A two months Hour in the United* States of America. Arthur S.H.Hi tellings. Philadelphia, 1897 E "I give ityfeiftibte the founding of a College in, thi} .Colony''' 1 Yale University* JAN 17 1098 ft Two Months' Tour HBrary. IN THE .* j» .•* UNITED STATES 1 If (^^ ^" 6^* ^^* ^^* NORTH "AMERICA BY ARTHUR S. H. HlTCHINGS Delegate from Rio de Janeiro, Brazil, to the Philadelphia Commercial Museums PHILADELPHIA: PRINTED AND PUBLISHED BY JOHN C YORSTON & COMPANY. MDCCCXCVII I^Z^L*? (U^t^l^T. ft Two Months* Took in the > * > united states \j\ &* v& •£* •£* *3* NORTH AMERICA BY ARTHUR S. H. HITCH1NGS Delegate from Rio de Janeiro, Brazil, to the Philadelphia Commercial Museums PHILADELPHIA : PRINTED AND PUBLISHED BY JOHN C. YORSTON & COMPANY. MDCCCXCVII Au Revoir. It is now two months since I landed on this hospitable shore after a few days' voyage in an American steamship, on board of which I commenced to form my favorable disposition toward the citizens of the United States, and from the twenty-ninth of May, when I left the steamship St. Louts, to the present date, I have learned to love this great country for the sake of its people. I do not propose to describe the tour of the delegates of Brazil and the other countries of this continent through the industrial centres visited, nor to make references to my pleasant and friendly companions. This pleasant task is being undertaken by others, with time and special means of accomplishing it. My object is a selfish one, and yet pardonable. I have to tell my friends, immediately on my return to my own country, not only what I have seen but also what I have done and what I have said in acknowledg ment of the importance of the idea which induced me to accept of the polite invitation from the Board of "The Philadelphia Commercial Museums." A reproduction of the words I uttered at many of the assemblies that received us, in a way which has made us all feel so grateful, will partly accomplish my duty toward my own countrymen. Many Brazilians who, like myself, speak your language, will prefer to read my ad dresses as spoken, and in publishing them in Philadelphia, I embrace this opportunity of publicly saying, Farewell. Farewell to the many who have a right to expect it, but to whom I could not, owing to their number, attempt to write individually in the short time left me before embarking. I have, during the past week, reviewed the hundreds of catalogues, cards, samples and souvenirs given to me during the forty days' tour through many States. I (i) wished to classify everything and in a proper commercial form acknowledge their receipt, but I had to abandon the desired task, for it would require many days to finish it. I must bid adieu to all correspondents, commercial and private, through the press which they have made so great, and I here promise to make good use in Brazil of all the printed matter which loads my several boxes. There are many things which I know will do for our Brazilian trade, and I will not allow my own business to be a hin drance to any extension my information may further in the trade between the two great Republics of this conti nent. In my parting address last week (July 2 1 ), at " The Phil adelphia Museums," I had the pleasure of speaking upon the subject of ' ' Reciprocity. ' ' I may not have justified the principle as connected with the present system of tariffs, but in other ways and in kindly feeling, no one will sur pass me in advocating Reciprocity. As I esteem it be tween individuals, so do I desire it between the people of Brazil and the people of the great Republic of George Washington. My address at the ' ' Philadelphia Commercial Mu seums" was as follows: Before entering on the subject I have been asked to refer to, I beg to signify my sincere thanks for the exceeding kindness which I and the other delegates have met in all the cities we have visited in this country. We have been afforded through our tour the opportunity for appreciating the vast resources and great indus tries of a large part of these United States. We have been received in your chambers of commerce, your universities, your clubs and your homes, and on every occasion we have been struck with the wonderful advancement which every branch has shown us, and are charmed by the welcome that your citizens have so warmly extended to us. Others will describe more comprehensively the details of what we have seen and admired, and do justice to the display of Ameri can inventive genius, but I may be permitted before saying fare well to the Board and members of the Philadelphia Museums which prepared for us the way to such a gratifying and useful excursion, to thank them for the same, and their officers and em ployes for the efficient manner in which the whole tour was con ducted whereby we travelled with ease and comfort thousands of miles and visited places with an aggregate population of many millions, without the minutest trouble or displeasure. I must avail myself of the present opportunity also to renew our thanks to the citizens in general, of this great Republic, for the exceeding kindness they showed us everywhere. I would personally write at least to those who have bound me to their friendship, but even this pleasing duty I must forego for a while. I know they'll judge me generously, and in this at least, we shall be reciprocal, for such reciprocity does not depend on legislation, but solely on kindly disposition. Reciprocity — if it were as easy between nations, would undoubt edly be a just definition of fair and friendly trade, but circum stances often, almost always, create difficulties which prevent a practical realization of such a disposition. That friendly countries should be inclined to make it a system is natural, but I do not think this can exist without free trade, and I would be wrong in holding out prospects which would indicate any treaty by which Brazil would bind itself to favor one country more than others. I believe that the exceptional bounties Canada is giving to Great Britain are legislative blunders, and time will prove it. They are opposed to the broad and liberal laws which secured to England her extensive foreign trade, and will retard the progress of the dominion which has otherwise so many advantages. With this view I cannot believe that their reciprocity (for such it is), will last long. It would be still more difficult to have exceptional laws favoring the many nations on the American continent. The interests of these nations are not alike, nor can their produce and manufac tures find an outlet and consumption within their respective or united boundaries. Burope must necessarily be sought after, both by North and South America, and it would be inconsiderate to propose any legislation that would exclude existing equality whereby all nations are treated alike. Such legislation would in terfere with production ; it would lead to surplus stocks, and exact quantities for barter would be required instead of progressive in crease, which only greater and greater intercourse with the whole world can foster and regulate. But, gentlemen, are not the Philadelphia Museums at this very time confirming this view by sending one of their ablest men (Mr. William Harper) to Africa, Australia, and other countries, to study the means of enlarging the commerce of the United States beyond Pan-American lines? I have heard much of the Monroe doctrine, but surely such ideas cannot apply to trade. Let us, gentlemen, as practical men, forego all pretty notions that are not based on sound reasoning and let us circumscribe our desires within a possible scope, so that our views and judgment may not be clouded by sentiment mani- festedly inferior to the practical bonds of friendship. We have seen on our tour that the United States produces machinery and many of the articles which we import at present from other countries, and we have noticed that these States also import many things similar to what we buy in Europe. There is much here that, owing to originality of manufacture, can be intro duced into our country, even under the present unfavorable cir cumstances ; there are coal, oil, iron, steel, hay, corn and bread- stuffs, which can profitably ballast your ships when you decide to create an ocean mercantile navy, and all these are admitted into our country at very low rates of duty or small percentage of the expenditure with our seaports, and in the almost free admis sion of such heavy goods there is a natural reciprocity which is guided by the interests of consumers. I must repeat, however, what I stated in Chicago as my opinion when I had the honor to address the merchants of that city. "The majority of your manufactures, although in most ways fitted for our markets, are too high priced, and I don't believe in a steady and increasing foreign trade or outlet for these goods until there is a reduction in the general scale of prices. You have to further an appreciation of your dollars which have hitherto been so easily earned ; you must make their purchasing power greater so that cheaper living will follow and more general content ment." But, gentlemen, with protective duties and inflated currency such results cannot be attained, and it has been my pleasure in the intercourse with your countrymen in each of the great cities from here to Baltimore and New York, thence to Boston and other New England cities, Pittsburgh, Chicago, St. Louis, Nashville, Cincinnati, Detroit, and other parts of our tour, to find that the majority agree in the belief that protection has concluded its good work, that its permanence will be effectively pernicious, also that your currency requires without delay to be placed beyond the reach of politics or the manipulation of silver trusts. On my return last night, I received from the honorable secretary of the Chamber of Commerce of the State of New York, proof- sheets of the address I was permitted to make to the assembly which received the foreign delegates in that important centre, and, in the resolution to publish proposals for a uniform international coin, I conclude that the matter has found encouragement from your great commercial and financial emporium. Gentlemen, we have seen how your factories employ most ad vanced machinery, how time and labor are economized, and how these circumstances have been conducive to the growth of your industries ; but these machines are exported, imitated, and in some cases, improved on, and others are thereby enabled to compete with you by using your own inventions, added to reduced price of labor and untaxed cost of raw material. Competition is whole some, for it corrects over-production, but you do require to produce more for the employment of your skilled workmen, and you must find markets whereby to dispose of your goods. All this necessi tates an altered system. We wish you to succeed and will certainly try to place your splendid manufactures in our markets. You are favored with home-raised quantities of many of the raw materials used ; do not enhance their cost. Your machinery is most effective; do not expect too much from it Your workmen are very skilled, yet do not underrate the foreigner, but to all your advan tages add what free trade principles can alone secure, a perma nent and engrossing international commerce which will insure the future of every workman in this wonderful country. This is what I understand by reciprocity, and my most earnest wish is that in such an example, we in our country will find a lesson and an incentive to do likewise. In the desire to co-operate with the Museums to enlarge the business sphere of the United States, we have found much encouragement everywhere. We were received by your Honorable President, Mr. McKinley, and we have had intercourse with some of your most prominent men in various branches, besides the manufacturers and mer chants, who have so magnificently entertained us. We were also taken to the great seats of learning, Harvard and Yale universities, and their cultured vicinity will always bring to my mind the pleasantest recollections. In our tour we had some charming surprises. At Fall River the girls of Borden School saluted the visitors each with an example of drawing and writing. To me was allotted an outline of the two Americas, and the little Flla McCoy had penned the following ' ' Words of Cheer ' ' : "Republics of the South — God speed ! For envy there is time nor need; Condor and eagle freely fly — There's room for both in Freedom's sky." At the National Cash Register Company's factory, in Dayton, we were seated at luncheon with sixty young women from the works. Their ladylike deportment and pleasant conversation was the subject of after comments when we had left the pretty city. At Grand Rapids, Michigan, we were received at the ladies' club of the St. Cecilia Society, and served at their board by the delicate hands of the members; and while a number of the engaging ladies heaped attentions, each one to each of us, who would gladly have reversed our relative positions, others elated us with most exquisite music. Many of us were privileged to visit magnificent homes in different cities, and had further insight into the hos pitable ways of the American people. Thus you have bound us to your country; with such emblems of peace and good-will you have prepared the way for extensive relations, I not only of business but of a lasting inter national friendship. International trade and commerce have received a stim ulus and reliable support, an encouragement to develop ment and profit, from the organization of the national undertaking headed by the Philadelphia Museums . Your honored President, Mr. McKinley, at the formal opening of these Museums on the second of June, comprehensively enhanced their importance. His address should be well remembered by all lovers of mankind, as he justly worded his reference to the great effort which was crowned on that memorable day. ' ' The distinguished body of gen tlemen," he said, "who have planned this organization, have grasped great economic truths and are prepared to pursue them to their successful conclusion. Its generous support will increase its usefulness." I have followed this opinion with sincere conviction, and I believe the information to be derived from such a fountain of knowledge will facilitate in the future more correct commercial legislation in the various countries interested. With a view to hastening the collection of increased information which the bureau of the Museum will com mand, before starting on the tour of investigation, the advisory board held several meetings and arrived at some conclusions which will be conducive to the subject dis cussed. In the tour some excellent accounts were given us of the position of your various centres, and of the United States, by gentlemen who addressed the assemblies to which we were invited. These speeches, and those of my fellow delegates, in a uniform publication, will be most useful, and I understand they will appear in such a form. I have excused myself for the present pamphlet, which contains those of my remarks which I most adhere to, and which received some applause. I do not forget, how ever, to attribute the applause chiefly to the happy dis position of my hearers. My address before the Chamber of Commerce of the State of New York (New York city) was reported as follows: The Vice-President.— I take pleasure, gentlemen, in pre senting to you the representative from Rio de Janeiro, Mr. Hitch - ings. (Applause. ) THE ADDRESS. Mr. Chairman and Gentlemen :—l think I may say that the words we have just listened to embody and echo the true feelings of the delegates from Mexico, Central America and South America. We heartily agree with the sentiments expressed. We think as you do, Mr. Chairman, that it is in a broad manner, and in no narrow spirit, that we must carry out the ideas which have brought us together. We have visited your Board of Trade, the Maritime Exchange, the Coffee Exchange, in which I was very much inter ested, and the Stock Exchange, and now we have come to you. In all these places we have heard words of welcome, and have been shown and had explained to us the workings of your great city. These great centres of yours, and the one that we are in now, un questionably, are of the most paramount importance, and our visit to this country will be most instructive to all the delegates coming from South America, but you will excuse me if I say that you have in the United States one great institution that tops everything else. I refer to the Philadelphia Museums. (Applause.) That great, new institution is wonderful. When I first heard of it, the name appeared to me to convey something of the kind we have seen in other countries, but its exquisite organization, the most extraordinary capacity that has been put into bringing about a thorough knowledge of Northern and Southern commerce, trade and everything that can possibly bring about a unison of the peo ples of the great American continent, you can find in the Philadel phia Museums. It is, in my opinion, the greatest commercial institution of the nineteenth century. I cannot take up your time in speaking of other relations connected with commerce, because the gentlemen who have preceded me at the other places we have visited in your city have each touched upon different subjects. I have to return to you, gentlemen, our warmest thanks for the way in which you have received us. We entertain the greatest respect for this, the oldest institution in the commercial city of New York, and we are imbued with respect for the memory of these fathers of commerce and trade whose portraits look down upon this gath ering. With your permission, sir, I will take the opportunity of reading a few pages that I have written on a matter, which I think is of importance at the present time, and which may lead to a uniform system of money between the whole American continent. If any one visiting an American mint, takes up and examines one of your beautiful twenty-dollar coins, he will be disposed to say, "Thisis good enough for me." And so it will be with the sovereign or the twenty-franc piece, or with the glittering gold of all nations. Why, therefore, change ? Why propose to do away with systems that have satisfied our ancestors, and that, in spite of debasements, have secured the confidence of the people, as fully as the Church maintains the faith of its members ? My aim is not to destroy confidence, but to invite it to less questionable grounds; and as old measures and weights are gradu ally giving place to the metric system, so do I hope to see a move ment in favor of a simple and comprehensive system for the standard measure of value, and for the commercial and social inter course of all nations. I have learned during my visit to Philadelphia how the citizens of this Republic value time; and it is really paradoxical that in the age of electricity and accelerated movement, we should all adhere to the ancient moneys which made the exchange between countries a study as complicated as it was extensive. An international coin has been often advanced; and I maintain that the necessity for it is more and more obvious, and that its adoption must be subjected to such scientific rules and to such plainness for the understanding of all classes, as to make a con version practically easy. The present generations that are to pioneer the accelerated movements of the dawning century, and that are acquainted with the history of the present one, must see the necessity of econo mizing time, even in counting their money and settling with their neighbors. The United States have, in the last ten dozen years of their inde pendence, done more than other nations in ten centuries. I have had occasion to appreciate the way in which much work has been done by discounting unnecessary formalities, and venture to say, that the varying calculations which are required by individual monetary systems, could well be done away with by the adoption of a uniform plan in keeping with the metre and the gram. I said, gentlemen, that the admirers of a twenty-dollar coin will question any change; but this they will not do if they travel, unless all others would adopt the dollar. I would ask, however, do the majority of the people know what the dollar means, and the weight of gold which it names ? Do the widespread lovers of the golden sovereign, or of the twenty-franc piece, and of other gold coins, know more than that they are not easily amassed ? And that so long as gold cannot be produced from other metals, its real value will be measured by the mean amount of time, capital and labor expended in its extraction from the earthen crust ? They do not know; their time does not permit it; and when exchange from one country's coin to another's is required they have to take what they can get. For example, I will refer to the gold of the United States, of France, and of the United Kingdom. In the first instance, you have called the troy ounce of gold $18.66465, and the dollar reci procally weighs 25.80 grains, so that a coin of $20 weighs 5i6grains. The second example places the kilogram of gold at 3.100 francs, and the reciprocal weight of a twenty-franc piece at 6.45 1619 grams. The third case gives for fifteen pounds troy weight ^"701, which reduces the weight of each sovereign to 123.252496433666191 grains. We have, accordingly, for the twenty-dollar gold piece 33.436 grams; for the twenty-franc gold piece 6.4516129 grams, and for the twenty -shilling gold piece 7.98805 grams of twenty-two carat gold, equivalent to 8.1378257 grams of -fflfo as the American and French. A careful consideration of these figures will show that there are decided objections in each case for their adoption as international currency. These objections add considerable strength to an opin ion that the unit for a universal and standard coin should differ from all existing methods, and there is not, I believe, any unit that is superior to the gram weight and its decimal subdivisions. This unit Is the one I have for some years been advocating. It was not my intention, gentlemen, to speak on this matter in the United States, although I have expressed my plan at the World's Fair, in Chicago, in a manuscript which you will find catalogued; for it would appear like foreign interference in a problem which refers to silver, and which is very much connected with your political party spirit. I was encouraged, however, to alter my intention on reading the words uttered by the Hon. Lyman J. Gage, Secretary of the United States Treasury, at the Maryland Bankers' State Convention, confirming a previous promise that the administration would place the currency upon an enduring and solid basis. Such a declaration, and the unanimous resolution of the convention to oppose free coinage of silver and all debasement emanating from such important sources, must have a beneficial effect, not only on your home trade but also wherever American interests are felt, the principles upheld by this country are studied, and where its good examples often serve to prevent unsound though popular legislation. We have suffered severely in Brazil from the depreciation of our currency; we have bitterly felt the withdrawal of that confidence which the financial and commercial world at all times extend to our country, and which we never betrayed; and all this, gentlemen, is due to our unsound system of currency. I have lately been in London and Paris where Brazilian stocks are largely held, and I learned that the want of confidence was not in our good will and honor as merchants or as a nation, but in our ability to long comply with our determinations. Things there, however, are not so bad as this ; we have legislators fully alive to the necessity of righting our currency, and we have the means of doing it. For this reason the proceedings of the Bankers' Convention greatly gratified me, for they put a shoulder to our wheel. I shall now enter into the description of my plan, having excused my action, which necessarily embodies some considerations on the position of the white metal. My proposal, in its simple form, is that the UNIT for currency should be the GRAM of gold. That the relation of silver to gold shall be 5 per cent. ; that is, 20 to 1, instead of the existing proportions. That both metals should be of -fiftf-n, and that all coins, whether small or large, which are of one of these metals, should be exclusively of the given standard. That whenever these metals are used in trade or art, the quality shall be decimally stamped and declared, and shall lose its char acteristic name where its purity is reduced to half. That it shall be considered a fraud to sell any precious metal as such, if it does not contain in its purity one-half or more. I propose to make silver subsidiary to gold, and limited to the requirements of each of the countries in which it is coined; no foreign payments can be forced in this metal. I propose that the gold pieces shall be received wherever con vened, and a union established for the various guarantees required. The present commercial relation of silver to gold is more than double the monetary value; it would therefore appear, that in mak ing a change, the ruling quotations ought to be considered. But I believe in an appreciation of the white metal, as extraction of gold has considerably increased, and when the output is insufficient after Africa, you can go to Brazil, which is probably richer in gold ore than any country in the world. I believe that a more cor rect treatment of silver will also increase its use and value. The coins of America and Europe consist of alloyed parts, containing 945. 925. 9°°. §35. 833. 8^, ?2°, 640, 600, 520, 500, and 400 mil lesimals. This is a reflection on the past, and clearly indicates the neces sity for an amendment in the future. Remove all demoralizing conditions, and the metal will soon feel the benefit. I propose, gentlemen, that there shall be two coins of gold. One of ten grams and one of five grams. These to be internation ally current. The silver coins will state on the one side their metal weight, and on the other their monetary value of gold weight, viz., I coin, 20 grams, representing 1 gram gold; 1 coin, 10 grams, representing .500 gram gold; 1 coin, 4 grams, representing .200 gram gold; 1 coin, 2 grams, representing .100 gram gold. Reduced to dollars, the system would represent: $5.98, say 6 dollars; $2.99, say 3 dol lars; 60 cents; 30 cents; 12 cents; 6 cents. (See illustrated plate.) Lower values would naturally be represented by other metal or copper. This is a summary of what I have placed before my countrymen, in Portuguese, the language of Brazil. On the conclusion of the address, a luncheon was served by Delmonico, after which the guests departed to visit the tomb of General U. S. Grant at Riverside Park. When in Boston I had occasion to return to the above iplan of coinage, and the Boston Herald of June 16 re ferred to it. This journal also reported, as follows, a con versation on the tariff question, which I reproduce: "Your Congress is putting through the new tariff bill too hur riedly," said Mr. Arthur S. H. Hitchings, of Rio de Janeiro, to a Boston Herald reporter yesterday while the steamer Victor was paddling to Nahant the visitors from South America and Mexico. "The American Congress," he continued, "should think of what they are doing. They will spoil the work which this great ' Philadelphia Commercial Museum ' is building. ' ' I think that, first, we should have a uniform system of weights, measures and money. I will not say much about the tariff, be cause we have a bad protective system, and the pot has no right to call the kettle black. Both Brazil and the United States must bring down their tariffs, or others will scoop the market. If America will only reduce her tariff, I promise you she will get our trade. However good our feelings toward the United States, we are compelled to act for the good of our own pocketbooks. If Eng land, by importing free raw materials from us, can make the goods we need cheaper than the American manufacturers, we shall be compelled to take her product. If you can give us the goods as cheap as England does, you will get our trade. " Many of my colleagues talk about long credits. Your manu facturers need not be frightened. The}' will be able to get their cash, and we will find means of paying it. In your different States you ought to get up associations of non-competitors, who shall be connected with Brazilian traders, so that credits may be exchanged. " You need an American bank in Brazil. The English, French and German banks are making splendid returns. I predict that an American bank in Rio de Janeiro would clear a net profit of from 15 to 20 per cent. "You have built railroads on speculation. You ought to have the same foresight to send steamers to us. The trade would come. 13 " I have found among the merchants of the United States a most decided opposition to the high tariff system. You should move toward free trade. I don't think you are yet quite ready for it. ' ' I must say here, however, that the United States can well export much which it produces and that is very lightly taxed in Brazil. I cannot understand why your coal, hay, wheat and other corn do not go largely to my country, and can only suppose this is due to a want of merchant marine sailing under the flag of the United States. I cannot forego the temptation of reproducing also from the Boston Herald, of June 16, the speech of Mr. Fd- ward Atkinson, the eminent political economist, which so much impressed the audience at the banquet on the previous day. I had had the pleasure of listening to sonie of his logical remarks before the banquet, and at once felt the influence of his master mind. Mr. Atkinson's speech was reported as follows: Mr. Edward Atkinson said he would give a digest of the report which the delegation were preparing in their minds. You are say ing, he continued, that you have enjoyed your visit to the country nearest you but which is farthest from you by act of its own inhabitants. In fact, it has become practically inaccessible. You say, he continued, that there is nothing in the natural conditions, nothing in the cost of production, nothing in the quality of goods, nothing in the references, nothing in the Commercial Museum lacking, nothing to prevent an instant, extensive and profitable exchange of products with us ; no physical or material obstruction. We are glad to report these facts, which cannot be gainsaid, and yet we are compelled to advise our governments, our merchants and our associates to waste no time or effort in undertaking at present to establish trade or commerce, or the exchange of pro ducts with the people of the United States. There is an obstruction greater than that of physical distance, harder to surmount than the highest mountain ranges, more ob structive than the most dangerous bar at the mouth of any harbor — there is a current directed against us for the avowed and intended purpose of diverting our trade from the ports of the United States to the great free ports of Great Britain and Germany, to London, to Antwerp, to Hamburg and to Copenhagen. 14 That obstruction consists in the pending legislation in the Con gress of the United States, putting heavy and, in some cases, pro hibitive taxes on the crude or partly manufactured materials of foreign origin which are necessary to the conduct of domestic industry in the United States, especially in the woollen and worsted manufacture. These taxes are imposed on foreign pro ducts which are necessary in order that these branches of industry may be enabled to compete with the manufacturers of Europe in supplying us with various kinds of goods which are of necessity purchased by us in foreign countries. It has been difficult for us to comprehend the influences which actuate the legislators in the national Congress of the United States in this matter. There is a grotesque absurdity in the present conditions, which cannot be reduced to any terms of reason or right. We have been invited here to witness the fact, which we fully admit, that if the manufacturers of the United States of metal work, of textile fabrics, of leather, of wood, of many chemi cals, and of nearly all the fabrics which we desire to buy in ex change for our crude or partly manufactured materials, were permitted to compete on even terms with the converters of these materials in their finished forms in Great Britain, France and Ger many, the preference would be given by ns to the manufactures of the United States on their quality and on their cost. But so long as taxes are imposed by the United States Government on these necessary materials, which we might supply to the United States in payment for goods bought there, which are not imposed in any other manufacturing country, the Congress of the United States protects the manufacturers of foreign countries to the great injury and detriment of their own. This travesty of the policy of protection has no intelligent or intellectual support. Yet neither the masses of the people whose cost of living will be increased nor the manufacturers whose interests are imperilled appear to have any influence upon their representatives either in the Congress or in the Senate of the United States. This system of protection run mad is intellectually dead. In the debates in Congress when facts, arguments and ' figures are presented by the minority who oppose such a perversion of the power of national taxation, they are met by stolid silence and by votes apparently given under duress by senators and rep resentatives alike who are themselves aware of the injury they are doing to their own constituents in supporting these obstructions to commerce with us and our associates. There are signs that if this act should come into force it will be of very short duration. We find that the people of the United 15 States have become so well skilled in all the arts commonly called manufacturing, as well as in agriculture, that they can over stock their limited home market with far less than a year's work of the mechanism now in existence. In respect to their agriculture, with here and there a trifling exception, they are, to use a terse ex pression that has been applied to the case, " smothered in their own grease. ' ' They are endowed with such huge abundance of fertile land, of forest, of mines of metal and of coal, and with such adequate mechanism in the processes of distribution and conversion, as to be practically independent of all other countries ; on the other hand, nearly every other manufacturing country is dependent upon the United States either for food, fuel, fibre or metal in the conduct of their manufactures. Such is the dependent condition of Great Britain, of Germany and of France ; yet under the strange delusion that foreign commerce is a war upon domestic industry, the legislators of the United States bar their ports against the ser vice which we might render them, and thus stop the export of their own excess, which, being held back upon an overstocked market, has depressed the price of nearly every staple in the country below even the low cost of their production. Under these conditions, it seems very strange that they should have established a commercial museum at the very centre of this economic delusion; that they should have sent a group of mer chants to make an effort to open commerce with South and Central America and Mexico. Stranger yet, that they should have invited us to view their vast resources and to welcome us, as they have, individually, in the most hospitable manner, while, on the other hand, permitting their Congress to forbid the very commerce with the other States of the American continent on which all might thrive so greatly. Our final recommendation, therefore, is to maintain our pres ent close trade relations with European countries, whose legislators do not impose heavy penalties upon our commerce with them, and to await the action of the people of the United States in removing all legal obstructions which now forbid mutual service among neighbors who ought to be united in the closest bonds of friend ship, of commerce and of mutual support. Such, gentlemen, is the report which I have to make to you as a mind-reader of the thoughts which have been passing through the minds of our friends during the last few days, but which they have not yet put in writing. I do not ask them to declare whether or not I have read their thoughts correctly, because, under exist ing conditions, that might be an embarrassment to them. Suffice it that we welcome them here in the most hearty manner. i6 We desire to cultivate the closest of friendly relations with their respective countries, and we will do so, so far as the Congress of the United States will permit. We beg to tell them that in the judgment of many of ns here present the influences by which the present Congress is governed and directed are being rapidly ex posed, and that the delusion under which the present Congress is now acting will not long stop the progress of this country or pre vent the citizens of the United States from enjoying their personal rights and gaining the benefits of the most extensive commerce to which their energy and resources may hereafter entitle them. Let me also remark that, while trade follows the flag of nations, the flag will also follow the trade when we remove from our own shipping the restrictions of our obsolete navigation acts, which, more than any other force or foreign competition have driven our flag from the ocean. In New Haven I was called upon to answer the Mayor of that city, Mr. Farnsworth, who had welcomed the delegates in a most cordial manner. The following were the reported words, and they introduced me to some of the best-hearted men I ever met in my life. Mr. Mayor: — Since commencing this tour through the United States, we have been in many a bee-hive, have sipped of the honey generously set before us, and have not once felt or received a sting. But nowhere have we been welcomed with such enthusiasm as in this city. As we entered New Haven, some of my friends asked me if this was "New Heaven," for it has been, indeed, a great reception. It is occasions like these that arouse the feeling of brotherhood in all Americans, whether they be from the North or from the South. As we came along we saw much and learned much. Your methods are wonderful, and I believe it is only a question of time, a very short time, when, by removing all barriers, America will be one in commerce, in sentiment and in sociability. The New Haven Morning News, of June 22, contained the following article: Our South American contemporaries reached New Haven last evening and were tendered an official reception by Mayor Farns worth and the reception committee. Mr. Arthur S. H. Hitchings, in his reply to the mayor's address, said some very excellent and noteworthy things, which will be found in full in another column. The delegation as a whole impressed the New Haven public very favorably. They are evidently representative business men of the -7I fJ* yZc^^^^^^rxt^rf^ 17 southern republics, and have in their North American peregrina tions no other than a purely business purpose. They are evidently not bored by the attentions they receive, but take a genuine inter est in the town and in its various intellectual and industrial activi ties. They will visit the largest factories to-day, and be received by the presiding officer of the largest and greatest of them all, President Dwight. It may be impossible for our South American friends to carry on any extensive trade with our New Haven mer chants, but the university is an institution which they will have plenty of opportunities to patronize. No reciprocity treaty is necessary for the full enjoyment of its intellectual advantages. At St. Louis we were treated to an informal supper, where some excellent speeches greatly edified us. A gentleman spoke at length on "Trade and Commerce," and the essay will add to the best arguments on the sub ject. But in this discourse the free silver cause was intro duced and when, at a late hour, the toastmaster called on my name, I could not help in some way responding to what I looked upon as the objectionable part of an other wise unobjectionable speech. The hour prevented a full notice of what I said, but the following articles which were extracted from the local papers will show the spirit in which my words were received. THE SPIDER AND THE FLY. SX-GOVBRNOR STONE ADVOCATED FREE SILVER AT THE WRONG TIME. (St. Louis Globe Democrat.) There is a choice bit of gossip afloat which deals with two ex- Governors of Missouri and a member of the Pan-American Con gress, who has been the guest of St. Louis since Friday morning. According to this gossip one ex-Governor led the other, like the spider led the fly, into an argumentary net, in which the more recent Governor became embarrassingly entangled. Friday night the members of the Pan-American Congress, with the local citizens' committee, enjoyed afumada, or smoker, at the Southern. There were several speeches made, and then the com pany adjourned to the ladies' ordinary for refreshments. Ex-Governor Francis, a Democrat, who believes in the main tenance of the gold standard, knew, it is said, that ex-Governor Stone was to speak after lunch was served, and knew, furthermore. i8 that he intended to incorporate in his speech free-silver arguments. Governor Francis was master of ceremonies, and in some way it was arranged that Mr. Arthur H. S. Hitchings, of Rio de Janeiro, Brazil, representing the Commercial Association of that city, fol lowed the Missouri apostle of the white metal. True to his political creed, as defined by the Chicago platform, ex-Governor Stone spoke eloquently of the merits of free trade and of the free, limit less coinage of silver. Of course, he spoke of reciprocity, which he made practically synonymous with free trade. His speech was listened to attentively, but was received with little applause, as his auditors, both guests and hosts, were advocates of the gold standard. After ex-Governor Stone finished his speech, Mr. Hitchings was called on. He agreed with the gentleman who preceded him that reciprocity is a desirable institution, and differed from him but slightly on the best way to bring it about between the Latin- American republics and the United States. But when it came to the monetary system as advocated by ex-Governor Stone, Mr. Hitchings took exceptions. He expressed the sentiment of his countrymen on the subject in a manner which was calculated to somewhat embarrass the Missouri free-silver statesman. He denounced the unlimited coinage of silver in no uncertain tone and stood up valiantly for the integrity of the gold standard. While Mr. Hitchings was speaking, significant glances were thrown from one to another of the guests. During the river excur sion yesterday the tilt between the ex-Governor and the Brazilian was openly discussed. Whether or not the programme was so arranged by ex-Governor Francis was not stated, but the different character of the speeches and the order in which they were made laid the foundation for many discussions. Here is an article from another issue: MR. HITCHINGS ON FREE SILVER. A COMMERCIAL AUTHORITY REPLIES TO EX-GOVERNOR STONE. The spirited debate between ex-Governor Stone and Mr. Arthur S. H. Hitchings, of Rio de Janeiro, Brazil, a member of the Pan- American congress, which occurred at the fumada at the Southern Friday night, and to which reference was made in yesterday's Globe Democrat, continued yesterday to form an interesting topic of conversation. It was generally believed that Ex-Secretary Francis, who acted as toastmaster on that occasion, knew when he called upon Mr. Hitchings that that gentleman would pour some hot shot into Missouri's free silver advocate. In his speech ex- Governor Stone exploited the white metal arguments, and in the 19 course of his remarks Mr. Hitchings took occasion to reply to the advocate of free silver substantially as follows: 1 ' Gentlemen: — That America will sooner or later greatly increase its relations between North and South no one can for a moment doubt, for Americans are too keen not to remove the barriers which exist at present. We also require one weight, one measure and one coin to carry out our mutual views. I would not refer to the currency if silver in lieu of gold had not this evening found such decided support; but can it be possible that gold contracts in such a country as this should be paid in silver at its present or any other relation ? Is it right to give a dollar of forty-five cents in payment for ioo cents? Gentlemen, have silver if you like, but don't call it gold. A change even under the best conditions can please but few — perhaps Mexico among those few — and not for long. But we in Brazil want to return to gold, for we know the harm its absence has done us. If your mines and Africa's cannot supply all that is wanted, the interior of Brazil has more than necessary; go there and pick it up. I could not help saying a word to uphold the political economical principle which was so victorious in your last election, and hope you will forgive me for trespassing so long on your kind attention. You have had, gentlemen, the assurance of our wish to meet you in the desire for a more extensive interchange of commodities; and the realization of this desire now greatly rests with you and your legislators." In Chicago I was called |upon to make the response to the address of welcome at the reception dinner. The frankness of my address was due to the request that I should speak my mind freely. My remarks were reported as follows: RESPONSE OF ARTHUR S. H. HITCHINGS, of Rio de Janeiro, Brazil. Gentlemen of the Corporation and Chamber of Commerce: — I take it as a special privilege to be called on to address this impor tant assembly of citizens of the Western capital. Wherever the delegates from Brazil and the other countries of this continent have been received in their sister republic, they have met with the most cordial welcome and brotherly treatment, and this has enabled us to speak to you with a candor which would otherwise have been impossible. Before entering your city you prepared us for its magnitude by showing us a great work of engineering which astonished and pleased us; I refer to the new drainage canal, and well can you be proud of a city that can execute such gigantic plans. The principal object of our tour through the United States will have been accomplished when we leave Chicago, and I may well say that never before has there been a conception of such vast commercial and social importance as the one which has drawn together so many states. On the invitation of the Philadelphia Museums we left our respective countries, traveling in some instances many thousands of miles, thereby recognizing the great international prospects that such an organization was promoting. Exhibitions in various capitals have done much good, and will doubtless continue to do so, but the effects of many of these ex hibitions are never so universal or lasting as their merits should insure, because a scientific registration of their merits has never been made in the practical manner adopted at Philadelphia. These American Museums are examples of business-like priority which other nations will have to follow; but you, gentlemen, have the start, and the idea is yours in its present form. The Museums comprise all of the advantageous exhibitions of statistical data, of consular information, of official and private correspondence, collections of all commercial periodicals of all countries and languages digested and scientifically classified, and all so comprehensively filed and located that every possible assist ance can be derived by manufacturers, merchants or commission agents, without loss of time and at a moderate cost. We are anxious to help in this great work, and we feel assured it will tend to unite this continent in greater bonds of trade, com merce and fraternity. Gentlemen, one of the results of the International Museums of Philadelphia will be to do away with the notion that high prices are essential to good results in business. Liberty in trade is as necessary, or more necessary, than it is in any other branch of social intercourse; nor can a healthy and prolonged prosperity be secured if trusts and unions interfere with the natural effects of supply and demand. There is a decided tendency in all America which warrants a more mutual exchange of commodities, without, however, breaking off our friendly rela tions with the world at large. In Brazil we have received immigrants, capital and credit from Europe, like yourselves — and the sons of Europeans become Brazilian citizens. If the United States continues to increase the number and ca pacity of its factories, foundries and other industries, it will soon have to choose between reducing your workmen in numbers, or reducing the sum of their earnings. The first condition must have a terrible effect — thousands of able men seeking work, so that others may remain in relative affluence. The second condition will be much less objectionable — living will become cheaper and the artisan will be able to do with two dollars what he now does with three dollars, and the consequently cheapened article of com merce will find its way to South America. Cheap living never led to disorder, but dear commodities have been the greatest factor in revolutions — upsetting and destroying otherwise flourishing states. It must be obvious to you, as it is to us delegates from South America, that any advance in duties on the products of our countries cannot help to bring about that in crease of trade relations, which your chambers of commerce have so much tried to foster, nor can we promise that such measures will not lead to reprisals. It is for you, gentlemen, to act, not making exceptions to us, but reducing among yourselves the scale of prices, all around. This will lead to genuine, sound and increasing trade, and the word " brisk " will be used instead of " depression." Then, gen tlemen, you will not only supply us South Americans with manu factured goods, but also those countries which have so cleverly kept you at a distance from our markets. Let us have, if possible, one measure, one weight and one currency. Let all be true as gold, and let us be true to our one great determination, to remove all obstacles and secure the means that shall make America pre dominate: imposing peace, as Europe has predominated too often by warring, and as Asia before her predominated by the exercise of barbarism. Let peace and liberty, education and skilled labor, and that fellowship which alone can draw mankind to the Creator of all that is good, bless this country and ours with the fruits which are otherwise vainly sought for. " Mr. Hitchings," concludes the report, "then returned his thanks in behalf of the visitors for the cordial reception which had been extended to them, and said that on their return to their country they would make every effort to impress upon their peoples the knowledge that this is the greatest country in the world." I was pleased to find that my remarks were not dis tasteful to the greater number of our hosts, although they led to some discussion on the next day. One of the papers gave a spirited reply which was cut out and sent me. It read as follows : A CURIOUS CONTRAST. When Arthur S. H. Hitchings, of Rio de Janeiro, rose to respond to Chicago's welcome to the travelers from Latin-America, he must have known that the Senate of the United States was engaged at that very moment upon a tariff bill in restraint of international trade. Certainly the Chicago business men who were among his auditors knew it, and the ironical contrast between the bill and his speech must have struck them forcibly. Perhaps it may have caused them to wonder, too — to wonder why they were keeping up a pretence of enlarging their commercial relations with these foreigners while the national legislature was doing its best to make the enlargement impossible. ' ' Liberty in trade, ' ' said Mr. Hitchings, " is as necessary or more necessary than it is in any other branch of social intercourse. ' ' Now, that may be an economic heresy, but the sentiment was appropriate to the occasion. The representatives of various nations had got together for the purpose of giving it unmistakable emphasis. Our own people had assembled to do them honor. For that day and date at least the declaration that the home market was all-sufficing, and that the foreigners' goods should be barred from our shores, would have seemed grotesque and absurd. Still the Senate went right on with that same tariff bill. The exchange of courtesies didn't make a particle of difference nor will it deceive the South Americans in the slightest degree. " There is a decided tendency in all America, " said the spokesman, ' ' which warrants a more mutual exchange of commodities, without, how ever, breaking off our friendly relations with the world at large." These people do not propose to sacrifice themselves on our altar. They will continue to buy of our competitors unless we can under sell our competitors. An advance in duties, as Mr. Hitchings urged, will not help to bring about an increase in trade relations. And still another abhorrent doctrine was expounded. We must reduce prices ; we must reduce wages. Cheap living was extolled. " It is for you, gentlemen, to act," exclaimed the speaker, "not making exceptions to us, but reducing among yourselves the scale of prices all around." So proceeded the logic of a pan- American meeting, but consider ing the trend at Washington, it really seems curious that such a meeting should have been held at all. Another (The Chicago Inter-Ocean, July 7,) criticizes my views, forgetting that Brazil is a willing buyer from 23 the United States for all that they can supply on equal terms to others, and says: MR. HITCHINGS OF BRAZIL. A part of the generally admirable speech of delegate Hitchings, of Rio de Janeiro, at the after-dinner chat at the Auditorium sounds rather strangely. He is reported thus: "It must be obvious to you, as it is to us delegates from South America, that any advance in duties on the products of our coun tries cannot help to bring about that increase of trade relations which your chambers of commerce have so much tried to foster, nor can we promise that such measures will not lead to reprisals. ' ' As a matter of fact, the total imports to the United States from Brazil during the fiscal year 1896 were of the value of $78,831,476, of which $77,080,854 were duty free. Duties were paid on values not exceeding $1,750,622 on all imports from Brazil. This certainly is a basis liberal enough for trade between nations. But in return for our purchase of near to $79,000,000 worth of goods, nearly all of which were duty free in our ports, Brazil bought from us no more than $15,135,125 in value, and levied high duties on most of the articles sold by us to her. On the other hand, Great Britain levied duty on every pound of coffee imported from Brazil, and yet Brazil bought more general merchandise from Britain than from the United States. A lecture on the advantages of free trade hardly is in order under such circumstances. The moral of the condition tends to reciprocity. If we are to buy three-fourths of the Brazilian coffee crop, and to admit it duty free, Brazil ought to admit our merchandise at low rates of duty or without duty. Nor can the people of the United States accept the declaration as conclusive: "If the United States continues to increase the number and capacity of its factories, foundries, and other indus tries, it will soon have to choose between reducing the workmen in numbers or reducing the sum of their earnings. The first con dition must have a terrible effect — thousands of able men seeking work, so that others may remain in relative affluence. The second will be much less objectionable; living will become cheaper, and the artisan will be able to do with $2 what he now does with $3, and the consequently cheapened article of commerce will find its way to South America." It is quite possible to enlarge the capacity of our factories and to maintain our rates of wages by adhesion to a policy of reciprocity. So many foreign countries produce tea, coffee, sugar, rubber, hides and the few other articles that we use but do not produce, or that we do not produce in sufficient quantity, that there is a rivalry 24 between such foreign countries for possession of our market, pro vided that we throw the market open to competition by giving the most favorable terms of tariff duty to those who will buy most largely of our surplus products. We do not know the nativity of Mr. Hitchings, but his argument sounds like that of an English man, or of a person of Anglican sympathy. The one thing that is proven beyond doubt is that the fact of our admission of Brazilian and Argentinian products duty free has not resulted in the opening of the markets of those countries to us. After leaving Chicago and its many sights and factories, there was a feeling that we all wanted rest — but at South Bend we had to admire the great works of Messrs. Oli ver and Studebaker's, before it could be found. Finally, at Notre Dame, Indiana, we assembled under the friendly roof and on the lawns of that beautiful University, where Father Morrissy and his many religious assistants gave us good cheer and helped us to a magnificent dinner, in a truly home-like way. It fell to my lot to answer the Reverend Head-master and to a Spanish-speaking stu dent, which I did in Fnglish and Portuguese. These speeches were on less familiar subjects, and I do not attempt to reproduce them. I here close my brief synopsis, and will not say more than that to the end of our tour we had constant reason to be satisfied with having commenced it. Our last visit was to Niagara Falls, which we viewed from both the Ameri can and Canadian sides. The description has been made by the wondering poets of all ages since it became known to the world, and I will not attempt to improve upon what has been said. Yet the commercial importance of the great cataract has taken a grand start with the appli cation of hydraulic electricity, and its powerful magnifi cence made it a happily chosen ending to our tour. May the combined waters that ripple friendly together after such gigantic tossing, be a peaceful lesson to all humanity and to the republics of this, our American continent. Arthur S. H. Hitchings. AU RE VOIR. On Board the "Koenigin Luise," New York, fuly 29, 1897. YALE UNIVERSITY LIBRARY 3 9002 08867 6946