North Carolina Newspapers

jEMBNT.TO ley PS TT TT TT ji 11 Fa CO our ted iUt, COLUMBUS, N. C, OCTOBER 25, 1906 A GREAT SPEECH BY HR. CRAWFORD An Exhaustive Exposition ot Dis criminating Tax Laws, Which Benefit Special Interests to the Detriment of Toiling Millions. TALK THAT MEANS SOMETHING Gallant Representative of the People Adduces Conclusive Ev idence in Substantiation of the Contention that Federal Taxes are Excessive, Unjust and Ought to be Reduced. The great issue in the national cam paign this year being the Tariff, or Federal taxation, It is deemed appro priate to reproduce here the ve,ry able and convincing argument of Hon. W. T. Crawford upon the subject, on the floor of congress, Thursday January 25, 1894. Mr. Crawford is handling this vexed question admirably in his present canvass of the tenth district as the democratic candidate for congress, but the speech presented herewith, which appeared in the Congressional Record at the time it was delivered, is by far the most powerful and exhaustive ex position of tariff laws that any southern . representative has ever made. In this extended argument, Mr. Crawford lays bare the injustice of high protective tariff laws and points out the excessive burdens such enact ments impose upon the sons of toil. He takes tile republican party to task for its deceptive practices and declares for equal rights for all and special privl- Wes for none.'' It is worth while to read every line of this unanswerable ar gument, inasmuch as it deals with vital issues that are still paramount. Mr. Crawford makes the matter so plain that no one can misunderstand and what he had to say then as now will have great weight with those-who know him best. The Argument Begins The House being in Committee of the Whole on the State of the Union, and haying under consid eration the bill (H. R. 4864) to reduce taxation, to provide revenue for the Government, and for other purposes. Mr. Crawford said : MB. Chairman : I presume that every man in the United States of sound discretion has a pretty clear idea of the tariff, unless it be the philoso phers of high protection. I am sure it would not be safe to ask a man in my State if he understood the tariff. (Laughter.) The fact is. Mr. Chairman, the people have been investigating this Question for themselves and have learned that a tariff is a tax pure and simple, levied by Congress upon goods and merchandise brought to this country from England, France, Germany, and the balance of the world ; and they know that the people of the United States who buy those goods pay not only the cost in foreign markets, the freight across the Atlantic, the tariff tax collected in our ports, but a profit to the im porting merchant, which is the sole inducement to the transaction; and they know further, that by reason of this tax the American manufacturers are enabled to sell their vast product, amounting to over $7,000,000,000 annually,' for an enhanced price to the American consumers of not less than $1,000,000,000 every year, according to the esti mates of the best authorities, every dollar of which goes into the pockets of the protected manufac turers. In the meantime the Government gets about $200,000,000 as taxes. When the tax is levied for the purpose of raising revenue for the support of the Government it is called a revenue tariff ; when it is levied with a view of aiding individuals in their private business, it is a protective tariff, and is called "protection to American industries." Bears Heavily on Tolling flasses Mr. Chairman, the people of this country have paid into the Federal Treasury since the Govern ment was organized $7,400,000,000 as taxes on im ported goods, and how much has been paid in con sequence of this to the American manufacturers in the way of enhanced prices of their products no one can tell but certainly not less than $30,000, 000,000 according to the most reliable statistics. This does not destroy wealth, of course, but it takes it out of the hands of the toiling millions and concentrates it in the hands of the few like Carnegie, the great steel king of Braddock, whose income is $5,000 a day. With the power to raise the price of their products as high as the imported goods of like character, with a duty of 40 to 100 per cent, added, and force the American people to buy them, is there any wonder that the manufac turing sections have all the surplus wealth of the nation I . yA, Is there anythingaheln the fact that Massa chusetts is rich sMprblia is poor, when you consider tii"JW!pW of fcorth Carolina have been forp&aijajeii jootton "jaiuither surplus farm produc,S4 England, dif at England's prices, for a hundred years and invest the proceeds in New England merchandise, which costs them on an average of 50 cents more on every dollar in vested than the same (roods would have cost them in England? But it may be asked, why do they not buy their necessary supplies in England? The answer is. the Government of the United States is protecting the home manufacturer against compe tition with foreign-made goods, and will not allow such goods brought into this "country without pay ing a heavy tax. A Practical Illustration Mr. Chairman, to illustrate the practical opera tion of the tariff law, let us suppose that a New York importing merchant buys $100,000 worth of cotton or wheat in this country and ships it to London, sells it. and invests the money in woolen goods such as the American people are compelled to buy on account of the severity of our winters. When his vessel arrives in the port of New York the custom-house officer goes on board the ship and invoices the goods and ascertains the value or cost in London, which is $100,000; the tariff tax under the McKinley law on this class of goods is 98 per cent., and this merchant must pay $98,000 into the Treasury of the United States before he can tafce those goods out of the ship and put them into his store. Is there a sane man who will contend that the $98,000 is not added to the $100,000 before that merchant bills the goods for sale? If so, no sane man will believe him. Applause. This $98,000 is the tariff. I think it is clear. Is it not plain to every man who is willing to look at the question from a business standpoint, that the American manufacturers, who pay no tariff tax, have a mar gin of $98,000 in the transaction cited, and upon these margins the great trusts and combines are built along the whole line of protected industries, J by which the price of their, products is made uni . form throughout the country, so that they may divide the spoils without competition among them selves, thus forcing the American people to pay them the same price for all the necessaries of life as the foreign goods cost with the tax added? The hat manufacturers gave the whole case away hi their statement before the Ways and Means Com mittee, page 1171 Tariff Hearings. They say that a hat which costs $15 a dozen in this country costs only $8.18 in Europe. The law of 1883 had a tariff of 72 per cent, on wool hats; if added to the $8.18 you have $14.06; and at their instance the McKinley bill raised the tariff to 88 per pnt, which they claim was necessary, on the ground that Europeans had learned the "ingenious methods" of American manufacturers and were underselling the American makers in this country. Now. add 88 "per cent, to the $8.18 and you get $15.37. This explains itself. In this way mam moth fortunes have been acquired within a few years. By these unheard-of advantages 30,000 men own $30,000,000,000, one-half the entire wealth of the United States; and these are the men who are clamoring for protection at our hands to-day. Mr. Chairman, these are the infants about to be destroyed by the paupers of Europe. It is pitiable to hear the wails of the gentleman from Pennsylva nia Mr. Dalzell, and the hoarse groans of the gentleman from New York Mr. Payne, for their deliverance from the Wilsan bill and the paupers. Laughter. Cold, Merciless, Shameless Greed The average rate of duty on the woolen schedule under the law of 1883 was 69 per cent, and the im ports under that law amounted to $54,650,000 in 1890. and the tax collected to $37,208,500. In 1888 the Republican campaign committee "fried the fat out" of the manufacturers in order to elect Mr. Harrison, and when Congress convened and began to "tinker" with the tariff, the woolen manufacturers' combine demanded of Mr. McKin ley that the tariff on woolens should be raised from 69 to 98 per cent., and it was done, and the imports dropped to $35,792,000 in 1892. upon which a tariff tax of $35,076,160 was collected. This enormous tax was not levied with a view of raising revenue, but for the express purpose of giving the home manufacturers a monopoly of woolen goods,' in cluding every article of clothing, which is bo es sential to the comfort, the health, and the very lives of the people. What an exhibition of cold, merciless, and shameless greed. Applause. And gentlemen on that side of the House are bold enough to defend this reckless abuse of the taxing power, and with uplifted hands declare in plain tive appeals that it has been done" for the protec tion of labor. Oh, labor, what crimes are being committed in thy name 1 Mr. Chairman, we have come to the "parting of the ways." The Democratic party has always contended that Congress has no power to levy taxes except for governmental purposes.' The Re publican party is now contending, contrary to the teachings of the great men who founded- and . maintained that party in its better days, that tariff taxes should be levied for the purpose of protect ing American manufacturers as an object and for the raising of revenue as an incident. ' Democrats contend that the people ultimately pay the tariff who buy the goods, and insist that no more taxes shall be collected than is necessary to meet the public demands of the Government. i Republicans want to make the tariff so high that no foreign goods can come to our markets if such goods can be produced in this country by this false stimula tion of protection. Shall Discrimination Continue? Sir, the issue in this battle is not upon the de tails of schedules in this bill, but it goes to the fundamental principle of the taxing power as pro vided in the Constitution. We are to decide whether or not this system of levying tribute on the 67,000,000 of people for the benefit of the few thousand shall be perpetuated indefinitely. The HON. W. T. CRAWFORD . . t Constitution of the United States, Article L Sec tion 8. provides that "The Congress shall have power to levy and collect taxes, duties, imposts, and excises, to pay the debts and provide for the common defense and general welfare of the United States." We see that Congress is limited by this grant of power to levy taxes upon the people, both as to the objects to be taxed and the application of the money when collected. It is believed that even just taxation is a necessary evil, and a burden upon those who pay it. But no patriotic citizen objects to paying his fair quota of taxes to support the Government in its due course of administration, in order that law and order may be maintained for the protection of life, liberty, and the individual, pursuit of happi ness, which is the prime object of government. The people are willing to contribute millions for revenue, but I say here .and now. so far as my vote is concerned, not another cent shall be paid as a tribute to home industries or any other indus tries. We ( stand here to-day in defense of the toiling, tax-paying masses against the encroach ments of the Government upon their rights. They are not able to send lobbies to Congress to plead for relief, and they do not flood this House with protests and petitions, but they are watching with anxious eyes the result of this contest They in structed us at the polls in 1890 and again in 1892 on this issue, and we are here to execute their will in spite of the combined money power.iri spite' of the ; howls of the bene'ficiaries of this vfy:J6us syBtem of., robbery, and in spite of the protests pf that side of the House. Applause. We will rock this coun try from ocean to ocean until taxes are levied only fox revenue and the proceeds applied exclusively tJ the support of the Government economically administered. Applause. Blame In Twenty Years pf Congress Under (he administrations of Washington, Jef ferson, and Madison the average tariff was 15 per cent Henry Clay, when urging his Compromise in the Senate in 1833, said, "Now, give us time; cease all fluctuations for nine years, and the man ufacturers in every branch will sustain themselves against foreign competition." The rate of tariff during this period was 82 per cent., and by the compromise it was reduced to 26 per cent. And this was called " Clay's great American system." What would you gentlemen call it? : Free trade of the rankest sort. It is interesting. Mr. Chairman, to note the progress of tariff legislation. The. Whigs succeeded in the election of 1840. and raised the tariff to 35 per cent.; in 1844 the Democrats were triumphant, and the "Walker tariff" of 1846 was the result, and the rate of duty was reduced to 25 per cent, and remained unchanged for eleven years. This period from 1846 to 1857 has been characterized in this discussion and on every stump by the Republicans as " the era of free trade , and ruin." The contention is false. As a matter of fact, it was the most prosperous period in our history. Mr. Blaine, the great apostle of protec tion, when he comes to write history, says in his Twenty Years of Congress : "Moreover, the tariff of 1846 was yielding abundant revenue and the business of the country was in a flourishing condition at the time Taylor's Administration was organized. Money became very abundant after the year 1849. Large enter- -prises were undertaken, speculations were preva lent, and for a considerable period the prosperity of the country was general and apparently genuine. After 1852 the Democrats had almost undisputed control of the Government and had gradually be come a free-trade party. The principles embodied in the tariff of 1846 seemed for the time to be so thoroughly vindicated and approved that resist ance to it ceased not only among the people, but . among the protective economists, and even among the manufacturers to a large extent. So general was the acquiescence that in 1856 a protective - tariff was not suggested or even hinted by any one of the three parties which presented Presidential candidates.' Mr. Blaine says in this connection, that the Re publicans had a plurality in the House in 1857. and elected Mr. Banks Speaker. This Congress re duced the tariff to 18 per cent, the lowest it had been Bince 1816. and not a word was said about the " free-trade panics " and ruin upon which so much .Qsj,w-fW" &S oratory has been Wasted In this debate, the great lights of the Republican party, like Charles Sum-, ner, Henry Wilson and Hamilton Fish voting for the reduction, voting for what you gentleman are pleased to call free trade. Sir. these disciples of the new school of protection are looking back over a period of forty years, with their minds loaded with the old stock of campaign thunder, to the ex- elusion of historical truth, and are still shouting "Behold the free trade and ruin of 1846!" These latter-day saints have departed from the faith of the fathers on this great question. You occupy the seats in this House which they filled with distinguished ability, but you have repudiated their policies, ignored their teachings, and Bpurned , their wisdom. Applause. ' 'y The Morrill Tariff . The Morrill tariff of 1862 was passed as a war measure and raised the tax to 40 per cent, and Mr. Morrill urged its passage on that ground alone. The Republican platform of 1863 declared that It is due to the labor of the country that taxa tion should be equalized and reduced as rapidly as the national faith will permit ' Now the Republican party insists that it is due the American labor that taxation shall be increased as rapidly as national faith will allow. Hamilton. Clay. John Quincy Adams. Grant Logan, and Plumb thought that the tariff is a tax and that the consumers of this country pay it Mr. McKin , ley and all you distinguished gentlemen profess to believe that it is protection to American labor land is paid by the foreigner who sella the goods -tin this country. Alexander Hamilton says, in ' 1791, in a report on manufactures ; ' ' It is true as general proposition that the consu mer pays the duty. Henry Clay says in his great tariff speech of ,, 1820: ' We do not derive our ability from abroad to pay taxes. That depends upon our wealth and indus try; and it is the same whatever may be the form of levying our contributions. Mr. McKinley says : We propose to raise our money for public ex penses' by taxing the products of other nations j-ather than by taxing the products of our own. "Shades of the mighty Clay I" John Quincy Adams, in a report to the House of Representatives on manufactures, n 1835, answers the whole argument in a nutshelL; He says : . The duty constitutes a part of the price of the whole mass of the article in the market It is sub stantially paid upon the article of domestic manu facture as well as upon that of foreign production. Upon one it is a bounty, upon the other it is a bur den; and the repeal of the tax must operate as an equivalent reduction of the price of the article , whether foreign or domestic. We. say so long as the importation continues, the duty must be paid by the purchaser of the article. Senator Plumb, a. life-long Republican, said in the Senate in 1883 : , . Who pays these taxes? When a manufacturer of Iron comes to the Senate and says. "I can live or I can make a profit if a certain duty is intposed." what is he Baying? He is simply saying, ' If you give me a certain duty you put it in my power to charge over that duty as an additional tax on the farmers of the United States." . Republican Promises Disregarded Campaign . after campaign yuvpromised to re duce the war taxes on the necessaries of life. How did you do it? You took the income tax off of the rich, which saved them $70,000,000 a year; you took the tax off of manufactures amounting to $127,000, 000 a year, and put luxuries on the free list But no burdens of taxation were removed were, removed from the shoulders of the common people who spent all their incomes in the support of them selves and their families, but on the contrary were increased. It will be remembered. Mr. Chairman, that President Arthur, as late as 1881. in a mes sage to Congress, recommended a reduction of the taxes upon the necessaries of life, using this lan guage: " The present tariff system is in many respects unjust It makes unequal distribution of both its burdens and its benefits. I recommend the en largement of the free list and a reduction of the duties on cotton, iron and steel manufactures, also upon sugar, wool and woolen goods. In 1882 he appointed a tariff commission, com posed of protectionists of the North, whoee duty it was to make a thorough investigation of the whole tariff system. After spending months in the manufacturing centers examining experts as to cost of production amgprofits on the investments, this committee made a unanimous report to Con gress recommending a reduction of 20 per cent all along the line. By the time Congress came to act upon it the manufacturers themselves had been heard from, and in obedience to their demand this report was thrown to the winds, and the tariff, in stead of being reduced, was actually raised 10 per cent Applause.. Repudiated by the People in 1884 Notwithstanding this flagrant disregard of pub lic sentiment public demand, and party pledges, you again came forward as the especial champions of the people, and declared in your national plat form of 1884 that you would "equalize the taxes and reduce the surplus. But the people repu diated you as unfaithful servants and elected Cleveland President, and also a majority of the House. ' In compliance with" all the Democratic platforms and in accordance with the time-honored principles of the party, as enunciated by Jefferson, Madison, and Jackson, he Bent his famous message to Congress declaring that; v Our present tariff laws, the vicious, inequitable, : and illogical source of unnecessary taxation, ought ' to be at once revised and amended; These laws, as their primary and plain effect raise the price to consumers of all articles imported and subject to duty, by precisely the sum paid for such duties. So it happens that while comparatively, few use the imported articles, millions of our people, who never use and never saw any of the foreign pro ducts, purchase and use things of the same kind made in this country, and pay therefor nearly or ' quite the same enhanced price which the duty adds to the imported articles. ' The Mills bill was framed with a view of carry ing out the suggestions of the President reducing the tariff; substantially, to a revenue basis, and thereby relieving the people from unnecessary and burdensome taxation, but was defeated by a Re publican Senate. Voice of the Dcaaoga la 1888 This effort of the Democrats' to reform the tariff aroused afresh the great moneyed powers of the nation, and every nook and corner of the country from one ocean to the other was visited by the boodlera who were ' organizing for the defeat of Cleveland upon the basis of a money consideration. And the voice of the demagogue was heard in the land. From every ' stump the miserable slogan of "free trade, bankruptcy, and pauper labor" was the issue, and the only issue, when it was known . by every reading man that the Mills bill carried a higher rate of duty than Henry Clay ever con tended for. By false reasoning you attempted to mislead the people by claiming that the tariff made wages high and at the same time made the' product of wages cheap and was rapidly developing a home market for the farmer's products! and in a general way had made this the 'greatest country in the world.' It was insisted that by the mysterious force of the tariff the forests had been cleared, the railroads built the mines opened, and the people educated. Away with such sham and pretense ! This country has propered in spite of this unwise, unjust and iniquitous legislation. 4 Legislation has no power of creating wealth. Labor alone can do it Legislation does control the distribution after labor has created it and that is what the tariff Is now doing, taking the hard earnings of the people and giving it to the rich as a bonus to induce them to manufacture clothing, hats, and farm implements. - ' ' In the campaign of 1888 it is well known, Mr. Chairman, that the Republicans defended the existing law and never once suggested that the tariff would be increased or In any way modified. They carried the election and got full control of the Government' and when Congress convened a Ways and Means Committee was organized, with Mr. McKinley as chairman, and they proceeded to make a new bin, and then, as now. all the "infant industries,' with their paid lobbies, were present demanding their rights, and it is a matter of record that they dictated their own rates of increase, virtually writing their own schedules m that McKinley bill,' as may 'be seen by comparing it with the hearings before the committee.' The tariff rate was raised enormously' on articles in common use j on ready-made clothing from 54 to 84 las illy eel jwe .lso N ! V..; ON, N. C. If 5 N G E pvite you to , N. C. tot It Take no snbsti . ill on receipt of price Ing outfit lor 35 cests 4 own shoes with little oea not smut or black woo never before pol tue Bhnshlne. Can be t grir. Yon oan't spill to acid, shellacs or am Dgs do. . phushine is sj U kinds of leather, in t. Shoes wea ttncbv Datrelj. kl BT al CO MP amy, L Mass. DLOUD IS, ft. c. house in upper b right ''-'-',: 3FFERED 3TJWO PSOPZjS oung persons, no matter r education, who wish to s training and good pori f or oor great half-rate ncesndprobable f ortoae stay. Write today. i CoUeie, Bacoa C. ANY, R. etreSi v . . . i 7 i " mm for sale at The s. aAjJl-at! 1 a'"' i .i r