Dem ocrat i c Un d erw o o d -Si m m o n s T ari ff Bi ll
A Co lo s s al Fa i lure
to
an
d
Mo s t Di sa s tro u s
Labo r, In d u stry an d A g ri cu lture ,
A s Has Been A ll Leg i s l at i o n fo r
"
”
Tari fi fo r R e ve n u e On ly
fro m 1 7 8 9
to
19 13
All A dd re s s by
FR E D E R I C E
0
.
KIP
f
Mo ntcla i r Ne w J e r s ey
,
m
T H E D E M O C R A T I C U N D E R W O ob j s
Mp Ns
T A R I FF B I LL A C O L O S SA LFA I LU RHANE
M O S T D I S A S T R OU S T O IJA B OR , I N D U S
T R Y A N D A G R I C U LT U R E
‘
‘
’
‘
’
‘
.
M o nt c lai r N J
T h e hi g h w ater mark o f p ro sp erit y (e x c lud in g th e
p ro sp erit y ari s in g from th e g reat Eu ro p e a n w a r an d
th e hu g e w ar o rd er s ru s hed h ere a few mo nth s a fter
t he d e c lar a tion o f ho s ti liti e s ) j ud g ed by th e remunera
tio n to labo r and th e retu rn s i n i ndu s tr y a nd a g ri
c ulture —
L a bor w a s
w a s re a c hed i n 19 1 1 a nd 19 12
fu ll y em p lo y ed fr o m M ain e to C a li fornia at th e hi g h e s t
w a g e s ever p a id i n th e U nited S t a te s p revi o u s to th e
d e c lar a tion o f th e p re s en t Euro p ean w a r and th e c o n
d i tio ns o f indu s tr y and a g ri c u lture w ere mo re p r o sp e r
ou s th a n at a ny p eriod ever rea c h ed in o ur i nd u s tri a l
a nd a g ri c ultural d evelo p m ent
At a manu fa c ture r s
m eetin g i n th e c it y o f B rid g e p ort C o nne c ti c ut in
O c tober 19 12 a numb er o f m a nu fa c tu rer s and m e r
c hant s sp o ke and voi c ed th e o p inion th at never in a ll
th eir p reviou s e x p erien c e —
th e ex p erien c e o f s o m e o f
t hem ran g in g th r o u g h s o m e fo rt y y ear s —h a d th ey
ever kno w n a p re s id enti a l ele c tion th en o nl y t w o
w eek s a w a y w h en bu s in e s s w a s s o g ene rall y g ood a ll
o ver th e c ount r y
T h e el e c tio n o f N ovember 19 12 p ut th e D em o
c rati c p art y i n full c on tro l o f th e exe c utive and le g i s
l ative fun c tion s of ou r g overnment and s hortl y a ft e r
M ar c h 4 th 19 13 P re s id ent W i l s on c alled a s p e c ial
s e ss ion o f C o n g re s s to c o n s id er th e frami n g o f a ne w
tari ff b i ll W h en C on g re s s c onvened and th e g eneral
p u bli c obtained an i nk lin g o f th e c hara c te r o f th e
t a ri ff bi ll that w ou ld be ena c ted —imm ed iat el y th ere
a fter lik e a bitin g fro s t over n i g h t th e bu s ine s s o f
t hi s c ountr y i n al l lin e s o f i nd u s tr y re s tri c ted it s el f
b y ever y me a n s p o ss ibl e a nd th e hi g h w ater mark
o f 19 12 o f p ro sp erit y i n i nd u s tr y c o mm en c ed r a pi d l y
to re c ed e re s ultin g i n c o n s t antl y in c rea s i n g c urtai l
ment o f bu s ine ss c lo s in g o f fa c to ri e s and lo ss o f em
p lo y m ent fo r labor F i n a l l y o n O c tober 3 rd 19 13
th e U nd er w ood S immon s tari ff bi l l w a s p a ss ed Now
a t la s t th e c ou ntr y kn e w that al l t he D emo c r a ti c p l at
fo rm and c am p ai g n p r o m i s e s no t to d i s turb labo r
le g itimat e bu s i ne s s o r i nd u s tr y w ere s im p l y fa k es a nd
e vid entl y mad e to b e broken be c a u s e h ere w a s a bi ll
no w an a c tual la w g rantin g to forei g ner s b y far th e
lo w e s t d ut y rate s ever h eard o f i n th e U nited S tate s
A d d res s by
F r ed eri c
E
.
K ip,
of
,
.
.
,
.
,
,
’
.
,
,
,
,
,
,
,
,
.
,
,
,
,
,
.
,
,
,
,
,
,
,
.
,
,
,
-
.
,
,
,
,
,
.
3
13 ‘
a ss a ge g the d i s a s tr o u s re s u lt o f thi s hal f
Aftc r its m
freeti aé e téirfi ff bill was i mm ed i a tel y felt in ever y c it y
t o w n and h a m let o f o ur co u ntr y M a ny fa c t o rie s
c l o s ed co m p letel y a nd h o ne s t lab o r w a lked th e s treet s
b y th o u s and s u p on thou s and s vain l y s ear c hin g fo r
em p l oy ment
Ju s t g et th e follo w i n g fa c t w ell in y ou r m i nd
F rom th e g reat p ro s p erity o f 19 12 w ith i n s ix mo nth s
a fter th e p a s s a g e o f th e U nd er w oo d t a ri ff bill (O c t o
be r 19 13 ) d i s a s ter a nd rui n w ere u p on o ur ind u s trie s
T h e fol l o w i ng exam p l e s
a nd a g o n y u p o n o ur p eo p le
w i ll g ive a n id e a o f th e exte nt o f th e d i s a s ter w r o u g h t
”
“
b y thi s hal f fre e trad e tari ff bill :
S o u p kit c h en s to h el p feed th e unem p lo y ed w ere
thro u g h c harit y i n al l o f th e lar g e c itie s
o p ened u p
i nc ludin g th e c iti e s o f N e w Y o rk C hi ca g o C level a nd
Lo s A n g ele s e tc —a nd th e m a y o r o f N e w Y o rk C it y
i n a p ubli c a pp e a l a s ked fo r and i m p lored th a t th ere
b e fo rm ed i mmed iatel y a co m m ittee o f p ro mi nent
c itize n s t o o bt a i n relie f fo r u nem p lo y ed a nd s t a rvin g
w o rker s a nd th eir fam ilie s i n N e w Y o rk C it y I t w a s
e s tim a ted th a t b et w een
a nd
w orke r s
w ere o ut o f em p lo y ment i n N e w York C i t y a lon e no t
t o m e ntion a t a ll th o s e w h o w ere w o rki n g on s h o rt
time
I n th e w inter o f 19 14 fo r th e fir s t tim e i n th e
h i s t o r y o f N e w York C i t y th e mor g u e w a s o p ened u p
a t ni g h t b y o rder o f th e c it y o ffi c ial s
a s a lod g in g
p l a c e fo r th e u n em p l o y ed w h o h a d no p l a c e t o s l ee p
J u s t th i nk o f it h o n e s t ind u s tri o u s w o rkmen w h o
one y e a r b e fore h a d h a d s tead y e m p l o y m ent w ith full
e
pa y envel o p e s thr o w n out o“f w o rk a nd ho m e b y th ”
D em o c r a ti c t a ri ff fa l l a c y o f T a ri ff fo r re v enue o nl y
a nd c o m p el led i n o rd er to kee p th em s el v e s fr o m fre ez
i ng to s lee p i n th e mor g u e o r th e hou s e o f th e un
kn o w n d e a d T hi s a c tion p ortr a y s m o s t vivid l y the
a w fu l d e s titutio n o f o ur u nem p l o y ed w o rker s
Al s o
a d e p a rtm ent w a s o p e n ed b y th e U nited S tate s G o v
ernme nt
to a c t a s a n em p lo y m ent
a g en cy M r
G o m p er s a nd o th er l a bo r le a d er s e s tim a ted th a t a p
p r o xi ma tel y fou r mil li o n
p er s o n s w ere th en
( F ebruar y 19 14 ) o ut o f e mp l o y m e nt in th e U nited
S tate s
T hi s t o g eth er w ith s h o rt tim e re s ulted i n
l o ss o f w a g e s a l o ne o f te n mil li o n
d o ll a r s
p er da y o r th ree bi lli o n
d o l l a r s p er
—
a nnu m
re s ultin g i n lo w p u r c h a s i ng p o w er p o o r bu s i
”
“
n e s s and th e w el l k no w n
ba d ti m e s o f th a t p eri o d
w hi c h extend ed to th e outbre a k o f th e Euro p ean Wa r
5
c
.
f
i
i
‘
‘
,
(
‘
.
,
.
‘
.
,
,
.
-
,
,
,
,
,
.
,
,
,
,
,
.
,
.
,
,
,
.
,
,
,
,
,
,
,
,
,
.
,
.
.
.
,
.
,
,
,
,
,
.
4
D emo c rati c c o nte nti o n that th e
U nd er w ood bi l l di d no t p rote c t w as
f ull y realized
W h en th e bill w a s p endi n g i n th e S enate th e
R e p ubli c an S en a t o r M r M c L ea n o f C o nn e c ti c ut
m ad e inquir y o f S enat o r S im mo ns o f N orth C ar o li na
(th e fram er o f th e bil l i n th e S enate ) w h i c h eli c ited
thi s re p l y
The
.
,
,
.
,
,
,
,
A furth er i nqu i r y from S enator M c Lea n p rovo ked
fr o m S e na t o r S imm o n s a mo re em p hati c s tatement o f
th e p o s ition o f th e D em o c rati c p art y :
T rul y th e bil l d i d not p rot ec t Am eri c an labor
Am eri c an i n du s t ry nor Ameri c an a g ri c ul tur e I t not
o nly i nvite d i m p ort s bu t re s ulted i n th e g reate s t
d elu g e o f im p ort s ever kno w n i n th e h i s tor y of th e
U ni ted S tate s for a s imi lar p eri od
T h e fo ll o w i n g s tati s ti c s o f co m p a ri s on o f im p o rt s
fo r th e fi s c al y e a r s 19 1 1 to 19 16 in c lu s ive s ho w a t a
g l a n c e th a t th e im p o rt s fo r th e t h ree y ear s e ndi ng
Jun e 30th 19 14 19 15 a nd 19 16 u nd er th e U nd er w oo d
S im m o n s bi ll i n c rea s ed o ver th e i m p o rt s u nd er th e
R e p ubli c a n P a y n e bill fo r th e p revi o u s th ree y e a r s
19 11 19 12 a nd 19 13 to th e terri fi c extent o f over
a s s et fo rth i n th e fo l lo w in g s ta ti s ti c s :
,
,
.
,
.
,
,
,
,
,
CO M P A R I S O N O F
For
I M P OR T S
fi sc al y ea r s 19 11 to 19 1 6 inc l u s iv e
G ene ra l I m po rt s
.
.
u bli c n
Aldri ch B ill
T o al
R ep
Payne
s al
ar
Fi c
Ye
-
Fi
I mports
s al
c
-
t
r
1 9 11
1 9 12
1 9 13
(3 )
d erw oo d Si mmons B ill
T o al
I m po t s
Un
t
T
D e mo crati c
a
19 14
1 91 5
1 91 6
Tot l
l
o ta
3
mo nth s
a
of
a n
P y
e;
9
mo nth s
of
U
n d rwood
e
.
Payne
S u m ma r y
years
Und erwo o d 3 y ears
In creas e of i mp ortat i
B ill of
3
,
,
d erwo od T ari ff
d
un er t h e
o ns
Un
T r e mend o u s i n c re a s e o f i m p orta tion s of
mer c h and i s e not w i th s ta ndi n g th e
c om p lete c e s s atio n o f s h i p me nt s
from th e C entral P o w er s
K i n d l y ret a i n i n y ou r m ind th e s i g ni ficant fa c t
th a t w ith G erm a ny Au s tria T urke y B ul g ari a and
a ll th e C entral Po w er s not ex p ortin g a d ol l a r s w orth
o f g ood s i n t h e la s t t w o y ear s i nto th e U n ited S tat e s
o w in g to G reat B rit a in s p reventi o n th ereo f b y h er
c ontrol o f th e s ea
th e im p or ta tion s i nto th e U ni t ed
S tate s for th e fi sc a l y ear s e nd in g Jun e 3 oth 19 14 19 1 5
a nd
19 16 i n c rea s ed abov e t ho s e of 1 9 11 19 12 a nd
1 9 13 b y ove r
but th e d uti es c ol l ec t ed
d uri n g th e s a m e perio d fe ll off to th e ex tent of ov er
a s s h o wn b y th e foll ow in g s ta ti s ti c s
,
.
,
,
,
’
,
,
,
’
,
,
,
,
,
.
C u s toms
PA Y NE-A LDR IC H
R e c e i pt s
UNDER W O O D -SI M M ONS
st om s
i ts
sa
ar
1911
19 1 4
1 9 12
19 1 5
1 91 3
19 1 6
T tal
(a ) 3 month s
of
a
P y ne ; 9
mo nth s
S u mm a r y
of
U
of
Cu t
T o tal
1 39
o
s om s
Fi c l
Ye
Cu
R ece p
nd rwood
e
.
C us t oms R e c e i pt s
Payne, 3 years
derw d
Un
oo
D ecrease
years
recei p t s b y
3
,
in
U nd erwo od
B ill
T h e s e fi g ure s alo n e w ithout an y other fa c t s p rove
th e co m p let e fai lure o f th e D emo c rati c U nd er w ood
T h ere i s ho w eve r abundant a d
S imm o n s tari ff bi ll
d itio na l p r o o f on ever y s id e o f it s utter failure fo r
l abor fo r indu s tr y and for a g ri c u lture
T h e a d mi ss i o n s o f th e D emo c rati c P re s ident and
th e S e c retary o f th e T rea s ur y i n S e p tember 19 14 are
o n th ei r fa c e p roo f o f th e bi ll s c om p lete fa ilure T h e
S e c retar y o f th e T re a s u r y on S e p te m ber l t 19 14
“
a pp e a led to C o n g re ss fo r w h a t h e c alled a
W a r R ev
”
enue A c t w hi c h it w a s e s ti m ated w ould ad d $ 100
to th e re c ei p t s und er th e U nd er w ood B i ll
,
,
.
,
,
,
.
,
,
,
’
.
,
,
,
,
,
,
.
6
T h e rea s on g iven b y P re s id ent W i l s on a nd th e D emo
et at s for re s ortin g to thi s emer g e n c y revenu e a c t w a s
“
that it w a s d ue s o lel y to th e fallin g o ff o f im p ort a
”
tion s w h en a s a matt er o f fa c t th e i m p o rta tion s had
t r emend ous l y i nc r eas e d and ev e n i n th e v e ry month
o f O c t o b er 19 14 th e ex c e s s o f i m p ort a tio n s over O c to
furth e rmor e f ro m t h a t
ber 19 13 w as ov er
ti me t o th e p res ent th e i m p orta tion s h ave t errifically
T h e c om p l et e
i ncreas ed a s s ho w n p reviou s l y h erein
fai lure o f th e U nd er w ood tari ff to p rovid e revenue i s
d u e s olel y to the fa c t that th e d uti e s therein are
entirel y too lo w far th e lo w e s t o n re c ord i n th e
hi s to r y o f th e U nited S tate s th e avera g e d ut y rate s
fo r J un e 19 16 bein g o n l y a tri fl e over 8 p e r c ent
T h e month l y d ut y rate s u nd er th e U nd er w o o d tari ff
fo r th e fis c al y ear endin g Ju n e 30th 19 16 h ave bee n
a s fo llo ws :
,
,
,
,
,
,
,
,
.
-
,
,
.
,
,
,
,
,
19 15
,
P er c ent
.
.
J ul y
Au g u s t
S e p tember
O c tober
N ovember
D e c ember
19 16
.
J anuary
F ebruar y
M ar c h
A p ri l
M ay
J une
8 09
avera g e fo r th e y ear o f
s u g ar d ut y h ad not been
re s tored th e rate w ould no w b e
about
O r an
I f th e
.
,
—T
g
h e Und er woo d Bill a s pas s e d pro vi d ed t h a t s u ar
May ls t, 19 16 T h e D emo
s h ou l d be enti r el y f r ee, b eg i nni n
c ra ti c p ar ty w as t h en in mos t d e s p er a t e s t ra it s fo r fu nd s d ue to
lack o f cu s t o ms r ecei p t s
S hor tl y b e for e t h i s d a t e arr iv ed h ow
t h i s provi s i on o f th e law
ev er, l e i s l ati on was passe d cancelli n
N ote
g
.
,
g
.
,
g
.
W h en th e E ur o p ean w ar i s over (a s it mu s t be
in
and G erm a n y Au s tria T u rke y and th e oth er
C entral P o w er s re s u m e p r o d u c ti o n and s h i p ment s to
thi s c ountr y (no w p rohibited ) i f th e U nd er w ood
tari ff la w remai n s o n o ur s tatute book s th e in c rea s e
i n im p ortation s m u s t amount to a t lea s t doubl e th e
,
,
,
,
7
bove W i th s u c h terri fi c i m p ortation s l abor i n a ll
i ndu s trie s mu s t o f ne c e ss i t y be a ff e c ted m o s t d et t i
mental l y a nd th ou s a nd s o f h one s t w ork m en w i ll h ave
to s eek em p lo y ment un s ucc e ss f ull y d u e to th e i n flux
o f im p o rted g ood s at a n aver a g e tari ff rate o f a tri fl e
over
w h i c h I W i s h em p h ati c all y to a ffi rm i s
toda y lo w e r t h a n th e tari ff rat e o f an y lar g e n a tio n
namel y
lo w er than F ran c e G erman y
o f Euro p e
“
”
R u s s ia I tal y o r eve n fre e trad e En g land
a
.
,
,
,
,
,
,
.
,
w a g e s 2 % to 3 time s tho s e p ai d
i n th e be s t p a rt s of E uro p e
O ur
.
.
T h e w a g e s i n th e U nited S t a te s are
to 3 tim e s
th o s e p a id i n the be s t p a rt s o f Eur o p e a nd 10 to 15
t i m e s a s hi g h a s th e w a g e s p a i d in t h e O rient
The
h i gh er w a g e s p a id h e re c a n o nl y b e mai nt a i n ed if
th e d i ffere nc e bet w een th e l a b o r c o s t h ere a nd a br oa d
i s co mp e ns a ted b y a t a ri ff C ert a inl y a nd mo s t em
p h a ti c a ll y a n a vera g e t a ri ff r a te fo r th e l a s t fi s c a l
y e a r e ndin g J u n e 30th 19 16 o f
w hi c h i s l o w er
th a n a ny t a ri ff ra te o f Eur o p e tod a y c ann o t c om
p e ns a te fo r w a g e s 2 % to 3 tim e s hi g her i n thi s c ou ntr y
I n evit a bl y u nle s s thi s tari ff bill i s c h a ng ed —
wh en
th e w a r i s o v er a nd th e infl ux o f i m p o rt a ti o ns i s s ti ll
furth er i nc re a s ed to a n extent u n p re c ed e n ted a nd un
k no w n b e fo re i n o u r h i s t o r y o f a ne c e s s it y th e s e
i m p o rted a rti c le s mu s t d i sp la c e s imi l a r dome s ti c
a rti c le s m a d e h ere in th e U nited S tate s i n th e m a nu
fa c ture o f w h i c h th o u s a nd s y e s m i lli o n s o f ou r w o rk
m en a re no w em p l o y ed —
a nd o f a n e c e ss it y g reat
nu m ber s o f th e s e w o rk m en w i l l b e t h r o w n out o f
em p lo y m e nt c re a tin g c h a o s d i s a s ter a nd a go ny to
i nd u s tr y a g ri c u lture a nd a ll th e p e o p le o f the U nited
S t a te s
,
.
.
,
,
,
,
.
,
,
,
,
,
,
,
,
,
.
m
intern a ti o n a l m a nu fa c turer a nd mer c h a nt
E ng l a nd a nd
o w n i ng a nd o p erati ng mi ll s in F r a n c e
th e U nited S t a te s I a m th ere fo re w el l a c qu a i nted
w ith th e a mo u nt o f w a g e s p a i d i n F r a nc e E ng l a nd
G er m a ny a nd I t a l y a nd I w i s h to s tr o ng l y e m p h a s iz e
th e fa c t th a t w ith th e h i g h er w a g e s h ere u nle s s th e
U nd er w o o d t a ri ff r a te s o f th e a ver a g e s o f 8 % to 10%
are materi a ll y i nc rea s ed be fo re th e Eu r o p e a n w a r i s
Eur o p e j u s t a s s oo n a s h er p r o d u c tive p o w er
o ver
g et s u nd er fu ll sw i n g w il l s i m p l y i nu nd a te u s w ith
i mp o rt a ti o ns o f m er c h a nd i s e to a n exte nt s i m p l y un
h e a rd o i be fo re a n d i n my o p i ni o n lab o r a nd i ndu s try
w il l s u ff er to a n exte nt fa r fa r g re a ter th a n i n a ny
p revi o u s p eriod o f U nited S t a te s hi s t o r y
I
a
an
,
,
,
.
,
,
,
,
,
,
,
,
.
8
,
O ur fi nan c i a l and e c onomi c
a fter th e G reat W ar
c ondi tion s
.
W e h a ve s een fr o m th e fo re g o in g tabl e th a t th e
19 16 w a s a litt l e
a ver a g e dut y fo r th e m o nt h o f J un e
a n d th a t th e a ver a g e d ut y fo r th e e ntire
o ver
fi s c al y e a r end i ng J u ne 30 19 16 w a s o n l y
W e h a ve a l s o s ee n th a t th e i m p ort a tio ns i nt o th e
U nited S t a t e s (w ith a ll o f th e C e ntr a l P o w er s p r a e
t i c al l y not s hi pp in g a d o l l a r s w o rth o f g oo d s i n th e
l a s t t w o y ear s ) fo r th e fi s ca l y e a r s 19 14 19 15 a nd
19 16 i nc re a s ed ab o ve th o s e o f th e p revi o u s y e a r s 19 1 1
19 12 a nd 19 13 to th e terri fi c ext e n t o f o v er
000 W h en th e w a r i s o ver a nd th e p r o du c ti o n o f th e
C e ntr a l P o w er s i s re s u m ed i t i s o n l y re a s o na bl e to
s u pp o s e th a t und e r th e U n d er w oo d t a ri ff r a t e s
(th e
l o w e s t ever k no w n i n ou r h i s tor y ) i ns te a d o f t h e
i nc re a s e i n im p ortati o ns fo r th ree y e a r s bei ng o v er
it w i ll p r o babl y b e d o ub l e th a t a m o u nt
T he re s u lt s o f thi s tari ff b ill w ith it s aver a g e d utie s
w h en th e w a r i s o ver
o f a little over 8 % (J u n e
m u s t b e mo s t d etrim ent a l even i f th ere w ere no un
u s u a l c ombi natio ns i n Eur o p e fo r th e d o mi n a ti o n o f
th e w o rld s i nd u s tr y but in vie w o f th e re m a rk a ble
a lli a n c e s mad e b y th e C e n tr a l P o w er s and the E n
t ente Al li e s fo r th e c o mm er c i a l and i nd u s tri a l d om i
n ati o n o f th e w o rld s tr a d e th e U nd er w ood t a ri ff w ith
i t s ei g h t to nine p er c ent avera g e d utie s i f it s ti l l
rem ain s on ou r s t a tute b o o k s w il l m a k e th e U nited
S t a te s an e a sy p re y fo r th e g re a te s t i nfl ux o f i m p o rt s
w h i c h o f n e c e s s it y w i l l thro w mi lli o ns
e v er kno w n
a n d th e d i s
o f h o n e s t w orkm e n out o f e m p l o y m ent
a s t er and rui n to our i nd u s tri e s a nd a g ri c u lture a nd
th e d i s tre s s to o ur w o rkm e n a nd a ll th e p e o p le o f th e
U nited S t a te s w i l l b e s o far g reater th a n a ny p revi o u s
fre e t r a d e d e p re s s i o n th a t t h e fo r m er
p eri o d o f s emi —
ex p eri en c e s w il l s e em like a g entle z e p h y r i n c om p a ri
s on w ith a full fl e d g e d t o r na do
T h e follo w in g fa c t s w i ll s h o w Eu ro p e s titani c c om
h i mation s c re a t ed fo r t h e s o l e p u r p o s e o f d o minati n g
th e c omm er c e a nd i nd u s tr y o f th e entire w orld
,
,
,
,
’
,
,
,
.
.
,
,
,
’
,
’
,
,
.
,
,
,
,
,
-
.
’
,
.
T H E G R EA T O P P O S I N G
G E R MA N Y
—E ffort s
for
F O RC E S
.
i ndu s trial
p r ema c y
F r o m th e be s t in formation o btain a ble at th i s tim e
it a pp ear s th at on Janu a r y 2 5 19 16 th e re p re s ent a tive s
o f th e C entral P o w er s —G erman y
Au s tria and B u l
g aria—met at D re s d en to a pp oint a C ommi ss ion to
w o rk out an a g reem ent w hi c h a cc ord in g to th e o ffic i a l
d e c laratio n o f th e al li ed p o w er s at P ari s o n J u ne 22
19 16 h a s fo r it s evid ent ob j e c t th e e s tabli s hm ent o f
th ei r d omination over th e p rod u c tion and th e m arket s
o f th e w hole w orld and to im p o s e u p on th e oth er
c ountrie s an u na cc e p table h e g emon y
E NT E N T E A LLIES Effort s for
i nd us t ri al s up rema c y
T o m eet thi s d e c laration o f a rene w ed w orld -w id e
trad e w ar a c on feren c e o f th e alli ed p o w er s w a s h el d
at P ari s o n M ar c h 28 19 16 and a convention o f th e
re p re s ent a tive s o f G reat B ritain F ran c e B el g ium Ja
pa n Po rtu g al S ervia I tal y and R u s s ia w a s author
i z ed
T hi s re s u lted i n a c onvention w h i c h w a s h eld
at P ari s J u l y 14 to 17 19 16 an d a c o p y o f t he conv en
t ion s a g reement ca n b e found i n th e A pp endi x A
p a g e 5 7 o f thi s arti c l e
I w o uld like to c al l y o ur s p e c ia l attention to th e
i nd u s tri a l equi p ment and p o s s e s s ion s o f the c ontend
i n g ind u s trial g iant s and to s om e o f th e p rin c i p al
p oint s c o ntained in th e a g re em ent arrived at b y t h e
C o nvention at P a ri s Ju l y 14 17 19 16 s o that w e c an
c learl y u nd er s tand th e c ond ition w h i c h m u s t c on front
th e U nited S tate s w h en th e E uro p ean w ar i s over a
s ituation w h i c h w oul d b e bad en o u g h w ith an o rd inar y
tari ff but w h i c h be c om e s ab s olutel y im p o s s ibl e und er
th e D emo c rati c U nd erw oo d low tari ff w i th i ts a ver a g e
d uti e s of 8 % to
F i r s t C E NTR A L P OW ER S O N
T H E O N E H A N D (G erman y Au s
tria B ul g ari a T urke y )
T h eir p o p u lation i n c l ud in g T urk e y w i ll b e abou t
I n th e ra w material e ss ential to th e
w orld s d omi nation a s id e from iron of w hi c h Ger
m an y i s th e s e c ond l a r g e s t p rodu c er th e s e p o w er s are
d i s tin c tl y la c kin g
I n e ffic ien cy uti lizati o n o f by
p rodu c t s te c h ni c al edu c ation o i h er p eo p l e inten s ive
and
a g ri c u lture
co ord ination o f i nd u s trie s at home
s c ienti fic s el lin g or g anization s abroad G erman y l ead s
th e w orld
su
.
,
,
,
,
,
,
,
—
.
.
,
,
,
,
,
,
,
,
,
.
,
,
,
’
,
.
-
,
,
,
,
,
—
,
,
,
.
.
,
,
’
,
,
,
.
,
,
,
-
,
,
,
.
10
—
S e c ond E NT E N T E A LL I E S O N
TH E O T H E R H A N D (G reat B ri t
a i n F ran c e , B el g ium , Ja p an , P o rtu g al ,
S erv i a, It aly and R u s s i a)
,
.
T h e alli e s w ith their c olonie s number about
p eo p l e T h e y even m o n o p o liz e o r p ra c ti c al l y
c ontr o l th e e s s ential w o rld s p r o d u c t s w h i c h th e C e n
tral P o w er s l a c k
N am el y th e y c o ntr o l c oal i ron
m a n g ane s e tin ni c kel p l a tin a th e m etalli c allo y s
alum inum w ool j ute hem p flax s ilk an d rubber
R u s s i a h a s th e l a r g e s t re s erv e s u p p l y o f lumber i n
th e w orld a nd E gy p t I nd ia and R u ss i a are r a p id l y
i nc re a s in g th ei r g ro w th o f c otton
T h e y min e 15 0
tim e s a s m u c h g old a s th e C ent ral P o w er s a nd prac
ti c all y th ree —
quarter s o f th e w o rld s p rod u c tion and
b o ld l y p ro c laim t h ei r c om p lete c ontro l o f th e s ea s
T h e s e a re th e o pp o s in g for c e s
S ix t enth s of th e w orl d a ga i n s t one-t enth and
th e oth er th re e-te nth s neutral w ith no v oi c e i n
th e ma tt er
And i f th e p re s s re p ort s are c orre c t th e reque s t o f
F ran c e that th e U nited S t a te s mi g h t b e admitted to
th e c o nventio n o f th e allie s w a s re fu s ed b y G reat
B ritain
T hi s g reat c omb ination b y far th e g reate s t th e w orld
h a s ever kno w n or ever d re a m ed o f mu s t w i eld a te r
rific p o w e r and althou g h it m a y not b e aim ed at neu
tral c ountri e s i t c ertai nl y m ean s th e c ommer c ial rui n
o f s om e and a bitter ind u s trial w ar w ith oth er s
T h e a g reem ent p rovid e s for j oint a c tio n d urin g th e
w ar for t h e re c on s tru c tio n p eri o d an d fo r p ermanent
m ea s u re s o f m utu a l a ss i s tan c e th ere a fter A few quo
tat io ns from th e a g re ement s w il l b e mo s t i lluminatin g :
“
T o c on s erve fo r th em s elve s b e fore al l oth er s th ei r
”
“
o w n natu ra l re s o ur c e s a nd to d evel o p th ei r o w n
e c onomi c a c tiviti e s to th e end o f a ss urin g th ei r
i nd e p end e n c e b o th i n re gard to s ou r c e s o f s u pp l y
and i n th ei r fi nan c ial c o mm er c ial and m a ritim e
”
o r g aniz a tio n
T hi s und o ubted l y th e y h ave a ri g ht to d o if th e y
d o no t tr a n sg re s s th e ri g h t s o f neutral s bu t w h en th e y
d e c lare th at th e y w il l
“
d evi s e m ea s ure s w h i c h w i ll p revent th e C entra l
P o w er s from exer c i s in g i n ti m e of p ea c e w ith i n
t h ei r o w n territ o ri e s th e i nd u s trie s a nd profes
s io n s w h i c h co n c er n th eir ow n national d e fen s e
”
and e c onom i c ind e p end en c e
.
’
,
,
,
,
,
,
,
,
,
,
,
,
.
,
.
,
,
.
’
,
.
.
-
.
,
.
,
,
,
,
.
,
,
.
,
.
,
,
,
,
,
11
th e y th ereb y d e c lare th ei r o w n i nte nti o n to d o m i na te
th e tra d e o f th e w o rld fo r th ei r o w n p u rp o s e s a nd to
co mp el e ver y n eutral p o w e r to s u rrend er th eir o w n
ri g ht to co m m er c i a l relati o ns w ith o th er p o w er s on
term s a nd c o ndi ti o n s w hi c h an y t w o n a tion s may
a g ree u p o n fo r th e m s elve s
F ul l no ti c e h a s th ere fo re been s erved u p o n a ll th e
w o rld b y ei g ht s overei g n n a tion s b o und t o g eth er b y
o n o n e s id e
a nd b y
s i g n ed a n d s e a l ed a g reem e nt s
th ree na ti o n s o n th e o th er s id e th at th e y p r o p o s e to
fa n i nt o li fe a g a i n th e fl a m e w h i c h s et a ll o f Eu ro p e
o n fi re t w o y e a r s a g o a nd to s t a rt a ga i n (o nl y w ith
g reater determin a ti o n a nd w i th fa r g re a ter o r g a niz a
ti o n ) c omm er c i a l w a rfare fo r th e ind u s trial domina
tion o f th e w orld
I n vie w o f th e s e exi s ti ng c o nd iti o n s i t mi g h t b e
w ell a nd c ertai n l y p r o fi t a bl e to l o o k into th e co m p o
s it i o n o f th e i n divid u a l s o f th e d i ff ere n t n a tion s th a t
m a ke u p th e s e tit a ni c co mbi nati o n s fo r i nd u s tri a l s u
n
re
m
n
c
m
p
a
re
th
em
w
ith
th
e
t
l
e
t o f th e
a
c
a
d
o
a
p
y
D e m o c r a ti c P a rt y o pp o s ed th eret o in th e U nited
S tate s
,
.
,
,
,
,
,
,
,
.
,
,
’
,
.
M e r c hant s and bu s i ne s s men i n p oli
t 1cs a nd 1n c h ar g e of governmenta l
s u p ervi s io n o f E u ro p e
I n En g l a n d th e m en o f g reat bu s ine s s c a p a c it y a re
i nvited b y th e g o ver nm e n t to be co m e M ember s o f
P a rli a m e n t s o that a s u cc e s s fu l bu s ine s s m a n w he n
h e rea c h e s 5 0 to 5 5 g ive s to h i s go v ernm e nt ten t o
t w ent y y e a r s mo re o f hi s li fe fo r s er v i c e T h e c o us e
q ue nc e i s that E ng l a nd b y thi s m eth o d h a s be co m e
th e g re a te s t c om mer c i a l n a ti o n i n th e w h o le w o rld
Ever y o n e w h o k no ws a n y thin g at a ll a b o ut e co
no mic s kn o ws that th e p ro sp erit y o f a nati o n i s a
thin g o f ca re ful a nd d eli ca t e a d j u s t m e nt—a th i ng d e
p enden t u p o n ma ny c onditi o n s s o m e o f them s ubtl e
remote and al l c lo s el y i nterrel a ted—a nd th a t i t i s o n l y
p o s s ibl e for an y g over nm ent to g et th e b e s t re s ult s
a l o n g th i s line b y h a vi n g i n their l e g i s l a tive hou s e s
men o f ex p eri en c e i n bu s ine ss e c o no m i c s indu s tr y
a nd co mm er c e
M a ny o f th e s e m en in E ng l a nd are
k ni g hted m erel y fo r their s u cc e s s i n bu s i ne s s w a ys
A g a i n i n F ra nc e th e y g o th r o u g h th e s a me p r o c e s s
o n l y th ere th e y a re kn o w n a s member s o f th e L e g i o n
o f H on o r
A g a in i n G erman y ex a c tl y th e s a m e m eth
o d s a re em p l o y ed
a nd th e s u c c e ss ful bu s ine s s ma n
s o u g h t b y th e g o vern m e n t
T h ere th e y a re kn o w n
“
”
a s Co mme rcie nra th
.
,
,
.
,
,
.
,
,
,
,
,
,
.
.
,
,
,
.
,
,
.
.
12
.
w e have s een th a t w e w il l h a ve a fter th e w ar
th e g re a te s t c o m bi n a ti o n o f na ti o ns o r tru s t s th a t t h e
w o rld h a s ever kn o w n o r e v er d re a m ed o f fo r m ed a nd
b y th e g re a t e s t bu s i ne s s m e n o f th e re
o r g a n iz ed
a ll o p er a tin g fo r th e s o le p ur p o s e
s pe c t iv e c o u ntrie s
o f c o mm er c i a l d o mi n ation o f t h e w orld
A ga in w e h a ve s een that p a rti c ul a rl y i n En gland
F r a n c e a nd G er m a ny th e ex p eri e nc ed bu s i n e s s ma n
i s s ou g ht a fter b y th e g o vern m e nt a nd p l a c ed i n th e
h i g h s e a t o f h o nor i n o rd er to g et h i s c o n s tru c tiv e
a bi lit y w o rki n g fo r th e b ene fi t o f th e p e o p l e
W hat h a ve w e i n th e U ni ted S t a te s u nd er D em o
c r a ti c le g i s lati o n a n d s t a te s ma n s hi p
to o ff s et th e s e
g i g a nti c co m bin a ti o ns a nd h o w doe s th e p er s o nnel
a n d t a le n t o f th e D e m o c r a ti c s t a te s m e n co m p a re w it h
th o s e o f th e Eur op e a n n a ti o n s " I quote fr o m a sp ee c h
o f th e H o n M a rti n B M a d d en i n th e H ou s e o f R epre
s e n ta t i v e s
Ja nuar y 7 19 15
So
,
,
,
.
.
,
,
.
,
,
,
.
.
,
.
,
C la y to n
anti tru s t bil l and
g re s s me n w h o f ramed i t
-
Con
th e
.
M r Mad d e n
re ferrin g to thi s bil l s a id that it
w a s s o illo g i c al l y d r a w n th at n o ma n u n d er s to o d i t s
p ro vi s i o n s or fu nc ti o n s H e w i nd s u p a m o s t i nter
e s ti ng a nd i llum i natin g sp ee c h o n th i s s ub j e c t a s fo l
l o ws :
“
Y o u h a ve p a s s ed le g i s l a tio n to re g ulate th e
co ndu c t o f th e ten thou s and d i ff ere n t kind s o f bu s i
n e s s i n w h i c h th e Am eri ca n p e o p le a re e nga g ed
i n w hi c h th e y h a ve
o f c a p it a l i n
ve s ted and not a ma n n o rth o f M a s o n a nd D ix o n s
line no t even a D e m o c rat w a s a l lo w ed to s erv e
o n th e c o m mittee th a t d ra ft ed th e le g i s l a ti o n a nd
e ng ineered i t th r o u g h th e H o u s e N o n e but m en
livi ng i n th a t s e c ti o n w ho s e bu s i ne s s i s c o tt o n
rai s i n g w ere g ive n a n o pp o rtunit y to m a ke a s ug
g e s ti o n a s to w hat th e le g i s lation s hou ld be
“
You h ave th ro w n th e bu s ine s s o f th e c ountr y
i nt o c h a o s b y th i s l e g i s lati o n N o ma n k no w s h o w
h e i s to b e a ffe c t ed b y i t T h e C l a y ton bil l d o e s
m o re t o d i s turb th e bu s ine s s o f th e c ou ntr y th a n
a ny l e g i s l a tion w hi c h h a s been c o n s id ered b y t h i s
o r a ny o ther C o n g re s s d uri n g m y re co lle c ti o n a nd
y et i t w i ll b e no t ed th a t th e indu s tri a l a n d fina n
c i a l i ntere s t s o f th e N o rth w h ere th e g re a te s t d e
v e lo pm e nt a l o n g th e s e li n e s h a s t a ke n p la c e h a d
no p art in th e p re p a r a ti o n o f th e l e g i s lati o n w hi c h
.
,
in
,
.
,
’
,
,
,
.
,
,
.
.
.
,
,
,
13
s o vi tall y a ffe c t s th e s e intere s t s ; th a t no R epre
s enta ti v e o f eit h er th e D emo c rati c o r R e p ubli c a n
P a rt y n o rth o f th e M a s on and D i x o n line w a s
p ermi tted to a s s i s t in th e p re p ara tion o f th e C la y
ton a nti —
t ru s t bi ll
“
T h e s e c tio n o f th e c ountr y re p re s ented i n
C on g re ss b y m e n h a vi n g ex p eri en c e i n bu s ine s s
a nd und er s ta n d in g th e c ountr y s bu s ine ss need s
w a s i g no red i n t h e p re p ar a ti o n o f thi s bi ll and
the S ub C om m ittee o f th e J udi c i a r y C o mm ittee
w hi c h fr a m ed th e bi ll c on s i s ted o f th ree S outher n
D emo c r a t s— F l o y d o f Yel lville Ark a to w n o f
4 00 p eo p l e a t the fo ot o f th e O zark M ou ntai n s
w h ere no bu s i ne ss tra n s a c ti o n ex c eedin g
ha s p robabl y ever been h eard o f ; C la y t o n o f Eu
fa ula A la a t o w n w h o s e mo s t im p ort a n t bu s in e s s
i s c ondu c ted b y a ma n w h o s ell s hard boi led e gg s ;
a nd C arlin o f Al ex a n d ri a V a
a t o w n w hi c h M a rk
Tw a i n s a id w a s th e o nl y fi ni s h ed c it y i n th e
w orld the l a s t na i l h a vi ng been d riven i n it and
th e g ra s s w a s g r o w in g o n i t s s treet s
.
’
,
-
,
.
,
,
,
,
,
.
,
,
.
,
,
‘
,
,
’
.
R e fus al to e s tabli s h c o s t s y s tem for
armo r p late w ork s
T h e ver y be s t brain s o f th e D emo c rati c P art y in
th e U nited S tate s S e na t e a nd H ou s e o f R e p re s entative s
”
“
v o ted fo r th e s o c alled G overnm ent Armo r P lat e B ill
fo r s it e and build in g o f an
a pp r o p ri a tin g
O f c our s e i t w i ll take
a rm o r p l a te p la n t
to
more to o p erate s u c h a p l a nt
Th e
a vo w ed p ur p o s e fo r e s t a bli s hi n g s u c h a p l a n t i s to
a nd i f s o it s hould b e
s a ve th e g o ver nm e n t mone y
w o rth w hil e to fi nd o ut exa c tl y w hat th e fa c t s are
relativ e t h ereto H o w ever b o th i n th e H o u s e o f R e p
re s enta t iv es a nd th e U n it ed S tat e s S e na t e th e y d e
their
c li ne d to a cc e p t th e fo l lo w in g a m endment to
bil l :
“
T hat ex p ert c hartered a cc ou ntant s s h all b e
em p l o y ed to O p en a s et o f book s w h i c h s h a l l ex
h i bi t ever y item o f ex p en s e d i re c t a n d co llater a l
w h i c h ma y be c h a r g ed a g ain s t th e p re p ar a ti o n o f
th e p l a nt th e s ele c tio n a nd p ur c ha s e o f a s ite th e
c o n s tru c ti o n a nd equi p m ent o f th e p ro p o s ed p lant
a n d th e c o s t p er t o n o f th e out p ut fo r ea c h m o n t h
”
o f th e o p eration o f th e p la nt
B oth i n th e H ou s e o f R e p re s entative s and in th e
U nited S t a te s S enate th i s a m end m ent w a s voted d o w n
s ol el y b y D em oc rati c vote s Every o ne kno ws th at an y
.
-
,
.
.
,
.
,
,
,
,
,
,
.
.
14
m a nu fa c turin g con c ern to exi s t at all m u s t h a ve
th eir c o s t s a nd p ro p er c o s t s B ut o f c ou r s e the g o v
w h ile th e y
e rnmen t o f th e U nited S t a te s c an re fu s e
h av e vote s to al l o w co s t s to b e mad e and if th e c o s t s
o f p rodu c tio n are t w o o r thre e time s w h at t h e y c ould
buy th eir s u p p li e s for out s id e no o ne w ill ever kno w
abo ut i t und e r th i s s ys tem a nd th e extra ex p en s e w il l
s im p l y be d e d uc te d fro m th e p o c ket s o f th e peo p l e
S u c h imb e c i l e method s o f bu s ine s s a s th o s e p rae
ti s ed b y o ur D emo c r a ti c S en a tor s and D emo c r a ti c C o n
n
a ny further ar g um e n t
r
m
p
rove
w
ithou
t
th
e
e
es
s
g
c har a c ter o f th e m en no w i n p o w er at W a s hin g ton
Yet th e s e a re th e talent s in th e D em o c r a ti c P art y
th at w e h ave a rra y ed a gain s t th e g reate s t c o mbinatio n
and th e g reat e s t bu s ine ss a nd c on s tru c tive b r a in s th e
w orld h a s ever kno w n I f s u c h m en are to be c on
ti nued i n p o w er th e d i s a s trou s re s ult s to o ur i n
d us try a g ri c ulture an d labor are e a s i l y ima g ined
I t s im p l y m ean s th i s that unl e ss th e voter s o f th i s
c ountr y return th e R e p ubli c an P art y to ful l p o w er i n
th e exe c utive and l e g i s lative bod i e s o f th e c ou ntr y o n
N ovembe r 7th n ext t h e re s ult s to labor ind u s tr y
a g ri c u lture and to al l ou r p eo p le w il l b e th e m o s t d i s
a s trou s that Ameri c a ha s ever s een o r ever d ream ed o f
May G od g rant our v oter s w i s do m in th i s th e
h o ur of t h eir ne ed
,
,
.
,
,
,
,
.
,
,
.
.
,
,
.
,
,
,
,
.
,
.
Joh n G ol den G eneral P re s i d ent of th e
T ex til e W orker s of Ameri c a c o n s i d er s
th e U nd er w oo d tari ff bil l a failur e a nd
look s w it h g reat alarm w h e n th e w ar
i s ov e r up o n g r e ater i m p o rt s w i th
a t t end ant d i s a s trou s res ult s to l a bor
I n vie w o f th e U nd er w ood tari ff bi ll re s ultin g i n
t he lo w e s t t a ri ff rate s ever kno w n i n th e h i s t o r y o f
th e U nited S tat e s fa r belo w th e rate s o f a ny p reviou s
tari ff bil l s in c e o ur natio n be c a m e a t al l an i nd u s tri a l
and a g ri c ultu ral fa c tor and l o w er toda y th a n tho s e
o f an y lar g e c omm er c ial p o w er o f Eu r o p e
to g eth er
w ith t he kno w n and adm itted fa c t th at th e w a g e s i n
Am eri c a are 2 % and 3 tim e s tho s e obtained i n th e
be s t p a id s e c tion s o f E uro p e it i s note w orth y w h a t
l a bo r th rou g h Joh n G o ld en G en eral P re s id ent o f th e
U nited T exti l e W o rker s o f Am eri c a—w hi c h o p er a te s
i n th e entire textil e ind u s t r y o f th e U nited S tate s
ha s to s a y relative to th e d um p in g o f good s on th e
Am eri c an market w h en th e w ar i s o ver a nd th e di s a s
trou s e ffe c t s o f th e s e im p ort s on Am eri c an labo r
,
,
,
,
.
,
,
,
-
,
,
,
,
,
.
15
T h e fol lo w i n g s t a ti s ti c s o f th e a nnu a l o ut p ut i n
d o l l a r s o f e a c h b r a nc h o f the textil e i nd u s tr y to g eth er
w ith th e n umb er o f p e o p le em p l o y ed a nd th e number
o f p e o p le d e p end ent the reon
i s m o s t i n s tru c tive :
a
,
,
a an a ra g f 3
d p nd n s f a h
w
li
23113 i En g
s im at an d
ti
n
t
:guxii g p ggf
di r ly d p n d nt
upo n th s i n d us t r i s
T ke
ran
B
I
A
ch
nnual
U
n dus ry
t
.
3
.
o
mpu
lant s
P
‘0’ 19 14
e e
N‘lmbc '
Pcople
ms
e
ve
e
t
82
0‘
1
mplo y ed
lant s
uch p
o
1
s a
scr
c
e
c
e e
e e
tt
i
ti
s
ect
Co
or e c
ve e t
va
e o
c
e
e
on
W oo l en
W o rst e d
H os i ery
K nit G o o d s
il
Jut e
T tl
S k
o a
4
or
5
p e op l e d i re ctl y d e p end ent th ereon and
ti mes tha t nu mb er ind i rec tl y d ep end ent th ereo n
.
J o h n G old en c ertai nl y i s i n a p o s i tion to kn o w
w h eth er o r not th e p re s ent U nd er w oo d tari ff w ith
it s lo w e s t avera g e d ut y rate s i n th e h i s to ry o f
th i s c ount ry i s s o d etrime ntal to th e Ameri c an w o rk
m en and th ere fo re hi s rem a rk s und er th e he a di ng
”
“
A P rote c tive T ari ff fo r th e T extile I nd u s tr y in th e
”
“
are mo s t w orth y o f co n
S e p temb er P rote c ti o ni s t
s i d eration
M r G old en w rite s o f th e ne c e ss it y o f p ro p er p ro
viz : co tt o n
t e c tio n i n a ll o f th e texti l e ind u s tri e s
w o ol s ilk flax j ute et c T a ki ng a s a sp e c ial ex a m p le
th e w o o l en a nd w o r s ted i nd u s try h e s t a t e s th a t no
doubt i n th e p a s t th ere h a ve be en p la c ed o n s o m e o f
th e w oolen and w or s ted p rod u c t s abnormal tari ffs
bu t h e s a ys :
“
N everth el e ss thi s i s no rea s o n w h y th e w h o le
N e a rl y
o f th e i n du s tr y s hou ld be m a d e to s u ffer
a quarter o f a m illi o n p e o p le are em p lo y ed d i
a nd t a ki ng a n a ver
i
n
th
e
w
olen
indu
s
tr
y
rec tl
o
y
a g e o f th ree d e p end ent s o n e ac h p er s o n w o rki n g
m
a ns th a t
w
h
i
h
i
s
a
c
n
s
erv
a
tive
e
s
tim
a
te
it
e
c
o
)
(
o n e mi llion p e o p le are dire c tl y d e p e nd ent u p o n
th e w ool manu fa c tu rer s fo r th eir m ean s o f live
,
,
,
,
,
,
,
.
.
,
,
,
,
,
.
,
.
,
,
.
,
,
h h oo d
.
“
I t i s e s tim ated th ere are
w ool g ro w er s
in th e U nited S t a te s
“
T h e R e p o rt o f th e U nited S t a te s T a ri ff B o a rd
i n 19 12 le ft no ro o m fo r a r g u m ent re g a rd i ng th e
hi g h er s tandard o f w a g e s p aid to w o o l w orker s
.
16
jud g m e nt about th e g r eate s t mena c e th a t th r ea t ens
ou r i n d us try i mmedi atel y a fte r th e w ar on th e o th er
,
s i d e i s over wi l l be th e o p enin g o f our doo rs to fo r e i g n
te x til e fa bri cs man ufa c tured und er th e low s ta nda rd s
p r evai li n g i n a ll of th e E uro p ean c oun tri es fo r c ing
up o n th e t ex ti l e i nd us tri e s i n th i s c oun try a f o r ei gn
”
c om p eti tio n wi th w hi c h i t w ill be i m p o s s i bl e to c o p e
“
K ind l y note th at M r Gold en s tate s w it h w hi c h i t
”
w i l l b e im p o s s ibl e to c op e
Al s o k ind l y note th at
w ith hi s g reat ex p erien c e h e kno ws th e fa c t s about
w hi c h h e i s talkin g I n fa c t a ny s ane pe rs on m us t
kno w th at no ta ri ff i n th e U nite d S t a t es t hat a vera g e s
o nl y a lit tle ov er 8 % to 9 % w i th w a g es h ere 2 1 2 to 3
t imes tho s e of th e b es t -p ai d s e c tion s of E uro p e—
c an
p o ss i bl y c o m p e n s at e for th e g reat d i ffe r enc e be tw een
th e h i gh e r w a ges p a i d h ere a nd th e lo w er w a ges p ai d
a broad
T he re fore th e i nfl ux o f tremendou s im p orta
tio n s w h en th e w ar i s ove r i s s im p l y i nevitable and
u nl e ss th e D emo c rati c U nd er w ood S immon s tari ff bi ll
i s d i s p la c e d b y h i g h er tari ff rate s d urin g 19 17 th e
c haoti c and d i s a s tro u s re s ult s to labor indu s try and
a g ri c ulture in th e U nited S tate s w i ll b e s u c h a s have
n ever be fo re even b een a p p roa c h ed b y an y p reviou s
e x p erien c e i n th e h i s tor y o f our c ou ntry
I f i t i s s o c l ear that a low t a ri ff c annot
benefit l a bo r i nd tI s try or a gr i c ult ur e
’
w h y i s i t po s s i bl e t o plac e s u c h d i s as i
tro us ta ri ff leg i s l a tio n a s th e U nd er
w oo d -S immo ns ta ri ff bi l l o n our s ta t
ute book s "
B ut s om e w ill s a y i f it i s s o c lear that w ith w a g e s
2 % and 3 time s h i g h e r i n Am eri c a th an tho s e o f th e
b e s t p ai d p art s o f Eu ro p e a lo w tari ff o f 8 % o r 10%
i nd u s tr y a nd
a vera g e mu s t b e d i s a s trou s t o labor
a g ri c ulture o f th e U nited S tate s h o w i s i t th a t ou r
l e g i s lator s c an p o ss ibl y b e s o fo o li s h a s to p la c e s u c h
d i s a s tr o u s t a ri ff l a ws a s th e D emo c rati c U nd er w o od
fo r
S imm o n s tari ff bill (w ith it s avera g e d ut y o f
for th e entire fi s c a l
J une 19 16 and an aver a g e o f
"
1
1
y e a r endin g June 30 9 6 ) on our s tatut e book s
I
have p er s o nall y a nal y z ed th i s p ha s e o f thi s ver y im p or
tant s ub j e c t and m y p u r p o s e i s to end eavor to p re s ent
to y ou s u c h c lear re a s o n s th at y ou w i ll readi l y s ee
”
“
unl e s s th e s o lid S outh c han g e s it s p oliti c al faith i n
th e m atter o f p rote c ti o n i t i s im p o s s ibl e fo r th e north
e rn th e w e s tern and ea s tern voter s to vote th e D emo
c rati c ti c ket and not h a ve th eir o w n a nd th e c ountry s
be s t intere s t s everel y d etrimented thereb y
,
,
,
.
.
.
.
,
—
.
,
,
,
,
-
,
,
.
,
,
,
,
,
,
-
,
,
,
,
,
,
,
,
,
,
’
.
18
Earl y D e m oc rati c P r es id ent s an d
s tat es men i n c l udi ng T homa s Jeffer
s o n th e g r e at l ead e r o f th e D emo c rati c
P a rty w ere s tro ng p rot e c ti o ni s t s
I g ive y ou h ere w ith th e re c ord s o f a l l th e P re s i
d ent s from G eor g e W a s h in g ton (ele c ted i n 1789) to
th e p re s ent o c c u p ant o f th e W h ite H ou s e w ith th e
n o t a tion s a s to th e p o liti c a l faith and tari ff vie ws o f
s a id P re s id ent s and c on s equ entl y th e p oliti ca l fa ith o f
thei r c abinet s and th e s tate s men s u rround in g the m :
T A B L E O F P R E S I D E NT S
,
,
.
,
,
,
.
P oli ti ca l
E lected
i n Yea r
pa rty
.
1796
1800
G eorg e W ash i ngt on
F ed erali s t
J ohn A d ams
T homas J eff erson
D emocra t
1808
1812
1816
1820
1824
P ro t e
vi ews
ti
o ni s t
c
.
u
‘6
6‘
Ta rifl
.
J ames M ad i son
J ames M onroe
u
u
a
J oh n "u i ncy A d ams
A nd rew J ack son
Fed erali s t
D em
rat
op
N ote K i nd l y no t e th at ev ery U 5
P res i d ent p r evi o u s to 1836 w as a
s t ro ng p ro t ec ti oni s t
-
.
.
.
.
1836
1840
M ar tin
Van
W i lli am
Democra t
Bu r en
Henry Har
r1so n
1844
J ames
1848
185 2
Z a ch ar y
185 6
J ames Bu ch anan
lg
Abr
h am Li col n
n
a
U l y ss es S G rant
1868
Democrat
K Po lk
.
T ay l o r
F rankli n P i erce
W hi g
Democra t
R epub li can
Fr ee T r d
T ar i ff fo r rev enu e
onl y
Pr ot ecti oni s t
Fr ee T rad e ; tar i ff
fo r r ev enu e o nl y
P rot ecti oni s t
Fr ee T ra d e ; t ar i ff
f or r ev e nu e o nl y
Free T rad e ; tar i ff
fo r r ev enu e o nl y
P rot ectioni s t
‘‘
.
u
1876
1880
1884
Whi g
”
a e
“
H
R u th er for d
B H ay es
J ames A G ar fi el d
G ro v er C l ev el and
.
.
N ote
—H
u se
o
and
D emocra t
S enat e were R e
T a riff
o nly
for
rev enue
d et ri ment al D emo
cr ati c l eg i s l a ti on was p a s s e d
R ep ub li can P ro t ecti oni s t
B enjami n H arr i son
Grov er C l ev el and
D emocrat T a rifi for r ev enu e
o nly
R epub li can P rot ecti oni st
inley
W illi am Mclfi
p ub li can
so no
,
.
1888
1892
lggg
1904
1908
1912
’
‘
T h eodore R oos ev elt
W illi am H T a ft
W ood row W il son
.
‘‘
a
u
Democrat
19
T ar i ff
onl y
for
r ev enu e
T h ere h a ve been 32 P re s id enti a l ele c ti o n s o r a d
m i ni s tr a ti o n s s in c e o ur G o ver nm e nt w a s fo r m ed i n
1789
Y o u w i ll n o t e from th e p re c ed i ng t a bl e th i s
s i g ni fi c ant fa c t th a t o f the 32 P re s id ential term s
25 w ere Protecti on A d mi ni s t rati ons
”
“
”
and onl y 7 wer e
T ar i ff for R ev enu e only or F r ee T rad e
“
A s w i ll b e s een l a ter s ix o f the s e T a ri ff fo r
”
R evenu e O n l y ad mi ni s tr a ti o n s w ere hi g hl y di s a s trou s
to i ndu s try a nd al l o ur p eo p l e a nd the o nl y re a s o n
th e o th er a d mini s tr a ti o n ( 1884 1888) w a s not d i s a s
tro u s w a s be ca u s e bot h th e S enate a nd H o u s e o f
R e p re s entative s w ere R e p ubli c a n thereb y p reventin g
“
”
“
th e th eo ri e s of F ree T rad e a nd
T ari ff for R evenue
”
O nl y from bein g c a rri ed o ut
I t w il l b e s een fr o m th e abov e T abl e o f P re s id ent s
th a t M artin V a n B uren el e c ted in 1836 w a s th e fir s t
D emo c rati c P re s id ent to e sp ou s e th e do c trin e o f free
“
trad e tari ff for revenu e o nl y a nd that P r o te c tion i s
”
and that al l P re s id ent s p re c ed i ng
U n co n s tituti o nal
h im from W a s hin g ton
w ere s tron g P ro tec
t i o n i s ts
i n c lud in g T homa s J e ff er s on
the
found er o f d emo c ra c y
I n o rd e r to s ho w th e c au s e s w h i c h brou g ht abou t
th e c o m p let e c h a n g e w ith in th e D emo c rati c P a rt y
“
”
“
fr o m s tron g p rote c tion to free trad e and tari ff fo r
”
revenu e o nl y I g iv e h ere w ith i n t a bl e form a re c o rd
w ith notatio n s o pp o s ite
o f th e d i fferent tari ff bi ll s
ea c h a s to th e c ond iti o n o f th e co untr y th ereund e r
rel a tive to p ro sp erit y and adver s it y from th e earlie s t
tari ff bi ll ( 1789) to the p r es ent tari ff (1913)
‘
.
,
,
“
.
,
,
-
,
-
.
,
-
-
,
-
,
,
,
,
.
,
,
,
,
,
,
T AB LE OF
T h e per i o d s
P eri od a nd
d a te of
Tarifi Law
.
of
d epr es s i on
.
(U S
.
s h ow n
ture
K i nd
f
o
T arifl
.
in
re d
.
a d va
'
i nk
.
I nd us try A g ri cul
a nd th e pe ople of th e
on
,
Umted S ta tes
'
.
,
1789
a re
R es ult
F i r s t t ari ff S p ec i fi c and
b ill Ju l y 4 l ot em rates
,
T A R I FF S
.
T h i s th e fi rs t U S Pro t ectiv e
T ar i ff A ct wa s i ntro du ce d by
J ames M a d i s on a D emocra t
w h o l at er b eca me P r e s i d ent
a nd
w a s s i g n e d by G eor g e
W as h ing ton t h en P r es i d ent
T h e b enefi c i al eff ect s o f t h i s
firs t t a r i ff w er e s een at once in
th e i n du s t ri a l p rog res s ma d e
i n b o t h a gr i cu lt u re and manu
fact u res i n s p it e o f a tt emp t s
M oth er C ountr y to
th e
of
c ru sh out th e i nfant i ndu s t r i es
o f th e S t at es
.
,
.
,
.
,
,
G ov ernment
f or m e d i n
,
.
,
,
.
Aug
.
10, 1790 S pec i fi c an d a d v a
lorem r at es
T h i s act o“nl y a f”
s p i r it s
fected
p ay i n speci fi c d u
.
M ar
.
ti es
May
g
.
S p eci fi c and a d v a
lo rem rat es
S p ec i fi c and a d v a
lo rem ra t es
T h i s act aff ec t e d
o nl y a f ew a r ti cl es
pay i ng s p eci fi c a nd
a d v al or em ra t es
T h i s act aff ect e d
onl y a few arti c l es
p ay i ng s p ec i fi c a nd
a d v a l or em r a t es
T h i s act onl y a f
fected s a lt , pay i n
.
Ju ne
.
J an
.
.
Ma r 3 1797
.
,
.
Ju l y
8, 1797
a s
May
13, 1800
p ec i fi c du t y
g
.
T h i s act a ff ect e d
o nl y a f ew a r ti cl es
p ay i ng s p eci fi c and
ad v a l o r em rat es
.
21
T h es e t ar i ff b ill s wer e fo r
s t r eng t h eni ng s p ec i fi c ar ti cl es
and d i d not ma t er i a ll y ch ang e
th e g ener a l r es u lt s ex c ep t b y
i ncr eas e o f rat es on speci fi c
a r ti c l es
,
,
.
R es ult
P eri od a nd
da te of
T arifl Law
K i nd
.
,
1804
T hi s
ly
ca
act,
ll ed
.
co
“
p os i ng
.
Me d iter
an a
”
im
,
dd iti o n
in
du t y o f
a dd iti o n to t h e du
ti es th en i mp o s e d
b y law
T hi s act a ffect e d
onl y a f ew a r ti cl e s
pay i ng s peci fi c r at es
T hi s act i mp os ed
d oub
l
e du ti es k nown
”
“
as
war du ti es
al
th e
S ta tes
mmo n
fu n d
ranean
Uni ted
Tariff
f
o
A g ri cul
people of th e
,
ture a nd
.
Mar 26
Indus try
on
.
M ar 27 1804
.
,
.
Ju l y
.
Near l y
p artl y
p er i o d
all
i mp ort ations
d
tha t
ce a s e
,
due to th e wa r o f
R ap i d p rog r es s an d
a d v anc e wa s ma d e in a ll li nes
o f i ndu s t r y
I n s p it e o f th e
h ar d ti mes and s t res s u p on o ur
.
.
reso
u rces
ma d e
neces s a
ry b y
w it h E n g l a nd , W E
MAD E C ON S TANT A ND
S U B S T A N T I A L PR O G
R ES S IN B OT H I ND U S
T R Y A ND A GR I CUL
T UR E
th e w a r
.
Ju l y
Thi s
act
ly
on
af
lt p ay i ng
a spec i fi c du ty
T h i s act conti nu e d
th e d ou bl e du ti es to
Ju ne 30 1817
fected
sa
.
Feb
.
,
Apr
.
.
T h i s act a ff ect ed
b u t few arti cl e s
p ay ng s pecrfic rat es
T h i s act onl y a i
fecte d w
i nes pay
i ng s pec zfic r at es
.
i
Mar
.
.
“
”
.
22
P e ri od a nd
da te of
T arifl Law
R es ult
K i nd
.
May
S p ec i fi c
.
mi ni mu m
,
,
mp ou nd a nd a d
v al or em F i rs t rea l
.
ti r el y
tiv e t ari ff
Known by
pro tec
en
.
May
its ene
mics and fore i g n
e rs as th e T ar i ff o f
Ab o mi nati o ns S pe
M ini mu m
c ific,
Co mp ou nd an d a d
v al orem rat es from
20% to
.
,
May
T hi s
ly
act
on
it ti
A g ri cul
pe ople
f
th e
o
.
ig
du ti
l b
T h e a g a on fo r h h er
es
fo o w ng th e
ener a
ank
ruptcy, ch aos a nd r
n o f th e
lo w
a r ff
ra es ecame so
ea rnes
and
ns s en
ha
in
1824 a n ew
ar ff
law wa s
p a s s e wh ch r es o re many
ll
co
ly
I ndus try,
ture a nd th e
Uni te d S ta tes
Ta riff
f
o
on
i
g
ui
t i
t
b
t
i i t t t t
t i
d
i
t d
du ti es to a p rot ectiv e poi nt
T h e s e w ere au g ment ed by fur
t h er a d v ances in 1828 a ll o f
th e du ti es b ei ng a d v ance d to a
p ro t ectiv e p oi nt Th i s gav e our
i n du s t r i es a new s tar t and our
ag r i cu lt u r e gr ea t i mp et u s
T he
e ffect w a s a l mo s t li k e mag i c
o ur i ndu s t r i e s a nd a g r i cu lt u r e
a d v a nce d by l ea p s and b ou nd s
a n d so me o f th e for mer fr e e
t r a d er s i ncl ud i n g D ani el W eb
s t er b ec a me mos t s t au nch a d
v o c ates o f p r ot ectiv e t ar i f
f
.
,
.
.
af
fected wi nes p ay i ng
a s pecrfic r a t e
.
,
,
,
.
May
Th i s
act
on
ly
ai
fecte d c o ff ee, tea
p ay i ng
a nd
co co a
,
s
p eci fi c rat es
te
r at es
T h i s act onl y a f
mol as s e s
fected
pay i ng s pec1fic ra t es
T h i s act onl y a f
fecte d s alt p ay i ng
spec i fi c r at es
T h i s act“ only a f
fected
w i nes o f
”
F rance p ay ing s pe
c ific rat es
S p eci fi c M i ni mu m
C omp ou n d a d v a
lo rem from 5 % to
ducing
May
,
th e
.
.
May
.
Ju l y
.
Ju l y
,
,
,
At th i s ti me th e S ou th was
ma k i ng p ers i s t ent d emand s for
l o wer t ar i ff and t h i s t ar i ff wa s
ma d e w it h th e i d ea o f mak i ng
i f pos s i
c onc es s i o ns to meet
d emand s from th e
th e
ble
S o u t h ern S t at es
,
,
.
23
P eri od a nd
da te of
T arifl Law
Ki nd
.
S ep
'
T arifi
f
o
S p ec i fic
.
I nd us try, A g ri cul
ture a nd th e people of th e
Uni ted S ta tes
R es ult
on
.
.
and a d v a
lo rem fr om
to 2070
.
A ug 30, 1842
.
S p ec i fi c M i ni mu m
C omp ou nd a d va
lo rem f r om 1% to
,
,
,
,
T h i s was a p rot ec t i v e t ar i ff
p asse d by th e W h i g P ar t y
P res i d e nt H arr i s on d i e d a nd
Vi ce P res i d e nt Ty ler becom
i ng P res i d e nt ve t o e d th e b i ll
bu t Cong ress p asse d it over h is
ve to and th e resul t o f th e re
t urn to p rot ec ti on was a g a i n
ma rvel o us and s oon p r o s p er
ity re i gne d as never be fo re
.
-
,
,
,
.
,
.
Mar
.
W ent
i nt o
e ffec t
A pril 12 186 1 T h e
fi rs t R e p ubl i ca n t ar
i ff fo r reve nue a n d
p rot ec ti on, t e nd i ng
to a ff o r d p r ot ec ti on
to o ur lab o r and
nd us t r es
.
,
i
i
.
24
t ar i ff was” k nown as T h e
M o rr i ll T ar i ff a nd th e be ne
fic ial resul t s o f sa me w ere im
me d i a t el y fel t and subse q ue nt l y
w ar t ar i ff b i lls w ere
o t h er
p asse d to ra i se reve nues so
t h at th e p er i o d o f p r ot ec ti on
ex i s t e d fr om th i s d at e to 1894
“
T hi s
,
,
.
Peri od
d a te
f
o
Ma r 3
.
Result
a nd
a nd
,
1883
W e nt
i nt o
on
Ag ri culture
th e
I nd ustry ,
f
the
o
e ff ec t
J ul y 1 1883 k now n
as th e T ar i ff Co m
G en
mi ss i on B i ll
eral rev i s i on reduc
ti on and i ncrease
S evere
o f f ree l i s t
bl ow to th e woo l
i nd us t ry
W e nt i nt o e ff ec t
O ct 6 1890 k no wn
“
as th”e McK inley
B ill
Ch ang e s
f ro m a d val o re m to
s p ec i fi c rat es a nd
e nlar g e d f ree l i s t
S u g ar ma d e free
a b ou nt y subs tit u t
ed
R ec i p r oc i ty
,
,
.
,
,
.
.
O ct
"
.
.
,
,
.
,
.
.
J ul y
24 1897
,
as th e D ing
ley B i ll th e mos t
p er fec t and success
ful t ar i ff law en
ac t e d up to t h i s
p er i o d Many c om
Known
,
.
po und
d uti es
a nd s pec
i fic
.
T h i s b i ll brou ght u np rece d ent
e d p r o s p er i t y
I ndus t r y a g r i
cul t ure and th e p e op le fl our
i s h ed as never be fo re
T h ere ”
w as in 1907 a p a ni c w h i c h w a s
k nown as th e W all S t ree t pa n
ic
I t w as onl y o f a few
mo nt h s d urati on and wa s con
fi ne d to fi nanc i al ce nt ers I n
d ustry a nd a gr i cul t ure w ere in
no way d e t r i me nt all y a ff ec t e d
.
,
.
,
.
’
.
.
A ug
.
5 1909
,
th e
as
P a yne B i ll
S ub
s tantial
re duc ti ons
w ere ma d e i n s o me
sc h e dules
resul t
ing
in lar g e in
crease in i mp or t s
r e v enu e s
and
ma ny c o m p o u n d
and s p ec i fic d u ti es
Known
.
,
.
26
T h i s b i ll conti nue d th e p r o s
perity o f p rev i o us b i lls a nd th e
h i g h w a t er mark o f p r o s p er it y
o i th e c ou nt r y was a tt a i ne d in
,
'
19 12
.
Peri od
Result
a nd
a nd
on
the
Ind ustry , Ag ri culture
people of th e United
T he p er i od s o f de p re ss i on and p an i c are s h o w n i n
red i n k i n the fo re g o in g tab le
Y o u w i ll have s ee n
th at the s e p eri o d s o f de p re ss i o n d i s a s te r and p ani c
“
are c o in c id ent w ith the p eri o d s o f lo w tari ff o r T ari ff
”
fo r R evenue O nl y
and s emi free trade and that the y
run c o n s i s tentl y fr o m 1789 w he n o ur go vernme nt w a s
formed to the p re s ent t i me vi z :
.
,
-
,
,
,
,
-
,
27
.
T HE
P E R I O D S OF D E P R E S S I O N A R E S I M P L Y
“
A L I S T O F D E M O C R A T I C T A R I FF F O R
”
R E V E NU E
O N LY
LE G I S LAT I O N
AS
W I LL B E S EE N F R O M TH E F O LL O W I N G
TA B L E :
,
P eri od
.
783-1789
Ki nd
f
o
Tarifl
R emarks
'
Abs olu t el y
T ra d e T ar i ff
.
Free
.
.
W as h i ng t on ca lle d c onfere nce
S t at es due to th e t err i
ble d i sas t er cause d b y f ree
t ra d e T h e o u t co me o f t h i s
c on fere nce was th e fo r mati on
in 1789 o f th e Go v er nme nt o f
th e Unit e d S t a t es
B a nkru pt c y and g e neral finan
c ia l ru i n
was al mo s t every
w h ere
T h i s i s th e p er i od wh e n W ood
ro w W i ls o n in h i s h i s t o r y o f
th e A mer i ca n R e p ubl i c s t a t es
as a t ru t h ful h i s t o r i an tha t
of
th e
.
.
.
816- 1820
t ar i ff p er i o d
Low
a ft er
1812
th e
W ar
of
.
,
,
th e remedy th a t
di sa s ter of a low
protecti on wa s
cured
ta rifl
th e
‘
833 1839
-
calle d
Co m
p r omi se T ar i ff o f
1833
w it h re d uc
t ions to e nd eav o r
to
c onc i l i at e th e
S ou th wh i ch h ad
t h reat e ne d to se
ce d e
“
al
S o calle d
k er
W
”
T ar i ff
1846
of
a nd
th e t ar i ff o f
185 7
T h ese w ere
ma d e in a f ur t h er
a tt e mpt to sa ti s fy
th e S o u t h er n f ree
t ra ders
So
“
-
”
,
.
T h ese re duc t i ons w ere s o h eav y
t h a t t h e y resul t e d in th e c ou n
t r y su ff er i ng th e mo s t d i sas
t rous fi nanc i al d e p ress ion in
i t s ex i s t ence
.
,
.
846-185 7
894
-
,
.
.
Due to th e Mex i c an war i n
1848 and th e C r i mea n war
abr o a d a nd th e d i sc over y o f
g o l d in C al i fo r ni a i n 1849 th e
,
,
,
earl y y ears o f t h i s b i ll (jus t
as we h ave w ar and bl oo d
s o ake d p r os p er it y t o d a y ) were
p r o s p er ous bu t wh e n t h ese
u nusual causes d i sa pp eare d th e
resul t w as mo s t d i sas t r o us to
o ur p e o p le a nd ru i no us to o ur
i ndus t r i es bu t th e cul mi na
t i on ca me in th e s t i ll l ow er
t ar i ff o f 185 7 w h i ch was ma d e
s t i ll furt h er sat i s fy the
to
S ou th
T h e n o ccurre d th e g rea t es t
p an i c ever k nown to th e A m
erica n na ti on p rev i o us to t h a t
ti me B a nkru pt c y and ru i n
th e con
w ere on ever y h a nd—
d itions o f i nd us t ry and a g r i
cul t ure were c h a ot i c and th e
a g ony o f all th e p e op le w as
th e mo s t i nt e nse ever k no w n
i n th e h i s to r y o f th e g overn
me nt
,
,
,
,
.
S calle d
Go r ma n
o-
W i ls on
“
T
ar
i
ff
”
B i ll Ma d e ex t e n
s i ve re d uc t i on s and
p u t w oo l on th e
f ree l i s t
.
.
.
,
.
28
Peri od
Rema rks
.
.
T h e me mor y o f th e p a ni c o f
t h at ti m e i s s ti ll in th e mi nd s
o f mo s t o f th e A m er i ca n peo
p le P r obabl y 5 0% o f all th e
A mer i can ra i lr o a d s w ere in
th e h a nd s oi rece i ve rs a n d cer
tainly 30%
th e n a t onal
of
banks were in th e h and s o f
rece i v ers , and all ndus t r y,
ag r i cul t ure and lab o r w ere in
th e t h r o es o f fi na nc i al a g o ny
1911 and 1912 w ere th e mo s t
p r o s p er ous p er i o d s for lab o r,
i nd us t r , and a g r i cul t ure t h a t
th e c o u nt r y h a s ever k nown
p rev i o us to th e o u t break o f
th e Eur op ea n w ar o n Au g us t
ls t, 1914
N ot w it h s t a nd i ng t h s
g rea t p r o s p er it , s i x mont h s
a“ f t er th e p assa”g e o f th e
U nd er woo d B i ll o n O c t ober
3, 1914, s ou p k it c h e ns for th e
u ne mp l oy e d w ere o p ene d up
in all our lar g e c iti es Fo r th e
fi rs t t me in th e h i s t o r y o f New
Y o rk C it y th e M o r g ue wa s
op e ne d u p a t n i g h t for th e un
e mp l oy e d to slee p in, and lab o r
u ni ons es t ma t e d t h at
p e o p le w ere out o f e mp l oy ment
to sa y not h i ng o f t h o se o n
s h o r t t me, and i f it w ere not
f or th e o u t break o f th e Eur o
p ean w a r and th e p r o s p er it y
wh c h fo ll ow e d in it s wake ,
d ue to mu niti on s o r d ers , e t c ,
th e d i sas t er to A mer i ca n in
d us try , a g r i cul t ure and all o f
o ur p e o p le
wo ul d h ave bee n
so fa r g rea t er t h a n a ny p rev i
o us p er i o d o f d e p ress i on t h a t
th e f o r m er ex p er i e nce w o ul d
see m l i ke a g ent le z e p h y r as
c omp are d to a full - fl edg ed
t o rna do
.
i
i
.
1913
“
S calle d
Und er
”
wood B i ll
o-
.
y
.
i
y
.
i
i
i
i
.
,
.
W e w ill al s o h ave s een fr o m th e table o f tari ff s
that w h enever the c o untr y returned to a p r o te c tive
ta r i ff a fter the s e p eri o d s o f de p r e ss i o n a g ri c ultu re
a n d ind u s tr y re c eived ne w im p etu s and g reat advan c e
me n t w a s mad e
T he re are o n l y tw o p eri o d s fr o m the fo rmati o n o f
1789 to th e p re s e nt d ate w h en
o ur g o ver nm ent in
there w ere p a ni c and d i s a s t r o u s c o nditi o n s that are
n o t di r e c tl y c har g eab le to lo w tari ffs
O ne o f the s e
p eri o d s w a s th e d e p r e ss i o n o f 1873 w hi c h w a s br o u g ht
ab o ut b y o ve r sp e c ulati o n T h e sp e c ul a ti o n i n s t o c k s
and la nd w a s s o r am p a nt th at th e value s w ent u p
,
.
.
.
,
-
.
29
m o untainou s hei g ht s and it w a s inevita ble that a
time o f readj u s tment mu s t arrive w hi c h it did in
1873
T he s o c alled p ani c o f 1907 w a s entire l y a fina n
c ia l p ani c br o u g ht ab o ut b y over sp e c ulati o n i n W al l
T hi s p ani c h o w eve r w a s c o n fi ned e nt i rel y
S treet
to fi nan c ial in s tituti o n s and to W all S t reet and the
e ff e c t o f it w a s no t at all d etrimental to a g ri c ulture
o r indu s tr y
s o that it c o uld not be c o n s idere d a s a
p ani c in the s en s e that g enera l d i s a s ter c ame to our
ind u s tr i e s a g ri c ulture o r our p eo p le
to
,
,
-
.
-
,
,
.
,
,
,
,
,
.
I t w i ll be s ee n fr o m the above tab le s that th e fi r s t
t w o P re s ident s o f the U nited S tate s G e o r g e W a s h
i ng to n and J o h n Adam s ( 1789
w ere s tr o n g pro
t ec tio ni s t s ; that T h o ma s J e ff er s o n
th e fi r s t D em o
c rati c P re s ident and the fo unde r and g reat leader o f
the D em o c rati c p art y w h o i s c o n s idered b y all
D em o c rat s a s th e emb o d iment o f w i s d o m and s tate s
man s h i p and a model fo r e mulati o n b y al l w a s an
e xtrem e
p rote cti oni s t and w hile P re s ident o f the
U nited S tate s c arrie d th e d o c trine o f p r o te c ti o n to
the s u p reme p o int o f s eve rin g all c o mmer c e w ith
fo rei g n nati o n s and w h o t o the d a y o f hi s d eath
n eve r fo r g ave th o s e w h o fo r c ed th e re p eal o f the
embar g o
I t w ill al s o b e s een from the table s o f th e P re s i
dent s that ever y D em o c rati c P re s id ent fr o m T h oma s
J e ffer s o n (1800) to and in c ludin g And re w J a c k s o n
( 1832 ) w a s a s tro n g p ro te c ti o ni s t a nd in hi s fam o u s
me ss a g e P re s ident J a c k s o n s trenu o u s l y s u pp o rted the
c au s e o f p rote c tion to Ameri c an indu s trie s
,
,
,
,
,
,
,
.
,
.
O ne o f th e de c larati o n s o f the D em o c rat i c p lat
fo rm o f 19 12 and o f p revi o u s p lat fo rm s o f that p art y
”
“
w a s that p r o te c tion i s un c o n s tituti o nal
I n vie w o f
the fa c t that hi s t o r y re c o rd s a s s h o w n ab o ve that
W a s hin g t o n and all the P re s ident s fr o m him u p to
1832 in c ludin g T h o ma s J e ff er s on the fi r s t Dem o c rati c
P re s ident and fo ur D em o c rati c P re s ide n t s that fo l
l o w ed him u p to 1836 are o n re c ord o ve r th eir o w n
s i g nature s a s bein g av o w ed p ro te c ti o ni s t s w he n and
h ow and w h y d id the D em o c rati c p art y ad o p t it s
”
“
p re s ent p o l i cy that p r o te c tion i s un c o n s tituti o nal
is
a n d that a tari ff fo r revenue o nl y o r a lo w tari ff
a meth o d o f b ene fi tin g indu s tr y lab o r and a g ri c ulture
i n thi s c o untr y " H I S TO R Y R E C O R D S TH E DA T E
O F TH EI R A CC E PTA N C E O F T H EI R P R E S E N T
D O C TR I N E A ND TH E R EA S O N W H Y a s w ill
s hortl y be s een
'
.
,
,
,
,
,
,
,
,
,
,
,
,
.
30
Di s as te r of free -tr a d e and low ta ri ff d uri ng
th e fo rm a t i v e p e riod s of o ur g o v ern m en t
a nd th erea fter ri gh t up to th e p res ent ti me
Up to the t i me of the format i on o f o ur g overn
ment (in 1787 a nd 1789) th ere w ere no g eneral duti es
o n im p ort s and i n s h o rt w e w ere livin g und er a bs o
lute free trade and forei g n nati o n s w ere ab le to p la c e
i n o ur market w ithou t re s tri c tion e ver y arti c le w hi c h
w e w e re liable to bu y A fte r w e had s e c ured o ur
inde p enden c e (th r o u g h th e R ev o luti o nar y W ar ) w e
w ere unite d a s a c o n federa cy ( 1783 to
exi s tin g
a s a u ni o n o f c o lonie s T he free trad e o f thi s p eri o d
w a s a cc om p anied b y m o s t d i s a s trou s re s ult s T he
w are s o f forei g n c ountrie s p arti c ularl y G reat B r i tain
w ere dum p ed u p o n our s h o re s fo r w hi c h our m o ne y
w ent abr oa d until w e w ere a c tuall y d ra i ned o f all
o ur sp e c ie and h ad hard l y a dollar le ft i n c ir c ulatin g
medium s B e c au s e the g reate r p art o f our g o o d s c ame
fro m abroad our o w n lab o rer s w ere id le and nothin g
but debt and ru i n s tared u s i n th e fa c e
T h i s d e p lorable s tate o f a ff a i r s w a s one of th e
p rin c i p a l c au s e s w hi c h led to W a s h i n g ton ma k i n g hi s
c all u p o n the s tate s for a c o n fe ren c e w h i c h re s ulted
i n th e ado p ti o n o f the C on s t i tution i n 1787 and o f the
fo rmation o f the F e dera l G overnment i n 1789
Yo u
w ill s e e there fo re that the main c au s e of th e forma
ti o n o f th e go ve rnmen t o f the U n i ted S tate s w a s the
a go n y br o u g ht u p on th e p e o p le and the c o untr y
th ro u g h free trade and o ne o f the fi r s t la ws p la c e d
u p o n the s tatute b ook s to remed y thi s c ond ition w a s
a tari ff la w i ntende d no t o nl y a s a mean s o f revenue
but fo r en c o ura g in g th e p rote c ti o n o f manu fa c turer s
T hi s tar i ff a c t w a s i ntr o du c ed in C o n g re s s b y J ame s
Mad i so n p rom i nent D em o c rat w ho a fter w ard s be
8 and
c ame P re s ident ele c ted fo r tw o term s ( 180
.
,
,
,
,
,
,
.
,
.
.
,
,
,
,
.
,
.
,
,
.
,
,
,
,
.
,
,
,
T he bene fi c i al e ffe c t o f th i s p rote c t i ve tar i ff o f
1789 w a s at o n c e s een in th e i nd u s tr i al p r o g re ss w hi c h
the c o untr y made both in a g ri c ulture and manufa c
ture s in sp ite o f the attem p t s o f the m o the r c o untr y
to c ru s h out ever y i ndu s tr y i n th e s tate s
F rom t i me to t i me th i s fi r s t tar i ff la w w a s rev i s ed
and s tren g thened b y i n c rea s e s a nd o n J ul y ls t 18 12
g d o uble
(durin g the w ar ) a la w w a s ena“c ted i m p o s in
”
dutie s o r w hat i s k no w n a s a w a r tari ff
N earl y
all im p o rtation s no w c ea s ed p artl y o n a cc o unt o f the
tari ff and p artl y due to th e w a r and ra p id p r og re s s
w a s mad e h ere i n all line s o f i ndu s tr y in sp ite of the
,
,
.
,
,
,
,
.
,
,
,
,
31
hard time s and the g reat s train u p o n o ur re s o ur c e s
made ne c e ss a r y b y the w ar w ith En g land Fo r that
da y ver y lar g e am o unt s o f c a p ital w ere then i nve s ted
i n o ur in fant indu s trie s and p r o s p erit y rei g ned ever y
W here
In 18 16 ne w and lo w e r tar i ff rate s w ere ena c ted
o ur C o n g r e ss thinki n g that even w ith the re p eal o f
man y o f the w ar taxe s th e tari ff w o uld s till remain
s u ffic ientl y p r o te c tive and hen c e the y mad e man y
redu c ti o ns but the y w ere m i s taken T he redu c ed
dutie s w ere not s u ffic ie nt ly hi g h to kee p o ut ex c e ss ive
im p o rtati o n s and w ith th e d etermi nati o n o n the p art
o f G reat B ritain to th r o ttle a n d ruin o ur g ro w in g i n
d us tri e s the ei g ht y ea rs fo ll o w i ng thi s red u c ti o n in th e
tari ff p r o ved m o s t d i s a s tr o u s B a nkru p t cy and g e ner a l
fi nan c i a l r ui n fo ll o w ed v a lue s s h r u nk an d the evil s
o f lo w d utie s o r free trad e w ere m o s t a pp are nt
T he evil e ffe c t s o f th e c o nditi o n s br o u g ht about
b y th e lo w t a ri ff at thi s p eri o d are g ra p hi c a ll y t o ld
“
b y W o o d r o w W il s o n in the third v o lume o f hi s H i s
”
t o r y of th e Ameri c an P e o p le
“
P ea c e c h a n g ed the fa c e o f trad e
En g li s h
mer c ha nt s p o u r ed their go od s o n c e a g a i n i nt o th e
Ame ri c an p o rt s s o l o ng s hut a g ain s t them b y
emba r g o e s and w ar M a nu fa c t o rie s had sp run g
u p w h ile th e p o rt s w ere c l o s ed I n th e y ear 18 15
c los e up o n
h a d been inve s ted in th e
m a nu fa c ture o f te x tile fab r i cs al o ne T h e ne w
m o vemen t d id no t s t op w ith the e s tabli s hment
T he manu fa c tu re o f w o o l and
o f c o tt on fab r i cs
I ro n
fl ax a nd hem p and eve n s i lk w a s add ed
ma n u fa c ture s l o n g a g o s et u p but tentative an d
feeble h ithert o in c rea s ed fro m hund red s o f th o u
s and s to milli o n s in value under th e s timulati o n
Al m o s t every thin g i n
o f fo rei g n trade c ut o ff
g ene r al u s e in the c o u ntr y w a s s oo ne r or later
added to the g r o w in g li s t
“
Indu s tr y l o ng a g o be g un u p o n a s mall sc ale
t o o k h e a rt to g r o w and th o s e w hi c h Ameri c an s
had hith ert o no t d reamed o f attem p tin g w e re
heartil y e mbarked u p o n D i s tin c t manu fa c turin g
re g i o n s be g a n s e ns ibl y to d ev e l o p in the M iddle
S tate s and in the Ea s t w ith i nte re s t s a nd c har
a c teri s ti c s w h i c h s t a te s m e n c o uld no t a ff o rd to
I t w a s mani fe s t l y inj uri o u s to every
o ve r l oo k
yo un g indu s t ry th at a floo d o f E ng li s h im p o rt s
s h o ul d c ontinue to p o ur i nt o th e c o untry at the
o p e n p ort s T h e remed y w a s a p rote c tive ta ri ff
.
,
,
,
.
,
,
.
,
,
.
.
.
,
.
'
.
.
.
.
,
,
,
.
.
,
,
,
.
,
.
,
.
32
the y d em anded t h a t th e p rot ec t ive s y s tem be utterly
a nd a b s ol ut e l y abando ned
” “
“
”
F rec trad e
T ar i ff for R evenue O nl y born o n
S o uthern s o i l i n 1832 —b o rn entirel y o f s e c t i o nali s m
and s el fi s hne ss ; no p atrioti s m no breadth no vi s i o n
o f the g reat and c o min g ind u s trial and a g r i c ultural
future o f o ur c o untry fo r all s e c ti o n s N o rth S outh
E a s t and W e s t c ulminatin g toda y i n th e g reate s t i n
d us tria l and a g ri c ultural nati o n o n th e fa c e o f the
earth B o rn w ith no re a li z ati o n th a t thi s countr y mu s t
a l w ays be m ai nt a ined a s o ne in s e p a r a bl e unit and a ny
s ys tem o r law bene fi tin g one s e c tio n mu s t o f nec e s s it y
b enefi t all s ecti o ns
Had th e S outh i n 1832 a s th e y s hould have done
a c quie sc ed to and then a cc e p ted the Ameri c a n sys t e m
o f p rote c t i o n as bene fic i al for th e e nti re c o unt ry and
p ut fo rth their ene r g ie s to s e c ure their s har e of t h i s
bene fi t the y w o uld t o da y be far i n advan c e o f their
p re s ent indu s trial devel op ment and there w o uld have
been no deva s tati o n a g on y and human s a c ri fic e o f the
W ar o f th e R ebell i on
N o w that w e have h i s t o r y to loo k ba c k to onl y a
s l i g ht i nve s ti g ati o n w ill s h o w ho w err o ne o u s w a s the
o p ini o n o f J o hn C C alh o un and hi s fell o w s tate s men
and th e entire S o uth w hen the y th o u g ht that the
S o uth w o uld al w a ys remain an a g ri c ultural c o untry
and th ro u g h s el fi s h s e c ti o nal sp irit threatened in
1832 s e c e ss i o n fr o m th e U n i on
T he follo w i n g i s a re c o rd o f the S outh s p rodu c t i on
o f c o tt o n :
N u mber
Nu mber
YEA R
YEA R
o f bales
o f bales
p rod uce d Y earl y
p r o duce d
Ye arl y
.
-
,
,
,
,
,
,
,
,
,
.
,
.
,
,
,
,
,
,
.
,
-
,
.
,
,
,
,
.
’
.
.
.
1830
183 1
1832
1833
1834
1835
1836
1837
1838
183 9
1840
184 1
1842
1843
1844
1845
1846
1847
.
1848
1849
185 0
Y earl y avera g e
185 1-185 5
185 6- 1860
186 1-1865
1866 -1870
187 1- 1875
1876-1880
1881-1885
1886- 1890
1891-1895
1896 -1900
1901- 1905
1906- 1910
1911-1915
34
T he fo ll ow i ng i s the number o f bale s c o n s umed b y
the c o tt o n fa c t o rie s i n the S o uthern S tate s for the
y ear e nd i n g J ul y 31 19 16 :
N or t h Car o l i na
bales
S ou th C ar ol i na
Ge o rgi a
Alaba ma
1
T e nnessee
T exas
M i ss i ss i pp i
Lo u i s i a na
K e nt ucky
Mi ss o ur i
A rkansas
O klah o ma
Vi r g i ni a and o t h er s t a t es
,
It
6‘
T ot al
T he S o uth threatened to s e c ed e i n 1832 (at that
t i me the y rai s ed
bale s o f c o tt o n ) in o rder that
the y c o uld s e ll their o nl y s ta p le p r o du c t (c o tt o n )
ab road p rin c i p all y to En g land a nd bu y fo rei g n goo d s
a s c hea p l y a s p o ss ible ba s e d u p o n th e e rr o ne o u s a s
s um p ti o n that the S o uth w ould ne v er be a n i nd us tri al
,
,
,
cent er
.
T h rou g h th e bene fi t and re s ult s o f p rote c t i ve tar i ffs
i n the y ear s that h ave p a ss ed bet w ee n th en an d no w
and i n s p i te o f the i r o w n i ntent i on and p ro p he c y
Bale s
o f Cott on
T h e t ex t i le mi lls o f one o f th e S o u t h er n
S t a t es ( No r th C ar o l i na ) c onsu me d in
th e fi scal y ear e nd i ng J ul y 31
T h e mi lls o f four p r i nc ip al i nd us t r i al
S ou t h er n S t a t es namel y No r t h C arol i na
S ou th C ar ol i na G e o r g i a and A laba ma
c onsu me d fo r th e sa me p er i o d
A nd th e mi lls o f th e e nt i re S ou th er n
S t a t es c onsu me d for th e y ear e nd i ng
J ul y 31 1916
A s you w i ll s ee th e p re s ent total c on s um p ti o n of
c ott o n b y the textile mill s o f the S o uthern S tate s i s
n earl y fi ve time s the quantit y o f c o tt o n th a t w a s ra i s ed
i n th e e nti r e S outh i n 183 2 th e y e ar th e S o uth firs t
th rea ten ed s e ces s io n fro m th e U nio n
I n th e l i gh t o f th e s e s i g n i fi c ant fig ure s h i s t o r y h a s
c ertainl y p ro ven the o p ini o n o f J o h n C C alh o u n and
th e entire s lave p o w er o f the S o uth in 1832 (viz
that th e S o uth w o uld al w a ys remain an a g ri c ultural
c ountr y ) to be ab s olutel y e rroneou s
T h e c au s e of s e c e ss i on and the w ar o f th e R ebel
li o n p rimaril y w a s due to th e fa c t o f th e e s tabli s h
m ent b y C on g re ss o f p rote c t i ve tar i ff rate s in 1861
,
,
,
.
,
,
,
,
,
,
,
,
,
,
.
,
.
.
,
.
,
,
35
and h i s t o r y ha s al s o p r o ved th e ‘ fo lly o f s aid s e c e ss i o n
w he n th e ve r y c au s e there o f ha s in th e meantime be
c o me th e g r e ate s t a ss et o f the S outh viz : p r o te c ti o n
n
f
m
f
a
r
o
e
o
the
p
r
i
a
r
y
c
au
s
e
s
o
s
e
c
e
ss
i
o
n
and
the
w
(
o f the R ebe lli o n ) ha s alread y b uilt u p th e ind u s t r ie s
o f the S o uth e rn S tate s t o a rema r kable e x te nt a nd w ill
s till furth er i nc r ea s e them i f a p r o te c tive ta r i ff bill
re p la c e s in 19 17 th e de s tru c tive U n der w o o d ta r i ff
rate s a nd if p r o te c tive tari ff le g i s lati o n i s ke p t s teadil y
o n o ur s tatute b ook s
T h e fo ll o w i n g i s the c o n s um p t i o n o f A mer i c an
c o tt o n o f the entire textile m ill s o f the N o rth fo r th e
y ear endin g J ul y 3 1 19 16 :
Massac husett s
bales
N ew H a mp s h i re
N ew Yo rk
R h o d e I sla nd
M a i ne
C onnec ti cu t
N ew J erse y
V er mont
’
.
,
,
,
,
.
,
T ot al
that th e S o uth t o da y thr o u g h th e o p e ration of
bene fic ial tari ff s p ut u p o n our s tatute b o ok s c o ntra ry
t o th eir w i s he s and a g ai n s t thei r p rote s t i s a c tua ll y
c on s umin g alm o s t d o u ble w h at th e N o rth i s co ns um
i n g and th e o u tl o ok for a mu c h lar g er c o n s um p ti o n
i n th e S o u th durin g th e next few y ear s i s m o s t p ro m
i si ng
B ut than k God th ere i s s oon to b e a n e w S o uth
and the delu s i o n and falla cy o f ei g ht y fiv e y ear s o f
“
”
“
”
F ree trad e and T ari ff for R evenue O nl y w il l s oon
di s a pp ear b y a nd th ro u g h th e i n s trumentalit y o f th e
manu fa c turer s and bu s i ne ss me n of th e S o uth it s el f
T h e y are at p r e s e nt th e leaven w hi c h s o o n w ill leave n
t h e w h o le l o a f and the S o uth then w ill emb ra c e pro
t ectio n a s an e c o n o mi c truth fo r th e u p buildi ng o f
the entire c o untr y a nd fo r th e g reat b e ne fi t to lab o r
i ndu s t r y a g r i c ulture and al l o ur p e o p le N o rth S o uth
Ea s t and W e s t
I n 1832 n o t w i th s tand i n g that A nd re w Ja ck s o n
th e g r eat adv o c ate o f p r o te c ti o n w a s the D em o c rati c
P re s id e nt s o m e c o n c e ss i o n s w ere mad e to the S o uth
e rn dema n d s w ith a vie w o f p a c i fy i ng th e S o uthern
S tate s but th e s e c o n c e ss i o n s w e re no t s ati s fa c t o r y
and th e S o uth dema nd ed m o s t im p o rtant t a ri ff redu e
ti o n s a nd i f s a m e w ere no t g ra nted threatened to
s e c ede from the U ni o n i n fa c t an o rdinan c e o f nulli
So
,
,
,
.
-
-
.
,
,
,
,
,
,
,
.
,
,
,
,
,
,
,
,
,
36
w a s ad op ted i n So uth C ar o lina w h i c h de c lared
that th e tari ff a c t s o f 1828 a nd 1832 w ere null v o id
and no la w no r bi ndi n g u p o n the S tate it s o ffic er s
I t al s o p r o h ibited the p a y ment o f d utie s
o r c itiz e n s
u nd er e ither a c t w ithin th e S tate a fte r F eb ruar y ls t
fica tio n
,
,
,
.
,
1833
.
T hen fo ll o w ed a s a c o m p rom i s e to th e S o uth and
“
p r event s e c e ss i o n th e s o c alled
C o m p r o mi s e
to
”
T ari ff
w hi c h p r o vided fo r a g r adual redu c ti o n in
d utie s b y a s lidi ng sc ale o f o ne tenth bi annuall y o f
a ll d utie s in ex c e ss o f
T h e d i s a s tr o u s re s ult b y th i s red u c t i o n w a s mo s t
a pp arent a nd s o o n the c o untr y s u ff ered o ne o f t he
m o s t terrible a nd di s a s tr o u s fi nan c ial p eri o d s in it s
h i s t o r y B o th the g o ve rnment and the p e o p le be c ame
al mo s t ba nkru p t T here w a s id lene ss o n eve r y hand
a nd m o s t inten s e s u ff erin g am o n g all c la ss e s o f p e op le
F o rtunatel y h o w eve r fo r ou r c o untr y and i t s
p e o p le the W hi g p art y w a s s u cc e ss ful in 1840 an d
e le c te d
W illiam H en r y H arri s o n P r o te c ti o ni s t a s
P re s ident and al s o e le c ted b o th H o u s e s o f C o n g re ss
T he re s ult w a s th e T ari ff B ill o f 1842 in w h i c h sp e c i
fic c o m p o und and ad val o rem d utie s w e re im p o s ed
ran g in g fro m 1% to
P re s ident H arri s o n (W hi g
P r o te c ti o ni s t ) havi ng die d i n th e mea ntime V i c e
P re s id ent J o h n Ty le r o f V i r g inia be c ame P re s ident
a nd he bein g imbued w ith the free trad e id ea s o f th e
S o uth C o n g re ss w a s c o m p elled to p a ss th i s tar i ff
a c t o ve r h i s veto
T he re s ult o f th i s tar i ff w a s s i m p l y marvelou s
T h r o u g h o ut th e enti re land th e bene fic ial re s ult s o f
p r o te c ti o n w ere a g ain s e en and s o o n p r o sp erit y rei g ned
a s never be fore
T h e D emo c rat i c p art y c ame a g a i n i nto p o w e r fou r
y ear s late r i n 1844 thr o u g h th e ele c ti o n o f a D em o
c rati c P re s ident J ame s K P o lk b y a c am p ai g n o f
d e c e p ti o n —P re s ident P o lk p o s in g a s a p r o te c ti o n i s t
i n P enn sy lvania and the N o rth and a s a free trader
in the S o uth and m an y o f th e v o ter s believe d that
the y w e re v o tin g fo r a c andidate w ho w a s not h o s tile
to the i ndu s tria l i ntere s t s o f the c o untr y
T o s h o w th e d e c e p t i o n o f th e D em o c rat i c
P re s idential n o minee (M r P o lk ) at that time w e
qu o te th e fo llo w i n g i n s tan c e s :
M r P o l k on ret i r i n g fr o m Con g re s s ran for
the G o ve rn o r s hi p o f T enne ss ee and a s a c and i
date fo r that o ffi c e i n 1843 h e i ss ued a c ir c ula r
,
-
,
,
-
-
,
.
.
.
,
,
,
,
,
,
,
.
,
,
,
,
,
,
,
,
-
,
,
.
.
.
,
,
.
,
,
,
-
,
,
.
,
.
.
,
,
,
,
,
37
letter to the p eo p le o f T enne ss ee i n w hi c h h e
s tate d hi s p o s iti o n on the tari ff a s follo ws :
“
I have s tead il y d urin g the p er i od I w a s a
R e p re s entat i ve in C on g re s s bee n o pp o s ed to a
p rote c t i ve p oli cy a s m y re c ord ed vote and p ubl i c
s p ee c he s p rove S i n c e I retired from Con g re ss I
have held the s am e o p in i o n I n th e p re s ent c an
va ss fo r G o vern o r I h ave avo w ed m y o pp o s it i on
to the tari ff a c t o f the late W hi g C on g re ss a s
be i n g hi g h l y p rote c tive i n i t s c hara c te r and no t
”
de s i g ned b y i t s author s a s a revenue mea s ure
W hile M r P o l k w a s runnin g fo r P re s i dent a
lette r w a s ad dre ss ed to h i m b y J ud g e K ane (D emo
1844 a s k in g fo r h i s
c ra t o f P e nn sy lvania ) i n J une
vi e ws on th e tari ff que s ti o n M r P o lk re p lied i n a
letter w h i c h w a s p ubli s hed and w i de l y c ir c ulated b y
the D em o c rat i c p art y thr o u g h o ut th e N orthern
T he ex p re ss ed v i e ws o f M r P o l k i n th i s
S tate s
le tter w ere materiall y d i fferent from oth e r c o mmun i
c ation s i ntend ed for p ubli c at i o n i n th e S outh ern
M r P ol k re p l i ed to Jud g e K ane a s follo ws :
S tate s
“
I n adj u s t i n g th e deta i l s o f a reve nue tar i ff
I have heret ofo re s an c ti o ned s u c h moderate d i s
c r i m i natin g d uti e s a s w ould p ro d u c e the amount
and at th e s ame t i me a ff o rd
o f reve nue needed
rea s onable in c i dental p r o te c t i o n to our home i n
I am o pp o s e d to a tari ff for p ro te c ti o n
d us try
mere l y and no t fo r revenue I n m y j ud g ment
i t i s th e dut y o f th e go ve rnment to extend a s
fa r a s i t ma y be p ra c ti c able to d o s o b y it s
revenue la ws and o ther mean s w ithin it s p o w e r
fa i r and j u s t p ro te c tion to all th e g reat i ntere s t s
o f the w h o le U ni o n emb ra c i n g a g r i c ulture m anu
”
fa c ture s c ommer c e and navi g ation
R ead to g eth e r Mr P ol k s c i r c ular letter of 1843
to the p e op le o f T enne ss e e and h i s lette r o f J une
1844 to th e p eo p le o f P enn sy lvan i a and the N orth
T he o ne s o luti o n to th e s e diametri c all y O pp o s ite
”
“
I n th i s
s tatement s i s an y thin g to c at c h vote s
res p e c t h e w as no t o ne w h i t wo r s e t h an P res id ent
W i l s o n and th e D emo c rati c p arty to d ay
S p ee c he s and s tatement s w ere mad e b y Mr W i l
s o n him s el f and b y o ther leader s o f the p art y be fo re
the e le c t i o n o f 1912 w h erein the y s tated em p hati c all y
that lab o r w o uld no t be d i s turbed and that the y be
lieved i n a tari ff s u ffic ie nt to e qual iz e the d i fferen c e
bet w een the lo w e r w a g e s p a i d abroad and th e hi g he r
w a g e s p a i d here T h en d i re c tl y a fter ele c t i on th e
,
,
‘
,
,
,
.
,
.
,
,
,
.
.
,
,
,
,
.
.
.
.
.
,
.
,
,
,
.
,
.
,
,
,
,
,
.
,
,
’
.
,
.
,
.
.
.
,
,
.
,
,
38
U nder w o od S i mm o n s T ari ff B ill w a s the o ut c o me
d urin g the p re p arati o n o f w hi c h o n the fl oo r o f the
S enate and in th e H ou s e o f R e p re s entative s it w a s
reiterated a g ain and a g ain th at no attenti o n w as p aid
i n a ss e ss in g th e d utie s i n thi s bill —
to the l o w er w a g e s
p aid abr o ad a nd th e hi g he r w a g e s p aid he re S o that
hi s tor y re p eat s it s el f in the a c tion s o f J ame s K P o lk
D em o c rati c P re s ide nt
and o f the Demo c rati c
P re s ident and p art y o f 19 12
-
,
,
,
,
,
.
.
,
.
J ul y 30th 1846 dur i n g P ol k s adm i n i s tra ti on
“
the D em o c rat s p a ss ed a ne w tari ff bill kn o w n a s T he
”
W alker B ill o r t he tari ff of 1846 No t o nl y w e re
d utie s lo w e red belo w a p rote c tive p oint but the s e
d utie s i n ever y in s tan c e w e re mad e ad val o rem i n
c hara c te r T he re w ere c erta i n c ir c um s tan c e s b o th at
h o m e an d abroad w hi c h g ave m o d erate p ro sp erit y
under th i s bill viz the M e x i c an w ar o f 1848 th e di s
1849 and the C rimean
c o v ery o f g old i n C ali fo rnia
w ar ab r o ad w h i c h s tarte d in 185 3 inv o lvin g F ran c e
En g land T ur k e y and R u ss ia T hen a s now w ar in
tervened and b y tem p oraril y s ettin g a s id e th e d etri
mental re s ult s o f the n o rmal o p erati o n o f th e D em o
c rati c tari ff bi ll bro u g h t w h ile th e w ar la s ted a
p r o s p er i t y ba s ed s o le l y o n th e bl oo d s o aked s lau g hter
fell o w bein gs
B ut w he n the s e u nu s ua l
of
o th e r
c au s e s c ea s ed the la w p roved to be m o s t ruinou s
and d i s a s trou s to all o f our i ndu s tr i e s and our p e o p le
F r o m thi s t i me u p to 1860 th e D emo c rat i c p art y
w a s i n ful l c ontr o l o f C on g re ss and the exe c utive
ex c e p tin g th e p eri o d o f four y ear s fo ll o w in g th e e le c
ti o n o f Z a c har y T a y l o r a s P re s ident i n 1848 P re s i
dent T a y lor w a s a W hi g an d a s taun c h p r o te c tioni s t
a s w ill be s een from hi s fi r s t annual me ss a g e o f
D e c embe r 24 th 1849 H e w a s p o w erle ss h o w ever to
o btai n an y relie f a s th e maj o rit y o f both th e H o u s e
and S enate w ere D emo c rati c and hi s a pp eal to th e
p atr i ot i s m o f Co n g re ss
“
fo r th e ado p t i on o f a sys tem w h i c h ma y p la c e
h o m e labor at lea s t on a s ure and p ermanent foo t
i n g and b y d ue en c o ura g ement o f manu fa c turer s
g ive a ne w and in c rea s in g s timulu s to the manu
fa c ture r and p r o mote the d eve l op ment o f our va s t
”
re s our c e s an d th e exte n s i o n of ou r c omm er c e
fell u p on d ea f ear s
F rom th e W alk e r tar i ff rate s o f 1846 i n sp i te o f
the in c rea s in g p o ve rt y o f the c o untr y the dut i e s w ere
s t i ll furthe r redu c ed in 185 7 bein g no w ex c lu s i vel y ad
’
On
,
,
,
,
.
,
.
,
.
,
,
,
,
,
,
.
,
,
,
,
,
,
-
-
.
,
.
,
,
,
.
,
,
.
,
,
,
,
,
.
,
,
,
39
val o rem and arran g ed b y sc hedule T hen bankru p t cy
a n d rui n c ame sw i ft and s ure —th e p ani c o f 185 7 bein g
o n e o f the m o s t s evere and di s a s trou s o f an y p ani c
kn o w n to the Ameri c an p e op le u p to that time
P re s ide nt B u c hana n (D em o c rat ) in h i s annual me ss a g e
to C o ng re ss D e c ember 6 th 185 8 vivid l y p o rtra ys t h e
d ire di s tre ss o f the p e op le and the di s a s te r to i ndu s try
and a g ri c ulture
.
,
.
,
,
,
.
s S e c ond Annu a l M e ss age
D e c embe r 6 185 8
“
W ith al l the element s o f nati o nal w ealth i n
abundan c e o ur manu fa c ture s w e r e s u sp end ed our
u s e ful p ubli c and p rivate enter p ri s e s w ere arre s ted
and t h o u s a nd s of l a borer s w ere de p rived o f em
p loy ment an d redu c ed to w a nt U niver s al di s
tre ss p rev a ile d a mon g the c o mmer c i a l manufac
turin g and me c h a ni c al c la ss e s
A ll w e r e
ex p erien c in g s ad rever s e s at th e s ame m o ment
o ur manu fa c turer s ever yw here s u ff ered s everel y
no t be c a u s e of th e re c ent redu c ti o n i n the ta ri ff
but be c au s e the re w a s no
o f d utie s o n im p o rt s
”
d em a nd at any p ri c e for thei r p rodu c tion s
I s n t it marve lou s that at ea c h and ever y p eri o d
“
” “
T ari ff fo r R eve nue O nl y
o f D em o c rati c
S emi F re e
”
T rade et c the s ame o cc u r ren c e take s p la c e an d that
P re s ident B u c hanan s w o rd s be c ome p a in full y t rue :
“
there w a s no de mand a t a n y p ri c e for thei r p r o du c
”
tion s
N o w o r k i ndu s tr i e s c lo s ed no one w ith an y m o ne y
with w hi c h to bu y s o a s P re s ident B u cha nan s a ys
“
th er e w a s no deman d a t any p ri c e for thei r p ro
B u c han a n
’
,
.
,
,
,
.
,
.
,
,
.
’
-
,
.
,
,
,
’
.
,
,
,
d ucti ons
,
”
.
T he s e w o rd s o f the D emo c rat i c P re s i dent w h o w a s
a t th e time the c h ie f exe c utive o f the nati o n are a
w h o le s erm o n o f them s elve s in p r oof o f the bene fi t s
o f p r o te c ti o n
J u s t s o it w a s a fter the D em o c rati c T ari ff B ill s o f
18 16 W oo dr o w W il s o n de sc ribe s in hi s hi s t o r y
the g reat di s tre ss o f that time and s tate s
”
“
th e remed y w a s a p rote c tive ta ri ff
1833 C ha o s and di s a s ter
1846 W a r p ro sp erit y fo r a few y ear s and then
g reat d i s a s te r
185 7 B u c hanan s P er i o d a s de sc ribed
1894 C o x i e s Arm y mar c hed t o W a s h in g o n
t
“
w ith th eir p la c ard s W e w ant no c har i t y
”
—we w ant w o rk
.
.
.
-
.
’
.
’
,
.
40
and a go n y that had been c o nt i nu o u s l y w i th the c o un
try fr o m 1842 to that time—turned near e n o u g h to a
“
p r o te c ti o ni s t to s tate that b o th to p r o te c t the revenue
and to s e c ure to o ur manu fa c turin g i ntere s t s that
am o unt o f in c idental en c o ura g ement w hi c h inevitably
”
re s ult s fro m a reve nue tari ff the tari ff rate s s hould
be i n c rea s ed T hi s he re c o mmended i n h i s la s t me s
s a g e to C o n g re ss a nd he al s o re c o mmend e d sp e c i fic
i ns tead o f ad val o rem d utie s a s follo ws :
,
.
,
,
F RO M P R E S I DE NT BU C H A N A N S F OU RTH
A NNU A L M E S S A G E O F D E C EM B E R 3rd 1860
“
I t i s no w qu i te evident that th e fi nan c ial
n e c e ss itie s o f the go vernment w ill require a m o di
fic a tio n o f the tari ff d urin g y o ur p re s ent s e ss i o n
fo r the p ur p o s e o f in c rea s in g the revenue
In
th i s a sp e c t I de s ire to reiterate th e rec ommend a
ti o n c o ntained i n m y la s t t w o annual me ss a g e s
i n favor o f im p o s in g sp e c i fic i n s te ad of a d v a l o rem
d utie s o n all im p o rted arti c le s t o w hi c h th o s e c an
b e p r op e rl y a pp lied F r o m l o n g o b s ervati o n and
that sp e c i fic dutie s
e x p erien c e I am c onvin c ed
a re ne c e ss ar y both to p rote c t th e re v en ue a nd to
s e c ure to o ur man u fa c turin g intere s t s th at a mount
o f i n c ide ntal e n c oura g ement w hi ch unav oid a bl y
re s ult s from a reve nu e t a ri ff
“
It i s s tated b y o ur s tati s t i c ian s that b et w een
1846 and 1860 no t a s in g le n ew c o m p etitive indu s
”
tr y w a s e s tab li s hed i n the U nited S tate s
R ui n and di s a s ter w ere on h and eve ryw h ere o w in g
t o Demo c rati c dominati o n o f th e P re s i de n c y and C o n
g re ss for fo urtee n y ear s a nd th e c o ntinu o us a pp li c a
“
”
T ari ff for rev en ue onl y
t i o n o f the p ri n c i p le s of
“
”
a nd
F re e T r a d e
T r ul y i t w as mor e th an hi g h t i m e a new C o ns t ruct
i v e P a rty w a s b o rn
I n 1860 th e R e p ub li c an p art y a s a ne w p o lit i c al
p art y c ame int o p o w er H avin g a maj o rit y i n the
H o u s e o f R e p re s entative s a th o r o u g hl y p r o te c tive b i ll
“
”
w a s p a ss ed kn o w n a s T he M o rrill T ari ff an d w hen
the S o uth ern S enat o r s re s i g ned thei r s eat s i t al s o
p a ss ed th e S enate and P re s ident B u c hanan s i g ne d it
186 1 j u s t tw o da ys be fo re Abraham
o n M ar c h 2 nd
L in c oln to o k hi s o ath o f o ffic e
A s w a s th e c a s e a fte r p r otra c ted de p re ss i on u nde r
lo w tari ff an d free trad e i n 18 16 and 1833 the bene fi t s
o f th e ne w p r o te c tive tari ff bill p a ss ed M ar c h 2 ud
186 1 w ere immediate and s ub s tant i al
A fter th e
’
,
.
.
,
.
.
,
.
.
,
.
,
,
,
,
,
,
,
,
.
-
,
,
,
.
42
break i n g out o f the w ar o f th e R ebelli o n th e tari ff
w a s amende d re p eatedl y b y s o c alled w ar mea s ure s
and fro m that p eri o d to the p re s e nt barrin g two
p e r i o d s o f four y ear s ea c h ( 1894 and
the nati o n
ha s had o n th e s tatute book s p rote c tiv e tari ff le g i s
l ati o n w h i c h ha s built u p thi s g reat c o untry to it s
p re s ent h i g h level
T h e R e p ubli c an P art y thr o u g h i t s p ol i cy o f p ro
tec tio n ma y w e ll be p r o ud o f it s g reat a c hievemen t
d ur i n g the p a s t fifty s ix y ear s F r o m th e c ha o s and
d i s a s ter d e sc ribed b y the D em o c rati c P re s ident Eu
c hanan i n 1860 thi s nati o n ha s been built u p (barrin g
t w o p eriod s o f fo u r y ear s ea c h in 1894 and
um
d er c o ntinuou s R e p ubli c an c o ntr o l f ro m alm o s t n o th
i ng to th e g re a te s t indu s tri al a g ri c ultural a nd co m
mercia l na tion on th e fa c e o f th e earth w ith a s tandar d
o f w a g e s a nd a s tandard of livi n g unheard o f i n a ny
o t h er co unt ry i n th e w orld
S i n c e 1860 th e tw o p er i o d s in w hi c h the D emo
c rati c P art y had c o ntr o l o f b o th th e E x e c utive an d
L e g i s lative bran c he s o f th e G o ve rnme nt w ere under
P re s id ent G rover C leveland ( 1892 t o 1896 ) and P re s i
d ent W o od ro w W il s o n (19 12 to
P re s ident C leve land had s erved n o ti c e u p o n e m
ployers that p rote c ti o n w a s to be de s tr o y ed and that
w a g e s mu s t be re du c ed H e had w arned im p o rter s
to c ea s e i m p o rtin g until d utie s w ere l o w ered and
w h o le s ale and retai l mer c hant s no t to bu y Ameri c an
m anu fa c ture s but rathe r to w ait u nti l the a g ent s o f
forei g ne r s a pp eared to s o li c it the ir o rd er s
Th is wa s
t h e p lain e ff e c t o f w hat M r C levelan d s aid i n hi s
i nau g ural add re ss and w hat the p e op le under s to o d
h i m to s a y
N ine da ys a fte r M r C leveland s ele c t i o n the New
Y o rk C o mmer c ial B ulletin a free trad e j o urnal i n
“
fo rmed A meri c an w o rkin g men that
lab o r ma y be
”
ex p e ct ed t o y ield i ts quota o f c o n c e ss i o n a nd th at
“
t h o s e wh o h a v e tau gh t w o rkin g me n th at a redu c tio n
o f th e t a ri ff d o e s not me a n a rela tive redu c ti o n of
w a ges h av e a d ul terated a g re a t re fo rm w i th a v e ry
”
p aradoxi c al d o c trine
W i thin a y ear fr o m th e p a ss a g e (Au g u s t 2 7 1894 )
”
“
o f the W il s o n G o rman
T ari ff fo r R eve nue O nl y bi ll
it s eemed a s th o u g h all indu s tr y w a s p aral y z ed and
m illi o n s o f hone s t s in c ere w o rkmen w ere w alkin g the
s treet s s ee k in g em p l oy ment i n vain and d i s tre ss and
fi nan c ial a go n y w ere o n m o s t o f o ur p e op le C ox i e s
“
Arm y mar c h ed o n to W a s h i n g t o n w i th p la c ard s W e
,
-
,
,
.
,
,
-
.
,
,
,
,
,
.
.
,
,
.
.
,
.
’
.
,
-
,
,
,
.
,
-
,
,
,
,
’
.
,
43
c h arit y—w e
’
”
d o n t w ant
w ant w ork
S o me fi ft y p er
c e nt o f o ur rail r o ad s a nd thirt y p e r c ent o f o ur N a
t i o na l B a nk s w e r e i n the hand s o f re c eiver s
A fter
havin g e x p e r ien c ed fo ur y ear s ( 1892 to 1896 ) o f no r
“
”
mal re s ult s fro m th e T a ri ff fo r revenue o nl y (no
g reat Eur o p ean w ar then to g ive u s w ar p ro sp erit y )
the p eo p le t o a uni t w ere throu gh w it h i t at an y c o s t
Even the D em o c rati c p lat fo r m o f 1896 w a s a s s ilent
“
”
a s a t o mb s t o ne a s to T ari ff fo r revenue o nl y
To
have menti o ned the s ubj e c t at al l w o uld have b ee n
like w avin g a re d fl a g be fo re an enra g ed bull T h e
D em o c rati c p lat fo rm o f 1896 ad o p ted h o w ever in o ne
o f it s p lank s the free c o ina g e o f s i lver o n a ba s i s o f
“
16 to
P e c uliar that the Dem o c rati c P art y i s
al w a ys a p art y o f fre e ever y thi ng ;
F ree Labor
F re e T rade
F ree S ilver
F ree every th i n g in theory but i n fa c t no em p l oy
m ent no m o ne y " D i s tre ss o f mind and b o d y
I n 1896 all the Ame r i c an p e op le w ere c o m p letel y
“
“
”
th ro u g h w ith the falla c ie s o f F ree trade and T ari ff
”
fo r R eve nue O nl y
T he di s tre ss and a go ny o f th o s e
fear ful fo u r y ear s had tau g ht them it s bitter le ss o n s
I t t o ok a ne w g ene ration and a g reat sp lit in th e
R e p ubli c an p art y to p ut th e D em o c rati c p art y i n
p o w e r a g ain i n 19 12
A s s et fo rth in th e be g innin g o f thi s arti c le fr o m
the sp lendid p r o sp erit y o f 19 12 w ithin s ix m o nth s a fte r
“
the p a ss a g e (Oc t o be r 3 19 13 ) o f the T ari ff fo r rev
”
e nue o nl y U nder w oo d B ill s ou p kit c hen s w ere o p e ned
i n all the lar g e indu s trial c itie s to feed o n c harit y th e
u n em p l oy ed T he m o r g ue w a s o p ened in N e w Y o rk
C it y to kee p the unem p lo y ed fr o m freezin g t o death
L ab o r leader s e s timated that in the w inter o f 19 14
f
f
u
o
u
r
m
illi
n
p
e
p
le
w
e
re
em
p
l
y
o
o
o
t
o
o
)
(
ment re s ulti ng w ith s h o rt time i n a l o ss o f w a g e s
r
te
n
m
illi
n
d
llar
s
p
e
r
da
y
o
of
o
o
)
(
n
l
d
o
w
th
re
e
billi
n
d
llar
s
p
e
r
annum
o
a
o
)
(
p ur c ha s in g p o w er the inevitable p artner o f p oo r bu s i
ne ss p ro du c ed hard time s di s a s te r and ruin to in
d us try and d i s tre ss and a g on y t o o ur p eo p le
A ga i n (a s i n 1816 1839 1846 185 7 and 1894) D em o
c r a ti c time s w ere j u s t th e s ame a s D em o c rati c P re s i
d e nt B u c hanan de sc ribed i n 1860 a s
”
“
No deman d at an y p ri c e fo r th ei r p rodu c t i o n s
A nsw e r : the w o r kme n o f th e c o u ntr y havin g no w o rk
h a d nothin g wi th w hi c h to bu y
.
.
.
.
.
.
.
,
,
,
,
,
,
.
-
.
.
.
,
,
,
,
.
.
,
,
,
,
,
,
,
,
.
,
,
,
,
.
,
.
44
,
T he g reat di s a s tro u s Eur o p ean W ar c am e up on th e
w o r ld Au g u s t 1 19 14 T he e ffe c t o f thi s w ar w a s
1
4
5
3
under the Dem o c r ati c
1
8
o
8
8
a
s
it
w
a
s
al
s
in
(
W alke r T ari ff B ill ) to s u sp e nd —fo r t h e p eri o d o f
the w ar—th e d etrimental no r mal o p e r atin g e ffe c t s
A fter Au g u s t 1 19 14
o f th e U nd er w o o d tari ff rate s
all Euro p e need ed from u s the s i n e ws w ith w hi c h no t
but w ith w h i c h to
o nl y to c arr y o n the terrib le w ar
fe ed and c l o the their g reat armie s t r an s fe r red fro m
indu s try and the fi e ld to the fig htin g fro nt an d th o s e
w h o bet w een Oc t o ber 3 19 13 a nd Au g u s t 1 1914
w ere o ur c o m p etit o r s ea g e rl y takin g adva nta g e o f the
l o w e s t tari ff rate s i n o ur Ameri c an h i s t o r y (a tri fl e
fo r the fisc al y ear
19 16 and
o ve r 8 % fo r J u n e
endin g J une 30
be c ame our feveri s h c u s t o mer s
bu y in g o ur p rodu c t s in hu g e quantitie s at a ny p ri c e
and turnin g o ur s teadil y adve r s e trade balan c e s fo r
th e p e riod bet w een Oc t o ber 3 19 13 to Au g u s t 1 19 14
t o immen s e fav o rable trad e balan c e s o f 19 15 and 19 16
Entirel y w ar p r o s p erit y a t the awful c o s t of blo o d
s o ake d h um anit y a nd c ert ainl y nothin g to bo a s t of
W e w i ll anal y z e our ex p o rt s to d eterm i ne w hethe r
o r no t the y are br o u g ht ab o ut b y th e h o rr o r s o f w ar
o r th e e lement s o f p ea c e :
.
,
-
.
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
.
.
C OMPA R A T I VE T A B LE OF E "P OR T S
B efore th e
Wa r
11
,
A rti cle
.
War
,
th e
11
months end
i ng M ay 30
months end
i ng M ay 30
1914
1916
,
A erop la nes
Alc oh o l
Au t omob i les
B arbe d wi r e
B rass
B oot s and s h o es
B rea d s t u ff s
C ars and car t s
Corn ( inclu d e d in brea d
s t u ffs )
E x p l o s i ves
H arness and sa dd ler y
M ea t p rod uc t s
M e t al wo rk i ng mac h i ner y
M i scella ne o us i r on and
s t eel
R a i ls
M a nu f act ure d wo ol
Z i nc s p el t er and ma nu
.
D uri ng
.
-
,
factured
H o rses
Mules
45
.
,
.
SOME
I N C R EA S E S
T he s e fig ure s an d p er c e nta g e s sp ea k
s e lve s :
Ex p l o s
i ves
B rass
M i sc i r on and s t eel
Z i nc e t c
A lc oh ol
H o rses
Mules
$
$
fr om 5 800000to 414 600000
,
,
,
to
to
to
to
to
to
.
,
,
.
fo r
th em
increase
i ncreas e
i ncrease
i ncreas e
increase
i ncrease
3
:
c
3
.
e
-9
9
i ncreas e
A ll ev i den c e o f horrible hell i s h w ar ; and w h en th e
w ar i s o ver the y w ill return a g ai n to n o rmal quant i
tie s A g ri c ultural im p leme nt s s ew in g m ach in es etc
de c lined
a r ti c le s o f kn o w n u s e in p ea c e ful p ur s uit s
the fi r s t y ear o f the w ar as c om p a r ed wi t h th e y e ar
ju s t p re vi ous theret o to th e h uge extent of ov e r
,
,
.
,
.
,
,
T he balan c e o f trade w a s a g a i n s t u s th e la s t few
m o nth s be fo re th e w ar c au s ed b y th e o p erat i on o f the
U nder w oo d T ari ff and a cc ord i n g to the re p o rt o f th e
S e c retar y o f the T rea s ur y ove r
o f g old
had bee n ex p orted to make u p th at balan c e of trade
S in c e th e w a r be g an the y ello w t i de h a s fl o w ed o ur
w a y and b e c au s e o f the s e va s t w ar ex p ort s over $700
in g o ld ha s bee n p oured th ro u g h our p o rt s
i nto o ur c han nel s o f tra de and y e t thi s i s but a p art
p a y ment o f the va s t i ndebtedne ss c reate d b y our tre
mend o ns ex p o rt s
W ar p ro sp erity and in ful l me as ure S t i ll we h a d
“
the s ame thin g under th e Dem o c rati c T ari ff for rev
”
e nue o nl y (W alker B ill and T ari ff o f
and
w h en the w ar w a s o ve r c h a o s rui n d i s a s t er and
d e sp a i r
T he a gon y of that t i me i s v i v i d l y p ortra y ed b y
D em o c rati c P re s ident B u c h anan i n h i s p ubli c a d
d re ss e s of D e c em be r 6 18 5 8 :
that the d i s a s te r t o indu s tr y and the p eo p le w a s
“
not be c a u s e o f th e re c ent redu c tion s in th e tariff
but be c a u s e th ere w as no
o f d utie s o n im p o rt s
”
dem a n d a t any p ri c e for th ei r p rodu c t io ns
,
,
,
.
,
,
,
,
,
.
.
,
,
,
.
,
,
.
a nd
D e c embe r 14 1860:
“
P ani c and di s tre s s o f a fear ful c hara c te r p revail
th r o u g h o ut the land O ur lab o ri ng p o p ulati o n i s
w ith o ut em p l oy me n t and c o n s equentl y de p rived
Indeed a ll
o f the mea n s o f ear n in g th eir bread
”
h o p e s eem s to hav e de s erted the mind s of men
,
.
.
,
.
46
T h e U nd er w o o d tari ff b r o u g ht to lab o r and indu s
tr y fi nan c i al d e sp air be fo re th e w ar and w hen the
g reat w ar i s over (a s it w ill be i n
unle s s the
U nder w ood tari ff i s re p ealed (and hi gh er dut y rate s
e s tabli s he d i n i t s s tead ) i t s l o w e s t avera g e rate s o f
d utie s i n A meri c an h i s t o r y l o w e r to da y than e ithe r
F ran c e G e rman y R u ss ia Ital y o r even free trad e
En g land w ill p lun g e thi s na tio n i nto i ndu s trial a nd
c omm er c i a l de sp ai r a nd p ani c hi thert o unk n ow n in o ur
h i s to ry not eve n ex c e p tin g th e p eri o d de sc ribe d b y
D emo c r a ti c P re s ident B u c hanan i n h i s me ss a g e w h en
“
h e s a ys
indeed a ll ho p e s eem s to h ave de s erted th e
”
mind s of men
Advi s e dl y I wi s h to m ak e th i s s tartlin g s tatement
vi z : th a t a t no p e ri o d s in c e the bi rth i n t h e S o uth i n
“
”
” “
1 83 2 of fr ee tra d e
T a ri ff fo r revenue o nl y et c
w he n th e s e e rr o ne o u s th e o rie s h ave been c arried out
i n Demo c r a ti c le g i s lati o n ha s there been an y thin g but
d i s as t er a nd rui n to o ur i ndu s tri e s an d di s tre ss a nd
a g o n y to our p eo p le ex c e p t w he n th e h o rrible s p e c tre
o f w a r ha s i nterve ne d and s et a s ide th e n o rmal o p er a
t in g fun c tion s of t hei r tari ff bill rate s viz : durin g p art
o f th e o p erati o n o f th e W alker B ill a n d tari ff o f 185 7
and at the p re s ent tim e under th e U nder w oo d B ill
I n effe c t w ar p ra c ti c a ll y make s th e re s ult s o h
t a i ned b y p rote c tion h en c e d u ri n g w ar w e h a ve p ro s
peri ty eve n under D em o c rati c d i sp en s ati o n
Y o u h ave s een fr o m the fo re go in g table s and from
the p revi o u s remark s that eve ry P re s id ent fro m W a s h
i ng to n ( 1789 ) t o an d i n c ludin g And re w J a c k s o n
an d th e D em o c rati c P re s ide nt s e le c ted fo r
ei g ht term s (fr o m 1800 to 1832 ) w ere s taun c h pro
t ec tio ni s ts and that th e d o c trine o f free trad e and
tari ff fo r revenue o nl y w a s b o rn ab o ut 1832 w h en
J o hn C C alh o un and hi s fell o w s tate s m en fo ll o w ed
b y the entire s lave p o w e r o f th e S o uth be c am e j ealou s
o f the g r o w in g p r o sp erit y o f the N o rth
due t o th e
Am eri c an sys tem o f p r o te c ti o n and b elievin g that the
S o uth w o uld al w a ys remain an a g r i c ultural c o untr y
th o u g ht that th e S o uth w o uld bene fi t m o re b y s ellin g
it s o ne s ta p le p ro du c t c o tt o n abr o ad a s d earl y a s
p o ss ible and bu y in g it s manu fa c tured goo d s abr o ad a s
c hea p l y a s p o ss ible T hi s ma y have been fr o m a s e c
t i o na l s tand p oint
of
tem p o rar y advanta g e to th e
S o uth but fr o m a p atri o ti c s tand p o int the S o uth a s
w ell a s al l p atri o t s s h o uld have s t oo d b y th e c ountr y
an d had th e y d o ne s o th e S o uth o f t o da y w o u ld b e
immen s el y more p ro sp e r o u s and teemin g w i th indu s
trial l i fe
,
-
,
-
,
,
,
,
,
,
,
,
.
,
,
,
.
,
.
,
,
,
,
,
,
,
.
.
,
,
.
-
.
,
,
,
,
,
,
,
.
,
,
,
,
,
.
47
N ot w ith s tand i n g that i n 1832 and 185 0 it ma y h ave
been for a s li g ht p eri o d o f advanta g e to thi s o ne
s e c ti o n o f th e c ountr y namel y the S o uth to have a
lo w tari ff even fo r them i t w o uld no t have remaine d
s o fo r a c o n s ide rab le number o f y ear s
B ut now a fte r
the d evel o p ment o f thi s c o untr y to it s p re s ent g reat
exte nt —
w ith o ut d o ubt the g reate s t i ndu s trial and
a g ri c ultural c o untr y in the w o rld —
havin g at the s ame
time th e hi g h e s t s tandard o f w a g e s and the hi g he s t
s tandard o f livin g kn o w n in the w o rld free trad e
and tari ff fo r revenue o nl y a re a b s o lutel y s ui c ida l
w he th er i t be for th e S o uth for th e N orth for th e
E a s t or for th e W es t
,
,
.
,
,
,
,
.
,
,
,
-
,
,
,
,
,
-
.
Eng l and now
p rote c t i on i s t c ou n tr y
“
”
I t ha s tak en free trad e En g land 100 y ear s an d
a g reat w ar to d i sc o ver that free —
trad e i s a falla cy
At la s t the o nl y g reat bul w ark o f free trade i s bro ken
”
“
“
d o w n and fre e trad e En g land be c o me s P rote c ti o ni s t
”
En g land
“
T he death k nell o f En g l i s h free trad e and ta ri ff
”
fo r revenue o nl y w a s s o und ed w hen R e g inald M c
K enna C han c ell o r o f th e B riti s h Ex c h eque r re c entl y
s aid :
“
T h e ex p er i en c e o f th e w ar h a s s ho w n that
th e s tren g th and s a fet y o f the B riti s h nat i o n i n
time o f p eri l lie s i n the p o ss e ss i o n b y th i s nati o n
o f th e p o w er t o p r o du c e it s requirement s fr o m
it s o w n s o il an d it s o w n fa c t o rie s rather than i n
th e p o ss e ss i o n o f value s w hi c h ma y be ex p o rted
and ex c han g ed fo r p r o du c t s and manu fa c ture s o f
”
forei g n c o untrie s
I n vie w o f En g land s c om p lete abandonment o f
f r ee trade and tari ff fo r revenue o nl y th e w ritin gs
o f s o me o f o ur earl y P re s ident s (man y o f them D em o
fro m 1789 to
c ra t s ) and o f s ome o f o ur lead in g men
1900 are m o s t a p t and intere s tin g
1 G eor g e W a s h i n g t o n (letter to La Fayette) :
“
H o w eve r unim p o rtant A m eri c a ma y b e c o n
s i d e red at p re s ent and h o w eve r B ritain ma y e ff e c t
to de sp i s e her trade there w ill a ss ured l y c o me
a da y w hen thi s c o untry w ill have s o me w ei g ht
”
in the sc ale o f em p ire s
2 Alexander H am i lton :
f No t o nl y th e w ealth , but th e i nde p enden c e
a nd s e c urit y o f a c o untry a pp ea r t o be materiall y
c o nne c te d w it h th e p r o sp erity o f
a
.
-
.
-
-
.
-
-
,
,
,
.
’
-
,
,
.
,
.
,
,
.
.
‘
.
s
p o rti o n to th e e n c oura g em e nt of th eir d o me s ti c i n
d us try an d that thei r d e c a y and de c re p itude c o m
menee s and p r o c e ed s p ari p a ss u w ith their ne g le c t
”
of it
8 H enry C Care y :
“
M a n uf a c ture s a re at on c e a n ev i d enc e and a
”
meas ure of civi l i z a t i o n
9 A braham Li n c oln :
“
I d o no t k n o w mu c h ab o ut the tari ff but I
kn o w thi s mu c h w he n w e bu y m a nu fa c tured
good s a bro ad w e g et th e good s and the fo rei g ne r
g et s th e m o ne y W hen w e bu y the manu fa c tured
go o d s a t home w e g et both the goo d s and the
”
m o ne y
10 Jame s G B la i ne :
“
T h e be ne fi t s o f p rote c tion g o fi r s t and la s t
to the m en w h o earn their bread i n the sw eat o f
”
their fa c e s
3
m
g
J
“
11 W i ll i am McK inley :
“
W e lead all n at i on s i n a g r i c ulture ; w e lead
all nati o n s in minin g ; w e le a d a ll nation s i n m a nu
fa cturi ng
T h e s e are the tr op hie s w hi c h w e brin g
”
a fter t w ent y n i ne y ear s o f a p ro te c t i ve tari ff
T he s tate s men o f th e ent i re c i v i l i zed w orld i n c lud
i n g th o s e o f free trad e En g land —ex c e p tin g the Dem o
m a in ly c o m p o s ed o f D em o
c ra ti c p a rt y i n Ameri c a
p ro c l a im a s d i d our
et a t s from o ur S o uther n S t a te s —
ea rl y P re s i d e nt s th at
T h e s tren g th and p ro sp er i t y of a na tio n lie s
i n p rote c tio n for th e buildin g u p o f i ndu s try a nd
a gri c ultur e w ithi n it s o w n b o rder s a nd in i t s ow n
fac torie s a nd from it s o w n s o il rath er th a n i n
v a lue s w hi c h may be ex p o rted a nd ex c han g ed for
p ro d uct s and m a n ufac ture s of forei g n n a tion s
T h e fore i g n nat i on s (o th e r than En g land ) h ave
k n o w n thi s fo r a lon g t i me but it t o o k En g land 100
y ear s and a g reat w ar to o p en her e y e s to the
”
“
”
“
falla c y o f free -trad e and T ar i ff for R evenue O nl y
A s w e h ave s een i n th e fore go i n g th e do c tr i n e o f
“
”
“
”
free trade
and tari ff fo r revenue o nl y s tarted in
the S o uth ab o ut 1832 It ma y take o ur S o uthern
p o liti c ian s o ur th e o reti c al p r o fe ss o r s and o ur pro fes
s i o ual c la ss e s al s o 100 y ear s to s ee thi s g reat li g ht
w hi c h i s now a pp a re nt to all ci vili z ed nati o ns of th e
.
.
.
.
.
,
,
,
.
.
.
.
,
,
,
.
I
4
.
.
.
-
.
,
-
,
,
,
,
,
.
,
,
.
-
.
,
earth .
50
W”h e n t h e Sout h ado pt ed th e ”d o c tr i n e o f
“
f r ee
“
t ra d e a n d t ari ff f o r revenu e o nl y a s s t a t e d b e fore
i t m a y h av e b een t o th eir se c t iona l advan t a g e and
m a y have c on t inued s o f or a f e w y e ar s H o w ever
had the y been p a t rio t i c c i t iz e n s as a ll c i t i z en s o f a
free c ou n t r y like o u r s s ho u l d b e t h e y wo u l d ha v e b e en
w i llin g that t h e Am eri c an sy s t e m of p rote c ti o n s houl d
“
bu ild u p t h e No rth and th e y s h o uld h a v e p ut t h e i r
”
h and s t o t h e p lo w and obtain e d in d u s t rie s and manu
fa c ture s for th e Sou t h a nd i f thi s h ad bee n don e
t here w ou ld hav e been no W a r o f t h e Re b ell ion t h e y
w ou ld h ave blo s s om ed l ik e t h e ro s e a nd t h e Sou t h
t oda y w oul d be fi ft y o r m o re y e ar s ad v an c ed o ve r
i t s p re s e n t c on d i t ion i n in d u s tr y a n d a g ri c u l t ur e
A s a matter o f fa c t t h e South ha s far g r ea t e r p o s
s ibi li ties fo r i n d u s t ria l d e ve lo p ment t h an t h e N or t h
I t h a s g r e a t w a t e r p o w e r far g r ea t e r
or t h e E a s t
t han t h e N or t h a n d E a s t o w in g to th e m ou n t ain s be
in g n ea r er th e s e a I t ha s a c limat e and s oil t ha t c a n
s u s t ai n l i f e b e t ter a n d c h ea p e r t h an an y se c t io n o f
t h e N orth and th e r ef o r e w ith t h e s a m e amoun t o f
e ner gy o f n e c e ss i t y t h e d ev elo p m en t i n i nd u s tr y mu s t
be p ro p ortion a t e l y g re ate r t h an a n y w h e r e else i n t h e
U n i t ed S t a t es
,
,
.
,
,
,
,
,
,
.
,
.
,
,
.
,
.
R ECA PI T U LA T I O N
.
W e h a ve see n t ha t t h e
D e m o c r a t i c U nd er wood
Si m mon s t ari ff bil l h as p ro v en i t s el f to b e o n e o f t h e
mo s t d i s a s tro u s p i e c es o f le g i s l a t io n ever p la c ed u p o n
o u r s ta t ut e boo k s ; re s u l t i n g in t h e th r ee y ear s of i t s
e xi s t e n c e 19 14 19 15 an d 19 16 in im p o r t ation s i n
e x c es s o f t h o se o f 19 11 19 12 an d 19 13 (R e p ubli c an
P a y ne ra t e s ) t o th e t r e m e ndo u s ex t en t o f over $ 772
and a t t h e s am e tim e r e s u lted i n a g r e a t d e
c rea s e o f c u s tom d u t ie s c o l le c t e d o f over
d u e t o t h e lo w e s t c u s to m s ra t e s eve r k no w n in ou r
h i s t o r y v iz an a v era g e of a t ri fl e over 8 % f or Ju n e
19 16 and an avera g e o f
f o r t h e fi sc a l y e ar
end in g J un e 30 19 16 re s u l t in g (u p t o t h e outb re ak
o f th e Euro p ean w ar A u g u s t 1 19 14 ) i n d i s as t e r to
ou r i nd u s tri e s and g rea t d i s t r ess t o ou r w ork m en
u n em p lo y e d i n t h e w in t e r of 19 14 ) a nd
all ou r p eo p l e T h e w a r i n t erru pt e d thi s d i s a s t e r a n d
d i s tre s s bu t w h en th e w ar i s o v er (p arti c u l arl y s o in
vie w o f t h e t i t ani c c ombination o f t w e l ve nation s o f
E u ro p e e xi s t in g fo r th e e x p re s s e d p ur p o s e o f a c co m
pli s h i ng t h e i nd u s trial dom in a t ion of th e w or l d ) i f
t h e l ow U nd er w ood t ari ff ra t e s ar e s t i l l i n exi s t e n c e
s am e i n ev i ta b ly m u s t r es u l t i n th e g r ea t es t d e p ress i o n
,
,
,
,
,
,
,
.
,
,
,
,
,
,
,
.
,
,
,
,
51
i n our ind u s tr y and d i s tre ss and fi nan c ial a g on y to
o u r w orkmen and p eo p le ever kno w n i n our hi s tor y
I t w ill p robabl y be s o m u c h g reater i n inten s it y th at
all former d e p re ss ion s w i ll s eem l ike m ere e c hoe s of
th e g r e at realit y
W e h ave al s o s een t ha t l abor an d th e labor union
o ffi c ial s are a un it i n thei r ex p re ss ion of fear that th e
re s u lt s w il l b e s u c h a s above d e p i c ted and s u c h that
i t w il l re s ult i n
“
for c i n g u p on th e indu s trie s o f thi s c ountr y a
f orei g n c om p eti tio n w ith w hi c h it w i ll be i mpos
”
s i bl e to c o p e
W e have al s o noted tha t t h e g overnm ent s of
E uro p e —p arti c ular ly E n g land F ran c e and German y
—invite t he c on s tru c tive bu s ine ss men to enter th eir
g overnm ent s and p oliti cs w h i c h h a s a c ted i n obtain
in g for the s e c ountrie s i n a cc ordan c e w ith th ei r op
po rtuni ti es th e g reate s t p o s s ible re s u lt s for th eir c om
m er c e i nd u s tr y and a g ri c u lture T h e Ameri c an p eo p l e
m u s t al s o i i th e y w ould al s o obtain fo r u s th e be s t
r e s u lt s —
p la c e more o f th e c on s tru c tiv e bu s ine ss m en
m er c hant s and m anu fa c turer s in ou r hi g h p oliti c a l
and g o vernmental p o s ition s o f tru s t
W e h ave a l s o s een th a t al l ou r ear l y P re s id en t s
from W a s h in g to n ( 1789 ) to and i n c ludin g And re w
J a c k s on ( 1832 ) w ere s tron g p rot e c tio ni s t s a l s o that
th e D emo c rati c p art y and earl y D emo c rati c P re s id ent s
from 1800 to 1832 in c lu din g T homa s J e ff er s on t h e
fou nd er o f D emo c ra cy and it s g reat lead er w ere
”
“
T h at tari ff for revenue onl y
s t ro n g p r o te c t i o ni s t s
free trad e et c w ere born in 1832 in t h e Sou th ern
S tate s b e c au s e the y w e re un w illin g t hat th e N orth
and W e s t s hould p ro sp er b y th e Am eri c an sys tem o f
p ro t e c tion ; the y erroneou s l y ex p e c ted t o al w a ys re
main a n a g ri c u ltural p eo p le
W e h ave s een that p er s i s ten t l y s in c e th e forma
tio n of ou r g o vernm ent i n 1789 to th e p re s ent t im e
d i s a s ter ruin and d i s tre ss al w a ys follo w ed i n th e
”
” “
“
w ake of s emi free t rad e
tari ff fo r revenue onl y
an d lo w tari ff le g i s lation ex c e p tin g i n tho s e s hort
p eriod s of p ro sp erit y referred to w h i c h re s ulted i n
an entire c han g e of c ond ition s d u e t o w a r notab l y
th e d i s a s t r ou s p eriod s o f
1783 to 1789
18 16 to 1822
1833 to 1840
1846 to 1860
1894 to 1896
19 13 to 19 15
.
.
.
.
,
,
,
,
,
,
,
.
-
,
,
,
,
.
,
,
,
,
,
.
’
-
,
.
,
.
,
,
-
-
,
,
,
.
.
.
.
.
.
52
W e have al s o s een tha t after t h e s e g re a t d e p re s s ions
d ue to lo w tari ff rate s a re t urn to p rot e c tive rate s i n
v ariabl y re s tored p ro sp erit y and t ha t th i s natio n w a s
bui l t u p p ra c ti c all y from nothin g d urin g th e p eriod
from 186 1 to 19 13 (ex c e p tin g four y ear s 1892 to
1896 ) b y th e p oli cy o f p rote c tion unto t h e g reate s t
i nd u s trial a g ri c u ltural and c omm er c ial na t ion o n t h e
f a c e o f t h e earth
“
”
W e h ave s een tha t F ree tra d e E n g lan d h a s no w
“
”
be c om e P rote c tioni s t E n g land and that th e w hol e
c ivilized w orld tod a y (ex c e p tin g a fe w o f our South ern
S tate s ) have embra c ed for ben e fi c ial re s ult s th e
do c trine o f p rote c tion B ut j u s t a s for mer free trad e
“
”
E n g land ha s no w b e c om e
P rote c t ioni s t E n g land
s o w i ll s hortl y ou r South ern Sta t e s a l s o emb ra c e
th e do c t ri n e of p ro t e c tion
T h e S ou t h lik e E n g land w il l s oo n
be P r ot e c ti on i s t
T h e South ern p oliti c ian h a s c lun g t o t h e f a ll a cy
“
”
“
of s ixt y y ear s a g o o f free trad e and tari ff fo r
”
revenu e on l y and th e D emo c rati c p art y ha s been abl e
o nl y t w i c e in fifty fiv e y ear s to c a p ture th e P re s id en cy
and Con g re s s and th en mainl y th rou g h th e aid o f th e
p rofe s s iona l c la ss e s o f th e N o rth but there i s no w a
g reat a w akenin g g oin g o n i n t h e South W ith th e
d evelo p m en t of i nd u s tr y th e manufa c t u rer s and
bu s ine ss m en o f th at s e c tion o f t h e c ountr y are a s
s um i ng
y earl y g reat er im p ortan c e both in d om e s t i c
and p oliti c al life and thi s elem ent i n th e South w il l
s oon be s o p o w erfu l that th e y thorou g h l y b eli evin g
i n a nd em bra c in g th e s am e w i ll i n s i s t up o n p rote c tion
for thei r ra p id l y —
g ro w in g i ndu s tri e s and a g ri c u lture
“
”
and th en t h e o ld fal la cy o f free trad e w il l di s a pp ear
al s o from th e South w ith th e s am e s u dd enne s s a s i t
h a s from E n g land A s i t ha s taken E n g land nearl y 100
y ear s t o c h an g e f rom free trad e to p rote c tion s o w ill
th e South ern State s w ithi n 100 y ear s from th e birth o f
“
”
—
th e d o c tri n e o f f ree trad e i n th e South (namel y
p reviou s to 1932 o r w ithin 16 y ear s from no w ) be c om e
s tron g p rote c tioni s t and th ereb y emb ra c e t h e pro tec
tive tari ff do c tri ne o f th e w hol e c iviliz ed w orld o f t o
d a y i n c lu din g form er f ree —
t rad e E n g land T h e n w e
w i ll have i n thi s g reat c ountr y o f our s on e p e o p l e
united unde r o ne g reat p ur p o s e o f w elfare for a ll
an d w ith p rote c tio n fo r Ameri c a n l abo r fo r Ameri c an
i ndu s t ry fo r Am eri c a n a g ri c ul tu re an d p rote c tion to
s u s tai n th e Ameri c an s tandard o f li vin g for a ll o ur
p e op l e ; t h e h i g h e s t s ta ndard o f li v in g th at th e w orl d
,
,
,
,
.
-
,
,
-
.
,
.
,
,
.
-
,
-
,
,
.
,
,
,
,
-
,
.
-
,
,
,
,
.
,
,
,
,
53
v e r s e e n N o lon ge r a ny s e c ti o nal o r p er s onal
i nt e r es t s but o ne U nite d R ep ubli c N o r th S ou th E a s t
w e lde d to g eth er w it h o n e s o li d p u rpo s e
a nd W es t
P r ot e cti on For T h e B e n e fit O f Al l
h as
e
.
,
,
,
,
,
,
.
54
(a ) T he allie s w i l l p roh ibit th ei r o w n s ubj e c t s an d
c itiz en s and al l p er s on s re s id in g i n th ei r t e rr i tori e s
from carr y in g on an y trad e w ith t h e i nh a b i t a n t s of
e nem y c ountrie s o f w h atever na t ionali t y o r w ith
en e m y s ubj e c t s w h ereve r re s id en t p e r s on s fi r m s and
c om p ani e s w ho s e bu s ine s s i s c ontro lle d w ho ll y or p ar
tia lly b y enem y s ubj e c t s o r s ubj e c t to e n e m y i nfl u
w ho se na m e s w i l l b e in c lud e d i n a s p e c i al l i s t
e nces
(b ) T h e a l lie s w i l l a l s o p rohib i t i m po rt a t i o n i n t o
th eir territorie s of a l l g ood s o ri g ina t in g o r c omin g
from enem y c o un t r i es
(c ) T h e all i es w i ll f u r th er d ev i se m ea n s o f es tab
lis h i ng a sys tem o f e n a blin g c on t ra c t s e nt e r e d into
w ith enem y s ubj e c t s and inj urio u s t o na t iona l i ntere s t s
to b e c an c ell e d un c ondi t i o na l l y
I I B u s i n e s s u nd er t a k in g s ow n e d o r op era t e d b y
enem y s ubj e c t s i n th e te r ritori es o f th e al l i e s ar e al l
to be s eque s trated o r p l a c e d u nd e r c o n t r o l M e a s ure s
w il l be taken fo r the p u r p o s e o f w ind in g u p s om e o f
th e s e und ertakin g s and realiz i n g t h e a ss e t s th e p ro
c eed s o f s u c h realizati o n s r e main i n g se qu es t ra t ed o r
u nd er c on t ro l I n add ition b y e x p or t p roh i b i t ion s
w h i c h are n e c e s s itated b y th e i n tern al s i t uat i o n o f
ea c h o f t h e al lied c oun t rie s t h e a ll i es w i ll c omp l e t e
t h e m e as ure s a l r ea d y t a k e n f o r th e res t r i c t i o n o f e n em y
s u p p li e s bo t h i n t h e m o t h e r c ou nt r i es a n d th e d o mi n
ion s c o l o n i es an d p r ot e c to ra t es
1 By u ni fy i n g l i s t s o f c on t rab a nd a n d e xp o r t p r o
hibi tio n p ar t i c ular l y b y p r o hibi t i n g t h e ex p o r t of al l
c om mod i t i es d e c la r e d ab s o l ut e o r c o n d i t i on al c o n t r a
ban d ;
2 By m a k i n g th e g ra nt o f l i c e n ses to e xpo rt to
neutra l c oun t rie s f rom w h i c h ex p or t to th e e n em y
terri tori e s mi g h t take p la c e c on d i t iona l u p on t h e e xi s t
e n c e in s u c h c ountrie s o f c ontro l o r g aniz a t i on s a p
p roved b y t h e alli e s o r i n t h e ab s en c e o f s u c h
or g a niza t ion s u p on sp e c i al gu a r a nt e es s u c h as th e
limita t ion o f t h e q uanti t i es to b e ex p o r t e d a n d s u p er
vi s ion b y al l i e d c on s u l a r o ffic es e t c
,
,
,
,
,
,
.
.
.
,
.
,
.
,
,
,
.
,
,
,
.
,
.
,
,
,
,
,
,
,
B
.
.
T ra ns i t o ry M eas ures for th e P eri o d of th e C om
merci a l, I ndu s tri a l , A gri cul tu ra l , a nd M ari ti me
Reco ns tr ucti on of th e A ll i ed C o unt ri e s
.
I T h e a ll i es d e c l ar e t h e i r co mmo n d e t e rm i na t i o n
to in s u r e t h e r ee s tabli s hmen t o f t h e c ountrie s s u ff er
in g f r om a c t s o f d e s tru c t ion s p o l ia t i o n a n d u nju s t
.
,
58
,
r e q ui s ition and t h e y d e c id e to j oi n i n d ev i s in g m ean s
t o se c ur e t h e r e s to r a t i o n to t h o s e c oun t rie s a s a p rior
c l a i m o f t h ei r ra w ma t er i al s ind u s t rial a g ri c ultural
p la n t a nd s t o c k a nd m er c ant i l e fl eet or t o a ss i s t them
t o r ee qu i p t h e m sel ve s i n t h e s e re s p e c t s
,
,
,
,
,
,
,
.
I I W h e r e a s th e w a r h as p ut an en d t o a ll t rea t i e s
o f c o mmer c e b e tw ee n th e alli e s and enem y p o w er s
and i t i s o f e ss e n t i al im p ortan c e that d urin g th e p eriod
o f e c o nomi c re c on s tru c tion th e libert y o f none o f t h e
alli es s houl d b e h a m p e red b y an y c laim p u t for w ard
b y e n e m y p o w er s to mo s t fa v ored natio n tr e atm ent
th e a lli es a g re e th a t t h e b e ne fi t of thi s t rea t ment w i l l
n ot b e g ran t ed t o t ho s e p o w er s durin g a number o f
y ear s t o b e fi xed b y mu t u al a g r ee m e nt amon g t h e m
sel v es
.
,
-
-
,
,
.
D ur i n g
th i s numb e r o f y ea r s t h e a ll i es un d er t ake
to a ss u re e a c h oth e r s o f ar a s p o s s i bl e c om p en s ator y
outlet s f or trad e in c a s e c on s equ en c e s d etrimenta l to
t hei r c omm e r c e s h o ul d re s u lt from th e a pp li c ation o f
th e u n d e rtak i n g r e f e rred to in t h e p re c ed in g c lau s e
,
,
.
I I I T h e all i e s d e c l ar e th e m s e l ve s a g ree d t o c on
s er v e f o r t h e al l i e d c oun t rie s before al l other s th ei r
natural r es our c e s d urin g th e w h ol e p eriod of t h e
c omm e r c ia l ind u s trial a g ri c ultural and maritim e re
c on s tru c tion and fo r th i s p ur p o s e th e y und ertake to
e s tabli s h s p e c i al arr a n g em e nt s to fa c i l i t a t e t h e inter
c han g e o f th ese r es o u r c e s
.
,
,
,
,
,
,
,
.
IV
I n o r d er to d e f e n d th e i r c omm e r c e an d i n
d us t ry and t h e i r a g ri c u lture and navi g atio n a g ai n s t
e c onomi c a gg re s s io n re s ultin g from d um p in g o r an y
oth er mod e of u nfair c om p etition th e allie s d e c id e to
fi x b y a g reem e nt a p eriod o f time d urin g w hi c h c om
m er c e w i t h th e enem y p o w er s w ill b e s ubmitted to
sp e c ia l t rea t m en t and g ood s o ri g inati n g from t h eir
c oun t rie s w il l be s ubj e c ted ei t her to p roh ibition s or
t o a s p e c ia l ré g im e o f an e ffe c tive c h ara c ter T h e
allie s w il l d e t e rm in e b y a g reem ent throu g h d i p lomati c
c hannel s t h e sp e c i a l c ond i t ion s t o b e im p o s ed d urin g
th e ab o v e -men t ion e d p e r i od o n th e s h i ps o f enem y
p owe rs
.
,
,
,
.
,
,
.
V
T h e all i es w i ll d ev i s e m ea s u r e s t o b e t a k en
j ointl y o r s ev e ral l y fo r p r e ventin g en em y s ubj e c t s
from exer c i s in g i n th ei r territorie s c ertai n ind u s t rie s
o r p r o fe s s ion s w hi c h c on c ern na t ion al d e f e n s e o r
e c on om i c i nd e p e nd e n c e
.
.
59
C
.
P e rm a n e nt M e a s ur e s o f M utu a l A s s i s ta n c e a nd
C o llabor a tio n A m on g t h e A lli es
.
I T h e al lie s d e c id e t o take th e ne c e ss ar y s t e p s
w ithou t d ela y to rend er them s elve s ind e p end ent of
enem y c ountri e s in s o far a s re g ard s ra w material s
and manu fa c tured arti c le s e ss ential to th e normal d e
v e lo pm e nt o f th eir e c onomi c a c tiviti e s
T he s e m ea s
u re s w il l b e d ire c ted to a ss urin g th e i nd e p end en c e o f
th e allie s not onl y s o far a s c on c ern s s our c e s o f
s u pp l y but al s o a s re g ard s t h eir fi nan c ial c omm er c ial
a nd maritime o r ganization T h e al lie s w i ll ado p t s u c h
m ea s ure s a s s eem to th em mo s t s uitabl e for th e c arr y
i n g out of thi s re s olution a cc ord in g to the natu re o f
t h e c ommod iti e s and havi n g re g ard to th e p rin c i p l e s
w hi c h g overn th eir e c onomi c p o li cy T h e y m a y for
exam p l e ha v e re c ou r s e to eith er enter p ri s e s s ub s idiz ed
and d ire c ted or c o ntr o l led b y th e governm ent s th em
s elve s o r to th e g rant o f fi nan c ial a ss i s tan c e for th e
en c ou ra g ement o f sc i enti fi c and te c h ni c al re s ear c h an d
th e d evelo p m ent of national indu s trie s and re s ou rc e s
o r to c u s tom s d uti e s or p roh ibition s of a tem p orar y
o r p ermanent c hara c t er o r to a c ombination of th e s e
d i fferent method s
.
.
,
,
,
,
.
,
.
,
,
,
.
W hatever ma y b e th e m etho d s ado p te d th e obj e c t
aimed at b y th e al lie s i s to in c rea s e th e p rod u c tion
w ithin thei r territorie s a s a w hol e to a s u ffi c ient ex
t ent to enable th em to maintain and d evelo p th eir
e c o nomi c p o s i tion and ind e p end en c e in relation t o
enem y c ou ntri e s
,
.
I I I n ord er to p ermi t th e i nter c h an g e o f th ei r
p rod u c t s t h e al lie s u nd ertake to ado p t m ea s ure s
fa c ilitatin g m utual trad e relation s both b y th e e s tab
li s h m e nt o f d ire c t and ra p id land and s ea tran sp ort
s ervi c e at lo w rate s and b y th e exten s ion and i m
p rovem en t o f p o s t al tele g ra p hi c and oth er c ommuni
c ation s
.
,
,
,
,
.
I I I T h e allie s u n d erta k e t o c on v en e a meetin g
of t e c hni c al d el e g ate s to d ra w u p m ea s ure s for t h e
a s s imilation s o far a s ma y b e p o ss i bl e o f th ei r l a ws
g overnin g p atent s ind i c ation s o f o ri g in and trad e
mark s I n re g ard to p at ent s trade mark s literar y
and arti s ti c c o py ri g h t w hi c h c om e into exi s t en c e d ur
in g th e w ar i n enem y c ountrie s th e al li e s w i l l ado p t
s o far a s p o ss ibl e an id enti c al p ro c ed ure to be a pp lied
a s s oon a s ho s tilitie s c ea s e T h i s p ro c edu re w il l b e
elaborated b y th e t e c h ni c a l d ele g ate s of th e allie s
.
,
,
,
,
-
,
,
.
,
,
,
.
.
60
IV
W herea s fo r th e p ur p o s e o f th eir c ommo n
d efen s e a g ain s t th e enem y th e a llied p o w er s have
a g reed to ado p t a c ommon e c onomi c p o li cy on th e
line s lai d do w n i n th e re s olution s w h i c h have been
p a ss ed ; and w he rea s it i s re c o g niz ed that th e e ffe c tive
ne ss of thi s p oli cy d e p end s ab s o lutel y u p on th e s e
re s olution s bei ng p ut i nto o p eration fo rth w ith th e
re p re s entative s o f the alli ed governm ent s und ertake
to re c omm end th at th eir re sp e c tive governm ent s s hal l
take w ithout d ela y al l th e m ea s ure s w h eth er tem
r
a
r
requi s ite to g ivi n g ful l and
o
y o r p erman ent
p
c om p l ete e ff e c t to thi s p oli cy forth w ith and to c om
m un ic a t e to ea c h oth er th e d e c i s ion s arrived a t to
attain th e obj e c t
P ari s J une 17 19 16
H ave s i g ned th e s e re s o lu t i on s :
F o r F ran c e : M E C lém e ntel M i ni s t re d u Com
m er c e e t d e l I nd us tri e ; M G D oum er g ue M ini s ter
d e s Colonie s ; M M S embat M i ni s tre d e s T ravaux
P ubli cs ; M A M eti n M ini s tre d u T ravai l e t d e la
P révo y an c e So c iale ; M J T h ierr y Sou s S e c rétaire
d E ta t d e la Gu erre ( Servi c e d e l I nte n d a nc e ) ; M L
N ail Sou s s e c rétaire d Eta t d e la M arin e ( M arin e M ar
c hand e ) M J Cambo n Am ba ss ad eu r d e F ran c e S e c
réta i re Généra l d u M i n i s tére d e s A ffaire s E tran g ere s
M A M a ss e S e c rétai re Général d u M i nis tere d e
l A g ri c ulture ; M J B ran et D ire c teur Général d e s
D ouane s ; M P d e Mar g eri e M ini s tre P lénipo t e ntia re
D ire c teu r d e s A ffaire s P olitiqu e s et Comm er c iale s a u
M i ni s tere d e s A ffaire s E tr a n g ere s
F or B el g ium : M d e B ro q uev i lle P ré s i d ent d u
Con s eil M ini s tre d e la Gu erre ; M 1e B aron B ey e ns
Mini s tre d e s A ffaire s etran g ere s ; M van d e V y v e re
M ini s tre d e s F inan c e s ; M le Comt e Gobl et d A lv ie lla
M emb re d u Co ns ei l d e s M ini s tre s
F or Great B ritain : M le M arqui s d e Cre w e Lord
P re s id ent d u Con s ei l p rivé ; M A B onar La w M ini s tre
d e s Coloni e s ; M W M H u g h e s P remier M ini s tre
d A us tra li e ; Si r Geo r g e F o s ter M ini s tre d u Comm er c e
d u Canad a
F or I tal y : S Ex c M T i tto ni A mba ss ad eu r d I t
a li e a P ari s ; M D aneo M ini s tre d e s F inan c e s
F or J a p an : M 1e B aron S a k a ta ni A n c i en M i n i s tre
d e s F inan c e s
F o r P ortu g al : M 1e D o c teur A lfon s o Co s t a
M ini s tre d e s F inan c e s ; M le D o c teu r Au g u s to So a re s
M ini s tre d e s A ffaire s etran g ere s
.
,
,
,
,
,
,
.
,
,
.
.
.
,
’
.
.
.
.
.
,
,
.
,
-
.
.
,
’
’
.
.
’
-
,
.
.
,
.
.
,
,
’
.
.
.
,
,
.
,
.
,
.
,
,
.
,
.
’
,
.
.
,
.
.
.
.
,
.
,
.
’
,
.
’
.
.
,
.
.
,
.
.
,
.
'
,
.
,
.
.
61
F or R u ss ia : M Pok ro w s k y Co nt r ole u r d e l Em
p ire Con s ei l l er p ri v é ; M P rilejai eff Adj o i n t a u M in
i s tre d u Comm er c e e t d e l I nd us tri e Con s ei l ler p r i v é
Fo r S erv ia : M M a rink o vi tch M in i s t re d u Com
m e rce
I n cl o s u re Z T ran s l ati o n "
"
T h e f o ll o w i n g p er s on s w ho ar e d i p l oma t i c reprt
s enta ti v e s o f t h e allied c ou ntri es in P ari s
h a v e b een
a pp ointed a s a p ermanen t c ommitt ee o f t h e e c onomi c
c onferen c e :
B e l g iu m : M G P eltz e r V i c e P res i d e nt o f th e
U nio n E c on om i q u e B el g e
F ran c e : M D en ys Co c h in M ini s ter o f S t a t e P r e s i
d en t of th e Comm ittee ; M Gou t M ini s t e r P leni p o
t e ntia ry U nd er S e c retar y o f t h e F orei g n O ffi c e ; Cont re
A mir a l A m e t V i c e P re s id en t o f t h e Com mit t e e
I t a l y : P r i n c e R u s p o l i M i n i s ter P le ni p o t e n t i ar y
I talian E mba s sy i n P ari s ; Command e u r d e l Abba
d e ss a A s s i s t ant Gen e ra l D ire c tor o f t h e Cu s t om s ;
Co lone l B r a n c a cc io
J a p an : T a ts uk e C o un s e llo r o f th e J a p a n e s e Em
ba s sy i n P a r i s
Great B r i t a i n : E ar l Gr a n v i ll e Co u n sell o r o f t h e
B riti s h E mba ss y i n P a r i s
P or t u g al : M d e V i l h e na
R u s s ia : S ev as topoulo C o u n sell o r o f th e R u ss i an
E mba ssy i n P ari s ; B a t c h e ff Com m er c ia l A tt a c h é a t
th e R u s s ian E mba s s y i n P a r i s
S erv i a : Vo ulov itch D e p u t y ; K apeta nov i tch D ep
ut y
Genera l S e c re t ar y
’
.
,
.
,
,
’
,
.
"
,
—
.
.
,
.
,
.
,
.
.
,
.
,
.
,
,
,
.
,
,
.
,
.
,
.
.
.
,
,
.
,
,
.
:
BOS S ER ON T
Minis ter
62
’
D
A N GLADE,
P lenipotentiary
.