volume of industrial production, in magnitude of domestic exchanges, or in foreign exchange, has just closed." If further testimony be desired it can be found in the following extract from a Senate Committee appointed to investigate the result of the McKinley law on prices and wages. The investigations were conducted by Carroll D. Wright, Commissioner of the Department of Labor, General Francis A. Walker, Professor H. C. Adams, Edward Atkinson, Professor E. J. James and William Grosvenor. Of these the first is, if possible, independent on the tariff question, the next three are pronounced free traders, and the last two are protectionists. The report, which was unanimously accepted by a Senate Committee composed of both Republicans and Democrats, stated that: "During the twenty-eight months from June 1, 1889, to September 1, 1891 (the act took effect October 6, 1890), average retail prices of 214 articles of common consumption among the people declined .64 per cent; wholesale prices of the same articles declined .33 per cent; prices of agricultural products advanced 18.67 per cent, and wages advanced on the average -75 per cent." The following brief summary of the McKinley bill and its results is given by Mr. D. G. Harriman, in his "American Tariffs from Plymouth Rock to McKinley," page 73: Increased duties on about, Reduced duties on about, 115 articles. 190 articles. Effects of the McKin ley act. And left them unchanged on, Increased our foreign commerce in eleven months, Increased our free imports, Made the percentage of free imports, of all our imports, 249 articles. 55.75 22.48 Reduced the total revenue (“tariff taxes") in twelve months, . . . $41,396,425 Increased the cost of no necessity of life and reduced the cost of many; stimulated business, and thereby tended to make people busier and earnings surer, if not larger. Fair Trade (Eng.) in discussing the merits of the McKinley bill gave the following four points in its favor: The manufacturers of Great Britain don't like the McKinley tariff bill. The manufacturers of Germany don't like the McKinley tariff bill. The manufacturers of France don't like the McKinley tariff bill. The Anglomaniac Free Traders of the United States don't like the McKinley tariff bill. This furnishes four excellent reasons why the bill should become a law.1 The growth of other industries and of industrial activity in general after the passage of the McKinley bill will be further pointed out in the 1 Vol. V., p. 413. Summary of tariff legislation. treatment of special industries, and the conditions immediately preceding the passage of the Gorman-Wilson bill. The writer has compiled from the statutes of the United States and other official sources the following brief description of the tariff laws of the United States, from the formation of the government to the present time: AMERICAN TARIFFS FROM 1789-1894. Dates of Passage and Operation with Salient Features and Consequences. Act of July 4, 1789-Went into effect August 10, 1789. Duties imposed upon 75 Average rate on total imports August 10, 1790-Went into effect January 1, 1791. Imposed 50 new duties and increased many of previous year. Average rate on total imports 8 per cent. March 3, 1791-Slight increase-unimportant-rates increased on spirits. Average rate on total imports 8.43 per cent. May 2, 1792-Went into effect July 1, 1792. Over 150 articles were enumerated in this bill. General increase of 21⁄2 per cent. 10.93 per cent. June 5-7, 1794-Went into effect July 1, 1794. refined sugar. Average rate on total imports Imposed additional duties and made Increased rates on tobacco, snuff and Average rate on total imports 13.88 per cent. January 29, 1795–Rates changed on types, sugar and wines. Many changes, some reductions. Twenty-five articles on free list. Average rate on total imports 8.04 per cent. March 3, July 8, 1797-Increased rates on sugar, tea, molasses, velvets, cotton goods, March 13, 1800-Went into effect July 1, 1800. Increased rates on sugar and wines. cent. Increased all ad valorem rates 21⁄2 Increased rates on goods in foreign vessels 10 per cent. Addi per cent. tional rates on many specific articles. Mediterranean Fund. Average rate March 3, 1807; March 4, 1808-Salt and copper, saltpetre and sulphur made free. Embargo Act passed in December, 1807, prohibiting all imports from England and Act of July 1, 1812-Went into effect same day. Known as the war tariff. All Act of April 27, 1816-Went into effect July 1, 1811. Known as the Lowndes- Calhoun bill. principle adopted. Intended as a protective measure but failed because of duties being too low to prevent vast importations from England at less than cost prices. Average rate on all imports 26.52 per cent. April 12, 1818-Rates changed on iron and alum. March 3, 1819-Rates on certain wines reduced. per cent. Summary of tariff Average rate on all imports 35.02 legislation Act of May 22, 1824-Went into effect July 1, 1824. Decided increase in duties with most significant and gratifying results. Average rate on all imports 37 per cent. Act of May 19, 1828-Went into effect September 2, 1828 and July 1, 1829. Known as the "Tariff of Abominations." Minimum extended. Rates increased. Average rate on all imports 47.80 per cent. May 20, 1830-Rates reduced on teas, coffees and cocoa and molasses. July 14, 1832-Went into effect March 4, 1833. Known as the "Modifying Tariff." Act of March 2, 1833-Went into effect January 1, 1834. Known as the "Com- July 4, 1836-Rates reduced one-half on wines. September 11, 1841-Articles free and those paying less than 20 per cent to pay 20 Act of August 30, 1842-Took effect immediately. General revision and increase of Act of July 30, 1846-Went into effect December 1, 1846. Known as the "Walker Tariff." General reduction of duties. Changes from specific to ad valorem rates, duties for revenue only. Effects of this tariff were most disastrous in spite of foreign war, famine and the discovery of gold. Act of March 3, 1857-Went into effect July 1, 1857. General revision and further reduction of duties. A culminating free trade act, resulting in panic and commercial ruin. The worst period in the nation's history. Act of March 2, 1861-Went into effect April 2, 1861. Intended to raise the necessary revenue for the government expenditures. August 5, 1861-First of the war tariffs, large increase in duties. December 24, 1861-Duties increased on sugar, tea and coffee. July 14, 1862-Went into effect August 2, 1862. Further increase of rates. March 3, 1863; April 20, 1864; June 30, 1864; March 5, 1865; March 15, 1866 and Act of March 2, 1867-Took effect immediately. Rates increased on wool and February 24, 1869-Rates increased on copper. July 14, December 20, 1870. -General changes. Free list largely reduced. Duty of $28 per ton on steel rails. May 1, 1872-Tea and coffee made free. June 6, 1872-Went into effect August 1, 1872. Reduction of 10 per cent. Increased free list. June 22, 1874-Revised statute, with slight and unimportant changes. February 8, 1875-Known as the "Little Tariff Bill." General changes. March 3, 1875-Took effect immediately. Rates increased on sugar. Repeal of 10 per cent reduction of act of June 6, 1872. Tariff legislation. July 1, 1879-Quinine made free. July 14, 1880-A few unimportant changes. May 6, and December 3, 1882-Repeals discriminating duty. Act of March 3, 1883-Went into effect July 1, 1883. Known as the Tariff Commission Bill. General revision, reductions and increased free list. Severe blow to wool industry. Act of October 1, 1890-Went into effect October 6, 1890. Known as the McKinley Bill, the most perfect tariff measure ever framed. Changes from ad valorem to specific rates. Enlarged free list. Sugar made free, a bounty being substituted. Reciprocity law. Unusual prosperity in all lines of industry. More men employed and at higher wages than ever before in the history of the nation. Act of 1894-Went into effect August 27, 1894. Known as the Gorman-Wilson Bill. Became a law without the President's signature. General reduction of duties. Wool put on free list. Great falling off in number of sheep. Increased importations of competing commodities to the detriment of American manufacturers. Great increase in national debt. Deficiency of revenue. Impairment of gold reserve, necessitating repeated bond issues. Decline in foreign trade. General depression in business throughout the entire country. A most important act of tariff legislation was the so-called Administrative Customs Law of 1890, which went into effect August 1 of that year. It was an act to simplify the laws in relation to the collection of the revenues, and to do away with fraud and many underhanded methods then resorted to by importers. The act proposed the appointment of nine general appraisers by the President. They were to receive a salary of $7000 yearly, to be under the general direction of the Secretary of the Treasury, not more than five were to be appointed from the same political party, and penalties were imposed for bribery in any form both for giver and receiver. Thus have been described the various tariffs of the United States. Those which gave protection gave also prosperity. Those which failed to give protection brought disaster. In those tariffs which were protective the rates were different, but the results were the same. They were each adapted to cause protection in a greater or less degree at the time they were enacted. At another time each one of them might not be successful, for changed conditions require different rates, and it is the task of practical business men at any time to so adjust rates that they may operate to make secure the American markets for the American people. CHAPTER IV. GROWTH OF AGRICULTURE, 1850 TO 1890. The tariff history of the United States, with a general résumé of the effect of fiscal legislation, has been given up to 1893, when our country and its industries reached the highest pinnacle of advancement and prosperity. Our principal industries will now be taken up somewhat more in detail, although only the most essential features can be touched upon. tion of The following statement from the census of 1890 shows the distribu- Distribution of the whole number of males and females engaged in gainful occupa- population tions according to the number and percentage in each class: according to occupationsAgricul ture. Agriculture is the largest and most important industry of this country, and in it are engaged more people than in any other one occupation. The farmer feeds not only himself but all the rest of the inhabitants. Great, then, is his responsibility when he provides for a people that consumes more than any other people in the world. There are certain essential requisites indispensable to the farmer's prosperity. First, good crops; second, a good market; third, reasonable prices for what he has to sell and buy. The American farmer is blessed as is no other tiller of the soil on earth, when all is considered. Our soil and climate give him good crops in nearly all food products consumed by man. Our protective tariff gives him a substantial home market and profitable prices for his products. It is impossible to consider the agricultural progress of this country without at the same time bearing in mind our growth in manufactures. Prosperity in the latter is indispensable to (657) 42 |