Page images


REUNION OF THE UNITED STATES AND CANADA. Mr. Seward are held by Mr. Glen to be as valid toHE arguments for and against the political union

day as when published.

“ AN EQUAL, AN HONORABLE UNION.” and forcibly discussed in the American Journal of Mr. Glen proceeds to say that imperial federation, Politics by Hon. Francis Wayland Glen, ex-Member as a desirable and a practical solution of the future of the Canadian Parliament. Mr. Glen takes as his relation of the United States to Canada and the text Prof. Goldwin Smith's recent statement that British Empire, has no substantial support in the Dothe union of the two great English-speaking commu minion. A federation of the several branches of the nities who now occupy and control this country would Anglo-Saxon race with the United States left out is, drive war from the United States and change the he declares, not worth a moment's consideration, and whole country to peaceful industry and progress. It if attempted, in order to prolong Great Britain's conwould remove all internal customs lines and it would trol upon the continent, it will sooner or later lead to make the St. Lawrence, the fisheries and all questions a war for the complete supremacy of the Republic in which are now the subject of dispute, the undisputed North America. Unrestricted reciprocity and comheritage of all.” Mr. Glen maintains that Professor mercial union as a settlement of the question are Smith's conclusions cannot be successfully disputed, passed over as “unsubstantial dreams” so long as and he urges that the subject should be discussed in Canada remains a British dependency, and independa liberal, kindly spirit on both sides of the boundary ence for Canada is considered practical only as a preline, fully convinced that union can only be accom liminary step toward continental union. Mr. Glen plished peacefully under full, free and public discus states as a result of his personal observation. covering sion in the press and upon the public platform in both a period of forty years, that the Canadian people are countries.

steadily becoming less English and more American MANY CANADIANS DESIRE POLITICAL UNION. in their habits, customs, sentiment, spirit. aspiraWe are assured by Mr. Glen that there are many

tions, institutions and legislation, and he makes the Canadians who earnestly desire to see political union

surprising statement that nearly one million nativepeacefully consummated and who are quite willing

born Canadians, or one-fourth of all living Canadians and ready to make personal sacrifices to promote and

in the world, have become residents of the United secure it, but these persons “ need and deserve a pub

States. “If,” says Mr. Glen, “ imperial federation, lic declaration of assurance in unmistakable terms

unrestricted reciprocity, commercial union, indefrom a large, non-partisan organized body of Ameri- pendence, status quo and “an equal and honorable can people, representative of public opinion in this

union' with the United States were offered to the country, that when they have educated and prepared

people of Canada for acceptance or rejection through a majority of the Canadian people to desire and seek

the ballot box, and after calm and free discussion in reunion, Canada will be gradually received upon

the press and upon the public platform a majority of terms just and generous into an equal and honorable

the electorate would decide in favor of an 'equal and union." Especial emphasis is given to the fact that

honorable re-union' with our neighbors upon this union with Canada will prevent the causes most likely

continent,” and “if,” he continues, “ continental to involve this country in a serious conflict with

union is, as has been sent forth, one of the most imGreat Britain and will make it possible to create and

portant questions before the people of the United establish a moral union between America and the

States and Canada, and its consummation will secure motherland. This he believes to be of far more im

beneficent results to both of the great communities portance to the several branches of the English-speak- involved, there is not any valid reason why the more ing race throughout the world than all the commercial

numerous and powerful people should not publicly and financial advantages to flow from it to the people

declare their willingness to accept it as a final and of North America. He does not regard as serious the

peaceful solution of their relations with the less objection raised that under such an arrangement

numerous and therefore less powerful people, nor is there would naturally be a solid Canadian vote. The

there any reason why either community should not late Secretary Seward, as long ago as 1867, declared

use all lawful, peaceful and honorable means to that the interest of the English maritime provinces

hasten its consummation. would always be with those of the Atlantic States ;

SUBMIT THIS RESOLUTION. that those of the great central Protestant State of “If a large non-partisan organized body of AmeriOntario would be with that of New York and Ohio ; can citizens, fairly representing those who create, that the interest of British Columbia would be with control, and direct public opinion, should adopt and our Pacific States and that of any States organized publish as an expression of public sentiment in this between Ontario and the Rocky Mountains would be country a resolution similar to the following, it could with our Northwestern States. These conclusions of not wound the feelings of the Canadian people, or

[ocr errors]

justly offend them, but would certainly hasten a solu to yield a revenue, in which case the consumer-i. e., tion of our relations to that great Anglo-Saxon com the preacher--would at first pay the whole duty." munity.

THE INCIDENCE VARIES. * Resolved, That we believe that the political reunion of the two great English-speaking communities,

“The incidence of the duty,” continues Mr. Gunwho now occupy and control North America, will de

ton, “ varies greatly in every tariff list. The best liver the continent from the scourge of war and dedi

means of arriving at it is first to ascertain the rate of cate it to the arts of peace, lessen the per capita cost

the duty from the statute ; then take the last volume of government and defense, insure the rapid develop and find out whether the article is one whose imports

of our official reports of commerce, immigration, etc., ment of its unlimited natural resources, enlarge its domestic and foreign commerce, protect and preserve

dominate over its exports, or vice versa. If it is one of its wealth, resources, privileges and opportunities, as

insignificant import and large export, then the price in the undisputed heritage of all, and promote, extend

this country averages lower than abroad, and its and perpetuate government by the people. We there

major flow is outward. If it is one of large import fore invite the Canadian people to cast in their lot

and little or no export, its price abroad averages with their own continent, and assure them that they

lower than here, and its average flow is inward. Then shall have all that the continent can give them. We

take the census of other statistics of domestic producwill respect their freedom of action, and welcome

tion, and by their aid compare the quantity of the imthem, when they desire it, into an equal and honor

portation with the quantity of the domestic producable union."

tion. If the importation is insignificant, the export

large, and the domestic product is ten to twenty times THE INCIDENCE OF TARIFF TAXATION. larger than either, a strong presumption arises that N the Social Economist, the editor, Mr. George

the domestic production is the controlling factor in fixing the price, and that the cost per unit of product

is lower here than abroad. In such a case, no duty as to "who pays a tariff duty ; in what instances

on the importation can be very potential over the is it added to the price paid for a commodity by the

price. If, as in the case of crude sugar, our importaconsumer, and in what instances is it deducted from the price received for the commodity by foreign pro

tion is eleven times as great as our product, the flow

is inward and the tariff is a tax to the full amount of ducers." Mr. Gunton clears the field by pointing out that each commodity affected by a tariff tax differs

the duty. Upon crude sugar brought from Cuba, the from every other commodity in the tariff schedule in

American consumer (or refiner) pays the whole duty.

Upon coal from Nova Scotia, he usually pays no part the mode in which the duty will affect the price. If,

of it. Hence a duty on sugar is protective, on coal he explains, the article be producible only abroad

purely for revenue." and must be imported, and if the demand for it will

From these illustrations Mr. Gunton concludes that compel its importation, as in the case of tea, coffee, unrefined sugar and tropical fruits, the whole duty

the question whether a duty is protective, or produces will be added to the price, but if it has been more

revenue, depends upon facts extrinsic to the law and

growing out of prices and productions. “The prelargely and cheaply produced here than elsewhere,

tense, therefore, that a statute can be constitutional like hay, potatoes and grain, the duty will not affect the price in the least. The tariff is merely the dam,

one day and unconstitutional the next, according as and, like a dam, it can only raise a level where it

some American may or may not produce a product crosses the flow of a vigorous commercial current.

which competes with that on which the duty rests,

would be too absurd to be voted for, if all men underThe whole nomenclature of the tariff discussion and

stood the tariff question as well as they do their prithe terms used in party platforms on both sides to

vate business. A duty of fifty cents per pound on tea define the nature of a tariff, such as · tariff for rev

levied to-day would be wholly a revenue duty. Thereenue’and 'protective tariffs,' fall speedily into a mud

fore, says a party platform, it is constitutional. dle in any attempt to apply them to actual cases, be

But to-morrow, owing to the duty, some planter because these terms assume a uniformity in the effect

gins to produce it. Lo! instantly the duty, according of duties when applied over many articles and in each

to the same platform, has become protective, and is article over long periods of time when any uniformity

therefore unconstitutional. Perhaps the producer can exist as to either."

who thus changes a statute from constitutionality to The following illustration is given to show when a

unconstitutionality is a Chinaman or a tribal Indian, tariff may be considered protective and when “ for

who has not even a vote. Such a view of unconstiturevenue : ” “ If a duty were imposed on the impor

tionality is itself unconstitutional in that it makes tation of wooden idols into an idolatrous country, of

constitutionality of a statute to turn upon facts outsmall constructive skill, the duty might yield a heavy

side of the statute itself.” Imposed by the United States it might be a dead letter, as none might seek importation. But

A GENUINE TARIFF FOR REVENUE. if clergymen began to use them in illustration of their In the editorial “Crucible" of the Social Economist, sermons on the heathen, an importation into the Mr. Gunton comments on the New York Sun's interUnited States of the wooden idols would begin, and pretation of what is meant by a genuine tariff for a specific duty on them of fifty cents each might begin revenue, that paper holding that such a tariff is one


“ levied alike upon all articles imported whether they bill that taxation can be laid not for revenue, a public are produced in the taxing country or not.” Mr. purpose, but solely for private interests, to kill comGunton's reply is that a genuine tariff for revenue petition, encourage trusts and cut off revenue. only must be lovied so as to yield revenue without “The country deliberately-emphatically-said in any incidental protection to anybody. There are

1890 and 1992 that the Democratic policy was right only two methods of levying a genuine tariff for rev in principle and would be beneficial in its résults. It enue only, neither of which form any part of Mr. Wil is hardly conceivable that its mature judgment, son's haphazard bill or Mr. Dana's horizontal thirty twice expressed, was wholly wrong. It certainly is five per cent. scheme. One is to confine the duties no proof of this that a great business depression has exclusively to non-competing products and the other come under another tariff policy, which by the same is to levy the same duty upon home products as judgment the country condemned and ordered to be is levied for foreign products. Any pretended tariff repealed." for revenue only which does not adopt one or both of these conditions is a veritable sham born of ignorance


N the Forum, Representative William J. Coombs,

of New York, outlines and discusses the plan for THE DEMOCRATIC TARIFF POLICY.

revising the tariff which he introduced in the House

of Representatives during the recent extra session. N the opening article in the North American Re

Mr. Coombs' plan is based upon the principle that

taxes upon the people should not be in excess of the that the recent business depression was due to Re

necessities of the government, and to this end propublican legislation rather than to impending Demo

vision is made for automatically adjusting the revenue cratic legislation. After several pages of argument

derived from the tariff so as to supplement that in support of this belief, Mr. Russell explains, as he

yielded from other sources of taxation. Mr. Coombs understands it, the tariff policy of the Democratic

would first ascertain what the requirements of the party. He says: “This policy is a revenue tariff

government are, and by deducting from that sum the with a reduction of duty to cheapen the necessaries

estimated amount receivable from all other resources, of life and to give free raw materials to our indus

find the amount necessary to be raised on imports. tries. This it has declared in State and national platforms, formulated in bills and voted for in Con


COMMERCE. gress. This it is pledged to give in its new bill, which means free wool, coal, iron ore and other raw The difficulty of Mr. Coombs' plan would be how materials and fair and proper reduction on finished to levy the impost without disturbing the commercial products. The Democratic party says that every interest of the country. “Of course," he says, “ if reason which made hides free demands that wool be all articles could by their nature pay the same rate of free, and it proposes to act upon this belief. The import duty, the problem could easily be solved by great advantage of free silk to the silk industry, of fixing the percentage necessary upon the estimated free rags to the paper industry, of free hides to the amounts of imports. But all articles do not stand boot and shoe and leather industries, can and ought upon the same basis, and hence such a course would to be extended to other industries as a benefit not work great hardship. This consideration led to the only to all the people as consumers, but to the indus suggestion of various schedules which should not tries themselves, giving them a larger market here share in the uniform rate of duty. The first was the and a better chance to send their products into for free-list, toward the making of which the people have eign markets.

assisted Congress by their declarations at the last two

elections, that all raw material necessary to the manuA REVENUE TARIFF AND FREE RAW MATERIAL,

facture of goods should be admitted free of duty. “ This is the policy of the Democratic party as de The second schedule would embrace partially manuclared in its platforms, formulated in its measures factured raw material such as must be used again in and supported by its votes. It advocates a revenue manufacture, and upon which the duty, even under tariff, remembering that revenue has been the the McKinley tariff, does not exceed ten or fifteen per basis of every tariff, even our war tariff, until 1888, cent. Since it would be manifestly unfair to those when another principle, controlling the Republi- who pay internal revenue taxes to place them in the can party, supplanted it and found expression in same schedule as those manufacturers who are not the McKinley bill. It believes that a tariff which burdened with that tax, the articles on which an ingives free raw materials and cheaper necessaries of ternal tax is levied, which are few in number, conlife, and which is required to raise a revenue of sisting chiefly of wines, spirits, cigars and tobacco, nearly two hundred million dollars, is a conserva should pay a rate of duty which will bring a good tive measure and a benefit to industries as well revenue over and above the amount of the internal as to the people. It does not believe in tariff tax revenue on them." ation which has for its purpose and result taking Having eliminated all the foregoing class of articles from one to give to another, or burdening all to en from the list of importations, Mr. Coombs thinks that rich the few. It opposes the principle of the McKinley the remaining classes would not suffer by being sub



jected to a uniform rate of ad valorem duty sufficient THE SOUTH FOR A PROTECTIVE TARIFF IN 1896 to meet the requirements of the government. This rate,

R. GUY C. SIBLEY, writing in the American he thinks, could be changed year by year as the sum

Journal of Politics, considers that it will not of the necessary revenue required. The main objec

be a difficult matter to enlist the sympathy and votes tion to this arrangement is that it would subject the

of the South for a protective tariff. He says that the importation of the unspecified classes every year to a effect of the financial panic upon the newly developed varying rate of duty ; but Mr. Coombs holds that

industries of the South has made her ready and willupon all goods to which the variable duty would ap

ing to go back and take up the protective tariff where ply it presents an obstacle no greater than the ordi

she dropped it in 1856, and declares that if once the nary fluctuations which merchants have to confront

federal election law is repealed, and the pension laws every year. In order to ascertain how great this

are modified and the North will assure and convince fluctuation would be, he has examined the estimates

the South that they shall remain repealed and modiand expenditure of the government for three years in fied, the South will be open for a discussion of the which there were the ordinary fluctuations, and

tariff. * Why should the South passively adhere to the finds that in no two years was there a difference of free trade heresy ? She is only at the outer portals of a more than 5 per cent. He further estimates that in temple of commercial wealth more substantial in its years of ordinary expenditure the duty necessary to magnificent proportions than any earthly king has be levied on the unspecified list would not be far reared. She can manufacture more and produce it from 35 per cent., and believes that this rate of duty, cheaper than the older iron and coal States of the North with the additional benefit derived from free raw and West. Her coal is inexhaustible, and some of material, would doubtless prevent the foreign com the largest deposits are nearer to tide water than any petitors from unloading their surplus upon our own deposits in the world, except those in England. She markets.

is beginning to develop only the outer edge of im

mense timber forests, and is successfully competing NECESSITY FOR IMMEDIATE TARIFF REDUCTION. with Canada in the Northern and Western markets. LSO in the brum, Mr. A. Augustus Healey

HER INDUSTRIES NEED PROTECTION. argues for “Immediate Tariff Reduction."

“Her orange crops are increasing every year, and There is in delay, he holds, serious danger, not only her sugar and rice plantations, under the system of to business, but to tariff reform itself. He thinks, protection, are increasing in area. With such prosmoreover, that the financial panic through which we pects in view, and while she is on the very threshold have just passed has furnished us an opportunity for of prosperity, shall we now turn back, close her iron putting a new tariff into effect with the least possible and coal mines, shut down her factories, cut down displacement and loss.

her orange groves, relegate her vast timber forests to A new law reducing the tariff should, he holds, not decay and fire, and leave her sugar cane and rice only be passed, but should be made to take effect im fields to grow up in weeds? In 1843 Horace Greeley mediately, and for this reason : The business world laid down five distinct propositions applicable to the has known for a year that the tariff was to be revised protective system. Those principles are as sound toand substantially reduced. Just what shape the re day, in theory, as they were then. Under the pracvision would eventually take has not been known. tical test of more than thirty years they are simply There is warrant for the inference that raw materials impregnable. They are especially adapted to the will be made free of duty, accompanied by a system present condition of the Southern States. Mr. Greeley of graduated rates on manufactured articles, some submitted the following : First proposition—'A nation what in proportion to their advance from the crude which would be prosperous must prosecute various condition, due regard being had to the raising of rev. branches of industry and supply its vital wants enue. But we are completely in the dark as to what mainly by the labor of its own hands.' Second propwill be the final form of the new tariff. It is simple osition—There is a natural tendency in a comparajustice to the great industries of the country that they tively new country to become, and continue, an exshould not be kept in suspense. The great majority of porter of grain and other rude staples, and an immanufacturers are not at all afraid of a lower tariff.

porter of manufactures.' Third proposition—. It is It will in reality be a great boon to them.

But they injurious to the new country thus to continue deare extremely impatient to know what it is to be in pendent for its supplies of clothing and manufactured all its details. Now that financial confidence is fast fabrics on the old. Fourth proposition - That becoming completely restored, our merchants and equilibrium between agriculture, manufactures and manufacturers are ready and desirous to proceed commerce, which we need, can only be maintained with energy and enterprise to recoup themselves for by protective duties.' Fifth proposition— Protection their losses during the recent crisis. But this they is necessary and proper, to sustain as well as to create cannot do with intelligence and assurance until the a beneficent adjustment of our national industry,' new tariff has been enacted. The revival of business “Suppose that the South should take unto herself and industrial prosperity, therefore, and the welfare and apply these principles to her present naturally of millions of our countrymen dependent thereupon, favorable conditions. Under a protective tariff she to a very great extent now wait upon the action of bas it in her power to shut down indefinitely the imCongress respecting the tariff.”

mense cotton manufacturing plants of Manchester


and Leeds. She has it in her power to bankrupt Fall “Fortunately," says Mr. Hill, “ the evidence did River and Lowell and Pittsburg, unless they shall not stop with the choice between the two measures. bring their manufacturing plants to the inexhaustible The Congress of that day did not merely decide upon iron and coal fields and the almost limitless cotton the principles of a measure and then instruct a complantations of the South. Instead of sending her cot mittee to prepare a bill in accordance with those toa abroad at seven cents per pound, she can send it principles, at least not on a question of first inagniin the shape of thread or cotton yarn at fourteen tude. Having determined thut a protective tariff cents, or in the shape of cloth at twenty-eight cents. was necessary, the whole House proceeded to consider In thus enhancing the value of her staple product 400 the details of such a measure. Of course the vast per cent., she not only brings into her borders that amount of business which comes before Congress in much increase in money, but she will have given em these latter days does not permit the full and free ployment to thousands of laborers, who are taken discussion which it was then possible to give to each away from competition in other branches of industry. important question. A tariff bill, with its numerous These are some of the reasons why the South should details—with the necessity of adjusting rates to suit favor a protective tariff, and will be ripe for its adop the needs of great industries—can be prepared more tion in 1896—and possibly in 1894.”

advantageously by a committee of experts than by a

body so large and unwieldy as the United States ConTHE TARIFF ACT OF 1789.

gress has grown to be. If, however, Congress could

again become a deliberative body, and if the reasons constitutional power to impose and collect for supporting or opposing the details of a tariff bill tariff duties except for revenue only, a right denied could be given as freely as were the reasons for layin the Democratic platform, it is clearly shown by Mr. ing protective duties on the few articles which were William Hill, writing in the Journal of Political deemed worthy of protection in 1789, there would Economy, that the tariff act of 1789 was imposed with certainly be less room for charges that contributions a view of protecting new manufacturing industries to a campaign fund secure or maintain protection. It as well as to raise revenue for the government. And, may be necessary to buy protection now. It certainly more than this, it does not appear from the report was not a century ago. Then the existence, or the furnished by Mr. Hill of the debate upon the measure possible existence, of any industry was deemed sufthat any member of Congress, at the time the bill was ficient reason for the encouragement which was under consideration, questioned the authority of the openly and avowedly given. Each industry which government to levy taxes high enough to give any had been started in any State, and which gave the desired protection, or even to prohibit importations least promise of success, was championed by the for the same purpose. The tariff of 1789 has gener members from that State. At times they argued that ally been regarded as a revenue measure, and its the whole Union would gain by whatever benefited a low rates have been urged as a proof of its unprotect- part ; again, that it was necessary to render the naive character, but Mr. Hill finds from an investiga tion independent of foreigners, even at some present tion of the subject three points of proof that the en sacrifice ; or again, that what was lost to any section couragement and protection of American manufact by consenting to duties on one article should be made urers was at least as important as any other motive up to it by protection to its own products." in securing the passage of the act which laid the

NOT REGARDED AS UNCONSTITUTIONAL. foundation of the tariff system.

Mr. Hill states that the advocates of Madison's A PROTECTIVE AS WELL AS REVENUE MEASURE.

plan urged every other reason against its adoption, In the first place, Mr. Hill shows that the protect but never once did they say that protection to Ameriive acts of the States furnished the experience on can industries would be unconstitutional or even unwhich the national legislators based their proceed- desirable. All through the reports of the debate preings. Very soon after Congress first met, which was sented by him is seen the desire on the part of the in April, 1789, Madison, recognizing the present need legislators of the first Congress to free American inof revenue, offered a resolution calling for the adop dustries from the virtual monopoly England at that tion of the impost, which, from 1783 to 1789, Congress time held over the manufacture of products consumed had in vain urged upon the States. Madison stated in America, and the development by duties on imdistinctly that the object of the measure was to raise ports of domestic resources. revenue, that it was to be a temporary expedient, to “ Whether," concludes Mr. Hill, “the United remain in force only until a comprehensive system States would have been a stronger rival of England could be arranged. The act he proposed had been if the industrial development which was well bediscussed in each State, and the opinions of the mem gun in 1790 had not been interrupted, is a purely bers as to its merits were already forined. As a sub speculative question. What the history of the time stitute for the plan offered by Madison, Fitzsimmons, does indicate is that industrial conditions are more of Pennsylvania, proposed a system of protection effective in securing laws than laws are in changing similar to that which had been tried in his State. industrial conditions. The state of American comBoth these plans were fully discussed, and after due merce and manufactures from 1784 to 1790 certainly deliberation the protective duties proposed by Fitz called for restrictive and protective legislation and sesimmons were preferred to the revenue duties advo cured it. But with a change of conditions the procated by Madison.

tective features of the tariff were not strengthened.

« PreviousContinue »