
Silver planks of Democratic platforms, of 1890-1900 507
Rejected gold plank of St. Louis platforms, 1904 508
Judge Parker's telegram and the Convention's reply 508
Gold standard act of 1900 509
Currency record of Republican and Democratic parties 512
Commerce of gold and silver standard countries of the world.. 516
Gold and silver production of United States, 1792-1903 517
Gold imports and exports of United States, 1825-1903 518
Commerce of the United States and Canada 522
Coinage of the United States' mints 1846-1903 519
World's production of gold and silver 1492-1903 520
Stocks of money in 13 principal countries, 1873-1903 521
Commerce of the United States with Canada, 1850-1903 522
Passports and protection to American Citizens abroad 523
President Roosevelt's speech to notification committee 529
Senator Fairbanks' speech to Notification Committee 533
Judge Parker's speech to the Notification Committee 541
Republican National Committee 547
Republican Congressional Committee 548
Electoral votes by states, 1864 to 1900 549
Electoral votes allotted to each state in 1904 549
INDEX
A
Page.
Advance in prices chiefly in natural products 247
Advance in prices 241
Advance in prices in other countries 243
Adversity vs. prosperity in three presidential periods 105
Adversity under low tariff of 1894 100
Agitation of tariff, effect on manufactures and business 47
Agriculture Department of, work of, 1897-1904 383
Agricultural interest benefited by return to protection 103
Agricultural products, exportation of, 1850 to 1903 130
Agricultural products, prices compared with articles consumed 145
Agricultural prosperity under Republican Administration 136
Agricultural products, exportation of, under low tariff 139
Allison, Hon. W. B. on trusts and tariff 195
American citizen protected abroad 526
American tariffs, 1789 to 1903 56
American vessels engaged in foreign and domestic trade, 1860-1903.. 405 American wheat crop and consumption of in United States, 1877-1903. 141
Animals on farm, number and value, by groups, 1875-1903 140
Animals on farms, value of, 1850-1903 440
Animals on farm value of, under four Presidents 141
Area, population wealth, etc., of United States, 1800-1903 442
Arid lands, irrigation for 160, 162
Army reduction and organization 348
Asia, commerce with United States, growth of, 1899-1903 322
Australia, tariff of 8
Average wage increase or decrease, 1890-1903 204
B
Balance of trade before and since March, 1897 , 62
Balfour, Sir Arthur, on British prosperity. 94
Bank clearings in New York, 1850-1904 437
Bank clearings in United States, 1890-1903 437
Bank deposits, (all classes of banks) 1875 to 1903 109
Bank deposits by states, 1892-96-1903 113
Bank deposits, savings, 1820 to 1903 107
Bank deposits, in United States, 1875-1903 438
Banks, national, 1863 to 1903 110
Banks, national organized 346
Barrett, Hon. John, on extension of American influence 323
Barrett, Hon. John, on shipping question 402
Beet sugar, production in the United States 155
Beet and cane sugar production in United States 157
Beet sugar, produced in United States, 1880-1903 159
Beet sugar and Cuban reciprocity 156
Beet sugar and cane sugar production of the world, 1840-1903 159
Beet sugar production of the United States, 1880-1903 440
Belgium, tariff of 7
Bismarck on protection in United States 95
Boots and shoes, did tariff on hides affect prices of? 44, 46
Boots and shoes, prices 1897 to 1904 66
Budgets of the principal countries of the world, 1880-1903 435
Page.
Boltftio speech of President McKlnley 449
Bureau of corporations, Its work since orgnnlzntlon 888
BostnetS and industrial conditions, 18964)6 V2~>
r.usincss of Post Office Department, statistical details, 1790-1903... 370
Rrltlsh and American Industrial growth compared 04
Rritish arguments for protection 57
Rrltlsh colonies, tariffs of 8
Rritish Imports of manufactures 8
Hrltlsh Iron and steel commission, views on United States Industry.. 52
I'.ritish tariff and revenues produced thereby 70
British tariff, detailed statement 70
British view of protection '. 49
Bryan and McKInley states of 1900, conditions In 420
Bryan, Wm. Jennings, speech on Parker etc 52!»
c
Cable, the Pacific 293
Panada, commerce of United Staffs with, 1850-1903 522
Canada, reciprocity with 45
Canada, tariff of 8
Canal Sault Ste. Marie, tonnage of vessels, 1800-1903 440
Canal, Panama discussed 207
Cane and beet sugar production of the world, 1840-1903 159
Cannon, Hon. J. G., speech at Republican National Convention, 1904. 479
Capital and labor, relative share In prosperity 37
Capital Invested in manufacturing 1850 to 1900 07
Census of 1900 on share of manufactures produced by trusts 15
Census report on irrigation 1G3
Chamberlain, Hon. Joseph, on British prosperity 94
Cheap transportation destroys natural protection 6
Circulation of money in the United States, July 1st, 1904 397
Circulation of money, increase, 1896 to 1904 341
Circulation of money in the United States, 1800-1903 442
Circulation of money in United States, 1850-1904 437
Civil service, the 393
Clearing house returns in New York and United States 112
Cleveland's administration, record of trusts 191
Cleveland low tariff adversity 100
Coal consumption as a measure of industrial activity 01
Coal consumption in free trade and protection countries 01
Coal consumption In high and low tariff countries 12
Coal, growth in production in United States 39, 01
Coal, prices of before and after removal of tariff 45
Coal production of United States, 1850-1903 439
Coal strike, President Roosevelt's action 201
Coinage of United States mints, 1840-1902 523
Colonies, trade of Great Britain with its, 1809-1902 321
Colored citizens, problem of 410
Colored employees in the service of the United States government. . 42'J
Combinations, industrial, in England 13
Combinations, wages paid by, before and after consolidation.. 230
Commerce, effect of protection upon 20, 02
Commerce, growth under reciprocity 40
Commerce and Labor, department of, its work since organization.. 380
Commerce of countries commercially adjacent to the Philippines 322
Commerce of gold and silver standard countries of the world 519
Commerce of the United States, 1790 to 1904 128
Commerce of United States with Asia, 1899-1903, growth of 322
INDEX. Vll
P4.GE.
Commerce of 'United States with Canada 522
Commerce of the U. S. in American and foreign vessels, 1860-1903.. 400 Commerce of U. S. compared with Germany and United Kingdom.. 122
Commerce with countries protesting against Dingley law 30
Commerce with our Island possessions 292
Commerce with Oceania 295
Commerce of the Orient, importance to the United States 291
Commerce of the Pacific, development of 290
Commerce of the United Kingdom, growth compared with U. S... 122
Commerce of the United Kingdom, with its colonies, 1869-1902 321
Commercial failures in United States, 1880 to 1903 114
Commercial and financial statistics of principal countries 445
Commercial relations of United States with its islands 318
Committee, Republican National 547
Committee, Republican congressional 548
Conditions in Bryan and McKinley states, of 1900 426
Conditions in United States compared with other countries 122
Conditions of prosperity 1S92-96-1900 and 1903 116
Congress, the 58th, its work discussed 427
Congressional election record, 1900-1902 423
Congressional Record, "Extracts From" described 4
Congressional Record, "Pages From" described 4
Consumption of coal in free trade and protection countries 61
Consumption of cotton as test of prosperity 102
Control of markets and prices by corporations 15
Corn, average value per bushel, 1870-1903. 441
Corporations, bureau of, its work since organization 388
Corporations, can they control markets and prices 15
Corporations, Judge Grosscup on 16
Corporations, President Roosevelt on 17
Cost of living in United States and England compared 34
Cotton consumed by manufacturers of United States, 1850-1903 440
Cotton consumption as test of prosperity 102
Cotton industry of United States, 1850 to 1900 92
Cotton Manufacturing development under protection S8
Cotton production, manufacture, importation and exportation 92
Cotton production of United States, 1800-1903 443
Cotton production of the United States, 1830-1903 440
Countries protesting against Dingley law, trade with 29
Crops, principal, value of, 1866-1903 139
Cuba, Democratic record regarding 288
Cuba, naval stations in 376
Cuba record of action by United States 284
Cuban reciprocity and beet sugar 156
Currency of all kinds in circulation July 1st, 1904 397
Currency of 13. principal countries 525
Currency record of Republican and Democratic parties 515
Currency system element of elasticity development 343
D
Day's wages, purchasing power of, 1896-1903 211
Debt and wealth of leading nations 124
Debt of United States, 1800-1903 442
Debt of United States 1850-1903 437
Debt of U. S. 1865-1903 135
Democracy and panic periods 58, 60
Democratic adversity, record of 1893-96 125
viii index.
Page.
Democratic convention reply to Judge Parker's telegram.. 511
Democratic party, Its policy of opposition, Littleton 2
I democratic platform, iD04 489
I democratic platform discussed and analyzed 496
Democratic press on exports below home prices 22
1 democratic record in Cuban legislation 288
Democratic record on rural free delivery 165
Democratic record on trusts 168, 101
Democratic silver planks 1896-1900 510
Democratic vote against gold standard act / 508
Democratic and Republican pension legislation record 411
Democratic and Republican record on currency 515
Democratic and Republican States, labor laws in 236-238
Department of Agriculture, its work, 1897-1904 383
Department of Commerce and Labor, Its work * 386
Department of Commerce and Labor, work regarding trusts 176
Department of Interior, its work, 1897-1904 379
Department of Justice, its work, 1897-1904 362
Department of Justice, work regarding trusts 172
Department of State, its work, 1897-1904 334
Department of State, work in the Orient 324
Deposits in all classes of banks, 1875 to 1903 109
Deposits in Savings Banks, 1820 to 1903 107, 108
Deposits, savings, in various countries 108
Dingley law, imports of raw material under 42
Dingley tariff, prosperity urder 12
Dingley law, trade with countries protesting against 29
Diplomacy of the United States in Orient 324
Duties collected under low and protective tariffs 30, 59
Duties paid per capita on imports, 1870 to 1903 133
E
Earnings in various occupations, 1903 compared with J.896 206
Earnings of railway employees, 1896 and 1903 236
Earnings of various occupations, 1890-1903 200-203
Effect of tariff agitation on manufactures and business. 47
Effect of protection on export trade 25
Elasticity in currency system development 343
Election laws in the South and North 420
Election of members of Congress, vote on, 1900-1902 423
Electoral votes by States, 1864 to 1900 '. 537
Electoral and popular vote for President, 1900 424
Electors, number to earn State, 1904 549
Employers and employees in United States, English views on 53
Employees of manufacturing establishments in U. S., 1850 to 1900.. 67
Employees of railways, earnings of 1896 to 1903 * 236
Employment and wages paid in manufacturing, 1850 to 1900 67
England and the United States, wages of labor in 222
England and United States, relative to industrial growth 64
England and United States, wages in cities. 226
England and United States, retail prices in 227
England, experience with free trade 16
England, growth of wealth and manufacturing 38
England, imports and exports of manufactures, 1860 to 1902 40
England, sales abroad below home prices 21
England, trusts in 181
English argument for protection 57
Page. English attitude toward trusts 13
English imports of manufactures 8
English Iron and Steel Commission to United States 52
English Labor Commission to United States 51
English tariff, detailed statement 70
English tariff and revenue produced thereby 70
English views of American tin plate industry 54
English view of protection 49
Esopus-St. Louis episode 500
Europe, trusts in 180
European combinations against the United States 27
European exports below home prices 22
Excess of exports before and since March 4th, 1897 62
Exchange value of food products, 1896 and 1903 216
Expansion and its results 296
Expenditures and receipts of United States, 1790 to 1903 134
Expenditures of the United States compared with other countries.. 115
Expenditures of leading nations per capita 124
Expenditures for military and navy services of principal countries. . 435
Expenditures of principal countries of the world, 1880-1903 435
Expenditures of principal countries for navy 378
Expenses of living in United States and England compared 34
Exportation of agricultural products, 1850 to 1903 130
Exportation of farm products under low tariff 139
Exportation of manufactures 1850 to 1903 130
Exports and imports of the United States, 1790 to 1904 128
Exports and imports, excess of under high and low tariffs 62
Exports below home prices, democratic press on 22
Exports by England below home prices 21
Exports of U. S. to Grand Divisions, 1850 to 1903 132
Exportation by great groups, 1850 to 1903 130
Exports, excess of, before and since March 4th, 1897 62
Exports from the United States, 1850-1904 438
Exports from United States, 1800-1903 '. 443
Exports of manufactures below home prices 18, 80
Exports of manufactures from the1 United States, 1850-1904 438
Exports per capita, 1870 to 1903 i 133
Exports to Asia and Oceania 294
Exports to countries protesting against Dingley law 30
Exports to the Orient, by articles 294
Export trade, effect of protection on 25
Exports under high and low tariffs of United States 26, 62
Extension of National bank system 344
"Extracts from Congressional Record" described 4
F
Failure of crops not cause of panic of 1893-4 60
Failures in United States, 1880 to 1903 114
Failures, strikes, etc., 1893-1896 125
Fairbanks, Hon. C. W., speech at Jackson, Mich 456
Fairbanks, speech to Notification Committee 539
Farm animals, increase in value 137
Farm animals, number and value, by groups, 1875-1903 140
Farm animals, value of, 1850-1903 440
Farm animals, value of, under four presidents 141
Farm crops, value of, 1866-1903 139
Farm crops,, value of, 1895 to 1903 .- 114
X INI"
Page.
Farm earnings in manufacturing and nonraanufacturing sections. . . . 148
■ products, exportation of, under low tariff 130
Farm products, freight rates of 18681003 146, 147
■ products, price, by states, 1802-1003 142, 143
Farm products, prices compared with articles consumed 1877-1003.144, 145
Farm prodm -ts. purchasing power of, 1806 and 1003 217, 210
l arm products, share used by manufacturers 31
Farm values, growth of 08
Farm values, increase in, since 1895 114
Farm values, Increase of, under Republican administration 136
Farmers benefited by return to protection 103
Farmer, relation of manufacturing to 91
Farmer's prosperity under Republican administration 136
Farmer, value of factory to 148
Fifty years of Republican party, Hon. John Hay 456
Fifty-eighth Congress, Its work 427
Financial, commercial and industrial conditions, 1802 to 1003 116
Financial and commercial statistics of principal countries 445
Financial record of the Republican and Democratic parties 515
Food in England, prices of, increase in 225
Food products, exchange value of, 1806 and 1003 215
Food purchased with one day's wages, by articles, 1806-1003 211
Food, relative prices, 1800-1003 200
Foreign carrying trade in American and foreign vessels, 1860-1003.. 406
Foreign commerce of the United States 128
Foreign countries, tariffs of 7
Foreign sales below home prices 18, 80
"Free raw materials" under Dingley and Wilson laws 42
Free trade between the U. S. and Porto Rico, Hawaii, and Alaska. . . 207
Free trade destructive In England 16
Free trade, English arguments against 57
Freight rates on farm products, 1868-1003 146, 147
France, tariff of 7
Q
Garfield, Hon. James A., on great corporations 180
German-Americans for Roosevelt 432
Germany, tariff of 7
Germany, wages affected by protection 63
Gold certificates in circulation in United States, July 1st, 1004 307
Gold, excess of Imports over exports, 1850-1003 439
Gold imports and exports 521
Gold in circulation in United States July 1st, 1004 397
Gold and sliver production of the world, 1403-1002 524
Gold and silver standard countries of the world, their commerce 51.0
Gold and silver produced by principal countries 1002 524
Gold and silver productions in the United States, 1402-1003 520
Gold standard act, Democratic vote against 508
Gold standard act, copy of r)12
Government expenditures of the United States, 1850-1003 437
Government receipts under low and protective tariffs 30 50
Gray, Judge, on President's attitude in coal strike 2G3
Great Britain, Chamberlain and Balfour on lack of prosperity 04
Great Britain, labor conditions in 34
Great Britain, trade with its colonies, 1860-1002 321
Page.
Great Britain, trusts in 13
"Greenbacks" in circulation, July 1st, 1904 397
Grosscup, Judge, on corporations 16
Growing demand for tropical products in the United States 292
Growth of exports to Asia and Oceania 294
Growth of exports under protection 26, 62
Growth in imports and exports of manufactures, England and U. S. . 41
Growth of wealth in United States and other countries 37, 38
Growth of wealth under protection 98
Guenther, on European exports below home prices 22
H
Hanna, Marcus A., last words of advice to the party and people. . . . 452
Hawaiian Islands, commerce with, 1897-1903 319
Hawaiian Islands, Philippines and Porto Rico, conditions 299-322
Hawaiian Islands, work of United States in 311
Hay, Hon. John, speech at Jackson, Mich 456
History of Republican party, Hon. John Hay on 456
History of Republican party, Senator Fairbanks on 464
Home market, equals world's international commerce 32
Home markets, value under protection 31, 32
Homestead entries in United States, 1890-1903 441
I
Immigrants arriving in United States, 1850-1903 441
Importation of manufacturers' materials, 1850 to 1903 129
Importation, production and consumption of sugar, 1880-1903 158
Imports and exports of gold coin and bullion, 1825-1903 521
Imports and exports of United States, 1790 to 1904 128
Imports by Grand Divisions, 1850 to 1903. 131
Imports into the United States, 1850-1904 438
Imports into United -States, 1800-1903 443
Imports of material for manufacturing, 1850-1903 439
Imports of the United States by great groups, 1850 to 1903 129
Imports, prices advance in 244
Imports, tropical into the United States, by articles, 1870-1903 .... 320-321
Increase and decrease of earnings, 1890-1903 204
Increase in prices of food in England 225
Increased earnings of various occupations, 1896-1903 206
Industrial combinations, effect on wages 230
Industrial combinations in England v 13
Industrial Commission on trusts abroad 14
Industrial Commission on prices in foreign markets 18-80
Industrial growth in England and United States 64
Industrial life insurance under high and low tariffs 33
Industrial life insurance in force in United States, 1880-1902 438
Insular tariff cases 362
Insurance, life, in force in United States, 1850-1902 438
Interdependence and home exchange under protection 32
Interest charge, United States, per capita, 1850-1903 437
Interest on public debt, 1865-1903 135
Interest charge on public debt of United States, 1850-1903 437
Interior Department, its work, 1897-1904 379
Interstate commerce commission, its work 395
Investigation of Post-Office Department 367
Iron and coal as an index of prosperity 99
Iron and steel consumption in United States and other countries.... 78
XII INDI.X.
Page. Iron and steel Industry In the United tSates 77
Iron and steel, share produced by steel corporation 15, 05
Iron ore, prices, 1898 to, 1903 83
Irrigation, President Roosevelt on HH), 1G2
Irrigation statistics, what has been accomplished li;.".
Islands of the United States, commerce with 318
Island territories of the United States, conditions 29,9 322
Isthmian canal, advantage to western ports 296
Isthmian canal discussed 1M!7
Italy, tariff of 7
J
Jarrett on English exports below home prices 21
Jeans, English steel expert, on manufacturing In United States 52
Jenks, Prof., on trusts abroad 14
Jewish citizens, passports question discussed 526
Judge Gray on President's attitude in coal strike 263
Justice, Department of, its work, 1897-1904 362
L
Labor and capital, relative share in prosperity 37
Labor conditions in Great Britain 34
Labor and protective tariff 33
Labor Bureau reports by states 231
Labor Commission, English, visit to United States 51
Labor, effect of trusts on 227
Labor in United States, English views 53
Labor in United States and England, wages of 222
Labor laws in Republican and Democratic states 236-238
Labor, relative compensation in United States and England 36
Labor, wages and prices 200
Land frauds, work of Interior Department regarding 379
Last speech of Marcus A. Hanna 452
Last speech of Wm. McKinley 449
Laws enacted by Republican party 332
Laws, labor in Republican and Democratic states 236-238
Leather manufactures, prices not affected by tariff on hides 44, 46
Legislation, Republican, on labor 332
Life insurance in force in United States, 1850-1902 438
Life insurance, industrial, under high and low tariffs 33
Lincoln on tariff 48
Littleton, Hon. Martin W., on Democratic party 2
Live stock on farms, value of under four Presidents 141
Live stock on farms, number and value of, by groups, 1875-1903 .... 140
Living, cost of in United States and England compared 34
Living, cost of, compared with wages 208
Losses of wage earners under low tariff 100
M
Manufactures, annual value of products 150
Manufactures exported from the United States, 1850-1904 438
Manufactures exported from United States, 1800-1903 443
Manufactures, exports of 130
Manufactures, exports less than home prices 18-80
Manufactures, imports and exports, England and U. S., 1860 to 1903. 41 Manufactures, imports and exports of England, 1860-1902 40
INDEX. Xlll
Page.
Manufactures, imports into Great Britain 8
Manufactures of the United States by great groups in 1900 150
Manufactures of leading countries compared with United States 124
Manufactures in the United States, value, 1850-1900 150
Manufactures, prices not controlled by trusts 44
Manufactures, relative growth under high and low tariffs 38
Manufactures, value of product in United States, 1850 to 1900 67
Manufacturer's materials, advance in prices of 242
Manufacturer's material imported, 1850*1903 439
Manufacturers, use of farm products by 31
Manufacturing in the United States, capital, wages, etc., 1850 to 1900 6T
Manufacturing in United States, Moseley commission on 51
Manufacturing, progress in the United States, 1850 to 1900 . 67
Manufacturing, value to the farmer 148
Markets, can corporations control 15
Markets supplied by islands of United States 318
Materials for use in manufacturing imported into U. S., 1850-1903.. 439
Materials for use in manufacturing, imported, 1850-1903 439
Materials used in manufacturing, 1850 to 1900 67
McKinley, Wm., last speech of 449
McKinley tariff, prosperity under 12
McKinley and Bryan states of 1900, conditions in 426
Merchant marine of United States and the world 398
Merger suit, what it saved 193
Merger case, New York World on 196
Military and naval expenditures of leading countries 435
Military service, its work, 1897-1904 348
Mineral productions as test of prosperity 102
Mineral production of the United States, 1870-1903 440
Mints, United States, coinage of, 1846-1902 523
Money in circulation in United States, 1800-1903 442
Money in circulation in United States, 1850-1903 437
Money in circulation in United States, July 1st, 1904 397
Money in circulation, increase, 1896 to 1904 341
Money in 13 principal countries of the world, 1873 and 1902 525'
Money supply, elasticity in system, development of 343
Moseley commission to United States, views of members 51
Moseley, English manufacturer on United States 35, 50
Mulhall on Protection in United States 95
N
National banks, 1863 to 1903 110
National bank notes in circulation, July 1st, 1904 397
National banks organized since March 4th, 1900 346
National bank system, its extension 344
National bank statistics, 1904 121
National expenditures of leading nations compared, per capita . . 124
National expenditures of leading countries, per capita • 115
Natural protection destroyed by cheap transportation 6
Naval expenditures of principal countries 378
Naval and military expenditures in leading countries 435
Naval stations in Cuba 376
Navy Department, work of, 1897-1904 371
Netherlands, tariff of 7
New York World on Merger case 196
New Zealand, tariff of 8
XIV INDEX.
Page. Noncontiguous territories of the United States, conditions 299-322
Nondurable articles, advance in prices 119
Northern securities decision 177
Norway, tariff of 7
Number of persons engaged In manufacturing, 1850 to 1900 67
o
Ocean mall service payments by U. S. and United Kingdom, 1848-1903. 407
Oceania, commerce with 295
Old age pension order, Gen. Sickles on 412
Old age pension order, Secretary Hitchcock on 413
Old age pension order issued by Lochran, in 1893 414
Open shop order of President Roosevelt 259
Organization and reduction of the army 348
Orient exports to, by articles 294
Orient, importance of its commerce to the United States 291
P
Pacific, the, development of commerce on 290
Pacific cable 293
Pacific coast brought nearer European markets by canals 296
"Pages from Congressional Record" described 4
Panama Canal, advantage to Western ports 296
Panama Canal discussed 267
Panama Canal, distance between ports via 283
Panama, extract from President's message on 276
Panama Republic recognized by foreign governments 274
Panama, Secretary Root on 274
Panic of 1893-4 not due to crop failures 60
Panic periods and Democracy 58, 60
Parker and trust managers .' 198
Parker and the trusts 506
Parker, Wm. Jennings Bryan on 529
Parker's letter on his vote for free silver, 1896-1900 500
Parker telegram to St. Louis convention 511
Parker ; speech to Notification Committee 541
Passports and protection to American citizens of all classes 526
Pensions, cost of, 1866-1903 410
Pensions and pensioners 408
Pension legislation, Republican and Democratic record contrasted.... 411
Pension Order No. 78, Secretary Hitchcock on. 413
Pension Order No. 78, General Sickles on 412
Pensioners, number on the roll, 1866-1903 410
People's party, platform of, 1904 494
Per capita of exports and imports, 1870-1903 133
Per capita of imports and duties paid, 1870-1903 133
Per capita of national debt and interest, 1865-1903 135
Per cent of increase or decrease in hours of labor 205
Per cent of world's sugar production by beet and cane, 1840-1903. . 159
Philippines, commerce with, 1897-1903 319
Philippines, commerce of countries commercially adjacent to 322
Philippine Islands, work of the United States army in 350
Philippines, work of United States in 299-311
Philippines, Porto Rico, and Hawaiian Islands, conditions 299-322
Pig iron, growth in production in United States 39, 78
Pig iron, production of the United States, 185&1903 439
INDEX. XV
Page.
Platform of Democratic party, 1904 489
Platform of Democratic party discussed and analyzed 496
Platform of the People's party, 1904 494
Platform of Republican party, 1904 485
Popular and electoral vote for President by states, 1900 424
Popular and electoral vote for President, 1856 to 1900 425
Population of the United States, 1850-1903 437
Population, wealth, and area, etc., of the United States, 1800-1903. . 442
Populist party, platform of, 1904 494
Porto Rico, commerce with, 1897-1903 319
Porto Rico, work of United States in 313
Porto Rico, Hawaiian Islands, and Philippines, conditions 299-322
Portugal, tariff of 7
Post-Office Department, its development, 1790-1903 370
Post-Office Department, its work, 1803-1904 366
Post-Office Department investigation 367
Post-Office Department, revenues of, 1790-1903 370
Post-offices, number in United States, 1790-1903 370
Post routes in United States, length of, 1790-1903 370
Postal fraud case, result of 368
Postal investigation, result of cases tried 368
Postal receipts, 1893-1904 306
Postal statistics of United States, 1790-1903 370
President Roosevelt's administration, record of 252
President Roosevelt and the coal strike 261
President Roosevelt on irrigation 160, 162
President Roosevelt on public lands 160
Presidential vote, electoral and popular, 1900 424
Presidential vote, electoral and popular, 1856-1900 125
Prices, 1880-1903, annual average 245
Prices, advance of, in articles imported 244
Prices, advance is chiefly in natural products 247
Prices and advance in other countries 243
Prices and relation of trusts thereto 15
Prices and tariff, English views on 55
Prices at home, does protection increase 43
Prices, can corporations control 15
Prices, does tariff control 119
Prices not controlled by trusts , 44
Prices of articles of farm production and consumption, 1877-1903. . 144, 145
Prices of boots and shoes, 1897-1904 66
Prices of coal before and after removal of tariff 45
Prices of cotton and cotton goods in United States, 1880-1003;. 93
Prices of farm products by states, 1892-1903 142, 143
Prices of food in England, increase in 225
Prices of manufactures reduced by domestic prosperity 99
Prices^ of iron ore, 1898-1903 83
Prices of tin plate and fall under protection 85
Prices of trust-made articles, decline in 118
Prices, relative, of food, 1890-1903 209
Prices, retail, in United States and England 227
Prices, wages, and labor 200
Problem of our colored citizens 416
Production of gold and silver in the world, 1493-1902 524
Production of gold and silver by principal countries. 1902 524
Production, importation, and consumption of sugar, 1880-1903 158
Production of minerals as test of prosperity 102
XVI INDEX.
Page.
Progress of manufacturing in the United States, 1850-1900 t>7
Progress of United States in area, population, etc., 1800 loo:;. .. . I ij
Progress of United States In its material industries 487440
Promise of tariff changes causes immed'ate check in prosperity.... LOO
Prosperity and relation to the various tariffs of the United States, i 86
Prosperity, conditions in 1892-96, 1900-03 110
Prosperity in the United States !) I
Prosperity of the farmer under Republican adniiuislr.it ion i;;r,
Prosperity permanent under permanent protection 07
Prosperity, return of, under DIngley tariff 101
Prosperity, relative growth by labor and capital 37
Prosperity under Roosevelt's administration 104
Prosperity under present tariff 12
Prosperity vs. adversity in three presidential periods 105
Protection and development of Iron and steel industry 77
Protection and labor 33
Protection as viewed by English Steel Commission 52
Protection as viewed by Moseley Commission 51
Protection, British view of 49
Protection does not increase home prices 43
Protection, effect on steel rail industry 78
Protection, effect on export trade 25
Protection, English arguments for 57
Protection, growth of exports under 26, f>L>
Protection in Germany and effect on wages 63
Protection, natural, destroyed by cheap transportation (5
Protection, permanent, gives permanent prosperity 97
Protection reduced prices of steel rails 43
Protective tariff as revenue producer 30, 59
Protection, value to sheep and wool industry .■ 151
Public buildings, new, erected in United States since 1897 342
Public debt of United States, 1865-1903 131
Public debt and wealth of principal countries 109
Public lands, president Roosevelt on 160
R
Rails, steel, exports below home prices 23
Rails, steel, prices reduced under protection 43
Rails, steel, production, tariff, and prices, 1867-1903 82
Railroads, earnings, passenger, freight carried, etc., 1885-1902. . . . 440
Railroads placed under receivership and sold, 1876 to 1903 112
Railway employees, earnings of, 1896 and 1903 236
Railways In length, business transactions, etc., 1883-1902 4t4
Railway legislation, recent 395
Railway regulations, work of interstate commerce commission 395
Rates of freight on farm products, 1868-1903 146, 147
Raw materials, advance in prices 242
Raw material, importations under Dingley law 42
Raw silk, imports into United States, 1870-1903 440
Receipts and expenditures of United States, 1790-1903 134
Receipts of the Post-Office Department, 1893-1904 306
Receipts of United States Treasury, 1850-1903 437
Receivership, railroads placed under, 1876-1903 112
Reciprocity, Blaine on 45
Reciprocity, commerce with Canada during 522
..
INDEX. XV11
I
Page.
Reciprocity, Democratic 46
Reciprocity, Democratic platform of 1892 47
Reciprocity, Democratic text-book of 1902 on 47
Reciprocity, expenses of United States with 45
Reciprocity, growth of commerce under 46
Reciprocity, Hawaiian Treaty 46
Reciprocity, McKinley on 45
Reciprocity, Republican 45
Reciprocity, treaties under McKinley law 46
Recognition of Panama by foreign governments 274
Record of Republican and Democratic parties on currency 515
Record of two parties on rural free delivery '. 165
Record of two parties on trust legislation 168
Reduction and organization of the army 348
Relative prices of food, 1890-1903 209
Relative value of lands, manufacturing and other sections 148
Retail prices in England and United States 227
Retaliation, tariff, by foreign countries 27
Reports of State Labor Bureau 231
Republican and Democratic record on currency 515
Republican and Democratic record on pension legislation 411
Republican and Democratic states, labor laws in 236-238'
Republican legislation . . . ; 332
Republican congressional committee 548
Republican national committee. J 547
Republican party, some of the things for which it stands 329
Republican party, 50 years of, Hon. John Hay on 456
Republican party, 50 years of, Senator Fairbanks on 464
Republican platform, 1904 485
Republican record on rural free delivery 165
Republican record on trusts 168
Republic of Panama recognized by foreign governments 274
Result of expansion 296
Returns of clearing house in New York and United States 112
Revenue under British tariff 70
Revenue of United States under low and protective tariffs, 1790-1903. 59
Revenues of the Post-Office Department, 1790-1903 370
Revenue production under low and protective tariffs 30, 59
Revision of present tariff 13
"Rich growing richer and poor poorer" 37
River and harbor improvements under United States army 357
Roosevelt's administration, record of 252
Roosevelt, extract from message on Panama 276
Roosevelt, German Americans for 432
Roosevelt's labor record 258
Roosevelt, President, on trusts and corporations 17
Roosevelt on trusts and corporations 171
Roosevelt, prosperity under his administration 104
Roosevelt, speech to notification committee 530
Roosevelt, Theodore, personal history and record 248
Root, Hon. Elihu, speech at Republican National Convention, 1904... 466
Rural free delivery, appropriations of 1904 167
Rural free delivery, record of two parties on 165
Rural free delivery, work of Post-Office Department in 366
Russia, passports and persons visiting 526
Russia, tariff of 7
XVU1 INDEX.
Sai<s abroad beibvi borne prices is. s6
Sales to Asia and Oeeanii -jui
sales to eouotrlei protesting aga'lnsl Dlngley law go
Sau it Ste. Marie Caual, tonnage of vessels, I860 r.ui:; in
Savings bank deposits, 1820-1908 Iu7, ins
Savings bank deposits under hi^li and low tariffs ;;;;
Savings deposits' in various countries 108
Share of iron and steel mfrs. produced by Steel Corporation 06
Share of iron and steel produced by steel corporation 15
Share which manufactures form of imports, 1870-11)03 !.;:;
Shaw, Hon. L. M., on Democratic trust record i:n
BhaWi Hon. L. M., on exports below home prices 18
Sheep and wool Industry, 1878-1900 lift)
Sheep and wool industry of United States 151
Sheep on farms and wool production and importation 154
Shipping of the United States and the world 398
Shipping of the world in 1904, by countries 405
Sickles, Gen. Daniel E. on old age pension order 412
Silk industry of U. S/, 1850 to 1900 92
Silk manufacturing and development under protection 90
Silver and gold produced by principal countries, 1902 524
Silver and gold productions in United States, 1492-1902 520
Silver and gold production of the world, 1493-1902 524
Silver certificates in circulation July 1st, 1904 397
Silver dollars in United States and in circulation, July 1st, 1904 397
Silver plank of Democratic platform 1896-1900 ! 511
Silver, subsidiary in circulation July 1st, 1904 397
South African tariff : 8
South, election laws in 420
Spain, tariff of 7
Spain, tariff of 8
Speech of President Wm. McKinley, at Buffalo 449
Speech of Hon. Elihu Root, at Republican National Convention, 1904. 466
St. Louis-Esopus episode 500
St. Louis platform, rejected gold plank 511
States, bank deposits in each", 1892-96-1903 113
State Department, its work, 1897-1904 334
State Department, its work in the Orient 1 324
State Labor Bureau reports 231
Steel and iron, share produced by steel corporation 15
Steel production of the United States, 1870-1903 439
Steel rails, exports below home prices 23
Steel rail industry, effect of tariff on 78
Steel rails, prices reduced under protection 43
Steel rails, produced in United States, 1870-1903 439
Steel rails, production, tariff and prices, 1867 to 1903 82
Strike of Coal miners, President Roosevelt's action 261
Subsidies and payments, Ocean mail service, England and U. S 407
Subsidiary silver in circulation, July 1st, 1904 397
Sugar production, importation and consumption, 1880-1903 158
Sugar production in the United States 157
Sugar, world's production of, 1880-1903 158
Sugar, world's production of beet and cane sugar, 1840-1903 159
Summarization of earning power in food products, 1890-1903 213
Swank on exports below home prices 25
Sweden, tariff of 7
T
Taft, Hon. Wm. H., on conditions in Philippines 309
Tariff agitation, effect of on manufactures and business 47
Tariff and prices of coal 45
Tariff and prices, English views on 55
Tariff and trusts 13
Tariff and trusts, Hon. W. B. Allison on 195
Tariffs and trust, English views on 55
Tariff discussed 5-65
Tariff does not control prices 119
Tariff, effect on Steel Rail Industry 78
Tariff, Lincoln on 48
Page.
Tariffs of foreign countries 7
Tariff of the United Kingdom 70
Tariffs of the United States and their relation to prosperity 96
Tariffs of the United States, historical 8-12
Tariffs of U. S., 1789 to 1903 . . .. 56
Tariff of 1894, adversity under 100
Tariff relations between the United States and its island territories. . 296
Tariff retaliation by European countries. . 27
Tariff revision 13
Textile industry development under protection .' 88
Textile industry of U. S., 1850 to 1900 92
The army, its work, 1897-1904 348
Theodore Roosevelt's record and personal history.- 248
The Orient, American diplomacy in 324
The Pacific, development of its commerce 290
Things for which the Republican party stands 329
Tin plate industry in United States, English views on 54
Tin plate prices and fall under protection 85
Tin plate prices in United States and United Kingdom 84
Tin plate production in United States and England 36-54
Tin plate productions in United States and United Kingdom 84
Trade of countries commercially adjacent to Philippines 322
Trade relations of United States with its islands 318
Trade with countries protesting against Dingley law 30
Trade with our Island possessions 292
Transportation, low rates destroy natural protection 6
Treasury Department, its work, 1897-1904 340
Treasury receipts of United States, 1850-1903 437
Tropical imports into the United States, by articles, 1870-1903. . . 320-321
Tropical products, growing demand for 292
Tropical requirements of the U. S. supplied by island possessions. .. . 292
Trusts and control of prices 44
Trusts and industrial combinations discussed 168
Trusts and Judge Parker 506
Trust and labor, effect of wages 227
Trusts and prices 15
Trusts and prices of sales abroad 18, 80
Trusts and tariff 13
Trusts and tariff, Hon. W. B. Allison, on 195
Trusts and tariff, English views on •. . . . 55
Trusts, attitude of the two great parties on 179
Trusts,' can they control markets and prices 15
"Trust controlled" articles reduced in prices 119
Trusts, do they control prices? 118
Trusts, English attitude toward 13
Trusts in England 13
Trusts in Europe 180
Trusts in Europe, Industrial Commission on 14
Trusts in the United Kingdom 181
Trusts. Judge Grosscup on 16
Trust made articles, decline in prices 118
Trust officials and Parker candidacy 198
Trusts, President Roosevelt on 17
Trusts, record of Cleveland's administration on 191
Trusts, share of manufactures produced by them 15
Trusts, wages paid before and after consolidation 230
Trade with the island territories of the United States .' 296
Trusts, work of the Department of Justice 170, 172
u
United Kingdom, growth of wealth and manufactures 38
United Kingdom, imports of manufactures 8
United Kingdom, imports and exports of manufactures, 1860 to 1902 40
United Kingdom, labor conditions in 34
United Kingdom tariff and revenue 70
United Kingdom trade with its colonies, 1869-1902 321
United Kingdom, trusts in 181
United Kingdom, trusts in 13
United States and England, retail prices in 227
United States and England, wages in cities 226
United States and England, wages of labor in 222
XX INDEX.
United States, business success, views of Bismarck, and Mulhall on.. 95
United States, coriunerce with Canada 522
United States, conditions in, compared with other countries 122
United States, debt of, 1850-1003 437
United States, expenditure! compared with other countries 115
United States, exports of manufactures from, 1850-1004 438
United States government expenditures, 1850-1903 437
United States, growth of wealth and manufactures 88
United States Imports and exports, 1850-1904 438
United States notes in circulation July 1st, 1904 397
United States progress in its material Industries, 1850-1903 437
United States, silver and gold productions, 1492-1902 520
United States Steel Corporation, its share in steel output of U. S. .. 15
United States steel corporation, share of iron and steel produced by. . . 65
United States tariffs, effect on export trade 26, 62
United States tariff history 8-12
United States Treasury receipts, 1850-1903 437
United States, United Kingdom and Germany, coal, consumption . . 61
V
Value of the factory to the farmer 148
Value of home market 32
Value of manufacturing Interest to farmer 31
Value of principal farm crops, 1895 to 1903 114
Value of protection to sheep and wool industry 151
Vessels of U. S. in foreign and domestic trade, 1860-1903 405
Victories of our Eastern diplomacy 324
Vote for representatives in Congress, 1900-1902 423
Vote for President, 1856-1900 425
Vote for President by states in 1900 424
w
Wage earners and losses under low tariff 100
Wage earners employed In manufacturing, 1850 to 1900 67
Wage increase and decrease, 1890-1903 204
Wages, abroad and at home 63
Wages and cost of living, 1896-1903 208
Wages, effect of trusts on 227
Wages in cities of the United States and England 226
Wages in Germany, affected by protection 63
Wages in United States and England 36
Wages, labor and prices , 200
Wages of labor in the United States and England 222
Wages of various occupations, 1890-1903 200-203
Wages paid in tin plate manufacturing, U. S. and United Kingdom.. 86
Wages paid by trusts before and after consolidation 230
War Department, its work, 1897-1904 347
Wealth and debt of leading nations 124
Wealth and public indebtedness of principal countries 109
Wealth, growth of, under protection 98
Wealth of United States, growth of 37, 38
Wealth, population area, etc., of United States, 1800-1903 442
Western coast brought nearer European markets by canals 296
Wheat, average value per bushel, 1870-1903 441
Wheat, corn and oats, production and farm prices, 1885 to 1903.... 60
Wheat crop of the United States and the world, 1877, 1903 141
Wheat production, export and consumption of in U. S., 1877-1903.. 141
Wilson law, imports of raw material under 42
Wool consumption in United States, per capita 133
Wool industry of United States, 1850 to 1900 92
Wool . manufacturing development under protection 89
Wool, production, importation and consumption 154
Wool production of the United States, 1850-1903 440
Work of the 58th Congress discussed 427
Workingmen and capital in United States, English views on 53
Workingmen, wages in United States and United Kingdom 36
World's production of sugar, 1880-1903 158
World's production of beet and cane sugar, 1840-1903 159
World's shipping by countries and classes of vessels, 1904 405
TABLES. XXI
TABLES.
Page. Exports to the countries protesting against the Dingley law 30
National wealth of the United Kingdom, Germany and the United
States, 1870 to 1903 38
i Share which manufactures form of the imports and exports of
Great Britain, 1860 to 1902 40
Exports of manufactures from Great Britain and the United States
respectively, 1860 to 1902 41
Imports of manufactures into Great Britain and the United States
respectively, 1860 to 1902 41
Tin plate, exports from Great Britain, imports of the United States
and protection in the United States, 1889 to 1901 54
Revenue, surplus or deficit under low and protective tariffs respec- tively, 1790 to 1903 59
Wheat, corn and oats production and farm value of, 1885 to 1903... 60
Coal, production and consumption of in Great Britain, Germany and
the United States, 1860 to 1902 61
Trade balances under low and protective tariffs, respectively, 1790
to 1903 62
Relative^ increase in employment in leading industries in the United
Kingdom and United States, 1881 to 1901 64
Share of the iron and steel manufactures produced by the United
States Steel Corporation 65
Boots and shoes, prices of, 1897 to 1903 66
Manufacturers of the United States, • value of products, capital In- vested and persons employed, 1850 to 1900 67
Imports and exports and excess of imports or exports in each year from 1790 to 1903, grouped to show periods of low and protective tariffs respectively 68
Revenue and expenditure and excess of revenue or expenditure, from 1790 to 1904, grouped to show periods of low and protective tariffs respectively 69
British revenue and source from which obtained 70
Tariffs of Great Britain 71
Steel rails, production, prices and rates of duty, 1867 to 1903 82
Iron ore, prices, 1893 to 1903 83
Tin plate exports from Great Britain, imports into the United
States, manufactures in the United States, prices .84, 86
Cotton manufacturing in the United States, capital, wages, etc.,
1870 to 1900 89
Woollen, manufacturing In the United States, capital, wages, etc.,
1870 to 1900 90
Silk manufacturing in the United States, capital, wages, etc., 1870
to 1900 90
Textile industry of the United States, capital, wages, etc., 1850
to 1900 92
Cotton products, manufacturing Imports and exports, 1884 to 1903. . 92
Cotton production and prices and prices of manufactures of cot- ton, 1880 to 1903 93
Conditions during administration of Cleveland, McKinley and Roose- velt 105
Savings bank deposits in the United States, 1820 to 1903 107
Savings bank deposits by states 108
Savings deposits and number of depositors In principal countries
of the world 108
XX11 TABLES.
Paqh. Bank deposits, (all classes of banks,) In the United States, 1875
to 1903 109
Wealth, debt, revenue and population of leading countries of the
world 109
National banks of the United States, 1863 to 1903 f. no
Money in circulation in the United States by classes, and per capita,
1800 to 1903 Ill
Clearing house returns, 1880 to 1903 112
Railroads placed in the hands of receivers and sold under fore- closures, 1876 to 1903 112
Bank deposits in each state in 1892, 1896, and 1903 113
Business failures in the United States, number and liabilities, 1880
to. 1903 114
Farm products, value, 1897 and 1904 114
Farm animals, average value per head, 1897, and 1904 114
Government expenditures and expenditures per capita in leading
countries of the world 115
Conditions in the United States in 1892, 1896, 1900 and 1903 116
Prices of imported and domestic articles in March 1903 and
March 1904 118
Prices of certain "trust controlled" articles, 1896 to 1904 119
National bank statistics, 1904 compared with 1893 121
Conditions in the United States compared with those in Great Britain. 122
Conditions in the United States compared with those of the principal
countries of the world 122
Growth of commerce of the United States compared with that of
the United Kingdom and Germany 123
Commerce of principal countries of the world, 1830 to 1903 123
Expenditures and per capita expenditures of the leading countries
of the world. 124
Wealth and indebtedness of the leading countries of the world 124
Manufactures of the leading countries of the world, value of 124
Business and industrial record, 1893, 1896 125
Imports and exports of the United States, 1790 to 1903 128
Imports into the United States by great groups of articles, 1850
to 1903 . . 129
Exports from the United States by great groups of articles, 1850
to 1903 T 130
Imports into the United States from each Grand Division, 1850
to 1903 131
Exports from the United States to each Grand Division) 1850
to 1903 132
Imports for consumption arranged by groups, 1870 to 1903 133
Merchandise imported and exported and retained for consumption,
1871 to 1903 133
Receipts and expenditures of the United States, 1790 to 1903 134
Debt of the United States, 1865 to 1903, analysis of 135
Farm products exported under McKinley, Wilson and Dingley laws.. 139
Principal farm crops in the United States, value of, 1866 to 1903 139
Farm animals, number and value, by groups, 1875 to 1904 140
Wheat production, consumption and exportation, 1877 to 1903 141
Farm animals, value of In 1892, 1897, 1900 and 1904 141
Farm prices of principal products by states, 1892 to 1903 142, 143
Prices of articles of farm production and consumption, 1877
to 1903 144, 145
Freight rates on grain from Chicago to New York, 1868 to 1903... 146 Freight rates on live stock and meats, 1880 to 1903 146
TABLES. XX111
Page. Freight rates on flour and grain from Chicago to Europe, 1894 to 1903. 147
Freight rates by rail and canal respectively, from Chicago to Buffalo
and New York, 1870 to 1903 147
Freight rates on canned goods, Pacific coast to New York, 1870 to 1903 147 Value of the factory to the Farmer 150
Manufactures of the United States, 1850 to 1900, value of products,
also value in 1900 by groups 150
Sheep, number and value of, under various tariffs 152
Wool products, imports, woollen goods imported, price, etc., 1875
to 1903 154
Sugar production of the world, 1903-4 157
Sugar, production, importation and consumption of the United States
and prices per pound, 1880 to 1903 158
Sugar production of the world, beet and cane, respectively, 1840
to 1903 159
Irrigation, statistics of the United States, number of farms and
acres irrigated 163
Wages per hour, 1890-1903 200, 203
Increase in average wages per hour, 1890-1903 204
Per cent of increase or decrease in hours of work, 1890-1903 205
Employees, hours of labor and wages in certain countries 207
Retail prices of food by articles, 1890-1903 209
Retail prices of all foods, 1890-1903 210
Summarization of employees, wages, and prices, 1890-1903 213
Relative advance in prices of farm products and other commodities. . 217
Relative advance in prices of related commodities 218
Purchasing power of farm products in articles of common use 219
Wages in the United States and Great Britain 223-224
Increase in prices in England, 1896-1902 225
Wages in cities of United States and England 226
Retail prices in the United States and England 227
Wages paid by trusts before and after combination 230
Out of work benefits paid in certain years, 231
State Labor Bureau reports 231-35
Compensations paid to railway employees, 1896-1903 ..'. 236
Labor laws in Republican and Democratic states 237 to 238
Import prices of leading articles used in manufacturing 1897 to 1903. . 244
Prices, annual average in 1880-90-1900 and 1903, 245
Panama Republic dates of recognition by principal countries 274
Distances between leading ports, via Panama and Suez Canals 283
Exports to Asia and Oceania, 1896 to 1903 294
Exports to the Orient, principal articles 1890 and 1903 294
Commerce with Oceania 1893 to 1903 295
Distances from Western coast cities to leading ports via Panama and
Suez Canals 298
Expenditures under military operations in the Philippines, Hawaii,
commerce of 309
Hawaiian Islands, commerce of 312
Sugar exported from Hawaiian Islands, 1896 to 1903 312
Importation of the Philippine Island from principal countries, 1897
to 1903 317
Commerce of Porto Rico and its commerce with the United States,
1893 to 1903 318
Commerce between the United States and its non-contiguous ter- ritories 319
xxiv TABLES.
T
Page. Tropical productions imported by principal articles, 1870 to 1903 320-21
Commerce of the United Kingdom with Its colonies, 1869 to 1902. . 321
Commerce of countries commercially adjacent )<> th€ Philippine
Islands, 1902 "•«
National banks established In the United States, March 14, 1900, to April 30th, 1904 3-
Postal receipts, 1893 to 1903
Postal statistics of the United States, 1790 to 1903 370
Naval expenditures of the principal countries of the world 378
Money In circulation in the United States July 1, 1904 397
American Merchant Marine, 1892 to 1903 398
Shipping subsldities paid by principal countries of the world 401
World's production of pig Iron, 1790 to 1903 404
American merchant marine, 18G0-1903 405
Merchant marine of the world, 1903 405
Foreign carrying trade of the United States, 1860-1903 406
Subsidies and payments for ocean mail service, 1848-1903 407
Pensions and pensioners of the United States 408-10
Colored officers, clerks and employees in the government service. . 45
Vote for representatives in Copgress, 1900-1902 423
Vote for President by states, 1900 424
Popular and electoral vote for President, 1856-1900 425
Conditions in McKinley and Bryan states of 1900
Budgets of principal countries of the world, 1880-1902 435
Military and naval expenditures of principal countries 435
Progress of the United States in manufacturing, production, etc.,
1850-1903 437-440
Progress of United States in population, area, production, business
conditions, etc., 1800, 1903 441-442
Railways in United States, mileage, earnings, freight and passengers
carried, etc 444
Financial and commercial statistics of principal countries 445'
Iron and steel industry of the United States, capital, wages, and
labor employed 446
Iron and steel production of the United States, growth of 447
Railway employes of the United States, 1893 to 1903 448
Commerce of the gold standard and silver standard countries of the
world 519
Gold and silver product of the United States, 1792-1902 520
Imports and exports of gold into and from the United States,
1825-1903 521
Commerce of the United States with Canada, 1850-1903 522
Coinage of the United States' mints, 1846-1903 523
Gold production of the world, 1492-1902 524
Stocks of money in 13 principal countries 525
Electoral vote cast by each state in each election, 1864 to 1900 549
Electoral vote of each state and number necessary to choice in 1904. . 549 ■
"FOUR GREAT FACTS/
"Four great facts seem to justify vhe Republican party in ask- ing the voters of the United States to continue it in control o>" tne affairs of the Government. First, th3 pJ-p.riptness • v,*i-x , vv].'h«h ,it has fulfilled the pledges of its platform upon which it success- fully appealed to the people in 1896; second, the prosperity which has come to all classes of our citizens with, and as a resuit of, the fulfillment of those pledges; third, the evidence which that pros- perity furnishes of the fallacy of the principles offered by the opposing parties in 1896, and still supported by them; and, fourth, the advantages to our country, our commerce, and our people in the extension of area, commerce, and international influence which have unexpectedly come as an incident of the fulfillment of one of the important pledges of the platform of 1896, and with it the opportunity for benefiting the people of the territory affected." — From the Republican Campaign Text-Book of 1900.
The above quotation from the opening pages of the Republican Campaign Text Book of 1900 applies with equal force to condi- tions in the present campaign. The four great facts which justi- fied the party in asking the support of the public in 1900 were: First, that its pledges of 1896 had been redeemed; second, that prosperity had come as a result; third, that developments since 1896 had shown the fallacy of the principles upon which the Democracy then appealed for public support ; and, fourth, the con- ditions which had come to other parts of the world and their people as a result of promises fulfilled by the Republican party in the United States. These assertions made in the Text Book of 1900 have been fully justified by the added experiences of another four years. The pledges of 1896 and those made in 1900 have been redeemed The Protective Tariff has been restored; the Gold Standard made permanent ; Cuba freed and given independence ; the Panama Canal assured under the sole ownership and control of the United States; a Department of Commerce and Labor established ; Rural Free Delivery given to millions of the agricul- tural community ; the laws for the proper regulation of trusts and great corporations strengthened and enforced; prosperity estab- lished ; commerce developed ; labor protected and given ample em- ployment and reward; intelligence, prosperity, and good** govern- ment established in distant islands; and the flag of the United States made the emblem of honor in every part of the world.
All of these great accomplishments have been the work of the Republican party. In each of them it has met the discouragement, the opposition, and the hostilities of the Democracy. The Pro- tective Tariff was fought at every step, and is to-day denounced by the platform of the Democrats as a "robbery." The act estab- lishing the Gold Standard was opposed and the Democratic vote cast almost solidly against it, and that party in its convention and platform of 1904 deliberately refused to retract in the slightest degree its advocacy of the free and unlimited coinage of silver. In the war for the freedom of Cuba, the work of the Republicans was met with harsh criticism and discouragements at every step. In the efforts to establish peace and good government in the newly acquired territory, each step met with opposition and false charges and the demand that .the territory and its millions of people be abandoned to internal strife or control by a mon- archial government. The acquirement of the right to construct the Panama Canal was met with opposition and obstruction at
1
'J i 01 i: OBI a r PACTS.
every point The enforcement of law against trusts and other i prorations aw denounced as ineffective ana designed to
deoelte .the public. The establishment of rural free delivery was discouraged Tho u\)h '"'i<l prosperity which followed the restora- tion u\' Uft protective tariff was decried and denounced as ficti- tious and temporary, and an attempt made to sow the seeds of dissatisfaction and discord among: the people by complaints of the higher cost of food which eanie as the natural results of the in- creased demand accompanying general prosperity and high wages. It is upon this additional evidence of the past four years, evi- dence that the Republican party is the party of progress, and the Democracy the party of inaction, retardment, and fault-finding, that the Republican party again confidently appeals for public support in the Presidential and Congressional elections of 1904.
"THE POLICY OF OPPOSITION."
Mr. Littletou's Real View of Democratic Pollcien and ProHpeet*.
[Extract from speech before New York Southern Society, Feb. 22, 1904, by Hon. Martin W. Littleton, sponsor for Judge Parker at Democratic National Convention, July 8th, 1904.]
"While the war between the United States was1 in Progress it (the Democratic party) attempted to swim against the tide on a policy that declared the war a failure, and met that fate which all parties have met that attempt it.
"The Democratic party sought to destroy the evil of some mon- opolies by assuming an antagonistic attitude to all large corporate concerns just at a time when the business of the country was being conducted almost wholly by corporate agency, and it went down under the influence of a fact.
"It attempted to arrest the course of events in the Spanish- American war just at a time when our fleets were fighting and or. armies marching, and it went down again under the influence of a fact.
'It endeavored to undo events which had taken place in the Philippines and to reverse an accomplished thing, and it went down under the weight of a fact.
"It is now seeking to delay the progress of a great commercial enterprise on the Isthmus of Panama by opposing the treaty with the new republic just at a time when the nation, and especially the South, needs and demands' such an enterprise, and it will again go down under the influence of a fact, if it persists.
"It sought to change the money standard of the country from gold to silver just at a time when the powerful nations of the earth were holding or changing to gold, and it went down under the in- fluence of another fact.
"The policy of opposition is not the true tradition of the party. It held for nearly fifty years the affirmative place in the politics of the country. It stood upon aggressive grounds, it recognized events, it was not a doctrinaire, it held to the facts. It was until the war a constructive party of conservative principles, and under the misfortune of slavery it paused to defend that institution, and allowed the Republicans to take the ground from it, and since that time it has' thought it wise to oppose its own policies, if they chanced to be espoused by the Republicans.
"It does not need to return to ante-bellum policies', but it does need to go back to the ante-bellum method of dealing with events. It must understand that if Jefferson said he was opposed to expansion, and then proceeded to expand, what he did is* the thing, and not what he said. It must understand that if he said he was opposed to a Navy, and then found it necessary to establish a Navy, what he did is the thing, and not what he said. It must understand that if Madison or Monroe said that they were opposed to national banks, but found they were necessary to establish a sound financial system, and did establish them, what they did is the thing, and not what they said. It must understand that if Jefferson, Madison, Monroe. Calhoun, Jackson, and Benton all in- sisted that the Constitution should be strictly construed, but found on actual experiment that it was' best to give it a liberal con- struction, and did so, what they did is the thing, and not what they said."
INTRODUCTION.
INTRODUCTION.
The purpose of this book is to furnish in concise and con- venient form for reference such information as is likely to be re- quired by speakers, writers and others participating in the dis- cussions of the Presidential campaign of 1904. However well ad- vised the speaker or writer may be upon the topics of the cam- paign, he will require for reference many facts and figures which can only be had by consulting numerous publications, many of them so bulky as to be practicable for desk use only. This work is intended to present in concise and portable form the more im- portant of these facts and figures, so condensed and arranged as to be convenient for ready reference in the field, on the stump, upon the train, or wherever they may be desired. The arrange- ment of the book will be apparent upon an examination of the table of contents which occupies the opening page. It will be seen that each of the subjects likely to require discussion in the cam- paign is treated under its proper title and that these discussions of the various subjects are followed by such statistical statements as may be required for further reference, while a copious index which follows the table of contents and occupies the opening pages of the book will, it is hoped, enable those utilizing the volume readily to find the detailed facts which they may require for instant reference. Care has been exercised so to arrange the mat- ter with headings and subheadings as to add to the convenience of the volume as a reference work, while a line at the top of each page indicates the general subject discussed upon the page. The statistical and historical statements presented in the discussions have been carefully verified and the authority, in the more impor- tant statements, cited, while the tables are in most cases from official publications of the Government or from accepted authori- ties *and duly accredited, thus enabling those utilizing them to quote their authority for the figures presented.
While a text book which must be a pocket companion in the field is necessarily limited in size, it has been deemed proper to present as fully as practicable in a book of this character infor- mation upon subjects likely to receive especial attention, and the space allotted to the chapters on Tariff, Trusts, Wages and Prices, the Philippines, and the Work of the Army has been adjusted to the possible requirements of those desiring information upon these subjects. Much unfounded criticism has been offered by the Dem- ocrats with reference to the enlargement of the army and the expenditures under its operations, and it has therefore been deemed proper to present somewhat in detail information regard- ing the work which it has so successfully accomplished both in war and in the development of conditions at home vital to the general requirements of a great nation and to the fact that the great expenditures under its operations have been made with the utmost fidelity. The criticisms of the work of the party in regard to the Philippines, coming from a party which has already the record of having hauled down the American flag in islands of the Pacific suggest the importance of a full presentation of the splen- did work done in those islands and the improved conditions there which have resulted. The constant but unfounded assertions that cost of living has advanced more than wages justifies the detailed discussion of this subject which will be found in the chapter en- titled "Labor, Wages, and Prices," and especial attention is called to the information there presented which fully disproves these assertions. This information is especially valuable by reason of its official character, being the work of the Bureau of Labor, whose accuracy and absolute fairness have never been called in question, and also by reason of the further fact that it brings the study of the relative advance in wages and cost of living down to the very latest date, covering fully the year 1903 with reference to retail prices — the prices which directly affect the consumer and wage-earner. These facts are the result of studies given to the public by the Bureau of Labor in its July, 1904, Bulletin, and therefore the very latest, most complete, and absolutely reliable information upon this vital topic, and will fully answer the asser- tions of the Democracy upon this subject,
4, INTRODUCTION.
While many of the facts, historical and statistical, here pre- sented are, In general terms at least, familiar to a large number
of those who will have occasion to utilize this work, their presen- tation in convenient form for reference is deemed proper In view of the tact that of the 20 millions of potential voters in t lie United States in I'.iol a Large number have never before had opportunity to participate in a Presidential election and-i:hereforo require spe- cial Information of a fundamental Character, and seems to justify the inclusion in this volume of many statements generally familiar to those who have had longer experience in national affairs.
Two other publications, intended for the convenience and use of speakers, have been issued and should be consulted by those <!«■ siring thoroughly to prepare themselves for the discussions of the campaign.
One of these volumes, entitled "Pages from the Congressional Record," contains the more important speeches delivered in Con- gress upon the subjects likely to be discussed in the present cam- paign, including the Tariff, Trusts, Labor, Reciprocity, the Treaty with Cuba, the Panama Canal, the Philippines, the Relations with the Orient, the Record of the Republican Party and the Present Administration, the Post-Office Department Investigation, Rural Free Delivery, Government Expenditures, the Merchant Marine, the Navy, the Old Age Pension Order, and other subjects of this character. These speeches are in many cases the result of much careful study of the subjects discussed, studies made by men thoroughly familiar with national affairs and able to obtain the best and latest information bearing upon the subjects under con- sideration, and should be of great assistance to those desiring thoroughly to acquaint themselves with every feature of the great subjects to be considered in the present campaign. Not only do they present the views and arguments of the speakers upon the subjects to which these discussions are respectively devoted, but, since they are verbatim reports of the Congressional proceedings, they include in many -eases the arguments of the opposition in- jected into the speech in the form of questions and answered by the speaker in the running debate, which frequently form an important and instructive feature of the speech itself. This docu- ment, which contains several hundred pages of the size of the Congressional Record, while too bulky for other than desk use, will prove valuable to those desiring to have in a single volume the latest and best discussions upon these rvital subjects by men who have studied them under exceptionally advantageous circum- stances.
Another volume, entitled "Extracts from the Congressional Record," contains brief extracts from speeches delivered in Con- gress upon subjects likely to be discussed in the present campaign. This work was compiled with great care from speeches and ad- dresses by leading members of the party, not only in the recent Congress but in earlier sessions of that body, and contains the best utterances of the party leaders during its entire history upon the great subjects likely to be considered in this campaign. Protection, Reciprocity, Trusts, Prices, Republican Prosperity, Democratic Ad- versity, the Workingman, the Farmer, the Soldier, the Colored Voter, Rural Free Delivery, the Post-Office Investigation, Panama, Cuba, the Philippines and the Pacific, Shipping, the Navy, and the Record of President Roosevelt are discussed in these concise extracts from the public utterances of party leaders past and present. The volume containing these extracts is of such com- pact size and form that it may readily be used as a pocket com- panion, in the field or on the train, and will prove a valuable sup- plementary work in connection with this text book.
Both of the above volumes, "Pages from the Congressional Record" and "Extracts from the Congressional Record," may be obtained upon application to the National Committee.
THE TARIFF.
THE TARIFF.
"We denounce Protection as a robbery."— Democratic Plat form , 1904.
"Protection which guards and develops our industries is a cardinal policy of the .Republican party."— Republican Platform, 1904.
The question as to whether tariffs should be levied solely for the purpose of producing revenue or should also be so adjusted as to protect domestic industries from undue foreign competition has been a controverted one for many years — through generations in fact.
The primary idea in levying a tax upon merchandise entering a community or State was to require persons from abroad trading in that community to bear their proper share in the public ex- penditures. The tranquillity and order of the community, and hence its commercial possibilities, were maintained by the government, for whose support the local producers and merchants were taxed, and it was held that merchants from abroad desiring to enjoy the privilege of trading in that com- munity should contribute their proper share to the maintenance of the government, which assured commercial privileges,*and that they should contribute a relatively larger percentage of the value of the merchandise sold than was required of the local dealer, because the foreign merchant carried away with him his profits while the domestic producer or dealer expended his profits in the home community in the support of his family or in the employ- ment of other members of the community. Hence the tariff — a tax upon merchandise entering a community from abroad.
While it is true that the actual payment of tariff duties is, under modern methods, made by the residents of the community who import the merchandise or act as local agents for the foreign producer, it is also true that at least a part of this is compensated for by the foreign producer or dealer through a reduction in his prices as an offset to the duty which the importer must pay. The claim that the foreign producer or merchant pays at least a part of the tariff levied on imported goods is now admitted in free- trade England, whose manufacturers and merchants have had long practical experience as sellers to high tariff countries and are now urging the adoption of a protective tariff system for their own country.
ALL NATIONS HAVE TARIFFS.
All nations raise a large share of their revenue by a tariff. The view which many have held that "free-trade" nations, such as the United Kingdom, have no tariff is an erroneous one. The total amount collected from tariff duties on merchandise entering the United Kingdom is more than 150 million dollars per annum — a larger sum per capita of her population than the per capita of tariff collected in the United States. See discussion of British tariff, page 70.
This sum, however, is collected from duties levied upon non- competing articles, such as coffee, tea, tobacco, etc. This illus- trates the difference between the methods of the free-trade and the protective-tariff schools. Under methods of the free-trade school tariff duties are placed upon articles of general consump- tion with the sole purpose of raising revenue, which articles must be obtained solely from abroad, while under protective tariffs they are levied upon articles of a class which can be produced at home and which if brought in in unlimited quantities and without pay- ment of tariff taxes would place the cheap labor of foreign coun- tries in direct competition with home labor.
The question upon which men have divided1 with reference to tariff, then, is not as to the wisdom of collecting funds through tariff taxation, but whether the tariff shall be so adjusted as to protect home producers and workmen from undue competition by low-priced labor abroad, as well as to encourage the establish- ment of new industries through similar protection.
6 THE TABirr.
DANGER FROM OUTSIDE (COMPETITION CONSTANTLY INCREASING.
Originally the danger to domestic industries from foreign com- petition was much less than at the present time. Merchandise brought into any country from abroad must first bear the cost of transportation, and in times when the cost of transportation was great, and when goods were necessarily transported by animal power and by sailing vessels only, this high cost of carriage was of itself a protection to the domestic producer in any country. True, the producer of merchandise just across the border line of a country had an enormous advantage over the producer a thousand or five thousand miles distant, but as only a small proportion of the pro- ducers were located near to the border line such coun- tries did not find it necessary to establish high tariffs to protect their own producers or manufacturers. The distance which foreign goods must be carried and the cost of transportation over that distance alone serve to create a protective wall for the domestic producer. In late years those conditions of distance and transportation have absolutely changed. The railroad and the modern steamship have reduced the cost of transportation compared with that in the early part or even in the middle of the century just ended; while the telegraph and the telephone have annihilated distance and time. Merchan- dise from the interior of Europe, ordered by telephone, telegraph, and cable, transported from its place of production by trolley road, canalized, rivers, or boats operated by steam or electricity, or by railway to the Atlantic, and thence by great steamships, built to carry hundreds of carloads at a single voyage, across the ocean, and again transported to the interior of the United States by the cheapest land transportation ever known to man, can be placed at the door of the consumer in the Mississippi Valley for a very small percentage of the cost of transporting the same at the middle of the last century. As a result the pro- tection which distance and the cost of transportation af- forded to the local producer has disappeared, and without a pro- tective tariff, established by the Government, he has as his direct competitor the low-priced labor of any and every part of the world. The cheap labor of the densely populated countries of Europe, the 140 million low-priced workers of Russia, the 300 million people of India, whose average wage is» but a few cents per day, and the 400 million workers of China are to-day as much the competitors of the workman of the United States as though they were located but just across the border. Modern methods of transportation and communication have brought these great masses of producers to our very doors, and without the protection which the tariff affords would place that cheap labor in as close competi- tion with our own as it would have been a half century ago if located but a hundred miles away.
DESTRUCTION OF NATURAL PROTECTION.
As an example of the reduction in cost of transportation may be cited the fact that the annual average freight rate on wheat from Chicago to Liverpool, by the cheapest method of trans- portation, in 1873 was 40 cents per bushel and in 1903 8 cents per bushel, or but one-fifth that of only 30 years earlier. Comparing conditions now with those of the early part of the last century- the reduction is still greater, and the cost of transportation at the present time may safely be said to be less than one-tenth of that then existing. An illustration of the reduction in cost of transportation througli modern methods is found in the fact that the census of 1880 showed that the railways could transport a ton of wheat for a given distance as cheaply as a single bushel could be transported the same distance by horse power, and railway rates have fallen practically one-half since that time. That high authority the Encyclopedia Britannica states in its 1903 edition that the me- chanic in Liverpool may now pay with one day's wages the entire cost of transporting a year's supply of oread and meat for one man from Chicago to that city.
These facts illustrate how completely, modern methods have de- stroyed the protection Which the local producer formerly had against foreign competitors, and explain the reason why modern governments have found it necessary, one by one, to adopt the pro-
THE TARIFF. 7
tective system, until now the most ardent and only remaining sup- porter of the nonprotective system, the United Kingdom, is seri- ously discussing the adoption of a protective tariff. This gradual destruction of the natural protection formerly afforded by distance and cost of transportation accounts for the fact that it has been found, necessary to maintain the protective tariff on the various industries as they have developed, and that this necessity for maintaining protection for those industries has meantime been recognized by all other leading manufacturing countries of the world whose industries were developed even before those of the United States, except in the case of the United Kingdom, whose people are now clamoring for a return to protection of their long established domestic industries. This reduction in cost of trans- portation is indeed one of the chief causes of the steady movement toward protection which has characterized the history of the world during the last half century. The fact that, with improved methods of transportation and a narrowing of distances and cheap- ening of cost of transportation, the whole world has become the next-door neighbor of each community has compelled that com- munity to establish tariff duties of a character which would reduce the competition offered by the cheap labor of those communities against which distance no longer affords protection.
Practically all of the 500,000 miles of railway and 16 million tons of steamship tonnage with which the world is now supplied have been created since the middle of last century; the world's international commerce has quadrupled while the world's popula- tion was increasing but 50 per cent, and during that very period the nations of the world have one by one found it necessary to establish tariff protection to take the place of that protection which distance and high cost of transportation formerly afforded.
TARIFFS OF OTHER COUNTRIES.
France, which adopted a protective system in the early part of the nineteenth century, experimented briefly with free trade between I860 and 1880, but promptly returned to the protective system, which she has maintained ever since that time with great pros- perity to her people. Germany experimented with free trade be- tween 1868 and 1878 by a reduction of the tariff schedules of the Zollverein, but gladly returned to protection in 1879 and 1881, and since that time the development of German industries and the progress and prosperity of the nation and its people have com- manded the attention and admiration of the whole world. Russia had a protective tariff system in the early years of the last century which she abandoned in 1819, but after ex- periments in the line of free trade gradually returned to the protective system, and under it has developed in recent years manufacturing industries of great magnitude. Austria- Hungary experimented between 1853 and 1882 with a series of comparatively low tariffs, but in 1882 restored thoroughly protec- tive duties and has further increased them since that time, develop- ing a great manufacturing system and prosperity far greater than that of earlier years. Italy had low tariffs prior to 1870, but began about that time a system of protection, adding articles from time to time to the tariff schedule and making her tariff system a thoroughly protective one, resulting in a rapid development in re- cent years of her manufacturing industries and in generally im- proved conditions. Belgium adopted a protective tariff system in 1844, and under it her manufacturing industry has become of greater importance in proportion to population than that of almost any other European country. Netherlands adopted the pro- tective system in 1845, abandoning it in 1862, but has now taken a step toward a return to protection, a tariff measure increasing the rates of duty on manufactured articles having been recently sent by the Government to the legislative body with a recommenda- tion for its adoption. Sweden and Norway have, after experi- ments with low tariffs, adopted a protective system which is de- scribed by Curtiss as "perhaps on the whole more protective than that of any other European country," the tariff act of 1892 having been termed the "McKinley Bill of Sweden." Spain and Portugal experimented with free trade from 1859 to 1882, unsuccessfully, and have since those experiments materially increased their tariff rates with a strong protective tendency. In other parts
8 THE TARIFF.
of tho world protection is also gaining steadily. The prin- cipal British colonies Canada, South Africa. Australia, and New Zealand— have adopted protective tariff systems. India lias recently Increased her tariff rates. Japan a couple of years ago adopted a new tariff which increased and in some cases doubled the raics of <luty, especially those on manufactured articles.
BRITISH REVOLT AGAINST FREE TRADE.
In the United Kingdom, which has been pointed out by free traders as a marked example of the success of their system, lead- ing statesmen are now urging the abandonment of that system and a return to protection; and are supporting their proposition by statements showing that the export trade of the protected coun- tries has grown much more rapidly than that of free-trade Eng- land, and that in the absence of protection against those countries English manufacturers and workingmen are being deprived of their home markets through large importation of manufactures from other countries. The official reports of the British Govern- ment show that the imports of manufactured goods into the United Kingdom increased 71 per cent between 1880 and 1901, while into the protected country of Germany the increase was only 36 per cent, into France 28 per cent, and into the United States 20 per cent in the same period. In exports of manufac- tured goods the British official figures show that the United King- dom increased only 12 per cent from 1880 to 1901 ; France, 22 per cent ; Germany, 73 per cent, and the United States 300 per cent in the same period. It is because of stubborn facts such as these that the United Kingdom, which has stood out in favor of free trade while all the rest of the world is abandoning it, is now pro- posing to adopt protection. For British tariff see page 70.
Tariffs of the United States.
The question of raising revenues was one of the chief motives in the formation of the national constitution. The different states or colonies under the confederation were levying duties either for revenue or for the protection of their manufactures in competition with other colonies or states, and thus conflicts arose and it seemed necessary to have uniformity and also provide a certain and effective way for raising revenue to carry on the operations of the general government. There was a prejudice against levying taxes upon property in the colonies for this purpose, therefore it was in the minds of those who framed the constitution that the principal source of revenue would be found in the levying of duties upon foreign imports, so that one of the compromises of the constitution provided that direct taxes should be levied upon the basis of population, and not upon the basis of property. It was also then generally believed that the im- position of duties upon imports would gradually stimulate and develop manufacturing industries in our own country. So that under the constitution the power given to Congress to levy duties on imports was a plenary one, and not subject to limita- tion either as to rates of duty or as to the articles upon which duties should be levied. It was expected that the revenue for national purposes would be chiefly derived from tariff duties, and although there was a difference of opinion as to the rates of duty, the general purpose of a tariff lawT was distinctly stated in the first tariff act under the constitution in 1789, which purpose was declared as follows : "Whereas, it is necessary for the sup- port of government, for the discharge of the debts of the United States and the encouragement and protection of manufactures that duties be levied on goods, wares, and merchandise imported, etc., etc.," thus showing in the beginning the general view as respects this subject. This view was the generally accepted one for a considerable time, but later, owing to a diversity of interests as between the several states and to the partial localization of manufactures and the rapid development of the growth of cotton, it was urged that the impositions of such a tariff worked in- jury to one part of the country for the benefit of another, there- fore, the question was raised whether a tariff should be raised solely for the purpose of raising revenue or should also be so adjusted as to protect domestic industries from undue foreign competition. The agitation of this question was stimulated by the agitation of free trade in Great Britain, having for its chief Durnose the reneal of the corn laws.
THE TABIFF. 9
Thus from the beginning the obtaining of revenue and the encouragement and protection of manufactures were united as motives for levying duties on articles imported. This mode at that time generally prevailed in foreign countries, and received general acquiescence here, and thereby in levying a tax upon mer- chandise entering a community or state, persons from abroad trading in that community or state were required to bear their proper share in the expenditures of such community or state.
THE PROTECTIVE THEORY IN EARLY TARIFFS.
The protective theory was recognized in the first tariff of the United States, which declared in its opening words that — "Whereas it is necessary for the support of government, for the discharge of the debts of the United States, and the encourage- ment and protection of manufactures that duties be levied on goods, wares, and merchandise imported," etc. That tariff im- posed duties upon about 75 articles, the rates of duty ranging from iy<z to 15 per cent on those articles upon which an ad valorem duty was imposed, though on more than half of the arti- cles named the rates of duty were specific. One year later an ad- ditional number of articles were placed upon the dutiable list, still others in 1792, and again in 1794, the average rates on dutiable articles by that time reaching 13 per cent. In the year 1812 the war tariff doubled the rates of duty, making an average rate of 32.7 per cent, alid under that tariff, coupled with the stimulus given by the war, occurred great activity in manu- facturing.
In 1816 the Lowndes-Calhoun bill went into effect, giving an average rate of about 26 per cent, which, however, was too low to prevent vast importations from England which were sent at less than cost prices with the distinct purpose of crushing out of ex- istence the infant industries which had been developed during pre- ceding years, and especially during the short protective period from 1812 to 1816.
TARIFF OF 1824.
In 1824 a higher protective tariff was enacted, giving an average rate on all imports of 37 per cent, and in 1828 this was increased to bring the average up to about 48 per cent, and continued in operation until 1834. During that time great pros- perity came to the people of the United States, both to the manu- facturing industries and to those supplying the food and materials consumed by persons engaged in those industries. Henry Clay, commenting on conditions of that period, said : "If the term of seven years of the greatest prosperity which its people have en- joyed since the establishment of their present Constitution were to be selected it would be exactly that period of seven years which immediately followed the passage of the tariff act of 1824." Major McKinley, commenting later upon conditions of that period, said : "The entire country, under that tariff, moved on to higher triumphs in industrial progress, and to a higher and better destiny for all of its people." President Jackson, in a message to Congress in 1834, the year prior to the repeal of this protective tariff law, said : "Our country presents on every side markets, prosperity, and happiness unequaled perhaps in any other portion of the world."
LOW TARIFF AND THE CRASH OF 1837.
In 1833, however, under pressure of the low tariff supporters the Clay compromise tariff act was passed, reducing the rates of duty and providing for a further gradual reduction during a term of years to bring the average rate on all imports down to about 17 per cent. This was followed by a decline in trade and industry, by an inundation of foreign goods, by financial depression, assign- ments and bankruptcies, until the culmination came in the finan- cial crash of 1837, one of the most appalling and disastrous finan- cial revulsions ever known, the revenue so falling off that the Government was obliged to borrow money at high rates of interest to pay current expenses, while workingmen were idle, the farmers without markets, and their products sold by sheriff to pay debts.
In 1842 a protective tariff was enacted which was followed by general prosperity during the short period of four years in which
10 U1K 1AKI1I.
it was in operation. So prosperous wns the country under this that President Polk, in his message of December, 1846, said : "La- bor in all its branches is receiving an ample reward, and the progress of our country in her career of greatness, not only in extension of territorial limits and in the rapid increase of her population but in resources and wealth and the happy condition of her people, is without an example in the history of nations."
THE WALKER TARIFF.
At that very date (December, 1846), however, the celebrated Walker tariff went into effect, making a general and great reduc- tion in duties, being a thoroughly free-trade measure in its prin- ciples. The war with Mexico, the discovery of gold in California, and the unusual demand abroad for agricultural products main- tained prosperity in the United States during the earlier years of this Walker tariff, but much of the gold was drawn abroad in payment for the foreign goods imported and within a few years came a great depression, the closing of manufacturing establish- ments, lack of employment for labor and lack of home markets for the farmer. In 1850, Mr. Samuel Bowles, editor of the .Springfield Republican, and other representative citizens of Massachusetts sent a petition to Congress entreating it to revise the tariff of 1846 in the interest of protection, and saying: "Previous to the passage of that law the manufacturing and mechanical interests of this community were in a flourishing condition. Since that time the condition of things has entirely changed, and it is fully be- lieved that much of the stagnation of business will be traced to the operation of that law. Manufacturing languishes, mechanics are thrown out of employment, business of all kinds is 'dull, and unless protection can be afforded to our laboring classes poverty will overtake them." In 1854 Hunts's Merchant Magazine, a well- known free trade journal of that period, said: "Confidence is shaken everywhere and all classes are made to realize the inse- curity of worldly possessions. The causes which led to this have (been a long time at work. Goods which had accumulated abroad ' when the demand had almost ceased were crowded upon our shores at whatever advance could be obtained, thus aggravating the evil." The answer, of Congress to these appeals, however, was a further reduction of duties made in 1857, and this was followed by a panic and commercial ruin, and such conditions that the Government was compelled to pay as high as 12 per cent and 13 per cent for money borrowed to pay the running expenses of the Government Of this condition President Buchanan, the last Dem- ocratic President before Grover Cleveland, said in his message of 1860: "With unsurpassed plenty in all the productions and all the elements of natural wealth, our manufacturers have suspended, our public works are retarded, our private enterprises of different kinds are abandoned, and thousands of useful laborers are thrown out of employment and reduced to wrant. We have possessed all the elements of material wealth in rich abundance, and yet, not- withstanding all these advantages, our country in its monetary interests is in a deplorable condition."
TARIFFS AND CONDITIONS SINCE 1861.
In the 36th Congress a majority of the House of Representa- tives, being Republican, favored the substitution of a protective tariff for the amended tariff of 1846, and under the leadership of the then Chairman of the Committee on Ways and Means. Mr. Morrill, of Vermont, the House of Representatives during the long session of 1859-60 passed a protective tariff measure, which, during the short session of 1860-61, after the abdication of many Southern Senators, received a majority in the Senate, and was signed by President Buchanan before he vacated his office in March, 1861. Thus with the advent of the Republican party to control came the adoption of the protective system, and this became perma- nently a part of the policy of the Government until 1894, when the Wilson-Gorman low tariff act was passed. The prosperity which developed during that period is so well known that it need scarcely be alluded to. The value of farms and farm property increased from a little less than 8 billions of dollars in 1860 to over 16 billions in 1890, as shown by the United States census. The value of farm animals increased from one billion dollars in 1860 to 2y2
run; TARIFF. 11
billions in 1890. The value of manufactures increased from less than 2 billion dollars in 18(30 to 9 billions in 1890 ; the wages and salaries paid to persons employed by the manufacturing industries increased from 379 million dollars in 1860 to 2,283 millions in 1890. The deposits in savings banks grew from 150 million dollars in 1860 to 1,712 millions in 1892, or about 12 times as much in 1892 as in 1860. Meantime the national debt, incurred by the war, had been reduced from 2,636 million dollars in 1866 to 841 millions in 1892 ; the per capita indebtedness from $77 in 1865 to $13 in 1892, and the annual interest charge per capita from $3.98 in 1865 to 35c cents in 1892. Imports during that long period of protection increased from 353 million dollars in 1860 to 827 millions in 1892, and ex- ports increased from 333 millions in 1860 to over one billion dol- lars in 1892. The share which manufacturers' raw materials formed in the imports increased from 17 per cent in 1860 to 24 per cent in 1892, and the share which manufactured articles ready for consumption formed in the imports fell from 35 per cent in 1860 to 17 per cent in 1892. The manufacturers of the country not only supplied the home markets which had been heretofore supplied from abroad, but increased their exportation of manufac- tures from 40 million dollars in 1863 to 160 millions in 1892; and the farmers not only supplied the greatly increased demand of the home market but increased their exportation of agricultural pro- ducts from 256 millions in 1860 to 798 millions in 1892. As a re- sult of this unexampled activity and prosperity the money in cir- culation 3n the country grew from 435 million dollars in 1860 to 1,601 millions in 1892, and the amount per capita increased from $13.85 in 1860 to $24.56 in 1892. Wealth meantime increased from 16 billions of dollars in 1860 to 65 billions in 1890, and the per capita wealth from $514 in 1860 to $1,038 in 1890.
THE WILSON-GORMAN TARIFF.
Then followed the Wilson-Gorman low-tariff law. True, it was not enacted until 1894, but the election in 1892 of a Democratic President and Congress notified the people of the United States that a change in the tariff might be expected, and from that- mo- ment business began to decline. The certainty of a tariff reduc- tion, coupled with the uncertainty as to how great its extent might be upon each individual article, caused the manufacturers to im- mediately curtail their production, and the reduction of employ- ment which followed reacted upon all classes in a reduction of the demand for their products and a reduction of price for that which found a market. As a result the bank clearings, that great barometer of business conditions, fell from 61 billions of dollars in 1892 to 52 billions in 1896, the year of the election of McKinley, whose very name was a promise of protective tariff. Money in circulation fell from 1,601 million dollars in 1892 to 1,506 millions in 1896, and the per capita from $24.56 in 1892 to $21.41 in 1896. Exports fell from 1,015 million dollars in 1892 to 863 millions in 1896 ; those of agricultural products alone falling from 798 mil- lions in 1892 to 570 millions in 1896, while imports of manufac- tured articles ready for consumption increased from 142 millions in 1892 to 160 millions in 1896. The revenue of the Government fell off and loans became necessary to meet the current expendi- tures, and as a result the national indebtedness increased from 841 million dollars in 1892 to 955 millions in 1896— all during a time of profound peace. The effect upon all industries was strongly marked. The value of animals on farms fell from 2,461 million dollars in 1892 to 1,728 millions in 1896 ; the production of wool, under free trade in that article, fell from 294 million pounds in 1892 to 272 millions in 1896 and its value from 59 million dollars in 1892 to 33 millions in 1896; and the value of sheep on farms from 45 million dollars in 1892 to 38 millions in 1896. Pig-iron production fell from over 9 million tons in 1892 to 6% millions in 1894. Rates of wages were reduced in all lines of industry ; mil- lions of men were out of employment, and as a result prices of farm products were greatly reduced. Railroad building, which had been proceeding at the rate of from four to five thousand miles per annum, fell to 1,700 miles in 189a Over 25,000 miles of railway, or one-third of the total of the country, went into the hands of receivers, and the wages of their employes were greatly
12 THE TABIFF.
reduced. As a result of these conditions the commercial failures Increased from 10,344 in number in 1892 to 15,244 in 1893 and 15,088 in 1890, and the amount of liabilities from 114 million dol- lars in 1892 to 340 millions in 1893 and 226 millions in 1896.
THE PRESENT TABIFF.
Following the election of William McKinley and a Congress Republican in both branches a special session was held as soon as possible after McKinley's inauguration, and a protective tariff — that now upon the statute books — enacted. Under it has come prosperity to every branch of industry and prosperity to the Gov- ernment as well as to its people. The interest-bearing debt, neces- sarily increased by reason of the war with Spain, has been re- duced from 1,040 million dollars in 1899 to 895 millions in 1904; the per capita indebtedness from $15.55 in 1899 to $11 at the present time, and the annual interest payments from 40 million dollars in 1899 to 25 millions at the present time. The money in circulation has increased from 1,506 million dollars in 1896, the year of McKinley's election, to 2,503 millions on March 1, 1904; the per capita money in circulation from $21.41 in 1896 to $30.75 on March 1, 1904 ; the bank clearings from 51 billion dollars in 1896 to 114 billions in 1903 (having thus more than doubled), and the total bank deposits from 4,916 millions in 1896 to 9,673 millions in 1903. Farm animals increased in value from 1,728 millions in 1896 to 3,102 millions in 1903; pig-iron production from 8% mil- lion tons in 1896 to 18 millions in 1903 ; steel production from 5^4 million tons in 1890 to 15 millions in 1903 ; coal production from 171 million tons in 1896 to 270 millions in 1902 ; the value of min^ erals produced from 623 million dollars in 1896 to 1,260 millions in 1902. Exports of agricultural products grew from 570 million dollars in 1896 to 873 millions in 1903, and exports of manufac- tures from 228 millions in 1896 to 407 millions in 1903, while manufacturers' raw materials, which formed but 26% per cent of the imports in 1896, formed 38 per cent in 1903. As a result of all these things came increased wages, increased employment, and increased savings by the workingmen, as is shown by the fact that the money deposited in the savings banks increased from 1,907 million dollars in 1896 to 2,935 millions in 1903, and the number of depositors from 5,005,000 in 1896 to 7,305,000 in 1903. Railroads passed out of the hands of receivers ; railroad building has re- sumed, the mileage of railroads increasing from 182,776 in 1896 to 205,000 in 1903, and the number of tons of freight carried by the railroads increasing from 773 millions in 1890 to 1,192 millions in 1902. With this great activity and prosperity has come an increase in national wealth from 77 billions of dollars in 1895 to 100 billions at the present time, placing the United States at the head of the list of the world's nations, and with a national wealth actually 50 per cent, greater than that of the United Kingdom, and as great as that of France and Germany combined.
As to Further Tariff Revision.
Much has been said during the past year as to the importance of a revision of the present tariff. To this it is only necessary to say in reply, that the Republican party has adjusted, revised, increased, or reduced the tariff whenever such adjustment, in- crease, or decrease seemed necessary during all of the 40 years since it assumed government in 1861. In that period of 40 years there have been more than 20 different tariff changes. A consid- erable number of these have been changes of a broad, general character, many of them increases or decreases all along the line, while others were of less importance and relating to certain classes of merchandise only, but any of them sufficient to show the willingness of the Republican party at any period of its con- trol to make any necessary changes, revisions, or reductions which in view of new conditions may be demanded by public opinion. No body of men is more sensitive to public opinion or public demand than a Congress formed in the manner in which that of the United States, is chosen and whose members are di- rectly dependent upon popular approval for a continuation of their services. No body of men is more accessible to the public than a body to which each citizen of the United States is guar anteed by the Constitution the right of petition. An examination
THE TARTFF. 13
of the history of our tariff legislation shows that while the pro- tective tariff was adopted early in 1861, changes in rates of duty were made in 1862, 1863, 1864, 1865, 1866, 1867, 1869, 1870, 1872, 1875, 1879, 1880, 1882, 1883, 1890, 1894, and in 1897, and that all of these as well as many minor changes were, except that of 1894, made by the Republican party, by Republican votes in Congress, and approved by a Republican President In many of these changes there was a marked reduction in rates of duty. Indeed, there has never been a time during the 40 years of Republican control that a Republican Congress did not respond to a popular demand for tariff changes, whether of advance or reduction. With this record it seems not unreasonable to assume that any changes in the tariff justified by conditions will be not only de- manded of Congress by the people through their usual channels of approach, but that the changes thus demanded will be prompt- ly made as they have always been during the record of the Re- publican party. A history of tariffs changes from 1789 to 1897 is given on page 56.
Relative Growth in Coal Consumption In the Leading Protected and Free-Trade Countries.
Another measure of the relative business and manufacturing activity in the low-tariff and protected countries is found in the coal consumption of the two classes of countries. The United Kingdom, Germany, and the United States are the great coal- producing and the great manufacturing countries, and the United Kingdom is a marked example of free trade and the United States and Germany are marked examples of protection. Usually at- tempts to measure coal consumption have been based on the mere figures of production, but these are misleading because of the fact that) the United Kingdom exports such large quantities of coal. A table presented on page 61 shows the quantity of coal consumed in each of these countries, as well as the quantity produced and the increase in consumption since 1875. This table will justify a very careful study. It shows that the coal consumption of the United Kingdom has increased less than 50 per cent since 1875, that of Germany has increased about 200 per cent and that of the United States nearly 500 per cent. These figures have been very carefully compiled from official in- formation and their accuracy cannot be doubted.
Trusts and the Tariff.
The Democratic assertion that the tariff is responsible for the existence of trusts and that it should be removed for the pur- pose of destroying those organizations seems scarcely justified either in fact or theory. It does not seem to be a fact that the tariff is responsible for the existence of trusts, nor does the theory of repeal of the tariff for the purpose of destroying them seem to be justified in view of the adverse effect upon industries in general which would follow. No one familiar with the history of trusts and great combinations in other parts of the world can for a moment accept as accurate the assertion that the tariff is responsible for the existence of organizations of this general character, whether under the title of trusts or-, otherwise. Mr. Blaine, in 1888, on returning from a visit to Europe, declared in his speech opening the Presidential campaign of that year that trusts and combinations to control prices even at that early date existed in free-trade England in large numbers ; or, as Senator Dolliver has recently expressed it, "England was even then plastered all over with trusts." In October, 1895, a steel-rail trust which embraced the steel-rail manufacturers of Great Britain was organized, and on February 5, 1896, the London Iron- monger announced the details of its agreement, the chief among them being that "there is to be no under selling." In 1895 the Sheffield Telegraph published the draft of a. scheme proposing the combination of 200 iron firms in the various cities of England for the purpose of regulating the prices of all classes of iron. In 1897 the details of the combination between the great armament manufacturing firms were announced. Some of the great combi- nations in England for the control of prices of articles in common use were organized as early as 1890, among them the following: The Salt Union, Limited, with a capital of $10,000,000; in the same year, the Alkali Com-
11 THE TARIFF. -^.
pany, combining 43 manufacturing establishments, with a capital of #30,000,000; the J. & P. Coates Company, thread manufacturers, in 1896, a combination of four busi- nesses with a capital of $27,000,000; another cotton thread organi- zation, i v»ar later, combining 15 manufacturing establishments with a capital of $14,000,000; a combination of cotton spinners in 1898, combining 31 establishments with a capital of $30,000,000; in the same year a combination o{ the dyeing interests, combining 22 establishments with a capital of $22,000,000; also in the same year a combination of the Yorkshire Wool Combers, combining 38 establishments with a. capital of $12,000,000; also in 1808 a combination of 00 calico printing establishments with a capital of $46,000,000; in 1900 a combination of 28 wall paper manufacturers with a capital of $21,000,000, and in the same year a combination of 40 establishments of cotton and wool dye- ing establishments with a capital of $15,000,000. In the decade 1890-1900 the public announcements of combinations in free- trade England included 328 different business concerns amalga- mated into 15 great organizations with a total capital of $230,- 000,000, while a very large number of minor organizations and those which were not made public should be added to the list to render it complete. Many great combinations have been or- ganized in free-trade England since 1900, but this history of the decade in which great combinations of capital of this character have been common in all parts of the world where manufactur- ing capital is plentiful is sufficient to show that such combina- tions and organizations are not confined to protection countries, but on the contrary flourish with equal vigor in the one free- trade country of the world in wThich a sufficient amount of capital exists to justify the organization of combinations of this kind.
ENGLISH ATTITUDE TOWARD TRUSTS.
The United States Industrial Commission made a thorough investigation of trusts and trust operations in foreign countries as well as in the United States in 1900, sending an expert (Prof. J. W. Jenks, of Cornell University) to the principal European countries and giving the subject much careful attention and study. The report stated that "there is a strong tendency toward the formation of industrial combinations everywhere in Europe," and of the situation in England says: "There were in earlier days very many local combinations to keep up prices, and in some cases these rings have proved very successful. Within the last three years a very active movement toward the concentration of industry into large single corporations, quite after the form that has been common in the United States, may be observed. Nearly all the feeling that one notes in England on this subject has reference to the later corporations formed by the buying up of many different establishments in the same line of business — corporations that through combination have succeeded in ac- quiring in many particulars a good degree of monopolistic con- trol. * * * Industrial combinations in Europe do not seem to have awakened the hostility in any country that is met with in the United States. In England one finds in the papers a little expression of fear of the newer large corporations. The Govern- ment has taken no action whatever regarding them further than to pass, August 8, 1900, an amendment to the Companies Act. which provides for greater publicity regarding the promotion and the annual business of corporation® than before. * * * There is, relatively speaking, little objection to combinations in Europe, and in some cases the governments and people seem to believe that they are needed to meet modern industrial conditions. They do believe that they should be carefully supervised by the Gov- ernment and, if necessary, controlled. * * * The great degree of publicity in the organization of corporations has largely pre- vented these evils arising from stock watering, and has evidently had much effect in keeping prices steady and reasonable and in keeping wages steady and just There seems to be no inclination toward the passage of laws that shall attempt to kill the combi- nations. This is believed to be impossible and unwise. Laws should attempt only to control, and that, apparently, chiefly through publicity, though the governments may be given re- strictive power in exceptional cases."
THE TASOfV. 15
TRUSTS AND PRICES.
Combinations of the general character looseiy designated as "trusts" are in fact the grouping together under one manage- ment of several industrial concerns making articles similar in character, primarily for the purpose of reducing expenses of pro- duction and sale, and also of securing uniformity in prices of the products of the organizations thus grouped. Unless the or- ganizations so combining include all or at least a large share of those existing in the country in question, it is obviously impossi- ble for them to control prices in that country. They may de- termine the price at which their own product shall be sold, and insist upon receiving that price or refusing to sell, but they can not control the prices at which others shall sell in competition with them unless the original organization is sufficiently strong to buy in all competitors or to drive them ou". of existence by selling at prices below the cost of production.
It will be conceded that unless a combination of manufac turers of a given article thus controls the price of a very large proportion of that article produced in the country of operation it can not exact excessive prices because of the competition which would be offered by other producers not within that or- ganization. Let us see what the relation is of the great manu- facturing combinations in the United States to the total manu- facturing capacity in the line of industry in which they operate. The most marked example of organizations of this kind is, of course, the United States Steel Corporation. Mr. James M. Swank, who has been secretary of the American Iron and Steel Association since long before the trust era, and editor of the Bulletin of the Iron and Steel Association, in a table recently published compares the product of the United States Steel Cor- poration in 1902 with the product of all other iron and steel manufacturing companies in the United States. These statistics have been gathered with great care ; those of production by the Steel Corporation, from its own official statements, and those of other companies from authentic sources. They show that in 1902 the United States Steel Corporation produced 50.8 per cent of the finished rolled iron and Lteel products manufactured in the United States. The total of all finished rolled products by the United States Steel Corporation in 1902 was 7,086,658 gross tons, and by the independent companies, 6,857,458 gross tons. It is obvious that a company producing only one-half of any given article entering a given market could not maintain exces- sively high prices against the competition which would be of- fered by a large number of unorganized individuals whose total product is equal to that of the company attempting to maintain such excessive prices, and each seeking to find a market for its product and willing to sell it at a fair profit, thus insuring con- stant work for its millc and workmen. It is quite apparent, therefore, that the competition thus offered by uncombined manufacturers operating in their individual capacity, whose ag- gregate production is equal to that of the corporation, must ren- der impossible the control of the market by that corporation and compel it either to sell its product at a reasonable price or ex- clude them from the market. For above-mentioned table see index.
TRUSTS UTTERLY UNABLE TO CONTROL THE MARKETS.
This condition of the impossibility of a control of the mar- kets by combinations of this character applies with even greater force when we take into consideration the relation of the indus- trial combinations of the country as a whole to the manufactur- ing industries of the country as a whole. The census of 1900 made an examination into this question and the share which in- dustrial combinations produced in that year of the total manu- factures of the country as a whole. Under the term "industrial combinations" it included all those organizations which consisted of "a number of formerly independent mills which had~been brought together into one company under a charter obtained for that purpose." This is distinctively the "trust" or "combination" idea— the grouping together under one management a number of establishments manufacturing similar articles with the purpose of reducing cost of production and sale and of securing uniform- ity in prices of their product The result of that inquiry, found
16 THE TAKIM .
on page lxxi, table xxvi, of part one of the Census Eepcrt on Manufactures, 1900, showed that all of the manufacturing es- tablishments of the United States which could be included under this designation produced only 14.1 per cent of the aggregate factory product of the United States in that year, and employed but 8.4 per cent of the factory labor of the country. Here, then, is a fair indication of the power of the industrial combination, whether under the term trust or otherwise, to control prices of manufactures in the United States. They produced in the year 1900, the latest year in which accurate statistics are available, but 14.1 per cent of the total manufactures of the country, while 85.9 per cent of the manufactures of the country were produced by men and manufacturing1 establishments not in- cluded in or a part of these industrial combinations. Can any- body suppose for a moment that the producers of only 14. per cent of a given article or class of articles would have the power to fix prices and maintain them at an excessive or exorbitant figure against the competition which would be offered by the producers of the other 86 per cent? Not only is it true that the industrial combinations were in this great minority as to power of production but it is also true that in many cases these very organizations were competitors among themselves. It fre- quently happens that one trust, so called, or combination is a competitor of another trust or combination making the same article, so that in fact the competition was not merely that of 86 per cent of unorganized industry against 14 per cent of or- ganized, but there was also competition between various sec- tions of the 14 per cent included under the general group of industrial combinations. While it is true that there has been a large increase in the number and capitalization of trusts since 1900, the developments of the past year have shown that these apparently rapid developments in the trust creation and control were largely fictitious, and that many of them have not even the power to continue their own existence, to say nothing of the power to control prices.
FREE TBADE PROVING DESTRUCTIVE IN ENGLAND.
Even if we assume that all of the industrial combinations, manufacturing 14 per cent of the total manufactures of the country, were cooperating among themselves to maintain and demand high prices, this fact would not justify the destruction of the other 86 per cent of the manufacturing industries of the country as a result of the punishment which the friends of free trade would deal out to the corporations producing this 14 per cent of the manufactures of the country. That free trade would immediately injure and ultimately destroy the great man- ufacturing interests of the country is illustratetd by the cries now coming from free-trade England that her manufacturing industry, which was established under protection before that of the United States began its great development, is now being destroyed by the competition made possible through open doors- free trade. The proposition to bring about the punishment of industrial combinations which are alleged to be maintaining excessively high prices, by the wholesale destruction which would result from free trade in their products, is like a propo- sition to burn the barn to destroy the rats. Regulation, to pre- vent a control of the markets and the establishment of exces- sively high prices, is the logical and proper remedy rather than destruction of the great interests directly involved and the far greater interests of manufacturers not in those combinations, who would equally suffer.
JUDGE GROSSCUP ON TRUSTS.
On this subject Judge Peter S. Grosscup, whose vigorous expressions in hostility to combinations which seek to control prices have attracted universal attention both in this country and elsewhere, said in an address at Des Moines, Iowa, on April 27, 1904: "To the great corporations we now go for almost every help in life. The farmer turns up the soil with a cor- poration-made plow; the rains may mellow the soil, but a cor- poration drill puts in the seed. The gathered harvest is stored in corporation warehouses, transported over an incorporated
THE TAEIFF. 17
railway, ground into flour by incorporated rollers, and baked in- to bread in corporation ovens. And tbey whose mouths feed upon the loaves pay for them, for the most part, out of earnings re- ceived from a corporation treasury. As an ally to the farmer corporation enterprise helps to feed us. As an ally to the manu- facturer it helps to clothe us. As an ally to the moral agencies of mankind it helps us through the pathway of advancement. Without corporate enterprise this great State would be a hermit in a wilderness of unsettled prairie lands. The great corpora- tion is here to stay. The problem before us is not how to' de- stroy the corporation nor how to hamper it or trip it up, but to make it a helpful servant to the uses of mankind. * * * The first step to this end and the great step is to nationalize the corporation. Five and forty masters now ordain its policies. It should be governed by one master and one policy. The corpor- ation is no longer the sole concern of the State where its books happen to be kept or its directors meet, it has become the con- cern of the whole country over which its enterprises reach. The day of the New Jersey policy is gone, and the New York policy and the Iowa policy — the day has come for an American cor- porate policy."
PRESIDENT ROOSEVELT'S OPINION.
On this same subject of regulation as against the Demo- cratic doctrine of destruction of the trusts, President Roosevelt said at Milwaukee, on April 3, 1903: "I think I speak for the great majority of the American people when I say that we are not in the least against wealth as such, Avhether individual or corporate; that we merely desire to see any abuse of corporate or combined wealth corrected and remedied; that we do not desire the abolition or destruction of big corporations, but, on the contrary, recognize them as being in many cases efficient economic instruments, the results of an inevitable process of economic evolution, and only desire to see them regulated and controlled so far as may be necessary to subserve the public good. We should be false to the historic principles of our Govern- ment if we discriminated, by legislation or administration, for or against a man because of either his wealth or his poverty. There is no proper place in our society either for the rich man who uses the power conferred by his riches to enable him to oppress and wrong his neighbors, nor yet for the demagogic agitator who, instead of attacking abuses, as all abuses should be attacked wher- ever found, attacks men of wealth, as such, whether they be good or bad, attacks corporations whether they do well or ill, and seeks, in a spirit of ignorant rancor, to overthrow the very founda- tions upon which rest our national well-being."
Speaking upon this subject in 1902, President Roosevelt said : "The necessary supervision and control, in which I firmly believe as the only method of eliminating the real evils of the trusts, must come through wisely and cautiously framed legislation, which shall aim in the first place to give definite control to some sover- eign over the great corporations, and wiich shall be followed, when once this power has been conferred, by a system giving to the Government the full knowledge, which is the essential for satisfactory action. Then, when this knowledge — one of the essential features of which is publicity — has been gained, what further steps of any kind are necessary can be taken with the con- fidence born of the possession of power to deal with the subject, and of a thorough knowledge of what should and can be done in the matter. We need additional power, and we need knowledge. * * * Such legislation — whether obtainable now or obtainable only after a constitutional amendment — should provide for a rea- sonable supervision, the most prominent feature of which at first should be publicity; that is, making public, both to the Govern- ment authorities and to the people at large, the essential facts in which the public is concerned."
Such laws as those suggested by Judge Grosscup and recom- mended by President Roosevelt would not only prevent the fixing and maintenance of excessive prices, but would prevent such ex- periences as those of the past year in which the public were in- duced to make large investments in overcapitalized trusts upon the assumption that all trusts were great money makers ; and had
18 THE TABIFF.
such regulations been in existence during the past two, years they would have saved to the public hundreds of millions' of dollars invested in stocks of corporations whose shrinkage in value, as es- timated by the Wall Street Journal, October 26, 1003, amounted at that time to $1,753,050,700.
Sales Abroad at Figure* Belovr Home Prices.
It is doubtless true that occasional wles of American manu- factures are made abroad at less than the established and regular prices at home, just as the manufacturer »r merchant frequently sells below his regular prices in the home market, for the sake of gaining new customers or of disposing of his surplus products at cost, rather than close down his factories and deprive his work- men of employment. A very careful estimate of the value of American manufactures exported at less than the current prices charged in the home market was made by the Industrial Com- mission, an official body of the United States Government, com- posed of members of both parties, having power to call before it witnesses, to administer oaths, to take testimony, and to punish witnesses for refusal to answer such questions as it might choose to put to them. That inquiry extended over a long period of time, and was very far-reaching. Inquiries were sent to a large number of manufacturing establishments in all parts of the country and the replies received came from manufacturers of all classes, includ- ing iron and steel, machinery and metal products, typewriters, engines, agricultural implements, vehicles, leather and its manu- factures, boots and snoes, manufactures of wood, paper and pulp, textiles and manufactures therefrom, flour, provisions, canned goods, condensed milk, chemicals and drugs, optical goods, manu- factures of glass, clay and stone products, and numerous other classes of products. Much attention was given to an examination and discussion of the replies, which were received from hundreds of manufacturers in every part of the country, and the Commis- sion, discussing these replies, says: "A great majority of the answers indicate that prices are no lower abroad than they are for domestic consumers, and a considerable number indicate that foreign prices are higher." This would indicate that but a small percentage of the 400 million dollars' worth of manufactures ex- ported annually is sold at less than domestic prices, and when it is remembered that the gross value of the manufactures of the country in 1000 was 13 billions of dollars it will be seen that the share of that product sold in foreign markets at prices less than those charged at home must be extremely small.
It is urged by the Democratic free traders that because of these sales abroad at prices less than those charged in the home market the tariff on the class of articles so sold abroad should be removed. As these sales are liable to occur in any class of manufactures under the conditions above suggested this remedy would mean the removal of the duty on al] classes of manufac- tures. Would it be worth while to destroy our home manufactur- ing industry, which employes 5% million wage-earners and pays to them nearly 3 billion dollars per annum for their services, just because the manufacturers choose to sacrifice their profits on a very small percentage of the value of their products for the sake of keeping labor employed and of increasing their em- ployment of labor through the added markets which they expect to obtain by such sales?
A PRACTICE PREVAILING IN ALL COUNTRIES.
While the statements obtained by the Industrial Commission indicate that but a small percentage of the manufactures exported are sold at less than domestic prices, other testimony obtained by that Commission, and statements obtained from other sources, show that the custom of selling merchandise abroad at less than home prices is one which exists and always has existed in free- trade England as well as in all other countries attempting to culti- vate markets abroad. Mr. C. R. Flint, of the great exporting firm of Flint, Eddy & Co., of New York, in his testimony before the Commission said :
"There are times when there is a surplus, when manufacturers will seek a foreign market at a concession. This is true in all manufacturing countries. It does not apply especially in the United States, but it is true in all countries. It is true in England. where there is free trade."
THE TAMFF. 19
Being asked if there was any difference in that particular be- tween trust-made goods and goods made independently of trusts, he replied that :
"There was far more of !L disposition to make concessions be- fore these combinations, from the fact that individual manufac- turers were under more pressure of necessity to realize on their investments. The great industrial combinations, by reason of the great advantage they have in regulating production, avoid exces- sive production, and therefore are less likely to be under financial pressure." * %
' Mr. John Pitcairn, president of the Pittsburg Plate Glass Co., in his testimony before the Commission, said of plate glass ex- portations :
"Various manufacturing powers in Europe have combined into one strong international syndicate in order to regulate and divide among themselves the world's markets. Only the United States is left out of this protecting combination. This market (the United States) is therefore a desirable dumping ground for the surplus of European production, and exceptionally low prices are being made by the foreign manufacturers for glass intended for the United States* For example, the present European price for pol- ished plate glass cut to size is, for the United States 40 and 50 per cent discount from a certain price list; for England, 10 per cent discount from the same price list, which means a difference in price of 58 per cent. European discounts for stock sizes of pol- ished-plate glass are, for the United States, 30 per cent off the list; for England, 5 per cent off the same lists, which shows a difference of 36 per cent."
On this subject, Prof. W. J. Ashley, former professor of eco- nomic history in Harvard University, and now professor of com- merce in the University of Birmingham, England, in a work en- titled "The Tariff Problem," issued in London in 1904, says :
"This dumping of which we have heard so much is nothing new. It is the ordinary outcome of mercantile ethics — the ethics of industrial war. The policy of selling abroad for a time cheaper than at home was naturally resorted to, when it seemed expedient by English manufacturers in earlier decades, just as it was later by German manufacturers to secure sale in Russia. In- deed, a German economist, writing in 1897, before we in England had begun to complain of being dumped upon ourselves, expressly designates the policy of low foreign prices as 'the German-Eng- lish system.' * * * It has long been realized by economists that in times of depressed trade, when the market is glutted, it is often expedient to sell goods abroad at 'slaughter prices.' It may be well to dispose of them abroad at any price which will get rid of them, in order to prevent their continuing to press on the home market. * * * From an economic and from a business point of view there is no unfairness in the matter. Exceedingly low prices are made for a certain time and for certain markets simply be- cause this is expected to inure to the best financial result over the whole range of transactions or over a period of years. And it is necessity that drives, in most cases, and not the free will of the exporter. * * * The abolition of the protective tariff on the too-cheaply exported goods is an improbable result. The com- binations which are complained of can reply with much reason that their export policy is for the good of the country as a whole. The subject was thoroughly discussed in the German Reichstag in November last; and Dr. Moller, the Prussian Minister of Commerce, summed up the prevalent opinion in official circles. He could not but rejoice to see that the exportation of great quantities of iron, etc., to the United States and to England had alleviated the crisis in Germany. True, this would not suffice to put the whole of the German production into a healthy condition; but if this outlet had not been found, the burden of over-production would have weighed upon the country for years. The motion that the import duties should be lowered on goods produced by syndicates and sold more cheaply to foreigners was thereupon defeated by 166 votes to 68."
SECRETARY SHAW'S VIEW.
As bearing upon this subject, the following quotation »from a speech delivered by Hon. Leslie M. Shaw, Secretary of the Treas- ury, at the Auditorium Opera House during the session of the Republican National Convention, is submitted :
"Our opponents lay much stress upon the fact that some American manufactures are sold abroad cheaper than at home. Our friends sometimes deny this, and they sometimes apologize for it, and a few, in times past, have joined our opponents in recommending a removal of the tariff from all such articles. It is useless to deny, and, in my judgment, unwise to apologize and little short of foolishness to attempt to remedy the assumed evil in the manner proposed by the opposition.
"A nonpartisan commission appointed by Congress to investi- gate the subject, with authority to compel the attendance of wit- nesses, made a careful and detailed report. Basing his computa- tions upon the facts set forth in that report, Senator Gallinger, of New Hampshire, in a speech made in the United States Senate on
20 THE TABIFF.
April 23rd, last, placed the value of exports sold at a lower price abroad than at home at $4,000,000. I cannot find that the sub- stantial correctness of this estimate was ever questioned l>v the "['position. But in any event the amount is so small as compared with the aggregate output of our factories as to be unworthy of consideration. The report of the Industrial Commission shows that some of these articles are protected in this country by pat- ents, and are not so protected in the foreign market. If the sup- posed evil as applied to patented articles is worthy of dr remedial measures, the most feasible would be the repeal of our patent laws. w
"There is one other important feature not often recognized. The Republican party has always provided a method whereby a manufacturer can have the benefit of free raw material for the production of merchandise actually exported. Under regulations prepared by the Secretary of the Treasury, the consumer of im- ported material is allowed to recover back the duty paid thereon whenever he exports the same or any article manufactured there- from. During the fiscal year 1903, the amount of drawbacks thus actually paid exceeded $5,000,000. A portion of this was upon goods exported direct from warehouses and upon which no labor had been expended. But if Senator Gallinger's estimate, based upon the data furnished by the Industrial Commission, be correct, that only $4,000,000 worth of merchandise is annually sold abroad cheaper than at home, then the annual drawback onVmported ma- terial would seem to remove any presumption that an injustice is being perpetrated upon the American consumer. A very small portion of the $5,000,000 drawback would cover the difference be- tween the price at which this merchandise is sold abroad, and the domestic price.
"The United States Census reports our aggregate manufactures of 1900 at $13,000,000,000. It is doubtless somewhat larger now. $4,000,000, the amount estimated to be sold abroad cheaper than at home, is therefore only one-thirtieth of one per cent of the aggre- gate. In other words out of every one thousand dollars' worth of manufactures produced by American labor, something like thirty cents' worth is sold abroad cheaper than to our own people; or, stated in yet another form, every time our shops and factories pay five hundred dollars to labor, and therewith produce one thou- sand dollars' worth of goods, they sell thirty cents' worth abroad for twenty-nine cents.
"Whether this practice is defensible or not, foreign producers very generally and almost universally do the same thing. Nearly every class of goods imported into this country is obtainable for export to this country below the regular foreign market. And this is as true in free trade England as in protection France or Ger- many. Our tariff law provides that imported merchandise shall be appraised at its regular market value at the place whence it is imported and at the time of importation, and a penalty is provided for undervaluation. To avoid this penalty the importer adds to the invoice what he admits to be the difference between the regu- lar foreign market value and the price actually paid. During the eleven months of the present fiscal year over 6,000 invoices entered at the one port of New York have been thus advanced by the im- porter to make market value, and the aggregate of the advance- ments thus made upon these invoices exceeds $1,200,000. During the fiscal year 1903, $32,000,000 worth of merchandise was imported at New York admittedly below the foreign market value, and the importer voluntar-ily added $1,500,000 to the invoice to make mar- ket value as the confessed difference between the price actually paid and the regular foreign market value; and Treasury officials added thereto an additional $400,000 and imposed and collected a penalty of $400,000. The goods thus sold by the foreign producer cheaper for exportation to the United States than for home con- sumption include woolen goods, cotton goods, silk goods, and linen goods of all kinds; umbrellas, ribbons, trimmings, velvets, hosiery, rugs, furs, cutlery, glassware, jewelry, furniture, saddlery, guns, wool, hides, chemicals, machinery, iron and steel products gener- ally, and groceries. In fact, they include about everything and from all countries.
"So universal is the practice of selling goods for export to the United States cheaper than for domestic consumption that a very large and influential association of importers have sought for years to have our tariff laws amended so as to authorize the as- sessment of ad valorem duties on the foreign market value for ex- portation to the United States instead of as now upon the regular foreign* value at the place whence the goods are imported. This association of importers thus recognize and confess the fact that there are two foreign market values of merchandise, one the mar- ket value for domestic consumption and the other the market value for export to the United States. They also recognize and confess that a change of. the law permitting the assessment of ad valorem duties on the market value for export to the United States would be as advantageous to them as a reduction in the rate of duty.
"It is a well known fact that sugar which sells in the United States, duty paid, at five cents per pound retail, is worth in the country of production, seven and one-half cents per pound whole- sale. The very men who grow the beets from which this sugar is made, pay ten cents per pound retail for the same sugar which we get at five cents per pound, and the foreign beet grower is statesman enough to approve the policy. He is willing to pay a higher price for the small amount of sugar which he consumes, on condition that the product of his field shall supply the American table. Speaking for myself alone, I am willing to pay any reasonable price for the small amount of barbed wire which I consume, pro-
THE TARIFF. 21
vided the wheat from my field, the dairy products from my herd, and the meat from my stall, shall feed the men who mine the coal and iron, and the artisans who produce the wire to fence the farms of other countries."
Exports from England at Less Than Domestic Prices.
That the manufacturers and exporters of free-trade England sell their goods in foreign countries at less than the prices charged in the home market is shown by the following extracts from official reports to the Department of State of a United States Consul in England. The correspondence in question oc- curred in 1890 and 1891, and while not intended as a discussion of thei question of exports at less than domestic prices, tells in- cidentally some important facts bearing upon certain questions now at issue. The statements, which are those of the United States Consul at Birmingham, England, show habitual and con- tinuous exports to the United States at . less than the prices charged for the same article in the domestic markets of England. This is important in its bearing upon the claim that exports at less than domestic prices are made possible through the exist- ence of a protective tariff, and also in its relation to the claim which has always been made by protectionists that at least a part of the protective tariff duty is paid by the foreign manufac- turer or exporter to the country in question.
The statements which follow are extracts from a series of reports in 1890 and 1891 to the State Department by Hon. John Jarrett, consul of the United States at Birmingham, England. These reports are the results of some investigations made by Mr. Jarrett with the purpose of determining whether the statements made to him as to the prices at which certain goods were being exported to the United States were or were not accurate and had as their purpose the determination of the question as to whether the goods were being undervalued. This fact will account for the fragmentary character of the statements, since they were made in a discussion of a subject different from that now under consideration. The facts developed, however, that the goods were being sold at less than the prices charged in the home mar- kept, are pertinent to the present issue.
In a communication to the State Department dated April 15, 1891, Mr. Jarrett says:
"It is extremely difficult to get at the actual selling- prices of cycles, as there are no wholesale price lists in general use, nor are there any market quotations or prices current to be found in use in or by the trade. The retail price lists are in general use. and prices are made according to quantities sold, and the standing of the buyers, by discounts on the retail price. These discounts range in the foreign trade from 30 to 60 per cent, and in the home trade from 20 to 40 per cent. To very large customers, especially American customers, the manufacturers furnish special prices. * * * I desire also again to call your attention to the difference in discounts allowed in the home and foreign trade. In a dispatch of September 19, 1890, I enclosed you a letter from Singer & Com- pany which clearly stated that the higher discounts allowed in the foreign trade were made necessary hy the tariffs of foreign coun- tries. I was informed up to the date of that dispatch that the discount allowed in the American trade was the same as that to the trade of all foreign countries, and now discover that in cycles there is a higher discount of ten per cent allowed in the United States trade than that of other countries, AND THAT THTS IS BE- CAUSE OUR TARIFF ON CYCLES IS HIGHER THAN THAT OF OTHER COUNTRIES."
In a communication to the State Department dated September 16, 1890, Mr. Jarrett also says:
"I desire briefly to call your attention to another singular fact. The prices charged in the export trade, are, as a rule, in nearly all trades,' less than the prices charged in the domestic trade. I enclose you a letter I have received from Singer & Com- pany, of Coventry, which, you will observe, is marked 'confiden- tial.' It is altogether impossible to get reliable information of this character in any other way. Singer & Co. are large manufac- turers' of cycles, etc., and have a house in Boston to which they make consignments of their manufactures. I have letters from other cycle manufacturers who also cite the fact that their dis- counts in the foreign trade are higher than those in the domestic trade."
The letters referred to by Mr. Jarrett in which the manu- facturing company states that its export rates are less than those charged in the domestic market are as follows:
22 ' Hi I AMI I .
i ( 'oiiii.lrntial.)
CONTRACJTORS TO THE BRITISH GOVERNMENT. SINGER & CO
Cycle Manufacturers.
London 17 Holborn Viaduct.
August 16, 1890. Dear Sir: In reply to your Inquiry of the 13th Inst., we beg to say that we do not now is'sue any trade list, but we charge our agents special account prices which vary according to the number of machines purchased. These prices represent discounts varying from 25 per cent to 45 per cent, the latter being export discount only. Export discounts are larger than those we allow at home, as in nearly every country In Europe there is a considerable duty on cycles' and we have to help our agents in this way.
We believe our Mr. Stringer explained this to you personally on his last visit to the consulate. Yours' faithfully,
SINGER & CO. JOHN JARRETT, ESQ..,
United State Consulate,
Birmingham." "(Memorandum from Starley Brothers, Coventry.)
[ENCLOSURE 3.] JOHN JARRETT, ESQ.,
United States Consul,
Birmingham.
March 20th, 1891. Dear Sir: We have much pleasure in enclosing two copies of our price list as requested by your letter of the 18th inst. The lists are printed for distribution by our agents and others, among private individuals, and are subject to discounts ranging from 60 per cent downwards, but to large buyers our prices are, quoted net and are the subject, of special arrangement. We would direct your attention to the fact that these lists' are prepared for the English trade. Our American trade is done through one firm only, and as a considerable portion of our whole trade is done through this Arm, and the machines are different from the English ma- chines, our prices are low and the subject of a special arrangement every year.
Yours faithfully, • STARLEY BROTHERS,
fr. C. Bradham."
DEMOCRATIC PRESS ADMITS MATTER UNIMPORTANT.
The New York Evening Post, in its issue of July 21, 1904, dis- cussing the English proposition to protect the home manufacturer against "dumping" by a protective tariff, says editorially:
In earlier days it went by the fairer name of "inundation," or the "threatened flooding" of the markets of a new country by the un- scrupulous producers of the Old World. Defined with precision, it means' simply the sale of goods in a foreign market either at an absolute loss, or at a markedly lower figure than is obtained in the home market of the dumping manufacturer. Now this so-called dumping process may take two forms. It may be done at an in- itial loss, in order to advertise wares, or possibly to drive out small competitors; or it may be practiced in order to clear the home mar- ket of a surplus and thus maintain monopoly prices in the home market. It is not necessary to go abroad to find the first kind of dumping. Every grocer who sells sugar below cost, in order to make custom for his other wares, is a dumper. Where this prac- tice in England is resorted to once by a foreign producer, it is practiced by Englishman against Englishman a hundred times. Moreover, it involves a certain initial loss', and a doubtful future gain. No tariff can protect against it, nor has the success of this kind of underbidding proved so frequent as to warrant any attempt to prohibit it by law, even if such an attempt were likely to suc- ceed.
The New York Journal of Commerce, Democratic, a leading financial and commercial publication, discussing the same subject, says in its issue of July 22, 1904:
"However it may be in Germany, there is not here any organ- ized system" for regulating that trade and "dumping" a surplus "irrespective of cost." This "dumping" is the chief bugbear of the British tariff reformers, but it cannot be carried on on any considerable scale or for any length of time to the advantage of the "dumping" country. Exporting at a loss, to be made up by high cost to domestic consumers', cannot be a lasting policy, for it is a losing one for the country that indulges in it; and while it may at times cause disturbance in a single industry in the country where the surplus is sacrificed, it cannot permanently injure that country's trade.
THE CUSTOM A COMMON ONE WITH EUROPEAN MANUFACTURERS.
Hon. Richard Guenther, United States Consul-General at Frankfort-on-the-Main, Germany, in a report to the State Depart- ment in June, 1904, says : "The manager of the carbon works of the General Lighting Company writes to the Daily Mail in refer- ence to the proposal of a German firm to establish in England large works for the manufacture of carbons for electric arc lamps. That the English factory at Witton, near Birmingham, has for the
THE TARIFF. % 28
last two years turned out carbons for the government, municipali- ties, and other users of a quality and at prices which compete with German manufacturers. The amount of 'dumping' with a view to killing the carbon industry in this country would, he adds, astonish the most inveterate free importer. Foreign manufac- turers sell at something like 40 per cent cheaper than in their own country."
Sales of Steel Ralls Abroad at Less Than Home Prices.
Much complaint has been made by the Democrats of the fact that in certain instances steel rails have been sold in foreign markets, especially in Mexico and Canada, at $22 per ton, against a uniform price of $28 per ton charged in the United States by the steel rail manufacturers of the country. Curiously this com- plaint has come from the Democratic politicians and not from the railroads, the sole purchasers of steel rails. This fact, that the railroads are making no complaint, justifies a careful examin- ation of the question as to whether they are being required to pay excessive prices at home, or whether, on the other hand, the sales abroad are^ being made at cost or below cost for purposes satisfactory to the manufacturers who are making those sales.
The question of whether prices demanded by agreement among steel manufacturers in the United States are excessive, might be answered by an elaborate analysis of the cost of producing steel i-ails and the percentage of profit which manufacturers ought to make on their products ; but this elaborate and complicated method of. determining the question of whether the manufacturers are obtaining excessive profits is not necessary. There is a much nore simple and practical method of determining it. No class of business men in the United States are more acute, more thor- oughly posted on the cost of producing the materials which they must constantly buy than the railway managers of the coun- try, and no class of men are better able to command the necessary money with which to establish factories for the manufacture of those materials in case they felt it to be to their advantage to nanufacture for themselves instead of buying them at the prices demanded by the present manufacturers. It will be# conceded by everybody that the railway managers of the United States number among their ranks the most acute and able business men and financiers of the country. They, of all men in the United States, would be most likely to know whether they were being im- posed upon in the prices demanded of them by manufacturers of the article for which they pay such enormous sums of money every year. The railroads pay to steel rail manufacturers fully 75 million dollars a year for steel rails, and they, with their keen instinct and unlimited facilities, can easily know, and certainly do know whether the prices charged are excessive. What would be easier than for them to establish steel rail works of their own, aDd what would they be more certain to do than this if they were being charged excessive prices? They can command unlimited capital. There is no class of business men in the United States who could more readily raise a million, ten mil- lions, a hundred million dollars, or even a greater sum with which to establish steel rail manufacturing plants to supply them- selves with this material for which they are now paying to the manufacturers 75 million dollars a year. What would be more natural than that they should establish steel-rail plants if they felt that they were being imposed upon in the prices now charged? The very fact that these trained and acute business men, with their knowledge of the cost of the article for which they are paying such large sums of money, and with their facilities for obtaining unlimited capital with which to establish works of their own, do not establish such works, but go on quietly and uncomplainingly paying for steel rails this price of $28 per ton to the manufac- turers of the country is sufficient evidence that they do not con- sider the prices charged them excessive, and that those prices are not excessive.
Another fact worthy of note in this connection is that the steel-rail manufacturers made no advance in prices during the period of great demand and general high prices for iron and steel, from 1900 to 1903, though prices of all other grades of iron and steel greatly advanced meantime. .
24 THE TARIFF.
REASONS FOR FOREIGN OUT.
This brings us to the question of, or reasons for, the sales abroad at j trices less than those charged at home. These reasons are easily found. First, the American manufacturers who desire to sell their rails in Mexico, for example, must do so in direct and full competition with the steel rail manufacturers of Europe. The cheaper labor of European countries enables the manufacturers there to produce rails at a much lower cost than they can be made here, and the fact that foreign rails can be transported most of the distance by water, while those from our own great manufacturing establishments must be transported to Mexico a large part of the distance at least by land, places European manu- facturers at least on equal footing with those of the United States in the Mexican markets. And it is also well known that the manufacturers of European countries make their foreign prices below those which they charge in the home markets for the pur- pose of building up markets in those countries. This plan of opera- tion on the part of European manufacturers in placing their rails in Mexico brings to the lowest point the prices with which Ameri- can steel rails must compete in that market. If therefore the steel rail manufacturers of the United States desire to establish a market in Mexico they must put their prices at a point at which they can compete with the rates named by other countries, else they will make no sales and establish no market, but will abandon to European manufacturers a market in a country just alongside of the United States. In addition to this, steel works are being established in Mexico, where rates of wages are extremely low and the prices at which rails will be turned out when this ii dustry is further developed will be very low, hence the impoi ance of retaining control of that market even at low rates of profit Thus the steel-rail manufacturers of the United States, if they desire to sell their products in Mexico at all, must do so at a price which will compete with European manufactures and Mexican manufacturers and with the. cheap labor of both coul- tries.
Still another condition with which American manufacturers must conTpete in Canada is the fact that the Canadian govern ment is now paying a bounty to the steel manufacturers of that country, and this supplies another form of competition which the American manufacturer must meet if he attempts to sell his steel rails in Canada.
Thus the American steel-rail manufacturer, if he desires to establish a market for his product in Mexico, must compete with the cheap labor of Europe and the still cheaper labor of Mexico ; and if he desires to sell his product in Canada he must com- pete with the cheap labor of Europe, plus the bounty paid to domestic manufacturers by the Canadian government. Unless he does make his prices to meet those conditions in the two coun- tries lying alongside of the United States he must abandon the hope of ever establishing in those countries a market for any of his products. Under these conditions it is not surprising that he should find it good business policy to temporarily relinquish his profits for the sake of establishing or holding markets in coun- tries at his very door, and also that he should at times dispose of his surplus stock in those markets at cost or even less, for the sake of keeping his works running and his workmen employed, rather than to reduce his working force and permit his machinery to de- teriorate by so reducing his product as to make it only equal to the home demand.
To put it in a single sentence: It is apparent, first, that the prices charged in the home markets are not excessive, else the railroads would establish their own works for the manufacture of rails ; and, second, that if American manufacturers are to sell their rails abroad they must put them at a price at which they can meet European competition and cheap labor competition in Mexico, and at which they can also meet European competition, plus domestic bounties in Canada.
In general terms it may be said that the sales abroad of steel rails and of other classes of iron and steel at less than domestic prices are exceptional and only made under exceptional condi- tions, either .for the purpose of gaining new trade, just as is done thousands of times every year in many lines of trade at home,
THE TABTFF. 25
or for the purpose of disposing of surplus stock and thus keeping irills running at fuil rates and giving full employment to labor a|id the low prices of product which full working capacity ren- ders possible.
[ On this subject Mr. James M. Swank, general manager of tie American Iron and Steel Association, a high authority, the accuracy of whose statements is never called* in question, in a letter to Hon. John Dalzell in February, 1902, made the following statement: •
/ "With regard to the prices at which our iron and steel products have been sold abroad it can be said with entire frankness that, \rhile there have been some sales made at lower prices than have been charged to domestic consumers, the large majority of the sales have been made at the same prices' as have been obtained at home or at even higher prices. When lower prices have been charged the inducement to do this has been to dispose of a sur- plus, as during the yea"rs of depression following the panic of 1893 or during the reactionary year 1900, or to secure entrance into a desirable foreign market, or to retain a foothold in a foreign mar- ket that has already yielded profitable returns. These reasons for the occasional cutting of prices require no defense. They are akin to the reasons which daily govern sales of manufactured and all other products in domestic markets.
"Even in years of prosperity it sometimes happens that a roll- ing mill or steel works, when running to its full capacity, produces a surplus of its' products beyond the immediate wants of its custo- mers or of the general market. If this surplus can be sold abroad, even at prices below current quotations, it is better to do this than to reduce production by stopping the rolling mill or steel works for a few days' or even for one day. The men would not only lose their wages during the stoppage but the manufacturers would lose in many ways. As one incident of the stoppage the home con- sumers of their products could not be supplied so cheaply as when the plants are running full. A moment's' reflection will convince any candid man that the manufacturing establishment that is not kept constantly employed, whether it produces iron and steel, or cotton goods, or woolen goods, or pottery, or glassware, or any other articles, can not be operated so economically for its owners' or so beneficially for its customers as the establishment that is kept running six days in the week and every week in the year.
"It should also be remembered that our tariff legislation for at least a generation has encouraged our manufacturers to seek foreign markets by remitting nearly all of the duties levied on im- ported raw materials when these raw materials enter into the manufacture of exported finished products. Under the operation of this drawback system our iron and steel manufacturers have been able to manufacture their products intended for foreign mar- kets at a much lower cost than they could supply similar products to home consumers. The London Engineering for January 17, this year, says of this drawback system: 'A certain amount of trade is brought into the country that would otherwise be missed and no one loses anything.' It might have added that the raw materials we import and subsequently export in the form of finished prod- ucts furnish employment to thousands of American workmen."
Effect of Protection on Export Trade.
One of the assertions made and offered as an argument against protection is that high tariffs established by a country lead other countries to discriminate against the products of that protection country and exclude them from their markets, either by adverse legislation or otherwise. Let us see about this. "The proof of the pudding is in the eating." The proof of the effect of pro- tective tariffs upon the export trade of the countries having such protection is found in the measure of the actual growth of their exports as compared with the growth of countries not having a protective tariff and offering in the world's markets the same class of goods as those offered by the protection country. The United States Bureau of Statistics has recently published a Sta- tistical Abstract of the World, which gives the exports of do- mestic products by each of the principal countries of the world during a long term of years. It is easy, then, to compare the growth in exports by the countries having a protective tariff with that of the single remaining nonprotected country — the United Kingdom. The two most strongly marked examples of protec- tive tariff countries are Germany and the United States, and the chief free-trade country of the world is the United Kingdom. These three countries are also especially suitable for contrast in the effects of their respective tariff policies upon their export trade by reason of the fact that they are the chief competitors for the great markets of the world and the only- countries of the world whose annual exports reach or pass the billion dollar line, each of these countries exporting annually more than one billion dollars' worth of merchandise, while no other country of the world
26 THE TARIFF.
has ever exported so much as one billion dollars' value of domestic products in a single year. Let us see, then, what the effect of pre- tention has beep upon sales abroad by the United States aid Germany, the world's most conspicuous examples of protectiv- tarilT countries, as compared with the effect of free trade upai exports from the United Kingdom, the world's most marked ex- ample of low-tariff countries. The Statistical Abstract, above re- ferred to, compiled from the official figures of the countries to question and issued by the Bureau of Statistics, shows that the exports of domestic products from free-trade United Kingdom grew from 1,085 million dollars in 1880 to 1,380 millions in 1902, an increase of 28 per cent; while those from protection Ger- many grew from 688 millions in 1880 to 1,113 millions in 1902, an increase of 62 per cent; and those from protection United States grew from 824 millions in 1880 to 1,355 millions in 1902, an increase of 64 per cent. In other words, exports from the world's greatest example of free trade — the United Kingdom — increased 28 per cent in 22 years ; those from protection Germany increased 62 per cent, and those from protection United States in- creased 64 per cent in the same period. This certainly does not justify the assertion that other countries discriminate against and reject the merchandise of the country having protective tariff laws and favor that of countries having free trade.
While of course the general law of supply and demand in- fluences in a greater or les^ degree the volume of exports from year to year, the experiences above cited are sufficient to clearly indicate that the existence of a protective duty on imports does not result in an exclusion of our exports by other countries, since our exports have increased enormously during the operation of protective tariff laws.
EXPORTS UNDER THE UNITED STATES TARIFF.
Another and even more striking illustration of*the growth of exports under low tariff and protection, respectively, is found in a study of the detailed history of the tariffs and export trade of the United" Stages. The only protective tariffs which the United States had prior to 1861 operated during the years 1813-16, 1825-33, and 1843-46, an aggregate of 17 years prior to 1861. Since that time protective tariffs have covered the years 1861-94 and 1897-1903, making the total of the period covered by protective tariffs 58 years, against 57 years of low tariff, counting the forma- tive period from 1790 to 1812 as low tariff. Thus the history of the United States under the Constitution is about evenly divided between protective tariff and low tariff. Now, let us see the result in its effect upon our exports during those two great periods of protection and low tariff — 58 years of protection and 57 years of low tariff. During the 57 years of low tariff the imports ei ceeded the exports by $514,954,931 ; during the 58 years of pr* tective tariffs the exports exceeded the imports by $4,099,026,861. These statements are compiled from official reports of the United States Bureau of Statistics, and their accuracy can not be called into question. During 57 years of low tariffs imports ex- ceeded exports by 514 million dollars ; during 58 years of pro- tection exports exceeded imports by 4,099 millions. Does this look as though protective tariffs had the effect of reducing or de- stroying the export trade?
To sum up these official statements of exportation under low tariffs and protective tariffs — the statements being in every case from the official' records of the country in question — it may be said that exports from the United Kingdom under free trade in- creased 28 per cent from 1880 to 1902; while those from Ger- many and the United^ States, under protection, increased 62 per cent and 64 per cent, respectively, in the same period, and that in the history of the United States, under the present form of government, 57 years of free trade gave an excess of imports over exports amounting to 514 million dollars, and 58 years of pro- tection gave an excess of exports over imports amounting to 4,099 million dollars. This is the practical test, the "proof of the pudd- ing in the eating," and should put an end forever to the assertion that protection destroys or injures the foreign markets of the country adopting it. Of the 57 years of low tariff, 47 show an
1
THE TARIFF. 27
etcess of imports over exports, while of the 58 years of protective tariff, 33 show an excess of exports over imports. A table printed on page 62, compiled from the official reports of the Treasury Department and the Department of Commerce and Labor, shows t^e years in which low and protective tariffs, respectively, were in operation, and the excess of imports or exports in each year, also the total excess of exports under low and protective tariffs, respectively.
Ia There Danger of European Combinations Against the United States on Account of Our Tariff?
Statements have been made from time to time that European countries were likely, by reason of the high protective tariff in the United States, to enter into an agreement for the exclusion of our products from their markets. This assertion has been made over and over again for years, but more especially in comparatively recent years. But such action seems highly improbable, for the following reasons: 1. The countries in which these threats of retaliation are most frequently heard are themselves, in all cases except the United Kingdom, protective-tariff countries, and it is unlikely that they would seriously and through official action complain of a protective tariff established in any other country. 2. The European countries can not afford to exclude our staple products, which are required in such large quantities by their people and which would advance in price in their markets if the supply from the world's largest producer were cut off. 3. The exclusion of these necessary products from the United States would necessitate their importation from other countries, and by re- ducing the supplies in these other countries would make markets for our products in those countries drawn upon or in other coun- tries from which they had been accustomed to draw their sup- plies. 4. Experiments of this kind for the exclusion of our meats from certain European countries have not resulted in a reduction of our total exports of meats and other provisions. 5. The countries which have complained most bitterly of the tariff of the United States have steadily and rapidly increased their impor- tations of our products meantime. 6. During the very period in which the talk of exclusion from European cqgnt^ajgs^f Amer- ican manufactures have been made, our exports of manufactures to those countries have most rapidly increased.
As to the first proposition, it is from the European countries that the threats of retaliation against the protective-tariff laws of the United States are most frequently heard. Yet all of the leading countries of Europe, with the exception of the United Kingdom, have within comparatively recent years adopted pro- tective-tariff systems and in most cases are now increasing or proposing to increase their rates of duty for the avowed pur- pose of making their tariffs more thoroughly protective. In the case of the United Kingdom, the only European country of im- portance not having a protective tariff, the adoption of a pro- tective system is being strongly urged. It seems highly improb- able that a country officially adopting a tariff system with the explicit purpose of protecting its own industries would complain of like action on the part of any other country, even if the rates which that country imposes were higher than those which it imposes.
RETALIATION A BOOMERANG.
The European countries in question are large consumers of the great products of the United States — cotton, wheat, corn, meats, and other forms of provisions — as well as of manufactures. The United States is the world's largest producer of every one of these articles. She produces three-fourths of the cotton of the world; three-fourths of its corn; three-fifths of the wheat entering the European markets from extra-European countries; and; two- fifths of the meats which enter into international commerce. The European countries, with possibly one or two exceptions, do not produce a sufficient supply of these articles for their respective home markets'. They must buy them in large quantities from some other part of the world. One important effect of excluding from their markets the products of the worfa's principal source of these various articles must be to increase in their home mar- kets the prices of those articles. If through concerted action by these countries three-fourths of the world's supply of cotton (pro-
28 THE TARIFF.
I
duced in the United States) were excluded from tbeir markets naturally tho price for the remaining one-fourth of the world's cotton, wherever produced, would advance greatly, and this prn- ciple would apply in the exclusion of any <>f the great produces of which the United States exports a sufficiently large percentile to make absence of its product a factor in determining prices. Imagine the effect upon the price of wheat if three-fifths of the extra-European supply for European markets were destroyed in a single hour or day. Imagine the effect upon prices of meats if 40 per cent of the world's available supply for the internatioiial trade were wiped out of existence. Note the effect upon the price of cotton due to a small shortage in the crop of the United States last year, and consider what would be the effect if all of the cotton supply of the United States— three-fourths of that which the world produces — were shut out of the markets demanding that cotton.
Even if certain countries were to exclude the great products of the United States from their markets they would be com- pelled to draw their supply from some other country or countries, and the products of the United States would find her markets in those countries thus drawn upon or in the countries to which they had formerly furnished their surplus. The world's pro- duction of the requirements of man — cotton, corn, wheat, pro- visions— is no more than the quantity required by the various parts of the world which are now brought into such close com- mercial relationship by reason of cheap transportation, and if through the exclusion of our products from certain countries the products of other countries were drawn upon to supply those mar- kets our products would in turn find a sale in the other parts of the world thus affected by that change in supply. These great requirements of man for food and clothing, demanded as they are in, every part of the world, and easily transported to any given spot, like water, seek their level, and the exclusion of our pro- ducts from one country or group of countries would simply result in their finding markets in the spot from which those consuming countries might draw their supply.
RESULTS OF EXPERIMENTS IN RETALIATION.
Certain experiments in the exclusion or attempt to exclude American products have been made in European countries during the past twenty years, and the effect of those experiments upon our sales of the articles in question is worth noting. Beginning about twenty years ago certain of the European countries began the ex- clusion of certain classes of meats from the United States, charg- ing that they were dangerous to public health by reason of the presence of trachinaB in hogs, Texas fever and other diseases in cattle, and upon other but somewhat similar grounds. These rul- ings or legislation against American meats extended from country to country upon various pretexts during a series of years down to a very recent date, proving in each case more or less a barrier against the meat products of the United States. They resulted in some cases in more stringent export regulations by the United States', and in some cases in a modification of! the legislation or regulations in the country of importation, and the net result has been a steady growth in the exportation of provisions from the United States during the very period in question. The total value of provisions and animals for food exported from the United States in 1880, the approximate date at which this adverse move- ment against provisions from the United States began, was 130 million dollars, and 235 millions in 1902, a growth of more than 100 million dollars in exports of provisions and live animals for food purposes during the very period in question, and a very large proportion of this growth was in exports of those articles to European countries.
Another evidence of the indisposition of other countries to at- tempt to exclude the required products of the United States from their markets is found in the fact that although a dozen of the great countries of the world simultaneously protested against the Dingley tariff act, no one of those countries excluded any of the products of the United States following the enactment of that law or even reduced by a single dollar the value of their pur- chases from this country. These protests, while not a joint action, and while relating in some cases to different features of
THE TARIFF. 29
the act from those complained of by other protesting countries, were practically simultaneous, and as the passage of the act with- out recognition of their protest was a simultaneous rejection by the United States of those protests, the occurrence offered to them a special and unique opportunity for combined action in ex- cluding our products from their markets. Yet not a single one of those countries took such action, and in no case did they reduce their purchases from the United States. On the contrary, our exports to every one of the 12 countries have increased.- Our exports to the 12 countries which protested against the act in question were in 1896 $618,688,000, and in 1903 $925,447,000, an increase of 50 per cent as compared with 1896, the year prior to that in which these protests were made. (See table of countries protesting against Dingley law, and exports to them, page 30.)
Even in manufactures, of which the European countries are large producers, and against which they have most vigorously protested, our exports to those countries have steadily grown during the years in which threats of exclusion have been most frequently made. Expressions of hostility to manufactures from the United States and threats of legislation or rulings to bring about their exclusion have been most strongly marked during the short period since 1895. Yet in that period exports of manu- factures from the United States to Europe, the very section of the world from which these threats of exclusion came, have doubled, our total manufactures exported to Europe in 1896 being $96,- 961,020, and in 1902, $197,572,992, while those of the fiscal year 1904 exceed 200 million dollars.
• Besides, the complete power of the United States to pro- tect itself against retaliation must not be overlooked. The only countries from which there could be any possibility of danger are the leading industrial and commercial nations of Europe. Their policy is protective, so is ours. But if they are compelled to buy largely of our products from necessity, we buy largely of theirs from choice. We are among their best customers. Our imports in 1903 were from Germany, $119,772,511; from France, $77,285,239; from Austria-Hungary, $10,569,929; from Belgium, $22,567,337; from Italy, $36,246,412; from the Netherlands, $22,- 868,978. What they buy of us are necessaries; what we buy of them are chiefly luxuries. If they were to proscribe our products we could more easily proscribe theirs. So long as we maintain the protective policy we can defend ourselves; the more we ad vance towards free trade the fewer weapons of defense we hold.
Thus, both the logic of the situation and our actual experience with adverse legislation and threats of such legislation fail to justify the assertion that our products of any class are being ex- cluded or are likely to be excluded from the markets of other countries by reason of our protective tariff.
TRADE OF THE UNITED STATES WITH COUNTRIES PROTESTING AGAINST THE DINGLEY TARIFF ACT.
The table which follows shows the trade of the United States with each of the 12 countries which protested against the Ding- ley tariff act during its pendency in Congress in 1897. The figures cover the period from 1896, the year prior to the enact- ment of that law, to and including the fiscal year 1903. It will be seen that the exports to each of the countries have increased. This record is deemed important in its bearing upon the claim that other countries are likely to reduce their imports from the United States by reason of the protective tariff. In this case, 12 leading commercial countries of the world had almost simul- taneously protested against certain features of this act, not all of them against any single feature, but each of them had made a protest ; yet the act was passed in the original form without modification so far as related to the features referred to in the protests, and instead of a reduction in exports to those countries there, has been a steady increase in all cases, and the total expor- tation from 'the United States in 1903 to the 12 countries in ques- tion was $953,585,567. as against $618,687,429 in 1896, having thus increased $335,898,138, or 54 per cent, over the exports to those countries in 1896.
30
THE TARrFF.
EctporU from the United States to the countries which protested against the Dingley tariff 1>M, showing Increase in ewporU after enactment of the law.
|
Count ri.'s. |
Year ending June 30— |
|||
|
1896. |
1897. |
1898. |
1899. |
|
|
United Kingdom |
$405,741,339 97.897.197 * 39,022.899 27,070.625 19,143,606 7,689.685 6,557,448 6,921.933 5.979.046 2.439,651 191,046 32.954 |
$483,270,398 125,246.088 » 51,045.011 33.071,555 21.502.423 13,255.478 10.194.857 11,924.933 6,384.984 4,023.011 110.763 70,871 |
$540,940,605 155.039,927 64.274,524 47,619,201 23.290,858 20,385,041 12,697,421 9,992,894 6,429,070 5,697,912 127,559 263,970 |
$511,778,705 |
|
Germany |
155.772,179 |
|||
|
Netherlands |
79,305,998 |
|||
|
Belgium |
44.158,03:? |
|||
|
Italy |
25,034,940 |
|||
|
Japan |
17,264.688 |
|||
|
Denmark |
16,605, H2H |
|||
|
14,493 440 |
||||
|
Argentina |
9,563,510 |
|||
|
Austria-Hungary |
7.378,935 |
|||
|
Greece |
213.507 |
|||
|
Switzerland. |
267,732 |
|||
|
Total to countries |
618,687,429 |
760,099.827 |
886.159,527 |
881,837.495 |
|
Countries. |
Year ending June 30— |
|||
|
1900. |
1901. |
1902. |
1903. |
|
|
United Kingdom |
$533,819,545 187.347,889 89,386,676 48,307,011 33,256,620 29,087,475 18,487,991 15,259,167 11.558.237 7,046,819 290,709 250,447 |
$631,177,157 191,780,427 84.356.318 49,389,259 34,473,189 19,000,640 16.175,235 10.405,834 11,537.668 7.222.650 291.538 255,360 |
$548,548,477 173,148,280 75.123,135 46,271.756 31,388,135 21,485,883 15.464,622 24,722,906 9,801,804 6,167.127 305,950 217,515 |
$524,262,656 |
|
Germany |
193,841 636 |
|||
|
Netherlands |
78,245,419 |
|||
|
Belgium |
47 087 939 |
|||
|
Italy |
35,032 680 |
|||
|
Japan |
20.933 692 |
|||
|
16 157 583 |
||||
|
18 898 163 |
||||
|
11.437,570 7.156.688 330,844 205 697 |
||||
|
Austria-Hungary « |
||||
|
Switzerland |
||||
|
Total to countries |
974.098.616 |
1.056.065.279 |
942.645.590 |
953.585.567 |
Protective Tariff as a Revenue Producer.
In the matter of revenue the contrast between low and pro- tective tariffs is equally striking. In the 57 years of low tariff no less than-22 of the total showed an excess of expenditures over receipts by the Government; while in the 58 years of protective tariffs 44 of the total showed an excess of receipts over expendi- tures. Of the 14 years under protective tariffs in which the ex- penditures exceeded the revenues no less than nine were war periods, when, necessarily, expenditures exceeded receipts from ordinary sources, while in only two of the years in which deficits occurred under low tariffs could that deficiency be charged to war conditions. The war of 1812-14, the civil war, and the war with Spain all occurred during protective-tariff periods ; while the war with Mexico occurred during a low-tariff period. Excluding the war periods from consideration, it may be said that of the 55 years of peace, during which low tariffs were in operation, 20 years showed a deficit; while of the 49 years of peace, during which protective tariffs were in operation, only five showed a deficit.
Considering the entire history of the country, under the Con- stitution, but excluding the war years, it may be said that the revenues of the Government during low tariff periods fell $33,- 143,242 below expenditures, while under protection, still exclud- ing the war years from consideration, the revenues exceeded the expenditures by the enormous sum of $2,122,189,005.
To sum up in a single sentence the revenue records of low and protective tariffs, respectively, during years of peace, low tariffs showed a deficit in 20 out of the 55 peace years in which they were in operation, while protective tariffs showed a deficit in but 5 of the 49 peace years in which they were in operation, the low tariffs producing a total deficit during their entire 55 peace years of operation amounting to 33 million dollars, and the protective tariffs a surplus of 2,122 millions during the 49 years of peace in which they were in operation. "The proof of the pudding is in the eating." Fifty-five peace years of low tariff,
THE TARIFF. , 31
deficit, 33 million dollars; forty-nine peace years of protection, surplus, 2,122 millions. (For table of revenues under low and protective tariffs, respectively, see page 59.)
The Home Market.
The object of a protective tariff is to conserve and develop the home market for the home producer. By this is meant not merely the home manufacturer, but the home producer of every class, because of the development of each domestic industry through the prosperity of other domestic industries. While pri- marily protection in the United States looks especially to the de- velopment of the manufacturing industry, that development of the manufacturing industry in turn develops other industries. To produce the enormous supplies of manufactures required by our own people — the farm, the forest, the mine, and even the fisheries are called upon for material to aid in this work. Not only are all of these branches of industry thus developed by the mere calls upon them for material for use in manufacturing, but the millions of men and women engaged in manufacturing and other dependent industries through their prosperity and employment at good wages have the means with which to purchase and pay for these products. The manufactures of the country require from the farmer cotton, wool, hides, flax, hemp, the grain which is manufactured into flour, meal, etc., and the numerous other arti- cles of lesser importance ; they require the products of the mine, coal, iron, copper, zinc, tin, lead, nickel, gold and silver ; and they require of the products of the forest large supplies. These industries — manufactures, mining and forestry — employ more than six million people and pay them wages amounting to three bil- lions of dollars annually, which they in turn expend for the pro- ducts of the farm, the fisheries, the mines and the factories. Thus, under protection, each industry, through its activities, stimulates other industries, while those other stimulated industries, through the prosperity of the persons engaged in them, in turn become consumers and purchasers, thus developing and stimulating the production and prosperity of every occupation and industry of the country.
MUTUAL INTERDEPENDENCE THE KEYNOTE.
The interdependence of the great industries of the country and the dependence of each for its prosperity upon the success and prosperity of the others can better be realized when it is stated that of the 2,389 million dollars' worth of raw materials used by the manufacturers of the United States in 1900, no less than 1,941 million dollars' worth was the product of agriculture, and only 156 million dollars' worth of this was imported. These figures are from the official statements of the United States cen- sus and the Bureau of Statistics. Thus, 75 per cent of the raw material used by the manufacturing industries of the country is drawn from our own farms, the remainder being products of the mines and forests and miscellaneous imports. These figures indicate the interdependence of the great industries of the coun- try and the relation of the prosperity and activity, one by one, to the prosperity and activity of the other. This interdependence is especially shown by the figures which indicate the use of agri- cultural products in the manufacturing industries of the coun- try. As already indicated, 75 per cent of the raw materials used by the manufacturers of the United States are products of our own agriculture.
The total value of the farm products of the United States in 1900, according to the census of that year, was 3,764 million dollars, and the total value of agricultural products used in man- ufacturing was 1,940 millions. Of this 156 millions was im- ported and the remaining 1,785 million dollars' worth was drawn from our own farms. Thus, our own agricultural products used in the manufacturing establishments of the United States, ac- cording to the official figures of the census of 1900, actually amounted to more than one-half of the total value of the products of the farms' of the country in that year. When to this we add the enormous demands made upon the farmers for food supplies for the six million people employed by the manufacturers and in the other industries from which the manufacturers draw part of
32 THE TABIFP.
their material, the importance to the farmer of the prosperity of the manufacturers can scarcely be over-estimated.
Another class of consumers whose prosperity and therefore purchasing power depends greatly upon the activity of the manu- facturing interests is those engaged in transportation, while still another group is those engaged in trade. These two groups of people— those engaged in transportation and trade — numbered in 1900, according to the census of that year, 4,766,965 persons, or more than 16 per cent of those engaged in "gainful occupations" in that year.
THE WELFABE OF EACH THE WELFARE OF ALL.
The total number of persons engaged in "gainful occupations" in 1900, according to the census of that year, was 29,074,117. Of these, 10,381,765 were engaged in agriculture; 7,085,992 in manu- facturing and mechanical pursuits; and 4,766,964 in trade and transportation. Thus, of the 29 million people engaged in "gain- ful occupations" in the United States in 1900, 22 millions, or 76 per cent, of the total number, were engaged in agriculture, manufacturing, transportation and trade — all dependent for their activity upon the prosperity and activity of the manufacturing industries. On the other hand, the manufacturing industries were equally dependent for their success and for a home mar- ket for their products upon the prosperity of these three great groups engaged in agriculture, manufacturing, transportation, and trade. There remain in the census classification two other groups of people, viz, those engaged in domestic and personal services, 5,580,657, and those engaged in professional service, 1,258,739, and nobody can doubt that either of these great groups is equally dependent for its prosperity upon the prosperity of those engaged in agriculture, manufacturing, transportation, and trade, or that their prosperity as consumers is in turn important to the manu- facturer, the agriculturist, and those engaged in trade and trans- portation.
Thus the interdependence of the people and industries of a great nation such* as the United States, with its enormous area equal to that of all Europe, and with its variety of climate, soil and products of field, forest, mine and factory, fully justifies the application of the protective principle, which insures prosperity and activity to that great industry of manufacturing, which in turn contributes so greatly to the activity and prosperity of all other industries. -The gross value of the manufactures of the United States in 1900 was 13 billions of dollars, against less than four billions for products of the farm, and one billion dollars, pro- ducts of the mine. The number of persons employed in manufac- turing was 5% millions, and the sum paid to them as wages and salaries 2% billions of dollars, or more in a single year than the entire amount of money in circulation in the United States todry. Practically all of this sum, together with most of the seven bil- lions of dollars expended for materials used by the manufacturers, was distributed among the people of the United States, chiefly to the farmers whose products formed over 80 per cent of the value of the materials used, and who also supplied the food consumed by these five million employees, and in addition profited by the in- creased activity resulting in the other industries of mining, for- estry, transportation, and trade.
THE HOME MARKET THE GREATEST MARKET.
These great facts — the aid which each industry proves to other industries in a country which supplies practically all of the re- quirements of man, whether in manufacturing or for food, cloth- ing, heat, and light — make the home market of the United States the greatest market of the world. That -this home market in the United States far exceeds that offered in any other part of the world was shown by the chief of the Bureau of Statistics, Mr. O. P. Austin, in an address at Rochester, N. Y., on January 7, 1904, in which he said :
"The internal commerce of the United States was in 1900 20 billions of dollars. With this definite basis of 20 billions in 1900, and knowing what rapid development has occurred since that time, we may safely and conservatively put the internal commerce of the year 1903 at 22 billions of dollars, a sum which actually equaled the entire international commerce of the world in that
THE TARIFF. 33
year. Think of it, you producers and manufacturers, and merch- ants and traders and bankers and transporters, think of it! The market of our own country — the home market in which you can transport your goods from the door of the factory to the door of the consumer without breaking bulk a single time — is equal to the entire international commerce of the world."
This is the measure of the home market, of its value, and of its importance to every class of citizens, and indicates the im- portance of maintaining the system under which it has been de- veloped. Mr. Austin, in his remarks above quoted, showed also that this same home market had grown from only seven billions of dollars in 1870 to 22 billions in 1903, basing his estimate in both cases upon the figures of the United States census, having thus trebled in 33 years, while the international commerce of the world had only doubled during that same period of 33 years. Thus not only is the home market of the United States equal to the com- bined imports and exports of the world, but its growth is much more rapid than that of the markets offered in other countries.
Labor and Protective Tariff.
The importance to labor of the protective system and the activi- ties which develop under it can scarcely be overestimated. Of the 29 million people engaged in "gainful occupations" in 1900, 7 millions are directly dependent upon manufacturing and mechan- ical industries, and 4% millions upon trade and transportation, which are so closely associated with and affected by the activities of manufacturing. Practically one-half of the products of agricul- ture are, as indicated by the census, consumed by the manufactur- ing industries. Hence a large proportion of the 10 million persons engaged in agricultural pursuits are dependent for their prosperity upon the activities of the manufacturing industries, to say noth- of the 6^ millions engaged in professional, domestic, and personal service, whose employment must depend largely upon general prosperity in manufacturing and allied industries. It is not mere- ly the 2% billions of dollars paid as wages and salaries to the employees of the manufacturing establishments of the country, but the earnings of more than half of those engaged in "gainful occupations" which are affected by and dependent upon the pros- perity of the manufactures.
BANK DEPOSITS.
That labor has been prosperous under the improved condi- tions in the manufacturing industries since the enactment of the Dingley tariff law is evidenced by the fact that deposits in sav- ings banks alone, those depositories of the working people, widows, and orphans of the United States, grevv from 1,907 million dol- lars in 1896, the last year under the low tariff, to 2,935 millions in 1903, an increase of over 50 per cent. During the period in which low tariff was in existence or threatening the industries of the country — 1892 to 1897 — savings banks deposits increased but 154 million dollars; since 1897 savings bank deposits have in- creased under a protective tariff 99G million dollars — the increase under Democratic low tariff being less than 40 million dollars per annum, and under Republican protective tariff, 166 million dollars per annum. Another evidence of prosperity among the masses is found in the amount of life insurance policies in force in the United States. Life insurance is another form of savings, and in the aggregate of its outstanding policies is to be found an equally important index of the prosperity of the people of the United States. During the period of threatened or actual Democratic low tariff, from 1893 to 1897, the value of life insurance policies in the United States increased from 5,291 million dollars in 1893 to 6,326 millions in 1897, or an average of only 259 millions per annum. Since that time the increase under a Republican pro- tective tariff has been from 6,326 millions in 1897 to 10,508 millions in 1902, or at the rate of 836 millions per annum. Thus the value of life insurance policies in the United States increased in the four-year period of threatened or actual low tariff but 1,035 mil- lions, or 259 millions per annum, while from 1897 to 1902 the in- crease has been 4,182 millions, or 836 millions per annum, the rate of increase under a Republican protective tariff being more than three times as great as the annual rate of increase under Demo- cratic low tariff.
I Ml 1 \HQ-t .
INDUSTRIAL INSURANCE.
It may be objected that life insurance includes among Its patrons men oi' wealth, and this is true; though they form but a small proportion, of course, of the total. But it will be admitted that this is not true of the industrial insurance associations, Which collect their premiums in small weekly sums, and certainly their prosperity and activity may be accepted as a measure of the actual prosperity of the working men of the country or of those dependent upon the prosperity of the great in- dustries. The statistics of industrial insurance in force in the United States, as published by the Bureau of Statistics, and sup- plied by that distinguished insurance statistician, Mr. Frederick L. Hoffman, show the amount of policies of industrial insurance in force in the United States, in 1893, at $662,030,129; in 1897. $996,139,424, and in 1902 at $1,806,890,804. Thus during the period of threatened or actual low tariff the amount of industrial insurance in force increased by 334 millions, while since that time, <luring a period of protective tariff, the amount has increased 810 millions, the annual average rate of increase being, under Demo- cratic low tariff, 85 millions per annum, and under Republican protective tariff, 162 millions per annum. The actual number of industrial policies outstanding in 1893 was 5,751,514; in 1897, 8,005,384 ; and in 1902, 13,448,134. Thus the increase in the num- ber of policies outstanding during the threatened or actual low- tariff period was 2,258,870; and from 1897 to 1902, a period of Republican protective tariff, 5,442,740 — an average annual rate of increase in the number of policies outstanding of but 563,470 under a Democratic low tariff, and of 1,088,548 under a Republican pro- tective tariff.
CONDITION OF LABOR IN GREAT BRITAIN.
No class of merchandise imported into a country represents labor in so large a proportion as do manufactures. Under free trade free-trade United Kingdom imported in 1902 700 million dol- lars' worth of manufactured and partly manufactured goods. The best experts estimate that labor forms fully one-half of the value of manufactures, taken as a whole. Of course in certain articles, such as fine laces, labor forms much more than one-half of the value, while in certain other articles, such as jewelry of gold, silver, or diamonds, the material forms the larger part of the value, and the labor a comparatively small proportion of the value. Taking manufactures as a whole, however, of the general class imported into manufacturing countries such as the United Kingdom or the United States, conservative experts estimate that labor forms fully one-half of the value in each case. Accepting this estimate it appears that the United Kingdom under free trade is every year permitting 350 million dollars' worth of foreign labor to come into direct competition with the working men of that country. In no country in the world is labor so highly organized for its own protection as in England. Yet with all of its organization for self-protection among its own employers and its own people, it is submitting to the introduction and competition in its own market and at its own doors of the labor of other countries at the rate of 350 million dollars a year. During the last decade the value' of the manufactures imported into the United Kingdom amounted to six billions of dollars, one-half of which represented foreign labor thus brought into competition with the labor of Great Britain. Through the free admission to the markets of the United Kingdom during the past decade, the labor of other coun- tries has absorbed three billion dollars of English money, a large part of which otherwise might have been paid to the workingmen of that country. While the labor of Great Britain is organized very thoroughly and persistently protested against competitive em- ployment of British labor not a part of those organizations, it has until recently made no protest against the introduction of labor from*other parts of the world in the form of imported manufac- tures, and in the absence of such protest three billion dollars' worth of labor has in the last decade been brought into the United King- dom in competition with her own labor and her own manufactures, with the result that the growth of manufactures is small-com- pared with that in the protection countries, while the exports of manufactures have fallen off, and the imports of manufactures
THE TARIFF. 35
have increased. The effect of this competition of foreign laborwin the United Kingdom or protection from foreign labor in the United States is illustrated in the relative earnings of similar classes in like occupations in the two countries. The British Blue Book, which recently published the results of care- ful investigation upon this subject, gives the average weekly rates for 15 skilled trades in the large cities and in smaller cities and towns in the United Kingdom and the United States, respectively. These averages are made up from 141 quotations of wage rates in the United States, and 471 quotations in the United Kingdom. They show the average weekly rate of wages paid in 15 skilled trades in the great cities of the United Kingdom at $10.12 (42 shillings) ; in the great cities of the United States, $18.25 (75 shillings) ; in other cities and towns of the United Kingdom, $8.76 (36 shillings) ; and in the United States, $16.88 (69 s., 4 d.) In the large cities the rate of wages for occupations and trades similar to those in England is 80 per cent higher in the United States than in the United Kingdom, while in the smaller cities and towns the average was in the United States 93 per cent, higher than in the United Kingdom.
COLD FACTS ABOUT THE COST OF LIVING.
In reply to this stubborn fact that wages of labor in the United States are greatly in excess of those in free-trade England, the advocates of free trade have asserted that the cost of living in the United States is so much higher that no real advantage accrues to the American workman as compared with that of his fellow workman in free-trade England. This claim, however, can no longer be made in the face of statements repeatedly made in the report of the Moseley Labor Commission of Great Britain, which visited the United States in 1902. This Commission, headed by Mr. Albert Moseley, a distinguished manufacturer and phi- lanthropist of England, was composed of officers of the labor unions of that country. They visited the various manufacturing cities and establishments of the United States while in this country, which included about two months of 1902, and on their return each member of the Commission was required to submit a detailed report, accompanied by explicit statements in answer to certain questions which had been prepared by the head of the Commission. Among these questions were certain which related to the relative cost of living in the United States and in England, the relative wages, and whether or not the industrious, careful workingman could accumulate more money as the result of his labor in the United States than in Great Britain. Practically every one of the members of the Commission replied that the cost of living in the