TARIFF REVISION 459 



interests as paramount, and to forget the many intricate questions 

 involved, all of which go to the proper conduct of the commercial 

 scheme of an entire nation. 



To-day the most experienced and intelligent business men are prac- 

 tically agreed upon the necessity of a tariff. The unsettled question 

 which stands between the law maker and the importer is the rate. 

 Both are now agreed as to the justice of the principle when equitably 

 enforced ; what remains is to agree upon what is equity to the importer, 

 to the government, to the home producer and competitor and to the 

 consumer. 



I had the honor quite recently to suggest to the ways and means 

 committee of Congress at one of the tariff revision hearings what I 

 regarded as a " just tariff," which should be an act so drawn as to pro- 

 duce the needed revenue and at the same time protect home interests. 

 Such protection should be equally divided between the capital that 

 establishes, the labor that produces and the public that consumes. 



I am still inclined to regard the definition both concise and correct. 



Mr. Taft quite recently voiced his view of the tariff principle laid 

 down in the republican platform in the following terms : 



The measure of the tariff should be the difference between the cost of 

 production of the article in this country and such cost abroad, and in the 

 estimate of the cost of production abroad and in the estimate of the cost of 

 production here there should be included among other elements what is regarded 

 in each plan as a reasonable manufacturers' profit. 



With this the importer finds no complaint, as a duty fixed along 

 such lines would leave open to reasonable business competition all the 

 fields wherein foreign and domestic merchandise naturally seeks a com- 

 mon market. What the importer does object to is the establishment of 

 a duty which either strangles all competition, thus creating a monopoly 

 for home products only, or a rate so high that the so-called " reason- 

 able " manufacturer's profit becomes unreasonable, forces the consumer 

 to pay too dearly for his goods, either foreign or domestic, and in- 

 evitably produces " trust " control in the lines affected. 



Such a tariS is unjust and benefits no one but the home producer. 



Under it the importer must necessarily pay a heavy bonus for the 

 privilege of conducting his business; the consumer is compelled to 

 pay a high price for his merchandise ; and it is always unjust to labor, 

 since the rate of duty is never used as a measure by which to regulate 

 the wage scale. The sole beneficiary is the home producer who is 

 enabled to realize a profit drawn from the pockets of three classes, the 

 importers, the consumers and his own employees. 



One of the best examples of a violation of the basic principle set 

 forth by Mr. Taft is the present tariff rate upon watch movements 

 imported in cases or without. 



Fixed in 1897 through the efforts of certain interests in this country, 



