AMERICAN TARIFF.

Dominion, Volume 6, Issue 1746, 10 May 1913, Page 5

AMERICAN TARIFF.

BILL THROUGH THE HOUSE. STIFF FIGHT IN SENATE. By Telecraph—Press Association-Copyright (Rcc. May n, 9.55 p.m.) Washington, May 9. Tlio Underwood Tariff Revision Ilill has passed the House of Representatives by 2St votes to 131. Tlio Republicans are planning a .stiff fight over 'tlio Bill in tlio Senate, where it is estimated that the Democratic majority on the Bill will not eisceed four. THE BILL'S MAIN POINTS. DUTIES REMOVED FROM MANY NECESSARIES. Removal of all tariff from many articles of food and clothing; broad reductionsill tho rates of duty on all necessaries of life; an increase of tariff on many luxuries; and a new income tax that would touch the pocket ol every American citizen whoso net income exceeds .tSOO, are tho striking features nf the new Democratic Tariff Revision Bill. Sugar would be free of duty iu IDIG, tlio Bill proposing an immediate 25 per cent, reduction and the removal of the remaining duty in 191(1. Raw wool would be made free at once, with a correspondingly heavy reduction in tho tariff on all woollen goods. All these other articles are p\it on the freo list, namely: Meats, flour, bread, loots and shoes, Junilier, coal, harness, saddlery, iron ore, milk and cream, potatoes, salt, swine, corn, eornmeal, col ton bagging, agricultural implements, leather, wood pulp, Bibles, printing paper not worth more than 2} cents per pound, typewriters , sewing machines, type-setting machines, cash registers, steel rails, fence wire, cotton tics, nails, hoop and bard iron, fish, sulphur, soda, tanning materials, acetic and sulphuric acids, borax, lumber products including broom handles, clapboards, hubs for wheels, posts, laths, pickets, staves, shingles. AYbile wheat flour is put on tho freo list, a duty of 10 per cent, is imposed against countries which levey a duty on American Hour. This will exclude flour from Canada and many other countries. These principal items aro taken from tho free list: and taxed. Rough and uncut diamonds and precious stones, furs, coal tar products, 10 per cent.; volatile oils, 20 per cent.; spices, from 1 cent to 2 cents per pound. Tobacco and spirits have been found to be good producers of revenue, and have, therefore, been left at tlio samo rales as iu tho present law. . It is estimated by members of the Ways and Means Committee that approximately .£20,000,000 in revenue may be derived from the new income tax, i'ncluding the corporation tax, that amount making up for the deficit in revenues to bo derived from imports by virtue of tho greatly reduced tariff rates and tho transfer to tho freo list of articles that aro classed as necessaries of living. In his statement accompanying the Bill Mr. Underwood, of tho Ways and Means Committee, said the measure, in the opinion of its makers, would revise the tariff "to a basis of legitimate competition, such as will afford a wholesome infiuenco on our commerce, bring relief to Ihe peoplo iu the matter of the high cost of living, and at tho same lime work no detriment to properly conducted manufacturing industries. In its tariffrevision work tho committee lias kept in mind," ho said, "the distinction between the necessities and Ihe luxuries of life, reducing tho tariff burdens on tho necessities to Ihe lowest points commensurate with revenue requirement's, and making the luxuries of life bear their -proper portion to tho tariff responsibilities. Many items of manufacture controlled by monopolies have been placed on tho free list. When tho duties levied at tho Customhouso n,ro high enough to allow tho American manufacturer to make a profit before his competitor can enter tho field, wo have invaded tho domain of tho protection of profits. In the committee's judgment, the protection of any profit must of necessity have a tendency to. destroy competition and create monopoly, whether the profit protected is rensonablo or unreasonable. "Which course is the wiser mo for our Government to lake? The ono I hat demands the protection of profits, tho continued policy of hot-houso growth for our industries—the stagnation of development that follows where competition ceases— or, on the other hand, the gradual reduction of our tariff to a basis \whero the American manufacturer. must meet honest competition: where he must develop his business along the best and most economic lines; where, when he fights at home to control his market, he is forging tlio way in tho economic development of his business to extend his trade in the markets of Ihe world. Tho future growth of our great industries lies beyond tho seas."