VOL. 47 THE T tllwr. SPEECH OF HON. JOHN SCOTT, OF I'ENNSYL VAN lA, 11: .`i.,:nate of the U. S., _''.larch 15, 1872. The Senate hexing under consideration the bill (11. lt. No. 173) to repeal the duties on salt— Mr. SCOTT slid : Mr: PnEeauttrr Having presented an amendment putting tea and coffee on the free liar, which, as the honorable Senator from Ohio. the chairman of the Finance Committee states, presents the turning point to be decided up:)n the bill now be ibre the Senate, I clan indulgence while I submit the views which prompt me to offer that amendment and ask its adoption. The exhibit of our national finances made by the Secretary of the Treasury de monstrates that unless the current of busi ness is disturbed by same unforeseen cause we can in the next fiscal year pay 850,- 000,000 toward the extinction of our na tional debt, and reduce taxation to an amount ranging between thirty-six and fifty million dollars. To be more exact upun this subject. let me submit a few fig ures. In the `4.3 2er et a ry's annual report the receipts arc estimated for the fiscal year ending June 30, 1873, at $359.000,000. The extraordinary increase of imports has warranted en addition to the estimate of receipts from customs of at least $6,000,- 000. Let me state at this point the exact increase over the estimate of the customs to show that there is very little danger to be apprehended of the deficit of which warning has been given in the House of Representatives, and which has been so satisfactorily wet by the chairman of the Committee on Finance. The Secretary of the Treasury, in his estimates t; .1. the year ending June 30, 1872, placed the receipts from customs at $175,000,000. For the eight months that have passed of that fiscal year, the receipts, according to a table furnisted by the Com missioner of Customs, arc $145,453.170, making a monthly average of $18,181,000. Ii that average be maintained during the year, the recipes from customs, instead of $175,000,000, as estimated, will be $218,- 27t),000, or an excess of $43,000,000 over the estimate. The expenditures, including $50,000,- 000 to be paid to the sinking fund and upon the national debt, are estimated at $323,025,773.99, which would wake the excess of - receipts over expenditures $42,- 97.1.'22601. 1 have added, however, only $6,000,000 to the excess for customs. The chairman has added, if I recollect his figures aright, $12,000,000 to the estimate of t)le Secretary of the Treasury. Yin SHERMAN. Fourteen millions. Mr. SCOTT. Ho has added $14,000,- 000, which would be $8,000,000 over the estimate I have made. These 88,000,000 added would make an excess of $50,074,- 000. I think the estimate of the chair man of the committee is certainly not ex cessive in view of the experience of the current year. The question presented, then, is in what manner is this reduction or $50,000,000 commendations of the liead of our finances are certainly first entitled to our consider ation and respect. What are they ? First he says "In the suggestions I have the honor to make in reference to the reduction of taxes, I keep in view two important facts : first, that the ability of the nation to pay at least 150,000,000 annually of the principal of the public debt shall not be impaired ; and secondly, in the change of the revenue system, no violence shall be done to the business interests of the country." He proceeds : *lt is practicable to dispense with all revenue from internal sources, except that derived from stamps, spirits, tobacco, and malt liquors. These sources should furnish for the year 1572-73 a rev enue. of about $110,000,000, making a reduction of taxes of $16,000,000.- Showing, then, an estimate of customs which would' authorize a reduction of $20,- 000,000 more, making in all $36,000,000, and which, under the increased receipts from customs, will be safely placed at $5O,- , 000,000. He proceeds to "recommend to the consideration of Congress the reduc tion of the duties on salt to the extent of fifty per cent., the duty on bituminous coal to fifty cents a ton, the reduction of the duty on raw hides and skins, and the re moval of all duties from a large class of articles produced in other countries which enter into dm arts and manufactures of this cJuntry and which are not produced in the United States, and the revenue from which is inconsiderable." He further states : "The removal of duties from a lorge class of ar ticles used in manufactures, and the reduction of the duties upon coal, furnish en opportunity for a moderate decrease of the rates of duties upon those products, whose cost will be diminished by these changes While nothing as the consequence of legislation could be more disastrous to the public prosperity than a policy which should destroy or seriously disturb the manufacturing interests of the country, it is still possible, by wise and moderate changes, adapted to the condition of business and labor, to reduce the rates of duties with benefit to every class of people." We here have the Secretary's policy, which may be summarized thus : 1. The abolition of all internal taxes but these ou stamps, spirits, malt liquors, and tobacco. 2. A reduction of duties on ecal,_ salt, raw hides and skins. 3. An enlirgement of the free list to embrace raw materials not produced in the United States. 4. A moderate decrease of duties on pro ducts whose cost will be diminished by these changes. The first three of these recommendations are specific or so nearly so as to leave little room for diversity of opinion in their ap plication. The fourth leaves room for some difference of opinion in its application. Let us see how much of the proposed re duction will be effected by carrying out the specific recommendations: first, inter nal taxes $16,000,000; second, coal redu ced to fifty cents per ton would cause a re duction of $322,882; third, salt as redu ced by the bill will make a reduction of $558,050 OS; fourth, raw hides and skins at the rate reported would make a reduc tion of $671.589 09; fifth, the free list $3,137,030 87. • There have been a few changes made by the committee since I made these esti mates, which perhaps.vary the amount on the free list t, some small extent.. These estimates are lased upon the imparts fur the year ending June 30, 1871, and they make an a g gregate reducti )n $20,719,- 552 01. Now, the bill reported by the committee proposes to reduce duties, in addition to those specifically recommended by the Secretary, on the following articles, namely : by section one, on tea, coffee, rice, potatoes, lumber, and furniture, fruit and ornamental trees, garden seeds, lead, ginger, twine, hemp-yarn, roots, cocoa, and iron-wire cloth; by section two, ten per cent. of' the existing duties is taken off the articles therein named, being chiefly textile and metallic productions, aggregating a reduction of $8,274,716 51, as estimated The 'Huntingdon 4 ournal. upon the basis of the imports for the year ending June 30, 1871. The whole reduc tion of duties, as proposed by the bill. is $22,507,353 26. It to these you add the proposed reduction of internal taxes, amounting to $16,000,000, the total re duction will be 838,507,353 26. Take the whole proposed reduction of duties, 822.507,353 26, and deduct from it the proposed free list, $3,137,030 87, the pro posed reduction on tea and coffee, $7,646,- 588 29, and $11,723,73.1 10 will be what is proposed to be taken from the present duties upon articles produced in our own country. This takes nearly one-fourth of the proposed reduction from duties on ar ticles which come in competition with the industries of our own people, and, as will be observed by examining the articles enu merated in sections one and two, they are not largely made up of those which would come within the recommendations of the Secretary of the Treasury, namely, those whose cost of production would decrease by the reduction of duty upon coal and raw materials. These modifications affect alike the manufacturer, the agriCulturist, the miner, and all dependent upon them. Coal, salt, rice, potatoes, hides, lumber, furniture, lead, iron, cotton, wool, fruit trees, garden seeds, &e., all come in for reduction. Agreeing with the purpose of the Com mittee on Finances to pay $50,000,000 annually of the debt, and at the same time reduce taxes and duties to as large an amount as safety will permit, I feel con strained at this point to differ frbm the majority of the committee as to the mode adopted in effecting that reduction. Presuming that the reduction of inter nal taxes to the amount of $16,000,000 will be added to the bill, (and it may as well go into this bill as into a separate one; we have the power to add it as'well as any other amendment), the reduction stops at $38,000,000. Now, instead of reducing duties on tea and coffee, add them to the free list, and you have $12,000,000 more, ($7,000,000 having been computed as re duction, and thi whole revenue from them for 1871 being $19,000,000), which, if the other feature, of the bill stand, would carry the reduction to $50,000,00). . , But there are features of the bill which ought not to stand, and there are other internal taxes which we can repeal if we • do not permit those features to remain. What are they ? Strikeout the reduction of duties made by the first and second see lions, and, instead thereof, make tea and coffee free, reducing the revenue $19,- 000,000 ; permit the free list to stand as proposed, $3,137,030 ; repeal stamp duties $16,000,000 more, and you have an ag gregate of $54,137,030. But in this last proposed reduction, $16,000,000 of inter nal revenue taxes named by the Secretary of the Treasury, are included $6,500,000 of income tax, which he t.etimates would remain over uncollected and be received in the fiscal year ending June 30, 1873; and as we can now entertain no hope of relief from that hated incubus, which I trust will never more be renewed, the reduction for that year would be less than $6,500,- 000, on the Secretary's assumption that it C n Sl " g e Y e i n hi l ' e qaia ann collected into the next. The repeal of these inter nal taxes it may safely be presumed will reduce the estimated expenditures in col lecting them at least $1,500,000. I ob serve that-the chairman put it at $2,500,- 000 or $2,000,000, and I am below his estimate. This, and the $6,500,000 of income tax, will reduce the $54,137,030 to $46,137.030. If it still be insisted that the Secretary's recommendation as to coal, salt, and hides be adhered to, they make them $1,582,521, and you still .have a reduction of $47,719,551, or nearly three million dollars less than I have shown, we may with safety reduce the revenue. Two modes are thus proposed. The one is first to reduce the duties on tea and coffee about one third of what they are at present; second, reduce the present duties on manufactures, ten per cent.; third, `adopt the free list; and fourth, abolish $16;000,000 of internal revenue taxes. which, as I have already shown, would ac tually be a reduction of only $10,000,000, if the people pay the arreurages of $6.000,- 000 of income tax. The other mode is to wake tea and coffee free, repeal all inter nal taxes except those on spirits, malt liq uors, and tobacco, let the proposed free list remain, and do not otherwise change existing duties. This substantially brings before the Senate the two views of this question which have been presented by the country ; and as the people themselves have sent us their views of it, instead of endeavoring to place them in any new form, I adopt the two forms in which they come before us in the petitions from opposite sources. In the first place, who are complaining of these duties upon manufactures? Are they our own people to any large degree ? The petitions that have been presented against them are principally headed thus : “Itemonstrance of the American Free-Trade League against the repeal of the duties on tea and coffee.” I use the form of one presented by the Senator from Illinois, [Mr. Trumbull,] either at the present or the last session. What do they say "To the uenate and House of Representatives of Congress assembled: "The American Free-Trade League respectfully remonstrate against the repeal of the duties on tea and coffee, and would represent to your honorable bodies that such repeal woulu deprive the Govern ment of over thirteen million dollars of revenue"— This was adapted to the previous year ; it is now $19,000,0 )0— "axd therefore render difficult the repeal of other far more burdensome duties which yield but little revenue to the Government at a very much heavier cost to the people. "That the true object oi revenue reform is not to repeal duties which are levied for revenue, and un der which all the money taken from the people is received by the Government, and contributes to pay those expenses which the people must in some form bear, but to reform the tariff so as to repeal those duties which yield little revenue, and tax the people heavily to support favored monopolies. "The League respectfully represents that the money which is taken from the people by the lg - ties on tea and coffee is received by the Govern ment, but that the duties on iron, lumber, blank ets. coal, salt, take many millions from the people, of which only a very small portion is received by the Treasury, the larger part going as tribute to favored manufacturers." They proceed to illustrate by examples and figuree, and then close with this prayer : "Your remonstrance would further show that if the duties on carpets, pig and refined iron, thread, common window glass, paint, lumber, blankets, clothing, leather, were repealed, the loss to the rev enue would be about the sameas the loss occasioned by the repeal of the duties on tea and coffee ; but the caving to the people would be in theme of tea and coffee only $13,000,000 ; whereas the repeal of the duties on pig and refined iron alone would re lieve them from a burden of over seventy-Eve million dollars." Now I ask attention to this : rheteagle,therefraVtht your honor ablebodeswill now abolish duties"— not reduce them— "which keep up grievious monopolies, that oppress the people, and violate every principle of right and justice, and leave undisturbed equitable duties, like those upon tea and coffee." Here it is asserted that the duties upon tea and coffee, which we do not produce, are equitable, while those on carpets, pig and refined iron, thread, common window glass, paint, lumber, blankets, clothing, and leather, all of which we do produce, vio late every principle of right and justice. Thus I have given the Free-Trade League the benefit of its own statement of the ease ; and before proceeding to a state. went of the other side of the question I wish to advert to the fact that it is well understood that this Free-Trade League, although called an American Free-Trade League, is composed principally of the rep resentatives of the manufacturing hcuses of Great Britain, located in New York, is sustained by their money, and that these petitions come here at their instance. Mr. MORRILL, of Vermont. And at their expense. Mr. SCOTT. And at their expense, as suggested by my friend from Vermont. I now take up a petition which comes from the working people of the country; and, sir, they have come here in large numbers. I have presented them, I be lieve without exception, every morning of the session since the holidays in regular course as they came by mail. They say : “The undersigned, workers in -, and citizens of -, in the state of -, respectfully remon strate against a change of the existing tariff laws abating or abolishing duties upon such articles as nre successfully produced in this country. We are advised and believe that such action will be urged upon your honorable bodies, by the English cap italists who maintain the Free-Trade League.” Showing that the workingmen of this country understand from whence the call for free trade comes : '•We respectfully pray for the repeal of all duties upon tea. coffee, and such other articles of necessi ty or comfort as caulk be produced in the United States; and toe further pray that as Representa tives of tho American people, you trill Inks care that duties shall ho so adjusted as to encourage and defend every home industry. and to fuster . thu honor and interests of the American laborer." There are the opposite views presented by fbreign capital and American labor, and it is between these two elements that the real contest exists which we are to decide. The former asks you to tax tea and coffee, now necessaries upon every man's table, and to abolish the duties upon those arti cles named by them, in the production and manufacture of which American labor is employed at good wages. The latter ask 'you to relieve them from the tax upon their daily sustenance, and to continue those duties under the operation of which our Government maintained its life in war, and is paying its debt in peace; our peo ple Snd employment, good wages, and pros perity, and we see the country developing its resources, opening new farms, building new cities, gathering new treasures from the mine, stretching out its iron highways and binding the hitherto widely separated portions of the land by new ties of social and commercial intercourse. Foreign capital sees plainly that the con tinuance of our present system for the half of another generation, the permanent es tablishment of American manufactures, with educated, intelligent labor to conduct them, demanding and receiving, as intelli gent workmen will, a Lair proportionate dividend of the product of capital and la hnr_ meat lead einVugpiMitt concede au equal reward to labor there, or that labor will leave and come here. Eith er result is a triumph for and a blessing to the laborer, and hence the anxiety of Eu ropean manufacturers to command our mar kets, to drain us of our capital, and to close our manufactories. I do not propose to enter into any ex tended discussion of the theories of politi cal economy, satisfied as I am that the true study to engage in now is that of the has presented to us by the employer and em ployed, rather than the speculations of Ricardo, Malthus, Adam smith, Stuart Mill. If we so legislate as to secure mod erate but sure returns to capital, steady employment, adequate pay, a comfortable home, and healthy food to the operative and good schools for his children, to so de velop our resources that our own people can enjoy the largest blessings of peace, and other peoples can see that if our rights are disregarded we are so self-reliant in our own supplies of all the c.s.,:ntial for national derense and individual comfort that we will never be long unprepared for war; if we accomplish these results, we ne(ol not be disturbed as to whether our statutes do or do not conform to the dog mas of those philosophic dreamers, who, in the worship of their own theories, forget their toiling fellow creatures. Attempt to disguise it as you may, sin cere as those may be who advocate the con trary theory, the demand for a reduction of duties is a demand for a diminution of the wages of labor. We must meet it as s-.ch. It comes at a time when of all others those now charged with the interests of the American people should ponder well before they take any stap to the prejudice of free labor. We are asked to abandon the system that carried us safely through that gigantic struggle which became at last a Titan's contest, over which a wit nessing world held its breath as the desti ny of milieus of laboring men hung upon the result. Slavery was simple in its political or eco nomic aspect, saying nothing of its moral or religions bearings, a labor question. Shall capital own or hire labor? Shall la bor have a voice in settling its own wages, or shall capital take all that labor earns and give such a living to the toiler as it in its selfishness may see proper ? This was really the underlying question of the re bellion. The slaveholders of the South, keeping up what could be maintained of feudal and baronial prestige and privileges in a republican country, by holding large landed estates and numerous slaves upon them, claimed not simply to preserve those privileges which the law had really guar antied to them, but to spread that system over all the Territories, and thus secure to capital the control of labor and its wages throughout the nation. That claim was buried beneath the ruins of the rebellion. It lies under the bodies of thousands of free workingmen of the North, who resist ed its impious war upon cur Governuient and sealed a new covenant for the rights of labor with their blood. That struggle having settled that in this Republic capital should not own labor, the labor question now comes up in another form, and, let it be disguised as it may, its true form when fairly presented is this: will American people employ and send their money to Europe to pay for foreign labor at lower prices, engaged in making products which we can as well produce at home, or will they employ and pay for the labor of our own citizens at the fair com pensatory prices which are fixed by the mutual agreement of the intelligent, inde pendent workingman and his employer? The form in which the free-traders con ceal the ugly part of the proposition varies from this, but it covers the same idea. For ' instance, in the life of Richard Cobden, page 88, it is stated thus: HUNTINGDON, PA., MARCH 27, 1872 "The cardinal principles of free trade, so applied to and incorporatA in financial legislation, are that taxes, where necessary, should be laid on for pure purposes of revenue atone ; that in their re mission, in the choice of those to be remitted, the interests of consumers are paramount .d alone to be consulted: and that no tax should be levied in the supposed interest of producers, that fur two reasons, each one being all sufficient to bear the conclusion common to them both t Crst, that no protective tax does benefit the producer, and even if it did, he—representing the minority—has no right to enjoy it at the expense of the majority, namely, the consumers.** Ido not stop to discuss the announce ment that "no protective tax does benefit the producer." I leave that to those rev enue reformers who think its whole design is to benefit the producer, and that the re sult arc such as to justify them in calling them hard names, and declaiming against them as •'l3loated monopolists." Neither do I stop to discuss the other theory that the interests of the prAncers are to be ut terly ignored. But, in passing, I [night perhaps appropriately quote the conclusions of a body of business men equal in intelli gence and practical knowledge to any vol untary assembly that. convenes in this coun try, that of the National Board of Trade, held in St. Louis, in December, 1871. They resolved, after long debate upon the question— "That in the revhliou of the taritr, the cost of pro:leer:ion in this country is a proper s•.tbject for cousideratio-a." And this, too, notwithstanding one of the eminent advocates of free trade m that body, hailing from New England, had in the diseuS!ion seriously complained of the duty on pig iron, alleging that "somebody pays it to somebody else in this country, in order to maintain pig iron wages at two dollars a day." That, gentleman had nev er traveled very much through the regions where pig iron is made, or if he had kept either ears or eyes open he would not have thought it much of a boon to pay those laborers two dollarsper day. They, to quote the language of another free4rade theorist, "can do better." Having quoted a writer in old England on free tradc,let nnc 3161) quote one in New England. Professor Walker, editor of The Science of Wealth, written in the interest, of free trade, page 93, says : .At present iron eannot be so cheaply and ex tensive!y produced in the United States as to ex clude the foreign article. Why is this? We anmer negatively : "FirEt, not that we do not know how to make it" a a r: 'Second, not that we have not euilich7t eapi• "Third. not that n•c have not the best natural facilities for the nianufazture." 0 0 0 "Fourth, not that the inanufnettter here lacks a good natural protection." After amplifying each of these negative Iswers, he . then Proceeds "Why, then, with all these natural facilities, do we not produce all our iron without governmental protection? There is but one reason. We can d o better. We can obtain our iron with lee labor than by making it.- After stating that labor in Europe costs fifty per cent. less than in this country and capital can be had at fifty per cent. less interest, he concludes : "Thus it is that our unequaled natural advan tages arising from cheap virgin lands render it un profitable for us to make iron or engage in many other kinds of manufactures." The plain English of all this is, "We ought to buy all our iron and all other they pay less there for labor t h anwe 3 at home ; we ought. to be agriculturists ex clusively, because our cheap land enables us to raise grains at a low rate, and with our wheat we ought to pay for all other products we need at the prices that cheap labor in Europe will give them to us." Who agrees to these propositions ? I deny the soundness of the position. I af firm that the true interests of our country requires that we should manufacture all ar ticles that we have the natural facilities fur producing, that -the labor employed should be well paid, and that we should place such duty on foreign manufactures coming in competition with our own as will prevent them from driving our own out of the market., thereby depriving the American laborer of remunerative employ ment. I do not stop here to repeat the argu ments about the home markets that are furnished by domestic maneactories, the advantages of a diversified industry, the effect of competition, the national inde pendence and security in case of war, the effect of sending abroad annually for for eign products more bullion than our mines produce, and the numerous quest:ons that at once suggests themselves and that have become sofamiliar to the American people by discussion from the time of Hamilton's report in 1791, down to the present hour. All these have often been treated as if they concerned the capitalists alone, and the proprietors of mills and forges have been thrust into the fore ground as the only interested persons. There are but a few of those interested, and their interest is not so great as that of the laborer, as has been abundantly shown and testified be fore the Finance Committee Let us look for a moment at the differ ence between American and European wages. That.' may not quote entirely from sources that may be charged with protective leanings; I insert here a table compiled from the report of Hon. D. A. Wells, special Commissioner of the Reve nue, or 1868: • Excess of wages paid laborers in the United States in 1867 over those paid ease laborers in Great Britain in 1865. Ship-builders 47.58 Paper mills Silk hats SO. Glass-works Leather Gas-works Saws Fire arms. Edge tools, Foundries. Rolling mill: Sugmr:ivfineries WtTrated Woolen-wills Cotton-mills Average on sixteen occupations, 5:,.56 per cent. Thus it will be seen that there was an average of 55.56 per cent. of excess paid to the same classes of • laborers ih this country in 1867 over what was paid in 1866 in Great Britain to the same classes. From the same report I take the aver age duties paid on imports for the years ranging from 1861 to 1868, as follows : 1862 1803 33.20 1861 37.20 1865 1866 1867 • 1868 47.86 Average dut) 90.43 per cent. Thus showing that the average duties upon imports in this country from 1862 1 to 1868 were but 40.43 per cent. while we paid an excess of 55.56 of wages to our laborers over those of Great Britain. Mr. MORTON. I ask the Senator if he has any estimate, in connection with that proposition, of the cost of transportation ? Mr. SCOTT. I have not an estimate of the cost of transportation, for the reason that that would vary on each separate pro duct, depending upon bulk, weight, Ste., and I suppose it would bs very difficult to Coming down nearer to the present time I quote on this subject from a paper edi ted by a most accurate and accomplished statisician, Mr. Benjamin Bannan, of the Miners' Journal, Pottsville, Pennsylvania, as follows : "That the protective system is really the work ingman's question, is apparent from the following comparative table of wages per day in a western mill in 1811, and in England, gold being taken at 112 : e!.._,?-5 - a -- & - -.E.:i i ~.-,.. .!...-, ~.5 rz ? j r . F:1 E i il F- i:i 1 : i ii :i 74 ' i 1 71 4 4 . 1 ; 4 .:i. a 2 `,',l :i 1 1:: .. .. F 1 "Titus wages of the, rsecir ins highest, lowest, and average rates are from two to three and a half times in gold those paid in England. The few lads, less than sixteen to eighteen in American mills—and there arc ten boys in Eritish mills to one in nn American—CM-II no mach as many skill ed English workmen after seven years' service. Many of the workmen in the mills of this country. in 1809 paid income tax to the Government, thus showing their enrningi ',everted Xl.OOO per an- " The comparlson of wages is vveu more striking if given by the ton. then by the day. Thus pud dler, received, in the western mill quoted, six dol lars per ton, gold, against ti , 2 ::7, the average price in England. and this gain to the foreign manufac tures of 83 03 per ton on this single item, repre senting less than one-third the cost of wages per ton, is more than many of onr manufaetnrers have asked as their profit on a ton of finished iron. The average wages, at the close of 1871, in the item of puddling, on the Atlantic coast of the United States and in England, were ; United States, currency, $6 75: gold, 05 18 ; gold at 110; England. gold, $2 .12; excess in the United States, 02 76: and this after an advance in England of twenty to twenty-five per cent. in the rate of wages during the year." The Committee on Finance have been hearing the statements of practical men, capitalists and laborers, within the last two months, and the testimony is uniform from them all that the point of contest be tween the manufacturers of other countries and our own lies in the higher wages paid here; that a reduction of duty simply means a reduction of the wages of labor. Nor is this confined to one locality or to one industry. It will no longer be said with truth that protection is a Pennsylva „ rrUty to put money into tue pockets of Fenn. syl;ania . monopolists. The cultivators of rice from Georgia and the Carolinas come to us and say, "We can no longer sell rice at ante-war prices, for our labor now costs us more than it did before the freedmen worked for warts; we want protection for that labor by keeping up the duties." Virginia, too, comes, and hear what her citizens say. I read from "the petition of a committee of manufacturers of sumac of the State of Virginia," asking that instead of putting that article on the free list, as was at first proposed by the reported bill, "an additional duty of one cent per pound be imposed upon it." They proceed to give their reasons, and I ask candid Con sideration for the arguments presentedfrom south of Mason and — Dixson's line in favor of free labor as well as for the facts they state, which are better than reams of spec ulations. They say, after the introduc tory words of their petition : "Before the war, the consumption of domestic smoke was inconsiderable, the impression prevail big extensively that the American was inferior to the imported article. This false impression is justly to be attributed to the then imperf et mode of grinding and preparing the domestic article, the low price at which the foreign article could be purchased forbidding the outlay for the necessary machinery to prepare sumac at home. The war brought the necessity for our making use of our native product, and the advancing premium on gold acted as a protcetivo tariff. The impression that American sumac was inferior to the foreign was demonstrated to he erroneous. The trade be gan to thrive; hundreds of thousands of dollar e, before sent abroad to enrich the foreign producer, were invested in the developetnent of oar own re sources. " With the decline of gold, however, this trade has for some time past languished, until at pret.ent there is ust apprehension that it will-wholly cease to be remunerative. Many of the largest manu facturers are ready to sell out Leir mills, and giro attention to sonic remunerative branch of industry. Your petitioners, therefore, respectfully urge that an additional duty of one cent per pound be placed on foreign Sumac, fur the following remoun “1. By a fair. though moderate protection, the machinery, already much improved by the circum stances already named, may be justly expected to produce an artiste on our soil in every respect equal, for its various purposes in the useful arts, to any imported from Europe. "2. The production of the raw material' at home, comparatively trifling before the war, but now teaching the amount of more than fifteen thousand tons annually, or more than one-half of our whole estimated comlumption. gives occupancy ton very large number of freedmen, and of the poorest clam of white citizens, chiefly in Virginia,' • - - Now conies the reason from Virginia : "This occupancy will entirely fail them if the duty be removed, as the cheaper la:or in southern Europe will secure the sending in of large quanti ties to this country. "3. The consumer will not be injured, but bene fited, by our protection, for the competition of the American article, under the skill we have used it its preparation, has alreadyeaused a decline in the twice of the foreign. The want of the protection we ask will again raise its value." • Here are facts which those who cry 'monopoly" ought to consider: "4. Tho protective tariff we ask is by no means large, in consideration of its being the only possi ble means of our improving and developing this important and growing branch of American indus try." Brave words, these, and sound argu ments, from the Old Dominion, the moth er of Presidents and statesmen. She has breathed the air of freedom for seven years, and now distinctly avows that her free la bor shall not be deprived of employment and fair wages by the cheaper .work of the sumac-gatherers of Sicily and Italy. This is not the voice only of her mantLacturers, for her Legislature has recently passed re solutions asking the same thing. That is my information. Missouri, too, and Illinois, Utah and Colorado, cry out in tones which wilt here after give a new note to those who have heretofore played the tree-trade hurdy-gur dy upon the one string and to the one note of "pig iron." "Pig iron" sounding fa miliarly as it does now not only in Penn sylvania, but in Maryland, Ohio, Indiana, Tennessee, Georgia, Alabama, Michigan, Wisconsin, Illinois, and Missouri, has found its twin "pig," and "pi. , lead' will resound around the Iron "pig and 263.08 Pilot Knob in Missouri, will be heard amid the clangor of the sixty-five thousand tons of ' metal and the ninety-one thous and tons of rails last year produced in Ill inois, will keep on its westward way and echo amid the Rocky mountains, in Color ado, Utah, and Nevada, where the hardy miners protest against their galena being thrown out of ahome market by low du ties on "pig lead." Wisconsin and Michigan, too, are heard, and the murmur of their pine forests brings us the same petition that conies from the lowly sumac bushes of Virginia, "Protect our lumber from the low wages that pre vail - across the border." But it is not only in the rough work of the forest, the forge, and the mine that labor is asking for protection. New Jer sey came with ther samples of silk, and from the mouths of the laborers whose skill had woven them we learned the same troth that was urged by her other sons who are skillful in the manufacture of glass and of earthenware, that the choice presented to us was to receive and pay fur the products of the cheap _ and ionorant labor of foreign lands or to protect the e.er--rartd-arrtt-tir- telligent labor of our own. We had before us, Mr. President, in that committee, - a laborer who learned his trade in England, who worked at Maccles field, and who, came- to Patterson, New Jersey, and is now there engaged in the manufacture of silk. I wish that the man ner of his testimony could he witnessed and the whole matter of it heard before this whole Senate. I was struck with the man's intelligence, with his practical knowledge, and with his frankness, and took down a few detached sentences as he went on giving his plain,. unvarnished story. What were they? He said: "The wages at Macclesfield, where I worked, were : weavers averaged weekly in 182 d 4s. fid ; girls, 2s. 8:1.; my own girl got that then In ratterson, N. J., she now receives six dollars per week. I would have then been better pleased to send her to sehool, but I could not. Our poorest meals here would have Leen sumptuous fare there, We seldom had animal food, awl worked fifty-eight hours per week. Prosperous times in England make it better now. Young women get now per week five shillings: women t nine to ten shillings; men now get fifteen to sixteen shillings. My savings here are equal to what my earnings were in England, afterenjoying here three times the comforts we got there." This is the story, Ms. President; and we are asked- Mr. EDMUNDS. Will my friend per mit me on that point to read to the Senate a condensed statement cf one of England's most celebrated philosophers and artists, Mr. John Ruskin, in one of the recent lectures upon the topic of English labor that he delivered there, which is perfectly opposite to what my friend is saying : "Though England is deafened with spinning wheels, her people have not clothes; though she is black with the digging of fuel, tbey die of cold; and though she has sad her soul for they die of hunger." Mr. SCOTT. I thank the Senator from Vermont for giving me the opposite quo tation. It lies just in that, Mr. President. This man tells the whole story of our coun try—better wages, and in their train edu cation, enjoyment of the comforts of life, self-respect, manhood, good citizenship. Here lies the secret of that vast volume of immigration constantly pouring from the OI ii tflevreig: jntn ~ne weekly wages of the manufactories and workshops of this country burdens our foreign mails, and cause the ocean cable to throb with the glad news to the loved ones left behind that money can be saved to bring them here to this better laud fur the laborer. This man was the representative of an industry whose history in England we might follow with interest and profit. As we are asked by the petitions from which I have quoted, and to some extent by the bill which is reported, to strika down all such industries by letting itt the products of cheap labor, let me quote, at the risk of being tedious, how England acted when she was nursing the same industry. I have been struck in reading a book, not written upon political, economy, but'to give the history, political social, and religious of that remarkable people, the Huguenots, with the development of various inustries introduced by them into England. I re fer now to ttis particular industry in con nection with the testimony of this silk weaver. I read from pale 256 of Smiles' History of the Huguenots : Another writer, Mr. Samuel Fortrey. describing the international trade between England and France in 1863, set forth the great disadvantages at which the English manufacturers were then placed, and bow seriously the balance of trade was against England. Goods to the amount of above two and a half millions sterling wore annually im ported from France, whereas the value of English goods imported thither did not amount to a mil lion." "The chief manufactures among us at this day." said he, "are only woolen ulothes, woolen stuffs of various sorts, stockings, ribandings, and perhaps some few silk stuffs, and some other small things, scarce worth the naming ; and those al ready mentioned are so decayed and adulterated that they are almost out of esteem both at home and abroad." Of the eff•Jrts to establish the silk in. dostry, we have this 4ccount : "The English Government had long envied France her possession of the silk manufacture, which gave employment to a large number of her people and lea. a great source of wealth to the country. An attempt was made in the reign of Elizabeth to introduce the manufacture in Eng land, and it was repeated in the reign of Jam. I. The king issued instructions to the deputy lieu tenants of counties that they should require the landholders to purchase and plant mulberry trees for the feeding of silkworms: and for tyigmf, nno to one Illialn Mat lenge to print a book of instructions for their guidance. It appears that M. de Verton, Shear de la Forest, commissioned by tho king, traveled all over the midland and eastern counties selling mul berry trees at a low fixed price (six shillings the hundred) and giving directions as to their cultiva tion. The corporation of the city of London also encouraged the first attempts at introducing the manufacture ; and we find from their records that in 16119 they admitted to the freedom of the city one Robert Therie, of Thierry, on account of his skill and inventions, and as 'being the first in England who bath made stuffs of silks, the which was mlttle by the silkworms nourished here in Eng land: In a note the manner in which England treated foreigners who came to carry on manufictures already established is thus given in contrast with that : "The corporation were not alike liberol in other cases; for we find them, in the same year in which they admitted Thierry a freeman and citizen, ex pelling one John Cassell 'for using the trade of art of twisting worsted yarn, in Bartholomew Within, in the liberties of the city, ho being no freeman, but a stranger born, contrary to the custom of the city. It is therefore thought fit, and so ordered by this court, that Mr. Chamberlain shall forth with shut un the shop windows of the said John Cassell's shop, and shall remove within a mo ith all his goods, furniture, &c., to other places, which he promised to do." England encouraged the establishment of the manufacture which she had not, but when a foreigner came to establish one that she had, she drove him out and shut up his shop. How did she encourage hers ? I read from page 260 : To protect the English manufactures, the import duties on French silks were at first trebled. In 11192, five years after the revocation, the inanufae tners of lustrings and alamotle silks were incorpo rated by charter, under the name of the Royal Lustring Company ; shortly after which they ob tained from Parliament an act entirely prohibiting the importation of foreign goods of like sorts. Strange to say, one of the grounds on which they claimed this degree of protection was that the man ufacture of these articles in England had now reached a greater degree of perfection than attain ed by foreigners, a reason which ought to have ren dered them independent of all legislative inter- f:renco in their favor. Certain it is, however, that, by the end of the century, the French manufac tures in England were not only able to supply the whole of the English demand, but to export considerable quantities of their ,goods to those countries which France had formerly supplied." There is the doctrine of protection and its results, a home market supplied and a surplus for export. Thus I might proceed to enumerate the many new industries the Huguenots introduced in England, the histories of which all speak in the same language; but I forbear. Having howev er, introduced the subject with a quotation from Mr. Well's report, let me close it with one from an equally eminent free trader, showing not only his discernment of the truth that it is a labor question we are dealing with, but that at this peculiar juncture of our affairs we cannot with safe ty or justice to the industrial interests of the country reduce our tariff duties. I quote from the speech of Mr. Opdyke. of New York, in the proceedings of the National Board of Trade, held in St. Louis in December last, in which he said : " It is not my purpose to occupy the attention of the Load lint a few moments in stating my general views on this subject. It is proper that I eLould declare, at the of free . tisle as those of an * y other citizen of the limited Staten. I believe, after a very thorough examination of the whole theory and pntet.ce of protection, that it is a fallacy, and injurious to the material interests of any country which adopt it. [AppLose.) I believe its ulti mate effect be exprevsed in the aphorism, to misdirect and waste the productive energies of the country that adopts the policy. •`Atter laving'snada that clear, positive and sincere de claration, I desire to add that I am, the the present, entire ly opposed to any change in the mriff. There may seem to be a contradiction in that, but to my mind both posi e, tions are entirely sound. As has been said by many mem bers of this body. including myself, the present condition of our currency is an offset to almost any tariff of duties levied by our Government, as I will explain in a very few words Ae I said before, and evinced by the enhanced cost of labor, or machinery, of raw material, and of everything in this country, the manufacturer cannot to-day product, his finished articles short of an increased cost of at least sixty per cent. over what they cost before the issue of our irre deemable piper money. The Importers, it class of which I hare always belonged myself until recently—the impor- , ter to-day can go abroad and buy .his manufactured pro ducts for gold. at the value of gold now, and, save the slightly increased coat of production, he can buy at the ea,oe cost virtually as before we adopted our paper-money currency. Ile brings his imports to our custom-houses and pays an average tlnty of fifty per cent. on the foreign cost in gold Both the cost abroad and the duty paid here are paid in gold. lie sells these COM7llo4iitiC3 for currency and takes his currency and buys the gold at feu or eleven Tor cent. premium, toper the foteign cost sad the duty. herefore, he can import to-day within ten per cont. as cheaply as he could import before the scar. The manu facturer, as I have said, cannot produce his finished com mdities short of an increased cost, of about sixty per cent You will readily p rceivr, therefore, that the con sequence is, that tide ho.ff of duties, overag.ing about flf.y per cent. is simply an onset la the die:ids - wage created by the present anomalous condition of our currency, or, rath er, the anomaly which extsts of forty or fifty per cent. difference between the appreciation of labor and the ap preciation of gold.' Mr. Opdyke has struck the fact to which the country must give heed, and it is this: gold went up during the war; labor went up with it; commodities went up also; but from two hundred and eighty-seven which it reached, gold has fallen to ten per cent. premium; commodities have fall en aLo ; but while gold and commodities have fallen, labor has not followed them in the fall; and, air, it will not follow them. What Mr. Opdyke calls "the anomaly which exists of forty or fifty per cent. difference between the appreciation of labor and the appreciation of gold" will continue so long as to lose its character as an anomaly. La bor will never recede to the figure at which it could be employed in former times, even when our currency shall be again upon a specie basis, unless we yield to the clamor for free trade, deluge our market with for eign goods, and thereby close our mann fral its accustomed into unaccustomed Clam:Ai, and — EcTmper it to accept employment at such wages as will enable capital to compete with the product of the labor of Europe. As the majority of our people are in one form or another laborers, and laborers for wages, such a calamity, if it come at all, cannot long endure where the ballot is universal. Education has accomplished too much for that. In all our northern States the free- school systems have been in operation for a generation ; in some longer. Last year Penns) lvania spent over eight million dol lars for educational purposes. The people in the southern States are demanding ed ucation. Property is, it is true, in many instances, rebelling against the tax neces sary to give it, but it will be given, and what will be the result ? Just what it is where the b Is of a generation ago are :lc= tive men on the theatre of life now. Their fathers may have gone to their daily toil for fifty cents a day, and retired at night to rest, passing the abodes of wealth and luxury and failing to reason out, or per haps not starting the inquiry, whether that halt' dollar was a fair divide of the product of their toil as between capital and labor. But the boy who, in 1836 or 1840, was a connuon,school scholar and has been read ing the daily newspaper ever since, is not only a worker but a thinker. If' he leaves his toil at the Battery in New York with his one dollar and a half or two dollars for his day's work in his pocket, and passes up Broadway to his home, as he goes by the Astor House or the Fifth Avenue Hotel, the thought strikes him that• there is, per haps, some adjustment needed of the rela tions between capital and labor when he reflects that his employer lives in the ho tel at an expense for himself alone of from five to ten dollars per d iy upon the products of that toil which maintains a family upon one dollar and a half or two dollars per day. I do not say the disparity is in itself a wrong to be remedied by our legislation, but it exists, and intelligent labor is con sidering it, and we must meet it; and how ? By paying such wages as will en live comfortably with his family, to clothe them decently, feed them plentifully, and furnish them books, and spare their labor in their younger years so that they may go to school and fit themselves for the du ties of citizenship and the struggle of life. In this way only can we make labor con tented and capital secure. Mr. President, this country cannot af ford cheap labor, for it implies want, pri vation, ignorance, and discontent. Our form of government demands, and it is our duty to pursue the policy which will se cure virtuous, educated, intelligent, useful. and contented citizens. I will not proceed to draw the contrast which exists between the well-fed. and comfortable laborer and his family here, and the ill-fed, and discon i tented laborer in European countries. The tables of wages I have given must suffice to suggest the consequences which follow from them. It is the labor question I present. It is not the interest of capital that are involv ed so much as those of labor. Capital can generally take care of itself. If a man ufactory stops t.-day, the product of past labor in the hands of the prop rietors wild enable them to live through the period of depression, but the work men have as a general rule no such dependence, and when the little store is gone, if new employment cannot be found, the alternative is distress or work at lower wages. You are asked then to reduce duties. What for, if not that foreign products may be imported at lower prices and take the place of domestic manufactures 7 Look at the results. The duty on pig iron was reduced two dollars per ton in July, 1870, going into effect January 1, 1871, and we were told "that will take that much off the NO. 13. price ; that much per ton will be saved to the consumer, and no longer go into the hands of pig iron monopolists. How was the prediction verified r The Secre tary of the Treasury tells us that in the first six months of 1871 there was an in crease in the importation of pig iron of one hundred and twenty per cent. as com pared with the first six months of 1870. The value of pig iron entered for consump tion from June 30, to December 31, 1870, was 81,211.322 ; from December 31, to July 1, 1871, $2,046,311. The tons im ported in 1870, were 157,215, and in eight months of 1871, 1h8,660. or more than for the whole year of 1870. Now, how as to price ? When that duly was reduced it was selling at from $3O to $32 or $32 to $34 per ton, according to quality. To day it is selling at from $4O to $42 and from $42 to $44 for the same qualities. Consult the markets in New York, Pittsburg, Philadel phia, and Boston—l have the quotations here, but will not take the time to read them—and you will find that the promised reduction of $2 a ton to the people has resulted in an in crease of from eight to ten dollars per ton. That decrease of duty prevented compet Con at home. Foreign demand put up the price. We could not supply the additional demane proach to free trade. That I put as — a practi cal answer to the allegation in the free traders petition that the people pay the additional duty to the manufacturers instead of into the Treasury. If that be the result of free trade the people will determine for themselves which they prefer—pig iron reduced by cam petition, or pig iron put up to $44 per ton by a free trade theory carried into practice by a reduction of the tariff. By reducing the duty $2 a ton, they succeeded in putting up the price from eight or ten dollars. ,This experience in pig iron, the scape-goat upon which free-traders pile all the sins of protection. serves as a practical refutation of their theories as to all protected interests. So I might proceed with coal. It is urged that the duty of $1 25 per ton on bituminous coal is added to the cost, and that every ton of either bit.prninous or anthracite consumed in the country pays thatadditional $1 25. Such is the allegation of this free-trade petition.. Lot me state now the enormity of the proposition. Look at the statistics in regard to coal. The Coal Register for 1871 shows that the annual product of 1870 was, anthracite sent to market, 15,368,437 tons; home consumption, 3,847,876 tons, making a total of 19,211,313 tons of an thracite. Of bituminous coal there were, with out giving the details, 14,968,40 tons making the whole product of coal for that year 34,179.- 778 tons. The free-traders argue that the people paid to the producers of coal, under the system of duties, about forty two million dol lars of tribute, urging that that duty of $1 25 was paid upon every ton. If this were so, there would bo reason for complaint; but let us see whether it is true or not. In the year that tariff bill went into effect-1866-6xingthe duty at $1 25, the average price ofbitaminous coal was $8 5 per ton in Boston, and of an• thracite in Philadelphia was $5 80 per ton. have before me the price of coal in New York on the 31st of January last, as follows "New YORK January 3l. "One hundred and twenty thousand tons of Scranton coal were sold at auction to day. The following prices obtained show a considerable de dine from last month lump coal 8,000 tons $3 35 to $3 42$ ; steamboat, 9000 tons at $3 70 to $3 85 ; grgte• ' 19,000 tons at $3 55 to $3 75; egg, MOH at .9345 to 93 60 ; stone, 50,000 tons at 94 05 to 94 17i ; chestnut, 16,000 tons at $3 30 to $3 45." The average price of bituminous coal in Boston for the year 1871 was $6 54. These figures speak for themselves as to the duty increasing prices. • • • • But I wish now to come to the other point about the $1 25 that is put on every ton. Mr. President, I have a rropospinn to make on strnject; There before me the coat of mining bituminous coal, and it is upon that the duty exists. The mining cost seventy cents per ton ; it takes twenty-five cents a ton to pay the other expenses of surperintendence, cars, fie., and twenty-five cents a ton is paid for royalty, making $1 20 as the cost of the coal at the mouth of the mine. It is now alleged that $1 25 is added to that for the produce 'upon every ton that is taken to market. Now, sir, if this Free-Trade League be the benevo lent organization which it pretends to be, if it wishes to relieve the people of this country from this oppressive taxon., ~ I feel authorized by the statements of responsible men who are in the bituminous coal business to say that every ton of bitum,naus coal mined in the Cumber land region, in the Broad Top reg on, in the Alleghany mountain region, in the valley of the Monongahela and the Ohio, will be deliv ered at the month of the mine to the Free- Trade League, if they take the contract for the whole of it for the year 1872, at $1 50 per ton. Take the cost of $l2O at the mouth of the mine ; take the cost of transportation, fix it at the market price at Philadelphia, at New York, at Boston, or at any other point, and no room is left for this $1 25 that these peti tions allege is paid by the consumers to the producers. The producers themselves will deliver the coal at the mouth of the mine at the price of $1 50 per ton, being just thirty cents over the cost of mining, royalty, and superintendence, leaving the rest for taxes, accidents, and contingencies. There is an op portunity for the Free-Trade League to give praitical effect to its alleged benevolent feel ings toward the tax-payers of this country. No I might go on with every article in this bill; but I will not do so. You may take them all up ; you may take up lumber, pig lead. rice, cotton, and woolens, and other articles that are in this bill, and upon . which it is proposed to reduce the .Ntaettirtladdia histo . ry Of all of them shows that the lions of duties, not excepting those on woolens, or cotton, or iron or steel, gives to the people to-day those products cheaper than they were in 1860, before the opening of the war. It is the competition that brings them down. What is there in this cry of "monopoly?" They want the duty off for the purpose of bringing in foreign goods. They say that or manu facturers have a monopoly, and that when they have monopoly they put up the price; but the theory which they advocate is to destroy our own manufactories, stop them, and give the foreign manufacturer a monopoly, thus making a distinction between American hu man nature and British human nature, casting VaYiltrettifiiptrderttlirtne 'Brant vaantr- -- facturer, which neither his nature nor his his tory has ever deserved. Sir, he entered into the war against free labor in this country. We fought against his Alabamas on the sea and the southern foe of free labor on the land, and having conquered on the sea and on the land, are we to surren der to him now and place the industries ofonr country at his mercy, rather than in the - hands of our own citizens, even if that were the choice ? Is it true that if American manufac turers commanded the market they would oppress and rob their fellow citizent? It is true that if the British manufacturer com mended the market he would be so benevolent as to give them goods at first cost? No, Mr. President, there is nothing in it but this question of labor. All o in' reds and protective, however ey may reason, re veal, if closely scrutinized, that the whole question is one of labor. I have here a very interesting letter written to me by a venerable correspondent on this subject, a man of larger intelligence and lib eral views, in which he gives his experience, from 1812 down to the present time, in regard to the various troubles and revulsions of 1837, 1847, and 1957. Without quoting him in fall, but glad to add the testimony of one who has lived an active business life for more than half a century to the knowledge of those who are now willing to let well enough alone, I adopt his language to express my own opinions. He says: "In the compromise act 0f1533 we had an illustration of the working of a percentage reduction to duties on 1.. ports and of its disastrous requite, and, Limy jurlAme.,,e should pause fur a long while before trying it over again. "Although our present tariff is in the main highly pro tective, it is not in any fair sows at all prohibit. ry. Our importations are larger than over belore, our laboring people and artisans aid! sorts have foil employment at good e.g.; they are well chid, well housed; their chil dren receiving the benefits of education, and within the r.rcle of my observation which in pretty large one,l do not find any who complain of the taxation paid under the tar iff. Hot pi esant it ra . ses too much revenue, increase the free list *dill fur are by . including in it tea and coffee, which are the necessar.ea, not the litxurleF,of the poor and the laboring. The new movememt for so-called revenue reformer* *tomes chiefly fromavowed free-tmdersand from mannfitcturers whose oststill.hment have been built np by protection, but who now feel so strong that they think thom•elves able to hear foreign cntupetition, and de-ire to shut out all others teem building mills Le, -.here they (Concluded on fourth page.)