The Tariff. Farmers, Iron Workers and Laborers THE TRINITY OF THE NATION’S STRENGTH, PROGRESS AND PROSPERITY DC LICK RED DEVORE THE AMERICAN IRON AND STEEL ASSOCIATION AT CHIC A 0'. ILL, MAY 24, 1865. HON. flMOTHY O. HOWE EX. U. S. SENATOR AND POSTMASTER GENERAL RE-PUBLISHED BY THE NORTHWESTERN TARIFF BUREAU OF JOHN W. HINTON, OF MILWAUKEE MILWAUKEE : Wisconsin Legal News, 430 and 432 Broadway 1882. 337 6 3&tl Return this book on or before the Latest Date stamped below. A charge is made on all overdue books. U. of I. Library DEC 2i 33 \ ?! M J Ht i 5 1965 ¥ OF ILLINOIS 1RARY Book Volume ■183 St ECMMUCS J U . Mjf 132 -* ADDRESS. ■I Mr President and Gentlemen: — You will not expect from me any discussion of the technicalities of the business which engages our attention. It is not from me that you expect to be instructed as to the relative value of different ores, or the comparative advantage of different methods of reducing them. I do not know one ore from another; I scarcely know a foundry from a bloomary. tou cannot expect me to teach what I have not yet begun to learn. Nevertheless, I did not decline the invitation of your committee to ad- dress you on this occasion I recognize in you the representation of that great department of American industry which has already invested a capital of about fifty millions, which employs about one hundred thousand men and women, and which produces from the earth about one million tons ,of iron annually. Hence, it will be readily conceded that, to use a very suggestive westernism, “you are some.” And it seems to me it might not be wholly unprofitable to spend an horn upon the inquiries— what you really are, what you ought to do, and what ought to be done with you. There is a type of American opinion which affects to regard you merely as the proprietors of so much capital; to hold also, that capital is the natural enemy of labor, and thus they agree that every blow struck at you is a blow struck in defense of labor and at its enemy. With all such believers the answer to the second and third in- quiries are very simple. Of course if you are the inevitable and implacable enemies of labor, the best thing for you to do is to die; and the best thing to be done with you is to bleed you to death as soon as possible. But surely they are mistaken who teach us either that money is the natural enemy of labor, or labor the natural enemy of money. True, they may be made such. But that is a false and perverted state of society in which money and labor are at enmity with each other. So construct society as that money wants no labor and that labor can get no money, and you will at once create an antagonism between these two members, before which one or the other, if not both, must soon fall. But if you would have these two elements of the national wealth to be mutual friends and not enemies, make them mutually dependent upon each other — mutual help meets, each for the other. If there is any statesman or any philanthropist who thinks that labor has an unequal chance in the struggle with money, there is but one way of relieving it. It is by stimulating and encouraging that use of money which Z G OGA y UNIVERSITY OF ILLINOIS LIBRARY Class 337 Book Volume H83St ECONMIICS Ja 09-20M ftjr i.twa ADDRESS. ( ^ ^ V <( S fi Mr President and Gentlemen:— You will not expect from me any discussion of the technicalities of the business which engages our attention. It is not from me that you expect to be instructed as to the relative value of different ores, or the comparative advantage of different methods of reducing them. I do not know one ore from another; I scarcely know a foundry from a bloomary. tou cannot expect me to teach what I have not yet begun to learn. Nevertheless, I did not decline the invitation of your committee to ad- dress you on this occasion I recognize in you the representation of that great department of American industry which has already invested a capital of about fifty millions, which employs about one hundred thousand men and women, and which produces from the earth about one million tons of iron annually. Hence, it will be readily conceded that, to use a very suggestive westernism, ‘ ‘you are some. ” V And it seems to me it might not be wholly unprofitable to spend an houi i u Po n the inquiries— what you really are, what you ought to do, and what ought to be done with you. There is a type of American opinion which t affects to regard you merely as the proprietors of so much capital; to hold * also > that capital is the natural enemy of labor, and thus they agree that every blow struck at you is a blow struck in defense of labor and at its i) enemy. With all such believers the answer to the second and third in- quiries are very simple. Of course if you are the inevitable and implacable enemies of labor, the best thing for you to do is to die; and the best thing to be done with you is to bleed you to death as soon as possible. But surely they are mistaken who teach us either that money is the natural enemy of labor, or labor the natural enemy of money. True, they may be made such. But that is a false and perverted state of society in which money and labor are at enmity with each other. So construct society as that money wants no labor and that labor can get no money, and you will at once create an antagonism between these two members, before which one or the other, if not both, must soon fall. But if you would have these two elements of the national wealth to be mutual friends and not enemies, make them mutually dependent upon each other— mutual help meets, each for the other. If there is any statesman or any philanthropist who thinks that labor has an unequal chance in the struggle with money, there is but one way of relieving it. It is by stimulating and encouraging that use of money which V 4 7 will most diversify labor and multiply the demand for it; that is a sure method of relief. It is approved not more by the teachings of the political economist than by the experience of every capitalist and of every laborer. The more money needs labor, the more independent is the latter of the former, and when money is so employed as that it can no more thrive with- out labor, than labor can ever thrive without money, then the two are upon a level, and there is no longer occasion for sympathy with either. It seems to me more sensible to regard you as the employers of one hundred thousand laborers— American laborers— producing from an ore, worth nothing in its natural state, a million tons of iron annually, worth forty millions of: dollars — to hold 3 7 ou collectively responsible for the con- tinual employment of that labor, and personally responsible for the pay- ment of it I therefore think the “American Iron and Steel Association” an institution to be cherished and not destroyed Certainly it seems to me if he who causes two blades of grass to grow where but one grew before can be called a public benefactor, much more must they be so regarded who from a mass of unused mineral, annually produce a value of not less than forty millions. The American people have just subdued the first, and I trust the last, great revolt against popular sovereignty The rebellion with which they had to struggle was not only the most wanton, the best matured and the most formidable that ever assailed a people, but the victory of the people is also the most complete. The capitol of the insurgents, after four years spent in fortifying it. was taken, not by siege, but by assault. Of four great rebel armies, not one was dispersed; but each one in terror was surrounded, and compelled, with their General at their head, to surrender as prisoners of war. And the rebel chief himself, flying from the halter which would not be cheated of its just dues, was captured not exactly in theJast ditch where he threaten- ed to be found - but if we may credit prisoners’ accounts of rebel destitu- tion, he was probably caught in the last petticoat which his wife’s wardrobe could supply. When a few weeks since the army of Lee was driven from Eichmond, but had not yet surrendered, our enemies upon the other side of the Atlan- tic. chuckling over the hope of prolonged guerilla strife, clamored with the prediction that the United States had but just emerged upon the second and most difficult stage of the war. The peril with which they so pleased them- selves is already passed. Guerillas and soldiers are alike disarmed, and await the justice or the mercy of the government they assailed. Neverthe- less I do think the danger which now confronts us is graver than any we have yet encountered. The storm through which we have been struggling has cast us upon a mountain of debt. The United States will owe on the first day of July next, not less than three thousand millions of dollars. The fact should sober, but not appal us. This debt must be paid — there is no alternative. ; It must be paid. Every 5 dollar, principal and interest, .must be paid. Repudiation ! American integ- rity has set its heel upon repudiation, and it and its authors are hereafter for all time infamous. Repudiation was whipped with the rebellion. It will be gibetted with its Chief. It will be sent back with -its twin furies, Slavery and Secession, to that Tartarus from which they all sprung. Henceforth the word has no place in the American Lexicon. A people who offered up their lives in de- fense of their freedom, will not hesitate, if need be to sacrifice their estates, to save their honor. This immense debt is to be paid And what is equally certain is, that the American people must work it out. It cannot be paid by the currency now in circulation It cannot be paid by the transfer of existing values. The money, the manufactures, the minerals, the meadows and the muscle of the nation — These are not the treasures with which the public debt is to be liquidated . These are the implements by which the means of paying the debt must be earned— the National debt stands charged upon the national industry. It must be worked out. Such being the stern necessity resting upon American labor. The ques- tion I put to you, the question which in my judgment cannot be answered too soon by the American People is this, — Shall that labor be exposed to unrestricted competition with the half- paid labor of Europe, or shall it be secured in the franchise of supplying the American market so far as it can, of ministering to American wants, and developing American resources so far as it may ? At different periods in the former history of our country, a policy has been strenously urged upon it, denominated “Free Trade.” The advocates of that policy instruct us to buy where we can buy for the least money, regardless of the question how we are to pay. They tell us it is unwise to pay $30 for a ton of iron in Pennsylvania when we can procure the like in Staffordshire for $20, or to pay ten cents for a pound of cotton in Lowell when we might procure the same in Manchester for eight cents They persuade us that all duties imposed upon importation for the pur- pose of what is called “protection,” is a burthen upon the consumer; that every encouragement given to American manufacturers— is a direct injury done to American Agriculture The theory is specious; the policy plausi- ble. It has always received in my judgment, much too large a share of the public favor. But whatever may be its intrinsic merits, it seems to me now, if ever, the American people should make up their minds, definitely either to adopt or reject it. Any policy is better than no policy. Chronic free trade is better than intermittent protection. I think it better to tell the American farmer at once to produce what he can, and to sell wherever he can find a purchaser, than to offer him a market this year in New York, and send him next year to Liverpool, and leave him without a market any- where the year after — better to tell the manufacturer now, to put out his fur- nace fires, dismantle his mills and discharge his force, and hereafter employ his money not in paying labor, but in skinning it, than to induce him by the 6 promise of protection, to invest millions this year in manufacturing, only i to see the whole sacrificed next year by the mandate of Free Trade. Better to tell the American laborer at once to strip himself for competition with the pauper of Europe, and bear up under the load of existence, as he may, than to animate him to feverish exertion one year by offering him a diversity of employments, and paralyzing all exertion next year by with- drawing all employment. The experience of the world has often proved that communities once thoroughly instructed not to hope for anything, may long be kept quiet with very little. It is the alternate kindling and quenching of hope, which agitates communities and shatters States. I have said there may be quiet when there is no hope, but there can be no growth there, least of all can there be any great achievement. Nations which grow, and which do, are those which certainly hope and fervently believe ; with whom the fruition of to-day is the germ of to-morrow. This nation, we have already seen, has something to do. It has a debt to pay. And so I think, instead of bidding it to hope nothing, it is wiser to bid it ‘ ‘ hope all things, to believe all things, and to hold fast that which is good.” But what is good ? Certainly it seems to me good in times like these, when so much is to be achieved, not to restrict the field of effort, but to expand it. The champions of free trade have always loudly asserted that it was es- sential to the agricultural interests, that all direct protection given to the American manufacturer, was an inherent wrong done to the American farmer. The state I live in is essentially an agricultural state. I profess myself devoted to her welfare. I will therefore be the last to attack a policy necessary to the well-being of the agricultural interests. Nay, I think in whatever community I might chance to live, I could never anywhere be unmindful of the interests of agriculture. I regard that as the one vocation which, more than any other in the whole circle of human labor, concerns us all. No matter in what channel your own individual effort may be specially directed, the labor of the farmer precedes it, and makes it possible. In whatever temple the industry of nations may be gathered, agriculture must form the grand porch to it. Through it alone can any industry enter upon the gaze of the world. Without agriculture there can be no manufactures, no commerce, no mechanism nor art, no science nor song. Then is protection given to domestic manufactures, an injury done to agriculture ?• To prove the affirmative of this, volumes of tables have at different times been published for the purpose of showing that duties im- posed upon foreign manufactures, with a view to the protection of our own. enhance the cost of the protected article to the farmer who is the principle consumer. Columns of figures have been piled up before us, to show the price of specific commodities at periods where our legislation favored pro- tection, and of the same articles where our legislature favored the policy of 7 free trade. I do not reproduce these tables for two reasons: 1st, they do not establish the fact of enhanced prices, and 2d, that is not the material fact to be considered. They do not establish the fact of enhanced prices, because they are op- posed by other tables equally voluminous, and by other figures equally im- posing, showing that manufactured articles are cheaper in our markets under the policy of protection, than under that of free trade. I do not re- ject their testimony upon either proposition. On the contrary I accept it upon both. It seems very clear to me that at different times, and under different circumstances, the same policy must exhibit both results. It seems very clear to me that the immediate effect of protective duties must be to enhance the price of the article protected, else the duty will not be protec- tive. But it by no means follows that the ultimate effect will be. the same as the immediate effect It might be well that the organized capital and labor engaged in the iron manufactures of Scotland and Wales, might be able to prevent the unor- ganized capital and labor* of the United States from erecting a single fur- nace in Pennsylvania or Michigan, and yet, when labor and capital had properly organized, iron might be produced from the mines of Pennsylvania and Michigan as cheaply as it could be delivered there from the mines of Lanarkshire or Monmouthshire. Indeed/ in 1740, when Great Britain had more ore and more fuel and as much unemployed labor as she now has, the whole Empire produced but 17,350 tons of iron. If England had never given to that interest any protection, you would not now require any protection against the iron manufactures of that nation. But ample protection was afforded, and the result is that England, Scot- land and Wales, with an area less than double that of Pennsylvania, pro- duced in 1855 no less than 4,399,836 tons, or nearly two-thirds of the yield of the whole world, and can undersell the world. But our mineral de- posits are much richer than those of England, as our territory is larger; fuel here is as much more abundant; our climate as healthy; our population as hardy ; our days as long. If we please to say that we will not buy the product of British mines, but will develope our own, I do not understand why eventually iron could not be supplied from our foundries, as cheaply as from those of our rival. I do not see why a like policy, tried upon a better theatre, should not yield at least as good results. But the vital question with the American farmer is not “can he buy as much iron or as much cloth for twenty dollars, under the policy of protec- tion as under that of free trade,” but it is “can he buy as much with twenty bushels of wheat or of corn ?” British Guineas and American Eagles are not among the crops cultivated by the farmer of Wisconsin and Illinois. If they were, and if they cultivated nothing else, it would be well for him to consider whether he could buy his spades and shirts for less money in Birmingham and Manchester, or in Lawrence and Pittsburg. But he raises on the contrary, corn and wheat, and pork and beef, and when he has con- 8 clusively settled the point, that he can do more with twenty dollars undei the free trade policy than under the opposite, it will be necessary for him to consider under which system he can get the twenty dollars for the least grain and meat. If you hire your manufacturing done in England, then you must send your bread and wheat to feed the operator and to pay for his work. There it will find its market; there its value will be regulated, but not its price. Between the man who raises corn in Illinois and the man who eats it in Staffordshire, an army of traders, forwarders, common car- riers and brokers intervene, all of whom must be employed in, and paid for, taking the corn to market What the charges are for this service I am un- able to state. But I notice that wheat which is bought in Chicago at $1. 10 is sold in New York at $1 58, currency, and in Liverpool at $1.95, gold, worth $2.50 -What it cost to. collect the wheat in Chicago from the pro- ducer, or to distribute it to the consumer from Liverpool, is more than I know. But it is very clear that the further we send our produce to market, the more it costs to get to market, and if it be marketed in England the farmer receives not more than one-third of what the consumer pays; the other two-thirds being pocketed by the traders, the commission merchants and forwarders, for protits, commissions and freights. But the farmer is told that he does not pay these charges; that he finds a purchaser at home and gets his price, and |ill this accumulation of profits is paid by the con- sumer in England./ The conclusion seems to me a mistaken one. England pays $2 50 per bushel for your wheat, because it is worth that to feed to the operatives who do your manufacturing. If it is worth that sum to feed to the operatives in England, why is it not worth as much for the same use here ? Nay, more, about one-fourth of the prime cost of the fabrics the farmer gets in exchange is made up of provisions. The manufacturer pays $2.50 per bushel for Illinois wheat, and charges it over at that price to the fabrics he returns in exchange. Thus it happens that the wheat which the farmer takes to Chicago, and sells at one dollar and ten cents, he buys back in Liverpool at $2.50, in the shape of English fabrics, and pays freight, commissions and multiplied profits upon the return cargo During the fiscal year ending June 30th, 1861, the last year during which our foreign trade was not seriously affected by the war, we import- ed about sixty-nine millions of cotton, woolen and iron fabrics. The whole of that cotton was raised in our own country. The whole of the wool and iron we ought to have raised. Thus American industry is exhibi- ted in the unenviable attitute of sending its own cotton, iron and wool to England to be manufactured. We paid freight, profit and charges to every man who touched it; we sent our own provisions across the ocean to feed the labor which worked it up; we paid freight, profit and charges on them; and we bought the finished goods back again, paying similar charges on those. But we are told that we find' it profitable even in this extravagant pro- 9 i fcedure, because we can employ European labor to do our manufacturing jjo much cheaper than we can employ our own. Yet the question remains, can we work men and women in England cheaper than we can work them here ? But we are told the men and women are in England and not here That here we have neither the capital, nor the labor to do our own manu- facturing. £ls it not easier to import the workmen than to import the work of his life-time ? Is it not easier to import the labor and the capital, if needed, which produced the sixty -nine millions, than to import that amount of merchandise annually, during the life of the producer? But you say the capital a’nd the labor is wanted, and is at wotk them qpd will not come here. Yet it is wanted there, because! ydolgo tfcfe^ef to , use, it. It is employed there, because you go there