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Hon. William B. Allison.
Born at Perry, Ohio, March 2, 1829; educated at Western Reserve College; admitted to bar in Ohio; moved to Iowa, 1857; served on Governor's staff during war; elected as Republican to 38th, 39th, 40th and 41st Congresses; elected to United States Senate, 1872; re-elected, 1878, 1884 and 1890; one of the oldest, ablest and most respected Senators; Chairman oi Committee on Appropriations ; Member of Committees on Engrossed Bills, Finance, Census, Extension of Library, and Geological Survey; prominent candidate for Presidential nominee ou the Republican ticket in 189B.
Born at Concord, New Hampshire, December 28, 1835; graduated at Harvard Law School and admitted to bar, 1855; reporter of Supreme Court, 1859; member of New Hampshire Legislature, 1862-63-64; Speaker of House, 1863-64; Solicitor and Judge Advocate-General of Navy Department, 1865; First Assistant Secretary of Treasury, June 17, 1865-November 30, 1867; member of the New Hampshire Constitutional Convention, 1876; elected to New Hampshire Legislature, 1881; appointed Solicitor-General by President Garfield, 1881, and rejected by Senate; appointed Secretary of Navy by President Arthur, April 12, 1882. and served till March 7, 1885; elected as Republican to United States Senate, June 14, 1887; re-elected June 18. 1889, and again, January 16, 1895; Chairman of Committee on Census, and member of other important Committees.
revenue, from tea, sugar, coffee, and articles which rank as necessities, and which cannot be produced profitably at home or cannot come into competition with home productions, and in their stead levies discriminating duties upon articles that come in direct competition with home products.
The rate of such duties is adjusted, in theory, so that the foreign product cannot enter the home market at a price below what it can be produced for at home, with a fair profit included.
Some rates are prohibitory, as when there is desire or determination to found a new industry; but as a rule they are simply discriminative, and in favor of industries which .exist, but which would cease to exist unless protected.
Since labor constitutes a large per cent. of manufactured products—in some products as much as ninety per cent. of the cost—the most direct effect of protection is to maintain the price of that labor as it enters into the home product, and preserve it from competition with the cheaper labor that enters into the same product abroad.
The effect of protection on labor is direct and indirect. When the price of labor in protected industries is maintained, that in the unprotected industries is also maintained.
The application of protection to industries in this country reverses the doctrine of political economists that the price of an article is increased to the consumer by just the amount ef duty imposed upon it.
Protection may increase the price of an article temporarily, and by some per cent. of the duty levied, but the price declines as the home manufacture of the article enlarges and home competition sets in.
Protection encourages capital and invites it into enterprises from which it would shrink, owing to its natural
The spirit of invention and the employment of labor-saving machinery and devices are encouraged by protection.
Labor yields most when aided by artificial appliances and cheered by liberal and certain remuneration.
The last three factors render production exceptional in this country. Together with the law of competition, they furnish an output of products better in quality and cheaper in price than those of nations that rely solely on cheap labor for cheap price. The cheapness of protection does not imply degradation of labor, but greater deftness of hand, quickened genius, advantage of natural opportunity.
The tariff is not a tax. While most articles, whose homemanufacture has been encouraged by a duty upon them, sell at no higher price than when imported, many such sell for a less price than the duty imposed.
When the foreign producer lands his goods here, and finds them in competition with home-made goods, he pays the duty.
Says a Bradford, England,manufacturer: "The least possible reduction in the American tariff will be a grand thing for Bradford. We are selling our goods for the same prices we did before the higher tariff was enacted, and I -know the Bradford manufacturer is paying the duty, not the American consumer."
Another English manufacturer says: " If the duties came out of the American consumer the English manufacturer would not care a button about the American tariff laws."
Friedrich List, founder of the German Zollverein, or Custom's Union, Adam Smith and John Stuart Mill, all subscribe to the doctrine that a country which is exclusively agricultural is necessarily backward. They instance Poland. * Since, then, although it is undoubtedly bad for privileges to give rise to artificial industries, many industries well suited to the nature of a country will never develop there unless at first protected. The best road to arrive at freetrade and obtain from it the maximum advantage lies through a temporary adoption of protection."
Protection in this country at first vindicated itself by the example of all civilized nations. Then, by universal acquiescence in the principle that duties on imports were more cheerfully paid than any species of tax for revenue. Now it vindicates itself by what it has achieved for the country in the domain of capital and labor. It claims to have won by honest effort and practical results the title, "American System."
"The safety and interest of the people require that they should promote such manufactures as tend to render them independent of others for essential, particularly for military, supplies."—Gcorge Washington,
"That it may be expedient to guard the infancy of this improvement (' useful manufactures') by legislation of the commercial tariff, cannot fail to suggest itself to your patriotic reflections." Again, "In adjusting the duties on imports to the object of revenue, the influence of the tariff on manufactures will necessarily present itself for consideration. However wise the theory may be which leaves to the sagacity and interest of individuals the application of their industry and resources, there are in this, as in all cases, exceptions to the rule."—James Madison.
As to the highest duties of the government, Thomas Jefferson, in his second annual message, said: It is " to cultivate peace and maintain commerce and navigation in all their lawful enterprises; to foster our fisheries as nurseries