THE TARIFF AND THE FARMER Revised, 1911 BY ARCHIBALD CUMMINS Published, by THE HAWTHORNE ASSOCIATION Berryville, Va. COPYRIGHT 1911 BY THE HAWTHORNE ASSOCIATION COLLINS & CO.. PRINTERS, 628 CHESTNUT ST.. PHILADELPHIA, PA Blackburn 331 twllt t»r. i <4 \. * $ o THE TARIFF AND THE FARMER to 5 ro The tariff question promises to be the chief question before the country in the years immedi¬ ately to come. It is a most important question because the tariff laws affect so largely the char¬ acter of our possessions. Throughouf the land there will be discussion and contention. The question will form the division line in politics and voters will range themselves with the party which best represents their views regardless of old affiliations. Ours is a land of plenty but there is much discontent and unrest. The city resident with small income is in straits because of the high cost of living; the factory workman finds that his high wages with difficulty meet his needs; the farmer feels the effect of his diminishing crops and the high prices he must pay for the things he buys; and the banker questions the soundness of our affairs and whether our possessions are worth the sums at which they are valued. The factory workman is beginning to doubt the virtue of his tariff wages when exchanged for food and clothing rated at tariff prices; the farmer is beginning to ask what advantage he gets from the tariff protection enjoyed by the manufacturer; and the banker is beginning to suspect that it is the taint of the tariff laws which casts a doubt upon the value of securities. The motive for attempting this paper has been two-fold: first, my observation that but few of the whole number of farmers have clear ideas concerning the tariff question, and second, my belief in the importance of awakening my farmer friends to a perception of the true nature and effect of the tariff laws. In preparing this paper I have studied to present the subject so that my readers cannot fail to understand what is meant by the tariff question, and to show clearly that the tariff laws favor the manufacturer at the expense of the farmer and serve to carry over to the manufacturer and the trader an undue share of the wealth of the country. The profits of farming when all the farms of the country are taken into the reckoning are small. Upon the best of the lands the returns after the labor is allowed for reach five per cent., but upon the poorer of the farms the crops do not repay the labor expended. We have heard much of the prosperous farmers of Kansas and Nebraska but our attention has been seldom called to the less successful farmers of Virginia and the Carolinas. The prairie lands of Illinois are widely known. They are certainly very fertile. In price they range from one hundred to one hundred and fifty dollars an acre and there are occasional sales at two hundred dollars an acre. Many of the farms are rented, the owners having moved to town. The rents are generally paid in money and range from six to eight dollars an acre. The owners pay the taxes and have left after doing so five per cent, as the return or interest on the money in the land. But the rich soil covers only two- thirds of the state. Occupying the Southern one- third is a region of which the soil is entirely different from the prairie area. Its lack of productiveness is indicated by the prices of the lands. These prices range from fifty dollars down to five dollars an acre. Much of the area, probab¬ ly one-half of it, would command not more than thirty dollars an acre. It is divided into small farms upon which the owners for the most part live. When the worth of the labor of the owner and his family is deducted from the sales of the products there is very little left as the income of the land. So if this poorer third of the State of Illinois is reckoned along with the richer two- thirds, the average return upon the land after the labor has been allowed for will be considerably less than five per cent. Iowa is a fine agricultural 6 THE TARIFF AND THE FARMER. TABLE RELATING TO THE PURCHASE OF HOUSEHOLD GOODS. Cost at home Cost abroad Duty if bought Abroad Cost abroad Rate Amt. & duty Furniture. $1500. $1110. 35% $388. $1498. Carpets & Rugs.... 900. 560. 60% 339. 904. China ware. 450. 280. 60% 168. 448. Linen goods. 150. 100. 50% 50. 150. $3000. $2055. $945. $3000. I paid 3000 dollars for my goods, goods of home manufacture. The cost if they had been bought abroad would have been 2055 dollars, and the duties to be paid on bringing them home 945 dollars, the two sums equalling the cost when bought of our own factories. In these purchases I have paid out 3000 dollars of my wheat and cattle money, but by the same standard of value, or cost to produce, I have got but 2055 dollars worth of furniture, carpets, &c. in my house in return. In the purchase of my household goods the trading was against me three to two. In the buying of farm implements and machines I believe the odds are much worse. The high prices of these things are the result of tariff duties. The implements themselves may not be pro¬ tected by extreme rates of duty but the materials of which they are made are highly protected and the factory which manufactures them is on the same basis of high wages and high profits as the factory from which the materials come. I bought a harrow recently, paying nine dollars for it. It is a form of harrow that I like because it has a wooden frame and small teeth and plenty of them. The one lately purchased is the third one of the kind on the farm. It is simple, re¬ quiring very little machinery or skill to construct it. I have made an estimate of its cost, in mater¬ ials and labor, which is as follows: COST OF MATERIALS AND LABOR IN A NINE DOLLAR HARROW. 8 pieces of oak lumber, 16 feet, at $40. per thousand. $.64 40 steel teeth, weighing 41 pounds, at $1.80 per 100.74 8 pieces of bar and 1 piece of round iron, 43 pounds at $1.60 per 100.69 5 feet of chain, 6 pounds at $3.60 per 100.22 2 devices at 4 cents each..08 28 § in. bolts at 50 cents a hundred .14 40 rivets with washers, 2 pounds at 5 cents.10 Paint, very cheap red paint.14 Cost of materials.$2.75 Labor, 40 per cent, of materials. 1.10 Total cost to maker.$3.85 At the price of 9 dollars there was 5 dollars and 15 cents of profit in the harrow. And back of the profit of the maker of the harrow there was the profit of the lumber-men who cut, sawed and planed the wood, the profit of the iron manu¬ facturer who smelted the ore, rolled the iron into bars and cut and shaped the bars into harrow teeth, and the profits of the makers of bolts, rivets and chain. If we assume that the profits of these persons were upon an average 30 per cent, we shall have reduced the cost of the harrow in materials and labor to 3 dollars and 22 cents. And I do not doubt that if one had the knowledge to judge of the other machines used on the farm the showing would be much the same as in the case of the harrow. I have somewhere read that the cost, in materials and labor, of the wheat binder is but thirty-seven and a half dollars. I do not know whether this is true but am inclined toward the belief that it is. A binder is chiefly castings, rods and bars. The iron in the rods and bars would not cost above a dollar and sixty cents a hundred weight. The castings would cost less I think. Once the patterns have been made, and these are not very costly, the expense of con¬ verting a ton of metal into castings is not great. The metal itself is not worth over sixteen dollars a ton. A ton of wrought iron is made into nails for four and a half dollars. It may cost more to make a ton of metal into castings such as are used in a binder, but I doubt whether it does. The weight of the castings and the wrought iron in the binder does not exceed three quarters of a ton, I should say. These things suggest that the binder does not cost, in materials and labor, more than the thirty-seven and a half dollars. The farmer pays one hundred and twenty dollars for it. The farmer has been blind to the injustice done him in his exchanges with the manufacturer. He has been busy with his farm and its problems. THE TARIFF AND THE FARMER. 7 To plow when the fields are neither too wet nor too dry, to plant neither too early nor too late, to harvest when the grain is in the right condition, to improve the productivity of his soil, to adjust his live stock to his pastures and his winter’s feed, to master the diseases which attack his animals-—these and many other questions relating to the farm have occupied his thought. He has had no time to inform himself as to the cost of the materials and the labor which go into the imple¬ ments he uses, nor has he stopped to compare the profits of the factory owner with those of the farmer. Nor does he know of the many improve¬ ments in the art of manufacturing whereby the various parts of the implements he uses are turned out in quantities at very low cost. When he buys cattle or horses or land he is wise enough. He is a judge of these things and he buys worth the money. But as to the implements and machines on the farm, he needs them and buys without questioning. When looking at anew machine he sees that there are a great many wheels, castings, springs, levers and ratchets, and thinks that these things must have cost a great deal of money. And he pays the price and says nothing. The protection upon wool and manufactures of wool is one of the most important features of the tariff laws. It has a great deal to do with- the cost of clothing, a matter of much interest to every family in the land. I will speak first of raw wool the protection of which is taken to be of great benefit to the farmer because he owns sheep. The country’s yearly product of wool is in round numbers 300 million pounds. This is not enough to meet the requirement of the factories, and foreign grown wools are brought in to make up the deficiency. The importations averaged 190 million pounds a year for the five years ending with 1908. About 53 per cent, of this, being 100 million pounds, is of the same quality as the wool produced in the United States, and the average duty collected upon the 100 million pounds is 11 cents a pound. The remainder of the importa¬ tions is of inferior wools on which duties of 3, 4 and 7 cents a pound respectively are charged. The collecting of the n cents a pound on the 100 million pounds yields 11 million dollars of revenue to the Government. But the existence of the duty raises the price of the home produced wool 11 cents a pound, as it was intended to do. Eleven cents a pound upon 300 million pounds is 33 million dollars. This goes to the wool growers of the country. The two sums added make 44 mil¬ lion dollars as the fund or tax created by the tariff for revenue and protection. Upon the side of the people it means increased cost of wool clothing, 44 millions of dollars of tax upon what we wear and need to keep us warm. As there are 18 million families in the population of the country, the tax is equal to 2 dollars and 44 cents for each family. This sum is as great as the poll tax collected in many of the states. One reads in the newspapers now and then of poor men who go to jail because they cannot pay their poll taxes. But in the case of the wool tax the poor do not go to jail, they simply do without the clothing. And we must remember that but one-fourth of the 2 dollars and 44 cents is revenue. The three- fourths, to-wit, one dollar and 83 cents, is a tax laid on every household for the benefit of the wool growers of the country. I have said that the Government receives 11 million dollars of the 44 million dollars and the wool growers 33 million dollars as the result of the 11 cents a pound duty on wool of the same quality as that which is produced in this country; and who are the wool growers and where are the sheep? Forty years ago Vermont, New York, Pennsyl¬ vania and Ohio had a good many sheep but the number has now diminished greatly. Michigan, Wisconsin and Texas have some sheep but Illinois Indiana, Minnesota, Iowa, Missouri, Kansas and Nebraska have very few. South Dakota has some sheep but North Dakota only a handful. The Southern States have no sheep to speak of. The greater part of the sheep are west of the Dakotas, Nebraska, Kansas and Texas. Sixty-four per cent, of the whole 54 millions of sheep of the country are in the eleven States nearest the Pacific. Wyommg leads with 7 millions of sheep, 8 THE TARIFF AND THE FARMER. Montana has over 6 millions, Idaho is next with millions. New Mexico, Oregon and Utah follow. But these eleven States have only a few people and the title of much of the land is still in the Govern ment. The total population is less than 6 millions and 47 per cent, of the land is public property. Yet these States contain 34-^ millions of sheep. What is the explanation? It is simple enough. The sheep belong for the most part to companies formed by eastern people who pasture them on the public lands. These corporations pay no rent to speak of, if any at all. The Gov¬ ernment collects a little rent for pasturage on its forest reservations but none on its unsold lands in general. If we assume that 27 millions of these sheep (one-half the sheep of the United States) are so owned and are fed on the Government’s unsold lands we shall not be far from the truth. The worth of a sheep’s keep is figured by farmers variously, some putting it as low as a dollar a year, others as high as two dollars a year. If we figure the 27 millions of sheep at a dollar a head we have 27 million dollars as the worth of the pasture the owners get for nothing. Add to this the 11 cents a pound protection on the 150 million pounds of wool which grows on the sheep, to-wit: 16^ million dollars, and we have 43^ million dol¬ lars going yearly into the pockets of these sheep owners by the gift of the Government. Conversing with an acquaintance recently, he chanced to say that he had formerly been interested in cattle in the Far West. After ex¬ plaining that the cattle ranching had ended by reason of the Government having ordered all fences removed from the public lands, he said that the sheep people now controlled the public pasturages through having purchased the watering places without which the pastures cannot be used. I asked if my information was correct that the sheep on the public lands belong chiefly to cor¬ porations of Eastern people. He said it was, but that some persons interested in the sheep industry live in the Far West. One of these he named, saying tha t the man owned 80 thousand sheep and held also a seat in the United States Senate. And we have 43^ million dollars going yearly into the pockets of these sheep owners by the gift of the Government. Turning now to manufactures of wool, I will begin by setting down the list of woolen goods imported, the values abroad and the duties collected for the year ending June 30th, 1908. It is an average year. I wish the reader to see the list. IMPORTS OF WOOLEN GOODS. Year Ending June 30th, 1908. Average Per cent Values Abroad Duties Paid Duty Dress Goods. _$9,135,688 $9,232,854 101 Cloths. _ 4,599,274 4,416,603 96 Carpets and Rugs. .... 2,949,586 1,788,090 61 Clothing, ready made. _ 1,640,191 1,335,851 81 Beltings and Braids... .... 294,437 253,321 86 Yarns. 134,804 89 Flannels. _ 71,594 77,499 108 Plushes. _ 60,755 56,372 93 Felts. _ 51,876 49,239 95 Blankets. _ 29,005 21,723 75 Knit Fabrics. _ 8,908 7,503 84 Rags and Shoddy. _ 109,604 50,875 46 $19,101,576 $17,424,734 91 Cost Foreign made Woolens.. . $19,101,576 Duties paid on same. 17,424,734 Total Cost.$36,526,310 Seventeen million dollars of duties collected on nineteen million dollars worth of goods. A most excessive tax surely. But the purpose of the high rates ofi duty is not any urgent need the Govern¬ ment has for money, but to give the trade of the country in woolen goods to our own mills and at prices which equal the cost of like goods bought abroad with the duties added. The duties on the nineteen million dollars’ worth of goods brought over in 1908 has nearly doubled the cost of those goods, but the broader effect of the high rates of duty is to raise the price of all woolen goods made at home correspondingly. And the quantity of woolen goods made at home is more than nine times the quantity imported, as I shall proceed to show. I have stated that our annual home product of wool is 300 million pounds and that we import 190 million pounds, making a total of 490 million pounds used each year by our factories. Wool loses in weight on being washed a id scoured 60^ THE TARIFF AND THE FARMER. 9 per cent. The 490 million pounds when washed and scoured would therefore weigh 193! million pounds, which figures represent approximately the weight of the cloth, dress goods, carpets, blankets &c. made by our mills each year. Turn¬ ing now to the list of imports of woolen goods for the said year ending June 30th, 1908, I find that of the goods which came in, 5,299,176 dollars worth were rated by the pound, the weight being 4,937,1:47 pounds. The value is therefore equal to one dollar and seven and one-third cents a pound. If we take the one dollar and seven and a third cents a pound as the index of the value per pound of the whole, the weight of the wool in the 19 million dollars worth of imports is 17! million pounds. If this be added to the 193 £ million pounds manufactured at home we have a total of 2ii\ million pounds of wool cloth, carpets, blankets &c. used in the country in one year. The proportions between the imported and the home made goods stated in percentages are; imported goods, 8^ per cent., home manufactured goods, 91J per cent. And now for the prices charged the people for the 193^ million pounds of wool cloth, carpets &c. made at home each year. I have already stated that the cost abroad of the imports, which I estimate as 1) f million pounds, is 1 dollar and 7 J cents per pound. If we divide the 17! million pounds into the total duties collected on woolens for the year ending June 30th, 1908, we shall find that the duties were equal to 98 cents for each pound of the 17! million pounds. Adding the 98 cents to the 1 dollar and 7J cents, we have 2 dollars and 5 J cents as the total cost per pound of the woolen goods imported. Applying the 2 dollars and 5J cents per pound to the 193J mil¬ lion pounds, we have 397^ million dollars as the price paid by our people for the wool cloth, dress goods, carpets &c. made in our own factories each year. And of this 47 \ per cent., nearly one-half, is protection. The 33 million dollars of tax laid on the people for the benefit of the wool grower has become 189 6-10 million dollars of tax when the cloth comes from the hands of the wool manu¬ facturer. The yearly tax of one dollar and eighty- three cents laid on each family of the population for the benefit of the wool grower has become ten dollars and fifty cents at the hands of the wool manufacturer. Of* every twenty-five dollars spent for cloth, dress goods &c., eleven dollars and ninety-three cents is protection or added cost because of the tariff on wool and woolen goods. Woolen factories were first established in the country in 1812. With one hundred 'years of experience and protection they have not learned the art of making good cloths. Why should they when the country will take inferior cloths and pay high prices for them? I asked a tailor of much knowledge on the subject why it is that the American cloths are not so good as the English? His reply was “Our mills are in too much of a hurry, they do not get all the grease out of the wool, nor do they season the w T ool before making' it into cloth, the colors are not good.” Another tailor corroborated the first but said that in the matter of colors there are some brown cloths now made in the country which stand pretty well. It is time our factories were getting something right. I wear the English clothes, having early learned their excellence. Good tailors keep little else on their counters. The English cloths are soft, light in weight and warm. They have a cast or finish about them which very few if any of the native cloths have. When old and worn they still have character. Some of my suits go to the foreman on the farm when I am done with them. He wears them when he goes to the city in pre¬ ference to his newer clothes of American cloth. I doubt whether many of the owners of our cloth factories wear their own goods. Turning back to the list of imports of woolen goods I have given, it will be noticed that dress goods is the largest item on the list, is in fact, one- half of the whole volume of woolen imports. The fact shows that the women know that the nicest dress goods are made across the water. And in buying these goods they have gotten better value notwithstanding the duties than if they had bought native goods. But I have one regret in this matter and I wish to mark it with emphasis. It is that the imported dress goods do not reach 10 THE TARIFF AND THE FARMER. the country women but stop with the well-to-do and wealthy women in the cities. The country women must do with the less attractive and less valuable dress goods made in our home factories. And this in the face of the fact that much of the corn and wheat which the country woman’s husband raises goes to feed the people who work in the factories where the nice goods are made. The other day I said to my foreman, “William, what sort of blankets have the families which live on the farm got, do you know?” After a little study he said “There may be two or three blankets among them” (there are four families) “which the women got from their mothers on leaving home, old-fashioned, pure wool blankets, but mostly the folks have these cotton things you buy at the store for a dollar and a half.” William’s remark about the blankets which came from the mothers called to mind the day of the little woolen mill on a neighborhood stream to which the country people carried fleeces of wool and had them made into blankets and flannels. Tariff protection was not thought of, and there were no high dividends to the owner of the mill, but the people had blankets and flannels in plenty, the poor as well as the rich. And it has come to pass that the blankets my work people on the farm have are the - few which came as marriage gifts from the houses so well supplied by the little mill. The high prices have taken the blankets from the homes of the poor; only the rich can afford to buy them. The tariff and the high prices it causes the people to pay comes home to the woman on the farm in a most serious way. It is hard for her to get money. And what study she must bestow upon her purchases to bring them within her means. If it is furniture, the piece she most wants must be left out because it costs so much. If it is a winter cloak, five dollars more would buy one which fully satisfies her but the five dollars cannot be spared for the better cloak. And the children; how difficult it is to buy with the money she has the necessary things and have them at all nice. This woman and her interests have had no place in the consideration of the wise men who sit in Congress. These personages are busy with the manufacturer and his interests. They have regarded it their duty to make the factory wheels go round, and believed, or thought they believed, that if the wheels do go round there will somehow be blessings for everybody. They have not stopped to consider at whose cost manu¬ factures have prospered so, nor to ask whether favors to the owner of the mill does not mean injustice and wrong done to the women on the farm. Not only do the things the farmer gets from the factory come to him charged with the high profit of the manufacturer, but they come loaded also with the high rate of wages paid in the factory. The manufacturing community is upon a basis of high prices by association. High profits, high wages, high values of property and high cost of living go together. Recently when in one of the large manufacturing cities I had occasion to buy a few turnips in a reputable store. On looking at my change, I saw that I had been charged thirty cents for a half peck. As I went up the street carrying my package I began to think: thirty cents for a half peck, sixty cents for a peck, two dollars and forty cents for a bushel; we farmers would do well raising the turnips and delivering them in the car at the railroad at the forty cents, how does it come that turnips cost two dollars and forty cents a bushel in the city? Then I re¬ flect that this is a manufacturing city, that in it all business and service take character from the mill, its high profits and high wages. The prices of land, of building materials, of labor, of clerk hire, of professional service, of rent, are all on a high profit basis. The merchant, the contractor, the artisan and the investor think themselves entitled to as much profit as the factory owner. And why are they not? I begin to see why the price of turnips is high. I reflect further and note that in this city eight hours is a day’s labor, while with us on the farm the day’s work is ten hours long in winter and thirteen hours long in summer. I re¬ call too the fortunes made by the men who have had the city’s contracts, and this suggests waste in its public improvements. I note too that the city’s trolley system is capitalized at more than six times THE TARIFF AND THE FARMER. 11 the cost of the lines and equipment. Nor do I forget that the city’s chief industries which have given it fame have been turned over to the so- called trust corporations in exchange for issues of stocks and bonds so vast as to astonish the persons familiar with the properties. I think the price of turnips is accounted for. If the things I have recited make for the prosperity of the city and the public welfare, then I take it that the sale of turnips at the two dollars and forty cents a bushel does also. Turnips are principally water. The city’s manufacturing properties and projects have, I fear, taken on much of the same character. And last of all I reflect that it is the workmen in the factories who buy my forty cent turnips, pay¬ ing two dollars and forty cents for them, and that the price they pay for food, clothing and rent comes home to me in the things they w’ork upon in the factory, and which I buy of the manufacturer. These workmen must receive wages equal to the cost of their living, and such wages is part of the cost of every garment, implement or other thing which the farmer receives from the factory. A custom prevailed among farmers years ago of giving a bushel of wheat in exchange for a day’s work in the fields. The farm hand does not now carry away the bushel of wheat at the end of the day, but the dollar a day wages he receives is a close equivalent. 4 The sum paid the city or factory workman, taking the skilled and the un¬ skilled employments into view, is not far from two dollars a day. The labor required on the farm is by no means unskilled labor. The man who works there must be able to manage horses and must know how to operate farm machines. I think it is a just estimate to say that the day’s labor on the farm is as valuable to the country as the day’s labor in the factory. I think too that the man working on the farm at the dollar a day has as good a living and as good an opportunity to save as the man in the factory at the two dollars a day. He has, to say the least, the essentials of comfort, more encouragement to efficiency and thrift and less temptation to waste. There are a number of men living about me who twenty years ago were farm hands, but now own farms. And it should not cost any more to carry the food from the farm to the workman in the city or factory town than to carry thfc clothing and groceries from the city to the laborer on the farm. The bushel of wheat should be the measure of the day’s work in the factory and the city as it is the measure of the day’s work upon the farm. The farmer’s quarrel is not with the city workman and the living he gets. It is with the condition or state of things which makes the day’s labor in the city cost a double price, the condition which makes it necessary to yield up two bushels of wheat in order to have a day’s work done there. It has become a common practice to complain of the so-called middleman, the man who deals in food products after they leave the farm or furnishes them to the people in the towns and cities. The profit he makes adds greatly to the cost of the food when it reaches the consumer. I remember reading in an old city code a statute forbidding anyone to intercept a farmer on his way to the city market with his produce. Such an act was known as forestalling and the guilty person was to be severely punished. The thing intended was that no one should come between the farmer who produced the food and 4 The wages and allowances given in my own neighborhood to farm hands who have families and who engage by the year are as follows: Wages, $15. per month.$180. Allowances, House and garden, yearly value .... $30 Fuel, yearly value. 18. Flour, 3 barrels, worth. 18. Corn, 25 bushels " . 12. Meat, 300 pounds ” . 24. Milk of a cow, yearly value. 18. 120. $300. If the man and his wife are thrifty, they will raise a couple of hogs, keep chickens and have a good garden. They may by these means add from 50 dollars to 100 dollars to the yearly living given by the wages and allowances. The allowances count for more than the money wages which goes, most of it. to the country store for clothing, shoes and grocerios, things produced on tariff wages and sold at tariff profits. 12 THE TARIFF AND THE FARMER. the city merchant and workman who consumed it. In our day it is not possible for the farmer to carry his products to the consumer and the milddleman has become a necessity. But he has run riot. He flourishes chiefly in the manu¬ facturing towns and cities. The atmosphere of the protected industries is particularly favorable to him. There he can charge excessively for the things he sells. The manufacturer allots him a liberal share of his tariff pi ofits; the work¬ man is compelled to divide with him his tariff wages. He is part of a system. Ephraim is joined to the idols of protection. When the manufacturer learns to do with less profit the middleman also will learn to do so. The inflated and false character given to our affairs by the protective system has encouraged greatly the manufacture of inferior wares. If the manufacturer may lawfully take an excess price he may by the same license furnish an article which is not good although purporting to be so. There is lacking in our manufactures today the quality of goodness. No one intends to buy an article which is not good, but every one almost invariably does. The really good thing is rarely made or sold. The farmer above all other per¬ sons has been made to suffer through his pur¬ chases of inferior and deceptive things. It is a matter of frequent remark among farmers that galvanized roofing and fencing wire are no longer of good quality. The old wire fences are the best ones today. The zinc is off much of the wire of my fences put up six years ago. In one lot of fencing three of the nine horizontal wires are still good. They seem to have a proper coating of zinc. I suppose I should be grateful for small favors. I have not used the roofing. When the art of galvanizing iron surfaces first came in it was a good art; it must still be so if honestly practiced. I think it is a just criticism to say that of the implements and machines the farmer uses there are few if any which are the implements and machines they ought to be and are sold as being. There is a flimsiness about many of them which not only negatives their usefulness, but is offensive to the eye. From the wheelbarrow to the manure spreader, the idea seems to be to furnish an implement which is intended to shake to pieces in three weeks. I have a goodly number of machines on the farm and among them there is but one which has been wholly satisfactory. It is a mill for grinding shelled corn into meal. That this mill is a thor¬ oughly good machine I attribute to the fact that it was built for a miller and not for a farmer. I frequently repair the machines on the farm. Every job I do reveals some new fault, shoulders which do not meet, bolt holes which do not match, pinions which are set crooked or cogs which mesh at the corners only. In many of the implements the castings are heavy but of low grade metal, and the steel rods and bars softer and having less quality than the iron of former days. The farmer has no engineer to design his machines and to specify the kind of materials which shall go into them as does the railroad when it places an order for engines, cars or rails. Nor can he place an inspector at the factory to see that the materials used in his implements are good and the work upon them skilfully done, as does the navy when building its ships. The farmer is entirely at the mercy of the big factory. What it chooses to give him he must take. Good tools mean something to the farmer as well as to the mechanic, but the farmer rarely has the opportunity to buy tools which are of good quality. I often wonder if the mechanic in the city shop has good tools, and if so, where he gets them. I own a few good tools, but I bought them thirty years ago. I have made many purchases since I came to the farm, but with the exception of a brace for boring holes and a rat-tail file I have not added a first class tool to my collection. Many of the tools were next to worthless. One would think that a carpenter’s square would be a properly made instrument. I have bought three, one after the other, and not one of them is square. My latest purchases, made in the city, were a set of chisels, a box of S wrenches and a half dozen large files. A single using served to put a wire edge on four of the chisels, two of the wrenches are broken THE TARIFF AND THE FARMER. 13 and the files are no better than the ones I have been buying at the village store. This thing of poorly built machines and implements and of bad materials and tools furnished the farmer has become an abomination. I think the cure is the same as for the high prices, i. e. take oft the tariff duties. Once open the way for the goods of other countries to come in and our factories will give the farmer good materials, machines and tools and at just prices. Competi¬ tion is the great arbiter not only of prices but of quality in the things sold. There is nothing like it. And what I have said of the injustice done the farmer by the protection given the manufacturer is, it seems to me, doubly important in view of the state of agriculture throughout the country. The farmer has flourished in the past because of the cheapness of land and the virgin fertility of the soil. 5 As the population grew and as the farm lands of the East lost in productiveness, farmers moved Westward to new and more fertile lands, first to Ohio and Kentucky, then to Indiana, Illinois and Michigan, and later to Wisconsin, Iowa and Missouri, and last to Nebraska, Kansas and Indian Territory. The new country proved a veritable garden. There is no computing what the nation owes to this area of rich land in wealth, in national power, in advanced civilization. But the garden has been occupied, every nook and corner being brought under cultivation. And now much of it is beginning to lose its productiveness, and its people are restless. Many would move Westward if there were any more good land to move to. Much of the travel in the Far West is by farmers from the Middle West in search of new and fertile land. They have quickly taken ft Nature’s gifts are like fruits ripened and ready for use . Time has been the great factor in the preparation; the use or consumption is but the matter of a day. The minerals most useful in the arts, coal, iron, copper &c. have been millions of years in coming to their present state. Petro¬ leum oil and natural gas are but the remnants of the gases of a former geological age. The soil with its stores of plant food has been long in the making. Some hundreds, often some thousands, of years were involved. It too is a store house ready, and is quickly emptied. The filling again artificially may be possible, but not easy. I do not wonder that when land is exhausted its owners leave it and seek new fields. possession of Oklahoma. And in the past six or seven years large numbers have bought lands in the Western provinces of Canada, that being the only country where there is any longer productive land offering at low prices. Irrigation, it is true, is reclaiming.a few areas bordering the Rockies in our own country. But these are mere dots on the map. They are entirely inadequate to meet the demand for new lands, and can con¬ tribute but the merest fraction of the country’s increasing food requirment. And there is also the dry farming, the growing of crops on the plains of Montana and Colorado where there is but little rain and where crops cannot be grown in the ordinary way. A crop is taken every second year only, the intervening year being employed in deep plowing and mulching in order to store the water of the scant rain fall. I doubt whether the 25 to 35 bushels of wheat per acre harvested pays for the two years farming. And then too the lands will quickly lose in productiveness, more quickly I should think, than did the Minnesota wheat lands farmed under ordinary methods. We have come, it seems to me, to the foot of the hill of difficulty in our agriculture and must begin the ascent however hard it may be. The coun¬ try’s food supply must come from the lands now under cultivation and the lands which were formerly tilled but are now waste. The man on land which was originally rich and productive, but now worn and but half productive, has a difficult task to bring his land back to what it once was. And the man on land which never did produce well, if he is to redeem its barrenness, has a still harder problem. The only conditions under which these things can be done are that the prices the farmer receives for his products must go up or the prices of what he buys must come down. We hear much of the so-called new agriculture. Science we are told has come to the aid of the farmer. We have agricultural colleges, experi¬ ment stations, the laboratories at Washington devoted to the study of soils and plants. The magazines bring to interested readers golden ac¬ counts of new discoveries in the management of the 14 THE TARIFF AND THE FARMER. soil. Railroad presidents talk of the revolution in farming, and railroad directors authorize the purchase of lands to be used to illustrate the new ideas. The notion is certainly abroad that important discoveries and improvements have been made in obtaining returns from the tilling of the soil. But it is without much foundation in fact I am sorry to say. No royal road has been found, no way discovered of obtaining a paying crop from barren land, or of maintaining without much cost the productiveness of good land. When the Pilgrims landed at Plymouth Rock, three hundred years ago, they were told by the Indians that corn would grow in the barren sands if a fish was put in each hill. 6 But it was soon learned that the fish could with more profit be salted and sold across the sea. The question of render¬ ing fertile lands which are by nature void of plant food is the same today that it was 300 years ago. The farmer who is on such land cannot raise full crops unless he fertilizes heavily. If he is on the point of turning, his land out to commons and going to the city it is because he cannot afford to buy the plant food and sell his products at the prices current for them. And the man who has inherited a good farm, while he may have gradu¬ ated from an agricultural college, and may talk of nitrogen, phosphoric acid and potash, of bac¬ teria, nitrification and conservation of soil moisture, yet he is no more capable in the matter of pro¬ ducing good crops and maintaining the fertility of his land than his grandfather was. The latter knew that if he had manure enough he could enrich the farm, knew that if he succeeded in obtaining a good stand of clover, a full crop of corn or of wheat was pretty certain to follow. He knew also the value of lime. The manure question and the clover question are the essential questions of farming today, just as they were two generations ago. There is the same shortness of 6 Because the soil was so barren the people of New Eng¬ land early took to building ships and sailing them on the sea. The business flourished until our high tariff with tne consequent high cost of materials and labor broke it down. The building of ships to be used on the high seas goes naturally to the countries and places where materials and lat or are cheapest. manure, the same uncertainty in the growth of the clover. Science discloses the seriousness of the problems with which the farmer has to deal, affords him some important information, but leaves him still dependent upon his own resources and judgment. The man on land once good but now low in fertility is not usually in condition to grow a crop purely to enrich the soil, nor to feed cattle in order to secure the manure. His first care is a living for his family with enough giain and hay left from sale to carry his live stock through the winter. There is nothing over with which to improve the land. The seed for a fertilizing crop is expensive, the labor considerable and the growth uncertain. If cattle are to be fed for the manure they must first be purchased which requires money, and unless the farmer is wel prepared for feeding and for saving the manure the project will result in a loss. The building up of a depleted soil is by no means easy for the man who has capital; it is next to impossible for the man whose only resource is the yearly product of his failing land. The majority of farmers are bound hand and foot by their urgent needs, their poverty I might call it, and are doing very little, and can do but very little, toward maintaining or restoring the fertility of the soil. And since the farmer has a new burden to carry in the matter of his failing soil, the load put upon him by the unjust prices he is compelled to pay the manufacturer should be taken off. He has borne the old burden through ignorance and was in fact able to do so because of the cheapness of land and the virgin fertility of the soil. But now that the burden of the costly care of the soil is upon him he cannot carry the old burden. He can no longer give three and take two in return. He and the owner of the factory must begin to deal on even terms. And the question whether farmers shall be supplied with implements and machinery at just prices or at very exorbitant prices is one in which the whole country is interested. It affects the supply of wheat, corn and cattle and the price of bread. The implements and machines are THE TARIFF AND THE FARMER. 15 necessary to the farmer if he is to raise grain in any quantity. With many a farmer, to charge him for one cultivator a price which should have paid for two, is to curtail his crop of corn by one half. The costliness of an outfit for farming sends a great many young men from the farm to the mines or the city to seek employment. And with the young man who does make a start on the farm, but with small capital, it is a matter of years before he is properly equipped with implements. In the meantime he cannot produce muclngrain. A re¬ duction of the price of implements, clothing and whatever else the farmer uses to a just basis will increase the supply of wheat, corn and cattle, and keep the price of bread down. In order to mark more effectually the result of the farmer’s uneven trading and to give an idea of his losses in figures I have made an estimate of his sales in the past forty years and have applied to these sales the same rule as in the purchase of my household goods, viz.: that for every three dollars of value the farmer- gives he receives two dollars of value in return. The Secretary of Agriculture has undertaken to give the value of the products of the farms each year, beginning with 1900. These estimates are the only prepared figures relating to the products of the farms of which I have any knowledge. The values for each year appear under the head¬ ing “Wealth Production on Farms” in the Statistical Abstract of the United States for 1909. The total value for the ten years, 1900 to 1909, is 65,178,000,000 dollars. As only the total figures for each year are given out I have made inquiry at the Department of Agriculture whether the value of the grain, hay, etc., fed on the farms to live stock is included in the estimates. I was told that it is. This being the case the estimates do not represent truly the product or income of the farms. To count the value of the animals fattened and also the value of the corn, hay, etc., used to fatten them is to count the same value twice. Turning to the Census reports for 1900 I find that the value given to the products of the farms does not include the value of the grain, etc., fed on the farms to live stock. The figures are given, however, for the value fed and it is one- third of the crop value and equal to one-fifth of the total crop and animal value. I think this is the correct way of stating the matter. I shall therefore deduct one-fifth from the 65,187,000,000 dol¬ lars, reducing it 10 52,150,000,000 dollars, believ¬ ing this sum to represent more correctly the product or income of the farms for the years 1900 to 1909. There being no published figures for the value of farm products back of 1900 1 must derive an estimate for the thirty years, 1870 to 1899, from the value of the farm products exported during those years, the record of which has been kept. By taking the figures for every fifth year which are before me and supplying pro¬ portionate figures for the intervening years, I learn that the value of the total exports of farm products for the thirty years^ approximates 17,128,791,000 dollars. Adding to this sum the value of the exports for the ten years, 1900 to 1909, to wit, 9,555,764,000 dollars, we have 26,684,555,000 dollars as the value of the exports of farm products for the forty years. The exports for the ten years 1900 to 1909 were 18.3 per cent, of the total farm products of those years. The proportion of our farm products sent abroad is diminishing as the years goby. Our population is increasing and a larger share of our food is consumed at home. In 1900 we sent abroad 21.2 per cent, of our farm products, in 1909 we sent, but 16.2 per cent. But the change was not so rapid prior to 1900. I think that 20 per cent, or one-fifth would represent fairly the proportion of the exports during the forty years, 1870 to 1909. That is to say, that of our farm products in the past forty years we have shipped one-fifth abroad and have consumed four-fifths at home. Upon this basis the home consumption had a value of 106,738,220,000 dollars. The next question is how much of the products of the farm consumed in our own country did the farmers themselves consume and how much did they sell. One would expect that the Census reports would show the proportion of the people who are on farms, but they do not. The part of the popula¬ tion designated as rural in the reports includes 16 THE TARIFF AND THE FARMER. the towns up to 4000 inhabitants. An idea of the proportion is gotten from the tables relating to occupations. In 1840 77 per cent, of the persons to whom occupations were assigned were engaged in agriculture. By 1870 the pro¬ portion had fallen to 48 per cent., by 1900 to 36 per cent, and by the same rate of decrease will be 30 per cent, in 1910. These figures indicate the proportion of the population on the farms. I think 40 per cent, is a fair estimate of the pro¬ portion of the people who have been upon the farms, on an average, during the past 40 years. I doubt whether they used or consumed 40 per cent, of the home consumption of food. Of what they sold part went to feed horses in the cities and cows in the suburban dairies. But assuming that they used 40 per cent, there was left 60 per cent, to be sold. Sixty per cent, of the 106,738,- 220,000 dollars is 64,042,932,000 dollars. Adding to this the value of the exports, i. e. 26,684,555,000 dollars, we have the sum of 90,727,487,000 dollars as the value of the products sold from the farms during the past 40 years. In exchang¬ ing the products represented by this great sum, the loss to the farmers was one third, or 30 billion dollars. The amount is more than double all the taxes the Government has collected in the forty years, and it is one and a half times the value given to the farms, the implements and the live stock thereon by the Census of 1900. It is of interest to note the changing propor¬ tions between the value of the farms and the value of the other wealth of the country as shown by the several Census. Farms, Live Stock, Implements City Real Estate, Factories and Machinery Railroads &c. 1850 3,967,343,580 56% 3,168,436,648 44% 1S60 7,980,493,063 49% 8,179,123,005 51% 1870 8,944,857,746 37% 15,109,957,059 63% 1880 12,180,501,538 28% 31,461,498,462 72% 1890 16,082,267,689 25% 48,954,823,508 75% 1900 20,439,901,164 23% 68,077,405,611 77% The farms, live stock, implements and machinery thereon were about equal in value to the other wealth of the country in i860. In the forty years following the value of the farms and the things thereon grew from 8 billions to 20 billions of dollars, being a gain of 150 per cent. During the same period the other wealth grew from 8 billions to 68 billions of dollars, a gain of 750 per cent. The advantage which the factory has over the farm is well shown by the following figures. 7 They relate to the Census year 1900. Value of farms, live stock, &c. $ 20,440,000,000 Number of persons engaged, owners, laborers. &c. 10,360 000 Value of products, prices of 1900 to 1909. 4,735,780,000 Capital in Manufactures. 8,97S,825,000 Number of persons engaged, owners, workmen, &c,. 4,958,000 Value of products, less cost of materials.. 9,465,658,000 The capital in manufactures bears nearly the same relation to the persons engaged as the capital in the farms bears to the persons engaged on them. Stated in round numbers, in the case of the farms the capital is 2000 dollars to each person, while in the case of manufactures the capital is 1800 dollars to each person. But the results, the values given to the products are very different. The 2000 dollars of capital and the one person on the farms produce 462 dollars, the 1800 dollars of capital and the one person in the factories produce 1909 dollars. In the preceding paragraph it appears that capital and labor in manufactures are rated four and a half times a,s high as capital and labor in agriculture. There is no just reason why they should be so rated. Capital and labor in a factory can be nothing different from capital and labor on a farm. Like compensation is due in the two places. In order to compare the factories and the farms in point of wealth production it is necessary to bring both to a common standard or basis of compensation. We cannot bring the products of the farm up to the basis of the pro¬ ducts of the factory, but we can bring the pro¬ ducts of the factory down to the basis of the pro¬ ducts of the farm. To do so is to perform a simple equation. If the products of 20 billion dollars of capital and io| millions of persons on the farms are worth 4-f billion dollars then the 7. Compiled from the tables in the Statistical Abstract of the United States for 1909. Deductions made for cost of materials as per table 95 and the note following in said abstract. 17 THE TARIFF AND THE FARMER. Products of 9 billion dollars of capital and 5 millions of persons in the factories are worth 2 billion dollars. The wealth producing power of the factories is to the wealth producing power of the farms as two is to five. Agriculture ranks first in the production of the country’s wealth. Manufactures when justly compared, as w T e have seen, fall far below agri¬ culture in wealth productive power. Transporta¬ tion, by which is meant the railroads, canals, ships, etc., is probably entitled to a place along side of manufactures as a source of wealth. Next after these would come the mines of coal, iron, copper, lead, gold, etc., then merchandising, then professional service and lastly inventions and discoveries. It is not possible to assign to ach its proportional share of the wealth pro¬ duction in figures, but it is a fair question whether the farms are not entitled to be credited with one half of the whole. The areas of fertile land yearly sending forth their great quantities of corn, wheat and cotton are the chief spring of our prosperity. The greater number of our railroads are built to carry the farmer’s crops to market and to take to him the things he needs. The volume of manufactures each year depends largely upon the buying power of the farmer and the railroad. The merchant expects a good season when the farmers are prosperous, and the price of stocks is sensitive to crop prospects. The past fifteen years has witnessed great in¬ creases in the capital stock and bonds of the manu¬ facturing corporations of the country. This has in truth been largely the issuing of stock or securi¬ ties upon the business which these corporations expect to do with the farmer at high prices. It has been not only the mortgaging of the future of the industrial properties, but the mortgaging of the future of the farmer’s lands as well. For if the implement factory charges me, and must continue to charge me, a high price for my machines in order to pay interest on its excessive issue of bonds and stock, is not that a mortgage on my farm? Is it not as much a charge as my going on a neighbor’s bond? I think it is worse, for my neighbor will most likely pay the bond, but I must pay the debt created by the high prices of my implements. I must have the machines, and if the high prices I pay added to the failing productiveness of my land or to losses caused by drouth or disease among my animals, drives me to the wall and I lose my farm, has not the im¬ plement factory foreclosed its mortgage? 8 I can regard the excessive capitalization of the factory in no other light than as an added charge on all who are to use its products. The farm is involved in the false marking up of the value of the mill. The marking up means that the farmer must pay not the just cost of the things he buys of the fac¬ tory but much added cost for interest on bonds and dividends on stock which should never have been issued. It has been said that tariff protection is father to the trust. I think this statement is true in the case of many of the so-called trusts. There may be a trust or monopoly which has no connection with tariff protection but the trusts of which there is most complaint are the combinations made by manufacturers to protect themselves against over¬ production and the cutting of prices. Factories have greatly multiplied and the competition among them has threatened to take aw T av the advantage given by the tariff laws. Nurtured in the warmth of protection against the outside world it is to be expected that the manufacturer should try to escape the cold of competition at home. He reasons that if the tariff laws protect him against the foreign competitor he is justified in protecting himself against the home competitor. It can, however, be said for the manufacturing trusts that they have not exacted higher prices than the tariff laws authorize and that if high profits to manufacturers and high wages to his workmen are signal benefits to the country it can make little difference whether these things are secured by the instrumentality of the tariff laws or of the organized trusts. And it is proper to ask whether the tariff laws have not brought 8. The farmer has no control over the rains and has but little control over the diseases which attack his live stock, but he has some voice in the legislative bodies which frame the laws governing corporations, their stock issues and profits. 18 THE TARIFF AND THE FARMER. about the very state of things against which we protest in the trusts. Are high prices and inflated values benefits when created by the tariff laws but evils when upheld by the trusts? I think there is no distinction. Monopoly is equally obnoxious whether it exists by means of statute law or by combination of rivals in secret cham¬ bers. 9 I have been much impressed by a remark made by John Stuart Mill, that the distribution of wealth is a matter of human institution solely. When thinking of the condition of society, its wealth so concentrated, the few rich with so much and the great mass of the people with so little by comparison, we are apt to regard the circumstance as one of divine ordering. We overlook the fact that much of the wealth concentration is the result of ideas or policies expressed in our laws. That is what Mr. Mill meant when he said that the distribution of wealth is a matter of human institution solely. If we were to search out the origin of the great fortunes or aggregations of wealth in the country we would find that the majority of them trace either to nature’s gifts or to privileges given by our laws. The finding of deposits of valuable ore and fields of petroleum oil and the occuping of fertile lands are the more important instances of opportunities afforded by nature’s bounty. The granting of patents upon inventions and the conferring of the right to take increased prices upon manufactured things are 9. The combination or monopoly idea permeates busi¬ ness much more than the farmers of the country realize. A story told me by a city friend is in point. Said he, ‘ 1 have a neighbor, a young man who having a few thousand dollars several years ago started a little foundry for the manufacture of a much used casting. He did very well and stated to me recently that he was making thirty per cent, upon his capital. A few weeks after this I met my neighbor in New York. Surprised to see him 1 asked what brought him there. He said, Oh, there is a meet¬ ing of the men who make the same thing that. Y do; there are eighteen of us and we are going to get together; we can make more money that way.” Although the common law is very pronounced against combinations to restrain trade and to raise prices and there are many laws on our statute books upon the subject of fnonopolies, compara¬ tively little has been done in preventing the evils. There would seem to have been lacking a proper enforcement of the law's. There is a cry for their modification. I think there is more need of seeing to it that they are properly observed. the chief instances of opportunities created by the laws. The principle of granting patents upon inventions is a just and wise one. Inventions greatly advance the arts, they increase the com¬ forts of the people, they reduce the cost of things and they augment materially the store of wealth. The field of discovery and improvement in the arts is a very broad one: of things which are both new and good we can never have too many. Aside from securing to the inventor the fruits of his genius and toil the patent laws have served a most excellent purpose in the past and must continue to do so in the future. I wish as much could be said of the protection of the tariff laws, but it cannot. Protection in its inception had relation to special circumstances which have long since ceased and was even then of doubtful propriety. It could not have lived beyond the day of those special circumstances had it not been strenuously upheld by those who derived from it a direct profit. Capital is now and has long been abundant: the infants which the tariff laws were framed to nourish are full grown, in fact, have become giants. The things made in the factory are no more worthy of favor or privileged price than the things grown on the farm or the things produced from the mine. Protection as it now exists is in no sense a creator of wealth. As between the farmer and the manufacturer its office is that of transferring part of the wealth of the one over to the other without consideration. The effect of the high profits to the owner of the factory as against the low profits to the owner of the farm is that of dividing the wealth created by the farm between its owner and the owner of the factory. There is a great difference between transferring wealth and creating it. If I and my neighbor agree together to exchange our farm products for a number of years upon the basis of 30 per cent, profit to me upon my products and 5 per cent, to him upon his products, no wealth is created by the fact that I get so much profit out of the exchange. But a most important result of such a method of trading is that I win off my neighbor a part of his wealth each year. If he has THE TARIFF AND THE FARMER . 19 no other resource or means of payment, he will, in the course of a few years, turn over his farm to me. I will then own two farms and he will have none. But not a penny of wealth has been created or brought into existence by what has taken place. I may instead of taking my neighbor’s farm demand the money and may use it in build¬ ing a house in the city but the result will be the same. The city property will represent the farm which my neighbor has lost. The high profit to me as against the low profit to him results simply in transferring his property to me. And such I conceive to be the working of the protective system. It does not add one iota to the fund of the country’s wealth, but by a slow and certain pro¬ cess it transfers that wealth to the possession of those whom it licenses to take the high profits. Mr. Charles B. Spahr, a student of economics, some years ago made some studies relating to the distribution of the wealth of the country. His figures were deduced from the Census reports of 1890 and the tax lists of certain of the large cities. He treated the population by families or house¬ holds, of which there were then twelve and a half millions. The wealth of the country was then sixty-five billion dollars. Of this Mr. Spahr estimated that thirty-three billion dollars was owned by one hundred and twenty-five thousand families; that is to say that more than one half of the wealth of the country was vested in one family out of every one hundred of the population. He did not have a great deal of data upon which to base his conclusions but they are, to say the least, suggestive. That a very large share of the wealth is in the hands of a comparatively few persons and that the institution which we call the protective system has been the largest factor in this concentration I think no one will gainsay nor deny. If it had been the design of.the Govern¬ ment to carry the wealth arising from the most abundant resources and the labor of the whole people over to a small fraction of the population, no better scheme for effecting it could have been devised than the protective system. No truer exemplification of Mr. Mill’s dictum can be found in history than the working of our tar iff laws. Wealth or capital when massed together has great absorbing and ruling power. Nothing gains wealth faster or more surely than wealth does. It is hard for those who have no property to get any, but comparatively easy for those who have large estates to add to them. The interest bearing power of money is very great but one must first have money before he can receive any interest. Wealth or capital is in a sense like one of nature’s forces; its power is within itself. It is a thing apart from its ownership and it is very aggressive. It holds possession of the best channels of investment and its volume protects it from damaging losses. It has ready money to use when trade is active and it can gather in the bargains when trade is depressed. When confronted by the anti-trust laws it can change the form of its organization and go on doing busi¬ ness as before. In time of financial crisis or panic it expects the Government to come to its relief. It furnishes the money to carry elec¬ tions and keeps a heavy hand upon those who make and those who administer the laws. Capi¬ tal dictates the banking laws and upholds the tariff laws but it resists the tax laws when directed towards its own treasuries. The persons who appear before the committees of Congress are not the learned economists f rom the colleges who study the science of government and the welfare of the whole people but the representatives of the capital interests who have come to sustain some advantage already enjoyed or to ask for some new favor. When the two things, the extent to which the wealth of the country has become concentrated and the power which wealth has within itself, are considered I think there is just cause of alarm. The equality of the people which has distinguished our civilization cannot long con¬ tinue to exist. The opportunity which has been open to every one in the past of acquiring a com¬ petence of wealth will greatly diminish. An aristocracy of wealth with the great part of the people serving is in prospect. The country is no longer new. Its lands are occupied, its cities and railroads are built. We must of necessity 20 THE TARIFF AND THE FARMER. move more slowly hereafter. In the changed state of things the advantage will be more and more with wealth and less and less with the individual. The inflated and false condition engendered by the protective principle prevents the sale of our manufactures in other countries. Our prices are too high. Several years ago I was in Panama and visited a ranch on the south coast belonging to a gentleman who came there from California. He had just received some machinery from Paris, France. I said to him, “I wonder that you did not order this stuff from San Francisco or New York, since you are from the States.” But his reply was, “Oh no, I would have had to pay two prices, I never order anything from the States that I can get elsewhere.” Our resources in coal and iron, the two valuable things in manufactures, are very great and we should long since have taken first rank in supplying the world with manu¬ factured things. But we early put up the wall of protection and have kept building it higher and higher and in consequence have made little pro¬ gress in marketing our wares beyond our own doors. As long as the manufacturer has had a good volume of trade at home and at most profit¬ able prices he has not sought trade-in other countries. It has been easier to attend at Wash¬ ington and. see to it that the lash of the tariff laws is kept in motion and high prices at home as¬ sured. I think however that the manufacturer is coming to recognize that he must look abroad for much of his trade. He will want to do more business than the home markets afford him. Moreover, there is need of more employment for the people who live in the cities and towns than now exists. I think the abandonment of the protective system will do much to stay the passing of the population from the farms to the cities. But I have little faith in the return to the farms of the masses now in the cities and towns. Nor will their descendants likely come to the farms. I doubt whether in succeeding census more than one-third of the population will be found upon the farms. A large number of our people in the towns and cities will be dependent upon the factories for employment and the goods made will exceed the quantity which the country can consume or use. A market for a part must be found in other countries. Our mills have already multiplied beyond the home requirement and some goods are being disposed of in foreign markets. 10 Complaint is made among our own people because these goods are sold at lower prices than are charged at home. The manu¬ facturer will plead that he makes the sales in order to furnish work for his employees at times when the mills would otherwise be idle. The fact that our goods are sold abroad at less money than the people at home pay is a most telling comment upon our protective system. Tariff protection is thus made to serve the interest of the people of other countries at the expense of our own people. The high prices we pay at home make it possible for the manufacturer to sell at the low prices in other countries. The matter of the two prices is discreditable to the manufacturer and discloses the anomalous condition into which our manufacturers have come. Under it there can be little progress in building up a foreign trade. The sale of our goods abroad cannot assume any very great proportions until our cost of production is reduced. We must have lower wages, lower cost of transportation, lower profits and lower capitalizations. The change will begin with the cost of taking the coal and the ore from the mines and the wood from the forests and will extend to every process through 10. A couple of years ago I was making a journey in the South. The train made a stop at an Alabama town where there was a large cotton factory. One of the persons who got on the car at this station sat down beside me. I said to him that I was curious to know what was done with the goods made at the many cotton mills now in the South. He replied that he could speak for the mill 1 had just seen, that he was its manager: and then told me that they had finished putting a shipment of goods on the cars that afternoon which was bound for China and that the ship¬ ment made almost a train load of itself. I afterwards learned that the company owning the mill in question had other mills in New England. These mills iri the South employ people from the mountains and the poor land area and pay very low wages. The mill I have mentioned ran upon coal mined from the hill near by. With cheap labor and cheap fuel it could certainty make cotton goods at low cost. And the goods were going to China, a country of low prices. The goods made in the New England factories doubtless go to our own people at the usual tariff prices. THE TARIFF AND THE FARMER. 21 which materials go until they become finished products. 11 The change will also affect other things. The workman can no longer be charged a double price for the food he eats, the clothing he wears or the tenement he rents. 12 Service in all lines will be rated lower and profits will be smaller. We must make our things at a cost which will allow them to be sold in competition with like things made in other countries. And so the necessity of broadening the market for our manufactures and providing employment for the hosts of our people in the towns and cities points to the wisdom of abandoning the pro¬ tective system. The reform in our tariff laws which justice to our agricultural interests requires will remove the bar to a substantial and lasting trade in our manufactured things in the markets of the world. Since tariff protection is directed towards manufactures the prices of which it greatly raises and not towards farm products the prices of which are left to their natural course, such protection has created a divided or double stand¬ ard of values. The factory furnishes a standard of value which is different from the standard of the farm. The productions of the farm arise from just wages and small profits: the production of the factory involve high wages and large profits. The values given to farm products are incontes- tible, they are good values. The values given to the products of the factory are open to question, they are by comparison not good values. Once before we had two standards. It was during the Civil War and the years immediately following, and related not to the values attached to com¬ 11. The extent to which wages anrl protit enter into the price of manufactures is well illustrated by the case of iron and steel products. The ore from which the iron and steel are derived is worth in royalty when being taken from the mine about one dollar per ton of iron or steel. When the iron or steel reaches the farmer in the form of a corn planter or a wheat drill it sells for more than one hundred dollars a ton. In the coarser forms of steel such as rails and beams, the prices are from 28 dollars to 33 dollars per ton. From this it appears how necessary it is that reductions be made all along the line, if there is to be any material change in the prices of the finished products. 12. The question with regard to the wage earner is not what money he or she gets for the days work, but how much of the necessaries and comforts of life. modifies but to the credit given to the money in circulation. We had not then a good money system. There was some gold, but the money was chiefly the notes of state banks and the greenbacks which the Government had issued as a war measure. Neither the bank notes nor the greenbacks were esteemed of equal value with the gold, so there were the two standards. The business of the country followed the less valuable standard, the paper money. Prices rose greatly and possessions of every kind were rated much above the values given them before and after the period mentioned. The time of reckoning began with the panic of 1873. Seven years of stagna¬ tion in business, of falling prices, of financial failures and of suffering among the people served to purge affairs of the inflation and to again establish the single standard. The greenback movement, a factor in politics from 1876 until 1884, threatened to extend the existence of the double money standard and to revive the inflation. Fortunately nothing came of it. The contest over the free coinage of silver, a second inflation movement, was more formidable. It was, however, of short duration being decisively settled in the election of 1896 against the coinage. Had silver been given the place demanded for it we would again have had a double money standard. Trade would have followed the less valuable standard, the silver, prices would have gone skyward and possessions would have been rated artificially and falsely. The inflation grow¬ ing out of the double money standard in the war period affected all possessions and employments alike. The inflation arising from the tariff laws is not thus universal but it is more deeply seated and insidious. Ours is a house divided against itself. The factory and its people are against the farm and its people. As in the War period trade has adopted the less valuable, the question¬ able standard. High wages, high profits and high values pervade merchandising and construction as well as manufacturing. The high prices rule everywhere except in the sale by the farmer of his products. The manufacturer, the merchant and the contractor give silver, the farmer gives gold. 22 THE TARIFF AND THE FARMER. I think that we will return to the single stand¬ ard, the standard of the farm, with its good value. It must of necessity come and for two reasons: first, the people are losing faith in the false standard. The principle which must govern in the end is that of the best value. Every man loves full measure. Even the savage perceives the quality of his bargains and no degree of civili¬ zation can reconcile a man to the paying of a double price. The just exchange appeals to the mind as strongly as the possession of property. Unfair exchanges break up trade; enforced exchanges are usually robbery* Second, the manufacturing and the business interests of the country have outgrown the farming interest although largely dependent upon it. The pro¬ ducts of the factory are easily increased, the products of the farm are diminishing relatively to the consumption. Trade is slack, the factories are partially idle, many workmen are on half time! The farmer cannot increase his purchases at the old prices and thus make more work for the factory. Nor can the products of the fac¬ tory be sold abroad because of the high prices. These things certainly point to the going out of the standard of the factory and its high prices, and the adherence to the one standard of good value, the standard of the farm. It was the acquisition of fertile land at nominal prices which brought the people over the sea in the early days. Land was to be had at a very little cost beyond the labor of clearing it. The settlers sent grain and tobacco to the old countries and it was natural that they should take iron, cloth and other manufactures which their wants required or their tastes suggested in return. Aside from cloth which could be made in the home very little attention was given to manufactures. The ex¬ penses of the Government made it necessary for Congress to enact rates of duty which appear low to us but appeared high to the men of those days. The justification was that the high rates would encourage the building of factories in our own country, that we ought to make our own things, not buy them, and that having factories of all kinds of our own we would be more independent in case of war with any other nation. There was little capital in the country except in land. And so the high tax on imports with its encourage¬ ment or protection to home factories early be¬ came a national policy. But its advocates thought of the high rates as a temporary expedient. When capital should become more abundant and factor¬ ies had become established it was expected that Congress would withdraw the favors to manu¬ facturers. The Civil War with its great need for funds postponed the withdrawal and served to strengthen the hold of the protected interests upon the advantages they enjoyed. This hold although several times attacked has never been broken. That it has not been is owing, it seems to me, to the apathy of the people and their lack of knowledge of the harmful effects of protection as it has existed since its proper purpose was served. From the formation of the Union until the Civil War the nation’s revenues came almost wholly from the duties collected upon things imported from other countries. Not only the restrictions of the Constitution, but the sentiment of the people of the States prevented the taxing of the lands and the products of the country for the support of the central government. Congress several times passed bills authorizing such taxa¬ tion but these were with slight exceptions soon repealed. Not until the war made it necessary to greatly increase the revenues was there any earnest resort to excise or internal taxes. Once introduced these internal taxes have grown until they now almost equal the taxes raised from im¬ ports. The average of the internal taxes for the ten years ending with 1908 was 261 million dollars a year. The average of the taxes or duties on imports for the same ten years was 266 million dollars a year. The chief subjects of the internal taxes are liquors and tobacco. The loss in revenue caused by the removal of the protective duties can be made up by extending the internal taxes to other subjects than liquors and tobacco, and by placing a tax upon incomes. This last is a just method of raising a revenue because it falls most heavily upon those who are best able to pay. An amendment is now before the THE TARIFF AND THE FARMER. 23 legislatures of the several states which is intended to remove the limitation of the Constitution relating to direct taxes from taxes on incomes. It is to be hoped that it will be ratified by the necessary three-fourths of the states. I think that as a nation we have come to take too little account of our agriculture. As things are the farm and its people are expected to shift for themselves. They tag on behind as it were. The world of manufactures and the world of business occupy first place. In the mind of the average man they are the principal things. Even the men who lead in finance and those who are charged with the duty of governing the country take little thought for the farm. It is a habit to regard the spring of prosperity as lying in the factory and in the avenues of commerce. The mill or the counting house, not the farm, makes the fortune. In times of depression the changes are rung as to the causes of the idleness of the factory, the scarcity of money and the dullness of trade. The earnings made by the railroads are in financial circles of much greater moment than the incomes of the several millions of farmers. My city friends disclose their esti¬ mate of the farm by the comforting remark, ‘ l There is nothing in farming, is there?” The protective system is defended upon the theory of direct benefits to the manufacturer with inci¬ dental benefits to the farmer. 13 The proposed reciprocity agreement with Canada is the old story of making free with the farmer’s things when advantages to other classes are to be secured 13. I quote from a published address by James M Swank, Secretary of the American Iron and Steel Associa¬ tion. “Admitting for the sake of argument that the allegation is true that special legislative privileges have been accorded to the manufacturer, the ship-builder and the banker, it does not follow that the benefits of these privileges have not been shared by the farmer. If the protective tariff legislation has built up domestic manu¬ factures have not the mills and furnaces and factories and workshops created by the legislation greatly increased the demand for agricultural products? Have not the farmers grown with the wonderful development of our manufactur¬ ing industries? Every intelligent farmer knows that the protective tariff legislation has had just this effect.” This is the stock argument for protection in its relation to the farmer. Rightly interpreted it means a feast for the manu¬ facturer with crumbs from the table for the farmer. thereby. 14 It is high time for the nation to awake to the perception that farming ranks first among the industries and that the people engaged in it are entitled to equal consideration with the other classes. If there is nothing in farming, as my city friends express it, then the farmer must leave the farm or he must go down in the scale of manhood through discouragement, loss of energy and the narrow conditions. The nation can afford neither of these things. She does not want her farms abandoned nor her farmer class to become weak. She does not want the supply of food to shorten nor the capital interests to take over the farms. The nation’s best interest lies in the success of the farm and the encourage¬ ment of its owner. Our agriculture has been the main factor in our progress in the past, it must continue to be so in the future. There is no reason why the farm should be discriminated against or its owner made to carry an unjust burden. 14. By the reciprocity agreement the tariff duties on manufactures are lowered and the duties on farm products practically abolished as between the two countries. The result of the agreement will be the larger sale in Canada of goods manufactured in the United States and the entry into the United States of quantities of farm products from Canada. Canada like the United States is a protective tariff country. She is principally agricultural and does not do much in manufactures. When she looks toward the United States aud observes that two-thirds of our people are in the cities and towns and that our consumption of food is increasing relatively faster than its production our markets for food must appear attractive to her. With regard to our own farmers the duties on farm products written in our tariff laws have in the past been largely a dead letter in increasing the prices received by them. Rut the moment the country reaches the point of consum¬ ing more food than she produces the duties on the part brought in will raise the price of that produced at home and the farmer will be benefited by the tariff just as the manufacturer now is. If however the reciprocity agree¬ ment becomes operative the prospective benefit to our farmers will be taken away. Farm stuff will flow in from Canada in abundance duty free and our farmers will remain in bondage. They will continue to sell at free trade prices while buying at tariff prices. When L the reciprocity bill was before Congress the Democrats looked upon it as an important step in tariff reform and thought to compensate our farmers by passing the Farmers’ Free List bill. But Mr. Taft promptly vetoed the farmers’ bill. If the protective system is to be thrown overboard this agreement with Canada (it has not yet been approved by Canada) cannot do our farmers much hurt. But the system is not likely to be cast off immediate¬ ly; we will have it for awhile yet. 24 THE TARIFF AND THE FARMER. APPENDIX List Of Imports Subject To Duties. Year Ending June 30, 1909. Duties Values Amount Average Rate Sugar and Molasses. . $93,379,021 $56,362,789 60.36 Wool, Raw. . 34,758,788 17,082,990 49.12 “ Manufactures. .. 18,048,453 16,278,828 90.20 Cotton Manufactures. . 61,902,662 33,060,402 51.41 Fibers. . 50.385,870 18,438,161 36.59 Chemicals and Drugs. . 31,817,870 7,360,396 23.13 Wood and Its Manufactures. . 31,980,328 4,033,289 12.61 Silk and Its Manufactures. . 30,486,367 16,186,131 53.09 Iron and Steel and Ore. . 24.172,807 8,855,382 35.38 Diamonds. . 24,147,124 2,497,521 10.34 Tobacco. . 27,332,038 23,269,458 85.14 Liquors, Wines and Spirits. . 21,856,363 15,650,113 71.60 Hides. . 20,344,975 3,034,736 14.92 Furs and Feathers. . 20,015,800 5,880,714 28.25 Meats and Breadstuff's. . 19,134,660 6,526,912 34.11 Fruits and Nuts... . 16,888,802 5,922,309 36.55 Leather and Tanned Skins. . 13,693,297 4,966,475 36.27 Earthen Ware, China and Glass. . 14,934.701 8,537,054 57.16 Vegetables. . 12,569,477 4,955,805 39.43 Fish. . 10,524,097 1,968,657 18.71 Paper and Manufactures of. . 11,476,962 2,875,092 25.05 Miscellaneous. . 92,415,404 30,938,145 33.48 Totals.. ..:. .$682,265,866 $294,377,360 43.15 Imports Free Of Duties. Year Ending June 30, 1909. Values Silk, raw.$ 80,139,348 Coffee. 79,103,933 India Rubber. 64,735,438 Hides. 54,692,017 Chemicals. 46,092,201 Copper. 37,763,798 Fibers. 27,667,273 Tin. 26,010,350 Tea. 18,628,390 Cotton, Raw. 14,844,321 Cocoa. 14,830,511 Fruits and Nuts, no duty. 14,035,029 Oils. 12,477,019 Furs. 11,652,619 Wood. 11,329,526 Miscellaneous. 72,835,027 Total.$586,836,801 The duties collected for the year ending June 30th, 1910 averaged 41.52 per cent, or 1.53 per cent, less than the average of the previous year. During ten and a half months of the new year the duties were under the Payne- Aldrich law of 1909. The changes made by this law were chiefly that the hides not already on the free list were put on it and the duties on iron and steel and iron ore were reduced. With these exceptions the new law was substantially a re-enactment of the old one. Berryville, Va., Sept. 2, 1911 0112 061619109