UC-NRLF III ^^ REPUBLICAN CAMPAIGN TEXT - BOOK 1908 ^TRADES H?B ^ C OU NCTl> ISSUED BY THE REPUBLICAN NATIONAL COMMITTEE EXTRACTS FROM THE PUBLIC UTTERANCES OF WM. H. TAFL "The fundamental objection to the proposed (Democratic) plan to guarantee deposits in na- tional banks is that it puts a premium on reckless banking. It would promote speculation at the ex- pense of his fellow-banker, and that ultimately means at the expense of the depositors."— At Hot Springs, Va., August 25, 1908. "Never in the history of this country has there been an Administration that has passed more measures directly in the interest of the laboring classes than has the present Republican Adminis- tration."— At Athens, Ohio, August 29, 1908. "I believe that equal justice to all men and the fair and impartial enforcement of these (the Thir- teenth, Fourteenth and Fifteenth) amendments are in keeping with the real American spirit of fair play."— From Address of Acceptance, July 28, 1908. "Evils are to be suppressed by definite and prac- tical measures— not by oratory or denunciation." —At Greensboro, N. C, July 9, 1906. "The present business system of the country rests on the protective tariff and any attempt to change it to a free trade basis will certainly lead to disaster."— At Columbus, Ohio, August 19, 1907. "I would favor a provision allowing the defend- ant in contempt proceedings to challenge the judge issuing the injunction and to call for the designation of another judge to hear the issue."— At Cooper Union, N. Y., January 10, 1908. "The President should always be near the peo- ple In thought and as near them in person as his; position will permit. Once convinced that he has divined and is carrying out their real wish, neither elated by any ephemeral outburst of applause n^ diverted by an outburst of censure, he must pr(k ceed unwaveringly, always by lawful methods, tol the accomplishment of the popular will."— FronfRJ Mr. Taft's "Conception of the Presidency," in CoVli lier's. ^ I REPUBLICAN CAMPAIGN TEXT - BOOK 1908 Issued hy the Republican j ^«^^ Natioftal Committee PRESS OF DUNLAP PRIMING CO.VIPAW ijj2-J4-36-?8 Cherry Street ami 118-20-21-24-26 N. Juniper Street Philadelphia, Pa. v//V-2Ss"2. OUTLINE OF CONTENTS. Pagb Mr. Taft's speech accepting nomination .,.....» ^ Regulation of Corporations 33 Money panic of 1907 54 Prosperity 81 Tariff »9 Tariffs of the world 121 Reciprocity 130 Iron and steel industry of the United States 15f< Tin-plate industry of the United States IBi' Textile industry of the United States 16^ Agricultural prosperity 191 Labor, wages, and prices • 208 Union labor, Mr. Taft's relations to 248 Campaign contributions, publicity of 272 William* Jennings Bryan 282^ Colored citizens : attitude of two parties toward 297 Guarantee of bank deposits 307 President Roosevelt's Administration 318 Sixtieth Congress, outline of its work 322 Departments : Review of work : State 331 Justice 840 War 344 Navy 360 Post Office 370 Interior 37? Agricultural 386 Commerce and Labor 390 Treasury 398 Philippine Islands 40:-; Hawaiian Islands 42R Porto Rico 42fi Panama Canal 42H Cuba 442 Merchant marine 460 -Republican platform. 1908 461 S)emocratic platform, 1908 468 Pryan's speech of acceptance 478 Statistical statements , . . i 48S Taft. William H.. sketch of life of 52^ Mr. Sherman's speech of acceptance ^ 587 . Republican National and Congressional Oommitt«es 640 641 - • IV11118J)5 IT/IOO ^I(> U'/ IINDEX. PA6B. Addystone Pipe aud Steel Company case • • 261 Addystone pipe case : Judge Tafts declston !n - • 50 Afro- Americans in Government service . • 801 Afro-American voters, Bryan's attitude with reference to . . 290 Agricultural Department - • ^'^ Agricultural products, prices of, on farms, 1892-1907 ..203 Agricultural prosperity in mfg. and non-manufacturing section: .. 191 Agriculture, pi'osperlty of • • ^'^^ Animals, farm, value of, in United States, 1890-1907 ... 207 Appropriations by first session. Sixtieth Congress 328 Appropriations, record of, 1890 to 1909 - • . 326 Arbitration, international, Presidents McKinley and Roosevflt on 384 "Assumed risk" decision of Judge Taft - • 250 B Balance of trade and farmers. 388 487 807 19 Balance of trade under McKinley, Wilson, and Dingley tariff? Bank deposits, guarantee of Bank deposits, insurance of Bank deposits in United States, 1875-1907 Banks, savings: depositors and deposits, 1820-1 9-posit8 in banks of United SUtes, 1876-1907 89 ngley tariff, protests against and effect thereof on trade 120 labor, Taffs relation to 248 I^abor. wagps and prices 208 M Manufactures, exports of IL^ Manufactures : exports of from United States, United Kingdom, and Germany, 1875-1907 1 J ^ Manufactures : importation and exportation of by United States and United Kingdom. 1870-1907 15 8 Manufacturing and ^on-manufacturing States, prosperity in 492 Nfanufacturing industries of United States : capital, wage-earners, wages, and products 173 Manufacturing, progress of in United States 1850-1905 ^ 493 Maximum and minimum tariff, example of 125 Maximum and minimum tariff systems 122 Most favored nation clause, relation of to tariffs 123 Meat inspection and pure-fod(^laws 387 Merchant marine / 450 Militia system, new ' 354 Modem tariff systems of world 121 Money in circulation in United States 68, 88 Money in circulation in United* States, 1800-1908. 88 Money of the world, 1872-1906 79-80 Money panic of 1907 54 Naval expenditures authorized by Sixtieth Congress 363 Naval strength. United States and foreign countries ^ . . 365 Navies of world, principal 365-36d Navy, cost of since 1883 367 Navy Department 360 Navy, reasons for large 360 National banks of the United States 92 Nat ional expenditures, growth of, compared with growth of national wealth .• : . . . 327 Negro, Bryan's attitude with reference to 290 Negro, Mr. Taft on.. 22 Negro voter, attitude of two parties toward 297 New currency law of 1908 72 New militia system 354 New navy, cost of vessels 369 New York World on Bryan 276-277 ; 286-288, 291 Non -contiguous territory of the United States 411 Offices, increase of by Sixtieth Congress 326 Orient, statesmanship of Mr. Taft in 2^ Our n^ navy, cost of 367 "Out-of-work benefits" under Democratic and Republican adminis- trations •' 238 P Panama Canal, conditions on 429 Panic, money, of 1907 54 Paper and wood pulp investigation 327 \ Party platforms on tariff 140 Party votes in close States, 1880 to 1906 527 , Peace, international, work of Government for 3.^4 , INDEX. ix Pagk. Pension laws of 1907-8 386-387 Pension legislation ^ ;»81 Petroleum dutiett, countervailing, originated in Wilson Tariff Act 146 Phelan contempt case 260 Philippine Islands, conditions in 403 Philippines : Bryan favors retention of part of. 288 Philippines, Mr. Taft on 20 Philippines, Taft's labor record in 252 Pig iron production of U. S., Great Britain, and Germany, 1880-1907 . . 150 Pig iron, world's production of. 1800-1907 178 Platform of Democratic party, 1908 ......J«. «*/« 468 Platform of Republican party. 1908 . .> ^ ,-w\v.tJ5. 461 Platforms of parties on tariff ■. 140 Porto Rlcan, Hawaiian, and Philippine sugar entering United States.. 198 Porto Rico, conditions in 426 Postal serv'ice , 370 Post Office Department, work of 870 Presidential vote by States, 1864 to 1904 526 President Roosevelt, public services of 318 President, vote for, by States, 1864 to 1904 526 Prices, advance of, compared with advance in wages 208 Prices of exports in foreign countries 110 Prices, relative, of articles of farm production and consumption 200 Prices. 1880-1907 485 Production of pig Iron in U. S., Great Britain, and Germany, 1880-1907 156 Pi-ogress of the U. S. In its material industries, 1850 to 1908 .507 Prosperity 81 Prosperity : comparison of conditions in 1907 with those of 1897 85 Pi-osperlty In manufacturing and non-manufacturing States 493 Prosperity of agricultural population of United States 179 Protection a feature of early tariffs .^. . .. ..... .... 99 Protection and the textile industry .-A- do«e.-i»l>uu '3ija»b io« ♦<>/*, 164 Protection, effect of cheap freights upon. . .!l'>}t'\K ^a /if>f»ff»r- »vi. 107 Protection not the mother of trusts 108 Protection rendered necessary by cheap labor and cheap freights 107 Publicity bill regarding campaign Contributions 279 Publicity of campaign contributions .I'/W. Pf-n?. Hf. ^372 Protective tariff, effect on steel rail Industry ; J"i .J}. .''''. . n!'. . l&I Publicity of campaign contributions, Mr! Taft on 24 Pure food and meat inspection laws. . , 1'.'. *']['l 387 Railway tabor under Republican and Democratic Administrations 233 Railway regulation 41 Railways, Bryan on government ownership of viiiV«-.<^S^'i'*Y^82-285 Railways of the United States, capital, earnings, etc. . I'l .itfl^. Pi .^\'^:/{ / . 50S Receipts and expenditures of United States, 1800-1908'. .. '.\ .i. i'j .■/'. . 499 Receipts and expenditures under each President. Washington to Roosevelt . : i . ii .. .. ;;j;. .,., 154 Reciprocity ..;...'... ..ii .'.m . . .U\ aiQiimxa. aa . t'ioar.v'if. Jo .'n. 130 Reciprocity, effect on trade of United StatesJli.*^ ^♦JaQU>y.lQ j«ju»J!tBf07 .j, 136 Reciprocity experiences of United States. ...... .OQ.afO'jg^iisIq .'ii.-taq. ,^riai Regulation of corporations ;^J«ia Jv»JUitJ . at antiUlve^ .0- tSl Regulation of railways . '.'. :.■.".: 41 Relative prices of articles of farm production and consumption 200 Republican and Democratic record on publicity of c^mpaisn CDDtrlbuitiiotis 27,2 Republican labor legislation .o, /i9^i,Y:t:iti. '^UtJiiij. .ilay^KooJI .ifK>fk(,^l&9 Republican National Committee .,,,.,,,, .fsihia^i .imioiQ-t .no .aAHii840 Republican Congressional Committee. ,?9.Vy{i. J)i>;wi,>J .ol.v,^.t8^b^ri ^al.j 541 Republican platform, 1908 -.'ifHijU .o.». iiKvitiifi ..'fil^uinU .4t«lf. 461 Republican tariff platforms, 1860-1908'. : . . .....'. .:...... 140 Revenues under protection and low tariff, respectively 15 1 Revisions of tariffs In United States history 101 River and harbor improvements 356 Ryan's contribution to Nebraska campaign fund 277 S Savings baulcs deposits of world 91 SaTings banks in United States, deposits and depositors, 1820-1907... 9(> Secretary of Trea.'jury on money panic of 1907 60 SPEECH,; OF HON. WILLIAM HOWARD TAFT. At Cinciiioiati, O., July 28, 1908, Accepting the Republican Nomination for tlie Office of President of tlie United States. Senator Wtirrtcr and Gentlemen of the Committee: I am deeply sensible of the honor which the Kepublican National Convention has conferred on me in the nomination which you formally tender, I accept it with full appreciation of the responsibility it imposes. Republican Strength in Maintenance of Roosevelt PolicieB. Gentlemen, the strength of the Kepublican cause in the cam- paign at hand is in the fact that we represent the policies essen- tial to the reform of known abuses, to the continuance of liberty and true prosperity, and that we are determined, as our plat- form unequivocally declares, to maintain them and carry them on. For more than ten years this country passed through an ! epoch of material development far beyond any that ever occurred I in the world before. In its course certain evils crept in. Some prominent and influential members of the community, spurred by financial siiccess and in their hurry for greater wealth, be- came unmindful of the common rules of business honesty and fidelity and of the limitations imposed by law up6n their actions. I This became known. The revelations of the breaches of trust, the disclosures as to rebates and discriminations by railways, the accumulating evidence of the violation of the anti-trust law by a number of corporations, the overissue of stocks and bonds on interstate railways for the unlawful enriching of directors and for the purpose of concentrating control of railways in one management, all quickened the conscience of the people, and brought on a moral awakening among them that boded well for the future of the country. What Roosevelt Has Done. The man who formulated the expression of the popular con- science and who led the movement for practical reform was Theodore Pvoosevelt. He laitl down the doctrine that the rich violator of the law should be as amenable to restraint and pun- ishment as the offender without wealth and without influence, and he proceeded by recommending legislation and directing ex- ecutive action to make that'principle good in actual performance. He seciu-ed the passage of the so-called rate bill, designed more effectively to restrain excessive and fix reasonabfe rates, and to 1 8 SPEECH OF HON, W. B, TAFT. punish sscret rebates aad discriminations which had been gen- eral in the practice of the railroads, and which had done much to enable un^a'Arful trusts to drive, oiit of business their competitors. It secured much closer oupervision of railway transactions and brought witnin the operation of the same statute express com- jmnies, aleejjing car companies, fast freight and refrigerator lines, terminal railroads and pipe lines, and forbade in future the (tbmbi nation of the transportation and shipping business under cne control in order to avoid undue discrimination. President Roosevelt direeted suits to be brought and prosecu- tions to be instituted under the anti-trust law to enforce its pro- visions against the most powerful of the industrial corporations. He pressed to passage the pure food law and the meat inspection law in the interest of the health of the public, clean business methods and great ultimate benefit to the trades themselves. He recommended the passage of a law, which the Republican con- vention has since specifically approved, restricting the future issue of stocks and bonds by interstate railways to such as may be authorized by Federal authority. He demonstrated to the people by what he said, by what he recommended to Congress;, and by what he did the sincerity of his efforts to command re- spect for the law, to secure equality of all before the law, and to save the country from the dangers of a plutocratic government* toward which we were fast tending. In this work Mr. Roosevelt has had the support and sympathy of the Republican party, and its chief hope of success in the present controversy must rest oni. the confidence which the people of the country have in the sin- cerity of the party's declaration in its platform that it intends to continue his policies. Necessary to Devise Some Means of Permanently Secnring- Prof^ress Made. Mr. Roosevelt has set high the standard of business morality and obedience to law. The railroad rate bill was more useful possibly in the immediate moral effect of its passage than even in the legal effect of its very useful provisions. From its enact- ment dates the voluntary abandonment of the practice of rebates; and discriminations by the railroads and the return by their- managers to obedience to law in the fixing of tariffs. The pure food and meat inspection laws and the prosecutions directed by the President under the anti-trust law have had a similar moral effect in the general business commtmity and have made it now the common practice for the great industrial corporations to con- sult the law with a view to keeping within its provisions. It has also had the effect of protecting and encouraging smaller com- petitive companies so that they have been enabled to do a profit- able business. But we should be blind to the ordinary working of human na- SPEECH OF HON. W. H. TAFT. 3 tiire if we did not recog-iii/.e thit tlie moral staudar;ls set by President Roosevelt will not continue to be observed 5y those whom cupidity and a desire for financial power may tempt unless the requisite machinei-y is introduced into the law which shall in its practical operation maintain these standards and secure the country against a departure from them. Chief Function of Next Administration to Clincli Wliat Has Been Done. The chief function of the next administration, in my judg- ment, is distinct from, and a progressive development of, that M^hich has been performed by President Roosevelt. The c4iief function of the next administration is to complete and perfect the machinery by which these standards may be maintained, by which the lawbreakers may be promptly restrained and pun- ished, but which shall operate with sufficient accuracy and dis- patch to interfere with legitimate business as little as possible. Such machinery is not now adequate, tinder the present rate bill, and under all its amendments, the burden of the Interstate Commerce Commission in supervising and regulating the opera- tion of the railroads of this country has grown so heavy that it is utterly impossible for that tribunal to hear and dispose, in any reasonable time, of the many complaints, queries and issues that are brought before it for decision. It ought to be relieved of its jurisdiction as an executive, directing body, and its func- tions should be limited to the quasi-judicial investigation of com- plaints by individuals, and by a department of the Government, charged with the executive business of supervising the opera- tion of railways. Publicity and Supervision. There should be a classification of that very small percentas'e of industrial corporations having power and opportunity to effect illegal restraints of trade and monopolies, and legislation either induciAg or compelling them to subject themselves to registry and to proper publicity regulations and supervision of the De- partment of Commerce and Labor. Constructive Worl*; of Next Administration to Organize Sub- ordinate and Ancillary Machinery to Maintain Standards on One Hand, and Not to Interfere With Business on the Other. The field covered by the industrial combinations and by the railroads is so very extensive that the interests of the public and the interests of the businesses concerned cannot be properly sub- served except by reorganization of bureaus in the Department of Commerce and Labor, of Agrieidture and the Department of Jus- tice, and a change in the jurisdiction of the Interstate Commerce Commission. It does not assist matters to prescribe new duties for the Interstate Commerce Commission, which it is practically 4 ^ SPEECH OF now. W. H. TAFT. impossible for it to perform, or to denounce new offenses with drastic pimishnient, unless subordinate and ancillary leg-islation shall be passed making- possible the quick enforcement in the great variety of cases which are constantly arising of the prin- ciples laid down by Mr. Koosevelt, and with respect to which only typical instances of prosecution with the present machinery ar^ possible. Such legislation should and would greatly promote legitimate business by enabliug those anxious to obey the Fed- eral s^tvites to know just what are the bounds of their lawful actioij, Tli!^, practical constructive and difficult work, therefore, of those who follow Mr. Koosevelt is to devise the ways and means by which the high level of business integrity and obedi- ence to law which he has established may be maintained and de- partures from it restrained without undue interference with le- gitimate business. Rallf>'ay Traffic Agreements Approved by Commission Sbonld be Valid. It is agreeable to note in this regard that the Republican platform expressly, and the Democratic platform impliedlj', ap- prove an amendment to the interstate commerce law by which interstate railroads may make useful traffic agreements if ap- proved by the Commission. This has been strongly recommended by President Koosevelt, and will make for the benefit of the business. Pbysieal Valnation of RailTvays. Some of the suggestions of the Democratic platform relate really to this subordinate and ancillary machinery to which I have referred. Take, for instance, the so-called "physical valua- tion of ruil ways." It is clear that the sum of all rates or receipts of a railway, less proper expenses, should be limited to a fair profit upon the reasonable value of its property, and that if the sum exceeds rhis measuie it 9ught to be reduced. The difficulty in eiifoi-cing the principle is in ascertaining what is the reason - al>le vjil'if of the company s property, and in fixing what is a fair profit. It is clear that the physical value of a railroad and its plant is an element to be given weight in determining its full value; but as Pi-esident Koosevelt in his Indianapolis speech and the Supreme Court have in efl'ect pointed out, the value of the railroad as a going concern, including its good will, due to effi- ciency of service and many other circumstances, may be much greater than the value of its tangible property, and it is the former that measures the investment on which a fair profit must be allowed. Then, too, the question what is a fair profit is one involving not only the rate of interest usually earned on nor- mally safe investments, but also a sufficient allowance to make up for the risk of loss both of capital and interest in the orig- inal outlay. These considerations will have justified the company in imposing charges high enough to secure a fair income on the SPEECH OF HON. W. H. TAFT. rg enterprise as a whole. 'JPhe securities at market prices will have passed into the hands of subsequent purchasers from the original investoi\s. Such circumstances should properly affect che decision of the tribunal engaged in determining whether the totality of rates chai'ged is reasonable or excessive. To ignore them might so seriously and unjustly impair settled values as to destroy all hope of restoring confidence, and forever to end the inducement for investment in new railroad construction which, in returning prosperous tiniest is sure to be essential to our material progress. As Mr. Roosevelt has said in speaking of this very subject: "The effect of such valuation and supervision of securities cannot be retroactive. Existing securities should be tested by laws in existence at the time of their issue. This nation would no more injure securities which have become an important part of the national wealth than it would consider a proposition to repudiate the national debt." The question of rates and the treatment of railways is one that has two sides. The shippers are certainly entitled to reason- able rates; but less is an injustice to the carriers. Good business for the railroads is essential to general prosperit3\ Injustice to them is aot alone injiistice to stockholders and capitalists, whose further investments may be necessary for the good of the whole country, but it directly affects and reduces the wages of railway employees, and indeed may deprive them of their places en- tirely. From what has been siiid the proper conclusion would seem to be that in attempting to determine whether the entire schedule of rates of a raihvay is excessive the physical valuation of the road is a relevant and important, but not necessarily a control- ling factor. Physical Valuation Properly Used Will Not Generally Impair Securities. I am confident that the fixing of rates on the principles sug- gested above would not materially impair the present market values of railroad securities in most cases, for I believe that the normal increase in the value of railroad properties, especially in their terminals, will more than make up for the possible over- capitalization in earlier years. In some cases, doubtless, it will be found that overcapitalization is made an excuse for excessive rates, and then they should be reduced. But the consensus of opinion seems to be that the railroad rates generally in this country are reasonably low. This is why, doubtless, the com- plaints filed with the Interstate Commerce Commission against excessive rates are so few as compared with those against un- lawfiU discrimination in rates between shippers and between places. Of cor.rae, in the determination of the question whether discrimination is unlawful or not the physical valuation of the whole road is of little weight. • SPEECH OF HON. W. H. TAFT. Conclnalon Tbut There Should btt I'hyitieiil Viiluutlon. I have discussed this, with some degree of detail, merely to point out that the valiiution by tlie interstate Coiainerce Commis- sion of the tang-ible property of a railroad is proper and maj' from time to time be necessary in settling certain issues whien may come before it, aud that no evil or injustice can come fi'oin valuation in such cases, if it be understood that the result is to be used for a just purpose and the right to a fair profit under all the circumstances of the investment is recognized. The Inter- state Commerce Commission has now the power to ascertain the value of the physical railroad property if necessary in deter- mining the reasonableness of rates. If the machinery for doing so is not adequate, as is probable, it should be made so. The Republican platform recommends legislation forl)idding the issue in the future of interstate railway stacks and bonds without Federal authority. It may occur in such cases that the full value of tke railway, and, as an element thereof, the value of the tangible property of the railway would l)e a relevant and important factor in assisting the proper authority to determine whether the stocks and bonds to be issued were to have proper security behind them, and in such case, therefore, there should be the right and machinery to make a valuation of the physical property. Natiomal Control of lMter«ta.te Commerce Corporations. Another suggestion in respect to subordinate and ancillary machinery mccessary to carry out Republican policies is that of the incorporatioH under national law or the licensing by national license or enforced registry of companies engaged in interstate trade. The fact is that nearly all corporations doing a commer- cial business are engaged in interstate commerce, and if they all were required to take out a Federal license or a Federal charter the burden up»m the interstate business of the country would be- come intolerable. Shonld be Limited to Small PercentaKe by Classification. It is necessary, therefore, to devise some means for classi- fying and insuring Federal supervision of such corporations as have the power and temptation to effect restraints of inter- state trade and monopolies. Such corporations constitute a very small percentage of all engaged in interstate business. Mr. Roosevelt's Proposed Classification. With such classification in view, Mr. Roosevelt recommended an amendment to the anti-trust law, known as the Hepburn bill, which provided for voluntary classification and created a strong motive therefor by granting immunity from prosecution for roasonabl* restraints of interstate trade to all corporations which would register and submit themselves to the publicity regulations of the Department of Commerce and Labor. SPEECH OF HON. W. H. TAFT. t The Democratic Propose* Classiflcation. The Democratic platform suggests a requirement that cor- porations in interstate trade having control of 25 per cent of the products in which they deal shall cal:e out a Federal license. This classification would probably include a jfreat many small corporations engag-ed in the manufacture of special arti- cles or commodities whose total value is so inconisiderable that tney are not really within the purview or real evil of the anti- trust law. It is not now necessary, howerer, to discuss the relativa oaerit of such propositions, but it is enoug-h merely to affirm the ne- cessity for some method by which greater executive super- vision can be given to the Federal Government over those busi- nesses in which then-e is a temptation to violations of the anti- ^ trust law. Construction of Anti-Trust La^r— Possible Necessity for Annendnient. The possible operation of the anti-trust law under existing rulings of the Supreme Court has given rise to suggestions for its necessary amendment to prevent its applicatlou to cases which it is believed were never in the conteHiplation of the f ramers of the statute. Take two instances : A merchant or manufacturer engaged in a legitimate business that covered certain states wishes to sell his business and his g^ood-will, and so in the terms ©f the sale obligates himself to rhe purchaser not to go into the same busineess in I hose states. Such a restraint of trade has always been enforced at common law. Again, the employees of an inter^tat'.? railway combine and enter upon a peaceable and lawful strike to secure better wages. At common law this was not a restialut of trade or commerce or a violation of the rights of the company or of the public. Neither case ought to be made a violation of the anti-trust law. Mj own impression is that the Supreme Court would hold that neither of these instances are within its inhibition, but, if they are to be so regarded, general legislation amending the law is necessary. Democratic Plank to Limit Corporations to O'fvnersliip of Fifty Per Cent of Plant and Prodnct Faulty. The suggestion of the Democratic platform that trusts be ended by forbidding corporations to hold more than 50 per cent of the plant in any line of manufacture is made without regard to the possibility of enforcement or the real evil in trusts. A corporation controlling 45 or 50 per cent of the prod- ucts may by well-known methods frequently effect monopoly I and stamp out competition in a part of the country as com- I pletely as if it controlled 60 or 70 per cent thereof. ' t SPEECH OF HOW W. n. TAFT. ConipnlHory Snle of Proiliiotci nt Flx«*d l»ri«e Iniprncticable. The proposal to compel every corporation to sell Its commodi- ties at the same price the country over, allowing" for transporta- tion, is utterly impracticable. If it can be shown that in order to drive out competition a corporation owning a large part of the plant producing an article i« selling in one part of the country where it has competitors, at a low and unprofitable price, and in another part of the country, where it has none, at an exorbitant price, this is evidence that it is attempting an unlawful mo- nopoly, and justifies conviction under the anti-trust law ; but the proposal to supervise the business of corporations in such a way as to fix the price of commodities and compel the sale at such price is as absurd and socialistic a plank as was ever inserted in a Deniocratic political platform. Difference BetTt-een Republican and Democratic Policies and Platforms; Fonner ProgreHMive and Regnlatlve; Latter " Radical and Destrnctli^e. The chief difference between the Republican and the Demo- cratic platforms is the difference which has heretofore been seen between the policies of Mr. Roosevelt and those which have been advocated by the Democratic candidate, Mr. Bryan. Mr. Roose- velt's policies have been progressive and regulative ; Mr. Bryan's destructive. Mr. Roosevelt has favored regulatiom of the busi- ness in which evils have grown up so as to stamp out the evils and i)ermit the business to continue. The tendency of Mr. Bryan's proposals hare generally been destructive of the busi- ness with respect to which he is demanding reform. Mr. Roose- velt would compel the trusts to conduct their business in a law- ful majiner and secure the benefits of their operation and the maintenance of the prosperity of the country, of which they are an important part ; while Mr. Bryan would extirpate and destroy the entire business in order to stamp out the evils which they have practiced. Advantase of Combination of Capital. The combination of capital in large plants to manufacture goods with the greatest economy is just as necessary as the assembling of the parts of a machine to the economical and more rapid manufacture of what in old times was made by hand. The government should not interfere with one any more than the other, when such aggregations of capital are legiti- mate and are properly controlled, for they are then the natural results of modern enterprise and are beneficial to the public. In the proper operation of competition the public will soon share with the manufacturer the advantage in economy of nr>f>rat,inTJ nrirl Inwp-r r>T*ir»oo SPEECH OF HON. W. H. TAFT. 9 What Is an Unlawful Trnst? When, however, such combinations are not based on any economic principle, but are made merely for the purpose of con- trolling the market, to maintain or raise prices, restrict out- put and drive out competitors, the public derives no benefit and we have a monopoly. Thece must he some use by the com- pany of the comparatively great size of its capital and plant and extent of its output, either to coerce persons to buy of it rather than of some competitor or to coerce those who would com- pete with it to give up their business. There must usually, in other words, be shown an element of duress in the con- duct of its business toward the customers in the trade and its competitors before mere aggregation of capital or plant be- comes an unlawful monopoly. It is perfectly conceivable that in the interest of economy of production a great number of plants may be legitimately assembled under the ownership of one corporation. It is important, therefore, that such large aggregations of capital and combination should be controlled, se that the public may have the advantage of reasonable prices and that the avenues of enterprise may be kept open to the individual and the smaller corporation wishing to engage in business. Mere AK^re^atlon of Capital Not a Violation of Anti-Trust L>aw. In a country like this, where, in good times, there is an enormous floating capital awaiting investment, the period be- fore which eifective competition by construction of new plants can be introduced into any business is comparatively short, rarely exceeding a year, and is usually even less than that. Ex- istence of actual plant is not, therefore, necessary to potential competition. Many enterprises have been organized on the theory that mere aggregation of all, or nearly all, existing plants in a line of manufacture, without regard to economy of production, destroys competition. They have, most of them, gone into bankruptcy. Competition in a profitable business A^ill not be affected by the mere aggregation of many existing plants under one company, unless the company thereby effects great economy, the benefit of which it shares with the public, or takes some illegal method to avoid competition and to per- petuate a hold on the business. Proper Treatment of Trnsts. Unlawful trusts should be restrained with all the efficiency of injunctive process, and the persons engaged in maintaining them should be punished with all the severity of criminal prose- cution, in order that the methods pursued in the operation of their business shall be brought within the law. To destroy them and to eliminate the wealth they represent from the pro- 10 srEKcn OF now w. h. taft. diK'iiifr onpiial of thr coiiiilry woiikl entail enormous loss and AvoiiUI throw out of rniployinent myriads of workingmen and working-women. SiK-h a result is wholly unnecessary to the ac- complishment of the needed reform, and will inflict upon the inuoct'iit far jjx-euter punishment than upon the guilty. Uentructive Policy of Democratic Platf«rm. The Demmratic platform does not propose to destroy the plants of the trusts physidally, -but it proposes to do the same thing- in a different way. The business of this couatry is largely dependent on a protective system of tariffs. The business done by many of the so-called "trusts," is protected with the other businesses of the country. The Democratic platform proposes to take off the tariff en all articles c©ming into competition with those produced by the so-called "trusts," and to put them on the free list. If such a course would be utterly destructive of their business, as is intended, it would not only destroy the trusts, but all of their smaller competitors. The ruthless and impracticable chai-acter of the proposition grows plainer as its effects upon the whole commimity are realized. Bffect. of Denaocratic Plans on Buaiaess. To take the course suggested by the Democratic platform in these matters is to involve the entire community, innocent as it is, in the punishment of the guilty, while our policy is to stamp out the specific evil. This difference between the poli- cies of the two great parties is of especial importaace in view of the present condition of business. After ten years of the most remarkable material development and prosperity, there came a financial stringency, a panic, and an industrial depression. This was brought about not only by the enormous expansion of business plants and business investments which could not be readily converted, bwt als« by the waste of capital, in ex- travagance of living, iM wars and other catastrophes. Tke free cenvertible capital was exhausted. In addition to this, the con- fidence of the lending public in Europe amd in this country bad been affected by the revelations of irregularity, breaches of trust, overissues of stock, violations of law, and lack of rigid State or National supervision in the management of our largest corporations. Investors 4 withheld what loanable capital re- mained available. It became impossible for the soundest rail- roads and other enterprises to borrow money enough for new construction or reconstruction. M'^ill Delay Restoration of Prosperity. Gradually business is acquiring a healthier tone. Gradually all wealth which was hoarded is coming out to be used. Con- fidence in security of business investments is a plant of slow growth and is absolutely necessary in order that our factories SPEECH OF HON. W. H. TAFT. 11 may all open ag-ain, in order that our unemployed may become employed, and in order that we may ag-ain kave the prosperity which blessed us for ten years. The identity of the interests of the capitalist, the farmer, the business man, and the wage- earner in the security and profit of investments cannot be too greatly emphasized. I submit to those most interested, to wage- earners, to farmers, and to business men, whether the intro- duction into power of the Democratic party, with Mr. Bryan at its head, and with the business destruction that it openly advocates as a remedy for present evils, will bring about the needed confidence for the restoration of prosperity. Republican Doctrine of Protection. The Eepublican doctrine of protection, as definitely announced by the Republican convention of this year and by previous con- ventions, is that a tariff shall be imposed on all imported products, whether of- the factory, farm, or mine, sufficiently great to equal the difference betweea the cost of production abroad and at home, and that this difference should, of course, include the dlffer^ice between the higher wages paid in this country and the wages paid abroad and embrace a reasonable profit to the American producer. A system of protection thus adopted and put in force has led to the establishment of a rate of wages here that has greatly enhanced the standard of living of the laboring man. It is the policy of the Republican party permanently to continue that standard of living. In 1897 the Dingley tariff bill was passed, under which we hare had, as already said, a period of enormous prosperity. Neceaaity for Revision of TariC. The consequent material development has greatly changed the conditions under which many articles described by the sched- iiles of the tariff are now produced. The tariff in a number of the schedules exceeds the difference between the cost of pro- duction of such articls abroad and at home, including a reason- able profit to the American producer. The excess over that difference serves no useful purpose, but offers a temptation to those who wou^d monopolize the production and the sale of such articles in this country to profit by the excessive rate. On the other hand, there are some few other schedules in which the tariff is not sufficiently high to give the measure of pro- tection which they should receive upon Republican principles, and as to those the tariff should be raised. A revision of the tariff undertaken upon this principle, which is at the basis of our present business system, begun promptly upon the in- coming of the new administration and considered at a special session with the preliminary investigations already begun by the appropriate committees of the House and Senate, will make the disturbance of business incident to such a change as little as possible. sI'EECll or //o\. \V. II. TAFT. Dritiiicrntio TnrltT I'liin niid Hh Hud KfYeet on Bnslneia COIKlidOflK. Thf Doino.i :it i • piitv in its platform has not had the cour- age of its previous com ictions on the subject of the tariff, de- nounced by it in 1904 as a system pf the robbery of the many for tlie benefit of the few, but it does declare its intention to ( hangie the tariff with a view to reaching a revenue basis and thus to depart from the protective system. The introduction into power of a party with this avowed purpose cannot but halt the gradual recovery from our recent financial depression and produce busiiiess disaster compared witli which bur recent panic and depression will seem small indeed. The Farmer and tlie Republican Party. As the Kepublican platform says, the welfare of the farmer is vital to that of the whole country. One of the strongest hopes of returning prosperity is baseti^pn^thelwsines^ which his crops are to afford. He is vitally interested in the restraining of excessive and unduly discriminating railroad rates, in the en- forcement of the pure food laws, in the promotion of scientific agriculture, and in increasing the comforts of country life, as by the extension of free rural delivery. The policies of the present administration, which have most industriously promoted all these objects, cannot fail to commend themselves to his approval ; and it it difficult to see how with hi^ intelligent appreciation of the threat to business prosperity involved in Democratic success at the polls he can do otherwise than give his full and hearty support to the continuation of the policies of the present administration under Republican auspices. Labor and A^liat the Republican Party Has Done for it. We come now to the question of labor. One important phase of the policies of the present administration has been an anxiety to secur?' for the weage-earner an equality of opportunity and such positive statutory protection as shall place him on a level in dealing with his employer. The Republican party has passed an employers' liability act for interstate railroads, and has established an eight-hour law for government employees and on government construction. The essence of the reform effected by the former is the abolition of the fellow-servant rule and the introduction of the comparative negligence theory by which an employee injured in the service b!^ his employer does not lose all his right to recover because of slight negligence on his part. Then there is the act providing for compensation for injury to government employees, together with the various statutes requiring safety appliances upon interstate commerce railroads for the protection of their employees, and limiting the hours of their employment. These are all instances of the SPEECH OF HON. W. H. TAFT. ^3 desire of the Republican party to do justice to the wage-earner. Doubtless a more comprehensive measure for contpensation of g-overnnient employees will be adopted in the future ; the prin- ciple in such cases has been recognized, and in the necessarily somewhat slow course of legislation will be more fully embodied in definite statutes. Interests of Employer and Employee Only Differ in Respeet to Terms of Employment. The interests of the employer and the employee never differ" except when it comes to a division of the joint profit of labor and capital into dividends and wages. This must be a constant source of periodical discussion between the emploj^er and the employee, as indeed are the other terms of the employ- ment. Advantage of L'nlon. To give to employees their proper position in such a con- troversy, to enable them to maintain themselves against em- ployers having great capital, they may well unite, because in union there is strength, and without it each individual laborer and employee would be helpless. The promotion of industrial peace through the instrumentality of the trade agreement is often one of the results of such union when intelligently con- ducted. Other Labor. There is a large body of laborers, however, skilled and un- skilled, who are not organized into unions. Their rights before the law are exactly the same as those of the union men, and are to be protected with the same care and watchfulness. Ri^lits of Labor. In order to induce their employer into a compliance with their request for changed terms of emploipnent, workmen have the right to strike in a body. They have a right to use such persuasion as they may, provided it does not reach the point of duress, to lead their reluctant co-laborers to join them in their union against their employer, and they have a right, if they choose, to accumulate funds to support those engaged in a strike, to delegate to officers the power to direct the action of the union, and to withdraw themselves and their associates from dealing with or giving custom to those with whom they are in controversy. Wliat Labor Cannot La^vfully Do. What they have not the right to do is to injure their em- ployers' property, to injure their employers' business by use of threats or methods of physical duress against those who would work for him, or deal with him. or bj"^ carrying on what is sometimes known as a secondary boycott against his cus- tomers or those with whom he deals in business. All those 14 SPEECH OF HON. W. H. TAFT. who sympathize with them may unite to aid thera in their strtllg^le, bnt they may not throuffh the instrumentality of a threatened or actual boycott compel third persons against their will and having no interest in their controversy to come to their assistance. These principles have for a great many years been settled by the courts of this country. Threatened unlawful injuries to business^ like those described above, can only be adequately remedied by an injunction to pre- vent them. The jurisdiction of a court of equity to enjoin in such cases arises from the character of the injury and the method of inflicting it and the fact that suit for damages offers no adequate remedy. The unlawful injury is not usually done by one single act, which might be adequately compen- sated for in damages by a suit at law, but it is the result of a constantly recurring eeries of acts, each of which in itself might not constitute a substantial injury or make a suit at law worth while, and all of which would require a multiplicity of suits at law. Injuries of this class have since the foundation of courts of equity been prevented by injunction. It has been claimed that injunctions do not issue to protect anything but property rights, and that business is not a prop- erty right; but such a proposition is wholly inconsistent with all the decisions of the courts. The Supreme Court of the United States says that the injunction is a remedy to protect property or rights of a pecuniary nature, and we may well submit to the considerate judgment of all laymen whether the right of a man in his business is not as distinctly a right of a pecuniary nature as the right to his horse or his house or the stock of goods on his shelf ; and the instances in which injunctions to protect business have been upheld by all courts are so many that it is futile , further to discuss the proposition. It is difficult to tell the meaning of the Democratic plat- form upon this subject. It says : "Questions of judicial practice have arisen especially in con- nection with industrial disputes. We deem that the parties to all judicial proceedings should be treated with rigid impar- tiality, and that injunctions should not be issued in any cases in which injunctions would not issue if no industrial dispute were involved." This declaration is disingenuous. It seems to have been loosely drawn with the especial purpose of rendering it susceptible to one interpretation by one set of men and to a diametrically opposite interpretation by another. It does not aver that in- junctions should not issue in industrial disputes, but only that they should not issue merely because they are industrial dis- putes, and yet those responsible for the declaration must have known that no one has ever maintained that the fact that a dispute was industrial gave any basis for issuing an injunction in reference thereto. SPEECH OF HON. W. H. TAFT. 15 The declaration seems to be drawn in its present vag-ue and ambig-uous shape in ordei to persuade some people that it is a declaration against the issuing- of injunctions in any indus- trial dispute, while at the same time it may be possible to explain to the average plain citizen who objects to class distinctions that no such intention exists at all. Our position is clear and un- equivowal. We are anxious to prevent even an appearance of any injustice to labor in the issuance of injunctions, not in a spirit of favoritism to one set of our fellow citizens, but of justice to all of our fellow citizens. The reason for exercising or refusing to exercise the power of injunction must be found in the character of the unlawful injury and not in the char- acter or class of the persons who inflict this injury. The man who has a business which is being unlawfully in- jured is entitled to the remedies which the law has always given him, no matter who has inflicted the injuries. Otherwise we shall have class legislation unjust in principle and likely to sap tke foundations of a free government. Notice and Hearing Before Injunction. I come now to the question of notice before issuing an in- junction. It is a fundamental rule of general jurisprudence that no man shall be affected by a judicial proceeding without notice and hearing. This rule, however, has some times had an ex- ception in the issuing of temporary restraining orders co«i- manding a defendant in effect to maintain the status quo until a hearing. Such a process should issue only in rare cases where the threatened change of the status quo wotild inflict irreparable injury if time were taken to give notice and a summary hearing. The unlawful injury usual in industrial disputes, such as I have described, does not become formi- dable except after sufficient time in which to give the defendants notice and a hearing. I do not mean to say that there may not be cases even in industrial disputes where a restraining order might properly be issued without notice, but, generally, I think it is otherwise. In some State courts, and in fewer Fed- eral courts, the practice of issuing a temporary restraining order w^ithout notice merely to preserve the status quo on the theory that it won't hurt anybody has been too common. Many of us recall :that the practice has been pursued in other than industrial dis- putes, as for instance in corporate and stock controversies, like those over the Erie railroad, in which a stay order without notice ■was regarded as a step of great advantage to the one who secured it, and a corresponding disadvantage to the one against whom it was secured. Indeed, the chances of doing injustice on an ex- parte application are much increased over those when a hear- ing is granted, and there may be circumstances under which it may affect tjie .defendant to his detriment. In the c€we of 16 SPEECH OF HON. W. H. TAFT. .a lawful strike the sending of a formidable document restraining a number of defendants from doing a great many different th/ngs which the plaintiff avers they are threatening to do often so .dis- eoiirag'es men, always reluctant to go into a strike, from con- tinuing what is their lawful right. This has made the laboring man feel that an injustice is done in the isuing of a writ without notice. I conceive that in the trt*atment of this .question it is the duty of the citizen anjd the legislator to view the subject from the standpoint of the man who believes himself to be unjustly treated, as well as from that of the community at large. 1 have suggested the remedy of returning in such cases to the original practice under the old statute of the United States and the rules in equity adopted by the Su- preme Court, which did not permit the issuing of an injunetion without netice. In this respect the Kepubiioan convention has adopted another remedy, that, without going so far, promises to be efficacious in securing proper consideration in such cases by courts by formulating into a legislative act the best present practice. Under this recommendation, a statute may be framed which shall define with considerable particularity and emphasize the exceptional character of the cases in which restraining orders may issue without netice, and which shall also provide that when they are issued they shall cease to be operative beyond a short period, during which time notice shall be served and a hearing had unless the defendant desires a postponement of the hear- ing. By this provision the injustice which has sometimes oc- curred by which a preliminary restraining order of widest ap- plication has been issued without notice, and the hearing of the motion for the injunction has been fixed weeks and months after its date, could not recur. 'Small Namber of Cases Furnishing; Grounds for Complaint in Federal Court. The number of instances in which restraining orders without notice in industrial disputes have issued by Federal courts is small, and it is urged that they do not therefore constitute an ■evil to be remedied by statutory amendment. The small number of cases complained of above shows the careful manner in which most Federal judges Jjave exercised the jurisdiction, but the belief that such cases are numerous has been so widespread and has aroused such feeling of injustice that more definite specification in procedure to prevent recurrence of them is justi- fied if it can be effected without injury to the administration of the law. No Provision in Denioeratic Platform as to Noticej Only Recontmendation Trial by Jury. With respect to notice, the Democratic platform contains no recommendation. Its only intelligible declaration in regard SPEECH OF HON. W. H. TAFT. 17 ^^hij^mction suits is a i-eiteration of the plank in the platform of 1896 and 1904 providing- that in prosecutions for con- tempt in Federal courts, where the violation of the order con- stituting" the contempt charge is indirect, i. e., outside of the presence of the court there- shall be a jury trial. Dangeruus Attack on Power of Courts. This provision in the platform of 1896 was reg-arded then as a most dangerous attack upon the power of the courts to en- force their orders and decrees, and it was one of the chief reasons fpr , the . defeat of the Democratic party in that contest, as it ought to have been. The extended operation of such a pro- vision to weaken the power of the courts in the enforcement of their lawfid orders can hardly be overstated. Elfect of Jury Trial. Under such a provision a recalcitrant witness who refuses to obey a subpoena may insist on a jury trial before the court can determine that he received the subpoena. A citizen sum- moned as a juror and refusing" to obey the writ when broug"ht into court must be tried by g,nother jury to determine whether he g-ot the summons. Such a provision applies not alone to in- junctions, but to every order which the court issues ag"ainst persons. A suit may be tried in the court of first instance and carried to the court of appeals and thence to the Supreme Court, and a judg-ment and decree entered and an order issued, and then if the decree involves the defendants' doing" any- thing" or not doing" anything", and he disobeys it, the plaintiff, who has pm-sued his remedies in lawful course for years, must, to secure his rights, undergo the uncertainties and delays of a jury trial befere he can enjoy that which is his rfght by the decision of the highest court of the land. I say without hesi- tation that such a change would greatly impair the indispensable power and authority of the courts. In securing to the public the benefits of the new statutes enacted in the present administra- tion the ultimate instrumentality to be resorted to is the courts of the United States. If now their authority is to be weakened in a manner never known in the history of the jurisprudence of England or America, except in the Constitution of Oklahoma, how can we expect that such statutes will have efficient en- forcement? Those who advocate this intervention of a jury in such cases seem to suppose that this change in some way will inure only to the benefit of the poor worklngman. As a matter of fact, the j^erson who will secure chief advantage from it is the wealthy and unscrupulous defendant, able to employ astute and cunning counsel and anxious to avoid jus- tice. I have been willing, in order to avoid a popular but unfounded B Tfl rn^WECH OF HON. W. H. TAFT. impression that a Jiwlj^e. in punishing for contempt of his own orcJiT. may be afFected by personal feeling, to approve a law \\ hic'li should enable the contemnor upon his application to have another judge sit to hear the charge of contempt, but this, with so many judges as there are available in the Federal eourts would not constitute a delay in the enforcement of the piocess. The character and efficiency of the trial would be the sanu'. It is the nature and the delay of a jury trial in such Army and Navy. Mr. McKinley and Mr. Roosevelt and the Republican party have constantly advocated a policy with respect to the army and na\y that will keep this republic ready at all times to defend her territory and her doctrines, and to assure her appropriate pai't in promoting permanent tranquillity among the nations. 1 welcome. from whatever motive the change in the Democratic at- titude toward the maintenance and support of an adequate navy, and hope that in the next platform the silence of the present platform in respect to the army will be changed to an acqui- escence in its maintenance to the point of efficiency in connec- tion with the efficiently reorganized militia and the national vol- unteers, for the proper defense of the country in times of war, and the discharge of those duties in times of peace' for which the 'army, as at present constituted, has shown itself so admirably adapted in the Philippines, in San Francisco, in Cuba and else- where. We are a world power and cannot help it, and although at peace with all the world and secure in the consciousness that the American people do not desire and will not provoke a \yar with any other country, we must be prudent and not be lulled into a sense of security which would possibly expose us to national humiliation. Our best course, therefore, is to" insist on the constant improvement in our navy and its maintenance at the highest point of efficiency. Protection of Citizens Abroad. The position which our country has won under Republican ad- ministrations before the world should inure to the benefit of every one, even the humblest, of those entitled to look to the American flag for protection, without regard to race, creed or color, and whether he is a citizen of the United States or of any of our dependencies. In some countries with which we are on friendly terms distinctions are made in respect to the treatment of our citizens traveling abroad and having passports of our ex- ecutive, based on considerations that are repugnant to the prin- ciples of our government and civilization. The Republican party 24 SPfJKCH OF HON. W. H. TAFT. and administration will continue to make every proper endeavor to secnre the abolition of such distinctions, which in our eyes are both needless and oi)})robrious. ANlutie Iiiiu>i(4i'utiun. In the matter of the limitation upon Asiatic immigration, re- ferred to in the Democratic platform, it is sufficient to say that the present Kepublican administration has shown itself able, by diplomatic negotiations and without unnecessary friction with self-respecting governments, to minimize the evils suggested, and a subsequent Kepublican administration may be counted on to continue th« same policy. Conaervatlon of National Resoarces. The conservation of national resources is a subject to which the present administration has given especial attention. The necessity for a comprehensive and systematic improvement of our waterways, the preservation of our soil and of our forests, the securing from private appropriation the power in navigable streams, the retention of the undisposed of coal lands of the Gov- ernment from alienation, all will properly claim from the next administration earnest attention and appropriate legislation. » National Health Bureau. I have long been of opinion that the various agencies of the national government established for ^he preservation of the national health scattered througt severial departments should be rendered more efficient by uniting them in a bureau of the Government under a competent head, and that I understand to be in efPect the recommendation of both parties. Publicity of Campaign Contributions and Expenditures. Another plank of the Democratic platform refers to the fail- ure of the Republican convention to express an opinion in favor of the publicity of contributions received and expenditures made in elections. Here again we contrast our opponents' promises with our own acts. Great improvement has taken place under Republican auspices in respect to the collection and expenditure of money for this purpose. The old and pernicious system of levying tax on the salaries of government employees in order to ')av the expenses of the party in control of the administration has been abolished by statute. By a law passed by the Republi- can Congress in 1907, contributions from corporations to in- fluence or pay the expenses connected with the election of Presi- dential electors or of members of Congress are forbidden under penalty. A resident of New York has been selected as treasurer of the Republican National Committee, who was treasurer of the Republican State Committee when Governor Hughes was elected SPEECH OF HON. W. H. TAFT. 25 in New York, and who made a complete statement within twenty days after the election, as required by the New York law, of the contributions received by him and the expenditures made by him or under his authority in connection with that elec- tion. His residence and the discharge of his duties in the State of New York subject him to the law of that State as to all re- ceipts of the treasury of the national committee from whatevej* source and as to all its disbursements. His returns will be under the oblig-ations and penalties of the law, and a misstatement by him or the filing of a false account will subject him to prosecu- tion for perjury and violation of the statute. Of course, under the Federal law, he is not permitted to receive any contributions from corpoi'ations. If I am elected President I shall urge upon Congress, with every hope of success, that a law be passed requiring a filing in a Federal office of a statement of the contributions received by committees and candidates in elections for members of Congress, and in such other elections as are constitutionally within the control of Congress. Meantime the Republican party by the se- lection of a New York treasurer has subjected all its .receipts and expenditures to the compulsory obligation of such a law. Income Tax. The Democratic platform demands two constitutional amend- ments, one providing for an income tax and the other for the election of Senators by the people. In my judgment an amend- ment to the Constitution for an income tax is not necessary. 1 believe that an income tax, when the protective system of cus- toms and the internal revenue tax shall not furnish income enough for governmental needs, can and should be devised which under the decisions of the Supreme Court will conform to the Constitution. E]lectton of Senators. With respect to the election of Senators by the people, per- sonally I am inclined to favor it, but it is hardly a party ques- tion. A resolution in its favor has passed a Republican House of Eei:)resentatives several times, and has been rejected in a Re- publican Senate by the vottes of Senators from both parties. It has been approved by the legislatures of many Republican States. In a number of States, both Democratic and Republican, substan- tially such a system now prevails. Inacenracy and Insincerity of Democratic Cliarses of E^xtrav- agance in Increase of Offices and Expenditures. Our opponents denounce the Republican party for increasing the number of offices 23,000, at a cost of $16,000,000, during the last year. Such denunciation is characteristic of the Democratic platform. It fails to specify in any w:ay what the offices ar.% and, leaves the inference that the increase was resisted by the repre- 26 ^ SPEECH OF HON. W. H. TAFT. sentatives of Democracy in Congress. As a matter of fact, the net number of offices increased was just about half the number stated ; the increase was due chiefly to the enlarg'ement of the nav3% the construction of the Panama canal, the extension of the rural free delivery and to the new offices necessary in the en- forcement of the pure food meat inspection, railroad rate regu- lation, arid land reclamation, forest preservation and other measures which Congress passed with almost unanimous popular approval. The Democratic platform, so far from attacking any of this legislation, specifically approves much and condemns none of it, and it is, of course, disingenuous to claim credit for ap- proving legislation and yet to denounce the expenditures neces- sary to give it effect. Chargre of Deficit. Again, it charges that a deficit of sixty millions of dollars between the receipts and expenditures during the fiscal year ending June 30, 1^8, occurred. As explained by the Secretary of the Treasury, at least half of this deficit is only an apparent one. The falling off in receipts was, of course, occasioned by the unusual panic, but there is ample free money in the Treasury to meet the difference, and the difference itself is not half of it properly a deficit, because involved in it was the retirement of some thirty-three millions of the bonds of the Government. During the past seven years the income and expenditures of the Government have been nearly equal, some years showing a surplus and others, fewer in number, a deficit. Taking one year with another, including this year, there has been an average sur- plus. The surplus last year, for instance, was greater than the deficit this year; so that, in fact, under the present administra- tion there has been no deficit, but a surplus which is actually in the Treasury. The Democratic platform nowhere points out the expendi- tures which might be reduced or avoided. It would be found generally that to the increases which have occurred. Democratic Representatives in Congress made no opposition, but rather sup- ported the measures providing them, and now the party has not the courage to indicate what part of government cost it would end. It joins the Kepublican party specifically in approv- ing the outlay of $150,000,000 as pensions. It expressly favors also the cost of greatly increased river and harbor improvements, the cost of doubling the navy and of many other enterprises to which it urges the Government. Its attack, therefore,- has noth- ing in it of fairness or sincerity. /^ Hlsli Character and Efficiency of Administration. The truth Is that it is known of all fair-minded men that there never has been an administration in the Government more efficiently conducted, more free from scandal, and in which the SPEECH OF HON. W. H. TAFT. 27 standard of official duty has been set higher than in the present Republican administration, which the Democratic platform has thus denounced. It has had to meet the problems arising from the enormous expansion of government functions under new legislative measures, as well as in the new dependencies, and in the greatest constructive work of modern times, the Panama canal, and its members may well feel a just pride in the excep- tional record for efficiency, economy, honesty and fidelity which it has made. We may rely upon our record in this regard in an appeal to the American people for their approval. The foreign policy of this country under the present adminis- tration has greatly contributed to the peace of the world. The important part the administration took in bringing about an end of the Russian-Japanese war by a treaty honorable to both parties and the prevention of w^rs in Central America and Cuba are striking instances of this. .The arbitration tri'aties signed with all the important nations of the world mark a great step forward in the development of the usefulness of The Hague tribunal. The visit of Secretary Root to South America empha- sized our friendship for our sister republics, which are making such strides in the south hemisphere, and met with a most cordial and gratifying response from our Latin-American col- leagues. The assistance which we are rendering in Santo Do- mingo to enable that government to meet its obligations and avoid anarchy is another instance of successful work of this ad- ministration in helping our neighbors. This administration has, by the promptness, skill and energy of its negotiations, secured dominion in the Canal Zone of the Isthmus of Panama, without which the construction of the canal w^ould have been impossible. It has subriued the heretofore in- surmountable obstacle of disease and made the place of work healthy. It has created such an organization that in six years certainly, and pi'obably in less, the Atlantic and Pacific will bo united, to the everlasting benefit of the world's commerce and the effectiveness of our navy will be doubled. The mere statement of the things actually done by this ad- ministration at home, in our dependencies and in foreign aifairs, shows a marvel of successful accomplishment, and if ever a party has entitled itself to the approval of its works by a renewed man- date of power from the people whom it served it is the Repul>li- oan party in the present campaign. The only respect in which nothing has been done is in the development of our foreign marine. As long as we uphold the system of protection for our home industries we must recognize that it is inapplicable to assist those of our citizens engaged in the foreign shipping business, becaiise there is no feasible means of excluding foreign competition, and that the only other method of building up such a business is by direct aid in the 28 SPEECH OP HON. W. H. TAFT. form of a mail subsidy. I am in favor of the bill considered in the last Congress as a tentative step. The establishment of direct steamship lines between our Atlantic ports and South America would certainly do much to develop a trade that might be made far greater. On the Pacific the whole shipping trade threatens to pass into the control of Japan. Something ought to be done, and the bill which failed was a step in the right direction. Independent Democrats. The Democratic party under its present leadership in previous campaigns has manifested a willingness to embrace any doctrine which would win votes, with little sense of responsibility for its practical operation. In its striving for success it has ignored the business prosperity of the country, has departed from sound eco- nomic and governnxental principles, and has reversed its own tra- ditional views of constitutional construction. Patriotic members of the party have refused to be controlled by party ties, and have either refrained from voting or have supported the Ilepublican candidate. May we not appeal to these courageous and inde- pendent citizens again to give us their support in this campaign, because the reasons for their breaking the bonds of party are stronger to-day than ever before? Length of Speech Made Necessary by Nnmerons Issues. I have now reviewed at great length the principles at issue between the two parties. When I began the preparation of this speech of acceptance I had hoped to make it much briefer than it is, but I- found on an examination of the platform and on a con- sideration of the many measures passed during the present ad- ministration and the issues arising out of them that it was im- possible to deal with the subjects comprehensively with proper explanation and qualification in a short discussion. This is my excuse. Dllfereiiee Between Parties: Prosperity W^itli Republican Success; Business Disaster tVitb Democratic Victory. I have pointed out that the attitude of the Republican party with reference to evils which have crept in, due to the euorinous material expansion of this country, is to continue the Koosevelt policies of progress and regulation, while the attitude of the Democratic party under its present leadership is the change for : the sake of change to the point. of irresponsible destruction, and that there is no hope whatever of a restoration of prosperity in returning it to power. As said in our platform, we Republicans go before the country asking the support, not only of those who have acted with us heretofore, but of all our fellow-citizens who, regardless of past political differences, unite in the desire to maintain the policies, perpetuate the blessings, and make secure, the achievements of a greater America. FOREWORD. The purpose of this book is to furnish in concis:- and con- venient form for reference such information as is likely to be re- quired by speakers, writers, and others participating' m the Uis cussions of the Presidential campaign of 1908. However well ad- vised the sj)eaker or writer may be upon the topics of the cam- paign, he will reqviire for reference many facts and figures which can only be had by consulting numeroLis pjblications, many of them so bulky as to be practicable for desk use only. This work is intended to present in concise and portable form the n ore im- portant of these facts and figures, so condensed and arranged as to be convenient for ready reference in the field, on the stump, upon the train, or wherever they may be desired. The arrange- ment of the book will be apparent upon an examination of the table of contents which occupies the opening page. Each of the subjects likely to require discussion is treated ur.der its proper title and followed by such statistical state. aents as may be required for further reference, A copious index which fol- lows the table of contents will enable those utilizing the volume readily to find the detailed facts which they may require for in- stant reference. The statistical and historical statements pre- sented in the discussions have been carefully verified and the authority, in the more important statements, cited, while the tables are in most cases from official publications of the Gov- ernment or from accepted authorities. It has been .deemed proper to present as fully as practicable information upon subjects likely to receive especial attention, and the space allotted to the chapters on Control of Corpor- ations, the Money Panic, and the relief afforded by the Treasury Department, Wages and Prices, Tariff, the Philippines, and the Work of the Army has been adjusted to the possible re- quirements of those desiring information upon these subjects. Much unfounded criticism has been offered by the Democrats with reference to the enlargement of the Army and the expen- ditures under its operations, and it has therefore been deemed proper to present somewhat in detail information regarding the work which it has so successfully accomplished both in war and in the development of conditions at home. The criticisms of the work of the party in regard to the Philippines, coming . from a party which has already the record of having hauled down the American flag in islands of the Pacific, suggest die im- portance of a full presentation of the splendid work done in those , islands. The constant but imfounded assertions that cost of living has advanced more than wages justifies the detailed dis- cussion of this subject which will be found in the chapter en- Jiitled "Labor, Wages, and Prices." and especial attention is called to the information there presented which fully »..isproves these assertions. EXTRACTS FROM THE CONGRESSIONAL RECORD. Another volume, entitled "Extracts from the Congressional Record." contains brief extracts from speeches delivered in Congress upon subjects likely to be discussed in the present campaign. It contains the best utterances of the party leaders during its entire history upon t'he great subjects likely, to be considered in this campaign. Regulation of Corporations, the Money Panic, Protection, Reciprocity, Trusts. Prices, Republi- can Prosperity, Democratic Adversitv. the Worki'^g^ an, the Farmer, the Soldier, Rural Free Delivery, the Post-Office In- vestigation. Panama. Cuba, the Philippir.es and the Pacific, Shipping, the Navy, and the Record of President Roosevelt are discussed in these concise extracts from the public utterances of party leaders past and present. The volume may readily be used as a pocket companion, in the field or on the train, and will prove a valuable suppleinentary work in connection with this text book.' Both volumes may be obtained upon application to the Na- tional Committee. 29 ii FOUR GREAT FACTS. "Four great facts seem to Justify the Kepublicau party in ask- ing the Yoters of the United States to continue it in control of the affairs of the Government. First, the promptness with which It has fulfilled the pledges of Its plutform upon which It successfully appealed to the people in 1896 ; second, the prosperity which has come to all classes of our citizens with, and as a result of, the fulfillment of those pledges; third, the evidence which that prosperity furnishes of the fallacy of the prin- ciples offered by the opposing parties in 1896, and still supported by them ; and, fourth, the ad-'antages to our country, our commerce, and our people in the extension oi" area, commerce, and international influence which have unexpectedly come as an incident of the fulfillment of one of the important pledges of the platform of 1896, and with it the opportunity for benefiting the people of the territory affected." — From the Republican Campaign Text-Book of 1900. The above quotation from the opening pages of the Repub- lican Campaign Text Book of 1900 applies with equal force to conditions in the present campaign. The four great facts which justified the party in asking the .support of the public in 1900 were : First, that its pledges of 1896 had been redeemed ; second, that prosperity had come as a result ; third, that developments since 1896 had shown the fallacy of the principles upon which tlie Democracy then appealed for public support ; and, fourth, the conditions which had come to other parts of the world and their people as a result of promises fulfilled by the Kepublican party in the United States. These assertions made in the Text Book of 1900 have been fully justified by the added experiences of another eight years. The pledges of 1896 and those made in 1900 and 1904 have been redeemed. The Protective Tariff has been restored ; the Gold Standard made permanent; Cuba freed, given independence, protected from internal troubles and about to be again made a Republic ; the Panama Canal assured under the sole ownership and control of the United States ; a Depart- ment of Commerce and Labor established ; Rural Free Delivery given to millions of the agricultural community ; the laws for the proper regulation of trusts and great corporations strength- ened and enforced ; prosperity established : commerce devel- oped ; labor protected and given ample employment and reward ; intelligence, prosperity, and good government established in dis- tant islands ; and the flag of the United States made the em- blem of honor in every part of the world. All of these great accomplishments have been the work of the Republican party. In each of them it has met the discourage- ment, the opposition, and the hos.tilities of the Democracy. The Protective Tariff was fought at every step, and denounced by the platform of the Democrats as a "robbery." The act estab- lishing the Gold Standard was opposed and the Democratic vote cast almost solidly against it, and that party in its conventions and platforms of 1904 and 1908 deliberately refused to retract in the slighest degree its advocacy of the free and unlimited coinage of silver. In the war for the freedom of Cuba, the work of the Republicans was met with harsh criticism. In the efforts to establish peace and good government in the newly acquired territory, each step met with opposition and false charges and with the demand that the territory and its millions of people be abandoned to internal strife or control by a monarchial government. The acquirement of the right to construct the Panama Canal was met with opposition and ob- struction. The enforcement of law against trusts and other great corporations was denounced as ineffective and designed to deceive the public. The establishment of rural free delivery was discouraged. The splendid prosperity which followed the restoration of the protective tariff was decried and denounced as fictitious and temporary, and an attempt made to sow the seeds of dissatisfaction and discord among the people by com- plaints of the higher cost of food which came as the natural re- sults of the increased demand accompanying general prosperity and high wages. It is upon the evidence of the past twelve years, evidence that the Republican party is a party of progress, and the Democracy a party of inaction, retardment, and fault-f' that the Republican party again confidently appeals for public supp^t in the Presidential and Congressional elections of 1908. 30 REGULATION OF CORPORATIONS. Regrulation of Corporations. The last eight years have been momentous. They havef brought us the problem of industrial and commerciar honesty ; the proper control of our vast industrial forces. The most conspicuous and important part of the work of the present lie- publican administration has been given to this problem — thu "sqiiare deal" in business. Our national prosperity has in itself brought this business questipn to the acute stage of a national crisis. We ai^ as- sured of our enormous national resources, of our power to de- velop them. We have accumulated great national and individual wealth. Now the country is taking up the question of the methods by which such resources have been developed and wealth acquired, recognizing that no industrial system, however ap- parently successful, can peiynanently endure unless it is based on fair competitive methods and equal opportunity for all men. The enormous concentration of commercial power in a few hands has been one of the marked characteristics of the past decade.* It has formed part of this problem and has aroused the country to a consideration of the industrial and economic facts involved therein. The Administration holds that the efficient business man should be fully rewarded for the great services he renders to the public. Tt desires in every way to support and foster honest business. There is no quarrel with corporations themselves, or with the acquisition of wealth, but only with certain forms of corporate organization and management, and certain methods by which such wealth is acquired. Corporations are the proper and necessary machinery of modern business. We cannot carry on our commerce without them. Therefore it is necessary that we so supervise and regulate them that their obvious evils and de- fects be cut away, and the essential part of our business ma- chinery be preserved for the work for which it is absolutely necessary. The community has created corporations; they are artificial things, wholly due to the act of the state. The state is therefore responsible for them and has not only the right, but also the imperative duty, of requiring their proper organiza- tion and management. The Administration has therefore given its attention es- pecially to the Dusiness methods of corporations, to put an end to those methods that are against public interest, and to pre- serve the essential good in the system. In so far as corporations engage in interstate commerce they are subject to Federal law. Most of OTir large companies are interstate in their operations and national in their scope, so the only power competent to regulate them is the National Government. The jurisdiction must be" commensurate with the scope of the subject-matter. Our financial and industrial leaders have deliberately made our businesses national by their combina- tions, blotting off the business map the lines between corpora- tion and corporation, between State and State. They cannot • therefore justly be heard to complain if the legal control of these businesses be also made national, to meet the conditions they themselves have created. Our present sj^stem of combination, concentrating business in the hands af a few men, has entrusted to the corporate mana- ger vast powers. He can apply these forces at any given point, in favor of one man or another ; he can bargain for special favors and privileges; he can use its powers and its crodV. for his own private benefit; he can affect the agencies of public opinion at a thousand points. These powers have in certain instances been wrongly ujed! The credit of coi'porations has been made the tool of orivate gain, to the loss of the stockholder and the public. Power over 32 Rl'JCULATlON OF CORPORATIONS. trartk- lias brt-ii usod to buy unfair advaiitug^es, t«j secure from railroads rcluilcs aiul sccrot private lates, favors in car distrib i- tioii. terminal and dock facilities. The sheer vveif>ht of capii/xl has been, used to crush competitors by ruijious Ipcal prico-cut- tin<^, simply to destroy the bjisiness of otheiis. Skillfnl advau- tage has been taken of the confusion of our corporation laws to obsoire and defeat the rights of minority stockholders and boud- holders. The Kepublican party has taken vig-orou-s action on these ques- tions. It is trying to save and promote business, to maintain an industrial machinery Avhich shall be capable of standing up to the work of an industrial nation. That niachinery must be built on merit and not on fraud or favor. It proposes to see that capi- tal and energy, and labor and brains, have a fair cbance. it [)roposes to see that man win who is a good manufacturer, a good railway man, a good salesman, who g"t.<^^ good business be- cause he gives good service, and not that man win who 5§ cnly ^ood at getting an unfair advantage or at preventing any on<» else from doing business. The business men of the country disive honest methods. T hey desire to succeed simply by giving the best service and the lowest prices, and such success benefits the public also. These men have ihe supp<;rt of the Administration, and they need it agan.wti the unfair business methods of that small but active class of men Vvho succeed merely by crippling the efficiency of competitors, by denying them equal opportunity. Such success means the in- jury of our whole business system. The President has again and again stated the principles of the Administration in this matter in addresses and messages to Congress. "It fs an absurdity to expect to eliminate abuses in great corporations by State action. * * ♦ The National Government alone can deal ade- quately with these great corporations." ******* "Our aim Is to help every honest man, every honest corporation, and our policy means. In its ultimate analysis, a healthy and prosperous expansion of the busi- ness activities of honest business men and honest corporations." * * * "A combination should not be tolerated if it abuses ,^the power ac- quired by combination to the public detriment. * * * Among the points to be aimed at sjiould be the prohibition of unhealthy competition, such as rendering service at an actual los.s for the purpose of crushing out com- petition." Led by President Koosevelt, the National Administrati-jn has therefore been dealing with corporations along the lines of a consistent policy which has never changed in principle. It has enforced the laws that make for fair competition and equal opj)ortunity and has made them essential parts of our cominer- cial system ; equal rates from the railroads, the highways of commerce, have be«n afforded to all shi])pers as never before. Railroad rebates and discriminations, which are the deadliest attacks on equality in business, have been exposed and punished, so that there is to-day less of railroad discrimination bein.g practiced than at any time since the passage of the Interstate Commerce Law^ in 1887. The Standard Oil Company has had its system of unfair railway discriminations laid open in detail to the public, has been indicted in six diiferent judicial districrs, including thirty indictnu^nts with a total of 9,704 offenses enum- erated therein ; in the Northern District of Illinois it has been convicted of 1,463 offenses and a fine imposed of $29,240,000. As the result of the exposure of this system of railway re- bates by the Bureau of Corporations in 1906, and through the in- • fluence of publicity, the railroads have cancelled long-standing illegal and unfair rates, covering almost the entire country. T»ailroad companies have been indicted, convicted and fined For giving railway concessions, as well as shippers who had ac- cepted such illegal discriminations. As a result, the public and the railroads and the shippers of freight have coiue to under- stand that the Elkins Law, which forbids railway discriminations, means what it says ; that it is the determination of the Adminis- tration that the railroads of the country shall be kept open by fair and equal rates for the benefit of all shippers alike, and I hat those secret discriminations which have built up certain favored businesses upon the ruin of many competitors, shall cease and be no more hereafter a part of our commercial system. There have been, of course, the usual protests against these REGULATION OF CORPORATIONS. 33 fines. It is urged that only the individual who did the act should be punished and not the corporation i'or whose benefit it was done. Siich counsels of perfection are futile. The imprisoning of a clerk does not stop railway rebates (and the clerk is usually the highest man ag-ainst whom legal evidence is obtain- able). Industrial crimes by which a corporation benefits are rightly chargeable to that corporation. If the corporation is punished the crime will stop. The Site rman Anti-trust Law has also been wisely used by the Administration to put an end to those forms of combination which are directed either at total suppi^ession of proper competi- tion or at the destruction of competitors by unfair means. Th\i Administration has recognized that combination to a certain extent is necessary and proper, but that on the other hand cer- tain forms of combination, from their peculiar purposes and effects, are clearly against the public interest. The Northern Securitiies case established certain great basic leg-al principles as to the power of the Federal Government over corporations, as did also various other cases tried under the Sherman Law. The result has been to make clear as never before the positive powers granted by the interstate commerce clause of the Constitution, and to point out to the country the lines along which these powers may be used for the regulation of corporations. On the other hand, in the case now pending under the Shi^rman Law against the Standard Oil Company, this law has been applied to a system of unfair methods of competition and the abuse of corporate powers. All of these cases have had the important re- sult of bringing to the attention of the public in concrete shape the great problems involved, and of arousing and educating pub- lic opjnion thereon. Again, the Reijublican party has, during this period, placed upon the statute books a number of fundamental acts greatly strengthening the ]jower of the Administration to carry out the policies above outlined. The so-called Elkins Law of 1903 gave a piitctical means of destroying railway discriminations. It made the crime the same in the case of the shipper as in that of the railroad. It set up a definite standard of the published rate by which discriminations can be judged. It is under the Elkins Act that all the p7-esei>t indictments and .convictions for railway discriminations have been secured. In Jtine. 1906, the so-called Rate Bill became a law. It es- tablished the great principle of the right of the Federal Govern- ment through the Interstate Commerce Commission to regulate railway rates so that the same shall be reasonable. It brought also under the jurisdiction of that body additional classes of common carriers, such as express companies, sleeping-car com- panies, pipe lines, etc.. not theretofore covered bj^ Federal legis- lation. It made complete and final the power of the Government to inspect railway accounts, and prescrilae their form. In 1903 there was also created the new Department of Com- merce and Labor, and in that Department there was established the Bureau of Corporations. The Commissioner of Corporations is given compulsory power to investigate into the organization, conduct and management of the so-called industrial corporations engaged in interstate commerce. He does for industrial cor- porations, to a certain extent, what the Interstate Commerce Commission does for the railroads. The information he thus ac- quires is transmitted to the President only ; and made public as he directs. This provision safeguards the iise of this informa- tion, which may cover matters of private business which .should be made public only upon the responsibility of a high officer of the Government. The work of this Bureau has been that of "efficient pvblicity"— -of setting before the public, after very careful investigation, summarized statements and brief con- clusions showing the important facts of corporate operations. This gives the concise infoi-mation that the citizen will read and upon which he can form an intelligent and clear opinion on these paramount questions of the present. Complex corporate ques- tions are thus reduced to their simple factors of right and wrong, and in this shape the people can settle them promptly. It has been the established policy of the Administration to get the help of the public in settling these great questions. 34 REQVLATION OF CORPORATIONS, Many of the most serious evils in corporate organization and management can be reached only by public opinion. Many forms of unfair competition and morally fraudulent business nevertheless are within the strict meaning of law and cannot \>e attacked by judicial process. The only way in which they can be reached is by the ordinary standards of business honesty as understood by the average citizen. It has been encouraging to see the effect of such a definite policy. Mere general den\incia- tion carries little weight. But when improper conduct-has been authoritatively set forth, with the specific details of time, place, person and amount, there are few managers of business in this counti'v who dare stand up against the weight of public criti- cism thus dii'ect-ed at such transactions. Further, this is pre- ventive ; it operates beforehand. The business manager who knows that his transactions are liable to be examined and ex- posed by expert Government officers hesitates long before doing that which he knows will meet with public condemnation. The eft:'ect of this restraint, therefore, is general throughout busi- ness, and not, like the isolated result of a single court finding, effective only upon the particular parties to the suit and after the evil has been done. Furthermore, this process educates public opinion. Our in- dustrial system is the most complex thing in modern life. The average citizen has no time to investigate its details so as to draw reliable conclusions therefrom. The ignorance of the many is always the unfair advantage of the unscrupulous few. If there is anything which the voter is entitled to demand from his Government it is information in regard to such subjects. He must have it in such shape and with such authority that he will understand and accept these conclusions as a reliable basis for his views on commercial affairs. The busi- ness question is by far the most important now before the country. It is therefore clear that this business education of the public should be carried on as fully and as carefully as any work of the Government, and that the public standards of busi- ness morals be made as definite and effective as possible. This it has been the consistent policy of the Administration to do, and it has gone far toAvard doing it. . Thus the Government by simple exposure wiped off the busi- ness map the greatest system of railway rebates that ever ex- isted, the one exj)osed by the Bureau of Corporations in its re- port of May, 1900. Immediately upon the publication of that report the railroads canceled every illegal rate criticised there- in, as well as many others that were not illegal but nevertheless unfair. Similar action on the part of the Government in regard to certain operations in cotton exchanges has resulted already in the introduction of reforms in the methods of those exchanges. Numerous other instances have occurred where unfair methods of competition have been abandoned through fear of publicity and the small and independent competitors in a great industry have been relieved from the ruinous pressure of secret andv un- fair methods on the part of large corporations. So great has been the progress in public opinion, and so heavy its pressure, that the great corporations, hitherto against publicity, are now themselves openly advocating and adopting it. The most far- sighted business leaders are urging it, for the protection of their own businesses. There has been a sweeping change in public opinion that is one of the greatest advances ever seen in this nation. This whole work of the Republican Administration has dealt with a matter of the highest importance to the nation. Upon its successful outcome depends the permanent welfare of 'this coun- try, the permanent protection of property rights, the standards of business morals that are and will be current among us, the establishment of law as against those that set at nought the law. As the President has said in his message to Congress of January 31, 1908: "It is not a movement to be completed in one year, or two or tliree years. It is a movement whicli must be persevered in until the spirit that lies behind it sinks deep into the heart and conscience of the whole people. It is always important to choose the right end to achieve our purpose, but it is even more important to keep this purpose clearly be- fore us ; and this purpose is to secure national honesty in business and politics." REGULATION OF CORPORATIONS. 35 By the slow process of education, by the testing of present methods available and by suggesting new ones, the work of the Administration has thus been leading up toward that logical advance in the system of dealing with corporations which it [^ clear must soon come. The final solution of this question must be some efficient system of regulation, some control of corpora- tions which shall be positive and active. The Administration has consistently stood for such an advance, believing that the present commercial machinery is too complex to be adjusted by the inflexible, occasional remedy of judicial procedure. It holds that corjiorate business must be regulated in the future by ad- ministrative action on the part of the Government through a ix-rmanent office supervising interstate corporations, making tiieir accounts subject to inspection at will, publishing the im- portant facts of corporate business in concise form, and ])rovid- Mag also for that protection of law-abiding corporations that is the correlative of regulation. No such system can be reached until the public believes that it is necessary. Such public opinion is rapidly growing and will, in time, bear fruit in such a system, but when this system comes, as it ultimately will, it will be largely the results of the process of education and intelligent publicity that for the last eigjit years has been carried on by the Eepublican Administration in con- nection with corporate affairs. Bureau of Corporations. The Bureau of Corporations, a part of the Department of Commerce and Labor, was created in February, 1903, by the act establishing that Department. It is charged with the duty of investigating into the organization, conduct ami management of corporations engaged in interstate and foreign commei'ce (other than common carriers subject to the jurisdiction of the Inter- state Commerce Commission) and of reporting the results there- of to the President, for the information of Congress and the public. Two ideas lie at the basis of its work : Its object is the pro- motion of fair and honest business methods ; its means "efficient publicit3\" Its Commissioner has compulsory powers of obtain- ing information. It has in its employ men of expert training IE corporate affairs. With these forces at its disposal, it gathers minutely and accurately information in regard to the opera- tions of the corporations representing the great staple iiidus- tries of the country, and reduces the vast mass of this informa- tion to such shape that "the man in the street" will read it. It sets before the President, Congress, and the public reliable in- formation as to the operations of the great interstate corpora- tions in such brief and clear form as to show the important tendencies and conditions of corporate business. With such in- .formation as a basis, the great corrective foi'ce of public opinion can be intelligently and effectually directed at those industrial evils that constitute the most important of our present prob- lems. The pubuc will not read great masses of statistics or of industrial facts. These must be collected, it is true, in vast masses, but when presented to the public they must take the shape of brief conclusions, absolutely reliable, w^holly impartial, and dealing only with the significant tendencies of the business or corporation in question. This is the sort of information that the citizen demands, and has a right to demand, from his Govern- ment. On these lines the work of the Bureau has been consistently carried on. In 1905 it issued its first report on the beef in- dustry. In 1906 it issued its report on the Transportation of Petroleum, setting forth detailed facts in regard to a large number of railway discriminations in favor of the Standard Oil Company and its subsidiary concerns, many of these illegal, others not illegal but unfair. Numerous indictments presented 'by the Department of Justice against these concerns were based ion this report, manj'- of which are now pending, two of which "lave been tried, and one of which resulted in the fine of $29,- 10,000 imposed on the Standard Oil Company at Chicago in p90T. In all 30 indictments have been brought under this re- 3C REGUI.ATIOX OF COliroh'ATlOXS. port oCthr Hureaii. inriutliug U,7()4 oftenses in ;ill, unci coveriu'.' a larjre portion of the fOUnLrv. While the criiiiiiial prosecution of this long-established and elVeetive system of railway diseriniinations is very important. a nuK'h more important result fiom tlie work of the Bureau was the s\\ee|;iiii>- elTeet of simple publicity on this system. Almost immedisiiely upon 1 he issuance of this report in 1906, the rail- roads canceled e\ery illcf^al rate criticised in the report, as well as many other rates not illej^ai Ijut unfair, and it is safe to say that never since the pas.saj^e of the Interstate Commerce Act in IS87 has the g-iving- of railway discriminations been so mucli ' iirtailed as it has l)een since the publication of this report- In May, 1907, the liureau [)ublished a re})ort on the Position of the Standard Oil Company in the l^etroleum Industry, showing the additional methods used by the Standard Oil Company lo secure and maintain domination in that industry. In August. 1907, the Hureau pid)Iishcd a report on the Prices and I'rofits in the Peti-oleum Indu.stry, setting- forth mainly the pri(( methods of the Standard Oil Company and their effect on com- petitors and consumers. This series of reports has gone far to lay before the public the essential facts necessai-y for it to form a fair and effective opinion on the operations of the domii\uiii corjjoration in one of our greatest industries, and has largely relie\ed both the public and independent competitors of the un- fair pressure of an almost controlling system of railway dis- criminations. In May, 1908, the Bureau published a report on certain fea tui'es of the operations of cotton exchanges, showing the injuri- ous effects upon that industry of certain regulations and forms on those exchanges, and pointing the way toward improvement therein. Tt also has now under investigation the lumber, tobacco, and iron and steel ind\istries, the harvester industry, inland and coastwise water transportation, and a further inquiry into the operations of the cotton exchanges. • * The beneficial results of the Bureau's work have appeared in the marked diminution of railway rebates, the eliminating of many forms of oppressive and unfair competition, and ©specially in a great advance in the intelligent, effective, and actively ex- pressed opinion of the country as to corporate operations, as well as a far better understanding of our entire commercial system. WORK OF THE DEPARTMENT OF JUSTICE ON CONTROL OF CORPORATIONS. Prosecutions under Sliernian Act and Interstate Commerce Ija^vN. It has been the duty of the Department of Justice to defend the soundness of the positions takea by it in matters relating to prosecutions under the Sherman Anti-Trust Act, so-called, and also under the Interstate Commerce Act, by carrying pro- ceedings thus inaugurated through the various courts and to a final determination in the Supreme Court of the United States. It has been the constant endeavor of the Department to have the material qi;estions involved settled as soon as practicable, and to this end it has moved to advance cases, and has been insist- ent upon the prosecution of the various appeals and interme- diate steps involved. The result has been a definition by the Supreme Court of many aspects of the Sherman Law, and a series of decisions imder which further proceedings in enforce- ment of this law can be taken with reasonable hope of success; the facts in each case being determined by a thorough, and fre- quently expensive, examination by the Department of Justice. The following very brief statement of the cases so far decided, and the particular aspect of the law decided in each, will be found to be of value as noting the progress of the work of re- straining unlawful combinations : I REGULATION OF CORPORATIONS. 37 U. S. V. E. C. Knight Co. — Sugar Trust Case — 156 U. S. 1. This was the first case under the Anti-trust act taken to the Supreme Court of the United States. This was a suit instituted by the Government against the "Sugar Trust." The Circuit Court and the Circuit CDurt of Ap- peals decided against the Government, and their decisions were affirmed by the Supreme Court, which heJd that the acts denounced by the Act of July 2, 1890, are a monopoly in interstate and international trade or com- merce, and not a monopoly in the manufacture of a necessity of life. U. S. V. Trans-Missotiri Freight Association, 166 U. S. 290. This was a suit to enjoin the operations of a combination of railroads engaged in interstate commerce alleged to have formed for the purpose of maintaining just and reasonable rates, and preventing unjust discriminations. The Circuit Court and Circuit Court of Appeals both decided against the Government, but their decisions were reversed by the Supreme Court, which held that the Anti-trust act applied to railroad carriers and embraced all contracts in restraint of trade and commerce among the several States and with foreign nations, and was not confined to those in which the restraint was unreasonable. U. S. V. Joint TraiHc Association, 171 U. S. 505. This was a bill in equity to enjoin the alleged violation of the Anti- trust law by a combination of thirty-one railroads engaged in transporta- tion between Chicago and the Atlantic coast, which had formed themselves into a combination to control competitive traffic, fix rates, etc. The Circuit Court and Circuit Court of Appeals decided against the Government, which decisions, however, were reversed by the Supreme Court, that court reaf- firming the case of U. S. v. The Trans-Missouri Frcii/ht Association and holding that the Traffic Association was an illegal combination. U. S. V. Hopkins et al., 171 U. S. 578. This was a bill to restrain the operations of the Kansas City Live Stock Exchange. An injunction was granted, but the Supreme Court re- versed the decree of the Circuit Court, holding that the bu.-iness of a Live Stock Exchange did not constitute interstate commerce, and was not covered by the Anti-trust act. Anderson v. U. S., 171 U. S. 604. This was a proceeding to restrain the operations of The Traders' Live Stock Exchange, of Kansas City, an association formed for the purpose of buying cattle on the market. A temporary injunction wa« granted and an appeal taken to the Circuit Court of Appeals, which certified certain ques- tions to the Supreme Court for Instructions. The Supreme Court decided that the rules of the Live Stock Exchange were not in violation of the Anti-trust act. U. 8. V. Addyston Pipe and Steel Co., 175 U. S. 211, This was a suit by the Government to enjoin the operations of the cast-iron pipe trust, which attempted to enhance the price of such pipe by controlling and parceling out the manufacture and sale thereof through- out the several States and Territories to the corporations forming the com- bination. The Government's bill was dismissed by the Circuit Court, which decision, however, was reversed by the Circuit Court of Appeals, affirmed by the Supreme Court of the United States. That court held the combination to be a violation of the act, indicating wherein it came with- in the prohibitive power of the Congress and distinguishing the case from the non-violative acts in the case of the United States v. E. C. Knight Company. U. 8. V. Northern Securities Co. et al., 193 U. S. 197. This was a suit instituted by the Government to enjoin the Northern Securities Co. from purchasing, acquiring, receiving, holding, voting, or in any manner acting as the owner of the shares of the capital stock of the Great Northern Railway Company and Northern Pacific Railway Company, and to restrain the railway companies from permitting the Securities Com- pany to vote any of the stock of the said railway companies, or from exercising any control whatsoever over the corporate acts of either of said railway companies, it being charged that the Securities Company was formed for the purpose of acquiring a majority of the capital stock of the two railway companies named in order that it might in that way effect practically a consolidation of the two companies by controlling rates and restricting and destroying competition, in violation of the. Sherman Anti- trust act. The Circuit Court deqided in favor of the Government, and thib decision was afiirmed by the Stipreme Court of the United States. U. 8. V. Sicift & Co. et al., 196 U. S. 375. This was a suit brought by the United States against the "Beef Trust" to enjoin the carrying out of an unlawful conspiracy entered into between Swift & Co. and other defendants and with various railway com- panies to suppress competition and to obtain a monopoly in the purcha-e of live stock and the selling of dressed meats. The Circuit Court decided in favor of the Government, and this decision was affirmed by the Supreme Court, which held that it does not matter if a restrictive combination em- braces restraint and monopoly of trade within a single State if it also embraces and is directed against commerce among the States and that the effect of such a combination was direct upon interstate commerce. Hale V. Henkel, 201 U. S. 43; McAlister v. Henkel, id. 90 (Tobacco Trust Cases). These cases grew out of an investigation by a Federal grand jury in the Southern District of New York of the American Tobacco Co. and 38 REGULATION OF CORPORATIONS. the MacAndrews and Forbes Co., who, it was believed, were violating the Anti-trust laws. Hale and McAllster, officers of the companies, refused to produce books and papers and to testify. The Circuit Court adjudged them in contempt. Writs of habeas corpus were sued out, which, after hearing, were discharged. The Supreme Court affirmed the orders denying the writs. Nelaon v. V. S. (and two other cases), 201 U. S. 92; Alexander v. V. S. (and four other cases), 201 U. S. 117. (Paper Trust Ca.ses.) I This was a bill in equity filed by the Government against The General Paper Co. and twenty-three other corporations engaged in the manufac- ture and sale of paper, alleging that the defendants bad entered into a com- bination and conspiracy to control, regulate, monopolize, and restrain trade and commerce in the manulaclure ol news-print, manila, fiber, and other papers in violation of the Anti-trust act, by making the General Paper Co. their general sales agent. In the Nelson ca»es the United States petitioned the Circuit Court for an order requiring the production before a special examiner of certain books, documents, and paper.s, and requiring defmdants to answer certain questions. Refusing to .obey the orders, the defendants were adjudged guilty of contempt. The Supreme Court affirmed the decision of the lower court. The Alexander cases were similar to the Nelson cases, except that there were no proceedings in contempt, appeals having been taken on be- half of the separate deundants to the Supreme Court from the order of the Circuit Court requiring them to produce the books, papers and docu- ments requested and to answer the questions put to them. The Supreme Court declined to entertain the appeals on the ground of writ of jurisdic- tion. With regard to the latter case it may also be stated that on May 11, 1906, judgment was ordered In favor of the Government by the Circuit Court for the District of Minnesota, dissolving the combination and affording the Government all relief pra3'ed for in its bill. A number of other cases l»a\e been successfully prose- cuted by the Department of Justice, but which did not reach the Supreme Court, including the case against the Federal Salt Co., The Nome Retail Grocers' Association, The Otis Elevator Co., The National Association of Retail Druggists, and others, the details of which are given in a statement as to the civil and criminal cases instituted by the United States under the Sherman Act and the Act to Regulate Commerce, and which may be had upon application to the Department of Justice. Important pro- ceedings in similar cases are now being carried on in the courts by the Department of Justice, including a proceeding agaln.st the Standard Oil Company in consequence of a bill in equity filed in the Eastern District of Missouri, alleging that the Company is maintaining a combination in restraint of trade in the manufac- ture and sale of petroleum ; the case against the Reading Com- pany and others to dissolve a combination among the anthracite coal carrying roads : the case against the American Tobacco Com- pany and others ; the case against the Powder Trust, so-called, in all of which cases the Department oi Justice is actually en- gaged, either in investigation of evidence in support of the alle- gations of the bill or is actually taking testimony in connection therewith. It ayipears from the records of the Department of Jvi.stice that sixteen bills in equity have been brought under the Sherman act during the administration of President Roosevelt, as against eleven bills during the entii'e time of the previous ad- ministrations ; that eighteen indictments have been bro^^ght under the same act, as against five indictments previously; that seven convictions in criminal cases have been secured, as against a single conviction in the previous history of the administration of this law. A total of $96,000 has been collected in fines from the violators of the Anti-trust enactment. Enforcement of Act to Rej^ulate Commerce. The following statement of the proceedings undertaken to enforce the Act to Regulate Commerce, with the Elkins and Hep- burn amendments, indicates the activity with which the De- pai'tment of Justice, under the administration of President Roosevelt, has been proceeding in this important aspect of its duties. 12 petitions to enjoin departure from published tariff: 8 temporary injunctions granted and answers filed. 3 injunctions granted. 1 pending. REGULATION OF CORPORATIONS. 39 11 petitions to enforce order of Commission : 1 defendant complied and ijetition dismissed. 4 petitions dismissed. 2 injnnctions granted. 1 discontinued. , 3 pending. 4 petitions to compel filing of annual reports: 1 dismissed. 3 discontinued. 2 proceedings .to compel defendants to give testimony before Commission : Granted. 1 petition to test law with reference to issuance of franks by ex- press companies : Pending. 7 indictments for charging less than established rates: 2 nol-prossed. 5 pending. 4 indictments for pooling : 1 dismissed. 3 nol-prossed. 52 indictments for receiving rebates : 18 convictions. 1 acquittal. 1 dismissed. 2 demurrers sustained. 30 pending. 59 indictments for granting rebates: 13 convictions; fines imposed aggregating $697,000. 1 dismissed. 2 nol-prossed. 43 pending. 6 indictments for conspiring to obtain rebates : 2 convictions; 1 case, 2 defendants fined $1,025 each; 1 case, defendants fined in the aggregate $25,000. Total fines im- posed, $27,050. 1 nol-prossed. 1 acqiiittal. 2 pending. 1 indictment for conspiring to»grant rebates: Demurrer filed and sustained. 1 indictment for failure to file schedules : Conviction ;' fined $15,000. 1 indictment for discrimination in distribution of cars : Demurrer filed and sustained. 1 indictment charging conspiracy to violate Interstate Commerce Laws : Demurrer filed and sustained. Total: 129 indictments, 34 convictions, 2 acquittals, 8 nol- prossed, 5 demurrers sustained, 3 indictments dismissed, and 77 pending. In connection with the foregoing, important results have been obtained in the Supreme Court, the law having been finally tested in the following cases : Great Northern RailiDay Company v. United States, decided at the present term. This case involved a question of the proper construction of section 10 of the Hepburn law of June 29. 1906, It was contended by the Railroad Ctmipany that said section should be construed as showing an intention on the part of Con- 40 lU'J.l LAlKiX Of COUrORATIONS. press to rcloaso from future prosecMition all offenses committed ajrainst the Klkins Aet whieli oceurrccl prior to the J29th day of June. 190(). exeopt sueh eases as were at that time actually pend- ing in the court-!. The Supreme Court followed the contention of the (Joverninent and held that all ojTenses which were com- mitted against the Elkins Act niif>fht be prosecuted at any time within the statute of liniit'itions even though such prosecutions were instituted after the 29th day of June, 1906. Jl'he Armour Packing (Jornimfiy v. United States, decided at the present term of the Supreme Court. This case involved the determination of two important questions of law : First. It sustained the contention of the Govel-nment that a prosecution for g-ranting- a concession in violation of the Inter- state Commerce Law with respect to the transportation of mer- chandise in interstate commer^'e, might be instituted and prose- cuted in any district through which the transportation was carried. It was, in effect, held by the court that in such an offense one of the essential elements of the crime was trans- portation, i ? . . ^ Second. The court also said that a contract betw^een the carrier and the shipper for the transportation of freight for a reasonable length of time at the then established legal rate wo\dd not protect either the carrier or the shipper from future prosecutions under the law in case the common carrier changed the rate, as pi-ovided by law, and the shipper and the carrier should still continue to observe the old rate as provided for in the contract. Stcift & Co. V. United States. Cuclahy Packing Company v. United States. Nelson Morris & Co. v. United States. Chicago, Burlington &■ Quincy R. R. Co. v. United States. Each of the above cases decided in favor of the Government, following the decisions in the Armour case. Interstate Commerce Gomymissioii r. Baird et ah Baird and other agents of certain coal carrying roads de- clined to give testimony before the commission in the anthracite- coal-rate investigation. On June 12, 1903, the Circuit Court for the Southern District of New York denied the motion to require the defendants to answer the questions. On April 4, 1904, the Supreme Court reversed the Circuit Court and remanded the case for fui'ther proceedings, holding that tue questions propounded were proper and should have been answered. In this case fur- ther construction of the Elkins Law^ was made. United States v. Chespeake d Ohio Raihoay Company et al. In this case a petition was filed under the Interstate Commerce Act of the Elkins Law to restrain,the Chespeake & Ohio Railway Company from giving preferences and rebates in coal rates to the New York, New Haven and Hartford Eailroad Company. On February 19, 1904, an injunction was granted in the United States Circuit Court for the Western District of Virginia. On February 19, 1906, the Suj^reme Court affirmed the judgment of the Circuit Court. The following cases pending in the Stipreme Court of the United States and undecided : The Chicago d Alton Railway Company et al. v. United States. On December 13, 1905, an indictment was returned charging a violation of the Act of F'ebruary 4, 1887, as amended by the Elkins Act, for offering, granting and giving rebates to Schwartzchild & Sulsberger Company. Defendants wei'e con- victed. On December 13, 1905, an indictment was returned under the Elkins Act for granting and giving rebates on freight. July 6, 1906: verdict of guilty. July 11, 1906: the defendant corpora- tion fined $40,000.00, and individuals fined $10,000.00 each. Case appealed to the Circuit Court of Apr)eals of the Seventh Circuit on April 16, 1907. The judgment vas affirmed by the Circuit Court of Appeals on January 27, 190S, and a Writ of Certiorari was allowed to the Supreme Court of the United States. The point involved in this case is whether the allowance by the Railroad Company of $1.00 a car to the Schwartzchild & Suls- REGULATION OF CORPORATIONS. 41 berger Company, at Kansas City, as and for a pretended rental and use of the Schwartzchild & Sulsberger tracks constituted a rebate to said company from the Alton Jiailway Company. The New York Central dc Hudson River Railway Coinimny v. United States. On March 14, 1906, an indictment was returned under the Interstate Commerce and the Elkins Laws for grant- ing rebates. On November 15, 1906, the Kailroad Company was found guilty and sentenced to pay a fine of $18,000.00. The case was brought to the Supreme Court on a Writ of Error. This case involves numerous questions of law arising xinder the Elkins Act. New York Central & Hudson River Railway Comimny et al. v. United States; indicted on May 4, 1906; convicted October 17, 1906; the railway company sentenced to pay a fine of $108,000.00. The case was brought to the Supreme Court on a Writ of Error. New York Central & Hudson River Railway Company v. United States. Indictment returned August 10, 1906, for violation or the Elkins Act in offering, granting, and giving rebates. De- murrer sustained to the indictment upon the ground that the railway company, although a party to the joint rate, did not file and publish this rate, as required by law. The case was appealed by the Government to the Supreme Court of the United States and has been advanced for hearing early n/^xt terai. Important cases have been decided in the lower courts under this law, and, in addition, there are now pending on appeal, cases in which very large sums of money have been imposed as fines, including the fine of over twenty-nine millions of dollars imposed on the Standard Oil Company in the following case : United States v. Standard Oil Company (District Court, Nortliern Illinois). August 27, 1906, indictment returned charg- in:'- a violation of the Elkins Act in receiving rebates. November 10. 1906, demurrer filed. January 3, 1907, demurrer overruled. March 4 to April 12, 1907, trial. April 13, 1907, verdict of guilty. August 3, 1907, sentenced to pay fine of $29,240,000. Appeal to Circuit Court of Api^eals for the Seventh Circuit.* Further cases against the same company are jjending. Another imposition of a heavy fine was that in the following case against the Atchison, Topeka and Sante Fe Kailroad Com- pany : United States v. Atchison, Topeka and Santa, Fe Railway Com- pany (District Court, Southern California). January 9. 1907, in- dictment returned charging a violation of the Elkins Act in granting and giving rebates. April 17, 1907. demurrer filed. April 26, 1907, demurrer overiruled. September 30, 1907, trial — verdict of guilty on all counts. November 7, 1907, sentenced to pay a fine of $330,000. Prosecutions arising out of these and other transactions have been begun against a considerable number of defendants, the full list of such proceedings being given in detail in the publica- tion of the Department of Justice before cited. RAILWAY REGULATION. "Work: of tlie Interstate Commerce Commission. The railways of the country are the main highways of com- merce. Their ability to transport traffic measures the profitable production of this vast country. Next to personal liberty and security the right to use these highways on equal terms is the most primary and fundamental right which the individual can possess. Upon this depends his ability to engage success- fully in any undertaking requiring the interchange of commod- ♦ The opinion of the Circuit Court of Appeals was filed July 29 and reversed the judgment of the District Court and remanded the case for a new trial on the ground that certain errors of law were committed by the trial court. The Attorney-General will apply for rehearing in the Court of Appeals and, failing that, will seek to have its judgment reviewed and reversed or modified by the Supreme Court of the United States (see p. 49). 42 REQULATION OF CORPORATIONS. ities. The marvelous growth of our railways, their iucompar- uble utility, the indispensable service they perforin, the vast eiipital they represent, and the enormous amount of labor they employ, all require their subjection to adequate public control. IliMtory of lieiriMlatiuii to Control Railways in tlie L'nited States. The first serious attempt at Federal railway control was the passage of the Act to reg-ulate commerce, commonly known as I'.ie Interstate Commerce Law, in 1887. The administration of this law was committed to a Commission of five members, of whom not^more than three should belong to the same political party. The number was increased in 1906 to seven members, with the requirement that not more than four should be of the same political party. The Commission was intended to be, and in fact has always been, strictly non-partisan. Under the original law and its various amendments the Commission exercised such authority as was conferred upon it by the Cong-ress, and the results were in the main highly satis- factory. The original law did not remedy all existing evils, but it did bring gi-eat relief. The publicity secured in respect of rates, contracts, and practices was alone sufficient to wipe out niany of the worst existing transportation abuses, and the cases decided by the courts furnished the legal groundwork for a more perfect superstructure. Far from producing the disastrous results said to be inherent in Government regulation, the best interests of both railroads and shippers were subserved. Between 1887 and 1907 the railroads increased by about 80,- 000 miles, more than three times the distance around the earth, and their operations, facilities, and equipment were augmented in an unprecedented manner, while the prosperity and wealth of the country challenged the admiration of the world. Liuler the scrutiny of the courts it was found that the orig- inal law was defective, not in its promulgation of fundamental rights and duties so much as in the plans for its enforcement, and the experience of the Commission brought to light abuses and certain methods of circumventing the law which were not contemplated, or even known, at the time of its passage. It was found, for instance, that although it was unlawful to charge an uni-easonable or discriminatory rate, and the Commission could award damages for such charge, it was without authority to require reduction of the rate for the future. Discrimina- tions were foimd to exist in collateral services rendered by the carriers, such as icing, refrigeration, elevation, storage and switching charges; and from the standpoint of sound public policy there was perhaps nothing more offensive or destructive to private enterprise than the unfair and deadly competition engendered when the railroad exceeded its duty as a carrier and became also a purchaser and shipper over its own line — a frequent occurrence in the case of such staple commodities as grain, coal, and lumber. This practice, if allowed to exist, would easily have created in the railroads an, absolute monopoly in the purchase and sale as well as in the transportation of all com- modities in which they might choose to become dealers. The Hepbnrn Act. Recogni/.ing these defects and the necessity for their re- moval, the Kepublican Congress passed, and the Eepublican President approved, in June, 1906, the so-called Hepburn law. This enactment may, as applied to the general business interest of the country, including both consumer and producer, be termed without exaggeration the most fundamental, beneficial, and pro- gressive legislation adopted since the Constitutional amendments which followed the Civil War. It is most emphatically the an- noi^ncement in the law of the land of the doctrine, not only of the gi-eatest good to the greatest number, but of absolute and complete justice to all. Justice may be attained in two ways— by prevention or by prosecution. Any law designed to benefit the public at larjre must look to prevention rather than prosecution, and although the Hepburn law provides penalties sufficient to act both as a deterrent and a punishment its REGULATION OF CORPORATIONS. 43 purpose is to provide for the prevention of abuses rather than their punishment after discovery. Damages will seldom com- pensate a man whose business has been destroyed by rebates allowed to a competitor. His safety lies in the absolute pro- hibition of those rebates. With these prefatory remarks in mind, the leading provisions of the Hepburn law may be briefly summarized as follows : 1. It amended the Elkins law so as to restore the imprison- ment penalty for rebating, made the receiver of the rebate equally guilty with the giver, and provided for the recovery of threefold damages in case of acceptance of rebates. Even before this addition to the law, such vigorous prosecution of rebate cases had been conducted by the Republican Attorney- General, that the practice had become decidedly dangerous, and the statute was shown to be an effective instrument for the punishment and prevention of the crime. Through the enforce- ment of this Act many fines have been imposed upon carriers and shippers. As compared to rebates, nothing in the past had so powerfully aided the aggressions of industrial trusts, nothing connected with these combinations had been so offensive and destructive to the independent dealers. Within the past four years this evil has been thoroughly suppressed. This is per- haps the greatest benefit that could be conferred upon the general business interests of the country. It gives each man the same opportunity and puts the small dealers on a footing of equality with their largest rivals so far as transportation charges are concerned. The salutary provisions of this law and the resolute and persistent efforts of the Attorney-General during the present administration have practically removed this greatest and gravest of railroad abuses. 2. The Hepburn law gives the Commission power to reduce a rate found to be unreasonable or discriminatory. The primary necessity is equality of charges, but if an established sched- ule of rates, though actually observed in all cases and applied uniformly to everybody, is unreasonable because excessive, or unfair because it is discriminatory as between different locali- ties or different articles of traffic, then there must be some efficient way of changing the schedule so that it shall be reason- able and free from discrimination. Any remedy in the courts by way of an action is, in the nature of the case, impracticable, for it can only relate to the past and does not act as a pro- tection for the future. The amount involved in a particiilar transaction and the pecuniary consequences to a single individual are frequently so small in comparison with the cost of pro- tracted litigation in the courts, that any known civil remedy to right offenses of that description has proved futile and in- adequate ; and even if the person injured could secure damages for past transactions, the offensive rate would still remain iji eltistence. Clearly the adequate remedy is a change in the rate itself, and this remedy is provided in the Hepburn law. To any shipper, large or small, it provides relief by a simple and inexpensive method, and not only allows him the damage he has suffered but also provides against a recurrence of similar offenses in the future. And as the free and equal u^se of rail- ways is a political right which it is the duty of the sovereign to enforce, under the procedure now in force the individual shipper is relieved of the burden of expensive and protracted litigation and that task is placed where it belongs — upon the public at large as represented by the Government. All the shipper is required to do is to show the fault to the Commission. The Commission enters its order of relief, and faihn-e of the. carrier to comply therewith becomes an offense, not against the shipper who instituted the action, but against the United States itself ; and if further legal proceedino-s are necessary the strong arm of the Government, backed by its unlimited resources, proceeds to enforce the shipper's rights. As a practical matter, however, every order the Commission has entered since the adoption of the Hepburn law has been and is now being obeyed by the carriers. That its remedies are appreciated and applied by the shipping public plainly appears from the fact that the number of formal proceedings instituted before the Commission since June, 1906, almost equals the total number instituted between 1887 and 1906. 44 REGULAriOy OF CORPORATIONS. ."5. 'llie oorrective orders of the Commission are now self-ot)- erative. Under the former procedure if a carrier elected not to comply with an order it was necessary to bring- suit to require I'nforciMiiont, and the litigation, inehuiinf>- a[)jx'als, might con- sume several years, diirini'' all of which time the party injured was without relief, aiul perhaps if the I'elief souj^ht was finally obtained it came too late to be available. Under the Hepburn law if a carrier believes that an order is not just and lawful it must assume the burden of securing- its abrogation by tne courts; but it is to be assumed that under the administration of the law by an intelligent, expert, and non-partisan Com- mission very few cases will arise in which the carrier could convince the courts that the Connnission's order of relief is unjust. As stated above, no such case has yet appeared. n) 4. By requiring- thirty days' notice oX cnanges in rates, th4' Hepburn law has abolished the so-called "midnight tariffs," whereby, under legal forms, favored shippers were g-iven advaii- tag-es in rates which really amounted to rebates. All incidental services, such as icing, storage, refrig-eration, elevation, and the like, are subject to the same restrictions as the transportation itself, and abuses in the use of these incidental services can no longer exist after they are discovered. T^Ioreover. express companies, sleeping car companies, and pipe lines have been made subject to the law and removed fi-om tne liekl ot private uai-- gain. So far-i'eaching is the application of this general prin- ciple that even where the shipper performs some part of the transportation service, or furnishes some instrument.iiity in con- nection therewith, such as private cars or elevation of grain, the Commission may reduce the compensation allowed by the railroad in case it is found to be excessive. 5. The Commission is authorized to prescribe the fornix of any and all accounts, records, and memoranda kept by carriers subject to the Act, and to employ special examiners who sxiaii have authority to inspect and examine any and all of such ac- counts. The work involved in prescribing a uniform system of accounting has not yet been completed, but it is possible to make a more or less accurate prediction of the benefits expected to accrue from this provision. The right to examine the car- riers' accounts at any and all times is perhaps the most adequate means yet suggested for the prevention and detection of re- bating and other illegal practices. The provision opens to the Government some degree of administrative supervision over the manner in which the carriers comply with the duties imposed by the law and, by localizing the responsibility for rigid en- forcement of the accounting system prescribed, correct applica- tion of funds would seem to follow almost automatically. It is further to be expected that a uniform and absolutely truthful system of accounts will not only make railroad reports reliable information for investors but will also produce a stability iti railroad securities hitherto unknown. In other words, the market value of railroad securities will automatically adjust itself to the actual commercial value of the property, and cease to be a barometer of questionable operations of high finance. 6. The Hepburn law absolutely prohibits a railroad from acting as a dealer in the commodities it transports. The mere .statement of this provision indicates its fundamental necessity, justice, and importance. It restricts the railroad to its proper sphere of action — -trans])ortation, and relieves the })ublic of tnat peculiarly unfair and destructive competition which results when the railroad becomes at once buyer, carrier, and seller. Perhaps no more honest and unbiased tribute has yet been paid to the wisdom of the administration which placed this law upon our statute books than is found in the Commission's report to the Congress for 1907, summarizing the improvements which ha\e resulted from the rate law. The portion of the report referred to reads as follows : It is likewise true that the substantial and permanent benefits of this law are indirect and frequently unperceived even by those who in fact profit by its observance. It means much for the present and more for the fi'tiire that the principles of this law have gained greatly in general undrstanding and acceptance. The injustice of many practices which were once almost characteristic of railway operations is now clearly ap- prehended, and an insistent public sentiment supports every effort for their suppression. By railway managers almost without exception the amended REGULATION OF CORPORATIONS. 45 law has been accepted in good t'aitii, and they exhibit for the most part a sincere and earnest disposition to conform their methods' to its re- quirements. It was not to be expected that needed reforms could be brought about withbut more or less difficulty and delay, but it is unques- tionably the fact that great progress has been made and that further improvement is clearly assured. To a gratifying extent there has been readjustment of rates and correction of abuses by the carriers themselves. Methods and usages of one sort and another which operated to individual I advantage have been voluntarily changed and it is not too much to say that there is now a freedom from forbidden discriminations which la actual and general to a degree never before approached. As this process goes on, as special privileges disappear, and favoritism ceases to be even I suspected, the indirect but not less certain benefits of the law will become -more and more apparent. An incidental respect in which equality of treatment has been greatly promoted is in such matters as switching, terminal, demurrage, recon- j signmcnt, elevation, and other charges making up the aggregate cost of , tran.'portaticn. In the past it was often within the power of a carrier i to waive charges of this nature in favor of particular shippers while 1 collecting them from business rivals. Now the law and the rules of the I Commission require all charges of this description to be plainly stated in the tariffs and to be applied with the same exactness and uniformity as the transportation rate itself. This is only one of the ways in which distinct advance has been made toward placing competing shippers in each locality upon a basis of equality in the enjoyment of public service. It is this general and marked improvement in transportation con- ditions that the Commission observes with special gratification. The amended law with its enforceable remedies, the wider recognition of its fundamental justice, the quickened sense of public obligation on the part of railway managers, the clearer perception by shippers of all classes that any individual advantage is morally as well as legally indefensible, and the augmented influence of the Commission resulting from its increased authority, have all combined to materially diminish offensive practices of every sort and to signally promote the purposes for which the law was enacted. _, The so-called hours-of-labor law, restricting the* hours of labor of employees eng-aged either as trainmen or as tele- graph operators, became effective March 4, 1908, in spite of the earnest entreaties of railroad counsel for postponement of its effective date. The Commission is authorized to execute and en-' force the provisions of this law. Although the great object of the Act is to promote the safety of travelers \ipon railroads, by limiting the hours of service of employees within reasonable bounds, it is none the less true that in actual operation it enforces humane and considerate treatment to employees as well as greater safety to the public. Upon the courage, fidelity, and accuracy of these employees depends the life of every one who travels by railroad. The propriety of this legislation, in respect either of the traveler or employee, needs no demonstration, but its enactment does furnish additional evidence of the desire of the Republican administration to enforce the rights of the employee so far as they fall within its jurisdiction. For enforcement of the criminal sections of the law the Com- mission must depend upon the cooperation of the Department of Justice. In this quarter the Commission has been sustained and encouraged in its difficult work and the law has been enforced with a degree of ability and success never before approached. Between the Department and the Commission the most cordial relations constantly obtain, and they have acted together in harmonious effort and with a common purpose to promote the public welfare. The last report of the Commission, submitted to the Congress in December, 1907, contains this significant state- ment : In connection with this work of enforcement of the law by means of criminal prosecutions, the Department of Justice and its various District Attorneys have, throughout the year, been active and eflecfcive. Almost without exception those prosecutions brought to trial have resulted in con- victions ; also a number of highly important cases have been won in the appellate courts. This tribute from an independent and non-partisan board to a Eepublican Attorney-General carries its own comment. During the past four years the safety appliance laws have also been the subject of many judicial decisions which materially strengthen and reinforce their requirements. This humane leg- islation has proved of incalculable benefit to railroad employees and the public generally. It safeguards their dangerous and re- sponsible work, and at the same time gives added security to millions of travelers. These are immense benefits to the public and to hundreds of thousands of the most intelligent and de- serving workingmen in the country. 46 REGULATION OF CORPORATIONS. The IlesaltH ObtnintMl. The total number of prosecutions broug-ht i;i the courts lo enforce the Interstate Commerce hivv under the six years ot President Roosevelt's administration ending December 31, 1907, iunounted to 50 per cent, more than the total number brought in the fourteen years prior to his administration diriug which the Interstate Commerce law was in force. In detail the prose- cutions under i'residcnt Koosevclt's u(iiuiTiistratioii and tiie re- sults thereof are as follows: The iJejKirtmeut of Justice has secured 126 indictments, upon which there have been 34 con- victions, 2 acquittals, 2 suits nolle prossed. demurrers sustained in 5, indictments dismissed in 3, and 74 are pending. The foregoing summary includes all acti-)ns brought during President Roosevelt's administration, both prior and subsequeni to the enactment of the Elkins law in 1903. As indicating the efficiency of that legislation, it appears that 120 of the 126 in- dictments mentioned have been secured since the passage of that Act. Of these indictments 49 were for receiving rebates; of that number 27 are still pending and convictions have been secured in 18 out of the remaining 22 cases ; the aggregate fines imposed were $29,520,075, or a total of $280,075 if the recent Standard Oil fine of $29,240,000 be eliminated from the list. For the granting of rebates 56 indictments have been secured, of which 40 are still pending. Convictions have been secured in 13 out of the. remaining 16 cases, and the fines imposed aggregate $697,000. Six indictments have been secured for conspiring to obtain webates. Two cases are pending and two convictions have been secured in which the fines imposed amount to $27,050. One conviction has been secured for failure to file tariff schedules and a fine of $15,000 imposed. A fair conception of the work performed by the Commission in the field of regulation is not possible without reference to the results attained in respect to these cases in which formal complaint is not filed, nor proceedings of a formal nature pur- sued by the complainant. The public is not advised of the full extent of the work accomplished in securing, through correspond- ence, the voluntary adjustment by carriers of questions in dispute relating to interstate transportation, nor is the public cognizant of the extreme importance and value of the results attained. Through the medium of correspondence is secured the settle- ment of many matters extremely vexatious to shippers. The questions thus amicably adjusted are not alone questions affect- ing the interest of individuals ; on the contrary, the effect of the action taken by carriers in the adjustment of these complaints is often of widespread interest and advantage to large communi- ties, if not indeed of vital importance to considerable sections of country. Controversies arising out of the relations between the carriers themselves are likewise, in many instances, pre- sented to the Commission for arbitration. The Commission is also called upon frequently by traffic officials of carriers to in- dicate what is considered to be the proper and lawful course to be pursued in respect to the application of rates or regulations affecting transportation. Thus it will be seen that many great benefits result from the adjustment or settlement, through cor- respondence, of questions informally submitted for investigation. During *1907 more than 4,300 complaints of this character were filed with the Commission, as against 503 in the year 1905, and 1,002 in the year 1906, shoAving an increase of more than 400 per cent, over the preceding year. Upon such complaints reparation was allowed to injured shippers in 561 cases, aggre- gating about $104,700. All of the adjustments involved have been seciired as the result of friendly intervention and corre- spondence by the Commission with the parties interested. These Informal complaints relate to every conceivable subject connecte'd with the rates, methods, practices, and service of interstate car- riers. Perhaps no part of the Commission's work since the passage of the Hepburn law has been of more far-reaching importance, or will be more productive of equality of treatment and charges, than the reforms which have been instituted in respect to the REGULATION OF CORPORATIONS. 47 publication and filing- of tariffs. In the past many tariff publi- cations were so vokuninous, intricate, and complex that it was difficult even for an expert to determine a particular rate. Op- poi-tunities to get business were met by the issuance of tariffs "expiring- with this shipment;" by quotation of rates found in some other carrier's tariffs and applicable via another route ; by quotation of rates not found in any tariff"; by forwarding- under regular tariff rates and refunding an agreed upon proportion thereof, and by forwarding under regular tariff rates and agree- ing to "protect" the rate of any competing carrier. Joint through rates were frequently in excess of the sums of the local rates between the same points, and the tariffs contained nota- tions that if lower combinations could be made upon given points, such lower combinations would apply. Ttie net result of this situation was that no absolute rate was stated. The large shipper with a force of tariff' experts at his command by means of his special knoVledge of the possibilities of combi- nations, rates via competing routes, reconsignment and other practices could secure rates lower than those which appeared on the face of the tariff's to be in force, and perhaps the only person who paid the full tariff rate was the si*iall shipper with- out the expert "knowledge necessary to manipulations of this sort. Definiteness, clearness, and simplicity in stating transpor- tation charges, uniformity in api^lying rates so stated, and stable conditions are the ends aimed at in the law and enforced by the Commission. The rules which the Ctymmission has promul- gated have eliminated the complexities and contradictions which in the past have characterized tariff construction and have re- sulted in securing the publication of a single rate for a given service applicable to the shipper without expert knowledge as well as to the industrial combination with a force of trained men at his command. Perhaps more than individual reductions of excessive rates, or convictions for rebate, this reform has brought about absolute equality between shippers large and small in the payment of freight charges. Generally speaking the exis.tence of a joint through rate in excess of the sums of the Ideals was indefensible, and the Commission's rale^ upon this subject have resulted in the actual reduction of such higher through rates in thousands of instances. The magnitude of the work is suggested by the fact that in the 12 months ended No- vember 30, 1907, there were filed with the Commission 220,982 tariff publications, all containing changes in rates and rules governing transportation, and about 400,000 notices of concur- rence in tariffs. It cannot be doubted that the reformation of the railroad tariffs of the country in such shape that the legal rate can be easily ascertained by a person of ordinary intel- ligence will be perhaps of as much benefit to the carriers and their agents as it is to the public at large. THE COURTS AND TJIE CORPORATIONS. The work of the Department of Justice and of the Inter- state Commerce Commission with reference to corporations is stated in the chapters relating to those branches of the Govern- ment, but the following summarization of the important cases acted upon by the courts during the past four years will be of additional value in this connection. The Act of June 29, 1906, known as tjie Hepburn Eate Law, amended and strengthened the Interstate Commerce laws re- specting rebates in interstate transportation, and in many other important particulars, embracing within those laws oil pipe lines, express companies, and sleeping car companies as common car- riers in interstate transportation, prohibiting interstate passes or free transportation, prohibiting railroads to transport from one State or Territory to another, or to a foreign country, com- modities in the production or manufacture of which they are interested directly or indirectly, giving the Interstate Commerce Commission power to determine and enforce just and reasonable maximum rates, and enlarging the powers of the Commission 48 REl.lLATHiS OF COlirOKATIONS. i(> elicit and compel information from rij,ilroad carriers as to iiieir capitali/ation. in(lel)to(liies.s, etiriiing', opfration, el'. Important eases are now pending in the courts I'elative to va- rious features oi" this Uiw, especially the eonnnodity clause, the power of the Commission to lix rates and to compel the pro- duction of information. These eases are under the special con- trol and direction of the Attorney-General, and will receive his personal attention in the argument in the Supreme Court when they reach that tribunal. In the Jicof 'fnt.st Catie the Supreme Court held that a conv- bination of a dominant proportion of the dealers in fresh meat throufyhout the i;uit..*d States, in order to regulate prices and re- strict shipmeuts. is an illegal combination within the prohibition of the Sherfiian Anti-Trust law. (Decided January 30, 1905; 196 U. S.. 375.) In the cases against the Ncic York, New Haven d Hartford and the ChcHupeah'e tt- Ohio RailwayiJompanies, the important point decided by the Supreme Court was that a carrier under the interstate Commerce Acti. cannot contract to sell and trans- port and deliver a certain commodity when the transaction amounts to granting indirectly a less rate than the pid^lished rate for the transportation ; that, whatever the device or method, Ni.ch a contract is illegal under the Interstate (.'ommerce laws if the amount charged for ti-ansportation is less than the pub- lished rates, (Decided February 19, 1906; 200 U. S., 361.) In the recent case of the Great Northern RaUwaii Comjmuii v. United States (decided February 24, 1908, 208 U. S., 452), the Supreme "I'ourt adopted the Government's construction of section 10 of the Hepburn law, and held that the provision therein con- tained relating to pending prosecutions was only intended to save methods of procedure provided for bj' the old law, and did not operate to release prior offenders from prosecution. The resnlt of this decision enabled the Government to prosecute all olVenses which had been committed against the Elkins Law prior to the passage of the Hepburn Law, provided, only, sich oft'enses were not barred by the statute of limitations when instituted. , 'n the ' other recent eases of the packing companies (de- cided March 6, 1908. 209 U. S., 56), several important ques- tions were decided in favor of the Government. 1. It was held that a "device" to obtain rebates, in order to come within the prohibition of the Interstate Commerce Law, including the Elkins Act, need not necessarily be fraud- ulent, but that the term "'device" includes any plan or con- trivance whereby merchandise is transported for less than the published rate, or whereby any other advantages may be given to or discriminations practiced in favor of the shii^per. 2. It w-as held that the shipper and the carrier could not make a "contract" for the transportation of freight at the legal rate and for a reasonable length of time which woxdd ])rotect the shipjier from a prose ution at the instance of the Government on the charge of receiving a rebate in the event that the carr\ev subsequently ^Sixid during the life of the con- tract advanced the rate as provided by law and notwithstanding such advance the shipper still continued to ship under his contract rate. 3. It was also held in this case that in prosecutions for violations of the Elkins Act the Government could prosecute either the carrier or the shipper in any judicial district through which the transportation was conducted; in other words, that the carriage of the Tuerchandise was a necessary and indis- pensable element of the offense defined by the law. This was a most important question to have settled for our guidance with respect to future prosecutions. In the case of the Government against the Standard Oil Company of New Jersey as an illegal combination in re- straint of trade, a pivlimlnary victory was won bf the Gov- ernment respecting jurisdiction, the power of Congress to au- thorize the process of a Federal Court to run outside its dis- ^irict, and other related questions,, by a decision of the Cir- 'cuit Court in the Eastern District of Missouri, March 7, 1907. ^'(U. S. V. Standard Oil Co., Fed. Eep., 290) REGULATION OF CORPORATIONS. 49 This case, which is the usual suit in equity under the Sher- man law to dissolve an illegal combination is steadily proceed- ing on the taking of testimony, and it is expected will be heard by the Circuit Court within the next six months. The Government is also conducting- other proceedings against the Standard Oil Company, including a prosecution for taking- re- bates on shipments of oil from the Western Pennsylvania and New York oil fields to New England points, which is pending and will soon be tried in the Circuit Court of the United States for the Western District of New York. In the case of the United States against the Standard Oil Company of Indiana, in which a fine of $29,240,000 was imposed, the United States District Court for the Northern District of Illinois held that under contracts by a shipper for through interstate shipments solely with one railroad company, although such shipments passed over the lines of other companies, a common arrangement between the carriers for a continuous car- riage is sufficiently proved, and that under such a contract and arrangement, where the shipper obtained a concession from the lawful published rates in interstate shipments in violation of the Federal law, the fact that another railroad or route' may have had a published rate about as low is immaterial, the • shipper is chai'geable with knowledge of the lawful rate where it has been published and filed in accordance with law and is accessible to the public, unless he is misled after using proper diligence to ascertain the rate ; and, finally, that under the provisions of the Elkin.? Act forbidding the giving or re- ceiving of rebates, where a shipper has been continuously re- ceiving rebates the Government is not limited to a prosecution for a single offense, but each shipment made at the illegal rate constitutes a separate offense, and under established rates on car lots, each car constitutes a separate shipment. (Decided August 3. 1907; 155 Fed. Eep., 305.) The judgment in this case was reversed in the Circuit Court of Appeals and the case remanded with instructions to grant a new trial by an opinion filed July 22, 1908. on the gi'ounds that the trial court erred in its rulings on the admission and exclusion of evidence bearing on the shipper's intent and its actual knowledge of the lawful published rate ; that the trial . court also erred in making each carload and not an entire ship- ment the unit or integer to determine the number of offenses, and abused the discretion vested in the court in imposing the fine. It is the earnest contention of the Government that the Court of Appeals mistook the state of the case shown by the record as to the admission and exclusion of evidence, and ad- judged the other propositions of law incorrectly in view of the authorities. Immediate steps will be taken to have this decision reconsidered and reviewed in all the ways known to the law. On July 29, the Attorney-General issued the following state- ment regarding the case : "The Government will make every effort in its power to secure a revision of the recent decision and opinion of the Circuit Court of Appeals for the Seventh Circuit in the cape of the Standard Oil Company of Indiana, either by the Court of Appeals itself, or, if necessary, by the Supreme Court of the United States. The gentlemen who have been in consultation with me all unite in my opinion that in the interest of the impartial and effective administration of our laws, such action on the part of the Government is imperatively demanded by the circumstances of the case and the possible consequence if this opinion should stand as authority without question by the government. "To this end an application for a reargument of the case and a motion for a modification of the opinion will be submitted to the Circuit Court of Appeals in bphalf of the United States at the earliest possible moment. Other appropriate steps will be taken afterward, their character to be determined by the Court's action upon this application. "The pending prosecutions in which the giving or receiving of rebates or offenses of like character are charged will be pressed to trial and judgment by the government with all possible energy and as promptly as may be practicable. "In the view of the Government's legal advisers the reversal of the judgment in the case recently decided in no way affects the merits of that controversy or the necessity and duty of bringing to punishment if possible in this and any other cases any individual or corporation shown to have evaded or defied the laws." In United States v. Mc Andrews & Forhes Co., an indictment under sections 1 and 2 of the Sherman Anti-Trust law of 60 REOULATION OF iJOBPORATIONS. one of the constituent members of the Tobacco Trust, it waa decided on demurrer, among other points, that a corporation may be liable criminally for conspiracy, and that an indict- ment under the anti-trust law may charge all who aid in the commission of the ofTenses as principals, and a corporation and its officers who personally participated in committing- the offenses may be joined as defendants, although their acts may be sep- arate and not done at the same tiane, and that to bring any yiven case or scheme within the law, the restraint of trade need not amount to a total suppression, nor the attempt at monopoly to a complete monopoly, but it is sufficient if the necessary operation tends to restrain interstate commerce and to deprive the public of the advantages flowing from free com- petition. (Decided December, 1906; 149 Fed. Kep,, 823.) The case is now pending in the Supreme Court, having been taken there on a writ of error by the defendants, who were convicted in the trial court. In the proceedings preliminary to the Paper Trust suit and the Tobacco Trust prosecution, the United States won a very important victory by compelling certain witnesses to testify under personal immunity, without protecting other persons or corpo- rations, with the result that in the Paper Trust case the final decree provided for its dissolution, and the Tobacco Trust prose- cutions are proceeding, along with a suit in equity to dissolve that combination, with the aid of the testimony and infor- mation of which the Government compelled the production. (Paper Trust Cases, 201 U. S., 92, 117; decided March 12, 1906; Tobacco Trust cases, id., 43, 90, decided same day.) In the suit in equity to dissolve the Tohacco Trust the testi- mony has all been taken, and the argument before the Cir- cuit Court has just been completed. May, 1908. The suit against the Anthracite Coal Trust is now ready to be pressed vigorously, and active proceedings will be under- taken forthwith and maintained in the Federal Court for the Eastern District of Pennsylvania, where the bill to dissolve the combination was filed. In the case of the United States v. The New York, New Haven and Hartford Railroad Company et al., recently insti- tuted in the United States District Court for the District of Massachusetts, the Government seeks to enjoin that company from exercising further control through stock ownership over the Boston and Maine Railroad Company and to prevent the New Haven road from controlling the various trolley lines paralleling said road in the States of New York, Connecticut, Rhode Island and Massachusetts. The bill charges the New Haven road with combining and attempting to combine under one common control the various railroad systems and electric railway systems in New England. It will thus be seen that, in obedience to the demand of the people and the legal and economic policy reflected in the Sherman law, the Republican administration, legislative and executive, has been steadily proceeding during the last four years to maintain its record of uncompromising prosecution against the great combinations which are violating the law. It is clear that the Government polioA^ and efforts have been to reach the strong and vast aggregations of power and cap- ital, rather than to avoid enforcement of the law against them and proceed against minor and less culpable defendants, and the foregoing review shows also that the results achieved have been commensurate with the importance of the subject and with the efforts of the Government. THE CAST-IRON PIPE CASE. Jnd^^e Taft's Decision and its Important Relation to tbe Trust Q,uestion. No list of judicial decisions declaring the power of Congress over combinations in restraint of trade is complete without naming the Addyston Pipe & Steel Co. case. It was one of the early and most important successes of the Federal Govern- ment in attempting to enforce the Sherman Anti-trust Act, REGULATION OF CORPORATIONS. 51 and was a signal judicial victory for Judge William H. Taft, for the Supreme Court in deciding the case affirmed the Cir- cuit Court of Appeals and adopted the reasoning • and quoted a considerable portion of Judge Taft's opinion in deciding the case in the lower court. The Circuit Court had decided the case against tlie Government in a long "and exhaustive opinion, so that the decision of the Appelate Court, delivered by Judge Taft, which the Supreme Court held was the law was a path- breaking one and blazed the way for later decisions which have settled beyond all dispute the wide-reaching power of Congress under the Interstate Commerce clause of the Constitution. When the case was first tried, over eleven years ago, the power of Congress was not clearly understood, even in the minds of law- yers and court. The history of the case, briefly stated, is as follows : The Attorney-General of the United States filed a bill in equity against six corporations engaged in the manufacture of cast- iron pipe, charg'ing them with a combination and conspiracy in unlawful restraint of interstate commerce in such pipe in violation of the "Anti-trust Law." The companies manufactured iron pipe in four different States and they divided their sales territory into six districts, and agreed not to bid against each other, though fictitious bids were put in at prices higher than was bid by the member of the combination in whose territory the particular contract to be bid on was located. The Circuit Court dismissed the bill, basing its decision mainly on the case of United States vs. E. C. Knight Company, wherein the United States Supreme Court dismissed a bill filed under the anti-trust law, which sought to enjoin the defendants from continuing a union of substantially all the sugar refineries of the country for the refining of raw sugars. The Supreme Court held the monop- oly thus effected was not within the law, because the contract or trust agreement related only to the manufacture of sugar and not to its sale, and it was not within the power of Congress to regulate manufacture within a State. The trial court held the cast-iron pipe case was governed by the reasoning in the sugar trust case, and decided against the Government. The case was ap- pealed to the Circuit Court of Appeals, and was heard by Mr. Jus- tice Harlan, of the Supreme Court, and Circuit Judges Taft and Lurton. This court held the combination was unlawful, both at common law and under the Sherman act of 1890 against trusts and monopolies. Judge Taft's opinion, delivered February 8, 1898, was hailed by the Government as a great victory in its fighl? against monopo- lies, and on December 4, 1899, the Supreme Court affirmed Judge Taft's decision and adopted his reasoning and the very language in his opinion. The closing paragraph of Judge Taft's opinion is worth quot- ing entire : "Much has been said in .argument as to the enlarge- ment of the Federal Government functions in respect of all trade and industry in the States if the view we have expressed of the application of the anti-trust law in this case is to prevail, and as to the interference which is likely to follow w^ith the control which the States have hitherto been understood to have over con- tracts of the character of that before us. We do not announce any new doctrine in holding either that contracts and negotia- tions for the sale of merchandise to be delivered across State lines are interstate commerce, or that burdens or restraints upon such commerce Congress may pass appropriate legislation to pre- vent, and courts of the United States may in proper proceedings enjoin. If tliis extends federal jurisdiction into fields not before occupied by the general government, it is not because such juris- diction is not within the limits allowed by the Constitution of the United States." Not one of the least of Judge Taft's services to his coimtry was his illuminating and record-making decision in the Addy- ston Pipe and Steel Company case. One vital, floiiilnatlngr fact confronts the Democratic party Tvhicli no oratory, ^Tliicli no eIo«inence, >vliicli no rhetoric can obscure: BRYAN'S NOMINATION MEANS TAFT'S EliECTION.— New York World. 5S REGULATION OF CORPORATIONS. THE DEMOCRATIC PLAN OF TRl ST REGULATION IS THE PLAN PROPOSED BY STANDARD OIL MAGNATES. The plan which the Democ-ratio national platform of 1908 proposes for the control and reg-ulation of trusts and corpora- tions engaged in interstate commerce is precisely that proposed and publicly recommended by the Standard Oil Presicitint and Vice-President. Moreover, it is certified to by Mr. Bryan's paper, the "Commoner," as the genuine Standard Oil plan. The "Commoner," in its issue of October 31, 1902, says: The plan of vesting In the Federal Government exclusive control ol trusts was not originated by the present leaders of the Republican party. John D. Rockefeller in his testimony before the industrial commission, when asked what legislation would be advisable, said : "First, federal legisla- tion under which corporations may be created and regulated, if that were possible." Vice-President Archbeld, of the Standard Oil Company, said : "The next great and, to my mind, inevitable step of progress in the direc- tion of our commercial development lies in the direction of national or federal corporations." Henry H, Rogers, a Standard Oil magnate, indorsed Mr, Archbold's suggestion. The Plan Proposed by Standard Oil Magrnates in 1899. The recommendations of the Standard Oil magnates referred to by Mr. Bryan's "Commoner" and aj)parently followed in the Democratic platform of 1908, will be found in detail in Vol. 1 of the Report of the Industrial Commission. On page 797 Mr, Rockefeller is asked : "What legislation, if any, would you suggest regarding industrial combinations?" His answer is: "First, Federal legislation under which corporations may he created and regulated, if that be possible ; second, in lieu thereof, State legislation as nearly uniform as possible encour- aging combinations of persons and capital for the purpose of carrying on industries, but permitting State supervision, not of a character to hamper industries, but sufficient to prevent frauds upon the public." (Signed) JOHN D. ROCKEFELLER. On page 565 of the same volume, Mr. Archbold, Vice-Presi- dent of the Standard Oil Company, says : "If you should ask me, gentlemen, what legislation can be imposed to improve the present conditions, I answer that the next great, and to my mind, inevitable step of progress in flie direction of our com- mercial development lies in the direction of National or Fed- eral corporations, * * Lack of uniformity in the laws of various States, as affecting corporations, is one of the most vex- atious features attending the business life of any great corpor- ation today, and I suggest for your most careful consideration, the thought of a Federal Corporation law." Tlie Plan Proposed by tbe Democratic Platform in 1908. The portion of the Deitiocratic national platform of 1908 which offers the plan of the Democratic party with reference to trust regulation is as follows : "We faver the vigorous enforcement of the criminal law against guilty trust magnates and officials, and demand the en- actment of such additional legislation as may be necessary to make it impossible for a private monopoly to exist in the United States. Among the additional remedies we specify three : First, a law preventing a duplication of directors among com- peting corporations; second, a license system which will, with- out abridging the right of each State to create corporations, or its right to regulate as it will foreign corporations doing business within its limits, make it necessary for a manufac- turing or trading corporation engaged in interstate comnicrce to take out a Federal license hefore it shall he permitted to control as much as twenty-live per cent of the product in which it deals, the license to protect the public from watered stock and to prohibit the control by svich corporation of more than fifty per cent of the total amount of any product consumed in \ the United States ; and, third, a law compelling such licensed ' corporations to sell to all purchasers in all parts of the coun- try on the same terms, after making due allowance for cost of transportation." REGULATION OF CORPORATIONS. ' 53 The Republican platform, instead of proposing to give special favors to certain corporations in the form of Federal licenses as proposed by the Standard Oil magnates and the Democratic party, proposes uniform and equal enforcement against all cor- porations, great or small, of existing law and such further laws as may be necessary. The plank of the Republican platforni of 1908 is as follows: "The Republican Party passed the Sherman Anti-trust law over Democratic opposition and enforced it after Democratic dereliction. It has been a wholesome instrument for good in the hands of a wise and fearless administration. But experience has shown that its effectiveness can be strengthened and its real objects better attained by such amendments as will give to the Federal Government greater supervision and control over and secure greater publicity in the management of that class of corporations engaged in interstate commerce having power and opportunity to effect monopolies." It must be, at least, a pleasing surprise to the Standard Oil Company, after its recent experience with Republican offi- cials in enforcement of existing laws, to find the Democratic platform declaring for the very legislation publicly recom- mended by its President and Vice-President in 1899 and certified to by Mr, Bryan's "Commoner" in 1902, as the genuine Standard Oil plan in behalf of corporations. The bigr^est corporation, like the humblest private eitl- ean, innst be held to strict compliance Tvlth the Trill of the people as expressed in the fundamental laTV. — President Roosevelt at Cincinnati, Ohio, September 20, 1902. The tariff aifects trnsts only as it affects all other inter- ests. It makes all these Inte'rests, largre or small, profitable) and its benefits can be taken from the larjre only under pen- alty of takinK' them from the small also. — President Roosevelt at Minneapolis, April 4, 1903. Under present-day conditions it is as necessary to have corporations in the business world as it is to have orgraniza- tions — unions — among: Ti^agre-workers. We have a right to ask in each case only this; that ^ood, and not harm, shall foUov^.— President Roosevelt at Providence, R. I., August 23, 1902. Mr. Bryan's whole system of remedies for the evils that both Mr. Roosevelt and he and many others recot^nlxe, is ba«ed on his distrust of the honesty, couragre and impar- tiality ef the indiA'idual as an agent on behalf of the people to carry on any part of government and rests on the propo- sition that our present system of representative govern- ment is a failure. He Tt'ould have government ownership of railways because he does not bplleve it is possible to secure an interstate commerce commission that the "money poTver" cannot and Trill not ultimately own. He vronld have the initiative and referendum because he distrusts repre- sentative government and has no confidence in the abili'ty of the people to find men T%ho vrill conscientiously, and free from the Influence of the "money poTver," represent them in preparing and voting legislation. He would take aTvay from courts, because he distrusts the ability of judges to resist the malign influence of the "money poTver," the poTver to enforce their own orders until a jury is called to tell the court Tvhether the order has been disobeyed, and thus, in practice, though not in theory, the jury -would come to pass on the correctness and justice of the court's order. —Hon. Wm. H. Taft, at Columbus, Ohio. The Democrats are a party having no solidarity, uniting elements that are as nnmlxable as oil and water, and Trhen Ihey come to make a government, should they ever be elected to poTPer, flie admiitistration Troulrt become as nerveless as a man stricken with paralysis, because the radical dif- fei-ence bet^veen the elements necessary to make up the party tj^ouUI be so great as to produce perfect stagnation in legislative provision for the emergencies -which might arise. The Democratic party today, as organized, is nothing but organized incapacity. Neither element of the party ^vould have a sense of responsibility strong enough to over- come its antagonism to the principles upheld by the other ♦'net ion, ^vere it to come into po^ver. — Hon. "Wm. H. Taft, at Montpelier, Vermont. One vital, dominating fact confronts the Democratic party vrhich no oratory, Tvhich no eloquence, Avhich no rhetoric can obscui-e: BRYAN'S NOMINATION MEANS TAPT'S ELECTION.— New York World. THE MONEY PANIC OF 1907. The panic of 1907 was financial, not industj-ial or coiumercial. The country was at the high tide of industrial and commercial activity. The g-reat manufac-twriug- industries and those related thereto were making- their highest i-ecords. The value of manu- factures shown by the census of 1905 (including- its estimate for customs work and repairinjj) ai>greguted ueariy 17 bil ion dollars, against 13 billions iu 1900, a 1-3 billions in 1890\ and 5 1-3 billions in 1880. The imports of manufacturers' materials in the fiscal years 190G and 1907 so much exceeded those of 1905 as to niake it perfectly apparent that the manufacturing- activities of those years were still in excess ©f those recorded by the census of 1905. Not only were imports of manufacturers' materials higher in 1907 than ever before, but exports of manufactures wei*e also in excess of any former year, thus again indicating- unusual activity in manufacturing; while the fact that the quantity of pig iron pro- duced, the quantity of coal mined, tlie quantity of fi-cights car- ried on the Great Lakes aud on railroads, the quantity of grain, flour, cotton, live stock, meats and other commercial staples ar- riving at the great interior centers and departing therefrom was also greater than ever before, gives further evidence that the commercial as well as industrial conditions of the early and mid- summer months of 1907 were at high-water mark. The railroads, with all their greatly increased facilities in trackage, in cars and equipment, were unable to respond to the business activity, and James J. Hill, a distinguished Democrat, who had declared in November, 190G, that the trafTic congestion exceeded imagination, and that there was neither money enough nor rails enough in the world to build track enough to carry the trafTu* offered, declared again in 1907 that the railroads would need 1.100 million dollars yearly for five years for construction work. The demands for money for conducting and enlarging these great industrial, commercial, and transportation enterprises grew apace. In January, 1907, the Chicago and Alton sold $6,000,000 of notes, the Western Indiana $5. 000^000, the Southern .$15,000,000, New Yoi-k Central $50,000,000, and the Chicago and Northwestern voted to issue $25,000,000 of stock. In February the Kock Island sold $6,500,000 of notes, the Lackawanna Steel Com})any $5,000,- 000. the Interborough Eapid Transit Company of New York $10,- 000,000. the Pennsylvania $60,000,000, the Tidewater Hailroad $10,000,000. New York city sold $30,000,000 of bonds and the New Haven road $28,000,000 of bonds. In the succeeding months the issues of securities of this character continued until by the middle of the year the total thus issued in sums sufficiently large to be easily noted aggregated more than a thousand million dollars of securities thus placed upon the market, and this continued into August and September, despite the fact that the scarcity of money resulted in the actual issue of but one billion dollars' worth of railway notes, stocks and bonds out of a total of more than iy2 billions authorized. But the world's losses of capital by wars, coupled with the speculative investment, rendered loans more and more difficult The amount of money in circulation in the United States was nearly three billion dollars, and including the money in the Treasury exceeded three billions, and the amount of per capita circulation was larger than ever before, being over $32, as against a little over $21 in 1896. Nine-tenths of the business was as usual in times of financial peace, being transacted by the use of checks, script, notes and other financial paper. ^Millions of holders of sur- plus money had deposited the surplus in banks, which in turn had loaned the legitimate proportion of their deposits, and these had been in turn deposited by tho.'se to whom the loans were made or by other.s, so that the aggregate record of deposits in all banks and loan and trust companies of the country was in 1907 over 13 billions of dollars, while the actual amount of money in 54 THE MONEY PANIC OF 1907. 65 the country was, as above shown, but abont three billion dollart\ It goes without saying- that any sudden incident which would startle and alarm these millions of depositors whose bank records showed an ag-g-reg-ate of 13 billions of dollars would cause them suddenly to rush to the banks and demand their money, thus cre- ating not merely a panic, but rendering the banks physically un- able to meet their demands, since the credits to depositors amounted to more than four times the amount of money actually in the country, including both that in circulation and the amount held by the Treasui-y. In October occurred a series of incidents suflRcient to cause just the sort of alarm indicated. The three Heinze Brothers, large operators in Wall street, failed in an attempt to manijAilate cer- tain copper stocks, and this resulted in a run upon the Mercantile National Bank, of which one of the brothers was president. The collapse of the copper pool and the resulting less of confidence in the Heinze Mercantile National Bank led to a distrust of certain other banks, and this being followed by the compulsory resigna- tion of certain bank officers increased the alarm of depositors, and runs were begun, resulting in demands which were far in ex- cess of the ability of banks instantly to meet. As the panic spread to other parts of the country other millions of depositors de- manded their hundreds of millions of deposits, and again in ex- cess of the immediate ability of the banks to respond, althoug-h practically all of them would have been, under ordinary condi- tions, able to meet the ordinary calls from their depositors. This condition was met in part by additional deposits of public moneys in national banks, as shown by extracts on subsequunt pages from the report of the Secretary of the Treasury to Congress, appended hereto ; in part by the issuance of clearing--house certificates, in part by the refusal of banks to pay oh any one day more than a small perceatage of the sum due each depositor, and in other cases by the declaration of a two weeks' holiday by the governors of certain States, thus holding- in check the momentary alarm, and by January the banks of the country had returned to a cash basis and to full cash payment of such calls as were made upon them by their depositors. f The President in his message of December, 1907, recommended legislation providing for a more elastic currency by issuing emer- gency circulation, secured by State and municipal bonds. This recommendation gave rise to the introduction of various financial bills, among which were the Aldrich bill, introduced in the Sen- ate, and the American Bankers' Association b'ill, the Fowler bill, the Vreeland bill, and many other bills, introduced in the House. There was a spirited discussion in both houses of Congress, and wide differences of opinion prevailed as to the merits of the various plans. This resulted at the close of the session in a compromise bill, which was signed by the President on May 30. This bill vras designed to prevent the recurrence of the financial troubles experienced in the autumn of 1907, among which was the need of additional currency for emergency pur- poses. The bill as passed, stated briefly, provides for the issu- ance of emergency currency on State and municipal bonds at 90 per cent of the unimpaired capital and surplus of the bank, and other securities at 75 per cent of their cash value. The applications for the issue of emergency currency are to be made to the Comptroller of the Currency and submitted by him to the Sec- retary of the Treasury, the securities pledged for the issue of such currency to be guaranteed by the national currency asso- ciations. This legislation marks a very liberal and progressive step forward in the securing of an elastic currency. At the same time the Treasury is amply safeguarded by the guaranty of the associations, which practically eliminates all hazard as to the soundness of the security. The high rate of 5 per cent to 10 per cent per annum is expected to retire the circulation when the emergency is past. The able management of the Secretary of the Treasury in util- izing public funds to stay the incipient panic of March, 1907, and his timely preparation for anticipating the need of money for crop moving purposes by depositing fimds early in the national banks to prevent a tig-htness in the money market, deserves high commendation. It was an action of prevention, instead of ft6 THE MONET PANIC OF 1907. waiting for a cure, which latter always involves cost and dis- aster. When the panic reached most dangerous proportions in New York the Secretary of the Treasury hastened there, and with the prompt cooperation of the bankers $150,000,000 were pledged to stay the progress of the panic. Of this sinn about $40,000,000 wei'e pledged in a temporary way by the United States Treasury. Further aid was extended by the Secretary of the Treasury issuing 3 per cent certificates of indebtedness and Panama bonds. He permitted the banks to take out circulation on these securities, and also allowed them to substitute bonds ac- ceptable for savings bank investments for Government bonds pledged for public deposits, provided the released bonds were used for securing additional bank note circulation. In this way some $86,000,000 in national bank notes were issued from October 1, 1907, to January 1, 1908. This action was severely criticised by many who did not understand the conditions that required it. His remarkable reply to Congress, giving reasons to justify the steps he had taken to relieve the situation, won the approbation of Congress as well as that of the country. In addition to emergency legislation, a commission was ap- pointed, known as the "National Monetary Commission," com- pose^d of nine members, to inquire into and report to Congress at the earliest practicable date what changes are necessary or desirable in the monetary system of the United States, or in the laws relating to « banking and currency, which should enable Congress to legislate intelligently and to assure the country a sound, scientific, and elastic currency to meet all the conditions of our modern business life. Discussing the panic and its causes, Secretary Taft in an ad- dress before the Merchants and Manufacturers' Association of Boston, on December 30, 1907, said: "The world generally has a certain amount of loanable capital available for new enterprises or the enlargement of old ones. In periods of prosperity this capital, with the instrumentalities for enlarging its potentiality by credits, is put into new enterprises which are profitable, and the increase in free capital goes on almost in arithmetical pro- gression. ^ After a time, however, expenses of operation and wages increase and the profit from the new enterprises grows smaller. The loanable capital gradually changes its form into investments less and less convertible. Much of that which might be capital is wasted in unwise enterprises, in extravagance in liv- ing, in wars and absolute destruction of property, until the avail- able free capital becomes well nigh exhausted the world over, and the progress of new enterprises must await the saving of more. Men continue to embark in new enterprises, however, the capital fails them and disaster comes. "For eight or nine months last past there were many indica- tions that the loanable capital of the world was near exhaustion. This result was brought about not only by the enormous expan- sion of business plants and business investments, which could not be readily converted, but also by the waste of capital in extrava- gance of living and by the Spanish war, the Boer war, and the Russian-Japanese war, and in such catastrophes as Baltimore and San Francisco. It became impossible for the soundest rail- roads and other enterprises to borrow money for new construc- tion or reconstruction. The condition was not confined to this country, but extended the world over, and was made manifest in the countries of Europe even before it was felt here. "Secondly, the conclusion cannot be avoided that the revela- tions of irregularities, breaches of trust, stock jobbing, over- issues of stock, violations of law, and lack of rigid State or Na- tional supervision in the management of some of our largest in- surance companies, railroad companies, traction companies, and financial corporations shocked investors and made them withhold what little loanable capital remained available. Such disclosures had much more effect, probably, abroad than they had here, be- cause here we are able to make distinctions, while there, at a remote distance, the revelations created distrust in our whole business fabric. "When, therefore, two or three institutions, banks and trust companies, supposed to be solid, were found to have their capital impaired by stock jobbing of their officers, the public were easily THE MONET PANIC OF 1907. 57 frig-htened and the run upon the banks began. The question then became not one of loanable capital, but of actual money to be used in the transaction of the day, a very different question, though of course closelj^ related, "It would seem that our system of currency is not arranged so as to permit its volume to be increased temporarily to counteract the sudden drain of money by the hoarding in a panic. It is probable that the stringency which reached its height on that dark day of October 24 might in part have been alleviated had we had a cvirrency which could automatically enlarge itself to meet the tremendous demand of a day or a week or a month while public confidence was being restored. The National Administra- tion, together with many of the large capitalists of New York and elsewhere, put their shoulders under the load, and by various devices of an unusual character have brought about the pi-esent condition of gradually increasing confidence. "The injurious consequences to follow from this panic are not likely to be so long drawn out or to result in such disastrous in- dustrial depression as the panic of 1893 or the panic of 1873, and this for the reason that the condition of the country makes it so much easier to resume business gradually, to accumulate capital, and then to renew those enterprises which had to be abandoned for the lack of it." W. B. Ridgely, who was Comptroller of the Currency during the financial troubles of 19§7, says : "As long ago as the date of the San Francisco catastrophe there has been no lack of warning indications of financial troubles and possible business disaster. For at least 10 or 12 years there has been an era of advancing prices and great industrial, commercial, and speculative activity in all countries of the world. Credits have increased and miiltiplied uiitil the limit has been reached in the amount of reserve money on which it must be based. * * * These conditions have been world-wide and by no means confined to the United States. Crises of more or less severity have arisen in several important countries, and, as is always the case when there is a demand for liquidation, it first manifested itself in the stock market." Eepresentative Hill of Connecticut, discussing the subject, said: "The panic of 1907 began with the distrust of individual credit and a profound suspicion of the banks managed by the men whose credit was so distrusted. The causes lay deeper, but they were manifested in the weakest spot. The conditions which brought the panic were world-wide and not confined to the United States." Kepresentative Vreeland of New York said in a speech in Con- gress upon this subject : "On the first day pf October the Ameri- can people were blest with great prosperity. Everywhere the millions of our people were engaged in gainful occupation. Our mills and factoris were uable to fill their orders. The consuming power of our people had never been greater. The railroads of the country could not furnish sufficient cars to move the products of farm and factory. The people of New York citj^ took fright and commenced drawing their deposits from other banks. The bankers clear across the continent became alarmed, and all tried to draw their money from New York in cash at one time. The result was that the New York banks were obliged to refuse pay- ment, and a general suspension of cash payment took place throughout the United States." ' Representative Weeks of Massachusetts, discussing this ques- tion in the House of Representatives, said : "The reasons for this panic were, generally speaking, overspeculation, overcapitali- zation, overexpenditures by the Government, States and munici- palities, as well as by individuals, the tying up of large amounts of capital in permanent fixtures instead of retaining it as liquid capital, the carrying of excessive stocks of goods, the abnormal development of business in every branch, all of which led to the credit expansion of the dollar to the breaking point. Credit hav- ing been broken down, the natural and usual result followed." Representative Overstreet of Indiana, in discussing this sub- ject in the House of Representatives, said : "The recent panic fol- lowed unusual and startling disclosures of fraud and mismanage- ment in some of the great insurance companies and other leading enterprises of the country. It followed the further disclosure of 58 THE MONEY PANIC OF 1901. unprincipled financiering-, as illustrated in the Alton Railway deal and as practiced by sprculatire bankers of the type of the Hcinze syndicate of banks in New York. Overspeculation, uuwarraiitcd extension of cretiits, and a disregard of honest niethoils in busi- ness transactions aiaruied the country. These disclosures devel- oped a lack of contidencc and trust in men and not in business. With all these forces couibijied, the onslaugh]^ overthrew public confidence, money went into hiding, loans were called, factories were closed, and liquidation ajet'in. It was impossible to foresee these conditions, and they came without warning- and at a time when the business conditions of the country were at high tide." Senator J. W. Bailey of Texas (Democrat) said, in discussing this subject in the Seaate : "1 have my ojiiuion, and it is a very definite one, as to what produced th« recent financial stringency. * * * It was due immetliately to the overuse of bank credits in the city of New York. It came when the country had the least reason to expect it. Our crops had been abundant and the price of almost every fai-in product was more than satisfactory. A recent statement made by the Secretary of Agriculture shows that the products of American farms last year exceeded in value any previous year in our history. There had been neither war nor pestilence, the balance of trade was largely in our favor, and there was absolutely no question as to the value of our money. 1 do not overlook the fact that it has been charged that the trouble was due to the persistent demand of the President of the United States for the enactment of new laws and the enforcement of old laws to regulate and control our railroads ; but that charge has been made by men whose minds are heated with resentment, and it will not bear a close analysis. The President has demanded only that the railroads of this country should be requii-ed to deal justly with the people, and he has evinced no disposition to harass or to oppress them." Hon. J. A. M. Adair of Indiana, in discussing this subject in a speech in the House of Kepreseutatives on January 23, 1908, said: "ThijB panic came on us at a time of unprecedented prosperity. The products of the farm brought extremely high prices. The ag-rioulturists were more prosperous than they had ever been be- fore. Our great mills and manufacturing establishments were run- ning day and night, with orders six months in advance ; labor was universally employed ; the banks throughout the country wei'e bursting with deposits; our splendid railroad system was unable to handle the freight offered for transportation. * * * With not a cloud in the sky, we were hurled into the chasm of one of the worst panics our nation ever experienced. The holders of watered stock were panic stricken ; depositors were frightened lest they could not get their money. Banks and trust comj)anies closed their doors in the face of their depositors ; there was no money to handle the business of the country, and the people looked with suspicion on checks and drafts offered in payment of obligations. The manufacturing industries were unable to pro- cure money ''to pay labor. Orders placed with our manufacturers were canceled, and this forced the factories to cancel orders for material. * * * I do not believe our present financial crisis is due to our financial system, but to a lack of confidence in our business fabric, brought about by disclosures of dishonesty, cor- ruption and crookedness in many of our great corporations." M. Paul Leroy-Beaulieu, a distinguished French writer and economist, discussing the American crisis in the p]conomiste Francaise, says : "It is true that lack of currency elasticity may have helped on the troubles, but the principal cause of the crisis now raging in the United States and which has in a less degree touched Germany is the complete disregard of the well established rule of political economy, that capital limits industry. * * * New enterprises had been started or old enterprises enlarged far beyond the sum total of available capital — that is, beyond the amount of capital actually produced by the savings of the whole civilized world. Reserves of capital have fallen short of the re- quirements of extravagant American demands. The industrial megalomania in the United States took no account of Avhat was possible. It merely devoted itself to pushing up everything. The debauch of extravagance was particularly indulged by the con- structing companies and by the great American railways. Con- THE MONEY PANIC OF 1907. 59 tracts were placed for the construction in the single year of 1907 of vast amounts of work, and the companies prepared«for such excesses by issues of securities to a simply stupendous amount. The truth of the whole matter is that in this panic the United States is simply paying- the penalty for its extravagant expan- sion at a time when credit conditions were merely nominal." Mr. Seymour Bell, the British Commercial Agent in the United States, in a letter to the British Government, presented in Parliament and pi-inted by the authority of that body, says : "During the earlier months (of 1907) all industries were ex- ceedingly busj^ and naills were working- at their utmost capacity. Many unfilled orders had been carried over from the previous year, and buyers were experiencing- great difficulty in getting de- livery of their goods. The railway lines were cwngested, wages were at their highest, and the hiyh price of commodities raised the price of living to an extreme point. Money was becoming scarce, and the railways and other corporations were encounter- ing great difficulties in obtaining the capital necessary to carry on the improvements and extensions which were in process of being carried out. Speculation in mining and real estate had been rife and personal extravagance was at its height. "The situation was peculiar. On the one hand there were tin: manufacturers with more orders than they could fill and busy en- larging their plant*, merchants selling large quantities of goods at satisfactory prices, labor in auch demand that even with the addition of the 1,200,000 immigrants it was necessary to employ inefficient workers at good wages. On the other hand, there was dear money, owing t© scarcity. "When, owing to a failure in New York, light was thrown on the management of some of the large financial concerns in the city, public confidence, which had previously been undermined by certain investigations, gave way completely, resulting in an acute money panic. "The panic was entirely financial. It has. it is true, brought about a widespread suspension of trade and industry through- out the country, but there has been no throwing on the market of merchandise at ruinoiis prices. The manufacturers without delay proceeded to curtail the supply and thus reduce such chances as there might have been of g-lutting the market with unsalable arti- cles. It must not be forgotten that the farmers, who form the b&ckbone of American prosperity, have not been affected by the financial situation. A country that produces crops valued at nearly £1,500.000,000 ($7,300,000,000) is unlikely to suffer long from industrial stagnation. Farmers have had nine years of al- most \ininterrupted prosperity, their buying power is high, and the towns dependent upon them will remain prosperous. "The farmers who a few years ago owed money now own money, and have an assured outlet for their products, as there is no oversupply. , "The cloud of uncertainty is now passing away, and the worst of the storm has now passed. * * * It is expected that b«fore many months have passed business will be on a safer and more normal basis." Hon. C. M. Depew, discussing this subject in the United States Senate, says : "A chain is no stronger than its weakest link, and the weak lii^k in the recent situation was the trust companies, with their enormous deposits and limited reserves. There is no question about their soundness and their possession of a large surplus beyond all their obligations to their stockholders and de- positors. Nevertheless, while doing a banking business, they were not equipped for a banking emergency. A run was started on the Knickerbocker. Trust Conipany, whose stock was selling at twelve himdred dollars for a hundred-dollar share. The spectacle of millionaires jostling clerks and bank messengers in the rush to get to the window for their money before the cash was exhausted was illuminating. It showed that in a panic human nature works the same with rich and poor. * * * Then ]Nfr. Cortel- you came to the rescue and deposited available money in the na- tional banks ^^vt\] the balance in the Treasury was down to about five millions. The action of the Government in placiucr $240,000.- 000 with the banks, and this letter of the President, ringing like a clarion note of confidence in every office, workshop, store, farm- 60 THE MONET PANIC OF 1001. house and dwelling- of the country, tog-ether with the couragfeous action o* the New York bankers and banks in importing' gold and helping institutions assailed, stopped the panic and saved the country." Secretary Cortelyou on the Banks. The following are extracts from the response of the Secretary of the Treasury, Hon. George B. Cortelyou, to a resolution of the Senate of the United States calling for information regarding the operation of the Treasury during the panic period : Extracts from Report of Secretary Cortelyou on Jtfiventa of Panic. In view of the importance of the subject and the wide discussion which has occurred in regard to it, it seems proper to summarize as briefly as possible the operations of the Treasury for the past year, and to follow this by a statement more in detail of the methods and reasons for some of the steps taken during the financial panic of 1907. In March, 1907, business conditions were becoming unsettled, and there shortly developed a period of acute stringency in th« money markets which called for prwmpt and effective measures. Various relief nteasures were taken, and while this stringency was quite promptly relieved, sig- nificant Indications of still further financial disturbance were apparent, and the Department therefore kept In very close touch with the situation in all parts of the country. It was decided in the latter part of August to make each week sub- stantial deposits of public moneys in national banks, with a view to facil- itating the movement of the crops In various sections of the country. The Treasury was at that time in good condition to render substantial aid in this direction. The nominal cash balance on July 31, 1907. was $:'38 574,188. Of this amount $150,990,204 was on deposit in national bank depositaries to the credit of the Treasurer of the United States or to the credit of disbursing offices. The net excess of cash above deposits stood, therefore, before this distribution, at about $81,500,000, affording a considerable margin above the amount required for a con- venient working balance. Beginning on August 28, and continuing each week until October 14. this plan of weekly deposits was followed, a total of about $28,- 000,000 being allotted to various banks. These banks w«re located in each of the 46 States, in the Territories, and in the District of Columbia. Every endeavor was rnade, from the information and requests at hand, so to distribute this fund that it would meet actual needs in sections where business activity was at the maximum and currency was most ur- gently required. About the middle of October events occurred which indicated that a monetary stringency had arisen much more severe than that which experience has shown usually occurs in the autumn in connection with the movement of the crops. Rumors were current concerning many manufacturing establif^^hmcntR and others interested in large projects, who were embarrassed by inability to raise ready cash to continue their opei'ations. In New York City this condition was brought to a head by the appeal of several national banks to the clearing house committee for aid, which was quickly followed by the suspension on October 22 of the Knickerbocker Trust Company, after the payment of about $8,000,- 000 in cash to depositors. Almost immediately runs began upon two other large trust companies, deposits were reduced in many other institutions, money began to be hoarded by individuals, and on October 26 the New Yerk banks decided to Issue clearing house certificates. Before the decision of the New York clearing house to issue clearing house certificates, the Treasury transferred to the national banks within a few days the sum of about $35,000,000. These deposits, with the aid given to those banking Institutions which were severely assailed by those which were less disturbed, tended to stay the panic which was other- wise Imminent. In order to meet the demand for currency by the in.'?tltutions which were subjected to pressure, the Treasury Department forwarded to New York within three days about $36,000,000 in ' small bills. While these were not in all cases used in making direct deposits of public moneys, they were available at the sub-treasury for any banking institution which desired to obtain them in exchange for bills of larger denomination or for coin. At a later date, gold coin was paid In many cases, at the request of certain institutions, because they found that payment of coin to depositors tended In a measure to discourage runs. It was not be- cause the coin was preferred to notes ; on the contrary, it was because depositors did not desire to be burdened with taking away the cein, and preferred notes of large denominations. It Is, Indeed, a source of grati- fication that at no period of the crisis was there the slightest suspicion of the Integrity of the currency Issued either by the Government or by national banks. The effect of the law of March 14, 1900, in creating an adequate gold reserve and providing necessary measures to replenish the reserve In case of need, so completely set at re5;t any distrust of the exchangeability of all forms of paper for gold that the subject was hardly mentioned anywhere, except as a cause of congratulation upon the effects of the gold standard act. The transfer of large amounts of gold from the Treasury to the banks made it necessary to run the mints at high pres- sure in order to comply with the requirements of the Act of March 14, 1900, that not more than $50,000 000 of the legal gold reserve of $150,000,000 should be kept in buljion. There was at no time any dis- position to convert any form of Government paper into gold because of any question as to safety of the paper, nor was there any disposition ta present gold certificates for redemption in gold coin. THE MONET PANIC OF WOT. 61 While the action of the Department in placing large sums in the national banks in New York was subjected to some criticism, it was amply justified by the conditions as they then existed and as they have been disclosed in th« light of subsequent events. Figures given further along will show that the national banks in New York did not retain in their own keeping the public moneys received, but were enabled through their extended relations, as to reserve depositaries with banks of all classes throughout the country, to employ these moneys to meet a large pro' portion of the calls made upon them. An examination of the deposits made by the Treasury in the banks, from time to time, commencing in the middle of October, will show that as the stringency progressed the Treasury gave relief in every important locality where assistance seemed to be required. Some of the more im- portant deposits were as follows : Chicago, $3,000,000 ; Pittsburg, $1,500,- 000 ; Cincinnati, $1,500,000 ; Minneapolis and St. Paul, $500,000 ; and in many places in the South and West, the public revenues, which ordinarily would be remitted to the various sub-treasuries, and thus taken out of circulation, were allowed to accumulate in national bank depositories. After the spectacular events in New York, however, which culminated in runs upon three important trust compaaies, the demand for money became .so intense that the banks in the large cities were obliged to issue clearing house certificates to use in place of currency in settling balances among themselves ; and in many places outside of New York certificates of small denominations printed in a form for general circulation were largely used. Thus each city endeavored to avoid the shipment of currency, and to retain for its own use such cash as might still be within its control. It appears that in New York City alone clearing house cer- tificates were issued in excess of $100,000,000. By the middle of November the Treasury had met the demand for relief to the extent that it had deposited with the banks all accumu- lated funds not needed for the immediate purposes of meeting Govern- ment expenditures, and had redticed the actual working balance to ap- proximately $5,000,000. To allow the balance to fall below that figure was not considered prudent, as much difficulty was experienced in bring- ing into the Treasury public moneys actually collected at sub-treasuries and other revenue offices. The public revenues also were falling off, owing in part to the scarcity of currency, which prevented the payment in the form required by law of internal revenue taxes and of duties on imports. In the meantime, and as apparently no further deposits could safely be made from the diminished cash resources of the Treasury, national banks were notified that they would be permitted to substitute bonds suitable for savings bank investments for Government bonds which were held as security against public deposits. The purpose of this measure was to enable the banks to employ the Government bonds, which were thus released as eecurity for additional banknote circulation, in conformity with law. To this offer the banks rsesponded promptly, and as a result many millions of additional banknotes were taken out and were employed in meeting the currency famine. As usual in emergencies, the difficulty of obtaining bonds, and other obstructions of detail, prevented the increase in circulation becoming effective to the full amount until some time after the need for it had passed. Just before the acute stage of the crisis, the national banknote circulation stood (on October 15) at $607,118,741'. While strenuous efforts were made, especially by some of the large banks in New York and Chicago, to comply with the expressed wishes of the Department and of the Comptroller of the Currency to increase circulation, the amount out- standing had risen on November 1 only to $611,822,676, and on November 15 to $631,344,943. The most important increase in the circulation took place after the announcement, about to be referred to, of the Govern- ment issues of Panama bonds and one-year Treasury certificates, so that the circulation attained on December 1 the amount of $656,218,196 ; on December 15, $676,914,235 ; and finally, on December 31, $69T). 130,895. By the latter date the urgent pressure for currency had practically ceased and yet notes continued to be issued in compliance with orders previously received, until the outstanding circulation on June 5, 1908, last, was $698,- 511,588. The fact that the national banks were exerting themselves to increase circulation, and that the Treasury by these new issues placed at their command means of doing so, undoubtedly had a moral effect which tended to check the panic and reduce the premium on currency. The banks were hampered, however, before the announcement of the new Govern- ment issues, by the rapid advance in the price of 2 per cent bonds. These bonds sold as high as 110, and even at this price the supply in the market obtainable by national banks was extremely limited in quan- tity. It was with a view to relieving this situation, and counteracting the premium on currency, which was itself a stimulus to hoarding and which practically interrupted exchanges between different cities, that it was decided on November 17 to receive apnlications for subscriptions for $50,000,000 in Panama Canal bonds, under the Act of June 28. 1902, and $100,000,000 in 3 per cent certificates of indebtedness, under the Act of June 18, 1898. One of the direct effects of the'^e issues was to afford to the banks the means of increasing their circulation. If the proceeds of these issues had been retained in entirety in the Treasury, the increase in bank circulation would have been offset by the amouut paid by the banks for the bonds. By providing, however, for the transfer to the banks of a part of the purchase money as an addition to their holdings of public deposits at the time, a very considerable net increase in circu- lation became possible. In order to afford this relief, the banks to which awards were made on Panama bonds were allowed to retain 90 per cent of the purchase price as a deposit, and those to which allotments were made of the one- year certificates were allowed to retain 75 per cent of the purchase price. Thus an inducement was offered for subscriptions to the new issues, as 6t THE MONEY PANIC OF 1907. well as a means of increasing banknote circulation. It was the deliberate intent also that the offer was made more attractive in the case of the bonds than in the case of the certificates, after it became evident that the issue of the entire amount of the latter first proposed woiJTtl not be required to restore confidence. Ultimately the results of these offers on the part of the Treasury were s\ich that it was found necessary to issue only $24,631,980 in the Panama bonds and $15,430,500 in the certificates of indebtedness. Practically all of both classes of obligations, excepting $91,820 in bonds, were used as the basis for increasing the banknote circulation or securing public deposits. The Comptroller of the Currency refrained at the height of the panic from calling on the national banks for th« report of condition usually required during November, but he issued such a call for reports of condition on December 3. The result of the call revealed what was expected in well-informed quarters — that much of the currency with- drawn from New York had been added to the reserves of interior banks, and that their position was execeptionally strong. The fact that the call had been made and the report submitted contributed another favor- able factor to the situation immediately afterwards, by enabling the banks to release a part of this accumulated cash to meet the pressing needs of their clients, with the knowledge that they would probably be able fully to reinstate their reserves before another call was made by the Comptroller. The announcement of the issues of new sacurities by the Treasury, accompanied by the publication of a letter by the President to the Sec- retary of the Treasury, marked in some degree the turning point of the panic. The deficit in the reserves of the New York clearing house banks which on November 16 was $53,669,950, increased in the. next week less than $500,000, and in the following weeks turned rapidly downward, until the amount on December 28, 1907, was only $20,170,350, and by January 18 had been converted into a surplus of $22,635,475. The cash holdings of these banks, which had touched a mininum on Nbvember 2-3, 1907, of $215,851,100, rose on January 18, 1908, to $295,- 182,600. No further steps were considered necessary by the Treasury except to continue deposits of public moneys for a time where they were available, and early in December it became possible to replenish the cash In the Treasury by the withdrawal of about $6,000,000 from national banks in New York City. The premium on currency did not wholly dis- appear until about the beginning of the new year, but remained only nominal during the latter part of December as the panic subsided and as the funds withdrawn from banks for hoarding were gradually restored So rapidly did the money market improve after the tide had once turned that the call made by the Department upon the banks early in December for. the return of $6 000,000 was followed on January 24 by another call for about $10,000,000 from New York banks, and this was followed on February 25 by a call for about $29,000,000, each bank having an available excess of $50,000 or over being called upon for the payment of 25 per cent of its holdings of public money. Voluntary payments from New Yprk, Philadelphia, Baltimore, and Boston, in the meantime had brought nearly 10 millions back into the Treasury. On April 28, 1908, a call was issued for the payment of approximately $45,- 000,000, and this amount was overpaid by several hundred thousand dol- lars. In Europe, also, conditions began to improve rapidly with the pass- ing of the crisis in America. The percentage of the reserve at the Bank of England rose from 35.62 per cent on January 2, 1908, to 52.69 per cent on January 16, and the directors felt justified in reducing the official discount rate from 7 per cent to 6 per cent on January 2, and two weeks later (on January 16) to 5 per cent. The gold stock of the bank, which had been rcdrced on November 7 to £27,725.225, rose on January 2, 1908, to £32r543.666, and on January 16 to £35,791,425. The Imperial Bank of Germany, which had been under severe pressure, benefited by an Increase in its cash by about $20,000,000 in the single week of January 17, and a decrease in its note issue by $43,875,000, and under these con- ditions felt justified in reducing its discount rate from 71^ to 6V2 per cent, and later (on January 25) to 6 per cent. The Bank of France also greatly increased its cash resources and reduced its discount rate early in the year. The Secretary did not feel called upon at any stage of the crisis to interfere directly with the normal movement of gold between international markets. The movement of foreign exchange was very irregular in the early stages of the crisis, beranse of some demand for remittances to London in settlement for maturing finance bills and in payment for Ameri- can securities which were being remitted by disturbed foreign holders to the United States. The sum of $1,500,000 in gold was actually engaged for export to Germany on October 19, but was explained as being a special transaction. After a short period of uncertainty, however, exchange turned strongly In favor of imports of gold into the United States, and by the end of October engagements of over $24 000,000 were announced, which were eventually swelled during the next two months to more than $100,000,000. None of this gold arrived until November, but the moral effect of the engage- ments was felt as soon as they were announced. The metal was dis- tributed, chiefly through the channel of the New York clearing house banks, to threatened points throughout the country. It is a striking proof of the energy with which the banks of New York extended aid to those of other parts of the country that the national bank returns s^ow a reduc- tion in soecie in the national banks of New York from $173,221,007 on August 22, 1907, to $147,974,918 on December 3, 1907. Thus, not only did the entire volume of gold imported between these two dates pass through New York to other places, except so far as a part was hoarded by individuals, but the New York banks gave up $25,000,000 of their usual and normal reserves. THE MONEY PANIC OF 1901. 63 Magnitude of the Crisis. The justification for taking vigorous action to arrest panic is found io tbe remark-able flgures of ttie disapppearance of carrency during the period of about six weeks from ttie suspension of tiie Knickerbocker Trust Company on October 22 until confidence was partially restored early in December. The amount of currency which disappeared from sight during this period, as nearly as can be ascertained from the national bank reports and other sources of information, was about $296,000,000, as follows : Cash absorbed in United States during the panic. Reduction in cash in national banks, August 22 to December 3 $40,838,786 Net imports of gold, November 1 to December 31 106,403,770 Increase in public deposits, August 22 to December 3 79,834,689 Increase in bank circulation, Augu-st 22 to December 3 49,856,524 Decrease in cash in State banks and Trust Companies of New York City, August 22 to December 19 19,191,700 Total 296,125,469 Of this great absorption of currency, amounting substantially to one- tenth of the entire estimated money in circulation in the United States, more than two-thirds of the burden fell upon New York. This was almost inevitable from the fact that New York is the financial distrib- uting center of the country. The figures show that more than the entire net loss in national bank reserves fell upon the national banks of New York City. The national banks outside of New York City, in spite of heavy demands upon them, were able by the aid of New York to main- tain an amount of cash actually larger by a small amount on December 3 than they held at the date of the previous report to the Compteroller on A-gust 22, when conditions were relatively tranquil. The national banks of New York City not only met th9 demand for currency until their reserves were reduced $54,103,600 below the legal limit, but in ad- dition they imported and distributed $95,000,000 in gold, and distributed also, in order to meet the demands of their depositors and banking cor- respondents, all of the money of the Government deposited with them. The result was that of the $296,000,000 currency absorbed throughout the country, $218,275,304 was provided by the banks of New York City. The amount thus disposed of by New York banks and trust companies is shown in the following table : Currency absorbed through Neto York banks. Reduction in cash in national banks, August 22 to December 3 $41,692,312 Net imports of gold, November 1 to December 31 94,095,48 1 Increase in public deposits, August 22 to December 3 47,576,o56 Increa'^e in banknote circulation, August 22 to December 3... 15,719,455 Reduction In cash in State banks and tru^t companies, August, 22 to December 19 19,191,700 Total 218,275,304 The gravity of the situation was enhanced by the fact that the pres- sure upon the money market was not localized in the United States. The fir.«!t engagemepts of gold were from London and were met by a prompt increa-^e of the Bank of England discount rate from 41/2 to 5Vi» per cent on Oct'-ber 31, which was followed on November 4 by an advance to 6 per cent, and on Thursday, November 7, to 7 per cent — the highest rnte fixed at the bank since 1873. In Germany, also, severe pressure was felt and the bank rate, after having been fir=t advanced, on October 29, from 5^2 to 6'4 per cent, was further advanced on November 8 to "¥2 per cent- -the highe'=-t rate charged by the Imperial Rank .=-ince iti=r organizatiin in 1873. The Bank of France, in spite of its immense holdings of gold, advanced its rate from Sli to 4 per cent for commercial discounts. So serious was the situation in London that aid was involved from the Ban\ of France, and prudent American ban^'ers felt It necessary to limit demands for gold v;r) m London for fear that if tbey brcame exce<= ive a commerc'al crisis woiild occir thers which would intensify the danger of the general situation in all international markets. Arrangements for imports of gold into ■ New York were made not only in Europe, but from the Argentine Republic, aiid Cuba, and the reaction of the American crisis upon Canada led to some importntions into that country The energy wMth which the economic resources of the country were devoted to the relief of the situation is indicated by the manner in which expertation of merchandise was expedited by the railways and by dealers in foreign exchange. The figurrc nf the movement of merchandise are among the most striking ever exhibited in the history of the country. ' They are briefly indicated in the foliowiug table : Foreign trade movement, August 1 to December 31, 1907. Month. Import-: of 1 Exor'sof meichandise.i meichandlse. EScess of exports. August --J- _- $125,806,043 10^,305,180 111,912,621 110.9*2,916 92,288,771 $127,270,447 13=1,318.312 180,256,035 204,474,217 207,179.436 $1,464,404 2S, 953, 162 68,343,464 93,531,301 114,890,665 September October - November December 64 THE MONEY PANIC OF 1901. The ItiMUf of UuikIm uiid Treasury Certiflcate*. The issue of new securities by the Treasury Department was influ- enced by the conclusion that it was advisable to take some strong and resolute step which would convince the public, both at home and abroad, that the Government was thoroughly alive to the situation and determined to give its aid in every possible legal and proper form. The most potent weapon at such times in bringing a crisis to an end is often as much one of moral effect as of the definite action taken. It has been the hi.story of many great crises in Europe as well as in this counti'y that the knowl- edge that adequate resources existed to avoid distaster was often sufficient to obviate the necessity for employing such resources to their utmost limit. An illustration in point is the action of the Chancellor of the Exchequer in Great Britain in the panic of 1866, when the announce- ment that he had authorised the Bank of England to disregard the bank act and to issue its notes to any necessary limit promptly arrested pres- sure upon the banks. So prompt was the response of public feeling to this action Ln suspending the demand for discounts and the withdrawal of deposits that the bank did not find it necessary to avail itself of the authority to issue additional notes. The fear that accommodation could not be obtained by solvent bu.^lness men was completely allayed and the panic almost immediately subsided. The fact that the Treasury was in a strong position in respect to its normal cash balance made the situation much more easy of control In some respects than after the panic of 1893, when the cash balance was al- most completely exhausted and the reaction of this inflncnce was felt in de- pleting the gold reserve. At that time the first issue of $50,000,000 in 5 per cent bonds was not announced until the cash reserve had been depleted below $50 000,000. And the same depletion took place before the second issue of bonds in the autumn of 1894. In the recent crisis it seemed advisable to the Department, in view of the much sounder condition of general business and of the Treasury than in 1894, to announce a strong measure of relief without waiting for the crisis to become more acute. It was with this view of the situation that the Secretary of the Treaeury, in proposing to the President an announcement of an issue of $50,000,000 in 2 per cent bonds for the construction of the Panama Canal and $100,000,000 in 3 per cent Treasury certificates for one year, made the qualification that these amounts should be issued only "if nec- essary." While the pressure upon the bariks was not allayed at once by this measure, confidence was so far restored that the premium on currency fell immediately, and bids were received in such volume for both classes of issues that it was not considered necessary to allot even half of the total amoijnt of the two issues. The Panama Canal bonds were issued under authority of the Act of June 2i8, 1902, as amended by the Act of December 21, 1905, authorizing the Secretary of the Treasury "to borrow on credit of the United States from time to time as the proceeds may be required to defray expenditures au- thorized by this act (^uch proceeds when received to be used only for the purpose of meeting such expenditures), the sum of $130,000,000, or as much thereof as may be necessary. " It would seem to be obvious from this language that it was In- tended to construct the canal entirely from the proceeds of loan.s issued for the purpose and not to charge any part "of the cost of construction upon the current ordinary receipts of the Government. As the entire pipceeds of the bonds which were actually issued under this offer, amount- ing to $24,631,980, have been expended on the canal work, it would seena that no question of the legality or propriety of such an issue of bonds could be raised. The one-year certificates were issued under authority of the Act of June 13, 1898, authorizing such issues when necessary to meet the ex- penses of the Treasury. The criticism has been made that with a nominal cash balance of some $200,000,000 in the Treasury the occasion contemplated -by the act did not arise and the power therefore did not accrue to the Secretary to make an issue of su»h securities to meet cur- rent expenses. From a strictly legal point of view there is probably no question that the determination of the occasion for making such an issue is within the discretion of the Secretary of the Treasury. Indeed, it is expressly made so by the statutes. From a financial point of view the Secretary felt justified in exercising this discretion with due regard to the amount of cash actually in the Treasury as well as to the amount shown upon the balance sheet, including deposits in national banka It seemed to him that it would be a strained construction of the Act of 1898. and of his official responsibility, to hold that it was his duty, in order to meet the current needs of the Treasury, to invoke a financial disaster by attempting to withdraw funds on deposit with national banks at a time when they were subject to severe strain in meeting the busi- ness requirements of the country, and when any additional act or policy ^tending to subject them to further pressure might make absolutely im- possible, if it were not alr«ady so, the return to the Treasury of the funds required for meeting its obligationp. With a balance of only about $5,000,000 in actual cash in the Treas- ury, after setting off the necessary amounts against outstanding checks and other similar liabilities, Treasury operations could not be carried on with ease and safety without additional funds. If measures to ob- tain such funds could be taken in such a manner as to restore confidence to the financial situation as well as to perform the more direct service of keeping the Treasury balance adequate, it .seemed to the Secretary that the adoption of a policy calculated to achieve these eads was not only within the strict limits of his legal powers, but was within his duty as responsible in some degree, rnder our existing fl'^cal system, for the .soundness and security of the monetary situation. While the entire economic resources of the country were being devoted to the relief of the monetary stringency, not only on the part of domestic bankers, but by foreign exchange houses and by the railways in the prompt movement of THE MONET PANIC OF 1907. 65 freight for export, it seemed iiuidvisable for the Secretary of the Treas- ury to take any step which would teud to counteract these efforts by withdrawing funds from the banks and thereby adding to the evils which It was his earnest desire to alleviate and bring to an end. Allotment of tUe New iHwne of Secnrlties. The character of the new issues of securities offered for subscription on the 19th of November last was such that it was anticipated that most of the subscriptions would come from national banks. The 2 per cent bonds afford such privileges to national banks as a basis of note circulation that there are strong inducements to the banks to outbid pri- vate investors, who would find in the bonds nothing more than the best form of security paying only 2 per cent per annum. It was expected — and this expectation was fulfilled — that the bonds would be used largely as a basis for additional banknote circulation and that such circulation would contribute its share to relieving the acute pressure for currency which existed throughout the country. Even if there had been no other justification for limiting subscriptions to national banks, this consideration — that the bonds would be used to meet the pressure for currency — would, in the opinion of the Department, have justified an absolute restriction of the awards to national banks. The legal right of the Department to make allotments of the bonds and securities to such persons and banks and in such amounts as it might see fit can hardly be called in question, in view of the fact that reservations on these points were made when subscriptions were invited. Thus the circular offering the Panama bonds contained this distinct pro- vision : "The Department also reserves the right to reject any or all bids, if deemed to be to the interests of the United States so to do." Obviously, so far as the offer of securities was influenced by the desire to prevent distress in the money market, it would have failed of this purpose if the awards had been made, even to bona fide bidders, which would have resulted in large drafts upon the reserve money of the banks and would not have aided in drawing money from private hoards. After careful analysis of the bids received, the conclusion was reached by the Department that if bids were awarded to individuals in large sums it would have the tendency to cause still further withdrawals of money from the savings banks, which usually carry relatively small reserves ip cur- rency, and in case of heavy demands upon them would have been corifpelled to draw upon the national banks and trust companies. It was, therefore, decided in the case of the Panama bonds to make no awards to individ- uals in excess of $10,000. It was also decided to accept the highest bids of national banks for the remainder of the issue, after these mini- mum allotments to individuals. There was another consideration, however, which it was felt cast more or less suspicion on offers for the bonds coming from individuals. This was the fact that the low rate of interest paid upon the bonds and their obvious advantage to the national banks made it probable that indi- vidual offers would be made for speculative purposes — in other words, for the purpose of selling the right of subscription as promptly as pos- sible to the banks. If there were any doubt of the correctness of this anticipation it was removed by the character and amounts of bids which were received. The total bids for the Panama Canal bonds amounted to $2,220,604,580, or more than 44 times the amount offered. This fact, not heretofore made public, would have stamped the loan as an even more remarkable success than it was, if all these bids could have been regarded as made in good faith by responsible parties. Examination of the bids shows, however, that many of them were not only speculative in character, but that they were made in many cases for very large amounts by those who were personally irresponsible and incapable of having made even the smallest preliminary payment if such payment had been required. When the awards were made, therefore, the bonds were awarded without hesitation to national banks in those cases where the prices offered were 102^^ or higher, and where the bid appeared in other respects to be made in good faith and with full capacity on the part of the bidder to execute his contract. The amount thus awarded to national banks was $24,998,040. The awards made to individuals were limited to those cases where the amounts subscribed for were for $10,000 or Ij^s, because such bids had at least a prima facie appearance of good faith. Even upon this modest basis the payments made after the allotment of the bonds showed that a considerable portion of these small bids were speculative and more or less irresponsible. While the national banks to which awards were made actually took up and paid for $24,478,860, and left unpaid for $519,180, or only a little more than 2. per cent of the awards, the $325,660 .awarded to individuals were taken up and paid for only to the amount of $153,120, and $172,450, or considerably more than half, were not paid for and remain on the hands of the Treasurer. Even of the amount taken up and paid for, only $91,820 were issued, in con- formity with the instructions of the bidders, directly to them. In other cases, to the amount of $61,300, directions were given to deliver the bonds to national banks, who made the actual payments. Hence, of the small amount awarded to individuals only about 28 per cent proved to be bids to obtain bonds for investment. There was less margin for speculation in the case of the 3 per cent certificates, because their term of one year did not allow for any con- siderable premium without extinguishing the amount of the interest. They were issued at par, and this made them immediately available, as it was not necessary to secure bids as in the case of the Panama bonds. They therefore afforded a convenient means to the banks at once to in- crease their circulation. For this reason the Secretary of the Treasury thought proper to announce at an early date that offers from individuals would no longer be received. While a number of such offers had been received prior to this notice, it was ultimately decided to make no allot- ments except to national banks. This decision was dictated by two M THE MONEY PANIC OF 1007. cuiisidevations— flrs-t tbe desire to stimulate the iM5\ie of banknote cir- culation for a period which would relieve the crlsJB ; and, second, the fact that the announcement of the issue of the new securities had already to a largo extent accomplished its intended purpose and had made it un- necessary to Issue more than a fraction of the full amount. The issue of these securities was suspended therefore before the date first named for closing the receipt of subscriptions, the total amount of the subscriptions having reached $(53,959,500. The amount issued was only $15 4:}K,500. As all of these were registered and issued to national banks with the understanding that they should be used as a basis for increasing their circulation, or to secure public deposits, they are all on deposit with the Treasurer of the United States for these purposes. The statement of the Comptroller of the Currency, as of December 31, 1907, shows that $14,- 944,500 were deposited to secure circulation and $492,000 temporarily to secure deposits, pending the issue of circulation. The entire amount, $15,436,500, is now deposited to secure circulation. One advantage in the issue of the one-year certificates as a basis for circulation is that this circulation may be retired v/ithin one year. It is provided by the Act of March 4, 1907, that not more tljan $9,000,000 of banknotes shall be retired in any one month, but this restriction does not apply to obligations called for redemption. As the 3 per cent cer- tificates will at maturity, in November next, fall under the latter ex- emption, the notes based upon them can be retired without restriction as to amount if they are found unnecessary for the purposes of business. Moreover, in those cases where the Secretary has arranged by mutual agreement with the buyers that tlie certificates may be called and paid off within a less period than one year, it will be possible to contract the circulation, if it appears to be redundant, without even waiting for the expiration of the year from the issue of the certificates and without limitation as to amount. While the awards of 2> per cent bonds were made primarily to the highest bidders among national banks, the effect of the awards was to distribute the bonds among banks in 40 of the 46 States of the Union. The one-year certificates were distributed less widely, because it was found practicable to limit the issue before the time originally set for ceasing to receive sub.'-criptions. The certificates were taken, however, by institutions in at least 18 States in dift'erent parts of the Union. It was properly pointed out in some quarters, wben two issues were proposed, aggregating $150,000,000, that they might tend to an inflation of the banknote circulation which would be disturbing if the demand for currency should be diminished by tlie cessation of business activity. It was in consideration of this factor that the Secretary felt justified in re- stricting the issues in botli cases as soon as it appeared that their an- nouncement had produced the desired effect upon public confidence. The issue of the Panama bonds would have been required In any case within a short time to meet the expenses of constructing the canal, and the Sec- retary of the Treasury can hardly be held responsible for the effect of such issues upon the volume of the banknote circulation, whatever may be his opinion as to the desirability of the infiation which might result. Practically, therefore, the responsibility resting upon him relates only to the $15,436,500 in the one-year certificates and will terminate with their maturity and redemption on November 30 of the current year. If currency is at that time redundant in amount and there is a tendency to the exportation of gold, the fact that at least this portion of the circulation might be retired by operation of law, unless secured by the deposit of other existing bonds for longer terms, may have a salutary effect upon the exchanges. Distribution of Public Moneys. Obviously when the pressure was focused, to the extent which has been set forth, on the financial center of the country, it seemed advis- able to focus relief there also. The national banks of New York City held on August 22 only $28,253,386 in deposits of public money, aside from certain balances of disbursing officers, or considerably less than 3 per cent of the national banking capital of the city. The United States deposits in national banks in all other places were about $115,- 000,000, or more than 12 per cent of the national banking capital of the remainder of the country. It is plain, therefore, under the policy of recalling the public funds which was inaugurated in the spring, that the national banks of New York were not favored with any large pro- portion of public moneys, but, if any unintentional discrimination was shown, were treated less favorably than the banks of other sections of the country. Not a dollar- of the public moneys has been deposited in the national banks of the country upon any other basis than that of the public interest. These funds have been deposited and distributed without regard to partisanship, and no Individual or association of individuals, no city or state or section, has received any other than that fair and Impartial consideration to which each is entitled. While the Secretary of the Treasury felt compelled, in order to meet the exigencies of the situation, to increase deposits largely in the banks of New York City, even the proportion left in their custody after the panic had subsided was smaller than the proportion in certain other cities and States. The amount of public deposits December 7, 1907, in the entire country was $222,352 252, which amounted to 15.3 per cent of national banking capital and surplus, amounting to $1,451,296,366. While the banks of the State of New York appear as holders of public moneys to the amount of 26.8 per cent of their capital and surplus, the banks of the New England, Eastern, and Middle Western States taken as a whole and including New York, show a percentage of deposits to capital and surplus of only a little more than 15 per cent. The banks of the Southern, Western, and Pacific States, on the other hand, show a proportion of nearly. 18 per cent. With the elimination of New York from the East- ern group, the percentage of the remaining Eastern and Middla Western States is only about 11.2. TEE MONEY PANIC OF 1907. 67 Full details of this distribution of public funds, show that they are distributed among some 1,400 national banks. The chief object, of course, in distributing public funds is not to afford profit to banks as such, but to afford to the business community means for carrying on its transactions upon a normal basis of money supply and Interest charges. It has not been thought necessary by the Department to extend the dis- tribution of public funds to all small banks, but the aim has been to distribute them so widely in every part of the country that the benefit of the funds thus distributed would reach even the most remote quarters through the increased power of making loans and rediscounts given to the stronger banks of the locality. It has been sought under the present administration of the Depart- ment to reduce the geographical distribution of the public funds as far as possible to an equitable basis. "While one of the means of "doing this has been to correct inequalities in the percentage of such distributions by States, and such corrections are still being made from time to time, it has not been felt that the sole and conclusive test of the wisdom of the distribution was the exact percentage of funds distributed. On the contrary, where particular trade movements were taking place involving a special demand for currency, larger deposits have been made than in communities where the supply of currency and capital appeared to be adequate to meet existing demands. The State of Lousiana, for instance, where the cotton movement of the Southwest is largely financed, held on December 7, deposits equal to 27.4 per cent of its national bank capital and surplus. The State of Texas, on the other hand, which has banking capital equal to about four times that of Louisiana, has received only 5.2 per cent of this amount in public moneys, because the resources of the local banks appeared to be equal to the local character of the ex- penditures involved in the movement of the cotton crop. It may be added. In the case of Texas and in some other States where the distribution of public funds was small, that the banks showed by the large reserves of cash which they held that they did not need Government assistance. Thus, the percentage of total reserve held against deposits was in Texas 25.72 per cent, and in Arkansas 29.8a per cent. In the West, Wisconsin, which contains only one large commercial center, received deposits in the ratio of only 9.9 per cent of banking capital and surplus, while Indiana received 17.1 per cent. On the Pacific Coast, California received 22.2 per cent ; the State of Washington 29.4 per cent, and Oregon 34.4 per cent. In New England on the other hand, where business is carried on less with borrowed capital than in some other sections of the Union, the average percentage of public de- posits for the national banks of the entire section was only 8 per cent, and in Connecticut as low as 3.2 per cent. It would seem, therefore, that in spite of considerable differences in the distribution of public funds, it could hardly be asserted that the figures indicate any justifiable pref- erence fiDr one section of the country over another. If they do indicate such a preference, it is in favor of the West and South as against the Eastern States, where resources in addition to the normal commercial assets of the banks are less needed than elsewhere, except in New York, upon which centers the pressure fn3m nearly the entire country. The subject of the equitable distribution of these deposits Is one to which the Treasury Department has given much attention. Bear- ing in mind the peculiar needs of different sections and the well-recog- nized movements of currency, it was intended so to distribute the weekly deposits which were begun in August as to remove the inequalities which might be found to exist in a manner so gradual as to prevent any sudden and violent disturbance to business in any locality. To formulate an intelligent policy and pursue proper methods in dealing with these de- posits, a commission was appointed by the Secretary in April, 1907, consisting of the Treasurer of the United States, the Comptroller of the Currency, the Director of the Mint, the Chief of the Division of Loans and Currency, and the Chief of the Division of Public Moneys. Much progress has been made in the equitable distribution of thpse funds by gradually increasing the deposits where they were most needed, and it was the intention to deposit in several additional weekly installments, some of which had already been prepared, substantial amounts in cer- tain of the larger cities, notably Chicago, St Louis, Philadelphia, Cin- cinnati and other points. This policy of gradual distribution was inter- rupted by the panic of October. It then became necessary to mass funds in large amounts where they would be most effective, and the figures already given show that from the financial centers they were distributed, almost automatically, to the points most seriously threatened. One of the reasons for making deposits in large amounts in the national banks of New York and other important cities, aside from the great effectiveness of such deposits in financial centers, whence they would find their way to the points where the need was greatest, was the fact that these banks were able more promptly to obtain the bonds required as security. The emergency was too keen to assign deposits to banks which were not in possession of bonds or could not obtain them promptly, either by purchase or by borrowing from large financial institutions not en- gaged directly in the business of note issue or the payment of demand deposits. An effort was made also to broaden the basis upon which public de- posits might be made by extending the list of bonds acceptable to the Department. Up to about the 1st of October, State, railway, and muni- cipal bonds were accepted at 90 per cent of their market value, when not above par, when such bonds came within the provisions of the laws of the States of New York and Massachusetts governing Investments by savings banks. At about this time bonds coming within the provisions of these laws became very scarce. Banks were then informed that bonds would be acceptable which came within the laws of Connecticut and New .Jersey, thus making available many millions of bonds which were con- sidered as good security. The Department has exercised great caution in the acceptance of bonds as securities for deposits, and in nearly all cases where bonds were accepted which were not legal savings-bank bonds they were marketable 68 THE .\i<).\i:y /M.v/r- of wot. at a price equal to, and in some cases In excess of, that of savings-bank bonds. It was deemed wise, however, a:^ they were not classed as Buvings- bank bonds, to accept them at a lower rate, namely, > 75 per cent of their market value. In every case the Department has required an ample margin, and has every confidence in the soundness of the security it has accepted. It may be further stated that many of the bond; accepted by the Department, and this is especially so in the case of Government bonds, are selling above par, which gives additional margin, and In those cases where the market price was above par no b.nuls have been accepted beyond DO per cent of their par value. The net result of the Treasury operations under the present admin- istration o* the Department has not bten to increase the principal, of the public debt, or the interest chages upon it, in spite of the recent issues of securities. On the contrary, the principal of the interest- bearing debtMeclined from $920,099,510 on March 1, 1907, to $897,503,990 on June 1, 1908. Interest charges stand at about $2,544,000 less than in March, 1907. The fact that there has been a net decrease in the principal of the debt is due to the redemption and payment of a considerable part of the 4 per cent funded loan of 1907, which by its terms was redeemable at the pleasure of the United States after July 1. 1907. Ov/ing to the demand for money which arose in the spring of 1907, it was deemed ad- visable to anticipate the maturity of a part of these bonds by offering to pay the principal with interest to an amount not exceeding $25,000,000. This offer, which was made by a circular issued by the Department March 14, 1907, resulted in redemptions between that date and June 24, of bonds to the amount of $25,088,750. In the meantime steps were taken to di.spose of the remainder of the loan. Under the circular of April 2, 1907, inviting the surrender of $50,000,000 in the maturing bonds in exchange for 2 per cent con- sols of 1930, there were received for refunding between that date and May 31 bonds to the amount of $50,307,800. These measures left outstanding, subject to redemption, 4 per cent bonds to the amount of $36,121,450. Most of these bonds were received for redemption and the interest-bearing debt was reduced by about $36,000,000 during the month of July. The reduction obtained by the two operations, redemption in advance of maturity and ultimate redemption after maturity, was about $61,000,000. As the new issues of securities amounted on December 31 to $24,088,040 in Panama Canal bonds and $15,436,500 in certificates of Indebtedness, making a combined sum of $39,524,540, this increase of the debt fell about $21,500,000 short of the reduction previously made. Even more favorable is the showing In respect to annual interest charges. The redemption of about $61,000,000 4 per cent bonds ex- tinguished annual interest charges of $a,440,000. The substitution of 2 per cent bonds for the remaining $50,000,000 of the 4 per cent loan reduced the interest charges by about $1,000,000 per annum. The total saving of about $3,440,000 is offset by the interest on the new securi- ties, which amounts to about $482,000 upon the Panama bonds and about $463,000 upon the 3 per cent certificates, making a total additional in- terest charge of about $945,000. Offsetting this increase in charges against the reduction caused by the redemption and refunding of the 4 per cent loan there emerges a saving for the current year of nearly $2,- 500,000. As it has been shown that tlie issue of the Panama Canal bonds was a necessary incident to the construction of the canal and that substantially the only one p'ossible criticism which could lie against the action of the i^e- partment was as to the exact date of the issue, it is fair to consider the in- terest payments upon the $15,436,500 in one-year certificates as representing the only important obligation incurred by the Treasury I^partment in seek- ing to avert a financial disaster. The amount of interest upon these obli- gations will be about $462,000 if they run to maturity, or a little more than half of a cent per capita. It seemed to the Secretary that the benefit to the country as a whole, including the inhabitants of its most remote parts, would more than compensate this expenditure. The amount of such interest payments, moreover, is likely to be still further reduced by arrangements which have been made with certain of the banks to sur- render their certificates in advance of maturity with interest only to the date of such surrender. Owing to various other readjustments, including the fact that a con- siderable sum in the old 4 per cent loan in 1900 had not been presented for redemption or conversion, the estimated annual interest charges on the debt, which was $23,645,678 on March 1, 1907, stood on June 1, 1908, at $21,101,197. As the one-year certificates are not likely to be renewed, disbursements of Interest on their account will cease within a year, and if no further change occurs in the principal of the interest-bearing debt, the reduction made in the interest charges between March 14, 1907 and November 30, 1908, will be approximately $3,000,000. Gro-wtli of Money in Circulation— Tlie New Currency IjUW— The Treasury Department and tlie 3Ioney Panic. The net increase in the stock of money during- the last four years has been $587,631,922, consisting- of gold, $302,893,065; sil- ver, $40,680,905, and national bank notes, $252,460,952, while there was a decrease of $8,402,000 in Treasury notes in 1890. The Treasury holdings of g-old on June 30, 1908, amounted to $1,001,666,550, against $97,353,776 on January 31, 1895. The increase in small denominations, $10 and under, during the la.st four years has been $314,337,811. showing that there has been a marked incr.^ase in the demand for small Ijills to meet the requirements of trade and commerce. THE MONEY PANIC— NATIONAL BANKS. 6'. There has been much important legislation in currency mat- ters to meet the demands of the business interests of the coun- try, notable among which may be mentioned the following en- actments, which were passed upon recommendation of the Presi- dent in 1906: An increased supply of bills of small denomina- tions ; increase of the "monthly limit of retirement of national bank notes from $3,000,000 to $9,000,000; autho«izing the Secre- tary of the Treasury to receive other than United States bonds as security for public deposits, among which are State and mu- nicipal bonds and other securities that are acceptable as savings bank investments; the issue of $10 gold certificates; amendment to the law of 1900, permitting the issuance of United States notes in denominations less than $10 — ones, twos, and fives. National Banks and Growth of National Banking: since tke Besinniug of 1900. The act of March 14, 1900, entitled "An act to define and fix the standard of value, to maintain the parity of all forms of money issued or coined b}' the United States, to refund the pub- lic debt, and for other purposes," commonly known as the "Gold Standard Act," gave a strong impetus to the organization of national banks, by reason of the fact that authority was granted for the formation of national banking associations with capital of $25,000, and added to the value of the note issuing franchise by permiting the issue of circulating notes to the par value of the United States bonds deposited as security therefor. From the date of the passage of that act to June 1, 1908, charters were granted to 3,889 associations, with authorized capital of $228,198,300. By reason of liquidations, voluntary and other- wise, the net increase in number of banks was 3,193. Capital stock increased from $616,308,095 to $925,697,775, a net increase of $309,389,680. Circulation outstanding increased during this period from $254,402,730 to $698,449,517, the net increase being $444,046,787. On February 13, 1900, the date of reports to the Comptroller of the Currency next previous to that of the passage of the gold standard act, there were in active operation 3,604 banks with ag- gregate resources of $4,674,910,710, of which $2,481,579,942 con- sisted of loans and discounts and $476,544,315 of lawful money, that is, gold, silver, and legal tenders. The principal liabilities of the associations were as follows : Capital stock, $613,084,465 ; surplus and undivided profits, $363,872,959 ; circulation out- standing, $204,912,544; individual deposits, $2,481,847,032. On May 14, 1908, the date of the latest reports to the Comptroller of the Currency, the number of national banking associations in operation was 6,778, their loans and discounts $4,528,346,875, specie and other lawful money $861,326,450, and aggregate re- sources $8,594,632,697. Capital stock paid in amounted to $912,- 361,919, surplus and other undivided profits $758,108,662, circu- lating notes outstanding $614,088,723, and individual deposits $4,- 312,656,789. Comparing the condition of the banks on February 13, 1900, and May 14, 1908, there is shown to have been a net increase in number of associations of 3,174 ; in aggregate resources of $3,- 919,711,984; in capital stock $299,277,454; in surplus and other undividefd profits $394,235,698 ; in circulating notes $409,176,177, and in individual deposits $1,830,809,753. The percentages of incrgase were as follows : Number of banks, 88.07 per cent ; ag- gregate resources, 83.85 per cent; capital stock, 48.82 per cent; circulation, 199.68 per cent; individual deposits, 73.77 per cent. Classifying the returns by geographical divisions, the States in each division being shown in the accompanying table relating to the number and capital of national banks organized since March 14, 1900, it is noted that there has been an increase in the aggregate resources of banks in every section of the coun- try. In the New England States the number of banks decreased from 565 to 485 and the capital in the sum of $35,822,020; but the increase in surplus and imdivided profits was $17,163,010, in circulation $16,390,368, and in individual deposits $65,034,438. The number of national banks in operation in the Eastern States on February 13, 1900, was 976, and on May 14, 1908, l,4v)5. This increase in number of banks was attended by an increase in capital stock to the extent of $116,424,214; surplus and undivided 70 THE MONET PANIC— NATIONAL BANKS. profits, $187,694,952; circulatiug notes, $133,265,042, and indi- vidual deposits, $643,575,617. In the Southern States the number of banks in operation in- creased over 150 per cent, or about 545, to 1,369, resulting in an inerease in capital stock of $72,831,910; in surplus and undivided profits, $53,441,175; in circulating notes, $76,760,030, and indi- vidual d(^posits of $220,122,825. The number of banks in the Middle Western States was nearly doubled, the inerease being from 1,053 to 1,931, and an increase in capital stock of $83,246,950; surplus and undivided profits, $85,917,020; circulation, $115,126,149, and in individual deposits, $529,319,606^ The most notable increase in number of banks was in the Western States division, viz, 235 per cent, or about 346 to 1,161 banks. The increase in capital stock in this division was $32,- 385,700 ; in surplus and undivided profits, $23,875,439 ; circulating notes, $33,587,585, and individual deposits, $194,855,710. On February 13, 1900, there were in operation in the Pacific States 119 national banks, and on May 14, 1908, including five associations in the insular possessions, there were 336. The in- crease in capital in this division was $30,210,700 ; in surplus and undivided profits, $26,144,100; in circulation, $34,047,002, and in individual deposits, $168,901,555. The capital of the five banks in the insular possessions on May 14, 1908, vras $710,000; sur- plus and undivided profits, $158,957 ; circulating notes outstand- ing, $385,747, and individual deposits, $1,134,176. The number of national banks classified by capital stock, or- ganized in each State and geographical division since March 14, 1900, together with the number and paid-in capital stock of na- tional banks reporting to this office on May 14, 1908, are shown in the accompanying table : Summary, ty States, geographical divisions, and classes, of na- tional l)anks organized March 14, 1900, to May 31, 1908, and the numher and capital of reporting national danJcs on May U, 1908. States, etc. Capital —$50,000. Capital $50,000+. Total organizations l?anlfs reporting on May 14, J)OS. No. Capital. No. Capital. No. Capital. No. Capital, Maine 3 4 5 1 "1 $75,000 105,000 125.000 25,000 75,000 ■; 15 1 4 $285,000 200,000 100,000 4,000,000 500,000 200,000 8 6 6 16 1 7 $360,000 305,000 225,000 4,025.000 500,000 275.000 77 57 51 198 22 80 $9,201,000 00 New Hampshirt Vermont Massachusetts- Rhode Island— Oonnectlcut— - 5,4.-55,000 00 5,710.000 00 56.427,500 00 6,700,250 00 20,230,050 00 Tot. New Eng- land States- 16 405.000 28 5.285.000 44 148 74 386 8 39 3 5.690.000 485 103.703.800 00 New York New Jersey Pennsylvania- Delaware 74 48 186 8 28 1,892,500 1,235,000 4,797,000 220,000 747.000 74 26 200 14,070,000 1,885,000 22.180,000 15,962,500 3,120,000 26,977.000 220,000 1,677,000 850,000 420 f73 761 26 101 11 158,657,320 00 19,850,070 50 112.978,971 no 2,323,985 00 Maryland District ol Columbia 11 3 930,000 850.000 17,821,950 00 5,202.000 00 Total Eastern States 344 8.891.500 314 27 33 22 12 37 19 31 18 17 118 21 26 20 39.915,000 658 72 68 44 17 73 29 66 21 28 402 36 78 46 48.806,500 1,495 =- 105 95 67 20 96 39 76 29 36 529 40 146 82 316,372,299 59 Virginia West Virginia- North Carolina South Carolina Georgia — Florida.— Alabama- Mississippi Louisiana 45 35 22 5 36 10 35 3 11 284 15 52 26 579 1,206,000 960,000 580,000 125,000 1,020,000 275,000 029,500 80,000 280,000 7,641,000 375,000 1,340,000 675,000 2,760,000 2,605,000 2,110,000 1,485,000 3,550,000 3,450,000 2,625,000 1,765,000 8,210,000 10,550,000 1,770,000 3,615,000 1,750,000 3,966,000 3,565,000 2,690.000 1,610.000 4,570,000 3,725,000 3,554,500 1,815,000 3,490,000 18,191,000 2,145,000 4,985,000 2,425.000 12,601,000 00 8,019,250 00 6, .535, 000 00 4,210,000 00 10,409,490 00 4,691,-350 00 8,307,000 00 3,401,980 00 8,695,000 00 40,163,000 00 3,950,000 00 16,370,900 00 9.545,000 00 Arkansas Kentucky Tennessee Total South- ern States- 15.486.500 401 41.275,000 980 56,761.500 1,369 186.899,870 00 THE MONEY PANIC— BANKS—CURRENCY LAW. 71 Summary by States, etc ., of national banks- -Continued. states, etc. Capital -$^,U00 Capital $60,000+. Total organizations Banks reporting on May 14, 1908. No. Capital. Ao. Capital. No. Capital. No. Capital. Ohio 10 < 87 I4r IC 3- 17' ir 43 723 10^ 6^ 8-^ 1 ■ 10 273 2,768,000 2,278,000 3,793,500 265,000 950,000 4.571,000 3,080,000 1.160,000 76 57 69 21 23 24 50 27 11,225,000 6,200,000 11,335,000 4,390,000 2,950,000 3,250,000 2,945,000 7,485,000 180 144 215 31 60 203 167 70 13,993,000 8,478,000 15,128,500 4,655,000 3,900,000 7,821,000 6,025,000 8,615,000 364 239 407 97 128 261 317 119 60,349,100 00 Indiana Illinois Michigan Wisconsin 1:- Minnesota Iowa Missouri Total Middle 24,916,450 00 .56, 043,. 500 00 14,7.55,000 00 15,740,000 00 20,666,000 00 20,270,000 00 30,455,000 00 Western States 18,865.500 347 49,780,000 1,070 U5 117 113 21 20 82 34 312 68,645,500 1,932 129 87 207 2or. 39 30 114 40 309 43,195,050 00 North Dakota- South Dakota- Nebraska Kansas Montana Wyoming Colorado New Mexico Oklahoma • 2,7»0,00O 1,510,000 2,(90,000 2,185.000 375.000 250.000 1,376,000 r.50,000 7,000,000 7 8 22 28 7 10 30 9 39 400,000 400,000 1,-375,000 2,050.000 610,000 550,000 2,450,000" 525,000 2,705,000 3,140,000 1,910,000 3,865,000 4,235,000 985,000 800,000 3.826,000 1,175,000 9,705,000 4,610.000 00 3, .385, 000 00 13,215,000 00 12,142,500 00 3,705,000 00 1,610,000 00 9,465,000 00 1.995,000 00 12,212,700 00 Total West- ern States- 722 18,576.000 160 11,065,000 882 41 38 110 33 29,641,000 1,161 58 60 62,370,200 00 Washington— Oregon 22 27 49 23 7 1 5 555.000 676,000 1,250,000 .-80,000 180,000 25,000 130.000 19 11 61 10 3 7 4 1 1,445,000 650,000 10,212.800 600.000 275 000 2,000,000 1,. 326. 000 7,482,200 00 4,108,700 00 California Idaho 11,462,800 134 1 180 000 37 30,. 532, 800 00 1,855,000 00 Utah 10 i'^'i 000 19 2,155,000.00 Nevada Arizona Alaska 1,125,000! 8 200,000j 9 50,000 1 1,1.50,000 330,000 50,000 9 12 2 1,707,000 00 705,000 00 100,000 00 Total Pacific States- 134 3,396,000 116 14,557,800 250 1 17,953,800 331 4 1 5 6,778 48,645,700 00 Hawaii Porto Rico 2 50,000 2 550,000 100,000 . 600,000 100.000 610,000 00 100,000 00 Total Island Possessions 2 50,000 3 650,000 5 700,000 710,000 00 Total United States 2,520 35, 670,, 500 'l,369 162.527.800 3,889 228,198,300 912,361,919 59 THE CURRENCY LAW. From the opening- of the first session of the Sixtieth Con- g-i-ess it was agreed by all Eepublicans that an honest attempt should be made to enact into law a Currency bill which should provide for any future emerg-ency and prevent a repetition of a panic such as we had last fall. Early in the session the Repub- licans reported a bill known as the Vreeland bill and it passed the House by a good majority. During its consideration the Republicans gave the Democrats an opportunity to vote upon the so-called Williams bill, which had had the approval of Mr. Bryan, but the Democrats refused to vote even for their own bill, and persisted in a useless filibuster, but could not prevent the passage of the Republican bill. In the Senate the so-called Aldrich bill was passed and con- ference committees were appointed in both houses. It was found, however, that the House would not accept the Aldrich bill, and that the Senate would not accept the Vreeland bill, and it was not until the end of the session that a so-called conference bill was agreed upon by the Conference Committee of both Houses. This bill was introduced into the House on May 27th, and passed by a vote of 1G6 to 140, the Republicans voting in the affirma- tive and the Democrats in the negative. The same conference bill was introduced the following day in the Senate and passed 72 THE MONEY PAX 10- THE CURRENCY LAW. that body on Saturday, May 30th, after a filibuster had been utteinptect ag-ainst the bill by the DcMuocrats. In speakiiigr ujk)!! the measure diirinj,'- Its consideration in the House JJepresentative Burton, of Ohio, said: Mr. Speaker, the incompetency of the Democratic party to rule this people was never more emphatically displayed than by their course on this currency legislation. Last autumn thure was a frightful panic The mightiest financial institutions tottered as if they would fall, and wheels of commerce and Industry were clogged, hundreds of thousand were thrown out of employment and much of the cause of this distressful condition was the rigidity and insufficiency of our currency system. The Republicans of this House came here determined. In spite ot barren theories, in i^pite of selfish interests, and against the solid oppo- sition of the Democratic party, to do something for this country, so that such a calamity might not occur again. [Applause on the Republican side. J If you gentlemen had been in power and had gone home, having done nothing, you might better have called on the rocks and the hills to fall on you because of- your inability to take care of this most urgent prob- lem. And yet you fill the air with cries that this measure is prompted only by political emergency, that it is partisan. Gentlemen, if there is any question which .should be approached dispassionately, if there is any question wherein we should' seek to grasp the real situation and solve it, it is this which relates to the money supply of the country. *»*****♦« But this bill throws open to any national bank of the country the opportunity to become a member of an association of banks, each of which may issue currency upon its resources — that is, upon commercial paper gr securities approved by the association. There must be at least ten banks associated, having a capital and surplus of not less than $5,000,000. But if any single banking asso- ciation having public bonds wishes to issue currency under the method embodied in the Aldrich bill, it may do so. On this side we have had the courage to bring forward a measure for the relief of the country and to meet the fear of panic and distress ; on the other side you have fled from your own measure. And now you accuse others because they introduce a bill for the purpose of meeting the existing situation, containing a principle to which even you cannot make objection. The provisions of the bill agreed upon may not be permanent. We have placed a time limit upon them to satisfy that potent public opinion which believes that we ought to have an entire reorganization of our whole banking system. Some, no doubt, will maintain that these pro- visions will work so well that no such readjustment will be required. At any rate, we are advocating the passage of a law which has in it no element of danger. No bank note can be issued which will not be good anywhere on the globe. The tax is so high that there can be no danger of any inflation. The redemption fund of 10 per cent substituted for the reserve provision in the House bill is, I believe, an improve- ment. And with this on the Statute books the ship of commerce may go out into the most stormy .'^ea with the hope that, though tempests may come, she will weather them all, and weather them in safety. [Pro- longed applause on the Republican side.] The bill as it became a law is as follows : THE NEW CURRENCY LAW. An Act to Amend the National Banking LaTrs. Be it enacted by the Senate and House of Representatices of the United States of America in Congress assembled, That national banking as- sociations, each having an unimpaired capital and a surplus of not less than twenty per centum, not less than ten in number, having an aggre- gate capital and surplus of at least five millions of dollars, may form voluntary associations to be designated as national currency associations. The banks uniting to form such association shall, by their presidents or vice-presidents, acting under authority from the board of directors, make and file with the Secretary of the Treasury a certificate setting forth the names of the banks composing the association, the principal place of business of the association, and the name of the association, which name shall be subject to the approval of the Secretary of the Treasury. Upon the filing of such certificate the associated banks therein named shall become a body corporate, and by the »ame so designated and approved may sue and be sued and exercise the powers of a body corporate for the purposes hereinafter mentioned : Provided, That not more than one such national currency association shall be formed in any city : Pro- vided, further. That the several members of such national currency as- sociation shall be taken, as nearly as conveniently may be, from a ter- ritory composed of a State or part of a State, or contiguous parts of one or more States : And provided further, That any national bank in such city or territory, having the qualifications herein prescribed for mem- bership in such national currency association, shall, upon its application to and upon the approval of the Secretary of the Treasury, be admitted to membership in a national currency association for that city or ter- ritory, and upon such admission shall be deemed and held a p:irt of the body corporate, and as such entitled to all the rights and privileges and subject to all the liabilities of an original member: And provided further. That each national currency association shall be composed exclusively of banks not members of any other national currency association. The dissolution, voluntary or otherwise, of any bank in such associ- ation shall not affect the corporate existence of the association unless THE MONEY PANIC— THE CURRENCY LAW. 73 there shall then remain less than the minimum number of ten banks ; Provided, however. That the reduction of the number of said banks below the minimum of ten shall not affect the existence of the corporation with respect to the assertion of all rights in favor of or against such association. The affairs of the association shall be managed by a board consisting of one representative from each bank. By-laws for the gov- ernment of the association shall be made by the board, subject to the approval of the Secretary of the Treasury. A president, vice-president, secretary, treasurer, and an executive committee of not less than five members, shall be elected to the board. The powers of such board, except in the election of officers and making of by-laws, may be exercised through its executive committee. The national currency association herein provided for shall have and exercise any and all powers necessary to carry out the purposes of this section, namely, to render available, under the direction and control of the Secretary of the Treasury, as a basis for additional circulation, any securities, including commercial paper, held by a national banking associ- ation. For the purpose of obtaining such additional circulation, any bank belonging to any national banking association, having circulating notes outstanding secured by the deposit of bonds of the United Sthtes to an amount not less than forty per centum of its capital stock, and which has its capital unimpaired and a surplus of not less than twenty per centum, may deposit v/ith and transfer to the association, in trust for the United States, for the purpose hereinafter provided, such of the securities above mentioned as may be satisfactory to the board of the association. The officers of the association may thereupon, in behalf of such bank, make application to the Comptroller of the Currency for an issue of additional circulating notes to an amount not exceeding seventy- five per centum of the cash value of the securities or commercial paper so deposited. The Comptroller of the Currency shall immediately trans- mit such application to the Secretary of the Treasury with such recom- mendation as he thinks proper, and if, in the judgment of the Secretary of the Treasury, business conditions in the locality demand additional circulation, and if he be satisfied with the character and value of the securities proposed and that a lien in favor of the United States on the securities so deposited and on the assets of the banks composing the as- sociation will be amply sufficient for the protection of the United States, he may direct an issue of additional circulating notes to the association, on behalf of such bank, to an amount in his discretion, not, however, ex- ceeding seventy-five per centum of the cash value of the securities so deposited : Provided, That upon the deposit of any of the State, city, town, county, or other municipal bonds, of a character described in sec- tion three of this Act, circulating notes may be issued to the extent of not exceeding ninety per centum of the market value of such bonds so deposited : And provided further. That no national banking association shall be authorized in any event to issue circulating notes based on commercial paper in excess of thirty per centum of its unimpaired capital and sur- plus. The term "commercial paper" shall be held to include only notes representing actual commercial transactions, which when accepted by the association shall bear the names of at least two responsible parties and have not exceeding four months to run. The banks and the assets of ail banks belonging to the association shall be jointly and severally liable to the United States for the redemp- tion of such additional circulation ; and to secure such liability the lien created by section fifty-two hundred and thirty of the Revised Statutes shall extend to and cover the assets of all banks belonging to the asso- ciation, and to the securities deposited by the banks with the association pursuant to the provisions of this Act ; but as between the several banks composing such association each bank shall be liable only in the pro- portion that its capital and surplus bears to the aggregate capital and surplus of all such banks. The association may, at an3 time, require of any of its constituent banks a deposit of additional securities or commercial paper, or an exchange of the securities already on deposit, to secure such additional circulation ; and in case of the failure of such bank to make such deposit or exchange the association may. after ten days' notice to the bank, sell the securities and paper already in its hands at public sale, and deposit the proceeds with the Treasurer of the United States as a fund for the redemption of such additional cir- culation. If such fund be insufficient for that purpose, the association may recover from the bank the amount of the deficiency by suit in the Circuit Court of the United States, and shall have the benefit of the lien hereinbefore provided for in favor of the United States upon the assets of such bank. The association or the Secretary of the Treasury may permit or require the withdrawal of any such securities or commercial paper and the substitution of other securities or commercial paper of equal value therefor. Sec. 2. That whenever any bank belonging to a national currency association shall fail to preserve or make good its redemption fund in the Treasury of the United States, required by section three of the Act of June twentieth, eighteen hundred and seventy-four, chapter three hundred and forty-three, and the provisions of this Act, the Treasurer of the United States shall notify such national currency association to make good such redemption fund, and upon the failure of such national currency association to make good snch fund, the Treasurer of the United States may, in his discretion, apply so much of the redemption fund belonging to the other banks composing such national currency associ- ation as may be necessary for that purpose ; and such national currency association may, after five days' notice to such bank, proceed to sell at public sale the securities so deposited by such bank with the association pursuant to the provisions of section one of this Act, and deposit the proceeds with the Treasurer of the United States as a fund for the re- demption of fhe additional circulation taken out by .such bank under this Act. Sec. 3. That any national banking association which has circulating notes outstanding, secured by the deposit of United States bonds, to an 74 THE MONEY PANIC— THE CURRENCY LAW. amount of not less than forty per centum of its capital stock, and which bus a surplus of not less than twenty per centum, may make application to tlie Comptroller of the Currency for authority to issue additional cir- culating notes to be secured by the deposit of bonds other than bonds of the United States. The Comptroller of the Currency shall transmit immediately the application, with his recommendation, to the Secretiiry of the Treasury, who shall, if in his judgment business conditions in the locality demand additional circulation, approve the same, and shall de- termine the time of issue and fix the amount, within the limitations herein imposed, of the additional circulating notes to be Issued. When- ever after receiving notice of such approval any such association shall deposit with the Treasurer or any Assistant Treasurer of the United States such of the bond.s described in this section as shall be approved in character and amount by the Treasurer of the United States and the Secretary of the Treasury, It shall be entitled to receive, upon the order of the Comptroller of the Currency, circulating notes in blank, registered and countersigned as approved by law, not exceeding in amount ninety per centum of the market value, but not in excess of the par value of any bonds so deposited, such market value to be ascertained and determined under the direction of the Secretary of the Treasury. The Treasurer of the United States, with the apprpval of the Sec- retary of the Treasury, shall accept as security for the additional cir- (.ulating notes provided for in this section, bonds or other interest-bearing obligations of any State of the United States, or any legally authorized bonds issued by any city, town, county, or other legally constituted municipality or district in the United States which has been in existence for a period of ten years, and which for a period of ten years previous to such deposit has not defaulted in the payment of any part of either principal or interest of any funded debt authorized to be contracted by it, and whose net funded indebtedness does not exceed ten per centum of the valuation of its taxable property, to be ascertained by the last preceding valuation of property for the assessment of taxes. The Treas- urer of the United States, with the approval of the Secretary of the Treasury, shall accept, for the purposes of this section, securities herein enumerated in such proportions as he may from time to time determine, and he may with such approval at any time require the deposit of addi- tional securities, or require any association to change the character of the securities already on deposit. ) Sec. 4. That the legal title of all bonds, whether coupon or reg- istered, deposited to secure circulating notes issued in accordance with the terms of section three of this Act, shall be transferred to the Treasurer of the United States in trust for the association depositing them, under regulations to be prescribed by the Secretary of the Treasury. A receipt shall be given to the association by the Treasurer or any Assistant Treas- urer of the United States, stating that such bond is held in trust for the association on whose behalf the transfer is made, and as security for the redemption and payment of any circulating notes that have been or may be delivered to such association. No assignment or transfer of any such bond by the Treasurer shall be deemed valid unless counter- signed by the Comptroller of the Currency. The provisions of sections fifty-one hundred and sixty-three, fifty-one hundred and sixty- four, fifty-one hundred and sixty-five, fifty-one hundred and sixty-six, and fifty-one hundred and sixty-seven, and sections fifty-two hundred and twen- tyrfour to fifty-two hundred and thirty-four, inclusive, of the Revised Statutes respecting United States bonds deposited to secure circulating notes shall, exc-^pt as herein modified, be applicable to all bonds deposited under the terms of section three of this Act. Sec. 5. That the additional circulating notes issued under this Act shall be used, held, and treated in the same way as circulating notes of national banking associations heretofore issued and secured by a deposit of United States bonds, and shall be subject to all the provisions »of law affecting such notes except as herein expressly modified : Provided, That the total amount of circulating notes outstanding of any national banking association, including notes secured by United States bonds as now pro- vided by law, and notes secured otherwise than by deposit of such bonds, shall not at any time exceed the amount of its unimpaired capital and surplus : A^ul provided further, That there shall not be outstanding at an> time circulating notes issued under the provisions of this Act to an amount of more than five hundred millions of dollars. Sec. 6. That whenever and so long as any national banking associ- ation has outstanding any of the additional circulating notes authorized to be issued by the provisions of this Act it shall keep on deposit in the Treasury of the United States, in addition to the redemption fund required by section three of the Act of June twentieth, eighteen hundred and seven- ty-four, an additional sum equal to five per centum of such additional ciruclation at any time out.'-tanding, such additional five per centum to be treated, held, and used in all respects in the same manner as the original redemption fund provided for by said section three of the Act of June twentieth, eighteen hundred and seventy-four. Sec. 7. In order that the distribution of notes to be issued under the provisions of this Act shall be made as equitable as practicable between the various sections of the country, the Secretary of the Treasury shall not approve applications from associations in any State in excess of the amount to which such State would be entitled of the additional notes herein authorized on the basis of the proportion which the unimpaired capi- tal and surplus of the national banking associations in such state bears to the total amount of unimpaired capital and surplus of the national banking associations of the United States : Provided, hvivever. That in case the applications for associations in any State shall not be equal to the amount which the as.sociations of such State would be entitled to under this method of distribution, the Secretary of the Treasury may, in his discretion, to meet an emergency, assign the amount not thus applied for to any applying association or associations in States in the same section of th« country. TBB MONEY PANIC— THE CURRENCY LAW. -TS Sec. 8. That it shall be the duty of the Secretary of the Treasury CO obtain information with refertnee to the value and character of the securities authorized to be accepted under the provisions of this Act, and he shall from time to time furnish information to national banking as- sociations as to such securities as would be acceptable under the provisions of this Act. Sec. 9. That section fifty-two hundred and fourteen of the Revised Statutes, as amended, be further amended to read as follows : , "Sec. 5214. National banking associations having on deposit bonds of the United States, bearing interest at the rate of two per centum per annum, including the bonds issued for the construction of the Panama Canal, under the provisions of section eight of 'An Act to provide for the construction of a cang,l connecting the waters of the Atlantic and Pacific oceans,' approved .June twenty-eighth, nineteen hundred and two, to 'secure its circulating notes, shall pay to the Treasurer of the United States, in the months of January and July, a tax of one-fourth of one per centum each half year upon the average amount of such notes in circulation as are based upon the deposit of such bonds ; and such asso- ciations having on deposit bonds of the United States bearing interest at a rate higher than two per centum per annum shall pay a tax of one-half of one per centum each half year upon the average amount of its notes in circulation as are based upon the deposit of such bonds. National banking associations having circulating notes secured otherwise than by bonds of the United States shall pay for the first month a tax at the rate of five per centum per annum upon the average amount of such of their notes in circulation as are based upon the deposit of such securities, and afterwards an additional tax of' one per centum per annum for oach month until a tax of ten per centum per annum is reached, and thereafter such tax of ten per centum per annum, upon the average amount of such notes. Every national banking association having out- standing circulating notes secured by a deposit of other securities than United States bonds shall make monthly returns, under oath of Its presi- dent or cashier, to the Treasurer of the United States, In such form as the Treasurer may prescribe, of the average monthly amount of its notes so secured in circulation ; and it shall be the duty of the Comptroller of the Currency to cause such reports of notes in circulation to be verified by examination of the banks' records. The taxes received on circulating notes secured otherwise than by bonds of the United States shall be paid into the Division of Redemption of the Treasury and credited and added to the reserve fund held ^or the redemption of United States and other notes." Sec, 10. That section nine of the Act approved July twelfth, eighteen hundred and eighty-two, as amended by the Act approved March fourth, nineteen hundred and seven, be further amended to read as follows : "Sec. 9. That any national banking association desiring to withdraw Its circulating notes, secured by deposit of United States bonds in the manner provided in section four of the Act approved June twentieth, eighteen hundred and seventy-four. Is hereby authorized for that pur- pose to deposit lawful money with the Treasurer of the United States and, with the consent of the Comptroller of the Currency and the approval of the Secretary of the Treasury, to withdraw a proportionate amount of bonds held as security for its circulating notes in the order of such deposits : Provided, That not more than nine millions of dollars of lawful money shall be so deposited during any calendar month for this purpose. "Any national banking association desiring to withdraw any of its circulating notes, secured by the deposit of securities other than bonds of the United States, may make such withdrawal at any time In like manner and effect by the deposit of lawful moaey or national bank notes with the Treasurer of the United States, and upon such deposit a pro- portionate share of the securities so deposited may be withdrawn : Pro vided. That the deposits under this section to retire notes secured by the deposit of securities other than bonds of the United States shall not be covered Into the Treasury, as required by section six of an Act en- titled 'An Act directing the purchase of silver bullion and the issue of Treasury notes thereon, and for other purposes,' approved July fourteenth, eighteen hundred and ninety, but shall be retained in the Treasury for the purpose of redeeming the notes of the bank making such deposit." Sec. 11. That section fifty-one hundred and seventy-two of the Re- vised Statutes be, and the same is hereby amended to read as follows: "Sec. 5172. In order to furnish suitable notes for circulation, the Comptroller of the Currency shall, under the direction of the Secretary of the Treasury, cause plates and dies to be engraved, in the best manner to guard against counterfeiting and fraudulent alterations, and shall have printed therefrom, and numbered, such quantity of circulating notes, in blank, of the denominations of five dollars, ten dollars, twenty dollars, fifty dollars, one hundred dollars, five hundred dollars, one thousand dollars, and ten thousand dollars, as may be required to supply the as- sociations entitled to receive the same. Such notes shall state upon their face that they are secured by United States bonds or other securi- ties, certified by the written or engraved signatures of the Treasurer and Register and by the imprint of the seal of the Treasury. They shall also express upon their face the promise of the association receiving the same to pay on demand, attested by the signature of the president or vice-president and cashier. The Comptroller of the Currency, acting under the direction of the Secretary of the Treasury, shall as soon as practicable, cause to be prepared circulating notes in blank, registered and countersigned, as provided by law, to an amount equal to fifty per centum of the capital stock of each national banking association ; such notes to be deposited in the Treasury or in the sub-treasury of the United States nearest the place of business of each association, and to be held for such association, subject to the order of the Comptroller of the Currency, for their delivery as provided by law : Provided, That the Comptroller of the Currency may issue national bank notes of the present form until plates can be prepared and circulating notes Issued as above 76 THE MONEY PANIC— THE CURRENCY LAW, provided : Provided, however, That in no event shall bank notes of the present form be Issued to any bank as additional circulation provided for by this Act." Skc. 12. That circulating notes of national banking associations, when presented to the Trea.sury for redemption, as provided In section three of the Act approved June twentieth, eighteen hundred and seventy-four, shall be redeemed In lawful money of the United States. Skc. 13. That all acts and orders of the Comptroller of the Currency and the Treasurer of the United States authorized by this Act shall have the approval of the Secretary of the Treasury, who shall have power, also, to make any such rules and regulations and exercise such control over the organization and management of national currency associations as may be necessary to carry out the purposes of this Act. Skc. 14. That the provisions of section fifty-one hundred and ninety- one of the Revised Statutes, with reference to the reserves of national banking associations, shall not apply to deposits of public moneys by the United States in designated depositories. Skc. 15. That all national banking associations designated as regu- lar depositories of public money shall pay upon all special and additional deposits made by the Secretary of the Treasury in such depositories, and all such associations designated as temporary depositories of public money, shall pay upon all sums of money deposited in such associations interest at such rate as the Secretary of the Treasury may prescribe, not less, however, than one per centum per annum upon the average monthly amount of such deposits : Provided, hoioever, That nothing contained in this Act shall be construe^ to change or modify the obligation of any association or any of its officers for the safe-keeping of public money: Provided, further. That the rate of interest charged upon such deposits shall be equal and uniform throughout the United States. Skc. 16. That a sum sufficient to carry out the purposes of the pre- ceding sections of this Act is hereby appropriated out of any money In the Treasury not otherwise appropriated. Skc. 17. That a Commission is hereby created, to be called the "National Monetary Commission," to be composed of nine members of the Senate, to be appointed by the Presiding Officer thereof, and nine mem- bers of the House of Representatives, to be appointed by the Speaker thereof ; and any vacancy on the Commission shall be filled in the same manner as the original appointment. Sec. 18. That it shall be the duty of this Commission to inquire into, and report to Congress at the earliest date practicable, what changes are necessary or desirable in the monetary system of the United States or in the laws relating to banking and currency, and for this purpose they are authorized to sit during the sessions or recess of Congress, at such times and places as they may deem desirable, to send for persons and papers, to administer oaths, to summon and compel the attendance of .wit- nesses, and to employ a disbursing officer and such secretaries, experts, stenographers, messengers, and other a.ssistauts as shall be necessary to carry out the purposes for which said Commission was created. The Commission shall have the power, through sub-committee or otherwise, to examine witnesses and to make such investigations and examinations, in this or other countries, of the subjects committed to their charge as they shall deem necessary. Sec. 19. That a sum sufficient to carry out the purposes of sections seventeen and eighteen of this Act, and to pay the necessary expenses of the Commission and its members, is hereby appropriated out of any money in the Treasury not otherwise appropriated. Said appropriation shall b© immediately available and. shall be paid out on the audit and order of the chairman or acting chairman of said Commission, which order and audit shall be conclusive and binding upon all Departments as to the correctness of the accounts of such Commission. Sec. 20. That this Act shall expire by limitation on the thirtieth day of June, nineteen hundred and fourteen. Approved May 30, 1908. THE CURRENCY LAW. Ita Pro-vialons Outlined by an Accepted and Unprejudiced Autliorlty. [From "Bradstreets," May 30, 1908.] The bill is, as was to be expected, a compromise measure, in which the conferees have combined as far as possible the fea- tures of the Aldrich and Vreeland bills. It empowers national banking associations, each having an unimpaired capital and a surplus of not less than 20 per cent, not less than ten in number, and having an aggregate capital and surplus of not less than $5,000,000, to form voluntary associations to be designated as National Currency Associations. The banks uniting to form such associations are required through their oflRcers to file ^vith the Secretary of the Treasury certificates setting forth the names of the associations and of the banks composing them and their principal place of business, whereupon the associated banks i' THE MONEY PANIC— THE CV-ifRENCY LAW named in each certificate are to liecome a body corporate, enti- tled to sue and be sued and to exercise the powers of a body •■orporate for the purpose of the bill. Not more than one . i association is to be formed in any city ; the members thereof ■ire to be taken as nearly as conveniently may be from a terri- to7-y composed of a state or part of a state or contiguous parts of one or more states, and no member of one national currency association is to be a member of another, but any national bank within the territory of aii association having- the requisite quali- fications is entitled to become a member thereof. The affairs of each association are to be managed by a board consisting of one representative from each bank. In order to obtain additional circulation, any bank belonging to a national currency association having- circulating- notes out- standing secured by the deposit of United States bonds to an amount not less than 40 per cent of its capital stock, and uhicti has its capital unimpaired and a surplus of not less than 20 per cent, may deposit with and transfer to the association in tmst for the United States such securities held by it, including commercial paper, as may be satisfactory to the board of the association, whose officers may thereupon in behalf of such bank apply to the Comptroller of the Currency for an issue of ad- ditional circidating notes, not exceeding 75 per cent of 1he cash value of the securities or commercial paper so deposited. The ;application is to be immediately transmitted by the Comptroller ■with such recommendation as he shall think proper to the rSeeretary of the Treasniy, who may direct an issue of additional notes to the association on behalf of the applying bank to an amount in his discretion not exceeding 75 per cent of the cash value of the securities deposited, provided that in his judgment business conditions in the locality demand additional circula- tion ; that he is satisfied with the character and value of the securities proposed, and that a lien in favor of the United States on the securities deposited and on the assets of the banks com- posing the association will be amply sufficient to protect the government. "Upon the deposit of state, county, or municipal bonds, circulating notes may be issued to not exceeding 90 per cent of the market value thereof, but no national bank is to be authorized in any event to issue circulating notes based on com- mercial paper in excess of 30 per cent of its unimpaired capital and surplus. The term "commercial paper," as used in Ihe bill, Is defined to include only notes representing actual commercial transactions, which when accepted by the association shall bear the names of at least two responsible parties and have not exceeding four months to run. ^s a means of additional security for the notes issued under 'the bill, it is provided that the banks and the assets of all banks belong'ing to the association to whom they are issued shall be jointly and severally liable for the redemption thereof, and the lien created by section 5230 of the Eevised Statutes is extended to cover the assets of all banks belonging to the association and the securities deposited by the banks with the association, though as between the several banks composing such association each bank will be liable only in the proportion that its aggregate capital and surplus bear to the aggregate capital and surplus of all such banks.' Associations may at any time require from any of their constituent banks a deposit of additional securities or commercial paper or an exchange of secujcities already on de- posit, and in case of the failure of a bank to meet such require- ment may, after ten days' notice to the bank, sell the securities and paper already in their hands at public sale and deposit the proceeds with the Treasurer of the United States as a fund for the redemption of the additional circulation, or in case of the in- sufficienc}^ thereof may recover the amount of the deficiency by suit. In the event of any bank failing to preserve or make good its redemption fund, the national currency association of which it is a member ma}^ be notified to do so, and in the event of its failure the Treasiirer of the United States is authorized to apply so much of the redemption fund of the other banks com- posing the association as may be necessary for the purpose. As already intimated above, bonds other than those of the United States may be accepted as security for additional cir- 78 THE MONET PANIC— THE CURRENCY LAW. culation. With the approval of the Secretary of the Treasury, the Treasurer of the Uuited States is to accept for that purpose bonds or other interest-bearing obligations of any state of tlie United States, or any legally authorized bonds issued by any city, town, coiintv or otlier lej^ally <'onstltuted municipality or district in the United States which has been in existence for a period of ten years, and which for a period of ten years pre- vious to the deposit thereof has not defaulted in the payment of any part of either principal or interest of any funded debt authorized to be contracted by it, and whose net founded indebt- I'dness does not exceed 10 per cent of the valuation of its tax- able property. The legal title of all bonds deposited is to be transferred to the Treasurer of the United States in trust for the association depositing them. The notes issued under the bill are to be used, held and treated in the same way as national bank notes heretofore issued and subject to the provisions of law affecting such notes except as modified in the bill. The total amount of outstanding cir- culating notes of any bank, however, must not exceed the amount of its imimpaired ca^^ital and surplus, and the total amount of notes issued under the bill must not at any time exceed $500,000,000. While any bank has outstanding any of the ad- ditional circulation authorized by the bill, it is required to keep on deposit in the Treasury, besides the redemption fund re- quired under the act of Jime 20, 1874, an additional sum equal to 5 per cent of such additional circulation, to be held and treated in the same manner as provided by that act. To secure an equitable distribution of the notes issued under the bill, it is provided that the Secretary of the Treasury shall not approve applications from any state in excess of the amount to which such state would be entitled on the basis of the proportion borne by the unimpaired capital and surplus of the banks of that state to those of the banks of the whole coimtry, provided that where the applications from any state are below its propor- tion the Secretary of the Treasury, to meet an emergency, may assign the amount not applied for to any applying- association in another state in the same section of the country. The tax on the additional circulation is fixed by the bill for the first month at the rate of 5 per cent per annum upon the average amount of such notes in circulation, with an additional tax of 1 per cent per annum for each month afterward until a tax of 10 per cent per annum is reached, and thereafter a tax of 10 per cent per annum upon the average amount of the notes. These taxes are to be added to the reserve fund held for the redemption of United States and other notes. Provision is made for the appointment of a currency commission, consisting of nine members from each branch of the national legislature, to report what changes are desirable in the monetary system of the United States or in the laws relating to banking and cur- rency, such commission to sit during the sessions or recess of Congress. A Measure of Panic Insurance. [Prom the Wall Street Journal.] In the first place, it certainly does provide a measure of protection against the worst effects of such a financial crisis as we had last winter. It provides for the issue of emergency currency up to $^00,000,000 that could be issued quickly by national banks in case any scare developed that led to with- drawal of reserve money into hoarding places. That is soiue- thing so invaluable to the financial system of the United States that, however defective the mechanism to accomplish this may be and however short it may fall of a thorough-going reorgani- ation of the banking and currency laws of the United States, it must be accepted as a great relief measure. It is imnic in- surance. Moreover, in accomplishing this it does so with a frank ac- knowledgment that the law is a temporary expedient. This acknowledgement is made in the last section of the bill, which provides that the Act shall expire by limitation on June 30, 1914. In the meantime a national monetary commission is pro- vided for, which is to report what changes are necessary in the THE MONEY PANIC— MONEY OF THE WORLD. 71; laws relating- to banking- and currency. The purpose is that between now and 1914 a really comprehensive and scientific* system of banking shall be enacted. Ex-Secretary Sliaw on Canse of Panics. At the meeting- of the National Business League of Chicago ex-Secretary Shaw said: "The American people have been living extravagantly and this prac- tice has become well-nigh universal, and applies as much to the West as to the East. Boldness in business has also been the rule. In the agricultural States men have purchased lands, paying part cash, and have felt perfectly safe with a mortgage representing 50 per cent of the prospective value. City and suburban property has been purchased in the same way. Others have purchased well-known and high-grade stocks and bonds as investments, but have borrowed a part of the pur- chase price. Timber, coal lands and mining enterprises have been cap- italized, and every locality, East, West, North, and South, has aided in their fllDtation. Commercial, industrial, and electric railway enterprises hava been projected, and securities thus created have found a ready market in rural as well as in urban communities. Meantime, everyone has de- nounced the speculator and none have been 'more generous of criticism than those most guilty. "It has been popular for several years to speak disparagingly of American business men, their methods, and the institutions with which they have been connected. With few exceptions, both the secular and the religious press have vied with magazine writers, Chautauqua lec- turers, and ambitious politicians in painting in most somber colors every- thing American, and in gazetting as unworthy of confidence, quite indis- criminately, American business men. A few most shameful disclosures have been held up quite universally as fair illustrations of conditions generally Instead of exceptions. Threats of criminal prosecutions of un- named persons on undefined and indefinite charges have been liberally exploited. Naturally these things have had their influence. Universal business confidence cannot be maintained indefinitely in the face of uni- versal denunciation, and when confidence forsakes us there is nothing left on which to rest our business and industrial superstructure. "Lest I might be misunderstood, I want to make it clear that in my judgment this country will never outgrow the lift toward civic and busi- ness righteousness resulting fro'm the policy of strict enforcement of law which has characterized the administration of President Roosevelt. I am equally certain that it will take us some years to outgrow the evil effects resulting from agitation, reckless legislation, and ill-considered prose- cutions by those who have been unable to appreciate the President's pur- poses." MONEY OF THE WORLD. Stocks of Money in the Principal Conntrles of tlie World, in 1873, 1896, and 1906. This table, which shows the quantity of gold, silver, and un- covered paper in each of the principal countries for which figures are available, compares the quantities of these various classes of money in 1906 with that of 1896, the period of the silver agitation in the United States, and with that of 1873, the earliest year for which figures of this character were collected by the Director of the Mint, whose office is authority for all of the figures in this table. It will be noted that the quantity of gold and the total money in the United States have grown much more rapidly than in any other country, and that the growth from 1896 to 1906 has been very strongly marked with a gain far in excess of that of any other country in the list. Attention is also called to the fact that the total stock of gold in the 13 countries named, as shown by the final line of the table, has grown much more rapidly than that of either of the other classes of money named. In this connection the table showing the world's gold and sil- ver production from 1493 to 1907 will prove interesting. The table in question will be readily found by reference to the index. By an examination of that table it will be seen that the world's gold production since 1873 has aggregated as much as in the entire period from 1492 to 1873. An analysis of that table discloses the fact that the value of gold produced in the world from 1492 to 1873 was 6,120 million dollars, coining value, and that the production from the beginning of 1873 to the beginning of 1908 was 6,368 millions. Statisticians esti- mate that the quantity of gold in the world is now double that of 1875, while the quantity produced since 1896 has been over three billion dollars, or one-third as much as that produced in the 400 years prior to 1896. 80 THE MONEY PANIC OF 1907. t 00 " 2 g ^ I is t a ft. •" g 8 w s I b 4 .9 ^ « to I? » --^ O ©_S_£ 0*5 =5 O © O 5 < Qy CO C*5 if^ l>- r-4 , iiii-ciiii-olii ! o CO o" i~^ o <5 "^ I- c5 o o"-* I- ;S|||§8||8; ^oooooooo ooo I 00 1^ ir in in i i;d co (M 88S88S8888S88 |8|8|8|SS|8? inh;«O09t-iO-*IN 'S8S j&siissssj^?"'-^' IP I ||||8§S|8 O O C 1 sis; COCOi-IOOTil$ctHTOl-Hr-l-riH -M, I ssssssfss'sC^'- |l i ! -3 08 O g CO _ •a « 83 >H 2 "3 — ■*-' '•« m c » »-i 5±:>'s com c(|uent upon the tremendous prosperity which had come to 1 he country under the decade of protection is now peuerally conceded, as will be seen from the quoi>ations which follow from distiuf^iiished writers upon, and students of this subject. That it was merely a financial piiu'w, temporary in its existence anti not a ^rcat industrial depression reducing em- ployment, wages, and prices of the products of labor, such as that accompanying the Wilson low tariff, will be equally apparent by a comparison of conditions in the summer of 1908, ten months after the panic of 1907, with those of the snmmer of 1896, after three years of low tariff and accomjjanying indu.strial, as well as financial depression. The ])ublic soup houses, the Coxey ar- mies, the thousands compelled to sacrifice self respect and ask and accept charity and the millions nnsnccessfnlly seeking em- ployment, which characteri/efl the industrial panic accompanying the low tariff period, 1894-7, contrast strongly with conditions to-day. IliiMineHH liiii»rovoin«*iitH !n 190«. That business conditions have a1 really greatly improved and that the financial divstnrbance of eight months ago is not to re- sult in general business depression is now generally conceded. The New York Journal of Commerce (Democratic) of June 1, 1908, announced the resumption of work on full time in large numbers of the New England cotton and woolen mills. ,The same issue reports from Paducah, Ky., the big hosiery mills of that city running day and night in the hope of catching up with orders. The Philadelphia Ledger of June 2d reports the Coplin Cement Manufactiiring C-omi)any as working day and night with its entire force, while large ninnbers of other industries were re- ported as increasing their force of employees and working on full time. ; Dispatches from 8t. Louis published, on June 1st, state that 17,000 names were on June 1st added to pay rolls in St. Louis and vicinity, and that $.5,000,000 worth of goods had been sent from the St. Louis hou.ses to manufacturers within a forlnight. The New York Evening I'ost (Democratic) of May 23d, com- menting upon the improvement, says: "It Ts only fair to remem- ber that the country has to-day in its sound currency and pro«;- perous interior two factors making for recovery which did not exist in 1874;" and on June 1st publishes dispatches from many places, especially the New England cotton and woolen mills, announcing a return to full time. The Washington Post (Democratic) of June 2d saj^s : "June begins the real summer season with many signs of returning prosperity. Plentifulness of money and its cheapness have en- couraged promoters of industrial enterprises and railroad buil- ders to renew their plans of expansion. Some of the best in- formed railroad men foresee business that will tax the capacity of their equipment. Menhants are beginning to order for a busy fall trade. 'J'he country is all right." I?. Ct. Dun & (^o. say in their Heview that their figures of com- mercial failures for the month of May. 1908, present the most encouraging monthly statement as to the amount of defaulted indebtedness since July of last year and its total of 13y2 mil- lions compares favorably with 20 1/3 millions in the best pre- ceding n)onth of this year. The New York' Herald of June 1st says: "All the factors of production are with us in full blast, and with ea.sy money and good crop prospects, to which the element of confidence is now added by the enactment of the currency law. the outlook is bright indeed for the highest measure of prosperity." The New York Journal (Democratic) of June 2d says: "The country is waking up. Mills and factories that have been closed for months are again humming and whirring with action. Trade PROSPERITY. 88 is iniproving-. New York merchants are reinstating employees that they were forced to dispense with last fall because of the flurry in Wall street. In Chicago commercial men are pre- paring for a prosperous season. In the great manufacturing centers of the East fears have fled from owners of plants and many chimneys that had long grown cold are now sending up their former volumes of smoke. There is money in the banks and the specter of distress is dimmer." The New York Herald of July 26, says : From all over the land come the good tidings that an unmistakable and abundant wave of prosperity is sweeping along. To the Hei-ald come dis- patches from the great centers which prove beyond doubt that "good times" are here — and here apparently, to stay, Mills are running full blast, crops are bumper everywhere, the rail- roads are taking on men, and the entire nation, with one accord, gives vent to the expression that prosperous seasons are at hand. In the uplift of general industi-y from depression, following upon satisfactory harvests, no one can overlook the tremendous force of abundant and cheap money. While the vast accumu- lations in the banks of the country are in themselves the evi- dences and results of lessened activities of commercial life, the great accumulations of surplus funds gathered in the financial reservoirs provide the quickening of industry when the proper period for recuperation has run its course. How vast a sum of reserve money has acciimulated in the country in recent months can only be approximated. But in the national banks alone, under the call of the Comptroller of the Currency for their condition on May 14. there was no less than $861,326,450 of specie and legal tenders or reserve money. Of this sum $318,000,000 was in the vaults of national banks in New York City. The Comptroller of the Currency has just issued a call for the condition of the national banks as of July 15. The figures on this are not yet available, but the general impression is that, despite gold exports during the interval, the showing "legal reserve money" will have been augmented. The total gold circulation in the United States, according to recent estimates, amounted to the huge total sum of $1,445,- 000,000, of which 36 per cent was held in the national banks of the United States and nearly 16 per cent in the banks of New York City, which is the central reservoir of the financial system. As already stated on May 14, the national banks of the country held $861,326,450, which was an increase of $73,000,000, as com- pared with the preceding call by the Comptroller of the Cur- rency, that of February 14, and no less than $171,000,000 more than was held by the banks of the national association a year ago in May. National Bank Conditions, May 14, 1908. The latest report of the Comptroller of the Currency on the operations of the National banks of the country shows that their condition had nearly returned to that of the corresponding date in 1907, a period of high tide of prosperity, and was in marked contrast with conditions in March, 1897, the month of the inau- guration of William McKinley, and the approximate end of the Wilson low tariff period. The capital stock paid in of the National banks of the coimtry on May 14, 1908, was 912 million dollars ; on May 20, 1907, one year earlier, 884 millions, and on March 9, 1897, was but 642 million dollars, showing an improved condition as to capital stock when compared with that of one year ago, and an increase of nearly 50 per cent when compared that of the corresponding date of 1897. The surplus fund on May 14, 1908, was 555 million dollars, against 535 millions on May 20, 1907. and but 247 millions on March-S, 1897. The un- divided profits, less expenses and taxes paid, were on May 14, 1908. 203 million dollars, against 186 millions May 20, 1907, and but 8614 millions on March 9, 1897. The individual deposits on May 14, 1908. were 4,313 million dollars, against 4,323 millions on May 20, 1907. and but 1,669 millions on March 9, 1897, the in- dividual deposits on May 14, 1908. being thus practically as much as one year ago, and over 2i/4 times as much as in 1897. The loans and discounts, which are a measure of industrial activity, Si PROSf'ERITY. yvei-e on May 14, 1008, 4,528 million dollars, against 4,631 mil- Upna oix May 20, 1907, and biit 1,886 millions on March 9, 1897, beiiifj;- thus but little below the conditions of that high water l})i^i;k,0,f I prosperity one year ago, and more than 2Va times as i^uch as iiji ^larch, 1897. , Money in Cirvuliition, Jnly 1, 190S. The money in <'irculatibn in the United States on July 1, 1908, was $3,045,257,289, against $2,772,956,455 on Jnly 1, 1907. tHe year of high-water mark of prosperity, against $1,-506,434,966 iili896, the year of low-water mark of Democratic adversity, and the year in which William Jennings Bryan was telling us that prosperity and sufficient money to produce prosperity could only be had by the free and unlimited coinage of silver. The per c;apita circulation July 1, 1908, was $34.81, against $32.22 on July 1, 1907, and $21.41 on July 1, 1897, the per capita of money ih circulation on July 1, 1908, being thus 8 per cent more than in 1907 and 60 per cent more than in July, 1896, the low-record year oi the Wilson tariff period. One interesting feature of this tre- mendous increase in the amount of money in circulation in the United States in 1908 as compared with 1896, when we were told that increased currency could only be obtained by the free and linlimited coinage of silver, is the fact that the gold and gold certificates in circulation (the latter being, of course, the equiva- lerit of gold, since they represent gold deposited in the Treasury) aggregated on, July 1^ 1908, $1,403,017,937, agtlinst but $497,103,- 183 on July 1, 1896, or nearly three times as much gold in cir- culation in 1908 as in 1896. Prices of Farm Products, 1908. Another evidence that the financial disturbance of 1907 has not seriously atTected the masses or their purchasing power and has riot brought to the great agricultural population the terrible depression which char9,cterized the low tariff period is found in a comparison of prices of farm and other products prevailing in the markets to-day with those of 1896. A little table below compares prices of a few representative articles in the first week Of June, 1908, with those ruling in the first week of June, 1896. It wilj.be seen that the price of. wheat in New York, which in th^ first week of June, 1896, was 69% cents per bushel, was $1 per bushel in June, 1908 ; corn advanced from 33% cents per bushel in June, 1896, to 78 cents per bushel in June, 1908; oats, from 22% cents per bushel in June, 1896, to 53% cents per bushel lit 1^08 ; lard^ from 4.4 cents per pound to 8]/^ cents; mess pork, from $8 per barrel to $14.50 ; wool, Ohio XX, from 17 cents per pound to 30 cents-; and cotton, from 7% cents per pound in June, 1896, to 11.4 cents per pound in June, 1908. "Wholesale prices at 'New York of representative articles of farm Vf ' : production, 1896 and 190S. -' ' Articles. First week in June— 1896, 1908. 1X7.hn6f. . , ) t^ •> -. ,. ; f . . . . per bi;shel-. Dollars. 0.69% .33% .22% .044 8.00 .17 .07% Dollars. 1.00 Oats '" ' 3." -IIZII-2llCl2 „^-.per bushel- - per bushel— .78 .531^ I,ard ' — - ' — per pound.. .085 Mess pork _. — — Wool, Obio XX — - per barrel.^ per pound-. per pound.. 14.. 50 •.30 .114 ♦Price at Boston. Evidences of Industrial Activity. One further evidence of the slight effect upon our industries of the financial panic of 1907 when compared with the industrial panic of 1894, 1895 and 1896, which followed the enactment of the Wilson law, is found by a comparison of the imports of manufacturers' raw materials at the present time with those PROSPERITY— 1897-1907. 85 of the low tarit? period, and also by a comparison of the manu- factures exported at the present time with those of the low tariff period. The imports of raw material for use in manufac- turing- in the seven months from October, 1907, to and including April, 1908, the full period of the financial panic, exceeded in ' value those of any full year of the operation of the Wilson low \ tariff aef,, whose framers prided themselves on the fact that their tariff law offered free raw materials to the manufacturers of the United States. The importation of raw material during the entire i)eriod of the Wilson law averaged 16 million dollars per month; during the seven months' depression under the Ding- ley law, from October, 1, 1907, to May 1, 1908, the importation , of raw material for use in manufacturing averaged 29 million dollars per month. The exports of manufactures during the three years' operation of the Wilson tariff law aggregated 774 million dollars, or an average of 21^2 million dollars per month. The exports of manufactures from July 1, 1907, to May 1, 190S, \ including the full period of the depression imder the Dingley law, aggregated 637 million dollars, or an average of 63.7 mil- lions per month. Thus the monthly average of exportations of manufactures during the ten months ending with April, 1908, has been three times as much in value as the monthly average during the entire period of the Wilson law. It may safely be asserted that the value of manufactures exported in the fiscal I year 190S will he as great as that for the entire three years under I the Wilson laiv, this estimate for 1908 being based upon the 11 I months' figures already received by the Bureau of Statistics. All Late Returns Favorable. Necessarily the opportunities for a statistical comparison of 1908 conditions with those of earlier years are few, since statis- ; tical statements in most cases apply to full years, either fiscal i or calendar, and none of these at the present moment are avail- ! able for the year 1908. In all of the monthly or briefer periodic I statements available the latest figures for 1908 have been pre- i sented, and the instantaneous picture of conditions which they I present is, as seen by the above, extremely favorable. It is pos- I sible, however, to compare conditions at th^e close of 1907 (in i some cases the calendar, and in other cases the fiscal year) witb ! those of earlier dates and especially to compare conditions of I 1907, after a decade of Dingley operation, with those of 1897, I after three years' experience with low tariff and four years ex- I perience with Democratic rule. The statements and tabh^s which i follow compare conditions in 1907 with those of 1897, the year j of McKinley's inauguration and the enactment of the Dingley law, also in other cases with those of 1906, the last full year Democratic and low tariff rule. I Comparison op conditions in 1907 w^ith those: op isot. Financial, Commercial and Industrial Conditions in tWe United States in 1897 and at Latest Available Date. .. Value of all farm products, estimated by the Department of Agriculture: in 1897, 4,250 million dollars; in 1907, 7,500 mit- lions. Value of farm animals: on January 1, 1897, $1,655,415,000; on January 1, 1908, $4,331,230,000. Value of horses: 1897, $452,650,000; in 1908, $1,867,530,000. Value of mules: 1897, $92,302,000; in 1908, $416,939,000. Value of cattle : 1897, $877,169,414 ; in 1908, $1,495,995,000. Value of sheep: 1897, $67,021,000; in 1908, $211,736,000. Value of swine : 1897, $166,273,000 : in 1908, $339,030,000. Farm value of sheep per head : 1897, $2.46 ; in 1907, $3.88. Value of wool product: 1897, 30 million dollars; in 1907, 78 millions. Farm value of crops: 1897, 501 million dollars; in 1907, 1,337 millions. Farm value of wheat crop : 1897, 428 million dollars ; in 1907, 564 millions. M PROSPERITY— X801'19Q7. Hay crop of the United States: 1897, 401 million dollars; in J 907. 744 millions. I\)tiito iTop of the United States: 1897, 90 million dollars; in 1907, 184 million.s. lieet sugar product of the United States: 1897, 84 million pounds; in 1907, 9G7 millions, or eleven times as much in 1907 as in 1897, and the beet sugar production in 1907 was twice as great as that of the cane sugar production of the Uii^ted States lor the same year. Farm value of corn per bushel: in 1897, 26.3 cents; in 1907, 51.6 cents. Farm value of wheat per bushel: in 1897, 80.8 cents; in 1907, 87.4 cents. Value of cotton crop: 1897, 288 million dollars; in 1907, 683 millions. (Estimate of New Orleans Cotton Exchange.) Price of middling cotton per pound in the New York market: 1897, 7 cents; in 1907, 12.1 cents. Price of medium Ohio fleece wool per pound : January, 1897, 21 cents ; January, 1907, 39 cents. Average price of corn in the New York market: in January, 1897, 32 cents per pound; in January, 1907, 64 cents per pound. Pig iron production in 1897, 9,652,000 tons; in 1907, 25,781,000 tons. Coal production: 1897, 178,776,000 tons; in 1907, 429 million tons. Tin plates manufactured: 1897, 574,779.000 pounds; in 1906i, 1,294,000.000 pounds. , American cotton manufactured by American mills: in 1897, 2,792,000 bales; in 1907, 5,005,000 bales. Cotton imported for use in manfacturing in 1897, 51,899,000 pounds; in 1907, 104,792,000 pmmds. ■ <;° '!• /'iv.'^-, Wool imported for use in manufacturing: in 1897, 350,852,000 pounds ; in 1907, 203,848,000 pounds, showing the contrast under protection and free trade. Raw silk imported for use in manufacturing : in 1897, 7,993,000 pounds ; in 1907, 18,744,000 pounds. Crude rubber imported for use in manufacturing: in 1897, 35,574,000 pounds ; in 1907, 76,964,000 pounds. Pig tin imported for use in manufacturing tin plates: in 1897, 6J.2 niillion dollars; in 1907, 38 million dollars. Value of all mineral products: in 1897, $647,000,000; in 1906, $1,903,000,000. Total domestic exports: in 1897, 1.032 million dollars; in 1907, 1,854 millions. Exports of manufactures: 1897, 311 million dollars; in 1907, 740 millions. Share which manufactures form, of the exports : 1897, 30 peir cent; 1907, 40 per cent. Imports : 1897, $764,730,000 ; in 1907, $1,434,421,000. Imports of raw material for use in manufacturing: 1897, $196,159,000; in 1907, $477,027,000. Imports free of duty: 1897, 382 million dollars; in 1907, 644 millions. Imports dutiable: 1897, 383 million dollars; in 1907, 790 mil- lions. Excess of exports over imports: 1897, $286,263,144; in 1907 $446,429,653, and the excess of exports over imports since the Dingley Act went into effect, over 5^ billion dollars. Money in circulation : July 1, 1897, 1,640 million dollars ; Jum 1, 1908, 3,036 millions. Gold and gold certificates in circulation : July 1, 1897, 555 mil; lion dollars ; June 1, 1908, 1,402 million dollars. \ Per capita money in circulation : July 1, 1897, $22.87 ; June l! 1908, .$34.75. i Interest on public debt: July 1, 1897, $34,387,000; June 1} 1908, $21,258,000. ; Per capita interest charged: July 1, 1897, 48 cents; June II 1906, 24 cents. ^ j Number of national banks in operation in United States! October 5, 1897, 3,610; February 14. 1908, 6,698. j Capital stock of national banks in operation : October 5, 1897!' $•81,500,000 ; February 14, 1908, $905,550,000. i PROSPERITY. 87 Loans and discounts of national banks : October 5, 1897, 2,067 million dollars ; February 14, 1908, 4,422 million dollars. Deposits in all banks in the United States: 1897, 5,095 million dollars; 1907, 13,100 millions. Deposits in savings banks : 1897, 1,983 million dollars ; 1907, 3,495 millions. Number of depositors in savings banks : 1897, 5,201,132 ; 1907, 8,588,811. Bank clearings in the United States : 1897, 54 billion dollars ; 1907, 155 billions. Wealth. (There are no figures for 1897 or 1907.) Census estimate for 1900 is 88,517 million dollars, and for 1904, 107,104 millions. Industrial insurance in force: 1897, 996 million dollars; in 1906, 2,454 millions. Students in colleges, universities, and schools of technology: in 1897, 86,000; in 1906, 129,000. Telegraph messages sent: 1897, 71,780,000; in 1907, 98,480,000. Kailways in operation in the United States: 1897, 184,591 miles; 1907, 228,509 miles, an increase of 43,918 miles. Passengers carried : 1897, 504 millions ; 1906, 815 millions. Tons of freight carried: 1897, 788 millions; 1906, 1,610 mil- lions. Railways placed under receivership: 1897, 1,537 miles; 1907, 317 miles. llailw^ays sold under foreclosure : 1897, 6,675 miles ; 1907, 114 miles. Electric railways in the United States : 1897, 13,765 miles ; 1906, 36,212 miles. Average freight rates on wheat from St. Louis to Liverpool : 1897, 20.33 cents per bushel ; in 1907, 15.87 cents per bushel. Tonnage of vessels owned on the ocean, frontage, lakes and western rivers of the United States: 1897, 4,769,000 tons; 1907, 6,939 tons. Vessels built in the United States: 1897, 232,233 tons; 1907, 471,332 tons. 'I'onnage of vessels from foreign countries entering the ports of the United States: 1897, 23,760,000 tons; 1907, 36,622,000 tons. Tonnage of vessels passing through the Sault Ste. Marie Canal: 1897, 17,620,000 tons; 1907, 44,088,000 tons. Telephone subscribers: 1897, 325,000; January 1, 1908, 3,035,- 000. Number of railway employees: 1897, 823,476; 1906, 1,521,355. Wages paid by railways: 1897, 466 million dollars; 1906, 901 millions. Expenditures for public schools in the United States : 1897, $187,682,000; 1906, $307,766,000. Immigrants arrived : 1897, 230,832 ; 1907, 1,285,-349. Original homestead entries in the United States : 1897, 4,452,- 000 acres; 1907, 14,755,000 acres. Public lands sold for cash : 1897, 7,754,000 acres ; 1907, 20,867,- 000 acres. Tlie present phenomenal prosperity lias been fvon under a tariff Tvl»lcli -was made to protect the Interests of tlie Ameri- can producer, business man, wage-worker, and farmer alike. —President Roosevelt at Minneapolis, April 4, 1903. Tlie Rate law does not pro far enough. The practice untler it has already disclosed the necessity for new amendments and will doubtless suggest more. Such is the true method —the empirical and tentative method — of securing proper remedies for a new evil.— Hon. "W^m. H. Taft, at Columbus. Ohio. The hum of industry has drowned the voice of calamity and the voice of despair is no longer heard in the United States, and the orators without occupation here are no-^v looking to the Philippines for comfort. As Tve opposed them when they vrere standing against industrial progress at home, -Mve oppose them now as they are standing against na- tional duty in our island possession in the Pacific. — President McKinley. One vital, dominating fact confronts the Democratic party which no oratory, which no eloquence, which no rhetoric can obscure: BRYAN'S NOMINATION MEANS TAFT'S ELECTION.— New York World. 88 PROSPERITY— MONEY IN CIRCULATION. Money In Circulation In the Lnlted Stutea, 1880 to 1008. 'I'his table shows the amount of money in circulation in the United States and the various classes thereof at decennial periods from 1800 to 1880, quinquennially from 1880 to 1890, and annually from 1890 to 1908. An especially important feat- ure is the decline in the amount of money in circulation and in per capita circulation in 1895 and 1890 and the rapid in- crease which has characterized more recent years. It will be Keen that the total amount of money in circulation has doubled since ISOO and that the increase has occurred cliiefiy in g-old, antl in gold certilicates for which an ecpiivalent in gold is de- posited in the Treasury Department. The total circulation has doubled and the per capita circulation has incieascnl more than 50 ])er cent since 1896, when Mr. Bryan and liis followers were telling- us that free coinage of silver was necessary to a growth of our currency. » a) oj U3" 5§ H O {J S-3 )';^'1<310 ■-' 1^ n C-l 'X -^ O I-- »-< CC GO -f CTi C3 "-I © t^ O C-l (M n-t<-«<©©^oo©vct-if^©?:CR-*r/3-*ir'io lO © ^ M cJj ?- =;• -M c8 S iC05l^O;t^COcaoo*i »Mc3 ■^(N ^ t* o a IOO>-Hr^rOr^<©C'5i-lOOlftO >r-t©050»OOt^O'^C<505"l<'-*OD'J^l~-COCCl>5i-HlO lirvr-(-t(r-(r-t05C3C<300-*0»ftlCO»tOf-'0 50-*030rHl-(I^S5(1.15.1©-»)'00 i-^O^XNcJ^lMOi-HlCCSOOi-li— l-*050©0«-(m^ooqv©©©05 l5D(35i-ICr5©lftlOOO-«-fVOOiri|;:--<*iC»-.|'lft(M-*00 IOTOO(M®(MlOOl05Di-l?S®J«coiMcoe<5e«5eoe<5ecc<5 )vni6<5©«>i>-o«ioi 1 «S 50 (N »lft (nS iifti-«<3iQe > t^ 00 < I © lO ©t^OOlM < l©C<3eO'M(35'H00lO .00©©^COC<5rH(M ^^\ lh~5DO©T-H(Mi»00'Mt-l ! ! ! 2^i W55c<3COi-iin5D©00«D( (>]Oi'-llfti-l<35m«OrHcp< (fqoOrH-*r-iS5»^55(MJS< CCOrHM©e<5COlOl IMiniOOSr-l©0000£ llft©rH-*!-IOO©coi«T-(8.. 1859-. 1860- 1861- 1862-. 18J3- 188I-. 186">_. 1866- 1867- 1888- 1869- 1870- 1871.. 1872.. 1873.. 1874- 1875.. 1876- 1877.. 1878-. 1879.- 1880-. 1881- 1882-. 1883-. 1884- 1885- 1886- 1887- 1888- 1889- 1890- 1891.. 1892- 1893.. 1894.. 1895- 1896-. 18')7- 1898- 1899- 1900- 1901- 1902- 1903.. 1904.. 1905- 1906- 1907.- Numbei Number Average due eacu de- positor. Average pe capi- of of Hf l)OS- 1 epoKlts. ta iu the banks. 10 ItulS. Uulted Wtates 8,635 $1,138,576 $131.86 $0.12 15 16,931 2,537,082 149.84 .2.^ m 3rt,035 6,9,3,304 183.09 .54 52 60,05i 10,613,726 176.72 .72 el 78,701 14,051,520 178.54 .82 70 74 14), 206 158.709 24,5J9-,677 168.77 1.23 1,33 76 187,739 31,627,479 168.46 1..50 83 199,764 33,087,488 165.63 1.52 90 217,318 33.073,92 4 165.99 1.60 108 251,351 43,431,130 172.78 1.87 128 277,118 50,457,913 182.06 2.10 Ml 308, 8i3 59,467,453 192.54 2.40 15,) 36), 538 72,313,696 197.82 2,82 190 396,173 77,823,906 196.44 2.94 21') 431,602 84,290,076 195.29 3.0) 222 487,986 95,598,230 195.90 3.40 231 490,428 98,512,968 200.87 3.41 215 538,840 108,4.38,287 201.24 3.61 251^ 622,5-)6 128,6.57,901 206.66 4.21 278 693,870 149,277,504 215.13 4.75 285 694,487 146,729,882 211.27 4.58 289 787,943 169,434,540 215.03 5.18 233 887,016 206,235,202 232.48 6.18 30') 976,025 236,280,401 242.08 6.91 317 980,844 242,619,382 247.35 6.98 336 1,067,031 282,455,791 264.70 7.9C 371 1,18S,202 327,009,452 283.63 9.03 406 1,310,114 392,781,813 299.80 10.62 476 1,466,684 457,675,050 312.04 12.12 517 1,630,846 549,874,358 337.17 14.26 577 1,902,047 650,715,442 312.13 16.45 647 1,992,925 735,046,805 368.82 18.11 689 2,185,832 802,363,609 367.07 19.25 693 2,293,401 831,5,56,902 .376.98 20.20 771 2,35J,864 921,037,304 391.56 21.25 781 2,368,630 911,3.50,255 397.42 20.86 675 2,395,314 866,218,306 361.68 18.69 663 2,400,785 879,897,425 366.50 18.49 639 2,238,707 802,490,298 353.72 16.42 629 2,335,582 819.106,973 .350.71 16.33 629 2,528,749 891,961,142 3.52.73 17.38 629 2,710,354 966,797,081 35<).70 18.42 630 2,876,4.38 1,024,856,787 356.29 19.09 636 3, 01'), 151 1,073,294,955 355.96 19.. 55 6J6 3,071,495 1,095.172,147 356.. 56 19.51 638 3,158,950 1,141,530,578 361.36 19. a9 681 3,418,013 1,235,247,371 361.39 21.05 801 3,838,291 1,361,196,550 .355.41 22.75 819 4,021.523 1,425,230,349 354.40 23.25 921 4,258,893 1,524,844,506 358.03 24.35 1,011 4,533,217 1,623,079,749 358.04 25.29 1,059 4,781.605 1,712,769,026 358.20 26.11 r030 4,830,599 1,785,150,9,57 369.55 26.63 1.024 4,777,687 1,747,961,280 365.86 25.53 1,017 4,875,519 1,810,597.023 371.36 25.88 988 5,065,494 1,907,156,277 376.50 26.68 980 5,201,1:^2 1,939,376,0.35 372.88 26.. 56 979 5,385.746 2,065,631,298 383.54 27.67 987 5,687,818 2,2.30,366,9.54 392.13 29.24 1,002 6.107 083 2,449,547,885 401.10 31.78 1,007 6,.35.s,723 2,597.091,580 408.30 33.45 1,036 6.660,672 2,750,177,290 412.53 .34.89 1,078 7,035,228 2,935,204,845 417.21 36.. 52 1,157 7,305,143 3,060,178.611 418.89 37.52 1,237 7,696,229 3,261,233,119 423.74 39.17 1,319 8,027,192 3, 48?. 137. 198 433.79 41.13 1,415 8,. 588, 811 3.690,078,945 429.64 42.87 AnythinpT tliat nialces eni>ital Idle, or which reduces or destrovs it, must reduce hotli viajfes and the opportunity to earn wapres. It only rquires the effects of a panic tlirouftli ^vhicli we are pnsslnjar. or IhrouRh which we passed in 1893 or 187.^, to show how cloHcly united in a common in- terest we all are In modern society. We are in the same boat, and financial and Imsiness storms wliich aflfect one are certain to aflfect all others.— Hon. Wm. H. Taft, before the Cooper Union, New Yorlc City. PROSPERITY— SAVINGS DEPOSITS. W SAVING BANK DEPOSITS. Deposits and 13eiM>sitors in SavinRS Banks in tli€? Pri«ciiml Countries of the World, compared witli those of the United States. This table, which shows the number of depositoi\s in savings banks in the principal countries of the world, and the average cunount per capita, gives an opportunity to compare the pros- perity of American savings depositors with that of depositors in other counties. It will be noted that the total amount of deposit and the per capita deposit exceed in the United States those of any other country shown in the list, which includes all countries for which statistics of this character are available. The table is an official one prepared by the Bureau of Statistics for publication by the Comptroller of the Currency in his an- nual report for 1908. Depositors, amount of deposits and average deposit in all savings hanks, and average deposit per inhabitant in the principal coun- tries of the world, according to latest available information. [From 1907 Report of the Comptroller of the Currency.] Countries. Austria Belgium (a) Denmark (b) France Germany Hungary (o) Italy (d) Netherlands Norway Russia (e) Finland Sweden United Kingdom. Australasia Canada (f). Cape Colony British India Japan United States (g) All other Total Number of depositors. $5,514. 2,311, 1,323 12,134 17.294, 1,546, 6,545, 1,649, 790, 5,665., 243, 1,941, 12,093, 1,500, 209, 107, 1,115, 12,552, 8,588, 2,C«0, 570 845 044 523 217 629 678 769 307 996 525 655 783 443 563 191 758 050 811 278 $95, 809, ( Deposits. $1,033, 151, 212 898, 2,831, 370, 233, 91, 100, 533, 24, 175, 1,017, 237, 63, 12, 45, 75, 181,961 640,983 900,390 376,625 333,000 944,925 735,421 649,000 250,602 346,000 434^885 917,932 120,458 305,271 741,650 514,706 396,741 966.732 078,945 788,295 $12,106,630,522 Average deposit. $187.32 65.59 160.98 74.03 163.71 239.84 35.71 55.55 126.85 94.13 100.33 90.60 84.10 158.16 293.07 116.75 40.69 6.05 429.64 114.46 $126.36 a. Data for the State-controlled Caisse Gengrale d'Epargne. Includes savings deposits with post-offices. In addition, there are four municipal and five private savings banks, which on December 31, 1904, had 42,279, and on December 31, 1905, 42,171 depositors, and deposits tio the amount of $9,379,623 in 1904, and $9,575,248 in 1905. b. Includes all savings institutions. Number of dep'ositors in savings banks proper, exclusive of branches of ordinary banks, was in 1905, 1,021,- 697; in 1904, 996,615; deposits, $160,621,194 in 1904, and $166,677,241 in 1905. c. Exclusive of owners of savings deposits in commercial banks and savings associations, who numbered in 1905, 499,238, and in 1904, 462,307, with deposits of $144,622,000 in 1904 and $162,948,000 in 1905. d. Exclusive of depositors in the so-called "societa ordinarie di credito" and "societa. cooperative di credito," for which the number of depositors is not stated. The deposits at the end lof 1903 amounted to $85,965,495. e. Preliminary data for all Government savings banks, as published in the Viestnik Finansov. Deposits are exclusive of securities held for depos- itors, the nominal value of which on December 31, 1905, was $115,431,000, and on December 31, 1906, $122,262,000. f. Exclusive of deposits and depositors in the special savings banks, amounting on June 30, 1906, to $27,399,194. The total deposits in all savings banks amounted thus to $89,309,816 in 1906, making the average deposit per inhabitant $13.87. These totals do not include the savings deposits in the chartered banks ("deposits payable after notice or on a fixed day"), which on December 31, 1906, were $398,765,182, and on Decem- ber 31, 1905, $338,411,275. g. Includes Illinjois State banks having savings departments. lilberty and honor do not measnre all that the party has stood for and stands for today. There is another grreat underlying policy \^'hich the Repuhlican party adopted at its birth and has developed since as has none of the great povrers of Christendom. I refer to the Policy of Progress, Tvhich has made onr country the greatest, onr nation the strongest, and onr people the Tvealthiest and happiest of all the peoples of the world.— Hon. Jameia S. Sherman. 02 PROSPERJTY-^NATWNAL BANKS. II ^ ^ ^ s S5" 5a I j|2| i i iSS I— 05 es '-' CO 1^ c5 «o «3 fo CC CO I— * C*5 o> rH ■* o I I I I ! I ! I I SS8 i I ' -K* in lO I I I ! I I §gggg 00 »o eot^ RS8f?c lfll^00- §§< ISS to i/r o S"5 ■^ 0'<4iooeo coe^fH^ooooooc^ak |lOco-tll^ml55o'^^Cl(^^55cocolCr^51s5co'^!>?^lOCo^>rHl2flO I ® rH -^^^ CO lO ■* rH IT) t^ X_lO IC IM l^ lO OS i-l t> 50 00 « lO r-l ^5_0 ■* eg (M co"(N 1-H iM co"(Neo c^om"-* eo i-i (o"!:- co t>r,H oq ■»)<■* lO 'it ^^ «p -^ (M 00 t~- ■ jiMOi-iwoscDoooointftio t^'>H W CO r^ MiUkni \ \ ! I iii! ! ! I ! I I I I Mil I I I I ■ III ; V i 'i. i i ri I I I I ; I 1 i i ri !«M I I r I ! } ! • 14 I I ; II I I I I { ! ! I I I ! »-^m«JI~»OOOSOrH(NCO' OOO^MWWooooSooDOOC ! ! ; I I M I till III! Mill ! ! M ! M M M I '. I t I i I I ! i illi MM! ! M M I I I I I I I I I I i I ; I I I I ! I i I i i I I I I i I I I II I i II t I ■*ifi®r~ooosQi-i5 ^t 0: » •-• «o Oi iM CO CC *^ CO CO 00 '4* I CI -t< -f 1^ 05 so CO O ll^^ I CO CO > O © O Q O & O nooOccio»c5cOGCi CI © "N lO CO Ift I I ^- (N O 1-H cq (N < ri.i-J -wT; -h :§iiiillllii^ rH©-fO l^WlOCO-<*'«li 00 < i©©©©©©©©iC©incomio< I © ic p m o if^ © < t CO 00 S -« (M t2 1^ ( ?q In 5i 33 fM '-JiJ S '-?; S lo S CO © io -n o "in •* eo •»ii'CTr«rs5 i-rt-r-i<'rH"co i-T-* i I ! ; M-iMM ^f^ifH-fit'M i ill/',', > 1 ^^ &• ! § 1 o j 2- s i §S O 1 — % ' •^^ o5 r I' "Sen" ftg; ■js a «3 Mi JO.OOO ,000.000 94 PROSPERITY— BVILDISO ASSOC I AT I ON S-^F A J LURES. BlILDIKG ASSOCIATIONS, TlK-y (tire for )!t7:2M,4MM».000 of Hie Peuplo'M SiiviiiKM.— An lii- rreiiNO of )|(5r>.(NMMM)0 in ISI07 Alone. [From Cincinnati Commercial Tribune, March 1, 1908,] The^ report of Secretary Cellariiis^ of the United States League of Buil'dini^ Associations, now in session at New Orleans, shows that the building- associations of the United States are caring for the enormous number of 728,000,000 dollars of the savers among the people of the United States — the home-builders and home-ownei's of the country. Secretary Cellarius thus tells of the remarkable increase in the holdings of the building associations during 1907: The building and loan associations of the United States have increased approximately $55,000,000 in assets In 3 907. so that they now csjre for $728,000,000 of the people's savings. The members of these associations are largely wage-earners. They have in the aggregate accumulated a vast sum, which has been mainly loaned to members for the purpose of securing their own homes. During the same year the membership increased over 100,000, with Pennsylvania having the largest increase in assets— $10,- 000,000— and Ohio next with an increase of $8,000,000. In only one State, California, was there a decrease in membership, 2,000 falling from the rolls; yet the assets of the associations in that State increased in the sum of of $200,000. Plainly the calamity howler ought to take to the woods in the face of the showing of the building associations of the United States. Deposits of $673,- 000,000 in 1906 rising to deposits of $728,000,000 in 1907 are a most conclusive answer to the pessimists whose only delight is in the determination to see nothing but calamity and to hear noth- ing but its howls. The better part of the showing is in the fact that the depositor in a building association is a home-builder, adding immensely to the wealth of the country and raising the standard of citizenship. Ohio shows up well, magnificently well, in fact, considering the greater population of Pennsylvania, and 1908 will push her further to the front. FAIL,URES. Commercial Failures in the United States, 1880 to 1»07. The table which follows, taken from Dun's Keview, a non- partisan publication, shows the number of commercial failures and the amount of liabilities in each year from 1880 to 1C07. These figures are for the calendar years — the year ending De- cember 31 — and those for 1907 therefore include most of the freat failures which occurred during the recent financial troubles, t will be noted that the total liabilities in 1907 ($197,000,000) \r--ere but about one-half of those of 1893 ($346,000,000), when the population was but about three-fourths that of today, and much lesi* than the annual average during the four Democratic years, 1893, 1894, 1895 and 1896, although the population of the I'nitei^ States was then less than 70.000.000 against tlu' p v i 86,000,000. The liabilities of the failures of 1893 amounted to $346,779,839, when the entire population was about 66,349,000, or an average liability of $5.23 if applied to the entire population. Jn 1907 tho» liabilities were $197,385,225 and the population 85,- 817.293, or a^ average liability of $2.30 per capita in 1907, against ^5.23 per capita in 1893. Principles ar^ more endnriiigr than men, more lastint^; \n factionM. — Hon. James S. Sherman. nstead of makiigr a panic, the national policy of endiuj^ lawlessnes of e.<>rporations in interstate commerce, and ikinjBT away their poorer of issuing, without supervlMion, v« and bonds, wHl produce a changre in their nianaju;-e- and remove one fruitful cause for loss of public con- •e.— Hon. Wm. H. T^ft, to Merchants and Manufacturers' iation, Boston, Mas*. PROSPERITY. 99 Commercial failures and averanf of liabilities, 1880 to 1901. [From Dun's Review, New York.] t otal for ttie Year. Calendar Year. Number of failure^ Number of busivess cou- cerns. Per ct. of fail- ures. 0.63 .71 .82 1.06 1.21 1.16 1.01 .90 1.02 1.04 .98 1.07 .88 123 1.25 1.09 1.31 1.26 1.10 .81 .92 .90 .93 .94 .92 .85 .77 .82 A lllOUUt of liabilities. I $65,752,000 81,135.932 101,547,564 172,874,172 226,-343,427 124,220,321 114,644,119 167,-560,944 123,829,973 148,784.3.37 189,856,964 189,868,638 114,044,167 34G.779 889 172.992,355 173.196.050 225,096,834 154,332,071 130.662,899 90,879,889 1-38,495,673 113,092,376 117,476,769 1.55,444,185 144,202..311 102,676,172 119,201,515 197,385,225 V verage liabilities^. 1880 4,735 5,582 6,738 9,184 10,968 10,6.37 9,834 9,634 10,679 10,882 10,907 12,273 10,344 15,242 13.885 13,197 15,088 13,. 3.51 12,186 9,337 10,774 11,002 11,615 12,069 12,199 11,520 10,682 11,725 746,82.3 781,689 822,256 863,993 904,7,59 919,990 969,841 994,281 1,016,662 1.051,140 1,110,590 1,142,951 1,172,705 1.193 113 1.114.174 1,209.232 1,151,579 1,058,521 1,105,830 1,147,595 1,174,-300 1,219,242 1,253,172 1,281.481 1,320.172 1,356,217 1,. 391,. 587 1,417,077 $13 886 1881 14 530 1882 15 oro 1883 _ 18 8:!3 1884 20 632 1885 - 11 678 1886 11 651 1887 17.302 1888 — 11,595 1889 — 13.672 1890 . 17.^06 1891 1892.. 15.471 11,025 1893* 22,751 1894* 12,458 1895* 13,124 1896* 14,992 1897 1898 11,5.59 10,722 1899 9,733 1900-. 12,854 1901.. 10.279 1902.. 10,114 1903 12,879 ]<)04 11 ,820 1905 8,913 1906 11,15;) 1907 16,834 ^Democratic and low tariff period. WHEAT PRODUCTION AND CONSUMPTION. Wheat Production aiitl Cousiiiiiiitlou of tlie United States and Production of tlie AV4»rld. This table show.s the prodiietiou, ■ export.s, quantity rvtaiiied for consumption, eon.stnn])tion per capita, and farm vahie of wheat in the United States, for a lon*> term of years. The per capita consnmption, a measure of the prosperity of the ])eophs was, it will be observed, larger in 1906 than in any earlier year; the value of the crop per acre in 1905. 1906 and 1907, greater than in many years; the production unusually larg'e. but the exportation much below the annual averuo-e ])rior to 1904, indicating- that the requirements of our own p()))ulation are rapidly approaching- present productive cai>acity and justify- ing the efforts of the present administration to expand the producing ai'ea of the country through irrigation, drainage and the con.servation of natural res(virces. Quantities of wheat produced in the United States and in the world, and of reheat and luheat flour exported and retained for consumption, 1877 to 1907 ; flour reduced to wheat at p/2 hushels to barrel. [From the Statistical Abstract.] Year ending J une m- (a) 1877 1878 1879 1880 1881 1882 1883 1884 Produc- tion. Bushels. 289,356,500 364,196,146 420,122,400 448,756,630 498,-549,868 383,280,090 .504.185,470 421,086,160 Exports of domestic. Bushels. 57,013,936 92. on, 726 150,. 502, 5% 180,301,180 183,321,-514 121,85)2,-389 147,811,316 111,534,182 Domestic retained for con- sumptiou- Q,uaatlty. Bushels. 232,312,514 272.154,5-20 269,619,894 268,4.52,4.50 312,228,354 261,387,701 .356.374,154 309,551,978 far capita con- sump- tion. Value of crop per acre. Bush. ' 5.01 $10.09 1 5.72 14.65 1 5.. 58 10.15 1 5.35 15.27 i 6.09 12.48 1 4.98 12.12 1 6,64 12.02 ' 5.64 10,52 Wor d's production. Avp»-Hge crop. 1,944. 000, (MM) 2.115.000.000 96 PROSPERITY. Quantities of wheat produced — Continued. Year ending June-0- 1885- 18S6. 1887- Produc lion. 1890- 1894. 1895- 1897- 1898_. 1300-. 1901.. 1902-. 1904- . 1905- . 1906-. 1907.. Bushels. 512,765,000 3>7,U2,OflO 457,218,000 458,329,000 415,868,0* 490,560,000 399,262,000 611,780,000 515,949.000 396,131,725 460,267,416 467,102,947 427.684,346 530,149,168 675,148,705 547,303,846 522,229,505- 748,460,218 670,063,008 637,821,835 552,399,517 692,979,489 735,260,970 Exports of domeutlc. Bushels. 132,570,366 94,505,793 153,801,969 119,624,314 88,600,742 109,430,467 106,181,316 225,665,812 191,912,63.5 164,283,129 144,812,718 126,443,968 145.124,972 217.306,004 222,618,420 186.096,762 215,990,073 234,772,515 202,905.508 120,727,613 41,112,910 97.609,007 146,700,425 Domestic retained for con- sumption. Quantity Bushels. 380,194,634 262,516.207 303,413,031 336,703,656 327,267,258 381,129,533 293.080.684 386.114,188 32 4, 036, 36 ■) 231,818,596 315,454,698 340,658,979 282,559.374 312,843,161 452,-530,285 361,207,084 .306,239.432 513,687,703 467,157,410 517.094.222 508,286,607 595,370,482 588,560,515 Per captla Value con- of crop sump- per tion. acre. Bush . 6.77 8.38 8.05 4.57 ■ 5.17 8.54 5.62 8.25 10.. 32 8.98 9.28 5.. 34 6.09 4.59 5.91 12.86 4.89 8.35 3.44 6.16 4.59 6.48 4.85 6.99 3.95 8.97 4.29 10.86 6.09 8.92 4.74 7.17 3.95 7.61 6.50 9.37 5.81 9.14 6.33 8.06 6.15 11.58 7.07 10.83 6.86 10.37 World's production. 2, 434, 000. 000' ( 2,432 2,481 2,. 562, 2,660, 2,562, 2, .506, 2,236, 2,948, 2,783, 2,640, 2,955, 3,090, 3,186, 3,147, 3,317, 3,423, 3.111, 322,000 805,000 913,000 557.000 518,000 .320,000 268,000 246,000 885,000 751.000 975,000 116.000 883,000 627,000 381,000 134,000 059,000 — — — _ ._> "THf' a The production and value per acre relate to the'calendar year precedloffr the fiscal year. Prosperity lias come at home; the national honor and in- terest have been upheld abroad.— From President Roosevelt's speech of acceptance. The price of ivheat is fixed by the lavr of sapply and de- mand, -which is eternal; STold has not made longr crops or short crops, hif^h prices or lo^v prices. — Maj. McKinley to Homestead -worlcinKinen, September 12, 1896. We mnst regard and have an interest in what our neii^li- bors are doing:, and when tvc can assist tliem, we cannot pass by on the other side as the Levite did, l»ut we must talce them up as the Good Samaritan did and bind up tlieir wonnds and prepare to send them on tlieir way rejoicinK.— Hon. Wm. H. Taft. at Cleveland, Ohio. Tlie true ^velfare of the country is indissolu1>ly bound up with tlie -welfare of the farmer and the -wase-worker— of the man ^vho tills the soil, and of the mechanic, the handi- craftsman, the laborer. If -*ve can insure the prosperity of these two classes we need not trouble ourselves about the prosperity of the rest, for that -*vill follOTV as a matter of course. — Vice-President Roosevelt at opeiiiuf^ of Pan-Ameri- can E^xposition, May 20, 1901. In the first place it is said that the policy of the admin- istration has been directed for the last four years aj|,?ninst orsranized capital, and that ''it has thereby frli^i^Iitened in- vestors. I deny it. The course of the administration has been directed against such orje^anized capital as ^^'as vio- latingr the statutes of the United States— and no other. It bad every consive shall make better fabrics and build stronger structures— that in spite of their higher cost in the beginning will be cheaper in the end and ^vill be Tranted by the people in every corner of the earth. So fliat we shall capttire the markets of the world in greater volume without ever sacrificing our home market, the foun- dation of our National wealth and progress.— Hon. James S, Shermap, One vital, dominating fact confronts the Democratic imrty -which no oratory, -which no eloquence, Tvhleh no ilb«-ioric «^n obscure J BRYAN'S NOMINATION MEANS TAFT'S ^IjECTION^New yprlf World. PROSPERITY. 97 Financial, commercial, and industrial conditions in the United States, 1892, 1896, and 1907. Population Interest-bearing debt dolls.. Annual interest charge dolls.. Annual interest per capita cts.. Receipts from customs doJs.. I'reasury receipts, net ordi- nary dolls— Gov't expenditures (a) dolls.. Gold in Treasury dolls.. Gold and gold certificates jn circulation (b) dolls.. Money in circulation, dolls.. Money in circulation, per capita . dolls__ Bank clearings, New Vork--dolls__ Bank clear'gs, total, U. S--dolls.. Loans and discounts, nat'l banks ^-— - dolls.. Savings bank depositors (c) No. ^ dolls-. Savings bank deposits (d). .dolls.. Bank deposits, total dolls.. Industrial life insurance in force , dolls— Total life insurance in force do'ls.. Imports dolls.. Imports, per capita (e) dolls.. Exports dolls- Exports, per capita (f) dolls.. Excess of exports over im- ports dolls.. Imports of mfr's materials- -dolls- Exports of manufactures.. -dolls— Share mfr's form of ex- ports per cent-. Pvxports of meat and dairy products rloMs-. Exports to Asia and Oceania-dolls., Exports to Porto Rico fiolls-. Exports to Hawaii dolls-. P:xport^s to Philippine Isles.-dolls-- Animals on farms, total value dolls-- Horses dolls-- Cattle .. ..dolls- Mules dolls-- Swlne dolls-. Sheep -. dolls.. Sheep, total in U. S No.. Sheep, av. val. per head— .dolls.. Farm products, value- Corn dolls.. Wheat .-do'ls-- Oate dolls-. Hay dolls— Potatoes doDs-- Wool production . lbs-1 Wool dolls- Cotton production. —dolls-. Beet-sugar production tons-. Mineral production dolls-. Coal production tons.. Pig-iron production tons.. Steel rails mfg... tons-- Steel manufactured tons.. Exports of iron and steel— -dolls— Tin plates manufactured lbs.. Tin plates imported Ibs.. Pig tin imported lbs__ Domestic cotton used in mfg bales.. Silk imported for mfg.. lbs.. Hides and skins imported.. .dolls.. Rubber imported for mfg P. O. Dept., receipts of.. Telegraph messages sent. Telephone subscribers (k) No__ Patents issued No__ Failures No.. Failures, liabilities dolls- Original homestead entries.acres.. Railways built miles.. Railways, net earnings dolls.. Railways, dividends paid... dolls.. Railways, employees No.. Railways, wages paid dolls.. Railways, freight carried tons.. Railway passenffers, carried..No— ...Ibs- -dolls.. .No 65,086,000 585,029,3J0 22,893,883 35 177,452,964 354,937,784 345,023,331 114,612,892 549,662,443 .1,601,347,187 24.56 36,279,905,236 60,883,572,438 2,127,757,191 4,781,605 70,254,000 847,363,890 34,387,266 49 160,021,752 326,970,200 352,179,446 102,494,781 497,103,183 1,506,434,966 21.41 29,350,894,884 51,935,651.733 1,971,642,012 5,065,494 1,758,329,018 1,935,466,468 4,664,93i,251 4,945,124,424 583,527,016 4,897,731,359 827,402,462 12.50 1,030,278,148 15.61 202,875,686 188,317,595 183,076,682 18.02 141,240,834 35,163,117 2,856,003 3,781,628 60.914 2,461,7.55,698 1,007,593,636 922,127,287 174,882,070 211,031,415 116,121,290 ' 44,938,365 2.60 642,146,630 322,111,881 209,253,611 490,427,798 V)3,567.520 294,000,000 79,075,777 313,000,000 5,000 622,543,381 160,115,242 9,157,000 1,298,936 4,927,581 28,800,930 42,119,192 422,176,202 43,908,652 2,856,000 8,834,049 26,850,218 39,976,205 70,930,476 71,722,589 216,017 23,559 10,344 114,044,167 16,808,791 4,441 352,817,406 93,862,412 821,415 440.318.900 730,645,011 575,769,678 5,943,067,492 779,724,674 10.81 882,606,938 12.29 102,882,264 197,616, 852 258,008,885 20.89 133,377,549 42,827,258 2,102,094 3,985,707 162,446 1,727,926,084 500,140,186 872,883,961 103,204,457 186,529,745 65,167,735 38,298,783 1.70 491,006,967 310,602,539 132,485,033 388,145,614 72,182,350 272,474,708 32,529,536 269,116,000 29,000 640,544,221 171,416.393 8,623,129 1,300,325 5,281,689 41,160,877 359,209,798 385,138,983 49,952.957 2, .505.000 9,363,987 30,520,177 36,774,460 82,499,208 72.221,896 281,695 •23,273 15,088 226,096,834 4,830,915 1,654 332,766,979 81,528,154 m785,034 m445, 508,261 773,868,716 685.120.756 85,817.000 894.834.280 21,628,914 25 332,233,363 663,140,334 578,903,748 304,619,431 bl. 161, 769, 607 b2, 772, 956, 455 b32.22 95,315.421,238 154,662,515,258 4,631,143,692 8,588,811 3,495,410,087 13,099,635,348 2,453,616,207 13,706,810,284 1,434,421,425 16.55 1,880,851,078 21.60 446,429,653 477,027,174 740.123,451 39.92 202,302,508 133,889,857 g25, 686,285 hl4.435.725 8,661.424 4,423,697,853 1,846,578,412 1,527,0.54,378 428,063,613 417,791.321 204,210,129 53,240,282 3.95 554. 334, 743, 183, 298. 78. 578, 181, jl,293, 142, ,901,000 ,4.37,000 ,.568,000 ,507.000 ,880,000 ,294,750 ,263,165 ,000,000 432,000 jl, 902, 517, 565 j 369. 783, 284 25.781,361 j3, 977, 872 ,398,000 ,530,871 ,738.880 ,529,406 96.013.005 5,005,000 18,748,904 83,206,545 76,963,838 183,585,006 98,480,097 3,035,533 36.620 11,725 197,385.225 14,754, 5a5 j5,294 J790,187,712 1253,340,925 j 1,521,355 jn900,801,653 jl, 610,099, 829 3815,744, lis 98 PROSPERITY, Financial^ commercial, and industrial conditions in the United States, 1892, 1896, and 1907.— Continued. ITEMS. 1892. 1896. 1907. Railways, freijrht receipts, ton per mile... cents— 94 / 82 77 Railways sold under fore- closure miles.. 1,922 13,730 114 Freight passing Sault Ste. Marie canals tons.. 10,647,203 17.249.418 44,087,974 WHOLESALE PRICES (ANNUAL AVERAGE). Dollars. " Dollars. Dollars. Wheat per bush- 0.7876 0.6413 0.9073 Corn per bush.. .4500 .2580 .5280 Oats per bush.. .3042 4.3466 .1801 3.79.57 .4501 Flour, patent — _. .barrel.. 4.87.55 Hogs, heavy 100 lbs._ 5.1550 3.3579 6.0800 Bacon, short clear sides---pound._ .0787 .0494 .0954 Steers, choice to extra 100 lbs.. 6.0909 4.5957 6.-5442 IJeef, fresh native sides pound.. .0762 .0698 .0384 Coffee, Rio No. 7 pound.. .1430 .1233 .0658 Sugar, granulated pound.. .04354 .04532 .04651 Tea, Formosa, fine. pound.. .3008 .2.583 .2300 Men's shoes, vici kid ...pair.. 2.5000 2.2500 2.500 Men's shoes, brogan pair.. 1.0375 .9938 1.2729 Serge suitings yard.. .9100 .6143 1.05 Women's dress goods, cash- mere yard.. .3724 .1960 .3920 Wool, Ohio, and XX, scoured pound-. .6119 .3940 .7181 Coal, anthracite, stove ton.. 4.1532 3.7942 4.8215 Co-U, bituminous, at mine_-.ton_. .9000 .9000 1.5375 Petroleum, refined gallon.. .0794 .1039 .1346 Pig iron, foundry No. 1 ton.. 15.7492 12.9550 23.8950 Wire nails 100 Ibs- 2.1896 2.9250 2.1167 Cut nails 100 lbs.. 1.7583 2.7125 2.1625 Tin plates (o) 100 lbs.. 5.3050 3.4354 4.0900 Steel rails ton.. 30.0000 28.0000 28.0000 Steel billets ton.. 23.6308 18.8333 29.2533 Rope, manila, % Inch pound.. .1148 .0664 .1290 a "Net ordinary expenses" Include expenditures for War, Navy, Indians, pensions, payments for interest, and "Miscellaneous," but do not include pay- ments for premiums, principal of public debt, or expenditures for postal service paid from revenues thereof. b As the result of special investigation by the Director'of the Mint a reduc- tion of $135,000,000 was made in the estimate of gold coin in circulation on July 1, 1907, as compared with the basis of previous years. c Includes depositors in Illinois State banks having savings departments, for number of which see report of the Comptroller of the Currency. d Exclusive of Illinois State banks having savings departments. e Based on Imports for consumption only. f Based on domestic exports only. g Shipments to Porto Rico. h Shipments to Hawaii. i Includes corn, wheat, oats, barley, rye, buckwheat, potatoes, and hay. .1 1906. k Includes statistics of American Telephone and Telegraph Company and operating companies associated with it. 1 1893. m 1895. n Excludes compensation paid by Southern Pacific Company, not reported. Corresponding amount ^aid in 1905 was $27,530,117. o 1892 figures are for imported tin; those of subsequent years, ol domestic manufacture. The policy- of Waslilnarton la tlie policy of the Repuhllcan party. — Senator Oullom. Linxnries to the Earopean laborer are necessities to the American. — Senator Frye, in the American Economist. The people have no patience Trith those Trho Tvonld violate the pligrhted faith of the nation and stamp its ohligrations ^vith dishonor.— Hon. Wm. McKlnley to delci^ation of farmers, at Canton, September 22, 1896. The business men of onr community as a -whole are honest and their methods are sound. The President has never said otherwise. Indeed, it is chieHy in the interest of the great body of honest business men that he has naade his flg^ht for laTTfnl business methods.— Hon. Wm. H. Taft, to Mer- chants and Manafacturers' Aaaociation, Boston, Mass. THE TARIFF. Protection to AnnM-ican labor aiul iiulnstry was one of the leading- motives which led to the Constitution — in fa-'t, said Webster, "Without that provision in the Constitution it never could have been adopted." It is not to be wondered at then that the first revenue law placed upon our statute books provided for the encouragenieiit and protection of maauiactui-ers. .Vvniie the list of articles enumerated was small as compared to f 2 extended schedule of to-day, yet the law was found to be most effective in inaugurating an industrial policy and an industrial advance, which hiis ooiiiiaued with more or less foroe uiul with comparatively few interruptions to the present day. This first tariff law continued in force practically without material change until 1812, when it was enacted: "That an additional duty of 100 per cent upon the permanent duties now imposed by law ujjon goods, wares, and merchandise imported into the United Statt^s shall be levied and collected upon all goods, wares, and merchandise which shall, from and alter the passing of this act, be imported into the United States from any foreign port or place." 'And it was further enacted: '■''''"That this act shall continue in force so long as the United States shall be engaged in war with Great Britain and until the expiration of one year after the conclusion of peace, and no longer: Provided, hoiccvcr, That the additional duties laid by this act shall be collected on all such goods, wares, and mei'chan- dise as shall have been previously imported." This was the only comjjlete revision of the tariff that has taken place in our history on account of war. The increase in tariff rates, coupled with the prohibitions of non-intercourse, threw us on our resources and residted in the establishment of many new industries, which, in spite of the ravages of war, brought immense increase of national wealth and business a^*- tivity. ,.*'' ' ■■ " ■'• ■ '- In a special message to Congress, February^ 20, -'iSld, ^jP't'e^- dent Madison asked — " . -^^•'•' iun >. I'rj "Deliberate consideration of the means to preserve and pro- mote the manufactures wJiich have sprung into existence and at- tained an unparalleled maturity throughout the United States during the period of the European wars." « The law of 1812 terminated on February 17, 1816, by its own provision, one year after the ratification of the Treaty of Ghent. Fearing that the duties existing before the war would not afford sufficient protection to the newly estiiblished indus- tries, it was the determination of the leaders of the time that those duties should be increased in the new law of 1816; and the intention was to make the tariff a thoroughly protective one, yet it proved a failure, as the framers of that tariff had not anticipated the iiiundation of goods with which our country would be flooded from abroad and particularly from Eijgland because of the stocks that had accumulated there for several years. We. therefore, experienced our first great industrial de- pression, which lasted until 1824, when the first thoroughly pro- tective tariff law was enacted, by which, in the words of the late President McKinley : "The nation was quickened into new life, and the entire country imder the tariff, moved on to higher triumphs in industrial progress, and to h, higher and bett^ destiny for all of its people." In 1828 still higher duties were substituted. The operation of the law bi-ought great dissatis- faction in the South, resulting in Nullification in Soutli Carolina, which, however, was quickly suppressed by President Jack- son. The agitation against the, high duties of the 1828 tariff led to the compromise tariff of 1832, which provided for n. gradual reduction every two years until only 20 per cent should remain. Long before the final reduction, however, the panic of 1837 came upon the country, bringing disaster on every h-ind and the greatest business depression which the country had up to that time known. " .' ': ' .'ji'ty-hj: ., i.v 99 100 THE T. Mi IFF. 'I'he election of the ^^ h.gs in 1840 was followed by the tarilf of 1842 — an adecjuate protection measure, and a revival of industry and prosperity innnediately followed. But the Demo- crats aj^ain came into power in 1844, and under the leadership of the Seereary of the Treasury, Jiobert J. Walker, of Missis- sippi, a new law was framed in 1846 which remained in force until 1857, when the duties were further reduced and whea a lother severe panic followed with accompanying- distress to all j^hases of commerce and industry. This period from 1846 to 1860 was accompanied by the nearest approach to free trade in our history, and while the country enjoyed more or less progress and periods of prosperity in certain industrial lines, owing largely to demands abroad for our agriculaural products, due to foreign wars and famines, yet in spite of these favorable conditions, the so-called Walker Tariff and tariff of 1857 brought widespread ruin to many of our industries and checked our industrial progress. When the Republicans came into power in 1860, they were confronted with a country nearly bankrupt, with an em.pty Treasury, with indu^ries prostrated, with expenditures exceed- ing receipts, and with an unfavorable balance of trade. Mr. Morrill, of Vermont, then Chairman of the Ways and Means Committee, framed a bill on jjrotective tariff lines, which passed the House of Ilepresentatives on May 11, 1860, and the Senate in the early part of 1861^ being signed by President Buchanan on March 2, 1861. It was really the first measure of any kind enacted by the Republican party, and since that law was placed on the statute books the Republican party has persistently and consistently advocated and enacted tariff laws which during their operation have not only afforded sufficient revenue, but have given ample protection to American labor and industry against the competition of cheaper labor abroad. This first law, due to the wisdom of Republican leaders, was in no way intended to be a war measure, and after the war broke out and during four years of its continuance, it was repeatedly amended to meet existing conditions. After the close of the war and during the years which followed numerous changes were made, reducing many of the high rates made necessary as revenue producers during the war period, but the Republican principle of protection was refined so long as the legislative and exec- utive power remained in the hands of the Republican party. The McKinley law enacted in 1890 was accepted by all Republicans and Protectionists as the best tariff law that had ever been framed up to that time. Under its operation the country was at the height of its prosperity and progress in 1892, when suddenly to the consternation of the industrial world a Democratic President was elected, and Avitli him a Democi*atic Senate and House of Repi-esentatives. Anticipating the enact- ment of a tariff law largely for revenue only, a linanciaj arid industrial panic came over the country, which continued until it was arrested by the enactment of the so-called Dingley Tariff in 1897. Carrying out their threat, the Democrats framed and passed a low tariff bill in 1894, which became a law without the signature of the President and remained in force until July 24, 1897. Since 1897 to the present time the Dingley law has been in operation, and under it the United States has shown a progress and prosperity never before known in the history of civilization. On other pages will be found detailed tables showing the changes from year to year in the various phases of our industrial life, in our foreign trade and domestic production, and in the state of the Treasury, and these tables will vindicate to the very last degree the wisdom of the Republican party in framing what has been without question as nearly perfect a tariff law as it was possible to frame to meet equitably the needs of all sec- tions of the country, all classes of people, and all diversified industries. To show compactly what progress has been made imder the Dingley law tlie following tabulation is given. The year 1896 is taken as the last full year of the Cleveland Free Trade Administration, and 1907 is taken as the last full year for which the figures are available. THE TAHjFF. Itl Conditions in 1907 compatM witti tiiose of 1896. Population. Population Money in circulation Bank clearings — . National banks deposits - Savings banks deposits.. State banks deposits Receipts of the Gov't (net ordinary) Expenditures Imports Exports Exports of manufactures Farm products Value of farm animals Corn (farm values) Wheat - Oats _ Cotton Hay Goal mined tons— Pig iron manufactured. tons.. Steel tons.. Tin plate manufactured pounds. _ Domestic cotton consumed.. .bales.. Sugar consumed tons.. Railways ..miles.. Freight carried by railways.. -tons.. Post-offlce receipts .._ , ■. .; > i,. -■ - ,..' ,. r . Increase . f.m^. : 'v^ ,1997. . . per cent. 70,254,000 85,817,239 22.15 $1,506,434,960 $2,772,956,455 84.07 $51,935,651,733 $154,662,515,258 197.80 $1,668,413,508 $4,322,880,141 159.10 $1,935,466,468 $3,4.95,410,087 80.59 $395,659,914 $3,068,649,860 341.11 $326,976,200 $683,140,334 102.81 $352,179,446 $-)78,903,748 64.38 $779,724,674 ill, 431, 421, 425 83.97 $882,606,938 S 1,880,851,078 113.10 $258,008,885 $740,123,451 186.86 a$ 4, 250, 000, 000 $7,500,000,000 76.38 $1,727,926,084 b$4, 331, 230, 000 150.66 $191,006,967 $1,336,901,000 172.28 $310,602,539 $551,437,000 78.50 $132,485,033 $334,568,000 152.53 $291,811,564 C$721,647,237 147.30 $388,145,614 $743,507,000 91.55 171,416,390 C369,783,28t 115.72 8,623,127 25,781,361 198.88 5,281,689 C23,398,136 343.00 359,209,798 Cl, 293, 738, 880 260.18 2,505,000 5,005,000 99.80 1,960,086 2,993,978 52.75 182,769 c222,635 21.81 773,868,716 1,610,099,829 108.06 $82,499,208 $183,585,006 122.58 a Department of Agriculture estimate for 1897. b 1908. c 1906. To show in brief the important chang-es and revisions of the tariff during" our history and their result, the following" sum- mary is given, beginning with the tariff of 1813, the first im- portant revision following the first law of 1789. Important tariff revisions. 'si Reason for revision. Time con- sumed.* Nature of change. Result. 1812 War No debate.. 39 days Rates doubled. Moderate protec- 181« To provide new rates after Disastrou**, repeal of war duties. tion. 1824 Ruinous condition of indus- tries. 4^^ months. Substantial in- crease. Beneficial. 1828 To increase prosperity .... 4 months . . Further increase. Do. 1832 >jnciliation 6 months . . Decrease ....Do Injurious. Disastrous. 188S Compromise to save the Union. 1842 To save our industries . . . 5 months.. Increase Beneficial. 1846 To satisfy the Southern free traders. 31^ months. Free trade and ad valorem duties. Ruinous. 1857 To decrease the revenue and still further satisfy the South 6 months . . Further decrease. Bankruptcy. 1861 First Republican tariff for 11 months. Increase Beneficial. 1861 revenue and protection. 1862 1863 1864 To meet requirements of Passed General increase.. Do. war. promptly. 1865 1867 To help wool and woolen in- dustries. 7 months. . Upward changes. Do. 1870 To establish new industries, especially iron and steel. 4 months . . $28 per ton on steel rails. Do. 1872 To conciliate "reformers.". 3 months... 10 per cent re- duction. Injurious. 1875 To correct act of 1872 1 month . . . Repeal of 10 per cent reduction. Beneficial. 1888 To conciliate revisionists.. 2 months. .. Reduction and increased free list Injurious. 1890 To meet existing conditions. 5^ months. Increase and spe- cific rates. Beneficial. 1894 To try free trade 8 months. .. Large reduction, free wool, etc.. Ruinous. 1887 To provide revenue and to protect our failing indus- trieg. 5 months. .. Substantial in- crease. Beneficial. • Thle la the time of actual debate and passage, exclusive of time spent la agitation, hearings, and preparation. 102 THE TARIFF- The teneti^ of the Demoiirdtic party being to the effect that ;i turirt' sh(j;i'l^ „be fyr revenue on]y^ while many of the leading- liemo>^!j'^t^ ,adv(^;ace , absctliite j'fiVe trade, it is not dinicult to draw the line between Iho' tw'T) ivjlvtios and foretell what would be the residt of a chiiii^t' in our system, which has Ix'en so snccessful, so thoroughly tried, and so fully vindicated. Every prominent industrial eoantry on earth except one has resorted to the [)rott>ction of tlieir laboi- and industries, and it is thought that within a few yeai's even (jreat Britain, the only free trade country on earth of any importance, will change her fiscal policy and again adopt the system of protection. It would be folly then for the linited States to abandon a system under vyhich she has thrived to an unparalleled degree and adopt a system discarded by practically every other nation and com- petitor in the world's markets. , IVrhaps the most persistent complaint matie against the pro- tective tariff is the cry that the tariff is the "Mother of IVusts," to use the careless words of a departed monopolist ;,■ Trusts, however, are not a j)roduct confined to the United States or to protective countries, as Free Trade England is (^vered with them from one end of the country to the other ; in fact, they were in force there long before they were in the United States. There may be combinations of capital or labor and associations of corporations and communities of interests that, are for the best interest of all concerned, and there may be those which are inimical to the welfare of a part of the people and which give advantage to another part. The question must be studied and considered and handled entirely apart from the tariff. 'Kegarding the charge that under our protective system our manufacturers are selling goods abroad cheaper than at home, it 'may be said that this universal principle of business, of pro- duction, and markets, is indulged in to a far less degree in the United States than abroad, and at no time to the injury of the American laborer. We also sell many things abroad at a larger price than we do at home. We sell things according to the markets, according to prices, according to supply and de- mand, according to the universal principle of competition, bnt always to the advantage of the American laborer, who reaps a hig;her reward for his labor than can be found elsewhere on the fate of the earth. While it is possible that a fraction of 1 per cent of our goods sold abroad now may be at a price less than at home, it can be stated without fear of successful contradic- tion, that under free trade we would lose our splendid home market and be obliged to seek foreign markets in competition with the cheap labor of the world, withoiit profit to our man- ufacturers or suitable wages to our workmen. The export discount bugbear does not any longer deceive the American laborer, for the American voter and the American workingman prefers to see our factories running 12 months a year instead of being shut down for two or three months, and a stock of surplus goods piled up in warehouse. These two principal objections that the Demoernts make to the operation of our protective sj'stem, viz, that it fosters trusts and enables us to maintain profital)le prices at home, have been shattered time and time again. Opposed to them are the many favorable and snccessful results which have come to our great country during the past half century, and particularly during the last/ decade under the operation of a fiscal system which limits the importatio7i of competitive products to displace the goods that should be manufactured by our own people. (^.f the many satisfactory reasons for maintaining a pro- tective tariff, the greatest of course will be that of the high wag^ji, in soured to the American workingman. Tables showing the wages of labor in the United States and other countries are published on another page of this volume, though these are . scarcely required since there is not an intelligent man living to-day who does not know that the American workman gets two and three times, and even quadruple the wages of low^ tariff countries. There is no man but who knows that tjtie- standard of living of the American laborer is higher than in any other country, that he not only gets more money in THE TARIFF, 1789 TO 1908. WS wag-es, b\it far more comforts at home, that his family is better housed, better fed, better clothed, better educated, enjoy;-} more of the conveniences and comforts and luxuries of life than is ever dreamed of by the average laborer of Europe. So lonfy as the Eepublican party remains in power there will be no abandon- ment of an industrial system made possible by tarift" law that will maintain this standard of living to the American workmen. Another reason why we should continue our tariff on pro- tective lines is that it gives as a surplus in the Treasxiry. Under the operation of the Dingley law, since the Spanish war our re- ceipts have exceeded oi.r expenditures by nearly $3000,000,000. It is possible that a deficit may come for a single year or two. due to a temporary depression in business or to extraordinary expen- ditures, but this wili undoubtedly adjust itself and with a large surplus for just such an emergency, there need be no alarm, be- cause in a single year or even a two year period the expenditures may exceed ot:r receipts. Our government receipts consist almost wholly of customs duties and the so-called internal revenue, and this internal revenue must depend largely upon the prosperity of the petiple. upon their purchasing power; and being derived al- most wholly from a tax upon luxuries, it must depend almost as wholly upon a surplus wage fund maintained over the expendi- tures for the necessaries of life. The internal revenue then is most direciiv associated with the tariff, for the reason that if duties are lowered and foreign goods are allowed to come into the country, displacing American products and miaking idle Ameri- can workingmen, the internal revenue will immediately fall off in proportion. As regards the claim which the Democrats and free traders advance, that a lowering of duties will result in increased importations and increased revenue, the opposite has always been shown to be the result. Although for a time the purchase of foreign goods might increase, yet when the people become impoverished from lack of work and lack of wages, their purchasing power is reduced, no matter how cheap the articles may l)e. Protection then insures adequate revenue, without resorting to direct taxation, which has always been ob- noxious to the American people, and which will not be resorted to unless to meet the exigencies of war. Another argument which the Free Traders and Democrats are delighted to indulge in has been that if we do not buy we cannot sell. In the eleven years of the Dingley tariff our sales abroad have practically doubled and we are to-day in the first rank as an exporting nation, and during this time our favoi'able balance of trade has exceeded four billion dol- lars. These foreign markets which we have been gaining against the competition of the great industrial nations of the earth we have gained without sacrificing any portion whatever of our splendid home market, which is the envy of the civilized wor'al. The tariff planks of the Republican and Democratic platforms since 1856 are printed on another page of this volume, as shown by the index. Following these various changes the general statement can he made that whenever in our history the tariff has been reduced in whole or in part, a business de])ression has followed, and in many cases most severe commercial and industrial panics. The general statement can also be made that in every instance where the tariff has been increased, or a higher duty placed upon any article, prosperity has follov/ed in general throughout the coun- tr3\ and the particular article or class of articles to which pro- tection was given or upon which the protection was increased shoAved a most substantial advancement. Besides the general re- vision shown in the preceding table there have been at various times changes in our tariff schedules, not affecting the entire list of articles. The various tariff laws are shown in detail in the following table: i Our Prineipnl Tarill" Laws. Date of such act. Character of the bill and other remarks. 1789, July 4. ... Specific and ad valoi'em rates, latter from 5 to 15 per cent. 1790, August 10.. Specific and ad valorem rate's, latter from 3 to 15^ per cent. 104 THE TARIFF, 1789 TO 1908, Date of such act. Obaracter of the bill and other remarki. 1791, March 3... .This act only affected "spirits" paying specific duties. 1792, May 2 Specific and ad valorem rates, latter from 7i/^ to 15 per cent. 1794, June 7 Specific and ad valorem rates, latter from 10 to 20 per cent. 1795, January 29.This act affected but few articles paying spe- cific and ad valorem rates. 1797, March 3... This act affected but few articles paying spe- cific and ad valorem rates. 1797, July 8 This act only affected salt paying a specific duty. 1800, May 13 This act affected but few articles paying spe- cific and ad valorem rates. 1804, March 26.. This act, commonly called "Mediterranean fund," imposing an additional duty of 2^ per cent in addition to the duties now imposed by law. 1804, March 27.. This act affected but few articles paying spe- cific rates. 1812, July 1 This act imposed DOUBLE DUTIES, known as WAR DUTIES. 1813, July 29... .This act only affected salt paying a specific duty. 1816, February S.This act continued the double duties to 30th of June, 1817. 1816, April 27. ..Specific minimum and ad valorem rates, latter from 71/^ to 30 per cent. 1818, April 20... This act affected but few articles paying spe- cific rates. 1819, March 3... This act only affected "wines" paying specific rates. 1824, May 22 .... Specific, minimum, compound, and ad valorem, latter from 12 to 50 per cent, the first really Protective tariff. Eesults were most beneficial. 1828, May 19 . . . Known as the Tariff of Abominations. Spe- fic, minimum, compound and ad valorem, latter from 20 to 50 per cent. 1828, May 24 This act only affected "wines" paying specific rates. 1830, May 20.... This act only affected "coffee, tea, and cocoa," paying specific rates, and reducing the rates. 1830, May 29 This act only affected "molasses" paying spe- cific rates. 1830, May ft9 This act only affected "salt" paying specific rates. 1832, July 13 This act only affected "wines of France" paying specific rates. 1832, July 14. . ..Specific, minimum, compound, and ad valorem, the latter from 5 to 50 per cent. 1833, March 2 ... Compromise act — looking to a reduction of du- ties to 20 per cent. 1841, Sept. 11... Specific and ad valorem, latter from 12i/^ to 20 per cent. 1842, August 30. Specific, minimum, compound, and ad valorem, the latter from 1 to 50 per cent. 1846, July 30. . .The rates of duty imposed by this act were ex- clusively ad valorem, and arranged by schedules. 1857, March 3 . . A further reduction of , rates which were ex- clusivelj'^ ad valorem, arranged by sched- ules. 1861, March 2... Went into effect April 12, 1861. Intended to raise the necessary revenue for the Gov- ernment expenditures and afford Protec- tion to our labor and industries. 1861, August 5... First of the war tariffs, large increase in duties. 1861, Dec. 24.... Duties increased on sugar, tea, and coffee. THE TARIFF, 1789 TO 1908. 108 Bills changing and generally increasing duties. Date of such act. Character of the bill and other 1862, July 14 Went into effect August 2, 1862. Further in- crease of rates. 1863, March 3; 1864, April 20, June 30; 1865, March 5; 1866, March 15, July 28 1867, March 2...Eates increased on wool and woolens, giving great benefit to those industries. 1870, ITuly 14, December 20.. General changes. Free list largely reduced. Duty of $28 per ton on steel rails. 1872, May 1 Tea and coffee made free. 1872, June 6 Went into effect August 1, 1872. Reduction of 10 per cent. Increased free list. 1875, February S.Iievised statute, with slight and unimportant changes. 1874, June 22 Known as the "Little Tariff Bill." General changes. 1875, March 3. . . Rates increased on sugar. Repeal of the 10 per cent reduction of Act of June 6, 1872. 1879, July 1.... Quinine made free. 1880, July 14... A few unimportant changes. 1882, May 6 and December 3... Repeals discriminating duty. i|.883, March 3... Went into effect July 1, 1883. Known as the Tariff Commission Bill. General revision, reduction and increased free list. Severe blow to wool industry. 1890, October l.Went into effect October 6. 1890. Known as the McKinley Bill. Changes from ad val- orem to specific rates. Enlarged free list. Sugar made free, a bounty being substi- tuted. Reciprocity law. 1894, August 27. Known as the Gorman-Wilson Bill. Became a law without the President's signature. General reduction of duties. Wool put on free list. Results, both anticipatory and actual, were disastrous to all industry and labor. 1897, July 24 . . . Known as the Dingley Law and still in op- eration unchanged. The most perfect and successful tariff law ever enacted. Has brought unprecedented prosperity. It will be seen from the above table that the present law has been in operation unchanged longer than any other tariff law in our history, and while many favor continuing the law unchanged for the present, still there is such a general demand for re-adjustment of schedules to meet changed conditions in our industrial world that it is conceded on all sides that gen- eral revision will be made in the near future. In fact, antici- pating such revision both Houses of Congress have asked and received authority to secure information looking to the prepar- ation of a new law. In the Senate, on May 16, Mr, Aldrich, from the Committee on Finance, reported the following resolution, which was con- sidered by unanimous consent and agreed to : "Resolved, That the Committee on Finance is authorized, in connection with investigations heretofore ordered by the Senate, with the view of promptly securing the information necessary for an in- telligent revision of the customs laws of the United States, to call to their assistance experts in the Executive Depart- ments of the Government and to employ such other assistants as they shall require ; and they are especially directed to report what further legislation is necessary to secure equitable treat- ment for the agricultural and other products of the United States in foreign countries ; and they shall also, in the consider- ation of changes of rates, secure proof of the relative cost of pro- duction in this and in principal competing foreign countries of 106 TEE TARIFF— ^REVISION. the various articles affected by the tariff upon which changes in rates of duty are desirable." In the House, on May 16, Mr. Payne, from the Committee on Ways and Means, moTed the passage of the following tarill" resolution: "Itesolved, That the Committee on Ways and Means is authorized to sit during the recess of Congress ajid to gather such information, through CJovernment agents or otherwise, as to it may seem fit looking toward the preparation of a bill for the revision of the tariff ; and said committee is authorized to purchase such books and to have such printing and binding done as it shall require, and, in addition to requiring the atten- dance of the eonnnittee stenographers, is authorized to employ an additional steuogi'apher, and to incur such other expenses as may be deemed necessary by said committee; and all the expenses of said committee shall be paid out of the contingent fund of the House on the usual vouchers, approved as now pro- vided by law." The i-esolution was agreed to by a strict party vote of 154 yeas to 92 nays. The platform adopted at Chicago by the National llepublican Convention and the pledge made in the tariff plank will be faithfully kept by those selected to make our laws, in the next session of the 60th Congress or in the fii'st session of the 61st Congress ; but in the light of history and with the experience we have had for 120 years, and the record of the Republican party on this subject, there can be no doubt that the new tariff will be a measure fully protective in principle and framed with a view to meet the requirements on an equitable basis of every section, every class, and every industi-y. Canse of the Growth of Protection Sentiment at Home and A»>i*oa«l. The primary ide«C in levying a tax upon merchandise entering a community or State was to require persons from abroad trad- ing in that coni..ninity to bear their proper share in th^ public expenditures. The tranquillity and order of the community, and hence its commercial possibilities, were maintained by the gov- ernment, for whose support the local producers and merchants were taxed, and it was held that merchants from abroad desir- ing to enjoy the privilege of trading in that community should contribute their proper share to the maintenance of the govern- ment, which assured commercial privileges, and that they should contribute a relatively lai'ger percentage of the valu'^ of the merchandise sold than was required of the local dealer because the foreign merchant carried away with, him his profits, while the domestic producer or dealer expended his profits in the home commimity in the support of his family or in the employment of other members of the community. Hence the tariff — a tax upon merchandise entering a community from abroad. Dangler from Ontslde Competition Constantly Increasini?. Originally the danger to domestic industries from foreign competition was much less than at the present time. Merchan- dise brought into any country from abroad must first bear the cost of transportation, and in times when the cost of transpor- tation was great, and when goods were necessarily transported by animal power and by sailing vessels only, this high cost of carriage was of itself a protection to the domestic producer in any country. True, the producer of merchandise just across the border line of a country had an enormous advantage c ver the producer a thousand or five thousand miles distant, but as only a small proportjon of the producers were located near to the border line such countries did not find it necessary to establish high tariffs to protect their own producers or manufacturers. The distance which foreign goods must be carried and the cost of transportation over thr» distance alone serve to create a protective wall for the domestic producer. In late years these conditions of distance and transportation have absolutely changed. The railroad and the modern steamship have reduced the cost of transportation compared with that in the early part or even in the middle of the century just ended ; while the tele- graph and the telephone have annihilated distance and time. TEE TARIFF. 107 Merchandise from the interior of Europe, ordered by telephone, telegraph, and cable, transported from its place of production by trolley road, canalized rivers, or boats operated by steam or electricity, or by railway to the Atlantic, and thence by great steamships, built to carry hundreds of carloads at a single voyage, across the ocean, and again transported to the interior of the United States by the cheapest land transportation ever known to man, can be placed at the door of the consumer in the Mississippi Valley for a very small percentage of the cost of transporting the same at the middle of the last century. Cheap Freights HaT^e Destroyed Natural Protection. As a result the protection which distance and the cost of trans- portation afforded to the local producer has disappeared, and with- out a protective tariff, established by the Government, he has as his direct competitor the low-priced labor of any and every part of the world. The cheap labor of the densely populated countries of Europe, the 140 million low-priced workers of Eussia, the 300 million people of India, whose average wage is biit a few cents per day, and the 400 million workers of China are to day as much the competitors of the workman of the United States as though they were located but just across the border. Modern methods of transportation and communication have brought these great masses of producers to our very doors, and without the protection which the tariff affords would place that cheap labor in as close competition with our own as it would hare been a half century ago if located but a hundred miles away. As an example of the reduction in cost of transportation may be cited the fact that the annual average freight rate on wheat from Chicago to Liverpool, by the cheapest method of trans- portation, in 1873 was 40 cents per bushel and in 1903 8 cents per bushel, or but one-fifth that of only 30 years earlier. Com- paring conditions now with those of the early part of the last century the reduction is still greater, and the cost of transporta- tion at the present time may safely be said to be less than one- tenth of that then existing. An illustration of the reduction in cost of transportation through modern methods is found in the fact that the census of 1880 showed that the railways could transport a ton of wheat for a given distance as cheaply as a single bushel could be transported the same distance by horse power, and railway rates have fallen practically one-half since that time. That high authority the Encyclopedia Pritannica states in its 1903 edition that the mechanic in Liverp ol may now pay with o)ie day's wages the entire cost of transporting a year's supply o/ hread and meat for one man from Vhlcagt to that city. These facts illustrate how completely modern methods have destroyed the protection ^vhich the local producer formerly had against foreign competitors, and explain the reason why modern governments have found it necessary, one by one, to adopt the protective system, imtil now many men in the most ardent and chief remaining supporter of the nonprotective system, the United Kingdom, are seriously discussing the adoption of a protective tariff. This gradual destruction of the natiiral pro- tection formerly afforded by distance and cost of transporta- tion accounts for the fact that it has been found necessary to maintain the protective tariff on the various industries as they have developed, and that this necessity for maintaining protec- tion for those indnsti-ies has meantime been recognized by all other leading manufacturing countries of the worl 1 whose in- dustries were developed even before those of the United States, except in the case of the United Kingdom, whose people are now- clamoring for a return to protection of their long estab- lished domestic industries. This reduction in cost of trans- portation is indeed one of the chief causes of the steady move- ment toward protection which has characterized the history of the world during the last half century. The fact that, with improved methods of transportation and a narrowing of dis- tances and cheapening of cost of transportation, the whole world has become the next-door neighbor of* each community 108 THE TARIFF. .has compelled that community to establish tarilT dutips of a ?haracter which would reduce the competition offered by the •jheap labor of those communities against which distance no lon^rr affords protection. Practically all of the 500,000 miles of railway and 10 million tons of steamship tonnage with which the world is now supplied have been created since the middle of last century ; the world s international commerce has quadrupled while the world's popu- lation was increasing but 50 per cent, and during that very period the nations of the world have one by one found it necessary to establish tariff protection to take the plac- of that protection which distance and high cost of transportation for- merlv afforded. Tru8t« Have Longr Floarlitlied in Free Trade Hlii^land. No one familiar with the history of trusts and great combi- nations in other parts of the world can for a moment accept as accurate the assertion that the tariff is responsible for the ex- istence of organizations of this general character, whether un- der the title of trusts or otherwise. Mr. Blaine, in 1888, on re- turning from a visit to Europe, declared in his speech opening the Presidential campaign of that year that trusts and com- binations to control prices even at that early date existed in free-trade England in lai-ge numbers; or, as Senator Dolliver has recently expressed it, "England was even then plastered all over with ^nists." In October, 1895, a steel-rail trust which em- braced the steel-rail manufacturers of Great i>ritain was or- ganized, and on February 5, 1896, the London Ironmonger an- nouiwed the details of its agreement, the chief amoni>- them being that "there is to be no underselling." In 1895 the Sheffield Telegraph published the draft of a scheme proposing t' e com- bination of 200 iron firms in the various cities of E < lind for the purpose of regulating the prices of all classes of ron. In 1897 the details of the combination between the great armament manufacturing firms were announced. Some of the gr at com- binations in England for the control of prices of articles in common use were organized as early as 1890, among them the following: The Salt Union, Limited, with a cap tal of $10,000,000; in the same year, the Alkali Company, combining 43 oianufacturing establishments, with a capital of .$30,000,000; the J. & P. Coates Company, thread mariufacturers, in 1896, a com- bination of four businesses with a capital of $27,000,000 ; another cotton thread organization, a year later, combining 15 manu- facturing establishments with a capital of $14,000,000; a com- bination of cotton spinners in 1898, combining 31 establishments with a capital of $30,000,000; in the same year a combination of the dyeing interests, combining 22 establishments with a capital of $22.000,000 ; also in the same year a combination of the York- shire Wool Combers, combining 38 establishements with a capi- tal of $12,000,000; also in 1898 a combination of 60 calico print- ing establishments with a capital of $46,000,000 ; in 1900 a com- bination of 28 wall paper manufacturers with a capital of $21,000,000, and in the same year a combination of 46 establish- ments of cotton and wool dyeing organizations with a capital of $15,000,000. In the decade 1890-1900 the public announce- ments of combinations in free-trade England included 328 dif- ferent business concerns amalgamated into 15 great organiza- tions with a total capital of $.330,000,000, while a vecy large number of minor organizations and those which were not made public should be added to the list to render it complete. Many great combinations have been organized in free-trade England since 1900, but this history of the decade in which great com- binations of capital of this character have been common in all parts of the world where manufacturing capital is pie tiful is sufficient to show that .such combinations and or^^anizitions are not confined to protection countries, but on the contrary flourish with equal vigor in the one free-trade country of the world in which a sufficient amount of capital exLsts to justify the or- ganization of combinations of this kind. TEE TARIFF— THE TRUST QUESTION. 10.9 Export Price Redaction in Free Trade Engrland. Exportation at prices below th»se of the home market is not in any sense the result of or accomplished by the aid of a pro- tective tariif. It is practiced more freely in fxee trade Great Britain than in any other country. United States Consid Jinfus Fleming, writing- from his post in Edinburgh, Scotland, in an official report, on this subject says : *' 'It is the policy of British manufacturers to maintain prices in the home market at the highest possible level and to make whatever concessions may he necessary in foreign markets,^ said the managing director of a leading British metal- working company to me. He referred to the industries in general, excepting such as are based largely upon the manufac- ture of low-grade goods for the foreign trade. There can be no doubt that this manufacturer spoke with full knowledge of the subject. His opinion is corroborated by investigation in various departments of production. Cutting prices in foreign markets to meet competition, or to prevent competition, as the case may be, is a common practice, the length to which it is carried depending altogether on circumstances, chiefly on stocks and labor conditions. When a considerable surplus? re- mains on the hands of the producer the effort is to avoid over- loading the home market and thus reducing the price of the bulk of the product to sell the surplus in foreign countries at the best price obtainable. "At all times, even when great trade conditions at home and abroad are excellent, it is t'he rule in British industries to quote lotccr prices to foreign buyers and British exporters than to the average domestic trader. The difference in favor of the for- eigner or exporter ranges from 4 to 6 per cent. The British maker of an important machine informs me that, although he has no competition, he quotes the machine to customers in Belgium and one or two other countries on the Continent at 15 per cent less than the price at which it is sold in tliis country The reason is that these Belgian and other Continental firms will not pay more than a certain amount for it, and he comes to their terms in order to obviate the danger of compe- tition arising from the invention and manufacture of a simi- lar apparatus in Belgium or elsewhere. He told me that he would sell abroad, in the present state of trade, at any price he could get above cost. Another example of sales made in a foreign market at much below home prices has fallen directly under my notice. I have seen invoices of a British firm of steel wire manufacturers to German buyers in which the prices were fully 201/2 per cent lower than the prices quoted to home cus- tomers. This reduction Avas not due to an extraordinary sur- plus, but principally to a determination to put a certain line of goods into a competitive market. "There are few manufactui-ers whose business in foreign competitive markets is not regularly conducted on the plan of getting the goods off their hands at a profit if possible and at cost if necessary. It may be doubted if price lists and discount sheets are anything more, outside of the hoine market, than aixis to bai-gaining, except in seasons of very marked activity at home. In most trades the one fixed purpose is to not reduce prices to British consumers until forced to do so. As one manu- facturer expressed it to me, 'This is the very root of success in all commercial business — to hold what you have and gain what you can.' "Overproduction is an evil no less frequently observed in Great Britain than in Germany and the United States. A well- known English writer on economic subjects, who belongs to the Alanchester school, said to me in a recent conversation that it was distinctly true, as stated in one of his works on trade relations, that overproduction, although not (in his opinion) so widely diffused here as in the United States, was a difficult recurring factor in the commercial prol)lem ; that 'the British manufacturer, under such circumstances, recognizes the inadvis- ability of flooding his own markets with cheap commoditieib, which they will require time to digest, thus deferring the period when he can supply them again profitably, and therefore 110 THE TARIFF. J he sells the surplus to foreign countries at a loss.' He added that 'there is scarcely a tariff wall in existence that the British manufacturer will not climb over at such times.' "This political economist looks u])ou tfic foreign trade as distinct from the domestic trade, to be haiullcd by each producer as circumstauces seem to demand, especially in periods of over- production. To the same eft'ect a prominent brewer, an ex- member of Parliment, said: *1 have been dimtijing ale and beer on foreign markets all my life ivhenever I have had a surplus. PracticaUy erenj mannfactarvr in tills (•ountry mcU.s Jiis goods abroad for the best price they icill bring when his stock is too heavy to be unloaded at home in a reasonable time without break- ing th'-» market.' As I have before indicated, this statement of British commercial practice is, in my opinion, unquestionable." United States Consul Samuel M. Taylor writes from Glasgow, Scothmd : "(Jenerally speaking, manufacturers of soft goods (cottons, etc.) have one price for domestic and export trade, and surplus stocks are avoided by limiting the output, even to the extent of closing the works. However, if there is a sur- plus, 'odds and ends,' it is exported at reduced prices. In the iron and steel trade, however, it is different. Manufactured steel for export is sold at from 5 to 10 ])er cent, less than for domestic use, and even at a greater reduction. In other words, the cost of transportation to a foreign country where compe- tition is brisk is largely assumed by the British exporter or manufacturer by means of this reduction, and even Kngland is treated as foreign by the Scotch manufacturer and gets re- ductions accordingly. The Scotch manufacturer neither expects nor receives the same profits on his exports to foreign countries that he obtains at home. The same statement applies largely to machinery. In Scotland a combination at present exists which fixes* the price of steel plates for the whole of Scotland, but gives the members of the combination power to sell in other districts than Scotland at whatever prices they choose. In the coal trade, in the words of my informant, 'it is well recognized that foreign consumers can buy cheaper than home consumers, the reason being that colliery proprietors could not dispose of their product with the regularity and in the quantity neces- sarj'^ to maintain a large output unless they sold cheap and granted facilities to the foreigner.' " Kxport Price Reduction in Forelgrn Countries. Judge E. H. Gary, Chairman of the Board of Directors of the U. S. Steel Corporation, in a statement before the House Committee (ni Merchant Marine in April, 1906, said: "The Great Britain home price of rails is $31.50 per ton and the ex- port price of Great Britain is $25, f. o. b. their mills. In Germany the home price is $30 and the export price $24 ; in France the home price is $31 and the export price $25.50; in Austria the home price is $31 and the export price $25.50; in Belgium the home price is $30 and the export price $21 ; in the United States the home price is $28 and the export price about $26.60. There is less margin in this country than any- where else, and the home prices abroad, you will observe, are invariably larger than our home prices. "Now, take structural material, including shapes, plates, bars, angles and tees. In Great Britain the home price is $1.60 per 100 pounds and the export price $1.35 ; in Germany the home price is $1,50 and the export price $1.25; in France the home price is $1.65 and the export price $1.35; in Austria the home price is $1.50 and the export price $1.35; in Belgium the home price is $1.55 and the export price $1.35; in the United States the home price is $1.60 and the export price $1.40. Our price of plates lately has slightly increased because of the demand. Our customers generally, however, are covered for the season at about $1.40. These figures are taken from authoritative sources and I think there is no doubt that they are reliable. They are the figures ujjon which we are doing our b»isiness right along every day." "If you did not have this avenue of export "trade by which you could dispose of the surplus product which is in excess of THE TARIFF AND EXPORT TRADE. Ill the domestic demand," said Representative Littlefield, "you would either have to stop producing- and therefore lose the use of your mills and sustain a loss in that respect, or you would have to carry the siirplus product on hand until the demand was created for it elsewhere? "Yes ; but I do not think it would be practicable to manufac- ture and carry the surplus ; it runs int<) money so fast. I think we would have to shut down our mills, and you know what that means in the disoi-ganization of forces. So it really comes to this : That we would be obliged to increase the cost of manu- fucture if we could not run at full capacity. That would be the inevitable result." Kn^lisli Attitude Towards Trusts. The United States Industrial Commission made a thorough investigation of trusts and trust operations in foreig-n countries as well as in the United States in 1900, sending- an expert (Prof. J. W. Jenks, of Cornell University) to the principal E ropean ccxuntries and g-iving the subject much careful atte- tion and study. The report stated that "there is a stroug tendency to- ward the formation of industrial combinations everywhere in Europe," and of the situation in England says : "There were in earlier days very many local combinations to keep up prices, and in some cases these rings have proved very successful. With- in the last three years a very active movement toward the con- centration of industry into larg-e single corporations, quite after the form that has been common in the United States, may be observed. Nearly all the feeling that one notes in England on this subject has reference to the later corporations formed by the buying- up of many differ* it establishments in the same line of business — corporations that through combination have suc- ceeded in acquiring in many particulars a good degree of monop- olistic control. * * * Industrial combinations in Europe do not seem to have awakeneci t hp hostility m any country that is met with in the United States. In Eiglmd one finds in the papers a little expression of fear of the newer large cor- porations. The Government has taken no action whatever re- garding them further than to pass. August 8, 1900, an amend- ment to the Companies Act, which jirovides for greater publicity regarding the promotion and the annual business of corporar tions than before. * * * There is, relatively speaking, little objection to combinations in Europe, and in some cat-es the governments and people seem to believe that they are needed to meet modern industrial conditions. They do believe that they should be carefullj^ supervised by the Government and, if nec- essary, controlled. * * * The great degree of publicity in the organization of corporations has largely prevented t'hese evils arising from stock watering, and has evidently had "much effect in keeping prices steady and reasonable and in keeping wages steady and just. There seems to be no inclination toward the passage of laws that shall attempt to kill the combinations. This is believed to be impossible and unwise. Laws should at- tempt only to control, and that, apparently, chiefly through publicity, though the governments may be given restrictive power in exceptional cases." Effect of Protection on Export Trade. One of the assertions made and offered as an argument against protection is that high tariffs established by a country lead other countries to discriminate against the products of that protection country and exclude them from their markets, either by adverse legislation or otherwise. Let us see about this. "The proof of the pudding is in the eating." The proof of the effect of protective tariffs upon the export trade of the countries having such protection is found in the measure of the actual growth of their exports as compared with the growth of coun- tries not having a protective tariff and offering in the world's markets the same class of goods as those offered by the protec- tion country. The United States Bureau of Statistics has re- cently published a Statistical Abstract of the World, which Ill THE TARIFF AND EXPORT TRADE. gives the exports of domestic products by each of the principal counti'ies of the world during a long term of years. It is easy, then, to compare the growth in exports by the countries having a protective tariff with that of the single remaining nonprotec- ted country — the United Kingdom. The two most strongly marked examples of protective tariff countries^are Germany and the United States, and th(v<^'liitvf free-trade country of the world is the United Kingdom. These three countries are also especially suitable for contrast in the effects of their respective tariff policies upon their export trade by reason of the fact that they are the ciiief competitors for the great markets of the world and the only countries of the world whose annual cxpoi-ts reach or pass the billion dollar line, each of these countries exjjorting annually more than one billion dollars' worth of merchandise, while no other country of the world has ever exported so much as one billion dollars' value of domestic products in a siiigle year. Let us see, then, what the effect of protection has been upon sales abroad by the United States and Germany, the world's tnost conspicuous examples of protective-tariff' countries, as com- pared with the effect of free trade upon exports from the United Kingdom, the world's most marked example of low- tariff countries. The Statistical Abstract, above referred to, compiled from the official figures of the countries in question and issued by the Bureau of Statistics, shows that the exports of domestic products from free-trade tlnited Kingdom grew from 1,085 million dollars in 1880 to 1.828 millions in 1906, an increase of less than 70 per cent ; while those froin protec- tion Germany grew from 688 millions in 1880 to 1,364 millions in 1905, an increase of over 100 per cent ; and those from protec- tion United States grew from 824 millions in 1880 to 1,854 mil- lions in 1907, an increase of 125 per cent. This certainly does not justify the assertion that other countries discriminate against and reject the merchandise of the country having pro- tective tariff laws and favor that of countries having free trade. While of course the general law of supply and de and in- fluences in a greater or less degree the volume of exports from year to year, the experiences above cited are sufficient to clearly indicate that the existence of a protective duty on imports does not result in an exclusion of our exports by other countries, since our exports have increased enormously during the opera- tion of protective tariff laws. < "' ! Exports Under the United States Tariff. Another and even more striking illustration of the growth of exports under low tariff and protection, respectively, is found in a study of the detailed history of the tariffs and exprrt trade of the United States. The only protective tariffs wh ch the United States had prior to 1861 operated during the years 1813- 16, 1825-33, and 1843-46, an aggregate of 17 years prior to 1861. Since that time protective tariffs have covered the years 1861-94 and 1897-1908, making the total of the period covered by protec- tive tariffs 62 years, against 57 years of low tariff, counting the formative period from 1790 to 1812 as low tariff". Thus the his- tory of the United States under the Constitution is about evenly divided between protective tariff and low tariff. Now, let us see the result in its effect upon our exports during those two great periods of protection and low tariff — 62 years of protect^! on and 57 years of low tariff. During the 57 years of low tariff the im- ports exceeded the exports by $514,954,931; during the 62 years of protective tariffs the exports exceeded the imports by over 5 billion dollars. These statements are compiled from official reports of the United States Bureau of Statistics and their ac- curacy can not be called into question. Does this look as though protective tariffs had the effect of reducing or destroying the export trade? Is There Danger of Knropean Combinations Against the United States on Acconnt of Our Tariff? Statements have been made from time to time that European countries were likely, by reason of the high protective tariff in the United States, to enter into an agreement for the exclusion TSE TARIFF AND EXPORT TRADE. 118 of our products from their markets. Ihis assertion has been made over and over again for years, but more especially in com- paratively recent years. But such action seems highly improbable, for the following reasons : 1. The countries in which tl ese threats of retaliation are most frequently heard are themselves, in all cases except the United Kingdom, protective-tariff countries, and it is unlikely that they would seriously and through official action complain of a protective tariff established in any other country. 2. The European countries can not afford to exclude our staple products, which are required in such large quantities by their people and which would advance in price in their mar- kets if the supply from the world's largest producer were ciit off. 3. The exclusion of these necessary products from the United States would necessitate their importation from other countries, and by reducing the supplies in these other countries would make markets for our products in those countries drawn upon or in other countries from which they had been accustomed to draw their supplies. 4. Experiments of this kind for the ex- clusion of our meats from certain European countries have not resulted in a reduction of our total exports of meats and other provisions. 5. The countries which have complained most bitter- ly of the tariff of the United States have steadily and rapidly increased their importations of our products meantime. 6. During the very period in which the talk of exclusion from European countries of American manufactures have been made, our exports of manuf^-ctures to those countries have most rapidly increased. As to the first proposition, it is from the European countries that the threats of retaliation against the protective-tariff laws of the United States are most frequently heard. Yet all of the leading countries of Europe, with the exception of the United Kingdom, have within comparatively recent years adopted pro- tective-tariff systems and in most cases are now increasing or proposing to increase their rates of duty for the avowed pur- pose of making their tariffs more thoroughly protective. In the case of the United Kingdom, the only European country of im- portance not having a protective tariff, the adoption of a pro- tective system is being strongly urged. It seems highly improb able that a country officially adopting a tariff system with the explicit purpose of protecting its own industries would complain of like action on the part of any other country, even if the rates which that country imposes were higher than those which it imposes. Retaliation a Boomerang,-. The European countries in question are large consumers of the great products of the United States — cotton, whe^it, corn, meats, and other forms of provisions — as well as of manufac- tures. The United States is the world's largest producer of every one of these articles. She produces three-fourths of the cotton of the world ; three- fourths of its corn ; three-fifths of the wheat entering the European markets from extra-European co mtries; and two-fifths of the meats which enter into international com- merce. The European countries, with possibly one or two ex- ceptions, do not produce a sufficient supply of these articles for their respective home markets. They must buy them in large quantities from some other part of the world. One important effect of excluding from their markets the products of the world's principal source of these various articles must be to in- crease in their home markets the prices of those articles. If through concerted action by these countries three-fourths of the world's supply of cotton (produced in the United States) were excluded from their markets naturally the price for the remain- ing one-fourth of the world's cotton, wherever produced, would advance greatly, and this principle would apply in the exclusion of any of the great products of which the United States exports a sufficiently large percentage to make absence of its product a factor in determining prices. Imagine the effect upon the price of wheat if three-fifths of the extra-European supply for European markets were destroyed in a single hour or day. Im- agine the effect upon prices of meats if 40 per cent of the world's available supply for the international trade were wiped 114 THE TARIFF AND EXPORT TRADE. out of existence. Note the effect upon the price of cotton due to a small shortage in the crop of the United States, and con- sider what would be the effect if all of the cotton supply of the United States- — three-fourths of that which the world produces — were shiit out of the markets demanding that cotton. Even if certain counti'ies were to exclude the great products of the United States from their' markets they would be com- pelled to draw their supply from some other country or coun- tries, and the products of the United States would find heir markets in those countries thus drawn upon or in the countries to which they had formerly furnished their surplus. The world's production of the requirements of rnan — cotton, corn, wheat, provisions — is no more than the quantity required by the various parts of the world which are now brought into such close com- mercial relationship by reason of cheap transportation, and if through the exclusion of our products from certain countries the products of other countries were drawn upon to supply those markets our products would in turn find a sale in the other parts of the world thus affected by that change in supply. These great requirements of man for food and clothing, demanded as they are in every part of the world, and easily transported to any given spot, like water, seek their level, and the exclusion of our products from one country' or group of countries would simply result in their finding markets in the spot from which those consuming countries might draw their supply. Results of E^xperinienis in Retaliation. Certain experiments in the exclusion or attempt to exclude American products have been made in European countries during- the past twenty years, and the effect of those experiments upon our sales of the articles in question is worth noting. Beginning agout twenty years ago certain of the European countries began the exclusion of certain classes of meats from the United States, charging that they were dangerous to public health by reason of the presence of trichinae in hogs, Texas fever and other diseases in cattle, and upon other but somewhat similar grounds. These rulings or legislation against American meats extended from country to country upon various pretexts during a series < , years down to a very recent date, proving in each case more or less a barrier against the meat products of the United States. They resulted in some cases in more stringent export regulations by the United States, and in some cases in a modification of the legislation or regiilations in the country of importation, and the net result has been a steady growth in the exportation of provisions from the United States during the very period in ques- tion. The total value of provisions and animals for food ex- ported from the United States in 1880, the approximate date at which this adverse movement against provisions from the United States began, was 130 million dollars, and 237 millions in 1907, a growth of more than 100 million dollars in exports of pro- visions and live animals for food purposes during the very period in question, and a very large proportion of this growth was in exports of those articles to European countries. Another evidence of the indisposition of other countries to attempt to exclude the required products of the United States from their markets is found in the fact that although a dozen of the great countries of the world simultaneously protested against the Dingley tariff act, no one of those countries ex- cluded any of the products of the United States following the enactment of that law or even reduced by a single dollar the value of their purchases from this country. These protests, while not a joint action, and while relating in some cases to dif- ferent features of the act from those complained of by other protesting countries, were practically simultaneous, and as the passage of the act without recognition of their protest was a simultaneous rejection by the United States of those protests, the occurrence offered to them a special and unique opportunity for combined action in excluding our products from their mar- kets. Yet not a single one of those countries took such action, and in no case did they reduce their purchases from the United States. On the contrary, our exports to every one of the 12 TSa TARIFF— AGREBMSNT WITH QBRMAN7. 115 countries have increased. Our exports to the 12 countries which protested against the act in question were in 1896 $618,688,000, and in 1907 $1,220,000,000, an increase of about 100 per cent as compared with 1896, tlie year prior to that in which these pro- tests were made. (See table of countries protesting against Dingley law, and exports to them.) Besides, the complete power of the United States to pro- tect itself against retaliation must not be overlooked. The only countries from which there could be any possibility of danger are the leading industrial and commercial nations of Europe, Their policy is protective, so is ours. But if they are compelled to buy largely of our products from necessity, we buy largely of theirs from choice. We are among their best customers. "What they buy of us are necessaries ; what we buy of thorn are chiefly luxuries. If they were to proscribe our products we could more easily proscribe theirs. So long as we maintain the protective policy we can defend ourselves ; the more we advance towards free trade the fewer weapons of defense we hold. Thus, both the logic of the situation and our actual experi- ence with adverse legislation and threats of such legislation fail to justify the assertion that our products of any class are being excluded or are likely to be excluded from the markets of other countries by reason of our protective tariff. Our Elxportfl of Manufactures Gain More Rapidly tlian tbose of Natural Products. To the argument that the world must have our natural pro- ducts and hence our freedom from danger of adverse combina- tions against them an answer might be made that our chief concern is in the exports of manufactures. True, but has the existence of our protective tariff affected adversely our exports of manufactures? The exports of manufactures in the fiscal year 1897, the last year under the low tariff Wilson law, were 311 million dollars; in 1907 they were 740 million dollars, an increase of about 150 per cent. During that same period the exports of all articles other than manufactures increased from 721 millions in 1897 to 1,114 millions in 1907, an increase of about 50 per cent. Thus ohr exports of manufactures have in- creased about 150 per cent and those of all other articles about 50 per cent during the existence of the highly protective Dinglby law. Protective Tariff as a Revenue Producer. In the matter of revenue the contrast between low and pro- tective tariff is equally striking. In the 57 years of low tariff no less than 22 of the total showed an excess of expenditures over receipts by the Government ; while in the 62 years of pro- tective tariffs 46 of the total showed an excess of receipts over expenditures. Of the 16 years under protective tariffs in which the expenditures exceeded the revenues no less than nine were war periods, when, necessarily, expenditures exeeeded receipts from ordinary sources, while in only two of the years in which deficits occurred under low tariffs could that deficiency be charged to war conditions. The war of 1812-14, the civil war, and the war with Spain all occurred during protective-tariff periods ; while the war with Mexico occurred during a low- tariff period. (See statement and table on this subject on an- other page of this volume.) TARIFF AGREEMENT WITH GERMANY, JULY 1, 1007. In 1906, a new tariff went into operation in the German Empire, constructed in accordance with the modern European method of tariff making. It consists of a so-called "general" or "autonomous" tariff, which is applied to imports from countries which have no commercial treaties with Germany, and a "con- ventional" tariff, comprising the reduced tariff rates which are granted to nations with whom such treaties are negotiated. The rates of duty imposed by the general tariff are much higher — 116 THE TARIFF— AGREEMENT WITB OERMANT. in many oases more than double — the "conventional" duti«i. In accordance with the terms of this tariff, Germany has nego- tiated reciprocity treaties with some ten European nations, and it is her intention to negotiate similar treaties with every nation in the world with which she has a commerce of any importance. By the terms of her tariff act, the higher rates of duties would have automatically applied to all dutiable goods imported from the United States into Germany after March 1, 1906. The attention of the United States Government was drawn to this fact by a diplomatic note from the German ambassador, dated November 4, 1905, accompanied by a friendly expression of the desire of the German government to enter into a commercial arrangement with the United States under which the same treatment would be accorded to her exjjorts to Germany as to those from other countries with which she had commercial treaties. As a result of the correspondence that ensued, a "Pro- visorimn" was agreed to, and subsequently ratified by the German Reichstag, by the terms of which the application of the higher German tariff rates to American goods was postponed for one year and four months, pending the formal negotiation of a commercial agreement laetween the two countries. To arrange the details of such an agreement, the President sent a tariff commission to Germany in November, 1906, con- sisting of S. N. D. North, Director of the Census ; James L. Gerry, Chief of the Customs Division of the Treasury DepArt- ment, and N. I. Stone, tariff expert of the Department of Commerce and Labor. This conmiission spent two months in Berlin in daily conference with a commission of twelve experts designated by the various departments of the German govern- ment. It brought back two tentative plans for the adjustment of the tariff differences between the two nations. One was a com- plete reciprocity treaty, framed in accordance with the terms of the German treaties with other countries. The alternative proposition, which was temporary in character, was signed by the President, Jur.. 1, 1907, and was subsequently ratified by the German Reichstag. Under its terms it remains in effect from July 1, 1907, until June 30, 1908, and thereafter for six months from the date uj^on which either nation shall have given notice of its intention to terminate the agreement. In other words, the agreement may continue indefinitely, while it is at the same time within the power of either nation, in the event that it does not operate to its satisfaction, to terminate it upon six months' notice. Under the agreement about 95 per cent of the United States exports to Germany retain the benefit of the minimum tariff thereon. The articles affected include cereals, fruits, and other farm products, meats, lumber, boots and shoes, all sorts of mauTifactures of leather, paper, glass, iron and steel, all forms of electrical appliances, agricultural implements, ma- chinery, arms, watches, etc. It remains to summarize the concessions which the United 'States has granted in return. The agreement was negotiated under the provision of section 3 of the tariff act of 1897. JJnder a prior agreement with Germany, that country received all the con- cessions in the way of reduced duties permitted under fhis section, except the remission of 20 per cent of the duty on champagne. Champagne is a product of France, and not to any extent of Germany. The German manufacture of sparkling wines is insignificant and the concession to Germany, permissible un- der this item, only served the purpose of the basis upon which to hang certain modifications in the Treasury and Consular Regulations for the administration of our customs laws, as fol- lows : That in all reappraisement cases the hearings shall be open unless the appraisers shall certify to the Secretary of the Treasury that the public interests will suffer thereby ; that the "market value" of imported goods, whenever such goods are made and sold wholly for export, so that there can exist no domestic value established by sale, shall be the export price of the goods in question ; that certificates of invoices issued by the German chambers of commerce, which are conducted under the supervision of tfee German government, shall be accepted by our appraisers as "competent evidence" (not necessarily con- THE TARIFF— STEEL RAILS. 117 elusive), and considered in connection with ail other evidence, w^henever the appraisement of goods imported from Germany is under consideration ; that all agents of the United States gov- ernment sent to Germany in connection with the administration of the customs tariff shall be dul}^ accredited to the German government, and certain other minor modifications in the con- sular regulations, the effect of which is to save exporters to the United States from personal appearance, duplicate invoices, etc. Production and Prices of Bessemer Steel Rails in tlie United States. The following table gives the annual production in gross tons of Bessemer steel rails in the United States from 1867 to 1907, together with their average annual price at the works in Penn- sylvania, and the rates of duty imposed by our Government at various periods on foreign steel rails. Prices are given in cur- rency. [Note the pyramid of production, the inverted pyramid of prices, and the reduction in the duty.] Years. Gross tons Price. 1867 - 2,277 $166.00 1868 - 6,451 158.46 im.) 8,616 30,357 132.19 1870 106.79 1871 ■- 34,152 102.52 1872 8^,991 115,192 111.94 1873. 120.58 1874 - 129,414 259,699 94.28 1875 1876 368,269 385,835 59.25 1877 45.58 1878 491,427 610,682 42.21 187i) 48.21 1880 852,196 1,187,770 67.52 1S81 61.08 1882 1,284,067 48. .50 1883 1,148,709 996,983 059,471 37.75 188-1 30.75 1885 28.52 1886 1,574,71/8 34.52 1887 2,101,904 37.08 1888 1,386,277 29.83 1880 1,510,057 29.25 18)0 1,867,837 31.78 1891 1,293,053 29.92 18)2 1,537,588 30.00 18')3 1,129,400 28.12 189 ! 1,016,013 1,299,628 24.00 1895 2f.33 1893 1,116,958 28.00 1897 1,644,520 18.75 1898 1,976,702 17.62 1899 2,270,585 28.12 ITOO 2,38?, 654 32.20 1901 2,870,816 27.33 1902 2,935,392 28.00 1903 2,946,756 28.00 1901 2,137,957 28.00 1905 . 3,192,317 :!,791,45') 28 00 1906 28.00 1907 3,380.025 28.00 Duty. 45 per cent ad valorem to January 1, 1871. $28.00 per ton from January 1, 1871, to August 1. 1872; $25.20 from August 1. 1872. to March 3, 1875; .$28.00 from March 3. 1875, to July 1. 1883. $17.00 per ton from July 1, 1883. to October 6, 1890. $13.44 per ton from October 6. to August 28, 1894. $7.84 per ton from August 28, to date. 1890. Tlie fiaestion of tariff i-evision stands Tvliolly apart from tlie question of dealini^ ^vitli the trusts. — President Roose- velt at Minneapolis, April 4, 1903. No cliang'e in tariff duties can have any substantial effect in solving^ the so-calld trust problem.— President Roosevelt at Minneapolis, April 4, 1903. Anythingr that makes capital idle, or which reduces or destroys It, must reduce both vrages and the opportunity to earn wages. It only reawires the effects of a panic through Tvhich ive are passing', or througrh which -wve passed in 1893 or 1873, to shovr hoTV closely united in a common in- terest vre all are in modern society. We are in the sante boat, and financial and business storms ivhich affect one are certain to affect all others.— Hon. Wm. H. Taft, before the Cooper Union, New^ York City. One vital, dominatingr fact confronts the Democratic party - vt^hich no oratory, vrhich no eloquence, ^vhieh no rhetoric can obscure: BRYAN'S NOMINATION MEANS TAFT'S ELECTION.— New York World. lit THV TARIFF— EFFECT ON EXPORT TRADE. Selling price of iron ore and price of pig iron at date of buying movement, 189j^ to 1008. [Furnished by Mr. George Smart, Editor of the Iron Trade Review.] Date of buying movement. Season Iron ore prices. Iron prices. Valley. 8«MOn. 4 a a -OS 'M 1 1 r^ ^§ a; O 4) 1 ""ni O^ a^ o«" jg ca 2i^ Dollars Dollars Dollars Dollars Dollars Dollars 1894 March 1, 1894 2.75 2.35 2.50 9.65 9.65 1895 April 1. 1895 2.90 2.15 2.25 1.90 9.40 9.40 1896 May 1, 1896 4.00 3.50 2.70 2.25 12.40 11.15 1897 May 20, 1897 2.60 2.25 2.15 1.90 8.35 8.40 1898— March 20, 1898 2.75 2.25 1.85 1.75 9.55 9.80 189i)-. February 1, 1899— 3.00 2.40 2.15 2.00 10.30 9.75 1900 December 15. 1899.. 5.50 4.50 4.25 4.00 2i.l5 22.15 U)01 April 15, 1901 4.25 3.25 3.00 2.75 16.15 14.40 1902 February 1, 1902 4.25 3.25 8.25 2.75 15.90 15.90 1908 March 20, 1903. ... 4.50 4.00 3.60 3.20 21.50 21.65 1904 April 15. 1904 3.25 3.00 2.75 2.50 13.35 13.15 1905- February 1, 1905 3.75 3.50 3.20 3.00 15.50 16.00 1906 December 5, 1905-.. 4.25 4.00 8.70 3.50 17.25 17.25 1907— November 10. 1906.. 5.00 4.75 4.20 4.00 21.50 21.50 1908 June 18, 1908. 4.50 4.25 8.70 3.50 16.00 15.00 Grofvth of Imports anci Bxports of Manufactures in tUe United Kingdom and United States, respectively, from 1870 to 1907. This table, which shows the value of manufactures imported into and exported from the United States and United Kingdom, respectively, at quinquennial periods from 187G to 1907, is es- pecially interesting in view of the fact that it compares the trade in manufactures of the United States under protection with that of the United Kingdom under free trade. It will be noted that the increase in imports of manufactures into the United Kingdom has been more rapid than that into the United States and that the percentage of growth in exportations of manu- factures from the United States has been much greater than from the United Kingdom. The United Kingdom's importations of manufactures grew from $277,000,000 in 1870 to $762,000,000 in 1907, an increase of considerably more than 200 per cent, while those of the United States grew during the same period from $229,000,000 to $638,000,000, an increase of considerably less than 200 per cent. In the exports of manufactures the contrast is much more strongly marked ; the exports of manufactures from the United Kingdom were $888,000,000 in 1870 and $1,690,- 000,000 in 1907, a gain of a little less than 100 per cent, while those from the United States grew from $70,000,000 in 1870 to $740,000,000 in 1907, an increase of nearly 1,000 per cent. This seems to disprove the frequent assertion of the Demo- crats that a protective tariff at home destroys our chances for selling abroad. Exports of Manufactures and Total Exports of Domestic Mer- cbandlse from tlie United States, United King^dom, and Germany, from 1875 to 1907. The table which follows shows the imports and exports into and from free trade United Kingdom, and protective Germany, and the United States, respectively, from 1875 to 1907 ; also the exports of manufactures from each of those countries during that period. It is interesting to note that the total exports of the United States have grown more rapidly than those of either Germany or the United Kingdom, and the growth in the exports of manufactures has been much more rapid than in either of those countries. Manufactures exported from the United King- dom amounted to $979,000,000 in 1875 and in 1907 to $1,690,000,000, having thus increased less than 75 per cent, dur- TEE TARIFF AND EXPORT TRADE, lift ing- that time. Those from Germany grew from $460,000,000 in !S80 (no data for 1875) to $1,047,000,000 in 1906, an increase of about 130 ])er cent., while those from the United States grew from $102,000,000 in 1875 to $740,000,000 in 1907, an increase of over 625 per cent. Tliis seems to pretty thoroughly dispose of the statement that protection injures the export trade of the l)rotected country. 2C ^ o o Ci o "^-^ O IV, tsl 00 eo :g to "« 5= t. >oor o 05 O CO 00 (N 00 r-* r-l -J CO r- 1^ oooio, "So ^4 02 a 1 az J r^ t^ rH r^ QCOCOOOOS^CDrHMOOOQ Oic-^Mmr-QcoQoooo rHCOCiOOlCXCOOOOCOOOOO j:^ 03 53 (M -* 05 1^ < Q ■* 00 i> 00 1^ CO - > iR (M lO 1-1 i-l CO > u* o; CO C-- 1^ in > o o 5 J5 ( ! o o oo < iiocoS CO r^ T— * Oi CO i-i ooeo -* o CO 05 iH ■* 00 7;coGOO.-ior — t<>-ico(M- >;q5oocgcJ5000>ini-(.H-t<< QlCCDCOl^l^OOi-li-Hoo< !8S! '"inint^OOT-i!Mi-(os!>co(Mi-( «003me00505rHCOt^OlClS-^ 7^COI^t>C»r-l05COC0 1CTHf^CO-1' ^cocot^ooeO'*i-i(Meo Qmc5int^(>Qoooo>oo5»H.t^inOiHNi-40iooeo5i-j_ i-ToJ r-T N ef eJ ©« fff »i (N ei ei" eo* I I I I I 1 I I I I I I I I I I ! I III I i I ! I I! I I I ! I S ieoin©in©i-HC^co-^ie fcooGoSooSooiSSS 120 THE TARIFF. Importation of manufactures into United Kinudom and United States, respectively^ at quinquennial years, 1S70 to 1001. [From official statistics of the respective goveruments.] Into the United Into the United Kingdom. States. Year, Millions dollars. Millions doll 1870 277 229 1875 354 241 1880 405 307 1885 406 261 1890 478 348 1895 483 296 1900 OHO 337 1905 707 430 1907 762 638 Exportation of manufactures from United Kingdom and United States, respectively, at quinquennial years, 1870 to 1901. [From official statistics of the respective governments.] From the United From the United J\inyfl'm. States. Year. Million.s dollars. Millions dollars. 1870 888 70 1875 . 979 102 1880 965 122 1885 915 150 1890 T 1,112 179 1895 941 205 1900 1,126 485 1905 1.329 611 1907 1.690 740 Growtli of Exports to tlie Countries Ti^hichi Protested Against the Dingley Tariflf Bill. This table gives a full list of the countries which protested against the Dingley tariif bill during its consideration, and the value of merchandise exported thereto in the year prior to the consideration of that measure and of their protest, and compares with those figures the exports to those same countries in 1898 (the year immediately following the enactment of the tariff law) and in 1907, the latest year for which figures are now available. It will be seen that despite the protests against the Dingley bill and, in some cases, implied threats of exclusion of American products in case the bill should become a law, the exports to those countries have in ev6ry case greatly increased, the total exports to those countries in 1907 being practically double those of 1896, the year prior to the enact- ment of the law. Exports from the United States to the countries which protested against the Dingley tariff hill, showing increase in exports after enactment of the law. Countries. Year ending June 80— United Kingdom Germany Netherlands Belgium <. Italy — "_ Japan Denmark China Argentina Austria-Hungary Greece Switzerland Total to countries. 1896. lb98. 1907. $105,741,339 $540,940,605 $607.783,2.55 97,897.1OT «9, 022, 899 155,039,972 256,595.663 64,274,524 104,507,716 27,070,625 47,619,201 51.493,044 19,143,606 23,290,858 61,746,965 7,889,685 20,385,041 38,770,027 6,557,448 12,697,421 23.384,989 6,921,933 9,992,894 25, 704.. 532 5,979,046 6,429,070 32.163,336 2.439,651 5,697,912 15,136,185 191,048 127,5.59 1,634, 4;n 32,954 263,970 612,. 579 $618,687,429 $886,759,027 $1,219,532,722 THE TARIFF— PRINCIPAL SYSTEMS OF THE WORLD. 121 MODERN TARIFF SYi)TEMS OF THE WORLD. Three types of tariff systems have been adopted by leading nations during- the more recent period. The earliest type is the single, or "autonomous," tariff. It is made up of schedules or rates which apply uniformly to imports from all countries, no favor or discrimination being shown to any one of them. It is also called "autonomous" because it is the result of domestic legislation only, with regard primarily to the wants and inter- ests of national industry. While the character of such autono- mous legislation is in most cases protective, this is not an ab- solutely essential element of the autonomous tariff. Cases are possible where a tariff of this character may be constructed along free trade lines. The only example of an autonomous, non-protectionist tariff is presented by the British tariff, the duties of which are purely fiscal in character and therefore not adapted for change or re- duction by tariff agreements. The tariff systems adopted by most countries of the European continent differ from the British sj^stem, each tariff having a double column of rates. The rates in the second columns are of course never higher than in the first column, and as a rule — lower. In case this double set of rates is the result of domestic legislation and the mere application of these rates to the vari- ous countries the result of international bargaining, the tariff is designated as a "maximum and minimum" tariff. Examples of this system are presented by the tariffs of France, Spain, and Norway, as well as Ijy the recent tariff of Canada. When- ever this second set of rates is primarily not the result of do- mestic legislation but of international bargaining, such a tariff is spoken of as a "general and conventional" tariff. Typical representatives of the cojiventional system are the German, Austro-Hungarian, Italian, Swiss, and the most recent Russian tariffs. The Maxlmnm and Minininm System Described. As can be seen from the short definitions just given, both the "maximum and minimum" and the "general and conventional" tariff systems presuppose international bargaining and agree- ments. The difference between the two systems is, that in the case of the maximiim and minimum tariff systems the legislative body of the country from the outset fixes the limits within which concessions to foreign countries can be made by the Executive. After this type of tariff has been adopted by the national legis- lature the domestic producer is assured of a minimum degree of protection which cannot be reduced by the Executive through negotiations with foreign countries. Furthermore, the legis- lature may restrict the number of articles to which two sets of rates are applicable. For example, the French tariff provides only for a single rate of duties for the principal breadstuffs. Tlie Con-v^entional System Described. In the case of the general and conventional tariff sj-^stems the legislature fixes from the outset one set of duties only, which is sometimes called the autonomous set, being the result of au- tonomous national legislation. The process by which the second set of duties is attained is normally as follows : Country A and Country B, both having passed the aiitonomous tariffs, open negotiations through specially appointed agents with the view of obtaining reciprocal concessions from the rates found in the respective autonomous tariffs. Assuming that Country A is an exporter of agricultural and mining products, its negotiator^ naturally will attempt to obtain reductions of duty on the above products without paying any attention to the autonomous rates 122 THE TARFFr— PRINCIPAL SYSTEMS OF THE WORLD. found in the tariff of "Country A" on articles in the exportation of which th(Mr country is not interested. In case Country B is an exporter of textiles and chemicals tlie ne{>()tiat.ors rej)resent- injjf Country B will be interested in. having tlie rates on these products only reduced by Country A. If the concessions granted by one side are found to be eqiiivalent to those granted by the other, new sets of rates will be constructed which, as a rule, will be lower in either tariff than the rates on the same artihotogrophic, or other prints, or hand painted Unit of quantity. 100 kilos G 100 kilos N, —-do —.do .-..do 100 kilos G .—do .do- -do -do -do -do -do 100 kilos N, 100 kilos G, 100 kilos N, —.do 100 kilos N. Sq. meter, ....do -do... -do — 100 kilos G. -.-.do 100 ki'os N. —-do .--do 100 kilos G. 100 kilos N. do,»... -—do I Rate of duty (additional taxes included). General tarlflr. Francs. 7.00 11.00 U.OQ 13.50 16.00 5.00 6.00 3.00 6.00 5.00 6.00 3!oo 6,00 2.50 4.00 4.00 7.00 16.00 6.00 19.00 11.00 26.00 1.25 4.00 3.00 5.00 8.00 6.00 20.00 35.00 18.00 7.00 12.00 25.00 120.00 100.00 126 MAXIMUM AND MINIMUM TARIFF, Schedule A — Import tariff — Continued. 852 353 351 355 356 357 Articles. XXIII.— Qlass and Crystal— Continued. toy glasses lor flat, cut and Watch classes: Rough, Including watches Glasses for clocks, polished Glasses lor clocks, other, and watch glasses, cut and polished Spectacle and optical glasses: Plane, concave, or convex. "KoyloB," or window glass, cut on one surface _. Polished or cut Vitrifications: Vitrifications and enamel. In lumos and tubes— Not cut - Out, not rebaked. Vitrifications in beads, perforated or cut, spun glass, balls, and imita- tion coral of glass Imitation precious stones, trinkets of glass, ox)lored or not Flowers and ornaments of beads and porcelain, mosaics on paper Wreaths, finished or not. and other vitrified or porcelain articles, with or without metal ornaments Bottles, full or empty. _ Cullet or broken glass Unit of quantity. .do -do -do kilos N. -do -do 100 kilos 6, do kilos N, -do -do -do kilos 6, -do .... Hate of duty (additional tuxes Included). General tar 1 ft-. Francs. 20.00 75.00 180.00 30.00 180.00 6.00 7.50 30.00 150.00 150.00 175.00 4.50 Free. Mini- mum tariff. Francs. 15.00 50.00 150.00 I'kOO 150.00 5.00 6.00 20.00 100.00 125.00 1)0.00 3.50 Free. I am a protectionist because I tblnk 1)y that policy the ^vorkmen of America fvlll be well paid and not underpaid. — Hon. Oeorse F. Hoar. A tariff for revenue only resulted in cheaper -vrool, cheap- er bread, cheaper everythinjar; there was no doubt about that; but did cheapness produce happiness, as they said it would? No; it produced misery, just as we said it w^ould.— Hon. M. N. Johnson, in Congress, March 24, 1807. The rail-ways can blame no one but themsel-ves if the revelation of the flasirrant violations of law^ and of tlieir unjust administration of a public trust have led to an pnt- burst of popular indi^rnation and have broug'ht on temporary excess.— Hon. Wm. H. Taft, at Columbus, Ohio. The most casual observer must have perceived the rapid improvement in the commercial interests of the country w^hich followed the enactment of the Dinjgrley law, an im- provement which has steadily increased in degrree not-with- standin$!r the adverse influence of actual war. — Hon. C. W. Fairbanks, in U. S. Senate, June 3, 1898. I am a protectionist because facts confront us, not theo- ries. I have seen the TvaBC-earners of Great Britain and con- tinental Europe; know ho^tv they live; that they are homeless and landless as far as o^vnership is concerned; that they are heli>less and hopeless as to any brighter future for them- selves or their children; that in their scant wagres there is no marij^ln for misfortune and sickness, pauperism being; the only refusre.— Hon. William P. Frye. What has been the result to the United States of this so-called colonial policy? W^ell, it has added to her trade something' over one hundred millions of dollars. I do not think that is important Except as a beginning-. If the gov- ernment continues its friendly policy toward Porto Rico and the Philippines and opens her markets as well to the Philippines as to Porto liico, this trade >vill treble and quadruple in a marvelously short time, so that merely from the standpoint of material progrress, the mutual benefits for the iicople -we are helping and ourselves -will be no mean Justification for the policy.— Hon. W^m. H. Taft, at Cleveland, Ohio. One vital, dominating fact confronts the Democrntic party i;\'hteh no oratory, -»vhlch no eloiinence. which no rhetoric can obscure: BRYAN'S NOxlIINATlON MEANS TAFT'S ELECTION.— New York W^orld. TBB CONVENTIONAL TARIFF". 127 EXAMPLE OF CUSTOMS TARIFF OF GERMANY. (Conventional.) Rates of import duty. ; NOTE. —All rates are given per 100 kilos, net weight, except where otherwise indicated by footnotes.] Articles. PART I.— AGRICULTURAL AND FOREST PROD- UCTS, AND OTHER NATURAL ANIMAL AND VEGETABLE PRODUCTS. POOD STUFFS. AND ARnCLES OF CONSUMPTION. A.— Field, garden, and meadow produce. CEREALS AND RICE. Rye Tare: Sacks. 1. Wheat and spelt Tare: Sacks. 7. Barley: xMalting barley Other Tare: Sacks, 1. NOTE.— The following is to be regarded as bar- ley other than "malting barley." and to be ad- mitted at the reduced rate: (1) On entering at certain customs stations pro- vided with special autlioity. barley which, in its pure, unmixed, beardless state, does not reach the weight of G5 kilos per hectoliter, and likewise does not contain more than 30 per cent of grain of which the weight is 67 kilos per hectoliter or more. (2) Barley for which proof is furnishc;'. that it is unfitted for the manufacture of malt or that it is not intended for that purpose. In case the correctness of the ascertainment of the quantity admitted under (1) is disputed by the importer, or in case other grounds of doubt as regards the use to which it is to be put arise respecting a consignment presented tor clearance on account of its special character, the customs department is only bourn! to admit the goods at the reduced rate, provided it is first rendered un- suitable for use in the manufacture of malt. This can be done at the option of the customs depart- ment by grinding, hulling, bruising, or any similar process. It is understood, however, that the application of any such process does not entail any expense to the importer. Oats Tare: Sacks, 1. Buckwheat Millet (panicum, Italian millet) Maize (Indian corn) and sorghum (dhoura) Other cereals not specially mentioned NOTE TO NOS. 1-8.— Cereals in sheaves, as di- rectly gathered on the field, will pay half the duty in the grain as specified above. Malt, except that roasted or ground— From barley From other grain Rice, not cleaned LEGUMli:S, DRY (RIPE). Beans for food ..__ Pease, lentils . Beans for fodder (horse-beans, etc.), lupines, vetches-- NOTE TO NOS. 11 and 12.— Legumes in the straw are to pay half the duty of the class to which it belongs. OLEAGINOUS FRUITS AND SEEDS. Rape seed, colza seed, dodder seed, oil-radish seed, mustard seed, hedge-mustard seed Poppy seed, also rii>e poppyheads, sunflower seeds, edible cyiierus root, beechnuts, laurel berries Peanuts, sesame, "madia" seed, ben nuts, kapok seed, and Niger seeds PART XV.— GLASS AND GLASSWARE. Glass in the mass (also glass paste unshaped or in rough lumps); fusible glass, enamel, and glazing in the lump, colored or not. and glass powder (ground glass) - •Gross weight. General rate of duty. Marks. 7.00 Marks. 5.00 7.50 5.50 7.00 7.00 4.00 1.30 7.00 5.00 5.00 1.50 5.00 1.50 1.50 3.00 no. 25 ♦11.00 5.75 4.00 4.00 4.00 4.00 2.50 2.00 1.50 1.50 5.00 2.00 2.00 2.00 2.00 8.00 8.00 128 COLONIAL TARIFF. Rates of import duty — Continued. 736 Articles. PART XV.— GLASS AND GLASSWARE— Continued. Rough rods and tubes of natural colored glass Glass tubes and rods, without distinction of color, usetl for the manufacture of beads and blown art wares, etc _ Hollow glass — Neither molded nor ground, polished, smoothed, cut, etched, or figured— Of natural color White (or half white) transparent, with or without separate rings of massive white (or half-wlnte glass) . Colored or white nontransparent. or even Hashed with colored or white nontransparent glass ' Tare: Cases. 40; casks. iO; hampers. 13. With the bottoms only molded, or with the stop- pers shaped or ornamented by grinding, mold- ing, etc.— Colored or white nontransparent. or even Hashed with white or colored nontransparent glass Other _-. - _. Tare: Same as No. 737. Molded, ground, polished, smo:)thed, cut, en- grav^ed, or figured in any otlier way — Colored or white nontransparent. or even cased with colored or white nontransparent glass Other -1 --. Tare: Cases— Ink wells made of ground white transparent glass, 20; other, 40. Casks 40. Hampers, IS. Painted, gilt, or silveretl, alfo figured by colors being applied or burnt in So-called "Silberglass" (ordinary, white, transpar- ent, uncut, and hollow glass, to which an even and glittering appearance of a color like silver has been Imparted by means of washing the whole of the interior with amalgam, but which has not undergone any further process of work- ing on the outside), used as ornamental balis for garden posts, chandeliers, and the like Otlicr hollow glass of a like description Tare: Cases, 40; casks. 40; casks. 40;hampers, 13. General rate of duty. Conven- tional rat*! of , duty. 3.00 3.00 3.00 •8.03 17.00 24.00 20.00 30.00 24.00 5.00 Marks. J. 00 3.00 3.00 *8.00 10.00 15.00 15.00 12.00 15.00 12.00 20.00 15.00 20.00 •Gross weight. Tariff Relatious Bet-fveen the Mother Country and its De- pendencies, Possessions, or Colonies. (Preferential Tariffs.) The tariff relations between the mother country and its col- onies may be cla.ssed under the following- heads: 1. Those in which Colonial imports into the mother country are subject to the same rates of duty as the products of foreign countries enjoying the most favored nation treatment. This mode of treatment of colonial imports prevails at present in the United Kingdom, Germany and the Netherlands; in the case of the United Kingdom and Netherlands, which are practically on a free trade basis, the reasons of such policy are obvious. In the case of Germany the imports from her colonies consist al- most exclusively of such products, mainly raw materials, as do not enter into competition with German home products or manu- factures and are not subject to any duty whatever their orgin. 2. Those in which colonial products when imported into the mother country are subject to preferential, that is, lower cus- toms duties ; thus, for example, the United States accords a 25 per cent reduction from the general rates to all dutiable imports from the Philippine Islands. The French Government accords preferential treatment without limitation as to quantity to cer- tain articles, such as lumber, palm oil, etc., imported from the French West coast of Africa. In other cases reduced rates are charged on limited quantities of certain colonial products. 3. Those in which the tariff of the mother country is made to apply to the colonies and trade between the mother country and its colonies is free and subject to no duty. An example of such treatment -is presented by the tariff arrangement existing COLONIAL TARIFF. 129 between the United States and Porto Rico. In the case of tariff relations between France and the larger part of her colonies, while free trade exists in most articles exchanged between them, imp)ortant exceptions to the general rule are found in the case of "colonial" products imi^orted into France, such as cocoa, chocolate, coffee, tea, jjepper, etc., which are subject to revenue duties, though in most cases these duties are 50 per cent below the minimum rates charged on imports of the same character from foreig-n countries. Treatment by tlie Colonies of Goods Coming from the Mother Country or other Colonies lender the Same Sovereignty. The fiscal treatment of imports from the mother country by the colonies is likewise three-fold : 1. Those in which no fiscal favor or preference is shown to imports from the mother country. This is the arrangement pre- vailing at present in the Dufch German colonies and British Crown colonies, as well as in the Philippine Islands with re- gard to imports from the United States. 2, Those in which the products of the mother country are subject to preferential treatment, that is, admitted into the col- ony on payment of lower rates of duty than charged on imports from foreign countries. The manifest purpose of such le'gisla- tion is to bring about a closer economic and commercial relation- ship between the colonies and the mother country and to open a more favorable market for the products of the mother country in exchange for better opportunities offered to the products of the colony in the markets of the mother country. Unless ex- isting treaties with foreign countries contain provisions to the contrary, it would seem that a foreign country cannot claim the extension to her products of the preferential rates ou the basis of its most favored nation clause in its commercial treaty with the mother country. In practice, however, the application of preferential rates by the British self-governing colonies tc^he products of the mother country has given rise to controversies and tariff difficulties with foreign countries. Thus, for example, Canada involved herself into difficulties with Germany by ac- cording preference to British products ; the result of this diffi- culty has been that Canadian products imported into Germany are subject to the general tariff and not to the conventional rates. This preferential policy in British colonial tariffs is the growth of recent years. Canada entered upon this policy in 1897 and accords now reductions of duty on a large number of articles, the product and manufactures of the United Kingdom. The new Canadian tariff which went into force November 30, 1906, provides for the application of preferential rates to direct importations not only from the United Kingdom but also to products coming from British West Indies, British Guiana, Aus- tralia, Straits Settlements, New Zealand and the South African Customs Union. New Zealand in its tariff of 1907 accords pre- ferential treatment to certain articles which are the produce and manufacture of some part of the British dominions, either by im- posing duties of 20 to 50 per cent higher on the same articles when coming from foreign countries or by admitting free of duty certain other articles that are dutiable at 10 to 20 per cent ad valorem when not of British production. The Australian Commonwealth has also adopted the same principle of preferen- tial treatment of certain goods imported into the Commonwealth when the produce or manufacture of the United Kingdom. Fur- thermore these semi-sovereign colonies have entered into^or are negotiating reciprocity tariff arrangements between each other, by which preferential treatment of the respective imports from each other is granted to an extent even larger than that which is accorded to products of the mother country. The third type of tariff treatment of the products of the mother country by the colonies is that prevailing in Porto Eico and in a large number of the French colonies, i. e., imports from the mother country are admitted free of duty. In a case of the French colonies which have adopted the same mode of treating the products of the mother country free trade exists between all of them, these colonies, together with the mother country, con- stituting, as it were, one greater ou«tom« union. 180 THE TARIFF— RECIPROCITY. Hat of tariff treaties concluded by Germany with other European countries. Name of country. Date of sign- lug. Date of taking effect. Date of expiration. Auitria-Hunuary 1905 1901 190 i 1904 1904 1904 1904 1905 1SS4 1906 1907 March 1, 1906 Belgium Italy Roumauiu .,- March 1, 1906 _._ December 31 1917 March 1, 1906 March 1, liXJO Dticciuber 31, 1917. Dpf'Pinhpr SI 1<)17 Russia March 1, ISKJO Servla , March 1, 190G December 31, 1917. Switzerland _-^— - March 1, 1906 Bulgaria March 1, 1906 _ _. February 28, 1911. Greece Sweden United States „ July 9, 188t ._. May 8, lOOa. July 1, 1907 _ 6 months' notice. December 31, 1910. 12 months' notice. *Wlth option of denouncing it 12 months before December 31, 1915. List of Recent Tariff Treaties Concluded by France with otiier Knropeau Countries, witli tlie United States and Canada. Austria-Hungary, 1884; Belgium, 1906; Germany (treaty of peace at Frankfort) , May 10, 1871; Great Britain, 1882; Rouma- nia, 1907 ; Eussia, 1905 ;. Servia, 1907 ; Spain, 1893-4 ; Sweden and Norway, 1892; Switzerland, 1906; Canada, 1907; United States, 1908. RECIPIIOCITV. Reciprocity is another form of tariff revision which has been suggested at various times by various people and by people be- longing to various political parties. It was suggested by Presi- dent Arthur, James G. Blaine, and William McKinley; was put into operation in the McKinley tariff law ; was destroyed by the Democratic Wilson-Gorman tariff law ; and now the Deinocratic party is charging that the Republican party is not willing to give the country "genuine reciprocity." There are two distinct kinds of legislation which have been designated as reciprocity legislation. The first of these was enacted by the Democratic party in 1854, taking effect in 1855. It was reciprocity with Canada, and provided that cerlain ar- ticles, the growth or produce of Canada or the United States, should be admitted into each country, respectively, free of duty. These were articles of common production in the two countries, and included grain, flour, animals of all Idnds, fresh, smoked, and salted meats, cotton, seeds, vegetables, fruits, fish, poultry, eggs, hides, furs, stone, slate, butter, cheese, tallow, lard, ores, coal, pitch, turpentine, ashes, timber, lumber, flax, hemp, tobacco, and rags. These were all, with the single exception of cotton, articles of mutual production, and Democratic reciprocity simply provided for free trade in these competing articles. Uiider that treaty, which went into effect March 16, 1855, and terminated March 17, 1866, exports from the United States to Canada fell from $27,741,808 in the fiscal year 1855 to $23,439,115 in the fiscal year 1866, a reduction in our exports to Canada of over 4 mil- lion dollars during this period of Democratic reciprocity, while imports into the United States from Canada increased from $15,118,289 in 1855 to $48,133,599 in 1866, an increase of 33 mil- lion dollars. In our trade with all other countries during that same period our imports increased 60 per cent while those from Canada were increasing 220 per cent, and our exports to all other countries increased 70 per cent while those to Canada un- der this reciprocity were decreasing 15 per cent. It was simply free trade in articles of common production and with no barrier to protect the domestic producer — the result being a much greater increase in our imports from Canada than in those from other countries, and a decrease of exports to that country, while to other countries exports were increasing. THE TARIFF— RECIPROCITY. 131 A later form of reciprocity with which the conntry has had ■experience is illustrated by the plan formulated in the McKinley tariff law and expressed by William JNIcKinley in his much- -quoted speech at Buffalo, in which he said: "By sensible trade arrangements ichich will not interrupt our Jiome production we shall extend the outlets for our increasing- surplus. * * ••' We should take from our customers such of their products as we can use without harm to our industries and labor. * * * if perchance some of our tariffs are no longer needed for revenue or to encourag-e and protect our industries at home, why should they not be employed to extend and promote our markets abroad?" To purchase from our neighbor "such of their products as ^we can use without harm to our industries and labor;" in other words such of their products as are not produced hy our own labor and obtain in exchange markets for the class of mer- chandise which we desire to sell, and which the countries in question require for their own use, differs materially from the reciprocity of 1855-56, which was merely free trade in arti r s of mutual production, articles which when imported compete with the home producer. The chief classes of products which we do not produce in the United States are tropical and sub- "tropical. We import about 400 million dollars' worth of tropical and subtropical products every year; more than a million do :ji\s' worth for every (^y in the year, including Sundays and holidays. These articles we cfo not produce in the United States in suffi- cient quantities for home requirements. They include rubber, hemp, sisal, jute, raw silk, Egyptian cotton, and other articles used in manufacturing, and coffee, cocoa, tea, spices, olives, bananas, and sugar, used as food and drink. These classes of articles are of the class which "we can use without harm to our industries and labor." Sugar is the only article in this list produced in the United States, and at the present time the home production of sugar is only suiiicient to supply about one-fifth of the total home consumption. The countries which produce these tropical and subtroi:)ical articles 'are not manufacturing countries, nor are they large producers of those great staples of food — flour, Avheat, corn, and meats. As a consequence, they require the very classes of articles which the people of the United States have to sell. Reciprocity Treaties Under tlie McKinley LaTV. Under the McKinley tariff law reciprocity treaties were :made by President Harrison with the governments of Brazil, British Guiana, Salvador, Nicaragua, Honduras, Guatemala, Santo Domingo, and the countries governing the British West Indies and Porto Rico and Cuba. These treaties provided for a reduc- tion of duties on foodstuffs and manufactures from the United States entering the countries and" islands in question, in ex- change for the free importation of sugar, coffee, tea, and hides into the United States, as provided under the general terms of the McKinley act. The result of those treaties with this group of tropical countries, producing the class of articles whicn the United States requires and does not produce in sufficient quan- tities at home, was that our exports to those countries and is- lands increased 26 per cent and our imports from them increased 28 per cent between 1890, the year of the enactment of the Mc- Kinley law, and 1894, the year in which it was repealed by a Democratic Congress and a Democratic President, and recip- rocity thus destroyed. During that same period our exports to all other countries than those above named increased 3 per c\4nt and our imports from them decreased 27 per cent. Tlie Hawaiian Reciprocity Treaty. Another example of reciprocity, that with countries pro- ducing the class of articles which we require and importing the clan's which we produce and desire to export, was the recij)rocity treaty with the Hawaiian Islands. That treaty went into effect September 9, 1876, and terminated April 30, 1900. During that period of the existence of that agreement, our exports to the 181 THE TARIFF— RECIPROCITY. Hawaiian Islands grew from $779,257 in the fiscal year 1876 to $13,509,148 in the fiscal year 1900, while imports from the Hawaiian Islands of noncompeting- articles demanded by our markets — tropical products — increased from $1,237,191 in 1876 to $20,707,903 in 1900. Thus by tal,S (N fl+j a d d 6 o S a a a a :3 a d 3 '. o ; • '53 • > :.2 B -l'-^ .(M . •00 05^, -r-t e - ' -I X <>J (M 00 (M iMtHX^ O -2 ^"CD - ^ CO -^ t 3 O O O .O O a -Q go- "t-I * • •«) • • -MO is • -rHO a -05 INOO 05 o ooooo 00 00^ o -t- rHfOrH O5 00r-I 03 aj^D looo b ^§a ^a May May (Jan -^ Jul s a Z fl ra O I- mamwo a-g 30 CI o g*j rt Ml "^ fc. i-'^i:ial 1 _ ^ o 5« - « ^ O oi OlO CI d o W) a; -o t3 ^^ as-^^ti 4) 0) a d rag'-'" • ^ a M) CO a si G d d tD 0) 'O-S.S «Sh" r ? 184 TlIK TARIFF— RECIPROCITY. There have been four distinct experiences with reciprocity in the trade relations of the United States: (1) 'i'he reeiproeity treaty with Canada, existing from 1865 to 1866. 'Fhe treaty alTeeted imports from Canada east and Canada west. Nova Si'otia, New Brunswick, and Prince Edward Island, but did not aifect imports from British Columbia and Newfoundland. (2) The reciprocity treaty with the Hawaiian Government, existing from 1876 to 1900. (3) The series of treaties framed under the McKinley tariff act of 1890 with Brazil, Dominican Kepublic, Spain, (for Cuba and Porto Rico), in 1891; and with Germany, United Kingdom (for British West Indies and British Guiana), Nicaragua, Sal- vador, Austria-Hungary, Honduras, and Guatemala, in 1892. These continued in existence until the passage of the Wilson tariff act, August 27, 1894. (4) The reciprocal agreements of 1900 with Germany, France, Portugal, and Italy, still in operation. (5) The reciprocity treaty with Cuba, framed and ratified in 1903, and taking effect December 27, 1903. The detailed provisions of these various reciprocity treaties may be briefly described in general terms as follows: (1) The Canadian reciprocity treaty provided for the free admission into the United States from Canada, and the free admission into Canada from the United States, of breadstuffs, provisions, live animals, fruits, fish, poultry, hides and skins, furs, stone, oi'es and metals, timber and lumber, unmanufactured cotton, flax and hemp, unmanufactured tobacco — the list of articles being identical for each country. (2) The Hawaiian reciprocity treaty provided for the free admission into the United States of sugar, molasses, and other of the principal tropical productions of the islands, and for the free admission into the islands of breadstuffs, provisions, manufactures, and general merchandise from the United States. (3) In the group of treaties made in the years 1891 and 1892, under the act of 1890, the provisions were briefly as follows : With Brazil the treaty provided for the free admission into the United States from Brazil of sugar, molasses, coffee, and hides, and the free admission into Brazil from the United States of breadstuffs, pork, fish, cotton-seed oil, coal, agricultural implements, machinery for mining and manufacturing, mechanical tools, material for railway construction, and numerous other articles, the product of the United States ; also for a 25 per cent reduction in the rates of duty on certain other articles, in- cluding provisions, manufactures of iron and steel, leather, lumber, fur- niture, wagons and carriages, and manufactures of rubber. With Cuba and Porto Rico the treaty provided for the free admission into the United States from Cuba and Porto Rico of sugar, raolasaes, coffee, and hides, and the admission to the islands from the United States, free of duty, of salted meats, fish, lard, woods for cooperage and manufactured into doors, frames, etc., wagons and carts, cars for railways, sewing machines, manufactures of iron and steel, oats and forage, and numerous other arti- cles, the product of tlfe United States ; also corn and moal at 25 cents per hundred kilograms, wheat at 30 cents per hundred kilograms, flour at $1 per hundred kilograms; also a reduction of 50 per cent of the duty on numerous other articles, especially manufactures. With British West Indies the treaty provided for the free admission into the United States of sugar, molasses, coffee, and hides from the islands, and the free admission into the islands from the United States of live animals, canned or dried beef, fish, eggs, machinery for agriculture, irri- gation, and mining; carts and wagons, wire, railwiiy material and locomo- tives, fertilizers, fruits, sewing machines, and a large number of manu- factures ; also a reduction of 25 per cent in the rates of duty on beef and pork, salted, and provisions, and of 50 per cent on bacon and hams, lard, bread and biscuits, boots and shoes, shooks and staves, and other articles. With the Dominican Republic and British Guiana, Nicaragua, Honduras, and Guatemala the provisions were similar to those with the West Indies. With Germany the treaty provided for the free admission into the United States of sugar, molasses, coffee, and hides from Germany, and the free admission into Germany from the United States of bran, flax, feathers, hides and skins, tan bark, also a large list of articles at a fixed rate of duty, but in all cases below the regular tariff rates — the list includ- ing breadstuffs, lumber, provisions, live animals, fruits, and certain manu- factures. The treaty with Austria-Hungary was similar in general character- istics to that with Germany. (4) The reciprocal agreements now existing between the United States and Prance, Portugal, Germany, and Italy, respectively, may be summar- ized as follows : France : The United States reduces the rate of duty on crude tartar from France to 5 per cent ad valorem; on brandies or other spirits to $1.75 per gallon; also a reduction on still wines and vermuth and on paintings to 15 per cent ad valorem; while the French Government gives its minimum tariff rates to canned meats, table fr'iits, dried fruits, lard, manufactured and prepared pork meats, hops, paving blocks, staves, and. Ipgs and' sawed or squared timber and lumber from the United States. Germany : The United States gives the same tarifl' rates as those named in the treaty with France on tartar, brandies, still wines, and |)aintings, and the German Government gives to the United States the THE TARIFF— RECIPROCITY. 135 same tariff rates as those given to Belgium, Italy, Austria-Hungary, Rou- mauia, Russia, and Switzerland during the existence of the present tariff treaties with them, and annuls its regulations regarding dried fruits from the United States, providing in their stead a system of inspection opt- account of the San Jose scale. Portugal : The reductions on crude tartar, brandies, wines, and paint- ings accorded to Germany and Prance are given by the United States to Portugal, and the Portuguese Government gives to the United States as low rates of duty as those accorded to any other country, except Spain and Brazil, on breadstuffs, lard, mineral oils, agricultural implements, and certain machinery for manufacturing. Italy : The above-named rates with reference to tartar, brandies, still wines, and paintings are given by the United States, and a reduc- tion is made by the Italian Government on imports of cotton-seed oil, fish, machinery, scientific instruments, fertilizers, and skins. (5) The treaty with Cuba which went into operation December 27, 1903, gives a reduction of 20 per cent duty on all dutiable articles from Cuba entering the United States and a reduction ranging from 20 to 40 per cent on articles from the United States entering Cuba. Republican reciprocity in non-competing articles and in notliing else.— Hon. John Dalzell, in Congress, March. 1, 1904. Protection brinj^s together diversifled industries Tvhich never fail to vastly increase the personal inteligrence, indus- try, and wage earnings of the people.— H6n. Justin S. Morrill. Many of our great industries, including the silk industry, the pottery industry, the carpet industry, and the steel-rail industry, had only a nominal existence until adequately pro- tective duties ^vere imposed on competing foreign products. — James M. Sivanlc, in the American Economist. The present phenomenal prosperity has been under a tarift' which ivas made in accoi-danee with certain fixed and deiinite principles, the most important of w^hich is an avowed deterniination to protect the interests of the Ameri- can producer, business man, Ttage-^vorlier, and farmer alike. —President Roosevelt at Minneapolis, April 4, 1903. The 3,000,000 of pien who went out of employment with the revision of the tariff by the Democratic party found em- ployment in the enactment of the Dingley law^ by the Re- publican party, and a million and a half have been added to those who have employment in the industries of the conn- S." try.— Hon. P. P. Campbell, in Congresls, April 1, 1904 Those foreign countries vi'hich have adopted protection have, in the elements by which you have been accustomed to test the prosperity of a nation, improved in a greater ratio and more rapidly than ive have ourselves; and I have also to point out that this tendency, w^hich has become so mani- fest in recent years, is likely, as eves-y sensible man of busi- ness knows, to be accentuated as time goes on. — Hon. Jos. Chamberlain, at Liverpool, Oct. 27, 1903. The avowed policy of the National administration of tliese tveo Presidents has been and is to govern tlie Islands, having regard to the interest and Tvelfare of tlie Filipino people, and by the spread of general pi'imary and industrial education and by practice in partial political control to tit the people themselves to maintain a stable and wel- ordered government afforurely protective basis. By tliat I mean it should properly protect, against foreign competition, and aft'ord a reason- able profit to all manufactui'ers, farmers, and business men, but should not be so high as to furnish a temptation to -the forntatlon of monopolies to appropriate the undue profit of excessive rates. — Hon. Wm. H. Taft, at Ivansas City, Mo. One vital, dominating fact confronts the Democratic party ^tvhich no oratory, ^vhich no eloquence, -which no rhetoric can obscure: BRYAN'S NOMINATION MEANS TAFT'S ELECTION.— New York World. Uft THE TARIFF— RECIPROCITY, «0 05 m J^ Q < o 1-1 t^ C/J .ci Z < ^ to r^ •S i$ < ffi s si -3 as o ^x •<■* I I W 05 00 1^ (M »f-l I l©«i-H50l-. cs 'r»j I I e«5 C7 w 5o ift Q ift I I ro «D 1^ o »»• eg i 1 05 »p 10 « w • o I I «e I* IP Si .-I 2 Sb I I 36 iM o i-i 00 -30 ' 1 3! !c 22 00 5 QO 1 1 CO 10 O to OJ •^55 03 e8iooot^coc3i--r~ec'^ C8oOmiPM»lOCZ3t^t^t^i-l -2.-ii35t~->-5oar)mooooc<5 "QKSOooi-iooot-aSi-iao Q (NcocxT cro"t--''i-rc "-I "L' M -■■ irv CD i~ 00 Cfecr«cjCMr!C»cnffic-. oococo.»aD30oooooox O -M in ir CO (M 00 35 CO rH 1^ I- I- CO ir"M C5 (M O CD T-l O I-- O CO OJ CO O "M as Q » < C3 CO Co'cDOO >0 iClO (M O I -3 O C«5 -t< CO 00 •r-irHCOOiiMCOCD-frei- 2 "^^^aS 1^ tH CO 1-1 CO 05 O 05 K3gO0CO-H-^(N©IMCO-i< — OiPeot^r-^cocot-^cor^ Q GO 00 CO CO CD CO I^ IM t^ CO eo'»ot30 • >>] -" CO CO ir 35 00 CO CO CO ^ 'f't^Oie^fo t-Tco'o" 00 r-T 22 ^ "* 5o r^ ^^ 0^ t^ in i* m Q ,H r-l -H f-H ,H -H r-( (N MOOtO(MQOOO>0 .C5?Or-IO-*rHinci(5m(N70t^T-lt-Wt-COe)S5*5 5 j^ M^(>3^o CO t^ CO CO ic o_-* T-i o M< t^__-* to -* !M CO 00 O ^ c2 -* i-< O of 50 o ■* ir C5 53 icoco CO CO it-'-h^'cd'o'o" ;5-rt<'*05CO(MCO(N»OOOCOCOi-ICDlCLOOOOOCO©COo5 O ^■'pH*^r^c-*(Neoi-(i-ioo'*<05o coooocoiri-*rHt^ioos-«rH®ir!co(Ms^a)iceo© j^ ift i-H t~ rH S^ MO r-l i-H «S1 iMQ0»-.0 O tC (» t» oT t» 00 00 r^ 00 1^ 00" 00 00' 00 oT o* oT o" oT o CO 0(MaOf0^O(MC0r-lr-l'»50«0O ^ M i-H >A T»< oq -«i^5D O IC 10 O -<< -*r^Oi(Mt-i-1'<>Jr-l© is '"^ !:::! S o'S' SS '"' 2S ^ ^ ic cfco m cc i- od i-hco"© S3-+i005in05COtOOr-li35(Mf^CO&CSCOi— 'OOO 3l»J>C0i-l(Mr-lOlMO<0I^OOl--.00t^0iC0^«3lS o .'.^.^.-.-.-.^ .-^-^-^^ oo^QO^MOosr^o-^irco-^iot^t^OOs-^t-o CO?Om5COCOcpt^l^CO-*Ot^^OQGOOtOCOOOS j^-!H^rHC»0_l-^t- ■+tOCft inrHI>^«5t-*CT, ^ rl t^ r4 5 >- CO c^'co CO o in o'Vo's^ToTic Gor-Tco'i-T co'co'i-Hr-To :3i^i»moocoiriMi^Q5i--t>r-T-ia>-*co(Na5'M^Q MOO'-l-Hl-.kft-^CDi-lcnO'-lOOlQOMXir-lftrHQ .o«oos:rHooi-(-*ocoin»r5oorHcof-oicaoT-iO 2 t- O CO '>3" I^ t~ in CO O O OJ CDl-- (m"o3 OD r f"© CO Q S'^2i~c:o5ocot-?oa5-j'ooi-iocibc^co-toeoocooiai©(MrH©i-ioo-*c»5cocco500C-. «5 rHtO©r-ICOCO(MOJMr-tm©«0!Clftt-J--l^QptOO t^-*05^I>C0t^05MO5DC025c0(MC>Ql-O50O m '^'^.^^^^ ^."^.'^^* '^ ^''^ "^ '"^'~' «^ 55 CO -^ I— © ^:icpr-lnlf^t^©-fcooO(^^^n•»»^©^/5co^r^cjococoao© _raro'^in©mQ50coo«05i-i(Mcoi-oi--^r^go Q lfilC-^r-l->*r-lr-li-(r-ICOCOCOl35lft-^t^lOT-ICD© r-t^^C00-HlOlC© 1^ io i-H © cft ei?5-*fH(>3ift?2ooi-iookn.erat^00 1^i-l(Miri»; CO«D©CTS(Mi-ICOT-l-*cO-*-*©t-IQO^OO.-iOm( |eoi5^__ioeo_35T-ico!i(Mwoocor^C50Jcoa;i'-i I oi irt 3; oi (N :i;"io (M to i>r^"r-r |l3>(MO5r-IOlCOt^00t~00X:^OlOlfN©CO© J rH rH ^'' ^ ^ 5>] 5,," ^' 5.) j^f - ^ T-l - 50 © r^ -* >-i 0-1 ;^ © i-H I- w iB 1^ 1^ CJS CO ( ^ CO '^ m 1 CS rH C5 -H < — < a> 05 CO C l(N CO CO iH rH 5oSoo©( bCO-^OOmCDCOi-HCOl^! 1<^ iOt HCO«D-*l'-i-i' 5C0(MO5-*CO©C»lCC0i '^ ^J-> viJ ^-1 VJ l-^ ix:^ C^J 5J ug (?r2 CM 03 "^ (?f3 ^^ UU ITT 'r^ *ij ^^ 10 O rH oT O^ ■^<' 10 cf ©" (^f '^^ rH 5J' (N co" © i-J ^' ' -T Og © XI -* 00 rH CO 1^ oq c~ xi '-0 ici T-H © rH C-. o ® 5C CO '■■- 25 ©cO(^5cOrHm(^■IcD©cooOrH-»■lCo^r^•o©'^:'■Xlr^ ^C](MC<10q CO !M C^ 3 r-TtOo'fN (N '^-^'ir (M ^ in (Nh- < ^0»r-HlAi-Hrt00(MOOO0>-w't^< OP I 5«, a52 CBQQ si rt g ig ii§ g s? s? s s§ ^'^ g? s ? a«0(Ni5^0>©r~C0rH'ti>ti(Mt-C^< I rH «5 -^ a> 55 «o rH i-H «o o o f>- en c ic 00 00 I- li^ o . T ;=i in -f 53 in oiift Q HflIM50r-5ig:ejo0ff0oci-*qi< j^r-l c5lC Cvl 55^0 05 0>_(N -* -^ '* ^ ^'tf-i'OJlOroCOT-Hr-iaOt-COOJO' > C: IM 00 O O t^ O.rH CO '^ CO ■ 3m(M'Oi--i-HO-»iooo-*co-)'«j« OJi-S > t~ C-3 tM CO lO C 00 00 O >a) -a® V u u s 0-3 o_o o "E'iil'i::; a> OJ 3 caa « K S *^opIe can strive for, anti any means by tvhich a suitor, however unpopular or poor, is deprived of enjoyin^jir this is to be condemned. It is important, how- ever, that appeals to judicial remedies should be limitevill not use them merely to delay and so clogr eflicient and Just executive or legislative «,otlon. —Hon. Wm. H. Taft, at Columbus, Ohio. A protective tariff unquestionably increases the rewards of labor (a) by creating: a demand for skilled labor, (b> by diversifying, the kinds of labor in a country and thus diiTer- entiatiuK- both demand and supply, and (c) by making: for producers of every kind a home market. This increase of the laborer's reward is not confined to the protected indus- tries, but elevates wa«:es in every sphere (a) by the sympa- thetic effect of hijQTh ^vages generally, and (b) by withdraw- ing: from the nonprotected industries and from agriculture a 8ur|>lus of wagre-earners >vho rrould divide and reduce vragea If they competed against each other.— David J. Hill, D. D.. L.L. D., Bx-presideiit University of Rochester and. present Ambassador to Germany. THE TARIFF— REOIPBOCITT WITH CANADA. 139 Commerce between the United States and Canada, 1850 to 1908 [OfQcial figures from Bureau of Statistics.] Year ending June 30- Exports to Canada. Imports to Canada. Excess of— Exports. Imports. 1850 Dollars. 9.515.991 11,787,092 10,229,608 12,423,121 24,157.612 27,741,808 29,025,349 24,138,482 23,604,526 28,109,494 22,695,928 22,676,513 20,573,070 27,619,814 26,574,624 28,829,402 24,828,880 21,020,302 24,080,777 23,381,471 25,339,254 32.276,176 29,411,464 32,534,984 41,827,904 34,547,219 33,375,719 87,418.315 .37.146,682 29,604.385 29.460,257 87,903,822 36,500,403 44,417,110 44,306,196 38,245,634 33.462,800 34,988,110 35,882,383 40,607,561 40,282.108 ■ 38.147,778 43,299,787 46,794,332 68,664,094 52,854,769 59,687.921 64,928,821 83,714,086 87,974,961 95,319,970 109,642,993 123,266,788 105,789,214 131.234,985 140,529,581 156,736,685 183,206,067 Dollars. 5,179.500 5,279,718 5.469,445 6.527,559 8.784,412 15,118,289 21,276,614 22,108,916 15.784,836 19,287,565 23,572,796 22,724,489 18,511,025 17,484,786 29,608,736 33,264,403 48,528,628 25.044,005 26,261.379 29.293,766 36,265,328 32,542,137 36,346,930 87,175,254 84.173,586 27.867.615 28,805,964 24,164,755 25.044.811 25.719,771 82,988.564 37,684,101 50,775,581 44,294,158 . 38,399,835 36.695,685 37,304,036 87,847,277 42,924,554 42,738,074 39,042,977 39,087.782 34,954,203 37,777,463 30,790,916 86,574,327 40,887,565 40,309,371 81.870,486 81,220,967 39.369,074 48,076,124 54,781.418 42,482,163 51,562,791 62,469,632 68,237,653 73.334,615 Dollars. 4.336,491 6.490,374 4,760,163 5,905,038 15,288,996 12,623,519 7,748,735 2,029,566 7,819,690 8,821,929 Dollars. 1851 1852 1853 - 1854 1855 a 1856 a 1857 a 1853 a 1859 a 1S60 a 876,868 1861 a 2"062^0l5" 10.135,a28 47,976 1863 a 1864 a 3,034,112 1865 a 1866 a 1867 4,435,001 23,699,748 4.023,703 1868 - 2,180,602 1869 _ 5,912,295 1870 _ 10,926,074 1871 265,961 1872 6,935,476 1873 _ 7l654'3i8"' 6.679,604 4,569,755 13,253,560 12,101.871 3,884,614 4,640,270 1874 1875- — _ 1876 1877 _ 1878 1879 1880 3,528,307 1881 219.221 1882 14,275,178 1883 122,952 5,906.361 1,549,949 1,239.131 8^345^584" 9.016,869 25,873.178 16,280,442 18,800,356 24,619,450 51,843,600 56,753,994 55,950,896 61,566,869 68,485,370 63,307,051 79,682,194 78,059,949 88,499,032 109,871,452 1884 1885 1886 1887 -•- 1888 1889 ___- 3,841,236 2,859,167 7.042.171 2,130.513 1890 1891 .. 940.004 1892 1893 1S94 1895 ,- 1896 _ 1897 _ ■ 1898 1899 . 1900 - 1902 _ 1903 , 1901 1904 1905 _ 1906 1907 _ a Period of reciprocal trade. Protection alone insnres American labor against Enropean panper wag-es.— Former Senator Casey, In tlie American Economist. Tlie civilized tvorld substantially protects itself, tbns forcing ns to protect onrselves. — Hon. D. B. Henderson, in tbe American Economist. We ask tbat sober and sensible men compare the Tvork- ings of tbe present tariif laTv and tbe conditions ^vbicb ob- tain nnder it witb tbe workings of tbe preceding tariif law of 1894 and the conditions which that tariff of 1894 helped to bring about.— President Roosevelt's speech accepting 1904 nomination. I believe tbat a navy is the greatest insurer of peace that we could possibly have— -a navy commensurate vrith our resources, and commensurate Tvith our coast line, and com- niensurate Tvith tbe number of dependencies Tve have, and commensurate vrith our population, and commensurate -with our influence as a world power.— Hon. Wm. H. Taft, at Cleve- land, Ohio. 140 THE TARIFF— PARTY PLATFORMS ON. Trade of the United States with Cuba, ISSO to 1908. Fiscal year ending June 80— Imports Into the United States from— Exports from the United States to- 1880 -- Dollars. 65,423,018 63,003,401 70,450,652 65,544.534 57,181,497 42,30(5,093 51,110,780 49,515,431 49,319,087 52,130,623 53,801,591 61,714,395 77,931,671 78,706,506 75,678,261 52,871,259 40,017,730 18,406,815 15,232,477 25,408,828 31,371,701 43,423,088 34,691,681 1 62,942,790 76,983,418 86,301,259 84,979,821 97,441,690 DoUnrs. 11, 22'), 699 l&Jl 11,361,585 ias2 - 12,131,821 laai - 15,103,703 isai- - 10,910,753 1885 - - 9,006.160 1888 10,409,170 1887 .. 10,546,411 1888 10,053,560 188) 11,691,311 1890 _. 13,084,415 ^woi_ __ __ 12,224,888 1892„ 17,953,570 1893 24,157,698 1891 __ 20,125,321 1895 12,807,661 181)6 7,530,880 180< 1898 _ ._ 8,259,776 9,561,656 1819 18,616,377 1900 _- 26,513,400 1901 25,964,801 1902 26,623,500 1903 21,761,638 1901 .. 27,377,465 190) 38,380,601 1906 47,763,688 1907 . 1)08 . 49.305,274 TARIFF IN REPUBLICAN AND DEMOCRATIC PLATFORMS 18GO to 1908. REPUBLICAN TARIFF PLANKS. ' 1860 While providing revenue for the support of the General Government by duties upon imports, sound policy requires such an adjustment of these imposts as to encourag-e the development of the industrial interests of the whole country ; and we com- mend that policy of national exchanges which secures to the working-men liberal wages, to agriculture remunerative prices, to mechanics and manufacturers an adequate reward for their skill, labor, and enterprise, and to the Nation commercial pros- perity and independence. (1864 and 1868 no special reference to tariff.) 1872 The annual revenue, after paying current expenditures, pen- sions, and the 'interest on the public debt, should furnish a moderate balance for the reduction of the principal, and that revenue, except so much as may be derived from a tax on tobacco and liquors, should be raised bj'^ duties iipon importa- tions, the details of which aiwJuld be so adjusted as to aid in securing remunerative wages to labor, and promote the indus- tries, prosperity, and growth of the whole country. 1876 The revenue necessary for current expenditures and the obligations of the public debt must be largely derived from duties upon importations, which, so far as possible, should be adjusted to promote the interests of American labor and ad- vance the prosperity of the whole country. 1880 We reaffirm the belief avowed in 1876, that the duties levied for the purpose of reven^ should so discriminate as to favor American labor. TTJE TARIFF— PARTY PLATFORMS ON. 141 1884 It is the first duty of a good Government to protect tiie rights and promote the interests of its own people. The largest diversity of industry is most productive of general prosperity and of tlie comfort and independence of the people. We, there- fore, deiuand that the imposition of duties on foreigu imports shall be niade not "for revenue only," but that in raising the requisite revenues for the Government such duties shall be so levied as to afford security to our diversified industries and protection to the rights and wages of the laborer, to the end that active and intellir^ent labor, as well as ca;)ital, may have its just reward and the laboring man his full share in the national l)rosperity. Against the so-called economic system of the Demo- cratic party, which woi.M degrade our labor to the foreign staudaivl. we entei* our earnest protest. The Democratic party has failed completely to relieve the people of the burden of unnecessai'y taxation by a wise reduction of the surplus. The I'.epublican party pledges itself to correct the inequalities of the tariff and to reduce the surplus, not by the vicious and indiscriminate process of horizontal reduction, but by such methods as will relieve the taxpayer without injuring the labor or the great productive interests of the country. We recognize the importance of sheep-husbandry in the United States, the serious depression whi-ch it is now experiencing and the danger threatening its future prosperity ; and we, therefore, respect the demands of the representatives of this important agricul- tural interest for a readjustment of duties upon foreign wool in order that such industry shall have full and adequate pro- tection. 1888 W^e are uncompromisingly in favor of the American system of protection ; we protest against its destruction as proposed by the President and his party. They serve the interests of Europe ; we will support the interests of America. We ac- cept the issue and confidently appeal to the people for their judgment. The protective system must be maintained. Its abandonment has always been followed by general disaster to all interests, except those of the usurer and the sheriff. We denounce the Mills bill as destructive to the general business, the labor, and the farming interests of the country, and we heartily indorse the consistent and patriotic action of the Re- publican representatives in Congress in opposing its passage We condemn the proposition of the Democratic party to place wool on the free list, and we insist that the duties thereon shall be adjusted and maintained so as to furnish full ntid adequate protection to that industry throughout the United States. The Eepublican party would effect all nci de 1 reduction of the national revenue bj^ repealing the taxes upon tobacco, which are an annoyance and burden to agriculture, and the tax upon spirits used in the arts and for mechanical purposes, and by such revision of the tariff laws as will tend to check imports of such articles as are produced by our people, the production of which gives employment to our labor, and re lease from import duties those articles of foreign production (except luxuries) the like of which cannot be produced at home. If there shall still remain a larger revenue than is requisite for the wants of the Government, we favor the entire repeal of internal taxes rather than the surrender of any part of our protective system, at the joint behests of the whisky trusts and the agents of foreign manufactures. 1892 We reaffirm the American doctrine of protection. We call attention to its growth abroad. We maintain that the pros- perous condition of our country is largely due to the wise rev- enue legislation of the last Tiepublican Congress. We believe that all articles which cannot be produced in the United States, except luxuries, should be admitted free of duty, and that on all imports coming into competition with the products nt American labor there should be levied duties equal to the dif- 142 TH^ TARIFF—PARTY PLATFORMS ON. terence between wages abroad and at home. We assert that the prices of manufactured articles of general consumption have l)een reduced under the operations of the tariff act of 18i)0 We denounce the eflPorts of the Democratic majority of the House of Kepresentatives to destroy our tariff laws by piece-' meal, as manifested by their attacks upon wool, lead, and lead ores, the chief product of a niunber of States, and we ask the people for their judgment thereon. 1896 We renew and emphasize the allegiance to the policy of protection as the bulwark of American industrial independence and the foundation of American development and prosperity. This true American policy taxes foreign products and en- courages home industry ; it puts the burden of revenue on foreign goods ; it secures the American market for the Ameri- can producer; it upholds the American standard of wages for the American workingman ; it puts the factory by the side of the farm, and makes the American farmer less dependent on foreign demand and price; it diffuses general thrift, and founds the strength of all on the strength of each. In its reasonable application it is just, fair, and impartial ; equally opposed to foreign control and domestic monopoly, to sectional discrimina- tion, and individual favoritism. We denounce the present Demo- cratic tariff as sectional, injurious to the public credit, and de- structive to business enterprise. We demand such an equitable tariff on foreign imports which come into competition with American products as will not only furnish adequate revenue for the necessary expenses of the Government, but will protect American labor from degradation to the wage level of other lands. We are not pledged to any particular schedules. The question of rates is a practical question, to be governed by the conditions of the time and of production ; the ruling and uncom- promising principle is the protection and development of Ameri- can labor and industry. The country demands a right settlement, and then it wants rest. 1900 We renew our faith in the policy of Protection to Ameri- can labor. In that policy our industries have been established, diversified, and maintained. By protecting the home market competition has been stimulated and production cheapened. Opportunity to the inventive genius of our people has been secured and wages in every department of labor maintained at high rates, higher now than ever before, and always dis- tinguishing our working people in their better condition of life from those of any competing country. Enjoying the blessings of the American common school, secure in the right of self- government, and protected in the occupancy of their own mar- kets, their constantly increasing knowledge and skill have en- abled them to finally enter the markets of the world. We favor the associated policy of reciprocity so directed as to open our markets on favorable terms for what we do not ourselves produce in return for free foreign markets. 1904 Protection which guards and develops our industries, is a cardinal policy of the Republican party. The measure of protection should always at least equal the difference in the cost of production at home and abroad. We insist upon the maintenance of the principle of protection, and, therefore, rates of duty should be readjusted only when conditions have so changed that the public interest demands their alteration, but this work cannot safely be committed to any other hands than those of the Republican party. To intrust it to the Demo- cratic party is to invite disaster. Whether, as in 1893, the Democratic party declares the protective tariff unconstitu- tional, or whether it demands tariff reform or tariff revision, its real object is always the destruction of the protective sys- tem. However specious the name the purpose is ever th.% TffE TARIFF— PARTY PLATFORMB OV. 143 same. A Democratic tariff has always been followed by busi- ness adversity ; a Republican tariff by business prosperity. To a Ilepublican Congress and a Republican President this great rjuestion can be safely intrusted. When the only free trade country among the great nations agitates a return to protec- tion the chief protective country should not falter in maintain- ing it. 1908 The Republican Party declares unequivocally for the revision of the tariff by a special session of Congress immediately follow- ing the inauguration of the next President, and commends the steps already taken to this end in the work assigned to the appro- priate committees of Congress which are now investigating the operation and effect of existing schedules. In all tariff legislation the true principle of protection is best maintained by the impo- sition of such duties as will equal the difference between the cost of production at home and abroad, together with a reasonable profit to American industries. We favor the establishment of maximum and minimum rates to be administered by the Presi- dent under limitations fixed in the law, the maximum to be avail- able to meet discriminations by foreign countries against Ameri- can goods entering their markets, and the minimum to represent the normal measure of protection at home, the aim and purpose of the Republican policy being not only to preserve, without ex- cessive duties, that security against foreign competition to which American manufacturers, farmers and producers are entitled, but also to maintain the high standard of living of the wage- earners of this country, who are the most direct beneficiaries of the protective system. Between the United States and the Philip- ]nnes we believe in a free interchange of products with such limi- tations as to sugar and tobacco as will afford adequate protection *o domestic interests. DEMOCRATIC TARIFF PI.ANKS. 1856 The time has come for the people of the United States to de- clare themselves in favor of free seas and progressive free trade throughout the world, and, by solemn manifestations, to place their moral influence at the side of their successful ex- ample. 1860 We, the Democracy of the Union, in convention assembled, hereby declare oiir affirmance of the resolutions unanimously adopted and declared as a platform of principles by the Demo- cratic Convention in Cincinnati in the year 1856, believing that Democratic principles are unchangeable in their nature when applied to the same subject-matters, 1868 A tariff for revenue upon foreign imports, and such equal taxation under the Internal Revenue laws as will afford inci- dental protection to domestic manufactures, and as will, with- out impairing the revenue, impose the least burden upon and best promote and encourage the great industrial interests of th« country. 1872 Recognizing that there are in our midst honest but irre- concilable differences of opinion with regard to the respective systems of protection and free trade, we remit the discussion of the subject to the people in the Congressional districts, and to the decision of the Congress thereon, wholly free from exe- cutive interference or dictation. 1876 We denounce the present tariff, levied upon nearly 4.000 articles, as a masterpiece of injustice, inequality, and false pretense. It yields a dwindling, not a yearly rising revenue. 144 mm TARIFF— PARTY PLATFORM F^ ON. It has impoverished many iiichistrios to subsidize a few. It prohibits imports that mig-ht purchase the products of Ameri- can hibor. It has degraded American commerce from the first to an inferior rank on the hig-h seas. It has cut down tlie sales of American manufactures at home and abroad, and depleted the returns of American ag-ricidture — an industry followed by half our people. It costs the people five times more tba i it pro- duces to the Treasury, obstructs the process of production, and wastes the fruits of labor. It promotes fraud, fosters smugg-lingf, enriches dishonest otticials, and bankrupts honesL merchants. We demand that all custom-house taxation shall be only for revenue. 1880 A tariff for revenue only. 1884 The Democratic party is pledged to revise the tariff in a spirit of fairness to all interests. But, in making the reduction in taxes, it is not proposed to injure any domestic industries, but rather to promote their healthy growth. From the founda- tion of this Government taxes collected at the custom-house have been the chief source of Federal revenue. Such they must continue to be. Moreover, many industries have come to rely upon legislation for successful contin\iance, so that any change of law must be at every step regardful of the labor and capital thus in- volved. The process of the reform must be subject in the execu- tion to this plain dictate of justice— all taxation shall be limited to the requirements of economical government. The necessary reduction and taxation can and miist be effected without de- priving American labor of the ability to compete successfully with foreign labor and without imposing lower rates of duty than will be ample to cover any increased cost of production which may exist in conseqiience of the higher rate of wages prevailing in this country. Sufficient revenue to pay all the expenses of the Federal Government economically adminis- tered, including pensions, interest, and principal of the public debt, can be got under our present system of taxation from the custom-house taxes on fewer imported articles, bearing heav- iest on articles of luxury and bearing lightest on articles of necessity. We, therefore, denounce the abuses of the existing tariff, and, subject to the preceding limitations, we demand that Federal taxation shall be exclusively for public purposes, and shall not exceed the needs of the Government economically administered. 1888 Our established domestic industries and enterprises should not and need not be endangered by the reduction and correction ol the burdens of taxation. On the contrary, a fair and careful revision of our tax laws, with due allowance for the vlifference between the wages of American and foreign labor, must promote and encourage every branch of such industries and enterprises by giving them assurance of an extended market and steady and continuous operations. In the interests of American labor, which should in no event be neglected, the revision of our tax laws contemplated by the Democratic party should promote the advantage of such labor by cheapening the cost of necessaries of life in the home of every workingman, and at the same time securing to him steady and remunerative employment. Upon this question of tariff reform, so closely concerning every phase of our national life, and upon every question involved in the problem of good government, the Democratic party submits its principles and professions to the intelligent suffrages of the American people. 1892 We denounce Republican protection as a fraud, a robbery of the great majority of the American people for the benefit of the few. We declare it to be a fundamental principle of the Demo- cratic party that the Federal Government has no constitutional TEE TARIFF— PARTY PLATFORMS ON. 145 power to impose and collect tai'iff duties, except for the pur- poses of revenue only ; and we demand that the collection of such taxes shall be limited to the necessities of the Government when honestly and economically administered. We denounce the McKinley tariff law enacted by the Fifty-first Congress as the culminating- atrocity of class legislation ; we indorse the efforts made by the Democrats of the present Congress to modify its most oppressive featui'es in the direction of free raw ma- terials and cheaper manufactured goods that enter into general consumption, and we promise its repeal as one of the beneficent results that will follow the action of the people in trusting posver to the Democratic party. Since the McKinley tariff went into operation there have been ten reductions of the wages of the laboring man to one increase. We deny that there has been any increase of prosperity to the country since that tariff" went into operation, and we point to the dullness and distress, to the ^vage reductions and strikes in the iron trade as the best pos- sible evidence that no such prosperity has resulted from the McKinley act. We call the attention of thoughtful An ericans to the fact that after thirty years of restrictive taxes against the importation of foreign wealth in exchange for our agri- <'ultural surplus the homes and farms of the country have be- come burdened with a real estate mortgage debt of over two thousand five hundred million dollars exclusive of all other forms of indebtedness: that in ojie of the chief agriciiltural States of the West there appears a real estate mortgage debt averaging $165 per capita of the total population, and that similar conditions and tendencies are shown to exist in the other agricultural exporting States. We denoimce a policy which fosters no industry so much_ as it does that of the sheriff. 1896 We hold that tariff duties shoidd be levied for purposes of i-eveniie, such duties to be so adjusted as to operate equally tla-oughout the country and not iliscriminate between class or section, and that taxation should be limited by the needs of the Government honestly and econonrically administered. We de- nounce, as disturbing to business, the Kepublican threat to re- ^n;ore the McKinley law, which has been twice condemned by the people in national elections, and which, enacted under the false plea of protection to home industry, proved a prolific breeder of trusts and monopolies, enriched the few at the ex- jense of the many, restricted trade, and deprived the producers of the great American staples of access to their natural markets. 1900 We condemn the Dingley Tariff law as a trust-breeding measure, skillfully devised to give the few favors which they do not deserve and to j)lace upon the many burdens which they should not bear. We reaffirm and indorse the princijiles of the .National Democratic platform adopted at Chicago in 1896, 1904 'I'lifc Democratic party has been, and will continue to be, the consistent opponent of that class of tariff legislation by which certain interests have been permitted, through Congres- sional favor, to draw a heavy tribute from the American peo- ple. This monstrous perversion of those equal opportunities which our political institutions were established to secure has caused what may once have been infant industries to become the g-reatest combinations of capital that the world has ever known. These especial favorites of the g-overnment have, through trust methods, been converted into monopolies, thus bringing to an" end domestic competition, which was the only alleged check upon the extravagant profits made possible by the protective system. These industrial combinations, by the financial assistance they can give, now control the policy of the Republican .party. We denounce protectionism a^ a robbery of the many to enrich the few, and we favor a tariff limited to the needs of the Government, economically, effectively, and con- stitutionally administered, and so levied as not to discriminate 146 THE TARIFF—PARTY PhATFiUiM^ ON. against any industry, class, or section to the end that the bur- dens of taxation shall be distributed as equally as possible. We favoi" a rt^visiou and a jjfvadual reduction of the tariff by the friends of the masses antl for tlve coiunion weal, and ui" by the friends of its abuses, its extortions, and its discrimina- tions, keeping- in view the idtimate end of "equality of burdens oud equality of opportunities" and the constitutional purpose of mising a revenue L5y taxation, to wit, the suijjjort of the J'Vd> •- al Government in all its integrity and virility, but in simpli- city. 1908 We welcome the belated promise of tariff reform now offered by the Republican party in tardy recognition of the righteous- ness of the Democratic position on this question ; but the people can not safely entrust the execution of this important work to a party which is so deeply obligated to the highly, pro- tected interests as is the IJepublican party. We call attention to the significant fact that the promised relief is postponed until after the coming election — an election to succeed in which the Eepublican party must have that same support from the bene- ficiaries of the high protective tariff as it has always hereto- fore received from, them ; and to the further fact that during years of uninterrupted power no action whatever has been taken by the Eepublican Congi-ess to correct the admittedly existing tariff iniquities. W^e favor the immediate revision of the tariff by the reduction of import duties. Articles entering into com- petition with trust-controlled products sho'^jd be placed upon the free list, and material reduction should be made in the tariff' upon the necessaries of life, especially upon articles competing with such American manufactures as are sold abroad more cheaply than at home ; and gradual reduction shourl be made in such other schedules as may be necessary to restore the tariff to a revenue basis. Existing duties have given to the manu- facturers of paper a shelter behind which they have organized combinations to raise the price of pulp and paper, thus imposing a tax upon the spread of knowledge. We demand the immediate repeal of the tariff on wood pulp, print paper, lumber, timber and logs, and that these articles be placed upon the free list. PETROLEUM DUTIES. Tl&e Countervailing Dnty on Petroleum— Originated In Demo- cratic Tariff Act. i Much criticism has been made in recent years of the fact that the Dingley tariff law, so called, the law now in operation, places a duty on petroleum, or mineral oil, imported from countries which impose a duty on petroleum or its products exported from the United States ; and the charge has been made by the Demo- crats that this was placed in the Dingley Tariff Act at the in- stance of, or through the secret workings of, the Standard Oil Company. If this be true it merely illustrates the danger of accepting, even in a single instance, a precedent or plan es- tablished by the Democratic party, since this proposition of placing a countervailing duty on petroleum from, countries which impose duties on like products from the United States first made its appearance in the Wilson tariff Act of 1894. The provisions of the Wilson and Dingley Acts upon this subject are given below in parallel columns. Tariff Act of August 27, 1894. Tariff Act of July 24, 1897. (Wilson Tariff Act.) (Dingley Tariff Act.) "Petroleum, crude or refined, "Petroleum, crude or refined, free : Provided, That if there be im- free : Provided, That if there be im- ported into the United States crude ported into the United States crude petroleum produced In any country petroleum or the products of crude which Imposes a duty on petroleum petroleum produced in any country or its products exported from the which imposes a duty on petroleum United States, there shall be levied, or its products exported from the collected and paid upon said crude United States, there shall in sucli petroleum or its products so im- cases be levied, paid, and collected ported, forty percentum advalorem." a duty upon said crude petroleum or its products so imported equal to the duty imposed by such coun- try." THE TARIFF. 14T It will be noted by a careful examination of the above that the countervailing duty proposition of the Dingley Act is pre- cisely that of the Wilson Act, except that the Wilson Act made the rate of duty 40 per cent irrespective of the rate enforced against American petroleum, while the Dingley jict makes the rate of duty the same as that imposed upon our petroleum by the country from which the product is imported. Number and Average Price and Total Valae of Slieep in. tlie United States in eacli year from 1880 to 1907. This table shows the number and total value of sheep in the United States in each year from 1880 to 1908 and the aver- age value per head on January 1 of the years named. It will be noted that the number, the value per head, and the total value fell steadily from January 1 during the entire Democratic and low tariff period ; the number falling from over 47 millions to less than 37 millions, the price per head, from $2.66 in 1893 to $1.58 in 1895 ; and the total value, from 125 million dollars in 1893 to 65 millions in 1896 ; while with the restoration of pro- tection the number, price per head, and total value rapidly ad- vanced : the number in 1908 being 541/2 millions, against less ^^han 37 millions in 1896; the price per head, $3.89, against $1.70 in 1896, and the total value 212 millions, against 65 millions in 1896 ; the value of the sheep in the United States having thuJi more than trebled in the 12 years since the election of Mc- Kinley. [Prom report of Department of Agriculture.] Year Number of - heep. Average price per head. Total value. January 1— 1880 40,765,900 43,569,899 45,016,224' 49,237,291 50,626,626 50,360,243 48,322,331 4t,759,.S14 43,514,755 42,599,079 44,336,072 43,431,136 44,9.38,365 47,273,553 45.048,017 42,291,034 38.298,783 33,818,643 37,658,960 39,114.453 41,883.065 59,756,718 62,039,091 63.964,876 51,630,144 45,170,423 50,631,619 53,240,282 51,631,000 $2.21 2.39 2.37 2.53 2.37 2.14 1.91 2.01 2.05 2.13 2.27 2.50 2.. 58 2.66 1.98 1.58 1.70 1.82 2.46 2.75 2.93 2.98 2.65 2.63 2.59 2.82 3.54 3.8t 3.88 $90,230,537 1881 -— 101,070,861 1882 ' ■ - 106,595,954 1883 — 124,365,835 1884 ...^ 119,902,708 1885 -- 107,960,650 1886 - 92,443,867 1887 -- 89,872,839 1888 89,279,926 1889 --•- 90,640,369 1890 — - 100,659,761 1891 108,397,447 1892 - — 116,121,290 1893 125,909,264 1894 ----- 89,186,110 1895 66,685,767 1896 - 65,167,735 1897 ,— — - 67,020,942 1898 92,721,133 1899 __ -- 107,697,530 1900 . — - 122,665,913 1901 178,072,476 1902 ^^- 164,446,091 1903 168,315,750 1904 133, 530, OM 1905 127,331,850 1906 - 179,056,144 1907 204,21Q>129 1908 211,736,000 Wliolesale Prices of Boot-s and Slioes, 1S07 to 1903. The purpose of this table is to give opportunity to de- termine whether an advance in prices of boots and shoes fol- lowed the enactment of the Dingley law, which placed a duty of 15 per cent on hides imported. It will be seen that after the Act had been four years in operation, prices were in many cases materially less than in the first week of 1897, and prior to the enactment of the Dingley law; that in certain cases prices in 1902 were unchanged, while some others showed but a slight advance, indicating that no general advance occurred in the price of boots and shoes by reason of the duty placed on hides by the Dingley law. vVhile prices advanced in later years coincidental! y with the advance in price of labor and materials, the fact that no 148 TEE TARIFF. advance occurred for four years after the imposition of the tariff on hides shows that that act did not affect home prices, but that recent advances are due to other causes. ^ O ^7 -^ a S ;» :S:^ ;^:df; jP^ :S MO) (N n Ol Ol (M ©J (N IN lO t^ t^ m r~ r^ ir> r I ra 'M "M (>3 C-l IM O) ( MM M « a-3 9> 0) ctf o iflOOl-'ftOOSOOOOOi r- 1>. i^ 1^ I ^ t^ i^ c^ 1^ t^ r^ i^ < 1 1^ i« irt lO OOt-Oor^l^!MC^t~OiC(Nirio(MC^ift ^2 bfid , 1^ ri Q in M ^ ift *>! r^i fNj ir t--- '>1! lO t^ lO IM t~ IM lO in O O "M S?30 OOOlOOOSOOOlOiOOr-lrHOOOOOOO I I I I I I i ! ! ^ij c'^^ij o'^-^jj q'^^jj a"»-.^jj d Coal Production In tlie United Kinj^dom, Germany and tlie United StateH. This table, showing- the coal production and consumption in free trade United King-doni and protective Germany and the United States from 1875 to 1906. is given with the purpose of indicating the relative growth of industries in the two countries under protecti\e tariffs compared with that of free trade United Kingdom. It will be seen that the consumption of coal in free trade United Kingdom grew from 115 million tons to 174 mil- THE TARIFF. 149 lions; in protective Germany, from 47 million tons to 189 mil- lions; and in jjrotective United States, from 48 millions to 359 millions in the period under consideration. Goal production and consumption in the United Kingdom, Qer* many, and the United States, for the years named. United Kingdom. Germany. United States. Produc- Con- Produc- Con Produc- Con- Years. tion sumption tion sumption tion sumption In gross In gross in gross In gro^s in gross in gross ( tons of tons of tons of ton ot tons of tons of 2,240 lbs. 2,240 lbs. 2,240 lbs. 2,240 lbs. 46,810,000 2,240 lbs. 2,240 lbs.* 1875 133,306,000 115,304,000 37,049,000 46,739,000 47.892,000 LS80 146,969,000 123,067,000 58,185,000 56.102,000 63,823,000 60,670,000 1885- 159,351,000 128,585,000 72,513,000 69,612,000 99,250,000 106,832,000 1890-. 181,614,000 142,954,000 87,881,000' 89,364,000 110,867,000 125,117,481 1895 189,661,000 146,754,000 102,317,000 101,201,000 172,426,000 119,901,0:)0 1900 225,181,000 166.776,000 147,423,000 147,439,000 210,789,000 221,067.000 1!;01 219,017,000 101,261,000 150,603,000 149,736,000' 201,875.000 256, 374. W J 1)02 227, 09'), 000 166,694,000 118,222,000; 146,436,000 269,277,009 266,143,000 ia03 230,334,000 . 166,529,000 159,892,000 157,250,0001 319,068,090 312,00), or IWl 232,428,000 166,606,000 166,775,000 163,773,000 314,122,00a 306,136,000 rx)5-. 236,129,000 168,968,000 171,087,000, 170,218,000 350,615,000 342,571,000 lf)03 251.068,000 174,279.000 190,482,000 188,626,000| 369,783,000 359.131.000 * Inclusive of bunker coal laden on vessels in the foreign trade. Note. — The amount of British bunker coal loaded on vessels in the foreign trade not found prior to 1875. Trade Balances nnder Protective and Lo^v Tarifla, Respectively, 1790-1908. This table shows the excess of exports or imports in the trade of the United States in each year from 1789 to date, all years in which low tariffs were in operation being- shown in one column and all those in which protective tariffs were in operation shown in another column. In 49 of the 60 years of low tariffs imports exceeded exports, and the net excess of importations under low tariffs from 1790 to date was $514,954,941. In 36 of the 59 years of protective tariffs exports exceeded im- ports, the net excess of exports under protective tariffs being- $5,933,348,822, against a net excess of imports under low tariffs of $514,954,941. The excess of exports over imports in the fiscal year 1908 was the largest in the history of our commerce. Attention is especially called to the brief statement which immediately follows this table, comparing the net excess of ex- ports over imports in the 11 years since the inauguration of Presi- dent McKinley with the 109 years prior to his inauguration. It will be seen that the net excess of exports over imports from 1790 to March 1, 1891i, ivas $383,028,497, and the net excess of exports over imports from March 1, 1897, to March 1, 1908, is $5,550,550,- 773, or more than 14 times in tlie 11 years from 1897 to 1908 as much as in the entire 109 years preceding that date. I believe in the doctrine of protection because tbe facts of our national experience thorouftlily exemplify its trutli. No great American statesman, except the half-forg-otten leaders of the slave po^ver, have disowned the protective system.— Hon. J. P. Dolliver. in the American {Economist. If vre assume control over a people merely in the spirit of conquest and merely to extend our control and merely from the lust of po^ver, then we^ may be properly denounced as imperialists: but if wc assume control over a people for the benefit of that people and *vith the purpose of develop- ing: them to a self-jsfoverning- capacity, and with' the inten- tion of Kiving: them the riglit to becoine independent when they shall shoiv themselves lit. then the charge that ^ve are imperialists is utterly without foundation. — Hon. Wm. H. Taft, at Cleveland, Ohio. One vital, dominating- fact confronts the Democratic party T^-hich no oratory, ^vhich no elov1.s Under Prote«*ti«ii. Nel excess of imports under low tariffs .— . $Ti t.iJTi.'-M Net excess of exports under protective tarlfs..... .-_ 6.. 5)), 978. 021 JS^et excess of exp-rts over imii irts fr >ti r*-') to Mfirch 1. ISV 38.3.028.4)7 Net excess of exports over in^ports frniri Mnrch 1. 1S97, to March 1, 1908 _. ., 5,550.550..'';;! THE TARIFF AND REVENUE. 151 Surplus or Deficit under IjOtt and Protective Tariffs, Respectively, from 17«(> to 1fM>7. This table. shows the deficit or surplus of revenue in each year from 1790 to date, the years in which low tariffs existed being stated in one column and those in which protective tariffs ex- isted in another column. It will be noted that protective tariff's have produced a surplus of revenue in practically every year except those of war periods or some other extraordinary ex^pendi- tures such as the Panama canal. The deficit of the fiscal year 1908, while due in part to the heavy expenditures including the Panama canal, is chiefly the result of the unexpected falling off in importation of dutiable articles (and therefore of customs re- ceipts), the result of the filiancial depression beginning with Oc- tober, 1907. It will be noted that deficits occurred in 24 of the 57 years in which low tariffs were in existence and in but 15 of the 60 years of protection, and that nearly all these were war years. Tariffs and Revenues, 1790 to 1907. Years in which low tariffs and protective tariffs, respectively, have been in operation in the United States, showing the excess of expenditures or receipts of the Oovernment in each year. [Compiled from official statements of the Treasury Department.] Low tariffs. Protective tariffs. llscal year— Deficit. Surp us Fiscal year— Deficit. Surplus. 17 17 17 17 91_ 1 $1,312,499 1813 $17,841,442 23,53.^,3i)0 17,216,744 92 93 $4, 59;), 900 1814 [ War pe- 805,993 1815 - riod. 94 865.917 1,195,036 1816_— $16,480,630 5,983,640 1795 _ 1825-- 17 17 17 96 - 2,586,879 2,680.154 292,909 1826 ._ 8,222,575 97- 1827 6,827,198 8,369,087 98 "ljl9',0oV 1828 1799 - 1829 9,643,574 18 18 18 18 18 18 18 18 18 18 00 — 34,778 3,541,831 7,019,542 3,111,811 3,188,399 4.546,344 6,110,753 8,013,868 7,999,249 1830 9,702,008 01 1831. 13,289,004 02 1832 14,578,500 10,930,874 03 1833 04 1843 3,5 J9, 0)1 05 - 1844 6 837 148 06 — - 1845 7,034,278 1,214,392 07 . 1846 (half year) 1862 08 - 417,650.981 006, 63), 331 621,536,130 973,038,131 OQ 2,507,273 1863 1 War pe- 1810 909,461 6,244,594 1864 f riod 18 18 18 18 11 1865 1866 12 17 10,479,638 927,208 116 .317 354 13,108,157 1,566,543 3,031,370 1867 18 _ __ 1868 6,095 320 1819- 1869 35,997,658 1820 44,685 1,276,173 1870 102,. 302, 829 1821 ^ 1871. 1872 91,270,711 94,134,534 18 18 18 18 18 18 18 22- 5,231,996 5,834,036 23 1873 36.i)38,348 24 34- 8D2,4S9 1874 1875 - 1,297,799 3,164,365 17,857,274 ■19,958,632 9,397,379 35 1876 24,965,500 36 1877 39,666,167 20,482,149 5,374,253 68 678 864 ST 12,289,061 7,562,152 1878— 1879 1838 18 18 39 4,585,967 1880 40 4,834,402 9,621,657 5.158.689 1881 101 130 6")8 1841 1882 145,543 811 18 18 18 18 42 1883 ■ „ 132,879,444 46 (half year) 47— - 1,219,392 } ''zr 2.644,506 4,803,561 5,456,563 13,843.043 18,761,986 6,719,912 5,330,349 1,330,904 1881- 104,393,626 28,453,331 11,919,521 12,778,001 1885 63,463,775 48 1886 93.956,589 1849 1887. 103,471,098 1850 1888 119,612,116 IS 18 18 IS m — 1889 „ 105,053,443 52 1890 105,314,496 53 1891 - . 37,239,763 R4. 1892 9,914,454 1855 _ 1893 2,341,674 185fi 1894 69,803,261 38,047,247 89,111,560 18 IS 1« 57 1898- } ""rfoT- 58 27,327,126 16,216,492 7,146,276 25,173.914 42,895,223 25,203,246 18,052,455 1899 59 1900 79,536,060 IS 60_— 61 1901 1902 77,717,984 IS 91,287,376 IS 95 1903 1904 '411770^571' 23,001,228 54,297,667 1« T6 IS 97 1905 1906 25,669,322 1907- 84,236,586 1908 59,656,362 162 THE TARIFF— COMMERCE UNDER. Table No. 1 — Total value of imports and exportn into aud from the United States from October 1, 1180, to June SO, 1907, under low and protective tariffs, respectively' •c 2 S2 £S Fiscal year. •5 o 790. 791. 792- 793. 794. 795- 796. 797. 798. 799. 800. 801. 802. 803. 804. 805. 806. 807. 808- 809- .810- 811- 812. 813- 814. 815- 816- 1817- 818. 819- 820- 821- 822- 823- 824- 825- 826- 827. 828- 829- 830- 831- 832- 833- 834- 835. 839-. 840-. 841.. 842-. 813-. 8H-. 845- 846-. 847-. 848- 840.. 850- . 851- . 852.. 853-. 854.. 855-. 856-. 857- 858-. 859-. 860- . 861.. 867_. 868- 869.. 870.. 871- 872- 873-. 874.. 875-. 876.. Merchandise. Imports. $23,000,000 29,200,000 31,500,000 31,100,000 34,600,000 69,756,268 81,436,161 75,379,400 68,551,700 79,0,074 95,566,021 101,536,963 108,343,150 22,430,960 52,203,233 66,757,970 61,316,832 38,527,236 27,856,017 6,927,441 52,557,753 81,920,052 87,671,569 93,281,133 70,142,521 69,691,669 54,596,323 61,350,101 68,326,043 68,972,10) 90,738,333 72,890,789 74,309,947 64,021,210 67,434,651 71,670,735 72,295,652 81,520,603 87,528,732 102,260,215 115,215,802 124,338,704 111,443,127 104,978,570 112,251,673 123,668,932 111,817,471 99,877,995 82,825,689 105,745,832 106,040,111 109,583,248 156,741,598 138,190,515 140,351,172 144,375,726 188,915,259 166,984,231 203,489,282 237,043,764 218,909,503 281,219,423 203,823,760 272,011,274 292,902,051 333,576,057 219,553,833 190,670,501 203,964,447 158,837,988 166,029,303 348,859,522 294,506,141 281,952,899 286,117,697 392,771,768 442,820,178 444,177,586 522,479,922 586,283,040 513,442,711 640,384,671 Excess of Excess of Imports. exports. 10,187,95.) 10,746,'J02 4,990,428 1> 556, 275 21,766,396 22, 801,. 339 24,084,096 7,22 4,289 403,626 20,280,988 18,342,998 4,376,18:) 8,860,633 7,300,926 25.033,979 27.873,037 30,156,850 34,559,040 7,196,767 18.642,030 38,502,764 6,037,559 60,483,521 65,182,948 11,578,431 28,468,867 16,982,479 4,758,331 18,521,594 4,1.55,328 3,197,067 5,202,722 16^998^873" 23,589,527 13,601,159 13,519,211 6,349,485 21,548,493 52,240,459 19,029,676 $7,916,832 5,851,017 75,489 549,023 1^977^009' 44,245,283 "ii'i40'073' 315,730 ,949,779 9,008,282 7,144,211 8,330,817 10,448,129 855,027 29,133,800 21,856,170 40,456,167 60,287,983 60,760,030 38,899,205 29,212,887 54,604,582 38,431,290 20,010,062 69,756,709 39,371,368 157,609,295 72,716,277 85,952,544 101,254,955 75,483,541 131,388,682 43,186,640 77,403,506 182,417,491 119,656,288 19,562,725 25,410,226 3,802,924 40,392,225 3,141,226 1,313.824 18,876,698 '79^643^481" TEE TARIFF— COMMERCE UNDER. 153 Table No. 1 — Total value of imports and exports into and from the United States from October 1, 1189, to June 30, 1907, under low and protective tariffs, respectively — Continued. Fiscal ^lar. Mercljandltje. Imports. Exports. Excess of Imports. C 1877- J 1«78h ^, 1879- i 18S0- 18jl. H^ i 18..3- 3SO| 2^ I 18SL ( 1885- 1886- i 1887- i 1888- 1889- 18J0. 1891- 1892- 1893- J 189 L i 1895- I 1896- 1 1897- J 181 )9- 900- 1901- 1902- 19P3- 190t- l')0->- 1906- 1907- U968- ) 1SI». 1 18)9. 1 1900. rL901. Total. 451,323,126 437,051,532 445,777,775 667,954,746 612,664,628 724,639,574 723,180,914 667,697,693 577,527,329 635,436,136 692,319,768 723,957,114 745,l'31,652 789,310,409 841,916,196 827,102,462 8< 6,400,922 651,9.54,622 731,969,965 779,724,674 764,730,412 616,019,654 697,148,489 849,911,184 823,172,165 903,320,948 1.025.719,237 991,087,371 1,117,513,071 1,226,. 562, 4- 16 1.134,121,425 1,194,341,792 10,243,189.595 602 694 710 835 902 750 823 740 742 679 716 695 742 857 881 1,030 847 892 807 882. 1,050 1,231 1,227, 1,394, 1,487, 1,381, 1,420: 1,160. 1,.518, 1,743, 1,880, 1.860, 28,002,607 2,7;iO,277 ,475,220 I ,805,766 ' ,439,411 ,638,658 ,377,316 ,512,257 .839,402 ; 513,609 ,189,7.55 ,524,830 ,183,211 ,951,507 .401,375 ,828,681 ,480,810 ,278,118 ,665,191 I 18,735,728 ,140,572 I ,538,165 ! _. ,606,938 ,993,553 ' ,482, .330 ,023,302 I ,483,082 ,764,991 ,719.401 ,111,679 ,827,271 ,561,666 ,861,500 ,851,078 ,778,346 46,328.278,311 Excess of exports. 151,152,904 257,814,234 261,661,666 167,683,912 259,712,718 25,902,683 100,058,188 72,815,916 161,662,426 44,038,691 23,863,443 Fiscal year. 68,518,275 39,561,611 202,875,683 2.37,145,950 75,568,200 102,882,261 286,263,114 615,432,676 529,874,813 544,511,898 661,592,826 478,398,453 394,422,442 469,739,900 401,018.595 517,302,054 446,429,653 6()4.431,554 5,085,088,716 1877-. 1878.. 1879-. 1880- 1881-. 1882.. 1883-. 1884.. 1885- . 1888.. 1887- 1888- . 1889- 1890- 1891- 1892- 1893- 1894.. 1895.. 1896-. 1897 -- 1898- . 1899- 1900.. 1901 -. 1902-- 1903- 1901.. 1905.. 190i- 1907-- 1908.- J = Protection steadily enlarjires tlie liome market for farm products.— Hon. L. R. Casey. I am a protectionist hecanse our country has prospered with protection and Ian»nislied witliont It.— Hon. B. F. Jones, in tlie American Kcoiiomist. -4s a result in a lar^e decree of our protective tariff sys- tem, tlie United States lias become one of tlie foremost na- tions of the world.— Hon. S. M. CuIIom. The present husiness system of the country rests on the protective tariff and any attempt to clian^e it to a free trade hasis vi^ill certainly lead to disaster.— Hon. Wm. H. Taft, at Columbus, Ohio. The Repul>lican priciple of the i»rotective tariff is, as I understand it, that through the customs revenue law a tariff should be collected on all imported prodncts that compete with American products, which will at least etiual a difference in the cost of i»rovhich no eloquence, tvhich no rhetoric can obscure: BR VAX'S NOMINATION MEANS TAFT'S ELECTION.— New York W^orld. 154 THE TARIFF AI^D kEVENUB. Receipts untl 'expenditures of the United States (Jorcrnmcnt from 1191 to 1907. [Prom official reports of the United States Government. 1907.] a > . •a a?* < . Year endlug Dec. 81- 801. 802. 803. 80i- 80). 1800, t\ O X 807. 810_. 811- 18^3.. 814^. 815- 816- 817- 818- 810- 820- 621.. 82^- 823.. 1824.. ,827_._. 828—. 829—. 830—. 831-... 832.... 833.... 834.... 835.... S36-... 837.... 838.-. 839.,-. 1840-._. 811-... 1842.— 843».-. 844.... 845-... 1346.-.. 847.... 848..-. 849.... 850.-. 8.51.... 852 853 185t-... 855.... 856.... 857-... 858—. 859.... 860- ... 861.-. S63_. 864- 865- 866- 807.. Total net ordinary receipts. $4,409, 3,669, 4,652, 6,431, 6,114, 8,377, 8,(J88, 7,900, 7,516, 10,848, 12,935, 14,995, 11,031, 11,826, 13,560, 15, 55.^, 10,398, 17,060, 7,773, 9,384, 14,222, 951.19 960.31 923,14 901.87 534.59 529.65 780.99 495.80 813.31 749.10 330.95 793.95 097.63 307.38 693.20 931.07 019.26 661.93 473,12 214.28 834.00 9,801,132.76 14,310,409.95 11,181,625.16 15,696,916.82 47.676,985.66 33,099,049.74 21,585,171.04 24,603,374.37 17,840,669.55 14,573,379.72 20,232,427.94 20,540,666.26 19,381,212.79 21,840,858.02 25,260,434.21 22, 966,36 j»P6 24,763,929.23 24,827,627.38 24,844,116.52 28,526,820.82 31,867,450.66 33,948,426.25 21,791, 35,430, 50,826, 24,954, 26,302, 31,482, 19,480, 16,860, 19,976, 935.55 087.10 796.08 153.04 561.74 749.61 115.33 160.27 197.25 8,231,001.26 29,320,707.78 29,970,105.80 29.699,967.74 26,467, 35,698, 30,721, 43,592, 52,555, 49.846, 61,587, 73,800, 65,350, 74,056, 68,965, 46,655, 52,777, 50,051, 41,476, 51,919,261.09 112,094,945.51 243,412,971.20 322,031,158.19 519,949,564.38 462,816,679.92 376,434,453.82 357,188.256.09 403.16 077.'50 888.88 039.33 815.60 031.68 341.40 574.68 693.24 312.57 365.96 101.92 Total net ordinary expenditures. $3,097, 8,269, 3,846, 6,297, 7,309, 5,790, 6,008, 7,607, 9,295, 10,813, 9,393, 7,976, 7,952, 8,637, 9,014, 9,449, 8,354, 9,031, 10,280, 8,474, 8,178, 425.55 860.75 929.90 822.04 600.78 650.83 627.25 586.32 818.13 971.01 499.96 252.07 286.60 907.65 348.84 177.62 151.37 413.06 747.04 753.37 040.43 20,280,771.27 31,681,852.14 31,720,925.42 32,913,661.24 31,196,355.92 19,990,892.47 20,018,627.81 21,512,001.00 18,285,534.89 15,819,552.86 15,000,432.30 14,706,629.99 20,273,702.64 15,857 17,037: 16,139 16,394 15,184 15,142 15,237 17,288 23,017 217.34 85:). 22 167.16 812.05 053.63 108.26 816.64 950.27 551.98 18,627,570.23 17,572,813.36 30,868,161.04 37,243,214.24 33,864,714.58 26,896,782.62 24,314,518.19 26,481,817.84 25, 134, 886'. 44 11,780,092.51 22,483,560.14 22,935,827.79 27,261,182.86 54,920, 47,618, 43,499, 40,948, 47,751, 44,390, 47,743, 55,038, 58,630, 68,726, 67,631, 73,982, 68,993, 63,200, 66,650, 734.09 220.65 078.30 383.12 478.41 252.36 989.09 355.11 662.71 350.01 408.93 492.84 599.77 875.65 213.08 469,570,241.65 718,734,276.18 864,960,100.83 1,295,099,289.58 519,022,356.34 346,729,325.78 370.339,133.82 321,190,597.75 Excess of receipts. $1,312,498.64 865"993y24' 2,586,878.82 2,680,153.74 292.909.48 34,778.09 3,511,830.99 7,019,541.88 3,111,811.03 3, 188, 3 J;). 73 4,516,314.36 6,110,753.45 8,013,807.89 7,999,248.87 909,460.91 6,044,593.66 16,480,629.74 13,108,157.27 1,536,543.23 3,031,370.37 5,231,995.64 5,834,036.27 5,983,610.68 8,222,574.99 6.827,196.80 8,369,087.18 9,613,573.75 9,702,008.25 13,289,001.18 14,578,500.39 10,930,874.27 3,164,365.32 17,857,273.74 19,958,632.01 4,585,966.99 6,837,147.64 7,034,278.01 2.438,784.88 2,644.505.76 4,803,530.92 5,156,533.24 13,813,012.59 18,761,986.29 6,719,911.97 5,330,349.23 1,330,903.64 927,208.01 116,117,351.14 6,095,320.00 35,997,658.34 Excestjof expendi- tures. $4,59a,900.44 865,917.17 1,195,068,19 1,749,004. ,507,273.92 10,479,638.51 17,311,142.11 23,539,300.23 17,246,744.42 444,865.34 1,276,173.14 892,489.85 12,289,061.20 7,562,152.82 4,834,402.86 9.621,657.57 5,158,689.19 8,549,091.25 28,453,330.93 11,919,521.44 12.778,000.89 27,327,126.88 16,216,491.85 7,146,275.82 25,173,913.59 417,650,980.56 606, 639, 3 JO, 67 621,553,12v).63 973,068.131.39 THE TARIFF AND REVENUE. 155 Receipts and expendiUtres of the United States Government from 1191 to 1001— Continued, j Year ending Dye. 31- Total net ordinary receipts. Total net ordinary expenditures. ISxcess of receipts. Excess of expendi- tures. i i8ro.._. 1S7] 1872. _J. 1873 1874-.-- 1875.... 1876—. 1877 1878 1879-.._ 1880 1881 1SS2.... 1883 1884 1885 1886 1S87 1888 1S89 1 1800 1891.... 1892.... 1893...- 1894___- 18D5- — 1896 1897-..- 1898. — 1899 1900.— ISKOl 1902-... 1993 1904 1905 1906 1907 1908- — 395,959,833.87 374,491,101.94 364,694,229.91 322,177,673.78 299,941,000.84 284,020,771.41 290,066,584.70 281,000,642.00 257,446,776.40 272,322,136.83 333,526,500.98 360,782,292.57 103,525,250.28 398,287,581.95 348,519,869.92 323,690,703.38 336,439,727.06 371,403,277.66 379,266,074.76 387,050,058.84 103,080,982.63 392,612,447.31 351,937,784.24 385,819,628.78 297,722,019.25 313,300,075.11 328,976,200.38 347,721,705.16 W5, 321, 335. 60 515,960,620.18 537,249,851.89 587,685,337.83 562,478,233.21 530,396,674.10 510,631,749.00 544,274,685.00 594,451,122.00 863,140,334.00 599,895,763.00 293,657,005.15 283,160,393.51 270,559,695.91 285,239,325.34 301,238,800.21 274,623,392.84 265,101,084.59 241,334,474.86 236,964,326.80 266,947,883.53 264,817,637.36 259,651,638.81 257, 981, 439. ^^7 265,408,137.51 244,126,244.36 260,226,931.11 242,483,138.50 267,932,179.97 239,653,958.67 281,996,615.60 297,736,486.60 355,372,684.74 345,023,330.58 383,477,954.49 367,525,279.83 356,195,298.29 352,179,446.08 365,774,159.57 443, 368,. 582. 80 605,072,170.85 487,713,791.71 509,967,353.15 471,190,857.64 .506,099,007.01 .582,402,321,31 567,278,913.45 568.784.799.06 578,903,717.75 659,552,125.00 102,302,828.72 91,270,711.43 94,131,534.00 36,938,348.44 ^ 2 i ""1/297^33^37 o 9,397,378.57 24,965,500.11 39,666,167.14 20,482,449.60 5,374,253.30 68,678,863.62 101,130,653.76 145,513,810.71 132,879,411.41 104,393,625.56 63,463,775.27 93,956,588.56 103,471,097.69 119,612,116.09 105,053,443.24 105,344,496.03 37,239,762.57 9,914,453.66 2,341,674.29 m -Si? 5=*rld'8 Greatest Pigr Iron Prodncers. 'J'he following table gives the production of pig iron from 1880 to 1907 by the three great pig iron making countries. For the United States and Great Britain tons of 2,240 pounds are used, and for Germany and Luxemburg metric tons of 2,204 pounds. Years. United States (gross tons). Great Britain (gross tons). Germany and Luxemburg (metric tons). ISSO... 1831 - 3,835,191 4,144,254 4,623,323 4, 595, 510 4,097,868 4,044,526 5,683,329 6,417,118 6,489,738 . 7,603.642 9,202,703 8,279,870 9,157,000 7,121,502 6, 657,. 388 9,4 16, .308 8,fi23,127 9,652,680 11.773,931 13.620,703 13,789,2 '-2 15,878,351 17, 821,. 307 18,009,252 16,497,033 22,992,380 25,307,191 25,781,361 7,749,233 8,144,449 8,586,680 8,529,300 7,811,727 7,415,169 7,009,751 7, 55), 518 7,998,!)69 8,322,824 7,901,214 7,106,061 6,709,255 6,976,990 7,427,342 7,703,459 8,651,681 8,796,-165 8,609,719 9,421,4.35 8,959,691 7,928,617 8,679,5.35 8,935,063 8,693,650 9,608,086 10,109,4.53 •9,923,856 2.729.038 2.914,009 3,380,806 3,469,719 3,600,612 3,687,4.34 3,528,657 4,023,9.53 1JS8- - -_- 1883 -k 1881 l^<85 .-_ las'? 1»87 1888 4,337,121 1889 4,524,558 18)0.- _ 4,658,4,50 1891-. 4,641,217 1892..- 4,937,461 1S93 4,988,003 5,380,039 5,464,501 6,372 575 189' 1895 181)6 ___ 1897 6,881,466 7,-312,766 8,143,133 8,. 520,. 540 1898 _ 1899 19O0. 1901 1902 7,880,087 8 529 810 1903 1901 10,017,901 10 058 273 1905. 1906 1907 10.875,061 12,292,819 12,875,159 • British Iron Trade Association. From 1880 to 1907 the production of pig iron in the United States under protection increased from 3,835,191 gross tons to 25,781,361 gross tons, a gain of 21,946,170 gross tons, and in 156 THE TARIFF—IRON AAD STEEL. 157 Germany and Luxemburg-, also under protection, it increased in the same period from 2,729,038 metric tons to 12,875,159 metric tons, a gain of 10,146,121 metric tons. Under free trade in Great Britain, however, the production increased in the same period 2,174,623 gross tons only, the gain being from 7,749,233 gross tons in 1880 to 9,923,856 gross tons in 1907. Effect of Protective Tariff upon Steel Rail Industry. The development of the steel rail industry in the United States has been of enormous benefit to the country and has demonstrated beyond question the great value of the* protective tariff. When it was proposed in 1870 to place a duty of $28 a ton on steel rails the Hon. S. S. Marshall, a prominent member of the liouse of Ivepreseutatives, earnestly protested against the proposed duty becaiise, as he alley-ed, it would so increase the cost, of foreign steel rails that our rairroad companies coiild not afford to import them. The average price of Bessemer steel rails in this country at that time was $106.75 a ton in currency. The duty of $28.00 a ton was imposed in that year, and the price of steel rails fell in five years to an average of $68.75 a ton, and they never rose above those figures, but steadily fell in most of the succeeding years. The i-ed action in price, owing to the de- velopment of this industry, has led to the substitution of steel for iron rails, which are no longer manufactured to any extent. The durability of steel rails is many times greater than that of iron rails, and this has enabled the railroads to increase the size and power of their engines and cars, so that the cost of trans- portation has been enormously reduced. The United States long ago became the largest producer of steel rails in the world. Great Britain long having fallen behind. Formerly a large per- centage of the rails in use were iron. Now they are practically all steel. The tariff on steel rails in 1870 was 45 per cent, ad valorem. That has been gradually reduced until now it is $7.84 a ton. In 1906 the production of all kinds of steel Trails in the United States amounted to 3,977,872 tons. The United States Steel Corporation Not a Monopoly. To refute a common free trade charge we republish from the Annual Statistical Keport of the American Iron and Steel Association the following table, which gives the percentages of production of all leading iron and steel products by the United States Steel Corporation and by independent companies in the year 1906, the latest year for which statistics are avail- able. It also gives for the same year the percentages of ship- ments of iron ore by the Corporation and by the independent companies from the Lake Superior region and the percentages of the total production of iron ore and coke in the whole country by the Corporation and by the independent companies. The statistics of the total shipments of iron ore from the Lake Superior region and of the production of iron and steel we have obtained from the Annual Eeport of the American Iron and Steel Association, and the statistics of the country's total production of iron ore and coke we have obtained from the publications of the Division of Mining and Mineral Ke- sources of the United States Geological Survey, the Cor- poration reporting to us its share of these shipments and pro- duction. If by asserting; complete Federal control over the inter- state railTvays of the country we can snppr|^9S secret re- bates and discriminations of other kinds, "*ve shall have eone a long; way in the suppression of the nnlaTrfnl trusts.— Hon. TVm. H. Taft, at Columbus, Ohio. Think of it, men of Rochester; you producers and manu- facturers and merchants and traders and bankers and trans- porters, think of it! The market of our OTvn country, the home market, in vrhich you can transport your groods from the door of the factory to the door of the consumer, vFithout breaking: bulk a single time, is equal to the entire inter- national commerce of the ivorld.— O. P. Austin, at Rocheater. 158 TUE TARIFF— IRON AND STEEL. I'tDducts of the United States Steel Corporation and of Independent Oouipanlea. Comparative Statement by Percentages. •l» Corpo- ration. 54.2 43.2 86.5 06. Inde- pendents 45.8 'I'otHl production of iron ore - 56.8 Production of coke — 63.5 All kinds of pig Iron - 44.2 68.4 55.8 Spiegelelsen and ferro manganese 31.6 Total pig iron, including spiegel, etc 44.5 55.5 Bessemer steel ingots and castings . - 65.7 49.6 34.3 Opeu-heartti steel ingots and castings - — 50.4 Total of above ingots and castings __ -- - 58.1 41.9 Bessemer steel rails Structural shapes _ . 52.6 64.6 56.3 71.7 33.8 47.4 45.4 Plates and sheets, excluding nail plate Wire rods Bars, open-hearth and iron rails, etc 43.7 28.3 66.2 Total of all finished rolled products 48.1 51.9 Wire nails Tin plates and terne plates 65.5 73.4 34.5 26.6 This table completely disproves the statement so often made that the United States Steel Corporation is a monopoly w^hich controls the iron and steel industries of the country, and that it stifles all competition in these lines of industrial develop- ment. Indeed there is one branch of the steel industry in which it is not engaged at all — the manufacture of crucible steel. In tbe years tliat have grone by -we Iiave made the deed square -witli tlie "word.— President Roosevelt's speech accept- injs: 1904 nomination. We have kept of the same mind for a Bafflcient length of time to give our policy coherence and sahity. — li'rom Presi- dent Roosevelt's speech of acceptance. It appears that in all commercial countries export prices are at times from various causes lower than domestic prices. Hon. E. L.. Hamilton, in Congrress, April 14, li>04. The highest claim of William McKinley for the gratitude of his countrymen is that, in spite of the abuse and con- tumely that was heaped upon his head for this policy, he placed our country in the forefront of nations as a civillzer and uplifter of unfortunate peoples.— Hon. Wm. H. Taft, at Cleveland, Ohio. The United States is a continental nation and should adopt a continental policy. Free trade is adapted only to insular nations, and no continental nation has adopted a free-trade policy.— Ex-President Hill, of the University of Rochester, now Ambassador to Germany. I believe our strong party with its great principles Is only in its Infancy. Our glory as a nation has but Just begun. There are mighty problems yet to Be solved, grave anestions to be answ^ered, complex issues to be wrought out, but I believe we can trust the Grand Old Party and its leaders to care for the future of our Nation and of our people as it has cared for them so well in the past.— Hon. James S. Sherman. The Republican principle of the protective tariff is, as I understand it, that through the customs revenue law a tariff should be collected on all Imported products that compete Tvith American products, vrhich will at least equal a difference in the cost of production in this country and abroad, and that proper allovrance should be made in this difference for the reasonable profits to the American manu- factnrer.— Hon. W^m. H. Taft, at Columbus, Ohio. One vitnl, dominating fact confronts the Democratic party vrhich no oratory, -which no eloquence, which no rhetoric can obscure t BRYAN'S NOMINATION MEANS TAFT'5 BISECTION.— Nsw York W^orld. A tariff which protects American labor and industry and provides ample revenues has been written in public law. — WILLIAM MCKINLEY. THE TIN-PLATE INDUSTRY. l!]Mtablishe(l under McKinley Protection, Checked by Demo' cratic Free Trade, it has Effected a Saving- of ^35,000,000 to the Conntry and Notv Gives Employment to 17,000> people. Who Earn .f 10,000,000 a Year in Wages. By B. E. V. LUTY, Pittsburg. The American tin-plate industry is the best illustration of the" benefit of a protective tariff. It is for this reason that it is ■ singled out by the Democrats for especially vicious attack. The McKinley protective duty of 2.2 cents a pound went into* effect on July 1, 1891. For years prior to that time there wan • a revenue tariff on tin plate of one cent a pound. Under it no tin plate could be made in the United States, our supply being- all imported from Wales, which had a monopoly. The Welsh manu- facturers had an understanding among themselves which amounted to a trust, and charged exorbitant prices. The dut^-, being a revenue one, was paid by the American consumer. The reduced duty of 1.2 cents in the Wilson-Gorman law went into effect on October 1, 1894, and caused a wage dispute which kept all the American tin plate works closed from that date iintil the latter part of January, 1895, when they were put in oper- ation at greatly reduced wages. The American tin plate works were then enabled to operate under the existence of the Wilson- Gorman tariff law because : Gi'o^vth of the Industry. 1. The industry had acquired great momentum under the McKinley law. 2. Economies and new processes were introduced during that period, after great expenditures of time and money. 3. There were heavy wage reductions. 4. The Wilson-Gorman duty of 1.2 cents a jjound was O.Z cent higher than the old revenue duty. 5. The general depression in the iron and steel and other' industries, caused by the Wilson-Gorman law, brought the raw materials of tin plate manufacture in the United States down to; lower points thtin had ever been seen before. The Dingley law, effective July 24, 1897, increased the tin plate duty to 1.5 cents per pound, and two wage advances were- made, in 1897 and 1899, giving the tonnage men an average increase of 17 per cent, over the wages paid under the Wilson- Gorman Tariff. The following table gives the imports of tin plate into tjj: • United States since 1889 in long tons: Year. Long tons:- 1889 331,311' 1890 329,435' 1891 327,882: 1892 258,472; 1893 253,155 1894 215,068 1895 Bl9,545 1896 119,171 1897 83,851 1898 67,222 ' 1899 58,915 . 1900 60,386 1901 77,395 1902 : 60,115 1903 .• 47,360 1904 70,652 1905 65,740 1906 56,983 1907 57,773 159 160 THE TARIFF— TIN PLATE. The tin plate imports after 1897, the year in which the Dingley law was enacted, has been practically altogether for "drawback" purposes, the tin plate being made into containers for exported oil, fruit, fish, meat, etc., and being used in the manufacture of carpet sweepers and many other articles foi* export. On the exportation of such articles the Government refunds 99 per cent, of the duty originally paid on the amoiuil, of tin plate actually used in the man\ifacture of such exported articles. The following table gives the production of tin plate in the United States in each calendar year since 1891 : Year. Long tons. 1891 552 1893 18,803 1893 55,182 1894 74,260 1895 113,666 1896 160,362 1897 256,598 1898 326,915 1 899 397,767 1900 302.665 1901 399,291 1902 366,000 1 903 480,000 1904 458,000 1905 493,500 1906 577,562 1907'. *495,000 ♦Estimated. Hig:Ii and Loiiv Prices. The following table sho-svs the highest and lowest prices in Wales of full weight coke tin plate since 1889. The great decline caused bj^ the American industry will be noted. The much higher prices in 1899-1900 and in 1906-1907 were caused by the great advances in raw materials, especially' steel and pig tin, which have occurred all over the world : Year. Lowest. Highest. 1889 12s 9d 18s Od 1890 13 3 17 3 1891 12 6 12 6 1892 11 9 12 8 1 893 10 1014 12 6 1894 10 3 11 1895 9 9 10 9 1896 8 103/^ 10 6 1897 9 9 10 3 1898 9 9 10 6 1899 11 15 6 1900 13 3 16 9 1901 ,. 12 3 15 3 1902 11 9 14 1903 11 12 6 1904 11 6 12 6 1905 11 41/2 13 1906 12 3 15 1907 12 3 15 li/i The following table gives the average price of full weight ( '08-pound) coke tin plate in New York, imported plate for 1894 :iiul preceding years and domestic plate for subsequent years: 1890 $5.15 1891 5.30 1892 5.34 1894 4.57 1895 3.66 1896 3.63 1897 3.26 THE TARIFF— TIN PLATE. 161 1898 $2.99 1899 4.50 1900 4.82 1902 4.20 1 903 4.00 1 904 3.70 1905 •. 3.80 ■ 1906 3.90 1907 4.20 1908 (first half) 4.00 The followlDg- table shows the price chang-es in the past nine years, with the date on which each new price went into effect. These prices are f. o. b. Pittsburg-, plus freight to des- tination, and are for 100-ponnd plates, full weight (108-pound) being- 15 cents additional. When imported plate controlled the market, New York was the cheapest point, deliveries at in Ian points being- higher. A comparison, at New York, of present prices with .prices ruling before the establishment of the Ameri- can industry, is not fair, because at the earlier time the prices delivered to the principal inland consuming points were higher than New York prices, whereas now they are lower. The freight Pittsburg to New York, is 18 cents a hundred, while from Pitts- burg- to a point even as far west as Chicago the rate is only 18 cents. July 14, 1899 $4,371/2 August 6, 1899 4.65 September 24, 1900 4.00 November 3, 1902 3.60 March 3, 1903 3.80 November 16, 1903 3.60 January 25, 1904 3.45 *Ji]ly 25, 1904 3.30 November 15, 1901 3.45 December 22, 1904 3.55 October 3, 1905 3.35 October 20, 1905 3.45 November 20. 1 905 3.40 January 8, 1906 3.50 April lb, 1906 3.60 May 19, 1906 3.75 October 25, 1906 3.90 January 6, 1908 . 3.70 *Discount changed to 2 per cent., previously 1 per cent., for cash in 10 days. A Savins of J?a5,(M)0,000. By making a careful estimate of what tin plate would have cost the consumer from the beginning of 1892 to the middle of 1900, had there been no American industry and no protect- ive tarifC, and closely calculating what it actuall}' cost in these years, with the protective tariff and the American industry, it has been found that the country saved to that date fully $35,000,000 through the McKinley tin plate schedule. Most of this saving was due to the American product selling at so much below the imported, but part was due to the lower prices, at which the foreign was sold, on account of the competition, before the country made all the tin plate it needed. The average weekly earnings of the skilled labor in the American tin mills are from two and a half to three times as much as in Wales, while the earnings of the common labor are fully twice as much. The skilled men are on a tonnage basis, the rates per ton in the United States being more than double what they are in Wales. In addition to this, the Ameri- can manufacturers invest a great deal more money, probably three times as much, in their plants, making the mills heavier and employing more convenient arrangement, whereby the men are enabled to make a much larger tonnage output per shi't. When the American tin plate industry was first established, the average output per hot mill per turn was about 50 boxes. ie« THE TARIFF— TIN PLATtJ. against 36 in Wales. Improved pi-actice and still heavier mai- chinery was adopted in the American plants, whereby the aver- age output has been raised to fully 75 boxes, while following after the Americans the Welsh manufacturers have made some improvements, and brought their average output up to 50 boxes, which -leaves it that the American mills lead by a slightly larger percentage than they did at the start. Tin Plnte U Cheap. Tin ijlate is cheap at present, being much lower than at any time prior to the passage of the McKinley law. In 1890, the year before the McKinley duty became effective, and when pig tin, which is in no respect under control of either the American or the Welsh mills, sold at less than three-fourths the pres- ent price, tin plate delivered Pittsburg averaged 38 per cent; higher than it does at present. 'J'he following table gives the cost, delivered Pittsburg, of the quantity of tin plate re- quired to make the articles named : Cents. Ordinary 2-lb. or No. 2 can 0.94 Ordinary 3-Tb. or No. 3 can 1.34 Half-pint tin cup -. 0.79 Quart tin cup 1.34 3-qt. dinner pail 4.34 3-qt. dinner pail, plus 1-pt. cup 5.26 The tin plate required for the famous dinner pail, therefore costs only what the workman i^ays for an ordinary street car fare. Workmen Reconiriiize Tariff'H Re»i»onHibillty for Hig-li Wa^eH. In October, 1902, the Amalgamated Association of Iron, Steel, and Tin Workers gave the clearest recognition that has ever been given of the fact that the tariff is responsible for the wages they receive. The condition was that while the American tin mills had captured practically all the demand for the tin plate for domestic consumption, the Welsh manufacturers wei-e still shipping in from a million and a quarter to a million and a half boxes (50,000 to 65,000 tons) of tin plate, which was made into cans for exports of petroleum, fruit, fish, etc., and for some minor purposes. Through the ojjeration of the general drawback law the Government, on the export of these commodities, paid to the exporters 90 per cent, of the duty which had originally been paid on the tin plate so used. Thus the tin plate used in this "re- bate trade" was practically duty free. The Amalgamated Associa- tion therefore made, in October, 1902, an arrangement with the American Tin Plate Company whereby they would work up plates intended for the rebate trade at wages 25 per cent less than the regular scale rate. It was recognized that this percentage did not represent the full concession needed to capture this re- maining trade from the Welsh makers, but the company was willing to make up the balance itself. The plan was put into practical operation by 3 per cent, of the men's total wages being set aside in a special fund, from which withdrawals are made as cans, etc., are exported, equal to 25 per cent, of the wages originally involved. This apparently complicated system was adopted partly because it would have been inconvenient to identify each lot of tin plate as it went through the mill as being intended for export purposes, and the safer plan was adopted of the wage rebate being payable just as the actual exports were made. By this action the men recognized that the tariff wa^ directly responsible for the wages they were receiving, and showed that they were willing, in competing with Welsh manufacturers opera- ting under no tariff, to make a concession in wages. This arrangement has now been in force nearly six years, and the workmen are very well satisfied with it. The following table gives the production of tin plates and terne plates in the United States from the beginning of the industry in 1891 to the end of 1906. From July 1, 1891, to June 30, 1897, the statistics we present were collected by Colonel THE TARIFF— TIN PLATE. 163 Ira Ayer for the Treasury Department. On the latter date the Department abandoned the collection of these statistics. From July 1, 1897, to December 31, 1899, from January 1, 1901, to De- cember 31, 1903, and from January 1, 1905, to December 31, 1906, the statistics have been compiled from most reliable sources. For the census years the production is given by the Census Bu- Production of tin plat^ and terne plates, 1891-1906. [From annual report of the American Iron and Steel Association.] Years - Pounds. 'J Inplates. Terne plates I otal pounds. 1801 (last 6 months) 368,400 13,921,296 64,536,209 102,223,407 165,927,907 270.151,785 203,028,258 1,868,343 28,197,896 59,070,498 64,120,002 88,683,488 89,058,013 49,545,643 2,236,743 1892 (calendar year) 42,119,192 1893 1894 123,606,707 166,343,409 254,611,395 359,203,798 1895 _. 1896 mn (first 6 months) . 1897 (last 6 months) 1898 (calendar year) 1899 . .. 252,573,901 322,205,619 732,289,600 808,360,000 1900 (census year ending May 31)_. 1901 (calendar year) 707,718,239 141,285,783 849,004,022 894,411,810 1902 . 806,400,000 1903 1,075, 200, OO'J ]90i (census year ending Dec. 31)_. 190^ (calendar year) 867,526,985 158,857,866 1.026,384,851 1,105,440,000 1906 _ 1,100,373,000 193,367,000 1,293,740,000 The millions xfc formerly sent to aliens in alien lands to pay them for makiniir tin plate for us ^ve no-^v pay to our o^vn countrymen in the United States; we have the tin plate and Tve have the money expended for tin plate besides. — Hon. Wm. S. CJreene, in Congrress, April 28, 1004. > Rememberingr those Repuhlican promises and their ful- ftllment in the years since, calling to mind the unfulfllled Democratic promises and the hitter years of 1803-1806, what will you grain hy voting the Democratic ticket.— Representa-* tive Chas. Dick, of Ohio, in Congrress, Jan. 5, 1004. The difllculty Tvith the Democratic party and the reason why the American people thus far have manifested their distrust of it is because it has no policy which the country can depend upon. lis whole stock in trade is that of ir- responsible criticism and obstruction, but Tvhen charged w^ith the responsibility for doing: anything it utterly fails. —Hon. "Wm. H. Taft, at Greensboro, North Carolina. By the policy of fostering: American industries the devel- opment of our manufacturing: Interests have been secured; the inventive genius of our people has found a field; Ameri- can labor has become the best paid, and conseatiently oui* laborers are the best housed, clothed, and fed; and the won- derful development and prog:ress in this country in all that makes a people great, have elicited the admiration of the civilized -world.- Senator Cnllom, in the American Bcono- This is not and never shall be a g:overnment of a plutoc- racy; it is not and never shall be a grovernment by a mob. It is, as it has been and as It -will be, a g:overnment in which every honest man, every decent man, be he employer or em- ployed, ■wag:e-worker, mechanic, bankc%>, laTFyer, farmer, be he ^rho he may, if he acts squarely and fairly, if he does his duty by his neighbor and the State, receives the full pro-" tection of the law and is given amplest chance to exercise the ability that there is Tvithln him, alone or in combination with his fello-ws, as he desires. — President Roosevelt at Butte, Mont., May 27, 1003. In the ten years -which has elapsed since the enactment of the Dingley TariflP, the conditions have so changed as to make a number of the schedules under that tariflP too high and some too low^. This renders it necessary to re-examine the schedules in order that the tariif shall be i>laced on a purely protective basis. By that I mean it should properly protect against foreign competition, and afford a reason- able profit to all manufacturei's, farmers and business men, but should not be so high as to furnish a temptation to the formation of monopolies to appropriate the undue profit of excessive rates.— Hon. Wm. H. Taft, at Kansas City, Mo. One vital, dominating fact confronts the Democratic party -whiAi no oratory, -which no eloauenoe. -vvhich no rhr-toric can obscure: BRYA!V'S NOMINATION MEANS TAFT'S ELECTION.- New York World. THE TEXTILE INDUSTRIES OF THE UNITED STATES. How Labor and Agrrionlture have been Mutually Aided and Price* to tbe Conituiiier ileduoed IJnder tlie I'roteetive System. IBy Edward Stanwood, author of "A History of the Presidency," "American TariH' Controversies of tlie Nineteenth Century," etc.] If one were asked to designate the American industries which may be regarded as the most cons})i('noiis trophies of the pro- tective policy the answer would undoubtedly be : Textiles, iron, and glass. The most dramatic conquest the policy can boast is in one branch of the iron and steel iudustry, namely, that of tin plates. Nonexistent in 1890, it gave employment in 1900 to nearly 15,000 workmen, and provided practically the whole sup- ply of tin plates for the innuense ca; ng industry of the coun- try at prices far below those which prevailed when the market was controlled by foreigners. Nevertheless, the mo8t important achievement of protection is the establishment and development of the mills in which is spun and woven the material of the clothing of the people — cotton, wool, and silk. The Father of his Country in his first annual address to Congress used the following language: "A free people ought not only to be armed but disciplined ; to which end a uniform and well-diges-ted plan is requisite; and their safety and Interest require thdt they should promote such manufactories as tend to render them independent of others for essential, particularly military, supplies." Although clothing was one of the articles indispensable in time of war, the manufacture of which it was obviously the duty of Congress to promote, it was not until after the war of 1813 that a serious thought was given by Congress to the protection of the manufacture of cloth of any material. During the period of nonintercourse that preceded the last war with England ft was found impossible to buy in the co\intry $6,000 wonn of blankets to supply the Indians. During the war the only way in which clothing could be procured for the soldiers of our Army was by importatioii secretly from the British provinces in viola- ti®n of law — a violation at which the Government was compelled by the necessity of the case to connive. After the war the country was flooded with foreign textiles, and the cotton manufacture which had been established under the protection of nonintercourse was brougjit almost to the verge of ruin. Then began the attempts to foster the cotton and woolen industries by means of a protective tariff, which, often interrupted, have continued to the ^n-esent time. The Cotton Industry. Cotton manufacture has enjoyed fairly adequate protection for three-quarters of a century. Even under the Walker tariff of 1846 the rate of duty was sufficient to give the home manu- facturer fairly complete control of the market for the coarse and medium goods, which constitute by far the largest amount of goods consumed by the average family. Beginning with the Morrill tariff of 1861, adequate protection has at all times been given to almost all classes of cotton manufactures, and the results have been a great growth of the industry, a large employment of labor, and an increasing market for the raw product of southern plantations. Keen domestic competition and improved machinery have reduced the prices of good%enormously. Thus every interest connected with this industry, directly or in- directly, has been benefited — th- -manufacturer and his employees, 164 THE TARIFF— THE TEXTILE INDUSTRY. 165 the southern planter, and the whole population of the country, be- cause all are consumers of the products of cotton mills. In re- cent 3^ears the United States has begun the conquest of foreign markets. An export trade established before the civil war reached in i860 almost $11, 000,000. It did not touch these tigures again until 1878, nor did it greatly exceed them until 1896, when the value of cotton goods exported was almost $17,000,000. Since then the increase of the trade has been rapid. In 1906 the \ahie ol the cotton goods exported was almost $53,000,000. Since then there has been a large decrease, due solely to the cessation of a denumd from the Chinese Empire, but it is believ* ! eaiu- ; era. Wool manu- facture (a) 1859 1,760 $32,516,336 47,763 iii29,24G,696 $49,636,881 18G0 1,67; 42,810,932 59,522 "$13^361^602 46,649,365 80,734,606 IsTO 3, 45 J 132,382,310 119,8 )J 40,357,235 134,151,615 217,668,826 16^0 2,C8J 15), 0)1,8):.' 161,557 47,389,087 161,371,551 267,252,913 1800 2,489 296,491,481 213.950 70,917,894 203,095,572 337,768,524 1«00 2.335 392,0 0,35 J 212,495 82.292,444 232,230,986 392,473,050 1905 2,292 477,525.222 283,691 102,333,518 319,1.54,878 517,492,142 Cotton manufac- ture (O) 1850 I.OOi 74,500,931 92 ,-286 34,835,056 61,869,184 1860 1 ,001 98, •585,269 122,02c- 23,910,108 57. 28), 53 4 115,681,774 1870 9i: 1*0,703,291 135,331 39,011.132 111,73 5.936 177,489.739 1880 75« 208,280,346 171,05 42, 00, 510 102,203,317 192,090,110 'P90 Po" 351,020,842 218,876 66,021.538 154,912,979 267,981,724 1900 1,055 467,240,157 302,861 86,680.752 176,551, .527 339,200,320 1905 1,151 613,110,65- 315,871 96.205,796 286,255,-303 450,467.704 Silk manu- facture ... 1851 67 678,300 1,713 1,093,860 1,809,478 18% 130 2,926,980 .5.435 "'1^050^224 3.901,777 6,607,771 1870 86 6,231,130 6,619 1,912,286 7,817,550 12,210,662 1880 382 19,125,300 31,. 337 9,146,705 22,467,701 41,033,045 18'X)! 472 51, 007,5 {7 49,382 17,762,141 51,004,425 87,298,454 VWii 483 81,082,201 i;5,416 20,982,194 62,408,665 107.256,258 1905 624 109,553,621 79,601 26,767,943 75,861,188 133,288,072 Dyeing and finish 1 n g 1 textiles ... 1850 10 { 4,818,350 5,105 11,540,347 15.451,4.30 18601 15' 5,718,671 7,007 '"'2^6017)28 5,095,1.35 11,716,463 1870 202 18,371.50^ 13,066 5,221,538 99,539.992 113,017,5.37 , 1880 1 191 26,223,081 16,608: 6. 474. .361 13,681,295 32,297,420 1890 218 38,450,800 19,601 8.911,720 12,385,220 28,900,460 1900 208 60,613,101 29.776 12.726,316 17,958,137 44.963,331 Flax, hemp and jute,. 1905 360 88,708,576 35,563 15,469,205 19,621,253 50.849,545 1800 102 27,731,649 15, .519 4, 872, ,389 26,U8,344 37,313,021 1000 1 <1 41,901,762 20,903 6.3.31,741 .32.197,885 47,601,607 Combined 1905 133 51,423,531 21,. 508 8.580,785 44,800,546 62,939,329 textiles — 1850 3.025 112,513,917 1(6,877 76,715,959 128.769,971 I860, 3,027 150.080,852 194,082j 40,353,462 112,812,111 214,740,614 1870 4.790 297.601,213 274,943 86,565,191 .353,219,102 520,386,764 1880 4,018 112,721,496 384,251 1 105,050,666 302,700,891 5.32.673,488 1890 4.276 767.705,310 ,517,237; 168.488,982 417,516.510 759,262,283 1900 4.312 1,0 '2,997,577 661,451, 209 ,,022, 447 521,345,200 931,494,566 1905j 4,553 1,343,324,605 739,239 249,357,277 745,783,168 1,215,036,792 (a) Includes hosiery and knit goods. (b) Includes cotton small wares. Cotton Production and Mannfactnriu^r in the United States, also ImportN and Kxports of Cotton Manufactnre. The statement showing the quantity of cotton consumed in- dicates unusual activity among the cotton manufacturing in- terests of the United States during recent years, the number THE TARIFF— THE TEXTILE INDUSTRY. 169 of bales taken for home consumption being in 1905, 1906, and 1907 much larger than in any corresponding period in the his- tory of our manufacturing industries, while the raw cotton imported was also larger than in any corresponding period of any earlier year, 'ihe export of cotton manufactures in 1905 and 1906 were more than double those of any two-year period in the history of our exporl trade. The fall of 22 mil- lion dollars in value of cotton cx])orts in 1907 was due solely to a reduced demand in China, resulting from over-importations into that country in 1904 and 1905. The growth in importa- tion of cotton manufactures shown in the final columns suggest great possibilities in our own markets still awaiting our own cotton manufacturers, especially in high grade manufactures, which form the bulk of the large imports of recent years. Our appeal l» not to a false plillosopliy- or vain tlieories, bnt to the masses of tlie Anieriean people, the plain, practi- cal people Tt'lioni I^incoln loved aud trusted and wlioni tlie Republican party lias always faithfully striven to serve. — Maj. McKinley to Notification Committee, 189«. At all hazards, and no matter what else is sought for or accomplished hy chun^es of the tariff, the American work- ing-man mnst be protected in his standard of -wages — that is, in his standard of living — and must be secured the fullest opportunity of employment.— President Roosevelt at Logans- port, Ind., September, IDOil. Laying- aside the fact that trusts are organised under Elngllsh free trade, as v*'ell as German, Austrian, ane this period of illegitimate corporate immunity.— Hon. Wm. H. Taft, at Kansas City, Mo. There is no -worse enemy of the wage--vrorl£;er than the man -who condones mob violence in any shape, or -who preaches class hatred; and surely the slightest acquaint- ance -with our industrial history should teach even the most shortsighted that the times of most suffering for our people as a -whole, the times when business is stagnant, and capital suffers from shrinkage and gets no return from Its investments, are exactly the times of hardship and -want and grim disaster among the poor.— President Roosevelt at Syracuse, N. Y.. September 7. 1903. One vital, dominating fact confronts the Democratic party -which no oratory, -which no eloquence, -tvhich no rhetoric can obscure: BRYAN'S NOMINATION MEANS TAFT'S SSLBCTIOlf.— New York W^orld. COMMERCE OF THE UNITED STATES BY GREAT GROUPS, J 820 TO J 908. The tables showing the commerce of the United States by <:»Teat groups from 1820 to 1908, which occupy the pages im- mediately following, are interesting and valuable especially iu their relation to the agricultural and manufacturing industries of the country. Both imports and exports are grouped in a manner to show foodstuffs, and to indicate whether they are imported or exported in the natural state or in a form in which labor has brought them into condition for use, and thus added to their value. The imports and exports of crude materials for use in manufacturing are also separately shown ; also the imports and exports of manufactures, both those ready for con- sumption and those intended for further use in manufacturing. In each case the percentage which a given class forms of the total imports or exports is stated. A study of these tables gives a clear and interesting picture of the growth of our agri- cultural and manufacturing industries, and especially as to the importation of materials for use in manufacturing and the ex- portation of manufactures and the growing share which these fCiasses form of the total imports and exports, respectively, of the country. It will be noted that, notwithstanding the Demo- cratic assertion that a protective tariff would destroy our mar- kets abroad, the total value of merchandise exported grew from 1 billion dollars in 1897, the year of the enactment of the Dingley protective tariff, to 1,854 millions in 1907. In manu- factures, of which it was asserted that a protective tariff at home would especially injure our markets abroad, the growth has been strongly marked since 1897 ; exports of manufactures ready for consumption having grown 'from 213 million dollars in 1897 to 481 million in 1907, while manufactures for further use in manufacturing grew from 98 million dollars in 1897 to 259 millions in 1907, and 1908 will show even larger totals. It will be noted also that the share which finished manufac- tures form of the total exports grew from 20.63 per cent in 3897 to 25.93 per cent in 1907, and that of manufactures for further use in manufacturing, from 9.52 per cent in 1897 to 13.99 per cent in 1907. While it is not practicable at this time to give complete figures for the fiscal year 1908, an estimate based upon the avail- able figures up to the latest possible date indicates a continuation in 1908 of the growth in the exports of manufactures. In the tables of importations the column showing the value of crude materials imported for use in manufacturing is especially in- teresting in its evidence of the activity of our manufacturers in recent years, showing as it does that the value of crude •materials imported grew from 196 million dollars in 1897 to , 477 millions in 1907, and that the share which this class of materials formed of the importations grew from 25.66 per cent in -4«97 to 33.25 per cent in 1907. In twenty years tlie Tvorksliop of tlie Tvorld lias become coMt^o>^"^cocoi«-^(>5cioOrHooeorocoQi— iC'it^otu: «aoKoiina>i--in-*oo3J9 M i-H t~ CS I-. l I lo'i-Ti^rco ■ :SS^ ( M< «5 O 03 CO ( I rH eo CO ■* 00 ( rHCoSlr5cOOM^iH50tC>!tiO'»tCOlMt^Ou5«5CO(M© gg ■«»< ^ CO CO ^ «0 5DU^ giisigii lHCOTH"*in-^(M(>JC<10OS00-*^5■*t:~^O^D«Dt^a> 2^g ^ 8 SS^?J??Sg^Sg Ol 5-1 CO © lO 50 lOO>0>NiH-«»?5i-iooeoifti>-t<( . 5-]cot^degoDffl'*'050t~f«o«oe05Tt-^ co- ■* '^ CO* eo lo eo' eo lo ■* ifi ifl lO iri irj lO lO «o •*' lo t^ t>^ 00 o> 00 o> ^h o o> o' m ^' eo* eo 1 1 oo^OwoD-t«2W©got-ecift©co(>qgjNrH5o<5«ooe2eoO'-^iciH©»-*eo'i-l05(M*co®iMcocc>coc5iocoo5©&4c>iS«5i-i©t^©t^r^eor-u>(Nineoi iaSJSS5^8i > ?0 S lO ■>* 95 eo CO t I SDrH © I eo(N eo )(M-*i:^o©t^o>t-©®*ar-!-<*<-*ib©qo5Min(M00r-lrH©COt>CO®CO-^ir»St--*©-*rH-.t.»nto JftCnOQt^SSsh-© CO cot- I ICO IC lO > CO ^ -* HA i-HCO rH 00© 00* I IC 1-H rH i-H •*! (~- ( I -* © (M 00 tH (M 1 / 0<1 00 O t^ CO (M I iMSicococ5-*ooiftt^-«*<-^©obi-i CO rH © ■* I > lO T-t ■>* lO Tit in < s*sgg§s$ lOOCO •t< H:~CO©©©I>©t~(MClft^©lO(N-©i-IOOCOinCOr-IOO-*00'»tcDioiv(Neo'ioc4»rio6iAffq-«i>rt©co«oeoeo( F-(i-HCO-liHiHrHiHr-(r^THe.©©©t^5-CO(Mt-(MCDOOU500i-ICD©OQOO©'*«5CDCO©©-^-*OOt-l>vn eaaococD'*co^-^n^©"*t-co©oo©lnGe(N•^>hc5©cDr-^r^cD©^ob^5^g5CD(^qcO 00 '-l,^„t^^."° '» «5,°0 ^"* 00 00 '^ '^'* "* "^ '"l'* * '^ "^^ 00 © © rl rH CO <5 frJ^O -* (N CO ■rH-<*>-^lOtO(Mt^00rH00CDlOCD©C000t-C0»C IftXv CD l-H © © 00 CO t--^CD00l:^lOCO00e!^JC0C0CDl.-^r^O■^©©©(^3©mcD■<*^^^lO^r^J>.©lC>nc.ini0rH00©rHC0©rHC0C0I^-5jCD-Hm©CO(M©(M05©C<»©©iACO©ir-fc<; « r- m oj -t ^_ Js^S i- t^ o_»- c^ r- co i^ o u- ir •-• o? — *»>r»M C5 ir co'r-Tc^'— "c^'i-TiJ'ir^i CO in O) -f i;- 55 -" rn" o; -** to i - 3 c^Tcj ir r-t- cT-' •■•" .-^ o sj i~ i-* :? w to ~ i>i ci «o t- c<: a w "T So •; £1 S ''^ ^ l~ ^ ■" ^ ::; £3 2 SJ S; '-' e-i s': c: i-"Co-i'irttctot^i-®'f;tD«Di^t-.j~aoa3ootDi^Nt^totcoooo26&a!rt8>i--r^ 8j9-*-*o>i<-"'Nc<)toiflir>t»'"'5'^Q»'''?'*'^-iomc<3'-,-i,-i0025OC500— itoiO-^i?5a30om©toec©ir'to(NtOr-j-cc <(MiMC<5tOQOOOOOOlOO®t^'*tOlft'ooeo(MOOr-'»or-tOi-ioooioo©OrHoo — cco-v — eci ec©a«-*'^©f>4qjtor^r--:j>t^ini-i©ifli-ii--iJ5-*o05aMi-i''irQre'i oo^■*tooo•^•*ttSir■©©l^©to^OlJ*l^oooo©^H^-05C<^«el^5lOOo^-^otOI-l3oo > »0 f Ift <2- CO I'. Ift rt CO I'. « CO 00 OJ' 11^ i-H I^ ^M IM l~ T« Cfc (»05i^t>.*©S5-*©x03©i-ii-ieoi-io'N-0(Mt-'>f«:©©co»riru-©tcej OJ a> t< i O' i. X 3 •5 . w 3.- rt C t^ 00 r- ir ^O 5-1 r- to CO CO CO -t> CO -* 1^ to T> ■* to CO >C (M 00 IM i-l OJ CC T ir to ?i to If' t--I oj «35 cacg ico«oio»r--^(Mtoo-u^©3;( I t- to J^ -^t" 10 -« M 1^ O © i-< — 00 ico©.-ii-<-*'^OlC1-lC:©co"^oo-^. lf< l^' to t-i -" rH l^ 25 (M IC O »r> M 1^ © h- (M -<■ IM © C; CO t^ 01 X U> IM t^ I- IC CO M c S ©^-lco•^tOlr^•tl^l'.tol^tO(Miooto©c■. ■^l■-tcoo-♦■©-T(^^050-i CO CO -« CO o r~ CO "/; -^ X r-i o r-i 1 r ^ o "M ir 0-1 CO .— y, (Ts r-i -* t^ t~ »f> o h-' ©' ■»♦' to »H(M!Ml«tCi-lXO50;O5t^Cl(M— r-iC0T-C0XO:©Xt^OiCOtOl^©0t^C; ^ i-(T-li-lr-*i-lr-l^ r-i rHi-lr-(i-lr^T-lC^l(Ni-H to 1^ r, 1^ — c f-< 00 1^ 1^ >-i -* X -* N i^ -^ cft (>4 O -O -C O 0>J lO to CO 4> *- 3 : 3. a O 0>J lO to CO iH © CO 15 'N !~ O-l f' m I X l-~ CO to t>- 03 "n rH Ui !f3 M 00 00 0-1 I co«co?© t~X'M'M©OI^»tOi-i-lr> to X CO if r"! r^ vO iffr-i©c;xcoMtOi-it^xo-'tDa'— ir i-t>©-Hcox— '"-H-r^oiM©-^ — T-ii~x»-~K^t^i'-coc:toC5(MinT-itpi--i-i--ot^!~u: i,-i-tOI^XX©COXOiC35X( ' © © C3> ■— I - ir ft;3 3 r:^3 § S ^©2 x^s-?eOl^lOo5to»le^to^ft5oI>-^Hc<5■*w■*x^-^>.SlMa05t^to<^llCcoos©5S 1 OS 10 ir (m' tr M -H t^' 05 oj oj cs h^ t-T to* in to to 1^ to* i^ eo "oJ 10 to eo' t^ u^ ir ©' r-< r-i eo" i-h i-I i -<'©eOi-(©in'* — tDCOlXCOCOXr~tDOOCOf~XO) to x x 1-1 ci ir © CO » IP -< CO ic ir ooo r- x*r 1 ^"x -f"(N ,-1 -""cTx to ic -h'^'cc r-To ©"© ci irTcr t-Tco 5-)irtxtpt^iO-fo3Xco(Mi^coi'-r-'-»iiPcoc^©co-H(M©-*(rT5-fc(M©'MOv)T-ii-l3cO-t'CO©rM^,-^0-H,-l^-t-lrt'!t< P o < ta-?a ^1- s2i int^'*ootHxoir-iioa>fc-cotoi-itDcocoxco5©'M0t-'^(Mffix^ifM~iPcox-^co©x — ?StotOx?ir-ix©mcft©©i^©©'T-^_co_^x a5_©_w co_^t-: «o_in (n oo-f^r-i-)-H^cowo5©©©05©3iffl©i-io-iMiftt^cofo-t'co«<)OaiC5.--i 1900 105 29,275,470 13,114 4,113.112 37,849,651 1005 102 37,110,521 14,614 5,3 58,178 18 017,1.59 Cotton goods 1880 1,005 219,. 50 4,79! 185,472 45.614,419 210,959,38 5 1890 905 .354,020,843 218,876 63,024,538 267,981,72 4 1900 1,055 467,2 40, l'^7 302,861 86,680,752 339,200,320 1995 1,151 613,110,655 .315,874 96,205,796 450,467,70' Electrical machinery, 1880 76 1,. 509, 7 58 1.271 683,164 2, 655, 056 apparatus and sup 1-^90 189 18, 997,. 337 8,802 4,517,0-0 19,114,7'4 plies. 1900 581 83,659,92 4 42.013 20,579,194 92, 43 1, '35 1905 781 174,066,026 60,466 31,841,521 110, 800,. 33) Flour and grist mill l-^SO 21,3.38 177,. %1, 878 58,407 -17,422,316 505,185.712 products. 1890 r-^,470 208,473,500 47,403 18,138,402 .513,971.174 1900 9 476 189,281,330 32,226 16,285,163 :tOl,3)6,301 1905 10,051 265,117,4.34 39,110 19,822,196 713,033,3)5 Foundry and ma- ISSO 4.9S4 155,021,734 145,650 66,093.920 215,442,011 chine shop prod- 1890 6,500 383,257,473 231,331 129,282,263 413,197,118 ucts. 1900 9,316 663,414,323 350,103 182,006,007 6!4,'5:! 216 1905 9.423 936,416,978 402,914 220.869,297 790,862,5>8 Furnishing goods. 1880 161 3,724,664 11,174 2.644,155 11,506 8 7 men's. 1890 586 12,299.011 20,778 6.078,026 29,870,9 '6 1900 457 20,575,961 30,. 322 9,730.063 44,3 43,482 1905 547 28,0 43,. 584 27,185 8,760,108 49,031,5:;2 Furniture 1880 5,227 44,946,128 59., 30 4 23,695,080 77,845,7^5 1800 1,919 80,780,939 72.869 35,068,979 111,713,0^0 1001 1,814 104,484,-394 87,262 35,632.523 125.315,0,^6 1905 ' 2,482 152,712,732 110,133 49,883,235 170,446,825 171 CHIEF MANUFACTUBINO INDUSTRIES. Lliit/ inaiiufacturing industries, showing sums paid in wages and number of employees — Continued. Cen- uus year Num- ber of estab- lish- meuts UapitaL Wage-earners. Value of ludustry. Aver- age num- Total wages. products, Including cusioiu wok aud ber. Dollara. repalrlug. Doilarg. Dollars. Glass 1880 169 18,804,599 24,177 9,144,100 21.154,571 41,051.004 1890 29.' 40,966,850 44,892 20,885,961 I'JOO 355 61,423,903 52,818 27,084,710 56.539.712 li»05 399 89,389,151 63,969 37,288,148 79.607.998 Hardware 1880 492 15,363.551 £6,271,840 16.801 18,495 6,840,913 8,656,067 22.658,693 26,728.463 mH) 350 lUQO 381 39,311,745 26.463 11,422,758 35.846,656 1905 445 52,884,078 31,713 14,580,589 45.770,171 Jewelry 1880 739 11,431,164 22,240,508 12,697 13,880 6,441,688 8,038,327 22,201.621 34,761,458 1890 783 1900 851 27,871,924 20.468 10,613,887 46.128.65J 190.3 1,023 39,678,956 22,080 12,592,816 53.225.681 Leather, tanned, cur- IScSO 5,628 73,383,911 40,282 10,503,828 200,264,944 ried, and llnished. 1890 1,787 98,088,698 42,392 21,249,989 172,136,0a2 1900 1,306 173,977,421 52,109 22,591,091 204,068,127 1905 1,049 242,584,254 57,239 27. 04]), 152 252,620,986 Liquors, matt 1880 2,191 91,208,224 26,220 12,198,053 101,058,385 1890 1,248 232,471,290 30,257 20,713,383 182,731,aii2 1900 1,507 413,767,233 39,459 25,770,468 236,914,914 1905 1,531 515,636,792 48,139 34,542,897 298,358,732 ; Lumber and timber 1880 25,758 181,465,392 148,290 31,893,098 233,608.883 products. 1890 22,617 557,881,054 311,964 87,934,284 437.957.382 , 1900 23,053 400,857,337 413,335 148,007,845 555,197.271 1905 19,127 517,224,128 404,626 183, 021, .519 680,022.690 • Lumber, planing-mill 1880 2,491 38,070,593 37,187 14,431,654 73,424,681 products, including 1890 3,670 120,271,440 79,923 42,221,856 183,681,552 sash, doors, and 1900 4,198 118,948,556 73,510 32,621,704 167.786,122 blinds. 1905 5,009 177,145,734 97,674 50,713,607 247.441,956 Marble and stone 1880 2,846 16,498,221 21,471 10,238,885 31,415,150 work. 1890 1,321 24,041,961 21,950 15,314,598 41,924,264 1900 1,655 39,559,146 30,641 16,328,174 42,230,457 1905 1,642 66,526,724 40,905 25,032,725 63,059,812 Paper and wood pulp 1880 742 48,139,652 25,631 8,970,133 57,366,860 1890 649 89,829,548 31,050 13,204,828 78,937.184 1900 763 167,507,713 49,646 20,746,426 127,326,162 1905 761 277,444,471 65,964 32,019,212 188,715,189 Petroleum, reflning__ 1890 94 77,416,296 11,403 5.^872,467 85,001,198 1900 67 95,327,892 12,199 6,717,087 123,929,384 1905 98 136,280,541 16,770 9,989,367 175,005,320 Silk and silk goods. 1880 382 19,125,300 31,337 9,146,705 41,033,045 1890 • 472 51,007,537 49,382 17,762,441 87.298,454 1900 483 81,082,201 65,416 20,982,194 107,256,258 1905 624 109,556,621 79,601 26,767,943 133,288,072 Slaughtering and 1880 872 49,419,213 27,297 10,508,530 303,. 562, 413 meat packing. 1890 611 98,190,766 87,502 20,304,029 433,252,315 wholesale. 1900 557 173, 866,. 377 64.681 31,033,850 697,056,065 1905 559 219,818,627 69,593 37,090,399 801,757,137 Slaughtering, whole- 1890 507 18,696,738 6,473 4,000,947 128,359,353 sale, not including 1900 325 14,933,804 3,705 2,358,403 86,723,126 moat paeking. 1905 370 17,896,063 4,541 3,236,573 112,157,487 Smelting and refin- 1900 47 53,063,395 11,324 8,529,021 165,131,670 ing, copper. 1905 40 76,824,640 12,752 10,827,043 240,780,216 Smelting and refin- 1900 i 72,148,933 8,319 5,088,684 175,466,301 ing, lead. 1905 63,822,810 7,573 6,374,691 185,826,839 Structural ironwork. 1880 220 1.400.197 1.934 844.614 3,410.086 1890 724 21,968,172 17,158 10,235,701 37,745,294 1900 697 43,412,377 24,903 13,588,779 66,927,305 1905 775 76,598,507 34,276 19,760,210 90,944,697 Sugar and molasses, 1880 49 27,432,500 8.857 2,875,032 155,484,915 refining. 1890 393 24,013,008 7,043 2,385,654 123,118,259 1900 a57 184,033,304 14,129 6,917,829 239,711,011 1905 344 165,468,320 13.549 7,575,650 277,285,449 Tinware, copper- 1880 7,693 23,167,392 27,116 11,243,276 .50,183,811 smithing, and sheet 1S90 7,002 38,434,900 31,377 15,610,265 66,653,746 iron working. 1900 1,816 35,724,739 28,315 13,193,307 63,812,787 1905 2,366 124,500,133 39,475 20,608,179 97,974,838 Tobacco, chewing 1880 477 17,207,401 32,756 6,419,024 52,793,056 and smoking, and 1890 395 30.841,316 29.790 6,947,158 65,843,587 snuff. . 1900 437 43,856,570 29,161 7,109,821 103,754,362 1905 433 178,847,556 23,990 8,775,325 116,767,630 Tobacco, cigars, and 1880 7,145 21,698,549 53,297 18,464,562 63,979,575 cigarettes. 1890 10,956 59,517,827 87,000 36,475,060 129,693,275 1900 14,522 67,660,748 103,365 40,865,510 159,958,811 1905 16,395 145,135,945 135,418 55,864,978 214,350,051 Woolen goods 1880 1,990 96,095,564 86,504 25,836,392 160,606,721 1890 1,311 130,989,940 76,915 26,139,194 133,577,977 1900 1,035 124,386,262 68,893 24,757,006 118,430,158 1905 792 140,302,488 72,747 28,827,556 x42,196,658 Worsted goods 1S80 76 20,374,043 18,803 5,683,027 33,549,942 18)0 143 68,085,116 42,978 14,914,966 79,194,652 1900 186 132,168,110 57,008 20.092.738 120. 314.. 344 1905 226 162,464,929 69.251 26.269,787 165.745.052 GROWTH OF THE COTTON INDUSTRY. 175-' ^ Cotton production and manufacturiny hi the United States, also imports and exports of cotton manufactures. [From the Statistical Abstract of the United States.] Total com- iner- -cial crop. iak(3n for home con- sumption. By North- ern mills. By South- ern mills. Total. 1884 1885 188H 1887 1888 188!) 1890 1891 1892 1893 189 i 1895 189(5 1897 1898 1899 1900 1901 1902 1903 1904 1805 1906 1907 In thousands of bales. 5,718 1,537 340 5,706 1,437 316 6,575 1,781 381 6,499 1,687 401 7,047 1,805 456 6,939 1,790 480 7.297 1.780 545 8,674 2,027 613 9,018 2,172 684 6,664 1,652 723 7,532 1,580 . 711 9,837 2,019 852 7,147 1,605 900 8,706 1,793 999 11,216 2,211 1,254 11,256 2,217 1,415 9,422 2,047 1,597 10,339 1,964 1,583 10,768 2,066 2,017 10,674 1,966 1,958 10,002 2,046 1,889 13,654 2,292 2,270 11,234 2,335 2,292 18.540 2,510 2,495 1,877 1,753 2,162 2,088 2,261 2,270 2,325 2,640 2,856 2,375 2,291 2,871 2,505 2,792 3,465 3,632 3,644 4,562 4,627 5.005 Raw cotton Imported. Pounds. 7,019,492 5,115,680 5,072,334 3,924,531 5,497,592 7,973,039 8,606,049 20,908,817 28,663,769 43,367,952 27,705,949 49,332,022 55,350,520 51,898,926 52,660,363 50,158,158 67,398,521 46,631,283 98,715,680 74,874,426 48,840,590 60,508,548 70,963,633 104,791,784 Exports of manu- factures of cotton. Dollars. 11,885,211 11,836,591 13,959,934 14,929,342 13,013,189 10,212,644 9,999,277 13,604,857 13,226,277 11,809,355 14,340,888 13,789,810 16,837,396 21,037,678 17,024,092 23,566,914 24,003,087 20,272,418 32,108,362 32,216,304 22,403,713 49,666,080 52,944,033 82,805.412 imports of manu- factures of cotton. Dollars. 29,074,626 27,197,241 29,709,266 28,940,353 28,917,799 26,805,942 29,918,055 29,712,624 28,323,841 33,560,293 22,346,547 33,196,625 32,437,504 34,429,363 27,267,300 32,054,434 41,296,239 40,246,935 44,460,126 52,462,755 49,524,246 48,919,936 68,043,322 73.704,636 Every dollar sent abroad to pnrcltase ffoodM tliat rve can produce at home makes us. a dollar the poorer.T-H. K. Thur- ber, in the American Economist. Tbe safety- and interest of tbe people require that thex' should -promote such manufactures as tend to render them independent of others. — Washing^ton. Above all things ^ve should avoid the demagrojtrue as a pestilence and take counsel only of reason and rigrht. — Hon. C. W. Fairbanks, at St. Paul, Minn., Augrnst 31, 1903.' Mr. Bryan asks me what I would do fvith the trusts. I answer that I vrould restrain unlawful -trusts w^ith all the efficiency of injunctive process and -would punish -with all the severity of criminal prosecution every atempt on the part of a-ggregrated capital to suppress comipetition.— Hon. Wm. H. Taft, at Columbus, Ohio. Duty determines destiny. Destiny -which results front duty performed may bring anxiety and perils, but nevex* failure and dishonor. Pursuing duty may not al-ways lead by smooth paths. Another course may look easier and more attractive, but pursuing duty for duty's sake is al-ways sure and safe and honorable.— President McKlnley at ChicasTO, Oct. 19, 1898. We should no sooner debase our currency than w^e shoulA -weaken our coast defenses. "We should no more think of introducing unsound currency into oxir money system than •we should think of -weakening the steel armor plates upon our great battle ships -which are gallantly -withstanding the storm of Spanish shot.— Hon. C. W. Fairbanks, in U. S. Senate, June 3, 1898. I have revie-wed -what have properly come to be kno-vm' as President Roosevelt's policies. I have attempted to point out one or tw^o instances in which I -would Qualify details of future policies which he has sketched, but with these minor exceptions as to method, I am glad to express my complete, thorough, and sincere sympathy -with, and ad- miration for, the great conserving and conservative move- ment -with -which he has -with w^onderful success initiated and carried so far against bitter oppositit>n, to remedy the evils of our prosperity and preserve to us the institutions w^e have inherited from our fathers.— Hon. IVm. H. Taft, »t Columbus, Ohio. One vital, dominating fact confronts the Democratic party -which no oratory, -which no eloquence, -which no rhetoric can obscure: BRYAN'S NOMINATION MEANS TAFT'S ELECTION.— New York World. IROX AM) STEEL VliODlCTloy ■-«^~«nQ^-'l'-OJl^^-r{^oo-^<©5^l•*a>^^(^I»'^^-' I^ O CO r I CO M fO •* Ift t^ 0> C I O rH eoS So c - a •y. Z *^ f i^ a m -2o .*: — .ii D i^— (-5 h»l;^0 CO ' § V? X ?1 © < cft 05 i- < i^ir CO I -»« as lo 52 r^ i-i< SJ5lS2:g;?: . O -" 00 (M 1^ 35 3^ ( ' r- CO O 5? 1^ 1^ -*" > (M Oi CO so 11^ < i«Slft(M0iC0SOlO&0>C5©C0< I OI~ t^ X I rH 55 T-IM inoi M(M ■ ii-iifMnc;i-'-»'©c>i-HO'*«oirott>r-iircc«peoxx lir.i-llftM'lCOI~fr-l(r>lft'^-f'«Cr~-*r-(i-l*C-. 0^rH lCOCO(NIM(M0-li-t^i-~ir>ft©o6wr-Oi©r-i©eoot>.'Or-<(Neo©©©©©© |^32?SgSSfeSgSSS§SS;S8SS'^S^! iSSS 5-1 s^h ODt>.t^03!-J<2i-<50gQ«5^'MlRlN«OCir. ©?C«5COt-OiMI ■^i-lt^-fX&l--e%«5l--'5'lfM^«r5Or-l<35i-'200O5b0r-l&l ir(MOjr^x©xr^Xi^ip-f(Mco m I^ © CO r- rH r-i W OJ ^ I a> i I 25 S 111 • 0-1 in g: o 00 r-- © c-j t-! © , • C5 CO r- iri © 1^ ^ CO 1- — < '0r-r~t^05io©xi I CO I^ ■* 0> CO X ( ^ t- X O CO © i-i C-l C7> C: 11^ 1^ -^ r~ C5 !M -* rH O ' C -^ X « r- in T-H o CO !?■. X 1^ © 0.1 r- i-i 1-1 X ifi «. .■ -^ >j^j .- -•— ., .> .^, ^. > 0(Mlftt~l»l0l^inC0X00(M$0iO-rt5Or^-tOCOa-1< i Q in © ir «D o (n' O r-^ CTi' 00 r-5 )«COeOCO'o :;5 c<5 I CO M f- r-l T-H O l^ CD io i C- :0 "M O m M O If? t^ fjl C5 O rH C-1 CO > — CDi-c-foeO'-^iocCO'Mt^C/jiriro ixift-*t^oicoco-7<«c5ffocicr)i-iC5 ) OJ 35 35 > -« CO '^^ • (M -H (>5 >r< -^ ,-1 -« -M to CO r^ »n -« -".-I 1-1 CO 00 s s )fQQl'-t^t-l30i-ICOp'-IOOO )OMC<30l-CQO-t«OOr-'CO • ococooocoo-^i-ir~05(» I m" CD oT t^ r-T Co" 1-H C-l ■^'' r-J' -* t-" I (M ^ .-H lo CD i-i t- ec CO o •_(MQO'Mi-l ^ -*M'*'©m CO r-i 1-1 iM C5 00 m - -M i) t- t^ «S -K . SS =>«y ca « r° csx: is "? s"S "S ° o**^ s"^ i-i bo o (3 ^^ o ™ c ^.1 £5 II cc 1s& ""^ a C 03 4) 55 S «- 5? ±3 i^i ^§?s 03T3<» g«in' -I- ^^ S 0,000 7,750,000 7,420,000 8,250,000 7,703,000 8,660,000 8,796,000 8,610,000 9,421,000 8,9eo,ooo 7,929,000 8,680,000 8,935,000" 8,694,000 9,608,000 10,109,000 9.924,000 Tons. 40,000 46,000 402,000 90,000 120,000 170,000 530.000 1,300,000 2,730,000 2,690,000 4,530,000 5,465,000 6,271,000 6,771,000 7.196,000 8,013,000 8,384,000 7,754,000 8,395,000 9,860.000 9,899,000 10,703,000 12,099,000 12,672,000 Tons. 60,000 85,000 570,000 140.000 220,000 350,000 900,000 1,180,000 1,730,000 1,630,000 1,720,000 2,006,000 2,302,000 2,444,000 2,485,000 2,537,000 2,671,000 2,351,000 2,367,000 2,796,000 2,927,000 3,028,000 3,267,000 , 3.532,000 Tons. 130,000 180,000 270,000 385,000 480,000 640,000 1,100,000 1,710,000 2,090,000 2,310,000 3,060,090 4,247,000 5.001,000 5,267,000 5,808,000 6,461,000 6,686.000 6,886,000 6,876,000 6,677,000 7,322,000 7,539,000 7,360,000 7,591,000 Tons. 460,000 616,000 920,009 1,570,000 2,677,000 4,420,000 7,180,000 11,90.5,000 18,135,000 18,100,000 25,163,000 28,867,000 30,857,000 32,930,000 35,872,000 40,055.000 40,490,000 40,798,000 44,139,000 46,277,000 45,339,000 53,900,0<10 58,142,00) *50,500,000 ♦Preliminary estimate. Not*.— OfBcfal flgfures of the respective national statistical offices of the T'nited St^ates, the United Kingdom, Germany and France. Figures for all ( llier countries taken from the French and Swedish Mineral Statistics. EJvery man f\lio has made fvealtli or nsed it in developing? prreat lesritimate l»ti»iness enterprises has heon of benefit and not harm to the eonntry at large. — President Roosevelt at Spolvane, Wash.. May 26, 190.3. The exposure and pnnishment "of pnblic corruption is an honor to a nation, not a disftpraee. Tlie disp^race lies in tol- iM'ation, not in correction. — President Roosevelt's annual mes- sage, second session Fifty-seventli Congress. Whenever the Government revenues need an increase or readjustment I should strongly favor the imposition of u graduated Inheritance tax and, if necessary for the reve- nues, a change in the Constitution authorizing a Federal income tax. — Hon. Wm. H. Taft, at Columbus, Ohio. Every citizen of the United States has an interest and a right in every election T*'ithin tlie Republic where na- tional representatives are chosen. We insist that these laws relating to our national elections shall be enforced, not nullified.— President Garfield. The real evils connected with the trusts can not be reme- die«l by any change in the tariff laTvs. The trusts can be damaged by depriving them of the benefits of a protective tariff only on condition of damaging all their smaller com- petitors and all the vrage-earners employed in the industry. President Roosevelt, at Cincinnati, September 20, 1902. Mr. Bryan is continually asking -why some of the managers of unlawful trusts have not been convicted and sent to the penitentiary? I sympathize vrith him in his •wish that this may be done, because I think that the im- prisonment of one or tivo would have a jnost liealthy efFecf throughout the country; but even Trithout such imprison- ment, I believe that the prosecutions which are now^ on foot and the injunctions which have alreatiy been issued have had a marked effect on business methods.— Hon. Wm. H Taft, at Columbus, Ohio. One vital, dominating fact confronts the Democratic l»arty vrhich no oratory, which no eloau'^iice, ^hich no rhetoric can obscure: BRYATV'S NOMINATION MEANS TAFT'8 ELECTION.— Ne^ York World. AGRICULTURE. .4£rricn!tnral Prosperity Under Republican. Administration, Depression Under Democratic Rule. The farmers of the country create most of its wealth and, during the last eighteen years, sent abroad 65 per cent of our exports in addition to producing much of the material from which manufactures are made that are used at home and abroad. The Republican administration has greatly developed agri- cultural investigation in the last eleven years, until scientific in- quiry is being made in all our States and Territories and in the isles of the sea under our flag, to the end that we may produce the necessities of life for ourselves and those for whom we are responsible. The power of the man and the acre to produce is being increased all over the land ; new grains, grasses, legumes, fruits, fibers, and vegetables are being imported from foreign countries into continental United States and into our islands in order to diversify crops and bring into productiveness sec- tions of our country that have heretofore been barren. The weather, the animals, the plants,the forests, the soils, our roads our foods, our insect friends and enemies are being studied from the farmer's standpoint by over 2,000 scientists in the Department of Agriculture, which has grown in helpfulness every day since 1896. The farm value of the wheat, corn, and oat crops in 1907 was nearly two and one-half times that of 1896, the last year of the Cleveland administration. This is rather a startling state- ment, but it is borne out by the Yearbook published by the Department of Agriculture, and made up from ofiicial figures which have no partisan bias. For the year 1896 the farm value of corn was $491,000,000; that of the wheat crop, $311,000,000; and that of the oat crop $132,000,000; the total farm value of the three crops for that year being $934,000,000. The farm value of the corn crop in 1900 was $751,000,000 ; that of the wheat crop, $323,500,000; and that of tK'e oat crop, $208,700,000, making the total farm value of the three crops in 1900 $1,283,000,000, or $349,000,000 more than the farm value of the same crops in 1896. In 1907 the farm value of the corn crop was $1,337,000,000; that of the wheat crop, $554,400,000; and that of the oat crop, $334,600,000 ; a total farm value of the thi-ee crops in 1907 of $2,226,000,000, or $943,000,000 more than the farm value of the same crops in 1900; and $1,292,000,000 more than their farm value in 1896. Increase in Farm .Values. This increase in farm value under Eepublican administra- tions is not accidental. It is a matter of history that rural prosperity and Republican rule are coincident ; it is equally a matter of record that agricultural depression, mortgage fore- closures, and low prices for farm products accompany Dem- ocratic administration of national ait'airs. The prosperity of the farmer depends upon the prosperity of all other industrial elements of our population. When the industrial classes are employed at American wages their consumption mi farm pro- ducts is on a liberal scal^ and they are able and willing to pay good prices for the necessities and luxuries of life. Under such conditions there is a good market for all the farmer hass to sell. When the reverse is true and the workmen are idle or working scant time at cut wages, they are forced to practice pinching economy and the farmer necessarily loses part of his market. The American farmer is prosperous when well paid 179 180 AGRICULTURAL PROSPERITY. workmen are carrying well-filled dinner pails, a condition which has aeconipanied Ivepublican supremacy since the birth of tlie party. The records for the last six administrations, four Republican and two Democratic, show that the farmers received more for their crops under Republican administrations than under Demo- cratic administrations. The farm value of the corn' crops for the four years of Cleveland's first administration, from 1885 to 1888, aggregated $2,570,000,000. In the four years of the Harrison administration which followed, the farm value of the corn crop aggregated $2,831,000,- 000, an increase in value of more than $260,000,000 over that ol' this crop during the Cleveland administration. For the next four years, while Mr. Cleveland was President and Democratic policies were in force, the farm value of the com crop aggregated $2,182,000,000, a decrease of $649,000,000 from that during the Harrison administration. Then came the Republican administration of William Mc- Kinley and for the four years of that administration the farm value of the corn crop aggregated $2,434,000,000, or an increase of $252,000,000 over that of the last Democratic administration ; in the succeeding four years, 1901-4, it was $3,979,000,000, or nearly double the value of the crop of the last Democratic ad- ministration; while in the first three years of the present ad- ministration it was $3,620,000,000, or, in three years, $1,438,000,000 more than in the four years of the second Cleveland adminis- tration. The value of the live stock on the farms of the country, which was reported by the Agricultural Department, January 1, 1897, as $1,655,000,000, was reported at $4,331,000,000 in 1907, an increase of $2,676,000,000 in eleven years. With the increased activity, increased earnings, and increased consimaption, the farmer has received greatly increased prices for his productions. The Agricultural Department reports an increase of $332,000,- 000 in the farm value of the cereals alone in 1900, as compared with 1896, and a further increase of $1,036,000,000 in 1907, as compared with 1896, making a total increase of $1,363,000,000, these figures representing the actual value upon the farm before leaving the hands of the producer, while other articles of farm production show an equal advance in value. The exportation of agricultural products increased from $574,- 000,000 in 1896 to $845,000,000 in 1900, and to $1,055,000,000 in 1907, a total increase of $481,000,000 in the mere surplus re- maining after supplying the great and rapidly expanding home market. Wheat and Oats. The same law of fluctuation according to political policies in administration held good as to wheat and oats. The farm value of the wheat crop for the four years of the first Cleveland administration aggregated $1,285,000,000, and for the next four years, including the Harrison administration, the farm value of the wheat crop aggregated $1,513,000,000, an increase of $228,000,000 in the farm value of the wheat over that for the preceding Democratic administration. For the next four years, under the second Cleveland admin- istration, the farm value of the wheat crop aggregated $988,000,- 000, a shrinkage of $525,000,000 in the value of the wheat crop from the preceding four years under Republican adminis- tration. Again came a change of policy in government and during the first four years of the McKinley administration the wheat crop took another advance in value. For these four years of tTic McKinley administration the farm value of the wheat crop ag- gregated $1,464,000,000, an increase in value amounting to nearly $500,000,000, In the next four years, or during the McKinley-Roosevelt administration, the wheat crop was worth $1,843,000,000 to the farmers, or $855,000,000 more than during the second Cleve- land administration. For the succeeding three years of the AOBIGULTURAL PROSPERITY. 181 Republican administration, 1905-7, the farm value of the wheat crop amounted to $1,563,000,000, almost as much in three years as in the preceding four years and $576,000,000 more than in the four years of the second Cleveland administration. The farm value of the oat crop in the four years of the first Cleveland administration aggregated $762,000,000 ; for the next four years, under the Harrison administration, the farm vakie of the oat crop increased to $835,000,000; for the next four years, under Cleveland, this crop decreased in value to $699,000,000 ; for the next four years, under McKinley admin- istration, it increased to $741,000,000, and during the four years of the McKinley-Roosevelt administration, it was $1,145,000,000. During the last three years of the liepublican administration its aggregate value has been $918,000,000, or $219,000,000 more in three years than during the preceding four years of the second Cleveland administration. The farm value of the hay crop in 1896 was $388,000,000; in 1900 it was $445,500,000; and in 1907 it was $1,336,901,000. The farm value of the potato crop in 1896 was $72,000,000; in 1900 it was $90,800,000; and in 1907 it was $183,900,000. Farm Animals. During the eleven years of Republican administration, the farm animals of the country have increased in value from $1,655,000,000 on January 1, 1897, to $4,331,000,000 on January 1, 1908. The number of horses has increased from 14,365.000 to 19,- 992,000; and their value from $453,000,000 to $1,868,000,000. The number of^" mules has increased from 2.216,000 to 3,869,000 and their value from $92,000,000 to $417,000,000. The number of milch cows has increased from 15,942,000 to 21,194,000, and their value from $369,000,000 to $650,000,000. The number of cattle other than milch cows has increased from 30,508.000 to 50,073,000, and their value from $508,000,000 to $846,000,000. The number of sheep has increased from 36,819,000 to 54,-» 631,000 and their value from $67,000,000 to $212,000,000. The number of swine has increased from 40,600,000 to 56,- 084,000, and their value from $166,000,000 to $330,000,000. It will reacb'ly be perceived from the foregoing figui'es that the increase %i total value is far more than proportional to the increase in number. The total value of sheep, for ex- ample, is rnore than thrice ; that of mules, three and one-half times; and that of horses more than four times as great as it was wiien the Eepublicans took hold of the administration of the country eleven years ago. The "man with the hoe" has only to look at the record to see which way points to prosperity. Value of Farm Animals nnder Harrison, Cleveland, McKin- ley and Roosevelt. After lands and improvements, the greatest item of wealth of the American farmer is his live stock, and the value of such farm stock is a perfect barometer of his financial condition. Practically the highest point ever reached up to that time was at the close of 1892, the last year of the Harrison administration, when the valuation was $2,462,000,000, the coimtry being pros- perous, labor fully employed, and wages good. The lowest point reached in the last 23 years was at the close of 1896, when mills were closed, fires drawn, labor idle, capital in hiding, and business confidence destroyed by four years of Democratic administration. In four years the shrinkage of this form of farm wealth had amotinted to 33 per cent, making $807,- 000,000 the price which the owners of live stock paid for the Democratic experiment of 1892. In the years of industrial ac- tivity which followed the election of McKinley, the value of li\e stock has kept pace uy:»ward with the increased earning and spending capacity of American labor, and on January 1. 1900, it had advanced to $2,288,000,000, or a rise of $633.0o6.000 or 32 per cent, from the depths of depression. The figures' in detail, as shown in the official reports of the Department of Agriculture, are as follows: lit A^miOULTURAL PROSPERITY, Value of live stock. Jan. 1. 1892, HarrlBon. Jan. 1, 1897, Cleveland. Jan. 1, 1900, McKInley. Jan. 1, 1904, Roosevelt. Jan. 1, 1908, Roosevelt. B#rafl8 Mules Oows — Cattle Sheep HoKS $1,007,598,636 174,882,070 351,378.132 570,749,155 116,121,21)0 241,031,415 $466,649,396 92,302,000 369,239,993 607.929,421 67,020,942 166,272,770 $603,969,042 111,717,092 514,812,106 689,487,260 122,665,913 215,725,000 $1,186,940,298 217,582,832 508,841,489 712.178,134 133,530,09!) 289,224,627 $1,867,530,000 416,939,000 650,057,000 845,938,000 211,736,090 339,030,000 Total 2,461,756.698 1,655,414,612 2,288,375,413 2,998,247,479 4,331,230,000 BXCHANGE VALUE] OP FARM PRODUCTS. Prloea of Ra^v Materlala as Compared with Prices of Manu- factured Articles, 1806 and 1907. During the last few years, when prices in general have ad- vanced, it is interesting to determine in what degree the pro- ducer of the farm products has been benefited by the rise. The table which follows has been prepared from official fig- ures published in Bulletin No. 75 of the United States Bureau of Labor, and shows the per cent of advance in 1907 as compared with 1896, the last year of Democratic administration, the com- modities being grouped as in the original source. The compari- sons are between wholesale prices, as in the language of the origi- nal report "they are more sensitive than retail prices and more quickly reflect changes in conditions." Comparing 1907 with 1896, farm products show an advance of 75.10 per cent; that is, for every $100 received from the sale of farm products in 1896 the farmer received in 1907 $175.10 for the same quantity. Food, etc., advanced 40.57 per cent ; cloths and clothing, 38.77 per cent ; fuel and lighting, 29.43 per cent, etc. It is seen that the advance in farm products has been much greater than in any of the other groups of commodities, as compared with fuel and lighting and with house furnishing goods it being more than twice as great, while as compared with drugs and chemicals the advance has been more than four times as great, ^t will likewise be observed that the wholesale prices of food have increased much more than the retail prices. The purchasing power of farm products in 1907 increased materially over 1896. The same quantity of farm products would purchase in 1907 24.56 per cent more food than in 1896. It would purchase 26.18 per cent more cloths and clothing, 35.28 per cent more of the articles included in the fuel and lighting group, 14.41 per cent more metals and implements, 11.33 per cent more himber and building materials, 47.94 per cent more drugs and chemicals, 38.89 per cent more house furnishing goods, and 25.92 per cent more of the articles included in the miscellaneous group. This shows that no one Jias been benefited by the advance in prices as much as the farmer; that in 1907 the price of farm pro- ducts was 15.10 per cent, or three-fourths greater than in 1896; that even when the advance in price of other articles is consid- ered the purchasing power of farm products in 1907 was, v)hen compared with other groups of articles, from 11.33 per cent to 47.94 per cent greater than in 1896. The following table shows the comparisons : Tlie leader of tlie Republican party dnrins' the Civil War Tvas Abraham Lincoln. In all the varieties of contro- versy ^fvhich it has since had to deal, it has never lost the inspiration of his leadership.— Hon. Wm. H. Taft, at Kansas City, Mo. Tn th« stmgrele for hlgrher things, association of men and of women everywhere, orgraniKed for «vorthy purposes, can, because of the streng-th antl po^ver that come from or- p;niii%ntion, exert a lar^e influence for ^ood. — Address of Sec- retary Cortelyou, at the annual banquet of the Auburn Busi- ness Men's Association, Auburn, N. Y., Wednesday, April 22, li>08. PRICES OF FARM PRODVCTki. 183 Comparative advance in the price of farm products and other groups of commodities, 1907, compared ivith 1896. [Oompiled from Bulletin No. 76. United States Bureau of Labor.] Groups. Advance. ^"/.tS^^ Farm products.— — Food, etc Cloths and clothing Fuel and lighting Metals and implements Lumber and building materials. Drugs and chemicals House furnishing goods , Miscellaneous articles All commodities- It is interesting to notice in the tables which follow the com- parative advance in the price of certain related commodities. The average price in 1907 has been compared with the average price in 1896. In practically every case the raw material advanced more than the finished product. The first table shows that live cattle advanced 39.18 per cent, while fresh beef advanced but 26.74 per cent.^ With the same iveight of live cattle 9.82 per cent more fresh heef could he pur- chased in 1907 than in 1896. Hogs advanced 77.78 per cent and smoked hams 38.20 per cent. With the same weight of live hogs 28.6^ per cent more ham could he bought in 1907 than in 1896. Sheep which the farmer sells advanced 61.25 per cent; mutton which the workingman buys advanced 39.93 per cent. With the same weight of sheep 15. 2\ per pent more mutton could he pur- chased in 1907 than in 1896. Corn advanced 104.72 per cent, while corn meal advanced but 69.90 per cent. With the same quantity of corn 20.5 per cent more corn meal could he purchased in 1907 than in 1896. Wheat, which the farmer raises, advanced 41.45 per cent, while wheat flour for everybody's use advanced 19.08 per cent. That is, with the same quantity of icheat 18.79 per cent more flour could he purchased in 1907 than in 1896. Eaw cotton advanced 50.00 per cent, cotton bags 51.20 per cent, calico 27.50 per cent, cotton flannels 48.56 per cent, cotton thread 35.34 per cent, cotton yarns 43.98 per cent, denims 39.85 per cent, drillings 46.91 per cent, ginghams 38.64 per cent, cotton hosiery 7.62 per cent, print cloths 84.16 per cent, sheetings 35.73 per cent, shirtings 40.35 per cent, and tickings 34.79 per cent. The average advance for cotton goods was but 41.07 per cent, against 50.00 per cent for the raw cotton. With the same quantity of raw cotton 6.33 per cent more manufactured cotton goods could he purchased in 1907 than in 1896. Wool shows an advance of 72.10 per cent, blankets (all wool) 33.26 per cent, broadcloths 46.30 per cent, carpets 36.59 per cent, flannels 44.15 per cent, horse blankets (all wool) 44.16 per cent, overcoatings (all wool) 43.94 per cent, shawls 20.09 per cent, suitings, 51.59 per cent, underwear (all wool) 24.92 per cent, women's dress goods (all wool) 76.65 per cent, and worsted yarns 75.45 per cent — an averag^e advance for woolen goods of 44.06 per cent, while the raw material — wool — advanced 72.10 per cent. Or with the same quantity of wool 19.46 per cent more manufactured woolen goods could he hought in 1907 than in 1896. The following table shows this information in tabular form; Comparative advance in prices of certain related commodities, 1907, compared with 1896. [Complied from Bulletin No. 75, United States Bureau of Labor.] Per cent. Cattle 39.18 Fresh beef 26.74 1H4 r RICES OF FARM PRODUCTS. Per cent. 1 1 (•^•s 77.78 Hams 38.20 Sheep 61.25 iMiitton 39.93 ( orn 104.72 Corn meal 69.90 Wheat 41.45 Wheat flour 19.08 Cotton — Ui)lanfl middling- 50.00 Cotton bags 51.20 Calico 27.50 Cotton flannels 48.56 Cotton thread 35.34 Cotton yarns 43.98 Denims ' 39.85 Drillingrs 46.91 Hosiery (cotton) 7.62 Print cloths 84.16 Sheetings 35.73 Shirtings 40.35 Tickings 34.79 Average for cotton goods 41.07 , > - Wool 72.10 Blankets (all wool) 33.26 Broadcloths 46.30 Carpets 36.59 Flannels 44.15 Horse blankets (all wool) 44.16 0\ ei'coatings (all wool) 43.94 ShaAvls • 20.09 Suitings 51.59 Underwear (aH wool ) 24.92 Women's di-ess goods (all wool) 76.65 W^orsted yarns 75.45 Average for woolen goods 44.06 Market Value of Farm Prodncts in 1896 and 1907 ivlien meais- nred l>y tlie Wliolesale Prices of Staple Articles. The farmer and stock raiser measures the value of his grain and sto(;k not only by the amount of money he will receive per bushel or per pound, but also by the value of such articles as he must buy for use by his family and on the farm. No official retail prices, other than for certain articles of food, liave been published for recent years, but the United States Bu- reau of Labor in its bulletin of March, 1908. published wholesale prices of the staple articles in general iise. From this publication the following tables have been prepared, showing the value of corn, wheat, oats, cattle, hogs, and dairy butter in 1896 and 1907, when measured by the value of other staple articles which the farTner must buy. W'hile these figures do not represent the actual purchasing power (as all prices are wholesale), yet the figures shown for the two years, 1896 and 1907, are in practically the same proportion as retail prices would shovv^. Ten bushels of corn in 1896 was equal in value to 20.9 pounds of Kio coffee, while in 1907 it was equal to 80.2 pounds, or about four times as much. In 1896 10 bushels of corn was equal in value to 56.9 pounds of granulated sugar, in 1907 equal to 113.5 pounds; in 1896 equal to 49.1 yards of calico, in 1907 to 87.7 yards; in 1896 equal to 54.7 yards of gingham, in 1907 to 80.2 yards; in 1896 to 41.5 yards of Indian Head sheeting, in 1907 to 63.2 yards ; in i896 to 37.7 yards of Lonsdale shirtings, in 1907 to 51.5 yards; in 1896 to 19 bushels of stove coal (anthracite), in 1907 to 30.7 bushels; in 1896 to 24.8 gallons of refined petroleum, in 1907 to 39.2 gallons; in 1896 to 95 pounds of 8-penny cut nails, in 1907 to PRICES OF FARM PRODJJCTS. 185 244 pounds ; in 1896 to 88 pounds of 8-penny wire nails, in 1907 to 249 pounds; in 1896 to 10.7 ounces of quinine, in 1907 to 29.7 ounces. It must be borne in mind that these values are based on the average yearly prices of these articles. The comparative values of corn, w^heat, oats, cattle, hogs, and dairy butter presented in the tables which follow show wonderful increases : Value of 10 bushels of com iit 1S96 and 1907 tchen measured by the iDholesale prices of the following staple articles. [Compiled from Bulletin No. 75, United States Bureau of Labor.] Articles. Coffee, Rio, No. 7 pounds- Sugar, granulated pounds- Tea , Formosa , tine pounds- Shoes, men's calf bal., Goodyear welt pairs. Shoes, women's solid grain . pairs. Calico, Cocheeo prints yards- Denims, Amoskeag yards- Drillings, brown, PeppereU yards. GiQghams, Amoskeag yards. Hosiery, women's cotton hose, 26 to 28 oz . pairs. Overcoatings, chinchilla, cotton warp yards. Sheetings, bleached, 10-4, Wamsutta S. T yards. Sheetings, brown, 4-4, Indian Head yards. Shirtings, bleached, 4-4, Lonsdale yards. Suitings, indigo blue, all wool, 14 oz. Middlesex yards. Tickings, Amoskeag, A. C. A yards. Wonen's dress goods, cashmere, cotton warp, Atlantic F.. yards. Coal , anthracite, stove bushels. Petroleum, refined, 150° test ..gallons. Nails, cut, 8-penny, fence and common pounds. Nails, wire, 8-penny, fence and common... pounds. Carbonate of lead (white lead), American, in oil pounds. Cement, Portland, American barrels. Quinine, American ounces. Glassware, tumblers, % pint, common 20.9 80.2 56.9 113.5 10.0 23.0 a b c d 49.1 87.7 26.1 38.2 45.0 64.0 54.7 80.2 39.0 76.0 5.9 10.8 8.8 17.3 41.5 63.2 37.7 51.. 5 2.3 3.1 25.3 38.5 20.3 23.6 19.0 30.7 24.8 39.2 95.0 244.0 88.0 249.0 49.9 75.8 1.3 3.2 10.7 29.7 172.0 422.0 a 1 pair and 18 cents over. c 3 pairs and 3 cents over. b 1 pair and $2.48 over, d 5 pairs and 25 cents over. Value of 10 bushels of wheat in 1896 and 1907 when measured hy the ivholesale prices of the following staple articles. [Compiled from Bulletin No. 75, United States Bureau of Labor.] Articles. 1907. Coffee, Rio, No. 7 pounds.. Sugar, granulated pounds.. Tea, Formosa, fine .1 pounds- Shoes, men's calf bal., Goodyear welt pairs- Shoes, women's solid grain pairs.. Calico, Cocheeo prints yards.. Denims, Amoskeag yards.. Drillings, brown, PeppereU yards.. Ginghams, Amoskeag yards.. Hosiery, women's cotton hose, 26 to 28 oz pairs.. Overcoatings, chinchilla, cotton warp yards.. Sheetings, bleached, 10-4, Wamsutta S. T yards.. Sheetings, brown, 4-4, Indian Head yards.. Shirtings, bleached, 4-4, Lonsdale yards.. Suitings, indigo blue, all wool, 14 oz., Middlesex yards.. Tickings, Amoskeag, A. C. A yards.. Women's dress goods, cashmere, cotton warp, Atlantic F.-yards.. Coal, anthracite, stove bushels- Petroleum, refined, 150" test gallons.. Nails, cut, 8-penny, fence and common pounds.. Nails, wire, 8-penny, fence and common pounds.. Carbonate of lead (white lead), American, in oil pounds.. Cement, Portland, American pounds.. Quinine, American ounces.. Glassware, tumblers, % pint, common 52.0 137.9 141.5 195.1 24.8 39.4 a b c d 122.2 150.7 64.9 65.7 111.9 110.0 135.9 137.9 98.0 131.0 14.7 18.5 21.9 29.7 103.1 108.7 93.6 88.5 5.6 5.3 62.9 66.1 50.5 40.6 47.3 62.7 61.7 • 67.4 ^6.0 420.0 219.0 429.0 124.0 130.2 3.2 5.5 28.7 61.1 427.0 7S«.0 a 2 pairs and $1.61 over. 7 pairs and 56 cents over. b 3 pairs and 67 cents over. d 9 pairs and 1 cent over. 18b PRICEi^ OF FARM PRODUCTS. Value of 10 bushels of oats in 1S96 and 1907 when mcnHured by the wholesale prices of the following staple articles. [Oompiled from Bulletin No. 75. United States Bureau of Labor.] Articles. CofTee, Rio, No. 7— pounds.. Sugar, granulated pounds.. Tea, Formosa. (Ine _ — jO luds.. Shoes, men's calf bal., Goodyear welt - pairs.. Shies, women's solid grain ^ *. .,_.— ^ .^-.p.iirs— Calico, Cocheco prints yards.. Denims, Amoskeag ► ■ yarls— Drillings, brown, Pepporell _ yar.'.s— Ginghams, Amoskeag yards.. Hosiery, women's cotton hose. 26 to 28 oz.-^ ..pairs.. Overcoatings, chinchilla, cotton warp yards.. Sheetings, bleached, 10-4, Wani.sutta S. T ...yards.. Sheetings, brown, 4-4, Indiiin Head _, yards.. Shirtings, bleached, 4-4, Lonsdale , .*. yards.. Suitings, Indigo blue, all wool, 14 oz., Middlesex.. ...yards.. Tidkings, Amoskeag, A. 0. A yards.. Women's dress goods, cashmere, (Otton warp, Atlantic P_.yards-. Coal, anthradte, stove b.ishels.. Petroleum, refined, 150° test gallons.. Nails, cut, 8-penny, fence and common V>ounds.. Nails, wire, 8-penny, fence and common pounds.. Carbonate of lead (white lead), American, in oil pounds.. Cement, Portland, American barre's.. Quinine, American oimcei-. Glassware, tumblers, % pint, common 1893. 1»07. 14.6 68.4 39.7 96.8 7.0 19.0 a b c d 34.3 74.8 18.2 32.6 31.4 51.6 38.2 68.4 28.0 6'i.0 4.1 9.2 6.2 14.8 29.0 53.9 26.3 43.9 1.6 2.6 17.7 32.8 14.2 20.2 13.3 26.1 17.3 33.4 CO.O 208.0 62.0 212.0 31.8 61.6 0.9 2.7 7.5 25.4 120.0 360.0 a Lacks 60 cents of price of 1 pair, c 2 pairs and 10 cents over. b 1 pair and $1.70 over, d 4 pairs and 48 cents over. Value of hogs (heavy J per 100 pounds in 1896 and 1007 when measured by the wholesale prices of the folloiviiig staple articles. [Compiled from Bulletin No. 75, United States Bureau of Labor.] Articles. 1893. 1907. CofTee, Rio, No. 7 _ ...pounds— .--pounds.. ...pounds— pairs.. pairs.. yards— yards.. 27.2 74.1 13.0 a c 64.0 34.0 58.6 71.1 51.0 7.7 11.5 54.0 49.0 3.0 33.0 26.4 24.8 32.3 124.0 115.0 64.9 1.7 14.0 224.0 92 .,4 Sugar, granulated 130.7 Tea, Formosa, fine. Shoes, men's calf bal.. Goodyear welt Shoes, women's solid grain Calico, Cocheco prints _. Denims, Amoskeag 26.4 b d 101.0 44.0 Drillings, brown, Pepperell Ginghams, Amoskeag Hosiery, women's cotton hose, 26 to 28 os; Overcoatings, chinchilla, cotton warp Sheetings, bleached, 10-4, Wamsutta S. T Sheetings, brown, 4-4, Indian Head yards.. ....yards.. pairs— yards.. yards-- yards 73.7 92.4 88.0 12.4 19.9 72.8 Shirtings, bleached, 4-4, Lonsdale. Suitings, indigo blue, all wool, 14 oz., Middlesex ^ricklngs, Amoskeag, A. C. A Women's dress goods, cashmere, cotton warp, Atlantic Coal, anthracjte, stove Petroleum, refined, 150" test... yards— .__ -yards.. yards.- F-. yards.. ...bushels.. ...gallons-. ...pounds.. ...pounds.. ...l)ounds.. barrels.. 59.3 3.6 44.3 27.2 35.3 45.2 281.0 Nails, wire, S-penny, fence and common ..— .. Carbonate of lead (white lead), American, in oil Cement, Portland, American 287.0 87.2 3.7 Quinine, American onnnes 34.3 Glassware, tumblers. % pint, common 486.0 a 1 pair and 96 cents over. b 2 pairs c 3 pairs and 81 cents over. d 6 pairs and 48 cents over, and 4 cents over. ■Wlien*ver tlie InterHtate commerce commis.sion tlee«is it tniportant as an aid in fixing? rates to deteriniue what it vronld cost noTV to rebuild any railroad. It lias complete power to do so.—Hon. Wm. H. Taft, at Columlbns, Oliio. For an Individnal as for a party, a sood record is a lirood r)iatforni to stand on. Fremont, Ijincoln to Mcltinley and Roosevelt — "n-liat a record, and what an assnrniice for the future. — Hon. Georere B. Cortelyou, in an address to the Ne-»v York State Leagrue of Republican Clubs, November 5, 1»04. PRICES OF FARM PRODUCTS. 187 Value of cattle (good to extra steers) per 100 pounds in 1896 and 1907 when measured Jyy the wholesale prices of the following staple articles. [Compiled from Bulletin No. 75. United States Bureau of Labor.] Articles. 1896. 1907. Coffee, Eio, No. 7 Sugar, granulated Tea, Formosa, fine Shoes, men's calf bal., Goodyear welt- Shoes, women's solid grain Calico, Cocheco prints Denims, Amoskeag : pounds.. pounds— pounds.- pairs.. pairs.- yards.. yards 36.0 97.8 17.2 a c 84.8 44.9 77.4 .93.9 68.0 10.2 15.2 71.3 61.7 3.9 43.5 34.9 32.7 42.7 163.0 152.0 85.8 2.2 18.4 296.0 93.9 132.8 26.9 b d 102.6 44 7 Drillings, brown, Pepperell Ginghams, Amoskeag.. ex "Atiant yards— yards— pairs.. yards.- yards.- yards— yards.. yards— yards.. ic F--yards— bushels.. gallons.- pounds.. pounds.. pounds.. barrels- ounces 74.9 93 9 Hosiery, women's cotton hose, 26 to 28 Overcoatings, chinchilla, cotton warp.. Sbeetings, bleached, 10-4, Wamsutta S. Sheetings, brown, 4-4, Indian Head Shirtings, bleached, 4-4, Lonsdale Suitings, indigo blue, all wool, 14 oz., Tickings, Amoskeag, A. C. A Women's dress goods, cashmere, cotton Coal, anthracite, stove.. _. oz "t-II MTd'dfes warp. 12;6 20.3 74.0 60.3 3.6 45.0 27.7 35 9 Petroleum, refined, 150° test Nails, cut, 8-penny, fence and common 45.9 286.0 Nails, wire, 8-penny, fence and common Carbonate of lead (white lead), American, in Cement, Portland, American Quinine, American oiill-I 292.0 88.6 3.8 34 8 Glassware, tumblers, % pint, common- 494.0 a 1 pair and $2.03 over. c 5 pairs and 18 cents over. b 2 pairs and 57 cents over, d 6 pairs and 14 cents over. Value Of 20 pounds of butter (New York State dairy) in 1896 and 1907 when measured by the ivholesale prices of the fol- lowing staple articles. [Compiled from Bulletin No. 75, United States Bureau of Labor.] Articles. 1907. Coffee, Rio, No. 7 pounds Sugar, granulated pounds Tea, Formosa, fine p#unds Shoes, men's calf bal., Goodyear welt pairs Shoes, women's solid grain.. pairs Calico, Cocheco prints yards. Denims, Amoskeag yards. Drillings, brown, Pepperell yards. Ginghams, Amoskeag yards Hosiery, women's cotton hose, 26 to 28 oz pairs. Overcoatings, chinchilla, cotton warp yards. Sheetings, bleached, 10-4, Wamsutta S. T yards. Sheetings, brown, 4-4, Indian Head yards. Shirtings, bleached, 4-4, Lonsdale yards. Suitings, indigo blue, all wool, 14 oz., Middlesex yards. Tickings, Amoskeag, A. C. A yards. Women's dress goods, cashmere, cotton warp, Atlantic F.. yards. Coal, anthracite, stove bushels. Petroleum, refined, 150° test ....gallons. Nails, cut, 8-penny, fence and common pounds. Nails, wire, 8-penny, fence and common pounds. Carbonate of lead (white lead), American, in oil... ..pounds. Cement, Portland, American barrels. Quinine, American ounces. Glassware, tumblers, % pint, common „ 27.0 81.2 73.5 114.9 12.9 23.2 a b c d 63.4 88.7 33.7 38.7 58.1 64.8 70.6 81.2 51.0 77.0 7.6 10.9 11.4 17.5 53.5 64.0 48.6 52.1 2.9 3.1 32.7 38.9 26.2 23.9 24.6 31.0 32.1 30.7 123.0 247.0 114.0 252.0 64.4 76.6 1.7 3.2 13.8 30.1 222.0 427.0 a 1 pair and 93 cents over, c 3 pairs and 78 cents over. b 1 pair and $2.54 over, d 5 pairs and 31 cents over. When the comparative value of silver is shown the decrease is remarkable. The value in 1907 is less than in 1896 when meas- ured by 18 of the 25 articles. In 1896 the value of 10 ounces of silver was equal tcf 150.5 pounds of granulated sugar, in 1907 it was equal to but 141.9 pounds ; in 1896 equal to 144.5 yards of gingham, in 1907 to 100.3 yards ; in 1896 equal to 109.3 yards of Indian Head sheetings, in 1907 to 79.0 yards ; in 1896 equal to 50.3 bushels of stove coal (anthracite), in 1907 *o but 38.3 bushels. The table follows : 188 PRICES OF FARM PRODUCTS. i iilue of 10 ounces of silver {fine bar) in 1896 and 1907 when measured by the wholesale prices of the following staple articles. lOorapIled from BultetJn No. 75. United States Bureau of Labor.] Articles. 1!)07. Coffee, Rio, No. 7 pounds.. Sugar, granulated pounds— lea . Porniosa , line. pounds.. Shoes, men's oalf bal., Goodyear welt — pairs.. Shoes, women's solid grain. pairs.. Calico, Cocheco prints. yards.. Denims, Amoskeag yards.. D.illings, brown, Pepperell - yart'-s-. Ginghams, Amoskeag... yards.. flosiery, women's cotton hose, 26 to 28 oz pairs.. Overcoatings, chinchilla, cotton warp... yards.. Sheetings, bleached, 10-4, Wamsutta S. T yards.. Sheetings, brown, 4-4, Indian Head ^ yards.. Shirtings, bleached, 4-4, Lonsdale yards.. Suitings, indigo blue, all wool, 14 oz., Middlesex. yards.j lickings, Amoskeag, A. O. A.. yards.. Women's dress goods, cashmere, cotton warp, Atlantic F.. yards.. Coal, anthracite, stove bushels.. Petroleum, refine,!, ISO"" test gallons— Nails, cut, 8 penny, fence and common pounds.. Nails, wire, 8-penny, fence and common pounds.. Carbonate of lead (white lead), American, in oil pounds.. Cement, Portland, American....... barrels.. Quinine, American oances.. Glassware, tumblers, % Dint, common , 55. 150.) 26.4 a c 129.9 69.0 119.0 144.5 104.0 15.7 23.3 109.6 9). 6 G.O 66.9 53.7 50.2 65.6 2'>1.0 233.0 131.9 3.4 28.3 455.0 100.3 141.9 28.7 b d 10). (J 47.8 80.0 100.3 9).0 13.1 21.6 79.0 61.4 3.9 48.1 29.5 38.3 49.0 303.0 312.0 94.7 4.0 37.2 523.0 a 2 pairs and $2.02 over, c 8 pairs and 2 cents over. b 2 pairs and 99 cents over, d 6 pairs and 56 cents over. Increase in Value of Farm Lantk.^. The Government census fig-nres covering the periods of 1900 and 1905 show that medium farm lands in the United States are valued at $22,745,420,567, compared with $16,614,647,491 in 1900, a gain of 32 per cent in five years. The average value per acre in 1905 was $29.28, compared with $20.50 in 1900. American Antliracite Sold Clieaper in Canada tlian in tlte United Sta^s — yet there is no Tariff on Antliracite. [From the Trenton Gazette.] They vrail over the fact that the steel people, the watchmakers, sewing machine manufacturers, implement builders and so on sell their products cheaper in Europe than they da in their home markets, paying the ocean freight. This fact arises more from competition, from a desire to enlarge their field of trade, and more to the tricks of trade than to the tariff. For proof of this, proof that can't be set aside, here is the fact that American anthracite coal was sold cheaper in Montreal, Canada, than it was to the American consumer. There is no duty either way on coal. Coal is an unprotected article. 'Wealtb of United Kingdom and United States. The New York Herald in 1907 published a despatch from Lon- don announcing that two well known statisticians. Dr. W. J. Har- ris and Rev. K. A. Like, had by a careful calculation estimated the wealth of the United Kingdom at $46,000,000,000, or $1,035 per capita. The United States Census Office estimated the wealth of the United States in 1905 at $107,000,000,000, or $1,310 per capita. As a party shows itself homogreneons, Uhle to irrasp the truth T»lth respect to new issaes, able to discard unimportant differences of opinion, sensitive -with respect to the suc- cessful maintenance of grovernment, and highly charged with the responsibility of its obligation to the people at large, it estublishes its claim to the confidence of the public and to its continuance in political po-wer.— Hon. Wm. H. Taft, at li^ansas City, Mo. AGRICULTURAL PROSPERITY. 189 VALUE OF THE FACTORY TO THE FARMER. Practical and Statisitical Evidence that Mannfacturing Es- tablislinients Incitease tlie Earninj^rs of Farmers in tlie Section "Wliere Located and Advance tlie Permanent Value of Farm Properties.— A Comparison of Conditions in the Mannfacturingr and Nonmaunfacturini^ Sections, Based Upon Official Fignres. ^ The table here presented illustrates by figures taken from official reports the value to the farmer of the location of manu- facturing- industries in his immediate vicinity. That the exist- ence of a g-reat manufacturing' industry in the country — -an indus- try which employs 5 million people and pays wages and salaries amounting- to 2J/2 billions of dollars per annum — is of great value to the farming interests goes without saying, but that the location of the factory in the immediate vicinity of the farm adds to the value of that farm and to the earnings of those who own or occupy it is also true. Mr. *]\IcKinley remarked in the House of Eepresentatives in the discussions of the Fiftieth Congress that " the establishment of a furnace or factory or mill in any neighborhood has the effect at once to enhance the value of all propert}^ and all values for miles surrounding it;" and Thomas H. Reed, of Maine, in- quired, "Which is it better for the farmer to do — send his sur- plus a thousand miles to the seacoast, 3,000 miles across the water and sell it to the mechanic who gets less wages, or sell it right here at home to the mechanic who gets more wages?" "Every farmer knows," said Kepresentative Brewer, of Michigan, in the Fiftieth -Congress, "that he cannot send to foreigners his potatoes, vegetables, and many other things which he s:rows upon the farm and that he must rely upon the home market for the same, and this is why the lands in rough and rocky New England and sterile New Jersey are more valuable than are fertile lands in Michigan and Minnesota." "The extraordinary effect," said President Grant, in a mes- sage to Congress, "produced in our country by a resort to di- versified occupations has built a market for the products of fertile lands destined for the seaboard and the markets of the world. The American system of locating various and extensive manufactories next to the plow and the pasture and adding connecting railroads and steamboats has produced m our dis- tant interior country a result noticeable by the intelligent portions of all commercial nations." The table which follo\A s, made up from official figures, is in- tended to illustrate, in some degree, the effect upon the farm and its occupant of the proximity of manufacturing industries. In preparing this table that part of the United States lying north of the Potomac and Ohio rivers and east of the Missis- sippi has been taken as the chief manufacturing section of the country, and the value of the farm lands and farm products in that section is contrasted with that in the other part of the United States, which has comparatively little manufactur- ing and may be termed the agricultural but non-manufacturing section. The portion of the United States designated as the manufacturing section in this table and discussion, then, in- cludes all of the New England and Middle States and Mary- land, District of Columbia, Ohio, Indiana, Illinois, Wisconsin, and ^Michigan. This manufacturing section contains, speak- ing in round terms, one-half (50.9 per cent) of the population of the TTnited States, while the agricultui-al, but non-manu- facturing section, lying south of the Potomac and Ohio rivers and west of the Mississippi contains the other half (49.1 per cent.) of the population. In the section north of the Potomac and Ohio rivers and east of the Mississippi is pro- duced 77 per cent of the manufactures of the country, and in the other 'section 23 per cent, as shown by the reports of the census of 1900. The section designated as the manufacturing section has no advantage in soil or climate over large portions of the other section. More thnn one-half of the wheat, two-thirds of the corn, all of the cotton, and by far the largest share of the meat and 190 AGRICULTURAL PROSPERITY. wool supply of the United States are produced in the agricul- tural and non-manufacturii^g" section, while more tha* three- fourths of the manufactures are produced in the manufactur- ings section, the .populatioM in the two sections being practic- ally equal. This division of the territory of the United States into these two great sections — each containing- one-half of the population, the one performing approximately three-quarters of the manu- facturing of the United States and the other approximately three-fourths of the agriciiltural industry of the country — gives an opportunity for a broad, intelligent and absolutely fair study of the effect of the proximity of the factory upon the farmer as relates to the value of his property and its annual production and of his own earning power as an individual. It will be seen by a study of the table that the average value per acre of all farm lands in the manufacturing section in 3900 was, according to the census, $24 per acre, and in the non- manufacturing section, $12 per acre; and the average, value of lands and buildings in the manufacturing section, $32 per acre, and in the non-manufacturing section, less than $15 per acre; while the value per acre of improved land only, incMding buildings, was, in the manufacturing section, $58 per acre, and in the other section but $31. The average value of build- ings, which represent in some degree the savings of the farmer, was, in the manufacturing section, $15 per improved acre, and in the non-manufacturing section $5.50 per improved acre, while of implements used upon the farms the value per im- proved acre in the manufacturing section was nearly twice as great as in the non-manufacturing section. Coming to the value of farm products, the average value per improved acre in the manufacturing section was $141, and in the non-manufac- turing section $101. The average value per head of milch cows in the manufacturing section was $33, and in the other section $27. The average value per head of horses in the manu- facturing section was $60, and in the non-manufacturing sec- tion $43, and the average value of farm products per person engaged was, in the manufacturing section, $619, and in the non -manufacturing section $394. Thus in all of these evidences oi prosperity, earnings, value of propea-ty, etc., the condition" of the farmer in the manu- facturing section was, according to the figures of the last cen.sus, much higher than that in the non-manufacturing sec- tion, despite the fact that the non-manufacturing section has soil, climate, landp, and producing power quite as favorable and in many cases more favorable than those of the manu- facturing section. In the great and final measure of relative prosperity of the farmer in the two sections, as indicated by the item "Average value of farm products per person engaged," the earnings of the farmer in the manufacturing section are 57 per cent, greater than those in the non-maniffacturing sec- tion whose soil, climate, etc., and prducing capacity certainly equal, if they do not surpass as a whole, those of the manu- facturing section as a whole. Another measure of the relative prosperity of the people of the two sections is found in the deposits in savings banks, in which the per capita in the manufacturing section is $57, and in the non-manufacturing section less than $7, while of deposits in all banks the per capita in the manufacturing section is $153 and in the other section $37. The assessed value of real and personal property, that measure of accumulations and per- manent prosperity is, in the manufacturing section, $606 per capita and in the non-manufacturing section $278 per capita, while in other evidences of prosperity, such as salaries paid to teachers in public schools, newspapers circulated, etc., the per capita is also greatly in favor of the manufacturing sec- tion. This table is compiled in every particular from official sta- tistics, chiefly those of the census of 1900, though in a few in- stances those of the Department of Agriculture, where the lat- ter could be utilized to obtain data for a later year than the census. AGRICULTURAL PROSPERITY— WOOL. 191 Attention is called to the map of the United States on the cover of this volume, which indicates the two sections here disir cussed and some of the countries presented. Relative conditions of prosperity in the manufacturing and non- manufacturing sections of the United States, respectively.* [Fi'om Census of 1900.] Per cent of total population of United States.. Per cent of total area of United States Gross value of manufactures in 1900 Per cent of total manufactures produced in section Salaries and wages paid in manufactures in 1900. Number of persons employed in manufactures in 1900 Average value per acre of all farm lands Average value per acre of all lands and build- ings Average value per acre of land (improved only) and buildings Average value of buildings iier improved acre.. Average value of implements owned per im- proved acre Average value per head of milch cows Average value per head of horses Average value of all farm products, per im- proved acre Average value of farm products, per person engaged _. Deposits ift savings banks, total Deposits in savings banks, per capita _J-_. Deposits in all banks, total Deposits in all banks, per capita Bank clearings, total Bank clearings, average per capita Banking resources, total Banking resources, average per capita Real and personal viropcrty, assessed valuation- Real and personal property, per capita Salaries paid teachers in public schools Newspapers published, number Newspapers, aggregate circulation '''SSn"f'"^ "'"-mates. 50.9 • 49.1 14.1 85.9 $10,021,718,461 $2,988, 318, OjS 77 23 $2,194,936,683 $536,471,656 4,437,714 1,273,917 $24.07 $12.78 $32.50 $14. as $58.60 $31.65 $15.25 $5.54 $2.54 $1.47 $33.62 $27.46 $60.87 $43.32 $141.00 $101.40 $619.25 $394.53 $2,200,439,838 $249,108,047 $56.90 $6.67 $5,949,981,845 $1,384,066,395 $153.80 $37.10 $76,356,970,422 $8,225,479,659 $1,973.50 $220.40 $8,613,200,003 $2,167,500,000 $222.65 $58.10 $23,445,809,898 $10,388,667,238 $503.25 $278.50 $85,234,951 $52,452,785 9.151 9,075 6,168,125,616 2,000,023.133 •Manufacturing section includes area north of the Potomac and Ohio and east of the Mississippi, viz., the New England and Middle States, and -Mary- land, District of Columbia, Ohio, Inciiana, Illinois, Michigan, and Wisconsin. SHEEP AND WOOIi INDUSTRY. Some Figures on tlie Losses niider Free Trade in Wool. The losses to the sheep and wool producers of the country throug-h the Wilson-Gorman tariff law, which placed wool on the free list, are well remembered in g-eneral terms, but the actual fig"\ires regarding- the fall in the value of sheep and the reduc- tioji in the number of sheep and the wool produced are such as to justify presentation. The figiires of the Department of Agri- culture show that the number of sheep in the United States on January 1, 1893, two months after the election of President Cleveland, was 47,273,553, and their value $125,909,254. The same authority, the Department of Agriculture, operating under a Democratic Administration, showed on Jan. 1, 1896, the closing year of President Cleveland's term, 36,818,643 sheep in the United States and their value $67,020,942. Here is a decrease of more than 10 millions or nearly 25 per cent, in the number of sheep and a decrease of 58 million dollars, or nearly 50 per cent, in their value during President Cleveland's term, under which wool was placed on the free list. By January 1, 1903, the num- ber of sheep had reached 63,964,876, and the value $168,315,750, an increase of practically 75 per cent, in the number, and 150 per cent, in the value of the sheep in the country. This, how- ever, is not all of the loss to the farmer — a loss of nearly 60 million dollars in the value of sheep alone. There was also a great loss in wool. The quantity of wool produced in 1893 J»5i AOltlVl'LTVUAL PROSPERITY— WOOL. was 30:{ million pounds and by 1895 hud fallen to 2(YJ million pounds and did not ag-ain reach the 300 million line until lUUl, \Nhen it was :>02 millions and in 11)02, iMO niillions. Here was a roduftion of practically one-third in the (juuntity of wool produced in 1.S95 as compared with 1893. But even this does not measure the loss, since the value per pound of the reduced production was far below that of, prior years. Wool price quotations published by the Bureau of Statistics show that grades of wool which sold at 35 cents per pound in 1891 had fallen to 19 cents per pound in 1896 and by 1901 were again above the price of 30 cents per pound. A careful estimate of the value of the wool product of the United States made by an eminent authority on the suS»ject puts the total value of the wool product of the country in 1892 at 79 million dollars-, and in 1896 at 32i^ millions, a loss of 46i/^ millions. Adding this loss in wool to the 58 million dollars loss in value of sheep, above quoted, gives a grand total of the loss to the farmer in the value of sheep and wool of over 100 million dollars for a single year for which this calculation is made, or ap{)roxi- mately 400 million dollars for the four years of the Cleveland Administration. In 1907 the value of wool was estimated by experts at $78,000,000, or two and one-half times that of 1896. Effect of Protection and Free Trade In HeK'nrd to Sheep. The official reports of the United States Government upon the subject of sheep raising and sheep values teach a wonder- ful lesson. From 1878 to 1882, inclusive, the Morrill tariff (protection) was in force, and the number of sheep throughout the country' increased by over 11,000,000 during this period. The tariff of 1883 was in force from 1883 to 1889, inclusive, The duties imposed by this tariff ujjon raw wool amounted to no more than a revenue tariff on yarns and some other goods produced from wool; consequently the result of this tariff' as a whole was not protective. Under its operation the number of sheep throughout the United States decreased by abt)ut 6,000,000. The j\lcKinley tariff, passed in 1890, was a scientific tariff as applied to wool growing, with the result that the number of sheep throughout the country .increased by nearly 4,000,000 before the free-trade election of 1892. The Wilson tariff, with free trade in wool, practically went into effect when Mr. Cleveland was elected, and immediately the flocks throughout the country began to decrease, and from 1893 to 1896 decreased by about 9,000,000. The Dingley tariff reimposed the scientific schedules of the McKinley tarift', and with the promise of protection through the election of William McKinley and a Republican Congress the .sheep-raising industry immediately began to prosper. From 1896 to and including 1907 the number of sheep increased by 17 million and their value increased 144 million dollars. The effect of protection and free trade in regard to the num- ber of sheep owned throughout the country is not more 5m pressive than the effect as to value. Under the Morrill tariff rbe lowest price per head was $2.09 and the highest $2.55. Under the tariff of 1883 the lowest price per head was $1.91 and the highest price was $2.27. Under the McKinley tariff the lowest price was $2.49 and the h,ighest price $2.66. Under free trade the lowest price was $1.58 and the highest price $1.92, Under the Dingley tariff the lowest price was $2.59 per head, and now the value has advanced to $3.95 per head, the highest average price in the history of the nation. IVell-paid Tv-agre-ekrners are g^enerons consnniers.— For- mer Senator Casey, In the American Economist. "When we reierard the history of the forty years through tvhich the colored man of this country has heen obliged to struKKle, the progress ^vhich he has made, material and educational, i« vronderful.— Hon. Wm H Taft, at Kansas Cit>. Mo. AGRICULTURAL PROSPERITY— WOOL. 108 Report of the United States Government on sheep raising from 1818 to 1898, inclusive, arid report for 1900, based upon the sheep-raising census of the American Protective Tariff League. Year. Number of sheep. Average price per head. Total value. The Morrill tariff: 1878... .._ 1879 _. .„ •38,123,800 40,765,900 43,576,899 45,016,224 49,237,291 50,626,626 50,360,243 48,322,331 44,759,314 43,544,755 42,599,079 44,336,072 43,431,136 44,938,365 47,273,553 45,048,017 42,294,064 38,298,783 36,818,643 37,656,960 39,114,453 41,883,065 59,756,718 62,039,091 63,96t,876 51,630,144 45,170,423 .50,631,619 53,240,282 53,631,000 $2.09 2.21 2.39 2.37 2.52 1.37 2.14 1.91 2.01 2.05 2.13 2.27 2.49 2.58 2.66 1.98 1.58 1.70 1.82 2.46 2.75 2.93 2.98 2.fe5 2.64 2.59 2.82 3.54 3.83 3.88 $79,023,984 90,230,537 1880... 1881 _ 1882 The tariff of 1883: 1883... _ _^ 1884 104,070,753 106,594,954 124,365,835 119,902,706 107,960,659 1886 1-III. I I 92,443,867 89,872,8.39 1887 . 89,279,926 1888 ._ _._ 90,640,369 1889 100,659,761 The McKinley tariff: 18J0 108,397,447 1891 . - 116,121,290 18f)2 125,909,264 The Wilson tariff, free trade in wool. 1893. 89,186,110 18J4.. 66,6S5,767 1895 - 65,167,735 1896 67,020,942 The Dingley tariff: 1897 92,721,133 1898 107,6:J7,530 1899 122,665,913 1900 1901 178,072,476 164,446,0^1 1902 168,315,750 133,530,019 127,^31,850 1903..... 1904 1905 179,053,14' 1906 204,210,129 1907 - 211,738,00 1 Wool Production, Imports, Consumption, Manufacture, Price of Wool, and Value of Sheep on Farms, 1875 to 190T. This table, showing- the home prodnction and imports of wool, the percentage which foreign wool forms of the total consump- tion, the price of wool in the United States, and the number and value of sheep on farms, covers the period from 1875 to 1907, and enables a comparison of conditions under the protective system with those under free trade, since wool was adqiitted free of duty under the Wilson Act, which went into effect August 27, 1894, and continued in operation until July 24, 1897. It will be seen that the quantity of wool imported increased enormously during that time, that the price of domestic wool fell to abput one-half of that of former years, that the number of sheep oa farms was materially reduced and their price per head also great- ly reduced, so that the value of sheep on farms fell from 125 million dollars shortly before the enactment of that law to G5 inillions in the latter part of its operation. Tlie course of tlie Republican party since its organiasation in 1S56. and its real assumption of control In 1S;>1. down to the present day, is remarkable fOr the foresight and ability of its leaders, for the discipline and srtlidasrity of its members, for its elllciency and dee?» sense of respon- sibility for the preservation and successful maintenance of the Koverument, and for the ftreatest resourcefulness in meetinpT tlie various trying and diftlcult issues wl»ich a historv of now a full half-century have presented for so- lution.— Hon. Wm. H. Taft, at Kansas City, Mo. Government must be honest, business dealing must be square with the principles of rlgrht and justice, the things that are vuvc and clean and of i^ood repute must be exalted; and underlying- the ^vhole fabric of our institutions wc must safe/rnard our sch«)ols and keep pure and un-.. 18)0--. IS'Jl--- 1802.- is.)a... IbO'S.- 1^ 1"^^- I8s)a§.. 18')^-. 18):i-.. 10)0--: 1 IV 1002.. IX);.-. IX) .. 1901- ._ 1907... Produc- tion. Imports. 'if Pa! Va'ue of Imports of wool, and inauuiac- turcM of. Pounds. .181,000,000 . li)2,000,000 .'200, 000, 000! . 20d,;J>0,000 .:211,000,000 . 232,500,000 .i2»0i000,00j .'272,000,0)0 .12:^0,000,000 .liOO.000,090 .1308,000,000 .1. 102, 000, 000 .285,000,000 .26), 000,000 Jiff), 000,900 .|27f5,000,000 .|i-.5,000,0;W .W 1,000,000 -i $0.1,153,000 i9«,057,38! !!0),748»000 1:72,474,708 ■'^a, 153, 251 I :i6, 720,681 I -2,191,330 I '88,636,621 12,502,328 : :l8.Ta.0-32 : 7,(57,000 ;)1,78],032 ; '•»5,!8S.t.38 1298,915,130 208,294,750 Fo mds. 54,^01,700 22. 44,042,830 18. 42,171,192il6. 48,449,079 16. 39,005,15) 14, 128,131,747 31. 55,984,236 17. 67,861,744 19. 70,575,478 18. 78,350,651 20. 70,59), 170 18. 12^), 08 1,95b 28. 114,038,030 27. 113,558,753 28. 126,487,720 31. 105,431,285 27. 129.303,618 30. 118,670,652 172,433,8;J8 55,15: 206,033,906 230,911,4' 350,852,026 132,705,202 76,736,209 155,928,4.55 103,583,505 166,576, 963 177,137,796137 173-,7i2.83l|37, 2 19, 1.35, 746145, 201,688,688 39 203,817,515 10 Wool, raw. Dollars. 11,071,250 8,247,617 7,158,941 8,363,015 5,031,545 23,727,650 9,703,968 11,096,050 10,949,331 12,:«4,709 8,879,923' 16,746,081, 16,424,479 15,887,217: 17,974,515 15,264,083 18,231.372 19,688,108 21,084,180 6,107,438 25,5)6,421 32,151,212 53,213,191' 16,783,692 8,322,8971 20,2(0,936 12,. 529, 881' 17,711,788' 22,152,i)61 21,813,5)1 16,225.558 39,038,372 41,531,028 Manu- fuctures Oi WOOi Dollars. 44,600,704, 33, 20), 800' 25,701,922 25,2.30,1511 21,355,821 .33,911,0.)3, 31,1,53,426 37, a 1,520 41,274,952 41,1.71,583 35,776,55) 41,421,319: 14,902,718; 47, 71!),. 393! 52,-)81,912' .56,5,S2,132 41.030,080 35,505.879 .38,018,515 10,439,372 .38,530,890 53,491,400 49,162,9)2 14,823,771: 13,832,621 16,161,416 14,585,306 17.381,463 19,516,385 17,733,788 17,803,663 23,080,683 22,321,460 "o Cents. 52 38 50 33 37 46 42 42 39 35 32 33 31 29 35 33 31 28 21 20 18 17 21 1^ 28 20 25 26 31 V^ 321/2 33 Sheep on farms In the United iStates. Num- ber. ! 33, 783 135,935 135,804 35,740 38,123 40,765 43,560 45,016 49,237 50,626 50,360 48,322 44,750 44,514 42,599 44,336 43,421 44,938 47,273 45,018 42,201 .38,298 36,818, 37,6)6, 39,111, 41,883, 59.758, 62,03), 63,961, 51.630 15,170, 50,631, 53,210, Value. Dollars. , 94,320,652 300 93,600,318 2001 80,892,683 80,603,062 79,023,984 90,230,-537 101,070,759 103,505,951 124,366,335 119,902,706 107,960,650 92,443,867 80,872,839 89,279,926 90,610,339 100,650,761 108,397,140 .335; 116, 121,200 553 125,900,260 017 1 89,186,110 031' 66,685,767 7a3( 65,167,735 613 07,020,912 960 ' 92,721,133 453:107,697,530 065;122,665,913 718178, 072, 476 001 161,446,001 876 168,315,7.50 114 133,530,0)9 123 127.331,8.0 619.179,056,114 282 201,210,129 8 Democratic and low taiilT years. BEKT SI GAR. The fact that about a hundred million dollars' worth of sugar is broi ght from foreign countries each year to meet the demands of the people of the United States, coupled with the belief that the pruii ttioii of this great sugar supjoly by our larmers is possible, renders proper a careful consideration of the effect of the recent legislation by which sugar from Porto Jvico and the Hawaiian Islands is admitted free of duty, that from the Philippines at 2.> per cent, below, and that from Cuba at 20 per cent, below the regi.lar tariff rates. Will the absolute removal of all duty on SI gar from Porto l?ico and the Hawaiian Islands and the rediic- tion of 25 per cent, on sugar from the Philippines and 20 i)er cent, on that from Cuba destroy the beet-sugar industry of the I'nited States or work to its disadvantage? Vvhue it is a lact tnat the annexation of Hawaii and its organization as a Territory and 'Mi.stoms di.strict of the United States removed permanently ull tariff on merchandise from tho.se islands or passing into them from the United States, that fact made no change in the rates of duty on sugar from the islands, its only effect beino- to render absolutely permanent the conditions which had existed ever since the treaty of 1876, by which sugar from the Hawaiian Islands was admitted free on agreements that products of the United States should be admitted into the Hawaiian Islands free of duty, and that condition continued down to the annexation of Hawaii, when it was made permanent, as above indicated. In the case of Porto Pico all of the dr.ty except 15 per cent, was removed by the acL est'iblishing the government of Porto Rico, and the remainder of that duty disappeared as soon as the Porto Rican AGRICULTURAL PROSPERITY— BEET SUGAR. 195 g-overnment announced its abHity to provide its own revenues. The reduction of 25 per cent, in the rates of duty on merchan- dise from the Philippine Islands occurred on Marrch 8, 1902. Kffect on the Home Producer. All of these removals of duty on sugar from our own posses- sions have been in force a sufficient len<>th of time to give oppor- tunity to test their effect upon domestic sugar production. The quantity of sugar imported from Porto Rico increased from 86,007,317 pounds in the fiscal year 1897 to 408,149,992 jjounds in the fiscal j'ear 1907. The sugar imports fx'om the Hawaiian Islands have increased from 431,196,980 pounds in 1897 to 822,- 014,811 poimds in the fiscal year 1907 ; and those from the Philippine Islands decreased from 72,463,577 poimds in the fiscal year 1897 to 25,164,756 pounds in the fiscal year 1907 — the re- duction in imports of sugar being, of course, due to the de- struction of plantations and nuichinery during the war. Thus the quantity of sugar imported from Porto Rico, HaAvaii, and the Philippine Islands in 1907 was practically double that of 1897. The entire quantity of sugar brought into the United States in the fiscal year 1907 amounted to 5,224,259,732 pounds. Of this total importation, 1,230,164,803 pounds came from Porto Rico and the Hawaiian Islands, and was absohitely free of duty, and this formed 23.5 per cent., or practically one-fourth of the total; while that from the Philippine Islands, which amounted to 25,164,756 pounds, came in with a reduction of 25 per cent, of the regular duty and formed about i/, of 1 per cent, of the total. Thus practically one-fourth of the sugar coming into the United States in 1907 was admitted absolut^^ly free of duty from the Hawaiian Islands and Porto Rico. In 1897 the amount which came in free of duty from the Hawaiian Islands was 431,196,980 pounds, and this formed 8.9 per cent, of the total sugar impor- tation of that year. Increase of Beet SwRur Production since the Annexation of Hawaii nnfl Porto Rico. Here, then, is a fair basis upon which to determine the effect of the importation of sugar from our own possessions free of duty. In 1897 practically 9 per cent, of the sugar im-^orted came in free of duty. In 1907 practically 25 per cent, came in free of duty. If such^ free importation were likely to a.iect disadvantageously beet sugar production at home, an increase from 9 per cent, to 25 per cent in the importations^, of free sugar would doubtless have made itself apparent by a reduction in the sugar prod*iction of the United States, But let us see what the beet sugar production of the country was in the two years in question — 1897, when 9 per cent, of th-^ sugar was im- ported free, and 1907, when 25 per cent, was imported free. The reports of the Department of Agriculture and Bureau of Sta- tistics show that the beet sugar produced in the United States amounted in 1897 to 88,892,160 pounds. By 1899 it had in- creased to 141,230,160 pounds; by 1901 to 279.682,160 pounds; and i.*i 1906 was 967,224.000 pounds. Here, then, is an increase of 988 per cent, in the beet sugar prodiiction of the United States during the very period in which free importation of sugar from Porto Rico was established and that from Hawaii made absolutely permanent by annexation and its establishment as a customs district of the United States, in which period the quantity of sugar imported free of duty increased 185 per cent, if an increase of 185 per cent, in the quantity of sugar imported free of duty, coupled with absolute assurance that the sugar fields of Porto Rico arid Hawaii are to have i^ei'- manently free access to the markets of the United States, was accompanied by an increase of 988 per cent, in the production of beet sugar at home, there seems little. ground for any anxiety as to the effect of free sugar importation from our own terri- tory in depressing beet sugar production at home. Tables published on another page show the importation of sugar into the United States, the home production of various kinds of sugar, and the total home consumption for a term of «6 ■1 GRYcUlJTtfWAL PROSPERITY— BEET SUGAR. years; also the quantity brought into the United States from Pbrto Rico and Hawaii' resiJectively, from 1895 to 1903; also the total product of beet and cane sugar, respectively, in the world during a long term of years. Production of cane and hect sugar in the principal producing countries of the World for the sugar year 1907-8.* Countries. Cane sugar production. Gross tons. Countries. Beet sugar produc- tion. Gross tons Tfl-n '-n''..' Ui'' i-l' :' .1,153.477 1,000,000 420,000 181,000 1*5,0 JO 214,-00 335,000 3.4^8.900 6,951,877 2,132,000 1,4(50,000 Cuba J .. i.__^_ .n Austria , Hawaiian Islands France 725,000 Brazil Russia _ _ 4,410,000 235,000 Australia Holland 175,003 435,000 Louisiana ! All other All other ■M^'- 6.893,000 * Figures for cane sugar production taken from Willett and Gray's Sugar Trade Journal, March 19, 1908; figures for beet sugar production taken from F. O. Licht's estimate in the same journal, February 6, 190«. •World's supply of heet and cane sugar, from WfO tCTWOl. tOpmplled Iroin London Statist, Census Bulletin, and Willett & Gray.] Years. 1840iJi.... 1850 _ 1860 1870 -._— 1873-74 ... 187t-75 187*'76 -ii. 1876-77 1877-78 _-. 1878-79 •1879;^.^.. •ii£86:qir_:!:;:i: ■1886-87 LJil'.._'Ji:I.— a8&d-9io.ii!:]iik 18»l-92'^_.4-,--^- 'ig9»-94 .::.... .. 1894-9S' .'_.._ _._ »s- ■ 1898-fie. . j -LUji. J.-Ui£l 1897-1900 __.^ ifiOO-1901 1901-Z .'• .. .. '1902r»3 _^-....^„- lOo*; ._.,.il;.„.....:. isoB .:.'.. .......J...'. Beet sugar (tons). \[> 1 f .. ,(f • 50,000 200,000 389,000 831,000 859,479 1,124,313 l,145,8t9 1,165,336 1,350,921 1,083,739 1,398,373 1,549,276 1,430,952 1,746,501 1,831,581 '2,113,070 2,323,548 2,503,608 2,185,490 2,707,543 ,2,743,679 .2,442,981 3,578,409 •-3,655,709 3,451,936 3,383,423 3,818,241 4,738,883 4,216,924 4,876,422 •■4,795,813 4,935,837 5,503,815 5,972,274 6,816,614 5,659,886 .6,089,468 4,918,480 7,216,060 1:7,143,818 (a) Cane sugar (,tous>. 1,100,000 1,200,000 1,510,000 1,581,000 1,791,184 1,810,986 1,711,763 1,7.56,681 1,692,828 1,682,531 1,715,900 1,965,990 1,903,316 1,902,346 ' 2,016,084 2,104,072 2,517,531 2,592,617 2,702,850 2,805,735 2,480,700 2,612,000 2,175,800 2,868,900 3,231,561 3,015,186 3,531,621 3,510,670 2,809,477 2,841,857 2,861,255 2,995,438 3,056,291 3,646,059 4,078,944 4,144,4.53 4,214,206 4,594,782 5,0l?;87O 5viL48.»TO 1, Total sugar (tons). 1,150,000 i,400,;j()0 1,839,000 2,416,000 2,650,663 2,965,329 2,857,612 2,922,017 ' 3,013,749 2,766,270 3,114,273 3,515,266 3,334,268 3,648,847 3,817,668 4,217,142 4,871,079 5,099,255 4,888,3(0 5,513,278 5,224,379 5,081,981 6,0->4,209 6, .52 1,600 6,683,497 6,431,699 7,379,862 8,247,5.53 7,056,401 7,718,279 7,660,068 7,9.31,275 8,-560,109 9,618,333 10,895,588 9,801,339 10,333,674 9,513,262 12,232,930 12,292,768 Per cent supplied by beet. 4.4 14.3 20.4- 34.4 32.4 37.9 40.1 39.9 44.4 39.2 44.9 44.1 42.9 47.9 47.6 «:J 49.2 44.7" 49.1 52.5 48.0 .59.1 .58.0 51.7 52.7 52.1 .57.4 60.2 63.2 62.6 64^3 62.1 62.6 57.7 58.9 51.7 58.9 58.1 -:j'ji'" ^xclusiye. of production of reofefnt years, about 12,000,000 tons Kf.ti ..■ • 1 ;• , 1 ■ ; ■ ■ ,■ ■■ i , . cane sugar In British India, averaging, a year, and which is consumed locally. for :JflW«>«>" ImpoJ^ea, Prortwceil and Con mimed in the United i" . ; states, and the Growth of the Sn^ar Production. Thi.«i table show.s the quantity of sugar imported from for- eign countrTes, the qnantity tai'Onght from our own islands, the ■^tynahtity of cfine and of beet sugar, respectively, produced in the ilttited States; the quantity exported and total quantity con- AGRICDLTURAL PROSPERITY—SUGAR. 197 sumed, the consumption pet* capita, and the share of the con- sumption supplied by our own factories, including- in this term only those of continental United States and not of Hawaii or the Philippine Islands. The separate statement of the quantity broug-ht from Porto llico and Hawaii begins with the year 1901, prior to which time the sugar brought from those islands was included in the figures of sugar imported from foreig-n countries. An interesting feature of this table is the rapid growth in beet sugar production shown by the column which states the number of pounds of beet sugar produced in the United States. The production of beet sugar in the United Sates has grown from 163 million pounds in 1900 to 967 millions im 1907, despite the fear entertained by some that the free admission of sugar from Hawaii and I'orto llico coupled with the reduction in i-ates of duty in that imported from Cuba and the Philippine Islands might seriously interfere with, if not actually destroy, that in- dusti-y in the United States. It will be noted that the production of beet sugar, which in 1901 was but one-fourth as much as that of cane, was in 1907 nearly twice as great as that of cane. The number of beet sugar factories has grown from 15 in 1900 to 63 in 1907. The share of our sugar consumption supplied by production within continental United States which in 1900 was but 11.1 per cent, was in 1907 22.3 per cent, while about 30 per cent of the ccmsumption was supplied by sug-ar from Porto llico and Hawaii. The production of sugar in Porto llico has grown with great rapidity since the enactment of the law admitting the products of that island free of duty to the markets of the. United States, The shipments of sugar from Porto llico to the United States in the fiscal year 1901, the first year following that Act, amounted to but 137 mil- lion pounds, and in 1907 408 million pounds, and in the fiscal year 1908 will aggregate approximately 430 million pounds, or practically three times as much in 1907 as in 1901. The quan- tity shipped from Hawaii in 1900 was 691 million pounds, and in 1907, 822 millions, while for the fiscal year 1908 the total will approximate one billion pounds. ' Naturally the percentage of gain has been niiich larger in the case of Porto Rico than in that of Hawaii, since sugar from Hawaii was admitted free under the reciprocity agreement for many years pr-ior to an- nexation, while that from Porto Rico paid, prior to annexation, the same rate of duty as that from other foreign countries. The actual growth in quantity imported from Porto Rico and Hawaii has be^^i in each case about 300 million pounds, com- paring the figures of 1901 wnth the prospective figures of 1908. Speaking in very general terms, it may be said that the quantity of sugar annually consumed in the United States is between 6 and 7 billion pounds, of which about one-fifth is produced in continental United States, another fifth in Port*) Rico, Hawaii, and the Philippines and the remaining three-fifths brought from foreign countries ; and of the 3.873 million pounds brought from foreign countries in the calendar year 1907, 3,032 million pounds were from Cuba, 598 millions from the Dutch East Indies, 23 millions from Gei'many, and a little less than 3 million pounds from Austria-Hungary, the sugar from European countries being presumably beet. The quantity brought from the Philippine Islands in 1907 was 25 million pounds or a little more than one day's supply, the average daily consumption in the United States being now about 20 million pounds per day. '■ With all this rapid growth in home production and importa- tion duty-free from Porto Rico and Hawaii, the quantity required from foreign countries has not been diminished, but on the con- trary steadily increases. The imports of sugar from foreign countries in the fiscal ,year 1907 were larger than in any year of our foreign connmerce except 1897, when excessively large quan- tities were rushed in in anticipation of an approaching changf^ 4^ tariff. ■ 1, .'n With reference to Philippine sugar, it may be said that' the importations from those islands have averaged 40 million pounds per annum during the last ten years, while the consumption of the United States now averages about 20 million pounds a day, so that the Philippines have since annexation furnished on an 198 AGRICULTURAL PROSPERITY. averag-e about two days' supply per annum of our sugar require- ments and during- the more recent part of that time Philippine sii^ar has been admitted at a reduction of 25 per cent of the refjfiilar rates of duty ; or, in other words, has paid 75 per cent of the rates of duty paid on sugar from foreign countries. Imports of tOa. The policy of expansion Is Avhat d'stinuulwhes the adinln- istration of McKInley and adds another to the list of patri- otic victories of the Rcijublican party. By tliis policy the I'nlted States has become a worltl povrer. — Hon. Wni. H. Taft. at Kansas City, IVio. It in a.s much our imperative duty to i»rotect capital and labor in the fr^ie and proper exercise of their functions as it is to restrain and fcrl»!d the encroaclinicnts of ^vrong-. — Hon. C. W. Fairbanks, at St. Paul. Minn.. Auf^ust 31, 1I)03. The mints ^111 not fnrnisli the farmer vrith more con- sumers. The only market that he can rely upon every day of the year is the American market. — Maj. McKlnley to In- diana deleK'ation. at Canton, September 29, 189Ct. The dollar paid to the farmer, tlie wage-earner, and the pensioner must continue forever cciual in purchasing- and debt-payin»- poiver to the dollar paid to any Government creditor. — MaJ. McKlnley to IVotiflcation Committee, l.SJ)«. No amount of intelligence and no amount of energry Avill save a nation Avhich Is no* honest, and no srovernment can ever l»e a nermanent success if administered in accor.dance Tvith base ideals. — Theo0 »n ic ■* lo m i«4(5 «S'^ij«-^'T»tTtf^-««.t-lOin^Ot^J>i-ITt0rHW05l:^r--0Jr-< M h- t^ O t- o' -n' 05 00 'm' OJ CD -< (>j (M* I-^ © C5 (N* (M* ■^' M (N 00 ^-' r- 00 flO ' O O O O"©© ii^O O^O^Q QOOOOOpOOOOOOQOOp (MQ0 7>1.0®OO'M-'"]" |C 00 X •^'' CO -riT q" oo" m -* (M* to ~r in I- ct" oT «p -^r' o ^ ■- -i-^^r^ M -M^co 5S t^ CO » -c 1-^ o X 00 i» CO a >p o "^o '-' ■^^i^ i^ t-- « 3'/)COC050r-<'M(35a>0'M— 'If"--! Cp O -tlCDOOOOC-^'^^lt^rHrif-lRi O -+ '-^_«3_'<' 05'^C5COCOr-«C>q5 05--lf5-^CcSl>-lI^ rH ii:>^ -fi^rt tfl CO - lO f-'oooo'os o"i4"o"cg t-TrH^J -)r-*"-)r5D'Q0'"iOI--rt^''rJ'cr^ — • CC r-rr-'l- iC t-li-(i-lrH^r-lT-trHrHi-li-lr-t.-lr-lrtr-!r-IM'M(M(M(M(M(N ?2'd OJ 58-; jJOOlOiOiOCOCO/MOOC^l ^ » I^ CO «D t^ lO ^l.f- " ^l33O5O500CD«O»tOI^I^5O" > h~ IM If^ S ' ■* lo '*' ■*■ •sajBuspaiian IB 1 u a u n a o . ) I uj uo n d ui n s -no.)jBjidBJ aid -oo 'nondntns -noo JO inaj .laj y rt u a> . o o -•'3 _ -^ .rt O*'. H 3 Ji^ 4j X ri as OJ c: 05 iM 00 "^ I- 1^ iM »5 = -" CO (M CO -* e^J 1^ iCt ''^ f^ °0 ® «© ^oocD(Nt^'Mr-iincociir>irc3;eococO(Mco»Cs^i'^>'^OuM^os(M^r~ '^i^i^r-.oiciomirfiosoincocowe<5«ocoeo-<»<'*->*'*eoc<5ec-«fMeo w ' ' ' ~ ir o r- eq lO 00 . o 00 ® CO 05 CO o o t^ "-< >-< a u^ 1^ 1^ -♦ 00 Oco o ooooco'Mi-HSseoos'-HCor^cocococoi-i'i'i^oDr— c^c:© cp CO ie, ©"co^ ir^~co~^ -«^~l^ 0-1 ■>! © cO 00 00 -* CO iM C? ^ SS s^ ""* '^ ^ iOr-( -O rH-K~7-5--^h-!r'?0 _r^__co © CO CO o CO r- (M ^ I— oi © a CO 00 Cm^ ac^ icrH® 05 >i~ CO —_^r-. 32 CO i-T -o' co"oo — co'o'co'co -^'^'r-r.M -^i-T^co'cc© w 2J C 95 ': <* Lr 'S'-'Xi CO fM r- — i^o i-^-fi-o rjr-aoc:coi~i' 2^S^f~ gforsico ^'Mi— ( (^ OCT^^^'MCOCO'MCOCO^COCOCO'^-^COI'*© — *'^'^COO>C^ 3 -r --A 00 U^l^oo'u'f CO --"(--"ir-'cl^'l^ Co"rH — Qo'cC*'^" »eC Oo'o M CO Iff r- O"^© "^ i-^-oi-i-M— '-~->i^r-Joi?=;'»io>05«c;oOr^'-'i^«*©5^-' Q^C?5 07 ir- C3CO00'— 'C5©'^OOCi'MC:CO-**t^*^*r3"^tO©C*^CO^COC r-tci -f ojcMoicocococococo-^^-^i-^ioco-^-^kniocoicmwr^ ssi .. .^ ^H CO e^ ce 05 1 . ... , .1 ic CJ; -S- CO --I © 2 O © 1^ CO r^ i^ 1^ © ri r-. 01 1' if^ -~ $= 2J iC 2- 22 ^ ■l©'MCO©©I^^OlXC^CO00COCpr-0C©©~g0-- 5 ;c sq --H -t >r ir ^ CO 0-1 ir r^ r- c5 •+ 01 CO r- x_ © o;_^ -*_ 1 ^,^ '^ _i --^ . 1^ I --. ^T »** -*. rv* ^T> f^ -*• rr 1^ »^ '^ r— TT © © -* ic> ic r-i ; 'aiir«©ir-HCO(Nco-- I CO I- ■* O -^ 5^ CO 01 1^ ^ GC IT »r ' to r- i-^ I - '^■ (T © © ^ ir C'500lBl^©COT-l'*r-li-IClir-lr«S-^ ~ 255 a 'ft — o ha >> se - . •= ^ 2 "IE t-aor- i-r©'"c' ©01 co't^' < © © 00 r^ r~ CO © CO © 00'—"©' ^9'. — i** I'** -^ f-*^ '^^ i.r* © c-i i^ © '^^ 1^ t-- T— ' ■■* f^- CO ^-4 © o © 10 00 r^ © © - CO — CO 1^ r; ir CO -' 7j CO en oi c3 — y) u» 10 CO F CO CO S !^ S- S — ^ © c£5'>)c6coxioi>(NW©>ft'©-'c^©/5:)'^aocO'*^co ^ © K 1-1 -^ O t- ©cOl^©CC©0q-*'C0COCOir'-J! (M IM CO 0>) 00 (M ( .'- <^JXif«^irtSC5; .'MX !N CO_CO -f i 01 X 50*r-ri-g"co*r-'"ic ^^^ © ;!;5SS'^sSs:«2n;??l:;^.^2S;i^^?£o fLiOqiM -^ C0 0JC0T-IC0C0C0lOCO-*COt^COl-t~CO-ft^©r-J©i-l(M-rH >©©©©© Q©© 00 ©~ )COift©iri-H w©i<'c*© o XI-© ■5 1- lO rH © t— T— t rHC-lr— (rH -^-"SHr— 1— (CO'f»f^»^'**'© -t I~^ CO r-l r^_ CC § Oq X N "co'i-Tj^'ir" r-T I ^ •5< ^ & © I CO X £: t--. cr 1^ ! .X©0.'j©COCO'MI^'-l'-ICOt2.r--Xi-lCOCOoOt-01©^TliO--5 CO X I-- © tM t- •" © -M r- CO C<1 23 ^i 1-1 CO © ->- t- rl r^ S * ^ 01 X ©__^T^oj^©^-i<^c-i^-H^'M^'M_co ^t^cc_^co^in i-^eo S ■♦ X^ ©_-•__ X -^ X ir r^ Qt-fM-^CO-f'Cl — '>J-"COCO©©XlffOOCOlOr-II--t— "*© if' '-*' iT 1— * l_oococ6rHoic6 -^Occxcou- i^ eo i| r^ IC 1-1 X 0;1 10 'M 1-4 10 — ir t>. © CO © © CO 4! I— f ^ "^ 5"' 00 "" I^ — ^ ©' CO © jOf--<©!N©©t~-*©©t-CprH(M-".-*52ir-<;r-li!-icocoo-icor-.coeoco^co-*cot~»«cOr^ir.c<*«)i^r-io3«£^ Snipua s.reaA I I ^ CI CO t in i >©rH(Mco-*>ncpi-X©©>-^^co — inc'i- ;x5SSS^a6Sx5gg^gggr§ JOO PRICES OF FARM PRODUOTION, RELATIVE PRICES OF ARTICLES OF FARM PRODUCTION AND FARM CONSUMPTION. The accompanying tables showing prices of articles of farm production and farm consumption, respectively, are presented with the purpose of giving oppoi'tunity to compare the relative advance in the prices received by the farmer for his products with those which he must pay for the articles which he consumes. That there has been an advance the world over in prices of prac- tically all articles is quite apparent not only from our own ex- perience in the United States, but from official statements made by our consuls and others regarding prices in all parts of the world and in all the leading articles produced in various parts of the world. Elsewhere in this book will be found a large number of statei ents from our consuls in various parts of the world indicating a rapid advance in prices in practically all parts of the consuming world and in practically all of the arti- cles entering consumption. These articles in which prices have advanced abroad include many of those necessarily imported into the United States for manufacturing purposes, such as fibers, silk, wool, hides and skins, india rubber, tin, and many other articles; also requirements for 'food, including sugar, coffee, tea, etc., practically all of which must be imported because of the fact that they are not produced in the United States, or at least in sufficient quantities for our own population. In addition •to these advances in prices of the raw materials, the higher prices of labor, fuel, and transportation have resulted in higher prices of manufactures in the United States and 6ther parts of world. The following tables are given with the purpose of sup- plying information as to the relative advance in the prices of articles of farm production and of farm consumption, and will show in most cases a more rapid advance in the natural products than in articles in the manufactured state. That hiarlier wniBre level aimed at l»y the fathers of the Re- public, the policy of protection, which they inaugrnrated, se- cured, and still maintain.— Hon. George H. Ely, of Ohio, in the American Economist. Vigrorous action and measures to stamp out exlstinjer abuses and effect reform are necessary to vindicate society as at present constituted. OtlierTvlse, Tve must yield to those Tvho seek to introduce a ne^v order of thing's on a socialistic basis.— Hon. Wm. H. Taft, at Kansas City, Mo. The panic -was doubtless chiefly due to the exhaustion of the free capital of the Avorld by reason of the over- investment in ei»teri>rises that have not been as productive as expected. The enormous industrial expansion has at last tied up nearly all the Tvorld's capital -»vhich warn avail- able and iietv investments had to halt. This result vras world-wide,— Hon. AVm. H. Taft, at Kansas City, Mo. I -^vould rather hove my bo^s taught to think the ftuest thing in life Is the honesty anq (N e^' e^' (^^ N c^' M IN ei>e<30ot^oo-*©u5t^U50t>eot-Off^oo500»or^ o^ ■ O5Cn00000000to00O50000000000OJ00O>O5O>OJOJO> >• I •pnnod aad 'uoi';oo >-IOOlCOO'-^ 00 «D t>I t>I 1> lO to OJ 00 OS I-? iH 0> r-I oi rH tH rH iH F-M iH pH r^ iH tH r-t •nazop j^d 'sSrf-^ •punod .lad '9saaq D jinmc<5e05'^t»0(Moooi^ooc<5T-i«ocoiomc<50©iH ; «3 t4 (» « in CO lO ^^ C» CO «o' O M< CO ?0 » O CO CJ i-< Ci ;COCOC005COOO-*-*t-i-('' t-^ 00 ©' oi oi 00 00 ©' iH •Taqsnq lad 'saoiB^od •piiaq jad 'auiAvs jg" CO t- r- (N cq •<»; 00 00 1-^ ■* to to to i> -"i; O fh t-- iH ^_ CO i> r-j t- *; 00 ^' to GO © lO IC U~ to OS CO to 00 -"^ l-< gS eo' to' t^ r-< lO rn ,-1 rH 0-*-*^tS'*coir-coo«;iO(>jo^ift-*S5-<<>i^-*to-«o •' to' ic to' t^ .lad 'daaqs 1— t-^i— !r- 'vr'cot^©ootOQOoo©(Mtoi^coxmcocJ5CqioiB](MNC-ic^eQe. r-l (M to < is; •pBaq jad 3AVO0 qoilpv (^■^St6o5i-H©-*t^f^osmi l^S Wc5(MlM(N(N(M(M(NSS<5^ r^ ©' ©* lO IC m' (N ©' rH to (MinOsOOOSt-rHCOrHt^eO OgiMCOiMIN'^eOCOO^lS •laqsnq aad 'ujoo •vOCCtD-^rHCOtOtO-^iOt^eom' ;t^ Cft cq' to -f' -r" go' o' ©' os to iff in rH OcOCOCO-l'COfMlff-'fCOCO-^INfN CO t^ CO t^ Iff eo Ifi rH a>e40)ooe<3a» SSJ@2S ;8{C§^g!£^88S£S538gSS^5feSSl::8 ^;;§8?8iN2J.8888^g§8S^{HS§St28S?8^.S,§8§8 '~ \fi ~ CO 1-c r- © u- (M " " Mt~oSi-io55iM.-i©oo®iriSco25xoo«o«o»i^iMC>j M 'N « « eo w 00 eo eo eo ci N N eo (>j c4 e^' (N ©^ »i ©i (N «><< •uazop .lad 'siaAoqs •spanod not J&d 's[iOK[ ©C§o5oOOOCIOOOOOOOOOT)<'-rCXDOJOiCOi— t-iM©«Do4;06 ©' 00 1^ t^ i~ I- 1-^ t^ t^ i'^ 1^ I-' t>^ i^ t^ 00 o: ci ov CO 1-^ I-' 1^ I- SMiMwcsSSSoo-^o-^M-^w&j-SwiNwwSa^J lft.ie— T-l « •noj a.id c5©o»pi-i-f CO in t-^ i^ to -* »-^ o ir ojr-toto 00«OU5»O I^ 00 00 «5 $87.67 5J.55 60.75 57.40 53.05 51.77 51.60 55.20 50.40 52.80 46.80 s 2? 40.80 43.20 46.80 45.60 j^Moi-^td^i^SSioSIC SJ oSg^^ ;2J2e?$ §S?§^ *? OMO -f ■* lo vo io_icifl ■oooj •pjBX lad I 'sf.iqifoix i gja$Mi^c.ioooooC>i-Ht~05C>5oOi-i»5oi-(c»«oi^ *? IC r-l rH eO 50 «0 «0 to '** •*■* •* ■*•* U5 ■* lO lO U5 l« lO CO .•^ CgS^^riiS'iegSS s^ 8 5S8 S8SSS t^.?§ o ~IOC0intOC0C0KOC0t0l0l«lfi»0'*'MClC>fMCC0 ■^h-tr-oQ-^ao-^irMooiflQioooifliQOio^opf^t- gJt^Wt0a0O>lBft o> o> OS oo" 05 ©* © ©" © oo' »-^ 00 ]:5 O 1-4 r-( i-H i-H rl 1-1 r-( rH i-l rH i-l iH iH rH ^ CO ir 00 ICin lO rH © (M 1^ C5 Op 1'^ O ec l-'^ 00 (N 1~ 1^ 1-' l-" I J IP CO C>1 is r^ 1^ I^ -f CO I- © CO -^ 1- r-- 1-1 C5 ■* in « IM (M 1^ c 'OOtOCOCOtOCOCOCOlOlOlCkftiO-PlOCOI>l^l^C •paBif aad 'sSunaaqg •pnnod .T-^d .S}2t5t2S88S?SS;^?tiS?2gSS:;2S'd:igS§! .© 52 5^ ''"■' * ffi r~ '-'^ ''~ ~" 5^ I to ■*■>*■«"■* ■^ ■* •^ •>!i< ■^ lO >o •>«< •*•<)•* in ■*' ■*' i^giiiiii^s^iiii^ggiii PRICES OF FARM PRODUCTS. 203 Price* o£ Principal Agrricaltnre Prodnets on the Farm Decem- ber 1, 1892, to December 1, 1»07. [rrom report of Department of Agriculture. 1 Farm prices of wheat per bushel. state or Territory. Maine New Hampshire Vermont Conneeticut _ New York New Jersey Pennsylvania Delaware Maryland — Virginia West Virginia North Carolina South Carolina Georgia Ohio Indiana Illinois Michigan Wisconsin Minnesota Iowa Missouri North Dakota South Dakota Nebraska Kansas Kentucky Tennessee Alabama Mississippi Texas Indian Territory Oklahoma . Arkansas Montana Wyoming Colorado New Mexico Arizona Utah Nevada Idaho Washington Oregon California General average 1892 $1.02 85 $0.79 80 67 .535 .51 .55 .51 .63 .65 .88 1,00 ..53 .43 .57 $0.82 76 $0.81 1.00 .509 .89 .8;i .87 .88 .80 .78 .as .89 .8') .78 .80 .74 .84 .70 .68 :fo .64 $1.06 1.10 1.01 1.00 .90 .93 .91 .91 .93 .92 .89 .91 1.18 1.03 .88 .89 .89 .87 .84 .726 .75 .74 .81 .95 1.01 $0.90 .92 .78 .82 '.74 .72 .70 .71 .72 .77 .82 1.01 .95 .71 .70 .61 .69 .64 .63 .59 .63 .5S .58 .53 .55 .69 .79 .8.) .81 .64 .619 Farm values, corn per bushel. state or Territory. 1892 1895 1896 1897 1900 1903 1904 1907 Maine Cts.. 67 65 64 62 63 62 60 58 57 44 45 53 56 51 57 56 60 42 40 .37 46 38 37 32 36 40 Cts. 54 51 48 52 56 51 45 42 39 34 37 37 40 38 46 41 47 27 23 22 32 .30 20 18 20 24 Cts. 47 45 38 46 49 42 38 36 33 25 32 32 34 37 46 43 53 21 19 18 24 22 '19 14 20 25 Cts. 47 45 43 47 54 49 40 38 34 30 30 38 40 43 49 48 55 25 21 21 27 25 24 17 24 82 Cts. 55 58 50 54 67 55 47 45 45 38 41 49 50 57 64 57 60 34 32 32 37 33 29 27 32 42 Cts. 66 63 62 66 81 67 60 57 57 49 51 53 64 61 69 73 47 36 36 46 43 38 38 34 42 Cts. 81 72 73 72 84 73 64 58 59 49 50 59 64 62 70 71 75 46 41 39 52 46 36 33 44 40 Ots. 75 New Hampshire 75 Vermont 75 Massachusetts - -- 75 Rhode Island 80 Connecticut 75 New York 71 63 Pennsylvania _. 64 Delaware 52 Maryland _- - 54 Virginia .. _- 64 West Virginia 72 North Carolina - 74 South Carolina - 78 Georgia 76 Florida 80 Ohio ' _. 52 Indiana -- 45 Illinois - - 44 Michigan .— 55 55 Minnesota 50 ^ 43 Missouri __ __ 47 North Dakjta —. 60 204 PRICES OF FARM PRODUCTS. Farm values, corn per bushel — Continued, State or Territory. 1892 1895 1896 1897 1900 1903 1904 1907 South Dakota Cts. 38 28 31 40 43 52 51 50 45 Cts. 23 18 19 27 27 37 37 40 31 Cts. 18 13 18 25 28 45 44 45 41 Cts. 21 17 22 35 36 46 45 45 41 Cts. 29 31 32 40 49 58 58 50 47 Cts. 35 28 36 56 49 57 54 .58 48 39 38 51 62 58 54 75 90 70 57 65 67 74 Cts. 36 33 41 49 50 60 96 57 52 40 39 63 68 57 54 78 91 72 70 66 61 78 Cts. 48 41 Nebraska Kensas Kentucky 44 53 57 75 75 70 60 Mississippi . Louisiana — — — Texas Indian Territory _. Oklahoma 26 43 59 60 48 64 44 Arkansas ._ __ 47 70 61 40 72 32 75 57 41 56 37 60 78 36 55 40 65 60 38 58 68 Montana ^Wyoming Colorado 68 70 65 New Mexico .— _ Arizona :. 72 90 Utah . 58 49 51 55 63 72 Idaho ... 70 Washington " 60 56 55 40 55 53 57 56 53 55 63 56 59 57 61 70 Oregon . 74" California 85 General average 39.4 25.3 21.5 26.3 35.7 42.5 44.1 61.6 Farm prices of oats per bushel. State or Territory. 1892 1893 1895 1896 1897 1900 1904 1907 Maine Cts. 45 44 43 48 49 45 39 41 40 38 38 39 41 45 52 52 55 35 34 31 35 29 28 26 30 28 23 23 26 37 38 51 50 50 88 Cts. 45 43 42 42 11 35 38 35 35 38 44 53 52 55 30 28 27 32- 27 26 23 25 28 25 22 27 34 31 51 47 44 42 Cts. 34 35 33 34 39 31 28 29 27 29 27 30 32 38 49 46 65 22 20 17 23 18 14 14 18 16 17 14 17 26 27 42 39 36 26 Cts. 31 35 31 35 31 31 26 28 24 21 23 26 28 35 48 41 53 17 16 15 19 17 15 12 17 18 13 11 16 24 26 41 44 34 34 Cts. 32 38 32 33 34 34 27 30 27 23 26 29 30 37 45 42 53 20 19 18 23 19 19 16 19 26 18 15 18 27 28 43 44 38 27 Cts. 38 38 36 38 38 35 32 31 30 30 31 37 34 45 48 49 50 26 23 23 26 23 24 20 23 32 24 24 23 31 46 40 30 47 44 45 47 44 38 40 38 41 36 43 44 52 60 65 60 32 30 30 33 28 26 26 34 24 26 25 33 40 37 64 52 45 44 38 86 43 46 39 46 57 74 i 50 43 47 67 Cts. 60 New Hampshire 61 63 60 66 Connecticut -- -- 60 New York 67 66 54 60 Maryland 49 Virginia — 60 West Virginia , 54 60 72 Georgia Florida Ohio Indiana lUInois Michigan 72 75 45 42 41 48 47 KInnesota _ — — 41 lowii _ _ __ 38 Missouri North Dakota South Dakota 41 40 39 Nebraska Kansas » «« 37 42 Kentucky Tennessee Alabama Mississippi 49 50 67 65 Louisiana Texas Indian Territory , Oklahoma 55 48 Arkansas __ _ Montana 40 40 38 34 56 39 37 40 37 51 32 44 39 28 45 31 31 53 30 40 33 33 35 32 41 35 42 47 43 48 51 46 V^^yoming Colorado 1 New Mexico Arizona ._ 63 50 55 '60 Utah 40 33 30 39 33 44 48 Nevada 72 Idaho — 37 35 37 40 41 35 37 38 29 28 27 39 30 40 33 44 32 35 35 49 40 40 41 46 42 Washington 45 Oregon 45 California 71 General average 31.7 29.4 19.9 18.7 21.2 25.8 31.3 44.3 • FREIGHT RATES, 1868 to 190: 20- Grain, Chicago to 'New York, and average rates, in cents, per hushel. [Prom Bulletin No. 15, Revised. Misoelluneous Series, of Division of Statistics.] Wheat. Corn. Via lake and rail. Via all rail. Via lake aud ruii. Via all rail. Ye«r. As re- ported by New York Produce Kx- chauge. As re- ported by Chi- cago Board of Trade As re- ported by New York Produce Ex- change. As re- por ed by Chi- cago Board of Trade. As re- ported by Chi- cago Board of Trade. ; ■ Cents. As re- ported by Chi- cago Board of Trade. 1868 Cents. 29.00 25.00 22.00 25.00 28.00 26.90 16.90 14.60 . 11.80 15.80 11.40 13.30 15.70 10.40 10.90 11.50 9.95 9.02 12.00 12.00 11.00 8.70 8.50 8.53 7.55 8.44 7.00 6.95 7.32 7.37 4.96 6.63 5.05 5.57 5.78 6.17 5.02 6.44 6.48 6.93 Cents. Cents. 42.6 35.1 33.3 31.0 33.5 33.2 28.7 24.1 16.5 20.3 17.7 17.3 19.9 14.4 14.6 16.5 13.12 14.0 16.5 al5.74 al4.5 15.0 14.31 15.0 14.23 14.7 12.88 12.17 12.0 12.32 11.55 11.13 b9.98 9.92 10.60 11.33 11.11 10.20 10.50 11.30 Cents. 37.84 35.57 30.00 31.80 34.99 31.02 26.25 24.00 16.86 20.50 17.70 17.74 19.80 14.40 14.47 16.20 13.20 13.20 15.00 15.75 14.50 15.00 14.. 30 15.00 13.80 14.63 13.20 11.89 12.00 12.50 12.00 11.60 9.96 9.88 10.62 11.29 11.12 9.90 10.20 c Cents. 35.32 1869 25.20 22.50 25.42 29.50 24.61 17.09 13.89 11.36 15.46 12.09 13.13 15.80 10.49 10.91 11.63 10.00 9.02 12.00 12.00 11.14 8.97 8.52 8.57 7.59 8.48 7.00 6.96 6.61 7.42 4.91 6.63 5.10 5.54 5.89 6.37 5.50 6.40 6.35 c 23.55 22.20 23.72 26.60 22.98 13.88 13.03 10.79 14.06 10.53 12.20 14.43 9.42 10.28 11.00 8.50 8.01 11.20 11.20 10.26 8.19 7.32 7.53 7.21 7.97 6.50 6.40 6.15 6.92 4.41 5.83 4.72 5.16 5.51 5.78 4.82 5.19 5.72 c 33.20 1870 28.00 1871 29.68 1872 32.66 1873 28.93 1874 24.50 1875- -- 22.40 1876 15.74 1877 - 18.90 1878- 16.. 52 1879 -- 14.56 1880 17.48 1881 1882 _ 13.40 13.50 1883 15.12 1884.. 12.32 ISS') 12.32 1SS6 1887 _. 14.00 14.70 1888 - 13.54 1889a : 12.60 18J0 11.36 1891 14.00 1892 12.96 1898 13.65 1894- 12.32 1895 - — 10.29 1896 - . _ __ 10.50 1897 _ -X 11.43 1898 . 9.80 1899 ... . 10.08 1900 -- . 9.19 1901 9.21 1902 9.94 1903 10.54 1904 - 10.38 1905 9.40 1006 9.52 1907 e a Average based upon officially published tariffs; actual rates lower, b After 1899, for domestic consumption; rates for export lower. c Data not available. Average annual freight rates from 1870 to 1907. [From Statistical Abstract.] Freight rates on wheat per bushel. Freight rates on can- ned goods, per cwt., from Pacific coast to New York. Year. Chicago to New York, by rail. Buffalo to New York, by canal. Les~8 than car- loads. In car- loads. 1870 1871 Cents. 33.3 31.0 33.5 33.2 28.7 24.1 16.5 20.3 17.7 17.3 19.9 Cents. 11.2 12.6 13. 11.4 10.0 7.9 6.6 7.4 6.0 6.8 «.5 13.66 8.76 8.74 3.69 3.78 3.66 3.77 4.06 4.17 4.20 4.20 13.66 3.76 1872 1873 3.74 3.69 1874 3.78 1S75 3.66 1876 1877 8.77 4.06 1878 - 4.17 1879 4.20 4.a» 206 FREIGHT RATES. 1S68 to 1907. innual average freight rates from ISHO to 1901 — Continued. Year. Freight rates on wheat per bushel. Freight rates on can- nod goods, per cwt., Irom Pacillc coast to New York. Chlcaao to New York, by rail. Buffalo to New York, by caual. LesH than car- loads. In car- loads. 1881 - 1«82 14.4 14.6 16.5 13.125 14.0 16.5 15.71 11.5 15.0 14.31 15.0 14.23 14.7 12.88 12.17 j2.0 12.32 11.55 11.13 9.98 9.92 10.60 11.33 •11.11 10.20 10.50 11.30 4.7 5.4 4.9 4.2 3.8 ' li 3.4 4.8 3.8 3.5 3.5 4.6 3.2 2.2 3.7 2.8 2.8 3.0 2.5 3.5 3.8 4.0 3.2 3.9 4.2 5.0 2.54 1.50 1.50 1.50 1.50 1.18 1.55 1.89 2.30 2.30 2.30 2.30 2.30 2.30 2.30 1.91 l.(X) 1.90 1.90 1.90 1.90 1.90 1.90 1.90 1.90 1.90 1.90 2.51 1 59 1883 1.50 16S1 1885 > _ 1.41 1.2 > 1886 1.01 1887 ^ - 1883 7. 1.20 1.13 1889 1890- 1.03 1.00 1891 _ _... 1.09 1892 1.05 1893 -..--. 18J4 : 1.00 1.00 1895 1.00 1896 .75 1897 _ .76 1898 .:-. .75 lt99 - .75 1900 - .75 1901 .75 1902 .75 1903 . 190t _ .75 .75 1905 - .75 1903 _. .75 1907 - .75 The State 1m potent. Corporattonii and conil>tnatlons ^vliieh derive tlieir breath from the State are within its absolute and perpetual control. — Hon. C. W^. FairbankN. at St. Paul, Minn.. AusrnNt 31. 1{)<>3. Corporations that are handled honestly and fairly, so far from beinK' an evil, are a natnral business ev«»lntlon and make for the jJieneral prosperity of our land. "We do no< >vl»«h to destroy corporations, but ^ve do Tvisli to make them subserve the public icood. — I*resi«lent Roosevelt at Cincinnati. Ohio. September 20. 19<>:2. We must regard and have an interest In what our neitirh- bors arc doinv^. and ^vhen we can assist them, "tve cannot pa.ss by on the other side as the Levlte di»i, but T»e must take them up as the Good Samnriian did and bind up their wounds and prepare to send them on their -tvay rejoicinjBf. — Hon. Wm. H. Taft, at Cleveland. Ohio. l^et nothin;^;: distract us; let no discordant voice intrude to embarrass us in the solution of the mitchty probleius which involve such vast conseiiuences to ourselves and jios- ierlJy. Let us remember that God bestows supreme oppor- tunity upon no nation >vhicli Is not ready to respond to the call <:f supreme duty. — President McKinley at St. Louis, Oct. 14, 1.S08. > . ■■\ ■.;'^ , , • It is probable that the strlngrency which reached its helK'ht on that dark day of October 24 miftht In part have been alleviated had we had a currency ^vhich could uuto> mntically enlargre Itself to meet the tremendous demand of a day or a >veek or a month, while public confidence ' ivas beinK restored. — Hon. Wm. H. Taft, to Merchants and Manu- facturers* Association, Boston, Mans. The riiBTht of railway corporations to a fair and profit- able return ui»on their investments and to a reasonable freedom in their regulations must be recounixed; but it seems only Just that, so far as its constitutional authority Tivill permit, Con«:ress should protect the people at lars'e in their interstate traffic against acts of injustice -tvhich the State «-overnments are poTterless to prevent. — President Arthur. But the most sratlfyln}^ feature of this picture of bunk- ingr and financial conditions in our country is the fact that deposits in savinfirs banks— those institutions for the safe- keepin^r of the earniuK's of ^vorkiufi^men and wido^vs and* orphans and children of the country— have increased from i^.'S;i,4».OCM). in 1870 to spa.SOO.OOO.tXM), In 1»08. What say you business men, of the future of a country whose workln^'- mnn and working woman and children have three and a half billion dollars laid aside for a "rainy day."— O. P. Austin. -NVMBER AND VALUE OF FARM ANIMALS. 207 V) 05 H t T^ 8='-' « ■^^- cc 4^ H » Is a A T- « a^ c s a, •4; So g •So eg b ^^ «H ?. ' s- 0) fH ° 0"" « Tl"^ k .2^ -s ^9 C3 «« b ^ tDSZ .fi ■^ Ml -^ <: u. a i/ o ^ OS H 43 t~ CO CO r- O? O » C5 -tt-C0i-l( (CC-"!-|05C-lr-ire(M(MOCC-'-H'NT-'( '(Nt— u^Oir^r-((>ir^c^ ■f o 1^ C5 (i^i IN 00 1-^ 1 M M oS C-l C ' o u^ cc c-T -~ n i>c T-H I : t^ « i2 ::t S 50 ?3 ?J ' ii I CI ffi © O CD -^ O - ^ ^ ... I CO CC 23_C1 f-H^QO CO I - CO O c: CO C^_! lOC)COlOTt('MQ»Xl--COOOCOb-l^(M-*CO !■-. ini>'*'*-*'*cccccciri-f-^-*-tifMoi5 t^-^-'C^IC-lT-iI^I'Sir-lCro-l-OI-OOOi-lr-iO 05i^rH5?coi-i^*— ir^irc^cou-Or-icooco ico5C'ioooa5cc2jc>ir5coi--*T-icccciCi-ico CO cc T-l « r-J_CD r-+0 f-^CO CDO-fCClf^CCOe•^^- 8*00 co""^ 01 co'ir'i^ J.] iCca CO — c» cc'i^ a~. :* r-T Oi-ic>ioocc-j;ccc^^'t-co>'~3=r^oii--*iMi-'»5 0'-ICClC001-C03i-tOI--©COi-i'tCOC'10 Cp" r-T 70 cc «' -* CIO 00' Co' -+ cc Co' ro" -""O o' r-T o' r-T o5cicci--+"C>c;i-iu^T-ix>r'CccDCCi^cc--^cc C<5 ^ 05 0-1 O C1_C-1_00 CO .-I OD_l- © Ci CO i-' CO CI o -jT cc -l< t^ »C C.1 X ?D I ~ C3 rH C5 CI cc r^ IC O -~ -^ 4'-*-t-«'-*"*:«iMccfc-^»ScDcoio-fiSicir; ts.cDin-^'t^CTcoi-' — irjoccccci-t-cnc^^ cc © ic o -* c-1 ^ c-j cc c«i cc © t - o :c c - • -H S rH CI '-:.'t~^.'^.«i'-','>'.S^®,=;— ' t^ '";' ini^G5C10J05Xa5CPr-ICSTfCC'*Xl-^r--l C^lM-*XXC>'^l(>)C»CCX-«Cll''l~f^l~l ,-i.ot^«pcagot-c^t~p«D05-*c55o©fCcl<-^CO-^X" ininiflin-C'-'?'='^;IL> CD C^l i-H r-l CO -• -f< ^ C-1 ©_^(M 1^ Cl^ ■* -^^ CO_^ I ^ -»co^o©lS!^^o^coli^I•-ce5DCCOlf^© cDcoi-iccD-fc-i©o:i^i~io-*'*eccct^rH© cccccoc<5ccccccc«5e'^e-^co■>l•■*•*-*'-t■-»■>f^m I > eC©C-l»CrH~ 10CCCD»ftCOI^-t<'*OJ'>^Cl©© cc©ccxcDci-«^(Moo©r-c3»-'Qb©c: xc cJt~xo>X'-i'^a5ccccc^icc©'-ii-ie-ioocDi~ iCCOI^Ol^QirCO^CCiiH-TiCCr-l-jr^X^O ! CC cc cc CC CO CC CC ■* -* 10 ©o5rH<5*)0Q- lr^ -*■ to O -f >.'» ! ICO a - — IS 2 s c3 0" !:■ cq: 5^^ O 03 5^^ 5 ' 00 © c O ■* CD iC t~ ( («C CO c CO Oi CO •* i^ -^ r^ i-i © © CI cc CD i? o; c-1 cc '/j -^ lf5iHr-IC>10p©CCT»l-*SCT5CC35©lHI;-r:2^- 10 CO CD CO COCO comiriccDCDCOl^t^r~<3: Or-< 1^ eo X © cc c Ot-H6DCDf3C^ c-i so Cl CO cccccc ift CO -O t-ll--. kft I-, cc '^^ 00 -^ --H "-"I.* '^.®.'^."^^°. m X 1ft CO CO t— r-( CD cc o o; ©csc-i'<<'i»©iC'220^/)© . .. — . — o eij o 51 >-i X I-- cc c] » I- CJ cc xir 10 05© 05 t^ Ift I !§52feS; ' ©CO *] *] -M t^ IT O I - T^ 2 CCCOXCP'-*'^'*"* r-ima5©XC35C-lCO 1 1> -* 1-1 r^ 1 ©-^co©XrHc<5a«iot^»n>nj^©i--i~o Tie CDOUCm-Tj^CCCCCCCOCDflDCDt^XCTSCi 1 I (^C<5-»t"lCcpi^XCTl©i-l0>lcC-^lOCD^5£ )XXXxxxxxS«Scn*otSsS LABOR CONDITIONS UNDER REPUBLI- CAN AND DEMOCRATIC ADMINIS- TRATIONS. EMPLOYMENT, HOURS OP LABOR, AND ^ITAGBS. The prosperity of a nation is always evidenced by the con- dition of its wage-earners. Good wages and steady employ- ment are invariably indicative of sound business conditions and public confidence in those who direct the country's destinies. That the unexampled prosperity which has been manifest since the return of the Kepublican party to control and the enactment of a protective tariff has continued under the second administra- tion of President Roosevelt is amply demonstrated by the bulletin on wages and hours of labor recently issued by the United States Bureau of Labor.* To obtain this information, which is published annually, special agents of the bureau were sent to representative establishments in various parts of the country to copy directly from the pay rolls the figures showing the num- ber of persons employed, the average wages paid, and the hours worked per week. This investigation was conducted with the greatest care by experts specially trained for this class of work, and the results shown are believed to be trustworthy in every respect. The following tables, which have been compiled from this and preceding numbers of the bulletin, show in actual and relative figures the number of employees, the average number of hours worked per week, and the average wages per hour in 15 leading occupations during each of the years 1890 to 1907. The number of establishments furnishing the data is given at the head of each table. To facilitate the study of the figures the lureau of Labor computed a relative number to accompany each actual number. These relative numbers serve a double purpose — ^first, they pre- sent to the mind of the reader more clearly than the actual or concrete numbers the measure of difference between the data for a series of years, and, second, by their use combinations are made possible that cannot be made with concrete numbers. In making comparisons, therefore, between data for individual, years the relative, rather than the actual, numbers should be relied upon. While all comparisons might have been made with 1890, or any other year, it was thought best to take as a basis for comparison, or 100.0, not any one year, but the aver- age during the ten years from 1890 to 1899, owing to the fact that the conditions in any one year might be abnormal. On the first line, therefore, of the table given below (for black- smiths) appears the niimber 576, which was the average num- ber employed during the ten years from 1890 to 1899 in the 166 establishments investigated. In the second column is the relative number 100.0, indicating that the number 576 is taken as the basis, or 100.0. In the second line, second column, is given the relative number 99.5, indicating that in 1890 the number of employees was 99.5 per cent of the average number employed during the ten-year period from 1890 to 1899. The other relative figrires may be used in a similar manner. In computing the relative number of employees for different years account was taken of the increase or decrease in the number of establishments considered. • The bi-monthly bulletins of the Bureau of Labor are published for frM distribution and can be obtained on application to the bureau. 208 EMPLOYMENT, HOURS OF LABOR AND WAGES. 209 Blacksmiths. [Data from 166 establishments 1S9(>-1.X)3; J92, 1901; 178. 1905; 188, 1906; 197, 1907.1 Number of Average hours Average wages Tear. employees. per week. per hour. Actual. Relative. Actual. Relative. Actual. Relative. Average IS^O-Qa. 576 100 59.00 100.0 $0,2539 100.0 1890 573 93.5 59.41 100.5 .2677 101.4 1S91 579 100.5 59.20 100.2 .2681 101.6 1892 583 101.2 59.37 100.5 .2672 101.2 1893- .586 101.7 59.03 99.9 .2677 101.4 1894 510 88.4 58.68 99.3 .2611 99.1 1895 511 93.9 59.18 100.2 .2002 98.8 1893 548 95,1 68.93 99.7 .2643 100.1 1897- 541 93.9 58.96 99.8 .2301 98.6 1898 635 110.2 59.20 100.2 .2=i87 98.0 1899 665 695 115.5 120.7 58.98 58.87 99.8 99.6 .2037 .2685 99.9 1900 101.7 1901 753 130.7 57.78 97.8 .2757 104.4 1902 802 139.2 57.17 96.8 .2841 107.7 1903 818 142.5 56.65 95.7 .2902 111.8 1904.. 776 130.6 56.40 95.5 ,2^79 110.2 1905 751 187.6 58.77 93.0 .3030 111.7 1906.. 861 158.4 58.80 98.1 .3130 114.7 1907-. 804 147.4 56.52 97.8 .3200 118.0 Boilermakers. [Data from 97 establishments 1890-1903; 93, 1904; 91. 1905; 93. 1908; 94, 1907.] Average 1890-99. 1,263 100 58.55 100.0 $0.2609 100.0 1890.. 1,3.36 105.8 • 59.25 101.2 .25J4 99.4 1891 1,231 102.2 59.23 101.2 .2577 98.8 1892 1,327 ^.05.1 58.88 100.8 .2585 93.1 1893 1,280 101.3 .58.39 99.8 .25S3 99.0 1891. 1,105 87.5 58.83 99.9 .2614 100.2 1835. 1,136 58.47 99.9 .2629 100.8 1896 1,236 97.9 58.02 99.1 .2626 100.7 1897 1,197 91.8 58.11 99.3 .2607 93.9 1898 1,354 107.2 58.30 99.6 .2617 100.3 1899 1,309 1,477 108.4 116.9 58.06 57.36 99.2 98.0 .2654 .2773 101.7 1900 10S.3 1901 1 , 585 125.5 53.82 97.1 .2794 107.1 19^ 1,624 128.6 56.33 96.3 .2800 107.8 1903 1,700 131.6 56.24 96.1 .2818 109.2 1904 1,289 121.3 55.98 95.0 .2312 113.2 1905 1,182 120.9 55.92 9t.8 .30:J7 115.4 1906 1,227 130.4 56.09 95.2 .3135 118.2 1907 1,241 130.3 55.73 94.7 .3290 123.0 Bricklayers. ^ [Data from 212 establishments 1830-1903; 229. 1901; 209, 1905; 215, 1906; 222, 1907.] Average 1890-99 4,355 100.0 51.57 100.0 $0.4387 100.0 1890 4,422 101.5 53.22 103.2 .4316 98.4 1891 4.892 112.3 52.80 102.4 .4365 93.5 1892 4,967 114.1 52.19 101.2 .4431 101.0 18<)3 4,5.35 104.1 51.63 100.1 .4436 101.1 1894 4,055 93.1 51.93 100.8 .4325 98.6 1895. 3,841 88.2 51.53 100.0 .4857 93.5 1896... 3,998 91.3 51.50 99.9 .4337 98.9 1897 4,010 92.1 • 51.11 99.1 .4361 ^•1 18)8 4,150 L 95.3 50.47 97.9 .4331 98.7 1899 .- 4,675 ^ 107.3 49.24 95.5 .45)7 104.8 1900 4,576 105.1 49.32 95.6 .4672 105.5 1901 5,112 118.1 48.62 94.3 .4912 112.0 1902 4,781 109.8 48.27 93.6 .5313 118.0 1903 5,061 116.3 47.83 92.7 .5171 124.7 1901... 4,644 111.2 47.32 92.1 .5-86 127.3 190.5 4,365 111.8 46.79 92.0 .5917 182.1 1906 5,101. 124.0 46.82 91.9 .6205 138.6 1907. _. 4,819 115.7 46.62 91.8 .6313 140.9 Thiis brinssrs me to the nnestion of arb-iration. It Spes Ti^thont Mayingr that where an adjustment eannot be reached by nesotiation. It la far better for the community at largre that the differences be settled by submission to an imimrtlal tribunal and agreement to abide its judftment than to resort to a trial of resistance and endurance by lockouts and strilces.— Hon. Wm. H. Taft, at Cooper Union, New York City. 210 EMPLOY )n:\'r. noch's of lauor -iy/) ^y^r,Efi. Carpenters. TData from 227 establishments 1890-1908; 242, liK)!; 213, 1005; 216, liWO; 225, IIWT.] Year. Average 1890-99. 1890. 1891. 1892. 1893. 1894. 1895. 1896. 1897. 1898. 1899. IJKK). 1901. 1902. 1903. 190 k 190>. 1906. 1907. Numbet of employees. Xctual. ItelRtlve. 5,655 5,923 6,231 6,481 5,528 5,019 5,021 5,413 5,403 5.402 6,120 6,338 6,630 6,903 6,580 6,748 6.652 7.168 7.386 100.0 104.8 110.2 114.3 97.8 89.3 88.8 y5.7 95.4 95.6 108.2 IW.O 117.8 122.1 116.4 108.6 108.3 121 6 124.7 Average hours per week. Actual. Relative. I Actual. 54.85 55.94 5'>.5() .55.12 55.22 55.27 55.05 54.67 54.20 54.02 53.42 51.88 50.74 19.70 49.41 -18. 99 48.64 48.26 47.87 100.0 102. 101.3 100.5 100.7 100.7 100.3 99.7 95.4 98.5 97.4 94.5 92.5 90.6 90.2 89.9 90.1 89.7 8ji.9 Average wages per hour. Relative. .2751 .2713 .2730 .2825 .2744 .2693 .2602 .27 to .2748 i .2790 .283) .3040 .3190 .3103 .3591 .3833 .3773 .4017 .4338 100.0 98.6 90.2 102.7 99.7 97.9 97.9 99.0 100.0 101.4 103.3 110.8 U5.9 123.7 130.6 129.9 133.6 141.6 15U9 Compositors. [Data for employees from 91 establishment.s 1810-1903. Data for hours and w;i«:es from 01 establishments IHOO; 92, 1801, 1802; 93. 18J3; 01. 1804; 05, 189.")- loa.{. Data from 135 establishments 1904; 118, 1905; 149. 1903; 151, 1907. J Average 1890-99.. 1,148 100.0 .52.5 5 100. $0.3939 100.0 1890 1,.598 131.4 53.15 101.2 .3180 101.0 1801 1,530 133.3 52.62 103.2 .3997 101.5 1892 1,491 130.1 .52.-58 100.1 .4013 101.9 1893 1,327 115.6 53.13 101.1 .3)33 99.8 1894 1,055 91.9 52.75 100.4 ..379 J 96.4 189.5 915 79.7 52.73 100.1 ..3827 97.2 1896 883 76.9 52.. 58 100.1 .3897 98.9 1897 928 80.8 52.47 m.a .3925 99.6 1808 898 78.2 .52.06 9.1.1 .3931 99.9 1899. 944 82.2 .51.26 97.6 .4086 103.7 1930- 969 84.4 51.00 97.3 .1071 103. 1 1901. 950 83.5 50.37 95.9 .4252 107.0 1002 954 1,009 83.1 87.9 49.96 49.81 95.1 94.8 .4352 .4467 110.5 1003. 113.4 1004.. 1,795 92.4 47.23 93.0 .4916 115.6 1905 2.193 . 100.7 47.42 93. 4 .5061 118.3 vm 2,205 108.7 47.25 92.8 .5120 120.3 1907 2,357 114.8 46.92 92.3 .5« 124.1 » Hod carriers. [Data from 250 establishments 1890-1903; 262, 1904; 255, 1905; 260, 1906; 311,1907.] Average 1890-99.. 1830.. 1891.. 1802... 1893.- 1894... 180.5.-, 1806... 18)7... 1808... 1899... 1000... vm... 1902... 1903... 1904... 100.5... 1.903... 1907... 4,242 4,327 4,644 4,894 4,455 3,698 3,844 3,959 4,685 4,417 5,037 5,032 5,212 4,811 4,618 100.0 102.0 109.5 115.4 105.0 87.2 90.6 93.3 94.2 92.4 110.4 104.1 120.2 119.3 123.5 124.3 128.1 146.3 131.1 100.0 102.3 101.8 100.4 103.1 100.8 99.9 90.7 99.7 98.9 96.5 96.5 95.6 91.1 93.0 92.8 93,0 92.9 92.7 $0.2.329 .22"^9 .2248 .2314 .2325 .2303 .2320 .23:^5 .2322 .2313 .2518 .2408 .2516 .2676 .2863 .2866 .2933 .3192 .3202 100.0 97.0 96.5 99.4 99.8 98.9 99.6 100.3 99.7 100.6 108.1 107. » 103.3 114.9 122.0 123.8 124.7 134.5 135.9 An injunction suit does not diJfer in tlie slierhtest deg^ree from a suit bi'OUf^lit after tlie event, «o far as the function of tbe court is concerned in declaring- tlie la^v. except that the court declares the la^''' in r«'*:»ie**t of anticipated facts rather than in respect of those which have happened. The court has no authority to mal<:e law.— Hon Wm. H. Taft, at Cooper Unlouj New York City. WMPL07MENT, HOURS OF LABOR AND WAGES. 211 Iron molders. [Datft from 183 establishments 1890-1903; 179, 1904; 169, 1905; 168. 1906; 171, 1907.] Number of employees. Average hours per week. Average wages per hour. Actual. Relative, Actual. Relative. Actual. Relative. ATwage 1890-99-. 1890— 1891-. 1892. 1893 1894. 1895... 1896 1897— 1898. 2,974 2,962 2,952 3,032 3,181 2,519 2,781 2,519 2,781 3,234 3,439 3,790 3,793 3,968 4,218 3,408 3,637 4,094 4,354 100.0 99.6 99.3 102.0 107.0 84.7 93.5 97.8 91.9 108.7 115.6 127.4 127.5 133.4 141.8 116.2 134.9 147.6 154.4 59.31 59.51 59.60 .59.49 59.18 59.10 59.29 59.24 59.17 59.34 59.14 59.07 58.47 57.65 56.80 56.13 56.09 56.08 55.74 100.0 100.4 100.5 100.3 99.8 99.7 100.0 99.9 99.8 100.0 99.7 99.6 9S.6 97.2 95.8 95.1 95.1 95.1 94.8 $0.2526 .2540 .2505 .2548 .2557 .2472 .2476 .2507 .2525 .2503 .2568 .2694 .2739 .2894 .3036 .3072 .3078 .3217 .3317 100.0 100.6 101.5 100.9 101.2 97.9 98.0 99.2 100.0 99.1 101 7 1900... 1901 1902 106.7 108.4 114 6 1908 1901 1905 1906 1907 120.2 119.5 119.3 123.8 127.0 Laborers. [Data from 146 establishments 1890-1903; 172, 1901; 192, 1905; 1906; 190, 1907.] Average 1890-99 4,460 5,118 100.0 58 84 100.0 $0.1467 .1507 100.0 1890 ^ 1891 J? 114.8 59.02 100.3 102.7 4,«61 109.0 59.02 100.3 .1511 103.0 1892 4,812 107.9 .59.02 100.3 .1519 103.5 1893 4,516 101.3 58.80 100.0 .1493 101.8 1894 4,128 92.6 58.76 99.9 .1419 96.7 1895... 3,796 85.1 58.88 100.1 .1440 98.2 1896 4,018 90.1 58.92 lOO.l .1415 96.5 1897 4,000 89.7 58.80 99.9 .1445 98.5 1898 4,524 101.4 58.44 99.3 .1466 99.9 1899 4,b22 108.1 58.71 99.8 .1457 99.3 1900 5,275 118.3 58.27 99.0 .1461 99.6 1901 4,618 104.2 .57.98 98.5 .1585 108.0 1902 5,317 119.2 .56.66 96.3 .1614 112.0 1903. 5,082 113.9 .56.13 95 ..8 .1676 114.2 1901 5, 012 96.8 55.38 95.8 .1781 114.3 1905 7,017 109.1 .54.77 95.8 .1867 114.4 1906 7,187 130.1 54.85 95.4 .1956 122.5 1907 7,366 137.8 54.56 94.9 .2037 127.2 Machinists. [Data from 218 establishments 1890-1903; 228, 1904; 1905; 205, 1906; 209, 1907.] Average 1890-99. 5,414 100.0 59.12 100.0 $0.2404 100.0 1890 5,302 97.9 59.52 10O.7 .2413 ,2435 100.5 1891-. 5,414 100.0 59.47 100.6 101.2 1892 5,409 5,677 99.9 104.9 59.24 59.03 100.2 99.8 .2459 .2450 102.3 18;)3. 101.9 1894. 4,339 80.1 59.07 99.9 .2347 97.5 1895 4,917 90.8 59.08 99.9 .2347 97.5 1S96-. 5,176 95.6 59.01 99.8 .2397 99.6 1897 5,050 93.4 58.96 99.7 .2397 99.7 1S98. 6,058 111.9 £9.11 100.0 .2377 99.0 1899 ... 6,793 125.5 58.72 99.3 .2417 100.8 1900- 7,088 130.9 58.56 99.1 .2485 103 .6 1901... 7,646 141.2 57.37 97.0 .2555 106.8 1002. 8,221 151.8 56.56 95.7 .2646 110.3 15X)3.. 8,. 576 158.5 56.12 9i.9 .2709 112.9 1904 .... 7,769 135.7 55.57 94.0 .2726 112.8 1905 7,i30 151.0 56.12 94.5 .2795 113.1 1906 7,8<9 16:);0 .55.98 94.4 .2922 116.4 1907 ^. 8,268 179.4 55.40 93.7 .3051 120.4 A hijsrher Htandard for our Judiciary: fewer laws ami better enforeiiiont of tliem; a wider public appreciation of tbe essentials of democracy and of tbe principles upon wblcli this ftovernment was founded, will belp us to the solution of the problems before us, and as the very basis and founda- tion of our national life, we must conserve those forces wiiich insure the etilciency of our schools and safe-gruard the puritv of our homes.— Hon. Georare B. Cortelyou, at U»- bana, Illinois, June 7, 1906. 212 E}fPLOYMENT, JJOVRS OF LABOR AND WAGES. Painters. [Data from 203 estobJJshinents 189(>-190C^; 208, l»Ol; 206, 1905; 210, 1906; 211, 1907.] Tear. Average 1890-99 ISJO 1S91.. l»ii... i»M 1804. 1895 1«96. 1897— 1898 1899 1900 1901- 1902 1903 1904 190S- 1906- 1907 Number of employees. Actual. Belative. 8,e7« i.m 8,708 «,S77 S,66i S,4«0 S,t4S X,7»7 8,7M t.WS 4,060 4,251 4,2U 4,021 4,1»4 4,S04 4, §02 4,497 100.0 90.3 100.9 105.5 99.7 »8.9 »4.1 99.2 101.7 101.8 107.5 111.2 116.5 US. 7 109.4 109.9 111,5 1W.2 114.4 Arerage hours per week. Actual. Itelative. 100.0 102. C 101.9 101.1 loe.i 100.4 100.1 99,8 99.0 98.1 97.1 94.6 92.6 91.5 90.8 90.4 90.» 89.7 ATfrage wages per hour. Actual. Relatlre. ^.2763 .2SftO .2712 .2747 ,2795 .2737 .2720 .2742 .2778 .2827 .2892 ,8054 .8170 ,3308 .8450 ,8548 .8642 .8842 .8967 100.0 97.0 9S.2 99.4 101.2 99.1 98.4 »»).2 100.5 102.3 164.7 110.5 114.7 119.5 124.9 127.9 129.5 136.8 142.0 Plasterers. [Data from 146 establishments 1890-1903; 15«, 1904; 164, 1905; 166, 1906; 166, 1907.) Average 1890-90 1,681 100.0 81.83 100.0 ^.3969 100.0 1890— 1,084 100.2 63.50 103.2 .86-18 98.4 1»»1— 1,782- 106.0 92.67 lQik.6 .3966 99.2 1892-. 1,857 110.5 52.09 100.5 .4100 102.6 1893_ 1,721 102.4 51.97 100.8 .4019 100.8 1894— 1,547 V2.0 52.01 100.3 .8915 97.9 1895 1.547 92.0 W.e3 99.6 .1924 98.1 W96-. 1,64B 97.7 SI. SO 99.4 .8985 99.7 1897— 1,587 'J4.4 81.96 100.3 .8903 97.6 1898- 1,680 97.0 SI. 11 98.6 .8974 99.4 1899. 1,817 108.1 49.82 96.1 .4254 106.4 1900— 1,875 111.5 48.75 94.1 .4378 109.5 1901... 1,769 105.2 48.27 93.1 .4570 114.8 1902.. 2,061 120.8 47.29 91.2 .4516 123.7 1903... 1,895 112.7 47.04 90.8 .5268 131.8 1901 1.793 110.5 46.64 90.5 .5398 133.8 1905 2.069 123.8 46.56 90.1 .5608 139.6 1906... 2.286 138.1 46.56 90.0 .5977 148.7 If07 2,414 141.1 46.30 89.6 .6177 163.3 Plumpers. [Data from 221 establishments 189(^-1902; 2.32, 1904; 207, 1905; 215. 1906; 219, 1907.] 1,880 100.0 53.23 100.0 Average 1890-99 $0.8550 100.0 liOO 1,36* 99.1 SI. 38 102.1 .8464 97.4 1891 1,3*4 100.8 S4.09 101.6 !8511 98.1 1892. 1.427 108.4 S3.i6 101.2 98.7 vm. i.r7 f9.* S3.Si 100.2 .3552 99.9 1894. 1,908 94.4 53.28 leo.i .8515 98.8 1895.. 1,301 M.8 63.08 99.7 .8516 99.7 1896. 1,865 n8.9 52.86 99.8 .3505 100.4 1897 1,387 rfO.l 52.67 98.9 .3598 101.2 1898- 1,448 104.6 52.53 98.7 .8638 102.8 1890 1,466 106.2 52. 2S 98.2 .3684 108.6 1900. 1,523 110,4 81.40 96.6 .8811 107.1 1901 1,633 118.3 50.77 96.4 .3935 110.6 1902^ 1,627 117.9 49.52 93.0 .4122 117.6 1903 1.595 115.7 48.97 91.9 .4371 124. S 1901 1,771 117.2 47.98 91.3 .4679 128.3 1905 1.818 124.5 47.32 91.1 .4912 181.2 1906 2,216 139.8 46.84 90.2 .5392 141.9 1907 a.265 ,136.7 46.51 90.0 .5582 148.1 No man Is -w^arranted la feelinar pride li^ tbe deeds of the Army and Navy of the past if he does not back up the Army and the Navy of the present.—Presldent Roosevelt at Sher- man statue nnvellingr, Oct. 15, 1903. Protection has already made us th« richest and stronsewt nation on earth, and under a properly restricted Immiirra- tion -will bringr to us much tliat is most valuable in the pop- ulation of other lauds.— Senator Hoar« in the American Econ- omist. EMPLOYMENT, HOURS OF LABOR AND WAOES. 213 Stone cutters, granite. [Data from 72 establishments 1890-1903; 83, 1901; 87, 1905; 89, 1906; 99, 1907.] Tear. Number of employees. Average hours per we«k. Average wagw p«r hour. Actual. ^RolatlTe. Actual. R«la«T«. A«tu«l. lUlatlTS. Average 1830-99 1890 1891 1892 1S93 1894 1S95 1806 1897 1898 _ 1809 1900 ._. 1901 1902- 1903 1904 - 1905 1506. 1907... 775 9.i6 8i0 S82 nn 705 68) 70J 678 6JS 71^ 901 852 S53 900 925 919 l,Vli 1J53 100.0 121.0 113.5 113.8 100.4 91.0 88.4 »1.5 87.5 i^O.l ww.o 116.3 109.9 110.5 IKJ.l 109.3 95.3 107.1 107.5 52.71 52. 7S 52. W 52.70 5i.Vi 52.84 52.67 52.77 52.99 58.04 SI. 70 50. «0 49,96 49.67 48.67 48.71 48.65 47.52 47.07 loo.d 100.0 9"J.7 100.0 100.8 100.2 99. W 100.1 100.5 100.6 9b. 1 96. S 94.8 94.2 92.3 92.2 92.6 91.3 91.1 $o.sa28 .iJio .S^3 .2618 .3J11 .■i5J0 .^524 .3167 .'iVii .ma .S363 .»3.58 .42i.5 .4191 .4052 .43JJ .4438 100.0 102.8 104. S 103.4 99.7 99.0 9 J. 5 99.0 97.1 95.6 9J.1 108.1 lOb.o 108.5 116.5 119.1 116.7 121.7 126.5 Stone masons. [Data from 115 establishments 1890-1903; 110, 1901; 102, 1905; 100, 1906; 1907.] Average 1890-93 1890. 1831. 1892. 1893. 1894. 1895. 1836. 1897. 1898. 1899. 1900. 1901. 1902. 1903. 1904. 1905. 1906. 1907. 917 1,021 984 89S 799 798 828 796 9S2 S«0 »35 9'27 954 1,073 965 868 819 735 100.0 106.9 115.2 111.1 ■"01.4 90.2 'JQ.I 93.5 ^9.8 105.2 ^7.1 105.8 l»4.0 107.7 121.1 117.7 116.8 114.3 100.9 54.54 54.51 .54.49 »4.17 5>t.84 »4.0I W.97 58. oe as. 48 5J.78 61.80 51.28 90.19 40.54 49.87 <7.'97 47.81 47.57 100.0 101. 8 101.3 101.2 10O.8 100.9 100.4 lOO.S •8.6 9T.4 98.0 88.4 95.2 88.1 92.0 01.4 91.3 91.2 90.6 $0.8617 .8722 .8732 .8678 .8c44 .8440 .iM .8547 .8388 .8^1 .8719 .8788 .4fl07 .4S04 .44S6 .4«SS .4i)51 .51S8 .5256 100.0 102.9 103.2 101.5 100.7 95.1 96.4 98.1 100.8 99.0 102.8 104.7 110.8 119.0 126.6 120.4 129.5 185.2 139.7 Structural iron workers. [Data for employees from 19 establishments 1890-1903. Data for hours and wages from 19 establishments 1830-ls;>2; 20. 169.3-1903. Data from 87 estab- lishments 1904; 50, 1905; f-2, 1906; 62, 1907.] Average 1890 99 561 lOO.O 65.14 100.0 t3,884« 180.0 1890 436 77.7 56.78 102.9 .2475 »8.6 1891 561 96.8 88.18 101.8 .2591 98.0 1S92- 302 107.8 W.77 »t.8 .2358 100.6 IS'JS.. SM 98.8 85.18 100.1 .2638 100.9 1S94 418 74.2 56.20 101.9 .2470 98.5 J895 446 79.5 85.28 100.1 .2581 97.7 1896. 648 115.5 54.32 98.5 .2576 07.5 1897 628 111.9 58.47 97.0 .^751 104.1 1898 685 122.1 58.90 »7.8 .8784 106.3 1893 616 115.5 55.44 109.5 .2878 m.i 1900 798 142.2 54.03 98.0 .8183 1901 1,037 195.5 .53.30 96.7 .8659 iae.4 1902_ _. 1,280 228.2 50.. 52 91.6 ,4121 156,9 1903 1,15? 206.6 50.8.5 92.2 .4115 159.8 1901 l,79t 205 5 50.38 90.6 .4289 171.4 1905 1,731 194.3 49.61 90,1 .4402 171.8 1906 2,105 281.8 49.67 90.9 .4730 180.4 1907- 1,914 216.5 49.35 91,3 .4767 190.3 The following- tables show the percentage of increase or decrease in the relative number of employees, the i-elative hours of work per week, and the relative wages per hour in the 15 lead- ing occupations in 1907, compared with each preceding year from 1890 to 1906: 114 BMPL07MENT, HOURS OF LABOR AND WAGES. I I 1++ I + + + I + 1 + 1 I a — So r-iaoiAi-ioiMiaeoao«Oaococ +++++++++++++ gV ^- ;5 ^ «• gj ej gj ^V- S <>i ;5 .o + + + + + + + + + + + + I I + eo M O »--' g »fti-i05e. N M oi «fl tr 03 r? ?i t^ iH gj ifi cr-iio-oi«ooo«o-<>'e»» ++++++++++++ I I + 5D(N00Ml^00'»lA©«'>*<»Ot--*O»'* +++++++++++++++ oo>n'^«5ooo500>M05»ot^eoiH C<5 i-H r-I O 5o' .-H ci \r © (N 10 Q oj ■>*" +++++++++++++ I >oo®»^i-(e< ! r-^ in © (N 03 CO eo 55 im' 0> t-' ( - + + + + + + + + + + + ■ ©fHOcceoiftosoir^eowo^r-too-* 'S'-'ss +++++++++++++++ '©l^r-llMtD«e'^©! +++++++++++++++ • oj com + + + + Oi CO w 00 ^^ 00 -* 00 t c-iiooo-^r-ioqio^i ++++++++■ 1 CO 1-H in t - + + + r-JlOr • 05 eo © © r^ 00 © ' «f«*<'^t-iwco-*ift + + + > 50 iniM © ■ + + + iniM < I I + + + + ;oin©©(Moooooi I +++++++ 1-t lOC I I- ^-2 . S t« M 5g- ti S3 83 mi: ! ;£22 X: V tK tn o S w p S >.^» tc £.2 « « >^' = P ^ ^S«co«pgSS3fcS'''^5 EMPLOYMENT, HOURS OF LABOR AND WAGES. 816 eoi«r-i05-»n« I 1 1 I + 1 1 I I 1 I I I I + ee<9NO->«<*»0>00 (Nddi-^'dddddrHi-JiHiHod + 1 1 1 1 I I 1 1 1 1 1 I 1 + C«5lfi© + 1 1 ■*t-M©«eOt>e OS t» « c I I I M I I I I I I I I I 1 1 © 05 (M_ O) 00 rH ■<>< to 00 00 "♦ ifi ■*' CO ^* "*' »« »0 -** d 1 1 1 1 1 1 1 1 1 1 05 ©00 •*>od 1 1 1 © ifl 05 1- »n 05 05 05 50 o 00 (^^ iH «o *i (N ■* eo 00 ■** M -*' ■*' ui GO CO 00 r-^ t>^ o» M i I M I I I I I ■^^se^t^ceccQ-^ecoi-ioo-^iji-t?© co-'j'ddcotom'^'oosOjoDrotoco I I I I I M I M I I I M ©!0-«f.c0;0t>»fli0^050©©l:-k0 I I I I M I 1 I iT 1 I I I a»'4'r-l00O5©rH(M.t>ur5ioi©©oo500osoo I I i7 I I I 1 m7i I I I lO ©5 © t^ N © © © IM i-l t^ r-J i-H (M -i< iHioodrHt-^od-^iodr-Jdo©©© I I iTi I'l I i7T7 m7 r-4 T-< M t> 00 -"f © i-l(N 00 l~-. - © r-J © lO i-H c4lO©rHtOl^lfilOCD-H©r-lOO©00 I 1 iT I I I I m7T m I ■* ■* •* IM © © t~ •* © -* 00 "*_ «D O C5 Crt int-co TT 1 1 M 1 1 1 7 coo iT T a: a! g c §£ C3 03 §2 216 EMPLOYMENT, HOURS OF LABOR AND WA0E8, ^ •i'<>iHt>Ie>»i-Ie«c<9eoece»»iA CO* '<«• •>' a> »)' 00 r^ e> +++++++++++++++ it» t^ o> • iweot^O'O'^'Wr-iO t-00©«Ot^O5<»i-l«O'-l-*'»O«Ot^i-< J:±±±+ + +++ +++ +++ kO »i »«' « «>* o lA 1-4 tc CO « oj 00 o A + 4- ->- + + 4 - -}- + + + + + +++ »««o-<a«(Nr-i~oo^#9i^i-iifii +++++++++++++++ s ^" ^' ';? s ^ ?;■ §5 s «■ 5 2? !?5 ^ ?: + + + + + + + -I- + + + + + 4- + '#<«>«coowi-icqe*«»o*4oo(»t-tt~ +++++++++++++++■ i^i-u^as«M©i-iaoM.-He»OMrHoo +++++++++++++++ r~o«n»^ift»us>ftfc»o«orHO»oo +++++++++++++++ I w •» ♦) t^ ■*• ^- ' I W «(| 00 06 »rt 4- + + + + 4- + + + 4- + lOOI-^fciOt^^-fTHCCtOiM =s; !90r-llOO«Om©l^e ■** ■«< rH © -«* -^ 1 ■* (M M 1-1 -«i iC lO (M ■M OS ■«'MO5i-lO5l-IN©00' were paid in 1907 ; for every dollar paid to a stone cutter in 1896, $1.28 were jmid in 1907 ; for every dollar paid to a stone mason in 1896, $1.42 were paid in 190*7 ; for every dollar paid to a structural iron worker in 1896, $1.95 were paid in 1907. The 15 occupations for which figures have been shown in detail are among the great representative occupations that are to be found in every section of the country. There are also many occupations that are very important in certain particular sections of the country. Figures for such additional occui)ationa are given in detail in the bulletin of the Bureau of Labor from which the figures here quoted are taken, but the limited space in this book will not permit a reprint of all occupations. In the bulletin named the figures for the several occupations of each of the industries represented are also combined to form a summary tdt each industry, thus giving an opportunity to study the figures for each industry as a whole. "What the eapitallHt, -^vlio is the employer of lalior. mast face is tliat tlie organixation of labor— tbe labor nnioii — is a permaueiit condition in tbe industrial world. It lias come to stay — Hon. Wm, H. Taft, at Cooper Union, JVew York City. Under exlstiniir conditions the blindest coarse tlia* an employer of labor can pursae is to decline to recojAuize labor anions as tbe controlling inflnence in tbe labor market and to insist n^xon dealing only with bis oarticalar em- ployees.— Hon. Wm. H. Taft, at Cooper Unioii. New York City. We believe in reciprocity with foreign nationM on tbe terms oatlined in President McKinley's last speech, wliicb ariced the extension of oar foreigrn markets by reciprocal agrreements whenever they coald be made -ivilbout injnry to American in o r decrease (— ) in 1)07 as compared with year specilicd. Relative. Per cent 6i increase (+) or doerease (-) in 11)07 as poniparel with year specilied. 76.0 85.2 100 -. 109.9 95.2 107.4 107.7 119.9 93.9 103.1 116.0 118.8 118.1 123.5 116.6 116.6 +53.4 +38.9 +29.1 + 16.0 + 12.7 + 6.1 +22.5 + 8.6 + 8.3 — 2.8 +24.2 + 9.9 + 0.5 — 1.9 — 1.3 — 5.6 100.1 99.6 99.2 99.7 99.9 99.8 100.4 109.0 100.3 101.0 99. S 100.6 100.9 .01.4 100.4 lOJ.l 99.7 -0.6 — 0.1 + 0.3 — 0.2 — 0.1 — 0.3 — 0.9 — 0.5 — 0.8 — 1..') — 0.3 — 1.1 — 1.4 — 1.9 — 0.9 — 0.6 — 0.2 100.3 100.6 99.6 100.0 9».0 97.2 !)8.6 102.4 101.1 101.3 10.). 8 112.5 110.0 116.9 119.0 120.9 131.1 132.4 +32.0 +31.6 + 32.9 '+o2.4 + 33.7 +36.2 +34.3 +29.3 +31.0 +30.7 +31.3 + 17.7 +20.4 +13.3 +11.3 + 9.5 + 1.0 99.5 Cotton goods. 1890.. 87.7 +39.5 99.9 — 3.1 102.8 +53.2 1891._ 98.3 +21.4 100.7 — 3.9 98. 9 +59.3 1892-1 95.8 +27.7 101.2 — 4.3 J00.3 +57.0 1893.. 98.2 +21.5 P9.9 — 3.1 103.6 +52.0 1894.. 96.1 +27.3 98.6 — 1.8 96.9 +62.5 1895- 91.9 +28.9 100.0 — 3.2 96.9 + 62.5 1896.. 98.8 +23.8 99.5 2 7 104.9 +50.1 1897- . 101.6 +16.9 99.4 — 2.6 101.2 +55.6 1898- 112.5 + 8.7 100.3 — 3.5 97.4 +61.7 1899.- 112.1 + 9.1 100.4 — 3.6 9V.3 +61.9 1900- 115.5 + 5.9 100.2 — 3.4 10). 2 +44.2 1901— 109.0 +12.2 100.0 — 3.2 110.4 +42.7 1902- 117.2 + 4.4 99.2 — 2.4 116.2 +35.5 1903-. 107.2 +14.1 99.0 — 2.2 123.2 +27.8 1P04- 105.3 + 16.1 99.1 — 2.3 11). 7 +31.6 1905- 101.9 +16.6 99.1 •- 2.3 125.5 +25.5 1903— 117.5 + 4.1 98.3 — 1.5 13). 5 +12.9 li/07— 122.3 90.8 1.57.5 Iron and steel (bar.) 1890- 99.4 — 0.9 102.7 — 4.7 110.3 +27.3 1891- 98.4 + 0.1 101.6 — 3.6 -101.9 +33.8 +40.4 +46.7 1893- 105.9 - 7.0 101.4 — 3.5 95.7 1891- 100.2 — 1.7 101.3 — 3.4 90.1 +55.8 1895— 103.7 — 5.0 100.7 — 2.8 91.7 +53.1 1896- 93.9 + 4.9 101.0 y — 8.1 4).^.3 +41.4 1817.. 97.7 + 0.8 97.1 + 0.8 98.0 + 43.3 1898— e ])rice iji 1902 is seciv the relative price for tlie last-named year being 112.2, or 12.2 per cent higher than llic price foi- ilic I'asc follows : iod. The table Relative retail prices of the principal articles of food in the United i> J3 JS a OS il o, > < c 1 1^ DD 1 it 1 D O '.> . to 1890 101.0 103.3 9a.5 98.8 97.5 100.3 99.2 98.8 101.3 105.4 1891 110.3 106.2 100.0 99.1 98.3 100.3 106.4 100.3 101. 105.2 1892 99.3 102.4 99.6 9). 3 99.5 100.3 106.8 101.5 103.8 103. S 1S98 .- 107.0 105.0 99.0 99.6 100.3 100.1 io:k9 101.8 104.2. 101.8 189t 10ft. 8 102.8 98.3 98.2 98.9 99.9 101.7 101.6 98.6 103.3 18)5 97.4 103.5 98.6 99.1 99.6 99.7 97.0 90.2 98.4 101.7 180(5 88.6 02.7 m.i 9-). 5 99.8 90.9 92.7 97.9 97.1 99.6 1897 87.8 91.5 100.3 100.2 100.9 100.0 93.1 99.0 94.0 94.6 iS^iS 95.4 95.-) 101.7 102.0 102.1 99.8 95.1 97.5 96.8 91.1 ]^"f) 9'). 5 90,7 Wi.7 103.9 103.2 90.6 97.7 102.4 101.8 90.5 1!)00 95.2 110.0 103.5 103.4 103.7 99.7 101. t 103.0 100.8 ■ 91.1 1 n 96.8 113.9 110.7 111.0 106,1 99.4 103.2 1(«.3 103.0 90.7 1912 lot. 4 116.8 118.6 118.5 116.0 99.4 111.5 107.3 113.2 '^.'3 ! ".>! _ 100.8 118.1 113.1 112.9 108.8 100.2 110.8 100.4 118.5 1 '•)• 99.2 llf5.8 112.8 113.4 108.3 103.9 100.0 107.4 120.7 91.8 l')')". 106.0 116.3 112.2 112.9 107.9 lot. 5 112.7 110.9 123.6 93.6 ViO'y 11.-). 6 115.2 115.7 116.5 UO.S 102.3 118.2 115.5 129.1 94.7 \M7 124.6 118.8 119.1 120.6 U4.1 104.5 127.6 123.2 131.4 95.0 da')[ io ■ CS c t-l s > 1890 100.0 100.6 ; 1^01 100.7 106.0 1 18)2 105.^2 106.8 Ks)3 103.1 105.1 ; 1894 102.2 06.3 1 i-05 100.8 99.3 1 1S)6 95.0 92.8 ISI7 93.7 91.4 is'os 95.0 93.2 ! ls'»9 95.1 101.1 I>00 97.4 !X).9 1001 -. 107.1 105.7 1 1002 118.8 119.1 I'OS.. 120.7 125.3 loot - 121;5 130.9 ' w 122.2 131.6 ]m 123.2 131.2 I 1907..„-1-'- t'Jt'.fi •137.7 1 9 J. 3 ')0.6 100.1 100.1 100. t 99.8 100.2 99.8 103.5 100.2 100.4 101.4 105.0 107.3 107.9 too. 9 116.2 120.6 100.7 101.7 102.2 103.4 101.5 98.9 07.5 95.2 OS. 8 10,0.2 90.1 100.9 102.8 108.4 111.7 113.8 116.8 121.6 4J .=! •S 5 t; g,, '3< • r^r// ■ ''i,i i&y.7 li8.2 112.5 99.8 105.1 103.6 96.1 117.9 88.7 106.9 80.0 100.1 02.7 92.5 104.3 89.8 107.4 93.9 94.6 97.1 94.3 lot. 4 91.4 118.1 94.9 134.3 101.2 126.7 110.9 117.3 1 110.5) 116.6 108.1 128.0 1'17.7 ' 184.2 EB J) 100.5 100,5 100.6 100.4 100.2 100.0 90.9 99.7 9:). 4 98.9 90.9 101.1 103.3 105.8 106.3 107.0 108.9 116.8 101.7 101.7 101.2 100.6 100.3 99.0 98.7 97.7 97.9 98.2 102.2 j 101.3 ' 102.1 I 103.8 ! lOt.O ! lot. 4 105.3 107.7 100.7 100.6 101.0 99.9 97.8 98.7 98.7 93.6 100.4 102.6 105.6 109.0 114.7 112.6 114.1 117.8 124.1 130.1 97.0 98.7 100.5 107 .0 101.8 99.7 97.4 97.6 96.6 101.7 107.7 117.9 128.3 127.0 124.0 126.6 137.7 142.5 'I'll in i» iiol iin«l never nIihII lie a. «overiiiii<'iit of i»lu- toeraey: it Im u«it hjuI never mIihII be a Roveriinn'nt by a niub. — PreMldent Uoo«evelt at Bntte, Mont.. May 27, 1J»o:j. Our worksboiiH never -tvere so liiisy, our trade at home waH never .mo larK'e, and our f Retail prices of food weighted ao- cording to family con^ sumption. Purchasing power of hourly wages measured by retail prices of food. 1^90 -- 100.3 100.3 100. S 100.9 97.9 98.3 m.7 99.6 100.2 102.0 105.5 108.0 112.2 116.3 117.0 118.9 124.2 1-28.8 102.4 103.8 101.9 104.4 99.7 97.8 95.5 96.3 98.7 99.5 101.1 105.2 110.9 110.3 111.7 112.4 115.7 1-20.6 97.9 1891 96.6 1892 98.9 1893 96.6 1894 98.2 1895 100.5 1898 ... 104.4 1897 103.4 1898 -- 101.5 1899 1900 .- 102.5 104.4 1)01 102.7 1902 130? . - -.- 101.2 105.4 1901 1905 1906 104.7 105.8 107.3 1907 - — — - 103.8 'ilie method of using the relative figures has ali-ead\ been explained. The important facts disclosed by tjjis table Jire thtit wages per hour and i-etail prices of food weighted according to family consumption were both higher in 1907 than in any other year of the eighteen-year period and that the increase in wages, 224 WAQE8 AND COST OF LIVING. as compared with the averag-e for 1890 to 1899, was 8.2 per cent greater than the increase in prices of food. As compared with 1896, the year of lowest prices, the increase of wages was from 99.7 to 128.8, or 29.2 per cent, while the increase in food prices was from 99.5 to 120.6, or 26.3 per cent. Again, the purchasing power of an hour's wages measured by retail prices of food was 104.4 in 1896 and 106.8 in 1907, a difference of 2.4, or 2.3 per cent, in favor of the latter year. The changes in the cost of living, as shown by tlie bulletin of the Bureau of Labor, relate to food alone, representing 42.54 per cent of all family expenditures in the 2,567 families furnish- ing information. With respect to the remaining articles of expenditure in the average workingman's family, a preceding number of the bulletin states that they are, from their nature, affected only indirectly and in very slight degree by any rise or fall in prices. Such are payments on account of princifial and interest of mortgage, taxes, property and life insurance, labor and other organization fees, religion, charity, books and news- papers, amusements and vacations, intoxicating liquors, and sick- ness and death. These together constituted 14.51 per cent of the family expenditure in 1901 of the 2,567 families investigated. Miscellaneous purposes, not reported, for which, from their very character, no prices are obtainable, made up 5.87 per cent, and rent, for which also no prices for the several years are avail- able, made up 12.95 per cent. The remaining classes of family expenditure, 24.13 per cent of all, consist of clothing 14.04 per cent, fuel and lighting 5.25 per cent, furniture and utensils 3.42 per cent, and tobacco 1.42 j)er cent. For these no retail prices covering a series of years are available, but it is probable that the advance of the retail prices was considerably less than the advance in wholesale prices, as the advance in wholesale prices of articles of food in 1907, as compared with 1896, was 40.6 per cent, while the advance in the retail prices of similar articles or groups of articles, as shown by the results of this investiga- tion, was but 26 per cent. An examination of the relative whole- sale prices of these classes of articles in Bulletin No. 75, giving them their proper weight according to family consumption, leads to the conclusion that the retail prices of these articles as a whole in 1907 >could have been but little, if at all, above the level indicated for food. If all classes of family expenditures as above be taken into consideration, it is apparently a safe and conservative conclu- sion that tjhe increase in the cost of living as a whole, in 1907, when compared with the. year of lowest prices, was less than 26 per cent, the figui'es given above as the increase in the cost of food as shown by this investigation. It is shown on the succeeding pages that the increase in wages in 1907 over the year of lowest wages, as shown by the same bulletin of the Bureau of Labor, WAS GREATER THAN THE INCREASE IN COST OF (LIVING, BEING 31.6 PER CENT. "Wasem Have Advanced More Tlian Prices. A comparison of the table showing prices with that on another page, entitled "Per cent of increase or decrease in the relative wages per hour in 15 leading occupations in 1907, compared with each preceding year," discloses the following interesting facts : Bricklayers' wages advanced 42.3 per cent from 1896 to 1907 ; carpenters' wages, 52.5 per cent ; hod-carriers wages, 35.5 per cent; iron moulders wages, 28.0 per cent; building la- borers' wages, 31.8 per cent; stone masons' wages 42.4 per cent; painters' wages, 43.1 per cent; plasterers' wages, 53.8 per cent ; plumbers' wages, 47.5 per cent ; stone cutters' wages, 27.8 per cent; structural iron workers' wages, 95.2 per cent, etc., while during the same period the retail prices of fresh beef roasts increased 20.2 per cent; beef steaks, 21.2 per cent; salt beef, 14.3 per cent; bread, 4.6 per cent; butter, 37.6 per cent; cheese, 25.8 per cent; coffee decreased 4.6 per cent; fresh fish increased 20.4 per cent; salt fish, 24.7 per cent; wheat flour, 27.0 per cent; fresh milk, 16.9 per cent; molasses, 9.1 per cent; rice, 12.2 per cent; sugar, 3.1 per cent, and tea, 6.6 per cent. All food of ordinary consumption has increased an WAGES AND COST OF LIVING. ' 225 average of 26 per cent; pork products, which are included in this general average, advanced from 33.9 to 62.7 per cent, owing to the high price of hogs, the wholesale price of which advanced 77.8 per cent during the same period, as is shown in the chapter on the exchange value of farai [Ji-oducts. By measuring the purchasing power of an hour's wages of these various articles of food in 1896 and in 1907, a very in- teresting result is obtained. In the case of a bricklayer, it shows that for an hour's wages in 1907, as compared with an hour's wages in 1896, he could buy 18.5 per cent more beef roasts ; 17.5 per cent more beef steak ; 24.6 per cent more salt beef ; 36.3 per cent more wheat bread ; 3.5 per cent more butter ; 13.2 per cent more cheese; 49.4 per cent more coffee; 18.3 per cent more fresh fish; 14.3 per cent more salt fish; 7,4 jjer cent more wheat flour; 30.9 per cent more fresh milk; 30.6 per cent more molasses; '27 j)er cent more rice ; 38.4 per cent more sugar, and 33.7 per cent more tea. A carpenter could buy for an hoiir's wages in 1907, as com- pared with 1896, 26.9 per cent more beef roasts ; 25.8 per cent more beef steak ; 33.4 per cent more salt beef ; 45.8 per cent more wheat bi'ead ; 10.8 per cent more butter; 21.2 per cent more cheese ; 59.9 per cent more coffee ; 26.7 per cent more fresh fish; 21.3 per cent more salt fish; "JO.l per cent more wheat flour ; 30.5 per cent more fresh milk ; 39.1 per cent more mo- lasses ; 35.9 per cent more rice; 47.9 per cent more sugar, and 43.1 per cent more tea. A day laborer could buy for an hour's wages in 1907, as compared with 1896, 9.7 per cent more beef roasts ; 8.7 per cent more beef steak; 15.3 per cent more salt beef; 26 per cent more wheat bread ; 4.7 per cent more cheese ; 38.6 per cent more coffee ; 9.5 per cent more fresh fish ; 5.7 per cent more salt fish ; 3.7 per cent more wheat flour ; 12.7 per cent more fresh milk ; 20.9 per cent more molasses ; 17.5 per cent more rice ; 27.9 per cent more sugar, and 23.7 per cent more tea. A painter could buy for an hour's wages in 1907, as com- pared with 1896, 19.1 per cent more beef roasts; 18.1 per cent more beef steak ; 24.6 per cent more salt beef ; 36.8 per cent more wheat bread ; 4 per cent more butter ; 13.7 per cent more cheese ; 49.9 per cent more coffee ; 18.9 per cent more fresh fish ; 14.6 per cent more salt fish ; 12.7 per cent more wheat flour; 22.4 per cent more fresh milk; 31.2 per cent more mo- lasses ; 27.6 per cent more rice ; 38.9 per cent more sugar, and 34.3 per cent more tea. An iron moulder could buy for an hour's wages in 1907, as compared with 1896, 6.5 per cent more beef roasts; 5.6 per cent more beef steak ; 12 per cent more salt beef ; 2.2 per cent more wheat bread ; 1.7 per cent more cheese ; 34.2 per cent more coffee ; 6.4 per cent more fresh fish ; 2.7 per cent more salt fish ; 0.8 per cent more wheat flour ; 9.5 per cent more fresh milk ; 17.3 per cent more molasses ; 14.1 per cent more rice ; 24.3 per cent more sugar, and 20.4 per cent more tea. A plumber could buy for an hour's wages in 1907, as com- pared with 1896, 24.8 per cent more beef roasts ; 23.7 per cent more beef steak; 31.1 per cent more salt beef; 43.3 per cent more wheat bread; 9 per cent more butter; 19.2 per cent more cheese ; 57.3 per cent more coffee ; 24.7 per cent more fresh fish ; 20.3 per cent more salt fish; 18.2 per cent more wheat flour; 28.2 per cent more fresh milk; 37.5 per cent more molasses; 32.9 per cent more rice ; 45.4 per cent more sugar, and 40.8 per cent more tea. A stone cutter could buy for an hour's wages in 1907, as com- pared with 1896, 6.3 per cent more beef roasts; 5.4 per cent more beef steak; 11.8 per cent more salt beef; 22.1 per cent more wheat bread; 1.5 per cent more cheese; 34 per cent more coffee ; 6.2 . per cent more fresh fish ; 2.4 per cent more salt fish; 0.6 per cent more wheat flour; 9.3 per cent more fresh milk; 17.1 per cent more molasses; 13.9 per cent more ric»; 23.9 per cent more sugar, and 19.9 per cent more tea. . A stone mason could buy for an hour's wages in 1907, as compared with 1896, 18.6 per cent more beef roasts ; 17.5 per 226 WAGES AND COST OF LIVJNG, cent more beef steak ; 24.6 per cent more salt beef ; 36 per ' cent more wheat bread; 3.5 per cent more butter; 13.2 per cent ■ more cheese ; 49.3 per cent more cofl'ee ; 18.3 per cent more ] fresh fish; 14.2 per cent more salt fish; 11.9 per cent more wheat j flour; 21.8 per cent more fresh milk; 30.5 per cent more mo- 1 lasses ; 26.9 per cent more rice ; 38.1 per cent more sugar, and ■ 33.6 per cent more tea. ] A structural iron worker coidd buy for an hour's wag-es in 1 1907 , as compared with 1896, 62.4 per cent more beef roasts ;1 61 per cent more beef steak; 70.7 jjer cent more salt beef;j 86.6 per cent more wheat bread; 41.8 per cent more butter;; 55.6 per cent more cheese ; 104.6 per cent more coffee ; 62,2 per ; cent more fresh fish ; 56.5 per cent more salt fish ; 53.7 per ! cent more wheat flour; 66.9 per cent more fresh milk; 80.7! per cent more molasses ; 74 per cent more rice ; 89.3 per cent ' more sugar, and 82.3 per cent more tea. < Similar comparisons could be made with many more occu- pations, but it is believed that the above, which all relate to ] leading and well-defined occupations, are sufficient to prove the i fallacy of the assertion that wages have not kept up with i prices since the great industrial depression during the last Demo- j cratic administration. / ^. As a summary of results of the investigations relative io] wages and cost of living, the two following tables are given ] in the Bulletin of the Bureau of Labor. The first shows relative ■ figures, while the second shows the increase or decrease in the ^ year 1907 as compared with each preceding year of the period] considered. ^ i Relative employees, hours per week, wages per hour, full-timm weekly earnings per employee, retail prices of food, and pur-] chasing power of, hourly wages and of full-time weekly earn-] ings per employee, measured 'by retail prices of food, 1890 ^ to 1907. - I [Relative numbers computed on basis of average for 1890-1899=100.0.] Employ- ees. • Hours per week. Wages per hour. Pull-time weekly earnings per em- ployee. Retail prices of food, weighted accord- ing to family consump- tion. Purchasing power, measured by retail prices of food, of- Year Hourly wages. Pull-time weekly , earnings . per em- i ployee. 1890 94.8 97.3 99.2 99.4 94.1 . 96.4 98.6 • 100.9 106.4 112.1 115.6 119.1 128.6 126.5 125.7 133.6 142.9 144.4 100.7 100.5 100,5 100.3 99.8 100.1 99.8 99.6 99.7 99.2 98.7 98.1 97.3 96.6 95.9 95.9 95.4 95.0 100.3 100.3 100.8 100.9 97.9 98.3 99.7 99.6 100.2 102.0 105.5 108.0 112 2 116.3 117.0 118.9 124.2 128.8 101.0 100.8 101.3 101.2 97.7 98.4 99.5 99.2 99,9 101.2 104.1 105.9 109.2 112.3 112.2 114.0 118.5 122.4 102.4 103.8 101.9 104,4 99.7 97.8 95.5 96.3 98.7 99.5 101.1 105.2 110.9 110.3 111.7 112.4 115.7 120.6 97.9 96.6 98.9 96.6 98,2 100,5 104,4 103.4 101.5 102.5 104.4 102.7 101.2 105.4 104.7 105.8 107.3 106.8 98 6 1891 97 1 1 1892 99 4 1,993 1894 iwr, 1896 1897 ... _,!.__ 96,9 ; 98.0 100.6 104,2 103,0 1.998 101 2 1890 1900 101 ,'7 103.0 1 1901 ... 1902 • - 100.7 98 5 1903 KK)1 1001 -_.. 101.8 100.4 101.4 \ 11(06 . 1907 102.4 101 5 Note. — In explanation of relative figures it should be stated that each figure in the above table represents the per cent which the actual figures were of the average figures for the ten-year period from 1890 to 1899, the latter being presumed to represent normal conditions more accurately than the figures for any one year. In the first column, for example, the number of employees in 1890 is shown to have been 94.8 per cent of the average number for the ten-.year period ; the number in 1894 was 94.1 per cent of the average for the ten-year period ; the number in 1907 was 144.4 per cent of the average, or 44.4 per cent greater than the averag^e for the t«n-year period, etc. WA0E8 AND COST OP Per cent of increase (-j-) or decrease ( — ) in 1901, as borripared ivith prci'ious years, in employees, hours per week, wages per hour, full-time weeJcly earnings per employee, retail prices of food, and purchasing power of hourly wages and of full-time weekly earnings per employee, measured hy retail prices of food, 1890 to 1907. Per cent ol increase (+) or decrease (— ) in 1907 as compared with previous years. Vear. 'Impioy- ecs. Tionrs ■or weel< Wages •er liour Full-time weekly earnings- per eni- ;>.oye, Retail prices of faod, s-eighted accord- ing to amily nsumii tiou. Purchasing power, measured by retail prices of food, of— Hourly wages. rull-time weekly earnings per em- ployee. Average 1890-1899 - 1890 + 44.4 + 52.3 +48.4 +45.6 +45.3 + 53.5 +49.8 +46.5 +43.1 +35.7 +28.8 +24.9 +21.2 + 16.8 + 14.2 +14.9 + 8.1 + 1.0 -5.0 -5.7 -5.5 -5.5 —5.3 —4.8 —5.1 -4.8 —4.6 —4.7 —4.2 —3.7 —3.2 -2.4 -1.7 —0.9 —0.9 -0.4 +28.8 +28.4 +28.4 +27.8 +27.7 +31.6 +31.0 +29.2 +29.3 +28.5 +26.3 +22.1 +19.3 +14.8 +10.7 +10.1 + 8.3 + 3.7 +22.4 +21.2 +21.4 +20.8 +20.9 +25.3 +2L4 +23.0 +23.4 +22.5 + 20.9 + 17.6 + 15.6 + 12.1 + 9.0 + 9.1 + 7.4 + 3.3 +20.6 + 17.8 + 16.2 + 18.4 + 15.5 +21.0 +23.3 +26.3 +25.2 +22.2 +21.2 +19.3 + 14.6 + 8.7 + 9.3 + 8.0 + 7.3 + 4.2 + 6.8 + 9.1 +10.6 -t- 8.0 +10.6 + 8.8 + 6.3 + 2.3 + 3.3 + 5.2 + 4.2 + 2.3« + 4.0 + 5.5 4 1.3 .+ 2.0 + 0.9 — 0.5 +1.3 +2.9 1891 +4.5 18)2 _.. 1893 +2.1 +4.7 1894 1895 +3.6 +0.9 1896 -2.6 1897 __ —1.5 18)8 +0.3 1S99 ._ V)00 -0.2 —1,5 1901 +0.» 1902 l'>0'. ... . +3.0 mot .. .. +'' ' 1905 +0.1 1906 V -^.9 Note. — The fig-iires in this table g-ive for each year, and for the average of the ten-year period from 1890 to 1899, the per cent of increase or decrease (indicated by -|- or — ) which the figures for 1907 show as compared with the year specified. For example, the first column shows that the number of em- ployees in 1907 was 44.4 per cent greater than the average number in the ten-year period, 53.5 per cent greater than the number in 1894, 1 per cent greater than the number in 1906, etc., etc. Better Employment, Shorter Working- Hours, Higlier IVaffes and Higher Purcliasing Power of Wages. The foregoing table, which presents the facts in the con- venient form of percentages, discloses most important infor- mation with j-eference to conditions in 1907, as compared with the period of industrial depression which reached its lowest depths during the j^ears 1894, 1895 and 1896. First — Employment Afforded — As regards the number of employees iu the manufacturing and mechanical industries, it is seen that over one-half more workmen (53.5 per cent) were employed in 1907 than in 1894, and that during the ad- uiiuistratioiis of President ISIcKinley and President Eoosevelt the number given employment has steadily and rapidly increased even u]> to and including the last year of the period 1907. And even the wonderful increase in 1907 over 1894 as shown above does not mark the extreme limit of the betterment of industrial conditions as regards employment afforded ; for it must be re- meml)ered that the various establishments covered in the in- vestigation' of the Bureau of Labor were practically all in ojieration each year during the entire period and the figures seciu-ed thei-efrom do not reflect conditions in the hundreds of important establishments which were closed entirely during the jieriod of depression. Were figures available showing the thousands of workmen thrown into absolute idleness hy the closing doicn of factories and mills during Democratic rule, and the thousands given employment during Republican rule, S8V WAGES AND COST 0¥ MATING. th4 p«r emit of hicrca.sv in lai/cc,s al ivoric in lUOl over tlis number shown for lS9/f ivoiihl doubtless be double thai jjiven hy the Bureau of Labor in the tabic. Second — Working Hours — As regards hours of work in the establishments covered, it is seen that almost tcithoiit a halt the work-day has yradually been shortened during the period. The Hverug-e hours worked per week in 1907 were 5.7 per cent less than in 1890; 5.1 per cent less than in 1895; 3.7 per cent less than in 1900, and .4 per cent less than in 1900. I'he gen- eral betterment of industrial conditions is nowhere better shown than in the figures lohich indicate that slowly but surely the hours of labor arc decreasing and a consequently longer time is afforded the icorkmen for rest, recreation, and improvement. Third — Hourly Wages — The table shows quite conclusively the reduction in wages during the ^-ears of depression and the gradual and rapid increase year by year since 1896. It is seen that the hourly wages in 1001 were 28.Jf per cent hiffher thati in 1800; they were in ^lOOl 31.6 per cent higher than in 180 Jf, the year of lowest wages; they were 31 per cent higher than in 1805, and 20.2 per cent higher than in 1806, etc. It is most inttjresting to note the steady and strong tendency towards higher wiges during the last ten years, nor should the fact be overlooked that the wages of 1001, the last year covered, were higher than in any previous year, being 3.1 per cent higher than the year 1006. The figures do not }n any way indicate that a retrograde movement has began. Fourth — Weekly Earnings per Employee — It has been stated that while hourly wages have increased greatly the daily hours of work have gradually decreased. While the decrease in hours has doubtless been due to the movement of workmen them- selves for a shorter work-day, it should be noted also that when tl),e decrease An hours per iceek is taken in connection with the increase in wages the resvlting iceekly earnings still shotc a marked increase in 1001 over preceding years. For example. the weekly earnings in 1001 iverc 25.3 per cent greater than in 180 Ji ; 24.4 per cent greater than in 1805, etc., etc. While the increase as shown above is qnite considerable, it should be re- membered that it does not by any means indicate the conditions as to weekly, monthly, or annual earnings in 1907. as compared with the years of depression, inasmuch as the figures given are based on the presumption that each emph:)yee worked full time. While figures are not available showing the eMetit to which establishments icorked, ''half -time'''' or "three-quarter time''' dur- ing the years of depression, or closed down entirely, it is safe to say that were it possible to compare average iceekly, monthly, or yearly earnings in 1001 with those for 180^, 1895, and 1S06, the per cent of increase in .1901 -^over tlie latter years would be much greater than that shown in the Bulletin of the Bureau of Jjubor. Fifth— Retail Prices of Food — As previously indicated, the fiffi^res given in this colmim are stated by the Bureau of Labor to fairly represent not only the trend of cost of living so far as food is concerned, but also to mark the possible limits of advance and decline in the cost of all articles of family con- sumption. The results are especially important as they are derived from a most comprehensive investigation into retail prices covering a long series of years. Heretofore wholesale ;prices have been used to indicate the trend of cost of living, althorgh it was recognized that they were more sensitive to conditions than retail prices, that their fluctuations were con- siderably greater, and that they could not be used to indicate even a])proximately the extent of increase or decrease from year to year in the cost of living. The collection of retail prices which forms the basis of the figures in the table is, therefore, of great value as indicating with great exactness the cost of Uving based on prices actually paid by the small consumer. ■ It ,fs seen that the cost of living increased in 1901 over the year of lowest prices, 1896, not more than 26.8 per cent; over 1801, 25.2 per cent; over 1808. 22.2 per cent; etc., etc. Sixth — Purchasing Power of Wages — The last two columns of the table show the percentages representing the purchasing WAGES AND COST OF LIVING. S&% power of wages. The first of the two columns shoAvs the facts for hourly wag-es, while the second shows those for weekly earnings. Considering the retail prices of food or cost of living in coifnection with hourly wages, it is shown that the pur- chasing power of hourly wages in WOl was 10.6 per cent greater than in 1893; 8.8 per cent greater than in 1894; 6.3 per cent greater than in 1895; 2.3 per cent greater than in 1896, etc., etc. .In other words, an hour's wages in 1901 would purchase 10.6 per cent more of the commodities and articles entering into the cost of living of the workingman's family than would an hour's wages in 1893, etc. The last cokimn, which does not present so accurate a figure for reasons stated previoiisly in connection with weekly earnings confirms the conclusion justified by the preceding column that, considering hoth ivages and cost of living, the workingman has benefited to a measurable degree from the increase in wages despite the increase in cost of living and shortening of work hours. When it is remembered, also, that the betterment of indus- trial conditions has been greater than the figures indicate in some cases, as previously explained, that it has extended in many directions not covered by the figures and not even sus- ceptible of demonstration by the statistical method, and that the savings of the workman during a period of high wages, although accompanied by high prices, is considerably greatrr than during a period 6f depression, it seems a safe and con- servative conclusion that at no time in the history of this or any other country has there been an era of prosperity so pro- ductive of material benefit to both the workingman and the employer as the last twelve years of Republican r"le. WAGES IN THE UNITED STATES AND IN GREAT BRITAIN. A comparison of wage conditions in the United States with those of our free-trade neighbor, Great Britain, is interesting. It is said that in no country is labor better organized than in Great Britain. Organized labor has therefore exerted at least as gi-eat an influence for higher wages there as it has in this country. Industrial conditions, under fi-ee trade, have, how- ever, made it impossible for employers of labor to pay anything like the wages received by American workingmen. At the same time that the figures relating to wages in 1903 were being collected in this country, a special agent of the United States Bureau of Labor visited Great Britain for the purpose of obtaining wage statistics from the pay rolls of British industrial establishments doing business continuously during the period from 1890 to 1903, so that statistics might be obtained for that country that are entirely comparable with those gathered in the United States. The following table, which was compiled from the July, 1904, Bulletin of the Federal Bureau of Labor, shows the general results of this investigation abroad as compared with the figures obtained for this country : Tliere are more than twenty-five tliousand local labor unions in tlie Lnited States, witli a niembership of more tli«n two millions. Wliat infinite «ood can be accomplislied by this niisltty army of peace and indnstry if lield true to Its o^jisortnnity.— Hon. C. \V. 'Fairbanks, at Kansas City, Mo., September 1, 11>02. Yon asli me wliat I think of a provision tliat no restrain- iiiK order or injunction shall issue except after notice to I- I- I- 1- h- I- ■MIM "M e-T.iM "M ! C-l 'M ' ill W '^ ^^ 1.1 M S "^ '~ '~ 2 S? Q 9B ''* •i\ .»?\^ ^u ilcr^^^iiiiiilii t.- i'- Jo I- o S I- i^ r^ » o ^ -f ir (M n ^1 "M "M 'M "M 0 1-1 CO IC t^ t-- i-H i-H I^ IM (M CO — ';OI05C(MCOC C10r-i-*c<5-«3CI-^(M-*e<9eOe«5rH >f" » ^.ffl CO CO «5 CO »-f l> t^ H- l^ l^ «■ 1^ c/) '^ r-i c-i c»o>05«>oc50cc;p r-(r-lr-ir-ii-ir-lf.Hr-(CM5l(Me1fMS cor-h.a000iX,55QCi»S*c3:C3O> St 1^ a i~ CO irf CO kft ir< ■* K a qB o> *■! Me4««co«oeoccco5555M»5- r- ir lO IM 0-1 (M C; C-1 CO 4> 'M ^ (M il "M • ec CS M Ot M CO CO C--5 CO 0* w -^ •*, , .wica: ososcococscot^i-t^'t"-^ kc © CO so CO ir ir- QO iM 1- ir ic t-~ i^ ^ CO CO CO CO CO CO « J t i tt , t> \MU VU ) 1- 1^ r~ t^ t^ 1^ r~ X X o '-' CO ■* I (M 02 fe« coir-OJ©t>.i--»~l>f-.t^ioiocDoi ' r-ieOV«lS'<*<-l'OJ<3bl-r-'00ir-^© i ■*"!ti»»<-*eoei}e»5eocc'*-*«ccoi^ (N 5-1 e-J (M e4 65 *1 CO 'M 0-1 M (M C-1 M I'^lOOOOlffll.-lflMQOCNOS • iC ir IT- in »-- 05 1-1 *1 fM Iff. r-< 1 iggagggo^oo© a 03 • »-HOicoo>©io»ocor^'-'i(^-fco >i-li-lCJi-l-rt.r-|.»».t..i-.t~Nljv;tii^ *5.! ^ a ; ♦i*' I coco»cococDcocoiftcccoi-ooo» = P? - *1 IN Si i-itain during that period are placed side by side : Wages in the United States and Greajt Britain in, 1896 and 1903. iCompiled from Bulletin No. 51, United States Bureau of Labor.] Wages per hour. Occupation. Blacksmiths Boilermakers Bricklayers Carpenters Compositors Hod -carriers Iron molders Laborers, genera Machinists Painters, house. - Plumbers Stone cutters Stone masons United States. $0.2043 .2626 .4337 .27:0 .3897 :233') .2537 .1U5 .2 5)7 .27t2 .3W5 .3i90 .3547 1903. $0.2962 .2« 8 .5*71 .3591 .4167 .286} .3036 .1076 .270.T .3t50 .4371 .4225 .4486 Per cent j in- I crease. 12.1 8.5 26.1 31.2 U.G 22.6 21.1 18.4 12.0 26.5 25.8 24.7 17.7 Great Britain. $0.1716 .168S .1960 .1893 .16)5 .1250 .1698 .0358 ■ .1607 .1656 . 1926 . 1893 .1977 Per cent In- crease. $0. 1740 .1719 .2032 .2028 .17y5 .1250 .1787 .1019 .1677 .1774 .2027 .1994 .2078 1.4 2.1 5.2 7.1 5.9 Q.O 5.d 6.4 4.4 7.1 5.2 5.3 The tendency of wages in all industrial countries is to increase gradually from year to year except at times of industrial depres- sion, and while such a normal increase is noticeable in the figures for Great Britain from 1896 to 1903, the figures for the U ited States during this period plainly show that the increase here has been phenomenal. Thus, whilie from 1896 to 1903 the wages of blacksmiths inci-eased 1.4 per cent in Great Britain they in- creased 12.1 per cent in the United States; the wages of boiler makers increased 2.1 per cent in Great Britain and 8.5 per cent in the United States ; the wages of bricklayers increased 5.2 per cent in Great Britain and 26.1 per cent in the United States; the wages of carpenters increased 7.1 per cent in Great Britain and 31.2 per cent in the United States; the wages of compositors increased 5.9 per cent in Great Britain and 14.6 per cent in the United States ; the wages of hod carriers showed no change in Great Britain and increased 22.6 per cent in the United States ; the wages of iron moulders increased 5.9 per cent in Great Britain and 21.1 per cent in the United States; the wages of general laborers increased 6.4 per cent in Great Britain and 18.4 per cent in the United States ; the wages of machinists inQreased 4.4 p^r cent in Great Britain and 12.6 per cent in the United States ; the wages of house painters increased 7.1 per cent in Great Britain and 26.5 per cent in the United States; the wages of plumbers increased 5.2 per cent in Great Britain and 25.8 per cent in the United States ; the wages of stone cutters increased 5.3 per cent in Great Britain and 24.7 per cent in the United States ; and the wages of stone masons increased 5.1 per cent in Great Britain, w^hile they increased 17.7 per cent in the United States. • Thus, while the percentage of increase in these 13 occupations ranged from 0.0 to 1.1 per cent in Great Britain, it ranged from. 8.5 per cent to 31.2 per c^nt in the United Sftntes. '- ^ ,: More recent figures showing the difFerence in wages in this country and in Great Bi-itain are contained in the two follow- 233 WAQES AND COST OF LIVING. inj? table.s. The data for the United States are taken from the July. 1907, Bulletin of the Federal liureau of Labor, and rep- resent the avera«^e wages per hour and hours of work per week in the occupations and cities specified. The figures for the three cities of Great Britain are found in a report published by the British Board of Trade, Labor Department, in November, 1906, and are the standard wage rate per hour and hours of labor per week observed, in the several localities at the date mentioned. AJll of the six occupatione for which the facts are shown belonjf to the building trades. Average wages per hour and hours of labor per week in three representative American cities in 1906. [Compiled from Bulletin No. 71, United States Bureau of Labor.] Average wages per hour. Average hours per week. Occupation. New York. Balti- more. Chi- cago. New York. Balti- more. OhI. cago. Bricklayers -_-- $0.7000 .5746 .2097 .4695 .6875 .5945 $0.6365 .4085 .1802 .3750 .6250 .4094 $0.6265 .5500 .2939 .4811 .6875 .5625 44.00 44.00 50.38 44.10 44.00 44.00 48.00 48.00 53.66 48.00 48.00 48.00 45.24 Carpenters Laborers Painters Plasterers 44.00 50.90 44.00 44.00 44.00 Standard wages per hour and hours of labor per week in three representative cities of Great Britain on October 1, 1906 » ^ [Compiled from Standard Time Rates of Wages in the United Kingdom At 1st October, 1906— Board of Trade (Labour Department).] Standard wages per hour. Standard hours per week. Occupation. Lon- don. Man- chester. Glas- gow. Lon- don. Man- Chester. Glas- gow. $0.2129 .2129 .1419 .1825 .2230 .2230 $0.2027 .1926 .1216 .1774 .2027 .1926 $0.1926 .1926 .1216 .1825 .1926 .1825 50.00 50.00 50.00 50.00 50.00 50.00 54.50 49.50 •52.00 52.00 52.00 49.50 Bricklayers Carpenters — Laborers - . 51.00 51.00 51.00 Painters _ — 51.00 Plasterers - 51.00 Plumbers 51.00 htn; uif (I! ((»' UJ ill 1 »•' -l-Hf i-r, I M| 'y The New York Journal of Commerce (Democratic) recently printed a table giving in the currency of the United States the average wages paid per hour for 12 classes of labor in the United States as compared with certain European countries in the cal- endar year 1903. The table was compiled from a bulletin issued a short time ago by the Bureau of Labor at Washington, in which the average rate of wages paid in each year from 1890 to 1903 inclusive for twelve classes of employment are given in detail for the countries named above. :riiil-)»:ni Occupation. United States. Great Britain. $0.2951 .2848 .5472 .3594 .4487 .2863 .3036 .1675 .2707 .4429 .3450 .4579 ! $0.1740 .1719 Bricklayers Carpenters . — . ._ • .2060 .2028 .1795 Hod carriers .1250 Iron molders .1787 Geqeral laborers- Machinists .1019 1677 Painters Plumbers .2027 .1774 Stone masons .2078 tor 12 classes Wages per hour 4.2071 2.09M RAILWAY LABOR. 23* RAILIVAY liABOR DURING REPUBLICAN AND DEMOCRATIC ADMINISTRATIONS. There is no better index to the industrial condition of a coun- try than the amount of business done by the railways, and as the railways in this country employ over one and one-half million persons, the increase pr decrease in traffic materially affects a larg-e proportion of the population. During- the fiscal year ending June 30, 1896 (Cleveland's Ad- ministration), there were 82b, 62U railway employees in the United States, receiving a total yearly compensation of $468,- 824,531. In 1907, there were 1,672,074 railway employees re- ceiving $1,072,386,427. This shows an increase in 12 years of 845,454 railway employees and of over five hundred million dol- lars in aggregate salaries and wages. In other words, more than twice as many persons were employed by the railways in the United States on June 30, 1907, than on June 30, 1896, when the Democratic party was in power, and more than twice as much was paid in wages and salaries. The following table shows the numoer of railway employees and the total and average salaries and wages paid in each class in 1896 and 1907 : W o O w e CD 5" o t^ I II I ■I", s ■2 fc "^ i^ I 1 § OJ - OS a > ® < _ ■^ SgS£SSrfifSSo?S§2?S5SS3g i SS!!:1SSS8'oiS2Si5;:^rt:S5^S CMf5(NrHi-HCO ■«;< r-< m ( -M i?4 i~ CO (7i (M ys *i ^3 OS « CO ■♦ (M < . %tiiiim%iim%'^%%n I ^ «'-!2c^^SS58g;SS^:5^S?5*| t84 REPORTS OF STATE LABOIi lUlfKAlS. REPORTS OF STATE LABOR BlRlilAlS. A mimber of State labor biii'eau.s publi.sh from year to year infonnation showing-, among- other tilings, the number of per- sons employed in leading- industries, the total and average wages paid employees, the value of prodiiets, etc. Unfortunately in many eases these annual statistics are not comparable, one year with another, becaune they do not relate to identical establish- ments or industries. As far as recent comparable liguves were obtainable from State labor reports they are shown helow. Th \ include in all cases the latest availal)le figures. Maemachuaetta Labor ReportM. The annual statistics of manufactures in Massachusetts, pul»- lished by the Massachustetts Bureau of Statistics of Labor, pre- sent reports from a large number of maniifacturing establish- ments in the State, and each year compare conditions with the previous year, in the same establishments. The following table compiled from the Massachusetts reports shows the ])ercentage of increase or decrease each year over the year preceding in the same establishments, in the number of per- sons employed, the average yearly earnings per employee, and the value of goods made and work done : Percentage of increase or decrease in the number of employees, average earnings per employee, and value of goods made and tcork done in manufacturing establishments. [Compiled from the "Annual Statistics of Manufactures in Massachusetts," published by the Massachusetts Bureau of Statistics of Labor.] Peraous em- ployed. Average yearly Value of goods earnings per made and work Numbef of es- tablish- ments report lug. employee. done. i Per cent Per cent Per cent Per cent Per cent Per cent Years compared. 1 ofln- i crease of de- crease of In- crease of de- crease of in- crease of de- crease las com- as com- as com- as com- as com- as com- pared pared pared pared pared pared with with with with with Mlth prev ous previous previous previous previous prevloui year. year. year. year. year. year. 1888-1889 1,364 0.89 1.45 2.45 1885)-18.'K) 3,041 2.70 1.58 4.37 18JK)-1891 3,745 4,173 4,397 1.72 4.53 0.91 1.51 1.33 5.87 1891-1892 SM 1892-18i)3 4.26 8.10 1893-18)4 4,093 3.6-29 4,609 4,695 4,701 4,740 6 22 3 28 10.27 1891-1895 9.02 2.19 9.18 1895-18 J6 2 94 .06 5.51 189>-1897 2.72 1.80 9.58 1.16 0.18 3.04 4.62 15.59 1897-1898 1898-18')9 1.86 18^9-15)00 4,645 3.77 2.80 8.51 1900-1901 4,6')6 4,658 4,673 4,730 5,010 5,055 3.60 6.46 3.25 1.82 2.29 2.28 5.36 8.66 4.66 1901-1902 - . 190-2-190S 1903-1901 2.73 0.87 0.90 190: 1905 7.66 6.97 1.02 3.75 10.55 12.12 1905-1906 New Jersey Labor Reports. The thirtieth annual report of the Bureau of Statistics of La- bor and Industries of New Jersey contains data relating to the wages paid and hours of labor observed in a number of identical establishments engaged in the building industry in Essex county for a j)ej;iod of years. This information, while lacking for sev- er.il of the years included in the period covered, is nevertheless sufficient to indicate very clearly the decidedly upward trend of wages and the deci-easing working hours in these establishments, which were selected as being representative of their class. The following tables present the facts : REPORTS OF STATE LABOR BUREAi'S. 23i^< Wafjes and liours of labor in identical establishnicntfi in the building industry in Essex county, N. J., by years. ^ fFrom the Thirtieth Annual Report of the Bureau of Statistics of Labor and Industries of New Jersey.] Painters, decorators, and paperhangers. Year. Wages Hours of labor. Per hour. Per weelj. Per day. Per week. 1896 $0.25 .28 .3iy4 .34 .371/2 .41 $13.50 13.50 15.00 16.50 18.00 18.04 ' 9 54 1897 8 8 8 8 8 48 48 1900 4» 190.J 48 1900 .- 44 Carpenters. Year . — 1891 9 $2.50 1896 9 $3.00 1897 8 $3.00 1903 8 $3.28 igO-i 1906 Hours of labor - 8 8 Wages per day - - - $3.60 1 $3.80 1 Bricklayers and masons. Wages. Houis oflabor. Year. Per hour. Per week. Per day. Per week. 1890 $0.33% .44% .50 .55 .60 .65 ' $18.00 24.00 24.00 24.20 26.40 28.60 9 8 8 8 8 8 54 1896 54 1901 48 1903. _ 44 1905 44 1906 44 New York Labor Reports. Since 1897 the New York Bureau of Labor Statistics has col- lected (lata concerning- the actual earnings of wage-workers through the officers of workingnien's organizations, reaching in this way thousands of wage-earners where few could have been reached by means of individual schedules. The New York statistics are based on quarterly reports col- lected twice a year and thus cover one-half of each year. The following table shows the average earnings, with per cent of in- crease over 1897, and the average days of employment of organ- ized workingmen for each of the years 1897 to 1906 : Average earnings of organized worJcingmen, 1897-1906. [Compiled from the Twenty-fourth Annual Report of tlie Bureau of Labor Statistics of New York.] Year. Average quarterly earnings. (First and third quarters.) Average earnings per day. (First and third quarters.) Estimated average for year. Per cent, of Increase over 1897. Avfrage days of emp oy- ment In year. 1897 $162.50 169.49 186.63 179.11 189.05 191.33 188.28 186.20 203.77 218.96 $2.56 2.66 2.73 2.70 2.75 2.75 2.73 2.76 2.92 3.07 $650.00 678.00 747.00 716.00 758.00 765.00 753.00 745.00 815.00 876.00 227 18)8 189-) 1900 1901 1902 19'>3 1001 ItWi 1906 4.31 14.92 10.15 16.31 17.69 15.85 14.62 25.38 34.77 232 258 246 260 264 256 2.53 272 278 The report from which the foregoing table was compiled states that "in 1897 the average wage for a day of work among organized wage-earners was $2.53 or. taking the first and third quarters alone, $2.56. In 1906, in the first and third quarters, the average per diem earnings of all members employed was $;j.()7. In the ten years there had consequently been an average increase of 51 cents a day, which is almost exactly equivalent to 20 per cent. This result, which is based on actual earnings, is probably a close approximation to the general movement of wages in New 336 REPORTS OF STATE LABOR BUREAUS. York in the paat decade. The retuniM on which the statistics are based include nearly all occ\ipations, except agriciiUural labor and domestic serrioo, and there is little question that both of these classes of workers have gained similar advances." The following- table, which is taken from the same source, g^ives the percentaj^e of working' time in which organized work- ingmen and women wei*e employed and idle : Percentage of working time iti which organized workifigmen and women were employed and idle, 1897-1906. Year. Employed. Idle. 1897 - 73.8 75.3 83.6 80.0 81.4 85.7 a^.i 88.8 88.3 90.3 26.2 1838 24 7 1899 16 4 1900 — — _ 20.0 1901 . 15 6 1902. 14.3 1903 16.9 lJ)Oi ^ lt(.2 1905 11.7 1906... _ 9.7 In 1897, when recovery from the industrial depression of 1893 was just bejj^inning. wage-worKcrs io.st fully one-fourth of their income throug-h \inemployment of one kind or another. As the industrial revival gained headway the percentage of idleness decreased, with slight relapses in 1900, 1903, and 1904, when large numbers of the organized workmen were involved in labor dis- putes. The following table, which is also compiled from the twenty- fourth annual report of the Bureau of Labor Statistics, shows the average earnings per day of organized workingmen for each of the years 1897 and 1902 to 1906, inclusive, in forty selected occupations : Average earnings of orgatiized workingmen for each day of loork in third q'tsartet 1S97 and 190^-1906; men only. Occupation. Num- ber rtiii >rt- iug. 18 J7 190i 1903 1904 1905 1908 Gakers and confectioners 3,360 2,289 3,734 1,6J4 2,293 2,492 6,816 12,881 2,287 2,267 28,901 7,713 1,639 2,-)18 8,384 2,332 4,834 4,137 4,114 18,141 2,403 7,2d6 2,17.) 2,172 2,15.i 7,811 13,279 1,401 2,2St 6,161 5.8cl 3,131 4,018 7,312 4,416 3,033 1,937 1,966 2.170 6,638 $2.01 1.71 1.87 2.63 2.92 1.94 2.45 3.81 2.19 2.46 3.03 1.5<. 2.19 1.83 3.40 2.90 2.61 8.64 2.16 2.38 2.48 2.56 1.72 3.00 3.41 2.24 3.25 1.42 1.70 3.32 3.49 3.43 3.15 3.00 2.3) 3.74 2.. 33 1.81 2.0) 1.06 ^.23 l.sl 1.97 2.74 3.03 1.97 2.60 4.65 2.27 3.U 3.10 1.89 2.04 2.« 8.39 3.18 2.78 3.8J 2.29 2.8ii 3.71 3.06 2.27 3.79 3.76 2.70 3.22 2.31 2.5S 4.81 3.67 3.07 3.35 2.85 2.13 3.85 3.82 1.96 2.19 2.12 $2.30 1.83 3.00 2.12 2.61 4.5. 2.3) 3.15 3.27 1.92 2.10 2.4« 3.43 3.18 3.S4 3.73 2.43 2.75 4.32 3.00 2.27 3.44 3.77 2.69 3.34 2.63 2.69 5.29 3.72 3.21 3.24 2.92 2.17 4.11 3.91 2.00 2.3S 2.24 $2.40 i2.U $2.60 Barbers..- Bartonders 1.94 i 1.93 a. 16 i 2.2i 2.07 2.^7 Boilermakers and iron-ship builders B' olfbin.'.ers (all branches) Boot and shoe workers . . Brewery workaen , 2.89 3.02 2.16 2.66 4.73 2.36 i.m 3.07 2.13 2.68 5.11 2.45 2.95 3.12 2.42 2.67 5.03 2.6iJ 3.35 3.40 3.. 53 Carpenter.? and joiners 3.30 I.IK) 2.19 2.44 3.45 2.01 2.24 2.14 8.52 3.78 1.9:i Clerks and salesmen.. -■ 2.26 l.U Compositors 3.5") Conductors, rai'wij --. .- 3.28 2.89 3.37 2.9i 8.11 3.20 Engineers, locom )t!ve ^_. Firerhen, locomotive S.77 8.94 2.53 . 2.53 2.75 j 2.87 4.36 1 4.38 2.98 i 3.04 2.15 2.15 4.38 4.92 4.09 3.87 2.79 2.86 3.37 1 8.47 2.13 2.49 2.61 1 2.54 5.31 i 5.46 3.79 4.31 3.13 I 3.10 3.55 i 3.63 3.27 , 3.21 2.07 2.31 4.23 ! 4.3-) 3.95 4.13 1.91 2.11 2.46 ' 2.66 8.92 2.66 Hod carriers 2.99 Housesmiths and bridgeinen Iron molders 4.28 3.22 Jacket makers 2.13 Latliera 4.70 Mthograj)hers . - Machinists .... 4.01 3.02 3. .5 Pants makers.. Piano and organ workers (all branches) 2.31 2.51 5.5i Plumbers and gas fitters Pressmen Roofers, sheet metal workers Stationary engineers 4.21 3.5) 4.05 3.37 3.03 Store cutters 4.19 Stone masons 4.2.) Street railway empioyees Tailors 2.11 2.11 Trainmen 2.26 2.29 2.43 REPORTS OF STATE LABOR BUREAUS. 237 Pennsylvania Labor Reportt*. The secretary of internal affairs of the State of Pennsylvania, in his report for 1905, publishes a series of tables showing- cf)in- parative statistics in 710 identical establishiMents for the years 1896 to 1905. The following- table has been compiled from this report : Comparative statistics of 110 identical tnaniifacturing estahUnh- ments, 1S96 to 1905. [Compited from tha Thirty-third Aanual Report ol the Bureau of Industrial Statistics of Pennsylvania.] Average* per- soas employed Aggregate wagfs paid. Average yearly earnings p^r •mpioytfe. Value of product. Bai m = =l isl ti ^ c Amount. i Amount. c ^ * ?> ^«ll m ^1^ a s < isi S2S 1896- 122,138 $46,736,124 $382.65 $169,806,501 1897- 127,461 4.4 47,852,604 2.4 375.43 ai.9 182,572,176 7.5 1898- 141,819 16.1 57,312,659 22.6 40i.l2 5.6 217,514,078 28.9 189:-)- IBS, (583 84.0 70.944,181 51.8 4S3.42 13.3 287,635,100 69.4 L900- 175,-501 43.7 76,838,628 64.4 4.S7.82 14.4 325,181,818 • 91.5 1901— 183, IgS 50.0 82,1»0,?37 75.8 448.52 17.2 33'c»,027.496 99.7 1902- 19<,945 53.6 93,947,766 101.2 481.92 25.9 388,803,5% 128.4 1903- •203,838 66.9 98,2'59,»05 IIS.O 482.04 26.0 390, '224, 118 1-29.8 l»Oi- 183,853 50.5 84,18.5,803 89.8 459.57 20.1 334,343,735 96.9 1905- •202,401 65.7 97,463,104 108.6 481. S4 25.8 400,311,210 135.7 ft Decrea 86. The following tables, compiled from the thirty-fourth annual report of the secretary of internal affairs, show the principal data for pig iron and tin plate production for the years 1896 to 1906. Comparative statistics of pig iron and tin plate production, 1896 to 1906. [Compiled from the Thlrty-foirth Annual Report of the Bureau of Industrial Stati&^tics ol Pennsylvania.] Pig Iron. Average per- Bong «mployed. Aggregate wages paid. Average yearly earnings per employee. Value of product. i=t AST iot sij Num- ber. Amount. its - * m fl s Amount. 0+ and t«> ent ont tlie eancer of alavery tliat -was eating array oor national life, do not st**w any lean, front an historical standpoint, as the decades pass. — Hon. Wm. H. Taft, at Riverside Park, New York. 288 REPORTS OF STATE LABOR BUREAUS. Tin plate. Average per- sons em ployed. Num- ber. 557 ♦i -—-X z o ^ U X 4> Z X ^ IKSKi ;{,194 3,})22 1807 mm 5,0^6 i«y.) 7,68-2 1900 7,391 1901 8,188 1902 8,90'> 1903 8,261 190! 8,397 1005 8,280 190f) 8,G85 +22,7 +28.5 +52.. 5 — 3.7 +10.8 + 8.8 — 7.2 + 1.0 — 1.4 + 4,9 Aggregate wages paid. .-\mouut. $1,437,226 2,227,217 2,913,9)4 4.051,395 3,526.934 4,5J3,561 4,506,105 5,688,188 5,135.828 5,269,152 6,180.-265 0+« « * « vo +51.9 +32.2 +37.7 —13.0 +30.2 — 1.9 +26.2 — 9.7 + 2.6 +17.3 Average yearly earnings per employee. $156.55 568.17 584.58 527.76 477.00 581.01 506.02 688.56 611.63 636.37 711.60 g a> S! ^ 2 « Value of produot Amount. +24.4 + 2.9 — 9.7 — 9.6 + 17.6 — 9.8 +.33.1 —11.2 + 4.0 + 11.8 $4,637,811 6,837,921 'J,3U,235 12, 152,. 532 12,5'J0,897 17,0)2,338 16,116,7.55 20,373,303 18,501,358 19,986,608 23.722,553 — a a)« an V to + 47.4 +3«>.6 + 30.1 + 3.6 +35.2 - 5.3 +26.4 — 9.2 + 7.9 +18.8 In the following- table are shown the averag:e yearly earnings of employees in identical establishments m twenty-five selected industries for the years 1896 and J 905, conipai*ed : Average year! if earninps of efhployees in identieal establish- ments in 2o selected industries, 1896 and 1905. [Compiled from the Thirty-third Annual Report of the Bureau of Industrial Statistics of Pennsylvania.] Industry. Boolcbinding Brass, copper and bronze goods Building and structural iron work Carpets Car springs, axles and railway supplies.. Cotton gooi'.s Cotton yarns Kdge tools ^— . Foundries and machine shops Hats and caps _ _ _ Hosiery . Iron and steel forgings Locomotives and cars built and repaired Paper manufacture Pottery Shovels, scoops, spades, etc Silk, ribbons ' Slate roofing, etc. (tonnage) Stoves, ranges, heaters, etc Tool steel, etc (Tmbrellas and parasols Upholstery goods Window glass, bottles, and table. goods. Woolen and worsted fabrics : Wrenches, picks, etc Average Increase .in earnings. 1905 over lc96. 1896. 1905. Actual. Per cent. .$170.70 $590.62 $119.92 25.5 407.01 517.01 140.00 31.6 .508.18 616.40 108.22 21.3 316.63 422.88 70.25 22.0 413.76 .505.71 91.95 22.2 279.41 372.82 93.41 31.5 273.lt 370.68 97.51 35.7 435.70 545.77 110.70 25.3 450.22 .556.18 105.98 23,8 293.23 394.80 98.57 33.3 237.59 311.98 74.. 39 31.3 478.61 642.76 164.15 28.6 4i>5.43 628.88 143.45 29.5 381.90 483.41 101.51 26.6 497.0:) 518.35 49.35 9.9 3J3.23 570.47 171.21 42.9 253.22 376,. 59 120.37 43.1 303.61 4.56.60 152.99 '31.8 411.16 627.32 216.16 ,52.5 551.04 851.62 297.58 53. 5 231.65 320.54 88.89 38.4 361.10 477,76 113.66 31 .9 379.14 485.9.5 103.81 28.2 277.04 .396.45 119.41 42.3 428.91 563.55 134.61 31.4 "OtT-OF-WORK BKXEFITS" TNDER DEMOCRATIC AND REPIBLICAN ADMINSTRATION. Interesting" evidence in corroboration of the figui'es published by the Federal Bureau of Labor is furnished by a statement of the out-of-work benefits paid by the Cigarmaker's International Union during the period 1890 to 1907. Nothing afPords a clearer insight into the general condition of employment than does the amount expended by labor organizations in benefits to members who are temporarily out of work. In the following table, which has been reproduced from the Cigarmaker's Official Journal of date of April 15, 1908, is shown the total cost of OUT-OF-WORK BENEFITS. 28ft out-of-work benefits paid to members of that organization, and the total membership. By dividing this cost by the member- ship we ascertain the average cost per member. The figures are as follows : Out-of-work benefltfi paid hy the Cigar Makers' International Union from 1890 to 1901. Y«ar. total cost of out- of-work benefits. Total momber- ship of out-of- w o r k benefit fund. Average cost par member of out- of work bene- fits. 1890 - - $22,760.10 21,223.50 17,160.75 89,402.75 174,517.2'. 168,. 377. 25 175,767.25 117,471.40 70,197.70 38,037.00 23,897.00 27,083.76 21,071.00 15, J58 00 29,872.50 35,168.50 23,011.00 19,497.50 24,624 24,221 26,678 26,788 27,828 27,760 27,318 26,347 26,460 28,994 33,955 33,974 37,023 39,301 41,636 40,075 39,250 41,337 92 1891 8i 1892 6S ]893 3.8i 1894 6.27 1895 5.9» 1896 _ 6. 48 1897 4 4§ 1898 .- 2.65 1899 1.31 1900 0.70 1901 0.80 1902 0.57 1903 0.40 1904 0.72 190S 0.88 1906 .Z 0.61 1907 0.47 This table presents several significant facts. From 1890 to 1892 the cost per member for out-of-work benefits decreased from $0.92 to .$0.65. In March, 1893, the Democratic administra- tion came into power. "^Ihe cost per member increased in that year to $3.34, then to $6.27, then a slight drop to $5.99 and a rise again in 1896 to $6.43 per member. In inarch, 1897, the Republican administration returned. The cost per member dur- ing that year fell to $4.46, and as business confidence was gradually restored and employment became- more general, it continued to decline until in 1903 it was reduced to but $0.40 per member. In 1Q04 and 1905 there was a slight increase, which was followed in 1906 by a decline that continued through 1907, the co.st of out-of-work benefits during that year being $0.47 per member. Thuf< ivhUe from 1896 to 1907 the total mrem- bership increased from 27,318 to .^i,J37, or 51 per rent, the totul cost for out-of-icork benefits decreased from $175,767.25 to $19,.',97.50. or 89 per cent. REPUBLICAN LABOR LEGISLATION, Federal Legrislation. Since its very inception the Republican Party has been legis- lating in every Congress for the uplifting of labor and the bet- tering of conditions for all working classes. Through our Tariff laws the working people of the United States have been protected against the cheaper labor of the outside world, and wages to-da,y are from two to ten times the amount received elsewhere. Through our financial legislation the wage-earner has always re- ceived a full dollar, and his savings and investments have been fully protected. Not only have wages constantly increased and hours of labor been reduced, but sanitary, conditions have been constantly improved and inspection and liability laws; have given to our workingmen and women conditions and advantages better, very much better, than in any other counti-y. All the great National Labor laws on our statute books were put there by the Republican Part3\ Among the principal ones are the following: < Slavery. — The great revolution which exalted labor and freed the country from the curse of slavery was acomplished by the Republican Party, against the fiercest opposition possible by the o«mbined foreesof the Democrats and their allies. Still true to 240 REPUBLICAN LABOR LEGISLATION. its original ideas of freedom, the Republican Party, after a lapse of forty years since the emancipation proclamation of Lincoln, abolished slavery in the Philippine Islands. (Act pased by a liepublican Senate and Eepiiblican House and signed by Presi- dent Roosevelt July 1, 1902.) Involuntary tiervitudc of Foreigners. — In 1874 the Forty-third Congress, which was Republican in both Houses, prohibited, un- der heavy pentTlties, the holding to involuntary services of any person forcibly kidnapped in any other country. Peonage. — The act abolishing this kind of forced labor was passed by the Thirty-ninth Congress, when both Houses were Republican by a large majority, March 2, 1867. The Coolie Trade. — The legislation pz-ohibiting the coolie trade is the work of the Republicans. The Act of 1875 closed our doors to the paupers and criminals of Europe, and the Exclusion Act of 1882 stopped the immigration of the Chinese. Upon the annexation of Hawaii in 1898 the immigration of Chinese thereto was prohibited by a Republican Congress, as was the migration of those already in Hawaii from the islands to continental United States. In President Roosevelt's Administration the Chi- nese-exclusion laws have bfeen extended to the entire island ter- ritory of the United States. (Act passed by the Fifty-seventh Congress and approved April 29, 1902.) Immigration. — The Republican Party has favored the Ameri- can standard of living, not only by abolishing compulsory labor, but also by excluding the products of the cheapest foreign labor through protective tariffs and by restricting the immigration of unassimilable elements from other races. The importation of foreign laborers under contract was first prohibited in 1885, but, owing to defective provisions for enforc- ing the law, continued almost unchecked until the amendments made in President Harrison's administration. (Acts of the Fifty- first Congress, which was Republican in both branches, and of the Fifty-second Congress, signed March 3, 1891, and March 3, 1893, respectively.) The Republican Party has increased the restrictions upon the immigration of cheap foreign labor in the new law of 1903. (Act passed by the Fifty-seventh Congress, both Houses being con- trolled by the Republicans, and signed by President Roosevelt March 3, 1903.) Convict Labor. — The law abolishing the contract system of labor for United States convicts passed the House March 3, 1886, and the Senate February 28, 1887. All the votes against the bill were Democratic. The law providing for the construction. of new United States prisons and the employment of convicts therein exclusively in the manufacture of such supplies for the Government as can be made without the use of machinery was passed by the Fifty-first Congress, which was Republican in both branches, and signed by President Harrison. (Chapter 529 of the Acts of 1890-91.) Protection of Seamen. — This was accomplished by the Forty- second Congress, when both Houses were Republican, and the Forty-third Congress, also Republican. Inspection of Steam Vessels. — Accomplished by the Fortieth 'Congress, which was controlled by the Republicans. t* Inspection of Coal Mines in the Territories. — Provided for by "the Fifty-first Congress, both Houses being under the control of the Republicans ; approved by President Harrison. Safety Appliances on Railroads. — The original act providing for automatic couplers and power brakes on locomotives and cars used in interstate traffic was passed by the Fifty-second Congress, and signed by President Harrison March 2, 1893. Owing to decis- ions of the courts, new legislation became necessary, and the Fifty-seventh Congress (Republican) passed a greatly improved law, which was signed by President Roosevelt March 3, 1903. Report of Accidents. — The Fifty-sixth Congress (Republican) passed a law requiring common carriers to make monthly reports of accidents to the Interstate Commerce Commisslen. (Approved by President McKinley March 3, 1901.) Eight-Hour Law. — The first eight-hour law in this country was enacted by the Fortieth Congress and approved by President Grant in 1868. It applied to all artisana and labor«r« omplojAd bv the GorernmaTit. REPUBLIC Al^ LABOR LEGLSLATION. 241 In the Fiftieth Congress (1888) the eight-hour day was estab- lished for letter carriers. The bill passed the Senate, which was Eepublican, without division. In President Harrison's administration the eight-hour law was extended to include persons employed by contractors on pub- lic works. (Chap. 352 of the Acts of 1892.) Department of Lal)or. — The Act creating the United States Bu- reau of Labor was passed by the Forty-eig'hth Congress (1884) and signed by President Arthur. In the Fiftieth Congress (1888) the Bureau was removed from the Department of the Interior and made an independent Department of Labor, all the votes cast against the bill being Democratic. In 1903 a Republican Congress established the Department of Commerce and Labor and made its head a Cabinet officer. Boards of Arbitration . — Act passed at the Fifty-fiith Congress (Eepublican) and signed by President McKinley June 1, 1898. Incorporation of Natumal Trades Unions. — Provided for by Act of Congress in 1886. Recent Legislation. — It is within bounds to say that no pre- vious sessions of Congress have displaj'ed a more active or intel- ligent interest in the needs of the wage-earners than the past three sessions, nor has there Jieretofore in the same length of time been as much important and i^rogressive legislation in the interests of this class of our fellow-citizens. Congress has wisely co-operated with and supplemented the work of the Department of Commerce and Labor by enacting a law for the better protection of seamen and to prevent their being induced to ship through false representations. It has pro- vided for an investigation into the conditions of working women and children ; it has amended and strengthened the law to pre- vent the importation of contract labor, and provided a plan for the further exclusion of that class of Asiatic immigration which enters into competition with American workmen. It has enacted a law limiting the hours of labor of employees engaged in rail- way train service and of railway telegraphers. The Congress just closed re-enacted the law passed by the Fifty-nintti Congress to conform to the opinion of the Supreme Court, making common carriers liable for accidents to their em- ployees engaged in* interstate commerce. It has enacted a law for the further protection of the life of railroad employees in their hazardous employment. It has provided compensation for labor- ers and mechanics who ma}^ be injured in the service of the gov- ernment, and making a provision for their families in the event of their being killed in the course of their employment. It has enacted a model child-labor law for the District of Columbia. It has directed a thorough investigation into the working condi- tions of the employees of the telegraph and telephone companies doing interstate business ; and, in response to the urgent appeal from both capital and labor. Congress, before its adjournment, appropriated $150,000 for an investigation into the cause of mine accidents, with a view of promoting the safety of workers in our mines. Safety of Employees on Railroads. — The Ashpan Act. — An act to promote the safety of employees upon railroads by requiring common carriers engaged In interstate or foreign commerce by. railroads to equip their locomotives with automatic self-dumping and self-cleaning ash pans was passed by Congress on May 30, 1908, the author of the measure as well as its chief supporters being of Jbhe Republican party. The following are some of the principal acts of legislation by the Eepublican Party : 1. The Homestead Law, passed by a Eepublican Congress and signed by Abraham Lincoln. 2. The acts for the issuance of legal tenders and national bank notes, which gave the people a currency of equal and stable value in all parts of the country. 3. The system of internal revenue taxation, by which approxi- mately one-half of the ordinary expenses of the Government have been visited iipon malt and spirituous liquors, tobacco and cigars. 4. The thirteenth amendment to the Constitution, vv^ich abolished slavery. 242 REPVIiLIVAX LAIiOU LEdhSLATION. ) 5. The fourteenth anuMidiuent, which ereiited (Mtizenship of 1 he L iiited States as (list in-jjuished from citizenship of the several States, and provided that no State should abridge th^ privileges oi- inununities of citizens of the Tnited States. 6. The fifteenth amendment, which established equality of sn IT rage. 7. The Civil Kights Act, which extended to all persons the t'(|ual protection of the laws. 8. All existing laws for the payment of pensions to veterans of the Civil War and their surviving relatives. 9. The liberal legislation respecting mineral lands, which bnilt up the mining industry, added enormously to the wealth of the country in the precious and semi-precious metals, and made it possible to resume specie payments. 10. The resumption of specie payments. 11. The reduction of postage, the money-order system, the es- tablLshment of the Railway Mail Service, free delivery, Rural free delivery, and other improvements that make the Post-Ofiice Establishment of the United States the most efHcient agency of that character that can be found on the globe. 12. The Life-Saving Service. 13. The artificial propagation and distributiou of fish. 14. The distribution of seeds and other measures of vast importance in the promotion of agriculture. 15. The endowment of public schools, agricultural colleges etc., by grants of land from tlie public domain. 16. The Administrative Customs Act, which insures justice and equality in the collection of duties. 17. The International Copyright Law, which respects the rights of authors in the product of their brains, but at the same time protects our publishing industry by requiring that books shall be printed in this country to entitle them to copyright. 18. The establishment of the Circuit Court of Appeals, to re- lieve the Supreme Court and no longer require litigants to suffer a delay of three or four years in securing a decision on appeal. 19. The admission of the States of Kansas, Nebraska, Nevada, Colorado, North and South DSItota, Washington, Montana, Idaho, Wyoming and Oklahoma, 20. The Anti-Trust Act. (This was drawn by Senators Sher- man and Edmunds, and introduced by the former. In the House its passage was secured by William McKinley against an attempt to have it sidetracked in behalf of a bill for the free coinage of silver, which received the vote of every Democratic member with one exception. So it may be said that the law was placed upon the statute books over the united opposition of the Democratic Party as represented in the House.) 21. The National Bankruptcy Acts of 1867 and 1898, which relieved many thousands of unfortunate men from their burdens of debt and restored them to commercial or industrial activity. 22. The establishment of the Gold Standard, which placed our monetary system on a stable basis and in harmony with the great nations of the world. 23. Every schedule of duties on imports adopted within the past fifty years, in which the policy of protection to American labor has been distinctly recognized and efficiently applied, hae been the product of a Republican Congress. 24. Railway rates to be fixed by enlarged Interstate Com- merce Commission; rebates and other discriminations penalized; sleeping cars, express companies and pipe lines made oommen carriers ; railway passes prohibited. 25. Panama Canal to have 85-foot level, with locks ; Panama Canal bonds to enjoy same privileges as all other United States bonds ; Panama Canal supplies to be domestic products. 26. Pure Food : Label must tell the truth, especially ob popular remedies. 27. Meat Inspection, "from hoof to can," at Qoremment ex- pense. 28. Free alcohol, denatured, for use in the arts. 29. Consular service reorganized on merit basis. 30. Quarantine against yellow fever nationalized. 31. Financial law whereby banks in periods of financial ■tringenoy may issue currency to the amount of $500,000,009, df REPUBLICAN LABOR LEGISLATION. 243 positing- as security therefor bonds, commercial paper or other assets, such emergency ciirrency being- so taxed as to insure its retirement as soon as the stringency lias passed. 33. National monetary commission created to devise a sound monetary system for the Government. 33. Consular service reorganized, abolishing unnecessai-y con- sulships and consulgeneralships and establishing those most needed. 34. Widows' pensions increased from $8 to $12 a month and certain unnecessary restrictions abolished. 35. Importation of impure tea, tea sittings, etc., prohibited. 36. Model child labor law for District of Columbia. 37. Employers' liability law. 38. (jovernment compensation law, providing compensation to certain federal employees for injuries received in line of duty. 37. Eestrictions on lands of the Five Civilized Tribes re- moved, adding $150,000,000 to taxable property of Oklahoma. Ri^id Elnforcement by the Adininistration of the E^lgrht- hour La-vv. [Extract from letter of Attorney-General MOODY to all United States District Attorneys. November, 1906.] "By order of the President your attention is called to the provisions of 'An Act relating to the limitation of the hours of daily service of laborers and mechanics employed upon the public works of the United States and of the District of Columbia,' approved August 1, 1892, commonly known as the eight-hour law. "The Government is determined upon a strict enforcement of this statute and you are directed diligently to investigate all complaints which may come to you from any source of violations of this law, and upon your own initiative to make investigation if there appears to you to be any reasonable grountl for suspecting violation of this law. In every case in which you will secure sufficient evidence you will submit that evidence to the Grand Jury, with a view to securing an indict- ment. *•♦♦***•* "I desire to impress upon you the importance of using every effort to execute these directions; of being vigilant and active in this matter. You will make prompt and full report to me of all cases, and your action thereon, with your reasons there- for. You will report immediately the action of the Grand Jury and the result of all trials, with a specific statement of the penalty imposed." State Legislation. A political party must be judged not by what it proposes to do, but by what its adhei*ents actually accomplish when in office. The laws which the representatives of a party enact as legis- lators, rather than the party platforms, are the true index to the real policy of that jjarty. The Democratic party has for man3^ years posed as the friend of the workingman, and during the present campaign special emphasis will be given to this pre- tension. Let us see, therefore, what the two parties have act- iially done in the way of legislation for the protection of the wage-worker. According to the provisions of the Constitution, labor legis- lation is almost entirely within the province of the individual States, the powers of the Federal Government being restricted in this respect to employment in the Government service or Federal public works and in interstate commerce, to seamen, to immi- gration, etc. We must, therefore, draw our conclusions mainly from the labor legislation enacted by the several States. For the piirpose of the present study States having Eepublican legisla- tures at the present time are regarded as Eepublican States and vice versa. A study of the history of labor legislation in the United States will disclose the fact that nearly all such legislation originated in Eepublican States and was afterwards adopted by the Demo- 244 REPUBLICAN LABOR LEGISLATION. cratic States. At the present time the statute books of the dif- ferent States show a decided preponderance of protective hibor legislation in the Kepublican as compared with the Democratic States. This is l)rouglit out in the following- sunnnary table, which shows Mic number and per cent of Jlepublitian and Demo- cratic States which have enacted each of the important classes of labor laws indicated : Republican iStales. Democratic States. legislation In force January 1. 1908. Vumber. Per cent of all Re- publican States. Nuviber. Per cent of all Demo- cratic States. Creating labor bureaus 26 23 13 18 .,16 23 24 26 18 12 15 23 10 17 14 28 87 77 43 60 53 77 80 87 60 40 60 77 33 57 47 93 7 6 2 4 2 4 13 9 10 3 6 19 2 5 1 12 44 Creating factory Inspect'OT services Providing for free employment bureaus.. Providing for boards of conciliation and arbitration 37^ 25 Establishing a compulsory 8-hour day for labor on public works 12^ Pro'iibiting employment of children un- der 11 years of age in factories 25 Limiting hours of labor of children Restricting employment of children of school age and of Illiterate children Prohibiting niglit work by children ^ Prohibiting employment of children in operating or cleaning dangerous ma- chinery _. 81 56 62l^ 19 Limiting hours of labor of women. Requiring seats for females in shops or mercantile establishments 37^ 621^ Regulating sweatshops 12^ 81 Requiring wages to be paid weekly, fortnightly or monthly.. Protecting members of labor organiza- tions 6 Protecting the union label 75 An examination of those tables presents an interesting lesson in practical politics. We shall take up in rotation each of the more important subjects of labor legislation, and see which States have done the most for £he workingman. Labor Bareans. There are few agencies which have done more toward giving a clear insight into the problems of labor and capital, that have brought emi)loyer and employee nearer together, or that have furnished the laboring people with." facts for arguments in favor of protective legislation, than bureaus of labor and labor statis- tics. The above table shows that at present there are 33 State labor bureaus in the United States. Of these 26 are in Republican and 7 are in Democratic States. Reducing these figures to a pro- portionate basis, we find that 26 out of 30 Republican States, or 87 per cent, have labor bureaus ; 7 out of 16 Democratic States, or 44 per cent, have labor bureaus. Factory Inspection Service. It is well known to all working people that protective labor laws are practically a dead letter in any State unless there is a factory inspection service organized for the purpose of search- ing out and bringing to justice persons who violate such laws. It is easy enough to enact protective legislation, but it is another thing to enforce it. If a State, therefore, enacts such laws and fails to organize a service for their enforcement, it is deceiving those whom it pretends to favor. Let us again observe the tables. We find that 23 out of 30 Republican States, or 77 per cent, have laws creating factory inspection services. We also find that 6 out of 16 Democratic States, or 37^ per cent, have factory inspection services. In examining the other sub- jects of lahor legislation which follow, we must not lose sight of the fact that only 6 of the Democratic States have made provision for factory inspection services for the purpose of carrying out the provisions of the lahor laws which will he under consideration. REPUBLICAN LABOR LEGL^LATION. 245 Free E^inployment BnreaiiH. The movement to establish free public employment bureaus, where working people in search of work and employers desiring- help mig-ht be brought together without expense to either, was started in Ohio by the passage of a law requiring the labor bureau of that State to establish agencies in the leading cities. Other States followed Ohio's example, until at present laws pro- viding for such agencies have been enacted in 15 States. Of these 13 are Republican and 2 are Democratic. Boards of Arltitratlon and Conciliation. Twenty-two States have enacted laws providing for either State or local boards of conciliation and arbitration. Of these 18 are Republican and 4 are Democratic States, Eigrlit-hour LaTV. For many years labor organizations have been endeavoring to secure legislation prohibiting labor on government work.s or public contracts for more than eight hours per day. At the present time 18 of the 46 -States have such laws on their statute books. Of these 16 are Republican and 2 are Democratic. In addition to these 4 Republican States and 1 Democratic State have laws declaring- eight hours to be a legal working day in the absence of a contract. Child Labor. Ever since the introduction of the factory system, over a century ago, the greatest sufferers from the greed of inconsid- erate and cruel employers have been the helpless children, who often at a tender age are placed in factories. It is a principle recognized in all civili/ed countries that children under 14 years of age should not*be employed in factories, and nearly all civi- lized countries have laws placing a minimum age limit of 14 years upon such child labor. In our country 27 States prohibit the employment of children under 14 years of age in factories. Of these, 23 are Republican and 4 are Democratic States. !Many States have enacted laws placing certain restrictions upon the emploj^ment of children, usually 16 j^ears of age, and in some cases even u]>on the employment of all minors. Of this class are laws limiting the hours of labor of children in fac- tories or stores, Avhich have been enacted in 37 States. Of these 24 'vre Republican, and 13 are Democratic States. Thirty-five States have placed restrictions upon the employ- ment of children of school age or of illiterate children, of which 26 are Republican and 9 are Democratic. Twenty-eight States prohibit night: work by children. Of these 18 are Republican and 10 are Democratic States. Fifteen States prohibit the employment of children in op- erating dangerous machinery or cleaning machinery in motion. Of these 12 are Republican and 3 are Democratic States. Woman Labor. Next to the children, the greatest victims of abuse by incon- siderate employers when iinrestrained by law are women. In- vestigations have shown that their condition is sometimes pitiful where employers are given free scope in their employment. Their protection, in the interests of humanity and morals, has also been the subject of legislation in nearly all civilized coun- tries. In the United States 21 States have enacted laws which limit the hours of labor of women. Of these 15^ are Republican and 6 are Democratic States. Tt is interesting to notice that of the 15 Republican States lim- itlug the hours of laltor of women,- 12 provide for factory in- spection, while of the 6 Democratic States mentioned, only 3 make such provision. Seats for Females irf Shops. Legislation on this subject needs no comment. Any man who has a sister or daughter employed in a shop or store, and every I4« RBPUBLIOAy LABOR LEGI8LAT10V. physician, knows what a hardship it is to a woman to be coBi- pelled to stand all day at a bench or behind a counter. Fortu- nately, in 33 States legislation has been enacted requiring em- ployers to provide seats for females. Of these 33 States, 23 are are Repubiican and 10 are Democratic. Siveatsliop Learlttlatlon. There is no greater menace to the health of the working people and nothing which tends more to lower and degrade hu- man beings, than to crowd them together in small, filthy work- shops, where they are often compelled to work, eat and sleep without regard to health or morals, and where the hours of la- bor are often so long that the victims, who are usually foreigners unacquainted with cur language, are shut out from all oppor- tunities for education or betterment of any kind. The scenes observed in these shops by official investigators have been re- volting beyond description. Long ago efforts have been made to regulate these sweatshops, and 13 States have enacted laws looking to this end. Of these 12 States 10 are Republican and 2 are Democratic. "Wagre Payments. In order to insure the prompt payment of workingmen's wages in cash when due, 22 States have enacted laws requiring employers to p?y wages weekly or fortnightly, and in some in- stances prohibiting a longer interval than one month between pay-days. Of these 17 are Republican and 5 are Democratic. Protection of Members of Labor Organizations. Fifteen States have enacted laws, that are now in force, pro- hibiting employers from discharging persons on account of mem- bership in labor organizations, or from compelling persons to agree not to become members of' labor organizations as a con- dition of securing employment or continuing in their employ. Of these all but one are Republican States. Protection of tlie Union Label. Forty States have passed laws allowing trade unions to adopt labels or trade-marks to be used to designate products of the labor of their members, and prohibiting the counterfeiting or the use of such labels or trade-marks by unauthorized persons. Oi these States 28 are Republican and 12 are Democratic. This Is an era of ^reat combinations both of labor and of capital. In many ^rays these combinations have worked for Sood, but they must -work under the la^v, and the la^vs con- cerningr them must be just and wise or they will inevitably do evil; and this applies as much to the richest corporation as to the most powerful labor union.— Presitlent Roosevelt at Charleston, S. C, April 9, lOOa. That whenever the need arises there should be a read- justment of the tariff schetlnles is undoubted; but such chanires can with safety be made only by those whose devo- tion to the principle of a protective tariff is beyond uuestion, for otherwise the chargres would amount not to readjustment but to repeal. The readjustment when made must iuaintain and not destroy the protective principle.— President Roose- velt's speech acceptin^jr 1004 nomination. Efflclent resntation Is the very antidote and preventive of socialism and g^overnment ownership. '1 he railroads, until noTV, have been permitted to ^vield without any real control the enormously important franchise of furnlshiujur transportation to the entire country. In certain respects they have done a marvelous work and have affor|i:tc4c * *« « •^9SJ9f M9f^ j •»J!qscIuiBH ^9N i •B}[SBjqax [ •BUBijaoptt I _^ "B^josanniw | •uBSjqaiH j * ♦ * * * * * * * ■iljasnqoBssBpi •auiBK * * * * ♦ . * * * * * * * •SBSUBX I •BM.OI I ■BUt?ipUI I JSIOUIIII f •oqBpi i •ajBAviqaa I •opBJOjoo [ •BIUJOJIIBO ! a ■a ■a "He ! u O O °5 '■4-1 O I t^ G "^ 1-1 x: '•-I V S « £ 03 C fan s>«5 ^ .9 uotaoa c-S ,,*^ 2.3^=5 = 35 < f-i fcH >, !B a I ^ a ot make tlie Inio. On the other hand, there is no decision by Judge Taft that can be cited that indi- cates personal antipathy or a personal unfriendliness on his part to labor organizations. 248 JUDGE TAFrS LABOR DECISIONS. 249 Some of the Public Actions of William H. Taft Especially Helpfnl to Organized Labor; Tlie words of Jndge Taft in tlie Arthur and Phelan cases, in 1893-4, settini^- fortli the rights of labor or«ania;ation» under the la>v, >vere invoked an»l applied in favor of labor unions in the ease of the strike on the Waliash Railroad in 1903, and an injunction against the union Chinese labor into the islands, and unequivocally declared himself against brfnging the v»ork- men of our new de->endencies ov those in our o^vn land, into competUion with the cheaper labor of the c4vilizatlons lower than our ottu. Mr. Taft's Decisions Relative to Labor. Frederick N. Jiidson, the attorney for the Railroad Brother- hood ill the Wabash case, says : "There i- no foundation, therefore, for the suggestion that the de- cisions of Judge Taft were in any pense unfriendly to labor."' One should read in the Review of Reviews for Aiig-nst, 1907, what Mr. Jndson says of the whole series of Jiidg-e Taft's labor decisions. The first of these decisions was delivered by Judge Taft in 1890 in the case of Moores vs. Bricklayers' Union et al. This case involved the application of the law to what is known as a secondary boycott: that is, a hoifcott not (i(/(iiiifit an em- pJoyer, hut ug'aiiusi a tliird party dealuig iclih an employer, who is a stranger to the controversy between the employer and the employee. Moores had sold lime to the employer, Parker Brothers, who had been boycotted by the union. Parker Brothers had been boycotted Ijecause of their refusal to pay a fine imposed upon one of their enii)]oyees and to reinstate a discharged apprentice. Moores, the plaintiffs, had been awarded damages by the jury on account of this secondary boycott, and it was this judgment of damages that was affirmed on appeal in an opinion by Judge Taft. This decision has been accepted as the correct exposition of the law ; and the secondary boycott, that is, a boycott against a stranger to the ti-ade dispute, has been practically abandoned by intelligent labor unionists as an unreasonable weapon. In other words, it has been conceded by the .ablest labor leaders that it is not good policy to punish one's friends— employers who are running union shops— for the purpose of defeating one's ene- mies. The labor decisions of Judge Taft while on the Federal bench related directly to the Federal character of such controversies, involving the power of the Federal Government to protect inter- state commerce. There were only two STich cases decided by him. The first of these was decided Ayiril 3. 1893. and was in the mat- ter of the sti'ike of the engineers of the Toledo and Ann Arbor Railroad. The engineers on strike refused to handle ears from complainants' road as long as the strike of the engineers on that road was unsettled. It is obvious that this action involved a pa- ralysis of the business of interstate commerce, The Toledo 250 JUDGE TAFTS LABOR DECISIONS. road thereupon applied for an injiinetiou against the eonnecting rdads, alleging a eombination violative of the interstate com- merce act. The engineers of the defendant company had no grievances of their own ; and their refusal to handle the freight of complainant's company was in no sense a strike for the bet- terment of their own conditions of service. Judge Taft's de- cision sustaining the injunction was accepted by the llailroad Brotherhood as a fair statement of the law under the peculiar conditions of the railroad service. In the following year, 1894, came the great railroad strike in- spired by the American Railroad Union, growing out of the strike of the Pullman employees at Pullman, Illinois. The offi- cials of the union demanded all railroads to boycott Pullman cars and to declare a strike of employees on any railroad on their refusal to declare such a boycott. The Cincinnati Southern, an in- terstate railway, was in the hands of a receiver, and it applied to the court for protection against one Phelan (a Socialist), an offi- cial of the American Railway Union, who was engaged in inciting a strike among the employees of the road. There was no com- plaint by the employees of this road. The demand was that all traffic should be suspended and business paralyzed, union shops closed, and union industries destrdjed, if necessary, until all the roads should consent not to carry Pullman cars. The purpose was to starve the public into compelling the Pullman Company to do something which the public had no right to compel it to do, and in the doing of this to inflict irreparable injury upon many industrfes emplojing union workmen and working union hours. If the unions had won in this strife, would not the price have been too great for the object attained? Phelan had used lan- guage defying the order of the court. After a hearing he was adjudged g-uilty of contempt in an opinion by Judge Taft, who at the same time emphasized the fact that employees had the right to quit their employment, but that they had no right to combine to injure their employ er in order to compel hint to withdraw from a mutually profitable relation with a third party for the pur- pose of injuring the third party, when the rehition thus so.ight to be broken had no effect upon the character or reward of their services. ' But as the purpose of the combination was to tie up interstate railroads, not as the incidental result of a lawful strike for the betterment of the employees' own condition, but as a means of injuring a third party, it was an unlawful combina- tion violative of the anti-trust act of 1890. Thus, if Phelan had urged a strike for higher wages, or to pi'eveut the lower! n<»- of wages, he would not have been liable for contempt, but he had no right to incite men to quit when they had no grievance of their own to redress, for it was then essentially a boycott and not a strike. The words of Judge Taft in the Phelan case, setting forth the rights of labor organizations under the law, were invoked and applied in favor of the labor unions in a notable case, that of a strike on the Wabash Railroad by the Brotherhoods of Railroad Trainmen and Firemen in 1903. The two brotherhoods, after failing to secure the advance wages and betterment of conditions demanded, had called a strike, and thereupon an injunction was filed by the railroad company against the officers of these broth- erhoods. The rights of organization and of representation, as set forth by Judge Taft, were made the basis of the argument by the attorney representing the brotherhoods, and the injunction was dissolved. It was said in the opinion rendered by Judge Adams that on the subject of the organization of labor and the rights of labor unions no one had spoken more clearly and acceptably than Judge Taft. The "Assumed Risk" Decision. One of the most notable services that Judge Taft rendered to organized labor while presiding over a court was with relation to "assumed risk" and "contributory negligence" on the part of a workman attempting to recover damages from an employer for injuries received while in the service of the latter. In 1895 the Supreme Court of Ohio, consisting of six judges, decided that Morgan, a coal miner, could not recover damages for injuries jUDaE TAFra labor DBOiaioys. 2ai received in the explosion of fire damp, notwithstanding the fact that the State required the mine owners to keep their mines free of fire damp ; that Morgan knew the company ignored the law, and therefore in accepting service with them he could not recover damages. A similar decision had been made in several other States. Judge Speer, who wrote the opinion in th« Morgan case, said: "One who voluntarily assumes a risk thereby walvw the provision- of the statute made for his protection." Not only did this decision place a premium upon lawbreaking, but it rendered nugatory every law, made for the protection of the laboring classes, that was not respected by the employers. Only a law-observing employer was liable to damag^es. The labor organizations introduced a bill in the General Assembly of Ohio to abolish this infamous doctrine of assimaed risk, but through the power of the railroads and other corporations and large em- ployers it was referred to a hostile committee and there buried. And now we come to the Narramore case, in which Judge Taft became the champion of the injured workman, and wrote a de- cision that, notwithstanding reversals in the higher courts and the bitter opposition of those who were opposed to abrogating the old doctrines, finally became in spirit and in letter the es- tablished law not only of Ohio, but of the nation. Narramore was a brakeman. His foot became tightly wedged in an imblocked frog, which was left open contrary to the law of the State, and he was run down by a train and left a cripple, with a wife and children to support. The company was indiffer- ent to the sufferings of the man and his family, and a suit was filed. The decision was against him, the railroad basing its de- fense on the decision in the Morgan case. The court in sub- stance said that Narramore knew that the company violated the law with regard to blocking of frogs ; that this violation was so flagrant and open that Narramore was bound to know of it ; and that even though he was free from fault himself, still he had no case, as he had assumed the risk of working under the conditions as he saw them. Narramore's case was then carried to the United States Circuit Court of Appeals, presided over by Judge William H. Taft. Here at last was a judge who was broad enough to look beyond the moldy precedents of the dark ages. He overthrew the barbarous doctrine of "assumed risk," and gave to the workman in every dangerous vocation the rights that had so long been withheld from him. This decision of Judge Taft was the advance agent of blocked frogs, covered cogwheels, and guarded machinery. It eventually led to the resurrection of all the laws of Ohio that had been enacted for the protection of working men and women and which had been nullified by the action of the Supreme Court in the Morgan case. He said in part : "The intention of the legislature of Ohio was to protect the employees of railways from injury from a very frequent source of danger by com- pelling the railway company to adopt a well-known safety device. And although an employeee impliedly waives a compliance with the statute and agrees to assume the risk from unblocked frogs and switches by continuing in the service without complaint, this court will not recognize or enforce such agreement. The imposition of a penalty for the violation of a statute does not exclude other means of enforcement, and to permit the company ta avail itself of such an assumption of risk by its employees is, In effect, to enable it to nullify a penal statute, and is against pi^ilic policy." Judge Taft was overruled, but the fight based on his opinions was continued until satisfactory statutes were secured. The Federal Courts and Organized Lalior. As early as August 28, 1895, in an address delivered before the American Bar Association at Detroit, Michigan, he said : " * -» Though the law of supply and demand will doubt- less, in the end, be the influence of fixing this division (between capital and labor), yet during the gradual adjustment to the changing markets and the varying financial conditions, capital will aurely have the advantage, unless labor takes united action. During the betterment of business conditions, organized labor, if acting with reasonable discretion, can secure much greater con- cessions in the advance of wages than if it were left to the slower operation of natural laws, and, in the same way, as hard times 252 JUDdhJ TAFTti LAIioR />A;r7.V/(>A'.S'. come on, the too eager employer may be restrained from undue haste in rediicino- wages. The organization of cay)ital into corpo- rations, with the position of advantage wliich this gave in a dispnte with single laborers over wages, made it absolutely necessary for labor to unite to maintain itself. For instance, how could working men, dependent on each day's wages for living, dare to take a stand which might leave them without employment if they had not by small assessments accumulated a common fund for their support during such emergency. • "I'he efficacy of the processes of a court of equity to pret^ent much of the threatened injury from the public and private nui- sances which it is often the purpose of the leaders of such sti'ike to cause, has led to the charge, which is j;erfectly true, thut judicial action has been nuich more efficieiir to restrain labor excesses than corporate evils and greed. If it were possible by the ise the remedy than they are to restrain nnlawfal injuries by labor unions. But I hnr,c had occasion to point out that the nature of corporate icron<}H is almost wholly beyond the reach of courts, especially those of the United states. The cor- porate miners and sappers of public virtue do not work in the open, but under cover; their purposes are generalli/ accompii-siu'd before they are known to ewist, and the traces of their ecil p-iths are destroyed and placed beyond the possibility of Icf/al proof. On the other hand, tlie chief wrongs committed by labor Unions are the open, defiant trespass upon property rights and rioia- tions of public order, wliich the processes of the courts arc hh'AI adapted both to punish and prevent. The ojx^ration of the interstate commerce law is an illus- tration of the greater difficulty courts have in suppressing cor- porate violations of law than those of trade unions. The dis- crimination between shippers, by rebates and otherwise, which it is the main purpose of the law to prevent, is almost as diih- cult of detection and proof as bribery, for the reason that b:)th participants are anxious to avoid its disclosures; but when the labor unions, as they sometimes do, seek to interfere witli interstate commerce and to obstruct its flow, they are prone to carry oi:t their purposes w^ith such a blare of trumpets and such open defiance of law that the proof of their gmilt is out of their own mouths. The rhetorical indictments against the Federal courts, that from that which was intended as a shield against coi-porate wrong, they ha\'e forged a weay)on to attack the wage-earner, is in this way given a specious force which a candid observer will be blind to ignore. As a matter of fact there is nothing in any Federal de- cision directed against the organization of labor to maintain wages and to secure terms of employment otherwise favorable. The courts so far as they have expressed themselves on the sub- ject, recognize the right of men for a lawfiil purpose to com- bine to leave their employment at the same time, and to use the inconvenience this may cause to their employer as a legiti- mate weapon in the frequently recurring controversy as to the amount of wages. It is only when the combination is for an unlawful purpose and an unlawful injury is thereby sought to be inflicted, that the combination has received the condemnation of the Federal as well as of State courts. Mr. Taft's Labor Record In tlie Pliillpi>ine». And now let every trade unionist follow Mr. Taft into the Philip])ines, and from the report of one of labor's most trusted representatives learn the truth ; learn whether Governor-Gen- eral Taft fitly represented the best that there is in our American civilization. If so, he relied not only \ipon the churches and the introduction of public schools to uplift a dependent people, but he encouraged the organization of unions on American lines to aid in the great work. No class of men will resent being imposed on more quickly than union workers, and those who have held up Mr. Taft as opposed to organized labor must now take the condemnation that honest men r>lace upon falsifiers. JUDGE TAFrS LABOR DECISIONS. 253 He wants no favors ; he wants what every self-respecting- trade unionist wants — justice, and he will get it from organized labor when the truth is illuminated and they understand him and knoAv his record. Mr. Edward Rosenberg, of San Francisco, was appointed by the American Federation of Labor a special commissioner to investigate labor conditions in the Far East. His reports were printed in the October and December (1903) numbers of the American Federationist, the official organ of the American Fed- eration of Labor. The contrast between the deplorable conditions of the wage-earner in the Hawaiian Islands and the satisfactory f^tate of affairs introduced bj^ the administration of Governor- General Taft in the Philippines is well bronght out by Mr. Rosen- Vierg's exhaustive study. In the December (1903) American Federationist, he says : "I w'ould say that * * the plea of the Europeans and Americans for Chinese labor is prompted by the desire to quickly enrich themselves with the aid of cheap Mongolian labor. * * "If, on the other hand, the j,rcsent policy of the Governtnent is con- tinued; if Chinese are excluded ; if opportimiiy is c/iven to labor to better its condition by the aid of tra'le t'"'ons: if "children are ed'.'ca*^<"d along American lines, and if the greed of European and American adventurers is not allowed to rule the Philippine Islands as it now rules the Hawaiian Islands, the American people in another generation will be able to point with justifiable pride to the success of democratic institutions among an Asiatic people, and forget in these achievements the injustice by the con- quest of arms of the Philippine Islands." With regard to conditions in the Philippines as inaugurated and maintained by Governor Taft, Mr. Rosenberg further says (American Federationist, October, 1903) : "The civil government is slowly but steadily proving to the Filipinos that American rule is really trying to make the Filipinos as fit for self-gov- ernment as the American people are ; that the purpose of American rule is not the exploitation of the natives, but their elevation. Should Chinese be allowed in here and the inevitable lowering of the already low wages take place, the xoork of the Commission v;ouhl be undone, and where now hope of a better day is springing up in the hearts of the natives, sullen despair and dangerous resentment would take its place. "My investigations as to the present system of exclusion, carried on under the laNv of April 20, 1902, shows that so far as it is known it effectively excludes the Chinese. * * "The trade unions constitute a great tnovlng force for the betterment of the conditions in these islands. H ith their aid ivU'jes have bee.i raised and many abuses abolished, and though the present "system is crude and faulty, steps are now being taken to place it 'on the well-tried trade union lines as adopted in the United States and afliliate the movement here with the American Federation of Labor. * * In June, 1899, the Filipino workers of Manila made the first attempt to organize trade unions. In a short time unions of barbers, cigar makers, tobacco workers, clerks, car- penters, w'ood workers, printers, lithographers, and other^ were formed. No attempt at federation was made until the return from Spain of Isabelo de los Reyes in June, 1901. Cleyes had been banished from Spain by the Spanish Government for urging reforms in the islands. He quickly suc- ceeded in federating the respective uhion^, and was cliocen President. He held this position for a little over a year. Many unions were organized during that period, the number of unions in June, 1902, being 150, with a membership estimated at 20,000. * *"' "The local American press and employers of labor generally denounced Reyes, resulting in his being charged, under an old Spanish law, "with con- spiring to raise wages of laborers.' In September, 1902, he was found guilty and sentenced to four months in jail. He served two months and was then pardoned by Governor Taft." Governor Taft pardoned the man not because he was not prop- erly convicted under the law, but because, as he said : "The statute is not in accordance with modern American views. The right of laborers to unite for the purpose of enhancing labor by withdrawing from the employment of those who make the demand for labor is generally conceded under American jurisprudence. In the new criminal code * * the American rules of jurisprudence are recognized, and no combination merely to enhance labor can be wrongful because of the excessive price requested or of the number engaged in the combination. For this reason, and because I do not think the statiite as construed to be in accordance with American principles, I shall pardon Isabelo d6 los Reyes and remit what remains of his sentence." Mr. Rosenberg speaks of a personal meeting with Governor Taft. What he says is now of particular significance, in view of the charge that some have made that Secretary Taft only became favorable to organi.^ed labor after he became a candidate for the Presidency. The quotation from Mr. Rosenberg's report follows : "On June 21 Governor Taft returned from Baguio, the summer capital of the civil government, and on the 23rd I had an inter- yiew with him, desiring to know the attitude of the 'Governor 254 JUDGE TAFrS LABOR DECISIONS. towjird the organ i/atlon of the workers. He said he favored the oricuiiizMtion of tlie workers in trade unions, and had so stated, l)ut that the Union Obrera Deniocratica de Filipinas of late had only harmed the cause of the workers, and the courts had to interfex-e. He wished success to the present movement to orjiani/e the workers on proper trade union lines. He referred me also to certain })ortions of his report for the year ending' ()ct<)l)er 1, 1903. 1 quote the following' from Governor Taft's report : "During the year 1902 there has been a movement for the organization o/ labor in the city of Manila, which doubtless will spread to other pans of the islands. It has been regarded, becau.se of abuses which crept in, as an unmixed evil. I can not think it to be so. If properly directed, it may greatly as: ist what Is absolutely necessary here, to wit, the organization of labor and the giving to the laboring class a sense of tha.dignity of labor and of their independence. The labor organizations in the city of Manila are \ cry much opposed to the introduction of Chinese labor, and their declara- tion upon this point will find ready acquiescence in the minds of all Fili- pinos with but few exceptions. The truth is that, from a political stand- i.oint, the nnUmiteil introduction of the Chinese into these islands would he a great mistake. I believe the objection on the part of the Filipinos to such a iourse to be entirely loyical and justified. The development of these islands by Chinamen would" be at the expense of the Ifilipino people, and they may very well resent such a suggestion." BlackllNted Laborer Slionld be Allowed Injunction.— Injury of Railway Employee*. At the close of Mr. Taft's speech before Cooper Institute irt New York City on January 10, 1908, among other questions he was asked the following : ^'Why should not a blacklisted laborer be allowed an injunc- tion as well as a boj'cotted capitalist?" .Mr. Taft promptly answered : "He ought to be, and if I was on the bench I would give him one mighty quick." In Mr. Taft's speech at Columbus, Ohio, on August 19, 1907, he said, with regard to the injury of railway employees : "The frightful loss of life and limb an)ong the railway em- jjloyees of this country, reaching more than 4,000 killed and 65,000 injured in one year, has properly attracted the attention of Congress and the legislatures. It makes apparent that ser- vice in connection with trains of a railway is an extra hazardous business and may well call for Government supervision and ex- ceptional rules to secure the safety of the passengers and reduce the danger to employees." With regard to a statutory rule for liability of inter,state railways to employees, he said : • "Finally, it has regulated the rules for liability of an inter- 1 state railway company to an employee injured in its service, j This is a mo.st important measure, for an unfortunate lack of uniformity has existed heretofore in respect to the rules of lia- bility in such cases, dependent on the court in which the case has been tried. The new statute makes everything unifoi-m as to interstate railroads. It has introduced into the Federal law what is called the comparative neglig^ice theory by which, if an employee is injured, proof of negligence on his part does not forfeit his claim for damages entirely unless the accident was due solely to his negligence. If there was negligence by the company, the jury is authorized to apportion the negligence and award compen.sation for the proper part of the damage t( the employee and the question of negligence is always for the i"ry. "The most important provision of this law. however, is that abolishing what is known as the fellow-servant rule, by which an employee injured cannot recover from his employer for in- jury su.stained through negligence of a co-employee. This' rule was incorporated into the law by Chief Justice Shaw, of Massa- chusetts.* on the ground of public policy. It was acquiesced in by the courts of England and of this country. Whatever man have heen the wisdom of the rule orifihialhi, a chaiif/e of eon- ilitious justifies its ahroffatioii. JUDGE TAFT'S LABOR DECJSIOXS. 255 MR. TAFT'S ANSWERS, JANUARY 6, IfWm, TO ftllKSTIOXS I'RO- POINDKD BY THE PRESIDENT OE THE OHIO FEDERA- TION OF LABOR. Approves DeAiiint;- Parties' RiK'htN. "1 see no objection to the enactment of a .statute which shall define the rights of laborers in their controversies with their former employers. As this statute would fix the lawful limits of their action, it would necessarily furnish a definite rule for determiiung' the cases in which injunctions mig-ht issue, as well as their character and scope. It should be said that this statute, however, if enacted by Congress, could relate only to the Dis- trict of Columbia or some place within the exclusive juris- diction of the Federal government, or to those employers and em- ployees whose relations are within congressional definition and control. "Generally, the law governing the relation between employer and employee is a State law and is only enforced in the Federal courts when the jurisdiction arises by reastjn of the diverse citizenship of the parties. Speaking generally, however, both as to Federal and State legislation, 1 see no objection to a statute which shall, so far as possible, define the rights of both parties in such controversies more accurately. Indeed, the more exactly the lawful limitations on the actions of both parties are understood, the better for them, and for the public. Heariii;^ Before an lujunctiun. "Second. You ask me what I think of a provision that no restraining order or injunction shall issue, except after notice to the defendant and a hearing had. This was the rule under the Federal statute for many years, but it was subsequently abolished. In the class of cases to which you refer 1 do not see any objection to the re-enactment of that Federal statute. Indeed, I have taken occasion to say in puhlic speeches^ that the potver to issue injunctions ex parte has given rise to certain abuses and^ injustice to the laborers enyayed in a peaceable strike. Men lea•^'e employment on a strike ; counsel for the employer applies to a judg-e and presents an affidavit averring fear of threatened violence and making such a case on the ex parte statement that the judge feels called upon to issue a temporary restraining order. The temporary restraining order is served on all the strikers ; they are not lawyers ; their fears are aroused by the process with which they are not acquainted ; and, although their purpose may have been entirely lawful, their common deter- mination to carry throi^.gh the strike is weakened by an order which they never have had an op])ortunity to question, and which is caftulated to discourage their proceeding in their original purpose. To avoid this injustice, I believe, as I have already said, that the Federal statute might well be made what it was originally, requiring notice, and a hearing, before an injunction issues. "Third. In answer to your third question, it would seem that it is unnecessary to impost any limitation as to the time for a final hearing, if, before an injunction can issue at all, notice and hearing must be given. The third question is relevant and proper, only should the power of issuing ex parte injunctions be retained in the court. In such case, I. should think it emi- nently proper that the statute should require the court issuing an ex parte injunction to' give the person against whom the in- j uction was issued an opportunity to have a hearing thereon \\ ithin a very short space of time, not to exceed. I should say, three or four days. ^lij^lit Designate Aiiotlier Judgre. ''Fourth. Your fourth query is, in effect, what I would think of a ])rovision in such- cases by which the contemnor — that is, the person charged with the violation of an order of injunction — might objeet to the judge who issued the injunction as the one to try the issue whether the injunction had been violated, and to fix punishment in case of conviction, and thereby require 1250 JUDGE TAFTS LABOR DECISIONS. another judge to try the issue and impose sentence, if neces- sary. In Federal courts in such a case it would be proper to l)r()vidc tliat the senior circuit jiidge of the circuit should, upon the application of the defendant or coiiteinnor, designate anotlier district or circuit jndge to sit and hear the issue presented. I do not think such a restriction would be unreasonable. In most eases it would be unnecessary. But 1 admit that there is a popu- lar feeling that in contempt proceedings, and the Very name of the proceedings suggest it, that tlie judge issuing the injunction has a personal sensitiveness in respect to its violation and there- fore that he does not bring to the trial of the issue presented l)y the charge of contempt of his order the calm, judicial mind which insures justice. Opposes Jury Intervention. . "I thinlc that this popular feeling is, in most cases, iinfonnded, "but I believe that it is better, where it tan be done without injuring the authprity of the court and the efficiency of its process, to grant such a privilege to the contemnor and thus avoid an appearance of injustice, even at some inconvenience ill the matter of securing another judge. There is some analogy, though it is not complete, between the exclusion of a judge from sitting in the cor.rt of appeals to review a decision of his own, which now obtains in the practice of the Federal Court of Ap- peals, by statute, and the present suggested case. It is of the highest importance that the authority of the court to enforce its own orders effectively should not be weakened and therefore I am opposed to the intervention of a jury between the court's decree and its enforcement by contempt proceedings. It would mean long delay and greatly weaken the authority of the court. "I do not +hink that the permission to change the judge, how- ever, would constitute either serious delay or injure the efficacy of the order, while it may secure greater public confidence in the justice of the court's action. The appearance of justice is almost as important as the existence of it in the adminis- tration of courts." Conclndlns Remark. ' The foregoing facts, coupled with what is more generally known with regard to his great achievements as a jurist and a public official, shoidd appeal to every man of right I'easoning in such manner as to convince him that, as President of the United^ States, Mr. Taft's great intellect and power would be found valiantly contending for the rights of the laboring, pro- ducing people. Mr. Taft's O-wn VieTvs, Expressed in His O^vn "Wo#ds. Mr, Taft discussed this subject fully and frankly in his speech of acceptance of the nomination for the Presidency, delivered to the Notification Committee, at Cincinnati, July 28, 1908. The speech is printed in full in this volume, and the stiHlent of this subject is especial!;^ referred to that portion thereof which states his views in his own words and in such detail as this important subject deserves. THE LABOR DECISIONS OF JUDGE TAFT. By Frederick N. Judson, Attorney for the Railroad BrotherJiood, Reprinted from the August, 1907, Review of Revieics. The present Secretary of War, Hon. William Howard Taft, has had the exceptional experience of beginning his dis- tinguished public career with judicial service on the State, and thereafter serving on the Federal bench. He was justice of the Superior Court of Cincinnati from 1887 to 1890. and among his immediate predecessors in that court were Hon. Judson Har- mon, ex- Attorney-General of the United States; Hon. John r>. Foraker. ex-Governor and now United States Senator. After some two years' service as Solicitor-General under President \ JUDGE TAFT8 LABOR DECISIONS. %&1 Harrison, Mr. Taft was appointed judge of the Cii'cuit Court of the United States, holding- that position until 1900, when he resigned to accept the appointment of Governor of the Philip- pines. It has been intimated from time to time, though not very definitely, that certain decisions of Judge Taft while on the bench were unfriendly to organized labor. Such suggestion, analyzed in view of the ^position of the judiciary in our po- litical and judicial system, is really an imputation upon the intelligence of the electorate. A judge does not make the law, nor does he decide cases according to his private judgment of what the law ought to be ; but he declares and applies the rules of law to the facts presented as he finds them in the statutes or adjudged precedents, the recorded depositories of the law. It is true that our unwritten and non-statutory law has jeen termed judge-made law. But it is only in a very limited sense, if at all, that this expression is applicable to the case of an individual judge. His personality may be impressed upon the development of the law, as that of Judge Taft was doubtless impressed, by the clearness of his grasp of the fundamental principles of the law in their application to new conditions ; but his opinions must be in harmony with the current trend of judicial authority, and, in the last analysis, with the ad- vance of an enlightened public opinion. We have had frequent instances in this country where a judge, after leaving the bench, have become candidates for public office, but very rarely have the judicial decisions of a judge ever been discussed with refer- ence to his availibilitj^ for a public office. The reason is ob- vious. The high intelligence of our American electorate recog- nizes tha,t the judges do not speak their individual judgments, but, in the words of Blackstone, "are the living oracles of the law." who declare and applj^ the. laws of the land. It is to be assumed, therefore, that Judge Taft decided cases involving the rights and duties of labor and capital, as he decided other cases which came before him, according to the law and facts as presented for determination. It has not been intimated that he did not declare the law correctly, or that his decisions were bad law in any legal sense. What, therefore, is really meant by the suggestion is that the law as declared in certain decisions of Judge Taft was unsatisfactory to certain class interests. While this impersonal x^osition 'of a judge is clearly recognized, there is so much public interest in questions relating to the .legal rights and duties of com- binations, both in capital and laoor, that the decisions of Judge Taft in this class of cases should be clearly understood, and therefore will be briefly reviewed from a legal and not from a partisan point of view. Moores vs. Bricklayers' Union et al. The first of these opinions was delivered by Judge Taft while on the Superior Court bench of Cincinnati in 1890, in the case of Moores v-S'. Bricklayers' Union et al. (23 Weekly Law Bul- letin. 48). This case is interesting as involving the application of the law to what is known as a secondary boycott, that is, boycott not against an employer, but against a third party dealing with an employer, who is a stranger to the controversy between the emjiloyer and employee. Ihis was not an injunction suit, nor did it involve any issue between the employees and their employer, either directly or through any refusal to handle in other places the so-called "struck work" from the shop of the employer. It was a secondary boycott pure and simple, in the form of a suit for damages incurred by the plaintiff through a boycott by the Bricklayers' Union, declared on account of the plaintiff's selling lime to the employer, Parker Bros., who had been boycotted by the union. This primary boycott had been declared against Parker Bros, by the Bricklayers' Union because of their (Parker Ilros.') refusal to pay a fine imposed upon one of their eiu- ployees. a member of the union, and to reinstate a discharged a})prentice. Parker Bros, had brought suit and had recovered damages I 258 JUDGE TAFrS LABOR DECISIONS. before a jury in another court against the same defendants on account of "this same boycott (21 Weekly Low BuUct'ui, 22S.) Moore Bros., the plaintiflPs, had been awarded $2,250 damages by the jury on account of this secondary boycott, and it was this judgment which was attlrmed on appeal in an opinion by Judge Taft. The case has become a leading one on the law of boycotting. The right of legitimate com- petition in business with the incidental injuries resulting there- from, as illustrated in the then recently decided Mogul Steam- ship case in England, was distinguished by Judge Taft from the case then at bar, where the immediate motive of injuring plaintiff was to inflict punishment for refusing to join in the boycott of a third party. Such ^ a motive made the act malicious and legally unactionable in the case of an individual and a fortiori in the case of a combination. It was said, after reviewing the English cases : "We do not conceive that in this State or country a combination by vvorkingmen to raise their wages or obtain any material advantage is contrary to the law, provided they do not use such indirect means as obscure their original intent, and make their combination one merely malicious, to oppress and injure individuals." It was further said that a labor union could provide for and impose a penalty against any of their members who re- fused to comply with such regulations as the association made. They could unite in withdrawing from the employ of any person whose terms of employment might not be satisfactory to them, or whose action in regard to apprentices were not to their liking, but they could not coerce their employer by boycotting him and those who dealt with him ; that even if acts of this character and with the intent are not actionable when done by individuals, the^^ become so when they are the result of combination, because it is clear that the terrorizing of the community by threats of exclusive dealing in order to deprive one obnoxious member of means of sustenance would become both dangerous and offensive. This decision, subse- quently affirmed by the Supreme Court of Ohio without opinion, has been accepted as the correct exposition of the law, and the secondary boycott, so-called, that is, a boycott against a stranger to the trade dispute, has been practically discon- tinued and abandoned by intelligent labor unionists as an un- wi.se and unreasonable weapon in such controversies. Toledo and Ann Arbor Engrineers' Strike of 1893. The so-called labor decisions of Judge Taft while on the Federal bench related directly and primarily to the Federal character of such controversies, in that they involved the su- premacy qf the Federal power in the protection of interstate Commerce. Though there were only two such cases decided by him, the decisions attracted general attention on account of the widespread industrial disturbances in 1893-4. The first of these cases was decided April 3, 1893, in the matter of the strike of the engineers of the Toledo and Ann Arbor Railroad (54 Fed. Rep., 730). The engineers on strike were members of the Brotherhood of Locomotive Engineers, of which P. M. Arthur was the chief. Under the then rule of the brotherhood, known as rule twelve, the engineers in the employ of the connecting railroad companies, members of the brotherhood, refused to handle and deliver any cars of freight from complainant's road as long as the strike of the engineers of that road, who were members of the brotherhood, was un- settled. It was obvious that this involved practically a paralysis of the business of interstate commerce between the com- plainant and the defendant railroads. The Toledo road thereupon applied for an injunction against the connecting roads, al- leging the existence of a combination violativ^e of the Inter- state Commerce Act, preventing the performance of their duties in regard to interstate commerce in the exchange of traffic, and asked the court to enjoin this unlawful interference. A motion was filed by the complainant for a temporary injunction against Mr. Arthur to restrain him from enforcing rule twelve, where- under the employees of the defendant companies were re- fusing to handle the cars of the complainant company. JUDGE TAFTf^ LABOR DECISIONS. 259 The opinion of the Court by Judge Taft was notable in its clear expression of the power of a court in the issuance of a mandatory preliminary injunction where necessary to pre- vent irreparable injury. "The normal condition," it was said, — "the status (jtio, — between connecting- common carriers, under the Interstate Commerce law is a continuous passage of freight backward and forward between them, which each carrier has a right to enjoy without interruption, exactly as riparian owners have a right to the continuous flow of the stream without ob- struction." U.suall}^ the status quo in the injunction can be preserved until final hearing by an injunction prohibitory in lorin. but where the status quo is not a condition of rest, but of action, the condition of rest, that is, the stopjmge of traffic, will inflict irreparable injury not only upon the complainant but the public. In such cases it is only a mandatory injunc- tion compelling the ti'aftic to flow as it is wont to flow, which will protect the complainant from injury. The form of the remedy must be adapted to the emergency, and where the con- tinuity of interstate traffic is threatened an injunction mandatory in term is often the only efl'ective remedy. Still more important was the opinion in its clear analysis of the position of employees of railroads engaged in inter- state traffic, and their rights and duties as such employees under the interstate Commerce act. The relation of such employees to their railroad companies is one of free contract, and is not anaiogous to that of seamen in the maritime service, who, to a certain extent, surrender their liberty in their employment and are punishable for desertion. The employment, therefore, in the case of railroad employees, was terminable by either party. The court could not compel the enforcement of per- sonal services as against either the employer or the employed against the will of either. The court said especially was this true in the case of railroad engineers, where nothing but the most painstaking and devoted attention on the part of the em- ployed will secure a f)roper discharge of his responsible duties ; and it would even seem to be against public policy to expose the lives of the traveling public and the property of the ship- ping public to the danger which might arise from the en- forced and unwilling performance of so delicate a service'. While a court of equity could not speciflcally compel the per- formance of a contract for pei'sonal service, it did not follow that there were no limitations upon the right of employees to aljandon their employment, — that is, as to the time antf place of the exercise of such right (see remarks of Supreme Court in Lemon case, 166, U. S.), so as to avoid imperiling life or property. Though the relation of railroad employer and employed was one of free contract, the conrt also held that while the relation continues they were bound to obey the statute com- pelling the interchange of interstate traffic, and also bound by th^^ orders of the court enjoining their employer corporation from refusing such interchange. A combination of the em- ployees to refuse, while still holding their positions, to per- form any of the duties enjoined by law or by the court upon their employer, would be a conspiracy against the United States and punishable as such. The court therefore held that the mandatory injunction, was properly issued against Arthur, compelling him to rescind the order to the engineers in the employ of the defendant directing them not to handle complainant's freight. The engineers of the defendant companies had no grievances against their own employing companies ; and their refusal to handle freight of complainant companj^ was in no sense a strike for the betterment of their own conditions of service, and was therefore not a strike but a boycott, and this would necessarily paralyze the movement of interstate traffic. The eifect of. this decision was far-reaching. It was the ftrst judicial declaration of the duties of railroail employees in in- terstate commerce. It was^ followed in other circuits and was not only approved by the general public, but was accepted by the railroad brotherhoods as a fair statement of the laAv under the peculiar conditions of the railroad service. The result 260 jrnOE TAFrS LABOR DECISIONS. was the abro^-ation of rule twelve by the brotherhood of the eng-ineers. and since that time, as was sij^nally shown in the extensive railroad strike of the following' year, the raiii'oad brotherhoods, not only the engineers, but the conductors, lirenien, and trainman, have i)een conspicuous for their conservatism in the adjustment of dilVerences w?Mi the management of their respective companies The Plielnn Contempt Cane. In the following- year, 1894, came the great railroad strike inspired by the American Railway Union, growing out of the strike of the Pullman employees at Pullman, III. The officials of the union demanded all the railroads to boycott the Pullman cars, and declared a strike of the employees on any railroad on their refusal to declare such a boycott. The Cincinnati Southern, an interstate railway, was in the hands of a receiver, who had been theretofore appointed by the United States Court of Ohio, and the receiver applied to the court for protection against one Phelan, an official of the American Union, who was engaged in inciting a strike among the employees of the rail- road. There was no complaint by the employees of this road, as there had been none by the employees in the Arthur case, for the betterment of their condition of service. The demand was that all traffic should be suspended and business paralyzed until all the roads should consent not to carry Pullman cars. In the words of the court, the purpose was to starve the rail- road companies and the public into compelling the Pullman company to do something which they had no lawful right to compel it to do. It seems that a restraining order had been issued by the court prohibiting interference with the manage* ent of the receiver in the operation of the road, and Phelan had used language defying his order. He was thereupon attached for contempt, arid after a hearing was adjudged guilty of con- tempt in an opinion by Judge Taft (62 Fed. Rep., 803). The opinion emphasized the same distinction which had been pointed out in the Arthur case in the preceding year. The employees had the right to quit their employment, but they had no rigl;t to combine to injure their employer, in order to compel him to withdraw from a mutually profitable i-elation with a third party for the purpose of injuring the third party, when the relation thus sought to be broken had no elt'ect whatever upuJi the character or reward of their services. As the purpose of the combination was to tie up interstate railroads, not as an inci- dental result of a lawful strike for the betterment of the employees' own conditions, but as a means of injuring a third party, it was an unlawful combination, violative of the anti- trust act of 1890. It was also a direct interference with intei*- state commerce. Thus, if Phelan had come to Cincinnati and had urged a strike for higher wages, or to prevent lowering of wages, he would not have been liable for contempt, but he had no right to incite the men to quit, when they had no grievances of their own to redress, as it was then essentially a boycott and not a strike. It was in this Phelan case that Judge Taft, in determining the limits of the rights of labor organizations, made this lucid and notable statement of the extent of their rights, which has been frequently quoted : The employees of the receiver had the right to organize into or join a labor union which would take action as to the terms of their employment. It is a benefit to them and to the public that laborers should unite for their common interest and for lawful purposes. They have labor to sell. If they stand together they are often able, all of them, to obtain better prices for their labor than dealing singly with rich employers, because the necessities of the single employee may compel him to accept any price that is offered. The accumulation of a fund for those who feel that the wages offered are below the legitimate market value of such labor is desirable. They have the right to appoint officers, who shall advise them as to the course to be taken in relations with their employers. They may unite with other unions. The officers they appoint, or any other person they choose to listen to, may advise them as to the proper course to be taken, both in regard to their common em- ployment ; or if they choose to appoint any one, he may order them on pain of expulsion from the union peaceably to leave the employ of their employer because any of the terms of the employment are unsatisfactorj. JUDGE TAFT8 LABOR DECISIONS. 261 This declaration of the right of organization and repre- sentation of., labor unions has often been cited and quoted in support of the unions, and was applied, as will be seen, most effectively in their behalf in the Wabash strike of 1903. The jurisdiction of the United States courts in the pro- tection of interstate commerce, and the supremacy of the Fed- eral power in such questions, were therefore fully sustained by the Supreme Court of the United States (see in re Debs case, 158 U. S., 564; also in re Lemon, 166 U. S. 548). The reason of the prompt acceptance of this application of the iaw by Judge Taft was the universal recognition that a boycott by railroad employees in interstate commerce, as distinguished from a strike, was impracticable and inadmis- sible, in view of the paramoimt public interest concerned. It is true that in ordinary tracte disputes the public convenience and even public necessities are not always given the weight they should have. But wherever interstate or foreign commerce are involved the public interest is made paramount by the laws of the United States. All classes of the community, working- men as well as capitalists, are interested in the proper trans- mission of the nTails and in vae uninterrupted passage of person and freight. This principle of the protection of commerce gainst interruption has become firmly intrenched in our juris- prudence. Under the law declared in these cases, our com- merce is subject to be interrupted only by the incidental injury resulting from cessation of service, and not by boycotts or sympathetic strikes not related to the bettering of the con- ditions of the employees' service. That this principle is firmly established is primarily owing to the clear and courageous enun- ciation of the law by Judge Taft. The Addyston Pipe & Steel Company Case. The same principle of the freedom of interstate commerce from illegal restraint declared in the Arthur and Phelan cases was also held by Judge Taft to apply to^ a business com- bination, or a "trust," in the Addyston Pipe & Steel Company case (85 Fed. Rep., 271). In this case there was an allotment of territory, comprising a large part of the United States, among a number of companies engaged in the manufacture of iron pipes, and in that territory competition was eliminated through this allotment of territory, and through a system of pretended bidding, giving an appearance of competition, at pub- lic lettings, when in fact there was no competition. The de- cision of the Court of Appeals, rendered by Judge Taft, was afterward affirmed by the Supreme Court of the United States. His opinion is a notable contribution to the law, in its masterly analysis of the essential distinction between the legitimate con- tracts in restraint, of trade, which are merely ancillary, or incidental, to some lawful contract, and necessary to protect the enjoyment of the legitimate fruits of that contract, and the agreements where the sole object is a direct restraint of com- petition, and to enhance and maintain prices. These latter agreements are unenforceable at common law, and are violative of the anti-trust act when made with reference to interstate commerce. The distinction here so clearly pointed out has been the basis of the construction of the anti-trust act by the United States Supreme Court in all its subsequent decisions. Jndgre Taft's Opinion Supports the Union In Wabasb Strike Case. The words of Judge Taft in the Phelan case quoted above, setting forth the rights of labor organizations under the law, were directly invoked and applied on behalf of the labor unions in a notable case, that of the threatened strike on the Wabash Railroad by the Brotherhoods of Railroad Ti*ainmen and Fire- men in 1903 (121 Fed. Rep., 563). In this case, the represent- atives of these two brotherhoods, after failing to secure the ■advance of wages and betterment of conditions demanded by the brotherhoods, had been forced to call a strike as their last 262 .libiit: TAFTS LABOR DECISIONS. resort, antl thjrei.poii an injuiu'tlon was filed by the railroad rompany, in the I'nited States Circuit Court in St. Louis, ag'aius^ the otfieers of these brotherhoods, enjoining' thein from ealling a strike on the Wabash, as an interstate railroad, on the ground, among others, that the ofhfials of the brotherhoods were not employees of the railroad, and that their action in ccnnbining- in calling a strike would l)e a direct interference with inter- state commerce, and was therefore an unlawful conspiracy. The rights of organization and the rights of representation, as set forth by Judge Taft, were thus directly involved. The writer represented those brotherhoods in the hearing on the motion to dissolve the injunction granted in this case, and used the above quoted statement of Judge Taft as the most lucid and effective defense of the action of the brotherhoods and their officials. The Court (Judge Adams) found from the evidence that there was an existing dispute ai>owt the conditions of ser- vice on the railroad, and that the officials of the brotherhood had been directed by the members of the brotherhoods to call a strike; that they had a right to be represented in siich matters by their own officials, and that the two unions had a right to act in unison in their effort to secure the betterment of the conditions of their members, that an agreement to strike under those circumstances was not an unlawful conspiracy, and the injunction was therefore dissolved. It was said in the opinion that on the subject of the organization of labor, and the right of labor unions, no one had spoken more clearly and acceptably that Judge Taft, in this language above quoted. (After the dissolution of the injunction, the differences be- tween the railroad and its employees was amicably adjusted, and the threatened strike was averted.) Thus, while the law was declared by Judge Taft as to i^he limitations upon the lawful actions of labor unions, the es- sential principles involved in the right of organization were also announced by him in the same opinion. This right of or- ganization of workingmen in the unions would be futile with- out the right of representation by their own officials in the effort to secure the betterment of their conditions. The rem- edies adopted by workingmen, sometimes Uiistaken remedies for the enforcement of their rights, such as the closed shop and the boycott, are only weapons for the enforcement of the fundamental right of collective bargaining for the common bene- fit. There is no foundation, therefore, for the suggestion that the decisions of Judge Taft were in any sense unfriendly to labor, and it is clear that through his lucid declarations of the rights of labor the railroad brotherhood secured the judicial vindication of their rights of combiuation and of rep- resentation in their demands for the betterment of their con- ditions. While these important decisions were rendered by Judge Taft. declaring the freedom of interstate commerce from il- legal combination both of labor and capital, the limitations upon the rights of organized labor, as well as the essential principles involved in the right of organization for the better- ment of their conditions, it would be an imputation upon the brilliant judicial record of Judge Taft to siiggest that in any of these opinions he declared the law as a friend of any class, or that he made any j ulioial utterance in any of the cases otherwise than a living oracle of the 1aw% bound to declare, in every case brought befoi-e him. not his own private judg- ment, but the judgment of the law. 'William H. Taft as a .Tned crowded the court-room with identifying- badges conspicuously displayed. Judge 'lal't read his opinion m liie case and ordered tjuit riielau be confined in jail for six months. Then he stepped from the rostrum and went to his private room. There was not the .slightest sign of trepidation in his manner or a hesitating note in his voice as he delivered his judgment. \ Months after, I'helan, released from jail, went to Ludlow, ,k suburb of Cincinnati, where most of the railroad men who had gone on strike at his command resisted. The agitator who had counseled violence of a radical kind was touched by the sulfering among the families of the strikers, many of them still out of employment. I'helan wanted to help them, and curiously enough the man to whom he applied for advice and assistan-^e was JiHlge Taft. He called at the Judge's office in company with another man and w^as received without any delay. "Hello I I'hcian," said Judge Taft, "what can 1 do for you?" A gentle- man who was present on that. occasion vouches for the state- ment that Phelan explained his business in words somewhat to this effect : "Judge, 1 came to tell you that I neyer realized what great .suffering I would create until 1 went to i^udlow this morning. Tin willing to , serve another six months or "a year if you'll help me to get work for these men. All those who went out on strike and who testified that they went out through sympathy only, told an untruth^ and so did I, for I was sent here by Debs to take these men out as I saw fit." Rut sti'ongly as his sympathy was aroused by what Phelan said. Judge Taft held that it would be improper for him to make any suggestion to the railroad company to give emj5loy- ment to its former employees. "I can't tell the railroad people how to run their business," he said. This incident is told merely to show the wonderful human sympathy which Taft possesses and which he makes people understand. Phelan, in spite of the scoring and the punishment he had received from Taft, felt that he would find the stern judge a kind friend, and his reception proved that be was not mistaken. Taft never bears malice. He is as willing to forget as he is to forgive when satisfied that a fault which he condemned had been honestly atoned for. Long years of work on the bench did not produce in him the idea that he is not as other men. There is no false dignity about him. Off the bench he is as jovial as could be. While on the bench he maintained a dignity that was impressive, but not repellant. Whatever he does, he does as part of the day's work, not hampered by any ideas of his greatness. ^ He is too busy to think about his own personality. THE STATli,SMA%SHIP OF WILLIAM H. TAFT IN THK OIliKNT. For the last ten years the policy of the United States in re- gard to its position and future as a Pacific power has been marked by a degree of vigor and directness comparable only with its attitude toward all questions involving the application or interpretation of the Monroe Doctrine. And rightly so; be- cau.se among the great powers whose territories border on the Pacific Ocean, the United States is most intimately concerned in the future of that vast area around which are grouped nine hun- dred millions of people, or more than half the population of the globe. IiiiI>ortanee of the Orient aiitl Oriental Markets. Speaking in the United States Senate in 1852. William H. Sew- ard said: "Henceforth, European commerce, European politics, p]uropean thought, and European activity, although actually gaining force, and European connections, although actually be- MR. TAFT IN THE ORIENT. 267 coming more intimate, will, nevertheless, relatively sink in im- portance ; while the Pacific Ocean, its shores, its islands, and the vast i-eg-ion bej^ond will become the chief theater of events in the world's gi*eat hereafter." The purchase of Alaska, which was the work of Seward, was dictated by a desire to grasp the opportunity to become the foremost of Pacific powers ; the ac- quisition of Hawaii was a testimony to the necessity of exclud- ing foreign control from a commanding position in mid-Pacific ; the taking of the Philippines was justified on the ground that we needed an emporium of trade and a place of arms to be ready against the time when other powers might be moved to dispute the right of the United States to enjoy equality of commercial opportunity in the great markets of Eastern Asia. We have made the construction of a canal across the Isthmus of Panama a national enterprise, primarily because it was needed to enable all sections of our country, and the Southern States, most of all, to have the full benefit of the present and future profit of the commerce of the Pacific. That our Government re- gards this enterprise sfs one of supreme importance to the na- tional welfare has been sufficiently demonstrated by the uncom- promising vigor and resolution with which it has treated the ob- stacles interposed to its execution. If the extension of the influ- ence of the United States has been anywhere pursued in obedi- ence to the call of "manifest destiny," it has been on and around the Pacific Ocean. If there be one point more than another where a check to our influence would dwarf the role which this Ilepublic is fitted to play on the stage of history it would be here. Tlie Open Door Insisted Upon. > President Eoosevelt recognized that fact when he declared that sovereignty has its duties as well as its rights, and that no local Central American Government would be permitted in a spirit of Eastern isolation to close the gates of intercourse on the great highways of the world. Among these gates, the Pan- ama Canal is destined to occupy the most prominent place. In the words of President Roosevelt : "It is to alter the geography of a continent and the trade routes of the world." But if no South American State can be permitted to encumber the trade I^assing by wa3' of Panama, with such unjust relations as would prevent its general use, neither should it be possible to have the great neutral markets to which this trade is destined monopo- lized without even the pretense of rightfully acquiring sover- eignty by any power which can bring enough military force to overawe the power already in possession. It was this consideration which prompted the memorable dec- laration of Secretary Hay, eight years ago, in regard to the open door in China : "The policy of the Government of the United Stales^: is to seek a solution which may bring about permanent safety and peaoe to China, preserve Chinese territorial and ad- ministrative entity, protect all rights guaranteed to friendly pow- ers by treaty and international law, and safeguard for the world the principle of equal and impartial trade with all parts of the Chinese Empire. In other words, the United States Government is opposed to the partition of China, and asserts that it has the right to a voice in the settlement of China's future." The acquisition of the Philippines doubtless tended to give the American people a new perception of the magnitude of their interests in Eastern Asia, and the Boxer rising of 1900, with all its attendant obligations, brought the problem of the Far East home to our people in a way that perhaps no other combination of circumstances could have done. But, apart from all this, an educational influence had been at work which impressed on the public mind the necessity of this country playing as large a part in the unsettled questions of Asia as its commercial and indus- trial future demanded that it should. Had the colonial Empire of Spain not fallen to pieces before the assault of th^ naval and military power of the United States, had there been no acute crisis in Chinese affairs demanding our intervention in common with the other treaty powers, there would still have come to our people a perception of the fact that they could not afford to sit idly by while the markets of Asia were being gradually closed 268 MR. TAFT JN THE ORIENT. ugaiust them by powers whose interests there were less in mag- nitude than their own, unci whose right to extend a foreign colo- nial system in detianee of the treaty rights of other nations rested on no solid basis of necessity or equity. Oriental Trn«lo U|>|»ortiiiiitii'N I'^Mpeeiiiliy liii|M>r- lias and this country needs better paid, better ertuoated. better fed. and better clothed Tvorkinsrmen, of a liiRlier type than are to be found in any foreign country. It has and it needs a lii«lier, more vigorous, and more pros- perous tyi.-e of tillers of tlie soil than is possessed by any other country.— President Roosevelt at Minneapolis, April 4, 1903. I believe it to be highly beneficial and entirely Ifiwfal for laliorers to unite in their common interests. They have labor to sell, and if they stand together they are often able, all of them, to command better prices for their labor or more advantageous terms of employment than when deal- ing singly, for the necessities of the single employee may compel him to accept any terms ofl'ered Uim. The accumu- lation of funds for the support of those who propose to enter into the controversy with the employer by striking; is one of the legitimate ol»Jects of such organization. Its members have the right to appoint officers who shall advise them as to the course to be taken by them in their relations to their employer, and if the members choose to repose such authority in any one the officers may order members, on pain of expulsion, avoid as- suming an attitude in the campaign which it is quite possible I shall never have the right to assume, but so far as my personal influence is concerned I am anxious to give it for the passage of the bill. Very sincerely yours, WILLIAM H. TAFT. Since writing the above, in answer to inquiry, I have said publicly that I hoped such a bill would pass. Corporation Contribntlons. The next step in the Democratic campaign wdth reference to election funds was the insertion in their platform adojited at Denver in July, 1908, of the following plank; We pledge the Democratic party to the enactment of a law pro- hibiting any corporation from contributing to the campaign fund and any individual from contributing an amount above a reasonable amount and providing for thie publication before election of all contributions above a req.8onable minimum. In taking this second step with reference to campaign funds and pledging the Democratic party to the enactment of a law prohibiting any corporation from contributing to the campaign fund, Mr. Bryan and his associates seem quite as late as Mr. Bryan was personally in his proposal to Mr. Taft, since it is a fact that the Republican party in Congress had, more than a year he fore the meeting of the Democratic convention, passed in both houses and enacted into law the very proposition which the Democracy pledged themselves to accomplish, viz. : "prohib- iting any corporation from contributing to a campaign fund." The law enacted by a Republican House and a Republican Senate in January, 1907, and signed by a Republican President on Jan- uary 26, 1907, did the very thing demanded by the IJemocratic convention of 19(i8, and did it eighteen months prior to the meeting of that convention. The Act passed in Januai-y, 1907, by a Republican House and a Republican Senate and signed by a Republican President January 26, 1907, is as follows: 272 PUBLICITY OP CAMPAIGN COKTRlBtlTIONf^. 273 Be it enacted by the Senate and House of Representatives af the United States of America in Congress assembled, That it shall he unlawful for any national bank or any corporation organized by authority of any laws of Congress to malce a money contribution in connection with any election to any political office. It shall also be unlawful for any corporation what- ever to make a money contribution in connection with any election at which Presidential and Vice-Presidential electors or a Representative in Congress is to be voted for or any election by any State Legislature of a United States Senator. Every corporation which shall make any contribution in violation of the foregoing provisions shall be subject to a line not ex- ceeding five thousand dollars, and every officer or director of any cor-. poration who shall consent to any contribution by the corporation in violation of the foregoing provisions shall upon conviction be punished by a fine of not exceeding one thousand and not less than two hundred and fifty dollars, or by imprisonment for a term of not more than one year, of both such fine and imprisonment in the discretion of the court. - Thus in the second step in the Democratic campaign with reference to political funds, they find themselves following along lines in which the llepublicans had already taken action. Publicity Before Election. Not only had the ReiJublicans, long before this recommen- dation of the Democratic National convention enacted a law prohibiting corporation contributions to campaign funds, but the Kepublican party in the House had, by unanimous vote of its members, passed an Act requiring complete publicity of all cam- paign contributions, this publicity to be made through state- ments filed with the Clerk of the House of Representatives NOT LESS THAN TEN DAYS BEFOKE THE ELECTION FOK WHICH THESE FUNDS WERE CONTRIBUTED. Eoery vote cast for this J)ill was cast hy a Pepublican, and every vote cast against it was cast hy a Democrat. ■ ^ While the Democratic vote was ostensibly cast against the bill because of the fact that it required a report from the Census with reference to the number of votes cast in Southern States and a comparison thereof with the number of white and colored citizens of voting age, the fact remains that the Democratic party in Congress, irrespective of sectional lines, preferred to sacrifice complete i:)ublicity in campaign contributions and expenditures rather than couple with it i^ublicity regarding the suppression, by their own party leaders, of the elective franchise as guaranteed by the Constitution of the United States. Democratic Pledge of Publicity Relates to Only a Part of Its Fund. Another important contrast between the methods proposed by the Democratic candidates and committee and those proposed by the Republican candidates and committee is in the EXTENT to which publicity is to be carried in reference to the amount of contributions received. The Democratic com- mittee, on the recommendation of Mr. Bryan and Mr. Kern, passed a resolution at its meeting at Fairview, Mr. Bryan's residence, to the effect that "it will accept no indiHdual con- tribution above $10,000, and that it will make public before election all individual contributions above $100.'' This promise, therefore, is merely that the committee will make public before election a statement of all contributions ABOVE ONE HUN- DRED DOLLARS in amount, but it makes no promise that any statement will be made of the total sum' received, the sums which it proposes to publish being simply "ALL INDIVIDUAL CONTRIBUTIONS ABOVE ONE HUNDRED DOLLARS." Thus all contributions reaching the committee in checks or sums less than $100 would not be subject to publication or announcement of any kind. Under this proviso of the Democratic publicity plan, those desiring to avoid publicity in contributions in excess of $100 could readily do so by dividing the proposed gift into as many separate contributions of $100 or less as might be re- quired to make the total of the larger sum. As illustrating the misleading and vague nature of these Democratic promises, it is not improper to call attention to the fact that Mr. Bryan, in the same issue of the Commoner in which he announces with a flourish of trumpets this action as having been taken upon the recommendation of himself arid Mr. Kern, makes an ai^peal to the farmers of the United States, 874 PUBLICITY OF CAMPAIGN CONTRIBUTIONS. an appeal signed by himself and Mr. Kern as the candidates of the Democratic party, for contributions of $J00 or less, saying: "There are luindreds of thousands of fanners who are abundantly able to contribute to the campaign fund; thei-e are thousands who could ^ive $100 apiece without feeling it; there are tens of thousands who could give $50 apiece without feeling it, and still more who coidd give $25 or $10 "or $5." lie asks the farmers to make contributions through his own paper, the Commoner, to a farmers' fund to be turned over to the 13emo- cratic National Coirtmittee. The last Census of the United States shows that the total number of farms in the United States (and therefore the total number of farmers) was, in 1900 5,739,657 ; and presumably there must be at the present time over 6 million farmers. Supposing one-third of these to be Democrats, this would give two million individuals appealed to by Mr. Bryan and Mr. Kern to give sums of $100 downward. Should one-half of this number respond to the appeal the number of contri- butions from the farmers alone would thus be 1 million. Sup- posing that their contributions were the lowest named by Mr. Bryan and Mr. Kern — $5 each — this would give from the farmers alone a campaign fund of $5,000,000, NOT ONE PENNY OF WHICH IS PROPOSED TO BE IN ANY WAY JIEPOKTED BY THE DEMOCRATIC NATIONAL COMMITTEE in its vaunted publicity of campaign contributions, and this, of course, would also leave all contributions from all other classes when be- low $100 in amount, likewise a matter of absolute secrecy with the Democratic National Committee. Contrast this incompleteness of campaign publicity with the plan proposed by the bill which (printed in full on another page of this volume) passed the Republican House of Repre- sentatives May 12, 1898, being supported by every Republican present and voted against by every Democrat whose vote was recorded. That bill provided that the treasurers of political committees should, not less than 10 days before the election, file with the Clerk of the House of Representatives a statement showing the name and address of each person, firm, association, or committee which had coutribiited $100 or more; also, THE TOTAL SUM OF ALL CONTRIBUTIONS IN AMOUNTS LESS THAN ONE HUNDRED DOLLARS, and, third, THE TOTAL SUM OF ALL CONTRIBUTIONS. The promise of the Democratic National Committee is merely to make public a statement of the amount received in contri- butions of MORE THAN $100 EACH. The plan proposed by the Republicans and unanimously supported by them, was to make public before election the total sum of ALL CONTRIBUTIONS, whether contributed in sums below or above the $100 line. Publicity aa to Expenditures Proposed by Republicans but not Mentioned by Democrats. Still another and even more striking contrast in the pub- licity plans proposed by the Democrats and those by the Re- publicans is found in the fact that the Democrats promise publicity merely with reference to contrihutions, and then only as to those exceeding $100 each, but promise no publicity with reference to the objects for which any coutributious are EX- PENDED; while the Republican plan proposes publicity as to ALL MONEYS received and all moneys EXPENDED. The reso- lution of the Democratic committee is absolutely silent as to any publicity regarding expenditures. The Act passed by Re- publican votes in the House of Representatives provides that the treasurers of political committees shall report to the Clerk of the House prior to the election "an itemized statement," showing "the name and address of each person, firm, association or committee to whom such political committee, or any officer, member, or agent thereof has disbursed, contributed, loaned, advanced, or promised any sum of money or its equivalent of the amount of value of $10 or more and the purposes thereof, and the TOTAL SUM SO DISBURSED * * * where the amount or value of such disbursement * * * is less than $10." The lew of New York State, under which the Treasurer of the Re- publican National Committee promises to conduct his work PUBLICITY OF CAMPAIGN CONTRIBVTIOXS. 275 of receipts and expenditures also requires complete statements of "a// receipts, expenditures, (Jishursements and liabilities of the committee and of every officer, member or other person in its behalf." To sum up : The publicity demand of the Democrats for exclusion of corporation contributions to campaig-n funds comes 18 months after a Republican Cong-ress had enacted and a Re- publican President signed a law prohibiting- such contributions ; Mr. Bryan's belated proposal for an appeal to Congress in behalf of publicity came weeks after Mr. Taft had made such an appeal to Congress, and the kind of publicity promised by the Democratic National Committee includes only a small propor- tion of the sums which it will receive, AND NO PUBLICITY AS TO EXPENDITURES; while the Republican promise of publicity includes the total of all sums contributed and COM- PLETE PUBLICITY AS TO EXPENDITURES. The Publicity Pledges of tlie Democratic Platform and Committee. The publicity promise of the Democratic platform of 1908 reads as follows : "We pledge the Democratic party to tbe enactment of a law prohibiting any corporation from contributing to a campaign fund and any individual from contributing an amount above a reasonable maximum, and providing for the publication before elections of all such contributions." The publicity promise of the Democratic National Committee of 1908, adopted at the suggestion of Mr. Bryan (as stated in the "Commoner" of July 24, page 4) is as follows: Resolved: That the Democratic National Committee, in pursuance to the pledge given in the National platform recently adopted at Denver, announces that it will accept no contributions whatever from corporations ; that it will accept no individual contributions above $10,000, and that it will make publication before election of all individual contributions above $100. Contributions received before October 15th being published on or before that date and contributions received after that date being published on the date upon which they are received, and that no contributions above $100 shall be accepted within three days of the election." Some Occasions Wlien Mr. Bryan did not Desire Publicity. Mr. Brj^an's anxiety for publicity with reference to campaign funds seems to be a matter of comparatively recent develop- ment, since charges have been publicly made by the New Y^ork World and other leading newspapers that Mr. T. F. Ryan, in the campaign of 1904, contributed a large sum to the Demo- cratic campaign fund, of which $20,000 was sent to the Demo- cratic State Committee of Nebraska, which was attempting to elect a Democratic legislature for the purpose of sending Mr. Bryan to the Senate ; and although Mr. Bryan made the assertion that if it proved true he would personallj^ refund that entire sum, no record has been made of any refund by him or of a disproval of the World's charges ; while Mayor Dahlman, of Omaha, in an interview widely disseminated frankl^y admits the receipt of a contribution from the committee, which he says was disbursed by him in the vain effort to swing Nebraska in the Democratic column, and adds "the money did good, and while Roosevelt carried the State by something like 83,000 majority, Berge lost it by less than 10,000 votes. If we had had $15,000 more we would have carried the State for Berge, our candidate for Governor." Commenting upon Mr. Bi'j^an's recent attitude with reference to contributions to his campaigns, the New York World (Demo- cratic) of June 1, 1908, has the following: Mr. Bryan says that if Thomas F. Ryan contributed either directly or indirectly to the Nebraska campaign fund in 1904 he will personally repay every cent of the contribution. Why this sudden sensitiveness in regard to Mr. Ryan? Mr. Bryan allowed the silver-mine owners to con tribute $288,000 to his campaign fund in 3 896 and there could be no more sordid purpose than that which prompted those contributions. Mr. Bryan allowed William A. Clark, of Montana, to contribute to his campaign fund, and there -has been no more notorious corruptlonist in American politics. Mr. Bryan gladly accepted political assistance from Richard Croker, and there is no great mystery as to where Mr. Croker got it. A candidate who could be grateful to Clark and Croker need not be overly squeamish about Ryan. Besides, Mr. Ryan's Nebraska money was spent in a most sanctified cause. The Hon. Jim Dahlman proudly asserts that he disbursed it ; that not a cent of it was used to help Parker, and that it was all devoted to the State campaign. Had a fusion Legislaure been elected, Mr. Bryan would have been sent to the United States Senate, and Mr. Ryan's tainted contributions would have been doubly sanctified. 276 PUBLICITY OF CAMPAIdN COXTRIBUTIOyS, The New York World in its special publication issued in February, 1908, entitled "The Map of Bryan ism; Twelve Years of Denui^of-y and Defeat" says, ( paj^es 1:3. Ki and 14): If the obvious self-interest of the silver miners in the 16 to 1 crusade carried on by Democrats and Populists in 1896 had l)een as well understood as it should have been the names of these men would be as closely associated in the public mind with the Silver Trust as Ro.ckefeller's is with oil or AiMuour's is with beef. The ])eople have been made well acquainted in recent years with the names of the men interested in beef, in oil, in tobacco, in coal, in copper, in iron and steel and in other com- modities the production and sale of which is believed to be f?ov- erned by trustsu Plow many of them know or have heard tlie names of the producers of silver, in whose behalf you. Mi-. Bryan, worked as zealously as any trust lawyer ever did for his client? When the Republicans, after many years of evasion, finally refiised to take uj) the cause of the miners, the latter naturally sought the assistance of the Populists and the Demo- crats, and their reception was more cordial than they had dared to hope for. As you yourself will doubtless aj2;-ree, the most powerful advocate thus gained was William Jennings Bryan, of Nebraska. Here is a list of some of the gentlemen who assisted in fi- nancing your theory that 50 cents' worth of silver bullion ought to be worth a dollar : Contributions to Mr. Bryan's CnnipaiKn Fund. Marcus a Daly, Montana, principal owner of the Anaconda Mine. This sum of $159,000.00 represents Mr. Daly's own contribution and sums collected by him $159,000.00 David H. Moffat, First Natioml Bank, Denver, Col 18,000.00 W. S. Stratton, Colorado ov.ner of Independence Mine .. 12.000.00 William A. Clark, ofc Montana 45,000.00 Dennis Sheedy, Colodado National Bank, Denver, Col 7,500.00 Charles D Lane, of California 15 000.00 D. M. Hyman, Denver, Col 7,500.00 Other C-^lorado mining intere ts 6,000.00 Utah mining interests 18,372,70 The Treasurer of the fund was J. R. Walker, of Walker Bros., Bankers, Salt Lake City. The chief individual con- tributors were as follows : J. E. Bamberger, President Daly-West Mining Company .... 250.00 W. W. Chisholme, Mine owner 250.00 John Beck, Mine owner 500.00 T. R. Jones, Ore buyer 250.00 O. J. Snlsbury, Mine owner 500.00 Frank Knox, President National Bank of Republic 100.00 J. McGregor, Mine owner 300. 00 Centennial Eureka Mine 1.500.00 Daly-West Mining Company 500.00 W. S. McCormick. President Utah National Bank 300.00 First National Sank of Park City 500-00 Salt Lake Valley Loan and Trust Company 500.00 Daly Mining Company 1,000.00 Bullion-Beck Mine 1,000.00 P. Farnsworth, Manager Bullion-Beck Mine 250.00 R. C. Chambers and others, owners Ontario Mine 2,000.00 Swansea Mining Company 200.00 Mammoth Mine 249.00 Mammoth Mine employees 120.00 Mammoth Mining Company 1,000.00 Eureka Hill Mining Company 242.00 Gemini Mining Company 152.00 Godiva Mining Company employees 34.00 Swansea Mining Company 69.00 John Beck. Mine owner 300.00 Bullion-Beck Mine employees 537.00 Geyser Mine employees 116.00 Horn Silver Mine employees 307.00 John Beck 200.00 Total contributions of the silver mine owners to your campaign fund $288,000.00 These contributions, as you doubtless know, Mr. Bryan, were all recorded in the books of the Democratic National Com- mittee, although |n your eloquent appeals for publicity of politi- cal contributions you have never referred to the fact that the silver interests financed your Presidential campaign. It Is better for llils t'oiiiitry to fee«l. elotlie, nnd lionse our ««vn lnl>or In this country than to sni>j>ort fi»rel>4n labor ii| other countries >vith our nione^-.— H. K. Thurber. PUBUGITY OF CAMPAIGN CONTRIBUTIONS. 277 The New York World on tlie Ryan Contribntion to the iXebraska Cainpaigrn Fnnd of 1904. [From the New York World. May 30, 1908.] After the Democratic National Convention of 1904 had nomi- nated Alton B. Parker for the Presidency, William J. Bryan returned to his home in Nebraska and began a quiet campaign to secure for himself a seat in the United States Senate. The State legislature to be elected in November, 1904, would have the choosing of a senator. It was the hope of Mr. Bryan and belief of his friends that by an aggressive campaign Nebraska could be carried for the Democracy and that a Democratic legis- lature would elect him to the senate. At the St. Louis conven- tion Mr. Bryan had assailed fiercely Judge Parker as a candidate of plutocratic interests and had attacked by name August Bel- mont and other New Yorkers who were backing the Parker campaign. After a "week of reflection Mr. Bryan announced in a formal statement that he would support the ticket, but with the following threat: "As soon as the election is over I shall, with the help of those who believe as I do, undertake to organize for the campaign of 1908, the object being to marshal the friends of popular government within the Democratic party to a su})port of a radical and progressive policy to make tht^ Democratic party an efficient instrument for securing relief from the plutocratic element that controls the Republican party and, for the time being, is in control of the Democratic party,'' Within two months after this declaration, there was accepted for Mr. Bryan's interests the sum of $20,000, contributed by the prince of plutocrats, Thomas F. Ryan. T. S. Allen is the brother-in-law of Wm. J. Bryan. He married a sister of the Nebraska candidate. Mr. Allen was chairman of the Democratic State Central Committee of Nebraska in 1904 and still holds that office. He is the confidant and recognized political agent of Mr. Bryan. The Democratic National Campaign of 1904 was named chiefly by August Belmont and Thomas F. Ryan. Each gave $50,000 to start the campaign fund, and after election had to make up a considerable deficiency. William F. Sheehan and De- Lancey Nicoll were their principal political advisers. Thomas Taggart held the nominal position of chairman of the Committee, bit the four men named were in control. Mr. Bryan knew them, their records, and the interests they had at stake. p:arly in the fall of 1904, Mr. Allen, the brother-in-law of Mr. J^rj^an, came to New York to consult the campaign man- agi>rs and to solicit funds to promote the Nebraska campaign, which had for its principal object the election of Mr. Bryan to the United States Senate. Mr. Allen had a conference with Mr. Sheehan and Mr. Nicoll. He did not see Mr. Ryan, but the two lawyers reported to the financial backers, Ryan and Belmont, the progress of the negotiations. As a result, Mr. Ryan agreed to contribute personallj^ $20,000 to help along the Nebraska campaign. In order to disguise the source of this contribution, Mr. Ryan gave his check to Mr. Sheehan, who in turn gave other checks for the amount to Mr. Allen. The New Y'orli>osed by all Democrats. A bill (H. R. 20112) providing for publicity of contributions made for the purpose of influencing elections at which Represent- atives in Congress are elected, prohibiting fraud in registrations and elections, and providing data for the apportionment of l{ep- resentatives among the States. Be it enacted, etc.. That the term "political committee" under the provisions of this act shall include the national committees of all p'o- litical parties and the national Congressional campaign committees of all political parties and all committees, associations, or organizations which shall in tw'o or more States influence the result or attempt to in- fluence tne result of an election at whicli Representatives in Congress are to be elected. Sec. 2. That every political committee as defined in this act shall have a chairman and a treasurer. It shall be the duty of the treasurer to keep a detailed and exact account of all money or its equivalent re- ceived by or promised to such committee or any member thereof, or by or to any person acting under its authority in its behalf, and the name of every person, firm, association, or committee from whom re- ceived, and of all expenditures, disbursements, and promises of pay- ment or disbursement made "by the committee or any member thereof, or by any pers'on acting under its authority or in its behalf, and to whom paid, distributed, or disbursed. No officer or member of such committee, or other person acting under its authority or in its behalf, shall receive any money or its equivalent, or expend or promise to expend any money on be- haii of such committee until after a chairman and treasurer of such qom- mittee shall have been chosen. Sec. 3. That every payment or disbursement made by a political com- mJttee exceeding $10 in amount be evidenced by a receipted bill stating the particulars of expense, and every such record, voucher, receipt, or ac- count shall be preserved for fifteen months after the election to which it relates. Sec. 4. That whoever, acting under the authnrity or in behalf of such inlitical committee, whether as a member thereof or otherwise, re- ceives any contribution, payment, loan, gift, advance, deposit, or promise of money or its equivalent, shall, on demand, and in any event within five days after the receipt of suoh contribution, paym.ent, loan, gift, advance, de- posit, or promise, render to the treasurer of such political committee a detailed account of the same, together with the name and address from whom received, and said treasurer shall forthwith enter the same in a ledger or record to be kept by him for that purpose. , Sec. 5. That the treasurer of such political committee shall, mot more than fifteen days and not less than ten days before an election at which Representatives in Congress are to be elected in two or more States, file in the oflRce of the Clerk of the Hnu«e of Representatives at Washington, D. C , with said Clerk, an itemized detailed statement, sworn to by said treasurer and conforming to the requirements of the following section of 280 J'UBLICITY OF CAMPAIGN COyTRUiUTKmS. this act. It snail also be the duty of said treasurer to flk' a similar and final .--tatouicnt with said Clerk within thirty days after such election, such final statinitnt also to be sworn to by said ^treasurer, and. to conform to the requiicuicnts of the following section pf^thla act. The stattinents so filed with the Clerk of the House shall be preserved by him for fifteen months, and shall be a part of the public records of his office, and shall be open to public inspectioir. Skc. 6. That the statements required by the preceding section of this act shall state : First. The name and address of each person, firm, association, or com- mittee who or which has contributed, promised, loaned, or advanced to such polltkal committee, or any officer, member, or agent thereof, either in one or more items, mjDney or Its equivalent of the aggregate amount or value of $100 or more. Second. The total sum contributed, promised, loaned, or advanced to such political committee, or to any officer, member, or agent thereof, in amounts less than $100 ; Third. The total sum of all contributions, promises, loans, and ad- vances received by such political committee or any officer, member, or agent thereof ; Fourth. The name and address of each person, firm, association, or committee to whom such political committee, or any officer, member, or agent thereof, has disbursed, distributed, contributed, loaned, advanced, or promised any sum of money or its equivalent of the amount or value of $10 or more, and the purpose thereof ; Fifth. The total sum disbursed, distributed, contributed, loaned, ad- vanced, or promised by such political committee, or any officer, member, or agent thereof, where the amount or value of such disbursement, distri- bution, loan, advance, or promi.se to any one person, firm, association, loan, advance, or pl-omise to any one person, firm, association, or committee in one or more items is less than $10 ; Sixth. The total sum disbursed, distributed, contributed, loaned, ad- vanced, or promised by such political committee or any officer, member, or agent thereof. Sec. 7. That every person, firm, association, or committee, except po- litical committees as hereinbefore defined, that shall expend or promise any sum of money or other thing of value amounting to $'50 or more for the purpose of influencing or controlling, in two or more States, the result of an election at which Representatives to the Congress of the United States are elected, unless he or it shall contribute the same to a political com- mittee as hereinbefore defined, shall file the statements of the same under oath as required by section 6 of this act in the office of the Clerk of the House of Representatives, at Washington, D. C, which statements shall be held by said clerk in all respects as required by section 5 of this act. Sec. 8. That any person may in connection with such election incur and pay from his own private funds for the purpose of influencing or con- trolling, In two or more States, the result of an election at which Repre- sentatives to the Congress of the United States are elected, all personal expenses for his traveling and for purposes incidental to traveling, for sta- tionery and postage, and for telegraph and telephone service, without being subject to the provisions of this act. Sec. 9. That the foregijing provisions of this act shall not apply to the proprietors and publishers of publications issued at regular intervals in re- spect to the ordinary conduct of their business, and nothing contained in this act shall limit or affect the right of any person to spend money for proper legal expenses in maintaining or contesting the results of any elec- tion. Skc. 10. That every person willfully violating any of the foregoing provisions of this act shall, upon conviction, be fined not more than $1,000 or imprisoned not more than one year, or both. Sec. 11. That if, at any election for Representative or Delegate In Congress, or at any primary election for the nomination of a candidate for Representative or Delegate in Congress held in pursuance of State or Territorial law, any person knowingly personates and votes, or attempts to vote, in the name of any other person, whether living, dead, or fictitious ; or votes more than once at the same election, or primary election, for any candidate for the same office; or votes at a place where he may not be lawfully entitled to vote ; or votes without having a lawful right to vote ; or does any unlawful act to secure an opportunity to vote for himself, or any other person: or by force, threat, intimidation, bribery, reward, or offer thereof, unlawfully prevents any qualified voter of any State or of any Territory from freely exercising the right of suffrage, or by any such means induces any voter to refuse to exercise such right, or compels or in- duces by any such means any ofiicer of an election or primary cfecLion In any such State or Territory to receive a vote from a person not legally qualified or entitled to vote, or interferes in any manner with any officer of such election or primary election in the discharge of his duties, or by any such means or other unlawful means induces any ofllcer of an election or primary election, or officer whose duty it is to ascertain, announce, or declare the result of such election or primary election, or give or make any certificate, document, or evidence in relation thereto, to violate or re- fuse to comply with his duty or any law regulating the same, or knowingly receives the vote of any person not entitled to vote, or refuses to receive the vote of any person entitled to vote, or aids, counsels, procures, or ad- vises any such voter, person, or officer to do any act hereby made a crime or omit to do any duty the omission of which is hereby made a crime, or attempts to do so, he shall be punished by a fine of not more than $500 or by imprisonment not more than three years, or by both, and shall pay the costs of the prosecution. Sec. 12. That if at any registration of voters for an election for Rep- resentative or Delegate in Congress, or for any primary election for the nomination of a candidate for Representative or Delegate in Congress held in pursuance of State or Territorial law, any person knowingly per.sonates and registers, or attempts to register in the name of any other person, whether living, dead, or fictitious, or fraudulently registers or fraudulently attempts to register, not having a lawful right so to do, or does' any unlaw- PUBLICITY OF CAMPAIGN CONTRIBUTIONS. 281 fill act to secure registration for him or any other person, or by force, threat, menace, intimidation, bribery, reward, or offer, or promise thereof, or other unlawful means, prevents or hinders any person having a lawful right to register from duly exercising such right, or compels Or induces by any iDf such means, or other unlawful means, any oilicer of registration to admit to registration any person not legally entitled thereto, or interferes in any manner with any officer of registration in the discharge of his duties, or by any such means, or other unlawful means, induces any officer of registration to violate or refuse to comply with his duty or any law regu- lating the same, or if any such olTicer knowingly and willfully registers as a voter any person not entitled to be registered, or refuses to so register any person entitled to be registered, or if any such officer or other person who has any duty to perform in relation to such registration or election or primary election, in ascertaining, announcing or declaring the result thereof, or in giving or making any certificate, document, or evidence in re- lation thereto, knowingly neglects or refuses to perform any duty required by law, or violates 'any duty imposed by law, or does any act unauthorized by law relating to or affecting such registration or election or primary elec- tion, or the result thereof, of any certificate, document, or evidence in relat- tion thereto, or if any person aids, counsels, procures, or advises any such voter, person, or officer to do any act hereby made a crime, or to omit any act the omission of which is hereby made a crime, every such person shall be punished by a fine of not more tlian $500 or by imprisonment not more than three years, or by both, and shall pay the costs of the prosecution. Every registration made under the laws of any State or Territory for any State or other election, or primary election at which such Representa- tive or Delegate in Congress may be nominated or elected, shall be deemed to be a rep'istration within the meaning of this section, notwithstanding such registratipn is also made for the purposes of any State, Territorial, or municipal election, or primary election. Sec. 13. That every officer of an election at which any Representative or Delegate in Congress is voted for, or any primary election for the nom- ination of a candidate for Representative or Delegate in Congress, whether such officer of election be appointed or created by or under any law or au- thority of the United States, or by or under any State, Territorial, district, or municipal law or authjarity, who neglects or refuses to perform any duty in regard to such election or primary election required of him by any law of the United States, or of any State or Territory thereof, or who violates any duty so imposed, or who knowingly does any acts thereby unauthorized with intent to affect any such election or primary election or tne result thereof, or who fraudulently makes any false certificate of the result of such election or primary election in regard to such Representative or Delegate, or who withholds, conceals, or destroys any certificate of record so re- quired by law respecting the election of any such Representative or Dele- gate or primary election for the nomination of a candidate for such Rep- resentative or .Delegate, or who neglects or refuses to make and return such certificate as required by law, or who aids, counsels, procures, or ad- vises any voter,^, person, or officer to do any act by sections 11 or 12 thereof made a crime, or to omit to do any duty the omission of which is by this or any of such sections made a crime, or attempts to do so, shall be punished by a fine of not more than $500 or by imprisonment not more than three years, or by both, and shall pay the oDsts of the prosecution. Sec. 14. That for the purpose of enabling Cjngrts.s to apportion Rep- pre?-entatives among the several States in accordance with the plan pro- vided in the second section of the fourteenth amendment to the C'onsitution, the Director of the Census, as soon as practicable after each decennial cen- sus of population, shall submit to Congress a report of the population by States as shown by such census, which report shall also show the number of male citizens, white and colored, respectively, in each State, 21 years of age and over, the number of such male citizens in each State found to be illiterate, the number of votes cast by male citizens in each Congres ional district at the last preceding general election, the number of such male citizens in each State that had not complied with the registration and elec- tion laws therein requiring the payment of a poll or property tax as a con- dition precedent to the right to register or vote, and the number of such male citizen in each State to whom the right to vote at any election for tue choice of electors for President and Vice-President of the United States, Representatives in Congress, the executive and judicial offices of the State or members of the legislature^ tliereof, has been denied or in any way abridged except for participation in crime. Sec. 15. 'that all prosecutions under this act shall be commenced within one year after the commission of the offense, and shall be brought in the United States circuit court within the district in which such offense oc- curred. The bill passed the house by a vote of 161 to 126, the Repub- licans voting solidly in the affirmative, including the Speaker, the Democrats in the negative. In the Senate the bill was referred to the Committee on Privi- leges and Elections and was not reported because of the threat of Democratic Senators that they would filibuster and kill it by talking it to death. New York World of May 28, 1908, says of the Bemocratic vote in the Hoiise of Representatives against the bill pro- viding for the publicity of campaign contributions: "They proved by their votes that they are much less agitated about full publicity of campaign contributions than about full publicity of negro disfranchisement." WILLIAM JENNINGS BRYAN. Mr. llryau uu Guveriinient Ownei'MUli) uf ItuilruudM. [At Madison Square Garden, New York, Aug. 30, 1906.1 The railroacl que.stion is also interwoven with the trnst question. ^Nearly all the private monopolies have received re- bates or have secured other advantages over competitor.s. Abso- lute equality ot treatment at the hands of the railroads would go far toward crippling- the trusts, and I rejoice that tiic President has had the courage to press this question upon Congress. While the law, as it was finally distorted by tlie >3enate, is not all that couUl be wished^ it deserves a fair triaL J{ate regulation was absolutely necessary, and it furnishes some relief from^ the unbearable conditions which previously existed; but we must not forget that the vesting of this enormous power in the hands of a commission appointed by the President introduces a new danger. If an appointive boarcJ has the power to fix rates and can by the exercise of that power increase or decrease by hundreds of millions of dol- lars the annual revenues of the railroads, will not the rail- roads feel that they have a large pecuniary interest in the election of a President friendly to " the railroads? Experi- ence has demonstrated that mnnicipal corruption is largely traceable to the fact that franchise corporations desire to control the city council and thus increase their dividends, it railroad managers adojit the same policy the sentiment in favor of the ownership of the railroads by the Government is likely to increase as rapidly throughout the country as the sentiment in favor of municipal ownership has increased in the cities. • I have already reached the conclusion that railroads par- take so much of the nature of a monopoly that they must ultimately become public ]iroperty and be manay-ed by public officials in the interest of the whole community, in accordance with the well defined theory that public ownership is nec- essary where competition is impossible. 1 do not know whetlier a majority of the members of the party to which f have the honor to belong believe in the government ownership of railroads^ but my theory is that no man can call a mass convention to decide what he himself shall think. I have reached the conclusiou that there will be no permanent relief on the railroad question from dis- crimination between individuals and between places, and from extortionate rates, until the railroads are the property of the Government and operated by the Government in the interests of the people. And I believe — I believe that there is a growing belief in all parties that this solution, be it far or near, is the iiltimate solution. But, my friends, to me the dangerous centralization is a danger that cannot be brushed aside. The greatest danger of a republic is the consolidation of all power at the capi- tal remote from the people, and because I believe that the ownership of all the railroads by the Federal Government would so centralize power as to virtually obliterate State lines, instead of favoring the Federal ownership of all rail- roads, I favor the Federal ownership of trunk lines only, and the State ownership of all the rest of the railroads. Some Ifave said that it would be impracticable to allow the local lines to be owned by the several States. T did not believe the argument weighty before T went abroad, and my 6bser^ations in other lands have convinced me that State nWnership of local lines is entirely feasible. Tn Germany almost all the railroads are owned not by the Empire, but by the several States — not even the trunk lines ,are owned by the Federal Government, and yet they have no difficulty about interstate traffic. 282 WILLIAM JENNINGS BRYAN. 283 T have simply iiieniioiied this because you cannot well dis- cuss the trust question without discussing the railroad ques- tion, and wliile I i-eg-ard the railroad question as it now pi'e- sejiTs itself^ as a part of the trust question, and not a para- mount issue, I could not in frankness withhold my views on this subject and therefore, I have said what I said. [At Louisville, Ky., Septembtjr 12, 1906.] In my speech at the New York reception I made some remarks concerning the government ownership of railways, and thought I had expressed myself so clearly that my po- sition could not be misconstrued, even by those who desired to misconstrue it. The New York speech was prepared in advance. It was not only written, but it was carefully revised. It stated exactly what it wanted to state, and i have nothing to withdraw or modify in the statements therein made. What I say to-night is rather in the nature of an elaboration of the ideas therein presented. After quoting from the Democratic platform of 1900 that "a private monopoly is indefensible and intolerable," and after laying it down as a principle that public ownership should begin where competition ends and that the people should have the benelit of any monopoly that might be found necessary, I stated that I had reached the conclusion "that railroads partake so much of the nature of a monopoly that they must ultimately become public property and be managed by public officials in the interest of the whole community." I do not know that the country is reauy for this legis- lation. I do not know that the maiority of my own party favors it, but I believe an increased number of the mem- bers of all parties see in public ownership a sure remedy for discrimination between persons and places and for the ex- toi-tionate rates for the carrying of freight and passengers. I then proceeded to outline a system of public owner- ship wherebv the advantages of -public ownership might be secured to the people without the dangers of centralization. This system contemplates Federal ownership of the trunk lines only, and the ownership of local lines by the several States. I further expressed it as my opinion that the railroads themselves were responsible for the growth of the sentiment in favor of public ownership and said that, while I believed the rate bill recently enacted should be g-iven a fair trial, we might expect to see the railroads still more active in politics unless our experience with them differed from the experience we had had with franchise-holding corporations. This statement of m^^ views has been assailed by some as an attempt to force these views upon the Democratic party and by some as an announcement of an intention to insist upon the incorporation of these views in the next Democratic national platform. Let me answer these two charges. I have tried to make it clear that I expressed my own opinion and I have never sought to compel the acceptance of my opinion by anyone else. Re- serving the right to do my thinking, I respect the right of every one else to do his thinking. If you ask me whether the question of government owner- ship will be an issue in the campaign of 1908_. I answer I do not know. If you ask me whether it ought to be in the platform, I reply, I cannot tell until I know what the Demo- cratic voters think upon the subject. If the Democrats be- lieve the next platform should contain a plank in favor of government ownership, then that y)lank ought to be inchided. If the Democrats think it ought not to contain such a plank, then such a plank ought not to be included It rests- with the party to make the platform and indi- viduals can only advise. I have spoken for myself and for myself only, and I did not know how the suggestion would be received. I am now prepared to confess to you that it has been received more favorably than I expected. There is this, however, I do expect, namely, that these Democrats who ojjpose public ownership will accompany their L'84 WILLIAM JENNINGS BRYAN, ileclaration against it with the assertion that they will favor government ownership whenever they are convinced the coun- try must choose between government ownership of the roads and railroad ownership of the government. [At Bast Radford, Va., September 15, 1906.] Two years ago 1 had reached the conclusion that the gov- ernment ownership of railroads was the only solution of the question. 1 did not say it when I was the leader of the party in either campaign; in fact, I had not reached the con- clusion until a few years ago. When I was relieved of leader- ship at St. LouiSj and could speak as *a private individual, 1 stated my conclusions. My convictions have grown since, and in New York 1 stated it as my oi>inion that that was the ultimate solution. I said I did not know whether the country was ready for it, or whether a majority of the Demo- crats favored it. Now, I want to say that my position has been misstated, and in some places misconstrued. I have been accused of favoring a thing that would lead to centralization. Let me remind you that this plan not only does not lead to centrali- zation, but it is the first suggestion made in many years that looks toward the strengthening of the State and making a bulwark against centralization. People have been discussing public ownership with the idea that the Federal Government would own the railroads, and it seemed to me that that was fraught with danger, because I believe in the Democratic doctrine of local self-government, and that our opinion is strong- est when the independence of the State and the conduct of its own affairs is recognized and respected. I believe in our constitutional doctrine that local things are for the States, and national affairs for the Federal Govern- ment, and therefore, instead of advocating a Federal ownci- ship that would centralize all this power at Washington, I advocate a dual plan, whereby only the trunk lines would be under the control of the Federal Government and all the local lines under the control of the State government. If anybody denies that it is practicable, I cannot but tell them that in the Empire of Germany almost all the railroads are owned by the separate states, and that today the Empire wants to get the railroads in order to strengthen the Federal Government, but the States refuse to surrender them, because they are the influential strength of the states oi" the Empire of Germany. So, my friends, instead of being for centrali- zation, this is the plan that gives to the State the power to strengthen itself and to attend to its own affairs. I am not here to bring you to my conclusions on the rail- road question. So far as I am concerned, it does not matter to me whether or not every man in the United States agrees with me or not. I believe that every man ought to have his own beliefs and his own convictions, and when he has convictions on the subject of public matters, I believe that he ought to give them to the people and take the respon- sibility for them. [In letter to Henry M. Whitney, of Boston, March 25, 1907.] I am in favor of both National and State regulations, but I also believe that public ownership is the ultimate solution of the railroad question. In my discussions on this subject I have pointed out that because of the danger of centralization in ownership by the Federal Government of all the lines I prefer a system in which the Federal Government will be confined to the necessary trunk lines and the ownership of the rest of the lines be left to the States. This, however, is not an immediate question; at least, I am not sure that the people are ready to consider the question of public owner- ship, and until they are ready to consider that question the interest is centered in regulation. [In letter to Wall Street Journal, April 6, 1907, published April 10, 1907.] For some fourteen years after my entrance into National politics I hoped for effective railroad legislation and was WILLIAM JEXXING8 BRYAN. p5 brought reluctaTitl3^ to the belief that government ownership furnished the only satisfactory remedy for the discrimination, rebates, and extortions practiced bj^ the railroads and for the corruption which they have brought into politics. My first public expression on this subject was after the ^National convention in 1904. Two reasons led nie to discuss the subject at that time. First, the tT-iiimph of the reaction- ary element at St. Louis discouraged the more radical mem- bers of our party. Feeling sure, from contact with the rank and file of our organization, that the ascendency of the so- called conservative leaders would be temporary, I appealed to the radical Democrats to remain with the party, secure control of the organization, and make the party an effective instrument in securing needed reforms. To encourage these ])r ogres si vip Democrats to remain with the party I announced the conclusion which I had reached in reg-ard to the final necessity for government ownership. * * * At this time a majority of the people still seem to have faith in the regulation, and the first thing- necessary is to ascertain the present vakie of the railroads and then pre- vent any more watering- of stock. I shall assist as far as I am able to test regulation under as favorable conditions as can be created, but having* reached the conclusion that, in the end, regulation will be found ineffective, 1 have stated my conclusions. As I was slow in reaching- this conclusion myself I can be patient with those who honestly fear government owner- ship. In the meantime, I am anxious that those who become convinced of the necessity of government ownership shall con- sider the plan which reduces centralization to a minimum and adds to the infiuence and vigor of the state. Bryan on Government Ownersliin of Railroads. [New York World, February, 1908 ; printed in daily Congressional Record, May 29, 1908.] Most people believe, Mr. Bryan, that your first proclamation of gov- ernment ownership of railways was made at New York City August 30, 1906, on your return from Europe. Such is not the case. The plan of reorganization to "rid the Democratic party of plutocracy," which you promised on the adjournment of the Kansas City convention in 1904, was given to a waiting world on July 21, 1904. You stated the case 'of govern- ment ownership of railroads as follows : "I have heretofore refused to take a position on the question of gov- ernment ownership of railroads, first, because I had not until recently studied the subject ; and, secondly, because the question had not ' been reached. Recent events have convinced me that the time is now ripe for the presentation of this question. Consolidation after consolidation has taken place until a few men now control the railrbad traffic of the country and defy both the legislative and executive power of the niatlon. I invite the Democrats, therefore, to consider a plan for the govern- ment ownership and operation of the railroads. The plan usually sug- gested is for the purchase of those roads by the Federal Government. This plan, it seems to me, is more objectionable than a plan which involves the ownership and operation of these roads by the several States. To put the railroads in the hands of the Federal Government would mean an enormous centralization of power. It would give to the Federal Govern- ment a largely increased influence over the citizen and the citizen's affairs, and such centralization is not at all necessary. The several States can own and operate the railroads wfthin their borders just as effectively as it can be done by the Federal Government, and if it is done by the States the objection based upon the fear of centralization is entirely ~ answered. A board composed of representatives from the various States could deal with interstate traffic just as freight and passenger boards now deal with the joint traffic of the various lines. If the Federal Govei-nment had the railroads to build there would be constant rivalry between different sections to se- cure a fair share of the new building and improvement, but where this is left to the State the people in each State can decide what railroads they desire to build or to buy." i- :.;.i".t frankly admit that observation has convinced me that government ownership can be undertaken on the plan indicated with less danger to the country than is Involved in private ownership as we have had it or as we are likely to have it. ♦ ♦ ♦ You say that all these abuses can be corrected without interference with private ownership. I shall be glad if experience proves that they can be, but I no longer hope for it." The retreat ended at Lincoln, July 19, 1907, when you asked for an armistice in these words : "Government ownership is not an Immediate issue. While many Demo- crats believe" — and Mr. Bryan is one of the number — "that public owner- ship offers the ultimate solution of the problem, still those who believe that the public will finally in self-defense be driven to 'ownership recognize that regulation must be tried under the most favorable circumstances be- fore the masses will be ready to try a more radical remedy." Do you think that the Democratic party can convince voters that it hon- estly favors regulation of railroads if it nominates a> candidate who believes in government ownership and who has proclaimed in advance his belief that regulation will prove a failure? Do you think that the Ameri- can people could safely trust you to carry out a policy of regulation with which you have no sympathy and for whose effectiveness to remedy abuses you have no hope? Tlie United States Courts and the Trnsts— Let Us See, Mr. Bryan. [Printed in New York World, February, 1908 ; printed in daily Congres- sional Record, May 29, 1908.] Let us see, Mr. Bryan, whether your campaign against the Federal courts had a more rational inspiration than your campaign for a 50-cent dollar. You gave your followers to understand that the United States courts were prejudiced in behalf of the rich and powerful — were, in fact, controlled by trusts and corporations— and were deaf to the welfare iDf the people as a whole. Not only have you appealed to mob passion against Federal courts of justice and threatened to pack the Supreme Court, but you have persistently advocated t^hort terms and popular elections for United States judges In order to make them creatures of popular clamor. We have, there- fore, thought proper to indicate here as briefly as possible important cases arising since 18y6 in which proceedings have been begun or judgment has been entered against the very interests which you charged were privileged. The list is instructive in many ways, but in none is it more so than in its complete refutation of the slanders of socialistic demagogism. In 1898 the Supreme Court of the United States reversed the cir- cuit court, southern district of New York, and the circuit court of appeals, and enjoined the Joint Traffic Association from violating the antitrust law. By the action of the court it was dis.solved. In 1899 the Supreme Court sustained the circuit court of appeals, sixth circuit, in the matter of an injunction restraining the operations of the cast-Iron pipe trust, known as the Addystone Pipe case. In 1900 the Supreme Court sustained the constitutionality of the antitrust law of Texas, one of the most drastic yet adopted. In 1904 the Supreme Court, having the cases against the beef trust before it, decided: (1) Traffic in live stock transported from State to State is interstate commerce, and persons engaged in buying and selling such live stock are engaged in interstate commerce; (2) the combina- tion between dealers to suppress all competition in the purchase of live stock is an unlawful restraint of trade; (3) the combination between dealers to fix and maintain a uniform price in the sale of meat through- out the country is an unlawful restraint of trade; (4) the combination of dealers to obtain preferential railroad rates is an unlawful restraint of trade, and (5) all combinations suppressing competition fall under the prohibition of the Sherman antitrust act. In 1904 the Supreme Court affirmed the. decree of the circuit court, Minnesota, enjoining the Northern Securities Company from purchas- ing, acquiring, receiving, holding, voting, or in any manner acting as the owner of any of the shares of stock of the Northern Pacific and Great Northern Railway Companies, and restraining the Northern ^Se- curities Company from exercising any control over the corporate acts of said comppnie.';. ■ In 1905 the Supreme Court affirmed a decree of the circuit court, northern Illinois, enjoining various great packers in Chicago, commonly known as the "beef trust," from carrying out an unlawful conspiracy between themselves and railway companies to suppress competition. Id 1906 the Supreme Court affirmed various Judgments of United WILLIAM JENNINGS BBYAy. 287 States courts in Wisconsin and Minnesota against the General Paper Company, which had been proceeded against as a trust. The combination was, by the decision of the Supreme Court, finally dissolved. In 1906 the Supreme Court decided the celebrated Chicago street railway franchise case in favor of the city and against the traction trust. In 1899 a bill was filed in the circuit court, southern Ohio, to anhul a contract and dissolve a combination of producers and snippers of coal in Ohio and West Virginia, formed for the purpose of selling coal at not less than a given price, to be fixed by a commiltee. The trust was enjoined, and the combination was dissolved. In 1902 the circuit court, northern California, perpetually enjoined the Federal Salt Company (the salt trust) from suppressing competition west of the Rocky Mountains. In 1903 the salt trust was indicted in the same court, pleaded guilty, and was sentenced to pay a fine of $1,000. In 1905 the Chicago, Burlington and Quincy Railroad Company was convicted in Missouri, under tlie Elkins Act, of charging less than estab- lished freight ratts, and was fined $15,000. Similar prosecutions In Kentucky resulted aLso in convictions and fines. In 1905, in Missouri, Thomas & Taggart were convicted of conspiracy to obtain rebates. Thomas was sentenced to jail for six months and fined $6,000, and Taggart was sentenced to jail for three months and fined $4,000. In 1905 Well and others were convicted in Illinois of receiving re- bates and were fined $25,000 each. In 1905 the Chicago, Burlington and Quincy Railroad Company and various of its officers were convicted in Illinois of granting rebates. The corporation was fined $40,000 and the officers $10,000 each. In 1906 proceedings were begun in the outhern district of New York against the tobacco trust. These resulted in several convictions, fines of $10,000 and $8,000 being inflicted upon two of the defendants. In 1906 Swift & Co., Armour & Co., Nelson Morris Company, and the Cudahy Company, of Chicago, were convicted in Missouri of receiving re- bates and v/ere fined $15,000 each. In 1906 the American Sugar Refining Company and others were coD' victed in New York of receiving rebates, and fines aggregating $88,000 were inflicted. In 1906 the New York Central and Hudson River Railway Company and others were convicted In New York of granting rebates, and fines aggregating $114,000 were asse-^sed. In 1906 the Ann Arbor Railroad Company was convicted In Michigan of granting rebates and was fined $15,000. In 1907 .lohn M. Faithorn ,of the Chicago and Alton Railway Com- pany, was convicted in Illinois of granting rebates and was fined $25,000. In 1907 the Standard Oil Company, of Indiana, was convicted In Illinois on 1,462 counts of receiving rebates and was sentenced to pay a fine of $29,240,000. Bryan the Candidate of the Silver Trust. [New York World, February, 1908 ; printed in dally Congressional Record, May 29, 1908.] Your leadership of the Democratic party, Mr. Bryan, began with the national convention held in Chicago in 1896. It was an unfortunate year for a national campaign. The American people were paying the penalty of thirty years' of trifling with their currency and their monetary standard of value. In- dustry was half paralyzed, commerce .semiprostrate. Crops had been poor, the price of farm products was low ; the farms themselves were generally mortgaged. The National Government itself, with a demoral- ized Treasury, was borrowing money to pay its current expen.-es under the form of maintaining the gold reserve. Bond sales to favored syn- dicates had aroused the indignation of the people, without regard to party. Probably a million men in the cities were out of work. Soup houses had been opened during the two preceding winters, and in every large center of population police stations had been filled nightly by homeless wanderers. Armies oi tramps moved* sullenly along the highways. A Democratic Administration was in power which seemingly had no friends except its own aopointees and beneficiaries. Disaontent was almost universal. It was the hour of the agitator, and the Democratic national convention was his opportunity. When a temporary organization of the convention was effected the elements of repudiation and political revolution found that while they had a majority of the delegates, they did not have the two-thirds majority neces- sary, In accordance with Democratic precedent, to nominate a candidate for President. This embarrassment was short lived. The silver forces, by prearranged plan, had sent contesting delegations from many States, including Nebraska. Only a majority vote was necessary to adopt the report of a committee. The committee on credentials therefore unseated enough conservative delegates to insure a radical two-thirds ma- jority for nominating purposes, and the issue was no longer In doubt. You, Mr. Bryan, were at the head of the contesting delegates from Nebraska when they marched into the convention hall to take the seats of the sound-money delegates that had been evicted. The money plank in the platform, which the convention adopted by a vote of 620 to. 30.'?, was as follows: * * * "We demand the free and unlimited coinage of both silver and gold at the present legal ratio of 16 to 1 without waiting for the aid or consent of any other nation. We demand that the standard silver dollar shall be a full legal tender, equally with gold, for debts, public and private, and we favor such legi'^lation as will prevent for the future the demonetization of any kind of legal-tender money by private contract. ♦ * ♦ " The great silver mine ownprs of the world were In^ despair over the deT>reciation in price of their metal. Its use for money of redemption 288 WILLIAM JENlflNOS BRYAN. had been discontinued by the leading commercial nations. The India mints had been closed to its coinage. Congress had been forced to re- peal the Sherman Bilver act, which had made the National Governuitut a heavy purchaser of sliver in the market. The business of the mining operators was In a bad way and ruin stared many of them In the face unhss the Government of the United States created an unlimited market for their product by throwing open its mints to the free and unlimited coinage of silver. Never was a political propaganda more vehemently and desperately advocated, and never wore the selfish interests behind It more adroitly concealed. If the obvious self-lntereft of the silver miners in the 1(J to 1 crusade carried on by Democrats and Populi ts in 1896 had been as well understood as it should have been the names of these men would be as closely associated in the public mind with the silver trust as Rockefeller's is with oil or Armour's is with beef. The proposition which you advanced, Mr. Bryan, contemplated open- ing the mints of the United States to the free coinage on private account at the rate of less than 50-cents' worth of bullion to the dollar of what- ever portion of this enormous stock of silver Its owners or speculators might be moved to present. You asserted that free coinage and the flat of Government would instantly raise every 50-cent token thus minted to parity with gold. If so, the wealth of all owners and producers of .silver would have been doubled. Here is a list of some of the gentlemen who assisted in financing your theory that 50-cents' worth of silver bullion ought to be worth a dollar : Contributions to Mr. Rryan's Camna5p;n Fund. Marcus A. Daly, Montana, principal owner of Anaconda mine. This sum of $159,000 represented Mr. Daly's own ccnliibu- tlon and sums collected by him $150,000.00 David II. Moffat, Fir.-t National Bank, Denver, Colo 18,000.00 W. S. Stratton, Colorado, owner of Independence mine 12,000.00 William A. Clark, of Montana 45,000.00 Dennis Shcedy, Colorado National Bank, Denver, Colo 7,500.00 Charles D. Lane, of California 15,000.00 D. M. Hyman, Denver, Colo 7,500.00 Other Colorado mining interests 6,000.00 Utah Mining interests 18,372.00 Total contrib-'lions of the silver-mine owners to your campaign f -ncl 288,000.00 These contributions, as you doi.btlefs know, Mr. Bryan, were all recorded in the books of the Democratic national committee, although In your eloquent appeals for publicity of political contributions you have never referred to the fact that the silver interests financed your Presidential campaign, * ♦ • BRYA?i FAVORS PERMjINKIXT RKTKNTION OF PART OF THE PHIIilPPINES. Propo«e8 to Retain Clioice Sections and Set Up tlie Area ho itetained as an ''Oriental Territory," of the United States >vith a Delegate in Con^reMH. . Mr. William Jennings Bryan seems to have chang-ed his views as to the justice of American control in the Philippines, and now favors the retention of I^hilippine territory for permanent owneiship by the United States. At least this was his view in 1906, after a visit to tliose islands. In' one of his syndicate let- ters (sold to American newspapers at so much per column), dur- ing his trip around the world, he put forth the proposition tha. the United States (Jovernnient should take permanent possession of such portion of the Philippine Islands and harbors as it might choose, and give the Filipinos independence and protection in only such of the area as might remain. Even this proposition of generously allowing them to retain such parts of the islands as we might not want for our own permanent occupancy and owner- ship is to be confined for the present to the northern part of the group, and full control retained indefinitely (with a shadowy promise of something sometime) in the southern islands, espe- cially in the large and extremely fertile island of Mindanao (about the size of the State of Indiana), which, he naively re- marks, "seems to be the most inviting place" for Americans. The following are extracts from the letter, as published in the Washington Post of April 29, 1906, and in many other news- papers of the United States and Europe, the letter being, it will be observed, "copyrighted in Great Britain." The letter was also published in full in Mr. Bryan's own paper the "Commoner" on May 4. 1906. ' WILLIAM JEXNINdS BI:YAN. 2&9 By William Jeiiiiinss Bryan. [Copyright, 1906, by Joseph B. Bowles. Copyright in Great Britain. All rights reserved.]. Singapore, Jaji. 22, 1906. In speaking of Philippine independence I have presented some of the reasons given by Filipinos for desiring it, but there are arguments which ought to appeal especially to Americans. If it were our duty- to maintain a colonial policy, no argument could be made against it, because duties are imperative and never conflict. If, on tiie other hand, the Filipinos desire independence and are capable of self-government, we cannot justify the retention of the islands unless we are prepared to put our own interests above theirs, and even then we must be satistied that our interests will be advanced. If it is urged that we need the Philippine Islands as a base for the extension of our trade in the Orient, I answer that it is not neces- sary to deny the Filipino independence in order to hold a sufficient number of harbors and coaling stations to answer all rtyuiremeui.; of trade. The B^'ilipiiaos are not only anxious to have the advantage of our protection, but they recognize that to protect them we must have har- bors and a naval base. In return for the services we have rendered them we have the right to ask, and they would gladly grant, such reser- vations as ive might need. These reservations could be properly fortified and would furnish coaling stations both for our own navy and for our merchant marine. ******** * If our nation would at once declare its intention to treat the Fili- pinos living north of Mindanao as it treated the Cubans, and then pro- ceed, first, to establish a stable government, patterned after our own ; second, to convert that government into a native government by the substitution of Filipno officials as rapidly as possible ; third, to grant independence to the Filipinos, reserviiui such harbnrs and naval stations as may be thought necessary; a,nd fourth, to announce its purpose to protect the Filipinos from outside interferences while they work out their destiny — if our nation would do this, it would save a large annual expense, protect its trade interests, gratify the just ambitions of the Filipinos for national existence, and repeat the moral victory won to Cuba. In return for protection from without, the Filipinos would agree, as the Cubans did. that in their dealings with other nations they would not embarrass us. The reservations retained could he converted into centers for the ex- tension of American influence and American ideals, and pur nation would increase its importance as a real world power. * • • ' Our reservations ought to contain model schools, with a central col- lege, experimental farms, and institutions in which the people could be trained in the arts and industries most suited to the natural re- sources of the country. At our reservations there would be religious freedom, freedom of speech, freedom of press, self-government, and public instruction for all, and every uplifting influence would have free pl^ty. If we believe right makes might and that truth has within itself a propagating power, we cannot doubt the spread of American cirilizatiou from these American centers. While the Philippine Islands are under American authority, the government ought to be administered for the benefit of the Filipinos, in accordance with Secretary Taft's promise If they, are to be subject to our tariff laws when they buy of other nati :)ns, they ought to have free trade with us, but the Philippine Islands are so far from us that it would be more just to allow the Philippine tariff to be made by the Philippine assembly soon to be established. The Filipinos belong to the Orient, and their dealings must be largely with' the countries of the Orient; unkss they are in a position to have thfeir tariff laws conform to their geographical position, there must necessarily be friction and injustice. So important are geographical considerations that Americans who see fit to take up their residence upon such reservations as we retain for harbors, coaling stntinns ?nd n navpl base ought to be freed from the fetters of our tariff laws and shipping laws. I even venture to suggest the creation of an Oriental territory, to he comj.osed of such stations and reservations as we may now have or here- aftp''- acquire in the Orient. This territor.' should have a delegate in Con- gress li'ce other territories, but should be free by constitutional amendment ironi our tariff laws and permitted to legislate for itself upon this subject. It could thus establish free ports, if it chose, and give to its people the trade advantages enjoyed by those who live in Hong Kong, Singapore, and other open ports. * * * * ** if. « * In what I have said about independence and self-government in the Philippines, I have been speaking of Luzon and the other islands north of Mindanao. As I have already pointed out, the conditions existing in Mindanao and Sulu archipelago are so different from those existing in the northern islands that the two groups must be dealt with separately. It would not be fair to deny independence to the Christian Filipinos living in the north merely because the Moros have never shown any desire to adopt a republican form of government. (They live under a sort of feudal system, with sultan and datto as the ruling lords.) But while the work of establishing a stable government among the Moros is a more difficult one and will proceed more slowly, the same principles should govern it * * * While I do not believe that any large number of Americans could be induced to settle permanently in Mindanao (and Mindanao seems to be the most inviting place), there will be ample time to test this question while a government is being established among the Moros. 290 WILLIAM JENNINGS BRYAN. So it appears that Mr. Bryan, after seeing- the islands, has be- come an Imperialist in the full sense of tiie word, and calmly proposes that instead of governing them with the plan of ulti- mate independence for all their people and territory, we shall seize as much of the territory as we may desire, including, of course, its best harbors, and set it up as a Territory of the United States, without any question as to the wishes of the people there residing and owning homes. He has insisted that the liepublican policy of depriving the Filipinos of self-govern- m^'nt even temporarily is wrong ; now he proposes to compel them to pay for independence in a part of their territory by giving up another part to become permanently a part of the United States. Nor does he indicate how large an area he would compel them to pass over to us, whether one-tenth, one- fourth, or one-half of the islands would ultimately become the proposed "Oriental Territory," with a delegate in the United States Congress. If one visit to the islands convinces Mr. Bryan that we should retain a part of their area (the most valuable of course) and make it a Territoiy of the United States, with a delegate in Congress, would another visit convince him that we should re- tain them all and bring them in as States, with Senators and Representatives ? Mr. Bryan has asserted that we were and are doing the Fili- pinos great injustice by depriving them of independence. Now he proposes that we compel them to buy that independence for a part of their people by giving us therefor a part of their area and population, and that we make that area a Territory of the United States. If it \y^s wrong to even temporarily deprive the islands as a whole of independence, how would it be right to take a part of that territory (no matter how small) and make it forever .subject to the United States, forcing the people to assent to this as the price of giving up the remainder? Does he pro- pose that we must now be paid for doing what he says should have been freely done long ago? The national Democratic platform also supports the proposi- tion in modified form, as follows : "We favor an immediate declaration of the nation's purpose to recog- nize the independence of the Philippine Islands as soon as the stable gov- ernment can be established, such independence to be guaranteed by us as we guarantee the independence of Cuba, until the neutralization of the islands can be secured by treaty with other powers. In recognizing the independ- ence of the Philippines our government should retain such land as may be necessary for coaling stations and naval bases." Bryan Yearns over Filiiiinos, but Tvill not Imperil his Politi- cal Cliances to Demand Jnstice for tlie American Neg^ro. [New* York Evening Post, Democratic] Mr. Bryan made his great bid for Southern delegates last night, and we do not doubt that he will get them. In answer to a question after his address on "Universal Brotherhood" at Cooper Union, he stood up openly for negro disfranchisement in the South. Of cotirse, he had to put in the usual assertion that if Northern Republicans had lived in the South they would hav^e done the same as Southern Democrats, but what has that to do with a question of morals and of law, which Mr. Bryan was professing to discuss without any perrsonal or party interest? He yearns over the oppressed Filipino ; his heart bleeds for the poor and down trodden everywhere ; yet when it comes to equal treatment for the black men of his oAvn counti-y, all he has to say is that "the white men of the South are determined that the negro shall be disfranchised everywhere it is necessary to pre- vent the recurrence of the horrors of carpet-bag rule." This will be telegraphed all over the South to-day, and will doubtless kill off the opposition to Bryan there, but it leaves his "Universal Brotherhood" looking like the cheapest kind of cant. The wronged negro asks : "Am I not a man and a brother," but Mr. Bryan's reply is: "Not if you live in the South, and if saying a word for your rights would imperil my political fortunes." WILLIAM JEXNINGS BRYAN. 291 Dryaii says lie is Mure Kadieal tlian in 189(t. London, July 12, 1906. William J. Bryan, having- read the American newspapers, con- sented to-day to discuss questions raised since he again became prominent as a Presidential possibility. He said : "1 notice that I am now described by some as a conservative. In one sense I always have been a conservative. The Democratic p'oli- ( i<.s are conservative in that they embody old principles applied to new conditions. "If, however, by the word conservative they mean that I have changed my positions on any public question or moderated my opposition lo corporate aggrandizement they have a surprise waiting for them. I am more radical than I was in 1896 and have nothing to withdraw on economic questions which have been under discussion. "The only question we discussed in 1896 upon which there has been any apparent change is the silver question, and that has not been a change in the advocates of bimetallism, but in conditions. I believe in bimetallism, and I believe that the restoration of silver would bring still further prosperity, bes'les restoring par in exchange between gold and suver using countries ; *but I recognize, as do all other bimetallists whom 1 have met ^broad, that the unexpected and unprecedented increase in gold production has for the present removed the silver question as an issue." At the Fourth of July meeting- of the American Society in London Mr. Bryan said with reference to the silver question : "I wish to say that when I see the progress my country has made walking on one lt,g, i wonder what it would have done walking on two legs." Bryan's jNonilnation Means Taft's Ejection. [New York World, June 19, 1908.] With Mr. Bryan as Mr. Taft's opponent the campaign can end only in a liepublican victory. Mr. Bryan has been leader of the Democratic party virtually for twelve years, and the state of the j>arty bears eloquent testimony to the quality of his leadership. Of forty-six States the Democrats control only thirteen and the Republicans thirty three. There are only thirty-one Democrats in the United States Senate to sixty-one Kepublicans, and an- other Eepublican Senator, elected in Kentucky to succeed a Dem- ocrat, will take his seat March 4. There are only two anti- Uepublican Senators north of the line of the Missouri Compro- mise. Outside of New York city there are only thirty-seven Democrats in both houses of Congress from the entire East, North, and West. Mr. Bryan's own State has gone liepublican in every election for seven years, although he arranged a fusion ticket and framed a platform for every campaign. New Jersey, the only Northern State which failed to give its electoral votes to Lincoln in 18G0 and which went Democratic in everj^ national election but one for forty years .gave a Republican majority of 87,000 against Mr. Bryan in 1896 and has been Republican ever since. The story of New York is not greatly unlike the story of New Jersey. Thanks to Bryanism, New York ceased to be a debat- able State in Presidential elections. The Repul)lican plui-ality in 1896 was 268.000; in 1900 it was 143.000; in 1901 it wa"s 175.000. In most of the counties of this State the Democratic party has all but gone out of existence. A parallel to the dis- astrous consequences of Bryan leadership can be found only in the civil war. Every idea, principle, or issue represented by Mv. Bryaii or pre- sented against him by the Re])ublicans has been submitted to the verdict of the voters in the Congressional elections during the last twelve years no less than in the Presidential elections, and in every House of Representatives chosen the Republicans have had a majority. It is evident that only new conditions, new issues, and new candidates can produce any decided change from the results of these preceding elections. W^ith an Tin- beaten candidate on an unbeaten platform the Democrats Avould have a fighting chance in the cainpaign, despite the long demor- alization of their party: but what can a th r ice -be at'^n party do with a twice-beaten candidate whose policies have already over- whelmed the Democratic organization in wreck and ruin? 292 WILLIAM JENNIN08 BR7AK. Mr. Bryun**! Trntit Ratio. Clevki.ani), Ohio, Sept. 15, 1906. In a reply to a personal letter of request by Editor Georg-e Smart, of the Iron Trades Keview, that William Jenning-s Bryan define more clearly and succinctly his position in reg-ard to the so-called trusts, the Democratic leader has responded in the fol- lowing- words : •'1 am not prepared to state just how much a proportion a cor- poration can control without becoming a trust in the sense that it limits competition, and competition controls the price and terms of sale. For the conduct of my paper, I drew the line at 50 per cent, and do not accept an advertisement of a corporation controlling more than 50 per cent of the product in which it deals. "I am inclined to believe, however, that the steel trust controls, more of the product than it is good for the American people that one corporation should "In saying that a corporation should not be licensed when it con- trols enough to eliminate competition, I do not. mean to say that the individual industries that are under one management should be destroyed. The corporation shoald simply be compelled to reduce its factories until its production is in the limit fixed by law." WILLIAM RANDOLPH HEARST ON THE DEMOCRATIC PARTY AND ITS CANDIDATE. [Trom Mr. Hearst's sneer-h to the National Convention of the Independence Party at Chicago, July 28, 1908.] The Democratic platform contains some good and original things, but, as has been said, the original things are not good and the good things are not original. It was built by political jackdaws who feathered their nests with the plumes of others without understanding of their significance or inten- tion as to their performance. It is the habitation of a hermit crab which has no shell of its own and invades the first convenient one without regard to propertjr or propriety. It is a platform, too, of reconciliation and retraction of atonement and apology, of harmony and hypocrisy, for, in compliance with a former compact, Parlcer has pronounced peace. Bill Bailey has poured Standard Oil upon the troubled waters, and Bryan has killed not only the fatted calf but the goose that laid the golden egg. No man can serve two masters, and no man can conciliate the con- flicting elements of the Democratic party. He who tries must serve one and deceive the other ; must make public pretense to the people and private compact with the trusts. The Democratic vanguard is a Palstaff's army. It is led by a knight arrayed in a motley of modified professions and compromised prin- ciples, of altered opinions and retracted statements. A Falstaff's army, whose banner bears on one side a watchword for the people and on the other a password for the trusts, whose only object is office at any cost, whose motto is "after us the deluge." Assuming that Mr. Bryan himself is all that his most ardent admirers claim him to be, a great lawyer, an enlightened statesman, an inspired patriot, still a man is known by the company he keeps, and no decent Democrat can tolerate his free companions. No honest citizen can let down the bars of office to such an Ali Baba's band of boodlers and bravos. No prudent citizen will support a combination to which Taggart sup- plies a candidate and Parker a platform for which Bryan will pay the freight and the people will pay the penalty. Mr. Hearst's Reply to Mr. Gompers's Messagre. [Prom the New York American, July 17, 1908.] The following- cablegram from Mr. Hear.st has been received in reply to a message transmitted to Mr. Hearst from Sa nuel Gompers, stating that in view of the Democrats' stand for labor it would be "an act of greatest patriotism for the IndejxMidence Party to indorse the Democratic platform," and urging hiui not to run a third ticket, as it would elect Mr. Taf t : Paris, July 13th. "Tell Mr. Gompers that I am not authorized to speak for the mem- bership of the Independence Party, but according to my personal standards a purer patriotism consists in laboring to establish a new party which will be consistently devoted to the interest of the citizenship, and particularly to the advantage and advancement of the producing classes. "I do not think the path of patriotism lies in supporting a discredited and decadent old party, which has neither conscientious conviction nor honest intention, or indorsing chameleon candidates who change vlie color of their political opinion with every varying hue of opportunism. "I do not think the best benefit of laboring men lies in supporting that old party because of a sop of false promise, when the performance of that party while in power did more to injure labor than all the injunc- tions ever issued before or since. WILLIAM JEXyiNOSi BnYAX. 293 "I have lost faith in the empty professions of an unregenerate De- mocracy. I have lost confidence in the ability, in the sincerity and even in the integrity of its leaders. "I do not consider it patriotism to pretend to support that which, as a citizen I distrust and detest, and I earnestly hope that the Inde- pendence Party will give me an opportunity to vote for candidates that are both able and honest, and for a declaration of principles that is both sound and sincere. "WILLIAM RANDOLPH HEARST." WATTERSON'S OPINION OF BRYAN AND BRYANISM IN 1896. Extracts From Louisville Courier Journal Duringr Mr. Bryan's First Cninpaifirn for tlie Presitlency. [Prom Courier-Journal, Tuesday, July 14, 1896.] Geneva, Switzerland, July 13, 1896, via French Cable. Walter N. Haldeman, President Courier- Journal Company, Louis- ville, Ky. : Another ticket our only hop^. No compromise with dishonor. Stand firm. Henry Wattebson. The Democratic party seems threatened with engulfment in a deluge of populism and anarchy. * * Swayed backward and forward by the latest utterances of ridiculous oratory, they ended by making a platform which is in itelf an insult to every Democrat, and placed upon that plat- form a fire-eating populist, whose chief merit is a capacity for arousing similar people by inflammatory rhetoric. As one of our contemporaries puts it, "Lunacy having dictated the platform, it is perhaps natural that hysteria should evolve the candidate." Men like Bryan are agitators, rabble-rousers and spellbinders ; but no man would trust them at the head of an ordinary business to manage its executive affairs, much less at the head of a great nation. * ♦ * To elect him would mean repudiation, anarchy, and national and social ruin.— ComH.t Journal, July IS, 1896. If this were a campaign of common sense, or even of sanity, Mr. Bryan could be counted on to quickly talk himself to death ; but as it is Mr. Bryan's demagogic loquacity is to be the main reliance of his party for rabble-rousing votes. — Courier Journal, July 15, ISOG. "Bryan is only Tillman in better English." There Is a deal of truth in that. Tillman and Bryan teach the same creed, but Tillman is rough and uncouth, whereas Bryan knows the art of oratorical expression. Bryan was nominated because he was the first man who was able to make the convention see and feel that he was as wild as it was. — Courier Journal, July 15, 1896. Mr. Bryan is nothing but a Populist in doctrine and practice. • * The same hands which opened the gates to the admission of the Tillmans, the Altgelds, the Debses, and such like cattle, drove out the Carlisles, the Vilases, the Whitneys, the Herberts, the Palmers and other stalwart exponents of Democracy who have fought every fight their party has known for years and have never laid sturdier blows on Republicanism than on anarchy and populism. — Courier Journal, July 16, 1896. The flag that floats over the names of Bryan and Sewall is the flag of pirates, * * of the socialists, and of anarchists, rather than that of Democrats. — Courier Journal, July 17, 1896. Outside of the radical declaration for free coinage, no part of the Chicago platform has occasioned more alarm than the plank which con- demned the Federal Government for interfering to preserve life and order during the great riots of 1894. * * * The defeat of the candidate representing such sentiments is not partisan nor a sectional issue, but a moral duty. — Courier Journal, July 21, 1896. The Populists did the consistent thing in nominating Mr. Bryan for the Presidency. There is hardly a plank in the Chicago platform which is not also in the Populist platform. Bryan, judged by his record and by his professed principles, is just as good a Populist as any of them. With one foot on the Chicago platform, and the other on the St. Louis platfrom, he can stand comfortably on either leg or both. It is truly a strange and disgusting spectacle to real Democrats. — Courier Journal, July 26, 1896. Is it Bryan and Sewall or Bryan and Watson? It is immaterial. In either case it is Bryan and Populism, Bryan and repudiation, Bryan and riot, Bryan and ruin. — Courier Journal, July 21, 1896. The three R's of Bryan's campaign seem to be Repudiation, Riot, and Ruin. — Courier Journal, July 29, 1896. Bryan seiemed proud to be introduced to make one of his speeches by Coxey's man. Carl Browne. How does that sit upon the stomach or the Democrat and those who must vote for Bryan? — ■ Courier Journal, August 12, 1896. • The fierce light that beats upon a Presidential candidate is bringing out the weaknesses and absurdities of Mr. Bryan's public career with a vengeance. No matter under what guise he presents his views on gov- ernmental politics, the same communistic principles are always apparent. * * * That any party should have stooped to take up a candidate with such crazy-quilt ideas of political economy is hardly more dis- gustig than alarming. What would Jefferson or Hamilton or the other great statesmen of the Revolutionary period think if they were informed iJ94 WILLIAM JENNINGS BRYAN. that this intellectual whipper-snapper, this puling infant of logic would one day be deemed worthy of a seat at the same table with them. — Courier Journal, August 26, 1896. Bryan's program is on a more majestic scale than Coxey's, but it is essentially the same and is fully as ridiculous and as dangerous. — Courier Journal, Aupust 26, 1896. Of course government ownership is what all Populists desire, and it would be especially gratifying to Mr. Bryan and his crowd, since this would provide several thousand lucrative places for the spoilsman. — Courier Journal, January IS, 1897. Without exceptions, the free silver leaders are either visionary men of limited business experience, or else mere professional politicians, hold- ing or seeking office ***** are both incompetent and obsolete. They belong to a past age. They may flourish a while longer as Populists. But they can do nothing as Democrats. They will grow fewer and fewer, and beautifully less, until as leaders they peter out altogether. — Cowier Journal, January H, 1897. As far as the Courier Journal is concerned it will support NO man for office who has the smell of Altgeldlsm or Tillmanism upon his gar- ments, or whose boots carry one speck of Populist mud, either at the heel or at the toe. ♦ * ♦ ♦ a short horse is soon curried, and this 16 to 1, go-as-you-please, stick-in-the-mud, free silver short horse, is very short. Indeed, as a matter of fact, very little short of a jackass.— Cotirier Journal January 15, 1897. When, last July, a convention met in Chicago, bearing the cre- dentials of the National Democracy, authorized to enunciate a Demo- cratic platform and choose Democratic leaders ; when that convention leaped madly into the arms of Coi».munism, snatched up the alien flag of Populism and, amid scenes of wildest abandonment to unreason and passion, proclaimed it the ensign of Democracy ; when the convention, break- ing in contempt the time-honored tablets of the father's creed, set up in their stead the new faith of all the clashing and clamoring malcontents who had fashioned their fanaticism upon opposition to Democracy ; when that convention, following out its frantic surrender to heretic dogmas, nominated for the Presidency a young and desperate adventurer because h»' had the voice and the presence to best give expression to the evil passions of the hour, and nominated for the Vice-Presidency a lobbyist for Government subi^idies to his individual interests, it struck a stinging blow full in the face of every true Democrat. — Courier- Journal, September ?, 1896. This youngster, who has set himself up as the financial teacher of the American people, travels over the land with a tireless tongue and a voluminous vocabulary, blandly telling the people of the impossible things that will happen in the future and free coinage of silver, when he is utterly ignorant of the simplest facts of our past financial history. — Courier- Journal, September S, 1896. The workingman, threatened with the loss of 49 cents in every dollar of wages, is consoled with the assurance that should he strike for the restoration of the wages he is getting now, in the shape of a larger number of silver dollars, he will be allowed to proceed to any acts of violence by either the State or National Government. A few workmen may be silly enough to accept this substitute of a stone for bread. — Courier- Journal, September 12, 1896. The speeches which William J. Bryan has been making on his tours are, without exception, the most incendiary and dangerous utterances ever addressed to the American people by a Presidential candidate. He has not been content to hold up himself and his followers as the only champions of the poor and oppressed ; he has denounced the supporters of an honest monetar standard aj no better than midnight robbers, and he urges that they be treated as an invading army. He has gone even farther than to countenance an open revolution ; he has asked the Ameri- can people to become hypocrites and liars. — Courier-Journal, September 5, 1896. Mr. William J. Bryan has come to Kentucky, and Kentuckians have taken his measure. He is a boy orator. He is a distinguished dodger. He is a daring adventurer. He is a political fakir. He is not of the material of which the people of the United States have ever made a Presi- dent, nor is he even of the material of which any party has ever before made a candidate for the Presidency. — Courier-Journal, September 15, 1896, the day after Bryan's speech in Louisville. Mr. Bryan and his silver friends announce that they are not afraid to be called demagogues. Let us remind them that Benjamin Franklin once observed that experience was a dear school, but fools would learn in no other, and often not even in that. In no country in the world are demagogues so despised and distrusted as in America. Let the people once understand Bryan's real character and they will drop him as com- pletely as they dropped Denis Kearney and "Gen." Coxey. — Courier-Journal, September IS, 1896. We are told that the farmers of the West and South will support Bryan because they feel that they must fight the "capitalistic classes," whose interests, it is alleged, are diametrically opposed to theirs. We do not believe this for several reasons. * * ♦ ^q have many farmers who are very wealthy men, who have large numbers of employees and bank accounts. * * * Now what does this mean? Simply that to the repudiators and anarchists like Altgeld, Tillman and Debs, who are tak- ing such a pronounced part in this campaign, the farmer with his com- fortable home and comparative financial independence is bound .,to become an object of suspicion and attack — if not now at some very early date. — • Courier-Journal, September, 26, 1896. Bourke Cockran said no brighter, truer thing in his great speech here than was embodied in his definition of Populism: "Sonorous declama- WILLIAM JENNINGS BRYAN. 295 tlon based upon a fundamental misconception of facts." This satire eats li^^e vitriol into the shallow assertions of calamity howlers, but from Bryan to Weaver, down to Watson and Blackburn it fits them to a T. — Edi- torial, Courier -Journal J October zl, IHHy. It is apparent that Mr. Bryan is much better adapted for a theatrical press agent than for a Unitfid States President, but it is als.) apparent that he would shine still better standing on a red wagon oratorically selling some magic preparation, like Bryan's blessed balsam for bunions. — Editorial, Courier-J ournal, October 21, It'Jit. Bryan is beaten — ipgloriously and overwhelmingly. So closes the second great era of national peril which has menaced our Government. So lift the clouds of fiatLsm and rep;:diation which lowered above the Innd in ominous threat of dishonor and disaster. So breaks the sun of a new dawn upon our manhood proven, our integrity vindicated, our intelligence victorious, our institutions impregnable. * * * Thank God. In the name of a long-suffering people, thank God. — Courier-Jovrnnl. Novemhr ',. /-^%^ cditnrinl headed "The Inevitable." "UK IS IX POLITICS BiCCAlSK IT HKLl'S TIIK GATE RECEIPTS." What Rog-er C. Sullivan. DeiMoc-ratic lVatii»naI Coininitteemaii, " Said ot Mr. Bryan in lOd!;. [From public statement issued at Chicago, September 7, 1906, by Roger 0. Saliivan, then the Illinois member of the Democratic National Committee.] Mr. Bryan has twice led the Democratic party to defeat, the second a \vor.se defeat than the first. If he is proud of that *'\ idence of the people's confidence in his sincerity, he is welcouie 1() it. Bijt his boast of sincerity merits further consideration. He insin! ates that I make money out of politics, and that his ; sincerity therefore couij^els him to oppose my particijiation in Democratic affairs. The plain inference is that Mr. Bryan thinks ':': wrong- to make money out of j)olitics. This boast of his puts 1 le stamp of insincerity all over him. If Mr. Bryan thinks it wrong to make money ov;t of politics, he should quit making- money. Mr. Bryan has not one dollar that he ever made out of anything- but politics. He tried to be a lawyer; he was a fai!ii]-e at it. He tried to be a newspaper editor; he was a failure at that. He is a now a man of property. As f(jrtiines g-o. he is a i-ich man. He made every dollar of his fo!-tune ont of politics as a ittej)])ing--;-tone to the lecture platform. Mr. Bryan dis- < (;\ered. many years ago. that he could make his political prom- inence pay. He is a shrewd advertiser, and in his way a clever h siness man. He has discovered that so long as he is candi- (I ite for President and a possible nominee, gifted with the ability t(» wea\e flowing- sentences into well-rounded periods, the public win come to hear him at so much a head. He is in politics l)(M'a-\se it helps the gate receipts. Like the actresses who have discarded the stolen diamonds dodge for the g-reater publicity a d'vorce s"it. Mr. Bryan will quit running for PresidtMit and will qi;it politics just as soon as he discovers that some other form of advei'thsing will bring more dollars to the box ofH?e v\hen he is announced to appear on the stage. CEXTRALIZATIOIV. MarlitMi < lijtnue in Democratic Sentiment as Illustrated by th«' Hryjin Platforms. The Now ^'ork Times (Democratic) publishes the following exti'acts froui nation-il DemDcratic platforms, showing- how the ryan platform ri.ns counter to Democratic tradition: 1872 w I ocal .'-•elf -government with impartial suffrage will guide the rights, of al! citii^ens more securely than any centralized power. 1876. * '• "'•■ A con- apt centralism which * * has honeycombed the oilijcs of the Federal Governmentj 298 WILLIAM JENNINOS BRYAN. 1880 * ♦ * Opposition to central izationism and to that dan- gerous spirit of encroachment which tends to consolidate the powers of all the departments in one, and thus to create, wliat- ever the form of government, a real despotism. 1884. The reserved rif»-hts of the States and the supremacy of the Federal Government \vithin the limits of the Constitution will ever form the true base of our liberties, and can never be sur- rendered without destroying that balance of rights and powers which enables a continent to be develojxHl in peace and social order to be maintained by means of local self-goveninieut. 1888. * * * Strictly specifying every granted power and ex- pressly reserving to the States or people the entire ungranted residue of power. 1892. The tendency to centralize all power at the Federal capital has become a menace to the reserved rights of the Stat(>s that strikes at the very roots of our Government under the Constitu- tion, as framed by the fathers of the liepublic. 1896. During all these years the Democratic party has resisted the tendency of selfish interests to the centralization of govern- mental power and .steadfastly maintained the integrity of the dual system of government established by the founders of this republic of republics. 1900. Bryan's platform contains no reference to centralization. 1904 Under them (the Democratic party) local self-government and national unity and prosperity were alike established. 1908. We favor such le'gislation as will increase the power of the Interstate Commerce Commission. We believe that in so far as the needs of commerce require an emergency currency such currency should be issued, con- trolled by the Federal Government. We pledge the Democratic party to the enactment of a law to regulate the rates and services of telegraph and telephone companies engaged in the transaction of messages between the States, under the juri.sdiction of the Interstate Commerce Com- mission. Among the additional remedies we specify * * * a license system which will, without abridging the right of each State to create corporations or its right to regulate as it will foreign corporations doing business within its limits, make it necessary for a manufacturing or trading corporation engaged in intei'- state commerce to take out a Federal license. Pa8»ed at the instance of Mr. Roosevelt, it in ignorance and vice, and who can live on less than one-half it takes to bring- comfort to the home of the average white farmer. "No Sal-vatlon for the South Short of the Repeal of the Con- N 1 1 ^ 11 1 < on n 1 A men <1 in en t m. [Extract from remarks of Hon. JAMES M. GRIGOS of Georgia, in dally Congressional Record, April 21, 190;;.] There is not a white man in any of the so-called negro States who would not glatlly see the repeal of the con.stitutional amend- ments making the negro a citizen and a voter. While this is true, there is a disposition in some quarters of the South to laugh at the efforts of earnest, patriotic men in this direction. There is no complete salvation for the South outside of this one thing. Many gentlemen say it is impossible. The same gentle- men woidd very probably have said ten years ago that present conditions and feelings of the people North and South on the social side of this question were inqjossible. This is absolutely necessary to our final salvation. Everything else is a misez'able makeshift, only to tide us over to the time when public opinion everywhere will approve of the repeal of these amendments and the correction of these terrible mistakes. A union half white and half black can live no more than a union "half slave and half free." Separation of the races would be best for white and black alike ; but it seems that neither race is yet ready for that. The time will be, however, in the years to come when the man- hood of the country, North and South, white and black alike, will demand it. Separation will not come in our generation, but many of us here to-day will live to see the repeal of these amendments. Separation will follow disfranchisement, as the night the day. "ThlH is the Country of the White Man, Not the Home of the Mongrel." [Extract from remarks of Hon. FRANK CLARK, of Florida, in daily Con- gressional Record, May 11, 1908.] Having had the exiierience of a lifetime with them, I express it as my deliberate judgment that it is better to keep them sep- arate — better for them, better for their race, better for every- body ; and this system is working well in the State of Florida, in our larger cities, where we have street cars, and upon our steam railroads all over the State. There never has been any confusion or trouble on account of the separation of the rac6s on pul)lic conveyances. Before the ado])tion of that system there was a great deal of trouble. I admit that at times it was caused by the white man. I am not holding him up as entirely blameless. This class of white man is not peculiar to any section of our country. I have seen him in the North, in the East, in the West, and in the South. I have seen a lot of white people of that sort, and when one of this class gets a drink or two inside of him. and he gets himself inside of a street car, there is generally trouble. If you desire to reduce the chances of trouble to the minimum and sub.serve the best interests of all the people, yon had better keep the races apai-t in all [)ublic conveyances. Imagine a nice, new passenger coach, packed with dirty, greasy, filthy negroes, down South, in midsummer, and you can readily understand why that car does not long remain as good, as clean, and as desirable as a similar car occupied exclusively by white travelers. * * * The gentleman from New Kork [Mr. Driscoll] says that we have been allowed to have our own way down South with this question for so long that we have grown "bold" enough to come on the floor of this House and make demands for this kind ol legislation. The gentleman uses the word "bold" as though he thought we did not have the right to corne here and make demands. We do demand, and we have the right to de- EQUAL JUSTICE TO ALL, 305 mand. This is our country, as it was the country of our fathers. The country of the white man, not the home of the mongrel. It will always be the white man's country. If the black man and the yellow man each desire to remain with us, occupying the sphere in life for which God Almighty intended each, let them do so. If not content with that let them go elsewhere. "The Intelligent Negfro Does Not Worship False Gods." [Extracts from remarks of Hon. EDWARD S. TAYLOR, Jr. (Republican), in daily Congressional Record, May 27. 1908.] With defeat staring it in the face, without a real and virile is- sue except those embodied in the "Peerless One," Democracy is preparing for the conflict in expectation of winning with the votes of negroes in the North and without the votes of negroes in the South. And this delusion, Mr. Speaker, is the crowning climax of political clowning. The negro, disfranchised in the South by the Democratic party, is expected to swing Kepublican States of the North into the power of his oppressors. From the days of its birth this party has not only halted its boasted Democracy at the color line, but bragged about it. The intelligent negro of the North does not worship false gods. He is thoroughly familiar with the unfortunate condition of the colored man in the South. He knows that at heart the leaders of the Democratic party do not wish his association in politics, but only hope to use him and to disgruntle him against the Republican party in order that they may. without benefit to him, be elevated into power. It does not need the declaration of the gentleman from Illinois [Mr. Eainey] that the Democratic party is a "white man's party" to convince them that their interests and future welfare lie in the hands of the Eepublican party and its patriotic electors. Who is this citizen whom Mr. Rainey and his colleagues find so obiioxious who is not permitted to vote in the South? Can they not for a moment cease in hunting isolated cases where criminal negroes have committed grave outrages and look to the broad development of the negro as a race? What has he done to earn his citizenship? Education for the negro began with the emancipation procla- mation. The illiteracy of the whole race, which may be admitted to have been total at emancipation, has been reduced to 44.5 per cent when the last census was taken. In the ten years from 1890 to 1900 jt had been reduced from 57.1 per cent to 44.5 per cent. Italy to-day has 38 per cent of illiteracy ; Spain, 68 per cent, and Portugal, 79.2 per cent. These are white countries with centuries of civilization behind them. There are 40,000 negro students in higher institutions of learning, pursuing all branches from trade to classical and scientific courses. Forty thousand colored youth have graduated from secondary institutions of learning, and 4,000 from colleges. The race has developed 30,000 teachers, more than 16,000 clergj-men. 4,000 musicians, more than 2,000 actors and showmen, more than 1,700 physicians and surgeons, about 1,000 lawj-ers, 300 journalists, 250 dentists. 236 artists and art teachers, 100 literarj^ persons, 120 civil engineers and surveyors, 82 bankers and brokers, and 52 architects. It has about 200 in- stitutions for higher education in the United States. In 1904 it owned property amounting to $1,100,000,000. In 1900 the farm property belonging to negroes was valued at $200,000,000. almost $300 for each negro family. It operates 746,715 farms and owns 187,797 farms, or 25 per cent of the total. It rents 557,174 farms, or 74.6 per cent of the total. This is not a bad showing for a race which gentlemen of the minority have declared unfit to exercise its citizenship, and which they claim to be a purchasable quantity when it comes to exercise its suffrage. Mr. Bryan's "Commoner" on tlie Race Q,nestion at the South. [From the "Commoner," December 3, 1904.] If the race question j)resented itself to the North as it does to the South, it is not likely that it would be met in a different spirit or in a different way, and if the race question were a Northern question rather than a Southern one, the people of the 306 EQUAL JUSTICE TO ALL. South would be as indifferent to it as the people of the North ui-e. There is no disposition in the North to interfere with the manner in which the problem is now being worked out by the South. Once in a while the question is raised, but it is usually for political purposes. It is not likely that any serious attempt will be made to secure national legislation on the subject. If such an attempt is made it should be made with logic and with light, not with the calling of names and with heat. [From the "Commoner," November 1. 1901.] But when conditions force the two races to live under the same government in the same country, the more advanced race never has consented, and probably never will consent, to be dom- inated by the less advanced. Whether the conditions in the South are such as to justify the amendments which have been adopted is a question of fact which must be decided upon evidence — not a question of theory which can be settled by those far removed from the conditions which have to be considered. [From West Virgrljoia Democratic Platform of 1908.] Jim Crow Plunk. We favor the enactment of a law requiring common carriers engaged in passenger traffic to furnish separate coaches or compartments for white and colored passengers. Eilective Fi^ncliise Plank. Believing that the extension of the elective franchise to a race inferior in intelligence and without preparation for the wise and prudent exercise of a privilege so vital to the maintenance of good government was a mistake, if not a crime, committed by the Kepnblican party, during the reign of passion and prejudice following the Civil War, for political ends and pur- poses, we declare that the Democratic party is in favor of so amending the Constitution as to preserve the purity of the ballot, and the electorate of the state from the evil results from conferring such power and privilege upon those who are unfitted to appreciate its importance, as it affects the stability and preservation of good government. Plans kave been suf^^iireMtefl for tlie mi»-ration of tlie ne- 8:roes to some other country, Avliere tliey ^v«»ul«l live l»y tUeni- selves and gfrow np by tlteniselves, and have a soelety l»y themselves, and create a nation hy tltemselvcM. Such a suk- arestion is chimerical. The ncRro has no desire to k,o, and the people of the South tvonld seriously object to his Koinju;-. —Hon. Wm. H. Taft, at Plymouth Church, Brooklyn. What the nesrro and his friends demand is. equality of enforcement of the law under the Constitution, and to^vard that end I feel convinced that all the influence of industrial proKTresM in the South and the closer union between the sections necessarily are makini^-. — Hon. "Wm. H. Taft, at Plymouth Church, Brooklyn. In the history nf all the peoples of the earth, there is no more uniform story of absolute fldellty to trust than that ^vhlch was exhibited by the negroes of the South to^vard the families of their masters, >vhen th-<- men Avere K'one to the Avar, and none but the women and children were left at home.— Hon. Wm. H. Taft, at Plymouth Church, Brook- lyn. I am a protectionist becan^^e I c«n see very clearly that the political independence which every patriot -wou^d sacri- fice his life to preserve to his country cap only be safely assured when we are indnstrlally independent, and 1 am g^lad, if it revn -tvelfare, even to consider the advisability of abandoning- the present [pro- tection] system.— President Roosevelt at MinneanolAs, April 4, 1903. We can as little afford to tolerate a dishonest man in tlie pnblic service as a co^vard in the army. The murderer takes a single life; the corrni>tionist in pnblic life, wliether he be bribe giver or bribe taker, strilteft at the heart of the com- nionvi^ealth.— President Roosevelt's speech at Sherman statue unveiling, Oct. 15, 1903. It is always safe to array yourself on the side of your country; it is always safe to stand against laTvlessness and repudiation.- Maj. McKinley at Canton, Sept. 23, 1896. We have lower interest and higher Tvages, more xuon«y and fewer mortgages.— President McKinley. While this is a big country, it is not no^v, and may it never be, big enough kno^vingly to admit into the ranks o^f its citizenship any avow^ed disorganizer of government or any avowetl scolfer at our republican institutions. But our Stands are outstretched to those ^-ho come to us ^tvith worthy purpose. — Postmaster-General Cortelyou. The only antitrust law on the Federal Statute hooks bears the name of a Republican Senator. The law creating an Interstate Commence Commission bears the name of another Republican Senator and all the \ti\y is being enforced by a Republican President.— Hon. E. Ij. Hamilton, in Congress, April 14, 1904. AVe do well to give the sanction of the Federal laTV to the principle of arbitration. We should encourage a spirit of concord and mutual respect between employer and employee, betvreen the common carriers of interstate commerce and their employees.— Hon. C. W. Fairbanks, in U. S. Senate, May '2, 1S98. One vital, dominating fact confronts the Democratic party which no oratory, ^vhich no eloauence, which no rhetoric can oTSjscures BRYAN'S DOMINATION MEANS TAFT'S EVECTIQN.— New York World. THE 60TH CONGRESS. Wliut (lie liepuhlioan Majority Iium ]3<»ne. [From the New York Tribune.] With the adjournment of the first session of the 60th Congress, an- other creditable page has been added to the history of the Uepublicau party. Meeting under condiLion.s n^t whjlly a..i>picious, cuafiouted by unsettled business conditions and haaipered ai.a^.-t throughout the session by the unrtasonable filibustering tacUc ci tat- D^uuocrats in the House, the leaders of the majority have written namtrous valuable- laws on the national statute books and have addtu a y^jLa Vj the b )dy of international law uevgr before equaled by any session in the annals of the nation. In the lace of widely varying opinions on t-ie subject of finance the Republican majority has once more demon- trated its remarkable ability to subordinate ptronal views and preferences to the opinion of the ma- jority, and the most important law of the session, the c )mpromise financial bill, is the ' result. W hatever view may be entertained of the respective merits of the various financial theorems which found abundant expression in course of the session, few impartial judges will withhold admiration for the party discipline which brought harmony out of practically irreconcilable differences and enacted a law which, although it will probably nevvjr be called into action, constitutes an insurance against recurring monetary stringencies and their consequent panics. Moreover, the constructive ability which made this law possible furnishes an earne.st of the highly desirable results to be expected from the work of the National Monetary Commission, which has been created to evolve a new financial system which shall obviate all reasonable objections to exi: ting methods and place the federal finances on a basis as sound as the demands of a rapidly and steadily growing country and a constantly expanding commerce require. Aside from the financial law, the legislation of this session is com- posed of a great number of comparatively small laws, thoughtfully con- ieived and perfected with much hard work and care, the aggregate con- ritituting a highly valuable addition to the federal statute ■, although few are in themselves of outstanding importance. The work of the Senate In perfecting and approving international conventions must compel ad- miration from every student of public affairs. The most perfect harmony and cooperation have existed between the Department of State and the Senate, and rarely has the Committee on Foreign Relations held a formal meeting without the attendance of Secre- tary Root, whose wise counsel has been eagerly sought, whose lucid ex- planations and logical arguments have proved invaluable to the com- mittee, with the result that forty-one treaties have been ratified and only one is left for further consideration, the international convention goverijing the operation of wireless telegraphy. Three Hague conventions have been left without action, but two of theSe were not signed by the American olenipotentiaries to the second Hague convention, and ratification of the ,hird was not urged by the Secretary of State. The cause of arbitration has been promoted by the ratification of treaties with twelve of the great powers ; the approval of eleven Hague conventions will materially make for peace and diminish the hardship to non-combatants in international wars, while treaties with Japan protecting the integrity of American trademarks and copyrights from imitations and infringement by Japanese citizens in China and Korea will go far to dissipate a hitherto productive source of friction between this country and Japan. The skillful negotiations of the representatives of the United States and Great Britain and the cordial cooperation of the Senate have removed numerous obstacles to the friendly relations of Canada and this republic, and the result of the conventions ratified will be the impossibility of boundary and jurisdiction controversies. One of the most important laws enacted perfects former legislation increasing the efficiency of the militia. Under the former law the equip- ment of the militia with arms and accoutrements similar to those of the regular army was partly accomplished, but the new statute practically makes the national guardsmen an integral part of the national military establishment, subject to the call of the President in time of need, ob- viating the necessity, of reorganization and even partial re-equipment pf the state forces during the stress of threatened hostilities. True to its promises as expres.sed in several national platforms the Republican party has cheerfully acknowledged the arrival of the hour when the existing tariff schedules must be readjusted to meet new con- ditions, and both houses of Congress have made ample provision for the accumulation and compilation of such information as may be needed in the revision scheduled to occur at a special session of Congress to be held next spring. Responding to the recommendation of the President, the Congress has made provision for an act of international justice and generosity only paralleled by the relinquishment of the control of Cuba — the voluntary remission of more than $10,000,000 of the Indemnity exacted from China to meet damages resulting from the Boxer uprising. Generous provision has been made for the extension and completion of the national defenses by the addition of two modern battleships to the navy, besides several smaller vessels ; the fortification of Pearl Harbor and the establishment there of an effective naval base, the (y)mpletlon of several coaling stations already begun, and the perfection of modern sys- tems of fire control, the installation of up-to-date batteries and the con- 332 THE SIXTIETH CONGRESS. 323 struction of modern ordnance for coast defenses already established. Proper pr'ovi.'-ion has been made for the increased demands of the modern navy by increasing the personnel by six tliousand men and the marine corps by six hundred officers and men, and the pay of the army, navy and marine corps has been increased in accordance with the demands of modern civilization and the increased requirements of foreign service and numerous and long tran fers of station. The Republican party has pursued its customarily generous course to- ward the veterans of past wars and has cared for the dependents of the men who have given their all to their country by an increase of the small stipends of their widows by 50 per cent. The Philippines have not been forgotten, an additional member having been added to the islands commission and the application of the coastwise laws of this country to the archipelago having been suspended in the interest of Philippine commerce and prosperity. In the light of experience gained from past misfortunes the navigation laws of the country have been revised and strengthened at every point, and the safety of those who for pleasure or duty go down to the sea in sh'.pb has been enhanced and safeguarded in every possible manner, in- cluding the establishment of numerous additional lighthouses, placing of buoys, and the control of the vessels and their crews. Labor has been cared for in many ways. A revised employers' lia- bility law has been enacted to replace that declared unconstitutional by the Supreme Court ; a federal liability law. protecting those government em- ployes engaged in hazardous ui.dertakings has been placed in the statuteb, and only the extravagant demands of certain labor leaders have prevented (he enactment of an equitable anti-injunction law, to which subject the entire Republican membership of the House devoted many hours ; and for the juvenile wage earners a child labor law has been enacted for the District of Columbia which it is hoped and believed will serve as a model for numerous state statutes. Matters Left for Future Action. Among the measures left for further consideration at the next session of Congress are some of the most spectacular propositions of the -session, some policies urged by the President and other- advocated vociferously in the public prints, many, perhaps, of hardly equal importance to measures which have been enacted without attracting exten'-ive popular attention. But intelligent examination of these policies and propjsed laws reveals the fact that they are replete with difficulties, and that only that prudent deliberation which has ever characterized the legislative work of the Re- publican party can in ure the sirccess of such policies when finally enacted and avert ttie pitfalls offered by hasty or incon iderate action. M ich time and thought have been devoted at this session to every important subject which failed of action, time and thought which must ultimately re- sult in wi'e legislation free from those errors of Kplicy and inaccuracies of statutory expression which are inevitable concomitants of hasty consider- ation of important and intricate leglislative problems. liniiortant La^vs Enacted. Sixtieth Congress, First Session, December 2, 1907, to May 30, 1908. Financial law whereby banks in periods of financial stringency may issue currency to the amount of $500,000,000, depositing as security therefor bonds, commercial paper or other assets, such emergency currency being so taxed as to insure its retirement as soon as the stringency ha« passed. Customs law changed so that importers must present all evidence iri appeal before board of appraisers, simplifying procedure, increasing ap- praisers' salaries and making them removable only for cause. Militia made integral part of the national military establishment, with additional appropriation of $2,000,000 for equipment, etc., making total annual appropri.-'.tion for militia of $5,000,000. Public buildings bill, authorizing many needed structures, purchase of sites, etc., including site for Departments of State and Commerce and Labor, adjoining Treasury and White House grounds. Nfvtional monetary commission created to devise a s'ound monetary system for the government. Two new battleships, at cost of $6,000,000 each, exclusive of armor and armament ; ten torpedo boat destroyers, three steam c'olliers and eight submprin'cf-. Ccn I'lar service reorganized, abolishing unnecessary consulships and cons;\l generalships and establishing those most needed. Widows' pensions increa'-ed from $8 to $12 a month and certain un- necessary re^ frictions abolished. Importation of impure tea, tea siftings, etc., prohibited. "In God We Trust" restored to gold and silver coins. Investigation of tariff, preliminary to revision, confined to Ways and Means and F"inance committees. Model child labor law for District of Columbia. Employers' liability bill enacted to replace that pronounced uncoij- stitutional by Supreme Court. Government liability law, providing compensation to all federal em- ployes for injuries received in line of duty. Additional safeguards pr'ovided for regattas. Provision for fortified naval base at Pearl Harbor, Hawaii, for Hawaiian drydock and the completion of coaling stations at San Diego and Calif^irnia City Point. Efficiency of army medical corps increased by additional officers and creation of reserve medical corps. Game in Alaslis protected. Increasing arnty pay, officers approximately $500 a year each and enlisted men about 40 per cent, increase applying to both retired aiul acthC lists. 324 TUB SIXTIETH CONGRESS. TppTMsing niivy pay, oflioers nn, 00 oi ua- ti<>nHl wealth $94,186,7(6 226, 185, (;2:) I 313,921, t/ll 171,335,1^01 $5.8 9.4 721,736,53.) 7.9 $-)6J.252,63l 14537147^085 $3.3 a Estimated on basis of increase 1900-1901. The expenditures of the National Government payable from taxation may be coinpared with the general property taxes levied for the support of State and municipal governments. The tax levies for State and munic- ipal governments were ascertained by the Bureau of the Census for 1880, 1890, and 1902. For 1880 the per capita of such levies was $6.26, and In 1902, $9.22. In twenty-two years it increased 47.3 per cent. The per capita of national expenditures payable from taxation in 1880 was $5.28, and in 1902, $5.91, and in 1907, $6.77. The percentage of in- crease from 1880 to 1902 was 12, and from 1880 to 1907, only 28.2. The former was only a fourth and the latter barely 60 per cent of the corresponding percentage of increase of State and local taxation for twenty-two years. State and 'local taxation is increasing proportionately with national wealth and the ability of the people to meet the added costs of local government, while national expenditures-^though growing rapidly — do not keep pace with the increasing national wealth ; and so the burden of National Government becomes pm.aller and smaller with the passing of the decades — at least, that has been the general trend of affairs since the middle of the nineteenth century, in spite of the cost of the civil war with Its legacy of heavy interest and pension charges. THE IVOOD PUL,P AND PAPER INVESTIGATION. The following are extracts from the report of the House Com- mittee appointed to inquire into the complaint that prices of news-print paper had been arbitrarily and unjustly advanced by a trust or combination : The select committee of the House appointed to inquire into the ele- ments and conditions involved in the production and supply of wood pulp and print paper in so far as the same are or may be affected by any com- bination or conspiracy to control, regulate, monopolize, or restrain inter- state or foreign commerce and trade in the manufacture, supply, distribu- tion, or sale of wood pjilp or paper of any kind, or any of the articles en- tering into the same, or any of the products of paper, and how far the same may be affected by the import duties upon wood pulp or paper of any kind, and how far the same may be affected by the rapid destruction of the forests of the United States and consequent increase in the price of wood which enters into the manufacture of wood pulp, and also to in- quire whether the present prices of print and other paper .are controlled in whole or in part by any combination of persons or corporations en- gaged in commerce among the several States or with foreign nations, and ^28 thf; sixtieth congress. If so. to Inquire into the orgaiiizutiou, methods, and practices of such cor- porations or peraons', and also to inquire into certain alleged facts and to obtain all possible information in regard to the same, beg leave to sub- mit a partial and preliminary report and to say that since its appoint- ment (he I'ommittce has boon diligent in making its investigation, and the members of the committee have devoted practically their entire time Blnoe appointment to the work of the committee, neglecting their other ofRcial duties for that purpose. The committee listened with interest, attention, and care from April 25 to May 14 to the witnesses appearing in behalf of the contentions of the American Newspaper Publishers' Association, and followed with painstaking care the statements made and evidencre presented by Mr. John Norris, who appeared as the special representative of that associa- tion. Every opportunity has been given to newspaper publishers to present evidence before the committee, though not all of the publishers who offered to appear or whom the committee would like to hear have yet been ex- amined. Th addition to the testimony presented before the committee, your committee sent out, May 6, 7,000 letters to various newspapers and other publications throughout the country. Contention of PubliMliers. It has been the contention of the newspaper publishing interests — First. That the price of news-print paper wa.s_. advanced in Septem- ber. 1907, to $50 per ton in New York and corFeapondlngly elsewhere, a figure that was claimed to be $12 per ton in advance of the price ol two years previous, and that a still further advance was threatened of $10 per ton more, thereby planning, as claimed, an advance of $22 per ton. Second. That the advance actually made and the planning of a fur- ther advance were both the result of a combination or conspiracy en- tered into by the news-print paper manufacturers or their selling agents. Third. That such advance in price and such combination to make further advance were caused, or at least in part aided, by the tariff duties imposed on wood pulp and print paper, and hence that, in justice to the newspapers and other printing and publishing interests of the country, the duties on pulp and paper should be repealed. Fourth. That the decree of the United States court dissolving the General Paper Company had been willfully violated by paper manu- facturers in Michigan, Wisconsin, and Minnesota, parties to that decree, who had in violation of the decree acted in concert and agreed as to prices and to the imposition of conditions upon the manufacture, sale, and distri- bution of the paper manufacturei. The above may not completely state the contention of the newspaper publishers, but it gives a general and fair idea of their claims. One of the inquiries submitted to your committee was to the effect of the destruction of the forests of the United States upon the production, supply, and price of wood pulp and print paper. It appears that the average price received by the International P^per Company for paper delivered was, in 1900, $2.06; in 1901, $2.12; in 1902, $2.07; in 1903, $2.14: in 1904, $2.12; in 1905, $2.07; in 1906, $1.99; in 1907, $2.05. and for the first three months of the current year, $2.20 per hundred pounds. The average selling price of the St. Regis Paper Company per hun- dred pounds of news-print paper f. o. b, mill for January, 1903, waa $1.75; January, 1904. $1.75; January, 1905, $1.74; January, 1906, $1.47; January, 1907, $1.75; January, 1908, $2.13. The evidence shows that at this mill, while the selling price f. o. b. .mill had increased from $1.75 in January, 1903, to $2.13 in January, 1908, the cost of production, ex- cluding interest and depreciation, had increased from $1.30 in January, 1903, to $1.61 in January. 1908, and that in January, 1906, while the aver- age selling price was $1.47 the average production cost was $1.54. Combination in Restraint of Trade. The evidence before the committee so far fails to prove any combina- tion of print-paper manufacturers to advance prices or otherwise in re- straint of trade, but considerable evidence was presented which might excite suspicion that such a combination had been made and was in existence. Evidence was presented in relation to a combination of manila and fiber manufacturers, and it seems to be admitted that that combination did exist, has since been dissolved with a fall in the price of its products, and is now under investigation through the Department of Justice in the United States court at New York. Such of the paper manufacturers as have appeared before your com- mittee during its hearings have strenuously and completely denied under oath the existence of any combination, agreement, or understanding of any nature whatever among the paper mannfacturers or their selling agents to regiiiat*, control, or advance the price of paper, the assignment ol custom ej-s, or for any other purpose in restraint of trade. Increased Cost of I'roductloii. The mill owners In.sist that there Lias been a decided increase in the i cost of producing paper, caused — ^ I First. By the increase in the cost' of pulp wood and wood pulp. 1 Second. By increase in the wages of 1 le employees. Third. By reduction of the hours of lab n- per employee per day. Fourth. By the increase in the cost of other articles which enter in- to the production of paper. THE SIXTIETH. C0N0RES8. 929 Increased Cost of Wood Pulp. There seems to have been a decided Increase in the cost of pulp wood. This is admitted by everyone. The««,verage cost to the International Paper Company of pulp wood in the rough per cord, delivered at the mill, from 1898 to 1908 is stated to us as follows : 1898 $5.33 1899. 1900. 1901. 1902. 1903. 5.26 6.07 6.43 6.83 6.77 1904 1905 , 1906 1907 1908 (first three months) $7.49 7.79 8.00 8.54 10.14 The average cost to the Northwest Piiper Company, at Cloquet, Minn. for pulp wood per cord, in the rough, 8-foot lengths : 1902 $3.15 1903 3.40 1904 3.60 1905 $4.10 1906 6.15 1907 7.40 There seems to have been a considerable increase in the average weekly wage of the employees in the paper and pulp mills. This increase has not been greater than seems to your committee to have been necessary, owing to the increased cost of living, and the wages now paid in the paper and pulp mills would not be generally cousidored high as compared with other skilled labor, though this may be largely owing to the fact that the mills are generally located on streams apart from large centers of population. Some Increase in the Price of Paper Jastifted. It. would appear that the increase in tlie value and cost of pulp wood, the increase in wages, the decrease in the hours of labor of many of the employees, and the increase in the cost of other materials used, justi- fied some increase in the price of paper ovei the prices previously prevailing, notwithstanding «ome economies perfected in the production of pulp and paper. The International Paper Company 1., the largest producer of news- print paper in the United States, and produces from 30 to 40 per cent of the entire output. The evidence shows that the net earnings of that company for the fiscal year ending June 30, 1901, were $3,054,00) ; that the average net earn- ings of the company for the fiscal years from 1899 to 1905, inclusive, were $2,316,000 ; that for the fiscal year ending .June 30, 1906, the net earn- ings fell off to $1,985,000, and for the fiscal year ending June 30, 1907, to $1,623,000 and for the first six months of the calendar year 1907, to $777,000 : that about the middle of the calendar year 1907 the manufactur- ing department of the said company submitted reports, showing an estimated increased cost of production for the calendar' year of 1908 of $1,500,000 over that for the fiscal year ending June UO, 1907, based on the same quantity of paper. ^. . ■ . \ ^ , 0^m. -w0 fiiK^^-.^ Canadian Comi»etition. The principal competition with the newt-print paper and pulp mills of the United States comes from the Canadian mills. From Canada we import a large and rapidly increasing amount of pulp wood. We also import a considerable quantity of wood pulp and are .aow importing some quantity of news-print paper. Exportations from C'tmada. Some of the provincial governments in Canada now discriminate against pulp wood for exportation. It is said that most of the forests in the Prov- inces of Quebec and Ontario suitable for pulp wood are public, or Crown lands belonging to the provincial government.;. The Province of Quebec makes a license or stumpage charge of 65 centi, for each cord of pulp wood cut on its Crown lands, with a rrduction or rebate of 25 cents for each cord manufactured into pulp within the Dominion of Canada. This amounts to an exnort charge of 25 cents per cord, or nearly 40 per cent of the original license or stumpage charge. It is from the Province of Quebec that most of the pulp wood now imported into the United States is obtained. Wisconsin and othiir western paper and pulp mills could much more cheaply obtain wood \pulp from the Province of Ontario than from Quebec, but the Province of Ontario absolutely prohibits the exportation from Canada of any pulp wood cut on its public lands, though permitting such cr.tting for manufacture at home. The committee is firmly of the opinion that ih; tariff on news-print paper and on wood pulp should not be removed as to paper or pulp coming from any country or place which prohibits the e.tportation of pulp wood, or which levies any export duty on paper, pulp, cr pulp wood, or makes any higher charge in any way upon wood pulp or pulp wood intended for ex- portation to the United States. The evidence taken so far would seem to indicate that the temporary suspension or entire removal of the present tariff would not have any great immediate effect, and if the tariff is remo\ed at any time it should be coupled with the right to free exportation of pulp wood from the Cana- dian forests. The removal of the tariff on print paner and wood pulp, if followed by an eXTport duty on pulp wood coming Vrom Cinada, would prob- ably result in a cou'^^iderable increase in the price of print paper and the early destruction of tlie pulp wood forests in the United States. A low or even moderate price for print paper in the future is de- pendent mainly upon the future supply and co,;t of pulp wood. Ab vat one-third of the pulp wood now consumed in the manufacture of paper by our mills is imported from Canada. If an exi^Drt duty should be levied by Canada upon the exportation of pulp wood, oi if the Province of Que bee should follow the example of the Province of Ontario and entirely pro- 330 THE SIXTIETH CONOREBB. hiblt the exportation of pulp wood cut on its Crown lands, the cost of pulp wood In the United States would bo greatly enhanced and the price of paper would go up. A mistaken policy might easily p»ove of inestimable damage and cause the practical destruction of the cheap daily newspaper. It would seem thai for the American publisher to be assured of low prices for his paper, it is es.scntial to maintain papor mills in the United States. Any policy that would give the Canadian mills a prefe.■•e^ltial advan- tage over American mills in obtainint;; the raw material at a l^^ver price must inevitably result in the dismantling of American paper machines and the ultimate dependence of American publishers on Canadian mills. Under such conditions Canada could levy export duties on print paper that would result in enhanced prices without the presence of competition from American paper manufacturers. So far ai^ the information yet presented to the committee discloses the facts, your committee is Inclined to the opinion that if the American mills can obtain pulp wood from CanoJa on even terms with the Canadian mill^^, they can make ground wood pulp as cheaply as it can be imported from Canada free of any duty. What effect the removal of the tariff upon piper would have as to Norwegian and other European compr'titi.in, your com- mittee is at present unr>ble to say, though it has been claimed before your committee that the wages paid in European countries are only one-third to one-half of the wa??ts paid in the mills of the United States, and that under free trade competition the low wages in the European countries would be disastrous to the wage scale and the hour scale in the American paper mills. Your committee proposes during the summer vacation to continue its investigation and expects to be able to present to the House at the next session of Congress df^flnite recommendations, based upon complete informa- tion thoroughly considered, as to the various matters of Inquiry submitted to the committee. What I nin anxious to eninluiKlze is tliat there is a Tvide economic and hnMineitei fle!d in which the interests of the Ti-ealthiest ca:!>itaIiNt and the liunihlest laborer are exactly the same.— Ho-n. Wm. H. Taft, at Cooper Union, New York City Tlie tarlflf affects trnsts oi«ly as it aflfects all other In- terests. It makes all these interests, larsre or sianll, profit- able; and its benefits can be talcei'i from the !ar;i,e only under penalty of talcing- them from the small a' so. — I'resident Roose- velt at Minneapolis, Minn., April 7, 19<)3. It is sreatly in the Interest of tlie ^vorlcinsnian, there- fore, that corporate capital should be fairly treated. Any Inlnstice done to it acts directly u»»on the MraR-e-enrners, ^rlto miuit look; to corporate wealth for tlieir emtiloyment. —Hon. Wm. H. Taft, at Cooper Union, New York City. Our ainj should be to preserve tlie policy of a protective tariff, in which the nation as a whole has acqnlesced, and yet vrherever and whenever necessary to chanj^e the duties in particular paragraphs or schedules as matters of lej^lsla- tlve detail if such chanse is demanded by the interests of the nation as a whole.— President Roosevelt at Minneapolis, Minn.. April 4, 1903. The eflfect of the organization of labor, on the whole, has been hlKThly beneficial in secnrinjg' better terms of em- ployment for the whole laborinjur community. I have not the sliKThtest flonbt, and no one >vho knows anythiuHr about the subject can doubt, that the existence of labor unions steadies waftes.— Hon. "Wm. H. Taft, at Cooper Union, New York City. * * Because there are men prominent leoples throw upon the De- partment of State an enormous amount of work. It is no exag-geration to say that the work of that Department today is at least eight times as great as it was ten years ago. Consideration of the series of important events in the Orient, the open door policy in China, the insistence upon Chinese territorial and administrative entity during the Boxer trouble, the settlement of the Panama Canal question, the growth in the authority and recognition of the Monroe Doctrine after Mr. Hay teecame Secretary of State, the expansion of foreign markets for American goods. Secretary Eoot's efiicient sui)port and emphatic insistence upon the application of the principle of international arbitration in a practical way to disputes between nations, the great improvement broug-ht about by him in the diplomatic and consular service, and the closer relations betweeai the United States and Latin America, will show in what direc- tions have been our greatest activities and achievements in the world of diplomacy, and what they are likely to be in the imme- diate future. No period in the history of the nation has been richer in diplomatic triumphs of an important and far-reaching character than the last ten years. Settlement of Large Claims of American Citizens ag^ainst Foreign Governments. During the administration of Presidents McKinley and Koose- velt there were collected and settled through the Department of State and its representatives abroad claims of American citi- zens against foreign governments amounting in the aggregate to the enormous sum of $27,546,892.28. This record illustrates and marks one of the greatest practical achievements of our diplomacy. Equal in importance with the practical pecuniary triumph and of the vast sum of money gained through the medium of pacific adjustment for American claimants was the great ga'n in international good feeling due to the settlement of the many disputes of long standing growing out of these claims. Many Important Treaties Made., The record of the Department of State in the matter of treaty making' during the last ten years is a noteworthy one. The treaties range in subject from the settlement of claims of pri- vate citizens to the control and construction of the Panama Canal and the settlement of the fisheries controversy with Great Britain, which has extended over nearly a century. Among the more important of .these compacts are those pro- viding for the extradition of fugitives from justice, the list including conventions with Belgium, Bolivia, Brazil, Chile. Den- mark, Great Britain (a supplementary treaty extending the cata- logue of extraditable crimes), Guatemala, Mexico (with which 331 332 STATE DEPARTMENT— TREATIES MADE. power also a supplemental agreement was concluded adding bribery to the list of extraditable crimes), Peru, Servia, Switzer- land, and the Netherlands. This series of treaties, together with the extradition con- vention preceding it and with i)euding negotiations, closes the doors of almost all the civilized nations of the world against fugitives from justice of the United States. Other treaties of marked importance are the peace protocol ;iMd peace treaty with Spain, of August and December, 1898v respectively; the cession of outlying islands of the Philippines; the real and personal property convention with Great Britain, providing for the holding and disposition of real and personal property of aliens by will and deed on a liberal basis; a treaty with Guatemala to the same effect ; trade-mark conventions with Japan and Guatemala, securing equal protection with that afforded native subjects and citizens ; a temporary arrangeaient of the disputed Alaskan boundary question in October, 1899 ; the appointment of a joint commission to consider for settle- ment questions at issue between the United States and (Jreat Britain respecting Canada ; the adhesion of the United States to the additional articles to the Bed Cross convention ; the ar- ticles concerning naval warfare — a great humanitarian gain ; the adhesion of this Government to the International Conven- tion of Brussels of 1899, for the regulation of the importation of spirituous liquors into Africa ; the canal protocols of Decem- ber 1, 1900, with Costa Rica and Nicaragua, providing a meoris of agreement for the construction and control of an inter- oceanic canal by the Nicaragua route. From 1898 to 1900 reciprocal commercial arrangements were entered into with France, Germany, Italy and Portugal, under section 3 of the tariff act of Congress of 1897, and in 1899 the United States participated in and became a party to the Hague Conventions, for arbitration of international disputes, for regulating war on land, for regulating maritime warfare, and the declaration to prohibit for five years the launching of projectiles and explo- sives from balloons, and other new methods of a similar nature. During the past ten years numerous claims of private citi- zens have been settled by special negotiations between our own Government and those against which the claim was preferred, the foreign governments concerned being Guatemala, Haiti, Mexico, Nicaragua, Peru, Salvador, Santo Domingo and Vene- zuela, while by the treaty of March 24, 1897, the Chilean Claims Convention of August 7, 1892, was revived and additional claims adjusted. It is hardly necessary to add that this Government bore a most material share in the settlement of the international difficulties in China after the Boxer revolutionary movements, culminating in the final protocol of September 7, 1901. It may be noted here that this Government has recently given evidence of its friendship for China by legislation which authorizes the remission of all punitive damages for the Boxer rebellion of 1900 and the reduction of the indemnity bond, given by China to the United States after that rebellion, from $24,000,000 to $13,000,000. This is also an exhibition of that spirit of justice and fair dealing that has characterized the international relations of the United States during the past ten years. Treaties Neerotlated During tlie Aclmlnistrntion €»f President Roosevelt. Among the proclaimed treaties the more important are the Hay-Pauncefote treaty (second) of November, 1901, to facilitate the building of the Panama Canal ; the canal treaty with the Republic of Panama ; the Alaskan boundary treaty ; the Pious Fund arbitration treaty; the treaty of friendahij^ with Spain; the commercial treaty with China and extradition treaties with Belgium, Denmark, Guatemala, Mexico (supplementary), and Servia ; the series of arbitration treaties ; the treaty for the settlement of the Northeastern Fisheries question ; and the German and French commercial agreements, by which threatened tariff Avars were averted by mutual concessions made uiulcr the authority given to the President in the third section of the Ding- STATE DEPARTMENT—TREATIES MADE. 333 ley Tariff Act. The supplementary extradition treaty with Mexico is specially noteworthy as providing for the extradition of bribe givers and bribe takers, tlie crime of bribery being thus added to the existing list of extraditable offenses. The Hay-Pauncefote treaty (of November 18, 1901) by repeal- ing, or rather by superseding, the Clayton-Bulwer treaty (of April 19, 1850) cleared the way for direct negotiations for the construction of an interoceanic canal. Inunediate advantage was taken of this fact and the Hay-Herran canal treaty was concluded January 22, 1903, but subsequently rejected by Colombia. The Panama treaty (November 18, 1903) followed, and was proclaimed February 25, 1904, assuring the construction of a canal. The Alaskan boundary convention (January 24, 1903) pro- vided a tribunal by which the last important question at issue between Great Britain and the United States was satisfactorily adjusted almost entirely in accordance with the points claimed by our Government, one of the British members of the tribunal participating in the decision so largely in accordance with our contention. The treaty with Mexico for the arbitration of the Pious Fund claim is distinguished not only as providing for the set- tlement of an important question long open, but also as submit- ting the first international case to the Permanent Court of Arbitration at The 'Hague. By a later international agreement this Government participated in a convention for the submission to the same tribunal of the question of preferential treatment of recent claims against Venezuela. In addition to the commercial treaty with Cuba, by which preferential benefits are secured to both contracting govern- ments, an agreement providing naval and coaling stations for ships of the United States has been concluded and proclaimed, as well as two others — one respecting the status of the Isle of Pines, and the other defining our relations with Cuba. The commercial treaty with China contains several very important provisions, besides a satisfactory tariff schedule. The Likin tax (the collection of a tax on goods in transit with- in the Empire) is a^^olished ; revision of Chinese mining regula- tions is secured ; protection in the use of trade marks and ownership of patents is stipulated ; a uniform national Chinese coina"^e is projected ; but more important than all, two new ports are opened to foreign trade in China, namely, Mukden and Antung, in INIanchuria, with the result not only of strength- ening American policy of the open door, but also that of main- taining Chinese jurisdiction in the territory, and tending to the integrity of China. Three agreements Avith Spain have been perfected, that of July 3, 1902, reestablishing friendly relations and containing the provisions general in treaties of friendship — trade, residence, property and testamentary rights, diplomatic and consular priv- ileges, etc. Another (January to November, 1902), by exchange of diplomatic notes, restores the international copyright agree- ments; while another, earlier (August to November, 1901), by exchange of notes and a joint declaration, facilitates the ex- change of letters rogatory between Porto Rico, the Philippine Islands and Spain. Other treaties are, a consular convention with Greece (No- vember, 1902) ; a trade-mark agreement with Germany for Morocco ; the reciprocal commercial agreement with France (August 20, 1902) under section 3 of the existing tariff act; treaties for the settlement of claims with Venezuela, the Do- minican Bopublic, Salvador, and Brazil ; naturalization with Haiti ; import dvities and light and harbor dues in Zanzibar ; treaties with Luxemburg and Roumania for the protection of trade marks ; extradition treaties with Cuba, Panama, Haiti, Denmark. Japan, Great Britain, Nicaragua ; a copyright treaty with Japan"; a treaty with Great Britain for surveying and mark- ing the Alaskan Boundary ; conventions with Mexico for an equitable distribution of the waters of the Rio Grande ; con- ventions for the amelioration of the wounded in armies in the 384 STATE DEPARTMENT— INTERNATIONAL PEACE. field and for the exemption of hospital ships in time of war from payment of harbor dues ; a treaty for the establishment of an international Institute of Agriculture at Rome; treaties of ar- bitration with France and other powers. Work in the IntereMt of International Pence. Upon the initiative and through the mediation and powerful influence of President Roosevelt the Envoys of Russia and Japan were brought together on the 5th of August. 1905, on the neutral and friendly territory of the United States and the war between the two nations — the greatest war of modern times — was brought to an end by the treaty of peace signed at Portsmouth on the 5th of September, 1905. When the dispute between Germany and France regarding the right of control in Morocco threatened to involve all Europe in war, and a conference was called at Algeciras on January 16, 1906^ to consider the various questions, the active influence which its own disinterested position enabled the United States to exer- cise, both directly and through its representative at the con- ference, played a great part in bringing about the peaceful solution reached on April 7, 1906, after a session of three months. The German Minister for Foreign Affairs testified in the Reich- stag to the work of the representative of the United States at that conference in the following words : "I wish to avail myself of this opportunity to declare that we have reason to be grateful to America for its attitude at the conference. • * It maintained its neutral position throughout, but its distinguished and highly respected representative, Mr. White, omitted no opportunity to remove difficulties and to aid toward an agreement which should be satisfying to all the parties in Interest. That was a great service which America rendered to the peace of the world, because the failure of the conference of Algeciras would not only have broken the relations between Germany and France, but would have disturbed the general political situa- tion of the world. • ♦ * This was the second great service which America rendered to the peace of the world, the first being, the reestablish- ment of peace between Japan and Russia." The United States and Mexico have been cooperating to bring about better conditions which would put an end to all discord and restore peace and prosperity in Central America. ,\t the instance of the United States and Mexico a Peacs Con- ference of all the five Central American' countries was held in Washington in November and December, 1907, and at this conference, which was attended by representatives of the United States and Mexico, a series of treaties was made of the f>reatest practical importance, among them being a treaty which provided for a pei'manent international court for the trial and decision of all questions whatever arising between Central American countries. This court has just been inaugurated in Costa Rica. A long step has been taken in the direction of prosperity and peace in Central America and the United States has won the gratitude which is freely expressed by the good and peaceful citizens of all those countries. International Arbitration. The administrations of McKinley and Roosevelt have been distinguished by the efforts put forth to promote peace among the nations and alleviate the evils of war. President McKinley was active in seeking to have incorpora- ted into international law the principle so long advocated by our country of the exemption of private property on the sea from seizure during war, a measure so greatly desired in the interes-t of maritime commerce. He instructed our delegates to the Hague Peace Conference in 1899 to urge this principle, and when the conference decided that it had no jurisdiction over th^ subject he asked Congress to authorize him to bring aliout an international conference for the consideration of this subject and President Roosevelt has renewed the recommendation to Congress. The United States was among the first of the Powers to re- spond favorably to the request of the Emperor of Russia in 1898 for a peace conference. One of the few practical results of that conference was the arbitration convention, which was brought STATE DEPARTMENT— INTERNATIONAL PEACE. 335 about mainly by the efforts of the American deleg-ates. Presi- dent McKinley had the honor of sending- to the Permanent Ar- bitration Court established by that convention the first case ever submitted to it. A notable opportunity was presented to President Eoosevel*, in 1903 to show^ his faith in international arbitration and in the efficacy of The Hague court. He was called upon by Great Britain, France, and Italy to arbitrate their differences with Venezuela, a distinguished mark of confidence in his ability and impartiality. But he declined the honor and referred the war- ring powers to the Permanent Arbitration Tribunal as the proper place to adjust their controversy. The delegates of the United States to the Pan-American Con- ference of the American Republics, which met in the City of Mexico in 1901-2, were prominent in the adoption of a number of conventions and agreements for the better regulation of the commerce and intercourse of the American states, and among these was a convention for the settlement by arbitration of claims not susceptible of diplomatic arrangement. But while President Roosevelt has committed himself so heartily to international arbitration, he recognizes that there are some political questions which jnay not be proper to submit to such an adjustment. The Alaskan boundary had in recent years become a matter of serious controversy, and stood as an obstacle to the maintenance of peaceful relations with Canada. In vievVHof our long and undisputed occupation of the territory in question- the President declined to allow the reference of the controversy to The Hague court, but instead he proposed the creation of a judicial tribunal of an equal number of mem- bers from each country, feeling confident that our claim would be established by such a body. Against much opposition and prediction of failure such a tribunal was created, ami its de- cision has happily confirmed the wisdom of the Pr^v-ident's action, peacefully settled this irritating controversy, and re- stored good relations with our northern neighbors. It has proved one of the most notable diplomatic triumphs of our Government. With the active participation of the delegates of the United States, the Second International Peace Conference at The Hague in the summer of 1907 entered into agreements which consti- tute one of the greatest advances ever made towards the rea- sonable and peaceable regulation of international conduct. Twelve treaties agreed upon at that Conference, all designed for reducing the probability or mitigating the horrors of war. have been approved by the Senate and ratified by the President of the United States, Important among these treaties was the agreement proposed and urged upon the Conference by the United States, under which all the civilized powers agree not to use force for the collection of contract debts claimed by their citizens against other coimtries, so long as the alleged debtor seeks the protection of arbitration as to the justice and the amount of the debt or time and mode in which it ought to be paid. Following the action of The Hague Convention in providing greater facilities for the use of the Permanent Court of Arbi- tration at The Hague, the United States has concluded general treaties of arbitration with England, France, Spain, Portugal, the Netherlands, Denmark, Sweden, Norway, Switzerland, Italy, Mexico, and Japan, while many other similar treaties are m course of negotiation. Under the general treaty with Great Britain the two countries have agreed to arbitrate before The Hague Tribunal the difficult and vexatious questions which ruv more than a century have caused so much ill-will and controversy regarding the rights of our fishermen in the fisheries on the coasts of Newfoundland and the maritime Provinces of Canada. Negotiations for the settlement of the various controversies with Canada have been undertaken and great progress toward the complete settlement of the controversies has been made. The Surveyors appointed by the two countries have nearly com- pleted the marking of the boundary of Alaska in accordance with the decision of the Tribunal of 1903, a new treaty has been made for the adjustment of all other questions relating to the 886 8TATB DEPARTitENT— INTERNATIONAL PEACE. determination of the bo^ndary from the Atlantic to the Pacific, the Northeastern fisheries question is abont to be disposed of by an agreement for arbitration under the general treaty, a new treaty has been made for the making and enforeement of joint regnlations for the preservation of the food-fish sui)ply in all the boundary waters, including both the Great Lakes and the Atlantic and l*acific waters, and a treaty has been Uiade giving reciprocal rights for the conveyance of prisoners across each other's t,erritory and the rights of wrecking and salvage in each other's waters. The questions between Japan and the United States which caused so much public excitement in 1907 have been disposed of to the satisfaction of the people of both countries. The San Francisco school question has been settled pursuant to an understanding with the San Francisco School Board ; the im- migration of Japanese laborers is being regulated by the con- current action of the President, under authority conferred upon him for that purpose by the Congress, and of the Japanese Government. The friendship and sympathy between the two Governments have now been signalized by the general treaty of arbitration concluded between them ; by treaties for the pro- tection of copyrights and trade-marks in China and Korea ; by the invitation and acceptance of the invitation for the visit of our fleet to Tokyo and by the response of the United States to the invitation of Japan to participate in the great exposition which is to be held at Tok^'^o in 1912, for which Congress has authorized the expenditure of one million and a half of dollars, the greatest sum ever appropriated for a foreign exposition. The United States has secured the assent of all the nations having possessions in the Orient to a united effort with China to put an end to the curse of opium in the Orient and an in- ternational conference under the leadership of the United States has been agreed upon to meet at Shanghai on the first of next January for the purpose of devising and formulating an inter- national agreement to prevent the production, sale, and use of opium. Visit of the Secretary of State to Sonth America and Me.vico. In August, 1906, the participation of the United States in the Pan-American Conference at Eio de Janeiro and the visit of Secretary Root to that Conference and to all the principal maritime countries of South America put an end to the sus- picion and distrust with which the growing power of the United States was regarded by the Latin-American races, and began a new era of friendship and sympathy between all the American Republics. This has been followed and added to by the Secre- tary's visit to Mexico as the guest of the Mexican Republic of October, 1907, and by the visit of the American fleet to the chief maritime republics of South America, and by the enlarged and great development of the work of the International Bureau of the American Republics for the dissemination of knowledge and the cultivation of trade and friendly relations between the different American countries, for which all the Republics are uniting in the construction of a splendid building in the City of Washington. ' ' fitestoration of Peace in Santo Domlnpro an«i in Cul»a. For many years Santo Domingo has been the scene of a series of revolutions which de^'astated the country, crushed out all progress, and left the Treasury in utter bankruptcy, with a host of insistent creditors, both foreign and domestic. In the face of imminent likelihood of another revolution and foreign intervention a treaty was concluded between the United States and S^nto Domingo, with the approval of the United States Senate, under which, by the appointment of an American agent to collect Dominican cu.stoms revenues and apply the surplus toward the payment of the Dominican debts, complete peace has been maintained for four years past, the commerce and in- dustry of the island have revived, the revenues have doubled and the nominal indebtedness of over $40,000,000 has been adjusted STATE DEPARTMENT— CONSULAR SERVIOE. 337 and settled at less than $20,000,000, for which interest and sink- ing- fund payments are completely assured by the revenues result- ing from the new prosperity. The republic's credit has been established on a higher plane, works of internal improvement undertaken, and civil quiet and adequate revenues for the main- tenance of the government assured and danger of foreign in- tervention removed. In the summer of 1906, an impending civil war in Cuba led to the intervention of the United States under the wisely de- vised terms of the Cuban Constitution and American statutes which regulated the relations between the two countries. The opposing forces were induced to lay down their arms and re- turn to their homes, all differences having been adjusted, a new census of the island has been taken and on the basis of that census new and fair elections are being held for the recon- stitution of a Cuban Government; and the control of the islaud is to be restored by the United States to the real choice of the Cuban people during the coming winter. Tlie Consular Service. Among the many notable achievements of the administration of President Roosevelt few have been of more importance to the individual American than the reorganization of the consular service and placing it upon an efficient basis. The consular officers of no other government have such varied and important duties to perform as have the consular officers of the United States. Of these duties perhaps none are so important as those relating to the protection of American citi- zens and their interests abroad. Our consuls have displayed un- usual ability in discharging these duties. American citizens arrested or subjected to annoyance in foreign countries have, with rare exceptions, found the American consuls energetic aucl successful in their behalf. In China, Central and South America the consular officers have been called upon to perform delicate and trying duties of a diplomatic character and have discharged those duties with rare tact and ability. They have cared for and sent home the bodies of Americans who have died abroad and have collected and forwarded to legal representatives in this country the property of deceased American citizens in foreign countries. But perhaps the most significant and valuable work, in a money sense, that has been achieved by the consuls has been in the way of detecting and preventing attempts to defraud the customs. In their investigations of values of merchandise ex ported to the United States our consuls have shown wonderful skill and industry, and their work in the direction of prevent- ing exporters to the United States from undervaluing their merchandise has resulted in vast increases in the customs dues collected. An approximate idea of the value of this work of our consuls may be formed when it is recalled that the work of one consular officer alone has increased receipts from customs about one million dollars a year since 1898, a total of six million dollars in six years. There are 330 consular officers who are carr3dng on the same kind of work. They are for the most part equally energetic and efficient, and it is estimated that fully ten million dollars have been saved to the revenues of the United States by the active, intelligent and persistent efforts of our consuls abroad. It is safe to say that this branch of our service alone has saved about ten times its total cost to the Government. By means of a series of carefully planned instructions the department has secured a degree of cooperation on the part of consuls with Treasury officials that has hitherto been un- attained. The consuls have rendered a great deal of varied and im- portant service to other departments of the Government than the Treasury. Acting under recent instructions our consular officers have been of great assistance to the Navy Department - in the apprehension of deserters and stragglers from war ves- sels and colliers and are in constant communication with men- of-war in local waters, supplying them with much valuable information. 388 STATE DEPARTMENT— CONSULAR SERVICE. During the war with Spain they rendered invuiuuble serv- ice to the Government of the United States. They foruKMl a series of intellig-cnt observers throufrliout tlie world and the information and rei)orts g-athered by them were often of the highest vahie and importance to, those directing- oar military and naval operations. At the instance of the Secretary of Af^ricidtare airl in pur- suance of the pure food law of March 3, 1903, the Depai-tment of State issued instructions to consuls reqnirino- pron)pt re- ports of the shipment of food products ti) this country. The character of these reports and the promptness of their trans- mission to the Bureau of Chemistry of the Dejjartmeni, ot Agri- culture have been most gratifying- and have to a great degree made possible an intelligent and successfid enforcement of the law. In their work in behalf of onr export trade consuhir officers have shown themselves very efficient. In the introduction to the review of the world's commerce for 1902j it was stated by the chief of the Bureau of Foreign Commerce of the Depart- ment of State, that : "whatever may be the defects of our consular service it is at least show- ing itself to be generally alert and responsive to the new conditions. * • * The consuls, have also been most active in sending reports at frequent intervals on a great variety of subjects of interest to the indus- trial and commercial world, * * ♦ A most gratifying evidence of the increasing value of the Consular Reports * ♦ * is found in the widespread demand for them on the part of colleges and schools as ref- erence books in special courses of commercial instruction. * * ♦ In addition to the published reports, the consuls of late, by means of cor- respondence conducted under the supervision of the Department of State, have supplied a great mass of information to trade bodies and business firms, and in many cases have voluntarily exerted themselves in other ways to promote commercial expansion. Their efforts frequently elicit warm commendation in letters to the Department from the trade interests thus benefited, and even when a consular officer lacks other qualifications, it seldom happens that he fails to exhibit the characteristic American spirit in 'hustling' for business, not for himself, but for his country." The activity of the consuls has been greatly stimulated by the prompter publication and wider distribution of their re- ports. In December, 1897, the department, discarding traditions, began the daily publication of such reports as were of current interest. The result has far exceeded all expectations and has marked a new era in the practical utilization of consular in- formation. Our business men have been warm in their praises for it. One firm wrote the department, "attribute our having nearly doubled our foreign trade during .the last three years in great degree to the light we obtained from careful perusal of these reports." A manufacturing firm said respecting the assistance derived from the reports, "the result is to-day from 30 per cent to 35 per cent of otir entire product in certain lines of hardware we export." That this method of distributing commercial information is of great practical value is also shown by the fact that it was promptly imitated in part by both Great Britain and Germany. Undoubtedly a large part of our commercial progres.s in re- cent years is due to the keen business instinct and activity of o\ir consular officers in pointing the way to new markets, and to a great degree is due to them the credit for the enormous in- crease of our exports from .$886,606,938 in 1896 to $1,880,851,078 in 1907 — over $994,000,000 in eleven years. The consular fees collected have increased steadily, amount- ing for the fiscal year ended June 30, 1906, to $1,672,802.15. The expenditures for the consular service for the year amounted to $1,177,635.72, making the net cost of the service only $104,833.57. With a view to the improvement of the consular service a law was passed by Congress and approved by the President on April 5, 1906, abolishing unofficial fees, providing all consuls with fixed salary, requiring the appointment of Americans to the more important subordinate positions, and creating -a corps of inspectors to inspect each consulate every two years. On June 27, 1906. President Roosevelt issued regulations, in ac- ( ordance with the laws enacted by Congress, by which the prin- ciples of civil service reform have been extended to the con- sular service by limiting original appointments to the two STATIS DEPARTMENT— CONSULAR SERVICE. 339 lowest grades of the service after examination by a board of which the Chief Examiner of the Civil Service Commission is a member; requiring- all the hig-her posts to be filled by promotion of men from the lower grades on the basis of efficiency alone ; and requiring" appointments to be made so as to secure pro- portional i-epresentation of all the States and Terdntories in the service. Yonng men of high attainments and excellent char- acter are being appointed to the lower ranks of the service, offices are being maintained on a better scale, and in evei\y way the organization has been vastly improved. Our consulates are on the whole in excellent conditon, both as regards the general character of the consuls and their work and their manner of performing it, and it may justly be said that we have reason to congratulate ourselves upon the per- sonnel and efficiency of the consular service. The consular corps, which suffered great demoralization during the period from 1893 to 1897, owing to the violent, ill-judged, and wholesale removals, has been brought to its present state of manifold usefulness, cleanness, and high etKiciency during the last ten years. Taken as a whole, it is composed of a higher and better type of men than it has ever before been able to enlist, and it is doing much better and more intelligent work. A few years ago our consular service would hardly have challenged t" e emu- lation of other countries. To-day it is regarded by the best authorities abroad as the most efficient organization of i s kind in the world for increasing the sale of goods, for stimulating home industry and enterprise, and for informing exporters as to trade conditions in every important market of the globe. Throughout the recent consular reform move.uent in England the American consular service was constantly held up as a model of what the British service should be. An English trade journal said : "The United States is ahead of the world in regard to quick consular reports." An eminent Ger- man authority on consular matters recently referred to United States consular officers as "inspectors of our exports, and vigilant sentinels who spy out every trade opening or advantage and promptly report on it." They "d\ve into the economic con- dition of their districts and obtain information the result of which is discernible in the steadily incfeasing exportations of their home country. * * * The United States consular officers give their Government better service aid better in- formation than any on earth." Improvements have also been made in the selection of young men for the diplomatic service by requiring them to demon- strate their fitness before a board of exapiiners. The princi- ple of promotion for efficiency and merit has been consistently ajjplied in the diplomatic service. Tlie American system of locatins manufactories next to tlie ploTV and tlie pasture lias producert a result noticeable by tbe intellij^ent portion of all commercial nations. — Grant. If -tve have grood ^vayes? tliey ai'c better by being- paid in good dollars, and if we liave i>oor ivases tliey are made poorer by being: paid in poor dollars.— Maj. McKinley to dele- gation of -^vorlcing-men, at Canton, 1896. We bave established in the islands a soAcrnment by Americans assisted by Filipinos. We are steadiSy strivjLnft- to transform this into self-s'overnment by the Filipinos as- sisted by Americans. — President Roosevelt's speech accept- ing- 1904 nomination. W^e are the trustees and guardians of the ivhole Filipino people, and peculiarly of the ignortint masses, and onr trust In not discharged until those masses are given education sufficient to know their civil rights and maintain them agatT^st a more po-tverful class and safely to everi'isc the political franchise.— Hon. Wm. H. Taft, in special report to the President. No sophistries or subtleties can make money or create a currency ^vhich is good for one and ^vhich is not ea«ally good for the other. The interests of laboi* and capital are always identical.— Hon. C. W. Fairbanks, in U. S. Senate, March 5, 1900. DEPARTMENT OF JUSTICE. The Work of tlie Department of Justice. The effort of that portion of the administration of President Roosevelt which is under the jurisdiction of the Department of Justice has been to determine by careful and painstaking investigation whetner the many complaints which have been made of the violations of Federal law were well foimded, and to i)resent such violations as were found to actually exist to the Federal courts so that exact justice might be done ; that no violator of the Federal statutes might escape due punishment ; but at the same time that frivolous and unfounded prosecutions might be avoided and that the machinery of the Federal power might not be used to further the end of private litigants. The success of certain proceedings against persons and corporations for acts in restraint of trade forbidden by the Sherman Act, so-called, naturally led to appeals to rhe Department of Justice for Federal procedure in a very large number of cases, and the work of the Department of Justice has been as largely in deter- mining which of such complaints indicated actual violations of the law as in prosecuting offenses found to have been com- mitted. There has been a uniform application of the rule that proceedings should only be brought when some public interest was involved or some piiblic benefit to be secured. The Depart- ment has been careful to see that no litigation has received its sanction, or been participated in by the Government, in which the foregoing was not the fact, and has. been interested only in an impartial and vigorous prosecution of this law and other Federal statutes. Proaecntiona Under Slierman Act and Interstate Commerce Iiavrs. It has been the duty of the Department of Justice to defend the soundness of the position taken by it in matters relating to prosecutions under the Sherman Anti-Trust Act, so-called, and also under the Interstate Commerce Act, by carrying pro- ceedings thus inaugurated through the various courts and to a final determination in the Supreme Court of the United States. It has been the constant endeavor of the Department to have the material questions involved settled as soon as practicable, and to this end it has moved to advance cases, and has been insist- ent upon the prosecution of the various appeals and interme- diate steps involved. The result has been a definition by the Supreme Court of many aspects of the Sherman Law, and a series of decisions under which further proceedings in enforce- ment of this law can be taken with rea-sonable hope of success ; the facts in each case being determined by a thorough, and fre- quently expensive, examination by the Department of Justice. The Details of the Work of the Department of Justice in the Enforcement of Law with Reference to Corporations will be Found Under the Chapter Entitled ''Regulation of Corpor- ations. ^ Enforcement of the Naturalization Act. Among the several recent salutary Federal enactments stand- ing to the credit of the Republican administration of national affairs is the Naturalization Act, which went into effect June 29, 1906. The terms of this Act proviile for representation of the Tnited States at hearings held for the purpose of determining the suitability of aliens for admission to American citizenship. The duty of representing the United States in this important function devolves upon the Department of Justice, and, as a mere 840 DEPARTMENT OF JVSTICB. 341 pro forma a^jpearaiice without knowledge of the facts in each case, except as they appeared in court, would be of little value, a system of examination has been developed under the Depart- ment of Justice by which every application for naturalization Is effectively scrutinized. The great boon of American citizenship should not, it is agreed, be conferred except upon those who are worthy of the privileges it bestows and who can make an ade- quate return in the character and quality of their acts as citi- zens, for the confidence which they have enjoyed. It is recog- nized that the best cure for undesirable citizens is to apply such tests as will develop the fact of their undesirability before they have been added -to the voting strength of the country. In their examination of the claims of aliens for citizenship, the officials of the Department of Justice have not only been able to 'secure the rejection of the applications of undesirable persons, but thej' have been able to assist in the naturalization of aliens whose addition to the body politic is desirable, and they have also been able to secure the cancellation of certificates of nat- uralization formerly obtained by aliens before the present law went into effect. Too high an estimate cannot be put upon the value of a careful scrutiny and examination of applications for 7iatnralization. Many of the ills which threaten the political, sooial and economic affairs of the United States at the present time may, in all probability, be checked by the denial of citizen- ship to those who, from ignorance, imperfect training or per- verted views, are likely to become additions to ignorant, venal, or vicious classes of voters constituting a constant temptation to undesirable political methods from the fact that they cannot be swayed by those considerations and arguments which are suc- cessfuly addressed to the reason of the thousands of naturalized citizens now fully in accord and sympathy with the aims and objects of the Government of the United States. To these the new naturalization law and the work of the Department of Justice as a means of assistance in securing American citizen- ship are guaranties that such citizenship, once attained, will not be cheapened and depreciated by a too easy access under unfair, unequal, and inequitable conditions. Elnded tlie Lottery STeindles. The Administration of President Roosevelt has seen the final destruction of the lotteries which had for years been, in the opinion of the large majority of the people of the United States, a great national evil. Althoug-h legislation was passed in 1895 intended to eradicate this immorality, by reason of delays in- cident to litigation and to various evasions, on the part of those interested in the lottery business, the Government was not able until 1903 to put effective measures into operation for the ter- mination of the illegal transactions involved. In 1903 a fav- orable decision was secured from the Supreme Court and until 1907, one device after another was disclosed by the active in- vestigations of the Secret Service, and terminated by, prompt and vigorous prosecutions by the Department of Justice, until, in May of the year last mentioned, complete cases were made against the officers' of the Honduras National Lottery Company, the successor of the Louisiana State Lottery Company. The interests involved, for the first time, acknowledged their defeat, and without contesting the cases, pleaded guilty, paid fines ag- gregating $264,700, and agreed to go out of business and sur- render all of the paraphernalia of the Company to the Govern- ment for destruction. This was the company which had been doing the very large ])roportion of the lottery business in the country, and which had been able, by various secret devices, to continue in bvisiness, although at a constantly increasing expense and risk. The result of this successful prosecution terminated the last of the lottery operations, which had a widespread field, and the warfare of the administration has ended in a complete victory over the chief organization conducting such a business, an organization which at one time deemed itself almost im- pregnable on account of the resources and influence of the per- sons interested. 342 DEPARTMENT OF JUSTICE. - Knforoenieiit of the Luiitl Lavi's. The vig-orous and impartial ciiforccnient of the land laws of the United States which has marked the pi*esent Administration has been, and is being, carried on without cessation, and every means at the disposition of the Govermnent is being- utilized to recover lands fraudulently obtained from the United States. As a result of the proceedings so far completed, $502,736.92 has been recovered in judgments, $57,587.37 in fines, and 1,177,836 acres of land have been i^eturned to the public domain, while the amounts in lands and money involved in proceedings now pend- ing- will far exceed the figures abov'e given. Jn four cases in Colorado demurrers as to indictments were sustained by the lower court and apj^eals from this decision will be taken to the Supreme Court under a law passed by a Eepublican Congress giving the United States a privilege not previously possessed by it of taking appeals in criminal cases on points of law. While the tendency of these appeals has the result of temporarily post- poning the trial of criminal proceedings in some cases, active litigation iS being carried on wherever civil suits are deemed to be desirable to recover lands alleged to have been fraudulently secured from the United States. Safeguards to the acquirement of the public lands have been increased, so that adequate returns are being secured and will be secured hereafter from all those who acquire public lands from the United States. During the past two years, the Department of Justice has been engaged in the active investigation of the rights and re- sponsibilities of the holders of the titles of lands involved in certain railroad land grants in the ^Northwestern States. The Oregon and California Railroad Company, among others, was granted certain tracts of land in aid of its railroad under con- ditions that it .should sell the land thiis granted to bona fide settlers in tracts of not more than 160 acres at a price not to exceed $2.50 an acre. Complaints were made to the Department that the Company had refused to sell a certain portion of this land according to the terms of the grant, and that it had sold other portions in larger tracts and for greater sums than above named. In order to properly test the rights of the Government and the duties of the holders of the lands it became necessary to secure from the Congress certain additional legislation which was promptly passed by virtue of the Republican majority in both Houses and ample authority given the Attorney General for a thorough test of the many difficult cjuestions involved. At the same time, it is proposed that these proceedings shall be con- ducted so that there shall be no serious disturbance of commer- cial and industrial conditions within the States in which these lands lie. Proceedings Against Peonage. Commercial g-reed is not localized, but it may be noted that in certain States which have been dominated by political tenets opposed to the doctrines of the Republican party, a peculiarly obnoxious form of this vice has been stimulated by legislation. In the solid South, so-called, it has been x^ossible, by reason of State statutes on the subject of personal debts, to hold large numbers of people to enforced labor with the result, as shown by developments in courts of justice, that men, women, and chil- dren have been reduced to and kept in that condition of slavery known as peonage, a condition involving evils as great as those involved in chattel slavery, even though the characteristics of the two forms of bondage are not identical. The slavery which has been found to exist is not confined to persons of the negro race, but has included a large number of white persons, many of whom are alleged to ]iave been decoyed into the localities where peonage was practiced by false ]n-omises and representations. Under sections 5525 anji 5526 of the Revised Statiites. constitut- ing holding in slavery or peonage an offense against the laws of the United States, and in consequence of the numerous com- plaints received, the Department of .Justice has. during the pre- sent administration, undertaken a thorough investigation of the conditions obtaining in various forms of labor and industry in remote portions of certain Southern States, with the result that, DEPARTMENT OF JUSTICE. 343 as a consequence of the agitation produced, and the prosecutions sustained in the Federal courts, this evil has been substantuilly checked and a healthful public opinion created in the direction of the repeal of the laws under which peonage became possible. In connection with the investig-ations into the facts surround- ing conditions of peonage, it has been developed that this offense against the Federal laws has gone hand in hand with violations of the contract labor laws, and that a systematic importation of aliens had found its outlet in the utilization of labor thus im- ported under conditions which resulted in the forcible restric- tion of aliens within labor camps and charges against them of indebtedness for current support which, added to the cost of their passage to this country, made a sum total which it was almost hopeless that they should discharge. While it is true th«,t it has not been possible to obtain convictions on some of the in- dictments which have been secured, this failure has been, in large part, due to local influences and circumstances and the result of the convictions which have been obtained was a whole- sale release of persons who had been held to involuntary servi- tude under the plea of requiring them to pay their debts, such debts, it must be remembered, being frequently made up of exorbitant and unjust charges. This method of seciiring labor has been effectively restricted, if not wholly suppressed, by the activity of the Administration, and the investigations and efforts to punish those involved in these infractions of the Federal laws are being continued and will be continued by the present Ad- ministration. Tlie national credit is of too paramount importance and nothing: shonld be done to tarnish or impair it. — Hon W. Mc- Kinley, in House of Representatives, April 15, 1878. I am President of all the people of the United States, ■tT'ithont resnrd to creed, color, birthplace, occupation, or social condition. My aim is to do equal and exact justice as among them all.— President Roosevelt, in a statement to executive council American Federation of Labor, Sept. 25), 1903. A railroad company ensaffed in Interstate commerce should not be permitted, therefore, to issue stoclc or bonds and put them on sale In the market except after a certtflcate by the interstate commerce commission that the securities are issued vrith the approval of the commission for a lepriti- mate railroad purpose.— Hon. Wm. H. Taft, at Columbus, Ohio. Passed at the instance of Mr. Roosevelt, it (the Rate law) stands as a monument to the principle which he has in- cessantly maintained in speech and action, that the laTvs must be so made that they can be enforced as well against the sins of the weafthy and the powerful as against those of the poor.— Hon. Wm. H. Taft, at Columbus, Ohio. Mr. Bryan aslcs me what I would «lo with the trusts. I answer that I would restrain unlaTvful trusts Tvitli all the etilciency of injunctive process and woulil punish w^ith all the severity of criminal prosecution every attempt on the part of aggregated capital through the illegal means I have described to suppress competition.— Hon. Wm. H. Taft, at Columbus, Ohio. You must face the fact that only harm -will come from a proposition to attack the so-called trusts in a vindictive spirit by measures conceived solely vrith a desire of hurting them, without regard as to whether or not discrimination should be made between the good and evil in them, and without even any regard as to ^vhether a necessary seauence of the action would be the hurting of other interests.— Presi- dent Roosevelt at Cincinnati, Sept. 20, 1902. Every one -who knoAvs anything about the management of railroads knoT\-s that there has been a revolution in respect to their obedience to the law. IVo longer are special privileges granted to the fevr — no longer are secret rebates extended to build up the monopoly of the trusts. The railroads are oper- ating within the la-\v, and the railroad directors and otfleers and stockholders ought to rise up and call blessed the men ■»vho are responsible for the passage of the Rate bill. — Hon. Wm. H. Taft, at Kansas City, Mo. It would be hard to find in modern times a better example of successful constructive stutt^smanship than the American representatives have given to the Philippine Islands. — Presi- dent Roosevelt at Providence, R. I., August 23, 1902. THE WAR DEPARTMENT. ITS EFFICIENT AND ECONOMICAL. ADMINISTRATION. Splendid Record of the Army an Mllitiiry antl Civil Pnl>Iic Servants, Pioneers, uud HuniunitarianN. The events of the past decade have brought the War De- partment into great prominence. The war with Spain and conditions growing out of it enormously enlarged the duties of this Department, thrusting new and unusual responsibilities upon it and widening the field of its operation until it now extends more than half-way around the world — from Cuba and Porto Rico off our Atlantic seaboard to the Philippine Islands on the other side of the globe, 8,000 miles from our Pacific coast. The work of the War Department throughout all this history- making period has been tremendous in mass, varied and excep- tional in character. The armies of the United States from Valley Forge to Santiago have been the bulwark of the nation, and their historic deeds are cherished with pride by every Ameri- can heart. In the winning of the great West the army bore a memorable and indispensable part. By its achievements in the Philippines, in Cuba and in Porto Rico, where it served first as soldiers and afterwards as civil administrators, it has added a brilliant and unique chapter to our annals. How the duties and responsibilities of this trying epoch have been met and discharged by the War Department and the Army, what splendid work our soldiers have done for humanity and the flag, and what im- provements have been made in the military service to strengthen the coimtry's defenses and its preparedness for war, it is the purpose of this chapter briefly to describe. Tlie War witli Spain. Just prior to the outbreak of the Spanish War the strength ot the regular army was about 26,040 enlisted men and 2,143 officers. Under the President's first and second calls for troops in April and May, 1898, the strength of the army, including regulars and volunteers, was quickly increased to 11,108 officers and 263,609 enlisted men. Meanwhile, before it moved as an army, the war with Spain had practically been ended with an in- vading army or expeditionary force of less, than seventeen thou- sand officers and men, who had become master of the Island of Cuba, though there were stationed on the island at that time 80,000 veteran Spanish soldiers, who, according to the prin- ciple of the survival of the fittest, were regarded as the hard- ened remnants of the army of 210,000 men which Spain had sent in the attempt to dominate Cuba. Difficult Tasks FolIovFlng: tlie liVar VFlth Spain. The war with Spain ended, the next three years under President McKinley were marked by the most extraordinary conditions involving careful and arduous administration of the War Department. Instantly, without preparation, design, or desire the United States as a conquering nation had become suddenly saddled with the duty of governing three different sections of foreign countries, disconnectedly situated in two hemispheres, and which, by reason of their different peoples and varying traditions and customs, presented political prob- lems and complications \inparalleled in the history of the world. In meeting this emergency the President found himself charged not only with the constitutional powers of the execu- tive, but charged also by the peculiar nature of the newly de- veloped conditions with the obligations of all three of the usually divided duties of state — the legislative and judicial in addition to the executive. His Secretary of War had then 344 WAR DEPARTMENT. 345 necessarily to be a man capable of acting- for him in the im- mediate siii)ervision of all military affairs, for in the begin- ning- of the g-overnment of the newly acquired territory the War Secretary was not only required to frame and prescribe the laws, but was called upon likewise to interpret and enforce them. In the beg-inning- of the new and anomalous conditions that prevailed, the Secretary of War was virtually the framer of three separate governments for three different alien people, a task so well accomplished that in a little more than three years the Cubans were enabled to hoist their own flag- as a se})arate and independent nation, while the Porto Ricans and the Filipinos were quickly permitted to enjoy civil forms of g-overnment with only a mere fractional element of military control, without the cost of a dollar to the United States Treasury except for the money paid in salaries to Federal officers. Tlie IVork in tlie Pliilippines. After the close of hostilities with Spain it became neces- sary to deal with the insy April 1, 1899, there was completed a system of 3,500 miles, equipped with modern appliances and latest methods and consisting of nine lines which crossed the island from north to south, and one trunk line running through the center of the island from Pinar del Rio, in the west, via Habana and Santiago, to Baracoa, in the east. The central line from Habana to San- tiago, completed in about three months, was a work of the greatest importance to Cuba, Avhich the Spaniards had appar- ently never even ventured to undertake. The Commanding General in Habana had communication with every point of im- portance in Cuba, and the variovis camps and garrisons had been provided with their local systems of communications. At the time of the transfer of affairs to the Cuban Government, May 20, 1902, this stable and permjinent system had been ex- tended from San Juan y Martinez, at the western end of the island, to Cape Maysi, on the extreme eastern end, embracing 3,500 miles of wires and giving communication to every town, city, or seaport of importance in Cuba. Reduction of the Army. Active military operations on the part of the United States having been completed, the War Department proceeded imme- diately to the reduction of the military 'establishment. The provisions of the Acts of Congress of April 22nd and 26tli, 1898, providing for the increase of the army in the beginning of the war with Spain, required that at the end of the war tlie entire volunteer force should be discharged from further mili- tary service and the ar'my reduced to a peace basis. Thus it became necessary four months after its mobilization to dis- charge the entire volunteer force, which in August, 1898, con- sisted of 5,216 oflRcers and 110.202 men, leaving for all the duty which the army had then to perform in the United States, Cuba, Porto Rico, and the Philippine Islands, only 2.324 officers and 61,444 enlisted men of the then authorized regular army, but this number was by Act?^ of Congress subsequently increased to 65,000 regulars and 35,000 volunteers. On February 2, 1901, an act was passed to increase the effi- ciency of the permanent military establishment, authorizing the President to maintain a regular army according to the exigency of the time, from a minimum of 59,131 to a maximum of 100,000. The improvement of conditions in the Philippine Islands in the spring and summer of 1901 made it unnecessary to main- tain the maximum strength of the army authorized by law, and on May 8th of tha.t year an order was made fixing the reduced strength of the several organizations in a manner to place the aggregate enlisted strength of the army, includ- ing all staff departments, at 77,287. In 1903 the army was reduced to the minimum allowed by law, and even that minimum number was further reduced on account of discharges for various reasons, which left the army at 55,500 enlisted men, of which number only 15,510 remained. in the Philippine Islands, whereas now according to latest offi- cial reports the total garrison strength in the Philippine Is- lands numbers 13,584 officers and men, A cursory statement of this kind cannot give any intelligent idea of the a.mount of work that devolved upon the War De- partment throughout this period. The United States was re- quired practically to raise and disband two distinct armies be- tween April, 1898, and July 1, 1901, — one army for the Span- ish-American War, "which was required to be disbanded immedi- ately after the signing of the treaty of peace with Spain, and the other army to put down the insurrection in the Philippine Islands, which under the law was disbanded between January 1, and June 30, 1901. Control of Tropical Diseases. In June, 1900, the campaign against yellow fever on the Is- land of Cuba was begun by the medical officers of the army. The disease, which was known by authentic records to have 348 WAR DEPARTMENT. t'xisted without a year's intermission for a period of one hundred and fifty years, appeared for the hist time in IWOl, after whieh time the city of Habana enjoyed complete immun- ity as long- as the precautions begun by the American othcers were eontinued. When the army reoccupied Cuba, however, in tlie fall of 1901), sanitary conditions, which had been in excel- lent shape under the former American control, were found to have been allowed by the Cubans to lapse into a state ai)pi-oach- ingf the old Spanish regime. But again the Medical Department went vigorously to work and sanitation has been again organ- ized and re-established on a sound basis which warrants the conclusion that yellow fever, if not entirely wiped out of exist- ence there, will always be under control beyond the danger ol epidemic. In June, 1900, a commission of army medical officers met at Uabana for the purpose of studying the causes of yellow fever. Major Reed, the master mind of the commission, in his series of most perfectly planned experiments, proved beyond doubt that yellow fever is transmitted only by the bite of a particu- lar species of mosquito, and that the old theory that filth, articles of clothing, etc., could carry the disease, is absolutely untenable. The Commissioners exercised great scientific abil- ity and energy in their investigations, and much individual heroism was required amongst them as well as on the part of the enlisted strength of the army, who voluntarily offered themselves as subjects for the new experiments for the deter- mination of the exact nature of the disease. It was at that time that the lamented Dr. Jesse W. Lazear, contract surgeon of the United States Army, won immortal glory and distinc- tion by voluntarily permitting himself to be inoculated with the yellow fever germ, in order to furnish a necessary addi- tional experimental test in the course of investigation, and aiS the result of that act of heroism and superb devotion, to professional duty, soon afterwards died of the disease. In the Philippine Islands, it became the duty of the Army Medical Department to protect the army from cholera and plague. The United States troops 'stationed at Manila and some of the larger seaport towns had every reason to expect the worst; but the troops were carried successfully through an epidemic of bubonic plague with only one or two cases affecting our soldiers, while smallpox was almost completely eradicated from Manila and the larger towns. During the year 1902 nearly half of the mean strength of the United States army was serv- ing in the Philippine Islands, and was everywhere exposed to a malignant epidemic of cholera, from which probably 150,000 natives had suffered with a death rate of over fifty per cent. Notwithstanding this, owing to the strict preventive measures inaugurated by the Medical Department of the army and faithfully carried out by all officers, only thirteen cases of cholera per one thousand of strength occurred among the troops, with a death rate of 7.5 per thousand. When these records are compared with the cholera statistics of the United States army in the year 1866, when among the troops exposed there were over two himdred admissions per thousand with ninety-four deaths resulting, the enormous gain in sanitary knowledge and efficiency may be easily seen. In fact, the control and final extinction of the Asiatic cholera in the Philip- pine Islands seems now to have been accomplished. The severe epidemic, which began in 1902, was brought to a close in February, 1904, through the skillful and determined efforts of the medical officers of the army. In the Chinese relief expedition of 1900-01 the United States army came into comparison with the forces of most of the great nations of the world, and as the result of that comparison won for itself highest standing. The Medical Department established in a very short time at Tientsin what was regarded by far as the best military hospital; and later on at Pekin many observers declared that the Medical Department of the United States army on duty there was by far the best and most intelligently equipped of any medical service there represented. One of the most important duties assigned to the Medi- WAR DEPARTMENT. 349 cal Department was that of establishing sanitary precautions at Panama, Hecognizing- that the sanitary problem is one of the most important in connection with the construction of the canal, the Panama Canal Commission very wisely applied for Col. W. C. Gorgas, a notable sanitary expert of the Medical Corps of the army, to take charge of the sanitary and medical department of this g-reat work. Col, Gorg-as inaugiirated a sys- tem of sanitation in 1901, and has attained results that have excited the adniii-ation of the world. Yellow fever, the bane of the French canal commission, that lost so many lives, has disappeared, and malaria, the greatest factor in the sick rates in the vicinity of the canal, is being rapidly brought under control. Another very interesting point in favor of the zealous devotion to duty of numbers of the Medical Department might be mentioned. Captain Ashford, of the Medical Departmeni?, having proved that anaemia, which af¥ects about eighty per cent of the native population of Porto Eico, was due to infec- tion with a small intestinal worm and that the disease is both preventable and curable, was at the request of the Governor of Porto Kico detailed as the senior member of a board to study that disease. Under his able direction thousands of cases have been cured, and the proper steps taken to stamp out this disease. The Bureau of Insular Affairs. As the result of the war with Spain, the United States in 1898 became suddenly charged with the affairs of Cuba, Porto Ilico, and the Philippines, which in consequence of that war passed from the jurisdiction of Spain to that of the United States, It was a bewilderingly new and vitally important duty, demanding careful consideration and quick attention. Natu- rally, however, all of those islands being still in the hands of our military, and all more or less unsettled and in need of a strong, competent hand to control and tranquillize them, the Secretary of War, under the immediate direction of the Presi- dent, was regarded as the logical head of their governments. There was at that time, however, no organized bureau or office in the War Department which could well take hold of and, manage the affairs of those three separate and distinct insular people, and therefore, as no time was allowed for delay, it be- came necessary for the Secretary of War to establish within his own office a small division of insular affairs which has since been enlarged by Congress into a Bureau, To describe in detail the multifarious duties that devolved upon this section of the War Department would be to review over again the accounts of all insular affairs which have been set forth fully in the chapters devoted respectively to the Philip- pines, Cuba, and Porto Rico. Indeed, all of the achievements in the Philippine Islands owe much to this Bureau, which, acting as the American agency in all matters between the Philip- pine Islands and the United States, has played an imjjortant part and exercised inestimably valuable influence for the bene- fit of the insidar government. In the matter of education alone it has in a practical way done much in the great scheme of help to the Filipinos, and the manner in which it has supervised the education of Filipino yoiiths brought to this country and placed in vari- ous schools and colleges has merited unmeasured approval. From the very hour that these young men arrived in the United States from the Philippines they were taken in charge by agents of this Bureau, and their affairs were con- stantly and most carefully looked after. There are now nearly two hundred -of these selected bright and intelligent young Filipinos undergoing instruction in carefully chosen educational institutions in the United States, This Bureau has also rendered conspicuous service in devis- ing a new monetary system, banking- system, and various other innovations calculated to benefit the people and increase the material prosperity of the Philippine Archipelago. Its first important duty was with respect to Cuba, super- 360 WAR DEPARTMENT. vising- and controlling- the management of the customs and every other department of the military and the subsequent tentative civil g-i>vernment conducted by the United States. One of its first most successful achievements was the prep- aration and supervision of the insular tariff system, and it has been an indispensable auxiliary in the furtherance of all of the schemes for the improvement of conditions in all the islands, but more especially in the Philippines, where its chief efforts seem to have been centered. To the Bureau of Insular Affairs are assigned all matters pertaining to civil government in the island possessions of the United States subject to the jurisdiction of the War Depart- ment ; also the transaction of all business in this country in relation to the temporary administration of the government of the Republic of Cuba, established imder the provisions of the Piatt _ Amendment on September 29, 1906, which is subject to the supervision of the Secretary of War, as well as making it a matter of official record. The Bureau of lns\ilar Affairs is the repository of all the civil rec- ords of the Philippines and of the former government or occupation of Cuba (which terminated May 20, 1902), as well as the records of Porto Rico during the period (ending April 30, 1900) in which the War Department exer- cised jurisdiction over that island. It is required to furnish information relative to these subjects. It prepares, compiles, and arranges for publication executive documents relating to the affairs of the islands under it. It makes a comptroller's review of the receipts and expenditures of tne Philippine gov- ernment, and prepares final statements for presentation to Congress of all such accounts. It makes the purchases of sup- plies in the United States for the Philippine government, makes paj^ment therefor, and arranges for their shipment to Manila. It has charge of appointments in the United States to the Philippine civil service, including arrangements for transporta- tion. It gathers statistics of insular imports and exports, shipping and immigration, and quarterly summaries of the same are issu<»,d so far as the Philippines are concerned. WORK OP THE ARMY IN ALASKA. Military Telegpapli System. An extensive system of military telegraph lines in Alaska, provided for in Act of Congress approved May 26, 1900, was the first step toward secAiring for the enormous territory of the north the means of commimicating by electricity from the isolated camps and settlements of the territory to the outer world. When without the telegraph for many months of the year nearly all communication would cease in Alaska and the region would become a closed world to the rest of mankind. The plan to wire Alaska was stupendous in conception, and has been broug-ht to its present state of completeness through the energetic work of the Signal Corps, assisted by the line of the army. The construction began in the late summer of 1900 at Val- dez and Fort Liscum, and the system proper, land lines, cables and wireless, was completed October, 1904. Including extensions and changes made in the route since then, the system is now composed of 1,403 miles of land lines, 107 miles of wireless, and 2,524 miles of submarine cable. The land lines connect with the cable system at Valdez and extend from that point to Saint Michael and Eagle City. This great system now affords an ail-American line of telegraphic communication between the United States and the important military ^nd commercial points in Alaska, and was accomplished by the officers and men of our army notwithstanding the almost impossible diffi culties in the way of absolutely unknown country, laborious means of inland trans])ortation, lim'ted working season, in- tense cold in Avinter and flood in sn-u-ner. As a piece of pioneering, the openir.g of the trails, which was an incident of the construction of the telegraph system through Alaska, has added another chapter to the excellent WAR DEPARTMENT. 361 record of the American army in this regard. The establish- ment of a chain of teleg-raph offices and repair stations has made possible comparatiAely easy and safe travel along- these Arctic trails, npon which many a prospector would probably have lost his life had it not been for the refuge houses thus established. Road Work. Since the spring of 1905 a board of army officers appointed by the Secretary of War have been rendering most effective ser- vice in opening up and developing the great natural resources of Alaska by constructing and maintaining wagon roads, bridges and trails. Lp to date they have completed about 200 miles of wagon road, 400 miles o,f winter sled road, 300 miles of dog-team and pack trail, completed three river bridges and in- stalled three ferries. The beneficial effects of this road and bridge work were ap- parent at once, and have -been speedily followed by an appreci- able i-eduction in freight rates and a saving of time in trans- portation. PROFITING BY LESSOIVS OF THE WAR WITH SPAIN. The unprepared condition of the country and the Govern- ment for war, disclosed at the beginning of the war with Spain and painfully apparent as the weeks and months of j^reparation and of the war itself passed, led the administrations of Presi- dents McKinley and Koosevelt to enter upon and carry out a deliberate and well thought out plan of reorganizing and strengthening the military service for purposes of national defense and for increasing its usefulness to the country in times of peace. That these plans have resulted in great im- provements in all these lines can but be apparent from the facts here presented, and that the results fully justify the work undertaken and carried out is equally apparent. The war with Spain demonstrated: That the organization of the Army, inherited with few modifications from the fathers of the Kevolution, was inelastic, seriously defective in some details, obsolete in others. That the United States was absolutely without any effective coast defense system, especially so far as concerned the mining of harbors. That not only should the artillery corps be enlarged, but that it should be divided so as to make the mobile and immobile sections of it complete in organization unde,r separate and dis- tinct heads. Therefore the coast artillery proper was made to consist of the immobile part of the artillery, while the field ar- tillery, which is the mobile fighting element, was organized into regiments wholly separate and apart from the coast artillery. That better organization in the manufacturing and supply departments of the army w^as absolutely necessary. Tnere was lack of mimitions and other materials of war, as well as lack of arms, both small and large. That a genei-al staff system was imperatively needed in our arms to co-ordinate and supervise the military operations of the various branches with a view to promoting the general efficiency of the army and securing a condition of preparedness for any emergency it might be called upon to meet. That our regular army should be enlarged to a size more nearly corresponding to the magnitude of the country and its need for national defense. That our militia system should be improved, its organi- zation and discipline assimilated to that of the Regular Army, with which its members should be brought into more intimate contact and relationship. PRINCIPAL ACHIEVEMENTS IN THE WAR DEPARTMENT UNDER THE PRESENT NATIONAL, ADMINISTRATION. War Department Administration. The War Department has been entirely reorganized and today its administrative methods are better systematized and pro- duce quicker and more satisfactory results than ever before in the history of the War Department. :{52 iVAR DEPARTMENT. HeorKiMiixHtioii <»lf the Army. The Army has been eiihirjj^ed and reorganized, and many of its obsolete methods liave been discarded or replaced by new ones. New Military E^diientiun SyNteiii. Tl^e military educational system has been brought to a higher plane of eiliciency than ^ever before, and today is not surpassed by that of any other nation on earth. During the past seven years the subject of general military education has received more attention than ever before in the history of the American army. There lias been established a progressive educational system embracing army service schools at Fort Leavenworth, Kansas, which include the school of the line, the Staff college, and the Signal School; mounted service schools at Fort liiley, Kansas, including the training school for officers and non-conmiissioned officers ; the training school for farriers and horseshoers, and the training school for bakers and cooks ; the Coast Artillery School and the School of Sub- marine Defense at Fort Monroe, Virginia ; the Engineer School at Washington Barracks, D. C. ; the Army Medical School and the new Army War College at Washington, D. C. The- object of the War College is not to impart academic instruction, but to make practical application of military knowl- edge already acquired. Its work includes all that is involved in the preparation for war of the officers of the army in stra- tegical and tactical problems, and embraces all the general system of military instruction at all the posts, garrison and service schools, as well as at the Statf College; also to supervise and classify' the civic schools and colleges at which army officers are detailed as instructors, with a view to select- ing those schools from which graduates may be appointed as second lieutenants in the army. The students are selected by the Chief of Staff and detailed by orders from the War De- partment in such number as may be expedient for the course of instruction beginning November 1st and ending October 31st. The Army War College goes beyond any institution of the kind ever attempted before in this country. It opens and controls a field of military training extending beyond the army itself and even to the organized militia of the States, whose offi- cers are eligible for instruction at the service military schools ; it guarantees facilities and all possible encouragement and help for military educa'tion; and beyond this it goes further and extends a helping hand even to the young students of the various civic colleges in the country. All in all, it is an institution of military learning and for the general direction of military instruction unequaled in any other country. Iniproventeiit of Artillery Service. The artillery branch of the army has been enlarged and entirely reorganized — divided into two parts, the mobile or field artillery, and the immobile or coast artillery. The former has taken its place with the infantry and cavalry and other ele- ments of the moving army, whereas the latter, under the im- mediate direction and control of the Chief of Coast Artillery, is charged with all coast defensive duty. Seacoa»t Defenses. The Engineer and Ordnance Departments, which are charged with the construction and arming of seacoast fortifications, and the Quartermaster's Department, the Signal Corps and the Artillery Corps, which provide auxiliary defenses and accessories, are all working with more effective co-operation than ever before, and for the first time in the history of the United States the seacoast fortifications are now in position to defend the coast without reliance upon the navy. Thus the navy in the event of war would be set loose and free to exercise its legitimate function of seeking the enemy's fleet. The "Taft Board" has made many important Cnatii^R in the national system of coast defenses formulated bv the "Eudi- WAR DEPARTMENT. 363 cott Board," which not only result in much saving of money, but contemplate greater protection for the big harbors than ever before undertaken. Great reductions have been accom- plished in the cost of emplacements, while the efficiency of the guns has been at the same time enormously enhanced. Heavy seacoast guns that were formerly mounted on gun-lifts, whereby the gunners were protected from the enemy while loading and after firing, could only be fired once in eight minutes, and the cost of the gun-lift was $535,000. Similar guns are now mounted on disappearing carriages at a cost of $150,000, being a reduction of $375,000 in the cost of mounting, with equal or better pro- tection to guns and men, and the guns can be fired ten times in eight minutes, or ten times faster than a few years ago. This Board brought about a rearrangement of and additions to the lists of ports recommended by the Endicott Board for fortification. These rearrangements and additions embraced within the new scheme of the Taft Board were due to the growth of the country, the improvements in ordnance and the building of a navy, as well as to matters of naval policy de- veloped during the preceding twenty years, and to recent dis- coveries in the science of manufacture of ordnance and ma- terials of war which could not be evaded. The Endicott Board, while attaching importance to defenses at the entrance to Chesapeake Bay for the protection of Hamp- ton Roads, Norfolk, Newport News, Washington, and Baltimore, and at the eastern entrance to Long Island Sound for the pro- tection of New York, confined its recommendations respecting these localities to so-called floating defenses or floating bat- teries, as outer lines of defense. The Taft Board, however, regarded Chesapeake Bay as commercially and strategically of the very first importance, and regarded the completion of fortifications at the entrance to Long Island Sound as only second to the consideration due to Chesapeake Bay. It wiil thus be seen that by taking all necessary action looking to the complete defense of the entrances to Chesapeake Bay, which command the approaches to both Washington and Baltimore, and the entrance to LoYig Island Sound, which constitutes the first line of defense of New York City against naval attack from that direction, the Taft Board has taken the precaution to look well after the hitherto neglected national metropolis as well as the national Capital. The Taft Board also took up the demands of Puget Sound, which in recent years has become of the greatest strategic and commercial importance, due to the completion in the extreme northwest of great railway systems, the rapid development of commercial, agricultural and manufacturing interests, and the establishment of a navy yard containing the only dry dock on the Pacific coast with a capacity for a battleship. In addition to these important recom- mendations, the Taft Board likewise considered and devised a scheme for fortifying the insular possessions, including Manila, Honolulu, and San Juan, whose military importance as naval bases and coaling stations, aside from other consider- ations, demanded proper attention, and furthermore provided for fortifying the Isthmian Canal ports of Colon and Panama, two most important projects, to be paid for out of the Panama Canal fund. Notwithstanding all the important changes made in the sys- tem of national defenses, the plan of the Taft Board contem- plates that adequate defenses may be secured for both the Atlantic and Pacific coasts for $277,239 less than that esti- mated by the Endicott Board, and that the defense of the twenty-two ports common to both the former and the present systems can be completed for $22,890,606,00 less than the sum originally proposed by the Endicott Board, if omission be made from the comparison of estimates for ammunition and sites. Small Arms. New models of rifles, bayonets, and entrenching tools have been adopted, manufactured, and issued since 1906. not only to the regular army, but to the organized militia of the States a^ well. 354 "WAR DEPARTMENT. Priu WAR DEPARTMENT. Department to purchase and inspect supplies to be provided frro])erty — tlie Subsistence Department responded prom])tly and effectively to the call made upon it. 'W^urk of the Army of Paclflcutton in Cuba in 190, lOOO. The contention that we are not a nation with pow^er to govern a conquered or purchased territory robs us of a faculty most important for sood to every sovereignty.— Hon. Wm. H. Taft. at Cleveland, Ohio. i)ne vital, dominating fact confronts the Democratio party which i»o oratory, ^vhich no eloquence, -which no rhetoric eau obscure: BRYAN'S NOMINATION MEJANS TAPT'9 i:i.ECTION.--New York World. THE NAVY DEPARTMENT. As wars between nations come suddenly, just as do personal • )nfticts between men, our Navy must be maintained upon that basis of possible eonting-ency. Examination of our national his- tory shows that wars have sprung- suddenly into existence while wise men were proclaiming- that war could not occur, and that there are many instances where the most unexpected occurrences have brought us to the very verge of battle. This fact was clearly and imi3ressively, set forth by President Roosevelt in a special message to Congress in April last, when he said : Bxtract from Spc^clal Memuage of tlie President of tlie United States, April 14, 1908. To the Senate and House of Representatives: I advocate that the United States build a navy commensurate with its powers and its needs, because I feel that such a navy will be the surest guaranty and safeguard of peace. We are not a military nation, yet we are a rich nation, and unde- fended wealth Invites aggression. The very liberty of Individual speech and action, which we so prize and guard, renders it possible that at times Ufiexpected causes of friction with foreign powers may suddenly develop. A.t this moment we are negotiating arbitration treaties with all the other ireat powers that are willing to enter into them. These arbitration treaties have a special usefulness because in the event of some sudden tUsagreement they render it morally incumbent upon both nations to seek first to reach an agreement through arbitration, and at least secure a breathing space during which the cool judgment of the two nations in- volved may get the upper hand over any momentary burst of anger. These arbitration treaties are entered into not only with the hope of preventing wrong-doing by others against us, but also as a proof that we have no In- tention of doing wrong ourselves. Yet it Is idle to assume, and from the standpoint of national inter- est and honor it is mlscWevotis folly for any staJt^sman to assume, that 4his world has yet reached the stage, or has come within measurable dis- tance of the stage, when a proud nation. Jealous of its hojior and conscious of its great mission in the world, can be content to rely for peace upon the forbearance of other powers. It would be equallv foolish to rely upon each of them possessing at all times and under all circumstances and pro- vocations an altruistic regard for the rights of others. It is our province to decide which side has been right and which has been wrong in all or any of these controversies. I am merely referring to the loss of life. It is probably a conservative statement to say that within the last twelve years, at periods of profound peace, and not as the r*8urt of war. massacres p.nd butcheries have occurred lin which onare lives of men, women, and children have been lost than in any single great war since the close of the Napoleonic struggles. To any public man who knows of the complaints continually made to the State Department there is an element of grim tragedy in the claim that the time has gone by when weak Aations or peoi)les can be oppressed by those that are stronger without arousing effective protest from other strong interests. Events still fresh in the mind of every thinking man show that neither arbitration nor any other device can as yet be invoked to prevent the gravest and most terrible wrongdoing to peoples who are either few in number or who, if numerous, have lost the first and moat important of national virtues— the capacity of self-defense. The United States can hope for a permanent career of peace on only one condition, and that is, on condition of building and maintaining a flrst- claRK navy. The United States ought not to indulge a persuasion that, contrary to the order of human events, they will forever keep at a distance those painful appeals to arms with which the history of ifrery other nation abounds. There is a rank due to the United States among nations which will be withheld, if not absolutely lost, by the reputation of weakness. If we desire to avoid insult, we must be able to repel it ; if we desire to aecure peace, one of the most powerful instruments of our rising prosperity, it must be known that we are at all times ready for war. Personnel of the Navy. The present administration has continued the development and perfecting of all parts of our Navy. Our ships, built by American hands, are sailed by men and officers of American birth. The enlisted men now come into the Navy from every State and Territory and from nearly every city and town, to the ^eat advantage of the Nation and the Navy. These young men, a. large prpportion of whom ai'e from the States of the West and Middle West, are splendid examples of American manhood, 360 NAV7 DEPARTMENT. 361 and form a class described by Admiral Dewey as "the best en- listed men in the world." Of this enlisted force 95 jDcr cent are citizens of the United States and 85 per cent are native born. The last session of Congress provided for an increase of 6,000 seamen, making the total authorized force 44,500. The Marine Corps has been increased by 750 men and 52 officers, making the total authorized force 9,521 men and 333 officers. The Marine Corps occupies 38 shore stations, and marines are stationed on every large naval vessel. The shore stations include the U. S, Legation at Pekin, stations in Panama, Cuba, Alaska, Yoko- hama, Guam, Pliilippine Islands, Honolulu, and each regular naval station. The naval officers of the line, those officers who have the duty of navigating and fighting our ships, form the most numer- ous part of our commissioned naval personnel. They are, for the most part, graduates of the U. S. Naval Academy. They enter the Naval Academy upon nomination by Senators and Members of Congress, from every State and Territory and from every Congressional district. There is thus no aristocracy in the Navy, as it is constantly recruited from every part of our great nation. The son of a laborer and of the millionaire are treated alike at the Naval Academy and they succeed or fail by the same standard regarding individual merit, ability, and charac- ter. They are trained in character. They are trained in the duties of the landsman, the seaman, and the officer, acquiring a knowledge and skill in navigation, gunnery, engineering, and all things that enter into the construction, handling, movement, and operation of vessels of war and the offensive and defensive weap- ons of war placed upon them. It is fair to say that our naval officers are the best in the world, and fairly representative of the people whom they serve, and to their high personal character and devotion to the naval service we owe the great efficiency and preparedness of our Navy, built, officered, and manned by Ameri- cans, a navy of the people, governed by the people and for the people. The training of the officers and men of the Navy is continu- ous, based upon the experience in naval warfare of maritime na- tions. Officers begin their study and training for battle at the Naval Academy, and continue it throughout their active service, in actual battle tactics and drills and in the study of plans, pro- jects and history of warfare at the Naval War College. The General Board, whose president is Admiral Dewey, prepares plans for all possible contingencies, and in time of war, or when active service on a considerable scale is required of the Navy, it is prepared to advise regarding naval operations. The Torpedo School at Newport, R. I., furnishes practical and theoretical in- struction to officers and men regarding submarine operations, torpedoes, mines, explosives, and submarine torpedo boats. The present system of training in g-unnery has been continu- ously successful since 1903. The records for the year show that both rapidity of fire and percentage of hits are greater than in any preceding year, though the conditions of the tests w^ere more difficult than heretofore. This increase in efficiency is due to the skill and energy of officers and men and the spirit of competition which is fostered between individual ships and indi- vidual guns. In battle practice at sea and at ranges of from 6,000 to 9,000 yards the heavy guns made over 30 per cent of hits against targets 30 feet high and 60 feet long, on unmarked ranges and under the conditions of firing in action. Our Navy is second to none in this regard. In small-arm target practice also a very marked improvement has been shown. Recent experiments, under actual battle conditions, have been made by firing the heaviest projectiles and torpedoes at the ar- mored monitor "Florida," and these practical tests are carefully studied by our officers and other experts. Tlie Dry Dock Dewey. The giant steel floating dry dock "Dewey," completed in 1905, is capable of rai'sing an injured vessel of 16,000 tons, whosp bot- tom is 37 feet below the water surface. To have in our Philip- pine possessions this American-built dry dock, adapted to raise 368 NAVY DEPARTMENT. for repairs our largfest ships, the unique experiment of towing it half way around the world was made by the Navy Departnient. In tow of three vessels the "Dewey" departed from Chesa- peake Bay December 28, 1905, and passing- through tlie Sue/ Canal arrived safely at OlongafH), P. I., July 10, 1906, having- traversed 13,089 miles in 150 days 9l^ hours of steaming, an achievement without a parallel in maritime history. IN'nval Review. The Atlantic fleet was reviewed at anchor off Oyster Bay by the President September 3, 1906, and again at the Jamestown Exposition, in Hampton Roads, April 36 and June 10, 1907. The Secretary of the Nav^?^ reviewed the two fleets, Atlantic and Pacific, at San Francisco, on May 8, 1908, the grandest naval review in the history of the country, comprising forty-five fight- ing ships and twenty thousand fighting men. Naval ExpendltureH AntliorlsKed by Sixtieth Conj^ress. The Sixtieth Congress at its first session, just ended, made provision for : Completing the Naval Training Station, Great Lakes, near Chicago, where 2,000 seamen may be recruited from the sturdy men of the West. For a naval station at Pearl Harbor, Hawaii. For improving the naval stations at Olongapo, Guam, Cavite, Culebra and Tutuila, and various naval stations in the continen- tal limits of the United States. For two 20,000-ton battleships. For ten torpedo-boat destroyers. For two fleet colliers. For eight submarine torpedo boats. The Navy as Insurance. The Navy of the United States is an instrument of peace. Regarded as an insurance against war and the consequent enor- mous losses incident to war, it is the cheapest insui-ance in which our nation can invest. Great Britain, whose total valua- tion is fifty-nine billion dollars, expends annually on her Navy 2% (two per cent) of tMs value. France, with a valuation of forty-eight billion dollars, expends 1 3-10% (one and three-tenths per cent) on her navy. Germany, with forty ; Italy, with fif- teen, and Russia, with thirty-two billion dollars total valuation, likewise expends for naval purposes a considerable portion of their national wealth each year. The United States, with a total wealth of 107 billions of dol- lars, expends one-tenth of one per cent annually for naval pur- poses, an expenditure not only le?s, but tremendously smaller, than the expenditure of any oth'^r naval power in the world, compared with our I'esources. With this comparatively small expenditure, we are building one of the most efficient navies of the world as an economical proposition, as an insurance against war, as a preventive of war, to guard, uphold, and defend the wealth and peace and honor of this nation, a modern nation with a modern navy. WireletJH Telegraphy. Wireless telegraphy is of paramount importance to the Navy, necessary for the efficient and economical management of the fleets of the United States in time of p?ace, and their efficient manoeuvering in time of war. A supervisory control ^over the wireless telegraph work and stations of the United States is ex- ercised by the Navy Department as being the executive depart- ment most in interest. An Inter-Departmental Board on Wireless Telegraphy, including representatives of the Departments of the Navy, War. Commerce and Labor, and Agriculture, has provided for harmonious and efficient ccop 'ration of all facilities of this kind, both in peace and war, at all stations of the United States both ashore and afloat. Our largest naval vessels are supplied with the best apparatus and skilled op:^rators. Two years ago, when the President was aboard the '"'Louisiana" in the Gulf of Mexico, it was considered a remai'kable achievement when that NAVY DEPARTMENT. 363 vessel communicated by wireless telegraph with the Navy Yard station at Washing-ton, D. C. The battleship fleet, under Hear Admiral Evans, on March 6, 1908, then in position lat. 9°. 00' N., long-. 96^ 45' West, off the west coast of Guatemala, picked up communication by wireless teiegra])hy with Point Loma, Cali- fornia; Pensacola and Key West, Florida, and New York, the g-reatest distance being about 2,200 miles. From this time on the fleet was in constant communication with the Navy Depart- ment through the naval wireless telegraph stations. Description of the Modern Battleship. The modern first-class battleship is a fighting machine of huge proportions and enormous power, offensive and defensive. A statement of its details will show some of the reasons for its great cost. Battleships like the '^Connecticut," the flagship of the Atlantic fleet, and her sisters, the "Louisiana," "Vermont," "Minnesota," and "Kansas" are 450 feet long, 77 feet in breadth, of 25 feet draft, 16,000 tons normal displacement and 18 knots (or 21 miles) speed. The larger ships authorized and now being rapidly con- structed are of 20,000 tons displacement. They are 510 feet long, 85 feet in breadth, of 27 feet draft, 21 knots (24 miles) speed, with ten 12-inch rifles, fourteen 5-inch rifles, two submarine tor- pedo tubes, and numerous rapid-fire and machine guns. A crew of 55 officers and 878 men is required to operate the guns, en- gines and machinery of such a battleship, of 25,000 horse power, of railroad speed, fitted to burn both coal and oil under her boil- ers, carrying 2,500 tons of coal supply, and nearly 400 tons of fuel oil. These vessels will be able to steam from our Pacific coast to Manila without recoaling. The main armor belt — the heaviest armor of the ship — of strongest steel plates, with specially hardened faces, protects engines, boilers and magazines. A projectile passing through this armor belt would probably inflict greater damage than at any point above. Its position in our vessels is such as to pro- vide the greatest protection to the most vital parts of the ship. The secondary armor belt, above this main armor belt, furnishes protection as far as possible to the hull structure, the lighter battery, and its gunners. The heav3'^ 12-inch guns, their turrets, ammunition hoists, etc., are specially protected by armor practi- cally equal to the main belt. A projectile piercing the armor above the main armor belt would inflict much less injury than one piercing at or below the water line ; therefore, the thickest armor is placed at and more below than above the water line. In our newer battleships a load of 60 to 70 tons sinks the ship about one inch in the water. The capacity of the "Louisiana's" coal bunkers is 2,400 long- tons, corresponding to about three feet of immersion of the ship. The location of the main armor belt of our battleship is such as to secure the best possible protection to vital parts of the ship under average, or normal, conditions of load, and consequently of immersion. The opinions of our own and foreign designers and officers of greatest experience and distinction are in substantial agree- ment as to the location of the main armor belt on our ships. Indeed, if greater weight of armor could be added, the lower edge of the main armor belt w^ould be placed lower rather than higher. It is the general opinion of those qualified to know that in personnel and material the Navy of the United States is not inferior to that of any foreign naval power, ship for shifJ of like age and tonnage. PoTver of a Modern 12-Inoli Gun. It is forty-six years since the strictly American battle of the "Monitor" and "Merrimac" at Hampton Eoads gave birth to modern navies. Since that battle, armor and guns have been constantly improved in quality and strength and power. Our naval 12-ineh rifle, weighing over 60 tons, fires a steel projectile weighing 850 pounds, with a muzzle velocity of nearly 3,000 feet per second, and an energy of about 48,000 foot-tons. The work stored up in this single projectile, as it leaves the muzzle of the 364 NAVY DEPARTMENT. priin, is twice as grreat as the total energy in all the projectiles tired from our most powerful war vessels forty-six years ag-o. Forty-eig-ht thoiis-and fcot tons represents the work required to raise three 16,000-ton battleships one foot in one minute, or it is equal to the energ-y exerted by 48,000 tons falling- one foot, or one ton fallings 48.000 feet— nine miles. Its destructive effect is enormous, and it is to g-uard against this teri-ible projectile that the heaviest and most improved armor is employenl. It is the opinion of some of the most distinguished foreign authorities that onr most recent designs of battleships now nnder construction are distinctly superior to the famous British "Dreadnought," the most recent British type, and the latest re- ports indicate that Great Britain is considering the development of new designs to surpass the "Dreaduo-ight" and its successors of the same type. The History of our New Navy — T^venty-Flve Years of Develoji- nient and tlie Results— the Cost. / The history of the new navy was clearly and tersely told by Hon. George Edward Foss in an address on the naval appropria- tion bill on April lOj 1908, as follows : We have recommended the building of two battleships of 20,030 tons each. They will cost in the neighborhood of $10,000,000 each. In addition to that we have recommended the construction of ten torpedo-boat destroyers, each to cost about $800,000, and eight submarines — a naval programme which will cost in the neighborhood of $30,000,000, a little less than one- half of that which is recommended by the Secretary of the Navy and the General Board. Mr. Chairman, I desire now to speak a little upon the cost of our navy. .This is a great year in the history of the new navy. It was twenty- five years ago that we started in to build up the new navy under the ad- ministration of President Arthur. March 3, 1883, was the birthday of the new navy. That year, at that time, we authorized the Atlanta, the Bos- ton, the Chicago, and the Dolphin, sometimes called the A, B, C, and D of the new navy. Since that time we bave been going on, year after year, building cruisers, battleships, and destroyers, until today we have a good navy. Now, it may interest some of the members of this House to know how much this navy has cost, how much we have expended in the con- struction ol these ships. The cost o4 all these battle3h:i;)s which we have authorized amounts to $309,000,000. We have appropriated for the navy during the last twenty-five years $1,244,6.57,000. Of this, as I say, $309,- 000,000 have gone into the construction of the new ships, leaving a hfilance of $935,000,000, which have gone to the maintenance of the naval establishment during the last twenty-five years. This has been an average per year of $37,000,000 for maintenance. This is what the new navy has cost us. March 3. as I said, 1883, was the birthday of the new navy. We started in then to build our first new .ships, which were cruisers, but it was not until 1890 that we authorized the first battleship, which was the Indiana. That battleship had a tonnage of 10,228 tons. Its freeboard was about 11 feet and 6 Inches. It has armor plate upon its sides 18 inches thick. Its speed was less than 16 knots. That was the first battleship that Congress authorized, and it cost In the neighborhood of about $6,000,000. Today we are building greater battleships — two of them, the Dela- ware and the North Dakota. They have each a tonnage of 20,000 tons. The armor plate upon their sides is only 9 inches thick, but better armor, and their freeboards are much higher— »-twice as high as those of the In- diana — all of which goes to show that during the last eighteen years there has been a mighty and tremendous development in the construction of the American battleship. The guns upon the Indiana were built to fire only once every five minutes, but upon the new battleship.s the large guns, the 12-inch guns, will each fire twice every minute if neces.sary. In fact, there Is hardly anything which the hand of man has contrived during the last twenty-five years which has undergone such a tremendous revolution and change as the great battleship, the ins.trument of warfare, th^r instrument ol the nation's defense. li you look at the character of our battleships first authorized by Congress and as we authorize them today, you will be struck by the fact that they illustrate the policy of Congress. The Indi- ana has a low freeboard of about 11 feet and 6 inches. What was the idea of the navy back at the time when the Indiana was built? Then we were building up this navy, but not with the idea of an aggressfVe navy. It was a navy of defense, and up to the time of the Spanish-American war — yes, up to the time of the naval appropriation bill of 1900 — every author- ization lor an American battleship carried these words, "coast-line battle- .ship." The policy of Congress had been, up to 1900, to build up what? A navy for defense, a navy tio hug the shore line, a navy to defend the coast line. Biit the Spanish American war came on and it opened up a larger door of greater opportunity to this country. Then the policy of the Am- erican N^vy and of Congress changed. What has it been from that time on? To build up a navy for defense; yes, but in recognition of another principle, that the best defense is the ability to make an aggressive of- fen.se ; and so, from 1900, in every appropriation bill authorizing the build- ing of an American battleshfp you will find those words "coast line" stricken out, and the authorization reads, "a seagoing battleship"— a battleship capable of fighting the enemy out on the high seas and not simply defend- ing the coast line. So we have been building up this navy upon that theory since 1900 — a navy for defense ; yes, and a navy for offense if necessary. NAVY DEPARTMENT. 365 The Trip to the Paciftc and its Value. Now, Mr. Chairman, a few months ago, when the President of the United States gave the order that sent the fleet around the Horn out into the Pacific, we heard a great deal of criticism from the public press, particularly in the vicinity of New York. The fleet has passed around the Horn out into the Pacific and we hear no criticism now. A fleet of sixteen battleships, aggregating 223,000 tons, commanded and ofBcered by 14,000 men, the greatest fleet of recent years, which could be duplicated only by England herself, has passed safely from the Atlantic around into the Pacific. We had criticism a few month ago ; we have none now because everybody recognizes that it was a good order which the President made. What use is it to build up ships unless we have them in fleet formation? What use is it to build up a navy unless we send that navy out on long cruises where the men can be properly disciplined and trained? What do you think Rodjestvensky would have given if he could have made the cruise from Cronstadt to Tsushima in time of peace before he was compelled to d« so in time of war? Do you not think his fleet would have been in better condition to meet the enemy in the Sea of Japan if be had made the cruise at least once before in time of peace. This cruise of the American fleet around the Horn has been very profitable to the American Navy, because it has disciplined and trained our personnel and our officers. They have been able to find out the weaknesses in our per- sonnel, if any exist, and not only that, but it has been of great benefit also to the material of the American navy. They have learned whether cur ships were good for anything or not, and the word just coming back to us from Magdalena Bay has been that our ships were even better than when they started on the cruise and the personnel more highly trained and better disciplined than when they first .set sail from Hampton Roads. Another thing which this cruise has called to the attention of the American people is that the American Navy is a national institution ; that we are building up a navy for the protection of the Pacific as well as the Atlantic; that we are a two-oceans country; and necessarily, if the American Navy is to be the instrument of our national defense, we must have a two-ocean navy — a fleet upon the Pacific as well as a fleet upon the Atlantic. [Applause.] This cruise of the Navy into the Pacific has called the attention of the country to another important thing. Wherever that fleet has gone it has been met at every port with the hospitality and the cordiality for which the people of the South American countries are famous. It has tended to cement in closer bonds the relations between our country and the South American Republics. It has given force and efficacy to the words of our able Secretary of State, who made a visit to the leading Republics of South America a few months ago, and it has bound those Republics to us by closer ties than any single thing which could have happened. The people of South America recognize that we are bound together in one common destiny, and that the American Navy and the American people propose to maintain and uphold the Monroe Doctrine and have the ability to do so. Not only has the cruise been beneficial in that respect, but, Mr. Chairman, it has called the attention of the country also to the fact that we are moving westward in our national development. All our history has been along the shores of the Atlantic. Our. war for national independence and our war for the freedom of the seas have been largely along the shores of the Atlantic. But we are passing now in our national development from the Atlantic westward to the Pacific. We are beginning to realize what William H. Seward said on the floor of the American Senate fifty years ago, that the Pacific Ocean, its islands and its shores and the great region beyond would some day be the chief theatre of events in the world's great hereafter. Naval Strengtli. The naval strength of Great Britian is 58 battleships and 38 cruisers, her battleships averaging 14,900 tons. The United States has 29 battle- ships and 15 cruisers, our battleships averaging 14,000 tons. France, with 27 battleships and 23 cruisers, has battleships averaging 13,6o7 tons. Germany's 28 battleships average 12,820 tons. .Japan's 15 battleships aver- age 15,467 tons, nearly 1,100 tons heavier vessels, on an average, than our heaviest 15 battleships now in the Pacific. The relative naval strength of the United States in battleships and armored cruisers is second only to Great Britian. The total tonnage of battleships and armored cruisers as compiled by Mr. Pitman Pulsifer in the Navy Year Book, 1907, is as follows : Battleships. Or No. ulsers. Totals No. Tonnage. Tonnage. No Tonnage. Great Britain United States France 58 29 27 28 15 16 12 6 867,200 406,146 369,233 359,566 232,844 210,899 152,846 73,800 38 15 23 10 14 6 10 3 468,350 186,545 220,982 113,528 156,311 63,166 78,513 19,020 96 44 50 38 29 22 22 "9 1,335,550 592,691 590,215 473,094 389,155 274,065 ,231,359 •92.820 Russia r Italy .-- Austria The addition of the larger battleships, for two of which the preceding Congress has appropriated, will rapidly increase our average tonnage per battleship. 366 * NAVY hEPARTMENT. o 1 o o o o a a. « 'S i (N rH -C CD M X M <» CO to (N Ift "T C<5 S 5 iO'«» «o tgS' CO 104 tCU 1^ 00 CO O CO C f^ 05 < CD I^ Cn O O IM O CO < OcocOC^'^cOI-^co^ CO «aoo"in"t-(M'>Ji 1 25 co-t<»nooocQirioo -*CO-tCDCOt-- -n'ln ) CO ■* LO IC 05 (>q IM "oT-* JM O ! 00 CO 00 rH S o i~ cs lo m 2 5:s:;.^53 2 c o o OcOr-l tH £ >53 « '3 sio O . c3 en ^ ft 0} c3 •go 5? V?. V T3 air .2 t^ ■e ^ 1 CO 03 O O "n ?^ S — . 'J' i/' « QCJ^aj*j— Oft co«i-s->«?. cdsx; o NAVY DEPARTMENT. 367 Relative order of war ship toimage. At present. Nation. Great Britain United States Prance Germany Japan Russia Italy Austria Tonnage. 1,655,075 670,596 614, 45S 523,053 368,665 240,943 220,308 As would be the case were vessels building now complete. Nation. Great Britain. France United States. Germany Japan Russia Italy. 114,2501 Austria. Tonnage. 148,350 284,778 320,040 444,903 685,619 766,488 796,283 1,859,174 Appropriations for the naval establishment since the beginning of the new Navy. Year and Congress. Annual. Additional. Total. IS83 (47-2) $14,819,976.80 15,894,434.23 14,980,472.59 15,070,837.95 10,489,907.20 25,767,348.19 19,942,835.35 21,692,510.27 24,136,035.53 31,5il,05K78 23,513,;^5.00 22,104,061.38 25,327,126.72 29,416,215.31 30,562,660.95 33,003,234.19 56,098,783.68 48,099,969.58 65,140,916.67 78,101,791.00 81,876,791.43 97,505,110.94 100,336,679.94 102,091,670.37 98,95^07.50 122.662,485.47 $14,819,976.80 16,782,695.02 ISai (48-1) $888,860.79 1,272,447.42 981,812,93 1885 (48-2) . 16,252,920.01 1886 (19-1) 16,052,650.88 1887 (49-2) 16,489,907.20 1888 (50-1) 496,306.57 2,208,152.03 573,553.35 1,193,886.47 • 123,195.92 67,872.99 290,063.61 148,235.8.5 1,199,469.12 658.233.62 92,298,741.59 6,449,009.38 5,482,801.32 4,375,858.78 6,280,760.80 2,795,2.57.30 6,127,974.46 15,084,317.81 2,417,019.56 734,790.82 7,333,521.60 26,263,654.76 22,150,987.38 22,206,063.62 25,329,922.00 31,661,850.70 23,611,257.99 22,. 39 1,124.99 25,475,362.57 30,615,714.43 31,220 8»4.57 1889 (50-2) 1890 (51-1) 1891 (51-2) 18i>2 (52-1) 1893 (52-2) 1894 (53-2) 1895 (53-3) 18:>6 (54-1) 1897 (55-1).. 1898 (55-2) 125,301,975.78 62,547,793.06 53,582,770.90 69,-516,775.45 84,382,551.80 84,672,018.73 103,633,115.40 115,420,997.75 104,508,719.93 99,693,298.32 129,996,007.07 1899 (5r)-3) 1900 (56-1) 1901 (56-2) 1902 (57-1) 1!)03 (57-2) . 190 1 (5S-2) . 1905 (58-3) 1906 (59-1) _ 1907 (59-2) 1908 (60-1). . Total 1,215,165,462.92 159,481,580.09 1.374,647,037.01 The "additional" appropriation for 1896 was appropriated in two sessions of Congress~(5t-l) and (51-2). The "additional" api)ropriation for 1898 includes $50,000,000, which was appro- priated for "national defense." Tlie Ui»ite«l States lias not tlie sli^litest i;vlsli to establish a universal protectorate over other American States, or t%t he- come resi»onsil»le for their misdeeds. — From President Roose- velt's The Monroe Doctrine, American Ideals, i». 248. Nothing strikes a deadlier hlo-*v at liherty than the in- sidious Jii>i>eals made in her name in times of puhlic excite- ment. — Postmaster-General Cortelyou on Lincoln's Influence on American Life. We ask for a y^reat navy, \%e ask for an arntament fit for the nation's needs, not primarily to figrht, hut to avert flgrht- ing. Preivaredness deters the foe and maintains right hy the .-.how of ready miglit without the use of A-iolence. — From President Roosevelt's "IVashinston's forgotten maxim," American Ideals, p. 288. Protection saves to the T^'orld the useless expense and lahor of shipping products from one country to another and turns these into productive sources of wealth. — Judge Wil- liam La^vrence, of Ohio, in the Amei-ican Fconomlst. Plans have been suggested foi* the migration of the ne- groes to some othei* country, where tl»ey Mould live by them- selves and gro^v up l»y themselves, and liave a .society by ♦hemselAes, and create a nation by themserves. Such a sug- gestion is chimerical. The negro Jiat* no desire to go, and the ]>eople of tlie South ^-ould seriously ob.{ect to his going. —Hon. W^m. H. Taft, at Plymouth Church, Brooklyn. 368 NAVY DEPARTMENT. Summary of vessels in the United States Navy June SO, 1908. Type. Fit for service, Including those un- der repair. Under con- struc- tion. Author- ized. I'nflt for sea service. Total. First-class battleships Second-class ba'ttleships 25 1 12 1 4 6 22 3 3 9 4 2 31 1 Armored cruisers 12 Armored ram .. _. 1 Single - turret harbor - defense monitors _. - 4 Double-turret monitors 6 Protected cruisers _ "" 22 Unprotected cruisers.. „ 8 Scout cruisers - 8 Gunboats _-. _ __ _. _ " 9 Gunboat for Great Lakes (not begun) 1 1 Light-draft gunboats 3 8 1 " t Composite gunboats^ . -...-..... g Training ship (Naval Acad"-, emy), sheathed 1 Training ships 2 1 2 12 16 35 1 12 3 5 5 42 5 22 15 10 1 5 2 2 Training brigantine 1 Special class (Dolphin, Ve- suvius) 2 Gunboats under 500 tons. 12 Torpedo-boat destroynsine8s system of tlie country rests on tlie l>rotective tarift' and any attempt to clianjjfe it to a free trade liasis will certainly lead to disaster.— Hon. \Vm H. Taft, at Colnmbus, Ohio. The representative government tliat lias served ns ivell for 130 years has not been for Mr. Bryan sntficiently ex- pressive of tlie Tiill of the people. We mnst call upon four- teen million electors to legrislate directly. Could any more burdensome or inetflcient method be devised than this? 1 believe that the referendum under certain conilitions and limitations in the sul>divisions of a State on certain issues may be healthful and useful, Imt as applied to our nuti«Mial government it is entirely impracticable.— Hon. Wm. H. Taft, at Columbus, Ohio. NAVY DEPARTMENT. 369 Cost of all vessels of the new Navy. STATEMENT SHOWING COST OF EACH COMPLETED BATTLESHIP, ARMORED CRUISER, PROTECTED CRUISER. AND UNPROTECTED CRUISER BUILT UNDBR APPROPRIATIONS FOR INCREASE OF THE NAVY TO MARCH 31. 1908. Hull and ma- chinery, In ludlng armor. Equipage In- cluding armament. Total BATTLESHIPS (26). Texas $3,638,284.99 5,333,703.05 5,401,844.97 5,914,021.90 5,162,587.12 4,429,890.69 4,418,091.99 4,077,010.09 4,162,617 ..53 4,073,429.26 4,566,642.69 4,438,925.08 4,475,180.32 6,369,244.20 6,163,380.69 6,052.624.16 0,127.092.63 0,135,763.15 5,538,776.57 5,606,027.94 5,366,355.21 5,313,450.55 5,483,089.56 5,140,130.42 4,351,092.64 4,438,778.19 $563,836.50 649,663.93 645,272.98 661,010.86 708,619.20 613,700.99 580,921.44 588,810.13 561,276.75 547,979.56 814,439.09 819,335.47 790,129.39 1,323,875.12 1,184,748.68 - 1,282,962.33 1,089,451.46 1,299,984.88 985,731.30 1,040,468.56 1,072,922.98 1,092,023.88 1,051,993.05 31,250,000.00 al, 000,000.00 al, 000, 000. 00 $4,202,121.49 Indiana Massachusetts Oresron -- 5,983,371.98 6,047,117.95 6,575,032.78 Iowa - 5,871,206.32 5,043,.591.68 4,998,119.43 4,665,820.22 4,723,894.28 4.621,408.82 5,381,081 78 Kentucky Illinois Maine 5,258,260.55 5,265,309.71 7,693,119.38 7,347,129.37 Ohio - 7,335,586.49 Minnesota 7,216,544.09 7,435,748.03 Georgia .. — Nebraska 1 New Jersey Rliode Island 6,524,507.87 6,646,496.50 6,439,278.19 6,453,474.43 6,535,082.61 6,390,130.42 5,351,092.64 5,438, 778.W Virginia New Hampshire Idaho _ — - Mississippi TotaL - 132,207,543.65 28,218,201.53 155,425,805.18 ARMORED CRUISERS (U). Brooklyn New York— - 3,944,820.73 3,897,840.32 4,831,408.00 4,855,881.02 4,874,500.11 4,885,072.48 5,193,678.07 5,190,650.60 4,678,083.32 4,434,459.80 4,647,311.24 478,969.36 448,802.07 860,201.59 850,493.65 808,019.89 843,840.85 950,7.55.36 955,519.36 a950,000.00 a950,000.00 a850,000.00 4,423,790.00 4,346,642.39 Colorado Pennsylvania Maryland West Virginia 5, 691, 60-.). 59 5,706,374.67 5,682,520.00 5,728,913.33 Tennessee 6,144,433.48 Washington California 6,018,625.90 5,528,483.32 North Carolina 5,384,45».80 South Dakota .. 5,497,314.24 Total 51,433,708.69 8,846.602.13 80.280,310.82 PROTECTED CRTTISERS (18). Newark Baltimore 1,439,382.20 1,554,483.94 1,561,392.47 1,738,257.82 2,484,027.54 2,023,326.91 1,867,934.32 3,461,960.26 3,403,707.07 1,113,395.45 1,098,320.33 1,135,853.66 1,156,256.68 1,378,445.75 3,117,234.16 1,426,850.73 3,171,668.53 3,173,324.35 390,735.00 422,245.41 397,267.91 397,045.49 495,255.84 348,577.61 331,795.48 447,051.00 446,280.37 285,386.30 276,488.77 278,914.08 269,994.74 308,148.45 664,176.84 309,923.-50 660,831.33 644,408.09 1,830,117.20 1,976,729.35 Philadelphia -^- " 1,958,660.3* 2,135,303.31 Olympia 2,979,283.38 Cincinnati - 2,371,904.52 Raleigh- 2,199,729.80 3,909,011.26 3,849,996.44 1,398,781.75 Cleveland _ 1,374,809.10 Denver Des Moines 1,414,767.74 1,426,101.42 1,686,594.20 Charleston 8,781,411.00 1,736,774.23 3,832,502.86 St Louis 3,817,732.44 Total __ _ 36,305,822.17 7,374,388.21 43,680,210.38 UNPROTECTED CRUISERS (8). Marblehead __ _ _ 1,061,426.30 1,050,933.54 1,004,711.65 229,736.63 216,176.17 228,328.25 1,291,162.93 1,267,100.71 Detroit 1,233,039.90 Total 3,117,071.49 674,241.05 3,f91,312.54 a Estimated. WORK OF THE POST OFFICE DEPART- MENT The biisineiSB of the Post Office Department is a reliable index to the gK'nerul condition of the country and the postal receipt- for the last fifteen years show conclusively that our people ha\ c been prosi^ei'ous and oui* business more active since the return of the Kepublican party to power than ever before in the his- tory of the country. The following" table gives the figures of receipts for the years indicated: (Dem.) 1893 $75,896,933.16 (Deni.) 1894 75,080,-179.04 (Dem.) 1895 • 70,983,128.19 .(Dem.) 1896 82,499,208.40 (Dem.) 1897 82,665,462.73 1898 89,012,618.55 1899 95,021,384.17 1900 102,354,379.29 1901 111,631,193.39 1902 121,848,047.26 1903 134,224,443.24 1904. .' 143,582,624.34 1905 : 152,826,585.10 1906 167,932,782.95 1907 183,585,005.57 1; The increase of nearly $108,000,000.00 in fifteen years shows a truly marvelous development. Rural Delivery. The responsibility for the permanent introduction of the wonderful system of delivery of mail to rural communities in the United States belongs to the administration of President McKinley and its continuation and remarkable development to the administration of Koosevelt. The service is now in opera- tion on 39,270 routes, serving 16,000,000 people. In 804 counties the service is so complete that all of the people outside of cities can receive their mail by rural letter carriers. During the fiscal year beginning July 1, 1908, the cost of the service will exceed $35,500,000. The material benefits which it has brought to ' rural com- munities are incalculable. Subscriptions to newspapers, both local and metropolitan, have increased enormously, and farm- ers are able to keep advised of the daijy market quotations and to sell their products to the best advantage. The increased cir- culation of newspapers and periodicals has made the service of great educational vali:e, broadening the minds of the people through a better knowledge of the affairs of the outside world and engendering a desire for intellectual development. As a further result of the installation of the rural delivery service thousands of miles of roads have been improved, thus increasing farm values in some cases twenty-five per cent. No other agency has contributed so largely to making farm life more attractive. The InveHtlKatlons and Tlielr Result. None of the reforms following the investigation of 1903 was more important or resulted in greater benefit to the general public than that which was effected in the office of the Assistant Attorney General, in pursuance of which many hundreds of fraudulent schemes and lottery enterprises have been suppressed. Most of these schemes had grown up and flourished in conse- quence 'Of the failure to enforce the statutes authorizing their suppression, and through their oi:)eration losses aggregating many millions of dollars were annually suffered by jjeople of small or moderate means and to whom such losses meant pe- culiar hardship. The strict and systematic enforcement of the 370 POST OFFICE DEPARTMENT. 371 statutes empowering the Postmaster General to exehide from the mails matter of every kind relating- to fraudulent schemes and lotteries and to withhold from delivery mail addressed to persons or concerns carrying on such enterprises, has reduced the number of such schemes to the minimum and protected the public from enormous losses. Millionei Saved in Mail Transportation. The pay for railroad mail service is fixed by statute and based upon the average daily weight of mails. Since 1873 it had been the uniform practice to use the number of week days in the weighing period as the divisor for dete^'min- ing the average daily weight in accordance with the construc- tion put upon the words "working days." Postmaster General Meyer issued an order on June 7, 1907, following one issued in March, 1907, by Postmaster-General Cortelyou, having the same object in view, which provided that the whole number of days included in the weighing period should be used as a divisor for obtaining the average weight per day. It is estimated that the saving will approximate $4,619,285 annually. From October 1, 1908, the letter postage between this country and England, Ireland, Scotland, and Wales is two cents an ounce instead of 5 cents an ounce. This reduction is expected t6 re- sult ultimately in an increase of receipts because it has always been found that a reduction of the letter rate resulted finally in increasing the revenue. The lower postage will lead also to freer commercial intercourse. Our manufacturers are increasing their sales in the United Kingdom and must rely to a gieat extent upon the mails for orders and additional trade. Furt: er, it will be a great boon to our adopted Engiish-speaking c'.ti/ens and their connections in this country, particularly those of limited means, as it will enable them to keep up correspondence with their relations and friends in the old countries at do- mestic rates. Postal Savings Banks. The leading governments of the world have postal savings banks, with the exception of the United States and Germany, the, latter country, however, having a splendid system of municipal savings banks. Since 1872 the introduction of such a service has been discussed in the United States, and the measure now before Congress which was favorably reported on by the Senate Commit- tee on Post Offices and Post Roads will become a law at the next session. Its enactment is desired in order to encourage economy and thrift among the wage-earners and people of moderate means, and to afford a place of deposit, free from any possibility of doubt or suspicion, for small savings, which in the aggregate amount to vast sums of money and which are otherwise hoarded and kept out of circulation through ignorance or lack of confi- dence. ^ More than seven million immigrants landed in this country during the last ten years, and nearly a hundred million dollars were sent out of the country last year by these people. In many instances it has been found that, for want of postal savings banks, money orders are being bought payable to the purchaser, good for one year. Improved Conditions. It has been the aim of the Post Office Department to improve the conditions under which its employees work, namely : By shortening the hours of labor. By basing promotions entirely on merit rather than favorit- ism, and by securing legislation that provides for annual increases in salaries as the employees prove their worth. The postal service itself has been further improved by the in- troduction of better business methods. Without materially in- '^reasing the expense, the Department has secured more commodi- ous and better equipped post office quarters throughout the coun- try, to the greater convenience of the people and advantage to the service. Aopointment of Postmasters. The policy of retaining in office postmasters who are perform- ing their duties satisfactorily has resulted in improving the effi- ciency of the service. POST OFFICE DEPARTMENT. o2S •a o = S P 00 08 58 *» •5 as wi at h 'a a oooo^. §» Q o '/) o >ft rH Q —' r: 'ji r^ O O O «0 1^ c; ir o < _'-<^'-- -M^^*^* in 00 & s-^i- 0-*•^505«'<^<■*-«■lSe>« ■rH 1£ to o" l(^ C» ■» r-T oT '»• cvf .-T -"" O oT -<■'" h- 05 l> «0 Q «0 t- 2} -< M -?. '/3 1-1 1^ S?^S!SS^2P^!5tr'-'Se'~^'<^ — "«'»-•"« ""5'' 00'-' rH»cicoeoi^iftooir'.-c:DMoof-^eDcoi-i~oto-«fCii-(ooot^ ae-oj^-^^coi-H o5j c-i c^i -^ i-h coi- 5 go moi i- i^o Oi oq »ft uroo iHco«oi>35i-i(Mc»5 ■* ic to CO w wTm'm eo CD © ei «n(N i^eo -^ r-tiHtMT-li-(rHr-lrHi-(i-(i-rO50Oi-Hl0OO5^«0^-Tit^C0 *ioco>jirf-H53-joo;0(?jmf-c;03Xif^^'N-+u^i^j~r-i-f.coiMSiiomi»t^C5ioco :i -J 1^ © i~ w3 1^ oTift -i^'cTo*'! -Too ®''^^■^'~l-H rH CO '•"'"m coooto-* oT i-lrHi-ltHrHi--li-}•< lO(MS^l^-<^i-l30StO©-*OiO-t>r-(OOr-<-!f< w «p 00 -f t- r-Tr^r^ ©'"r-r©"ooco"c7ro co"(M"-^'"'-<'r-rcc ©"loi OS -* -rti (M 1^ to -l< -H CO X> IP (M O lO O « (M r-l CO m T-l © <0 1 a t3 to in tO^© O5©(NlO©r~r-HntO©-^a300C5(MW^( to i-i T-j '>rco -rt" -i^u'i'ir in lo -t-"in -^"if-" 5o"oo © < *" 'l233'5£rS5®'^'*'"*s*<''-**"^oto5)-footooii--o«>(Mi-ii '^-Kt0OS05rHlOiH00Sc<:>(M©C<5 00r?00't<00mc0'*O>Hl>.«(l a* s a ® |IS5 ©3500r- '-<3 1-- ■■'C CO © i>- © 1^ :o C31 5-1 -f i~ c/D CO ^ -If © t^ C0-*rHintDi-HI^O5i-l!3Jl^in'MJ^t0'O;- OQ (M (M (M CO CO < © (M (M © -Hcomoq toco to''i-r-*5D©'-»<'"ooi-rr-.m-* oo(m t>roo'"( r-i,-i'Mco«iftmmm50«Df~i--oooooo©©©ooi-ioQeoifltot^< Ofl 5 a ]3V,\ '~in'M^OtO©CO©m(MT-l-ri-lOp't<(MtD( co(»>nrHK-ii( as-'M ift -H 00 lO m miri^t--coiS©ootor-ix©oooo©'*it£©©cotoxc(5oxx©©r-i(Nco-*m< 55 gp. ! t ¥ 1 1 >cocoto-*to®oeomcoi9-*coir.iftt >(-~O^I^©©i-HS(^OCO-*X35-f©C >l~-*l^-^©(M©h-t-.-*©30-C'»*< .commxrHc^-*tpog©©©iMeo-»-©Or-ir-i(N 0«M do-" X 00 a •^ ft »OJ>.t05J!0©'>J-r-it^comxeocotoi~©i-co-*< to co tr ©r^ ocoo©oxt^»o'Mi^©otl«»<-*-*m-*m©C--(CO©-rCOr-t-»HXpcO©©©®©©r-lT-j (M fri CO ■* m ic in m in to to to to to I- 1~ I'- !■- 1- 1- 1^ i^ t^ I- to to to ©©rHO-icO'^mto r:- 55©©©©©© mOic©intOi^X©©^'NCO-t'l!~tOI~X©®rH5ng- up arrearages of work to the end that bona fide homestead and other claimants may secure their title as soon as possible, while at the same time unlawful en- tries and claims have been vigorously proceeded against. Dur- ing the past five years fences unlawfully inclosing public lands have been removed from 3,518,583 acres, and suits have been re- commended or other action taken to remove such inclosures from an additional 3,763,186 acres. During the past eight years $516,501.53 have been collected by the Department for timber trespasses upon the public lands and cases have been re- ferred to the De])artment of Justice for legal proceedings involving trespasses of $3,007,621.94, of which amount there has been collected through judgment and compromise $510,681. During the past eight years there have been secured in public land cases involving perjury, subornation of perjury, con- spiracy, forgery, false affidavits, timber* trespasses, and un- lawful inclosures: 3^096 indictments; 871 convictions; 251 prison sentences ; $182,737 in fines, and there have been 577 acquittals ; the remainijig indictments are awaiting trial. During the same period 7,874 fraudulent land entries have been canceled, thereby restoring to the public domain and to entry by citizens over 1,259,840 acres. From July 1, 1902, to May, 1908, there have been approved and patented 275,333 homestead entries, covering about 44,053,280 acres. The interest manifested by the people in securing homes on the public domain is shown by the fact that since July 1, 1906 (1% years), 171,047 original homesteads and desert land entries have been made covering more than 28,375,400 acres. Coal and timber lands have been disposed of, so far as existing laws permit, in such a way as to place them in the hands of citizens who will in good faith use and develop them in such a way as to avoid monopoly and tend to the general good. What was known as the Forest Keserve Lieu Act was passed for the relief of settlers whose claims were found to be within forest reservations, but it was found that* instead of benefit- ing the settlers the law was being used by speculators to acquire large tracts of valuable public lands containing timber, springs and other resources of the public domain, which should l;e reserved for honn ffdc settlers; accordingly in 1905 the Re- publican Administration repealed the law. Manjr homestead settlers were from various reasons unable to prove up on their claims and complete title thereto and under the existing laws the making of an entry exhausted their right and prevented their obtaining other homes on the public domain; accordingly in 190 ^ and in February, 1908, acts were recommended by the Department and passed by Congress giv- ing to those who had lost, forfeited, or abandoned their homes the right to make second homestead entries in all cases where the original entries were not canceled for fraud or relinquish- ments sold. This will enable a great many citizens to find new- homes upon the public land and large numbers are taking ad- vantage of t]*s beneficial legislation. Within the next two years between 4,000.000 and 5,000,000 acres of public lands will be ooened to settlement. Under the new plan adopted by the Land Office the drawings will be con- ducted in such a manner that every one who is eligible to take a homestead can register his or her name and stand an equal chance ,of securinqr the best clp.im in the reservation. This plan has been found to work admirably in the recent opening of several Indian reservations. Lender regulations adopted a number of years ago persons desiring to cut timber from public lands for their own use Vere required to file appVicatioris and secure permission from the Secretary of the Interior before they could cut the t"mber, no matter how urgent the need. Last year the Department adopted new rules whereby such persons can file their appli- cations directly with a local field officer. The apolication is mndf^ special, and the field officer, if the application is found to be in good faith, can immediately permit cutting. INTERIOR DEPARTMENT. 375 Guarding- the Ntition'M Coal. For the past few years there has been a widesprea! belief that the public coal lands were being- improvideativ ds posed of and were falling- into the hands of corporations and otaers who were able to control the output of the mines and fix their own prices on the coal. It was also found that lar^e tract > were V being obtained unlawfully under other thaa coal laws, in 1907 the existing- laws were examined, and regulations were adopted to more fully carry out the intent of thi law tiiat coal lands should pass in limited quantities to good faith claimants, \. , , had a personal interest in the lands and the developraeut of coal. In order that coal areas might be d^finei anl thi- ki d and value of the coal more accurately known by the De^iartjient and by the people the Secretary of the Interior directed the Geo- logical Survey to begin the work of classifyi i^ and valuing the public coal lands. The Administration is fully convinced that the present acreage, 160 acres, which may be entered under the coal land laws is too small to warrant a citizen in expending the money necessary for the equipment and operat oi of larger mines. The Department has therefore reconiiiiended, and Con- gress now has under consideration, legislation designed to pei*- mit citizens to enter a larger area of coal land, the entries How- ever to be safeguarded -so that the land cannot be made tlie subject of any combination in the form of an unlauful trust or conspiracy or in restraint of trade in the mining or sale of the coal. This method of preventing monopoly has already been adopted in the Hepburn law passed by Congress this year, and recit- ing to Alaska. The Alaska pioneers had discovered large bodies of valuable coal in the interior of Alaska and had under existing laws located and opened mines thereon, b it were under those laws limited to such a small area that th'i mines could not be worked at a profit nor could the locators, in vie a- of the remoteness of the lands, the price of supplies and labor, afford to install the necessary machinery for the mining from such a small claim. The Interior Department recomn.ended early in 1908 that good-faith claimants owning adjoining claims in Alaska should be allowed to form partnerships or a-sociations and combine sixteen of the small claims into one en:ry and 'patent. This enables them to obtain title and work their mines to furnish coal for local consumption and for the Pacific Coast States. The United States has under the law the right to pur- chase as much coal as may be needed from the mlne> for its Army and Navy at reasonable prices, and every safeguard pos- sible has been placed in the law to prevent monopolies, unlawful trusts or combinations designed to restrain sale or mining of the coal. This legislation is of the utmost importance to the people, and the Administration deserves great credit for pro- viding reasonable laws and regulations whereby honest citizens may obtain coal mines and where at the same time the rights of the public are safeguarded with respect to such a vital necessity as the coal suppl^^ Indian Allotments. Since the 30th of June, 1904, more than 15,000 Indians have received allotments of lands in severalty, covering approxi- mately 2,500,000 acres of land. These allotments have been made, generally, either under what is known as the "Dawes Act," or acts containing similar provisions. The object of the law is to break up the tribal sys- tem and community property by substituting individual owner- ship and citizenship. Under the Dawes Act the allottee was secured in the posses- sion of his allotment for a period of twentj'^-five years, as the Act provided that the land should be held in trust by the United States for that period and at the end conveyed to the allottee or his heirs in fee. He was, however, compelled to assume the burdens of citi- zenship upon the approval of his allotment, and thus many Indians have become full-fledged citizens without any compre- hension of the privileges or responsibilities of citizenship. ;h7G interior DEPARTMENT. The conditions arising- under this provision of the Uiw made plain the need of some modification -which would enable the Indian Office to manage the ailairs of the helpless class with undisputed authority, but, on the other hand, to remove from the roll of wards and dependants the larg-e and incroasiut; number of Indians who no longer need supervision by that Hureau. The Act of May 8, 1906 (known as the "lUirke Act"), meets the requirements by postponing the acquisition of citizenship until the termination of the trust period and declariug that imtil the allottees acquire citizenship they shall be subject to the exclusive jurisdiction of the United States. It ])rovides for those who are competent to manage their own affairs by conferring authority on the Secretary of the Interior to ter- minate the trust period and issue a fee simple patent whenever he is satisfied of such competency. Under this Act 2,206 patents in fee have been issued. During this period 23,308 leases of allotted lauds for farm- ing, grazing, and business purposes have been entered into and approved. By these leases temporary homes have been provided for thousands of white citizens and large areas, which otherwise would have lain idle and unproductive, have been put in culti vation. Tribal Lands— Permits for Grazing Stoclc. 434 permits for grazing stock upon Indian tribal lands have bq^n issued from which a revenue of $984,422.80 has been re- ceived. Tribal grazing leases covering 5,379,177.51 acres have been approved, the annual rental amounting to $619,180.19. These tribal funds are deposited in the Treasury to the credit of the respective tribes, and expended for their benefit or paid per capita to the members, in the discretion of the Secretary. Sng^ar Beet Farming. A paragraph in the Indian Appropriation Act of March 1, 1907, permits the Indians of the Fort Belknap Reservation in Montana to lease their lands, both allotted and tribal, but not to exceed 20,000 acres, for the culture of sugar beels and other crops in rotation, upon such terras, regulations, and conditions as shall be prescribed by the Secretary of the Interior, for a term not exceeding ten years. Under this authority a contract has been executed with three responsible persons for a lease to them of 19,000 acres. By the terms of the lease the Indians are to plow and put under culti- vation 5,000 acres, which has to be carefully worked over the fii-st year to put in beets the next year. The Indians are to re- ceive $4,50 per ton for the beets. The lessees are to erect a factory for the manufacture of the beets into sugar, and take the product of the 5,000 acres each year. TJiis will afford em- ployment for the Indians and if they are able to cultivate all of the 5,000 acres will yield them a reveniie of at least $270,000 per annum. The Geological Survey. The United States Geological Survey, when organized in 1879, under a Republican administratioH, became a pioneer agency in the internal development of the country. The field covered in the varied work of this bureau is that of the min- eral wealth of the nation. Its geologists have investigated the economic possibilities of the utmost corners of the land and by exhaustive studies of the larger mining districts have con- tributed directly to the working knowledge of the mine en- gineers and operators. Even in distant Alaska the work of the CJeological Survey is recognized as of very great practical im- portance to the development of that young giant territory. The survey maps are not only eagerly sought by prospectors and miners, but they are in continual demand in all the great engineering enterprises. Here the Federal service has made its INTERIOR DEPARTMENT. 37 r best record, for its investigations and reports on Alaska ai"e widely credited with being- an important factor in the develop- ment of the larg-e and increasing- production of the precious and useful metals of the Territory. The statistical work of the Surve^^ in its reports on the pro- duction of the precious and useful minerals of the country is recognized as of the g-reatcst value to the mining- industry. No siich comprehensive treatment of the subject of produc- tion and distribution of the mineral wealth of a country is found in the world as that of the United States Geologica] Survey. Among- other thing-s, the Survey is constructing-, at the rate of about 250 square miles a step, a great topographic msCp of the United States — a "mother map" of the coimtry — and it is making one of these steps every third day. That is, it is issuing that often a topographic sheet which thus becomes a part of the big map. Over 1,700 of these sheets have already been engraved «nd about one-third of the United States has been covered. When completed this will be the greatest map in the world. Our topograi^hic maps have become the models for the map-making bureaus of many foreign nations. With one of these maps spread before hinj^ a man may trace the course of every stream, or accurately locate every moun- tain and hill, with the exact knowledge of their steepness and altitudes. The map is in efPect a physical reproduction of the surface of the country, on a small scale. It is easy to see, then, its use not only to the engineer who may want to plan great irrigation or drainage systems or to determine the best route for 100 or 1,000 miles of railroad lines, but as well to the farmer or ranchman who wishes to drain the swampy corner of his farm "or to la.> out a wagon road between his ranch and that of his neighbor. The topographic survey, then, in- cludes all the surface features, while the geologic survey adds information concerning not only the rocks and soils exposed to the surface, but indicates what is beneath and foretells with remarkable accuracy what excavations may encounter, to a depth of hundreds and even thousands of feet. Hydrosrapiilc Surveys. One of the important works of the Geological Survey is its study of the water resources of the coimtry. Records of daily flow of streams have been collected at over 1,500 points throughout the United States for a period of years, in order to determine the average flow of the rivers. During the past year about 500 such stations have been maintained. Knowledge of floods, low stages and average discharge of rivers is essential if streams are to be utilized in power development, in irrigation and drainage and as contributing to inland navi- gation. These investigations of the Survey show conclusively that tens of millions of now wasted horsepower can be con- served and cheaply developed through the use of natural mountain reservoirs at the head waters, for flood storage. They show further that the use of these same flood-control reser- voirs will save tens of millions of dollars annually through flood prevention, and still further that they will be of enormous aid to irrigation in the West and to navigation in the East through the letting down into the river channels the stored floods, during the low-water or irrigation periods. The value of the topographic and hydrographic surveys in the development of the country in general has been very great; but a single striking example of their use from a government standpoint is seen in the successful work of the Reclamation Service. Taking as a basis these surveys, the Reclamation Ser- vice, immediately upon its organization, was able to pick out feasible projects and begin, not surveys and investigations, but actual construction work. The integrity of these great irri- gation works rest upon the records of stream flows which the Geological Survey, thanks to the Republican legislative fore- sight, had collected for years previous to the passage of the irrig-ation act, and the brilliant and rapid achievement of that 378 INTERIOR DEPARTMENT. stM-vice is due to tiie extent uiul thoroughness of these pre- liminai'v basic investigfations. And so with the drainage ])roblem; should ^'ongress enact a national drainag-e law to-day, the wisely provided prcliiTiinary work of the (Jeolog-ical vSurvey could be used as a basis for the immediate construction of a number of great swanij) reclnnia- tion projects and the creation of many homes. For Prevention of Mine AccidentH. The recent great mining disasters and the increasing num- ber of coal jnine explosions throughout the country, and other mine accidents, resulting in an appalling loss of human life, have aroused the country to the need for action to prevent- or diminish, if possible, these horrors. In response to the urgent demand of both labor and capital, Congress at its last session appropriated $150,000 to be expended by the Geological Survey in investigating this subject. A Division of Mine Accidents' has been established and good results are expected, since state- ments already issued by the Survey show that mine accidents and the consequent loss of life have been greatly reduced in foreign countries, due to governmental investigations and study of the conditions affecting mining operations. , j ^ At an experimental station of the Survey being estap^ lished at Pittsburgh under this appropriation, tests of the various dynamites and powders used in blasting coal will be made, in order to determine the safest explosives in the pres- ence of fire damp, coal dust, etc. In connection with the sta- tion there will be an experimental mine, with drifts, headings, rooms, ladders, etc., which can.be filled with smoke or gas and practical experiments made with life-saving a.ppai:atu.s. Miners will be taught how to wear this ap])aratus and how to rescue their comrades from the vapors should they become uncon- scious following an explosion. The results of the investigations, will be published for the benefit of the State mine bureaus, operators and miners. Simple instructions will be printed, from time to time, in half a dozen languages. Coal Liftnd Values Fixed. The development of internal resources has been the aim and the accomplishment of the present administration; but no more than has been prevention of wasteful and fraiidulent exploitation of such resources. In no field of Republican g\iar- dianship of the people's rights does the wise statesmanship ot the administration shine more brightly than in the man- agement of the nation's coal suppl^^ The government still owns between seventy and eighty million acres of known coal fields in the West. The common knowledge of the waste in the operation of the older coal fields as well as the monopoliza- tion of great coal-producing areas by corporations and syndi- cates desiring to hold without developing them or allowing others to devolop them for the needs of the public, suggested to the administration an investigation of the Western fields where the government is still the major owner. This investigation quickly brought to light the fact that large areas of valuable coal lands had been acquired by corporations through gross fraud, jx^rjury, and briber}^ under agricultiiral land laws. A fearless interpretation of the coal land law itself recog- nized that the price which the Government had always charged for coal land, namely, $10 and $20 an acre (according to whether the coal lands lie within or without the 15-mile rail- road limit) Avas only the minimum price. In spite of a verit- able storm of protest, the President immediately withdrew from all entry (57,000,000 acres of Western public coal lands and the Geological Survey began at once the classification and valuation of this land, under regiilations fixing the price at from the minimum of $10 to $20, to $100 an acre. The effect of the President's withdrawal was^not only to stop immediately the sale of public coal lands at an undervaluation, but it checked the gigantic frauds in acquiring such lands, under Mie homestead, desert, and other land laws. INTERIOR DEPARTMENT. 379 In order, however, that leg-itimate operations mig-ht not be hampered unduly the work of classification has been prose- cuted with great vigor and already over 50,000,000 acres of this withdrawn land have been classified and valued by the Survey and restored to piiblic purchase. Valuations have been fixed from $10 up to $75 an acre. These valuations made by the coal geologists of the Survey are not the result of mere classification made in the Washington office, but of actual geo- log-ic field investigations, in the course of which the geologist examined each 40 acres, upon which he put a valuation as coal land. This economic work of the acbninistration is not only securing to the government a more nearly adequate return for property of great value, but is preventing the monopolisa- tion of great areas of coal. Of course, bitter opposition has developed in many instances where individuals and corporations were acquiring lands of great value at the low price of $10 or $20 an acre, or through fraud and perjury at $1,25 per acre. The correction of the evil, however, has met generally with the hearty approval of the people of the Qountry, An idea of the extent of the losses suffered by the Government may be deduced from the results of coal land classifications by the Geological Survey, in which the fact was developed that one coal company in a single coal field in a Western State had legally purchased i:},128 acres at the $10 to $20 an acre rate, while it had acquired 15,800 acres as "agricultural land," and of this last, 13,280 acres had abso- lutely no value for agriculture. Fuel and Structural Material Tests. ♦ A governmental activity for which Republicans may justly take great credit — one of the many results of the wise states- manship and legislative foresight of the party — is the practical testing and experimental work of the Geological Survey. Con- gress first provided for these economic investigations of the natural products of the United States in 1905 and has a])pro- priated a total amount of over a million and a quarter dollars; but the bertfeficial results from the work have been so great and far-reaching that had the appropriation been quadruple or even ten times this amount, the nation would have been reim- bursed by the values saved. To cite one or two instances: An important result attained in fuel investigations is the estab- lishment of the fact that the low-grade bituminous coals and lignites of the country, of which there are tens of millions of acres heretofore considered of but slight industrial valvie, can be converted into gas and used in the gas engine with more than double the efliciency attainable under the steam boiler. In other words, the discover.y has doubled the value of these coals. This applies also to millions of tons of inferior coal which in mining operations is annually left underground and permanently lost. The investigations also show that some of the peats, found in great abundance in the New England, North Central and Atlantic States, but heretofore considered of little value, may be used to advantage as a source of power in the gas ])ro- ducer, either for .local farm purposes or for large power plants, and also that it is practicable and economical to make briquets, a superior and smokeless fuel, out of the millions of tons of slack and coal dust now wasted annually. In the tests of structural materials^ most important results have been attained. The increasing use of reenforced con- crete has shown the great need of scientific information. These investigations have all been made for the benefit of the Govern- ment — Federal buildings and other engineering works, such as the great irrigation structures in the W^est, the Panama Canal construction, etc.^ — but here, as in the case of the fuel investigation, the general public is the greatest gainer from the results. All of these scientific-economic investigations, experiments and tests of the Government, fostered, encouraged, and provided for by Republican legislation, should be continued and extend e'' Upon the economical development of our natural resources de- i80 INTERIOR DEfARTM EXT— RECLAMATION. pends in very larg-e meusure the contimiance of our national sii|)reni(;('.v and tho prosjierity of our people, and these evidences of wise statesniansliip and forelianded legishition show that the party of pro^i^ress can l)e relied upon, in the future as in the past, to carry o\it such ])olicies, whicli, while under the strict wording- of the appropriation acts are for the uses of the government, are in reality for the benclit of all the people of the country. The Reclmnajtion Service. The Keclamation Act; which was signed on June 17, 1902, by President Roosevelt, is to-day generally recognized as one of the wisest laws ever enacted by Congress, as beneficent as it was necessary. It inaugurated a step exactly in line- with the ad- ministration's broad policy of the conservatio"n and develop- ment of the natural resources of the country, and is regarded as second only in importance to that other great Republican enactment — the Homestead law. Under the provisions of the law% national irrigation already has become a most important factor in Western development, in the building up of commonwealths and prosperous agricul- tural communities. The economic value of the work cannot be measured in dollars and cents. Our unoccupied piiblic lands, which belong to all of the people, are largely desert. To make them habitable is a national duty too obvious to be questioned. The future prosperity and growth of sixteen Western States and territories are linked inseparably with the development of irrigation. The desert reclaimed will sufjport millions in com- fort in homes of their own, thus providing a safet}^ valve against the impending dangers of congestion of population in the older settled portions of the country. Conservative en- gineers estimate that at least twenty-five million acres of land now desert and uninhabited will be converted into small farms under the provisions of the reclamation law. This vast area, capable of supporting millions of people, will be brought into cultivation without entailing the loss of a single dollar to the national treasury, as the land reclaimed is* assessed for the benefits received and the landowner must return to the Treasury the cost of reclamation. The' Reclamation Service, now a separate bureau of the De- jpartment of the Interior, has had charge of the engineering work from its inception. Notwithstanding the enormous area of country embraced in the arid States — two-fifths of the United States — the Service lias already completed surveys and per- fected estimates for twenty-six irrigation projects, and is en- gaged upon the construction of twenty-five of these. On a number construction work has progressed sufficiently to irri- gate large areas which have been settled upon, and are now producing crops. No better evidence of the wisdom of the law, and the business-like and the practical methods of its administration could be submitted than the fact that homes are actually being made in large numbers on the land reclaimed, and the cost of the work is being returned by the settlers. A summation of the work of the Reclamation Service to January 1, 1908, shows that it has dug 1,881 miles of canals, or nearly the distance from New York to Idaho. Some of these canals carry whole rivers, like the Truckee river in Nevada, and the North Platte in Wyoming. The tunnels excavated are 56 in number, and have an aggregate length of l^l4 niiles. The Service has erected 281 large structures, including the great dams in Nevada and the Minidoka dam in Idaho, 80 feet high »and 6.50 feet long. It has completed 1,000 headworks, flumes, etc. It has built 611 miles of wagon road in mountainous coun- •;.try and into heretofore inaccessible regions. It has erected r^and in operation 830 miles of telephones. Its own cement mill has manufactured 80,000 barrels of cement, and the amount purchased in addition is 401,000 barrels. Its own sawmills have cut 3.036,000 feet B. M, of lumber, and 23,685,000 feet have been purchased. * The surveying parties of the Service have com- pleted topographic surveys covering 10,970 square miles, an area greater than the combined areas of Massachusetts and INTERIOR DEPARTMENT— PENSIONS. 381 Rhode Island. The transit lines had a length of 18,900 linear -miles, while the level lines run amount to 24,218 miles, or nearly suiHcient to go around the earth. The diamond drillings for dam sites and canals amount to 60,749 feet, or more than 12 miles. To-day the Service owns and has at work 1,500 horses and mules. It operates 9 loco- motives, 611 cars, and 23 miles of railroad, 84 gasoline engines and 70 steam engines. It has constructed and is operating 5 electric light plants. There have been excavated 42,447,000 cubic yards of earth and rock. The equipment now operated by the Service on force account work represent an investment of a million dollars. This work has been carried on with the following force: Classified and registered service, including Washington office, 1,126; laborers employed directly by the Government, 4,448; laborers employed by contractors, 10,789, or a total of all forces of 16,363. The expenditures now total nearly $1,000,000 per month. As a result of the operations of the Reclamation Serv- ice, eight new towns have been established, 100 miles of branch railroads have been constructed, and 14,000 people have taken up their residence in the desert. Pension Lej^islation of tlie Republican Party. During the last four years of this administration the work in the Pension Bureau has been brought up to date. A claim for pension is now taken up for action as soon as it reaches the files of the Bureau. Its early adjudication depends entirely upon the promptness with which the claimant furnishes the evidence called for by the office. If sufficient evidence be filed with the application for pension it is possible that a certificate may be issued to the pensioner within two weeRs from the date the application is filed. There has been a decrease of nearly $700,000 in the expenses of conducting the affairs of the Bureau during the last four years, the expenses during the last year being the smallest since 1886. At one time the number of employees in the Pension Bureau was over 2,000. There has been a gradual reduction in the number of such employees, until at the present time there are less than 1,400. This reduction has been accomplished mainly by allowing- the vacancies which occur through death, resignation, etc., to accumulate instead of filling them as they take place, thus avoiding the necessity for dismissals on this account. Notwithstanding this reduction the number of certificates issued during the last twelve months is greater than during any previous twelve months since the establishment of the Pension Bureau, nearly 400,000 certificates being issued during the past year. The Act of June 27, 1890, passed by a Republican Congress and signed by a Republican President, was the first disability pension law in the history of the world, granting to soldiers and sailors pensions for disability not proven to have been in- curred in the service and line of dut5\ This was the most far-reaching pension legislation enacted after the close of the Civil War and recognized a higher obligation of the people to their disabled veterans than was ever before formulated into law. Previous to 1890 pensions for service in the Civil War were granted only to those who were wounded in the service or who had contracted some disability therein, and likewise pensions were granted only to widows, minor children, and de- pendent parents of those who died from injuries received or dis- abilities contracted in the service. The Act of June 27, 1890, granted pensions to all persons who served ninety days or more during the Civil War and who were disabled from earning a support by manual labor, without requiring the applicant to prove that the disability or disabilities were incurred in the service. The Act also granted pensions to dependent widows of all such persons withoiit requiring them to prove that their husbands died of wounds received or disabilities contracted in the service. The rate of pension under the Act of June 27, 1890, was from $6.00 to $12.00 per month to the survivors of ,S2 INTERIOR DEPARTMENT— PENSIONS. the ('ivil War in uccordaiice with the degree of disability, and $8.00 piT month t(j all widows. The most important pension legislation enacted since the pas- sage of the Act of June 27, 1890, was the Act of February 6, 1907, also passed by a liepublican Congress and signed by a Kepublicau President, granting pensions to certain enlisted men, soldiers and officers, who served in the Civil War and the War with Mexico. Under this Act any pei'son who served 90 days or more in the military or naval service of the United States during the late Civil War or 60 days in the War with Mexico and who was honorably discharged is entitled to a pension of $13.00 I-er month on reaching the age of 62 years, $15.00 per month on reaching the age of 70 years and $20.00 per month on reach- ing the age of 75 years. While the rates to survivors under the Act of June 27, 1890, were from $6.00 to $12.00 per month, the rates provided by the Act of February 6, 1907, are from $12.00 to $20.00 per rnonth. Nearly 400,000 applications for the benefit of this Act have been filed in the Bureau and more than 350,000 certificates have been issued thereunder, making an aver- age increase to each pensioner of about $53.00 per annum. The legislation next in importance is the Act of April 19, 1908, to increase the pensions of widows, minor children, etc., of deceased soldiers and sailors of the late Civil War, the War with Mexico, the various Indian wars, etc., and to grant a pension to certain widows of the deceased soldiers and sailors of the late Civil War. Under this Act all widows, minors, and helpless children on the rolls at a less I'ate were increased to $12.00 per month, and the widows of those who served ninety days during the Civil War and who received an honorable dis- charge therefrom, are entitled to pension under this Act, provided they were married prior to June 27, 1890, dependence not being considered. This Act granted an increase of pension to some 200,000 widows and children of deceased soldiers and sailors of the Civil War and the War with Mexico and the various Indian wars. Pensioners were not required to file an application in the Bureau of Pensions to secure the increased rate provided by tke Act of April 19, 1908, as the Pension Agents were instructed to pay all pensioners on the roll affected by this Act at the increased rate at the first quarterly payment occurring after the passage of said Act. More than 60,000 pensioners received ])ayment at the increased rate at the quarterly payment which occurred on May 4, 1908 — onlj^ fifteen days after the passage of the Act, and the entire nimiber of pensioners entitled to the benefits of this Act receive payment at the increased rate within three months after the passage of the Act. The appli- cations for original pension received under the Act of April 19, 1908, were given immediate attention, and in about thirty days after the approval of the Act the Bureau was issuing more than 100 certificates per day thereunder to widows whose names were not previously on the pension rolls. The number of pensioners on the rolls is now slightly in excess of 950,000 and the average amount paid out in pensions each month is nearly $13,000,000. There are abont 625,000 sur- vivors of the Civil War on the pension roll at the present time. As more than 2,500 of these survivors are dropped from the rolls each month on account of death, the importance of having their claims promptly adjudicated will be readily ap- preciated. The work* in the Bureau of Pensions is now in such a condition that an application for increase of pension will be settled and the pensioner, if entitled to the increase, w^ill re- ceive such increase at the first qiiarterly payment falling di.*e after the filing of the claim. Notwithstanding the fact that the work of the Bureaii during the past year was the greatest in amount during its history, a balance of nearly $400,000 which had been appropriated by Congress for the running expenses of the Pension Bureau remained unexpended at the close of the last fiscal year and was turned back into the Treasury. TTie amount of money paid in pensions by the Government each month was a very great factor in relieving the money stringency during the few months following October, 1907. In order that this money might be distributed as widely as possible and benefit the neighborhoods in which the pensioners were located, the ad- INTERIOR DEPARTMENT— PENSIONS. 383 ministration directed that all Postmasters who haa funds avail- able should accept pension checks from pensioners and pay cash therefor. The Postmasters by this means were able to forward the pension checks to their depositories and obtain credit there- for, instead of forwarding the actual cash. Thik, increased the cir- culating- medium in each neighborhood throughout the country in which pensioners Were located to the full extent of the pension paid, thus greatly benefiting not only the pensioners but the banks and the entire business community as well. The number of pensioners upon the rolls July 1, 1907, and for three preceding years, respectively. Is as follows: 1904. 1905. 1906. 1907. Revolutionary war: Widows 1 2 1 918 2,367 3,519 5,214 7,821 240,785 77,414 1,765 875 7,895 192 459 450,007 161,067 4,067 226 1 4 1 3 Daughters 3 War ot 1812: Widows 776 2,269 3,461 4,510 7,653 219,384 77,620 1,410 769 6,643 195 472 465,224 169,036 4,177 250 600 2,173 3,367 3,984 7.488 205,375 76,810 1,097 662 5,519 205 479 461,078 175,237 4,167 274 558 Indian wars: 2,007 3.201 3,485 7.214 178,816 75.629 873 Widows - War with Mexico: Wi(.o.vs Civil war: General law— W idows Fathe/s - 599 4,578 221 489 Act of June 27, 18 JO 349,283 180,539 4,032 292 Widows Helpless children Act February 6, 1907 116.239 542 Army nurses 606 12,440 1,012 224 2,715 430 8 603 15,711 1,068 272 2,957 473 9 1 10,030 2,453 115 714 108 6 7 579 17,616 1,091 298 3,031 512 ? 10,648 2,498 120 783 130 5 8 War with Spain: 19,031 Widows 1,100 Minor children 316 Mothers :. 3,0)0 Fathers 527 Brothers and sisters 11 Helpless children 2 Regular establishment: Invalids 9,501 2,381 111 633 93 8 5 11,076 Widows 2,526 Minor children 122 Mothers _- _ 821 Fathers ._ . _ 133 Brothers and sisters 5 Helpless children 8 Total 994,762 998,441 985,971 967,371 On July 31, 1902, there were 1.001,494 pensioners on the rolls. The following table shows the annual decrease in the roll since that date and the loss by death for each year : Number of pensioners on the rolls. Number of pensioners dro'^pedby death. .Tune 80, 1903 __ 996,545 994,762 998,441 985,971 967,371 954,613 40,907 43,820 43,883 43,300 45,76S 3), 122 June 30, ]90t June 30, 1905 June 30, IfKW June 30, 1907 .. _ _. . . March 31, 1908..^ .. Total 262,800 Assuredly it Is iiu^visie to cliaiijre tlie policies -«'liicli have worked so well and wliicli are nnw Tvorklnj? so well.— Presi- dent Roosevelt's syeech accepting- 1904 nomination. :<84 INTERIOR DEPARTMENT— PENSIONS. The cost of the pension system per capita of population'^ shown for certain years as follows: '* Year. ■ Number of pen- sioners. Tbtalcost ' " Total of pension popula- system. tlon. Cost per capita of population. ■ 1S<)8 __ >._ 966,012 993,714 996,545 967,371 $161,774,372.36 148,765,971.26 141,752,870.50 139.108,087.48 66,349,000 72,947,000 80,847,000 85,817,239 $2.44 2.04 1838 .... um 1.75 1.62 Uishursements for pensions and for maintenance ^of pension system, 1866 to 1907. Year. Paid as pensions. Cost, mainte- nance, ana expenses. Total. Number of peu- slouers. 1879 '. . $33,664,428.92 56,683,229.08 , 60,583,405.35 , , 51,313,172.05 60,427,573.81 57,912,387.47 65,171,937.12 64,091,142.90 73,752,997.08 78,950,501.67 88,812,720.58 106,093,850.39 117,312,690.50 139,394,147.11 158,906,637.94 139,986,726.17 139,812,294.30 138,220,704.46 139,949,717.35 144,651,879.80 1.38,355,052.95 138,462,130.65 138,531,483.84 137,504,267.99 137,759,653.71 141,093,571.49 141,142,861.33 139,000,288.25 138,155,412.46 $837,734.14 935,027.28 1,072,0)9.64 1,466,236.01 2,591,618.29 2,835,181.00 3,392,576.31 3,215,016.61 3,753,400.91 3,515,057.27 3,466,968.40 3,526,382.13 4,700,636.44 4,898,665.80 4,867,731.42 3,963,976.31 4,338,020.21 3,991,375.61 3,987,783.07 4,114,091.46 4,117,517.73 3,841,706.74 3,868,795.41 3,831,378.96 3,993,216.79 3,819, 366;25 3,721,832.82 3,523,269.51 3,309,110.44 $34,502,163.06 57,624,256.36 51,655,461.99 55,779,408.06 63,019,222.10 60,747,568.47 68,564,513.46 67,336,159.51 77.506,397.99 82,465,558.94 92,309,688.98 109,620,232.52 122,013,326.94 144,292,812.91 161,774,372.36 113,950,702.48 144,150,314.51 142,212,080.07 143,9.37,500.42 148,765,971.26 142,502,570.68 142,303,887.39 142,400,279.28 141,335,616.95 141,752,870.50 144,942,937.74 114,831,694.15 112,523,557.76 141,461,522.90 242,755 250,802 1880 . _ 1881 1882 : 1883 268,830 285,697 303,658 1884 •. 322,7)6 1885 1886 345,125 365,783 1887 406,007 1888 1883 4.52,5)7 489,72) 1890 -. __ . 537,944 1891 r 676 160 1892 876,068 966,012 1893 1894 969 514 1805 970 524 1896 970,678 1897 976,014 1898 933 711 1899 991,519 l.WO 993,529 1901 997,735 1902 999,446 1903 996,515 1901 994,762 1905 938,441 190) 985,071 1907 937,371 Total.-^ 8,501,570,279.46 110,051,513.73 3,611,621,793.19 AN ACT (Iranting pensions to certain enlisted men, soldiers, and officers who served in the Civil War and the War with Mexico. Be it enacted by the Senate and House of Reprmoifntivcs of the United States of America in Congress assembled. That any person who served ninety days or more in the military or naval service of the United States during the late Civil War, or sixty days in the war with Mexico, and who has been honorably discharged therefrom, and who has reached the age of sixty-two years or over,. shall, upon making proof of such facts according to such rules and regulations as the Secretary of the Interior may provide, be placed upon the pension roll, and be entitled to receive a pension as follows : In case such person has reached the age of sixty-two years, twelve dollars per month ; seventy years, fifteen dollars per month ; seventy- five years or over, twenty dollars per month; and such pensions shall commence from the date of the filing of the application in the Bureau of Pensions after the passage and approval of this Act : Provided, that pensioners who are sixty-two years of age or over, and who are now receiving pensions under existing laws, or whose claims are pending in the Bureau of Pensions, may, by application to the Commissioner of Pensions, in such form as he may prescribe, receive the benefits of this Act ; and nothing herein contained shall prevent any pensioner or person entitled to a pension from prosecuting his claim and receiving a ])ension under any other general or special Act : Provided, that no person shall receive a pension under any other law at INTERIOR DEPARTMENT— PENSIONS, 38ft the same time or for the same period that he is receiving a pen- sion under the provisions of this Act : Provided, further, that no person who is now receiving- or shall hereafter receive a greater pension under any other general or special law than he would be entitled to receive under the provisions herein shall be pensionable under this Act. Sec. 2. That rank in service shall not be considered in appli- cations filed hereunder. Sec. 3. That no pension attorney, claim agent, or other per- son shall be entitled to receive any compensation for services rendered in presenting any claim to the Bureau of Pensions, or securing any pension under this Act. Approved, February 6, 1907. AN ACT To increase the pensions of widows, minor children, and so forth of deceased soldiers and sailors of the late Civil War, the War with Mexico, the various Indian wars, and so forth, and to grant a pension to certain widows of the deceased soldiers and sailors of the late Civil War. Be it enacted hy the Senate and House of Representatives of the United States of America, in Congress assembled. That from and after the passage of this Act the rate of pen- sions for widows, minor children under the age of sixteen years, and helpless minors as defined by existing laws, now on the roll or hereafter to be placed on the pension roll and entitled to receive a less rate than hereinafter* provided, shall be twelve dollars per month; and nothing herein shall be construed to affect the existing allowance of two dollars per month for each child under the age of sixteen years and for each helpless child ; and all Act or parts of Acts inconsistent with the pro- visions of this Act are hereby re]jealed : Provided, however, That this Act shall not be so construed as to reduce any pension under any Act, public or private. Sec. 2. That if any officer or enlisted man who served ninety days or more in the Army or Navy of the United States during the late Civil War, and who has been honoi-ably discharged therefrom, has died, or shall hereafter die. leaving a widow, such widow shall, upon due proof of her husband's death, with- out proving his death to be the result of his army or navy service, be placed on the pension roll from the date of the filing of her application therefor under this Act at the rate of twelve dollars per month during her widowhood, provided that said widow shall have married said soldier or sailor prior to June twenty-seventh, eighteen hundred and ninety ; and the benefits of this section shall include those widows whose husbands, if living, would have a pensionable status xmder the Joint Keso- lutions of February fifteenth, eighteen hundred and ninety-five ; July first, nineteen hundred and two, and June twenty-eighth, nineteen hundred and six. Sec. 3. That no claim agent or attorney shall be recognized in the adjudication of claims under the first section of this Act, and that no agent, attorney, or other person engaged in preparing, presenting, or prosecuting any claim under the pro- visions of the second section of this Act shall, directly or in- directly, contract for, demand, receive, or retain for such ser- vices in preparing, presenting, or prosecuting such claim, a sum greater than ten dollars, which simi shall be payable only upon the order of the Commissioner of Pensions, by the pension agent making payment of the pensions allowed; and any person who shall violate any of the provisions of this section, or \\iho shall wrongfully withhold from the pensioner or claimant or any part of a pension or claim allowed or due such pen- sioner or claimant under this Act shall be deemed guilty of a misdemeanor, and upon conviction thereof shall, for each and every such offense, be fined not exceeding five hundred dollars or be imprisoned at hard labor not exceeding two years, or both, in the discretion of the court. Approred, April 19, 1908. DEPARTMENT OF AGRICULTURE. "WorlE of tlie McKinley-Roosevelt Administration in Behalf of tlie Fanner. Dui;ing the last eleven years Presidents McKinley and Roose- velt have aimed to briii*i^ the Department of Ag-riculture to the help of our farmers in all sections of the country and have in- structed the Secretary of Agriculture to use all endeavors to help the tiller of the soil toward greater efficiency and more economic production; to make the American acre more potent in growing crops. The Congress during the last eleven years has quadrupled the amount of money invested in agricultural research and dem- onstration, to give the American farmers help in their opera- tions on the farm, to feed our people well and cheaply, and en- able them to compete with the outside world. It has provided for over two thousand scientists, specialists in their respective lines, who are in touch with our farmers in all sections of the country, gathering information and pi-eparing it for issue in departmental publications, of which nearly seventeen million pieces were given out in 1907 to go into our country homes, deal- ing directly with what is uppermost in the minds of our growers of plants and animals at the time of publication. Science Apiilletl to Development of Agricnlture. The education of specialists in applied science to meet the demand for research under the Federal Government and under State institutions has become a prominent feature of depart- mental work. Graduates of our agricultural and other colleges are drafted into the Department of Agriculture and prepared for scientific research along the lines demanded by the producers of our country under all our varied conditions. Within the last eleven years nearly sixteen hundred young men have had post- graduate instruction in the sciences of agriculture. The De- partment of Agriculture and the State experiment stations are actively cooperating with regard to unsolved problems that affect the farmer throughout our States and Territories and in the islands of the sea that have lately come into our possession. New markets for our surplus pi'oduction are being sought in foreign countries, and scientific inquiry is being made into the preparation of our exports for foreign markets. Uncertainty with regard to the magnitude of our crops at home is being removed by careful statistical inquiry, to the end that more accurate knowledge with regard to production may mitigate the evils of speculation. Inquiry is also being made into the pro- ductions of competing countries, in order that the American farmer may know what he has to meet in foreign markets. New Products for American Farms. Strenuous efforts are being made to encourage the home pio- duction of articles we have been importing from foreign coun- tries. During the last eleven years there has been an increase in the production of sugar from beets which makes the product of 1907, amounting to 500,000 tons, over thirteen times that of 1896 and its value fifteen times. Eleven years ago we produced only one-fourth of the rice consumed in the United States. The fostering work of the Federal Government has enabled the rice growers to produce more than the equivalent of our home con- sumption and foreign markets are being sought for the s\irplus. There was an increase in the production of rice from 97,000,000 pounds in 1896 to an average of 716,000,000 pounds during the j last four years. I Scientific research by the Bureau of Soils demonstrates the ! fact that we can produce at home the fine tobaccos for which we have been paying over twenty million dollars a year to foreign 380 DEPARTMENT OF AGRICULTURE. 387 countries. Our explorers have searched foreign lands for grains, Ipgunies, fiber plants, teas, etc., for introduction into sections of the United States suitable to their production. The producing area for grains has been extended westward into the dry re- gions of our country through the introduction of plants that are at home where the rainfall is light. Nearly fifty millions of bushels of wheat are being grown in regions that have hereto- fore been unproductive. £^raclication of Diseases of Farut Aniuials and Products. The Federal Government is studying the diseases of domestic animals with a view to their complete eradication. Our animals and their products go to foreign countries with bills of health- fulness. The American meats are the most wholesome in the world, as, the world now knows. An imported disease of do- mestic animals was promptly stamped out within a year at an expenditure of $300,000, to prevent it from spreading throughout the counti-y among our herds and flocks. Rigid inspection against foreign covintries having animal diseases is maintained at our ports of entry, in order to protect the health of our do- mestic animals. Within the last eleven yearS the Government has become thoroiighly equipped to deal with plant diseases. The loss of half a million dollars annually was stopped by pathological ex- amination of our sea-island cottons. New varieties of fruits, cereals, cottons, etc., are being created by hybridizing to meet the demands of producers of these crops in the North and in the South. Our forests have been mostly destroyed and our mountains, the natural reservoirs for water, have iDeen rendered incapable of retaining moisture. Efforts are being made to reforest the country, to prevent fires, to regulate grazing in our forests, and to study lumbering and forest products. The Federal Government is making inquiry into road material and a beginning has been made in the education of young men toward road building. A laboratory has been established in the Department of Agriculture for the study of materials with which to construct roads ; and rocks, gravels, clays, tiling, cement, con- crete pavements, stone, brick, wood, and asphaltum are being studied. The Central American boll weevil, now the greatest menace to the cotton crop of the United States, is being actively studied as it increases its range, and means of control have been devised which make the growth of cotton nearly as profitable as ever. The insect enemies of other great staple crops are being investi- gated throughout the country, and the gypsy and brown-tail moths, which are threatening the forest areas of New England, are being checked and broug'ht into measurable control by the agenc}^ of the Federal Government in cooperation with State authorities. The losses occasioned by insect pests in general amount to hundreds of millions annually, and much of this loss may gradually be prevented by the kind of work done by the Department of Agriculture. The practicability of growing tea in the United States is being demonstrated, and extensive experimentation is being made in the production of silk. The atmosphere in its relations to agriculture and commerce is being carefully studied and trained meteorologists for the first time in our history are being detailed from the Department of Agriculture to give lectures in institutions of learning, in order that we may have scholars in the land along this line of inquiry, to the end that the farmer and the mariner may have all the protection that intelligent forecasting can give them. The Meat Inspection and Pare Food Laws. On June 30. 1906, by the approval of President Roosevelt, the Meat Inspection Amendment became a law. Under the provisions of this amendment the Federal Government guarantees to the people of the United States that the meat shipped in interstate commerce is derived from animals which are free from disease at the time of slaughter and that meat food products from these 388 DEPARTMENT OF AGRICULTURE. animals are prepartxl in clean packing- houses, under sanitary conditions, and without the addition of any injurions or dele-, terious druj^-s, chemicals, or preservatives. The United States now has the most string-ent and the best enforced meat inspection law of any country in the world, and it is a great protection to the health and lives of the people. Over 2,500 employees are di- rectly eni>aged each working day in the year in the enforcement of the law. On the same day, June 30, 1906, President Roosevelt approved the Pure Food Lair. This law covers all foods, with the excep- tion of meats, including beverages, and also drugs which enter interstate or foreign commerce. By its terms, articles of food or drink must not contain any injurious or deleterious drug, chemical, or preservative, and the label upon each package of food, drugs, or drink must state the exact fact, and must not be false or misleading in any particular. While this law does not cover foods, beverages, and drugs which are prvill in the end defraud not only creditors, but all those wlxo are engaged in legitimate business, and none more surely than those -ivho are dependent upon their daily labor for their daily bread. — Hayes. The enormous effort of the Tvhole people as a Nation, and the burdens they gladly assume to maintain the national integrity, and to cut out the cancer of slavery that was eating aivay our national life, do not grow any less, from an historical standpoint, as the decades pass.— Hon Wnlv H. Taft, at Riverside Park, New York. Fate has decreed, and her decrees are forever irrevers- ible, that we shall dw^ell in perpetual unison. Political dema- gogues, for selfish ends, and senseless agitators cannot dis- turb the ties >vhich bind us together Tvith more than a Ti- tan's poTV'er. — Hon. C. "W. Fairbanks, at Lancaster, Mass., June ;iO, 1903. The only substantial steps which have been really taken to stop the abuses and oppression attempted by the irre- sponsible holders of great vrealth and corporate p6Tver, have been by the Republican party.— Hon. "Wm. H. Taft, at Greensboro, North Carolina. The menace of 16 to 1 still hangs over us with all its dire consequences to credit, confidence, business, and activity; the enemies of sound money are rallying their scattered forces. The people must once more unite and overcome the advocates of repudiation.- President McKinley to the Noti- fication Committee, July 12, 1900. In spite of the general comfort, there have been made manifest by signs not to be misunderstood, a anickening of the public conscience and a demand for the remedy of abuses, the outgrowth of this prosperity, and for a higher standard of business integrity. Every lover of his country should have a feeling of pride and exaltation in this evi- dence that our society is still sound at the core. — Hon. "Wm. H. Taft, at Columbus, Ohio. Money indebtedness is not the only obligation -we in- curred and assumed in the great civil war. There Tras a still greater debt, an everlasting obligation that could never be paid in full. But in the years that have followed, the Republican party has inaugurated and developed pension la"»vs under which over three and one-half billion dollars have been paid to disabled veterans or to the survivors of those who gave their lives for their country and their flag. This pension system, a product of the policy of the Republican party, has no precedent in history and no equal in justice and generosity among the nations of the earth. —Hon. James S. i^herman. One vital, dominating fact confronts the Democratic rarty -tvhicli no oratory, which no eloquence, "vvhich no r^ietoric can obscure: BRYAN'S NOMINATION MEANS TAi^T'S ELECTION.— New York World. THE DEPARTMENT OF COMMERCE AND LABOR. This newest of the nine executive departments of the gov- ernment has been developed under the McKinley-Eoosevelt ad- ministration. It was created by the Act of February 14, 1903, which makes it the province and duty of the depai-tment "to foster, promote, and develop the foreign and domestic commerce, the mining, manufacturing, shipping, and fisheries industries, the labor interests, and the transi^ortation facilities of the United States." The department was organized by Hon. George B. C ortelyou as the first Secretary of Commerce and Labor. On his appointment as Postmaster-General he was succeeded by Hon. X'ietor H. Metcalf, of California, who in turn was succeeded ill December, 1906, by Hon. Oscar S. Straus, of New York. Sec- retary Straus has had a varied experience in both business and public life, peculiarly qualifying him to discharge the duties of his position. He has stated his policy as head of the depart- ment to be "to do for labor everything that the law permits the department to do, and to give to manufacturers all the knowledge the department can secure ; in short, to conduct the (ie.})artment for the best interests of the industrial classes, em- ployers and employees alike." 'J'he Bureau of Immigration and Naturalization has entered upon- an important new phase of work in preventing fraudulent and careless practices in conferring citizenship upon foreigners. Another piece of constructive work undertaken by this Bu- reau is the collection and dissemination of information regard- ing opportunities for immigrants in different sections of the country. The Bureau of Corporations is a bureau of publicity with reference to industrial combinations, and its reports have served to terminate or prevent serious evils, quite aside from the value of its investigations in prosecuting wrong-doers. The work of these two bureaus is more fully described elsewhere In this volume. Bureau of tlie Census. Of the Government's statistical burea\is the largest is the permanent Census Office, created in 1903 and attached to the Department of Commerce and Labor on its organization. " In the intervals between the decennial counts of population the Census Bureau is occupied in preparing reports on a large number of special subjects, including a manufacturing census taken midway between the censuses of population and jjublished in the form of bulletins. The Bureau publishes annual sta- tistics of cities of thirty thousand or more population, of births and deaths, and of the supply and distribution of cotton. The Census Bureau issues cotton-ginning reports semi-monthly, and arrangements have been made with the statistical bureau of the Department of Agriculture by which the reports of the two biireaus on cotton production are brought into harmony with each other, and made public so far as possible on the same dates and in such a manner as to reduce to a minimum any possible disturbing effect upon the mark^s. The establishment of the permanent Census Bureau has made possible a much needed work for the local registration of births and deaths, resulting in a rapid improvement of American vital statistics. I'he municipal statistics compiled by this bureau have resulted in checking undue extravagance and correcting unwise parsimony, and are thus among the most important agencies for improving municipal government. 390 I DEPARTMENT OF COMMERCE AND LABOR. 301 The Bureau of Labor. The Bureau of Labor was originally organized at the be> ginning of 1885 under the Department of the Interior. In 1888 it was made an independent department (though under a commissioner and not a secretary), but on the establishment of the Department of Commerce and Labor it naturally became a bureau in the new department. Its inclusion in this de- partment was opposed by some labor interests, ambitious to have a Secretary of Labor with a seat in the Cabinet, but labor organizations now express themselves as satisfied with imme- diate representation in the Cabinet through the Secretary of Commerce and Labor. The purpose of the Bureau of Labor is "to acquire and diffuse among the people of the United States useful information on subjects connected with labor, in the most general and com- prehensive sense of that word, and especially upon its relation to capital, the hours of labor, the earnings of laboring men and women, and the means of promoting their material, social, in- tellectual and moral prosperity " The publications of the bu- reau consist of annual statistical reports on various subjects affecting the interests of labor, a series of additional special reports, and a bi-monthly bulletin containing articles of timely interest, and also, in each issue, digests of state labor reports and of foreign labor and statistical documents, current labor legislation, and court decisions affecting labor. At present the bureau is engaged mainly upon an exhaustive investigation of all the conditions surrounding woman and child labor in this country, from which important results, both scientific and leg- islative, are expected. The Erdman Act of 1898 provides that whenever a contro- versy arises between an interstate railroad and its employes seri- ously interrupting or theatening to interrupt the business of the railroad, the Chairman of the Interstate Commerce Commission and the Commissioner of Labor, at the request of either party to the controversy, are required to use their best efforts to settle the same by mediation and conciliation, or, failing such ami- cable settlement, by arbitration, and in recent years it has been successfully employed in a number of cases. A detailed statement regarding the work of this important Bureau is published on an- other page. The interest of the present Administration in the welfare of the wag-e-earners of the country has reflected itself particularly in the activities of the Bureau of Labor. As a result of the exposure of the labor conditions in the packing-houses of Chicago, in which work the Bureau of Labor cooperated, the working conditions of thousands of men and women wage-earners have been greatlj'^ improved. Through the investigations made by this Bureau and the co- operation of the Department of Justice, prosecutions have been instituted for violations of the eight-hour law on Federal work and a more effective enforcement of this important law has been secured. It was largely through the investigations and reports of the Bureau of Labor on the subject that the interest was aroused which secured the passage of the compensation act for Govern- ment employees, which rex^resents the fir^t large recognition on American statute books of a principle vitally important to wage-earners, and one of the most notable steps that has yet been taken in comprehensive social legislation. One of the most important developments in recent j^ears touching the relations of wage-earners and employers has un- doubtedly been the appearance of Government representatives in industrial disputes. Under a lavv passed by 'a Republican Con- gress the chairman of the Interstate Commerce Commission and the Commissioner of Labor are constituted a board of mediation in any industrial dispute affecting railways engaged in inter- state commerce and their employees engaged in train operation. The services of this board are available in any such dispute. upon the application of either side. In the past two j'^ears over twenty appeals have been made to this board for mediation in large and important disputes, and in some instances in the larg; 392 DEPARTMENT OF COMMERCE AND LABOR. est and most important disputes that have ever threatened in the railroad world. In no case in which the services of the medi- ators have been invoked before the strike occurred has it failed to bring- iiboiit a peaceful adjustment of existing difficulties, and one that was accepted as satisfactory by both sides. The enact- ment and the administration of this law would probably be pronounced by those who have had experience of its advantages as one of the most important services that the Government could render to the interests of wage-earners. The Bureau of Manufacture*. It is the special province of the Bureau of Manufactures to foster, promote, and develop the manufacturing industries of the United States and markets for the same at home and abroad. This it does mainly by gathering and publishing infor- mation concerning industries, trade conditions, and trade markets, Consular reports of commercial interest are transmitted from the State Department to the Department of Commerce and Labor and issued by the Bureau of Manufactures in its Daily Consular and Trade Reports, together with occasional reports from special agents of the Department engaged in collecting information abroad for the benefit of American manufacturers. When information is received which is believed to be of special importance to particular industries, as, for example, by pointing out particular points for the sale of their product, it is com- municated directly to those most concerned, a plan much ap- preciated by the manufacturers. Samples and photographs of all kinds of cotton goods sold in China, for example, have been obtained and distributed to commercial bodies and textile schools, and the agent who studied British cotton matiufactures after- wards conferred with manufacturers in the South, explaining British methods and showing samples. Thus the information ob- tained is made of the utmost possible practical value to Ameri- can industries. The Bureau of Manufactures collates and ar- ranges the tariffs of foreign countries in convenient form for the information of exporters, and also publishes an annual volume on "Commercial lielations of the tFnited States." A National Council of Commerce. With a view to bringing the Bureau of Manufactures and the Department generally into closer touch with commercial bodies, such as manufacturers' associations, chambers of com- merce, and boards of trade, a National Council of Commerce has been organized on the initiative of Secretary Straus, with an advisory board as the direct means of communication. It is hoped that all the commercial bodies in the country will join the Council of Commerce, and that it will prove of much value as a practical guide to the work of the Department in pro- moting commerce, and especially as a medium for the exchange of commercial information. Tlie Bureau of Navigration. The Commissioner of Navigation has general superintendence of the merchant marine of the United States His reports are a veritable mine of information relative to the shipping indus- tries, and also contain suggestions regarding desirable amend- ments to the navigation laws. Under the Bureau of Navigation are shipping commissioners .stationed at all the principal ocean ports. Their functions are to superintend the engagement an\l discharge of seamen, to see that the men engaged go on board at the proper time, to facilitate the making of apprenticeships to the sea service, and to keep registers of the names and charac- ters of seamen, thus serving as employment agents with jjower to enforce the provisions of law for the protection of the interests i;f seamen. Through their efForts "shanghaiing" and "crimping," the chief evils connected with the sea service, are being system- aticalh- and eft'ectually stam])ed out. Secrei DEPARTMENT OF COMMERCE AND LABOR. 393 The Steamboat Inspection Service. Secretary Straus has actively interested himself in the im- provement of the Steamboat Inspection Service, with important results in greater safety of travel by water. The annual in- spections required by law having proved an insufficient guaranty of safety, he has ordered that all excursion and ferry boal^s, and so far as possible other passenger vessels, shall be inspected four times a year. All new life-preservers are examined, with the result that very few defective ones are now manufactured, and none are allowed to be used. Explosions are guarded against by testing boiler plates at the mills. During 1907 the number of fatal accidents to steamboats showed a marked diminution. Aids to Navigation. No less important are the steps which have been taken for the improvement of the Lighthouse Service. Standard models have been adopted for Lighthouse tenders and light-vessels, which will be more economical and at the same time more efficient than the old models. The experimental introduction of incandescent oil vapor as an illuminant has proved so suc- cessful in increased candle power and diminished consumption of oil that the new sytem is being installed as rapidly as the available funds permit. The work of the Coast and Geodetic Survey in publishing tide tables, detailed instructions to pilots, and other practical information, is also of much value to navi- gators. Tlie Bureau ol Standards. The Bureau of Standards, created in 1901, has been developed in the few years of its existence into an important source of precise scientific authority of great value both to scientific in- vestigators and to commercial interests and consumers. Its work is of great assistance both to industrial establishments and to other scientific laboratories ; and it cooperates with mxmi- cipal authorities in the establishment of their testing plants by verifying their standards and otherwise. Conferences of state and local officials on the weights and measures of the United States are held annually, under the auspices of the Bureau, and together with the published proceedings are serving to awaken interest in the use of accurate commercial weights and meas- ures, and promoting uniformity in their inspection. The Bureau of Fisheries. The Fish Connnission, formerly an independent establishment, was transformed into a bureau of the Department of Commerce and Labor on its organization. The Bureau of Fisheries is doing an important work in the introduction and propagation of useful fishes and shellfish. Many millions of fish eggs and young- fishes are supplied every year to state fish commissions, and eggs are also exchanged with foreign countries. The bureau also gives expert advice to state officials and to indi- viduals on matters connected with fish culture, capture, and markets. Promising experiments are being made in the arti- ficial fattening of oysters, and experimental sponge plantations have been established in Florida in order to develop a commer- cial system of sponge culture. Bureau of Statistics. The Bureau of Statistics, which receives, analyzes and pub- lishes the statistics of the foreign commerce of the United States, has enlarged its scope of operations to include records of the internal commerce on the great lakes and at interior trade centers, and a statistical abstract of the trade of the principal countries of the world. Its statistical abstract of the United States contains much miscellaneous information, in condensed form, regarding population, industries, commerce, and business conditions in the United States at the latest available date, com- pared with that of earlier years. 394 DEPARTMENT OF COMMERCE AND LABOR. W'orU of the Bnreau of Immigration and Naturalization The past four years have constituted a period of importance unprecedented in the history of immigration of foreigners into the United States. Not only is this true as to the numbers that have come to us in that time, but even to a more marked extent with respect to the supervision that has been exercised and the lunv and important steps taken and advanced methods adopted to solve a very interesting- and vitally important economical j)roblem. On March 3, 1903, an immigration act, more comprehensive and far reaching than any theretofore passed by Congress, v^^as approved by the President. On the first of the following July, the Biireaii of Immigration was transferred to the then recently organized Department of Commerce and Laljor, and regulations were promulgated and detailed plans arranged for carrying out tlie will of the people, as expressed by Congress, with reepect to a restriction along certain lines of the influx of aliens. As new experience was added to that gained in enforcing prior legislation, ?ind more adequate revenues secured under the in- crease of the head tax on aliens to $2 per capita, it was possible to bring about more and more effective measures to attain the ■ A'O objects of the law. It is worth while to note what those wo objects are, for they are a true indication of what the de- lared policy of the United States is with respect to immigration, in the fi.rst place, then, the law (or certain features of it) is iutended to protect the American laborer, skilled or unskilled, from an unfair, and possibly eventually disastrous, competition with the laborers of foreign countries, and thereby maintain the high standards of living Avhich have for so long been the pride, not only of the laboring classes, but of all true and right-think- ing citizens of this country. And, secondly, the law contemplates the object of preventing the entry of foreigners who, by reason of some individual defect — moral, mental or physical — are not thought to be desirable additions to our body politic ; not of foreigners generally, nor of any particular race or class of foreigners, but of those who are individually unfit. The energies of the Bureau of Immigration have been directed to the accomplishment of these two objects, and such efforts have, particularly in the past four years, been rewarded with remarkable success ; for by the beginning of that period the rules and regulations for the application of the terms of the statute to the existing practical situation had become thoroughly ()l)erative at all points. In February, 1907, the Congress again took an advanced posi- tion with respect to immigration, passing the new Immigration Act which was approved by the President on the 20th of that month. While this act added to prior law in no radical or even marked respect (with two exceptions hereinafter mentioned) it contained a number of minor changes, suggested by the ex- periences of four years' enforcement of the Act of 1903, removing difficulties of administration and strengthening clauses designed, by the attachment of penalties to certain kinds of violations, to prod lice discouragement of evasions and violations of the law's spirit ; so that it constitutes a distinct advance in the right di- rection on the question of the exclusion of xindesirable aliens. Thus, throughout the period under consideration, it has been possible to proceed with ever increasing effectiveness in the rejec- tion at the ports of this country of aliens whose moral standards render them undesirable, or who are insane, idiotic, feeble- minded, or otherwise mentally deficient, or who are aiflicted with tuberculosis or loathsome or dangerous contagious diseases, or who aj-e paupers or likely to become charges upon the public, or who are seeking to enter in pursuance of prearranged em- ployment and therefore to the detriment of domestic labor with- in the meaning of the law; and to also proceed with the removal from the country of those found, wnthin three years after entry, to be unlawfully here for reasons of like character. In this latter respect special efforts have been made to bring about ihe removal from the United States of anarchists and other ' "iminals, by making the best use of the machinery furnished by th'j law and in addition securing the cooperation of the local police •TiivtJiprities throughout " the country. DEPARTMENT OF COMMERCE AND LABOR. 395 Contract Ijal»or £}xcladed. lu no respect has this strengthening- of the law been more marked and eiTectual than in the clauses relating to contract labor; and as the enforcement of the new statute is proceeded with, it is auticipated, in the light of results already accom- plished, that it will be of almost incalculable benefit to American laboring- men. By making the terms of these particular clauses more comprehensi\e, and at the same time more specific, Con- gress has furnished the Government with an instrument with which to more effectually than ever before prevent the importa- tion of foreign laborers by the apprehension of such laborers at the ports, and by the still better method of convicting and pun- ishing parties who attempt to make importations. Thus, in sec- tion 2 of the Act, an alien conti-act laborer is declared to be a person who has been "induced or solicited to migrate to this country by offers oi* promises of employment, or in consequence of agreements, oral, written, or printed, express or implied, to perform labor in this country of any kind, skilled or unskilled ;" and in section 4 it is declared to be a "misdemeanor for any per- son, company, partnership, or corporation, i7i any manner what- soever, to prei)ay the transportation or in any way to assist or encourage the importation or migration of any contract laborer or contract laborers into the United States," so that, as has re- cently been held by one of the District Courts, it is still possible, as it was under the old law, to proceed civilly under section 5, for a penalty of one thousand dollars for each offense, and also possible, as was not ihe case before, to proceed criminally in cer- tain violations for the imprisonment of the offender under sec- tion 4 of said act taken in conjunction with section 5440 of the Revised Statutes. The advantages of the new law on contract labor are, therefore, obvious, and the laboring men of the United States are to be congratulated on the strengthening of their bul- wark of defense against foreign competition. Fraudulent Xatnralization Clieclced. The act of June 29, 1906, changed the designation of the Bureau of Immigration to the "Bureau of Immigration and Naturalization," and placed under that Bureau all matters con- cerning the naturalization of aliens. The centralization in this Executive Department of the supervision over the process of naturalization renders it practicable to greatly diminish, if not entirely to eliminate, fraud by preventing illegal naturalization based on falser testimonj^ It also enables the Government to more readily detect irregular and fraudulent naturalization and to cancel certificates of naturalization hitherto illegally obtained. These results are accomplished by means of investigations by the naturalization examiners, and in the short period which ha? intervened since the act became operative rapid progress has been made in the enforcement of this distinctly reformatory measure. No piece of legislation enacted in recent years trans- cends this act in importance or promises more for the uplift and moral improvement of our alien population. The "inestimable- heritage of citizenship" was daily being cheapened and degraded. when the President appointed, in the spring of 1905, an execu- tive commission to investigate and report to him on the subject of naturalization in the United States, the report of which com- mission w^as referred to Congress and formed the basis of the reform measure above mentioned. While qiiite likely, as the administration of the law is proceeded with, some changes in detail may be found necessary or expedient, it can be confidently stated that this piece of legislation, as it has been and is now being applied by the Naturalization Division of the Bureau, worl<- ing in harmony with the Department of Justice, constitutes" a^i enormous stride to^vards the attainment of ideal conditions \vW^ respect to conferring citizetlship upon foreign born resident-- of this country. From being in many respects a purely per- functory procedure, naturalization has been changed into a dig- nified and even impressive ceremony, and the methods of making- application and preparing therefor have been improved from an almost chaotic condition into a carefully safeguarded system. 396 niJI'ARTMENT OF COMMERCE AND LABOR. Certiftcutes of citizenship are no longer miscellaneous illy printed slips of connuon paptM-, l>ut are engraved documents of beauty and value. i)rt>])ared in such a nuinner as to be practically in- capable of i)eing counterfeited. And the foreigner is rapidly being taught that citizenship of this great Kepublic^ is not a boon to be lightly and carelessly conferred or to \ye accepted in a spirit of thoii^htJcssneKs or levity; but is a privileged state into which he can gain entrance only by a display of his fitness therefor, luul the ol)servance of set and absolute requirements. In the short })eriod this division has existed, nearly .')0,000 peti- tions for naturalization have been filed; about half of which have been grantetl and certificates of naturalization issued there- under, and about 1,200 denied, the balance remaining pending. Finding: Emploj'nient for ImmigrrantH anil Worlcnien for E^mi>loye(*H. By section 40 of the Act of February 20, 1907, Congress made provision for the establishment in the Bureau of Immigration and Naturalization of a Division of Information, which might, under the terms of the law and in view of the evident intent thereof, be more accurately designated as a "Division of Infor- mation and Distribution." This in many respects is the most important piece of legislation on immigration ever enacted. The main objection to the greatly increased immigration of the past decade is because of the congestion ' and the evils consequent thereupon in our larger Atlantic seaport cities. While some such cities have been complaining of the enormous increase of their foreign population, other and less densely populated sections of the country have been svilfering to an infinite degree for lack of the labor necessary to a development of their resources. By this pi-ovi|;ion at least the nucleus has been formed for the building up of a system of distribution that will not only relieve the con- gested and sparsely settled sections, respectively, by more nearly balancing them, but at the same time will so place the aliens latiding on our shores that they can with the greatest readiness be assimilated into our permanent population and eventually into the body of our citizenship. While the law is of very recent enactment, the Bureau has not been slow to seize upon its pro- visions for the amelioration of existing conditions, and notable and encouraging progress has even already been made in effectii- ating its purposes. The Division has been systematically organ- ized under a competent chief in the Bureau at Washington ; a branch office established and equipped in New York City ; ar- rangements inaiigurated for the procu^;ement of reliable infor- mation from all sections of the country for distribution to aliens landing at the large ports ; and active operations for the actual locating of settlers begun, nearly 500 having already at the very start been placed in desirable positions where their services are urgently needed. In one other respect the new law contains a departure — one made particularly in deference to the wishes and needs of Ameri- can labor. By a clause attached to section 1 thereof, provision was made "That whenever the President shall be satisfied that passports issued by any foreign government to its citizens to go to any country other than the United States or to any insular possession of the United States or to the Canal Zone are being used for the purpose of enabling the holders to come to the con- tinental territory of the United States, to the detriment of labor conditions therein, the President may refuse to permit such citi- zens of the country issuing such passports to enter the conti- nental territory of the United States from such other coimtry or from such insidar posse.ssion or from the Canal Zone." And in pursuance thereof the President, on March 14, 1907, issued a proc- lamation ordering that "Japanese or Korean laborers, skilled or unskilled, who have received passports to go to Mexico. Canada, or Hawaii, and come therefrom, be refused permission to enter the continental territory of the United States." Under this law and proclamation it has been possible even in the short period intervening to gradually bring about a fairly effective control of the influx of Japanese laborers at which the laboring men, par- ticularly thosse of the West, were becoming somewhat alarmed. DEPARTMENT OF COMMEUCE A\D LABOR. 397 For instance, the statistical records of the Bureau show that m the month of January, 1907, 1,359 aliens of the Japanese race were admitted ' to continental United States, as against 495 in January, 1908; that the admissions in February, 1907, and 1908, were 813 ag-aiiist 468; and that the fig-iires for March of the two years were 1,033 against 491. As the reg-iUations and machinery for the enforcement of the law and prociajnation are perfected even a far greater decrease may be expected with certainty. Eiiforciiis- tlie Cliiiiese Exclusion liatVN. The statute books probably do not contain any legislation more difficult of exact enforcement than the Chinese exclusion laws. The fact that they differ so Radically from other laws, added to the fact that In many sections of the country there is but little sympathy with the more severe portions thereof, op- erates against an efficient application of "their provisions to peculiarly difficnlt conditions. Despite these circumstances and the fact that much criticism of a rather serious nature arose in certain quarters during the mainteiiance of the Chinese boycott against American products, commencing early in 1905, the en- deavors to make said laws effective of their object. \ i ',. the ex- clusion of Chinese coolies, have been constant, and have been by no means im|n'oductive of results. 'i2ie most serious difficulty, perhaps, of all those encountered in tne administration of these laws, has been brought about by the apparently concerted eit'orts of smugglers and promoters residing in the United States and of persons in Chiiia interested in exploiting the Chinese laborer. Having this fact in view, as well as the mischief likely to result from the boycott, the claimed basis of which was the assertion that Chinese of the exempt classes, although in possession of the legal evidence of their status, were subjected to strict, time- consuming, and "humiliating" examinations upon arrival at ports of this country, the Pi-esident. in the spring of 1905, adopted a course which has resulted in a great improvement of conditions in both China and this country; so that instances of the use of fraudulent certificates in securing the admission of Chinese coolies, and complaints of unduly exacting examinations of hona fide members of the exempt classes at ports of this country, have been reduced to a minimvim ; the boycott is a thing of the past, and the alarm it created is almost if not quite forgotten. The enforcement of the Chinese exclusion laws along our land borders, which until a few years ago was almost impossible, has gradually been placed upon a workable basis. This is par- ticularly true of the Canadian boundary, where conditions, com- paratively, approach the ideal, and even on the ^lexican border much improvement has been accomplished by the most strenuoiis exertions. The policy has been to secure just so far as possible such an enforcement of the law as would protect the country from the entry of the coolie classes, and at the same time would give no offense to the Chinese nation or to those classes the exclusion of which is not intended and an encouragement of intercourse with which is apparently essential to the maintenance and advance- ment of our commercial relations with the great Eastern Em- pire. That these are the correct principles upon which to pro- ceed is too obvious to call for any extended explicat'ton. That they have been pursued and are being pursued to the marked advantage of this country, commercially and otherwise, is readily capable of demonstration. BLREAU OF CORPORATIONS. The work of the Bureau of Corporations, a part of the De- partment of Commerce and Labor, is detailed in the chapter en- titled "Conti:ol of Corporations." There lias been considerable debate as to wbetlier tbe Constitntion follo^vs tbe flajf. No matter bow diverse and eonHietinK' our oniuions may be on tbis siil»jeet, tbere is one opinion tbat >ve all eiitei'tain, and tbat is tbat tbe American scbool-bonse follows tbe flaK.— Hon. C. W. Fair- banks, in V. S. Senate, February 33, 1903. TREASURY DEPARTMENT. The work of the Treasury Department is so iuthuately re- lated to the questions of currency, revenue, coimnerce and current business conditions that it has been found necessary to include under the chaj^ters on the Money Panic of 1907, the Currency Law of 1908, Prosperity, Commerce and the Merchant jNlarine many of the statements regarding the work of this department The reader is referred to those chapters and to the index which occu- pies the opening pages of this boolt for those features of the work of the Treasury Department which do not appear in this chapter. CUSTOMS. Drawbaclc. Under section 30 of the tarilf act of 1897, providing for a re- fund of 99% of the duties^aid on imported materials used in the manufacture of exported articles, nearly live and one-half million dollars were paid to the manufacturers of this country during the year 1907. In 1900 the duties refunded amounted to a little over three and one-half million dollars, an increase in 1907 of nearly two million dollars. Applications by manufacturers for the establishment of rates for the allowance of drawback on their products have increased more than 125% since 1900, which shows that the drawback plays an important part in the establishment -and maintenance of for- eign trade. In many instances this rebate of duties has been the factor that enabled our manufacturers to successfully compete with foreign producers in the markets of the world. Efforts have been directed towards relieving the regulations under which drawback is paid of all requirements involving difii- culty on the part of the manufacturer in complying therewith, and to amending and simplifying the same to meet new condition.'^ that arise, the object being to give to manufacturers the benefit of the drawback act, without disturbing their business methods or imposing upon them burdensome requirements. At the same time the revenue has been properly safeguarded. Transportation of Foreign Merchandise Under Bond. To facilitate imj^ortations to interior ports, the privileges of the act of June 10, 1880, known as the immediate transportation act, have been extended to both ports of entry and delivery. The transportation of imported merchandise has been greatly simplified by the adoption of one form of bond for carriers for the various kinds of merchandise and a form of carriers' special manifest of a distinctive color for goods moving under transpor- tation entries. To facilitate further the transportation of merchandise des- tined from one foreign country to another across our territory, the individual bond of the shipper has been discontinued, such shipments now being charged against the general bond of the carrier. • , Also a uniform system of bonding has been adopted whereby the common carrier is required to execute but one bond in the sum of $100,000. and the penalties are fixed for failure to comply with the conditions of the bond. These methods are better adapted to present business con- ditions. Mercliandisc Imported l>y Mail. During the past ten years many postal and parcels post con- ventions have been concluded between the United States and for- eign countries under the terms of which dutiable merchandise may be imported. The growth of these conventions made neces- sar}^ the preparation of elaborate regulations, in order, first, that 398 TREASURY DEPARTMENT. 399 parcels might be promptly delivered to the addressees, and, sec- ond, that the revenue should be properly protected. After careful investigation by the Treasury and Post Office Departments joint regulations were issued which have greatly increased the effi- ciency of the service. Ba^gragre. For many years complaints were lodged with the Treasury Department regarding delays incident to the passing through the customs of passengers and baggage from foreign countries. The practice was to assemble the passengers in a room on board the vessel on which they arrived and there have them prepare and subscribe to their baggage declarations. When this was done the baggage, upon arrival of the vessel at the doclc, was unladen and examined. A careful investigation was set afoot in order to determine what relief, if any, might be granted in such cases. This investigation disclosed the fact that needless confusion, de- lay and inconvenience were due to the existing practice. There- upon regulations w^ere promulgated whereby the declarations of passsngers are prepared aboard ship en route to the United States, delivered to an officer of the ship, and by him turned over to the customs officers upon reaching the United States. These declarations bear a coupon which is detached by the passenger at the moment of preparing his declaration and by him handed to the proper customs officer for identification upon arrival at the dock. By this method passengers do not come in contact with the customs officers until the vessel docks. That the existing regulations on the subject have given gen- eral satisfaction is evidenced by the Ifacts that complaints have ceased and many letters of commendation have been received. • liife-Saving- Service. The Life-Saving Service has been extended during the last four years by the addition of eight stations, making the entire number of stations now upon the sea and lake coasts of the United States 281. Many improvements have been made in the methods and a,j- paratus employed in efl'ecting rescues, the most notable being the successful application of motive power to the large self-righting and self-bailing lifeboats. It having become necessary to increase the inducements for re- taining trained men in the service and ' securing competent re- cruits, the President, upon the recommendation of the Secretary of the Treasury, urged the matter upon the attention of Congress, with the result that an act was passed at the last session inci'eas- ing the compensation of the field force as follows : District super- intendents, $200 per annum; keepers of stations, $100; surfniaa No. 1 in each crew, $5.00 per month; also a ration or conmrata- tion therefor at the rate of 30 cents per day for each keeper and surfman, equivalent to an increase for each man of $9.12 per month. This legislation gives substantial recognition to i most worthy and deserving class of Government employees who pur- sue a dangerous calling, and who annually save hundreds of lives and many million dollars' worth of property. Upon the reconunehdation of the Secretary of the Treasury, also, an act granting authority for the transfer from the Treas- ury Department Library to the life-saving stations of such books as may be no longer needed in that library, passed both houses of Congress at its late session, but not in time tor en- rollment and approval by the President before adjournment. Revenne Cutter Service. The act of April 16, 1908, "To increase the efficiency of the lievenue Cutter Service," is the most important piece of legisla- tion in recent years for the improvement of the Revenue Cutter Service. It brought about a general reorganization in the upper grades in the interest of efficiency and good administration. Legislation of this character was recommended to Congress by Secretary Cortelyou. and the measure received his earnast sup- port. Under this act two additional grades each in the line and Engineer Corps were established, thereby affording greater op- 400 TREASURY DEPARTMENT. j»()rtuiiity to officers for advancement, with a corresponding- in- crease in the life and strength of the corps. Twenty additional junior officers were authorized for duty as watcli officers on the cruising- cutters, which will enable the Department to properly officer the ships. The pay of the enlisted men was increased and provision nuide for placing them on waiting orders at three- fourths pay after thirty years of faithful service. This act has In en followed by a marked decrease in the number of desertions and by an increase in contentment among the crews of the V3S- s.^ls. An increase in the pay of commissioned officers was brought about by the Army Appropriation Bill, approved May 11, 1908, 30 that officers of the lie venue Cutter Service receive the same pay and allowances as officers of corresponding rank in the army. During the past four years eleven vessels of all classes have been completed or aaithorized for the Revenue Cutter Service. The Service has been making every effort toward rendering assistance to distressed vessels, and its success along these lines is attested by the fact that during the fiscal year ending June 30, 1907. the value of vessels assisted and their cargoes amounted to $9,196,097. Bureau of Eni^ravin^ and Printing. For some years past the quarters of this important branch of the Government service have been inadequate for the. immense volume of business transacted, and extreme difficulty /has been experienced owing to the necessity of crowding large numbers of employees into confined spaces. This condition of affairs will soon be remedied, however, for Congress, at its last session,, upon the recommendation of the Secretary of the Treasury, au- thorized the purchase "of a site and the erection of a building,, and appropriated over two million dollars towards this purpose. The new building will embody the latest and most improved- methods of construction, and will contain every provision for the health, safety, and comfort of the nearly four thousand employees that modern building and sanitary science can suggest. In the past four years there has been an increase in the ouV put of the Bureau in paper money and securities for general use of nearly thirty -two per cent, and an increase in the number of employees on the rolls for labor of twenty-two per cent. The five hundred million dollars ($500,000,000) national currency authorized to be issued under act of May 30. 1908, is being pro- duced at the rate of four million dollars ($4,000,000) per day, po that in case an emergency should ever arise the currenc}' can be distributed to relieve the situation without any delay. Nevi' Golfl Coinaj^e. For many years the inartistic designs of the coins of the United States have been the subject of criticism, no chan!~-e ex- cept in minor details having been made in any of the coins for a number of years. In 1904 President Boosevelt took up the question of securing more artistic designs for the coins of the United States, and through his efforts Augustus St, Gaudens, the greatest of Ameri- can sculptors, was induced to undertake the preparation of de- signs of the double eagle and the eagle now being coined and placed in circulation. It can be truthfully said that, without exception, the gold coins of the United States of the new design are the most artistic of those of any coimtry in the world the credit for which is due to the active interest taken by President Tvoosevelt successfully to Mccomplish this purpose. Pnl»lIo Health and Marine HoNitltal Service. A National Bureau of Health was established imder the Treas- ury De])artment by an act ap])r«ved July 1, 1903, which reorgan- ized and added new public health duties to the United States Mui'ine Uospit'^^l Service. An advisory board consisting of sanita- rians of iestnblished national reputations in iheir varioiis lines of work was a])pointed for consultation with the S'lrgoon-Gencral of TREA^URy DEi'ARTMEXT. 401 the Public Health and Alariue Hospital Service relative to the work, and investig-atious to be carried on in the Hygienic Labora- tory then in course of construction. This laboratory was founded for the investigation of infectious and contagious dlsea>;es and matters pertaining to the public health. Under this auspicious airanoenient n'lich vahuible public healtli worlc ha.=i been done by the ^vublh. hcaltlj service, including impor:uvit investigations on th'3 JolloTMng siibjects: 1. The presence and distribution of hook- v^^orm disease in the United States. This is a subject of great sanitary and economic importance to a large number of our Southern States. 2. The cause of the prevalence of typhoid fever in cities. Typhoid fever has for some time been unusually prevalent in many cities, and few sanitary subjects are of greater impoj'tance. 3. The relation of milk to the public health. This work has placed in the hands of health officers and physi- cians a report containing all available knowledge on the sub- ject. Few questions are causing as much agitation and interest on the part of health officers and physicians as is that of milk, and ]30ssibly none are more important. The work done by the Service on the milk problem has been therefore of general utility. 4. The practical uses and application of disinfectants. The Public Health Service inspects annually all establishm^iils manufacturing and selling in interstate commerce serums, anti- toxirfes and similar products used in the treatment of disease. Tn the summer of 1905 yellow fever became epidemic in New Orleans, and spread with such rapidity that it was soon oeyond the control of the local sanitary authorities, who then requested the Federal Government to take charge of its siippression. The Public Health Service immediately sent a corps of officers into the aflFected territory, who tof)k charge of the w^ork. The confi- dence shown on the part of the people living in the invaded ter- ritory and the lack of the usual dread and fear customary in yel- low fever epidemics w^ere commendatory of the efficiency of the work done. Tn the summer of 1907 plague broke out in San Francisco. As in the previous epidemic of 1900. the local authorities again sought the aid of the National Public Health Service, who since that time have had charge of the eradication of the disease in San Francisco. This Bureau has charge of the national maritime ouarantine, which prevents the introduction of epidemic diseases. Tt has also conducted the medical inspection of the millions of immigrants who have come to this country. Work of tlie Treasury Department in Connection witli Public Buildingrs from Jnly 1. 1J)0 4, to March 1, lOOS. On July 1, 1904, there were 375 building, exclusive of Marine Hospitals and Quarantine Stations, completed ai^l occupied, the cost of which, including the amounts spent for the sit^s. exten- sions, additions, and remodeling when required, $135,871,726.31. Since that date 120 buildings have been completed at an aggregate cost of $33,886,245.40, and four have been added by legislation and executive orders. This makes a total of 499 pub- lic buildings, exclusive of the 43 Marine Hospitals and Quar- antine Stations, completed and occupied. In addition to the above, 30 buildings have been extended or remodeled, at a total expense of $3,509,397.20. The following is a summary of the cost of the public build- ings : 499 completed and occupied $169,757,971.71 Extending or remodeling 30 buildings 3,509,397.20 Tj^^lal 173.267.368.91 Mncli money Itas been spent on sea harbors ««rt ,*J|e mouths of our rivers at the sea, but «o>"l»*ra"^«l>„ .'*VJ^ upon the internal waterways which nature has furnished to the country, and which form hisrhways ot travel from one border of it to the other. The call from the country for "he develonment of a well-tho««ht^out plan for the improve- ment of all these waterways is so emphatic that it cannot longer be resisted.-Hon. Wm. H. Taft, at Kansas City, M#. N THE CONSERVATION POLICY, The policy of the conservation is a development of the pres- ent administration of President Jtoosevelt. Its beginnings are to be found in parts of his annnal message of 1906, dealing with public land questions. The first step in definite action to make ready a program was the appointment by the President of the Inland Waterways Commission ; and in his letter notifj'- ing the members of their appointment, the President formulated the fundamental priiK'i])les of the policy. The tindings and recommendations of that Commission, transmitted to Congress by the President on February 26, 1908, with the special mes- sage which accompanied it. was the next step forward ; and the White House Conference of May 13, 14, and 15, 1908, which was presided over by the President and attended by the Gov- ernors of the States and Territories, including Alaska, Port0. Tlie receipts from the J'"'orests are now in- creasing rapidly, but so are the expenditures necessary to develop their usefulness. The cost of keeping- them from burning- *ip, of seeing- to it that they are so used that the rig-hts of everybody are i)rotected, of .seeing- that the Forests are made to yield right along-, year after year, as much wood, as much water, and as much forage as possible for the support of the Western people and their industries, added to the cost of permanent improve- ments, is bound to be heavy. Therefore the consumers of the wood and forage which the forests grow, and those who sell for their own profits the power which streams within the Forests supply-, are called on to make a rea^sonable contribution toward the maintenance and development of th^se sources of their in- dividual gain. No other arrangement would be either fair or possible. Congress could not .justl3^ take from the National treasury the gieat sums which must be spent yearly upon these Forests while making a free gift to a comparatively few indi- viduals of wood, forage, and land for power development, that they may enrich themselves at public expense. 'J he States in which the National Forests lie are still debtors to the Nation for expenditures on their behalf, and will probably remain so for a good while to come. Though the Government has steadily increased the expendi- tures for carrying out its forest policy, the net, cost to the peo- ple for this work was less in the fiscal year 1907 than in any ))revious year since 1899. the very first year in which anything at all was spent on the reserves. Yet in 1899 there were only -l(). 000.000 acres of National Forests, while in 1907 there were 150.000,000 acn^s. The following statement shows what all the forest work of the (lovernment has cost each fiscal year, begin- ning with 1899, what the forests have yielded to the Government, and what the total area of the National Forests has been at the end of each year: Statement of expenditures on account of Forestry and receipts from National Forests. [Expenditures for 1908 based on allotments; receipts estimated.] Appropriations (Includes amounts ex- pended from receipts fund 1900-1908). Receipts fiom sale of timber, grazing, etc. Fiscal year. Division of Forestry, Bureau of Forestry ( Forest Service), Department of Agriculture. General Land Office, Department bf the Interior. , Total area of National Forests. 1809 $28,-520.00 18,520.00 88,520.00 185,440.00 291,860.00 ,350,000.00 a632,232.36 1,190,419.78 1,790,678.79 $175,000.00 210,000.00 .325,000.00 ;ioo,ooo.oo .301,135.00 375,q00.00 a217,907.64 $7,534.83 .36,751.02 29,250.88 25,431.87 45,838.08 .58,436.19 73,276.15 767,219.96 1,. 571, 059. 44 46,021,88i} 1900 46,772,1:^9 1901 46,410,209 1902. 1903 60,175,765 62,351,965 1901 - 62,763,491 1905. ... 1906 85,627,472 106,999,423 1907 150,831 665 a Administration of National Forests transferred to Forest Service, February 1. 1905. The Forest policy of the Government is not confined to the care and development of the forests which the National Gov- ernment owns and holds as triustee for the people. It includes also the effort to bring about the best use of all timber lands and all forest products in the United States, in the interest of the general welfare, which is so clearly dependent on continuing sup- plies of wood and water. The Forest Service studies to find out l)oth how to make the best use of what we now have on hand and how to get more as cheaply, abundantl3', and rapidly as pos- sible. TBE CONi^ERVATION POLICY. 407 If the cost of these studies and of the educational work car- ried on by the Service were deducted from the total expendi- tures for the fiscal year 1907, the remainder would be less than the income to the Government from the National Forests. In other words, these Forests in that year carried themselveb. Be- cause of their growing- economic importance, Congress author- ized the policy of making- expenditures to develop their im- portance still further, so that now the Government is again spending more money on the National Forests than it is re- ceiving from them. In so doing it is simply investing the monej' for the present and future benefit of the people, and protecting a great public property from burning- vip. In holding and developing these great resources, conserving timber and water, regulating grazing, and controlling those who use the Forests for the development of power, the Government is fundamentally helping the home builder. At every point it is working to increase the number of those who own their own homes, the typical American as contrasted with the typical European, who is a tenant paying tribute to a landlord. The National Forest policy makes oppressive monopoly of the best resources of the West impossible. To the extent that the ordi- nary citizen has to turn to one man or one set of men for any- thing which he can not do without and which he can not get elsewhere — whether it is land, or water, or coal, or means of transportation, or opportunity to labor, or permission to en- gage in business — just to that extent he is in the grip of a mo- nopoly. Just to the extent that this monopoly seeks to take ad- vantage of his necessity is the monopoly oppressive. The only trustworthy guaranty that the ordinary citizen can have that a monopoly will not be used to oppress him is Government con- trol of it. For the Government of this country is itself con- trolled by the citizens of the country. Goverimient control of the resources of the Forests prevents the control of those resources by private monopolies. These are things which some one must own. Is it better for the ordi- nary citizen that this some one should be the nati(in, or private individuals, or corporations? Is it better for him to buy timber from an agent of the Government, who holds his jjlace as a servant of the public, or from the local representative of a tim- ber monopoly which cai-es nothing whatever about the public? Is it belter that use of the range in National Forests shoidd be allotted on the basis of past use and residence, or on the basis of the highest price? Is it better that the development of hy- draulic power — a matter capable of complete monopoly in the West — should fall absolutely into the hands of corporations free to collect from the public whatever they choose to ask, with no return to the public for the use of its own resources, or that the Government should control the monopolists in the interest of eqiiitable exercise of their power over the industrial life of the communities dependent on them? Yet with all this, if the effect of Government control- were to prevent the everyday citizen from making a home for himself, there would be good ground for criticism. But pist the reverse is true. The number of permanent homes which can be main- tained in the West is, through control of the Forests by the Government, greatly increased. For the peritianent means of livelihood are increased. American was-e-^ivorkers work T*'itli their lieails an v.el! as tlieir liands. Moreover, tliey talve a Ueen pride in w^liat tliey are doing-; so that, independent of tlie reT»'ard. tliey wisli to turn out a perfect .1ol». Tliis i« tlie g^reat secret of onr suc- cess in competition Tvith tlie Jul>or of foreijyn countries. — President Roosevelt, in message to Congi-ess, Dec. 3, 1901. Tlie administration of exact justice l»y courts Avithout fear or favor, unmoved by the influence of tlie wealiliy or by the threats of the demagogue, is the highest ideal that a government of the people can strive for, and any means by which a suitor, however unpopular or po«r, is deprived of enjoying this is to be condemned. It is important, lio^v- ever, that appeals to judicial remedies should l»e limited in such a T»ay that parties will not use them mei'ely to and so clog efliclent and just executive or legislative action. —Hon. Wm. H. Taft, at Columbus, Ohio. THE CIVIL SERVICE. The cliieJ oriticiisins of the Civil Service of the United States indulg-ed in by the opponents of the Kepublican party are based either upon a total misapprehension or a willful misstatement of facts. The Civil Service law was enacted in 1893 for the purpose of stopping" the flagrant abuses which had developed under the old patronage system of ai^pointnients. Under that system the gov- ernment service in the Departments at Washington had become inefficient and extravagant. Public' office was considered a per- quisite of the party in power, not a public trust. It was to remedy such evils that the Civil Service law was en- acted, and during the twenty-five years of its enforcement there has been developed a high order of industry, integrity, and ef- ficiency in the public service. This development has, of course, not been free from difficulties. Mistakes have been made, but year by year the merit system has been improved and extended until now the competitive classified service covers about 197,000 Federal officials and is recognized as necessary for good ad- ministration. The conclusive answers to the criticisms are the following plain statements of existing conditions and the course of the llepublican party during the twelve years, in which it has had control of the administration : First. — Entrance to the Federal classified service is not de- pendent upon personal or political influence; hence the service is now composed of self-respecting, independent men and women who appreciate that advancement will depend upon individiial industry and ability. They do not constitute a body of per- manent officeholders who are protected from removal even though inefficient and incapacitated, as charged. The power of removal is absolute in the head of every Department. The only limita- tions upon causes of removal are that employees must be treated with justice, that like penalties must be imposed for like of- fenses, and that no person shall be removed from a competitive position except for such cause as will promote the efficiency of the service. The only limitation involved in the procedure pre- scribed by the Civil Service rules for removal is that the cause of removal shall be stated in writing and filed, and when mis- conduct is committed in the view and presence of the President or head of an Executive Department removal may be made sum- marily and not even a statement of reasons is required to be filed. No notice is required to the employee; no trial and no opportunity for a hearing need be given him under the rules. The only limitation is, as stated, that the cause of removal must be one which will promote the efficiency of the service ; that is, must be, for instance, for miscondiict or negligence or laziness, or some such cause ; and that one employee shall not be punished in a different manner from what another is punished. The Civil Service Commission strictly enforces the prohibition against making rem*ovals for political reasons; but its authority is limited to the enforcement of that prohibition. The merit system does not result in an imdue permanency of tenure. 48.2 per cent, of the employees in the classified service of the country have served less than five years, and 72.5 per cent, have served less than ten years. In the District of Cohnn- bia naturally the service is more stable, and in the department;- at Washington 30.8 per cent, have served less than five years and 56.1 per cent less than ten years. The appointments made as a result of the examinations in the entire service are at the ratf of 3,600 per month ; about 22 per cent, of the entire service and about 15 per cent, of the departmental service in Washington 408 TEE CIVIL SERVICE. 409 changes each year. The inefficient employee gives way to the efficient, or the efficient employee finds private work more profit- able or more congenial. The charge that the service is filled with superannuated clerks is imfounded. 60.7 per cent, of the employees are less than forty years old, and 91 per cent, less than sixty years old. In Washington less than 53,1 per cent, are less than forty, and 87 per cent, less than sixty years old. Second. — It is not claimed that a competitive examination is an absolutely correct means of determining the qualifications of applicants, but it is the best means yet devised. The Civil Ser- vice Commission is constantly changing the character of the examinations to meet the special requirements of particular places. The experience of twenty-five years has shown definitely that the average examination can be passed . by any intelligent person who has had a common school education, and does afford a remarkably accurate basis for the determination of the relative ability of applicants. " As a result of the examination for scientific and technical positions, there have been built up various corps of thoroughly trained men who have placed the scientific work of this Govern- ment in the forefront among the nations of the world. This has been particularly true, and the results obtained have been of great practical value, in the Departments of the Interior, Agriculture, and Commerce and Labor. Third. — It is a mistake to suppose that the Civil Service Com- mission exists simply for the purpose of enforcing the law and rules. Its purpose is to provide the most efficient eligibles possible for every branch of the service. It looks to the good of the ser- vice, not to the mere enforcement of a rule. It is the barrier against the spoils system, but it does not protect the inefficient or dishonest employee. The ideal Civil Service law should close the door to entrance into the public service except throiigh a method which can be followed by any qualified person without political influence or favor, but leaves to the executive authorities the power to re- move for any cause, other than political or religious. It is to- ward this ideal that the present Administration is working. The business of the Government has grown in proportions not appreciated by the people at large. The executive departments are made responsible for the expenditure of about $600,000,000 annually. Such expenditures can be wisely and honestly made only by exercising the highest degree of business ability and selecting efficient, capable employees who will make good service to the Government their ambition. The Eepublican party has proved that under its administration the business of government is so conducted. President Roosevelt, the party's present repre- sentative, has appointed men of recognized ability and judgment to carry on executive work. He has made no promises impos- sible of fulfillment. By precept and example he has inspired public officers to a higher sense of duty. In this administration neither personal nor political influence has availed to save the corrupt official from punishment. American citizens should re- member and take to heart these words of the President : "The most successful governments are those in which the average public servant possesses that variant of loyalty which we call patriotism, together with common sense and honesty. We can as little afford to tolerate a dishonest man in the public service as a coward in the army. The murderer takes a single life ; the corruptionist in public life, whether he be bribe giver or bribe taker, strikes at the heart of the commonwealth. In every public service, as in every army, there will be wrongdoers, there will occur misdeeds. This can not be avoided ; but vigilant watch must be kept, and as soon as discovered the wrongdoing must be stopped and tbo wrongdoers punished." ^^r, Taft has, during his entire political career, been a steady and efficient supporter of the improvement of the Civil Service. He introduced the merit system into the government of the Philippines ; he has had charge of one of the great Departments of the Government under the administration of President Roose- velt, and whatever commendation is due to President Roosevelt in his course in the handling and the improvement of adminis- tration is shared by the present candidate of the party, who has loyally and consistently supported the reforms which President Roosevelt has introduced. 410 THE CIVIL SERVICE. Brlttfib Mniinfiii'tnrcrs Advoeute Tariff Reform. London, April 27, 1908. The proiBfvess of taritt reform in Eaglaiul is well illustrated by the action of the Associated Chambers of Commerce at their rectMit meeting- in J^ondou. This is the most important com- mercial bod\' in iiritain, and it represents the business life of the country. The question before it for decision was "That this Association, while approving of the principle of free exchaiige, recognizes the grave danger to which our industrial population is exposed by the action of scientifically imposed foreign tariffs, and is of opinion that steps should be taken. to mitigate the evil i)y the reform of our tariff." In a vote this resolution was adopted by 40 to 30. there being 31 neutral. As showing the advance of the movement. a similar motion was rejected by 69 to 27 when made three years ago. AVe are iMit a nation of elasseH, but of wtnrdy, free, imle- l>eii«leiit and honorable people, deNplNinja; fbe demapfogrne and never eai>itnIatinK- to dishonor.— MoKinley's letter of accept- anee, 1>?9«>. The present pbeii»inenal prosperity has been ^von under a tariff made in aeeordnnee ^vitli eertnln ii.ved prineiples, the most important of ^vhteh is an nvoTied determination to pro- teet the interests of the American protlueer, liusiiness man, wufte-M'orker, and farmer alike. — Presltlent Roosevelt. We have had srreat problems before and have solved them riuhtly — that is the American v»'ay of solvinsr problems. We mnst api»roaeh these ne^v ones In the same spirit ^vith whieh -we approached and successfully solved those "»vhlch have jffone into history. — Hon. Georn^e B. Cortelyou, at Lr- bana, Illinois, June 7, 1905. They tell us that a protective tariff was only designed for infant industries, that ^ve have outgrown that infancy and are no lons'e«* in need of the duties tliat enabled us t<» pret them started. We have ftro^vn. It is true. Our ^reat industrial concerns are monsters uoav, but let me tell you. as the boy said ivho Avaitcd till he had jairown up before tackliniiV a youthful opponent, the other fello^v has ji^rown up too. — Hon. James S. Sherman. In the grreat battle of 1S96 the Republican party attain stood for the maintenance of the iuteftrity of the nation. The flK-ht wan against odds produced by a ju;^reat industrial depression, and auainst the most sophistical iirftumen ts. The Hepnblican party maintained a campaign of education amouK' the ^vn^e-earners and the farmers, -which ultimately led to tKe complete defeat of this second financial heresy •»vliich has threatened the intcKrity of our business structurt-. —Hon. Wm. H. Taft, at Kansas City, Mo. I'nder the system of protection every hour of honest toil purchases more of material comfort for the toiler than is at- tainable under any other system, the degree of such advan- laiJTe beinft- contingrent upon the completeness anil accuracy of the apiilication of the protective system. This advantage comes directly or fndireetly to all classes of toilers, be they ^veavers, spinners, carpenters, painters, machinists, farmers, doctors, editors, or teachers. — Hon. H. B. Metcalf, Pawtucket, R. I., in the American IDconomist. M.r. Bryan's whole system of remedies for the evils that both Mr. Roosevelt and he and many others recosnizie, is based on his distrust of the honesty, couragre and impar- tiality of the IndiA-idual as an agrent on behalf of the people to carry on any part of grovernment and rests on the propo- sition that our present system of representative grovern- ment is a failure. He would have lafovernment OT\'nerslilp of rail^vays because he does not believe It is possible to secure an interstate commerce commission tliat the "money po^wer" cannot and will not nltimately ov»'n. He ^voultl have the initiative and referendum because he distrusts repre- sentative jufovernment and has no confidence in the ability of the people to find men -tvlio ^vill conscientiously, and free from the influence of the '*njoney j>ower,'* /-epresent them in preparing and A'OtiuR- legislation. He would take away from courts, because he distrusts the ability of judgres t«> resist the malign influence of the "money po^ver," the iiower to enforce their o^vn or«lers until a jury fs called to tell the court %vliether tlie order has l>eeii disobey4'«l. and thus, in practice, tliougrh not in theory, the jury ^vould <*oiiie tc» liass on the correctness and justice of the court's order. —Hon. Wm. H. Taft, at Columbus, Ohio. THE NON-CONTIGUOUS TERRITORY OF THE UNITED STATES. The last decade has developed a new quality in the American, the power to successfully g-overn noncontiguous territory occu- pied by people of nationalities, customs, and civilization differing widely from our own, and living- under climatic and other con- ditions also widely different from those to which we have been accustomed. This new work has required the American soldier, sailor, and citizen to study the characteristics of and devise means of g-overmnent for the millions in the Philippine Islands, and with them, large numbers of Chinese and not a few other Orientals ; tne thousands of Chinese and Japanese of the Hawaiian Islands, the mixed Spanish and native population of Porto Rico^ Cuba, and Panama ; and, passing- from the tropics to the Arctic, the Eskimo and Indian of Alaska. In all of these cases the ad- vent of American influence has brought civilization, education, improvement of imblic health, better transportation facilities, diversification of industries, increased commerce, increased earn- ings, and with all of these a growing share in domestic govern- ment, and produced prosperity, peace and contentment. The establishment of peace has been in every case the first purpose, and following this the introduction of educational facilities, the development of transportation, and with this the development of commerce. Schoolhnuses, roads, railroads, canals have fol- lowed the American flag, and the American soldier, sailor, or civil administrator in all of these various and widely sepa- rated sections of the world, and these in turn have been followed by closer relations between the United States and the 12 million people occupying these scattered sections, now known as the non- contiguous territories of the United States, omitting from this category, of course, Cuba, which is but temporarily under Ameri- can control, and will within a few months be again established as an independent American Ilepublic. In chapters which follow the conditions now prevailing in these various sections of the world, and commonly designated as the noncontiguous territories of the United States are set forth in detail. It is not improper to say, befoi-e entering- upon a discussion of these conditions, that the trade of the United States with this noncontigiious area — the Philippines, Hawaii. Alaska, Porto Rico, and the Pan- ama Canal strip— has grown from 35 million dollars in 1897 to 160 millions in 1907. The imports from these various territories have grown from 24 milliions in 1897 to 77 millions in 1907, and the exports to them from 11 millions in 1897 to 83 millions in 1907. In this important work no citizen or official of the United States has performed a greater or more varied and difficult work than has ISlr. Taft. in his services in the Philippines, in Cuba, and in l*anama. THE PHILIPPINE ISLANDS. The assumption of sovereignty over the Philippine Islands on the part of the United States was not a matter of voluntary action, but was developed suddenly and unexpected as the result of a victorious war. The burden of its unavoidable oo- ligations had to be promptly met. A government had to be built from the ground \ip — a government involving all the phases of law and conditions of a people numerically greater than the size of the United States at the time the Fedei^al Consti- tution was adopted, 3^et on account of the conditions under which they had so long lived they were for'the time being at least incapable of self-government. They ^vere scattered oxer a territory whose extent north and south, measured by the time required to' travel, was equal to the great coast line of the United States between Eastport, Maine, and the Florida Straits, 411 412 N0N-C0NTIQU0V8 TEWY—THE PHILIPPI2^E8. or, more plainly stated, whose territorial length from Bashi Channel to Sibuto Island is not less than the length of a ship- pathwa}' between Canada and the Gulf of Mexico — a people with IK) language of their own, divided into about twenty separate and distinct classes or clans, each with a dialect or Spanish patois not always understood beyond the immediate locality in which it was spoken — a people such as no other nation on eurtli before had ever been called upon to tranquillize, control and govern, and, in a measure, to civilize as well as to train and edu- cate in the duties of modern citizenship. Such a jjeople as they, in a tropical country thousands of miles from our own shores, on the opposite side of the globe, in fact, fell suddenly under the care and protection of the United States, a country without ex- perience in governing or developing a tropical or oriental people. The First Steps In Government of tlie Island. Necessarily, of course, the first steps taken with respect to the establishment of American dominion over the Philip- pine Islands were war measures. Spain had suddenly lost both prestige and dominion over the Philippines, and the Ameri- can Army as an unavoidable act of war naturally had to exer- cise its ' functions in martial government. But from the Very start care was exercised to do away as much and as speedily as possible with the austerity and rigor of martial law and almost from the beginning the military government was dual- ized by delegating certain powers to a Civil Commission, which at first shared authority with the military government and finally supplanted it. Civil government in the Philippine Islands, however, as dis- tinguished from military administration, dated from the ap- pointment in March, 1900, by President McKinley, of what is now generally known as the "Taft Philippines Commission." In creating this commission and authorizing it to assume and discharge the functions of government, the President still ex- ercised the war power of the nation, for the commission thus created was an instrumentality for the exercise of authority by the President, as Commander-in-Chief of the Army and Navy of the United States, to administer the affairs of civil government in territories subject to military occupation. The Commission thus established, however anomalous it may have seemed, was a civic agency for ther exercise of the powers of military government, and, being without precedent, it may be regarded now as one of those beneficent, wise, and valued achievements in our national history which seems to have been inspired by a power beyond the ordinary human comprehen- sion. It is now more than seven years since President McKinley committed the government of the Philippine Islands to the con- trol of the Philiiipine Commissi oi;i with William H. Taft at its head, subject to the supervision of the Secretary of War; and . meanwhile, during all those j'^ears of gradual betterment of the conditions prevailing on these Islands, there have been no discoveries of any radical error in the original form of government or anything to lessen the faith of the Filipino or American people in the promises of the United States Govern- ment. On the contrary there were so few points to be changed when the matter of the Philippine Government came before Congress for revision and enactment in detail that Congi-ess, after full deliberation and careful consideration, continued the whole question of the Philippine Government and its administra- tion in the hands of the Chief Executive of the United States?, whose original instructions arid decrees as well as other amenda- tory and incidental acts found necessary subsequently were not only approved in the main but continued in force with all the au- thority which combined governmental action could give them. Purpose of the Taft Commission. The general pirrpose of the Taft Commission as announced by President McKinley was "to continue and perfect the work of organizing and establishing civil government already com- menced by the military authorities" in the Philippines, subject in all respects to any laws which Congress might thereafter NON-CONTIGUOUS TEW Y— THE PHILIPPINES. 413 enact. And as a fundamental step in g'iving civil g-overiunent to the people of the Philippines, it was determined that there should be a separation of the execiitive, the legislative, and the judicial branches, and that the powers of these several brandies should be exercised by different persons. Accordingly, the leg- islative powers were conferred upon the Commission, the judicial powers were to be exercised by the courts, which themselves were to be established through legislative action of the Commission, and the authority to exercise the executive powers was con- tinued in the commander of the military forces of the United States, where in the beginning it had been placed in main- taining the occupancy of the Islands. The year following this arrangement of governmental power, in June, 1901, the President of the United States appointed lion. William H. Taft Civil Governor of "the Philippine Islands, and transferred from the JNIilitary Governor to him as President of the^Philippine Commission the authority to exercise the powers of the executive branch of the government in all the pacified provinces of the Islands, but continuing the authority of the Military Governor to exercise authority in those districts in which the insurrection continued to exist. On the 1st of September, 1901, a further step toward civil executive organization was made by the establishment of sep- arate executive departments to which members of the Commis- sion were assigned. The administrative affairs of the government through these newly instituted executive departments were ax)portioned among several newly organized Bureaus or officers in each Department, embracing all administrative duties pertaining to the various affairs of the Islands, such for example as Health, Quarantine and Marine Hospital Service, Forestry, Mining, Agriculture, Fisheries, Weather, Ethnology, Public Lands, Patents and Copy- rights, Post Offices, Telegraphs, Coast and Geodetic Surveys, Pub- lic Works and Public Buildings, Insular Constabulary, Prisons, Corporations, Immigration, Internal Revenue, Banks and Bank- ing, Coinage and Currency, Justice, Public Instruction, Public Charities, Public Libraries, Museums, Public' Records, Official Statistics, Public Printing, Architecture, etc., including in fact every detail of administrative government known in a civilized and self-governing community. It was in the same year that the President appointed three distinguished Filipinos as additional members of the Commis- sion; and on October 29, 1901, in order to relieve somewhat the great pressure of official duties devolving upon Civil Governor Taft, the President created the office of Vice-Governor and ap- pointed Hon. Luke E. AVright to that position. Mr. Wright sub-, seqviently became President of the Commission in 1903, suc- ceeding Mr. Taft, who had resigned to accept the position of Secretary of War. Self-Government in Mniiicipalities. Pursuant to the instructions of the President of the United States, the Commission by proper legislation made provisions for municipal government to be established throughout the Islands as quickly as conditions permitted. They also passed a general act for the organization of provincial governments in the Philippine Islands, A judicial system was created under which the several newly established courts assumed the exercise of judicial powers, and the insular constabulary and municipal, police were created and installed. A system of civil service was provided for and put into operation by due enactments, tog-ether with a system of account and audit, which were adopted and rigorously enforced. A system of education, too, was installed and forestry laws providing for the preservation and utilization of the public forests were adopted and enforced. In addition to all these careful provisions of good government, a wise and ex- tensive system of public improvements and repairs was adopted, and adequate means of securing revenue by the levy of duties and taxes were duly devised and put in force. So careful, thorough and complete were the various features of government formulated by the Philippine Commissioners, with due regard to the principles of Liberty, Equality and 414 NON-CVXTiaUOl'Si TEirY—THK I'll I IJ I'l'l \ HS. .lustioe i)rt'\ainnj> in the Inited States, that Congress in 19():i. aller eurefiil investif>-ation of all tliat had been done for the government of the lMuli|)|)ine Ishmds, pUiced the seal of oHi- cial h>ro> fiueiits Made in the PIiilii»itiiies. One thing, however, is sure. The honest and earnest pur- pose of the United States in the beginning of our dominion of the Philippine Islands as announced and set forth in every wni-d uttered oi- act done bv the lamented ^T'dCinley and his siic.essor, President Poosevelt, was the estal)lishment of and ' Miful adherence to a policy of gradual enlightenment and edv- 420 NON-CONTIGUOUS TEWJ—TEE PHILIPPINES. cation of the Filipinos, with a view to their gradual but steady tlevelopinent into a self-governing people. Under that policy, which has never wavered, the United States made quick ar- rangements for the participation of the Filipinos themselves in civil government, giving them the right to participate in the enactment of laws as well as their enforcement through the courts, and by the aid of local constabulary and police force composed of duly selected Filipinos. More than thi>., Ifood wagon roads were constructed between provinces and sec- tions of the Islands which previously had been almost un- traversable, and railroads, which had hardly been known there before, were, together with a system of telegraph lines, post- otfices, coastwise steamboat transportation facilities, and va- rious agricultural improvements, provided for and inaugurated in all directions. In addition to these industrial developments, watchful attention was directed to the methods and conditions of business in the Islands, and at the proper time provision was made for the establishment of banks for the safe deposit of money — a business blessing which the Filipinos had ue\('i- known of before. The Filipino people were also given a non-fluctuating coin and paper currency and, as set forth in detail in a preceding paragraph, a well-defined system of popular education was in- augurated, due provision being made for the education and train- ing of Filipino students to act as teachers In the Filipino schools. Among the most practical advantages secured for the Islands is the increase in postal facilities, which enables the people to communicate quickly and promptly with the remote parts of the Islands. In 1900 there were but nineteen post-offices, whereas according to the reports for the last year there were five hundred and five post-offices, and the postal employees had increased from one hundred and thirteen to one thousand and ninety-one, while the receipts from the sale of stamps had jumped from 288,187.36 pesos to 607,233.47 pesos. To accomplish this gratifying result a system was devised in which mail sub- sidies were granted to commercial lines on condition that good service at reasonable rates of transportation should be maintained upon safe and commodious steamers. The Govern- ment vessels which had ])reviously been purchased in order to promote intercourse between the Islands are now used on out- lying routes only where commercial lines will not take up the traffic, but of course are used in connection with the com- mercial lines; and in this way continuous mail routes are being extended and the marine commerce communication be- tween the Islands is made to increase and to prosper. By the consent of the Secretary of War, and on the recommendation of the Commanding General of the Philippines and the agree- ment of the civil government there, all the telegraph lines in the Islands have now been transferred to the Post-office De- partment of the Civil Government of the Philippines. These telegraph lines reach into the remotest provinces as well as to all of the principal islands of the lai-ge Archipelago. A JVotuble Business Benefit. One of the most notable benefits conferred upon the Fili- pino people is the postal savings bank, which has proved to be a most advantageous institution. At first this bank was patronized by more Americans than Filipinos, but the Fili- pinos are now showing their appreciation of it by their recently reported deposits, amounting to over a million pesos. This bank, which was established by the Philippine Commission in May, 1906, allows any person over six years of age residing in the Philippine Islands and not under legal disability to open an account. Before its establishment there was abso- lutely no secure way for the keeping of money by the people, many of whom had been in the habit of purchasing postal notes to be retained in their possession indefinitely. Thus the Filipinos had little opportunity to make investments of their savings, or to make them secure in any manner, and least of all in a manner to yield them any income. Tne postal savings NON-CONTICWOU;^ TEWY—THE PHILIPPINES. 421 banks allow the people to deposit small sums of money on ■svhicli tliey receive interest at the rate of two and one-half per cent per annum, to be increased later if the bank shows that it can be successfully done without loss to the Govern- ment. Another very essential institution needed by the people, and whicli, if the plans now making- are executed, will soon be provided for, is the proposed Agricultural Bank, authorized by the Act of Congress passed last year. As stated recently by Secretary Taft in his special report on the Philippines to the President : "One of the crying needs of the Philippines is capital, and this whether it be for the development of railroads, wagon roads, manufactures, or in the promotion of agriculture. The usurious interest which has to be paid by the farmers is so high as to leave very little for his profit and maintenance and ever since we entered the islands the cry for an agricultural bank which would lend money for a reasonable interest, say, 10 per cent, has been urged upon the Commission. Last year Congress authorized the government to guarantee the interest of 4 per cent on a certain amount of capital invested in such a bank, but up to this time no one has embraced the opportunity thus offered to undertake the conduct and operation of a bank, although negotiations are pending looking to such a result. It is now proposed that the government shall undertake this instead of a private individual." Railroads and Dirt Roads. Aside from all the other beneficial improvements in the T'hilippine Islands, however, one of the most valued, from a ccnmiercial as well as a moral point of view, is the development of the railroad sj stem there. When the United States captured the Philippine Islands in May, 1898, there were in operation therein only one hundred and twenty miles of railroad, ex- tending- from Manila northward to Dagupan. There was later constructed on the authority of the Philippine Commission enough additional trackage to bring the total mileage up to two hundred miles, all being in the Island of Luzon. Under the en- abling acts of Congress of July 1, 1902, and February 6, 1905, fur- ther concessionary grants w^ere made by the Philippine Ct)mmis- sion for four hundred and twenty-eight additional miles of rail- road in Luzon, and two hundred and ninety-five miles in the Is- lands of Panay, Cebu, and Negros. Engineers representing the concessionaries immediately left the United States to make the preliminary surveys and prepare specifications and maps to be submitted to the Governor-General for approval of final rout'^s. These final routes are to be substantially in accordance with those selected by the Government, which have been highlv com- mended by the engineers both of the Government and the con- cessionaries, one of them stating that the same mileage could not have been better selected to produce revenue or to serve the Government's ends of reaching the large interior towns ind rich uncultivated lands and of furnishing an outlet for the present and prospective produce of the Islands. All of the lines will run through rich country, capable of producing large quantities of hemp, rice, sugar, tobacco, cabinet woods, and minerals. The extension of railroads in the Philippines will correct the very deplorable conditions which have heretofore prevailed on these Islands. - Until 1892 there was no commercial rail- road whatever oA the Islands, but at that time under a grant made in 1887, the Manila and Dagupan Eailroad began operations over a line one hundred and twoard and the majority of the Assembly of the Presidents and Counsellors of the municipalities of any province, five days' work upon the highways by every able-bodied man of the province should be rendered every year, or pay- ment of an equivalent of five days' wages in cash. It is be- lieved that these Assemblies will see their way to accept this law, and should they do so there may eventually be established throughout the Archipelago what is known as the Caminero sys- tem, which consists in dividing the roads into sections of such length as can be cared for by the continuous work of one man ; those wishing to work out their tax may deposit road material at given depositories along the road or give their service to new construction or reconstruction where the nature of the work is such that gangs become necessary. The money re- ceived from those not wishing to work is used to support the caminero or road worker. By this system definite responsibility for deterioration of any part of the road can readily be placed. and it has the further advantage of reducing the expenses of repairs, which in the tropics, where the rainfall is so abundant, amounts to considerable within the year. The Friar Lands. The "Friar lands" problem, one of the most fruitful sources of unrest in the whole Philippine situation, was finally disposed of by purchasing some four hundred and ten thousand acres of land at about seven millions of dollars. According to Act No. 1,120 of the Philippine Commission, the lands thus pur- chased have been placed in the control of the Bureau of Public Lands, with directions to proceed as rapidly as possible to their sub-division and sale to the occupants thereof upon ten years' time and at first cost to the Government. Though the exe- cution of this duty will involve the expenditure of much time and labor, as well as some practical difficulties, still there is a general disposition on the part of the former tenants of the NON-CONTIGUOUS TER'Y—TEE PHILIPPINEB. 428 religious orders, who are the present occupants of the land, to accept the liberal terms ottered by the Government. The Governor-General of the Philippines in his report on this sub- ject says : "Whether any ultimate loss will be incurred in these large transactions can only be a matter of conjecture; but how- ever it may be, it must be a siTbject of real congratulation that what threatened to become a cancerous sore on the bod^' politic has been extirpated," I'resent ComlitioitH as to Peace and Order. All these improved conditions in the Pnili]>pines have nat- urally tended to the enlightenment and elevation of the people, whose heightening self-pride and increasing interest in the gov- ernmental att'airs have undoubtedy exercised upon them a benef- icent influence. At any rate, peace now prevails in the Philip- pine islands to a gi'eater extent than ever before in their history. True, there have been disturbances in three of the Filipino prov- inces as well as in the Moro province, but none of these had for its object the expulsion of the sovereignty of the United States, which now seems to be recognized by the Filipino people as a fixed government over the Archipelago. In Cavite, which is regarded as the "Mother of Ladrones," as the people them- selves call it. has ever been the hotbed of Ladronism or gang robbei-s in the Philippine Islands; and therefore disturl^ances in that neighborhood assume the nature of brigandage rather than of insurrection against the civil governmcmt. .The trouble in Samar grew out of abuses in the way of extortion prac- ticed upon their ignoi-ant countrymen by prominent natives who as agents for large export houses in Manila force them to sell their hemp at a nominal valuation and then themselves turn it in to the business houses in Manila at the market prices, putting the difference in their own pockets. Some unscru- pulous outlaws in the country took advantage of the excited con- dition of the people caused by these commercial outrages, or- ganized them into bands, -and used them to reven<.^e themselves upon their oppressors and for purposes of reprisal, which have been set forth in detailed reports from the Philippine Commis- sion. The Mount Dajo affair was a culminating incident of six months of peaceful effort to induce the band of Malay pirates to desist from raids upon a peaceful community. These eft'orts were interpreted as cowardice and the outlaws finally sent a challenge to the Government forces to come out and fight them. In the encounter that ensued the troops were assisted by the respectable ^Nforo element of the Islands where the disturbances had occurred. , The disturbances in the INLoi'o provinces and on the Island of Luzon were promptly overcome, while that on the Island of Samar continued to manifest itself from time to time. Samar, by the way, was an unknown territory which the Spaniards during their three hundred years of occupation never attempted to explore? — the interior of the Island of Samar being a mere tropical jungle and mountain fastness, inhabited by semi-bar- barou^s tribes, the haven of the criminal refugees froiii surround- ing islands, and all in all a nest of iniquity too bad even for Spain to handle. The work of the Americans there was that of pioneers, and with the iisual result ; but it is worthy of note that the law-abiding inhabitants of the Island have organized volunteers to assist the constabulary in putting an end to fur- ther disturbances there, and the cooperation between the civil and the military authorities is complete, so that little trouble may be expected there hereafter. While of course there must be expected from time to time throughout the Archipelago some minor disturbances as occur even in the most highly civilized communities, still it is safe to assume that there will not be any organized hostile oper- ations on any considerable scale hereafter. The best assurance of this assumption is the noticeable manner in vvhich the people throughout the entire Archi])elago have settled down to peace- ful occupations, tending their fields and plying their trades with a whole-souled earnestness never before observed. There 424 NON'CONTIOUOUS TEWY—TEE PHILIPPINES. nve of course also likely to arise times of depression in business ;itfairs and instances of great disco uragemeni from the failure of crops in certain sections of the Islands — conditions and ex- periences which ai-e not unusual in other parts of the world where the best of governments prevail — but the reports re- ceived from the provincial governors, all of whom are natives, indicate the generally increased prosperity and contentment of 1 he people, with constantly increasing faith and kindly goodwilj towards the American government. Not long ago, March 3, 1903, it will be remembered Congress appropriated three mil- lion dollars in United States currency for the alleviation of dis- tress throughout the Philippine Archipelago caused from war, loss of cattle from plag\ie, etc. This money was placed at the disposal of the Philippine Commission and by it expended through appropriation acts of the Commission for the relief of the communities of the Islands that were suffering most acutely. Many of the provinces of the Islands where the bene- fits of this relief fund were felt have, according to the eloquent reports of their governors, shown the good work it has done. One provincial governor (Batangas, in 1904), speaking of the feeling of the people of his province for this generous aid, said : "With an indomitable and invincible spirit, and with head erect, proud of their self-reliance during this straggle against the cruelties of nature, they only bend the head to kiss and bless the generous hand of America and render to it unconditional adhesion and infinite acknowledgment for the splendid gifts that it has showered upon the people in days of sorrow, misery and hunger." When the United States assumed control of the Filipinos, they were in a chaotic condition of insurrection and intestinal turmoil. They were, as a class, steeped in ignorance, and never had been accustomed to self-government. Now we find them happier, more comfortable, more prosperous, certainly more Ijeaceful and in every way more interested in their lives than ever before — all living under governments conducted in the municipalities and provinces by their own chosen governing offi- cials. We see a judicial system in which a large number of their own people hold place as judges, and we find a leg- islative body charged with the duty of enacting laws for their government — a legislative "body pomposed in the lower house entirely of their own people, while in the upper house of that legislative body the number of native members of the Com- mission, which corresponds to the Senate in this country, is within one of equaling those appointed by the United States. Few governments on earth to-day are based upon more lib- eral principles, which contemplate not only popular .suffrage, but every other feature of a Republican form of government, than which none better has ever yet been suggested either by friends or foes. It would seem only fit and proper to conclude this paper on the Philippine Islands by quoting at length from the Presi- dent's recent messag'e to the Senate and House of. Represent- atives, which constitutes an interesting resume of the question and reads as follows : "To the Senate and House of Representatives : "I transmit herewith the report of Secretary Taft upon his recent trip to the Philippines. I heartily concur in the recommendations he malces, and I call especial attention to the adnvirable work of Governor Smith and his associates. It is a subject for just national gratification that such a report as this can be made. No great civilized power has ever managed with such wisdom and disinterestedness the affairs of a people committed by the accident of war to its hands. If we had followed the advice of the mj.sguided persons who wished us to turn the islands loose and let them suffer whatever fate might befall them, they would have already passed through a period of complete and bloody chaos, and would now undoubtedly be the possession of some other power which there is every reason to believe would not have done as, we have done ; that is, would not have striven to teach them how to govern themselves or to have developed them, as we have developed them, primarily in their own interests. Save only our attitude toward Cuba, I question whether there is a brighter page in the annals of international dealing between the strong and the weak than the page which tells of our doings in the Philippines. I call especial attention to the admirably clear showing mside by Secretary Taft of the fact that it woukl have been equally ruii^ous if we had yielded to the desires of those who wished us to go faster in the direction of giving the Filipinos self-government, and if we had followed NON-CONTiaVOUi^ TER'Y— HAWAIIAN IMLANDS. 485 the policy advocated by others, who desired us simply to rul« the islands without any thought at all of fitting them for self-government. Th« islanders have made real advances in a hopeful direction, and they have opened well with the new Philippine Assembly ; they have yet "a long way to travel before they will be fit for complete self-government, and for deciding, as it will then be their duty to do, whether this self-govern- ment shall be accompanied by complete independence. It will probably be a generation, it may even be longer, before this point is reached ; but it is most gratifying that such substantial progre.ss toward this as a g-^al has already been accomplished. We desire that it be reached at as eaiiy a date as possible for the sake of the Filipinos and for our own Rake. But improperly to endeavor to hurry the time will probably mean that th* goal will not be attained at all. "(Signed) THEODORE ROOSSVBLT. "The White House, "January 27, 1908." THE HAWAIIAN ISLANDS. The Hawaiian Islands are no longer a. political issue. While a Democratic President and Secretary of State planned for their annexation more than a half century ago, while they many years later applied for admission and raised the American flag, and while that American flag was hauled down by the orders of an- other Democratic President, carried out by a former Member of Congress, they have since that time come permanently under the American flag, becoming a territory of the United States with a delegate in Congress, and the relation of those islands to the United States is no longer a political issue. Yet the effect of annexation upon the prosperity of the people and the prosperity ®f our own trade with them is interesting and worthy of record. The growth of prosperity in the Hawaiian Islands began with that closeness of relationship brought about by the reciprocity treaty with the United States, which resulted in annexation, and perfect freedom of interchange between those islands, a tropical area with tropical products to sell, and the United States, a tem- perate zone area desiring tropical products, and having temper- ate zone products to exchange therefor. The production of sugar, which was formerly almost the sole product, grew from 25 mil- lion pounds at the date of the reciprocity treaty to 500 million pounds in the year before annexation ; but on the assurance which annexation furnished that the markets of the United States would remain permanently open to this product, the sugar production of the Hawaiian Islands has in the short period since annexation grown to over 800 million pounds, having thus in- creased over one-half since 1899. The value of the sugar product of the Hawaiian Islands during the decade prior to annexation ranged from 8 to 16 million dollars per annum. In 1899 it crossed for the first time the 20 million dollar line. Since an- nexation the value has ranged from 25 to 35 million dollars per annum. Practically all of this has been sent to the United States, and in exchange the islands have taken from the United States everything which they import, except certain products of China and Japan especiallj'- required by their Chinese and Japa- nese population, and that class of fertilizers for the plantations which can only be obtained from the nitrate beds of Chile. That the annexation of the Islands and the permanency of trade rela- tions therewith have resulted advantageously to the commerce of the United States is quite apparent from the fact that the value of our shipments to the Hawaiian Islands, which never touched the 10 million dollar line prior to 1900, has been continuously above that line since annexation, and in 1907 was practically 15 million dollars, and in the fiscal year 1908 seems likely to exceed that sum. The total value of merchandise sent from the United States to the Haw:aiian Islands in the eight years since annexa- tion aggregates nearly 100 million dollars, while in the eight years immediately preceding annexation the value of o\ir ship- ments to those islands was but 58 millions, having thus practi- cally doubled as compared with the corresponding term of years immediately prior to annexation. Meantime conditions in the islands have been greatly im- proved. Large investments of capital from the United States 426 NON'tfONTIGUOUS TER'T— PORTO RICO. were made ininiediately following- the annexatioji, which thus as- sured permanency of government, and permanency of relations with the United States; large additions were made to the popula- tion, and new eiforts were made towards a diversification of in- dustries. The l)ei)artment of Agriculture established an experi- ment station in the Islands, and careful studies have been made of the producing power of the various sections with reference to various tropical and subtropical products, with the purpose of diversifying as much as possible the industries and jjroducts of the islands, and thus increasing the earning power of the people, and especially of developing oi)portnnities by which persons of small capital or those desiring to build up prosperous lines of business of their own and own their own homes may be able to do so much more readily than in the pi-oduction of sugar, wliich requires large estates and large investments. The Governor of the Islands, Hon. H. W. Frear, in his inaugu- ral address in 1907, referring to conditions since annexation, said : "Seven brief years, and yet what grand results if we but pause to view them ; years, it is true largely of adjustment to new conditions, but equally years of advancement. The entire body of Hawaiian statute laws has been put into compact and harmonious form and added to by numerous laws, remedial and constructive. * * Local government has been established without the baneful results predicted. * * Recovery has been had from a calamitous pestilence attended by extensive conflagrations in the capital ; scientific' investigation has been begun for the ultimate eradication of the most dreaded disease ; the public health has never been better safeguarded. * * The schools have grown in quality of work as well as in number of pupils. Progress has been made in the application of advanced criminological principles, especially as applied to juvenile delinquents. Evidences of moral and religious quickening are apparent on every hand. Much has been ac- complished in the con.«truction of public works and preservation of forests, settlement of public lands. Introduction of labor, of city-making material, the establishment of diversified industries, the execution of irrigation proj- ects, and utilization of water power. * * Even before annexation the con- tract labor system had largely disappeared, a system possessing in some degree the principle of profit-sharing has come into general practice that increases returns to both planter and laborer. The planters have begun ex- tensively to provide the laborers with homes of sufficient size for residence and gardening purposes ; a beginning has been made toward co-operation in the establiahment of homesteads of sufficient size to support families inde- pendently." PORTO RICO. On the 18th of October of this year, Porto Itico completes the tenth anniversary of its exi.stence within the jurisdiction of the United States. Of this period a year and a half was under mili- tary government and eight years and a half under a civil govern- ment established by the Act of Congress of April 12, 1900. The changes for the better in this period of ten years have been remarkable, and the improvement in education, sanitation, commerce, and the administration of justice has demonstrated the wisdom and far-seeing ability of the Repiiblican party. These improvements have not been made without overcoming serious obstacles. In less than a year after the Americans assumed con- trol, the progress of the island received the worst setback known in its history. On August 8. 1899, Porto Kico was visited by the most severe cyclone that it has ever experienced, as a result of which thousands of lives were lost and millions of dollars worth of property destroyed. Not only was the coffee crop for that year totally lost, but a very large percentage of the coffee trees themselves were completely ruined. In many places the soil on the sides of the moimtains was washed away, so that where fertile plantations once existed, but bai-e rocks remained. The serious nature of this disaster can be understood only when it is realized that the value of coffee alone exported during the last years of the Spanish Government exceeded the combined value of all the other exports. The success of the United States, thei-e- fore, has been all the more remarkable when one considers the inauspicious beginning of the administration. Free trade between the I'nited States and Porto Tlico was established on July 25, 1901. All duties collected on goods be- tween the United States and Porto Rico prior to this date were subsequently appropriated by Congress for the con.stniction of schools, roads, and other public improvements on the island. NON-CONTIGUOUS TER'Y— PORTO RICO. 427 The value of the ex[)ort.s and imports under the Spanish gov- ernment reached its high-water mark- in 1896. w^ien the total trade of the island amounted approximately to the equivalent of $22,000,000 United States currency. Under American occupation there has been a steady increase in the trade of Porto Kico, which, for the fiscal year ending- June HO, 1907, amounted to $56,263,472, The value of the exports and imports for that year cac)i amounted to more than the total trade of the island in any one year under the Sj)anish government. In the same year more than 204,000 tons of sugar, with a total value of $14,770,000, were exported from Porto IJico. as compared with the record under Spain, in 1884, of 109.000 tons. The amount of sugar now pro- duced io more than 320 per cent, greater than it was in 1897, the last year of Spanish rule. The value of tobacco exported in the twelve months ending June 30, 1907, amounted to approximately $5,500,000. The year befoi'e the United States assiyned control (one of the most prosperous years under the Spanish Govern- ment) the value of tobacco exported was approximately $700,000. showing an increase of 700 per cent, in the ten years of American administration. During the past year more cigars were im- ported into the United States from Porto Rico than from Cuba, The follow'ing brief table shows the increase in the trade of the island since the issuance of the last campaign book in 1904 : Fiscal Year. 190 L. 1905- 190G_. 1907- In)i)orts. P:xports. Total exports and imports. $13,169,029 16,536,259 21,827,605 29,267,172 $16,265,903 18, 70 J, 565 23,257,530 26,996,300 $29,431,9.32 35,215,824 45,085,195 53,263,472 It will be noted that the total trade in four years has nearly doubled. In education also there has been a very great advance. More than 70,000 pupils are enrolled in the public schools, and the expenses for educational purposes now aggregate more than $1,000,000 annually, 1.200 school teachers are employed, and great effort is being made to extend oppoi'tunities for education in the outlying rural districts, "When the xVmericans took chai'ge of the island, they found but one school building owned by the government. There are now over 80 buildings completed or imder construction, exclusively for school purposes, including a normal school in the city of San Juan and high schools in the important cities. In addition to this number, over six hundred buildings are rented for school purposes. Education is given in English and Spanish and the children ai'e rapidly acquiring a knowledge of the former language. Much attention has been paid to the question of sanitation, and in the past ten years thousands of people have been cured of uncinariasis, more commonly known as the hookworm disease. Prior to American occupation this disease was generally attrib- uted to malnutrition. In the early da,ys of American occupation. Ai-my surgeons attendant upon the natives suffering from the cyclone, discovered that this sickness was caused by a parasitic worm, and was curable if taken in time. A Commission was created in the winter of 1904, for the study and ti-eatment of this disease. Free stations for the care of patients were es- tablished in central locations thronghoTit the island, and a cam- paign of education as to the prevention and cure of the disease was at once commenced. The Commission estimated that 90 per cent of the rural population of Porto Rico was infected with this form of anemia, which gradually sapped the strength of the patient, freq.uently resulting in death. In the past four years over 150,000 natives, or one-seventh of the population, have been treated at the expense of the government. The results have been most satisfactory, and many families, disabled by the disease, have been returned to the number of w^age-earners, Hopes are enter- tained that imcinaria-;is will be eradicated from the island by the efforts of the administration. This result would work a great change in the social and economical status of the inhabitants of the interior. 428 NON-CONTiaUOVS TEIt'Y— PORTO RICO. In order to afford opportunities to the farmers of the interior to bring their produce' to the seacoast for shipment to the markets of the United States and elsewhere, the government has bent its energies to the construction of an extensive system of roads. In the jJast ten years twice as many miles of macadam roads have been constructed by the American government as were built in the 400 years of Spanish control. This policy has opened up lands in the interior which ten years ago were prac- tically valueless. It is not too much to" say that in certain sec- tions of the island the value of land has increased 1,000 per cent. In order to carry on this work further, the insular government, in the winter of 1907, disposed of government bonds to the amount of $1,000,000, the proceeds to be devoted exclusively to the building of roads and bridges. This is the first and only debt of the insular government since the American occupation. The splendid financial condition and the economic prosperity of the i.sland was so well recogni?red, that at a time of considerable dullness in the bond market, when many excellent municipal bonds were not bHnging par, these 4 per cent twenty-year serial bonds sold at an average of over 107, the longer term series bringing over 113. In addition to the roads, communication has been greatly in- creased by railroad construction, the mileage of which is at present approximately double what it was ten years ago. The insular government operates the telegraph lines, the num- ber of offices of which have increased since 1904 from 39 to 128. Practically all of the operators are Porto Ricans, who have been carefully trained in this work under the supervision of the government. A number of charitable institutions have been established since American occupation, and the Porto Ricans, always a phil- anthropic people, have heartily supported the efforts of the gov- ernment on these lines. In the past few years a blind asylum has been opened for the care of the indigent blind, the govern- ment insane asylum has been enlarged and greatly improved and a reform school for boys has been commenced. This latter in- stitution is exceedingly important, as it will remove yoiithful violators of the law^ from the corrupting influence of hardened criminals. An important step taken by the Congress of the United States some years ago A\as the establishment of the Porto Rico Pro- visional Regiment of Infantry. Organized in 1899, the enlisted and non-commissioned force of the regiment, consisting of two battalions, is composed exclusively of Porto Ricans. In addition, many of the junior officers are natives of the island, and the force is supported entirely by United States funds. Prior to the American occupation no such regiment was found in Porto Rico. The military forces which Spain maintained in the island were composed of Spaniards and paid from Porto Rican funds. In this way not only does the United States put into circulation annually a large sum but it provides an institution which gives most excellent moral, mental, and physical training to the natives of the island. On account of the physical improvement, due to regular exercise and good food, the habits of discipline and knowledge of the English language, acquired during the terms of enlistment, former members of the regiment find their serv- ices in great demand in various important positions throughout the island. Public order is excellent, and is maintained by a force of some 800 police, composed entirely of Porto Ricans, with the ex- ception of the chief and assistant chief. Financially, the United States government has done much for Porto Rico. The customs revenues on foreign articles impoi-ted into the island are paid into the insular treasury. The internal revenue laws of the United States are not extended to Porto Rico, but the local legislature is vested with the power of enact- ing insular internal revenue laws, and the proceeds from these taxes go to swell the revenues of the island, and are not deposited in the United States treasury. Harbor improvements in the port of San Juan, costing more than three-quarters of a million dollars, have been authorized and begun, and a public building, to cost $300,000, is under pro- NON-CONTIGUOUS TER'Y— PORTO RICO. 429 American capital is being- invested in various enterprises, the most important of which are railroads, the construction of sugar centrals, or factories for the extraction of sugar from the cane, electric lighting plants, trolley lines, and in various agricultural enterprise's, the most recent and successful of which is the cul- tivation of citrus fruits and pineapples. There has been adopted an excellent system of laws based on codes in force in various parts of the United States and made adaptable to conditions existing in the island. Among the most important are codes of criminal and civil procedure, and a civil and criminal code, which do away with many provisions of the former laws repugnant to the ideas of American jurisprudence. The object of the Republican party in conducting affairs in Porto Rico has been twofold : first to increase the prosperity of the island and to enforce impartial justice, giving equal opportu- nity to all for advancement ; and second, to educate the natives of the island to the standards and principles of American adminis- tration, so that increased self-government may be g-ranted them as soon as they show their capacity for it. The administration not only has for its purpose the establishment of good govern- ment, but it endeavors to educate the people so that they can take more and more part in that government. Great steps in this direction have already been made. The 66 municipalities of the island have complete autonomy. The officials of the municipali- ties are elected by popular vote, and have full power to enact ordinances with regard to municipal affairs. In the judicial branch, the Supreme Court is composed of 3 Porto Ricans and 2 Americans. The judges and district attor- neys of the district or trial courts are composed of 13 Porto Ricans and 3 Americans, while all the municipal judges and jus- tices of the peace are Porto Ricans. The legislative assembly is made up of two hoiises, the lower house or Houjfe of Delegates, consisting of 35 members, or .5 from each of the 7 districts of the island, are elected by popular vote, and are all Porto Ricans. The upper house, or Executive Council, consists of 11 members ap- pointed by the President, "at least five of whom shall be native inhabitants of Porto Rico." It will therefore be seen that no act can be passed except with the approval of the lower House of Delegates, composed entirely of Porto Ricans and elected by popiilar vote. The number of Americans in positions supported by insular revenues is comparatively small, being less than one-ninth of the total number of employees. Should the municipal employees bcj included in this number, the percentage of Americans would of course be very much smaller. It will be seen therefore that the Porto Ricans have a very important share in the government. Xever before in the history of the island have they been allowed such a large and influential part in the administration as they have at the present time. The wisdom of the policy of the Republican party during the past 10 years, as directed by President McKinley aiid President Roosevelt, has been fully demonstrated, and has more than jiisti- fied the expectations of even its warmest friends. It is safe to say that in no other tropical country in the world has there ever been, in so short a time, such rapid and marked increase in sani- tation, oi-der. prosperity and education. THE PANAMA CANAL. From Christopher Columbus to Theolore Roosevelt, a period of 400 years, pian sought in vain for a means of transferring ocean vessels, carrying men and merchandise across that narrow strip of land which separates the waters of the Atlantic and Pacific oceans, known as the Isthmus of Panama. Scores of surveys were made; thousands of lives were lost; millions of dollars expended in futile attempts, and it remained for the Government of the United States, under a Republican President and Secretary of War. to take the preliminary steps ad with the assent of Congress to actually enter upon the work of 430 THE PANAMA CANAL. constructinpf a ship canal. In doln^ this they have laid the phms so broadly and carefully that the country and the world nuiy expt'c'L to see a completetl modern canal, caiJable of floating the hirgest of vessels, in operation by 1915, and to see it con- structed at a minimum cost and, what is more important, ai a minimum loss of life. It was the first care of President Roose- velt and Secretary Taft in developing- i)Ians for this work to inavigiirate a system by which the appalling loss of lilV which had characterized all former undertakings on the Isthmus should be averted, and in this they have been eminently suc- cessful. The state of health of the thousands of workmen and officials employed on the canal, and the success of the efforts to prevent tropical diseases have been the marvel of the medi- cal and scientific world, while the speed at which the work is being pushed forward under modern methods is a matter of surprise to the foreign observers and of pride to every Ameri- can. The canal is no longer an issue. No American, whatever his party, raises his voice against the policy of the consti'uction and ownership and control of this American Interoceanic Canal by the Government of the United States. The feeble i:rotests which were uttered against the prompt recognition of the lie- public of Panama by this Government were heard no ukhv when a score of the leading countries of the world hastened to follow our action, and when the issue \vas ]ii'esente 1 to the Democratic party in the ratification by the Senate of the treaty with Panama in Februar^^ 1904, one-half of the Democrats vot-' ing cast their votes 'with the Republicans for ratification. Since that time the question has been no longer a party iss e, and Democrats have vied with Republicans in their expressions of gratification that the dirt is actually flying. Men who have been for years prominent leaders in the Democratic party are devoting their time and energies on the Isthmus and at home to up- liolding the hands of the President and the Secretary of War, to \v4iom the details of this great work have been intrusted. Record of tlie Worlc. Tt remains therefore to present at this time merely the record of the work performed in this great enterprise, which every American, irrespective of party, is proud to call that of his country. Under the provisions of an Act of Congress which had been approved March 3, 1899, the President appointed a commission to examine and report upon the diflferent practicable routes for an Isthmian canal, and this commission finally reported in January, 1902, in favor of the Panama route, although in No- vember, 1901, it had reported in favor of the Nicaragua route. It changed its recommendation, it seemed, in favor of the Panama route after the French canal company had agreed to dispose of all its rights, property, and unfinished work on the Isthmus for forty millions of dollars. Section 7 of the Spooner Act (June 28, 1902) provided for a commission of seven members, at least four of whom shoiild be engineers, and at least one an officer of the army imd one an officer of the navy. The first commission was appointed under this Act on March 8, 1904, with Admiral Walker, of the navy, as Chairman, and General George W. Davis, as the army member, and in addition the following five civilians: William Barclay Parsons, C. E. ; William H. Burr. C. E. ; Benjamin M. Harrod, C. E. ; Carl Ewald Grunsky, C. E., and Mr. .Frank J. Hecker. On May 8, 1904, the Commission passed a resolution designat- ing General Davis as the representative of the Commission on the Isthmus, and under the provisions of a letter addressed by the President to the Secretary of War on May 9, 1904. General Davis was designated Governor of the Isthmian Canal Zone, and was the only member of the Commission who was to be regidarly stationed there. In this letter, which might be probabl,y considered an executive order, the President put the work of the Commission under the supervision of the Secretary of War. THE PA-NAM A CANAL. 431 The Act of Congress approved April 23, 1904, provided that until the expiration of the Fifty-eighth Congress all the mili- tary, civil, and judicial powers, as well as the power to make all rules and regulations necessary- for the government of the Canal Zone, and all the rights, powers, and authority gi-anted to the United States by the terms of the treaty between the United States and the llepublic of Panama, should be vested in such person or persons and exercised in such manner as the President should direct. In the letter of .^ay 9, 1934, above men- tioned, the President directed that these powers should be vested in and exercised by the Canal Commission until the close of the Fifty-eighth Congress. Under this authoritj^ the Commission enacted twenty-four laws, covering a wide range of subjects, but dealing- ])rincipally with the org-anization of the govern- ment of the Zo7ie and the judiciai'y. including- a criminal code. In May, 1904, Lieutenant Mark Brooke. Corps of E gineers, U. S. A., representing the United States on the Isthmus of Panama, was instructed by the Attorney General of th United States to take possession of all the canal properties there. This transfer of property having been made, instructions were at once given Lieuteiuint Brooke by the Isthmian Canal Commission to continue operations with the same force of employes and laborers as were engaged on the work under the French Canal Company at that time. At this time no excavation was being done except in the Culebra Division, and the total excavation from May to December, 1904, amounted in round figures to 243,000 cubic yards. In the meantime, the Walker Commission was occup ed with various problems concerning sanitation and government of the Canal Zone, and the acquiring of necessary plant for piosecut- ing the work. Colonel W. C. Gorgas, U. S. A., was appointed Chief Sanitary OflRcer, and immediately organized a most effi- cient system of sanitation. The Commission was given control over the Panama Eail- road, all the commissioners being made directors, it being re- cognized that the railroad must be an adjunct to the construc- tion of the canal, and at the same time fulfilling the purpose for which it was constructed as a route of commerce. Mr. John F. Wallace was engaged as Chief Eiigineer on June 1, 1904. Nearly all matters of importance came before the Walker Commission as a body, there then being no separate and inde- pendent heads of departments as provided in the present organi- zation, except that the Chief Engineer and the Governor of the Zone had a certain limited authority. The Walker Commission was succeeded by the Shonts Commission on April 1, 1905, con- sisting of four civilians, two of whom were engineers, tw o army engineers, and one civil engineer of the navy. Mr. Wallace was continued as Chief Engineer and made one of the Commissioners. The personnel of this Commission was as follows : T. P. Shonts, Chairman ; Charles E. Magoon, Governor of the Canal Zone ; John F. Wallace, Chief Engineer ; Rear Admiral M. T. Enxiicott, U. S. Navy; Brig. Gen. Peter C. ITaiiis. [I. S. Army; Col. O. H. Ernst, U. S. Army, and Benjamin M. Harrod. Under the provisions of an executive order of the President, dated April 1, 1905, three distinct departments were created, namely: (1) The Chairman, in charge of fiscal affairs, pur- chase and delivery of materials aiul supplies, accourts and auditing ; the commercial operations in the United States of the Panama Railroad and Stean.ship Lines, and of the general concerns of the Commission, subject to the supervision ancl direction of the Secretary of War ; (2) The Governor of the Canal Zone, in charge of administration of law and of all matters of sanitation, and required to reside on the Isthmus; (3) The Chief "Engineer, in charge of actual work of construc- tion on the Isthmus, having custody of supplies and plant there; charged with the practical operation of the railroad on the Isthmus, with special view to its utilization in caial construc- tion; also required to reside on the Isthmus. The other engi- neer members of the Commission constituted an advisory engi- neering committee and their headq -arters were in Washington. Tlie order provided for the appointment by the Commission of an 432 THE PANAMA CANAL. Executive Committee of three members to act in place of the Commission during- intei'vals between meeting-s, and the three heads of the Departments above named constituted this Com- mittee. These heads of Departments were authorized to ap- point all oflicers and employes in their respective Departments, subject to the approval of the Commission. Mr. Wallace resig"ned on June 28, 1905, and was succeeded by Mr. John F. Stevens as Chief Engineer, although the latter ^\.l not made a Commissioner until June 30, 1906. Lock Canal Adoiited. Chief Engineer Wallace, in a report dated February 1, 1905, recommended that a sea-level canal be constructed, and shortly thereafter a commitee of three of the engineer members of tiu- Commission, namely, Messrs. Burr, Parsons, and Davis, also recommended the adoption by the Commission of a sea-leve! plan. Up to this time it had been assunied that a lock canal would be constructed substantially in accordance with the plan recommended by the former Commission in 1901. The reports of Chief Engineer Wallace and the Engineering Committee, above referred to, favoring a sea-level canal created doubt as to the best type of canal to be constructed, and in the President's ofder of April 1, 1905, appointing the Shonts Coiii- mission, he declared his intention to appoint a Board of Con-* suiting Engineers to advise on the important engineering ques- tions arising in the selection of the best plan for the construc- tion of the canal. This Board was appointed by the President by an executive order dated June 24, 1905, and consistel of the following eight American and five foreign engineers : General George W. Davis, Chairman; Mr. William Barclay Parsons; Mr. William H. Burr ; Mr. Alfred Noble ; Gen. Henry L. Abbot ; Mr. Frederic P. Stearns ; Mr. Joseph Ripley ; Mr. Isham Randolph, Americans; and Mr. William H. Hunter, British; Mr. Ad. Guerard, French ; Mr. Eugene Tincauzer, German ; Mr. J. W. Welcker, Dutch, and Mr. E. Quellennec, of the Suez Canal Staff. This Board divided in its recommendations, eight members, in- cluding the five foreigners, and General Davis, Mr. Parsons and Mr. Burr, advocating a sea-level canal with a minimum width of 150 feet ; the other five members recommended a lock canal with an 85-foot summit level and three locks at Gatun on the Atlantic side, and one at Pedro Miguel, and two near the coast on the Pacific side. On June 29, 1906, Congress passed an Act directing that the Canal be constructed "of the general type proposed by the minority of the Board of Consulting Engineers," the President, the Secretary of War, and the majority of the Commission having united in recommending this type. The delay in reaching a decision as to the type of canal retarded somewhat the progress of the work, but as soon as the question was definitely decided the work was prosecuted with gradually increasing vigor. Description of the Canal. The canal will have a sum^mit elevation of 85 feet above the sea, to be reached by a flight of three locks, located at (iatun. on the Atlantic side, and by a flight of two locks at Miraflores, and one lock at Pedro Miguel on the Pacific side ; all these locks to be in duplicate, that is, to have two chambers, side by side. The summit level will be maintained by a large dam at Gatun and a small one at Pedro Miguel, making the great Gatun Lake, which will have an area of 164.23 square miles. A small lake, about two square miles in area, with a surface elevation of 55 feet, w^ill be formed on the Pacific side of the canal between Pedro Miguel and Miraflores, the valley of the Rio Grande being closed by a small dam and the locks at Miraflores. The canal is to be about fifty miles in length from d«,»p water in the Caribbean Sea to deep water in the Pacific Ocean. The distance from deep water to the shore line in Limon Bay, Atlantic side, is about 414 miles, and from the Pacific shore line to deep water is about 5 miles ; hence the length of the TEE PANAMA CA1\'AL. 4B8 canal from shore to shore will be approximately 40i/2 miles. The bottoin Avidth of the canal will vary from 200 feet in Cnle- bra Cut to an indefinite width in the deep waters of Gatiin Lake. The approaches from deep water to land on both sides of the canal are to be 500 feet widf>, and the cuts in t' e shal- low parts of the lakes from 500 to 1,000 feet wide. The canal will have a minimum depth of 41 feet. Each lock will have a usable leng-th of 1,000 feet, a width of 110 feet, and a depth of 4 feet 4 inches over the sills. The walls of the locks will be of concrete, and the gates of steel. The great Gatun dam. Which will impound the waters of the Chagres, the Gatuncillo, and Trinidad rivers, and create a lake whose normal summit level will be 85 feet alwve the sea, will be practically a mile and a half long, half a mile wide at the base, w^ith its crest 135 feet above mean tide, and the toj) thick- ness of the dam of the cross section now "adopted will be 80 feet. There will be a spillway in about the middle of this dam, constructed through a hill or solid i^round now existing, by means of which the level of the lake will be contr lied, it being the intention never to let it exceed 87 feet in hei'^ht. The level of water in the lake will be the same as that throughout the Culebra Cut, and as far as the upper lock gates at Pedro Miguel. lu entering the canal from tjie Atlantic side a ship will proceed from deep water in Limon Bay to Gatun lacks, a dis- tance of slightly over seven miles, through a channel 500 feet wide ; going through the flight of three locks at Gitun, she will traverse nearly six-tenths of a mile before reaching Gatun Lake. 85 feet above the sea ; thence for a distance of nearly 16 miles there will be jI channel through the lake of 1,000 feet or more in A\idth to San I'ablo ; from San Pablo to J nan Grande, 3.8 miles, the channel will be 800 feet wide ; from Juan Grande to Obispo, 3.7 miles, the channel will be 500 feet wide, and it may be said that at this point navigation through the lake will be terminated, and the entrance to the Culebra Cut will begin, although the channel from Obispo to Las Cascadas, a d' stance of one and a half miles, will be maintained at 300 feet ; thence to Cucaracha, ' a distance of 4.7 miles, the channel wmII be 200 feet wide, and from Cucaracha to Pedro Mig lel, a distance of 1,9 miles, the channel will again widen to 300 feet. Going through the Pedro Miguel lock and approaches, nearly three- teaths of a mile in total length, the vessel will be Jowered to the level of INIiraflores Lake, 55 feet above mean tide, through which there will be a channel 500 feet wide and 1,4 miles long to the Miraflores locks ; thence through the two Miraflores locks, of a total length, including approach walls of over nine-tenths of a mile, she will be lowered to the tide level and proceed through a channel 500 feet wide and 8 miles long to deep water in the Pacific. It will thus be seen that about 25 miles will be navigated through the two lakes, where the minimum channel width is 500 feet, and where, therefore, practically full speed can be maintained. The sea-level channels at both ends of the canal, a total length of about 15 miles, can also be traversed at prac- tically full speed. Aside from the locks there will be only about 8 miles to be navigated through channels from 200 to 300 feet wide. Amonnt of Worlc Done l»v the French. The amount of material excavated l)y the old and new French Panama Canal Companies was 81,548,000 cubic yards, and of this amount it has been estimated that about 36,000,000 yards will be utilized in the construction of the present canal. Worlv Done l»y the Conmiisslon, The plan adopted Joy the United States required a total ex- cavation, since May 1, 1904, of approximately 142,000.000 cubic yards. Up to the end of March. 1908. there had been excavated 31 802.000 cubic yards, leaving 110,108,000 cubic yards to be ex- fin ated- 484 THE PANAMA CANAL. CarliiK i'or ileiiltli of F^iuployeen. Up to the end of January, 1908 (the latest date for which fig-ures are now avaihible), there had been expended ovi c $1:3,000,000 on account of civil administration, municipal im- provements, and sanitation, which covered tlie work of build- ing- roads, providing fire and police establishments, courts of justice, schools, postoffices, the erection and maintenance of hospitals, and the sanitation of the Canal Zone, including- the Cities of Panama and Colon. Tlie principal streets of Panama and Colon have been paved, and water works and sewer systems established in both cities. Three large reservoirs have been constructed and pumping stations and standpipes established where needed, ample pro- vision thus having been made for supplying water for all towns and villages in the Canal Zone, as well as in the cities of Panama and Colon. During the past year fifteen hotels for Americans, eighteen mess halls for Europeans, and twenty-three kitchens for West Indian laborers have been operated, the employes concerned paying for their meals practically only the cost of food and the operation of the different establishments. President Eoosevelt, commenting upon this subject in his special message to Congress after his visit to Panama in 1906, said : "The first great problejn to be solved, upon the solution of which the rest of the work depended, was the problem of sanitation. * * The results have been astounding. The Isth- mus had been a byword for deadly unhealthfulness. Now, after two years of our occupation, the conditions as regards sickness and the death rate compare favorably with reasonably healthy localities in the United States." * Contracts to Ijovrest Bidders. The following is a provision relative to contracts for pur- chase of supplies contained in the executive order of the Presi- dent, of January 8, 1908, regarding the organization and work of the Commission, and is substantially the same as that contained in the executive order of the President dated Aprii 1, 1905 : "Contracts for the purchase of supplies, involving an es- timated expenditure exceeding $10,000.00, -shall be made only after due public advertisement in newspapers of general cir- culation, and shall be awarded to the lowest responsible bidder, except in "tiase of emergency, when, with the approval of the Secretary of War, advertising may be dispensed with. "In the making of contracts for supplies or construction in- volving an estimated expenditure of more than $1,000.00 and less than $10,000.00, competitive bids shall be secured by invi- tation or advertisement whenever practicable." The liRbor Supply. Americans are given preference in every branch of the work in which their services can be had. Few of them are walling to undertake the hard labor on the canal in that climate, and therefore for this class of labor the Commission has been com- pelled to look elsewhere. The skilled labor force is recruited in the United States. Agents of the Commission receive applications for all outside positions, personally examining the individual and looking into his previous service record. Whenever an applicant is not with- in convenient reach of the employment agent written applica- tions are received direct by the Washington Office of the Com- mission. This includes trainmen, steam-shovel operators, fore- men, and mechanics. Clerks, stenographers, draftsmen, doctors, and nurses are secured through the Civil Service registers. All appointments are made through the Washington Office, which also arranges for transportation of employes to the Isthmus, including members of their families. The skilled force on June 30, 1906, was approximately 2,500 and on June 30, 1907, actually 4,404. To increase this force 1,904 men and provide for the usual separations, due to sickness, resignations, etc., 3,038 men were brought from the United States during the year. THE PANAMA CANAL. 435 An executive order, signed by the Secretary of War by au- thority of the President, February 8, 1908, provides that on and after that date the employment of skilled laborers, clerks, and all others who had theretofore been known as gold employees of the Commission should be restricted to American citizens, except where American labor or service of the character re- quired is not available. Foreign employees were not to be affected by this order save that in the event of any reduction in force preference should be accorded to American citizens. Owing- to the unwillingness of American laborers to engage in the heavy work in the tropical climate of Panama the un- skilled labor force is brought from the ^Vest Indian Islands and from Europe. On June 30, 1907, the unskilled labor force con- sisted of 4,317 Europeans and 14,608 West Indians. Appropriations for tlie Canal. In addition to the $40,000,000.00 paid to the French Com- pany for its property and rig-hts of all kinds on the li-thmus, and the $10,000,000.00 paid to the Republic of Panama for the rights granted under the treaty between that Republic and the United States, there have been appropriated by Congress the following amounts "to continue the construction of the Isth- mian Canal" : Act of June 28, 1902. This Act limits the amount to be thereafter appropriated to the sum of $145,000,000, of which there is appropriated thereby $10,000,000.00 • Act of December 21, 1905 11,000.000.00 Act of February 27, 1906 5,990,786.00 Act of June 3.: 1906 25,456,415.08 Act of Mai-ch 4, 1907 27,161,307.50 79,608,568.58 Act of Februarv 15, 1908 12,178,900.00 91,787,468.58 Time of Completion of Canal. In addition to excavation preliminary work on the locks and dams is progressing, and it is estimated that tha laying of concrete in the locks will commence about Januar^^ 1, 1909. It has also been estimated that the determining factor in this time of completion of the canal will be the construction of the Gatun dam, and w^hile the total excavation required for the rest of the work could probably be finished in less time, it is the intention to adjust the whole work so that all the separate parts will be completed at approximately the same time, which, it has been unof&oially estimated, will be about January, ig-lo. What tlie Canal Means. [By Charles M. Pepper.] There are many meanings to the Canal and many resul+s from its construction by the United States. The daily story of the steam shovels is one of the most fasci- nating and instructive chapters in the history of canal construc- tion, telling as it does in the record of the thousands of cubic yards excavated in the Culebra Cut the marvelous engineering progress that is being made on the waterway. The sanitary miracle wrought in freeing the Isthmus from yellow fever epi- demics and other tropical diseases and in insuring a healthy and effective body of laborers is another chapter in canal build- ing to which the world offers no parallel. The transplanting of the American home life, the schools, the churches, and the Young Men's and Young Women's Christian Associations is a contribu- tion to Christian civilization which will find a responsive echo in the millions of American homes where these ideals are clier- ished. The zealous and intelligent devotion to duty which is shown by the Canal Commission and its employees, from the highest to the lowest, is an example for all peoples who would 4M THE PANAMA CANAL. advance in civic virtue up to tlie American standard. But there arc otlicr chapters in whicli the Canal policy, as i nan j^u rated by President Jvoosevelt and carried out by Secretary Taft, opens new prt»spects. There is both the immediate and the ultimate expansion of American commerce and the legitimate extension of the moral and political influence of the United States which g-oes with it. The Cautil means more trade iu the Orient and on the West Coast of Central and South America. It means more trade in the first place because the trade routes are shortened. The Canal puts into force the railway maxim of the short rail and the ]ong- water haul as the best for the i)roducer, the common car- rier and the consumer. This shortening- of the routes means that the Mississippi Valley with its agricultural products, its Hour, its farm tools and other machinery has this haul for the 500,000,- 000 consumers in the Orient. It means that the cotton mills of the South will be closer to this huge body of buyers, and that the shipping of the world will draw on the Southern coal fields for fuel. It means that the factories of New England and the Eastern States, saving the 10,000 miles voj^age around Cape Horn, will have a short cut from the Western to the lOastern Hemis- phere, which will neutralize the advantage that the Suez Canal gives to their European competitors; that New York will be as near to China as Liverpool is, and that it will be 2,000 miles nearer to Japan. Here is some of the trade of the United States w ith the Orient and with Oceania to-day: Japan, $108,000,000; the Chinese Em- pire and Hongkong. $70,000,000; the British East Indies. $9:5,000,- 000; the Dutch East Indies, $14,000,000. Tins is a big quantity of <4<)()ds going oi.t and a big quantity coming in, most of which will be favorably alfected by the Canal route. It is some measure of the future growth of our Pacific commerce, which in the last dozen years has risen from $125,000,000 to $400,000,000. 'I hen there is the trade with our American Asiatic capital — Manila. The foreign commerce of tli^ Philippines under our peace- ful and fostering control has now i-eached $65,000,000, and is ex- panding toward the $100,000,000 mark. The present interchange of $20,000,000 of commodities between the United States and the Philippines will undoubtedly grow, and the United States will absorb a larger share of the business. There is also the trade pf our strategic territory in the mid-Pacific, the Hawaiian Islands, which, when the Canal is opened, will be shipping through it 400,000 tons of sugar-cane productsto the refineries on 1 he Atlantic coast. But above all, there is the Pan-American meaning of the Canal. It means tnat for a large section of South America the dreain of James G. Blaine becomes true and the markets of the United States are extended, while the products of those coun- tries flow to us in an unbroken stream. It means that the pol- icy of closer commercial relations which was inaugurated by President Roosevelt will continue unchecked, and that the influ- ence of the visit of Secretary Boot in fostering and fomenting Pan-American trade will grow deeper, while the Monroe Doctrine will vindicate its utility to the commerce of both continents. The Canal means that the people of the West Coast of Central and : South America, throvgh their reciprocal commercial interest, will i be neighbors to the United States in fact as well as in name. j The foreign trade of the South American and Central Ameri- can countries which are within the radius of the Canal now ap- t proximates $300,000,000 annually. It is not an exaggerated esti- j mate that by the time the waterway is opened this commerce will - have reached $500 000.000, and the tendency will be for it to gravitate more and more to the United States. Here is an illus- tration of the way commerce has grown since the United States obligated itself to build the Canal : In 1904 the trade between the United States and Chile was $15,150,000; Bolivia, a few thousand dollars; Peru. $7,000,000; Ecuador, $3,700,000. In 1907 the trade was: Chile, $28,500,000; Bolivia, $2,500,000: Peru, $13,000,000; Ecuador, $4,800,000. In a single year the imports from Peru were increased by nearly f'' 000.000, and this was because the great American mine inter- I'sts w-ere getting the first returns from their copper investments THE PANAMA CANAL. • 487 and were sending- thousands of tons across the Isthmus to the mills and factories of the United States to be fabricated into railway material, electrical apparatus, and the countless other articles into which copper enters. When the (anal is opened and these shipments can be made without the necessity of tho railway- transfer across the Isthmus their volume will be vastly increased, and substantially all the mines of the Andes will be laying- down their products in the United States. The Canal means that the vast treasure house of the Andes, the silver and gold, the tin arid copper mines, are to be opened up by capital from the United States, while the products of the farms and the output of the factories will be carried to them more quickly and more cheaply. There are hundreds of millions of untouched mineral wealth lying in these mountains waiting not for future ages, but for the present g-eneration to exploit theni. The Canal means the railway building which will make this exploitation possible, because under the paramount moral influence of the United States and under the commercial pros- perity which the Andean countries see coming- to them as a result of the Canal all are encouraged to maintain the stable govern- ment which alone can draw foreign capital to them. There is now $75,000,000 of American capital invested in the section of South America which is directly tributary to the Canal. Much of this capital was invested after it became settled that the United States would build the waterway. Without such incentive those Andean treasvire-houses would have remained un- touched for generations yet. This American capital has gone into the heart of South America — -Bolivia — where it is building rail- ways and is opening Tip tin and copper and silver mines. There is $25,000,000 of it that already has gone, and more will go in the future. It has gone into Peru, where $20,000,000 has been in- vested in a single enterprise, that of exploiting the gi-eat Cerro de Pasco copper fields. Other investments of American millions have been made in other copper mines and smelting works in Peru. ''^American capital has gone into Ecuador, where it con- trols the marvelous railway leading from the coast through the clouds over the Andean plateaus to the ancient capital of Quito. In all the countries it has gone into these mining and railway enterprises, and it is now going into general trade, so that American goods are being pushed and handled by Americans. One of the first results of the Canal has been the development of the Republic of Panama into a prosperous tropical State. In 1907 it had a total foreign trade of more than $19,000,000. Nearly $8,000,000 of this was exports from the mills and factories of the United States to the Canal Zone to be employed in building tho waterways. All told, the United States shipped $18,665,000 worth of goods to Panama. Of the imports taken by it in addition to the Canal supplies there was $5,200,000 of other commodities from the United States, and the prosperous little commonwealth increased its exports by $843,000, the total amount being $1,961,000. Practically all these exports were taken by the United States. Here are some of the products from the farms and factories of the United States that were consumed on the Isthmus during 1907: Flour, $350,000; cotton cloths and wearing apparel, $850,- 000; coal, $545,000; explosives, $275,000; steel rji^ils, $376,000; wire, $167,000; locomotives, $1,093,000; other steam engines, $1.- 015,000; miscellaneous iron and steel products, $1,540,000; boots and shoes, $421,000; packing house products, $1,400,000; illumi- nating and other oils, $280,000; vegetables, $284,000; paints, $157,000; soap, $116,000; sugar, $94,000; lumber and various products of lumber, $2,000,000; miscellaneous products, $1,600.- 000. The growth, in the commerce between the United States and the countries of Central and South America, the new market for railway material and machinery, for textiles and breadstuffs, the employment of .American capital in building the railroads and in opening up the mines, the opportunities for young Ameri- cans which these enterprises have offered, are among the first fruits of the Canal. A larger trade, more paying investments, and wider opportunities will come as the w^ork progresses. 438 , DEMOCRATIC EXPAN8I0NI8TB. Tilli: DISMOCKATS AS BXPAIVSIONISTS. I )oniocrattt Schemed for the Aiinexiition of Cuba, Iluwaii uud Otliei- ImlaiidM. Nearly every Democratic President from Jefferson to Bu- chanan expressed a desire for the addition of Cuba to the terri- tory of the United States, several of them hinting at a similar desire with reference to Porto Rico, and that at leasr, one of them actively pressed for the annexation of the Hawaiian Is- lands to the United States, while schemes looking- to the addi- tion of non-contiguous territory in Central America ai d upon the Isthmus of Darien were favored by leading Democrats. Many Democratic Presi«lents Wanfed to Annex Cuba. Jefferson, both while President and afterwards, in corre- spondence with Madison and Monroe, frequentlj'^ expressed a desire that Cuba should some time become a part of the United States, and the Democratic text hook as late as 1898, issued as an official document of the Democratic party, quotes extracts from his letters in support of that statement. President Monroe also expressed himself in favor of making Cuba a part of the United States. Polk favored the annexation of Cuba, ai d Hon. James D. Richardson, the present member of Congress from Tennessee, who now holds iip his hands in holy horror at the thought of this kind of expansion, says in his index to the Messages and Papers of the Presidents, page 332, volume 10 : President Polk made a proposition in 1840 for the purchase of the island by the American Government for $100,000,000. In 1834 the Ostsud mani- festo claimed the right of the United States, should Spain reluse to sell Cuba, to take and annex it. The Ostend manifesto, it will be remembered, was an an- nouncement made by President Pierce's Ministers to P^ngland, France and Spain (Buchanan, Madison, and Soule), in wiiicu ihvy suggested that an earnest effort be made to purchase Ci;ba at a price not to exceed $120,000,000, and added that if this should be refused by Spain "we should be justified by every law, human and divine, in wresting it from Spain if we possess the power," a proposition of which Lossing, the historian, saj-^s : "The bald iniquity of this proposition amazed honest men in both hemi- spheres." Spain having refused to sell, and the sentiment of the world failing to sustain the Democratic proposition to seize the island, Pierce's Administration failed, but that of Buchanan immediately took it up again, and President Buchanan, in three of his annual messages to Congress, ui'ged that Cuba ought to be made by purchase a part of the United States. Daring his terra a bill for that purpose was introduced in Congress by Senator Slidell, whose name is well remembered in connection with the Confede rate Government, and was sustained by Southern Democrats generally, w^hile the same proposition for obtaining control of the island of Cuba by some process was publicly commended by Jefferson Davis in a speech in his own State during that time. The efforts of the various Democratic Presidents for the pur- chase of Cuba having been rejected by Spain, the Democratic national convention took up the question and in the platforms Upon which two of its candidates, Douglas and Breckinridge, ran in 1860 it declared pointedlj^ in favor of the annexation of Cuba, as follows : Resolved, That the Democratic party are in favor of the acquisition of the island of Cuba upon such terms as shall be honorable to ourselves and just to Spain. Democratic Effort to Annex Ha-waii. It is also on record that at least one Democratic President attempted to make Hawaii a part of the United States, al- though within the memory of the present generation a Demo- cratic President hauled down the United States flag in that is- land and withdrew from the Senate a treaty of annexation which a Republican President had sent to that body. Under President Pierce an active effort was made to annex Hawaii, and probably would have been successful but for the death of DEMOCRATIC EXPANSIONISTS. 439 the King- after the treaty of annexation had been prepared and* forwarded to the United States. It is a matter of official record in the State Department that negotiations were opened by Presi- dent Pierce, tliroiigli his Secretary of State, Marcy, and the Minister to the Hawaiian Islands, David L. Gregg, for the an- nexation of Hawaii ; that a treaty for that purpose was drawn and forwarded to the United States in 1854, and that while President Pierce objected to certain of its features, his Secretary of State resjjonded to Minister Gregg that — This Government will receive the transfer of the sovereignty of the Sandwich Islands with all proper provisions relative to existing rights of the people thereof, such as are usual and proper to territorial sover- eignty. The President directs me to say that he can not approve of some of the articles of the treaty ; there are in his mind strong objections to the immediate incorporation of the islands in their present condition into the Union as an independent State. It was expected that the Hawaiian Government would be willing to offer the islands to the United States as a Territory and leave the question in relation to their becoming a S,tate to the determination of this Government, unembarrassed by stipu- lations on that point. * * * The President desires me to assure you that he takes no exception ^whatever to your course in this difficult and embarrassing negotiation, 5ut, on the contrary, it is highly approved. Your efforts have been properly directed and your ability is appreciated and commended. Vncatan and tlie Danisb West Indies Tvanted by Demoeratic Presidents. In addition to the above evidence of Democratic efforts to add island territoi-y to that of the United States, a psrt of it thonsaads of miles away, it may be further remarked that ' President Polk in a message to Congress, on April 29, 1848, in- timated strongiy a desire to send troops to Yucatan and take possession of that territorj-, suggesting that this might be ad- visable in order to prevent tliat territory from falling into the hands of a European power, while President Johnson, after severing his allegiance to the Republican party and receiving the siipport of the Democrats, recommended, in a mes age to Congress, the purchase of the Danish West Indies, [Extracts from Democratic Platforms. | 1844 The reoccupation of Oregon and the reannexation of Texas at the earliest practicable period, are great American measures, which this convention recommends to the cordial support of the Democracy of the Union. 1860 That the Democratic party is in favor of the acqi isition of the Island, of Ciiba on such terms as shall be honorable to ourselves and just to Spain, at the earliest practicable moment. 1884 This country has never had a well-defined and executed foreign policy save under Democratic administration. That jjolicy has ever been in regard to foreign nations, so long as the.y do not act detrimental to the interests of the country or hurtful to our citizens, to let them alone ; that as a result of this policy we recall the acquisition of Louisiana, Florida, Cal- ifornia and of the adjacent INIexican territory by purchase alone, and contrast these grand acquisitions of Democratic statesmanship with the purchase of Alaska, the sole fruit of a Republican administration of nearly a quarter of a century. IMPORTS OF TROPICAL. AND SUBTROPICAL, ARTICLES INTO • THE UNITED STATES. These tables are given because of their special interest at this time when the United States is developing a close relation of interchange with certain tropical areas : In the case of Porto Rico and Hawaii, an absolute . freedom of interchange of its manufactures and temperate zone products for the tropical pro- 440 DEMOCRATIC EXPANSIONISTS. duotions of those islands; in the case of the Philippines, re- duced rates of duty on articles coming from those islands, and in the case of Cuba, a reduction in rates of duty on products coming- from that island and in return therefor reduced rates of duty on articles from the United States entering that island, It will be seen that the value of tropical and subtropical mer- chandise brought into the United States, including that from our own islands, has grown from 145 million dollars in 1870 t<) 567 millions in 1907, and that a very large proportion of these articles are of classes absolutely required for manufacturing or for foods and in most cases of a class which are not produced in the United States, or at least not sufficient for our own re- quirements. Value of principal imports of tropical and subtropical articles at quinquennial periods from 1810 to 1907. Articles. Yaar ending June 30— 1870. 1890. 1900. 1907. b Sugar and molasses a. Coffee $69,802,601 24,234,879 3,017,958 6,043,102 3,459,665 7,416,592 4,181,736 13,863,273 331.573 2,511,334 1,288,494 418,064 1,513,126 670,131 1,007,612 224,918 52,760 1,776,908 $82,915,044 78,267,432 24,331,867 20,541,767 14,854,512 20,746,471 $85,949,891 .52,467,943 45,329.760 26,373,805 31,792,697 13 '?R.^.5«2 $127,351,448 78,381,182 Silk 71,411,899 Fibers 42,251,355 India rubber and gutta percha 89,121,320 Fruits and Huts 37,040,689 Tobacco, and mfrs of Ten 21.710, 45t i i5',661,'360 12,317,493 10,558,110 1,392,728 7,960,945 3.221,292 6,'«20,711 5,697,280 1 6,884,704 2,859,642 6,210,985 3,223,071 i 3.401.265 35,608,109 13,915,544 20,995,684 Cotton .. . .. Vegetable oils 15,394,581 Gums -_ _ _. 14,974,156 Cocoa, and mfrs of. and chocolate ._ __ . 14,578,989 Spices _ 5,113,000 Cabinet woods .. 2,430,702 2.279.036 5,355,600 Bice 2,540,674 4,548,256 Cork, and mfrs of.. 1,588,767 1,909,483 1,741,383 1.736,458 1,453,298 2,189,721 794,503 ! 1,667,256 909,582 1.049.034 4,063,982 Feathers 4,401,154 Opium 3,068,126 Li(orice 1,140,541 Ivory 2,470,405 Dyewoods and ex^racts Indigo .. 1,337,093 1,203,664 1,943,272 1,827,937 559,867 1,108,726 282,775 416,718 1,083,644 1,446,490 1,209,334 411,029 563,065 536,303 913,465 1,233,541 Vanilla beans 1,523,156 Sago, tapioca, etc Barks for quinine 388,621 1,432,082 380,552 Sponges .. _. 86,483 488,426 Total . . $144,a30,587 $307,246,555 $336,687,323 $567,166,242 a Only cane sugar not above No. 16 Dutch standard In color, and molasses. b Includes articles from Hawaii and Porto Rico. (Quantities of principal articles of tropical and subtropical growth imported from 1870 to 1907. Articles. Year ending June 30— 1870. 1880. 1890. 1900. 1907. Sugar a_.lbs. Coftee ..-do. Silk do. India rubber and gutta percha, lbs. Tobacco, leaf lbs. 1,196,622,049 235,256,574 583,589 9,624.098 6.256,540 1,698,133 43,. 533 3,640,845 251,727 47,408,481 43,123,939 1.829,286,030 446,850,727 2,562,236 16,826,099 9,759,355 3,547,702 111,751 7,403,613 383,131 72,162,936 57,006,255 2>332,820,896 499,159,120 5,943,360 33,842,374 28,720,674 8,606,049- 195,332 18,266,177 893,984 83,886,829 124,029,171 3.305,087,796 787,991,911 11,259,310 58,506,569 19,619,627 67,398,521 249,306 41,746,872 967,702 84,845,107 116,679,891 5,198,909,054 986.599,779 18,743,904 77,510,728 42,341,300 Cotton ...do. Fibers ..tons. Cocoa -—lbs. Olive oil-gal. Tea lbs. Rice do. 127,833,300 312,983 92.249,819 3,449.517 86,362,490 213,144,062 a Cane sugar under No. 16 Dutch standard in color only; figures of 1907 Include sugar from Hawaii and Porto Rico. COLONIAL TRADE. 441 Trade of tlie United Kingdom Trifli its Colonies. The table which follows showing the trade of the United Kingdom with its Colonies is suggestive and interesting, es- ])ecially in the showing which it presents as to the market which that country finds for its merchandise in the communities with which it has relations of this character. It will be noted that while the total exports of the United Kingdom have barely doubled in the period from 1869 to 1906, the exports to her colo- nies have nearly trebled during the same period and that the value of her merchandise sold in the colonies in that period aggregates 16 billions of dollars. statement showing the total imports and exports of the United Kingdom; and the amount imported from and exports to her Colonics during the past thirty-eight years, 1869 to 1906. Imports. Exports. Year. Total Imports. Imports from colonies. Total exports. Exports to colonies. 1860 $1,437,857,131 1,475,802,590 1,610,886,833 1,726,116,521 1,806,869,996 1,801,007,465 1,819,776,951 1,825,690,362 1,919,443,383 1,794,622,816 1,766,499,960 2,001,248,678 1,932,109,943 2,009,959,922 2,077,467,869 1,898,025,366 1,805,315,553 1,702,610,586 1,762,780,440 1,886,429,343 2,081,098,356 2,047,207,603 2,119,074,911 2,032,392,927 1,069,415,018 1,087,210,018 2,027,820,221 2,150,063,031 2,194,932,434 2,289,905,792 2,360,425,635 2,515,545,281 2,540,265,299 2,571,416,135 2,640,564,306 2,681,629,483 2,749,669,426 2,058,289,385 $342,681,854 315,506,938 354,984,010 386,267,989 394,235,759 399,845,456 410,849,255 410,404,481 435,814,531 379,810,859 384,174,348 450,242,765 445,477,755 483,880,460 480,233,544 466,273,531 410,741,034 398,488,695 407,806,203 422,975,439 473,315,335 467,968,548 484,045,050 475,779,718 446,596,048 • 457,023,556 464,807,767 453,596,873 457,586,162 484,815,412 519,884,761 533,030,835 513,774,440 519,708,295 553,178,889 584,069,573 622,273,136 691,847,141 $1,153,433,750 1,187,818,128 1,380,016,278 1,530,946,561 1,513,504,689 1,448,515,983 1,370,466,370 1,249,603,334 1,228,041,906 1,194,647,195 1,210,704,241 1,393,835,999 1,445,753,324 1,492,364,365 1,486,409,501 1,440,326,242 1,321,129,720 1,308,891,227 1,368,765,830 1,453,027,603 1,535,831,773 1,597,438,932 1,504,301,909 1,419,266,868 1,318,693,391 1,332,378,922 1,391,003,409 1,422,329,445 1,431,598,315 1,430,810,072 1,603.680,413 1,721,550,874 1,6)2,881,460 1,609,570,518 1,753,758,475 1,805,545,496 1,983,568,499 2,241,888,602 $252,531,187 L'TO 269,561,917 1871 1872 270,389,037 319,287,259 1873 346,240.316 1874 -. „ 379,149,151 1875 373,041,611 1876 841,384,435 1877 368,647,838 350,352,514 1879 323,666,917 1880 __. 396,763,915 1881 421,834,021 1«82 _ 449,361,013 1883 439,933,016 1831: 429,729,930 1885 416,034,710 1886 400,184,346 1887 400,367,265 1888 1889 -- 446,393,791 442,053,886 ^m) 1891 459,993,595 451,229,956 1802 1893 1894 ^ 395,215,964 382,425,688 382,438,613 1895 370, 205 ,"123 1896 441,148,230 1897 1898 1899 1000 423,212,192 438,-523,897 458,665,678 496,500,059 1!K)1 550,490,518 lfX)2 571,869,627 1003 lfK)l 581,469,826 587,792,884 1005 597,182,461 1906 635,793,874 Total exports of United Kingdom to colonies from 1869 to 1906, $16,064,055,170. We are no more a|i,-ainnt org:anizations of capital than against organizations of la1)or. We Tveleome botli, demand- ing only that each shall do right and shall remember its dnty to the Republic. — President Roosevelt at Milwaukee, Wis., April 3. 1903. Any unjust discrimination in the terms upon Trhich trans- portation of freight or passengers is afforded an individual or a locality paralyzes and Tvithers the business of the in- dividual or the locality exactly as the Itindifig of the ar- teries and veins leadlnif to a member of the human body destroys its life.— Hon. Wm. H. Taft, at Columbus, Ohio. The course of the Republican party since its ortranlzation in 185G, and its real assumption of control in 1861, dovFU to the present day, is remarliable for the foresight and ability of its leaders, for the discipline and solidarity of Its members, for its elliclency and deep sense of respon- sibility for the i>reservation and successful maintenance of «he government, and for the greatest resourcefulness in meeting the various trying and dlftlcult Issues ^vhlch a Iiistiiry of no>v a full half-century have nresented for ao- iution.— Hun. M-ni. H. Taft, at Kansas City, Mo. RECENT TEMPORARY GOVERNMENT OF CUBA BY THE UNITED STATES AND ITS EFFECT ON THE CONDI- TIONS IN THE ISLAND. On May 20, 1902, the military government of Cuba, by order of President lloosevelt, issued in compliance with the promise made by the United States Congress in the Teller llesolution, transferred the government of Cuba to its newly elected Presi- dent and Congress. Under the presidency of McKinley, a brief war with Spain had secured Cuba's freedom from Spanish dominion. Three years of military administration had established order, constituted a govermueut, placed the finances of the country on a sound basis, and the new Kepublic entered on its national life under the best auspices. But one circum- stance distinguished it, in its relation with the United States, from other Latin American Republics ; namely, the existence of a law of the American Congress, known as the Piatt amend- ment, which had been adopted by the Cubans as a x^^rt of their constitution, and was later embodied in a permanent treaty between the two countries. According to the law and treaty, the Republic of Cuba undertook to enter into no com- pact with" foreign i^owers which would tend to impair the inde- pendence of the Republic, to contract no public debt to the ser- vice of which it could not properly attend, to lease coaling sta- tions to the United States, and to execute and extend plans for the sanitation of the cities of the Island, and consented that the United States might exercise the right to intervene for the preservation of Cuban independence, the maintenance of a gov- ernment adequate for the protection of life, property, and indi- \ idual liberty, and for discharging the obligations with re- spect to Cuba imjiosed by the Treaty of Paris on the United States which were now to be assumed and undertaken by the Government of Cuba. But while economically, with the assistance of the United States, the progress of Cuba was highly gratifying, in political matters, where the Cubans were left to themselves, the result was not so satisfactory. It was soon evident that political pas- sion was becoming more and more intense, and personal am- bition keener. To such an extent was partisanship carried in tilt! Cuban Cojigress, that the minority party, availing them- selves of the provisions of the constitution which require the presence of two-thirds of the total membership of each braucJi to open sessions' and of the omission of the constitution to provide means for con)pelling the attendance of absent mem- bers, remained away from the meetings of the Congress and prevented sessions except at irregular intervals. During the term of Congress lasting from April 4th to October 20th, 1904, a period of 199 days, the Lower House was, due to the obstructive tactics of the minority, able to hold but sixteen daily sessions and the Senate but twenty-six daily sessions; and a similar rcord of infrequent and irregular sessions continued throughout 190."). For the administration of the executive departments no la^v whatever has been provided. The Cuban Congress, engrossed in its political squabbles, took no steps to remedy the situation beyond passing an electoral law, the defects of which made extraordinary fraud possible, and a skeleton provisional lawH Those who had criticised the military government for promulj- gating legislation instead of leaving all legislative matters for the action of the Cuban Congress, were effectively silenced. So barren of legislative results were the sessions of Congress, tint in five years of the self-administered Republic only two annual budgets were passed; the thr«e remaining budgets being pro- 442 OVR GOVERNMENT OF CUBA. 443 \ ided, when Congress had failed to act, by the doubtful expedient or executive order. Another source of bitterness was the policy of the govern- nu'nt, in the hands of the ALoderate party, to dismiss the office- holders of the opposition party, the Liberals, and to reserve the positions in the public service for its own followers. Local pride was especially outraged by the action of the Moderate government in turning out the Liberal town councils, by illegal or technical interpretations of the irritating municipal law, and siilistituting Moderates. But w^hat niost exacerbated the strained relations between the political parties were the intimidation and colossal frauds practiced at the elections of 1905. The Liberals claimed that the Moderates used the rural guai-d and municipal police to in- timidate thQ voters, that the assaults to which the Liberals were exposed were such as to make it dangerous for them to appear for registration, and they accordingly refrained from regis- tering, and withdrew from the elections. Nevertheless, the re- turns made by the Moderate election judges showed that 432,313 persons had vohmtarily appeared for registration. That the electoral lists had been padded to the degree of absurdity is made evident by the fact that the census of Cuba just completed shows that there are now in the Island only 419,342 persons of all parties entitled to vote. It is probable that 200,000 names were fraudulently inserted in the registration lists. Even during the elections there had been armed encounters l)etween individual Moderates and Liberals. In Cienfuegos, an attempt made by the Moderate chief of police to arrest a Lib- eral ' congressman resulted in the death of both, and the gov- ernment was bitterly blamed. A few months later a post of -the rural guard near Hataana was attacked and several guards murdered while asleep, and prominent Liberals were charged with this deed. But it was not until August, 1906, that open revolt against the government began. On that date a small armed force took the field, and uprisings immediately followed throughout the country led by pi-ominent leaders disaffected with the government. The ranks of the insurgents were aug- mented on account of the natural tendency to insurrection that had been cultivated by a long period of insurrection in Cuba, as well as bj^ the inclination of many to secure relief froni daily toil and live on the country and property of others. The pow^er of this irregular force to do damage was incalculable. The greater part of the wealth of Cuba lies in its sugar plan- tations and sugar mills, most of which are owned by foreign capital, and the flaring of a few matches could in a short time have destroyed property of this kind to the value of millions of dollars. The governrrient of Cuba found itself entirely unprepared. Its artillery and rural guard force was comparatively small, and so scattered as to be unable to cope with the insurrec- tionists. The government made desperate efforts to organize militia, but with very unsatisfactory results. President Palma, in a letter to a friend a few^ wrecks later, thus summarized the situation: Prom the first days of the insurrectionary movement I understood the situation and was able to appreciate it with a serene mind. I saw before me numerous ujoksos, tired of the order and legality to which thoy appeared to have submitted during the four years of the Republic, eager for license and forays, follow like a mob the first adventurer who in- vited them to rise ; I saw everywhere persons who sympathized with disorder and encouraged disturbances ; I saw the press in the morning, afternoon, and at all hours, assisting with unparalleled cynicism the secret conspiracy organized in behalf of the rebels ; I suddenly found myself in the midst of a tremendous social disorganization, with thousands of insurgents in three provinces and the menace 'of rebellion in two others, without sufficient regular forces to undertake immediately an active cam- paign against the former and to beat and disorganize them ; at the same time I constantly" feared that they would carry to the great sugar plan- tations of Santa Clara the measures of destruction already realized on railroad stations, locomotives, bridges, culverts, etc. ; I saw the customs revenues fall olf by one-half and the other income of the State to 25 or 30 per cent., and that the millions of the Treasury were being spent in streams with uncertain result and to very doubtful advantage, a largo part being used for keeping up hastily improvised militia, which, for that very reason, could not inspire sufficient confidence as to their reliability far UTKlertaking the labor, the privations, nrd the dangers of a conitnnt persecution of adversaries, who were also Cubans and in a great number of cases friends and oomrades. 444 , OUR GOVERNMENT OF CUBA. The Appeal for Interveutioii hy the 1 nited StiiteM. 153' the beginning of September the Cuban government reiili/.ed the lielplessness of its situation, and applied to the United States Government for American intervention ; and President Palma an- nounced his irrevocable intention to resign his office in order to save his country from complete anarchy. The American State Department did all in its power to discourage the request, but the pleas of the Cuban government continued. On Sep- tember 14, 1906, President Roosevelt sent an official letter to Seiior Quesada, the Cuban Minister to Washington, in which he described the terrible disaster imminent in Cuba and the evils of anarchy into which civil war and revolutionary disturbances would assuredly throw her, and pointed out that the only way in which Cuban independence could be endangered was for the Cuban people to show their inability to continue in their i)ath of peaceable and orderly progress, and that our intervention in Cuban affairs would come only ff Cuba herself showed that she had fallen into the insurrectionary habit. He solemnly adjured all Cuban patriots to band together to sink all differ- ences and personal ambitions, and to rescue the Island from the anarchy of civil war. He said that, under the treaty with Cuba, as President of the United States he had a duty in the matter which he could not shirk ; that the 3rd article of the treaty explicitly conferred upon the United States the righ* to intervene for the maintenance in Cuba of a government adequate for the protection of life, property, and individual liberty ; that the treaty conferring the right was the supreme law of the land and furnished him with the right and means of fulfilling the obligation he was under to protect American interests ; that his information showed that the social bonds throughout the Island had been so relaxed that life, property, and individual liberty were no longer safe ; and that, in his judgment, it was imperative for the sake of Cuba that there should be immediate cessation of hostilities and some arrange- ment which would secure permanent pacification of the Island. He closed the letter by announcing that he would send to Habana the Secretary of War, Mr. Taft, and the Assistant Sec- retary of State, Mr. Bacon, as special representatives of the American government, to render all possible aid toward secur- ing peace. The Peace Commission. Secretaries Taft and Bacon arrived in Habana September 19, 1906. The task confronting them was extremely serious. Though there was no doubt that the American naval forces assembling in Habana harbor could in a short time disperse any large bodies of insurgents, it was quite evident that the empltjyment of force would certainly give rise to guerilla warfare, which would have caused an immense destruction of property, and cost much blood and money to suppress. The Peace Commission, constitiited by Secretaries Taft and Bacon, gave hearing to prominent men of the Island, and had many conferences with the leaders of the different political parties, it received and considered suggestions for the settle- ment of the pending differences, and finally proposed a com- promise which it made earnest efforts to have accepted. The compromise contemplated the resignations of the Vice-Presi- dent, Senators, and Ilepresentatives. (iovernors, and Provisional Councilmen elected at the fraudulent elections of December 1905 ; the laying down of the arms of the insurgents ; the con- stitution of a commission for the purpose of drafting laws most urgently needed ; and the holding of elections under the provisions of the electoral law to be drafted by such com- mission. Their endeavors to have the plan accepted by all par- ties were without avail. The President insisted on resigning, all the cabinet officers resigned, and the President called a special session of Congress to submit his own resignation and that of the Vice-President. Pursuant to the call, Congress met September 28, received the resignations, and adjourned on the same day without electing a successor to the President. The country was thus left without a government, and President Palma OUR GOVERNMENT OF CUBA. 445 -so informed the Peace Commission, and stated that it was neces- finry for him to turn over the national funds to some responsible person. Secretary Taft accordingly issued the following proc- lamation establishing- the Provisional Government of Cuba : "To the People of Cuba : "The failure of Congress to act on the irrevocable resignation of the President of the Republic of Cuba, or to elect a successor, leaves this country without a government at a time when great disorder prevails, and requires that pursuant to a request of President Palma, the necessary steps be taken in the name and by the authority of the President of the United States to restore order, protect, life and property in the Island of Cuba and islands and keys adjacent thereto and for this purpose to establish therein a provisional government. "The Provisional Government hereby established by direction and in the name of the President of the United States will be maintained only long enough to restore order and peace and public confidence, and then to hold such elections as may be necessary to determine those persons upon whom the permanent government of the Republic should be devolved. "Insofar as is consistent with the nature of a provisional govern- ment established under authority of the United States, this will be a Cuban government conforming, as far as may be, to the Constitution of Cuba. The Cuban flag will be hoisted as usual over the government build- ings of the Island. All the executive departments and the provisional and municipal governments, including that of the City of Habana, will continue to be administered as under the Cuban Republic. The courts will continue to administer justice, and all laws not in their nature inapplicable by reason . of the temporary and emergent character of the Government will be in force. "President Roosevelt has been most anxious to bring about peace under the constitutional government of Cuba, and has made every endeavor to avoid the present step. Longer delay, however, would be dangerous. "In view of the resignation of the Cabinet, until further notice the heads of all departments of the Central Government will report to me for instructions, including Major-General Alejandro Rodriguez, in com- mand of the Rural Guard and other regular Government forces, and Gen- eral Carlos Roloff, Treasurer of Cuba. "Until further notice, the Civil Governors and Alcaldes will also report to me for instructions. 'I ask all citizens and residents of Cuba to assist in the work of restoring order, tranquillity and public confidence. "(Signed) "WM. H. TAFT, "Secretary of War of the United States, "Provisional Governor of Cuba". The general public satisfaction with this action is apparent from the fact that, though the government and the insurgents had thoiisands of men under arms, this simple decree was sufK- cient to establish the provisional administration, the only Ameri- can force landed being a small squad of marines to protect the Treasury. The important and delicate task of the disarmament of the insurgent forces and of the militia was then successfully carried into effect by commissions consisting of American officers and prominent Cubans ; and a general amnesty was issued. The general attitude of the people of Habana toward the action of the Peace Commission was made evident when Secretaries Taft and Bacon embarked for the United States on October 13, 1906. The people of Habana forgot their political differences, and taking thought of the fact that the horrors of civil war had been averted, all parties joined in a demonstration of gratitude and praise for the work that had been accomplished. The shore of the bay was lined with thousands of cheering people, all available water craft was pressed into service to escort the ships to the mouth of the harbor, the forts exchanged salutes with the vessels, and amid cheers and all possible display of goodwill the Peace Commission left Cuba. The character and extent of the service of Secretaries Taft and Bacon, and the appreciation thereof in Cuba, are indicated in the resolution adopted by a mass meeting of the American residents of Habana, as follows : "Gentlemen : "The American residents of Cuba, temporarily organized for the pur- pose of making kirown to you their situation and necessities in connection with the recent disturbances, desire to express to you their high appre- ciation of the great services your wise and prudent measures have se- cured to them and to all the people of Cuba. "The results you have accomplished are greater than could have reason- ably been hoped for at the time of your arrival. Nearly thirty thousand armed men, moved by the most intense and bitter passions, were then ar- rayed against the armed forces of the government and a disastrous conflict wa-< imminent, in which enormous loss of life and property would have been inevitable. It scarcely seemed possible that these angry elements of dis- cord and strife oould be brought into peaceful and orderly oitizenshlp 440 OUR GOVERNMENT OF CUBA. without bringing Into active service tlie military power at your command to compel a cessation of the struggle for supremacy between the contend- ing forces. But in less than one month the wise and sagacious methods you pursued and the skill and adroitness with which you approached the difficult ta^k committed to your charge have brought peace and quiet to Cuba. Warlike conditions have vanished, with no immediate probability of their resumption. The armed forces have surrendered their arms and most of them are already in their fields and shops engaged in peaceful industry. "Not the least satisfactory of the considerations involved is the fact that in the settlement of the turbulent conditions that have prevailed, you have caused but little irritation or resentment, and have secured from the Cuban people increased respect and regard for the United States, and greater confidence and trust in^ the goodwill and wishes of the American people fdr the people of Cuba* and their future welfare. "We do not believe that so successful and speedy an achievement under conditions so difficult and dangerous has any parallel, and the thanks and gratitude of the people of Cuba, as well as of the great people you represent, are due to you for these inestimable services. "Wishing you a safe return to the United States and the enjoyment of higher honors in the future, we are. Very sincerely yours, "S. S. HARVEY, ^ "H. E. HAVENS, "WM. HUGHES, "H. W. BAKER, "DR. C. CLIFFORD RYDfc^R, "ALFRED LISC(3MB, "W. ROBERTS, "WM. B HINE, "J. E. BARLOW, "CHAS. HASBROOK, "Committee." Upon Secretary Taft's leaving the office of Provisional Gov- ernor, President Koosevelt appointed in his place the Hon. Charles E. Mag-oon, who had shortly before retired from the position ot Governor of the Canal Zone and the American Minister to Panama, in which post he had successfully carried out the diffi- cult task of organizing the Canal Zone Government", and had e ^iblished friendly relations with the Republic of Panama. To assist him, officers of the United States Army were appointed advisers to the acting secretaries of the Culjan executive de- partments. Governor Magoon's Administration. Governor Magoon's administration has been one the bene- fits of which will endure for generations in Cuba. Its most lasting monument and the most grateful to the poor farmer of the country will be the network of roads -constructed under American supervision. Cuba is dependent upon its agriculture for the production of wealth, and has been subjected to great economic waste by reason of lack and cost of inland trans- portation. The products of Ciiba are hauled to market over trails that are barely passable during the dry season and abso- lutely impassable during the rainy season. In many localities it is impossible to transport the products in wagons or carts and necessary to pack them on horses or mules. Where carts can be used, it is necessary to employ from four to ten oxen, ^ horses or mules, where two would be sufficient if good roads existed. Days are spent in hauling a load to market where hours would be sufficient if the roads were good. Realizing the necessities of the situation, the provisional government has given its best efforts to supplying the remedy. A comprehen- sive plan of road improvement was adopted ; and in all parts of the Island trunk roads and local roads have been constructed and are now under construction, to the amazement and delight of the agriculturist, who has never seen his needs given such attention. "^On September 29, 1906, when the provisional gov- ernment began, there were but 366 miles of macadamized high- way in Cuba, many of which had been constructed under the American military government. On May 1, 1908, the mileage had been increased by the provisional administration to 573 miles and there were 457 miles of road under construction, most of which will be completed bj-- the end of the current year. Other public works have been provided in all parts of the Island. Harbors have been dredged, lighthouses built, hospitals, asylums, courthouses and other public buildings erected and i-epaired, bridges provided, and waterworks furnished the prln- OUR GOVERNMENT OF CUBA. ' 44T cipal towns. All these important works, as well as the road-' »vork, hav^e been paid for or.t of current funds. Careful attention has also been given to the legislative needs of the Island. It was a commentary on the necessity for legis- lation that nearly all the bases of settlement between the warring factions, proposed during the period of deliberation which led up to the establishment of the provisional government, incorporated more or less urgent demands for legislation, and particularly for legislation under the constitution affecting mu- nicipal and judicial administration. To meet this demand for legislative action, and in pursuance of the ])lvii\ of the Peace Commission, an advisory commission was created, composed of twelve members, nine of whom were prominent Cubans, all political parties being represented, and three Americans, ^vho had had experience with Spanish law. The commission on or- ganizing w as charged with the drafting of five ' laws : An electoral law, a municipal law, a provincial law, a judiciary law, and a civil service law. To these have since been added a law organizing the armed forces, a military code, a law or- ganizing the national executive departments, a general telephone law, a notarial law, and the revision of portions of the mort- gage law. Numerous minor decrees ha\e also been reported by the commission, and the lack of adequate legislation at present obliged the commission to draft a municipal accounting law and a municipal tax law in connection with the organic muni- cipal law. The work of the Advisory Law (commission is thus a work of organization of practically every fundamental branch of the Cuban Government. The law of the executive departments, together with the civil service law, will reorganize the execu- tive i:>ower of the national government ; the organic municipal law and the laws of municipal accounting and municipal tax- ation will afford to the municipalities a government in harmony with the constitution ; the electoral law is applicable to offices national, provisional, and municipal ; the judiciary law organizes the courts and provides for the independence of the judiciary ; while the law of armed forces and the military code organize the m.ilitary establishment of the Kepublic. Of these laws, the elec- toral law and the law of armed forces, as well as numerous minor deci'ees reported by the commission, have been promul- gated by the Provisional Governor. Drafts of the provincial and municipal laws have also been reported and approved. In all of these cases the proposed laws have been printed and distributed for public criticism prior to promulg-ation. Most of the laws drafted by the commission will be promulgated by the Provisional Governor, and the remainder will be submitted for action to the Cuban Congress. In addition, a commission has been convened, constituted by prominent Cuban judges and lawyers, for the revision of the harsh and antiquated penal code and the code of criminal procedure. Much attention has been given to the matter of sanitation, which, in Cuba, is not only of vital importance to the health of the inhabitants but has also a direct bearing upon the develop- ment and commerce of the country, for vessels will not seek to en ter a port of the Island if all other ports of the world are quar- antined against Cuba. The matter is also one of serious moment to the people and the commerce of the Southern States of the United States. The dreaded yellow fever had been stamped out in Cuba during the American military government, b it has reappeared. Indefatigable w^ork on the part of the pr-y- visional administration has again suppressed it. In vie'w of t'l ' special importance of sanitation in Cuba, a law has been ])'• > mulgated which nationalizes the sanitary service of the Tslaii I. and provides a national board of saiiitation charged with the responsibility of securing proper sanitation throughout the Isla i I and invested with the authority necessary for obtaining- thiu result. Public order has been kept perfectly, and at no time for a century has the Island been as quiet and as free fvoTu maraudin-; bands as under the American Provisional Ad-^i-'i-^tration. The presence in the Island of an American Army det i hment, num- bering about 5,000 men, and known as the Army of Cubaii 448 OUR GOVERNMENT OF CUBA. I'acification, has assisted in j^reat measure in renewing confi- dence. The rural guard, which had been used as a political agency, has been reorganized by American Army officers and restored to its original efficiency. For the purpose of enabling the new Cuban government to maintain itself, a decree has l)een issued providing for the organ i/,;it ion of tl\c armed foi-ces. L'nder this decree the method of calling the militia into service is regulated, and provisions are made for the establishment of a permanent army, which is now being organized. It fell to the provisional government to pay practically the entire cost of the uprising of 1906, as well as the debts incurred by the Cuban government, when it was struggling with the in- surrectionists, as the damage caused by tha revolutionary forces. Such payments have, up to the present time, amounted to over $9,000,000. As a consequence of the revolution, about 15,000 claims for damages wei-e filed by Cubans and aliens, the total amount claimed exceeding $4,000,000. A commission of Ameri- can officers and Cubans have investigated and reported on every claim, and recommended payments to the amount of $1,390,088.39, all of which have been made, except in a few cases that are being reconsidered on appeal. Many long pending questions, which had troubled the Cuban authorities for years, have also been settled. A question be- tween the State and the Catholic Church, involving- the pur- chase of property owned by the Church in Habana and u^ed by the State, has been satisfactorily settled and tlie purchase car- ried out. A water famine in the outskirts of Habana has been remedied by the acquirement in behalf of the municipality and under excellent conditions of a water concession, on account of which the city and national government had been engaged in costly litigation for years, while the public suffered from lack of water. A decree has been issued to facilitate the de- marcation of large unsurveyed estates held in common in the eastern part of the Island, the division of which has for a century been regarded as necessary for the public interests. Other decrees have served to clear up doubts arising in the interi^re- tation of customs tariffs, and have simplified the manner of drafting manifests, as well as the customs regulations for the entry and clearance of vessels. Still other decrees have been promulgated for the settlement of minor difficulties which had arisen under the present laws. A remarkable feature of the provisional administration has been the satisfaction and content with which its acts have been received by the Cuban people, and the cordiality existing be- tween the American government officials and all political par- ties, as well as the commercial and industrial bodies of Cuba. This state of public sentiment is all the more gratifying in view of the previous bitterness between the political parties, and of the difficulties and embarrassments with which the pro- visional administration has had to contend by reason of long periods of drought, labor strikes, and business depression, which have affected the agricultural and ommercial interests. All classes have perfect confidence in the American government, and realize that their welfare is the object of constant solicitude and effort. Preparation for Restoration of Cuban Government. In' the meantime, the work of preparation for the return of the government to the Cubans has gone on as rapidly as circumstances would permit. Soon after the advisory commis- sion began to consider the electoral law the opinion was ex- pressed in the commission, as well as in the public press, that a census of the Island should be taken in order to secure a reliable basis for the electoral lists, and that the local elections be held before the national elections in order that they might serve as a test of the electoral law. Secretary Taft a'>-ain visited Cuba in April, 1907, and among other matters which received his attentipn was that deciding upon the fate of the forth- coming elections. As a result of his conference Avith tho national committees of the various political parties, and with other rep- resentative bodies, he announced that a census of the Island OVR GOVERNMENT OF CUBA. ^ 44^ should be taken in as short a time as was consistent with making- it thoi-ough, fair, and complete for electoral purposes, that the municipal and provincial elections would be flield as soon as practicable after the termination of the census, that within six months after these local elections the national elec- tions would be held, and that as soon as the president and senators were desig-nated by the presidential and sena- torial electoral colleges the government woiild be devolved upon the Cubans. On January 14th of this year, President Roosevelt, in transmitting to Congress the report of the Provisional Gov- ernor for 1906-07, ordered that the provisional administration end not later than February 1, 1909. In pursuance of the [Ann laid out by Secretary Taft, a careful census of the Island has been taken under the direction of an official of the United States Census Department. The election boards provided for by the new electoral law have been constituted, and it is ex- pected to hold the local elections in July of this year, and the national election in the fall ; whereupon, in compliance with President Koosevelt's order, the government of the Island will devolve upon the officials desig-nated as a result of such election, not later than February 1, 1909. The eiiiDire that shifted from the Mediterranean will in the lifetime of those noTr clilldren hid fair to shift once more westwartl to the Pacific.— l»resident Roosevelt at San Fran- cisco, Cal., May 13, 1903. The contention tliat .we are not a nation w^ith power to Kovern a conqnered or pnrcliased territory, robs us of a facnlty most important for good to every sovereigrnty.— Hon. Wm. H. Taft, at Cleveland, Ohio. It is no long-er a question of expansion w^ith us; we have expanded. If there is any question at all it is a questiqjL of contraction; and who is goiuK to contract?— President Mc- Kinley at Iowa Falls, Iowa, Oct. 16, 1S99. It is a erood lesson for nations and individuals to learn J never to hit if it can he helped, and then never to hit softly. I think it is getting- to be fairly understood that that is our foreign policy.— President Roosevelt at San Francisco, Cal., ^ May 13, 1903. The policy of expansion is what distinguishes the admin- istration of McKinley and adds another to tbe list of patri- otic victories of the Republican party. By this policy the United States has become a w^orld power. — Hon. Wm. H. Taft, at Kansas City, Mo. The construction of the canal is now^ an assured fact; but most certainly it is unT^ise to intrust the carrying out of so momentous a policy to those who have endeavored to defeat the Mhole undertaking. — President Roosevelt's speech accept- ing- 1904 nomination. The guns that thundered off Manila and Santiago left us echoes of glory, but they also left us a legacy of duty. If we drove out a mediaeval tyranny only to make room for savage anarchy, w^e had better not have begun the task at all. — President Roosevelt in Tlie Strenuo'us Liife, p. 11. When we legislate for Alaska we are acting -vt-ithin the clearly granted authority of the Constitution, and when we legislate for the Philippines ^ve are likewise w^ithin the scope and plain purpose of the Constitution. — Hon. C. W. Fairbanks, in U. S. Senate, February 22, 1902. For years the commerce of the world has demanded an isthmian canal, and recent events give us the assurance that this vast undertaking will be accomplished at an early day under the protection of the American flag. — Hon. C. W. Fairbanks, at St. Paul, Minn,, August 31, 1903. W^e are the trustees and guardians of the* whole Filipino people, and peculiarly of the ignorant masses, and our trust is not discharged until those masses are given education sufUcient ' to know their civil x'ights and maintain them against a more po^verful class and safely to exercise the political franchise. — Hon. Wm. H. Taft, in special report to the President. One vit«l, dominating- fact confronts the Democratic party which no oratory, which no eloquence which no rhetoric can obscure: BRYAN'S NOMINATION MEANS TAFT'S EI.RCTION.- New York World. MERCHANT MARINE. During the past twelve years of Eepublican control American ship-building- has made steady growth in tonnage and improve- ment in design. The closing fiscal year of President Roosevelt's administration is the banner ship-building year in American his- tory. Up to June 20, 1908, the output was 590,231 gross tons (the highest record in any earlier year was 583,450 gross tons), and the few remaining days of the fiscal year will bring the aggregate up to 600,000 tons. Of this large output, however, no vessels were built exclusively for the foreign trade. Were it not for the coasting trade policy, which reserves to American vessels exclusively the transportation of freight and passengers between American ports, doubtless domestic shipyards would have almost entirely disappeared from our seaboard, and even our war vessels would have been built abroad, or if at home, at an enormous increase in cost. Every industrial factor and every act of Congress which tends ^o promote shipbuilding for mer- cantile purposes at the same time renders the United States more capable of producing its own war vessels, and such legis- lation accordingly contributes to national defense. For this reason, if for no other, the Eepublican policy of promoting ship- building at home is entitled to the support of every patriotic citizen. The following table shows the total merchant tonnage (gross register tons) under the American flag, divided according to the trade in which engaged, on June 30 of each year named, and also the gain or loss for each period of four fiscal years, cover- ing the four latest national administrations : Total American merchant shipping. On June 30— Foreign trade. Coasting trade. Sea fisheries. Total. 1892 977,624 829,833 816,796 888 ,-628 861,446 3,700,778 3,790,296 4,286,516 5,335,164 6,010,658 88,524 83,751 61,528 67,743 66,670 4,764,921 1896 4,703,880 1900 . ' . ^ 5,164,839 1904 ^ — - 6,291,535 1907. 6,938,794 Gain or OSS in four years. Foreign trade. Coasting trade. Sea fisheries. Total. 1893-1896 —147,791 — 13,038 71.833 — 27,182 89,523 496,220 1,048,648 675,494 — 2,773 —22,223 6,215 — 1,073 —61,041 1897-1900 _._ . 460,959 1901-1904 , — . 1905-1907* _ — 1,236,696 ♦647,529 *Gain or loss in three years. The returns for June 80, 1908, not yet com pleted, will show a total increase during the four years of over 1,100,000 gross tons. American tonnage built during recent periods of four fiscal years, beginning June 30th : Gross register tons. 1893-1896, inclusive 681,532 1897-1900, inclusive 1,106,518 1901-1904, inclusive 1,767,014 1905-1908, inclusive . .- 1,811,624 In 1896 the production of steel vessels in the United State.s amounted to only 96,331 gross tons; by 1908 it had increased to 425,000 gross tons. Two-thirds of the merchant tonnage of all 450 MERCHANT MARINE. 451 types under the American flag on the sea, on the lakes and the rivers of the United States were built during the administra- tions of Presidents McKinley and Roosevelt. In 1906 115,500 men employed on American steam vessels, valued at $3&6,773,000, were paid $61,265,000 in wages. In 1905 50,750 w^orkmen in American shipj'^ards were paid $29,241,000 in wages. Legislation for Seamen. The Eepublican Party in control of Congress and the execu- tive departments has steadily endeavored to improve the con- ditions of American labor at sea as well as American labor on the laud. At the late session Congress, by the act of April ^, 1908, for the first time provided for Government deter- mination of the nimibers of the; crew of every steam vessel, pas- senger or freight, thereby providing also for the fixing of hours of labor. It also passed an act for the regulation of seagoing barges, the most dangerous form of navigation on our coasts, and thus both gave better protection to the crews on such vessels and at the same time took steps to reduce a serious menace to navigation along our coasts. IMore rigid inspections at home and abroad of the seaworthi- ness of vessels have been prescribed by Congress and the Ad- ministration. As long ago as 1898 a compulsory scale of pro- visions for seamen on American vessels was fixed by law very much superior in the quantity and quality of the food furnished to seamen on other vessels. Indeed, the standard of living on American ships thus provided has already led other nations to legislate in the same direction, thus improving the conditions of labor at sea generally. The same act of December 21, 1898, provided for the prompter payment of wages, already much higher on American than on foreign ships, and for the return of wrecked, sick or injured American seamen from abroad, or from Alaska, Porto Rico, Hawaii, the Philippines and the Canal Zone, at the expense of the Federal Government. Forecastle quarters on American ships are now equal to any on foreign ships and superior to most. Warm rooms are provided in cold weather. The penalty of imprisonment for the seaman's breach of a civil contract has been abolished and all forms of corporal punishment prohibited by heavy penalties. Prompt trials of cases in which a seaman is a party are now required by law. Legislative enactment and administrative effort have been directed successfully against the crimping system by which sea- men have been cheated of their wages. Abuses under the sys- tem of allotment of wages have been reduced to a minimum, and "shanghaiing" on American vessels has practically ceased since the acts of 1906 and 1907, Under these several acts the Fedei-al courts have inflicted heavy penalties on those engaged in de- frauding seamen. Of the act of 1898 the Supreme Court has said : "The story of the wrongs done to sailors in the larger ports, not merely of this nation but of the world, is an oft-told tale, and many have been the efforts to "protect them against such wrongs. One of the most common means of doing these wrongs is the advancement of wages Bad men lure them into haunts of vice, advance a little money to con- tinue their dissipation, and having thus acquired a partial control and by liquor dulled their faculties, place them on board the vessel just ready to sail and most ready to return the advances. When once on shipboard and the ship at sea, the sailor is ^werless and no relief Is availing. It was in order to stop this evil, to protect the sailor, and not to restrict him of his liberty, that this statute was passed. And while in some cases it may operate harshly, no one can doubt that the best interests of the seaman as a class are preserved by such legislation." The wages of seamen on American vessels are much higher than on foreign vessels. Thus the average monthly wages paid at Bremen, the great German seaport, are $16, and at Liverpool $18 for seamen and $20 for firemen. At New York seamen on American vessels are paid $25 and firemen $35 to $40; American engineers and mates are paid double the corresponding British wages. The American S. S. "St. Louis" (11,629 gross tons) has a monthly pay roll of $11,300 for 380 men; the British S. S. "Oceanic" (17,274 grpss tons) pays $9,891 to 427 men, and the German S. S. "Kaiser Wilhelm der Grosse" (14,349 gross tons) 4.')2 MEIfClf.WT M \RI\E. pays monthly only $7,715 to 5l)() iiumi. Thus indirc.-t ly the Amcrifun systrm, which coutril)ntes toward hi^lier wa^es in AiiuM'ican industries on shore, causes also 1l;^lier wages on shiiv h(.:n-- is surpassed only by merchaut shipping under the liiitish flag. In its types and uses, however, our shipping differs radically from the shipping of other maritime nations. It is almost wholly devoted to domestic transportation, and relatively is far below our strength as a naval power. By comparison with our rank in any other of the greav divisions of industrial and commercial endeavor, the position of the United States as an ocean-carrying power is insignificant. It is humble by comparison with the commercial sea power of other leading nations, wit^ which in nearly every other respect we are classed. Even in the discharge of ordinary functions of govern- ment we have jiut ourselves under the protection of foreign flags. Over a year ago it became neeessai-y to dispatch a small force of American troops to Cuba ; they were sent under the British flag. Not one American steamship of any kind now runs to Bra- zil, or Argentina, or Chile, or l*eru. .\n American mail service to those soiithern countries is absolutely nonexistent. Not one American steamship now runs from either our Atlantic or our Pacific coast to Australasia. In the performance of its plain duties the Federal Government has to resort to foreign agencies and foreign protection. There is not to-day another first-class power in a similar position. There is not another which, if it found itself in that position, would allow such conditions to continue longer than until by sufficient expenditure they could be corrected in the shortest possible time. Such expenditures would be as cleai-ly for public purposes as appropriations for the Avvny, the Navy, the Panama Canal, or the postal system. From the messages of their Presidents and the reports of their heads of Departments for many years past the American people have become familiar with the ti'ifling share of Anierican vessels in our own foreign carrying trade and with the fact that an American steamship is almost never seen in the world's sea- ports outside of the Caribbean and the Gulf of Mexico. Last year, for example, only 10.6 per cent, of our combined exports and imports were carried in American ships; our vessels registered for foreign trade aggregated only 871.146 gross tons, a flc^t equaled in tonnage and greatly exceeded in efficiency by the fleet of one foreign shipping corporation, while any one of seve- i-al foreign corporations owns more ocean-going .steam ton- nage than the entire amount of such tonnage registered under the American flag. ^ Mc'Klnley, RooweA'eTf, and Taft on Shipping-. The best ra^eans of restoring the American merchant marine to its former prominence in foreign trade»has been the subject of careful investigation by the leading men of the Republican party during the past twelve years. In his annual message of December 3, 1900, President McKinley said : Foreign .ships should carry the least, not tlie greatest part of Ameri- can trade. The remarkable growth of the steel industries, the progress of shipbuilding for the domestic trade, and our steadily maintained ex- penditures for the Navy have created an opportunity to place the United States in the first rank of commercial maritime powers. Besides realizing a proper national aspiration this will mean the establishment and a healthy growth along all our coasts of a distinctive national industry, expanding the field for the profitable employment of labor and capital. It will increase the transportation facilities and reduce freight charges on the vast volume of products brought from the interior to the seaboard for export, and will strengthen an arm of the national defense upon which the founders of the Government and their successors have relied. Every constructive measure on the subject brought before (•ongress has been TJepublican in origin and principle, and has encountered unbroken Democratic obstruction, save in one in- stance when a Democratic Senator and two Democratic Repre- sentatives patriotically joined with the majority. It is thus a MERCnANT MARINE. 453 moral certainty that, as in most other matters, no constrnctive legislation to advance our maritime interests is to be expected from a Democratic administration or a Democratic House of Eepresentatives. ^ In his first annual report as Secretary of Commerce and Labor, in 1903, Secretary Cortelyou recommended the appoint- ment of a Merchant Marine Commission, and President Jioose- velt in his message to Congress the same year strongly urged the appointment of such a Commission. Accordingly, Congress, in the early part of 1904, created a Merchant Marine Commission of five Senators and five Representatives, who made an exhaustive investigation into shipping. As a result of this investigation after favorable action in the Senate the Republican majority in the House also passed on March 1, 1907. a bill providing for increased American ocean mail facilities which incidentally would have benefited American shipbuilding with its almost infinite subsidi- ary interests, would have improved our means of ocean trans- portation, and would have develo]3ed a merchant fleet auxiliary to the Navy. By the usual Democratic tactics this bill was fili- bustered to death on March 3 ^nd 4, 1907, in the Senate by two Democratic Senators who had been recently rejected by their own States. At the session of Congress just closed the Senate passed a bill to improve our mail service with South America, the Philip- pines, Asia and Australia in exact accord with the recommenda- tion and argimient in President Roosevelt's message of December 3. 1907. That bill is now pending in the House Committee on Post-Offices and Post-Roads and will be considered at the next session of Congress. The bill was also passed by the Senate as part of the Post-Office Appropriation bill, but in this shape lacked eight votes of approval by the House. President Roosevelt's recommendation and argument of December 3, 1907, follows : The time has come, iu my judgment, to set to work seriously to make our ocean mail service correspond more closely with our recent commercial and political development. A beginning was made by the ocean mail act of March 31, 1891, but even at that time the act was known to be in- adequate in various particulars. Since that time events have moved rapidly in our history. We have acquired Hawaii, the Philippines, and lesser islands in the Pacific. We are steadily prosecuting the great work of uniting at the Isthmus the waters of the Atlantic and the Pacific. To a greater extent than seemed probable even a dozen years ago, we may look to an American future on the sea worthy of the traditions of tho past. As the first step in that direction, and the step most feasible at the present time, I recommend the extension of the ocean mail act of 1891. That act has stood for some years free from successful criticism of Its principle and purpose. It was based on theories of the obligations of a great maritime nation, undisputed in our own land and followed by other nation since the beginning of steam navigation. Briefly thoie theories are, that it is the duty of a first-class power so far as practicable, to carry its ocean mails under its own flag : that the fast ocean steam- ships and their crews, required for such mail service, are valuable aux- iliaries to the sea power of a nation. Furthermore, the construction of such steamships insures the maintenance in an efficient condition of the shipyards in wliich our battleships must be built. The expenditure of public money for the performance of such neces- •sary functions of government is certainly warranted, nor is it necessary to dwell upon the incidental benefits of our foreign commerce, to the shipbuilding industry, and to ship owning and navigation which will ac- company the discharge of these urgent public duties, though they, too. should have weight. In an address before the Chamber of Commerce of Trenton, New Jersey, on March 23, 1908, Secretary Taft said : I cannot understand any difference in principle between government assistance to our merchant marine and our protective tariff system, our system of improvement of internal waterways, or any other method by which the general welfare is promoted through the government's assist- ance of particular industries, in which all may engage. Let us hope that the mail subsidy bill will lead to the establishment of direct lines between New York and South America on tlie one hand, and between the Pacific Coast, Japan, China and the Philippines on the other, and that it may be the means of pointing out how a wider system of maintenance of the marine may be inaugurated in the public interest. We are expending from $200,000,000 to $250,000,000 to build a canal across the Isthmus of Panama. Can it be that this canal is to be built solely for vessels of other countries than the United States? Is it true that the flag of the United States will fly over but few merchantmen passing through this great conquest of nature? The work on the canal is going on. The dirt is flying at the rate now of upward of two and one-half million cubic yards a month. We have every hope that six years from next July our battle fleet may be able to ascend through the locks to the new-made lake and to descend on the other side through the locks to the sea. Ought we not in the six years which lie between the present and the mmplelion of the canal to adopt n policy which shall give us a mer- chant marine to justify our expending this enormous sum of money on commercial as well as naval and war strategic grounds? <04 MERCHANT MARINE. Trade ivltli South America. Secretary Root, after his visit to South America and Mexico, whicli opened a new era of Pan- American comity, bring-ing us in closer touch with our sister American Republics, said at the Trans-Mississippi Commercial Congress at Kansas City, on No- vember 20, 1906: It is absolutely essential that the means of communication between North and South America should be improved and increased. This underlies all other considerations and it applies both to the mail, the passenger, and the freight services. Between all the principal South American ports and England, Germany, France, Spain, Italy, lines of swift and commodious steamers ply regularly. There are five sub- sidized flrst-class mail and passenger lines plying between Buenos Ayres and Europe ; there is no such line between Buenos Ayres and the United States. No American steamships run to any South American port beyond the TJaribbean. The mails between South America and Europe are swift, regular, and certain ; between South America and the United States they are slow, ir- regular, and uncertain. Six weeks is not an uncommon time lor a letter to take between Buenos Ayres or Valparaiso and Now York. The mer- chant who wishes to order American goods cannot know when his order will be received or when it will be filled. The freight charges between the South American cities and American cities are generally and sub- stantially higher than between the same cities and Europe. At many points the. delivery of freight is uncertain and its condition upon arrival doubtful. The passenger accommodations are such as to make a journey to the United States a trial to be endured, and a Journey to Europe a pleasure to be enjoyed. The best way to travel between the United States and both the west and the east coast of South America is to go by way of Europe, crossing the Atlantic twice. It is impossible that trade should prosper or intercourse increase or mutual knowledge grow to any great degree under such circumstances. We are a nation of maritime traditions and facility ; we are a nation of constructive capacity, competent to build ships ; we are eminent if not pre-eminent, in the construction of machinery ; we have abundant capital seeking investment ; we have courage and enterprise shrinking from no competition in any field which we choose to enter. Why, then, have we retired from this field In which we were once consplclously successful? I think the answer is twofold : 1. The higher wages and the greater cost of maintenance of American ofllcers and crews make It impossible to compete on equal terms with foreign ships. The scale of living and the scale of pay of American sailors are fixed by the standard of wages and of living in the United States, and those are maintained at a high level by the protective tariff The moment Ihe American passes the limits of his country and engages in ocean transportation he comes Into competition with the lower foreign scale of wages and living. 2. The principal maritime nations of the world, anxious to develop their trade, to promote their shipbuilding Industry, to have at hand trans- ports and auxiliary cruisers in case of war, are fostering their steamship lines by the payment of subsidies. England is paying to her steamship lines between six and seven million dollars a year. It is estimated that since 1840 she has paid to them between two hundred and fifty and three hundred millions. The enormous development of her commerce, her pre- ponderant share of the carrying trade of the world, and her shipyards crowded with construction ordew from every part of the earth indicate the success of her policy. Against fhese advantages to his competitor the American shipowner has to contend ; and It Is manifest that the subsidized ship can afford to carry freight at cost for a long period to drive him out of business. Plainly these disadvantages created by governmental action can be neutralized only by governmental action, and should be neutralized by such action. What action ought our Government take for the accomplishment of this just purpose? Three kinds of action have been advocated: 1. A law providing for free ships — that is, permitting Americans to buy ships In other countries and bring them under the American flag. 2. It has been proposed to establish a discriminating tariff duty In favor of goods imported In American ships— that Is to say, to impose higher duties upon goods imported in foreign ships than are imposed on goods Imported in American ships. We tried that once many years ago and have abandoned It. In its place we have entered Into treaties of commerce and navigation with the principal countries of the world, expressly agreeing that no such discrimination shall be made between their vessels and ours. To sweep away all those treaties and enter upon a war of com- mercial retaliation and reprisal for the sake of accomplishing Indirectly what can be done directly should not be seriously considered. 3. There remains the third and obvious method — of neutralizing the artificial disadvantages imposed upon American shipping through the action of our own Government and foreign governments by an equivalent ad- vantage In the form of subsidy or subvention. In my opinion this is what should be done ; it Is the sensible and fair thing to do. It is what must be done If we would have a revival of our shipping and the desired development of our foreign trade. We cannot repeal the protective tariff ; no political party dreams of repealing It ; we do not wish to lower the standard of American living or American wages. We should give back to the shipowner what we take away from him for the purpose of main- taining that standard ; and unless we do give It back we shall continue to go without ships. Such subventions should not be gifts. They would be at once com- pensation for Injuries Inflicted upon American shipping by American laws and the consideration for benefits received by the whole American people — • not the shippers or the shipbuilders or the sailors alr>ne. but hv pv^rv manufacturer, every miner, every farmer, every merchant whose prosperity denends UDon a market for his nroducts. MERCHANT MARINE. 466 J Foreign Steamsliiii Trusts. The trust question has been uppermost in the minds of the American people during the past few years. An American trust can be dealt with through the instrumentality of American laws, but a foreign trust is beyond our reach. That the commerce of South America is dominated by a foreign steamship trust is well known — a trust that can give rebates at pleasure, and that can and does lower and increase prices according to circum- stances. So far as steamships are concerned this important American trade is now, and for several years has been, monopo- lized by a foreign shipping trust or combination, whose weapons are rebates, discriminations, and boycotting, and whose policies are dictated from Liverpool and Hamburg. Mr. Anderson, the present consul-general at Rio de Janeiro, says of the foreign steamship combination : Merchants complain that the high freight rates obtaining on goods from the United States to Brazil generally continue to act as a deter- rent to trade in general. The conference rates (the conference is the European steamship trust) on goods from the United States to this part of South America are nearly twice as high as freight rates from Asiatic ports to the United States. Ambassador Griscom, at Rio de Janeiro, said in a report of October 1, 1906 : The English company of Lamport & Holt have been running a monthly service (between Rio and New York) with a practical monopoly, and without competition the freights have been prohibitive. It is hoped that we are entering upon a new era, more favorable to merchants who may desire to reach out for trade with Brazil. The crying need of our relations with Brazil is better steamship communication. Inquiry among our leading financiers and merchants indicates that encouragement by our National Government in the form of a small postal or other subvention would quickly bring about the establishment of a good line of American steamers between New York and Rio. Given a few facilities our trade with Brazil must inevitably go ahead with leaps and bounds. Consul-General Anderson has this to say on the subject : High freight rates shut American exporters out of markets which otherwise they might have. Low freight rates, for instance, would enable American millers to ship American flour to ports in Brazil far south of their present limit. Freight rates from New York to Brazil similar to those obtaining between New York and the Far East would mean largely increased sales of American flour. What is true of flour is true of other things. The rebate system adopted by the shipping combine also works directly and materially against small shippers, among the Jatter being most American exporters selling to the Brazilian trade. One or more strong American steamship lines, sufficiently compensated by the Government for the carriage of our mails, will effectTially thwart the schemes of this now all-powerful foreign steamship trust, and secure competition in the trade with South America. Pending Republican Propositions. Briefly stated, the Republican shipping project now before Congress is based on these considerations: (a) Profits of ocean mail service to be devoted to the im- provement of that service. (b) Improvements to be made where most needed. (c) Expenses for the whole ocean mail service not to exceed receipts in any one year. (d) American mail steamships to be employed if possible in extending and improving the service. (e) Export trade to be extended. (f) Facilities for buyers and sellers to make the voyage comfortably between the United States, South America, and Australia. (g) Shipbuilding to be encouraged. (h) Auxiliary naval strength to be increased? With an initial cost of less than $1,500,000 the project con- teniplates with 27 fast steamships (involving- an expenditure Sy shipowners in American shipyards of over $30,000,000 for Ameri- can labor and its products) a fortnightly service to Rio de Janeiro and to Buenos Ayres ; to Manila over two routes across the Pacific, one via Hawaii, one direct, and a service once in three weeks from the Pacific coast to Australasia, the approxi- mate length of each route outward and the compensation to be paid for, twenty-six voyages in a year (or to Australasia eigh-^ teen voyages, as follows : 466 MERCHANT MARINE. Nauti- cal mile-. Yearly compen- sation. Number of ships. Atlantic or Gulf coast to Rio <\c Janeiro _.. Atlantic or Oulf coast to Huenos .Vyrcs 5,000 6,000 7,800 6,500 7,300 $198,000 717,600 932,880 777,400 604,440 6 6 Pacific coa.st via Hawaii to Japan, China, and the Pliilippines I'Mciijc const direct to Japan, China, and the Pacili(! coast via Hawaii to Australasia 4 Total 3,630,320 27 This estimate is for the maximuHi amounts which could be paid in any instance. Tlie actual bids of steamship companies migfht be for smaller amounts and would be sure to be for smaller amounts if there were several bidders. Moreover, the Po.stmaster- (Jeneral in his discretion might decline to pay more than $;} per mile if he believed that this rate was sufficient compensation to secure a service. ForeiKTn Subsidies. Other nations for military, mail, and commercial purposes deem it important to promote their national shipping- in foreign trade by national assistance. The annual grants for these pur- poses at the present time by the principal nations are substan- tially as follows : Suhsidies to shipping. Country. Mail. General. Total. .\ustria-Hungary $1,288,201 82,455 5,019,703 1,825,651 5,204,068 1,757,812 3,417,042 367,468 48,338 63,300 $656,270 $1,944,471 Denmark . _ _ . 82 45.J France - 3,623,720 8,643,423 Germany _ . 1,825,651 Great Britain .. . _. 1,312,200 1.061,639 2,718,465 6,516 268 Italy 2,819 t5l Japan 6,135,507 Netherlands 367 168 Norway 116,018 137 556 Portugal .— 63,300 Russia ' 1,595,701 1 095,701 Spain 1,629,927 81,849 1,629,927 81,849 Sweden Total 20,785,814 11,081,013 31,869,827 Huhsidies and payments for the ocean mail service of Great Britain and the United States from 1870 to J901. [Compiled from official sources.] Great Brllaiu. United States. Mall payments. Total amount paid. Year, British mall aud admiralty subsidies. To American steamers. To foreign steamers. 1870.. $6,107,761 4,860,000 3,873,136 3,612,065 3,662,805 3.625,915 3,490,864 3,184,425 3,827,260 4,142,139 4^77,972 4,328,501 4,442,361 4,574,805 4,450,317 4,516,583 4,716,397 4,801.028 4.743.000 4,371,000 4,017,000 5,536,612 5,170,323.59 ■ 5,035,076.21 4,542,978.75 4,475,067.64 $791,389 740,361 38,780 49,018 43,319 76,727 83.890 109,828 120,170 147,561 -, 259,788 646,031 711.443 633,035 1,027,735 1,288,674 1,038,141 998,211 1,269,660 1,250,381 1,525,313 1,611,794 1,. 587, 108,75 1,651,867.81 1,767,294.88 1,564,372.83 $315,944 236,283 161,029 282,855 286,319 335,946 376,528 505,573 420,507 443,204 478,748.95 495,630.87 461,956.87 429,856.67 394,636.60 392,670.18 437,882.06 487,038.24 518,954 575,666 556,195 597,940 850,268.15 913,413.07 1,028,603.15 1,204,424.28 $1,115,333 1875 976,614 1&80 199,809 1885 331,903 1886 329,391 1887 412,673 1888 463,418 1889 515,401 1890 510,677 1891 590,765 1892 1893 _. 738,537.51 1,141,662.69 1894 1,173,400.80 189r -- 1,062, 892. ;')(> 1896 1,122,372.50 1897 _-. 1,681,344.40 1898 - _- 1,478,023.21 1S99 1900 - — 1,485,250.09 1,788,614 1901 1 826,047 1902 2,081,508 1903 2,209,735 1904 2,137 376.90 1907 _ 2,565.280.88 2,795,898.03 2,768,796.11 MERCHANT MARINE. 4S7 ^^The figures above for British mail and admiralty subsidies lov the year 1907 do not include the new admiralty subsidy of $729,000 a year which is now being paid to the Cunard Company under a 20-year contract by which the British Government ad- vanced $13,000,000 to the company, at 2% per cent interest, in fact g-iving- to that company the two finest ships ever constructed in Eng-land, the "Lusitania" and the "Mauretania," if the company would operate them to carry the mails and hold them in reserve for military purpo.ses, each steamer capable of carrying 10,000 soldiers armed and equipped. Neither do these figures include the sum of approximately $1,250,000 which England has spent annually for some years upon I)icked sailors on her merchant vessels to train them for service on her battleships should ocasion arise and to retain them for the purpose. Value of foreign carrying trade of^the United States in Ameri- can and foreign ve^^cls,etc. — Total United States imports and Exports. [From the Statistical Abstract.] Year By sea. By laud vehlc es. end- ing June In A.mer- ican vessels. Dollars. In foreign vtsselK. Total. Per cent In Ameri- can vessels. Total by land and sea. Dollars. Dollars. Dollars. D J liars. 1860_. 507,247,757 255,040,793 762.288.550 66.5 762. 288.. 550 584,995,066 435,710,714 584,928,502 669,855,034 604,412,996 1,010,938,552 879,165,307 848,527.647 1861 381,516,788 203,478.278 584,995,066 65.2 1862_. 217,695,418 218,015.296 435,710.714 50. """ "" 1863— 241,872,471 313,053,031 584,928,502 41.4 1864.- 184,061,486 485,793,54s 669,865,034 27.5 1865-- 167,402,872 437,010,124 604,412,996 27.7 1866.- 325,711,861 685,226,691 1.010,938,552 32.2 1867— 297,834,904 581,330,403 879,165,807 33.9 1868.- 297,981,573 550,981,074 818,527,647 35.1 1869— 289,956,772 586,492,012 876,448,784 33.2 876.448,784 1870-- 352,969,401 638,927,488 991,896,889 35.6 991.896,889 1,132,472.258 1871- 353,664,172 755,122.576 1,109,486,748 .31.9 "•22^985^510 l'-J72_- .S45,331,101 839,346,362 1,184,677,463 29,2 27,650,770 1.212,328.233 1873- 316,306,592 966,722,051 1,313,029,243 26.4 27,869,97g 1,310,8.J9,221 1874- 350,451,994 939,206,106 1,289,658,100 27.2 23,022,540 1,312,680,640 1875- 314,257,792 884,788,517 1,199,016,309 26.2 20,388.235 1,219,434,514 1876- 311,076,171 .813,354,987 1,124,431,158 27.7 18,473.164 1,142,904,312 1877- 316,660,281 859,920,536 1,176,580,817 26.9 17.464,810 1,194,045,627 1878- 313,050,906 876,991,129 1,190,042,035 26.3 20,477,364 1,210,519,399 1379- 272,015,692 911.269,232 1.183,284.924 23. 19,423,685 1,202,708,609 1880.. 258,346,577 1.224,265, 43i 1,482,612,011 17.4 20,981,393 1,503,593,404 1881- 250,586,470 1,269,002,983 1,519,589,453 16.5 25,452,521 1,545,041,974 1882.. 227,229,745 1.212.978.769 1,440,208,514 15.8 • 34,973,317 1,475,181,831 1883- . 240,420,500 1.258.508,924 1,498,927,924 16. 48,092,892 1,. 547, 020, 318 1884- 233,699,035 1,127.798,199 1,361,497,234 17.2 46,714,068 1,408,211,302 1885- 194,865,743 1,079,518,560 1,274,381,309 15.3 45,332,757 1,319,717,084 1886- 197,349,503 1,073,911,113 1,271,260,616 15.5 43,700,350 1,314,960,966 1887.. 194.356,746 1,165.194,508 1,359.551.2.54 14.3 48,951,725 1,408,502,979 1888- 190,857,473 1,174,637,321 1,. 365, 554, 794 14. 54,356,827 1,419,911,621 1889- 203,805,108 1,217,063,541 1,420,868.649 14.3 66,664,378 1,487,533,027 1890- 202,451,086 1,371,116,744 1.573.567,830 12.9 73,571,263 1,647, 1.39, 0J3 1S91- 206,459,725 1,450,081,087 1,656,540,812 12.5 72,856,194 1,729,397,006 1892- 220,173,735 1,564,559,651 1,784,733,386 12.3 72,947,224 1,857,680,610 •189.S- 197,765,507 1,428, 316,, 568 1,626,082,075 12.2 87,984,041 1,714,066,116 1894- 195,268,216 1,273,022.456 1,468,290,672 13.3 78,844,522 1,547,135,194 1895- 170,507,190 1.285,896,192 1,456,403,388 11.7 83,101,742 1.533.508.130 1896- 187,691,887 1,377,973,521 1,565,665,408 12. 96,666,204 1,662.331,612 1897- 189,075,277 1,525,753,766 1,714,829.043 11. 100,894,925 1,815,723,968 189,S_- 161,328,017 1,582,492,479 1,743,820,496 9.3 103,711,488 1,847,531,984 1890-- 160,612,206 1,646,263,857 1,806,876,063 8.9 117,295,728 1.924,171.791 1900-- 195,084,192 1,894,444,424 2,089,528,616 9.3 154,895.650 2.244,424,263 1901- 177,398,615 1,974,536,796 2.151.935,411 8.2 159,001,745 2,310.937.1.59 lf.02-_ 185,819,987 1,919,029,314 2,104,849,301 8.8 180,191,048 2,285,040.316 1903— 214,695.032 2,026,106,388 2,240,801,420 9.1 205,059.496 2,445,860.916 190L. 229,735,119 2,001,203,514 2,230,938,633 10.3 220.976.009 2,4.51.914,642 1005— 290,607,946 2,103.201,462 2,393,809,408 12.1 242,265,329 2.636,074.737 1906- 322,347,205 2,367,667,354 2,690,014,559 12.0 280,412.387 2.970,426.946 1907.. 318,331,026 2,684,296.291 3. 002, 627.. 317 10.« 312.645.186 8.315.272,503 A nation like that of tlie United States, Tvitli el»lity mil- lions of people, Tvltli resources unexampled in tlie history ol the Tvorld, Tvlth Ideals as high as those of any nation, Tvith the earnest desire to spread the principles of liberty and of ]>opnlar g^overnment, cannot maintain a position of isola- tion -with respect to the peoples of the world Tvhen fate ■hall haAC thrnst some of those peoples under our control. —Hon. Wm. H. Taft, at Cleveland, Ohio. 158 MERCHANT MARINE. [From th« «p««oh of the Hon. J. Sloat Faisfltt, of New York.] Tou will remember there are two great American questions put to •very proposition : First. Is it right? Second. Will it pay? The great prizes of the future are to be won from the waters, not from the lands. Our political well-being and our social integrity and health are all wrapped up in developing a merchant navy large enough to carry our goods to all the open and opening markets of the world in times of peace, and strong enough, in cooperation with our Army and Navy, to protect our coasts, as well as our commerce, in times of war. This can be done, as matters are at present, only by putting up our sub- sidies, or putCing down our wages and reducing our scale of living, but the scale of living will not go backward ; that is too dear a price to pay. If war should come — which Qod forbid — and If our Navy and our Army should^ undertake to meet ideal conditions and strike the swiftest possible blow with the greatest possible force, at the greatest possible distance from home, we should find ourselves utterly unable to meet con- ditions. We could not embark a single Army division of 20,000 men fully armed and fully equipped and prepared for any point, either on the Atlantic or Pacific coast. We cauld not supply the auxiliary transports and hospital ships and other necessary ships for the Navy alone, to sa> nothing of supplying ships to carry and provide for troops. We should be reduced in spite of our glorious Navy, to the ridiculous and dangerou.s, if not the fatal, absurdity of operating our fleet within sight of shore and waiting to receive the attack of the enemy at the enemy's own pleasure and in the enemy's own good way. Our trade rivals subsidize and flourish. We are living on a high plane. We could not and would not reduce the comforts in the lives and homes of our American working people, either at sea or on land, so we must come squarely to the line and give aid, and give it quickly, and give it abundantly In the form of adequate subsidies for services rendered and to be rendered. We must give It not because It will be of advantage to individuals here and there, but In spite of that fact ; not because It will increase the revenues of corporations engaged in deep-sea commerce, but in spite of that fact. We must give it in this way, because it is necessary for the well-being of all our citizens ; because it enables us in times of peace to obtain se- curity In times of war ; we must do It to Insure the best interests of our future ; we must do It because It will pay to do it and because it is right to do It. We must subsldiz* because it is the only way ; because we must be prepared to meet the call of our manifest destiny ; because we cannot shirk the burden put upon us by circumstances, and we must do it quickly — before our ships are all gone, and before our sailors have all disappeared. It is not a question of pride ; it Is not a question of pleasure ; between failure and success, we must choose success ; between humiliation and victory, we must choose victory. We must choose to meet our rivals as gloriously on the seas as we have ever met them on the land. To maintain our merchant victorias by land we must arrange for merchant victories at sea. From First Annual Report of Secretary- of jCommeroe and Labor, Hon. Georgre B. Cortelyon, 1903. For years the condition of our shipping in foreign trade has been a matter of concern to public-spirited Americans. It is vir- tually the only form of commercial and industrial activity in which the country has not recently shown creditable growth. As an industry it holds exceptional relations to Government. From the nature of things, it has been exposed in an unusual degree to foreign competition. These and other considerations make it a fitting subject for our highest statesmanship. Strong appeals in its behalf by our Presidents from the time of General Grant and earnest efforts more recently in Congress have so far brought meager results. Congress has made it the duty of the Depart- ment of Commerce and Labor to foster, promote and develop our shipping interests. Commerce and labor, however, are not the only interests concerned in the improvement of our merchant shipping. Recent legislation and administration have aimed to render more effective the militia of the States as an important factor in the national defense. In our past wars the men and ships of the merchant marine were the reserves that put our Navy on a war footing, and under like circumstances they must perform the same service. Government aid to the merchant ma- rine, in its naval features, should conform closely to our general naval policy. The position among nations now occupied by the United States warrants the maintenance of an ocean mail service equal to that of the United Kingdom or of Germany, in order that like those countries we may possess the best possible facili- ties of communication in our dealings with distant quarters of the world. 'By the establishment of such service other nations have helped to build up their shipbuilding industries and to strengthen their position on the sea. MERCHANT MARINE. 4S9 Ocean Mall Receipt* and Revennes. For some years past the postage collected on our foreign ocean mails has been very much greater than the expenses of our foreign ocean mail service. For the past fiscal year our revenues (postage) from foreign ocean mails were $6,579, 0"43. 48 and expenses $2,941,816.67, .leaving an apparent surplus of $3,637,226.81. From this surplus something (between $500,000 aad $600,000) should be cleducte(f for railroad transportation, so that the actual surplus was about $3,000,000. It is. proposed to apply this surplus of ocean mail revenues to the improvement and extension of the ocean mail service in those directions where improvement and extension are most needed. Receipts, cost and surplus of our foreign mails. Year. Receipts. Cost. Surplus. 1907— $6,579,043.48 6,008,807.53 4,711,215.03 5,095,389.18 4,991,974.54 3,737,318.57 3,005,323.61 3,467,139.26 $2,941,816.67 2,965,624.21 2,670,798.43 2,516,053.03 2,383.588.80 2,245,625.55 2,062.537.16 2.014,537.96 $3,637,226.81 1906 1905 3,043,183.32 2,040,416.60 1904 2,579,336.12 1903 1902 1901 1900 - _ 2,608,385.74 1,491,693.02 942,786.45 1,452,601.30 Shii> Materials Already Free. All materials of every kind required for the construction, equipment or repair of vessels built in this country for the for- eign trade or for the long-voyage coastwise trade between our Atlantic and Pacific seaports are free of duty under sections 12 and 13 of the free list of the Dingley tariff, as follows : . Dingley TarifE Free liist. Sec. 12. That all materials of foreign production which may be nec- essary for the construction of vessels built in the United States for foreign account and ownership, or for the purpose of being employed in the foreign trade, including the trade between the Atlantic and Pad tic ports of the United States, and all such materials necessary for the build- ing of their machinery, and all articles necessary for their outfit aud equipment, may be imported in bond under such pegulations as the Sec- retary of the Treasury may prescribe ; and upon proof that such materials have been used for such purposes no duties shall be paid thereon. But vessels receiving the benefit of this section shall not be allowed to engage in the coastwise trade of the United States more than two months in any one year, except upon the payment to the United States of the duties of which a rebate is herein allowed : provided, That vessels built in the United States for foreign account and ownership shall not be allowed to engage in the coastwise trade of the United States. Sec. 13. That all articles of foreign production needed for the repair of American vessels engaged in foreign trade, including the trade beween the Atlantic and Pacific ports of the United States, may be withdrawn from bond(^ warehouses free of duty under such regulations as the Sec- retary of tne Treasury may prescribe. Under this law not only steel plates and shapes, but articles of equipment so elaborate and costly as ships' compasses, have been imported free of duty for the use of vessels built in this country for the foreign trade and for the coastwise trade be- tween the Atlantic and Pacific. Ocean Freig-lits and Fares. The total amount expended in ocean freights and fares in trade between the United States and foreign countries, both going and coming, is not a matter of official record. From careful computations made by American and foreign authorities it is estimated, however, that in 1906 the fares paid by passen- gers to and fro between the United States and foreign countries amounted to $65,000,000 ; the cost of transporting the mails, both going and coming, to about $5,000,000, and freights on cargoes to $155,000,000, making a grand total of $225,000,000. 460 MERCHANT MARINE. Number and net and gross tonnage of steam and sailing ves- sels of over 100 tons, of the several countries of the world, as recorded in Lloyd's Register for 1907-8. Steam. BalL Flag. Num- ber. Gross tops. Num- ber. Net tons. Total tounagtt. Hfitisli: Uiiiteti Kingdom— Colouiea L 8,292 1,219 15,930,368 1,070,771 1,225 781 1,069,300 250,229 16,999,668 1,321,000 Total — — 9,511 17.001.139 2,006 1,319,529 18,820,668 \iiierican (United States): Sea 1,029 465 83 1,503,059 1,618,718 39,118 1,905 47 29 1.225,652 119,045 6,338 2,728,711 1,737,763 46,454 Lake PhiUppine Islands Total .— 1,577 3.160,895 1,981 1,851.033 4.511.928 Argentine 169 312 131 283 87 501 455 809 1,713 255 397 829 1,181 65 687 468 889 132 295 105,916 677,221 191,597 191,088 107,727 650,955 776,855 1,284,368 3,705,700 421,743 823,325 1,068,747 1,264,002 62,675 720,198 673,301 686,517 106,929 288,913 74 14 2 S 674 381 156 710 6 980 133 672 110 649 170 148 27,155 11,398 1,118 19,597 - 48,589 77,635 36,772 477,415 404,862 44,789 396,084 3,219 654,529 38,363 217,713 35,448 191,031 58,092 .54,825 133,071 fi88,6l9 192,715 210,6!55 156,316 728,. 590 813,627 1,761,733 4,110,562 466 532 Belgian Cliilean Danish < Outeh (ierman ^ Greek Italian 1,219,409 1,071,873 1,918,5.J1 101,038 937,911 708,749 877 518 •Japanese Norwegian ... Portuguese Russian Spanish Swedish Turkish 165,021 343,738 Otiier countries Total 20,746 33,969,811 9,457 5,469,106 39.438,917 Condition of American merchant marine 1880 to 1901. American vessels. Regis- tered ton- nage ofvessels passlnu tnrough 8anltSte Marie Canal. Year. Built Kngaged in foreign trade. Engaged In domes- tic trade. Engaged In com- merce of Great Lakes. 1880 Tons. 157,409 159,056 294,122 369,302 199,633 211,639 131,195 111,602 227,096 232,232 180,458 300,0.38 393,790 483,489 468,8.33 4.36,1.52 378,512 330,316 418,745 Tons. 1.352,810 1.287.998 946,6')5 1,005,950 991,676 899,803 916,180 838,186 844,954 805,. 581 737,709 848,216 826,694 889,129 882,. 555 &S8.776 808,768 951,513 Tons. 2,715.224 2,977,936 3,477,802 3,678,809 3,770,245 3,925,268 3,767,819 3,797,774 3,858,926 3,963,436 4,012,029 4,015,992 4,338,145 4,635,089 4,915,347 5,198,569 5,392,767 5,;502,030 5.735,483 6.0f57,6}8 Tons. 605,102 749,918 1,063.083 1,154,870 1,183,582 1,261,067 1,227,400 1,241,459 1,324,067 1,410,102 1,437,500 1,446,348 1,565,587 1,706,291 1,816,. 511 - 1,902,698 2,019,208 2,062,147 2,234,432 2,439.741 Registered *on8. 1,734,890 1885 1890-... 1891 3,036,937 8,454,435 8,400,685 1892 1893 18.91 10,647,203 8,949,751 13,110,366 1895 16,806,781 1896. 17,249,418 ia97 17,619,933 1898 . . 18,622,754 1899— 21,958,347 1900 22,315,834 1901 1902 1!)03 .. 24,626,976 31,955.582 27,736,446 1901 24,364,1.38 1905. > 36,617,699 1906 . 41,098,324 1907 471,. 332 R7l.1tR 44,0S7,974 The problems that Heemedl to hanaisr over us at the close of the w'a,r t*I11i Spain liHve }?one far to\var«l solution. We of America have discovered that we, too, possesH the supreme ICOvernlnKT capacity, capacity not merely to grovern oiarselves at home, hut that i^reat povrer that in all as,'e<4 has made the difference het^veen the j^reat and the small i»n(ioBis, tlie r-auacity to srovern mevi wherever they were f,-»aiid. — 1^1 thu Koot «t In ion I,enj;ue. \ew York. I-^eb. l\. 1!M>4. REPUBLICAN NATIONAL PLATFORM OF J 908. Once more the JJepiiblican Party, in National Convention as- sembled, submits its cause to tlie people. This great historic or- ganization, that destroyed slavery, preserved the Union, restored credit, expanded the national domain, established a sound finan- cial system, developed the industries and resources of the coini- try, and gave to the nation her seat of honor in the councils of the Avorld, now meets the new problems of government with the same courage and capacity with which it solved the old. Republican ism L'nder lioosevclt. In this greatest era of American advancement the Kepiiblican Party has reached its highest service under the leadership of Theodore Roosevelt. His administi-atiou is an epoch in American history. In no other period since national sovereignty was won, under Washington, or preserved vmder Lincoln, has there been such might^^ progress in those ideals of government which make for justice, equality, and fair dealing among men. The highest aspirations of the American people have found a voice. Their most exalted servant represents the best aims and worthiest purposes of all his countrymen. American manhood has been lifted to a nobler sense of duty and obligation. Conscience and courage in public station and higher standards of right and wrong in private life have become cardinal principles of political faith; capital and labor have been brought into closer rehitions of con- fidence and interdependence ; and the abuse of wealth, the tyranny of power, and all the evils of privilege and favoritism have been put to scorn by the simple, manl3- virtues of justice and fair play. The great accomplishments of President Roosevelt have been, first and foremost, a brave and impartial enforcement of the law ; the prosecution of illegal trusts and monopolies ; the exposure and punishment of evil-doers in the xwblic service ; the more effective regulation of the rates and service of the great trans- portation lines ; the complete overthrow of preferences, rebates, and discriminations ; the ai-bitration of labor disputes ; the ame- lioration of the condition of wage-workers everywhere ; the con- servation of the natural resoui-ces of the country; the forward step in the improvement of the inland waterwaj^s, and always the earnest support and defense of every wholesome safeguard which has m^ade more secure the guaranties of life, liberty, and ijrop- erty. These are the achievements that will make Theodore Roose- velt his place in history, but more than all else the great things he has done will be an inspiration to those who have yet greatc- things to do. We declare our unfaltering adherence to the poli- cies thus inaugurated, and pledge their continuance under a Re- publican administration of the Government. Equality of Opportunity. Under the guidance of Republican principles the AmericaTi people have become the richest nation in the world. Our wealth today exceeds that of England and all her colonies, and that of France and Germany combined. When the Republican Party was born the total wealth of the country was $16,000,000,000. It has leaped to $110,000,000,000 in a generation, while Great Britain has gathered but $(50,000,000,000 in five hundred years. The United States now owns one-fourth of the world's wealth and makes one-third of all modern manufactured products. In the great necessities of civilization, such as coal, the motive power of all activity; iron, the chief basis of all industry; cotton, the staple foundation of all fabrics ; wheat, corn, and all the agricul- tural products that feed mankind, America's supremacy is uu- 461 4«2 liEPUBLICAN NATIONAL PLATFORM OF 1908. (lisputeil. And yet her great natural wealth has been scarcely toMched. We have a vast domain of three million square miles, literally bursting with latent treasure, still waiting the magic of capital and industry to be converted to the practical uses of nuinkind; a country rich in soil and clihiate, in the iinharnessed energy of its rivers, and in all the varied products of the field, the forest, and the factory. With gratitude for God's bounty, with pride in the splendid productiveness of the past, and with confidence in the plenty and prosperity of the future the liepub- lican I'arty declares for the principle that in the development and enjoyment of wealth so great and blessings so benign there shall be equal opportunity for all. The Revival of BnsineHM. Nothing so clearly demonstrates the sound basis upon which our commercial, industrial, and agricultural interests are founded, and the necessity of promoting their continued welfare through ihc operation of Kepublican policies, as^the recent safe passage of the American people through a financial disturbance which, if appearing in the midst of Democratic rule or the menace of it, might have equaled the familiar Democratic panics of the past. We congratulate the people upon this renewed evidence of Ameri- can supremacy and hail with confidence the signs now manifest of a complete restoration of business prosperity in all lines of trade, commerce, and manufacturing. Recent Republican Legrlslation. Since the election of William McKinley in 1906 the people of this country have felt anew the wisdom of intrusting to the Re- publican Party through decisive majorities the control and direc- tion of national legislation. The many wise and progressive measures adopted at recent sessions of Congress have demonstrated the patriotic resolve of Republican leadership in the legislative department to keep step in the forward march toward better government. Notwithstanding the indefensible filibustering of a Demo- cratic minority in the House of Representatives during the last session many wholesome and progressive laws were enacted, and we especially conmiend the passage of the emergency currency bill, the appointment of the national monetary commission, the employers' and Government liability laws, the measures for the greater efficiency of the Army and Navy, the widows' pension bill, the child labor law for the District of Columbia, the new statute for the safety of railroad engineers and firemen, and many other acts conserving the public welfare. Republican Pledges for the Future. Tariff. The Republican Party declares nnequivocally for the revision of the tariff by a special session of Congress immediately follow- ing the inauguration of the next President, and commends the steps already taken to this end in the work assigned to the appro- priate committees of Congress which are now investigating the operation and effect of existing schedules. In all tariff legislation the true principle of protection is best maintained by the impo- sition of such duties as will equal the difference between the cost of production at home and abroad, together with a reasonable profit to American industries. We favor the establishment of maximum and minimum rates to be administered by the President under limitations fixed in the law, the maximum to be available to meet discriminations by foreign countries against American goods entering their markets, and the minimum to represent the normal measure of protection at home, the aim and purpose of the Republican policy being not only to preserve, without exces- sive duties, that security against foreign competition to which American manufacturers, farmers, and producers are entitled, but also to maintain the high standard of living of the wage-earners of this country, who a^re the most direct beneficiaries of the pro- tective system. Between the United States and the Philippines we believe in a free interchange of products with such limitations as to sugar and tobacco as will afford adequate protection to domestic interests. REPUBLICAN NATIONAL PLATFORM OF 1908. 468 Currency. We approve the emergency measures adopted by the Govern- ment during the recent financial disturbance, and especially commend the passage by Congress at the last session of the law designed to protect the country from a repetition of such strin- gency. The Itepublican Party is committed to the development of a permanent currency system responding to our great needs, and the appointment of the National Monetary Commission by the present Congress, which will impartially investigate all proposed methods, insures the early realization of this purpose. The pres- ent currency laws have fully justified their adoption, but an ex- panding commerce, a marvelous growth in wealth and popula- tion, multiplying the centers of distribution, increasing the de- mand for the movement of crops in the West and South, and en- tailing periodic changes in monetary conditions disclose the need of a more elastic and adaptable system. Sueh a system must meet the requirements of agriculturists, manufacturers, merchants, and business men generally, must be automatic in operation, minimiz- ing the fluctuations in interest rates, aud, above all, must be in harmony with that llepublican doctrine which insists that every dollar shall be based upon and as good as gold. Postal Savings. We favor the establishment of a postal savings bank system for the convenience of the people and the encouragement of thrift. Trusts. The Kepublican Party passed t^e Sherman Anti-trust law over Democratic opposition aud enforced it after Democratic derelic- tion. ]t has been a wholesome instrument for good in the hands of a wise and fearless administration. But experience has shown that its effectiveness can be strengthened and its real objects better attained by such amendments as will give to the Federal Government greater supervision and control over and secure greater publicity in the management of that class of corpora- tions engaged in interstate conunerce having power and oppor- tunity to effect monopolies. Railroads. We approve the enactment of the railroad rate law and the vigorous enforcement by the present administration of the stat- utes against rebates and discriminations, as a result of which the advantages formerly possessed bj^ the large shipper over the small shipper have substantially disappeared; and in this con- nection we commend the appropriation by the present Congress to enable the Interstate Commerce Commission to thoroughly in- vestigate and give jniblicity to the accounts of interstate rail- roads. We believe, however, that the interstate commerce law should be further amended so as to give railroads the right to make and publish traffic agreements subject to the approval of the Commission, but maintaining always the principle of competition between naturally competing lines and avoiding the common con- trol of such lines by any means whatsoever. W^e favor such national legislation and supervision as will prevent the futur<« overissue of stocks and bonds by interstate carriers. Railroad and Government Employees. The enactment in constitutional form at the present session of Congress of the employers' liability law, the passage and en- forcement of the safety appliance statutes, as well as the addi- tional protection secured for engineers and firemen, the reduction in the hours of labor of trainmen and railroad telegraphers, the STiccessful exercise of the powers of mediation and arbitration between interstate railroads and their employees, and the law making a beginning in the policy of compensation for injured employees of the Government, are among the most commendable accomplishments of the present administration. But there is further work in this direction yet to be done, and the Hepublican Party pledges its continued devotion to every cause that makes for safety and the betterment of conditions among those whose labor contributes so much to the progress and welfare of the country. 464 REPUBLICAN NATIONAL PLATFORM OF 1908. Wage-earners Generally . The same wise policy which has induced the Republican Party to maintain protection to American labor, to establish an eight hour day in the construction of all public works, to increase the list of employees who shall have preferred claims for wages under the bankruptcy laws, to adopt a child labor statute for the District of Columbia, to direct an investigation into the condi- tion of working women and children and, later, of employees of telephone and telegraph companies engaged in interstate busi- ness, to appropriate $150,000 at the recent session of Congress in order to secure a thorough inquiry into the causes of catastro- phes and loss of life in the mines, and to amend and strengthen the law prohibiting the importation of contract labor, will be pursued in every legitimate direction within Federal authority to lighten the burdens and increase the opportunity for happiness and advancement of all who toil. The Republican Party recog- nizes the special needs of wage-workers generally, for their well being means the well being of all. But more important than all other considerations is that of good citizenship, and we espe- cially stand for the needs of every American, whatever his occu- pation, in his capacity as a self-respecting citizen. Court Procedure. The Republican Party will uphold at all times the authority and integrity of the courts. State and Federal, and will ever in- sist that their powers to enforce their process and to protect life, liberty, and property shall be preserved inviolate. We believe, how- ever, that the rules of procedure in the Federal Courts with re- spect to the issuance of the wait of injunction should be more ac- curately defined by statute, and that no injiinction or temporary restraining order should be issued without notice, except where irreparable injury would result from delay, in which case a speedy hearing thereafter should be granted. TJte American Farmer. Among those whose welfare is as vital to the welfare of the whole country as that of the wage-earner is the American farmer. The prosperity of the country rests peculiarly upon the prosper- ity of agriculture. The Republican Party during the last twelve years has accomplished extraordinary work in bringing the re- sources of the National Government to the aid of the farmer, not only in advancing agriculture itself, but in increasing the conven- iences of rural life. Free rural mail delivery has been established; it now reaches millions of our citizens, and we favor its extension until every community in the land receives the full benefits of the postal service. We recognize the social and economical advantages of good country roads, maintained more and more largely at pub- lic expense, and less and less at the expense of the abutting owner. In this work we commend the growing practice of State aid, and we approve the efForts of the National Agricultural De- partment, by experiments and otherwise, to make clear to the public the best methods of road construction. Rights of the Negro. The Republican Party has been for more than fifty years the consistent friend of the American negro. It gave him freedom and citizenship. It wrote into the organic law the declarations that proclaim his civil and political rights, and it believes today that his noteworthy progress in intelligence, industry, and good citizenship has earned the respect and encouragement of the nation. We demand equal justice for all men, without regard to race or color; we declare once more, and without reservation, for the enforcement in letter and spirit of the Thirteenth, Four- teenth, and Fifteenth Amendments to the Constitution, which were designed for the protection and advancement of the negro, and we condemn all devices that have for their real aim his disfranchise- ment for reasons of color alone as unfair, un-American, and re- pugnant to the supreme law of the land. Xutiiral Resources and Watcricaiis. We indorse the msovement inaugurated by the administratio'n for the conservation of natural resources; we approve all meas- REPUBLICAN NATIONAL PLATFORM OF 1908. 465 ures to prevent the waste of timber ; we commend the "work now going- on for the reclamation of arid lands, and reaflfirm the Ee- publican policy of the free distribution of the available areas of the public domain to the landless settler. No obligation of the future is more insistent and none will result in greater blessings to posterity. In line with this splendid undertaking- is the fur- ther duty, equally imperative, to enter upon a systematic improve- ment upon a large and comprehensive plan, just to all portions of the country, of the waterways, harbors, and great lakes, whose natural adaptability to the increasing traffic of the land is one of the g-reatest gifts of a benig-n Providence. The Army and Navy. The Sixtieth Cong-ress passed many commendable acts in- creasing the efficiency of the Army and Navy, making the militia of the States an integral part of the national establishment, authorizing- joint maneuvers of army and militia, fortifying new naval bases and completing- the construction of coaling sta- tions, instituting a female nurse corps for naval hospitals and ships, and adding two new battleships, ten torpedo boat de- strojers, three steam colliers, and eight submarines to the strength of the Navy. Although at peace with all the world, and secure in the consciousness that the American people do not de- sire and will not provoke a war with any other country, we nevertheless declare our unalterable devotion to a policy that will keep this Eepublic ready at all times to defend her traditional doctrines, and assure her appropriate part in promoting perma- nent tranquillity among the nations. Protection of American Citizens Abroad. We commend the vigorous efforts made by the Administration to protect American citizens in foreign lands, and pledge our- selves to insist upon the just and equal protection of all our citi- zens abroad. It is the unquestioned duty of the Government to procure for all our citizens, without distinction, the rights to travel and sojourn in friendly countries, and we declare our- selves in favor of all proper efforts tending to that end. Extension of Foreign Commerce. Under the administration of the Republican Party the for- eign commerce of the United States has experienced a remark- able growth until it has a present annual valuation of approxi- mately three billions of dollars, and gives employment to a vast amount of labor and capital which would otherwise be idle. It has inaugurated, through the recent visit of the Secretary of State to South America and Mexico, a new era of Pan-American commerce and comity, which is bringing us into closer touch with our twenty sister American Republics, having a conynou historical heritage, a Republican form' of government, and offer- ing us a limitless- field of legitimate commercial expansion. Arbitration and The Hague Treaties. The conspicuous contributions of American statesmanship to the great cause of international peace, so signally advanced in The Hague conferences, are an occasion for just pride and gratifi- cation. At the last session of the Senate of the United State& eleven Hague conventions were ratified, establishing the rights of neutrals, laws of war on land, restriction of submarine mines, limiting the use of force for the collection of contractual debts, governing the opening of hostilities, extending- the application of Geneva principles, and, in many ways, lessening the evils of war and promoting the peaceful settlement of international contro- versies. At the same session twelve arbitration conventions with great nations were confirmed and extradition, boiindary, and nat- uralization treaties of supreme importance were ratified. We in- dorse such achievements as the highest duty a people can per- form and proclaim the obligation of further strengthening the bonds of friendship and good-will with all nations of the world. Merchant Marine. We adhei'e to the Republican doctrine of •mcouragement to American shipping- and urge such legislation as will revive the 466 REI'UIiLlCAN NATIONAL VJjATFORM OF tmR. inerihaut inarino prest.ig-e of the country, so essential to national ilefense, the enhir<>^enient of f«)r«Mi>-ii tnxle. and tlie indusi rjiil pros- l)erity of onr own people. Veterans of the Wars. Another Republican policy which must be ever maintained Is that of generous provision for those who have fought the coun- t ry's battles and for the widows and orphans of those who have fallen. We eomniend the increase in the widows' pensions niadi' by the present Congress, and declare for a liberal administration of all pension laws, to the end that the ])eople's gratitude may grow deeper as the memories of heroic saci'ificc grow more sacred with the passing years. ' Civil Service. We reaffirm oui- former declaiation that the civil .service laws, enacted, extended, and enforced by the Kepublican Party, shall continue to be maintained and obeyed. I'Khlic llralth. We commend the elTorts designed to secure greater efficiency in National ))ublic health agencies, and favor- such Icgishition as will efTect this purpose. Bureau of Mines and Mining, In the interest of the great mineral industries of our country, we earnestly favor the establishment of a Bureau of Mines and Mining. Cuba, Porto Rico, PhilipinncH, and Panama. The American (iovernment, in Kepublican hands, has freed Cuba, giving peace and protection to Porto Rico and the Philip- pines under our flag, and begun the construction of the Panama Canal. The present conditions in Cuba vindicate the wMsdom of maintaining between that Kepublic and this imperishable bonds of mutual interest, and the hope is now expressed that the Culian people will soon again be ready to assume complete sovereignty over their land. In Porto Rico the Government of the United States is meeting loyal and patriotic support ; order and prosperity prevail, and the well-being of the people is in every respect promoted and, con- served. We believe that the native inhabitants of Porto Rico should be at once collectively made citizens of the United States, and that all others properly qualified under existing laws residing in said island should have the privilege of becoming naturalised. In the Philippines insurrection has been suppressed, law es- tablished, and life and property made secure. Education and prac- tical experience are there advancing the capacity of the people for government, and the policies of McKinley and Roosevelt are lead- ing the inhabitants step by step to an ever-increasing measure of home rule. Time has justified the selection of the Panama route for the great Isthmian Canal, and events have shown the wisdom of se- curing authority over the zone through which it is to be built. The work is now progressing with a rapidity far beyond expec- tation, and already the realization of the hopes of centuries has come within the vision of the near future. Xciv Mexico and Arizona. We favor the immediate admission of the Territories of New Mexico and Arizona as separate States in the Union. Centenary of the Birth of JAncoln. February 12. 1909. will be the one hundredth anniversary of Ihe birth of Abraham Li-ficoln, an immortal spirit whose fame has brightened with the receding years, and whose name stands imong the first of those given to the world by the great Republic. We recommend that this centennial anniversary be celebrated throughout the confines of the nation by all the people thereof, and especially by the ])ublic schools, as an exercise to stir the patriotism of the youth of the land. REPUBLICAN NATIONAL PLATFORM OF 1908. 467^ Democratic Incapacity for Government. We call the attention of the American people to the fact that none of the great measures here advocated by the Republican Party could be enacted and none of the steps forward here pro- posed could be taken under a Democratic administration or under one in which party responsibility is divided. The continuance of present policies, therefore, absolutely requires the continuance in power of that party which believes in them and which possesses the capacity to put them into operation. Fundamental Differences BetTreen Democracy and Republi- canism. Beyond all platform declarations there are fundamental dif- ferences between the Republican Party and its chief opponent which makes the one worthy and the other unworthy of public trust. In history the difference between Democracy and Republican- ism is that the one stood for debased currency, the other for honest currency; the one for free silver, the other for sound money ; the one for free trade, the other for protection ; the one for the conti-action of American influence, the other for its ex- pansion ; the one has b^en forced to abandon every position taken on the great issues before the people, the other has held and vindicated all. In experience, the difference between Democracy and Rej^ubli- canism is that one means adversity, while the other means jsros- perity ; one means low w^ages, the other means high ; one means doubt and debt, the other means confidence and thrift. In principle, the difference between Democracy and Republi- canism is that one stands for vacillation and timidity in govern- ment, the other for strength and purpose ; one promises, the other performs; one finds fault, the other finds work. The present tendencies of the two parties are even more marked by inherent differences. The trend of Democracy is to- ward socialism, while the Republican Party stands for a wise and regulated individualism. Socialism would destroy wealth. I^e- . })ublicanism would prevent its abuse. Socialism would give to ^ each an equal right to take ; Republicanism would give to each an equal right to earn. Socialism would offer an equality of pos- session which woiild soon leave no one anything to possess; Re- publicanism would give equality of opportunity which would as- sure to each his share of a constantly increasing sum of posses- sions. In line with this tendency the Democratic party of to-day believes in government ownership, while the Republican Party believes in government regulation. Ultimately Democracy would have the nation own the people, while Republicanism would have the people own the nation. Upon this platform of principles, of purposes, reaffirming our adherence to every Republican doctrine proclaimed since the birth of the party, we go before the country asking the suppoi't not only of those who have acted with us heretofore, but of all our fellow-citizens who. regardless of past political differences, unife in the desire to maintain the policies, perpetuate the blessings, and make secure the achiev^ements of a srreater America. Our free trade friends have told us for years and years that if Ave do not hny ^ve cannot sell, l>ut ^ve have grone <»n doiit|£' hoth at a ^vondronsly increasing" rate, hut selling;;' .inst enough more than -\ve buy to meet all foreign obli- gations and keep our Kold as a bulwark of redemption. That has been the Republican method, and that is groin^- to continue to be the Republican method. — Hon. James S. Sher- man. ^Ve were passing- into a regime of au Irresponsible l>luiocracy. During the last four years there has been a great moral awakening to this danger among the people and a popular demand that the lav^'breakers — no matter ho^v ■tvealthy or how higli or powerful their position — shall be made to suffer. Under the leadersliip of Theodore Hoose- A-elt the Republican party has not faltered in its detertnina- tion to meet the rennircments of this situation and to en- act such legislation as may be necessary to bring to a close litis T»«»ri*T»l of illegitimnfe corporate immunity. — Hon. 'Wm. II. Tuft, sit Kansas City, Mo. THE DEMOCRATIC NATIONAL PLAT- FORM OF J 908. We, the representatives of the Democracy of the United States, in National Convention assembled, reaffirm onr belief in, and pledge our loyalty to, the principles of the party. We rejoice at the increasing signs of an awakening through- out the country. The various investigations have traced graft and political corruption to the representatives of jiredatory wealth, and laid bare the unscrupulous methods by which they have debauched elections and preyed upon a defenseless public through the subservient officials whom they have raised to place and power. The conscience of the nation is now aroused to free the Government from the grip of those who have made it a business asset of the favor-seeking corporations. ^It must become ag.iin a people's government, and be administered in all its departments according to the Jeffersonian maxim — "equal rights to all; special privileges to none." "Shall the people rule?" is the overshadowing issue which manifests itself in all the questions now imder discussion. Increase of Ofiice Holders. Coincident with the enormous increase in expenditures is a like addition to the number of officeholders. During the past year 23,784 were added, costing $16,156,000 and in the past six years of llepublican administration the total number of nevv offices created, aside from any commissions, has been 99,319, entailing an additional expenditure of nearly $70,000,000 as against only 10,279 new offices created under the Cleveland and McKinley administrations, which involved an expenditure of only $6,000,000. We denounce this great and growing increase in the number of officeholders as not only imnecessary and wasteful but also as clearly indicating a deliberate purpose on the part of the administration to keep the Republican party in power at public expense by thus increasing the number of its retainers and dependents. Such procedure v\^e declare to be no less dangerous and corrupt than the open purchase of votes at the polls. / li^couonky in Adniinistratiou. The Republican Congress in the session just ended made appropriations amounting to $1,008,000,000, exceeding the total expenditures of the past fiscal year by $90,000,000 and leaving a deficit of more than $60,000,000 for the fiscal year just ended. W^e denounce the heedless waste of the people's money which has resulted in this appalling increase as a shameful violation of all prudent considerations of government and as no less than a crime against the millions of working men and women from whose earnings the great proportion of these colossal sums mast be extorted through excessive tariff exactions and other indirect methods. It is not surprising that in the face of this shocking record the Republican platform contains no reference to econom- ical administration or promise thereof in the future. W^e demand that a stop be put to this frightful extravagance, and insist upon the strictest economy in every department compatible with frugal and efficient administration. , ..,.y j^i'y in cases of indirect contempt. (^A^ Questions of judicial practice have arisen especially in con- nection with industrial disputes. We deem that the parties to all judicial proceedings should be treated with rigid ^impar- tiality, and that injunctions should not be issued in any cases in which injunctions would not issue if no industrial dispute were involved. (^ The expandtng organization of industry makes it essential that there should be no abridgment of the right of wage earners and producers to organize for the protection of wages and the improvement of labor conditions, to the end that such labor organizations and their members should not be regarded as illegal combinations in restraint of trade. We favor the eight-hour day on all Government work. We pledge the Democratic party to the enactment of a law by Congress, as far as the Federal jurisdiction extends, for a general employers' liability act covering injury to body or loss of life of employees. We pledge the Democratic party to the enactment of a law creating a Department of Labor, represented separately in the President's Cabinet, in which Department shall be included the subject of mines and mining. Merchant Marine. We believe in the upbuilding of the ^^nerican merchant marine without new or additional burdens upon the people and without bounties from the public treasury. The Navy. The constitutional provision that a navy should be pro- vided and maintained means an adequate navy, and we believe DEMOCRATIC NATIONAL PLATFORM OF 1908. 473 that the interests of this country would be best served by having a navy sufficient to defend the coasts of this country and pro- tect American citizens wherever their rights may be in jeopardy. Protection of American Citizen*. We pledge ourselves to insist upon the just and lawful pro- tection of our citizens at home and abroad, and to use all proper methods to secure for them, whether native born or natural- ized, and without distinction of race or creed, the equal pro- tection of the law and the enjoyment of all rights and priv- ileges open to them under our treaties ; and if, under existing treaties, the right to travel and sojourn is denied to American citizens, or recognition is withheld from American passports by any countries on the ground of race or creed, we favor prompt negotiations with the governments of such countries to secure the removal of these unjust discriminations. We demand that all over the world a duly authenticated passport issued by the Government of the United States to an American citizen shall be proof of the fact that he is an American citizen and shall entitle him to the treatment due him as such. Civil Service. The laws pertaining to the civil service should be honestly and rigidly enforced, to the end that merit and ability shall be the standard of appointment and promotion rather than service rendered to a political party. » Pensions. We favor a generous pension policy, both as a matter of justice to the surviving veterans and their dependents, and because it tends to relieve the country of the necessity of maintaining a large standing army. Health Burean ^ We advocate the organization of all existing national pub- lic health agencies into a national bureau of public health with such power over sanitary conditions connected with fac- tories, mines, tenements, child labor and other such subjects as are properly within the jurisdiction of the Federal Government and do not interfere with the power of the States controlling public health agencies. A§rriciiltnral and Meclianical Kdncation. '* The Democratic party favors the extension of agricultural, mechanical and industrial education. We therefore favor the establishment of district agricultural experiment stations and secondary agricultural and mechanical colleges in the several States. Popular Election of Senators. We favor the election of United States Senators by direct vote of the people, and regard this reform as the gateway to other national reforms. Oklalioma. We welcome Oklahoma to the sisterhood of States and heart- ily congratulate her upon the auspicious beginning of a great career. Panama Canal. We believe that the Panama Canal will prove of great value to our country, and favor its speedy completion. Arizona and Vleyv Mexico. The National Democratic party has for the last sixteen years labored for the admission of Arizona and New Mexico as "separate States of the Federal Union, and recognizing that each possesses every qualification sucsessfully to maintain sej)arate State governlnents, we favor the immediate admission of these Territories as separate States. 474 DEMOCRATIC NATIONAL PLATFORM OF 1908. GrasinK' Ineil by the fathers of the Constitution to be the popular branch of our government, responsive to the public will," and adds : '"J'he House of Representatives, as controlled in recent years by the iiepublican party, has ceased to be a deliberative and ie{?islative Ixxly, responsive to the will of a majority of the members, but has come under the absolute dominion of the Sl)eaker, who has entire control of its deliberations and powers of leg-islation. '*\\'e have observed with amazement the popular branch of our federal government helpless to obtain either the considera- tion or enactment of measures desired by a majority of its members." • This arraignment is fully justified. The reform Republicans ill the House of Representatives, when in the minority in their own party, are as helpless to obtain a hearing- or to secui'e a vote upon a measure as are the Democi-ats. In the recent .session of the present Congress there was a considerable element in the Kepublican party favorable to remedial legislation; but a few leaders, in control of t?he organization, despotically suppressed these members, and thus forced a real majority in the House to submit to a well-organized minority. The Republican Na- tional Convention, instead of rebuking this attack upon popular government, eulogized Congress and nominated as the Republican candidate for Vice-President one of the men who shared in the responsibility for the coercion of the House. Our party demands that "the House of Representatives shall again become a deliber- ative body, controlled by a majority of the people's representa- tives, and not by the Speaker," and is pledged to adopt "such rules and regulations to govern the House of Representatives as will enable a majority of its members to direct its delibera- tions and control legislation." "Shall the people rule?" They cannot do so unless they can control the House of Representatives, and through their repre- sentatives in the Honse give expression to their purposes and their desires. The Republican party is committed to the methods now in vogue in the House of Representatives ; the Democratic party is pledged to such a revision of the rules as will bring the popular l)ranch of the federal government into harmony with the ideas of those who fran)ed our Constit\ition and founded our government. Other Issues will 1>e Discussed I^ater. "Shall the people rule?" I repeat, is declared by our plat- form to be the overshadowing question, and as the campaign progresses I shall take occasion to discuss this question as it manifests itself in other issues; for whether we consider the tariff question, the tru.st question, the railroad question, the banking question, the labor question, the question of imperialism, the development of our waterways, or aiay other of the nu- merous problems which press for solution, we shall find that the r«al (juestion involved in each is, whether the government shall remain a mere business asset of favor-seeking corporations or be an instrument in the hands of the people for the advance- ment of the common weal. Democratic Party Has Earnetl Confidence. If the voters are satisfied with the record of the Republican party and with its management of public affairs we cannot rea- sonably ask f o^ a change in administration ; if, however, the voters feel that the people, as a whole, have too little influence in shaping the policies of the Government; if they feel that great combinations of capital have encroached upon the rights of the; ma.s.ses and employed the instrumentalities of government to secure an unfair .share of the total wealth produced, then we have a right to expect a verdict again.st the Republican partv and in favor of the Democratic party ; for our party has risked SPEECH OF WILLIAM JENNINGS BRYAN. 483 defeat — aye, suffered defeat — in its effort to arouse tlie conscience of the public and to bring- about that very awakening to which Mr. Taft has referred. Only those are worthy to be ijitrusted with leadership in a gi-eat cause who are willing to die for it, and the Democratic party has proven its worthiness by its refusal to purchase vic- tory by delivering the people into the hands of those who have despoiled them. In this contest between Democracy on the one side and plutocracy on the other the Democratic party has taken its position on the side of equal rights, and invites the opposition of those who use politics to secure special privileges and governmental favoritism. Gauging the progress of the nation, not by the happiness, or wealth or refinement of a few, but "by the prosperity and advancement of the average man," the Democratic party charges the Kepublican party with being the promoter of present abuses, the opponent of necessary rem- edies and the only bulvyark of private monopoly. The Demo- cratic party affirms that in this campaign it is the only party, having a prospect of success, which stands for justice in govern- ment and for equity in the division of the fruits of industry. Democratic Party Defender of Honest Wealth. We may expect those who have committed larceny by law and purchased immunity with their political influence to attempt to raise false issues and to employ "the livery or Heaven" to conceal their evil purposes, but they can no longer deceive. The Democratic party is not the enemy of any legitimate industry or of honest accumulations. It is, on the contrary, a friend of industry and the steadfast protector of that wealth which represents a service to society. The Democratic party does not seek to annihilate all corporations ; it simply asserts that as the Government creates corporations, it must retain the power to regulate and control them, and that it should not permit any corporation to convert itself into a monopoly. Surely we should have the co-operation of all legitimate corporations in our effort to protect business and industry from the odium which lawless combinations of capital will, if unchecked, ca.st upon them. Only by the separation of the good from the bad can the good be made secure. Not Revolution, but Reformation. The Democratic party seeks not revolution, but reformation, and I need hardly remind the student of history that cures are mildest when applied at once ; that remedies increase in severity as their application is postponed. Blood poisoning may be stopped by the loss of a finger today ; it may cost an arm tomorrow or a life the next day. So poison in the body politic cannot be removed too soon, for the evils produced by it increase with the lapse of time. That there are abuses which need to be remedied even the Republican candidate admits; that his party is unable to remedy them has been fully demon- strated during the last ten years. I have such confidence in tiie intelligence" as well as the patriotism of the people that I cannot doubt their readiness to accept the reasonable reforms which our party proposes, rather than permit the continued growth of existing abuses to hurry the coimtry on to remedies more radical and more drastic. Onr Party's Ideal. The platform of our party closes with a brief statement of the party's ideal. It favors "such" an administration of the government as will insure, as far as human wisdom can, that each citizen shall draw from society a reward commensurate with his contribution to the welfare of society." Governments are good in proportion as they assure to each member of society, so far as governments can, a return com- mensurate with individual merit. The Divine La^v of Revrards. There is a divine law of rewards. When the Creator gave us the earth, with its fruitful soil, the sunshine with its warmth 484 SPEECH OF WILLIAM JENNINGS BRYAN. and the rains with their moisture. He proclaimed, as clearly as if His voice had thundered from the clouds, "Go work, and according to your industry and yoiir intelligence, so shall be your reward." Only where might has overthrown, cnnnijig undermined or government suspended this law, has a different hiAV prevailed. To conform the government to this law ought to l)e the ambition of the statesman; and no party can have a higher mission than to make it a reality wherever governments can legitimately operate. Justice to All. llecognizing that I am indebted for my nomination to the rank and file of our party, and that my election must come, if it comes at all, from the unpurchased and unpurchasable suffrages of the American people, I promise, if intrusted with the responsibilities of this high office, to consecrate whatever ability I have to the one purpose of making this, in fact, a gov- ernment in which the people rule — a government which will do justice to all, and offer to everyone the highest possible stimu- lus to great and persistent effort, by assuring to each the en- joyment of his just share of the proceeds of his toil, no matter in what part of the vineyard he labors, or to what occupation, profession or calling he devotes himself. Protection creates a home market, ^vitliout ^vliicli tlie cul- tivators of land in America Tvould be but little better oif tlian our aborigrines. — Hon. J. S. Morrill. The Republican party -will continue to be a protectionist party and tli^ American people a protectionist people. And tlint protection must apply to every section, every in- dustry and every class. — Hon. James S. Sherman. We face the future "fvith onr past and present as guaran- tors of onr promises; and vre are content to stand or to fall by the record which we have made and are malcinjjr. — Presi- dent Roosevelt's speech acceptiniS 1904 nomination. When in 1900 tike Gold Standard wan established by the Republican party, in spite of Democratic opposition, it com- pleted and perfected its record as rejsards our Na- tional honor and party honor in meeting: in full every fi- nancial obligration. — Hon. James S. Sherman. We deal too much in the superlative of denunciation and blind our eyes to the i^ood that is all about us. Deep down »inder all hastily formed public opinion are the sound judg- ment and sober common sense of millions of sturdy and reasonable and far-seeing- Americans Tvho believe in the strength of our institutions, in our ability to work out our problems, and alTvays, in the last analysis, in our capacity for self-grovernment. — Hon. George B. Cortelyou, at Urbana, Illinois, June 7, 190o. The representative government that has served us -well from 130 years has not been for Mr. Bryan sufflciently ex- pressive of the will of the people. We must call upon four- teen million electors to legislate directly. Could any more burdensome or inefilcient method be devised than this? 1 believe that the referendum under certain conditions and limitations in the subdivisions of a State on certain issues may be healthful and useful, but as applied to our national Srovernment it is entirely impracticable.— Hon. W^in. H. Taft, at Columbus, Ohio. The influence of a free press must not be impaired, nor must the great body of American newspapers — among- the noblest ag'cncies of enlightenment and civilization — be judgetl by a few^ w^ho have prostituted their high calling to ignoble uses.— Hon. George B. Cortelyou, at Urbana, Illinois, June 7, 1905. The Democrats are a party having no aolidarity, uniting elements that are as unmlxable as oil and vrater, and ■when they come to make a government, should they ever be elected to power, the administration -would become as nerveless as a man stricken -with paralysis, because the radical difference l»et-v*'een the elements necessary to make up the party >vould be so great as to produce perfect stagnation in legislative provision for the emergencies -which might arise. Tlie Democratic party to-day, as organized, is nothing but organ - ixed incapacity. Neither element of the party v*^ould have a sense of responsibility strong enough to overcome its an- tagonism to the principles upheld by the other faction vi^ere it to come into power.— Hon. Wm. H. Taft, at Montpelier, Vermont. STATISTICAL STATEMENTS. Prices 1880 to 1907. The figures presented in this table are the annual average wholesale price of each article in the year named. They are based, for the earlier years, upon the Aldrich tables, and in the later years upon the quotations of the Labor Bureau of the Department of Commerce and Labor, and the annual averages are the result of the combination of a large number of quota- tions made at various periods during the years in question. Awiual average of wholesale prices during calendar years. Articles. Pood, etc.: Butter, creamery, extra lb— Coffee, Rio, fair and No. 7_-lb.- riour, wheat bbl.- riour, rye bbl.. Fruit: Apples, evaporated lb.. Currants tb.. Raisins, California, London layers box.. Lard, prime — > Ib.. Meat: Beef, fresh, native sides lb.. Salt, extra mess bbl.. Ham fh.- Pork, salt, mess bbL. Bacon Ib.. Molasses, New Orleans, prime gal.. Rice ..-Ib.- Salt .bbl.- Spices : Nutmegs lb.. Pepper lb.. Starch, pure lb_. Sugar: 96" centrifugal .._ lb.. Refined, granulated ^ .lb- Tallow tb-- Farm products: Wheat, cash bush.. Wheat, No. 2, red win- ter bush.. Wheat, contract grades cash bush__ Corn, No. 2, cash bush.. Oats, cash bush.. Rye, No. 2, cash bush.. Barley, by sample bush.. Flaxseed, No. 1 bush.. Cattle: Steers, choice to extra.lOOlbs.. Steers, good to choice-lOO Ibs— Hogs : Heavy 100 Ibs— Light ...100 Ibs-- Sheep : Native MOO lbs.. Western 100 Ibs.. Hides, green, salted, pack- ers' Iieavy native steers Ib.. Hay, timothy, No. 1 ton.. Hops, New York State, choice lb.: Cotton, upland, middling— .lb.. Wool: Ohio medium fleece, scoured lb.. Ohio, fine fleeced, scoured. lb. . Cloths and clothing: Bags, 2-bush., Amoskeag.each.. Boots and shoes: '^fen's brogans pair.. Men's split boots doz. pairs.. \'i ')nien's solid grain shoes.pair.. Calico, Cocheo prints yd.. 1880. 1890. 1900. 1903. 1907. Dollars. 0.2925 .1513 8.9000 4.9880 .1433 2.2875 .0750 .0991 13.3100 .5500 .0725 .7500 .1417 .0613 .0876 .0988 .0672 . .8375 1.0275 .1931 1.3000 21.500 .9500 _ .0762_ 49' Dollars. 0.2276 .1793 5.1856 3.3646 .1136 .0478 2.3604 .0633 6.9596 .0995 12.1502 .3542 .0605 .7921 .6317 .1151 .0546 .0546 .06168 .0460 .5447 .5062 1.3967 4.8697 4.1375 3.9534 .5284 9.9952 .2621 .6143 .7156 .1594 1.0500 17.000 .8500 .0650 Dollars. 0.2z45 .0822 3.8423 3,4250 .0615 .0720 1.5208 .0304 9.7538 .1025 12.5072 .0752 .4775 .0548 1.0010 .2601 .1291 .0500 .04572 .0485 .7040 .804 .7010 .3811 .2271 .5177 .4815 1.6223 5.7827 5.3938 5.0815 5.1135 4.1236 4.. 5207 .1194 11.5673 .1483 .5296 .6594 .1575 .9375 18.000 .9042 .0525 Dollars. 0.2;i48 .0559 4.8303 3.1479 .0611 .0476 1.4458 .0377 .0784 9.0673 .1271 16.6514 .3546 .0566 .6140 .2877 .1289 .0507 .03720 .04641 .0510 ,78955 .7895 .4606 .3511 .5156 .5494 1.0471 5.5678 5.0615 6.0572 6.0541 3.7101 12.4279 .2825 .11235 .6646 .1458 .9250 18.500 88.75 .0504 Dollars. 0.2/O1 486 STATISTICAL STATEMENTS. Annual average of wholesale prices — Continued. Articles. Cur pels: Ixiijrain, 2-ply, Lowell yd— Wiltou, llve-iraine Uigelow.yd.. Cotton tlireuU, (i-coru, 200 yards, .1. & i\ Coats. .sspooL. Deniuis, AmoskeaK-.. yd.. Drillings, Stark A. yd— Giiiifliams, Amoakeag yd.. rriut clotlis, 2a-lucii. tti by (ji „.yd— Sliirtlngs, bleached. 4-4 Fruit of loom ...yd.. Siiirtiiigs, bleached, 4-4 Lonsdale yd.. Tickings, Auioskeag, A. C. A yd.- Women's dress goods: Cotton warp alapaca, 22 in. Hamilton yd.. Cotton warp cashmere, 22 in. Atlantic F »..yd-. Cotton warp cashmere, 27 in. Hamiltoa yd.. Cashmere, all wool, At- lantic J_ —yd.. Fuel and lighting: Coal, anthracite stove ton.. Bituminous ton.. Metals and implements: Nails, cut 100 Ibs.- Wire 100 lbs.. Barbed wire, galvanized 100 lbs.. Pig iron, No. 1 foundry... ton- Steel rails ton.- Bar iron, best refined (Philadelphia) _. .._.lb.. Copper, sheet ; lb— . Quicksilver Ih.. Lead, pig ^^ll>_. Lead pipe 100 Ibs-- Saws, hand, Disston's doz.. Sliovels, Ames' No. 2 doz.. Spelter (Western) lb.. Lumber and building materials: plain M. feet.. Pine boards, wliite M feet.. Shingles, white pine M.. Doors, pine i_-eaeh_- Linie, common bbl.. Brick, common domestic M.. Cement Rosendale bbL. Rope, manila tt>_. Putty .lb- Carbonate ol lead in oil lb.. Turpentine, spirits of gal.. Shingles, cypress, d M.. Drugs and chemicals: Alcohol gal-- Brimstone, crude tjon.. Glycerin, refined Ib.. Linseed oil, domestic, raw-gaL. Opium, natural (cases) lb_. Quinine oz-. Sulphuric acid lb.. Furniture: Chairs, bedroom, maple.. .doz.. Chairs, kitchen doz,. Tables, kitchen _. doz_- Glassware: Tumblers, % pint... .doz Pails, wooden doz. Tubs, wooden _ nest ol 3. Miscellaneous Rubber, Para ^__ft_ Dollars. .8767 2.0750 .041250 .14j75 5.2500 5.9063 1.0167 .8896 .i:?20 b.ll46 .0190 .0140 .0625 .0815 .4771 .5715 2.85 2.5667 2.3867 2.3958 21.1458 22.3333 .1515 .1446 .6292 .4167 3.2000 3.0813 ..3325 .2525 .0120 .0127 8.000 7.917 5.2080 5.0000 15.600 15.600 .1800 .1767 ' 1.4917 1.5875 1.4417 1.4500 .9817 .9054 a Michigan white pine 16 inches long, XXXX. b 7-16 inch, d Prices at Southern mills. c Not stated. Tlie attitude of tbe grovernment toivard combinations of capital for tlie reduction in tlie cost of production sliould l»o exactly the same as toT»'ard tlie coniblnationH of labor for tbe purpose of bettering the conditions of the wage- worlter and of increasing his share of the joint profit of capital and labor. They are both to be encouraged In every -way so long as they contluct themselves -tvithin the law.— Hon. Wm. H. Taft, at Columbus, Ohio. ST A TISTICAL ST A TEMFJNTS. 487 FOREIGN COMMERCE UNDER THE McKINLEY, WILSON AND DINGLEY TARIFF LAWS. Values of Inipoj-fs and Exports of McrcJiaiidisc under the McKinleu Tariff Act. Imports. Exports domestic and foreign. October 1, 1890, to September 30, 1891 October 1, 1891, to September 30, 1892 October 1, 1892, to September 30, 1893 October 1, 1893, to August 31, 1891a a Eleven months. $824,716,842 837,280,798 830,150,318 603,865,893 $:>23,362,015 998,226,775 876,332,434 790,703,509 Values of Imports and Exports of Merchandise under the Wilson Tariff Act. September 1, 1894, to August 31, 189 September 1, 1895, to July 31, 1896. August 1, 1896, to July 31, 1897 ?759,108,416 $806,670,050 687,6)1,637 837,802,519 760,298,619 I 1,051,379,735 Values of Imports and Exports of Merchandise under the Dingley Tariff Act. August I, 1897, to July 31, 1898 | $613,359,27( August 1. 1898, to July 31, 189^) i 706,265,852 August 1, 1899, to July 31, 1900 I 853,499,132 August 1, 1900, to July 31, 1901 I 832,591,908 August 1, 1901, to July 31, 1902 i 909,386,387 August 1, 1902, to July 31, 1905 I 1,028,759, August 1, 1903, to July 31, 1901 ' 980,093,491 August 1, 1901, to July 31, 1905 ! 1,130,831,734 August 1, 1905, to July 31, 1906 , 1,244,642, August 1, 1906, to July 31, 1907 1,456,450, J August 1, 1907, to June 30, 1908 | 1,069,719,899 $1,232,903,411 1,249,424,423 1,400,009,719 1,496,764,694 1,361,057,518 1,423,164,317 1,454,237,485 1,541,268,608 1,747,627,353 1,897,707,339 1,732,223,811 Excess of Exports of Merchandise under McKinleii Act. Merchandise. Oftober 1, 1890, to September 30, 1891 $98,645,173 October 1, 1891, to September 30, 1892 160,945,977 October 1, 1892, to September 30, 1893 46,182,116 October 1, 1893, to August 31, 1894 _♦. 186,840,613 Excess of Exports of Merchandise U)ider Wilson Act. September 1, 1894, to August 31. 1895 $47,561,634 September 1, 1895, to July 31, 1896 150,106,882 August 1, 1896, to July 31,1897 288,083,116 Excess of Exports of Merchandise under Dingle}/ Act. August 1, 1897, to July 31, 1898 $619,544,135 August 1, 18:)8, to July 31, 1899 543,158,571 Aug'.ist 1, 1899, to July 31 ; 1900 546,510,587 August 1, 1900, to Ju'y 31, 1901 664,169,786 August 1, 1901, to July 31, 1902 4&1,671,131 August 1, 1902, to July 31, 1903 394,405.131 August 1, 1903, to July 31, 1901 474,143,994 August i, 1904, to July 31, 1905 410,436,874 August 1, 1905, to July 31, 1906 502,985,064 August 1, 1903, to July 31, 1907 441,256,470 August 1, 1907, to June 30, 1908 _ 662,503,912 Annual Average Excess of Exports of Merchandise. Under McKinley Act of 1890 -. $123,153,470 Under Wilson .\ot of 1891 . . 161,917,210 Under Dingley Act of 1897 - _ 519,162,882 418 STATISTICAL STATEMENTS. Table of Annual Averages of National Financial and Industrial Conditions during the administrations of Presidents Cleve- land, McKinley, and Roosevelt. [Annual average for periods named.] [Compiled from the Statistical Abstract of the United States.] 1893-1896 1897-1900 1901-1903 1904-1907 Interest-bearing debt, million dollars 696 941 944 89-) Annual interest charge 27.9 37.5 27.6 23..; Annual interest per capita... $0.41 $0.48 $0.35 $0.28 . Treasury receipts, net ordinary. millions 331 459 570 586 Government expenditures, ordinary. millions 365 1,592 475 1,859 496 2^264 574 Money in circulation, millions 2,651 Money in circulation, per capita- $23.29 $25.13 $28.61 $31.60 Bank clearings, total, millions 51,700 73,300 114,900 138,823 Bank clearings, New York, millions- 29,066 45,131 74,202 87,655 Bank deposits, total, millions 4,757 6,223 9,139 11,667 Bank deposits, savings, millions 1,813 2.169 2,760 3,374 Depositors in savings banks, millions 4.9 5.6 6.8 7.9 Industrial life insurance in force. millions 793 1,217 1,723 2,299 Life insurance, total, in force. millions 5,635 7,394 10,051 13,206 nnports, total, millions 758 732 917 1,192 Exports, total, millions 856 1,251 1.430 1,631 Excess of exports over imports, millions 98 519 513 459 Exports of manufactures, millions. 211 275 462 640 Imports of raw materials for manu- facturing, millions 179 218 294 400 Gold: Excess imports over ex- ports, millions *50 50 4.5 99 Exports to Asia and Oceanift, millions 34 79 93 132 Crude rubber imports, lbs., millions 38 45 53 65 Pig tin imports, lbs., millions. 42 63 80 88 Tin plate imports, lbs., millions 494 164 142 138 Coal, tons, millions _„ 165 210 270 ■ 338 Pig iron, tons, millions 7.96 12.21 17.27 22.6 i Steel rails, tons, millions 1.27 1.75 2.73 3.15 Steel, total tons, millions 4.96 9.23 14.21 29.09 Tin plat«, manufactured, lbs., millions 226 575 698 731 857 1,319 1,141 Minerals, total value, millions 1,629 Cotton, total value, millions 266 300 331 584 Beet sugar, 1,000 tons 26 54 170 320 Wool, lbs., millions 271 272 302 296 Raw silk, imports, lbs., millions.. _ 8.02 11.09 13.30 18.79 Cotton used in manufacturing, bales, millions 2.51 3.38 3.85 4.71 Animals on farms, total value, millions 2,050 1,942 3,034 3,526 Horses on farms, total value. millions 709 512 1,005 1,606- Cattle on farms, total valu^ millions 879 1,060 1,325 1.374 Sheep on farms, total value, millions 87 97 161 180 Net earnings of railways, millions..- 33 416 540 705 Dividends paid by railways, millions 83 107 16S 227 Passengers carried, millions 558 535 650 760 Freight carried 1 mile, billion tons.. 89 100 155 158 Railways placed under receivership, miles 11,474 1,697 193 1,214 Railways sold under foreclosure, miles 7,951 5,125 795 395 Railways built, miles 1.900 2,891 4,439 5,100 Average receipts per ton mile. $0.85 $0.76 $0..75 $0.78 Tonnage of vessels passing through Sault Ste. Marie Canal, millions- 14 20 • 28 36 Failures, liabilities of, millions 280 128 128 141 Post office receipts, millions 77 92 122 162 Wheat, average price of, per bushel $0.70 87.6 83.1 99.1 Corn, per bushel 44.4 31.3 6,174 39.0 27.5 6,328 45.5 40.8 14,241 59.7 Oats, per bushel 41.1 Homestead entries, number 12,944 •Excess exports. Tke sreneral tariff policy to ^vliioli, without regard to cKanitreH in detail, I believe this country to l»e irrevocably committed in fundamentally based upon ample i*ecogfnltion of the difference in labor cost here and abroad.— President Roosevelt at New York, November 11, lOOS. STATISriOAL STATEMENTS. 489 Value of expor of principal farm products from the United States under three tariffs. [Compiled from reports of Bureau of Statistics.] Cotton Preadstufls (all) Sieat and dairy prod ucts (all) Flour _. Wheat Lard Bacon Animals (all) Cattle Corn Beef Oil cake Seeds Cheese Pork . Clover seed Hides - Hops Tallow Flaxseed Barley Sugar and molasses-. Oats Vegetables Hay Broom corn Rye Tobacco, unmf'd Fruits and nuts Cotton seed oil McKinley law, fiscal year 1894. $210,869,289 ld6,777,229 145,270,643 69,271,770 59,^07,011 40,089,809 38,338,813 35,712,641 33,461,922 30,211,151 25,193,699 8,807,256 7,942,221 7.180,331 5,139,868 4,540,851 3,972,494 3,814,232 2,766,164 2,426,281 2,379.714 1,718,663 2,027,934 1,744,462 890,654 210,742 126,532 24,085,234 2,424,2.39 6,008,405 Wilson law, calendar year lfc93. $189,890,645 125,266,871 132,456,827 50,292,886 40,898,547 37,348,753 37,411,944 33,791,114 26,997,701 27,907,766 25,741,709 7,851,246 1,983,894 3,401,117 4,430,155 1,126,618 2,835,947 1,745,945 1,207,350 31,076 1,485,088 1,300,993 599,835 1,557,488 701,346 179,856 724 24,707,563 5,450,878 6,429,828 Dingley law, tl cal year 1899. $210,089,376 273,999,699 175,508,608 73,093,870 104,269,169 42,208,465 41,557,067 37,880,916 30,516,883 68,977,448 29,720,258 14,. 548, 765 5,079,39*^ 3,316,049 10,639,727 1,264,922 929,117 3,626,144 4,367,356 2,815,449 1,375,274 2,350,718 9,787,540 2,799,400 858,992 185,902 5,936,078 25,467,218 7,897,485 12,077,519 Dingley law, im. $481,277,797 184,120,702 202,392,508 62,175,397 60,214,388 57,497,980 26,470,972 41,203,080 34,577,392 44,261,816 31,831,263 26,415,627 10,094,609 2,012,626 16,593,404 420,104 1,760,032 3,531,972 7,182,688 7, 990, .383 4,556,295 3,179,619 1,670,8S1 4,007,833 976,287 263,812 562,016 .33,377,398 17,588,432 17,074,403 Conditions in States oarried hy McKinley and Bryan, respectively, in 1900. McKinley States. Area square miles Population Illiterate native white nopu- ) lation 10 years old and 0T« i Scboril PTr>enrlitnr*.s ill !90U_-^ Auesied yalue of real estate Asaosse'd value of personal ) [U-operty J Value of farm lands, includ- I *"«: buildings, etc l Value of farm produQte 1899. . Total value of manufactures ) in 1900 -., i Wages and salaries paid in manufacturing in 1900. Value of product of mines, oil and gas wells, etc. Savings banks deposits in li Number of depositors In > savings banks j 1,380,760 49,. 300, 585 .589,434 $189,246,785 $21,598,538,094 12,608,630,997 56,036,998,020 $3,137,968,675 ;l 1,274, 824, 602 $2,392,173,372 $616,581,477 $2,436,212,780 5.826,989 Per cent of total 51.8 66.2 34.1 77 74 ■ 67.8 87.2 88.3 79.2 99.5 98.9 Bryan States, 1,284,200 25,216,640 •1,270,048 $33,512 $4,076,900, $3,789,316,055 $2,122,040,651 $1,487,984,098 $1,649,647,187 $.317,067,517 $161,868,006 $12,913,792 67,788 Per oent of total. 48.2 33.8 15 15.9 28 26 S2.2 12.8 11.7 20.8 0.5 1.1 Neitlier our nation nor any ot]&«r can staucl tke minona policy of readjitstiliiir its lt»asines8 to radical changres in tlie tariff at sliort interValn.— President Roosevelt at Logransport, Ind., September 2», 1903. Every one wlio knows anytliing abont tbe manaarement of railroads knows that tbere bas been a revolution fn respect to tbeir obedience to tbe law. No longer are special prlvlleses grranted to tbe few^— no longer are secret rebates extended to bnlld up tbe monopoly of tbe trusts. Tbe rail- roads arc operating- witbin tbe law, and tbe railroad direc- tors and oMcers and stoclcbolders ougbt to rise up and call blessed tbe" men wbo are responsible for tbe passage of tbe Rate bill.— Hon. Wta. H. Taft, at Kansas City, Mo. 490 8TA TIfiTICA L !9 -- 34, 18»0 37, 18»1.. 31 1892-. ■ y 3»i, 1893t ^ -. , ^ ^ 31 189lt. 24, I8»5t- ■ • 28, ism -- 29, 1S^7— -.-__. ♦ 31, 1S98 39 18'J» 57, 1900 51, 1901 - ._•- 77, 1902 ... 1903 70, 1904 59, 1905 - 91 1906 • 103 1907 -- 95. Ing house. ,082,2ir> ,818,780 ,6S(),60:» ,4(35,529 .686,572 ,698,770 ,905.236 ,379,870 ,145,36» ,379,126 ,894,884 ,760,948 ,413,948 ,230,771 ,588,56t ,672,494 ,189,433 ,655,940 ,796,801 ,318,360 ,100,091 ,421,238 Clearinghouses of the United States. 1^18,211 52,126 48,750 53,501 58,845 57,298. 60,883 58,880 45,028 50,975 51,935 54,179. 65,924 88,828: 84,582, 114,819, 116,021, 113,963 102,355; 140,5)2, 157,681, 154,632, ,043.771 .704,488 ,886,813 ,411,510 ,279,505 ,737,938 .572,438 ,682,455 ,496,746 ,155,046 ,651.733 ,515,030 ,820,769 ,672.53', ,450.081 ,792,08o ,618,00! ,298,973 ,435,047 ,0S7,616 ,259,993 ,515,258 tDemocratic and low tariff years. Hvposits 171 banks of all kinds in the various States, 1892, 1890 1903 and 1907. [From Official Reports of the Comptroller of the Currency.] States. Maine New Hampshire Vermont Massachusetts Rhode Island Connecticut New York New Jersey — Pennsylvania Delaware Maryland District of Columbia Virginia .!.— West Virginia North Carolina South Carolina Oeorgia Florida Alabama Mississippi Louisiana Texas Arkansas K«iltueky Tennessee ^—— Ohio Indiana Tllirois -.-,. Michigan _ Wisconsin _— Minnesota . Iowa Missouri North Dnkota South Dakota Nebraska .... Kf^nsas .^.1.1—. Montana ', ' Wyoniiag -. Colorado Indian Terri*o"y Wflshington .-_ O'^^s^on California Mnlio 0tah N^'ada Ari7.'>na Alaska 1832. $65,850,798 80,435,557 33,748,904 616,598,531 99,066,388 165,415,581 1,417,556,006 98,891,294 423,548,016 10,121,401 83,219,217 15,670,372 29,693,509 11,037,899 8,461,372 9,849,188 15,363,576 5,740,494 7,661,424 7,093,530 26,308,565 34,120,225 4,563,594 49,603,578 24,543,584 175,952,224 54,206,771 226,801,889 107,704,051 79,7.38.823 76,795.498 85,460,606 117,478.165 8,278,548 7,551,266 43,770,311 38,514,219 10,515.264 3.167,147 .33,827,434 3,104,956 723,968 309,119 17,807.584 1-2,647,373 108.024.054 2.006,7<'0 0,213.285 i12.320 758,212 1896. Totnl $240,870,488 $75, 71, 40, 705, 110, 188, ,604, 115, 459, 7, 87, 18, 28, 17, 9, 9, 10, 5, ,804,424 921,727 572,077 759,418 535,816 712,003 236,105 583,033 041,818 019,958 351,355 677,413 243,822 745,571 722,451 890,679 952,349 531,365 853,085 25,306,751 31,747,215 3,555,383 41,502,038 21,722,670 174,954,981 52,386,403 213,708,711 103,670.827 68.863,503 68,404,642 78,439,707 117,150,075 7,032.360 7,216.612 30.865,894 30,520,487 16,800,020 2,650,836 29,966,835 2,311,206 755.510 701,202 9,228. 8 '8 9,262.021 202,874.270 1,961,292 6, .366, 103 579.731 1.518,074 1903. $2.^,828,339 $112,447,981 78,453,488 56,3i-6,930 938,627,298 155,644,733 264,131,827 2,861,024,291 254,980,170 1,011,917,132 19,592,430 144,703,712 37, 916,. 326 59, 933, 002 .50,387,580 28,224,670 16,584,452 43,0)3,019 16,535,101 19,963,480 29.174,325 63,450,271 80,389.641 14,4.-)8,572 68,501,184 62,183,036 448,120,819 141,601,752 .522, 88). 078 218,432,-300 156.140,971 135,514.105 211,033.378 298,747,005 22,1 17,222 27 ; 801 ; 725 80,565,404 84.055.110 .32,023,515 7,821.62) 60.730.278 7,2 '0,032 18.677.080 8,^33,629 -3.212.0.53 26 50,463 406,-^2,343 7,810.0.30 I 33,526,202 I 4,107.402 8, 4-18, 30) , 893,913 1907. $141,477,154 99,037,933 71,7l0.4i0 1,121,038,648 198,307,824 327,614,301 3,684,312,102 371,304,160. 1,284,624,8 3 25, 147, 5/1 180.957,508 .50,779,3)5 102,765,424 81,182,847 54,780,972 41.951,535 78,082,1.30 .34.9a5.043 .54.701,372 47,765,622 03,272,311 178,771,888 27,035,411 115,516,514 04,686,356 642,100,577 231,6,52,0.32 767. 1.56,. 586 301,921,708 218,707,-334 203,826,720 300,805,924 -370, 526, If 6 41.977,114 ,52,833,608 1-36,7.53,097 1.38.556,276 45.587,516 13,876.537 103.. 300, 307 13, "91,935 36,470,609 21,222,158 87,427,578 61, 992,. 504 619,420.315 24,378,4)4 44,9-1,688 9,694,340 17,700,107 2,759,640 $510,649,702 ,13,077,330,466 Aggrega'e, United States only. $0,530,423,252. Annual increase in indivi inn] dep.isits, 180V1S)6. $70,000 o'>'> Annual increase in individual deposits, 1898-1903, $657,000,000. STATISTICAL .STATEMENTS. 491 Value of the Priiieipal Farm Crops of the United States in 1SS9 and 1J>07 Compared witli 1895— Farm Valne of Teh Principal Crops Increased More Tlian Sj; 1,000,000,000 Since 1895. This table shoAvs the value of the principal farm crops of the L'liited States in 1895, 1899, and 1907. Thf figures are from the Department of Agriculture, except those of flaxseed. Crop. Corn _ Wheat Oats Rye Barley Potatoes -_ Cotton Hay Tobawo -- Flaxseed — 1895. Total value. $544,985,534 237,9.'?8,998 163,655,068 11,964,826 29,312,413 78.984,901 293,358,852 393,185,615 :!5,574,220 12,000,000 Total. 1,800,960,427 2,113,542,988 Value per $0,253 , .509 .199 .440 .337 .266 .076 8.35 .069 .7,50 1899 Total value. ^629,210,110 319,545,259 198,167,975 12,214,118 29,594,254 89,328,832 i.76,556,253 411,926,187 57,000,000 20,000,000- Value per unit, a $0..303 .584 .2t9 .510 .405 .3*0 .070 7.27 .090 1.25 J 907 1 Value Total value. per uult^ a $1,337 554 335 23 l02 181 578 744 76 25 ,000,000 ,000,000 ,000,000 ,000,000 ,000,000 ,000,000 ,000,000 ,000,000 ,000,000 ,000,000 $0,516 .874 .443 .731 .666 .617 .104 114)8 .109 .955 a Corn, wheat, oats, rye, barley, potatoes, and flaxseed, bushels ; hay, ton ; cotton and tobacco, pounds. Production, farm value, and value per bushel of corn, icheat, and oats, 1885 to 1907. Year. 18Sd- 1886- 1887- 1890 1891 1892 1893 1894 1895 1897 1898 1899 1900 1901 1902 1903. 1904 1905 1006 1907 Corn. Total. Production Bushels. 1,936,176,000 1,665,441,000 1,456,161,000 1,987,790,000 2,112,892,000 1,489,970,000 2,060,154,000 1,628,464,000 1,619,496,131 1,212,770,052 2,151,138,-580 2,283,875,165 1,902,967,933 1,924,184,660 2,078,143,933 2,105,102,516 1,522,519,891 2,523,6 !8,. 312 2,244,176,925 2.467,480,93 t 2,707,9^3,540 2,927,416,001 2,592,-320,000 Farm value per bushel Dec.l Cents. 32.8 36.6 44.4 34.1 28.3 50.6 40.6 39.4 36.5 45.7 25. S 21.5 26.3 28.7 30.3 35.7 60.5 40.3 42.5 44.1 41.2 39.9 .51.6 Wheat. Total. Produc- tion- Bushels. 357,112,000 457,218,000 4.56,329,000 415,868,000 490,560,000 399,262,000 611,780,000 .515,949,000 396,131,725 460,267,416 467,102,947 427,684,346 530,149,168 675,148,705 547,303,846 .522,229,-505 748,460,218 670,063,008 637,821,835 552,399,517 692,979,489 735.260,970 634,087,000 Farm value per bushel Dec 1. Oats. 62.4 53.8 49.1 50.9 72.6 80.8 .58.2 58.4 61,9 62.4 63.0 69.5 92.4 74.8 66.7 87.4 Total. Produc- tion. Bushels. 6z9,409,000 624,13 4,000 659,618,000 701,735,000 751,515,000 -523,621,000 738,394,000 661,035,000 638,^54,850 824,443,537 707,3 !6, 404 608,767,809 730,906,643 796,177,713 809,125,989 7.36,808,724 987,8(2,712 784,094,199 894,595,552 953.216,197 961,904,522 754,443,000 Cents. 28.5 20.8 30.4 27.8 22.9 42.4 .31.5 31.7 29.4 32.4 19.9 18.7 21.2 25.5 24.9 25.8 39.9 30.7 34.1 31.3 29.1 31.7 44.8 If we assume control over a peopie merely in tlie spirit of conqnest and merely to extend onr control and merely from the Inst of poTver. then we: may he properly denounced as imperialists; hnt if we assume control over a people for the benefit of that people and ivith the purpose of develop- ing them to a self-KOverninjjr capacity, and with the inten- tion of givingr them the rijtlit to become independent when $23,445,809,898 $606.25 $85,23t,f)61 9,151 6,168,125,616 49.1 85.9 $2,988,318,053 23 $536,471,656 1,273,917 $12.78 $14.85 $31.65 $5.54 $1.47 $27.46 $43.32 $101.40 $394.50 $249,108,047 $6.67 $1,384, 666,. 395 .$37.10 $8,225,479,659 $220.40 $2,167,500,000 $58.10 $10,. 388, 667, 238 $278.50 $52,452,785 9,075 2,000,023,133 •Manufacturing section includes area north of the Potomac and Ohio and east ol the Mississippi, viz., the New England and Middle States, and Mary- land. Dlttriot of Columbia, Ohio, Indiana, Illinois, Michigan, and Wisconsin. STATISTICAL STATEMENTS. 493 2S5 (M CO t~ 55 C> I Tf- o «? Si 3» r- ! IgSSS^SS^^SS? lfl05C>C500lftlOr-40l-OIOC o M CO It ?i ?3 !ri 9Q S S .-f ' «oiooq in OS ■* lO & to o ;3«(Mt>0OCO nnccio^a>ro«0 2'<5 liHCOt^I:^THi35>H(N!D s g ^ u iil^Ki w f>- 1~ 1?^ 'SI s S3 ^id COOt^CTi-HCO'-'lftCO COi-ICOOOlrtCDl---* -^ CO rH <^ lO !>• »n i-H ft (N M -^ O iM ««-& CO " «fi- - - CO r-t lO * * COr-KMCOCCfflinOJlPtO OO'OCOO'-HtlSCKCOOOOO oc5 .>...»•.«- ' -^oor^'^coi^oioin'j T-^gOiraO^^lCOOCCfMtMIM-J COC0'M S « 53 €«-«5tH 1^ ^' u ^ 03 C-] CO CO I I t^ O 50 Ol i'coas^* r-l tH 1 IP r-l ^.CO /^OO/ . 3 I ] a3 a; >i ""' ' . ' J ra 85 M ;j . ;s^ C> t* o ^ taoS d *2 2 S « . o 53 as OS -^ 5^ S sol DC •32 ^ :^^ »B3 S ft 5 c p s !5 ft ^ 494 STATISTIC Ah STATEMEST8. I'liHjrcss of maiiufacturitip in the Initcd ^stairs, ISoO to 1005. [From ofTkiai reports of tlie Ceusus Office.] Years. Number of estab- lueuts. Average number of wage earners. Wages paid. Value of product. 1850 ^-u„--v 1860 .. ,. 123,025 140,433 252,148 253,852 355,415 512,254 533,769 967,059 1.311,216 2,053,9.% 2,732, 5!)5 4,251.,613 5,306,406 6,157,751 $2.38,785,461 378,878,960 775,58t,343 947,953,795 1,891,228,321 2,322,333,877 3,016,711,706 $1,019,106,810 1,885,811,676 4,2.32,32 >, 412 5,.3G9.57il,191 9,372, 437, 28.< 13,004,400,143 16,86a.706,985 1«70 _. isao 1890 __ . I'.Mxr _„ 190>» -.- * Exclusive of statiBtlcs for governmental establishments and for Hawaii. Figin-ea for 1905 include neighborhood industries and hand trades, estimate. 11 I- H S X ^ 2 CD Cents «b Bales Cents Cents Cents Cents Cents 1880 5,761 ,000 11.51 8.51 8.51 12.74 7.41 4.51 1881 - 6,606,000 12.0:3« 8.51 8.06 12.74 7.00 3.95 1882 . 5,456,000 6,950,000 11.56 11.88 8.45 8.32 8.25 7.11 12.95 12.93 6., 50 6.00 3.76 1883 3.60 1884 1 F^ 713, 000 10.88 7.28 6.86 10.46 6.00 3.36 1885 5,706,000 10.45 6.75 6.36 10.37 6.00 3.12 1886 - - — 6,575,000 '6,499,000 7,047,000 9.28 10.21 10.03 6.75 7.15 7.25 6.25 6.58 6.75 10.65 10.88 10.91 6.00 6.00 6.50 3.31 1887 — 3.. 33 1888 . 3.81 1889 . . — 6,939,000 7,2)7.000 10.65 11.07 7.00 7.00 6.75 6.75 10.. 50 10.00 6.. 50 6.00 3.81 1890 ._... 3.31 1891 .- - 8,674,000 8.60 6.83 6.41 10.61 6.00 2.95 1892 -9,018,000 7.71 6.50 5.60 10.25 6.25 3.39 1893 6,661,000 8.56 5.90 5.72 9.75 5.25 3.. 30 1894 7,5:32,000 9,837,000 6.94 7.44 5.11 5.74 5.07 5.69 9.. 50 9.85 4.90 .5.25 2.75 1895 2.86 1806 _ . ._ . 7,117,000 8,703,000 7.93 7.00 5.45 4.73 5.48 4.75 9.50 9.25 4.66 4.70 2.60 1897 2.48 1898 . 11,216,000 5.94 4.20 4.10 8.00 3.93 2.06 1899 ... 11,253,000 9,422,000 6.88 9.25 5.28 6.05 5.13 5.95 9.50 10.75 4.25 5.00 2.69 1900 3.21 1901 10,. 33), 000 8.75 5.51 5.48 10.25 4.62 2.84 1902 10,768,000 10, 671, 010 9.00 11.18 5.48 6.25 5.52 6.37 10.50 10.75 5.00 5.00 3.11 1903 3.25 I90t . - - .- 10,002,000 13,651,003 11.75 9.80 7.13 7.00 7.31 7.00 10.50 9.00 5.00 4.75 3.41 1905 3.13 1906 11,231,000 11.50 7.25 7.. 37 10.93 5.12 3.63 1907 13,510,000 12.10 7.62 7.62 13.00 6.00 4.62 a Years ending August 31. Compiled by Mr. A. B. .Shepperson, of New Yorlj. b Including 1881 and since, the price of standard drillings are net; raw cot- ton prices are alsu net for the entire period. 8TA TfSTICyi L ^TA TEM EXT8. 49- Import prices. L Represents prices in foreign countries.] Articles. March- 1807. Chemicals, drugs, etc.: Bark, cinchona, etc lb_ Ounis: Ca!iiphor, crude.lb- Potash, nitrate of Ib- Quiiiia, sulphate of, etc.oz. Sumac, ground — lb.' Cotton, raw Manufactures of: Cloth, not bleached sq. yd- Fertilizers: Phosphates, crude . ton- Fibers, vegetable, etc.: Flax ton_ Hemp ton- Tstle or tampico fiber_„ton- Jut« ton. Manila ton- Sisal grass ton- Manufactures of:* (-ables, cordage, etc--.lb- Hides and skins, other than fur skins: Goatskins lb- All other, except hides of cattle lb- Hides of cattle lb- India rubber lb- Iron and steel and manufac- tures of: Pig iron ton- Tin plates, terne plates, etc. lb- Wire, and articles made from -lb- Silk, raw -' lb- Sugar; Not above No. 16— Beet lb- Cane and other.. lb- Above No. 16 lb- Tin in bars, blocks, nigs, etc. -—.lb. Wood: Boards, planks, etc. M ft- Wool: Class 1— clothing.. -lb- Class 2 -combing Ib. Class 3 — carpet lb-1 Manufactures of: Cloths-lb-l Zinc or spelter: in blocks, pigs and old lb. $0.018( .289 .020 .152 .015 .112 .089 219.54 126.00 49.95 29.82 79.67 59.85 .18T .220| .108; 7,5]| 051 2.87 I .017' .020; .024! 10.27 .171 .200 .111 ..567 1898. 1900. 1904. 1906. • $0,096 .171 .022 !016 .092 $0,198 .291 .027 .328 .023 .136 $0,152 .m .027 .232 .015 .189 $0,085 .360 .033 .131 .015 .1.51 .076 .094 .112 .123 2.16 5.08 6.21 5.90 295.63 138.41 49.71 24.93 60.64 84.47 296.18 133.65 73.30 :«.50 135.84 168.23 258.76 150.42 93.00 48.. 37 200.72 155.91 278.79 176.80 89.71 61.25 183.88 148.70 .295 .817 .615 .285 .231 .272 .273 .300 .152 .117 .586 .174 .130 -680 .152 .133 .695 .182 .146 .766 25.80 36.21 17.47 28.81 .022 .035 .027 .030 .087 3.26 .091 4.63 .070 3.45 .081 3.25 .021 .027 .027 .0151 .0191 .031 .022 .024 .0202 .032 .135 .254 .273 .342 9.99 .169 .€31 .093 .869 12.01 .2:39 .212 .097 1.22 15.59 .188 .206 .114 1.01 17.23 .243 .288 .133 1.09 .039 .053 .052 .038 $0,129 .419 .029 .217 .024 .207 .115 10.75 265.80 174.55 101.17 8>.34 213.71 144.07 .237 .155 .759 23.04 .034 .065 4.53 .0207 .038 .411 18.56 .2.55 .30) .142 1.09 .08.1 ^Includes thread and twine. The T^-ell-l»eiiis of the -tvagre-^vorker is a prime considera- tion of onr entire policy of economic lejjrlslatron. — President Roosevelt's Annual Message, Fifty-seventli Congress, first session. Th present business system of the country rests on tlir- protective taritf and any attempt to cha-ige it to a free trade basis viill certainly lead to disaster.— Hon. IVm. H. Taft, at Columbus, Oliio. To increase i>rodHction here, diversify our productive enterprises, enlarge tlie field anjects ?— McKinley. Let us keep steady lieads and stea... 1857 L. •' 1858 8,672.620 1859 38,431,290 20,040,062 69,756.709 I860-. ■ 1861 - 1862 1.313,824 1863 39,371,368 157,609,295 72,716,277 85,952,544 101,254,955 75,483,-541 131,388,682 43,186,640 77,403,506 182,417,491 119,656,288 19^562^725" 1864 1865 1866 1867 -. t868- ■ 1869 _ 1870 1871 1872 _ 1873 • 1874 . 18 876 698 1875 _. 1876 - 79.643,481 1.51,1.52,094 1877 1878 1879 257,814,231 2^4,661,660 167,683,912 259,712,718 1880 1881 1882 25,902,683 100,658,488 72,815,916 1883 1884 1885 164 662 426 1886 44,088 694 1887 23,863,443 1888 28,002,607 2,730,277 1889 1890 „. 68, -518, 275 39,564,614 202,875,686 1891 1892 1893 18,735,728 1894 237,145 950 1895 75,-568,200 1896 - 102,882,264 1897 _ 286,263,144 1898. ._ 615,432,676 .529,874,813 544,541,898 664,-592,826 478,398,453 394 422 442 1899 1900 .._ 1901 1902 1903 1904 469,739,900 401,048,595 517 302 054 1905 1906 ■ 1907 446.429,6.53 1908a 674,000,000 *Total $40,233,847,823 $46,326,439,955 $6,092,592,132 ♦ The totals include the figures of all omitted years and are thus the totals of all years from 1789 to 1907. a June, 1908, estimated. STATISTICAL STATEMENTS. 499 Receipts and expenditufes in the United States. Fiscal years. Net ordinary receipts Net ordinary expenditures. Excess receipts. Excess of expendi- tures. 1800 $10,848,749 9.384,214 17,840,670 24,844,117 19,480,115 43,592,889 52,555,039 49,846,816 61,587,032 73,800,341 65,350,575 74,056,699 68,965,313 46,655,366 52,777,108 56,054,600 41,476,299 51.919,261 112.094,946 243,412,971 322,031,158 519,949,564 462,846,680 376,434,454 357,188,256 395,959,834 371,431,105 364,694,230 322,177,674 299,941,091 284,020,771 290,066,533 281,000,642 257,446,776 272,322,137 333,526,501 360J:82,293 403^25,250 398,287,582 318,519,870 323,690,706 336,439,727 371,403,278 379,266,075 387,050.059 -:03, 030,983 392,612,447 354,937,784 385,819,629 297,722,019 313,390,075 326,976,200 347,721,70'5 405,321,33? 515.860,620 567,240,852 587,685,338 562,478,233 560,396,674 540,631,749 544.274,685 594,464,122 663,140,334 599,895.763 $10,813,971 8,474,753 18,285,535 15,142,108 24,314,518 40,948,383 47. 751., 478 44.390.252 47,743,989 55.038.455 58,630.663 68,726,350 67. 634,409 73,982,493 68,993,600 63,200,876 66,6,50,213 469,570,212 718,734,276 864,969,101 1,295,009,290 519,02a,356 346,729,326 370,339,134 321,190,598 293,657,005 283,160,394 270,55a.696 285,239,325 301,238,800 274,623,393 265,101,085 241,334,475 236,964,327 266,947,884 264,847,637 259,651.639 257,981,440 265,408,138 244,12fi.244 260.226.935 242,483,139 267,932,180 259,653,959 281,996,616 297,73G,487 355,372,685 345,023,331 383,477,954 367,525,280 356,195,298 352,179,446 365,774,160 443,368,583 605,072,180 487,712,792 509,937.353 471,190,858 506,099,007 .582.402,321 567,278,913 .568,784,799 57S,90a,748 659,552,125 $31,778 909,461 1810 1820 $444,865 1830 ft, 702. 009 4,834,403 1850 2.644,506 4,803,531 5,456,564 13,843,043 18,761,886 6,719,912 5.330,349 1,330,904 1851 1852 1853 1855 1856 1857 1858 27,327,127 1859 16,216,492 1860 7,146,276 1861 25,173,914 1862 417,650,981 1863 606,639,330 1864 621,556,130 1865 973,068,132 1866 927,208 116,117,354 6.095,320 35..997,658 102,302,829 91,270,711 94,134,534 36,938,349 1867 1868 1869 1870 1871 1872 1873 1874 1,297,709 1875 a, 397. 378 24.965,500 39,666,167 20,482,449 5,374,253 68,678,864 1011,130,654 145,543,810 132,879,444 104,393,626 63,463,776 93,9.56,588 10a,471,098 119,612,116 105,053,443 105,344,496 37,239,762 9,914,453 a, 341, 675 1S76 1877 1878 1879 1880 1881 1882 1883 1884 1885 -. 1886 1887 1888 1889 1890 1891 1892 1893 _- 1894 _ 69,803,261 1895 _ . 42,805,223 1896 -. 25,203 246 1897 . 18 052,455 1898 „ - -- - 38 047 248 1899 89,111,560 1900 79,527,060 • 77,717.985 91,287.375 54,297,667 1901 1902 1903 1904 41.,770,572 23,004,228 1905 1906 _ 25, 669.. 323 84,236,586 1907 1908 _ .59,656,362 Note.— Net ordinary receipts include receipts from customs, internal revenue, direct tax, public lands, and "miscellaneous,' but do not include receipts from loans, premiums, or treasury notes, or revenues of Post Office Department. Net ordinary expenses include expenditures for War, Navy, Indians, pensions, l^ayments for interest, and "miscellaneous-," but do not include premiums, principal or public debt, or expenditures for postal service paid from revenues thereof. Ill flie enomioii.s production of wenltli, in tlie hereto- fore n«lieard of prosperity. It was inevitable that ahnses ihould creep in and that in tlie absence of publicity some ►f the men enjoyingr irresponsible poTrer should yield to le temptations of cupidity and ignore the sacred character ►f the trust relation. But there has been a house-cleaning: smd the Republican party has exerted every effort to destroy sjsiy further oi»portnnlty for such abuses and to prevent any r<'««nrrei»ce of tliem — Hon W«i. H. Taft, at Greensboro, North (. aroliiiu. 500 STATISTICAL STATEMENTS. Ilillillllliillililliiliiiiiiii "3 M t-. o Si S (» ift 1^ 1^ F- » r^ •* >S <© « 1^ Ci -4 •?! .-. »r CO o 'i; i?i o: O o S: iii^]^l > ""^.i r) o 00 i-i o oi M < ^ -' «o w on I $ rHCO M O5o'e>5 •hT'^^'-jTiO lO in i^Taoin ^- i-Toj t'-O i-ToocO'M C5 t-i(M > O-g rH rH ^r-(r^goi-io2w< ^i^s^i — rHooo-*o>ftg6io®co5Di~«^53®coeot-.o<3;oc-iSs\iirr5< "' -^cofMr-co®'*Oo5oiorHOcoaiO:co-^'MXi-'i-i-t-iOC3-*«oeo< CO lO "(5 >ra 5>) CO C' di U^ iS r-l O I '22 *-^ ->• .- oo «o cc < 2 i-l CO CO CO rH ■<*< '^ oT CO CO ?D OS CO lO < P rH r-( N e^ (M (M (M frl « ) IP r-l t^ -t< -* ;0 < I 1 IM C^l (M I — : ^ I Q "3 t^ 05 C^lt- t~ rH O _ , , . , _. _. 5j'giftO»--^-»)i^Ot--i--05CO'Mm-*(7icOr-i05cr. i-JfOrHior^ir gi-r~ e-i o ^ -i<-OOlScOCC5O-*r-60C!O00C-. IjO ^ eO(MIM(M-*(NOlM»r5(NCOCOlftI^C00JrH©OrHr-C-llrtC0C000r^©0i(NCp-^»P5-llNr-lC0Q0-*'0il0I fl ^ CO CO Oi i^ Ti< ■.!. 55 >3 CO in CO CO ■* o IN oo M CO S © oi -* o -* w '^ rJ -^^ •ed(NrHOrHrH(M'rH-«l<00rH L040 CO-t-^!MrHCOCOO(NCOrHi u ■'-'. • CO 05 ©in 1 :Sr^l©s ■*ao© ini IC (M rH I-COrH Q CO I O 1^ ( ij r^-t OJ CO * -f (M i» t^ ci S3 coooos©in(MrH(Nooi SCO'MOfCO'MCOC^OOCOCDOO^l^OCJfMCO! >t>f^O's s ; •tJ_:inc«3oo©(M-*t^-*-*©©"^-^»n^r-t©©r'.incogi©eoc^©oco©t» a^lnrH^-cc■*oo■Tt^co^-eSeoc!^'©corHc«s otJ'^t-©'nt-^ed©oo5C»oJood©r-Jr4inodcocdrtq © j in (M © < ^ in00iniMO5t-ei5(N-«K-^COI^rHinrHO5COCOCO'*©©!nC3O5CO© C: "3 i-< rH © l^ © 00 in rH S ■* Co5oOTH< -fO5r-lCO©'-'rHC000 70rHrHl mi~co©-f©(MCOcO(MinjrHc ) © (N in I- — K CO cr. CO 00 CO ?i CO (M c: t^ 6: © < >COCO-l"©C.'3COrH3535inCOr-^(M©^-(^1'MC •iftcoa©t^©ooi^oi^50©c-5r-icoincooo©inco©C5ini-7.oo icOr-i©-«)rH(M*5eocococ>?'i<-«i<'*'<*(eo-»'iMCO'f"-<*icoeo-*'«<-*in- o CO '^© in St~ in Cm©l^'©lnQl'-cot^«o^©! iTin CO CO t^ I- 7; eg X cc OO O) © ; CO 00 OO -Xl CO 00 OC CO 'TO 00 00 CO C-. ; '©©£&©§ Or-2JCO-*l««r~00 ST A T I STIC A h ST A TEMENT8. 501 )cx5oooo5oooooooooooooGOQOooooooooc/)5ocoOio5«*osaa^< ooeoooooo®5P05rHoc<5'*ccoocooo»n®c-SH-t<00<£l®00r-IC0C<5Oi; f^C2(Ni-lrHt^00c500'Mi-(-*QplOI^C0t^t'^''5'-'O5'^~"^^50-»ttf>.t~i-(Oi00lX)t2*"Qff^O>'-'t~t~EI'-'05C05a»ft»OrH'~'5-''-'?S'7^' lCOt-OOC<50-06t^!M-*C0lrti-IC»THrHa5OQ0C0e0(N'»<00©iH 1-H ^ nnrHi-ie<5ixMOgjO>U5©COOO©05r-lT-l-«MOO-*C5'»»<0-^{OrHCMCOlOCO ■ lrD©r^50^-M^.■^^-.M^*5oOc»o;cor^^b^^«5o535co{D^r-^-*©CJ i !M (M cq i-l (M eo cq* im' Ol (M* cn J3 'Ti'®'::®<^=^^2S'>''<3305cp'>20(Mr-i-+ir-jco « !Oi-Hm(>Jt,l^-*CO^'M^COOSlC35'M|-~'MCOt^©50T-(05-*lOirQmO 3 oic©iflo»o»i»t^cs>coa2-*«oiovO(Moocoi©(Ni'-eoo>cocjcoi-('n'^i^ I 35 00 00 0> »0 Oa «l ©t~inoj-^oo-»»<05COoooooi£2J5a fl^3iCOrH-*©Ot^l>.00(>q(>3t^U500NOOt^iHr-ll?qt-.05I^O>t^O>-tJX> 050©l~r-lt^l>.1^000 > O i(^ in ■>] lO C5 oj (M T-H -* ^ ^O5^OiC^I00Cl-*(^^©'»!M I t~0 I I © CO ( ^-•^0©coo>i-ir-(NCOoot-< !3 •iDi.ri'>]m.-HmO'*<^-5tcou3t^TOr-(minOcoi--in-t*05i--< S i^io-ti©ig353>cocor«COCOlO(MinOCI5CTSMt-H-*-<* rH © r-4 <0 O S "S 'S J Co' Co' -*' lO «o t-* r-; 00 i?353d; i 3 3 ^.SJ 3 1^ 00 c ^cooo©oot^to©05^C5(MTticpr-i-Ji-m©oo50>m50i-i< ^i COMiCOCOCDOoSonriOM^cDQe 0005r-l-:ti-^t^t^oooia)©i-ii-H©i-i'McoiAoo*Or-icoa5©-*5y rHrHr-trHTHrHrHrHrHr-itMff^fMfMCOCOCO a'3c5*'00icorHrHt~oeoo6«i^i>.§r--iioi^cI 05 oi < O t— 1>- 1^ in t- c © 0> © 00 (^ «5 05 ( > o> © a icooo©-*!— ioooo03coco©j^i:^©©a-^C^Ir^ rH IC-* (M CO CO © S f^ t^ to C5 00 m © CO OO O co"© © i-i O co"aro5'"r-rirf oToo'co'"^''© r-rot-rco'co'co' n i-l©i-(aD!MCOi-IC5'«t-^l^00©in©©(MI^i-HI:- 21I---*CO © in © 1 20 CO t> J^ »( GO X 00 00 » C orHc^co-^iccot^oooiOi-nj-ico-hu^tsr--/:; i05a5~^Osa505C7!05O>C:©©©©©©©©© IXGOGO0000O000000000O5O-. 05C:aS05C!5S si 5 a O w § III CS A b 502 8TA T I STIC A L 8TA TEMENT8. Ooveniment finance, per capita. Year. Population J une 1. 1871 39,555,000 1872 40,596,000 1873 41,677,000 1874 42,796,000 1875 43,951,000 ' 45,137,000 46,353,000 1876 1877 1878 .... 1879— 47.598,000 48,866,000 1880 50,155,78;^ 1881 51,316,000 1882 1883 52,495,000 53,693,000 1884 54,911,000 1885. 56,148,000 1886 57,404,000 1887 58,6801,000 1888 1889 1890- 1891_ 1892 • 59,974,000 61,289,000 62,622,250 63,844,000 65,086,000 1893 66,349,000 1894_ 67,632,000 1895 68,934,000 1899 70,254 OOO 1897 1898 1899 _ 71,592,000 72,947,000 74,318,000 1900 76,803,387 1901. 77,647,000 79,003,000 80,372,000 1902 1908 1904.. 81,752,000 83,143,000 1905. _ 190C 1907 84,216,433 85,817,239 GoTernment flnance, per capita. Amou't of money in the United States July 1. Dolls. 18.75 18.79 18.58 18.83 18.16 17.52 16.46 16.59 21.16 23.41 26.30 26.85 27.42 27.08 27.38 27.20 27.84 28.20 27.06 2G.91 26.28 26.92 26.21 26.69 26.39 25.62 26.62 28.43 29.47 80.66 31,98 32.45 33.40 34.29 34.68 36.45 Money in cir- cula- tion July 1. Dolls. 18.10 18.19 18.04 18.13 17.16 16.12 15.58 15.32 16.75 19.41 21.71 22.37 22.91 22.65 23.02 21.82 22.45 22.88 22.52 22.82 23.42 2i.5S 24.03 24.52 23.20 21.41 22.81 25.15 25.. 58 26.94 27.98 28.43 29.42 30.77 31.08 32.32 32.22 Debt leas cash in Treas- ury, July I. Dolls. 56.81 52.96 50.52 49.17 47.53 45.66 43.56 41.01 40.85 38.27 35.46 31.91 28.66 26.20 24.50 22.34 20.03 17.72 15.92 14.22 13.34 12.93 12.04 13.30 13.08 13.60 13.78 14.08 15.. 55 14.52 13.45 12.27 11.51 11.88 11.91 11.45 10.22 Year ending June 3l). Inter- est on public debt. Dolls. 2.83 2.56 2.35 2.31 2.20 2.11 2.01 1.99 1.71 1.59 1.46 1.09 .96 .87 .84 .79 .71 .65 .53 .47 .87 .35 .35 .38 .42 .49 .48 .47 .54 .44 .38 .35 .32 .30 .29 .28 .25 Net reve- nue. Dolls. 9.69 9.22 8.01 7.13 6.55 6.52 6.07 5.42 5.60 6.65 7.00 7.68 7.41 6.36 5.76 5.86 6.33 6.32 6.31 6.43 6.14 5.44 5.81 4.40 4.5t 4.65 4.85 5.55 6.93 7.43 7.56 7.11 6.93 6.60 6.51 7.02 7.70 Net ex- penses. Dolls. 7.39 6.84 6.97 7.07 6.25 5.87 5.21 4.98 5.46 5.34 5.08 4.91 4.94 4.44 4.63 4.22 4.56 4.46- 4.88 4.88 5.72 5.29 5.77 5.43 5.16 5.01 5.10 6.07 8.14 6.39 6.56 5.96 6.26 7.11 6.81 6.72 6.73 1.14 .98 1.03 1.13 1.04 1.17 1.13 1.27 1.33 1.45 1.71 1.95 2.07 2.40 2.0:) 2.05 1.98 1.97 2.02 1.88 1.85 1.79 1.75 1.72 1.74 1.72 1.07 1.62 Reciprocity must lie treated as tl»e liand maiden of pro- tection. Our flrat dnty Is to see that tlie protection granted by the tariff in every case -tvhere it is needed is maintained, and that reciprocity he soug^ht for so far as it can safely be done -without tnjnry to our home industries.— President Roosevelt's Annual Message, Fifty-seventh Congress, first session. While Mr. Bryan has been most emphatic and eloauent in his description and denunciation of trusts and abuses of corporate orgranixatlon and wealth, his su^'s^ested remedies for their prompt suppression have been very vague., unless Indeed his proposal that the Government buy or condemn all Interstate railTrays vrith their immense inlleag,'e and maintain and operate them is to be regarded as an im- mediate, ready, practical, and feasible remedy. — Hon. Wm. H. Taft, at Greensboro. Narth Carolina. Think of it, men of Rochester; you producers and manu- facturers and merchants and traders and bankers and trans- porters, think of it! The market of our ovfu country, the home market, in which you can transport your soods from I the door of the factory to the door of the consumer, -without breakinir bulk a single time, is equal to the entire inter- national commerce of the world.— O. P. Austin, at Rochester. But n«r one can read the report of the commission on the history of the union of the Southern Pacific and Union Pacific systems with the Illinois Central system Tvithout treniblingr at the enormous power that one man, by the un- controlled use of the stock and bond issuinfli: power of interstate rail-ways under state charters, had aca«lred in respect to a vital part of the country's bnslness and -with- out looking: for some menns of remedyinB: such a dangerous tendency -which. If not stopped, -will lead to the absorption of all the railroads of the country into one hand. — Hon. Wnt. H. Taft, at Columbus, Ohio. STATISTICAL STATEMENTS. 503 5??!*S1!??SS?^S?Sg5! 00 Q ^-^ lO CO (N Q 00 w rH 00 o •* ^' o t^ ig ■*' ^^ e4 M CO eo CO CO ■*' in -^* w r-I i-h i-J r-I o o O (3j Hi & ;S88i 1 Q 1^ o o< OOOOr-lt"COOOCOlft«>»OK)rHOO-*C>-^05(MT*l-I^COO>CO«5c5CSm«033CC>CDCD50C0t~l ■ t~t^i>oooo6oaooooo r-l«OOOi-HOlOI^'*'fncOOlO-*<20i-ICOlOOOCOi-Ht-eOl-l«>»00 ioo5r-(c«s-**l2St~r-i-*c5oo5-*oocooot-cot^-*-*cocie--4'>i5Dr-it^o>ingo53i-icovnrHeoeoco&co '*r-too>e^cO'«tcoco(Mcoocot^i^-*oo<)oo->*imiH SiHooo5C>coo305inooooin7i>ftcoinot--iT-iG005THintoj^int--*o5int^P5"^oooo r-c<5Sooo505ajoo-*i-lO>mO» OQ000(MrH00(MrHI0a5 oo5ac2o>mcoooocoo503m(Mt>co-*coi (NS(N"*oSoOOCO^MfHC i^^^^n (coinc<5t~icoooco<»«?tr'5*l >O05-^inO'>tOi-IC(M:3!in:^ininincO(NrH00' ir)(Meoco(M-*-*ocorHin( I'M O < I m CO o o !M 1-1 1 •*oinooiOO'*ocomt^'M05(MioooiniHrHi-((N(MiM< I (M (M (N IM CO < l(MeQ(M(MH (JJ 03 l-i rH-*'-5ga^5< cOo■*I-lool:~ooat^TH(»&^_oeo■*c5^-o>lnocolnol»<^lOlMe OrHoooooinininininminmininioinmoocoooooooooininini ST^^c5(^5coocOlnoOI-lOcI5-^^cooloooo^^co^^ftC5COQoO'^^(^lcoo5(^l-*eOl-l. OC000'*00incD^0000-*0Ci^'=o«'®'£?©o<»< OONO-3<05r-4(N(N©COiOOOi-l05T--lTHr-ICO®in(MCO'1--*C»COm050t-OqOOi»i-lt~iH-*a>OOCOt^C>OOt:-<©CO(N(Mi-H-'«H01CO^>fl3e^''C aiCDXco-*i^i-~oo&rtOMot05cocoinQeosscna5os«OrH©i^coi< C005COI^^CO■*^-Oi»r^t^■<*^l-IOln05COO^-.OO^HeOt<•©5CO-*OO^^r ir~ •»♦< in ■* o -* CO CO 00 o CO CO '^f o o iH (N t^ in CO -* ■* o 1^ i^ i^ i~- in c t^ooino®int^c«5r-icoco(MrH.-iooc3iOi-ii-(aio>o>-*ooo5oO't<'t-*r^.- .. „, Ojr-QOi-(rHCOt>COOCOM<030>ni:^02t:--<*rHt^-*i-{00C5iHC»>in05i-liHC0?500o80rH-^c6diiSo)b(Nin^©S5iihooeoii5< .i-IC3COint^ODOOi-l©rHl-^OOC5-*(: )Ttf^ — ^mmiiScos l©(MCOeOc'5o-*r-lOinr-? XL J CO t- 00O5 O 1 CO -f IC CO 1^ c dot»OOOOOOCOODGOOOQ6oOQO'MQOOOOOOOOOGoSo0^^o6o6oCr:S©05SciCr. ; 504 ST A Tis TIC A L aT-1 TEMES TS. Number and mileage of I'ailroads placed under receiverships and sold under foreclosure during the calendar years 18l6 to 1901. [From the Railway Age, Chicago.) Caleudar year. P.aced under receivership. Sold under foreclosure. Number mii.o of roads. ^"*^- stocks and bonds. Number of roads. Miles. Stoclis and bonds. 1876 1877 42 6,662 38 3,637 $467,000,000 220.294.000 30 54 48 65 31 29 16 18 15 22 45 31 19 25 29 21 28 25 42 52 58 42 47 32 24 17 20 13 13 6 8 6 3,840 3,875 3.906 4,90J 3,775 2,617 867 1.351 710 3,156 7,687 5,478 1,596 $217,818,000 198,981,01)0 311,681,000 248,288,000 268,882,000 137,928,000 05,426,000 47,100,000 23,501,(M)0 278,394,000 374,109,000 328,181,000 64,555,000 137,815,090 182.495,000 109, 069, 000 95,898,000 79,921,000 318,999,000 761,791,000 1,150.377,000 517.680,00? 252,910,000 267, .534, 000 190,374,000 85,808,000 .39,788,000 15,885,000 28 ,-266, 000 20,307,000 10,400,000 13,777.000 1878 27 2,320 92,385,000 12 1 1,102 i 39,367,000 13 1 885 1 140.265.000 1879 1880 1881 5 12 11 37 44 13 110 1 3,742,000 912 ' -^ 074 nno 1882 1883 1 990 108,470,000 714,755,000 385,460,000 70,346,000 90,318,000 186.814,000 99,664,000 105,007,000 84,479,000 357,692.000 1,781,046,000 395,791,000 369,075,000 275,597,000 92,909,000 138,701,000 52,285,000 78.234,000 1.627,000 5,835,000 18,828,000 36,069,000 176,321,000 55,042,000 13,585.000 1884 11,038 8,386 1 7QQ 1885 1886 1887 9 1,046 22 1 3,270 22 1 3,803 26 ! 2,963 26 > 2,159 36 10,508 74 29.310 1888 1889 2,930 3,825 3,223 1,922 1,613 5,613 12,831 13,730 6,675 6,054 4,294 3,477 1,139 693 555 524 679 262 114 1890 1891 1892 1893 1894 38 31 34 18 18 10 16 4 5 9 7.025 4,089 5,441 1,637 2,069 1,019 1,165 73 278 229 1895 1896 1897 1898 1899 1900 1901 1902 1908 1904 8 744 1905 10 j 3,593 6 201 7 317 1906 1907 Total.-- 683 119,713 $6,696,072,000 931 113,953 $8,893,922,000 The job Iiunts tlie mau, not the man tlie jol>. Wlien tliat condition exiMts labor is always better revi^arded. — President McKinley. Eni^land learns from experience — Democracy does not. —Hon. Charles Dick, in Congrress, Jan. fi, 1J><)4. What has been done for the tin-plate manufactnrers in the United States can be done for American shipbnllders and American shipoTrners. — Hon. Wm. S. Greene, in Congress, April 28, 1904. Mr. Bryan asks me >That I >vonld do Tvith the trnsts. I • aiisTver that I vronld restrain nnla^'fnl trnsts -with all the efficiency of injunctive process and would punish Tvith a:il the severity of criminal prosecution every attempt on the part of a.ggrefSB,ted capital through the iileji^al means I have describeeOC*i-l.-l«00?PrHOOCOi-l ■^S^Mior^u^-^oooo.Tqasoooi^Ni-^iMW^icDco^-ioo l-^CEroO^OtOOCDCOCOCOtDOCO-Ot^l^OOOOOScTosO I (M TO O -f OO -XjgOCDCOlOCOtOOOOlQOt- ©o05a>e50i0536oDcooooot^r^t^t-~r^t^i^t^r^ linSoiftt^ioOcoorir-QOT-'Ooom^aSiScCr-iSS |;OCO-l<010-^m-fl«-t<-»-ii>M<-* "" oooo'X>ooi^oi^t^T»©(Ni--eo50-*«o © -* 1^ 00^1- -^ 00 c» oi ^_^m © 'tt i- So aoo'Tf(©u:i-^i--m-*Qom-t<-(<©aoiococii-iw«>-*t-i-io3 5;iAt--t<-tfosr T-j"-^'"©"i~-ir in co' 00 Mio T-^*M<" o^r a CO ir©" ©O5 0000lJ5C3St-IO5©?5mt^lOl-^00rtr^|--Q0O5O5I^C0— I -T70-f-f'C>-ICDOI-t-l-COt-t-t»010iO©r-l(N(M'*'0 tuc- M S3 CfL, fl I, « ^2 i 02 , OiS ^ !^^to©o>QOlr^^^t^QO^^l^col^r^c2ci©co^■;r-|.^50■^^-- ■»»«OOS«2''^9Sz;''^® -Hc5oor^r-(ir(Mcr)©t~cO'-iioin'Moo©'??ci cot^cDC5irato-t<©a)toonmirt<3>5ffl<3>5ffloaOr-i-nm-(>ooinif5'MX lOi-T ■rtf«tiigi«'X)aj'noo©i-i©-<»'co50co-t-*"*50«Ot--.0-*t^C5-«»'00 cocooo-*'i'-*inm»omioic>nKsm>o»A50«oocot^t-- iOiocooo^oonooooc30o«5irinmi:~ci-*OC5©oo(N; I Oq « ni-(O5X(— <«gXlin-*^COI^(M!^ co©^-■«*^if5i-i[^©r^oocpiMOO-*ai050 — m© t^C0t0C0OW!-l^'f-i-li0C0C0T-HAlft'-t->O->-M<© llOl^00©©CO-< iftcooocoi£)rMi-~OrHco— it- i^cNb-.m-^ssTt.c^mcDog'riajt^OOO- cot^t^oii-icOTfini^QO&irHco®""" •i-lrHOb«Olrt(NCOlf5-*©-Ci^(Ma3-HOJOO«DOOCb<»^.-<«i'in a'^'^'^'^oo" 5i(M'M(NCOM t^ N CO «P in CO ir «5 so IN i~ C(g« (Noj oa«oSi-iooo«>n5'«"Ooocoo>'^r-Sfeo2c:>-t^-Sin^ ^ r^ 'T c-i i-i55>cc^iir-ioo«oo5'»< O 00 ic in -^ n e^ a t-^ r^ ra o '-^ •£ o t-^ ■:« ui vn a^ t^^ t-^ fo (i^ ui Ol^COI^»«t^*sSlOS©o5«iOQ-*CC©ipt^'»«<»rHOO«t»'Si l-Ti-H r-Ti-ri-rrir-ri-ri-l r-l i-T (m" (N C^T (N (N e.1J-|-^r-Jin^i-co(»OMC3i^t~r-) g 00 ©"t^co f-Ttco s^'"co''t-ric tnoT-^ 00 C'f cc (^"©"cTtif oo ■* eo ci >3'j©»oe5a!iMcot^2J'^SPt'-'?ec"-<^<^t-oo5>'5 C80J(M«05»00COO-^lAi-Hi-(l^«©r^$r-(©'*'C]i>](MoococococoeocO'».*.<»<^~tD©Ol^qt^eoiboo^5(^Ite^-©^-| co t>» ^ (N -1<"sr© cpo ©'(N ^-^©"(^f © «r r-TrH ©"©'ic'oo'sDrH ■^''-^ ©"lO "!rslCin(>](SCJJ00iHCOr-llNOir~(>4h« ?a IC © 05 © lO a ©O © 00 I> CO © l^ CO © <>5 CD -.*• eO_«5*Q_Tj< i-HOO Q° in'ain'£inc^c2cs^)Qt:rC^fOt^iQint^f~c^aO'^-r^*QeS ^i0©06C0(N©©ir00©r-i(>q't*ifi>oi-irH(MS< O eoeo w to OJ i> ©"eo jq'oj m ©*.*.*'.<« o co © t- ifi jt* ^ M rH« iH©t^Mt(N(N.0O©CO'J»not^©»ftr-i(M5.ico2'©«0'»'^'^»^-*'^"*«^i?5i?5eoo a'«<<0-*«©©i-ieOlft(b©©(>JCOCOC?50^r-(©lOlHr-(ry50lS _. . — - . , . . „ J in '_. . . _ r-t'*<»n©r-(r-(©Q0OC050©(Nin©C0e0«0©C0l>-r-l(M00' >©in©in©r-i( . . . jW CO M- u. o i ° 4^ ^ g a t « - 3 n 1 « CJ 0« ^ -o S u « S E i ^ V ^^ a " . (8 0*!:^ "" 1 ill '^ 2S s ii III k" ='b? +J S43J? 1 •is- -o g^o. o • M ^g |S| 43 p ^5 "j: rt „ ?5 p a .."E S8S 1^ 6=1 O t^o M'B «H 3^ O C^ si ss •H !^ +^ « is? "So" 5| .be &- Si ?^ o g-o gS fl 71 O p cs O a a O Sl r hi S"^ •So l'^ 4 ^ A — .e 2^ 11 1- !? C M O 3 q « !l 11 =2JCO't'0(MO 2;JorHinSSinSooi^rH ffi oo cm ^ oo in in Jo "*_'^^<^'^"*. © o ©*o"M'©"i--^-t^oos"sa <»"&!? sa^ IS s si" ;2 ?° ;^"s ;:;!*:: SS ^!^ Q(MCvl-^rHtO©©C0©rHC0l>©00r-t0<3'^©t-^CfS©©r-<'^r^ «dcjOT-5rHS«(^ ?H^©inin©-<»5in©r-(inirtcorH"*©i^©w5'5j2S2SS2fc;t:5SSfc» i^©t^t^©i^©oOi-Hi-Hini-io5mcocooc5-*©(N©io©© M in CO rH (^q'oo © f» ©"to in © CO ©M Mc-f CO ;£orr^ ri^zf.'i S5 ^2t^r^^^-*cooot^'-iooinGocoo ©©oo©©o}gj©w<>5Ni5;*g:2!oj;*)nooi>-THi-H©jc^© <>JrH©M-*C-l©©ii-Hi-l©©Q?©<>^o5-H-*<-+wc-i'-H«)i-i50(N© csin©©©©inco©^-*3> Cj t^ j^o i-i © i-h co^t--_oin ifl'^_© "S CO co'in CO t^t> © -)^t^ 5p-*rH©-fOt^©COCOinr-U:^©-*'0O0O-^J^ '«)©©coi-ico©-*©©co©'^iQcoog©iH'*•!— •^"^©■^©©'^*^*N©l^CO00in"^ ;r-(©-^cO!-r;in©©r^'N©©QO©inmoo«©r^io© ,©©00!-HO©-*(Mt^5©©^r--_-^t |oi©'©©©©inrH-^00©M<'-l©©©tO©-!i-l{ ;S©cot-o1r-<©coin©t<'N©.-wgt^©©©©eq<: "oo©©coMiin t- 00 © & =i"*.*' "^ ,'"!,'* "^"l' Ss= > 00 ©«© © © I ■ IM 1-H >-l M t^ ■ t (-- CO in r^ i(Mr-(oo©h-©w-*q'co''-* -*■*•*•*"■* in in lO*" in ©"©"©i^t^t^i ^n: O c8 ss eg -H CO t^ © (M 00 (M 0-] 00 00 •* © ■* - ^ © © © © (M 1 COCO©rH©rH©(MMt-M.i ©rHCO(Mr-l©(MCO©inQ000S^©-^CO©( ©00©iMr-l(Mi-lf^i-l©©COI:^©ini^t~< .-l©-'*(t^rHr-im'#QnogOO( ©©©(Minc-i-^C?a5©coi © 1-1 © © © © © © © t-~ (N • ■rt<-*-*->s<- in © in 1-1 < I in © CO (M ( rH r-l r-1 I ©©in < ssa I CO -* in © t- oc © ' )©©©©©©©©©■ )CO0000Q00D00000O00: ■^ 01 CO -« in © I S © © CS S © ! §1 a" II I- 5^ « a & > m O ■« S 3 M 03^ cj-O « 508 SIT A TISITirA L FIT A TEMEXTSl. "§.-2 ao" i^il^i^i^ii^ii^lgi^sliS l^liiKtelS^siSifeSifesi^fcii lOir-i-coooM'T-fMOc^ lO CO oj CO r-i -^ 22 < «rt M r^ M en iM o I > -»• 52 --*t^«peoe;5 2 g ij,« {^,S S So S3 8 ? I ^^ ?3So5 J ® -t<'"c<5'»'M"o"o Ift Ift ■^"l-'«r«'o l-T-fTj^'il) t-ToOr-'o'^} ; 25 ^ ^ 1^ g,, ,(^ ^ a r-( r-< --t" (M r-c t^ © ir 00 h- t- ^ IM 5-1 CO )?5©(Nt^X'M3oinrHOO-»»<-(<-^t-T).UM^OOfr4©i-iaoi^ E-'®COin®52g5©©©(N'MIMi-IOO^»©r-l a I 0) ... .0< > S 00 (M «0< ' Ift IN (N r-l • >lO©eiO-ti«0(Mr-lt^^<^©*li 1 T* r- ® r^ 0-) !-i lo ic ic © ic ift Q 1 ^S! ft sS»ft«Q0?'-<00t;-MrH' fe 3 ¥ irtgsssg^ssfe! I r- — ' --• -^ ir oc © ) ■<»■ lo iri' (M cc ce © a5C5ooi-IC:lftQ>rtO>t^l^«Oef ©-+ oTlClN m u-j'rH 5^(» a3©i-Mi^-^QSoii-&r-i&©uj©i^c;e5iS«DLCt-Tt<00© — S-ieOCOlNOOO-^CDlOrHOrHr-iaSOOOCOCvSlN-^OOClr-li-lS 8^gfei ) CO CO M t^ © 1 ir-'Wi^tot-©©-*'© lSl~©©C050tO«C© i3i-ll^(M(Mlrt05?0t5©?-15gi'^©-*l>Q^5'^O5i-i-*f-ICC© rtin«5r>t"''MC;»^»6^t~'MCOt^©S'-i25-Mmir©in©o >< o 2 .&a ^. Qj.- ft = a5 M 03 O i-IC0(M-^i-lgO5t^C0C0(Mi-I^OC0t^>O©-f00CggC5C0 . Ol Cj t-H CO S rH©00-*C5t^S(Mft'MCO5p(NQO»«lC00'-' i;oocot^oor-i,-icoco©©S5ceMinooeoo5c5"?©(»"*-«'-i rt^»05lne^l-H(^qC0I-^■*mO©00O©M^<000•*r-ll«05_^5rH 7; (N lo iH CO I-- oo-^'og i^'^iraoo-^'^'r-Tco (n'co (>rj> 00 r- CO «5rJ(M05t^CO©l~lO(M'-l5J'M'-l-^'-l OJ oa. o 3 « d •;3 02^ e3-i I (M '•?! in (N i to t^ -* O CO lO M •s< I - CO o) di 00 c« cr. Oj i-i (M Tti t*. i^ t <005OS-eHt>0lOr-lc<}< < >0 i-H lO lO CO CO CO c» JlOincOt^r-l^©09{J-'-<'*O5 > S & C-i OD K O 00 « •* Ift (M «o Tti 03 «) lO -t< O IN 'MO'.'r-iacr^o©vnOii^iAf-i20©C50'5- rHii*ieoijr>o»35p©-*coooiot^ivQOi-HC5^t oT IN co" co" -* co" ^^ co" s-i" '.o -^ to' r-" cT o jq w 1 rHrHr-(i-lr-li-(i-'i-4i-li-(lHi-HiH'M«>qiN( » i-H ir; ini-w-M ift oi -N -1 O CO iM cc CO 0-T lO t- 95 "^ ■MCOr-lb-l^'1<«0®I^r-'<&m! !M I^ 1 ■*3>co-fr20-*oint-'Mi i^inr-,Qot^oet^^mc^it lOr-II^-^r-l^lrtOiCOOJi; lO «0 O t^ 00 ® 1^ r-H l^ t^ 5 iSg OiCpOOCO(MCDlOCOl- r-COCO' . 'Mr^ooo-tooor-c m X i-i CO -"f «o c; ' gl-rtl00t-I^C0C0-<«<030'-'-^' C!t^rHQ0Cp'MinC>X©C0C'1CO-"MHCO' St^co-*iMiMi^3ooo©coo35'M-frHasSco-^i^©'M-xji 1??2? in 10 10 10 m S'^! I CO CO CO CO CO CO 35 ■* O O O (N X^ © © ©coc5(MCDcooco-)'coin. coi-:>-i CO '>] c-ii-i-3'-t co&i-cocoi-co©co4:-<r-i-*ooc 'i^i^t^inoo-^©-f©©rH^t-iin(Minc S3 ©Mj©in'ii< CO "* CO CO -^ 1> 1 ©r-ico»©©©i-ir©t~'i"'- "Nr- co"© -* io'co''M"t^OB co :S^2S (X)rt»rC3rHJ0'N©(MC» ©incnco'M'Mco©coco l^fMCOCOCOCO©©©-t< ^s _x>-t<©©©©©©©cor-oo-*co©^coo-i>-icocoa3i 3— ''r©o©©©o©ini'~-!ft:~in5< in©;oxico©t^oo©©©©t^i ^ tH C-) CO OJ (M eq CO iM CO Ift CO 00 © © 1 1^ o in CO I 'cocoioint^oo©©! I ©"© ©*© ©'co rH I l©©©i-II^r^C}0rH(M-tllO0<)©t^©(M©l iC»OOil-»cpcOffq55t^i op I GO CO © inco t I (>5 in rH © fjq 00 1^ C s cq CO © © © © -*i ■ > IJJ -* -+I -* Tf -J -be ,9 STATISTICAL STATEMENT^ 0 t^ O OO •"*■ t~ ( as o v •i^ t! <-! to aj iiili^silslilllSis 1 IKSI^SfeS ) e<5 ^ lo -»< ■ inOt^OOO©00-r«<»~i»oo»»'«*<»ot-wu5eot-eor~M>w«ftrHNos«o ■«<«iet-->*Oifi-*ooi>-^ ;ii i-lr-Kaj-^CpOtOCJOK 1 03 M t^ M -fir; ( ^ St-i f-a>.HtoQQcoeo030ocfD!3:o^'iiiOc5-*5i r-(«co- ! iM 03 lO S^ I© -I* M ?o i-< in Q'ti5iniMiAO'*"t^c?*a>r550t^a>C5t^'t -Jo lO io oi ""f S iM i~ "© C5 -H lO -H Ol^o" o' CO ororc-f 00 into li? tOHriCgot^ <i-IG0(MtO«50iMi!05Jt>.C<5«O©S rH r-T CO OOW© OO'OOSO l^t^OO i-Tjf •* r-l t^"-* CC ^'-^ i-l r-l rH rH i-l rH (N *3 (N «0 frj (N eO ■* Ml S «-i 2 © IOn'^r-li it-.©c235©«oiftina>t , ... |l»e-JOl>JI--rHiHr-l«D05i-l,-«)'» S-.O C«3x> C3Jr-lr'N'io(x? l?3 g^Ss^SiSg^S 1 O i-l -N«r-lSS-*(t-(COt> l>.(M30rHO',OgQ-il lr-ta^^eOCOCOJ5mCOCQt^^.lO^~OQOCOO.lrtd o 00 1^ coi-(r-(»CinoiaO'-iinOeotDO>< OS 3 3 -3 -J ^-^ 2 3 - 512 8TA TrSlTICA L f^TA TEAfENTS. ^.^J.^ I? tit I ■^o?^51-^^1M5l^Jlnoot-^I-^-1<'^l'^I50'^lC>'--l^^o5-<«^oao*< a 05 _"»> p} "* "P < o>Q0^2SmaOOOrHt^t~ 00 &P o R < i>. n5 5 (M sssss rH -* X ^5 TO 1 ^ .X ;>.l -♦< rH ■ 1 1^ CO -r t^ r-1 >-i -!)< 00*10 O 00® IC5 00 00 -M -)<-(> (M (M I- i-l If} r-l ■«*< '^ ^. i5: S^ r-^hr^i«S;*] CO a> lo ^ Do'p'-Mfin'oo Q 1 vp ro i^ »6 5 ^ 00 'i" irt i>- in ( O 5s 'J' (M 00 -H t^ < I^ C^ -M ISSSS: g05-tT CO (N o © < c3 ■* rH (M CO S ils «5 C» Tfi <-/) O t^ in oco CO I o s IS t^ -H Tt (M i-l 05 00 C3 5 i«»-*'3lCX)»ffi©-«'i-l !in-2'©'-l'M©©©< ■ C OJ-C ■s.. ^ ^ c 5 « .2 ! -• 3 Oi O i? 50 OS = — o o ea ^^ w ;: STATISTICAL STATEMENTS. 513 ifotes to accompanying tables entitled progress of the United States in its area, population, and material industries. a Exclusive of Alaska and islands belonging to the United States. b Census figures. c True valuation of real and personal property. d 1904. e Total debt prior to 1855. f Figures for the years 1800 to 1850 include the total public debt. g Gold and silver cannot be stated separately prior to 1876. From 1862 to 1875, inclusive, gold and silver were not in circulation except on the Pacific coast, where it is estimatetl that the average specie circulation was about $25,000,000, and this estimate is continued for the three following years under the head of gold. After that period gold was available for Circulation. h Total specie in circulation. Gold and silver not separately stated prior to 1876. , i As the result of a special investigation by the Director of the Mint, a re- duction of $135,000,000 was made in the estimate of gold coin in circulation on July 1, 1907. as compared with the basis of previous years. j Includes notes of Bank of United States; State-bank notes; demand notes of 1862 and 1863; fractional currency, 1S63 to 1878; Treasury notes of 1890, 1891 to date; and currency certificates, act of June 8, 1872, 1892 to 1900. k 1905. 1 Exclusive of neighborhood industries and hand trades, included in previous years. m "Net ordinary receipts" include receipts from customs, internal revenue, direct tax, pubhc lands, and "miscellaneous." n "Net ordinary expenses" include expenditures for War, Navy, Indians, pensions, interest, and "miscellaneous." o Imports for consumption after 1860. p Domestic exports only after 1860. q Includes mules. r Doctor Soetbeer's estimate averaged for the period. s Estimated by the Director of the Mint. t 1814. u 1903. V Last six months of 1891. vv 1845. Clieap labor is not tlie sole end we seek in tlie United States. * * * We desire not only tvell-paid labor, but >vant that labor steadily employed.— Hon. C. "W. Fairbanks, at Kan- sas City, Mo., September 1, \iiirj,. We Trant no slave labor. Tt»'o million men -fvitli their blood wiped away slavery forever. We want no labor, eitlier wliite or black, in a virtnal state of serfdom. Labor must be free, with all the prerogatives which pertain to freedom.— Hon. C. W^. Fairbanks, at Kansas City, Mo., Sep- tember 1, 1902. No argument is reawired to sustain the w^isdom of a stable currency, for an unstable, fluctuating,- circulating medium unsettles and disturbs, and brings a train of evils which are as merciless and destructive as the ravages of ^var. — Hon. C. W. Fairbanks, in U. S. Senate, March 5, 1900. The business men of our community as a -t^'hole are honest and their methods are sound. The President has never said otherwise. Indeed, it is chieily in the interest of the great body of honest business men that he has made his fight for la^vful business methods.— Hon. Wm. H. Taft, to Mer- chants and Manufacturers' Association, Boston, Mass. The complaints that the courts are made for the rich and not for the poor has no foundation in fact in the atti- tude of the courts upon the merits of any controversy Avhich may come before them, for the judges of this country are as free from nrejudice in this respect as it is possible to be.— Hon. Wm. H. Taft, to the Civic Forum, New York City. Not only is our home market equal to the international commerce of the entire world, but it is growling far more I'apidly than international commerce. The intei'ual cont- meree of the United States has gro-tvn from 7 billions in 1870 to 28 billions in 1908, while the international com- merce has grown from 11 billions in 1870 to 28 billions in 1908; in other words, while tlie international commerce of the w^orld is now two and one-half times as great as in 1870, the internal commei'ce of the Inited States is noAV four times as great as in that year and euanls the entire commerce l»et^veen all nations. — O. P. Austin, Chief of Bu- reau of Statistics. 514 BTATISTIGAL STATSMBNTS. Value of gold coin and hulUon imported into and eaported from the United States, flaoal years since 1850. Year ending June 80— Imports. Bxporta. EXOAM of imports over exports. Excess of exports over imports. 1850 -. 1851 1852 $1,776,706 3,569.090 3.658,059 2,427,356 3,031,904 1,092.802 990,805 6,654.686 11,566,068 2,125,897 2,508,786 " 42.291,930 13.907,011 5,630,538 11,176,769 6,498.228 8.196,261 17,024,866 8,787,448 14.182,668 12,086,950 6.888,561 8,717,458 8,682,447 19,603,137 13,696,793 ^ 992, 709 26,246,234 18,880,215 5,624,948 80.758.396 100,031,259 34,377,054 17,734,149 22.831,317 26,691,696 20,743,349 42,910,601 43.934,317 10,284, g58 12,943,342 18*, 232, 567 49,699,454 21,174,881 .72,449,119 36,384,760 33,525,065 85,014,780 120,391,674 . .88,954,603 44,573,184 66,051,187 52,021,254 44,982,027 99.055,368 53,648,961 96,221,730 114,510,249 $4,560,687 22,836,913 40,073,979 26.442,858 40,470,260 56,109,215 45,000,977 65,282.658 50,002.804 61.108,063 58,446,039 27,428,978 35,489.908 62,162,838 100,661,684 58,881,088 71.197.309 39,026,627 73.396,344 36,008,498 33,685,962 66,686,208 49,548,760 44,856,715 34,042,420 68,980,977 31,177,050 26,590,374 9,204,455 4,587,614 3,639,025 2,565,132 82,587,880 11,600,888 41,081,957 8,477,892 42,952,191 9,701,187 18,376,234 59,952.285 17,274.491 86,362.654 50,195,827 108,680,844 76,978,061 66,468.481 112,409,947 40,361,580 15,466,891 37,522,086 48,286,759 63,185,177 48,568,950 47,090,595 81,459,986 92,594,024 38,573,591 51,399,176 Iliiilili tiilli.ill! $2,783,921 19.267,823 36,415,<>>0 23,015,502 37.438.296 54,016,413 44.010,072 58,578,017 38,436,786 58,982,656 . 55,937.253 '2i^532"892 56,632,300 89,484.865 51,882,805 63,004,048 22,001,761 64 658 901 1853 -w 1854 1855- 16S8 _ 1857 :.. 1888- — 1889 I860 S§ :::::;:::::::.- $14,867,957 1868 1864 _ „J 1866 - 1866 1867 : 1868 — 1869 . — -._ - 21,870,930 21,579 012 1870 - 1871 - .-- 59 802 647 1872- 40 831,302 1873 -_ 36,174,268 14,539,283 1874 _ „- - _- 1875 53,284,184 23,184,341 844.140 1876- 1877 .- ~ 1878. „ 4,125,760 1,037,334 77,119,371 97,466,127 1,789,174 6,138,281 1879 1880. 1881 1882 _ 1888 1884 18,250,640 1885 ^ 18,218,804 25,558,083 1886 .- „. 22,208,842 1887 1888 1889 49,667,427 1890 4,331,149 1891 68,130,087 1892 :::::z~::::z: 495,873 1893 1894. 87,506,463 4,528,942 1895 30,083,721 1896. ""iT,m',20o" 104,935,283 . 51,432,517 78,884,882 1897 1898. 1899 1900 8,693,575 1901 12,866,010 3,452,804 1902 1903 2.108,568 1904 17,595,887 1905 88,945,063 190f5 57,648,189 63,111,078 1907 Tl»e Mo-faMvisest Imposts ever levied in this country. Eit^-er the foreigrn mau- nfacturer tvould pay the duty or the home manufacturer fvould gfet the trade. — London Daily Telegraph. December 10, 1903. In the first place it is said that the policy of the admin- istration has been directed for the last four years ajuvn i ii n t organized capital, and that it has thereby frightened in- vestors. I deny it. The course of the administration has been directed against such organized capital as was vio- lating the statutes of the United States— and no other. it had every consideration and desire to ai«l and assist organ- ized capital TThich -was engaged in legitimate liusint'.sji.— Hon. \Vm. H. Taft, to Mercliants and Manufacturers' Association, Boston, Mass. STATISTICAL STATEMENTS. 617 Coinage of the United States mints from 1850 to 1907. [From the report of the Director of the Mint.] Calendar year. Total colnasre. Gold. Silver. Minor. Total. 1850 1851 1852. 18.53 1854 1855 1856 1857 1858 1859 1860 1861 1862 1863 1864 1865 1866 ]867 1868 1869 1870 1871 1872 1873 1874 1875 1876 1877 1878 1879 1880 1881 1882 188.", 1884 1885 1886 1887 1888 1889 1890 1891 1892 1893 1894 1895 1896 ISPT 1898 1899 1900 1901 1902 1003 1904 1905 1905 1907 Dollars. 31,981,738.50 62,614,492.50 56,846,187.50 39,377,909.00 25,915,962.50 29,387,968.00 36,857,768.50 32,214,040.00 22,938,413.50 14.780,-570.00 23,473,654.00 83,305,530.00 20,875,997.50 22,445,482.00 20,081,415.00 28,295,107.50 31,435,945.00 23,828,625.00 19,371,387.50 17,582,987.50 23,198,787.50 21,032,685.00 21,812,645.00 57,022,747.50 35,254,630.00 32,9.51,9*0.00 46, 579, 452.. 50 43,999,864.00 49,786,052.00 39,080,080.00 62,308,279.00 96,850,890.00 65,887,685.00 29,241,990.00 23, 991, 7.56.. 50 27,773,012.50 28,945,-542.00 23,972,383.00 31,380,808.00 21,413,9.31.00 20,467,182.-50 29,222,005.00 34. 787, 222.. 50 56,997,020.00 79,546.160.00 59, 616, 357. .50 47,053,060.00 76,028,485.00 77,985,7.57.00 111,844,220.00 99,272,942.50 101,735. 187.. 50 47,184,9.32.-50 43.683,970.50 2.33,402,428.00 49,638,441.00 77,538,045.00 131,907,490.00 Dollars. 1,866,100.00 774,397.00 999,410.00 9, 077,. 571. 00 8,619,270.00 3,501,215.00 5,142,210.00 5,478,760.00 8,495,370.00 3,284,450.00 2,259,390.00 3,783,740.00 1,252,516.50 809,267.80 609,917.10 691,005.00 982,409.25 908,876.25 1,074,343.00 1,266,143.00 1,378,255.50 3,104,038.30 2,-504,488.50 4,024,747.60 6,851,776.70 15,3f7,893.00 24,503,307.50 28,. 393, 0*5.-50 28,518,850.00 27,569,776.00 27,411,693.75 27,940,163.75 27,973,1.32.00 29,2*6,968.45 28,534,866.15 28,962,176.20 32,086,709.90 35,191,081.40 33,025,606.45 35,496,683.15 39,202,908.20 27,518,856.60 12.641,078.00 8,802,797.30 9,200,3-50.85 5,698,010.25 23,089,899.05 18,487,297.30 23,0.34,033.45 26,061,-519.90 36,3*5,321.45 30,8-38,460.75 30,028,167.20 19,874,4*0.00 15,695,60r).95 6,332,180.90 10,651,087.85 13.178.435.75 Dollars. 44,467.50 99,635.43 50,630.94 67,059.78 42,638.35 16,030.79 27,106.78 178,010.46 246,000.00 361,000.00 205,680.00 101,000.00 280,750.00 498,400.00 926,687.14 968,552.86 1,042,960.00 1,819,910.00 1,697,1-50.00 963,000.00 850,325.00 99,890.00 369,380.00 379,455.00 342,475.00 246,970.00 210,800.00 8,525.00 58,186.-50 165,003.00 391,. 395. 95 428,151.75 960,400.00 1,601,770.41 796,183.78 191,622.04 3*3,186.10 1,215,686.26 912.200.78 1,283,408.49 1.. 384, 792. 14 1,312,441.00 961,480.42 1,134,931.70 438.177.92 882,430.56 832,718.93 1,526,100.05 1,124,835.14 1,837,4.51.86 2,031,137.39 2,120,122.08 2,447,795.17 2,251,281.18 1,683,529.35 2,298,555.43 2,890,908.80 3,042,126.18 Dollars. 33,892,306.00 63,488,524.93 57,896.228.44 48,522,-539.78 34,577,870.85 32.905,243.79 42,027,115.28 37.870,810.46 31,679,783.50 18,429,020.00 25,938,704.00 87,280,270.00 22,409,264.00 23,753,149.80 21,618,019.24 29.954,665.36 33,461,314.25 26,. 557, 411. 25 22,142,880.-50 19,812,130.-50 24,927,368.00 24,236,613.30 24.686,513.50 61,426,950.10 42,448,881.70 48,5*6,803.00 71, 293,. 560. 00 72,401,434.50 78.363,088.-50 66,814.859.00 90.111,368.70 125,219,205.-50 94,821,217.00 60,093,728.86 53.323.106.43 56,926,810.74 - 61,375,4.38.00 60,379,150.66 65.. SIS, 61 5.23 58,194,022.64 61,054,882.84 58,053,-302.60 48,389,780.92 66,931,749.00 89,184,688.77 66,196,798.31 70,975,677.98 96,041,882.35 102,144,625.59 139,213,191.76 1.37,6*0,401.34 134,693,770.33 79,660,895.87 65,809,691.68 2.50,781,-567.30 .58.269,177.33 91.080,041.65 148,128,051.93 The credit of tlie Government, tlte integrity of its cur- rency, and the inviolability of its obligations mast be pre- served.— -President McKInley's inangraral. Evils are to be suppressed by definite and practical nkeas- ures — not by oratory or denunciation. — Hon. Wm. H. Taft, at Greensboro, North Carolina. The sncecfcH of the United States in material development is the most illustrious of modern times. It is my deliberate Judfi-ment that the prosperity of America is due mainly to its system of protective laws. — Prince BIsmarclc. The Democratic leaders have been for years making loud declarations against corporations and trusts and railroads and have, nevertheless, instituted no legislative steps in all this time for the purpose of restraining abuses. They are noTV indignant that the Republican party, in carrying out the promises of its own platform, is putting Into prac- tice the principles Tvhich they, ivlth a superb self-compln- cency, claim are really covered by a Democratic patent. — Hon. Wm. H. Taft, at Greensboro, North Carolina. 518 8TATI8TI0AL STATEMENTS. Production of gold and silver in the world since the discovery of America. [From 14U3 to 1885, from a table of averages compiled by Dr. Adolph Soetbeer; since the latter date, the estimates of the Director of the Mint.] Period. 1493-1520. 1521-1541. 1545-15(iO- 1561-1580. 1601-1620- 1581-1600- 1621-1640. 1641-16(;0- 1661-1680. 1681-1700. 1701-1720. 1721-1740- 1741-1760. 1761-1780. 1781-1800. 1801-1810. 1811-1820- 1821-1830. 1881-1810. 1841-1850- 1851-1855. 1858-1860- 1861-1865- 1866-1870. 1871-1875- 1876-1800. 1881-1885- 1886-1890- 1891 1892 1895- 1896- 1897. 1900- 1901. 1902- 1903. 1904- 1905- 1906. 1907. Total Gold. Total for period. Ounces, line. 5,221,160 5,524,656 4,377,544 4,398,120 5,478,360 4,745,340 6,336,900 5,639,110 5,954,180 6,921,895 8,243, 12,268,440 15,824,230 13,313,315 11,438,970 5,715,627 3,679,568 4,570,444 6,522,913 17,60.5,018 32,051,621 32,431,312 29,747,913 31,350,430 27,955,' 27,715,550 23,973,773 27,306,411 6,320,194 7,094,266 7,618,811 8,764,362 9,615,190 9,783,914 11,420,068 13,877,806 14,837,775 12,315,135 12,625,257 14,354,680 15,852,620 16,801,372 18,268,696 19,366,550 Value. 584,231,094 Dollars 107,931, 114,205, 90,492, 90,917, 113,248, 98,0(J5, 110,324, 110,571, 123, 08i, 143,088, 170,403, 263.611, 327,116, 275,211, 236.484, 118,152, 76.063, 94,479, 134,841, 363.928, 662,666, 670,415, 614.944, 648.071, 577.883. 572,931, 495,582, 564,474, 130,650, 146,651, 157,494, 181,175, 198,763, 202.251, 236,073, 286,879, 306,724, 254,576, 260,992, 296,737, 327,702, 347,377, 377,647, 400,342, 403.000. Annual average for period. Value. Dollars 3,855,000 4,759,000 8,656,000 4,646,000 8.662,000 4,905,000 5,516,000 6,828,000 e. 154, 000 7,151,000 8,520,000 12.681,000 16,856,000 13.761,000 OOOi 11.823,000 000! 11,815,000 OOOi 7,806,000 OOOI 9,448,000 12,480,130,600 13.484,000 38,893,000 132,513,000 134,083,000 122,989,000 129.614,000 115,577,000 114,586,000 99,116,000 112,895,000 130,650,000 146,651,500 157,494,800 181,175,600 198,768,600 202,251,600 236,073,700 •1'86,879,700 306,724,100 251,576,300 260,992,900 296,737,600 327,702,200 347,377,200 377,617,700 400,342,100 403,000,000 Silver. Total for period. Ounces, fine. Coining value. 42,309,400 69,598,3201 160,287.0401 192, 578,. 500 271,924,700 269,352,700 253,084,800 235,. 530, 900 216,691,000 219,841,700 228,650,800 277,261,600 342,812,235 419,711,820 565, 235,. 580 287,469,225 173,857,555 148,070,010 191,758,675 2.50,903,422 ll2,442,986 145,477,142 177,009,862 21.5,2,57,914 316,. 585, 069 393,878,000 460,019,722 544,557,155 137.170,919 158,1.51,762 185,472,621 164,610,394 167,800,960 157,061,370 160,421,082 169,055,253 168,337,4.53 173, .591, 384 173,011,283 162,763,483 187,689,322 184,105,266 160,588,839 165,754,848 9,831,584,085 Dollars. 54,703,000 89,980,000 207,240,000 248,990,000 351,579,000 348,254,000 327,221,000 304,625,000 280,166,000 284,240,000 295,629,000 358,480,000 443,232,000 542,658,000 730,810,000 371,677,000 224,786,000 191,444,000 247,930,000 324,400,000 184,169.000 188,092,000 228,801,000 278,313,000 409,322,000 509,256.000 594,773,000 704,074,000 177,352,300 198,014.400 213,944,400 212,829,600 216,. 566, 900 203,069,200 207,413,000 218,576,800 217,618,200 224,441,200 223,691,300 210,441,900 216, 810, .300 212,202,900 219,266,300 214.309,200 Dollars. 1.9.54,000 3,740,000 12,952,000 12,450,000 17,-579,000 17,413,000 16,361,000 15,226,000 14,008,000 14,212,000 It, 781, 000 17,924,000 22,162,000 27,133,000 36,540,000 37,168,000 22,479,000 19,144,000 24,793,000 .^^2, 440,000 .36,a3l,0!J0 37,618,000 45,772,000 55,603,000 81,864,000 101,851,000 118,955,000 140,815,000 177,352,300 198,014,400 213,944,400 1212,829,600 216,560.900 203,069,200 207,413,000 218,576,800 217,618,200 224,441,200 223,691.300 210,441,900 216,810,300 212,292,900 219,266.300 214,309,200 12,711,478, Tlie depreaslon and ruin that -was inausrnrated with tlktit tariff re-vision hir the Democratic party ia viyid in the minds of all.— Hon. P. P. Campbell, in Coneress, April 1, 1904. The rail-tvays can hiame no one bnt themselves if the revelation of the ilavrant violations of law and of their unjust administration of a public trnst have led to an out- burst of popular indigrnation and have brought on temporary excess.— Hon. Wm. H. Taft, at Columbus, Ohio. The nation has appreciated the valor and patriotism of the black men of the United States. They not only fought in Cuba, but in the Philippines, and they are still carrying the flaj? as the symbol of liberty and hoi>e to an oppressed peo- ple. — President McKinley to colored citizens, at Chicagro, Oct. Much money has been spent on sea harbors and the mouths of our rivers at the sea, but comparatively little upon the internal -tvaterways vrhich nature has furnished to the country, and which form hiKh^vays of travel from one border of it to the other. The call fronu the country for the development of a TFcll-thought-out plan for the improve- ment of all these vi'ater^vays is so emphatic that It cannot longrer be resisted. — Hon. Wm. H. Taft, at Kansas City, Mo. STATISTICAL STATEMENTS. 519 Growth in coal production in free-trade Great Britain, compared with that of the protection countries, United States, Germany, and France; also the total coal production of the world and the per cent supplied by the United States at quinquennial periods from 1810 to 1895, and annually from 1896 to 1906, in tons of 2,000 pounds. [Prom r«ports of the United States Geological Survey.] Year. United States. Great Britain. Germany. France. Total pro- duction of the world. Per cent of U.S. 1870. 1875 1880 1886 1890 1895 1896 1897 1898 1899 1900 1901 1902 1903 1904- 1905 1906.... Short tons. 33,035,580 52,348,320 71,481,570 111,160,295 157,770,963 193,117,530 191,986,357 200,229,199 219,976,267 253,741,192 269,684,027 293,299,816 301,590,439 357,356,416 351,816,398 392,722,(^35 414,167,278 Short tons. 123,682,935 119,303,263 161,605,738 178,473,588 203,408,003 212,320,725 218,804,611 226,385,523 226,301,058 246.506,155 252,203,056 245,332,578 254,346,447 257.974,605 260,319,665 261,464,408 281.1&5,743 Short tons. 37,488,312 52,703,970 65,177,634 81,227,255 98,398,500 114,561,318 123,913,159 132,762,882 144,283,196 149,719,766 164,805,202 168.217,082 165,826,496 179,076,630 186,785,378 191,57(5,074 222,350,526 Short tons. 14,530,716 18,694,916 21,346,124 21,510,359 28, 756; 6*38 30,877,922 32,167,270 33,938,987 35,6.->6,428 36,215,026 36,811.536 35,596,536 33,286,146 38,466,873 37,663,349 38,9=il,3R0 87,828,931 Short ton9>w 234,850,088 308,479,177 369,413,780 447.783,8'J2 563,093,232 644,177,076 661,001,718 697,213,515 . 738,129,608 801,976,021 846,011,&18 870,711,014 888,453,950 972,195,531 983,527,562 1,034,1^6,601 *1,106,478,707 14.07 16.97 20.62 24.82 27.99 29.98 28 An 28.72 29.80 31.63 31.88 33.63 33.95 36.78 35.78 37.98 37.43 •Latest available figures arc used in makinsr up totals for 1906. (From page 620, Mineral Resources of the United States, 1906.) Our exports to the Orient in 1901 compared with 1890. The following table shows the exportation of leading- articles from the United States to China, Hongkong, Japan, Asiatic Rus- sia, Australasia, Hawaii, and the Philippine Islands in the fiscal years 1890, 1897, and 1907, respectively: Articles. 1890. 1897. 1907. Iron and steel, manufactures of Dollars. 2,928,971 1,532,181 7,246,111 3,521,936 . 85,211 2,017,508 2,117,058 1.070,462 732,260 128,277 424,952 518,190 . 575.254 114.988 441.430 Dollars. 7,651,014 7.767,361 10,785,435 8,265,865 2,354,758 2.127,181 2.413,205 1,597.054 1.129,933 781,055 1.161,365 602,120 527,130 321,006 533.482 Dollars. 23,771.958 8.544.451 15,022,782 19.369.831 14.317.085 6.151.259 6.166,514 2. 60'), 447 Cotton cloth _ Mineral oils Breadstuffs _ _...._ Cotton, and manufactures of Tobacco, and manufactures of Wood, and manufactures of ... Chemicals . Leather, and manufactures of 3,786,130 2,067,977 Paper and manufactures of Carriages and cars 1,808,001 Provisions Agricultural Implements 2,177,441 1.968,416 Fertilizers — , Fruits and vegetables 883,320 1.277.127 I believe tliat tlie x>rotectlve system lias been a. mi^lity inistrTinient for the development of onr national Tvealtli and a most povrei-ful agrency in protecting the homes of oar workinsmen.— Harrison. The higrhest claim of William McKinley for the g'ratitnde of his countrymen is that, in spite of the abnse and eon- tnmely that was heaped npon his head fwr this policy, he placed onr country in the forefront of nations as a civilizer and nplifter of unfortnnate peoples.— Hon. Wm. H. Taft, at Cleveland, Ohio. I believe that a navy is the greatest insurer of peace that Tve could possibly have — a navy commensurate -with our resources, and -commensiinvate "*vith our coast line, and com- mensurate -frith the number of dependencies -^ve have, and commensurate with our population, and commensurate >vith onr influence as a world povrer.— Hon. "Wni. H. Taft, at Cleve- land, Ohio. 520 STATISTICAL STATEMENTS. Relative advance in prices of free and dutiahle articles, respec- tively {denominated l)y the Democratic Campaign Book as ''Controlled hy Trusts"), 1896 to 1907. Itema on free list. Anthracite *ove coal (f. o. b. New Vork) per ton., Anthracite broken coal (f. o. b. New York) per ton.. Copper, lake, ingot (New York) per pound— Jute, spot -do Petroleum, crude (at well) - per barrel- Petroleum, refined— per gallon. Rubber, island per pound- Sisal, spot — . do Binder twine do July, 1890. July, 1001. iffi- July, lUO.i. Jauu- 1904. $3,881 $4,236 $4.80 $4.75 3.228 3.509 4.55 5.00 .115 .035 .17 .035 $0.1225 .0325 .1425 .045 .125 .045 1.0825 .069 .84 .0362 .0675 1.1337 .069 .86 .0562 .0975 1.22 .071 .77 .095 .1425 1.50 .14 .87 .0762 .145 1.85 .15 .94 .075 .145 Decem- ber, 1K07. $4.9503 4.2017 .14 5.5 1.78 .1350 .78 6.5 12.00 Items on dutiable list. Alcohol (94 per cent).. per gal.. Brick per thousand- Bread, Boston crackers-per lb.. Cotton flannels per yard.. Cement, Rosendale per bbl.. Fish, canned salmon. .per doz.. Ginghams ..per yard.. Glassware, pitchers per doz.. Wire nails per keg.. Cut nails — do Fresh beef sides per lb_- Salt beef _ per bbl.. •Salt pork do Hams, smoked do Pig iron, foundry, Philadelphia per ton.. Rice —.per Ib-. Sugar, centrifugal .—do... Sugar, granulated do... Steel rails, Pittsburg.. per ton.- Ju'y. July, July, July, Janu- ary, 19U4. 1896. 1901. 1902. 1908 $2.31 $2.43 $2.51 $2.48 $2.40 5.25 5.75 6.25 5.25 .065 .08 .08 .07 .065 .0825 .08 .85 .100 .95 .90 .95 1.65 1.70 1.65 1.65 1.65 .0425 .0475 .08 .08 1.25 1.30 1.30 1.30 1.15 3.15 2.40 2.10 2.05 2.00 2.90 2.10 2.05 2.20 1.95 .075 .09 1.25 .125 16.00 21.50 22.50 11.50 11.00 8.25 16.75 19.75 17.75 13.50 .10 .115 .125 .1375 .12 12.75 15.87 22.75 18.50 15.00 .0525 .0537 .0575 .55 .04 .035 .0425 .0337 .0356 .0317 .016 .0524 .0175 .047 .0436 28.00 28.00 28.00 28.00 28.00 Decenci- ber, 1907. $2.63 5.50 .03 a. 10 .95 bl.65 c.07 1.05 2.15 2.1250 .0370 10.6250 15.1250 .1068 18.94 .06 .03794 .0455 .28 a 2% yards to the pound. b August, 1907. c Amoskeag. Tlie nvay to lielp labor is to provide it -tvitli steady worli and grood ^vagres and then to have those ^ood vrases always paid in grood money.— Maj. McKinley to delegation of -wori*;- men, Aagpnst 24, 1896. I believe it is a grood deal better to open the mills of the United States to the labor of America than to open the mintH of the United States to the silver of the vrorld.— MaJ. McKinley to his comrades of the 23d Ohio Regiment, at Canton, Au- gust 12. 1896. The avowed policy of the National administration of these tTTO Presidents has been and is to govern the Islands, having regard to the interest and welfare of the Filipino people, and by the spread of general primary and industrial education and by practice in partial political control to fit the people themselves to maintain a stable and well- ordered government affording equality of right antl oppor- tunity to a.11 citizens.— Hon. Wm. H. Taft, in special report to the President. In spite of the general comfort, there have been made manifest by signs not to be misunderstood, a quickening of the public conscience and a demand for the remedy of abuses, the outgrowth of this prosperity, and for a higher standard of business integrity. Every lover of his country should have a feeling of pride and exaltation in this evi- dence that our society is still sound at flie core.— Hon. Wni. H. Taft. at Columbus, Ohio. STATISTICAL STATEMENTS. 629 Commerce of the World Since 1830. This table showing- the commerce of the principal countries of the world at intervals from 1830 to 1907 will be useful for reference in considering the question as to the effect of high or low tariffs upon trade of the countries utilizing these resjiec- tive systems. It will be noted that the commerce of the most highly protective countries shows in nearly all cases a higher percentage of gain, comparing 1907 with 1897 or 1890, than does that of the United Kingdom, the sole remaining represent- ative of the low tariff", or free trade principle. The foreign commerce of the United Kingdom in 1907 is 47 per cent greater than that of 1890 ; that of France, 50 per cent ; Germany, 109 per cent; and the United States, 116 per cent greater in 1907 than in 1890. g s, §5 o 3 § S « r-IIOMCO-ti'M'MOT-JrHO.-ICOCO .--.,-~rX2 03 03 u - -_r CS - ■ > (M to ^ * tXN 00 I 00 r-ICO Ifllfl.? I C<5 O 1-- 1-H r-l C ' ■* CO 05 00 S >oo St^r-ioseot^Oc^r-ooGOoo- OOOOOC-JINOar-l ■*O-^C0050vill produce a change in their maiiuge- ment antl remove one fruitful cause for loss of public con- ildence.— Hon. Wm. H. Taft, to Merchants and Manufactnver:* AssoeJulion, Boston, Mass. 522 STATISTICAL STATEMENTS, 2. J '5 § S,°S55g??::;^::33S?82 5:§g3t:i5S,tsa«S SJC iH CO M ip « Okt^ «or« ij lO o rH r-t *5 M eg ©i .-I * iH* ' e-i «o ' ' e« rn ' n r^ ' i-J ri ' ' tej s fe8^3§83:J85^sss5 5i8t55iiMss^5"as?2 sgir l>. (MC<5»ft*WMiM «el»«<5S 'S9ss^«g5gs5'" as I 5C>< ii iipjjj.iiill IF la >o •*»o■^eo«o■>*<«c^-•■^■*eo co -f MS • »a to m ih *'e^'*-*K»eoeoeo eONC«»<« - 88$ I I i±J + l I + + fli ii^^^i il il MCO ±_L11. 5,3 l~T§iliiii§IIFTili¥ill¥¥8si"~8¥ \% S « N r5 i-< t^ lO ^ rf (N «b r-l ®lO iFlIS 2'J2 c3 5> 00 Qplft(^]f^'^^-oooog^ ■*fo>r-co».sgfMfr-)r-c t^ Sooa>oocoSKi^eo omt3o>ftco(N-*a3^c t^ ira ■* -*< »i illl g° + 53 s + + I is? l + l + l I 1 + + I++I I++I I I 1 + ;8 2! SS eSift 1^" I Cq 1^ CO lO OS r-l C I ir> X (M X> O 35 5 I O in (N r-l O 05 ■ I'iiWcci-iEaOT'tiTH iOco<»Oi5oe^rHic COaS'lOOlO-tlfo &COtHlrtrHCOCOlo55lftOOCOlM lOlM(Mi-lrHi-lr-(rH OO»0C0(MtHC0 iCi-ti-KM o 00 ift h- --I 00 r oa (M CO O C CO C-l CO GO r 1 05 C5 t^ ^ O c5 iCO-tli-l OOOi-l-"lOcpiMr-l©OC 1 -X CO ITi I-- h- (M O t^ CO Q r- O 05 ^ O O ' i-*!Niftininc» eo'* t^ CO— >ni^Or-iO'-ocroio eo-»f-*i~coc?eoi 00 in eoO>"^ co©r~ o5r-( 2s coo © oo co co co © iS r-i t ^^ in c^ rH in IT' 1 I © ao oi I- CO ic ( , ^ - -^ f^ r^ -* r-( < (M © ©« « a ?. ir, '••' '•■^ rt laf-s 2 -^ = 5 ?? ?a S £ « >> §-B^ i* 3'^~ '3;:cs£x:so3tfifc.c; ar. « g ^ qj o 5 s a OQCOD O STATISTICAL STATEM ENTS. 623 5= 5 <0 5% CO '^ a» »-" q .-c " ,2 ^ d "^ lo — I ■* o^ o o ■^o C5 (M eo 'z? r ^ '^o 35 oo J) CO to fjo -1 -f •.~ « ao C2 lo lo C5 'M — I o ■ ■ ^ M & ^IC i-H rJ I^CO O t-05 r^O -t< M 1- C2 Q li^ -" » o ir fe » -H o :» o r^ o 00 -o CD I - a; 3 »H Eh «->^ q ^ gj Qj ^ •o q . CO SCO Si s-i ^ s-i CSlOT0rH-Mi0 1--C0C0T-IO'r-O00t^C0Ot0 lOi Sr~ < I lA OS T-< 05 ao r^ "©"o ?3 cTc^T '!<"« -/Do"-^--! Its OOio'ino" ^ >] Si -O -* t^ r-- CS in -M M (M C} eo Si -* CO ^ '!o "n *n ef^ f5i r^ krt »-j CO ■>! crfi r.T m J O :0 "O O Ol r~ lO . en ir. S 00 1-- oo ) CO 03 CO CO eo CO CO Cm ^ ..-. >-.< -.-M lO iri 3«0'M>O(M'rt in vr t-T ^' m" oT c^T in to in cT o CO* -M* 3i-t50CO^rHt^O^XrOvn01(M ioinm<»i-»t^t-c»o>05C»r-io-*ONeo C^JOlt^OOCOin-W— (02?^t^05QCOr-lT-l -* io r~ -r< -t"M in 1" o O -M -M f- o5 t^ in -X ^iHoino5»>^;oinr5i6iftMin«f in CO -j^'co h-'"-o"o"o*-i<"o»'3?co''oo ^""co irT c3(M-Ti<-p3'-^ooinco35-*"*«»oo5-)no«>or-e?X-f O 1^ zo lO 55 00 in-xT-^-*' eoofl-* i-Too r-rco''5; aj ia n/3 m ^ tn , ^^ .2 1:"^*^ q C3 TofaZ actual expenditures and per capita expenditures of the principal countries of the world, in the latest year for tohich figures are availaMe. Countries. Argentina Australian Commonwealth Belgium Canada _ _ Cuba France Germany Italy Japan Netherlands Portugal Eussia Spain Sweden United Kingdom United States Population. Expendiure. $98,380,000 Per capita expeudiiure. 5,878,000 $17.33 4,048,000 164,971,000 40.75 7,161,000 109,367,000 15.27 6,440,000 51,061,000 8.39 ' 1,573,000 18,998,000 • 12.08 39,300,000 715,420,000 18.20 60,478,000 .522,445,000 8.64 33,604,000 367,245,000 13.11 47,975,000 246,363,000 5.14 5,592,000 74,760,000 . 13.37 . 5,162,000 63,096,000 12,22 141,000.000 1,050,448,000 11.71 18,618.000 165,675,000 8.90 « 5,261.000 51,826,000 9.85 43,221,000 678,464,000 15.69 85,817,000 578,904,000 G.75 jVoi open mints for tlie nnlimited eoinase of tl»e silver of llie world, l>nt open mills for the full and nnrestricted labor of tlie American TFOrkingmen.— Maj. Mcltinley's letter of ac- ceptance. Tlie panic Tvas donbtless cliieily due to tlie exlianstion of tlie free caiiltal of the ^vorld by reason of tlie over- investment in enterprises tliat liave not been as prodnctive as expected. Tlie enovmons industrial expanaion lias at last tied up-nearly all tlie world's capital wbicb was avail- able and new investments bad to halt. This result was world-wide.— Hon. Wm. H. Taft, at Kansas City, Mo. 624 8TA TISTICAL ST A TEMENTS. I O 6J *i ^ O .^ to S 5 Si « « a 's -^ X, ^t 1 qi - ^ - I ii 2 .g a. Bk ^ to g §^ 4) O 2 *- ss ■ to -< ^ 'lis o in O o 00 (T'rH o ■^ iH t- «i ec » i"*o>ose5>-ir-i->t.r^5e 5« s®®®®^®®® 3 s s33Sffi;:s3??!5,'::g; iH i-H i>] iM 55 r-( J (M( O U tH r-l rH l?q iH »a rH iH r-t n P3- o CO 10 oiooaSojwoocotD'fi.'^to 05 55 r- 25 rH & Ttt 05 ■* 10 r-H to a> O CO OI^-<'-*(MC>COOOCilft ■^ ■* ■»»( kO CO 00 OS o'i-Tm";*} mm" iH i-l iH i-H iH i-l 1— fCO'^CCr-tOi'^CiCS 0(N-*cOOOiCiffin CO ]cococo-f rH rH 1-- t^CO O 00 O O ITS > - a art C-<3 > o a . £'3 6)0 t; 00 ;0 -Si C aj'S, cs — 4) +i . eS ci:j= o*j p. r^ r/~ O Ca laj. McKinley to delegration of farmers, Augfnst 24, 1896. Vigorous action and measures to stamp out existinjL;- abnses and eifect reform are necessai'y to vindicate society as at present constituted. Otherwise, we must yield to those ivho seek to Introduce a new^ order of things on a socialistic basis.— Hon. Wm. H. Taft, at Kansas City, Mo. Any unjust discrimination in the terms upon -tvhich trans- portation of frels'ht or passeng:ers is afforded an individual or a locality paralyzes and ^vithers the business of the in- dividual or the locality exactly as the binding of the ar- teries and veins leading- to a member of the human boily destroys its life.— Hon. Wm. H. Taft, at Columbus, Ohio. Only tvrice in all that remarkable history of 48 years have we lost the confidence of the people of the United States to the point of their turning: over the government to a Democratic executive. I venture to say that neither in this nor in any other country can be disclosed such a remarkable record of arduous deeds done as in that history of a half a century of the Republican l»arty.— Hon. Wm. H. Taft, at Kansas City. Mo. STATISTICAL STATEMENTS. St5 Party divisions in Congress since the formation of the Republi- can Party in 1856. Years. Senate. House. Congress. Dem. Rep. Ind. Dena. Rep. Ind. 85. 36 1857-1859 1859-1861 alS61-1863 al863-1865 1865-1867 1867-1869 1869-1871 1871-1873 1873-1875 1875-1877 1877-1879 1879-1881 1881-1883 1883-1885 1885-1887 1887-1889 1889-1891 1891-1893 1893-1895 1895-1897 1897-1899 1899-1901 1901-1903 1903-1905 1905-1907 1907-1909 39 38 10 9 11 11 11 17 20 29 39 44 38 34 37 37 39 44 39 34 26 29 32 32 29 20 26 31 36 41 42 58 57 47 43 36 32 37 e40 42 39 39 47 38 42 46 53 56 58 58 61 5 2 2 5 ___„.-. b2 bl ........ f3 i5 hlO 111 n3 131 101 42 75 40 49 78 103 92 168 151 148 138 198 204 168 159 236 220 104 il34 163 153 174 136 164 92 113 106 102 145 143 151 138 194 107 142 129 146 124 120 153 166 88 126 246 206 185 198 206 250 222 14 23 37„_^ 38 28 9 40 r"-i"iizi 43 r ""'bs 14 44 45 — - 46 _ — ""ci6 47 - — - ciO 48 cl 49 cl 50— 4 51 52 - ; fS 53 f8 54 _ 55 f7 113 56 57 — k9 m5 58 — 02 59 60- Parties as constituted at the beginning of each Congress 'are given. These figures were liable to change by contests for seats, etc. a During the Civil War most of the Southern States were unrepresented In Congress. b Liberal Republicans. c Greenbackers. d David Davis, Independent, of Illinois. e Two Virginia Senators were Readjusters, and voted with the Republicans. f People's party, except that in the House of Representatives of the Fifty- fourth Congress one member is classed as Silver party. g Three Senate seats were vacant (and continued so) and two Representative seats were unfilled (Rhode Island had not yet effected a choice) when the session began. Rhode Island subsequently elected two Republicans, h Five Populists, two Silver party, three Independents, i Including fifteen members classed as Fusionists. j Including three members classed as Silver party. There was one vacancy. k Six Populists, three Silver party. 1 Five Populists, one Silver party, two Independents, and three vacancle*. m Three Populists, one Silver party, one Fusion party, one vacancy. n One Populist, one Silver party, one Fusionist, two vacancies. o Two Union Labor and two vacancies— one Democratic, one Republican. Tou eaiinot set consumers tlii'ousrli tlie mints; you get tliem tlirouuli tlie factories.— Maj. McKinley to delegation of farmers, Aug. 24, 1896. Resuscitation Trill not be prompted by recrimination. Tbe distrust of the present Tvlll not be relieved by a distrust of tlie future. A patriot malces a better citizen tlian a pessi- mist.— President McKlnley before Manufacturers' Club, Pbila- delphia, June 2, 1S97. Xothing- sbould ever tempt us— nothing ever Tvill tempt us —to scale down the sacred debt of the nation through a legal technicality.— President McKinley before National Associa- tion of Manufacturers, Xew York, Jan. 27, 1898. The administration of exact Justice by courts -without fear or faAor, unmoved by the influence of the wealthy or by the threats of the demagogue, is the highest ideal that a government of the people can strive for, and any means by which a suitor, however unpopular or poor, is deprived of enjoying this is to be condemned.— Hon. Wm. H. Taft, at Columbus, Ohio. A railroad company engaged in interstate commerce should not be permitted to issue stock; or bonds and pat tljcm on sale in the market except after a certificate by the interstate commerce commission that the securities are i?..sued Avith the upprovaJ of the commission for a legiti- 1^8 I te railroad purpose. — Hon. Wm. H, Taft, at Columbus, Ohio. 526 STATISTICAL STATEMENTS. The Electoral College in 1908. states. ism States. 1908 10 5 3 5 13 3 27 15 13 lu 13 9 6 8 16 14 11 10 18 a 8 3 4 Arkunsas New Jersey 12 California New York 39 12 North Dakota 4 iK'lawar* Ohio 23 Florida 7 Qeorgla Oregon v 4 Idaho Pennsylvania 34 Illinois Rhode Island 4 Indiana South Carolina 9 Iowa .(I... •• Rniith Dalcntfl 4 Kansas TpnTiflsaaA 12 Kentucky . 18 Utah 3 •Maine 4 Maryland . Virginia 12 Massachusetts Washington .. ....... .... 5 Michigan Minnesota West Virginia Wisconsin . .... 7 18 Mississippi Wyoming .... . . *. 3 Missouri Total Montana 483 Nebraska Necessary to a choice 242 Nevada Presidential vote and political record hy States, 1864 to 1904- Votes, 1904. Party receiving electoral vote In- 64 '68 72 '76 '80 '84 '88 '92 '96 1900 D D D D D D D D D D D D tD R R tD tR R Li R R P D i:> R D D D R R D D D D R R D D D D D D D D D D D D * » « P D D R R R D R R R D R D R R R R R R R R R R R P D R D D D D tR D D D D D D D R R R R R R D 7) D D R tR R R R R R R R R R :r R R R R R R R R D D D D D D D D T> D D D ♦ R D D R R R R D R D R R P D D n R R R R R T) T) D D R R R D R D R R D T> D D D D » tD R R R R R tR R R R R R tR R R R R/ R R R R R R R R R R T) D D D D D R D R D D D D D D D D D D D D * D R R R R R R R D D D D D D R D R D D D D R R R D R R R D R '04 Alabama — — H Arkansas - 9 California 10 Colorado 5 Connecticut 7 Delaware 3 Florida 5 Georgia 13 Idaho 3 Illinois - 27 Indiana .-_-15 Iowa 13 Kansas 10 Kentucky —13 Louisiana 9 Maine 6 Maryland _._ — 8 Massachusetts 16 Michigan _ 14 Minnesota 11 Mississippi 10 Missouri 18 Montana 3 Nebraska 8 Nevada 3 New Hampshire 4 New Jersey 12 New York 39 North Carolina 12 North Dakota 4 Ohio 23 Oregon — — 4 Pennsylvania _34 Rhode Island 4 South Carcjlina 9 South Dakota _. 4 Tennessee -12 Texas 18 Utah 3 Vermont 4 Virginia 12 Washington 5 West Virginia 7 Wisconsin 13 Wyoming ._ 3 *No vote. tOne electoral vote given to opposing party. {Five electoral votes given to opposing party. STATISTICAL STATEMENTS. 527 rH CO{Mi-li-l (MeiSrHi-ICDCOeo rH. i-H &OT-HCqrH05iM5lO0J5DlftI>-C035O00t^<>J5Da>WTtli--l©OrHiriO>C0l^-/j 1 r-l 1-1 (M rH JM . 1-- ■* 1^ th eo o »o 1 r-l (^i (M (N r1 rH l>j l-^C0-*-*r~lA-*r-li-IC000O- l«OCOrH-tfT-l(M(N(MeOCO(M©t rH 5S y? CO rH rHj I a sis ?f ^ ^*S S S g S S3 ^ S§ '^ sg S !«> S 8 g S ^ S g S S S? f (M ^rH ■ OCi t- »niRa>'*<«o>- CO 'iH (M a^^^i igla^l^l SSSS5; !?2SS^5?S ill SS2 1 ■HI 10 C5 t- CO < 16 eo (M CO ■ l§a Iiii3 1^1; rH (M ICOrH I 8- in A f-iO coS ir> CO 1^ ic i^ (M §ss?§ fe;:^ I llgl 1 inco Oi »n It- 00 ift moo •* 00 •* © 12 >o r-t in \ m -"^tiM 10 1 ^^3^ I I I I I I I I Ij i i i i ! I •a o.ii • ' ►. .fe e3 S^, «« « a U iliiir ' 1 c« ■ S3 53 "O en I I -S ft>. I O ■300 o S ! I I Mm C3 .S ■- ■ •'H O <» OJ o Oi S O t^t^oSS'S^c^-Sij; =?H ^ „ w - 2 3 c WILLIAM HOWARD TAFT In William Howard Taft the Republican National Convention has nominated for the Presidency a man exceptionally equipped, not only by nature and training, but by experience and achieve- ment, to perform the delicate and arduous duties of the greatest office in the gift of any people. For nearly thirty years he has given himself with single-minded devotion to the public service. He has displayed throughout a broad grasp of affairs, a literally dauntless courage, an unshakable integrity, a quick and all em- bracing sympathy, a deep and abiding sense of justice, a mar- velous insight into human nature, a sure and imwavering judg- ment, executive ability of the highest order, and a limitless capacity for hard work. In all the years of its history the Kepiiblican pai-ty has never selected as its leader in a National Campaign a man so tried beforehand, and so amply proved equal i to the task. A Family of Jurists. Mr. Taft comes of a family distinguished in the law and the public service. The first American Tafts came of the English yeomanry, transplanted across the Atlantic by the great upheaval for conscience's sake which peopled New England with its sturdy stock. In this country they turned to the study and practice of the law. Peter Taft was both a maker and an interpreter of laws, having served as a member of the Vermont legislature, and afterwards as a judge. Alphonso Taft, son of Peter, was graduated from Yale College, and then went out to the Western Reserve to practice law. He settled in Cincinnati, and it was at Mt. Auburn, a surburb of that city, on September 15, 1857, that his son, William Howard Taft, first became a presidential pos- sibility. The boy grew up in an atmosphere of earnest regard for public duty too little known in these days of the colossal and en- grossing material development of the country. His father earned distinction in the service of city and state and nation, going from the Superior bench, to which he had been elected imanimous- ly, to the place in Grant's cabinet now held by the son, then, as Attorney General, to. the Department of Justice, and finally into the diplomatic service, as minister first to Austria and then to Russia. His mother, who was Miss Louise M. Torrey, also cam^ of that staunch New England stock with whom conscience is the arbiter of action and duty performed the goal of service. His Mother's Influence. It was her express command that sent him away from her last fall when both knew that she was entering upon the last stage of her life He had promised the Filipirios that he would go to Manila and in i)erson formally open their Assembly. It was to be their first concrete experience in self-government, and he, more than any other man, had made it possible. If he should not keep his promise there was danger that the suspicious Fili- pinos would impute his failure to sinister motives, to indiiTerence or altered purpose, with result vastly unfortunate to them and to us. Mr. Taft saw all that very clearly, yet in view of his mother's health he would have remained at home. But she for- bade. She said his duty lay to the people he had started on the path to liberty, and although it involved what each thought to be the final parting she commanded him to go. He went and be- fore he could return his mother had passed away. Much was to be expected of a boy of such parentage, and young Taft fulfilled the expectation. He began by growing big physically. He has a tremendous frame. The cartoonists have «nade a false presentment of him familiar to the country by draw- 528 WILLIAM HOWARD TAFT. 529 ing him always as a mountain of flesh. But if they had gone to the same extreme of leanness, and still honestly protrayed his frame they would have represented a man above the average weight. At Collegre. Of course he went to Yale. His father had been the first alumnus elected to the corporation, and when young Taft had completed his preparatory course at the public schools of Cin- cinnati he went to New Haven for his college training. He was a big, rollicking, good natured boy, who liked play but still got fun out of work. He did enough in atheletics to keep his 225 pounds of muscle in good condition, but gave most of his time to his studies. When the class of '78 was graduated Taft was its salutatorian, having finished second among 12,0. He was also elected class orator by the class. He was then not quite 21. He went back to Cincinnati and began the study of law in his father's office, at the same tirrie doing court reporting for the newspaper owned by his half-brother, Charles P. Taft. His salary at first Avas $6 a week. He did his work so well, however, that Murat Halstead, editor of the Cincinnati Commercial Gazette, employed him to work for that paper, at the increased salary of $25 a week. While he was doing this he was keeping up his studies, taking the course at the Cincinnati Law School, from which he was graduated in 1880, dividing first honors with another student, and being admitted to the bar soon afterward. His Respeota to a Blackmailer. That fall there occurred one of the most celebrated and char- acteristic incidents in his life. A man named Eose was then running a blackmailing paper in Cincinnati. He had the reputa- tion of being a dangerous man. He had been a prize fighter, and was usually accompanied by a gang of roughs ready to assault any whom he wanted punished. Alphonso Taft had been the unsuccessful candidate for governor at that election, and Rose's paper slanderously assailed him. For once young Taft for- got his judicial temperament and legal training, and instead of setting the law on the blackmailer he marched down to his office and gave Rose a terrific thrashing'. Rose quit Cincinnati that night and his paper never appeared again, l^oung Taft had had his first spectacular fight, and it was in behalf of somebody else. It is not the purpose of this sketch to attempt a detailed biography of Mr. Taft. It merely seeks by a discussion of a few of the more important events of his life to show what manner of man he is. They reveal him as a student of application and ability ; a man with an abiding sense of justice, slow to wrath, but terrible in anger; courageous, aggressively honest and straightforward; readier to take up another's cause than his own. This is a foundation on which experience may build very largely, and that is what it has done for Taft. Tlie Call to Public Office. He was hardly out of his boyhood when he was called to public office, and in most of the years since then he has devoted himself to the public service. First he was assistant prosecuting attorney of Hamilton County, under Miller Outcalt, now one. of the leading lawyers of Ohio. In 1881 he became collector of internal revenue for the first Ohio district, and demonstrated the same ability in business that he had shown in the law. A year later he resigned that office and went back to the practice of law, with his father's old partner, H. P. Lloyd. In 1884 he became the junior counsel of a Bar Committee to constitute testament proceedings against Campbell, whose methods of practicing law had brought on the hearing of the Hamilton County Court house in Cincinnati. Though technically unsuc- cessful, Mr. Taft made a good reputation from his conduct of this matter and Campbell was drawn from Cincinnati.r In 1885 he became assistant county solicitor. Two year later Governor 5S0 WILLIAM HOWARD TAFT. Foraker appointed him Judge of the Superior Court, to Buceeed Judson Harmon who had resigned to enter President Cleveland's cabinet. In 1886 Judge Taft married Miss Helen Herron, daughter of Hon. John W. Herron, of Cincinnati. They have three children, Robert AlpHonso, a student at Yale, Helen, a student at Bryn Mawr, and Charles Phelps, 2d, who attends the public schools in Washington. ■!■ J«diol«l Career Bevun. His appointment as Judge of the Superior Court was the beginning of the judicial career which was Taft's ambition, and for which he was so eminently fitted. He made such a record as a judge that at the close of his appointed term he was tri- umphantly elected for another term. But already he had at- tracted attention outside his state, and he had served but two years of the five years for which he had been elected when President Harrison asked him to take the difficult post of Solic- itor General of the United States. This was an office of the ut- most importance, involving not only wide learning and tremendous application, but the power of clear and forceful presentation of argument. Two of the cases which he conducted as solicitor general involved questions of vital importance to the entire coun- try. The first grew out of the seal fisheries controversy with Great Britain. Mr. Taft won against such eminent counsel as Joseph H. Choate who is widely recognized as a leader of the American bar. The other was a tariff case in which the law was attacked on the ground that Speaker Reed had counted a quorum when the bill passed the House. That, too, he won. It was dur- ing his term as solicitor general that Mr. Taft met Theodore Roosevelt, then civil service commissioner, and began the friend- ship which has continued and growm ever since and which has had such far-reaching influence upon the liv«s of both men. On tlie Federal Benoli. Mr. Taft's record as solicitor general so clearly proved his fitness for the bench that atter three years in Washington he was sent back to Ohio as judge of the Sixth Federal Circuit, a post generally recognized as a preliminary step to the Supreme Court, which was then the goal of his ambition. It was during his seven years on the federal bench that Mr. Taft's qualities as a judge became known throughout the country. He was called upon then to decide some of the most important cases that have ever been tried in the federal courts, in the conduct of which he established an enviable reputation for learn- ing, courage and fairness— three essestial attributes of a great jurist. His power of application and his ability to turn off enormous masses of work received ample demonstration during this tim«. It was in this period of his service that he rendered the labor decisions which have made him famous as an upright and fearless judge. In his treatment of both labor and capital he showed that here was a judge who knew no distinction of parties when they appeared as litigants before him. He voiced the law as he knew it and the right as he saw it, no matter where the blow fell or whom it struck. If sometimes the de- cisions went against what organized labor at that time believed to be its cause, it must not be forgotten that no clearer or broader statement of the true rights of labor has even been made than in some of his judicial utterances. Lawyers conducting litigation in other courts on behalf of labor unions have often cited these decisions of Judge Taft in support of their conten- tions. Neither should it be forgotten that one of the most im- portant and far reaching of all his judgments was that against the Addystone Pipe Company, in which for the first time the Sherman anti-trust law was made a living, vital force for the curbing and punishment of monopoly. When this case reached the Supreme Court, Mr. Taft received the distinguished and un- usual honor of having his decision quoted in full and handed down as part of the opinions of the high court which sustained him at every point. WILLIAM HOWARD TAFT. 631 Ploneerius: tlie Roosevelt Policy. This Addystone Pipe deoision marked the beginning of the struggle for federal control of interstate corporations which in the later years has come to be known as the "Koosevelt policy." Mr. Taft in an address to the American Bar Association at De- troit, in the summer of 1895, had enunciated the x>rinciple on which President Eoosevelt has made his great fight for the sup- pression of monopoly and the abolition of special privilege. Thus Mr. Taft pioneered the way for the "Eoosevelt policy." Blazinsr the Pliilippine Trail. Since the settlement of the reconstruction question no more delicate or fateful problem has confronted American statesman- ship than that of the Philippines. The sudden pitching of over- sea territory into our possession as a result of the war with Spain, created a situation not only unexpected but entirely with- out precedent. There was no guide for our statesmen. The path had to be hewed out new from the beginning. There was no crystallization of opinion among the American people as to what should be done with the Philippines. A considerable element was vigorously opposed to retaining them, but the vast majority demanded the maintenance of American sovereignty there. Among these, at first, the desire was undoubtedly due to the glamour of aggrandizement. The possibility of wealth some- where beyond the skyline always catches the imagination, and there can be no question that the great mass of the people moved, without serious thought of the consequences, toward American exploitation of the islands. But even at that early day there were a few — a very few — among the leaders of American thought and action, who saw clearly the responsibility thrust upon the country by the ad- ventitious possession of the Philippines, and determined to meet it fully, no matter what clamor of opposition might arise. Among these President McKinley was one. Mr. Taft was another. Mr. Taft had been opposed to taking the islands. He was opposed to retaining them. More than all he opposed their exploitation for American benefit. He believed that the Philippines belonged to the Filipinos, and should be developed in the interest of their own people. Slionlderins: tlie "White Man's Burden." He saw the possibility of lifting a feeble, ignorant people into the light of liberty and setting them upon the path to intelli- gent, efficient self-government. That possibility reconciled him to the continuance of American authority over the islands, for none saw more clearly than he the chaos certain to result from immediate independence for the Filipinos, with its inevitable and speedy end in complete and hopeless subjection to some other power. Therefore when President McKinley asked him to go to Manila and undertake the difficult and thankless task of start- ing the Filipinos upon their true course, he sacrificed the judicial career which was his life's ambition and shouldered the "White Man's Burden," It was in March, 1900, that he received his ap- pointment as chairman of the Philippine Commission. Not many Americans have ever comprehended thoroughly the size of Mr. Taft's undertaking, or the full meaning of his achieve- ment. Through a bungle in our first dealings with Aguinaldo and the Filipinos the entire native population of the islands had come to believe, with some reason, that the Americans were their enemies and had betrayed them. Mr. Taft arrived in Manila to find a people subdued by force of arms, but unanimous- ly hostile, sivllen and suspicious. They were still struggling, with the bitterness of despair, against the power in which they all saw only the hand of the oppressor. Overcoiiiins: tlie Barrier Bet^veen Kast and West. Moreover, their leaders had been inoculated with the belief that between west and east there is an impassible barrier which will always prevent the Occidental from understanding and sym- pathizing with the Oriental. The experience of generations had 58B WILLIAM HOWARD TAFT. confirmed them in tluit belief. The only government in their knowledge was tyranny. The only edtiesition in their history wiis deceit. The only tradition they possessed was hatred of oppres- sion, made concrete for them by their experience with western domination. That was what Mr. Taft had to face, and in three years he had overcome and changed it all. He did it by the i)er8uasive power of the most winning personality the Filipinos had ever known. He met them on their own level. He lived with them, ate with them, drank with them, danced with them, and he showed them that here was an Occidental who could read and sympathize with the Oriental heart. He gave them a new conception of justice, and they saw with amazement that it was even-handed, respecting neither person nor condition, a great leveler, equaliz- ing all before the law. They saw Mr. Taft understanding them better than they had understood themselves, comprehending their problems moi'e wisely than their own leaders had done, and stand- ing all the time like a rock solidly for their interests. They saw him opposed by almost all his countrymen in their islands, denounced and assailed with the utmost vehemence and venom by Americans simply because he steadfastly resisted American exploitation and persisted in his declaration that the Philippines should be for the Filipinos. They saw him laboring day and night in their behalf and facing death itself with cheerful resig- nation in order to carry on their cause. It was a revelation to them. It was something beyond their previous ken, outside of all their experience, their education and their tradition. It convinced them. A Revelation to tlie Filipinos. Mr. Taft gave them concrete examples of disinterestedness and good faith, which they could not fail to comprehend. He gave them schools and the opportunity of education, one of the dearest wishes of the whole people. No man who was not in the Philip- pines in the early days of theAmerican occupation will ever understand thoroughly with w^hat pitiful eagerness the Filipino people desired to learn. Men, women and children, white haired grandfathers and grandmothers craved above everything the opportunity to go to school and receive instruction in the simplest rudiments. It is difficult to tell how deeply that eager desire touched Mr. Taft and how earnestly he responded to it. But education was only a beginning. Mr. Taft gave the Fili- pinos the opportunity to own their own homes. It was another concrete example of simple justice. When they saw him negotiat- ing for the friar lands, securing for the Filipinos the right to buy those lands on easy terms, it went home to the dullest among them that he was working unselfishly in their behalf. And they saw his justice in their courts. For the first time in all their experience the poorest and humblest Filipino found himself able to secure an even-handed honest decision, without purchase and without influence. Even that was not all. They saw Mr. Taft literally and faith- fully keeping his promise and calling Filipinos to share in their own government, not merely in the subordinate and lowly places which they hadhbeen able to purchase from their old masters, but in the highest and most responsible posts. They saw men of their race called to membership in the commission, in the supreme court, and in all the other branches of their govern- ment. And they believed the promise of even wider experince of self-government to come. An Unparalleled Acliievement. » It was a practical demonstration of honesty and good faith such as the Philippines had never known. It was a showing of sympathy, justice and comprehension which could not be resisted. Conviction followed it inevitably. The whole people knew — be- cause they saw — that the Philippines were to be maintained for the Filipinos, and they recognized their own unfitness for the full responsibilities of independent self-government, and cheer- fully set themselves to the task of preparation. That is the achievement of Mr. Taft in the Philippines. It WILLIAM HOWARD TAFT. 533 has scarcely a parallel in history. What it cost hlin he paid without question or ' complaint. He had given up his judicial career when he went to Manila. But three times in the course of his service for the Filipinos the opportunity to re-enter it came to him, each time with an offer of a place on the supreme court which had been his life-long- goal. Each time he refused it. Not even President Roosevelt understood the call to Mr. Taft from the Filipinos, and when he offered a supreme court justice- ship to Mr. Taft he accompanied it with almost a command. But Mr. Taft declined. He saw clearly his duty lay to the people whom he had led to believe in him as the personification of Amer- ican justice and good faith, and he made the President see it too. How the Filipinos felt was shown when on hearing of the danger that Mr. Taft might be called away from Manila, they flocked in thousands about his residence and begged him not to go. When ultimately he did leave the islands it was only to come home as Secretary of War, in which office he could continue his direc- tion of Philippine affairs and make sure that there should be no deviation from the successful line of policy he had marked out. The Birth of a Nation. What is the result? The birth of a nation. The great, power- ful American people, through the compelling agency of Mr. Taft, has paused ever so slightly in its triumphant onward march, to stoop down and lift up a feeble, ignorant and helpless people and set it on the broad highway to liberty. Vaguely, uncer- tainly, not comprehending clearly just what it was doing, not understanding always fully either the object or the means of accomplishment, but its heart right, and submitting confidently to the leadership of a man in whom it trusted implicitly, this nation has assisted in a new birth of freedom for a lowly and oppressed people. To William Howard Taft belongs the lion's share of the credit. Not often is it given to one man to do such work for humanity. Seldom is such altruism as his displayed. Many other honors have come to him ; many others will yet come. Among them all none will be of greater sigjiificanee or of more lasting value than his work for the Filipinos. Secretary of War. It is not important here to discuss in detail Mr. Taft's adminis- tration of the War Department since he succeeded Elihu Root as Secretary of W^ar on February 1, 1904. He has been at the head of it during the years of its greatest range of activity. He is not merely Secretary of the Army, as almost all his pre- decessors were. He is Secretary of the Colonies. Under his direction are matters of the utmost importance affecting every one of the over-sea possessions of the United States. The affairs of the army alone have often proved sufficient to occupy the whole attention of an able secretary. Mr. Taft has had to handle not only those and the Philippine and Cuban business, but to direct the construction of the Panama Canal as well. And at not infrequent intervals he has been called on to par- ticipate in the direction of other weighty affairs of government. He has been the general adviser of President Roosevelt and has been called into consultation on every important matter which has required governmental action. The administration of canal affairs has required in a high degree that quality described as executive ability. The building of a canal is a tremendous enterprise, calling constantly for the exercise of sound business judgment. In it Mr. Taft has dis- played in ripened proportions the abilities he foreshadowed when solicitor general and collector of internal revenue. Building; tlie Canal. When Mr. Taft became Secretary of War this country had just taken possession of the canal zone, iinder treaty with the republic of Panama, and of the old canal property, including the Panama railroad, by purchase from the French company. The work was all to do. The country expected the dirt to fly at once. The newspapers and periodicals were full of cartoons representing Uncle Sam in long boots with a spade on his shoulder, striding down to the isthmus to begin digging. B\it before there could 534 WILLIAM HOWARD TAFT. be any real exca\ution there was a tremendoris task to meet. First of all the isthnme must be changed Tfrom a disease breed- ing pest-hole to a place where Americans could live and work in safety. The canal zone must be cleaned up, mosquitoes stamped out and the place made sweet and healthy. Habi- tations must be constructed for many thousands of workmen and their families. The cities of Panama and Colon, at the terminal of the canal, m\ist be made thoroughly sanitary and supplied with water and sewers. An organization for the work of canal construction must be perfected and millions of dol- lars worth of machinery and supplies must be purchased and transported to the isthmus. All these things, however, were of a purely business char- acter. It required only time and ability to handle them prop- erly. But there was another matter to be taken care of before these could be undertaken, and it was of a decidedly different nature. The Hay-Varilla treaty with Panama had secured to the United States all the rights necessary for complete control of the canal zone, and it became of the utmost importance to insure the maintenance of friendly relations with the people of the isthmus republic. It would certainly greatly increase the ordinary difficulties of building the canal if our people had to encounter the hostilities of the Panamanians. Here was a problem largely similar to that met by Mr. Taft in the Philippines, and calling for the exercise of the same qualities of tact, symj^athy, justice and patience which he had exhibited in the Far East. It became his task to convince the Panamanian people and government that the United States had not gone to the isthmus to build a rival state instead of a canal. As head of the War Department, and the superior of the Canal Commission, he has conducted all the affairs of this Government with the Republic of Panama since the ratification of the original treaty, and has succeeded in keeping our relations with the isthmus uniformly pleasant. Always, at least once a year, he has made a trip to the canal zone and examined affairs there with his own eyes. He has just returned from the isthmus, the President having sent him there to settle a number of questions which required his personal consideration on the ground. Perhaps some con- ception of his responsibilities on the isthmus may be had from the fact that since the actual work of canal building began there has been spent on it upward of $80,000,000, and every dollar of that expenditure required and received his approval. Real Self-Government for Cuba. Aside from the Philippines and the Canal the greatest call that has been made upon Mr. Taft since he became Secretary of War came from Cuba. This was a case largely similar to the Philippine problem. The American people have so long imbibed the theory and practice of self-government witk their mothers' milk that they have developed a tendency to believe any people fitted for it who desire it. To us liberty is self- government, but to many a people with neither experience nor tradition of anything but practical autocracy self-gdvernment is only license. So it was with the Cubans. When our inter- vention had freed that island from the Spanish yoke we deemed it sufficient insurance of successful government for the Cubans to require them to adopt a constitution before we turned the island over to them. We ignored the fact that Cuba had no experience of constitutions or understanding of their functions. So when Cuba had conformed to our requirement we sailed away from Havana and left her to work out her own salvation unaided and untaught. The result of that folly was inevitable and not long de- layed. The Cubans having adopted a constitution they had not the slightest idea of what to do with it. They proceeded to govern under the only system of which they had any knowledge. The proclamation of the President took the place of the old royal decree. He created by his fiat the departments of gov- ernment which should have been established by law of Congress under authority of the Constitution. Freedom in the American sense was unknown in Cuba. WILLIAM HOWARD TAFT. ISe Order Out of Cliaoa. The experiment was aimed toward chaos and its expec- tation was quicldy realized. In September, 1906, the United States had to intervene again, and the task fell on Mr. Taft. Fortunate it was both for the United States and Cuba that it was so. With his experience of the Filipino as a guide and the magnetism of his personality as a lever, Mr. Taft placated the warring factions and secured peaceable intervention. Then he devised and set up a provisional government which all the Cubans accepted. It was the intention then to maintain the government only long enough to give the Cubans a fair election at which they might select their own government by full and free expression of their own will. But almost immediately the provisional government discovered the fundamental mistake made by the earlier American administration. It found that the Cubans had been attempting to administer a government which never had been organized and existed only by virtue of the President's will. Patiently the provisional government set to work, under the direction of Mr. Taft, to provide the organization under the fundamental law which the Cubans had never known was the essential of successful self-government. The work is now nearing completion, and when next the Americans quit Havana it will be after turning over to the Cubans a government ma- chine properly established and fully equipped, whose operation they have been taught to understand and control. Thus, to two peoples has Mr. Taft been called upon to give instruction in practical self-government. The character of Mr. Taft is the resultant of strongly con- trasting forces. He is a man who laughs and fights. From his boyhood, good nature and good humor have been the traits which always received notice first. But all the time he has been capable of a splendid wrath, which now and then has blazed out, under righteous provocation, to the utter consternation and undoing of its object. Because he is always ready to laugh, and has a great roar of enjoyment to signify his ap- preciation of the humorous, men who nave not observed him closely have often failed to understand that he is just as ready ^o fight, with energy and determination, for any cause that has won his support. But it is almost always some other man's cause which enlists him. His battles have been in other interests than his own. First of all he is an altruist, and then a fighter. A Combative Altruist. This combative altruism is Mr. Taft's most distinguished characteristic. As Secretary of War he has earned the world- wide sobriquet of "Secretary of Peace." He has fought some hard battles, but they were with bloodless weapons, and the results were victories for peace. The greater the degree of altruism the keener was his zeal, the harder and more persistent his battle. The greatest struggle of his career, in which he disregarded utterly his settled ambition, and cheerfully faced a continuing serious menace to life itself, was on behalf of the weakest and most helpless object in whose cause he was ever enlisted — the Filipino people. That was the purest and loftiest altruism. But although this is the dominant trait of Mr. Taft, he is well known for other qualities. His judicial temperraent, founded upon a deep-seated, compreha»sive and ever alert sense of right and wrong ; his courage, proved by repeated and strenuous tests ; his calm, imperturbable judgment, and his all embracing sympathy are characteristics that have been often and widely noted. >They are his by right of inheritance from generations of broad-minded, upright men and women. The development of his country has extended the range of his opportunity and given greater scope to his activities than was enjoyed by Al- phonso Taft, his father, or Peter Rawson Taft, his grandfather, but in character and intellect he is their true descendent. The American people know Mr. Taft as a man of pervasive good humor, always ready with a hearty laugh, and quick to see fun in any Situation. His other side has not often appeared, 53« WILLIAM HOWARD TAFT. but he is capable of tremendous wrath. Nothing" arouses i» more quickly than unfaithfulness to a trust or an exhibition of deceit. Injustice in any form stirs him to the bottom in- stantly. He has a broad, keen, quick, all-embracing- sympathy always ready to respond to any call. His sense of justice is wonderfully quick-spring-ing and alert. And he has a g-enuine fondness for work, which enables him to derive real pleasure from his task. These qualifications are the endowment of an unusually gifted man. The people know, because they have seen, his ability to turn off an enormous amount of work. They have see© him prove an exceptional executive ability. They have seen him manifest an equipment for the Presidency such as no other man has shown before his election to that office. In ex- perience, training and ability, Mr. Taft has amply proved his fitness for the chief magistracy of the nation. Our country Is grroTrlngr better, not Trorse. — Hon. C. IV. Fairbanks, at Baldwin, Kas., June 7. 1901. No men li-vinsT are more -^vortby to be trusted tban tliose who toil up from poverty; none less inclined to take ot* touch augrht which they have not honestly earned. — Lincoln. Whenever called upon, the nejfro has never failed to make sacrifices for this, the only country he has, and the only aas he loves.— Hon. Wm. H Taft, at Plymouth Church, Brooklyn. I am opposed to free trade because it des^rades American labor; I am opposed to free silver because it degrrades Ameri- can money. — MaJ. Wm. McKlnley to Homestead -workiuKnien, Sept. 12. 1896. This is an era of grreat combination both of labor and of capital. In many ways these combinations have worked for STood; but they must work under the law. — President Roose- velt at Charleston, April 9, 1902. I would favor a provision allowing^ the defendant in con- tempt proceeding's to challenge the judge issuing the in- junction, and to call for the designation of another judge to hear the issue.— Hon. Wm. H. Taft, at Cooper Union, New York City. The American test should be the test of integrity, loyalty, and incorruptible devotion, whether in the discharge of public or private business.— Address of Secretary Cortelyon, at the annual bananet of the Auburn Business Men's Associa- tion, Auburn, N. Y., Wednesday, April 22, 1908. Our political campaigns must be conflncted upon the higli plane of principle, in which the fullest discussion of policies shall be encouraged, but in -tvhlch misrepresentation and abuse . shall have no part.- Postmaster-General Cortelyon, at the annual banquet of the Lincoln Republican Club, Grand Rapids, Mich., Feb. 12, 1906. I do not knovr any place w^hich thrills one's bosom with patriotic ecstasy as the sepulchre of the unknown dead in Arlington Cemetery. The thought of the heroism and sacri- fice of those vrho, without a murmur and w^ithout even hope of personal credit or glory, gave up all to maintain a sacred cause, makes all motives of personal advancement of ambition seem small and sordid.— Hon. Wm. H. Taft, at Riverside Park, New York. We must approach every public anestion with a deter- mination to be fair and just in its li to 4o so, he assisted in doinji- such work on the farm as a l)oy of liis 3'ears would be capable of doing". After removing" to the village of N^ew Hartford he attended the public school in that town, and later attended the Utiea Academy, which was four rn^iies distant from his home, cohhected by a Street car service. La.1:er'iie attended the Whitestown Seminary, a preparatory school situated iii the villjlg'e of Whitesboro, four miles distant. This was a eo-edncational institution, with a very large attendance. From this school young- Sherman entered Hamilton College in the fail 'of 1874, and was gradiilated in 1878. In school and college he was distinguished f6r general goodfellowship rather than scholarship. He gained a considerable reputation as .a declaimer in both school and college, carrying off the first honors in declamation at the end of his Freshman year. He also en- joyed a reputation as a debater, and was one of six chosen from his class at the conclusion of his Senior year to contest After leaving college ]\rr. Sherman began, at once, the study of )aw in the office of Beardslejs Cookinham arid Burdick, at tjt!i''"'-''' •'<" •'t.,!,!;,.! ,;, uf/,:I.i. ,->-,:! ik;., ;; i ..; "in 1899, with other Utiea business rheh, he organized the tliica IVust and Deposit Company, how one of the leading banks o^F" C^eiitrui 'I^ew Yotk and Was chos^'ri as its President, which position 'hCi has sin- > . 'i .;,'...;.> Mr. ^herman^s'Mt a[ci!l^''i(/c^k'^n*-^^li'ties was the year suc- ceeding his graduation frorii college, whien he spoke a few times ill different parts of the county in advocacy of the election of Alonzo B. Cornell, Tlepublican candidate for Governor, making his first speech in the town of his residence. During the last fifteen yeai-s Mr. Sherman has cain])aigned in various parts of the fetate, having " spoken in most of the important cities, an|d in a! great inany minot places, as well as in half a dozen or morie other States. Dtiring various campaigns he has spoken in substantially every town in Oneida and Herkimer counties, ^e was chosen Mayor of Uticti in 1884. The city was then, as nW, "normally i)6inoci'atic,bttl he' w^s' elected by a substantial JAME^ SCHOOLCRAFT SHERMAN. 536c RepTi1)lican majority. At the end of his tei-m, which was for one year, he declined a unanimous renomination. lie was first named for Congress in 1886, the contest for the nomination being quite a spirited one, there being half a dozen candidates, his chief competitor being the Hon. Henry J. Cogges- hall, then State Senator from that district. Mr. Sherman was renominated each succeeding two years by acclamation until 1896, when there was a contest for fche nomi- nation, his competitors being Hon. Seth G. Heacock, of iierkimer, no\v State Senator, and John I. Sayles of Rome, Oneida County. Since that time he has been nominated by acclamation each suc- ceeding two years until the i^resent time. He presided over the State convention in 1895 as temporary chairman, and over the State conventions of 1900 and 1908 as permanent chairman. He was secretary of the Oneida County Republican Committee in 1882, and for the three following years was chairman of that committee. He was a delegate to the Republican National J'on- vention in 1892. In 1898 Mr. Sherman w^as appointed bj^ President McKinley a member of the Board of General Appraisers of the City of New York, and the nomination was confirmed by the Senate. It was his desire, at the time, to accept the appointment, but political and business friends at home, including the Chamber of Commerce and the Republican County Committee, passed resolutions and appointed a committee to wait upon him and urge him not to retire as a member of Congress, and, in con- formity with the desires of his constituents, he declined the a])pointment. Two years later he was tendered, by the Steering Commitee of the Senate, the position of Secretary of the U. S. Senate. Realizing that the wishes of his constituents had not changed within the two years, he declined this position. Mr. Sherman was the orator o7i the occasion of the laying of the corner-stone of the building presented to the Oneida His- torical Society of Utica. He was also the orator on the pi'e- sentation of the Butler Memorial Home by the laoe Morgan Butler to the town of Hartford. The Indian School of River- side, Cal., was, at the request of the people of Riverside, named by the then Commissioner of Ridian Affairs, Sherman Institute, in his honor. Mr. Sherman, early in his congressional career, became a prominent member of the House, and during the last few terms of Congress has been numbered among the leaders. His par- liamentary ability was early recogiiized, and, perhaps, no other member has so frequently been called to the chair- to preside over the Committee of the Whole. He was one of the closest friends of Speaker Reed, as he was of Sjieaker Henderson, and has been, and is, of Speaker Cannon. Mr. Sherman was a candidate for the speakership when Thomas B. Reed" retired. For twelve years he has been Chair- man of the Committee on Indian Affairs, and his work, at the head of that Committee, has received unstinted praise from all concerned in the work of the Conmiittee, without regard to party. He is, at present, also a member of the Committee on Rules and of Interstate and Foreign Conimerce. Had xdr. Sherman remained a member of the House, there is no doubt whatever that he would have been elected Speaker at the conclusion of INIr. Cannon's inciiiubency of that office. 536d JAMES SCHOOLCRAFT SHERMAN. Mr. SluMiiiaii. besides being prominently connected with many business institutions of his city and elsewhere, is a mciubcr of many soeial and fraternal organizations. He is a member of the Fort Sehuyler Club of Utiea,' and the SadaqiiJida, and Yahnandasi>j (Jolf Clubs. Of the Yahnandasis Club he haj been Governor for seven or eight years, and was its President for two years. He is a member of the Arcanum Club of IJtica, and a member of the Koyal Arcanum and the Order of VAks,. He is also a member of the Union League Club, Transportation Club and the Republican Club of the City of New York, and the Cobmibia Coif Club of Washington. He is a trustee of Hamilton College, which gave him the degree of LL. D. in 1905, and President of the Washington Alumni Association of that college. In college he was a member of the Sigma Phi Society, the second oldest college society in America, of which society Sec- retary of State l\oot and the late Senator Ingalls of Kansas, and jnany other prominent men have been members. Mr. Sherman has been a regular attendant at the Dutch Re- form Church in Utica since his marriage in 1881. Prioi* to that time he had been attending the Presbyterian Church at New Hartford. For five years just passed he has been treasurer of his church, and for three years, Chairman of the Board of Trustees. Mr. Sherman has three sons : Sherrill, aged twenty-five, who is note teller in the Utica Trust & Deposit Co. ; Richard U., aged twenty- three, who is acting professor of matliamatics at Ham- ilton College, and Thomas M., aged twenty-two, who is sec- retary of the Smyth-Despart Co., dealers in mill supplies, at Utica. Sherrill and Thomas are married, and each has a daughter, both of whom are idols of their grandparen's, in whose company they spend as much time as possible. Mr. Sherman's home life is an ideal one. A part of the house in which he lives is over a-century old, and full of many relics — not only of historical interest in Oneida County, but gathered from all parts of the United States — particularly Indian relics, in which subject Mr. Sherman has, for a long time, leen deeply interested because of his Chairmanship of the Committee on Indian Affairs of the House of Ilepresentatives. With ample lawn and garden plots, Mrs. Sherman's desire to cultivate every possible blossom and flower is carried out to the full, and during the spring, summer and fall, nearly every room in tne house has its vase of freshly cut flowers from the yard and garden. Living, as he does, in the vicinity in which he has made his home since birth, and with his splendid record and hign iittain- ments, it is no wonder that James S. Sherman is looked upon as the first citizen of, not only Utica, but of the surround- ing counties. At his home-coming following his nomination, the city saw its largest celebration in its history, and this means much in the city or county that has held such men as Roscoe Conkling, Francis Kernan and Horatio Seymour. The welcome was absolutely non-partisan in character ; in fact, it seems as if the Democrats were bound to outdo their Repub- lican neighbors in showing their appreciation of the honor that had come to their city. To one visiting Utica at the present time and giving his impr.ession in a single sentence, it would be : "How Utica does love Jim Sherman, and how Jim Sherman loves Utica." ADDRESS OF HON. JAMES S. SHERMAN III KesituiiMO to Notiiieation Speecli at Utica, N. Y., Augfust 18, 190S. pe nator Burrows and Gentlemen of the Notification Committee : Your chairman, speaking for the committee, has notified me of my nomination by the Eepublican National Convention, held in Chicago in June, as the party's candidate for Vice-President. As 1 chanced to be in Chicago in June, I had an inkling of the convention's action, which was confirmed by a warm-hearted reception tendered me by my neighbors on the occasion of my home-coming on July 2. In Accord With Mr. Taft. This official notification, however, is welcome and the nomina- tion you tender me is accepted ; accepted with a gratitude com- mensurate with the great honor conferred ; accepted with a full appreciation of the obligations which accompany that honor, an honor greater because my name is linked with that of William H. Taft, whom I respect and esteem highly and who approaches the high office of President exceptionally well equipped to dis- charge the duties and bear the varied and weighty responsi- bilities of that exalted position. My acceptance could not be made with honor unless I were in full accord with the declara- tion of principles adopted by the convention. Not only am I in full and complete accord with my party's platform, but I endorse every word of the statement made by Mr. Taft in his address of acceptance when notified of his nomination as the Eepublican candidate for President. That speech fully and comprehensively discussess the issues of this campaign as presented by the platforms of the two great parties, so that it is appropriate that my statement should be short. Those not convinced by the presentation of Mr. Taft I could not hope to persuade. It is, however, in conformity w^ith custom that I refer at least briefly to some of the important issues of the campaign. A Discussion of the Tariil Issue. First, then, let me say that I am a protectionist. I am suffi- ciently practical to value the utility of a fact higher than the beauty of a theory, and I am a protectionist because experience has demonstrated that the application of that principle has lifted us as a nation to a plane of prosperity above that occupied by any other people. I especially commend that plan of our platform which prom- ises an early revision of tariil schedules. That pledge will be fulfilled in an adjustment based in every particular upon the broad princinles of protection for all American interests ; alike for labor, for capital, for producers and consumers. The Dingley Bill, when enacted, was well adapted to the then existing condi- tions. The developments of industrial prosperity in a decade, which in volume and degree have surpassed our most roseate expectations, have so altered conditions that in certain details of schedules they no longer in every particular mete out justice to all. In this readjustment the principle of protection must and will govern ; such duties must and will be imposed as will equal- ize the cost of production at home and abroad and insure a rea- sonable profit to all American interests. The Eepublican idea of such a profit embraces not alone the manufacturer, not alone the capital invested, but all engaged in American production, the employer and employed, the artisan, the farmer, the miner and those engaged in transportation and trade ; broadly speak- ing, those engaged in every pursuit and calling which our tariff directly or indirectly affects. During a statutory application of 537 681 ADDRESS OF HON. JAMES 8. SHERMAN. this principle, prosperity has bided with us. When a revenue tariff has been the law, adversity and want have been our portion. Our Democratic brethren, whose memories are as short as their promises are frail, and who have always exhibited a lack of capacity to profit by experience, unmindful of th& distress and destruction that arrived and departed with the last Democratic administration, declare in their platform that they favor such immediate revision of * * * schedules as may be necessary to restore the tariff to a revenue basis." A "revenue basis," a "tariff for revenue only," "ultimate free trade" — all have an identical meaning ; that meaning being an assault upon American industries, an attack upon the American wage scale, a lessening demand for the products of American soil and American toil ; less work, less pay, less of the necessaries and comforts of life. In the light of history, what issue of the campaign so vitally affects American citizens? Experience, that effective teacher — i>ffective save with the one-man power now parading under the title of the Democratic party — has taught the nation a valuable lesson and the result of the coming November election will once more prove the American people to be apt scholars. What the laborer of the land, skilled and unskilled, desires is the oppor- tunity at all times to exchange his brain and brawn for good pay in good money. A protective tariff and the gold standard, both now the existing achievements of the Republican party, in spite of Democratic opposition, give the laborer that opportunity. Elnuctnients of Iiabor. The Eepublican party believes in the equality of all men be- fore the law ; believes in granting labor's every request that does not seek to accord rights to one man denied to another. Fair-minded labor asks no more, no less, and approves the record of the Republican party because of that party's acts. I have helped to make my party's record in the enactment of the Eight-Hour Law, the Employers' Liability Act, the statutes to minimize the hazard of railroad employees, the Child Labor Law for the District of Columbia, and other enactments designed especially to improve the conditions of labor. I cannot hope to better state my position on injunctiona than by a specific endorse- ment of Mr. Taft's Cincinnati declaration on that subject. That endorsement I make. Tlic Colored Race. As a nation our duty compels that b^'^ every constitutional and reasonable means the material and educational condition of the colored race be advanced. This we owe to ourselves as well as to them. As the result of a course of events that can never be reversed, they are a part of our civilization ; their propserity is our propserity ; their debasement would be our misfortune. The Republican party, therefore, will offer every encouragement to the thrift, industry and intelligence that will better their pros- pect of higher attainment. Army and Navy and Mercliant Marin*. I believe in the maintenance of such an army, the upbuilding of such a navy as will be the guarantee of the protection of American citizens and American interests everywhere, and an omen of peace ; that at every exposed point we may be so fortified that no power on earth may be tempted to molest us. I believe in the restoration of the American merchant marine and in render- ing whatever financial aid may be necessary to accomplish this purpose. I approve the movement for the conservation of our natural resources ; the fostering of friendly foreign relations ; the en- forcement of our Civil Service Law, and the enactment of such statutes as will more securely and more effectively preserve the public health. Adherence to Roosevelt Policies. Our platform, as it should do, pledges adherence to the policies of President Roosevelt ; promises to continue the work inaugurated during' his administration, to insure to persons and ADDRESS OF HON. JAMES S. SHERMAN. 58fl property every proper safeguard and all necessary strengthen- ing- of administrative methods will be provided to furnish efficient inspection and supervision, and prompt righting of every in- justice, discrimination and wrong. I have not touched upon every plank of our splendid platform, but I reiterate my full and unqualified approval of its every promise. No CUuia liearislation. I emphasize as my party's creed and my faith that in legisla- toin and administration favor should be extended to no class, no sect, no race, no section as opposed to another. To foster class hatred, to foster discontent, is un-Eepublican and un-Amer- ican. Our party stands on the declaration that all men are created with equal rights and it will have no party in the enact- ment of execution of any law that does not apply alike to all good American citizens, whatever their calling or wherever they live. It will allow no man in our land to have advantage in law over any other tman. It offers no safeguard to capital that is not guaranteed to labor ; no protection to the workman that is not insured to his employer. It would offer to each and to both in pursuit of health and happiness and prosperity every possible advantage. ^ The work that lias been given the Republican party to do has been of immense importance. Much of that work has been fully accomplished ; some has yet to be completed. Eepublican declara- tions once in our platform and no longer there, are complete be- cause they have become accomplished facts. On the other hand, Democratic declarations have been abandoned because the voters have pronounced them to be unwise and unsafe nnd liiisuited to our time and our country. The People Rule. "Shall the people rule?" is declared by the Democratic plat- form and candidate to be "the overshadowing issue * * * now under discussion." It is no issue. Surely the people shall rule, surely the people have ruled ; surely the people do rule. No party rules. The party, commissioned by the people, is sim- ply the instrument to execute the people's will, and from that party which does not obey their expressed will, or which lacks the wisdom to lead successfully, the people will withdraw their commission. For half a century, with but two exceptions, the people have commissioned the Eepublican party to administer the National Government; commissioned it because its declared principles ap- pealed to their best judgment ; commissioned it because the com- mon sense of the American people scented danger in Democratic policies. Ours always has been, always must be, a government of the people. That party will, after March 4 next, execute old laws and enact new ones as in November it is commissioned by the people to do. That commission will be from an untrammeled American electorate. Shame on the party which, shame on the candidate who, insults the American people by suggestion or declaration that a majority of its electorate is venal. The Amer- ican voter, with rare exception, in casting his ballot, is guided by his best judgment, by his desire to conserve his own and the public weal. The overshadowing issue of the campaign really is : shall the administration of President Eoosevelt be approved ; shall a party of demonstrated capacity in administrative affairs be continued in power, shall the reins of government be placed in experienced hands, or do the people prefer to trust their destinies to an aggregation of experimental malcontents and theorists, whose only claim to a history is a party name they pilfered. Witli a record of four decades of wise legislation ; two score years of faithful administration ; offering its fulfilled pledges as a guaranty of its promises for the future, the Eepublican party appeals to the people and, with full confidence in their wisdom and patriotism, awaits the rendition of the November verdict.- REPUBLICAN NATIONAL CO/V5.Wl1TTEE, FRANK H. HITCHCOCK. Chairman. WILLIAM HAYWAKD, Secretaby. QEOliGE R. SHELDON. Treasubeb. Alabama — P. D. Barker, Mobile. Arkansas — Powell Clayton, Eureka Springs. n California — George A. Knight, San Francisco. Colorado — Charles E. Cavender, Leadville. Connecticut — Charles F. Brooker, Ansonia. Delaware — 1% Coleman du Pont, Wilmington. Florida — Jame3 N. Coombs, Apalachicola. Georgia — Henry Blun, Jr., Savannah. Idaho — W. E. Borah, Boise. Illinois — Frank O. Lowden, Oregon. Indiana — Harry S. New, Indianapolis. Iowa — Ernest E. Hart, Council Bluffs. Kansas — ^^D. W. Mulvane, Topeka. Kentucky — ^A, E. Burnam, Richmond. Louisiana — Pearl Wight, New Orleans. Maine — John F. Hill, Augusta. Maryland — William P. Jackson, Salisbury. Massachusetts — W. Murray Crane, Dalton. Michigan — John W. Blodgett, Grand Rapids Minnesota — Frank B. Kellogg, St. Paul. Mississippi — L. B. Moseley, Jackson. Missouri — Charles Nagel, St. Louis. Montana — Thomas C. Marshall, Missoula. Nebraska — Victor Rosewater, Omaha. Nevada — P. L. Flanigan, Reno. New Hampshire — F. W. Estabrook, Nashua. New Jersey — Franklin Murphy, Newark. New York — William L. Ward, Portchester. North Carolina — E. C. Duncan, Raleigh. North Dakota — James Kennedy, Fargo. Ohio — A. I. Vorys, Lancaster. Oklahoma- — C. M. Cade, Shawnee. Oregon — R. E. Williams, Dallas. Pennsylvania — Boies Penrose, Philadelphia. Rhode Island — Charles R. Brayton, Providence. South Carolina — John G. Capers, Greenville, South Dakota — Thomas Thorson, Canton, Tennessee — Nathan W. Hale, Knoxville. Texas — Cecil A. Lyon, Sherman. Utah — C. E, Loose, Provo City. Vermont — James W. Brock, Montpelier, Virginia — Alvah H. Martin, Portsmouth, ^ Washington — R. L. McCormick, Tacoma. " West Virginia — N. B. Scott, Wheeling. Wisconsin — Alfred T. Rogers, Madison. Wyoming — George E. Pexton, Evanston. Alaska — L. P. Shackelford, Juneau. Arizona — ^W. S. Sturgis, Tucson. District of Columbia — Sidney Bieber, Washingt<^i Hawaii — A. G. M, Robertson, Honolulu. New Mexico — Solomon Luna, Los Lunas. Philippine Islands — Henry B, McCoy, Manila Porto Rico — R. H. Todd, San Juan. ,'i40 Republican Congressional Committee — 1908, Officers. Wm. B. McKinley, Chairman. James A, Tawney, Vice-Chairman. H. C. Loudenslager, Secretary. Henry Casson, Asst. Secretary. Chas. G. Dawes, Treasurer. Executive Committee. Jbmes A. Tawney, Minnesota. Adln B. Capron, Ehode Island. James K. Mann, Illinois. Nicholas Longworth, Ohio. - James H. Davidson, Michigan. J. Hampton Moore, Pennsylvania. John W. Weeks, Massachusetts. Eichard Bartholdt, Missouri. Director of Permanent Literary Bureau, Washington, D. C, Francis Curtis. California — James C. Needham, Modesto. Ci)lorado — Eobert W. Bonynge, Denver. Delaware — Hiram E. Burton, Lewes. Idaho — Burton L. French, Moscow. Illinois — James E. Mann, Chicago. Indiana — Charles B. Landis, Delphi. Iowa — Albert F. Dawson, Preston. Kansas — James M. Miller, Council Grove. Kentucky — Joseph B. Bennett. Greenup. Maine — JEdwin C. Burleigh, Augusta. ^Maryland — Sydnej^ E. Mudd, La Plata. Massachusetts— John W. Weeks. Newton. Michigan — Joseph W. Fordney, Saginaw. ISrinnesota — James A. Tawney, Winona. l\Iissouri — Eichard Bartholdt, St. Louis. Montana — Charles N. Pray, Fort Benton. Nebraska — J. F. Boyd, Neligh. Nevada — Senator George S. Nixon, Eeno. New Hampshire — Cj'^rus A. Sulloway, Manchester. New Jersey — Henry C. Loudenslager, Paulsboro. New York — James S. Sherman, Utica. North Dakota — Asle J. Gronna, Lakota Ohio — Nicholas Longworth, Cincinnati. Oklahoma — Bird S. McGuire, Pawnee. Oregon — William E. Ellis, Pendleton. Pennsylvania — J. Hampton Moore, Philadelphia. Ehode Island — Adin B. Capron, Stillwater. South Dakota — William H. Parker, Dead wood. Tennessee — Walter P. Brownlow, Jonesboro. Utah — Joseph Howell, Logan. Vermont — Kittredge Haskins, Brattleboro. Virginia — C. Bascom Slemp, Big Stone Gap. Washington — William E. Humphrey, Seattle. West Virginia — James A. Hughes, Himtington. Wisconsin — James H.' Davidson, Oshkosh. Wyoming — Frank W. Mondell, New Castle. Territories, Alaska—Thomas Cale, Fairbanks. Hawaii — Jonah K. Kalanianaole, Honolulu. New' Me:j{ico — William H. Andrews, Albuquerque. 541 Rural Free Delivery, SPEECH OP HON. ARTHUR L. BATES, OF PENNSYLVANIA, IM THE HOUSE OF REPRESENTATIVES. Tuesday, May 26, 1908 Mr. BATES said : . Mr. Speaker: The rural free-delivery service has lully kept pace with the growth and development of our whole country. The farmer is now reaping- some of the rewards he has so justly earned in the past by the burdens that he has borne. He is the producer of wealth. He is coming- to be one of the most independent of all our citizens. No branch of the public service has been so well developed and improved in the past few years as the rural free delivery. There were only 8,000 rural routes in operation six years ago. There are now almost 40,005, and these are scattered .through every State and Territory of the country, so that there is not a rural sectifon in the whole land that is not practically covered. This entire service has been ex- tended from a small beginning eleven years ago, during tin- three Republican Administrations with which the country has been blessed since 1897. I believe that the appropriation of $35,000,000 made this year for the support of rural free-delivery service brings more direct benefit to the people of this country whom it affects than almost any other appropriation made by the General Governnient. In 1900 President McKinley, in his message to Congress, in speaking of the postal service, used language as follows : "Its most striking new development is the extension of rural free delivery. * * * This service ameliorates the isolation of farm life, conduces to good roads, and quickens and extends the dissemination of general information. Experience thus far has tended to allay the apprehension that it would be so expensive as to forbid its general adoption or make it a serious burden. Its actual application has shown that it increases postal receipts and can be accompanied by reduction in other branches of the service, so that the augmented revenues and accomplished sav- ings together materially reduce the net cost." In his first message ta Congress President Roosevelt said : Among the recent postal advances the success of rural free delivery wherever established has been so marked and actual experience has made its benefits so plain that the demand for its extension is oeneral .and urgent. It is jnst that the great agri- cultural population should share in the improvements of this service. Again, in his last annual ^nessage, the President says: "The rural free-delivery service has been steadily extended. The attention of Congress is asked to the question of the com- pensation of the letter carriers and clerks engaged in the postal service, especially on the new rural free-delivery routes. More routes have been installed since the 1st of July last than in any like period in the Department's history. While a due regard to economy must be kept in mind in the establishment of new routes, yet the extension of the rural free-delivery system must be continued for reasons of sound public' policy. No govern- mental mbvement of recent years has resulted in greater imme- diate benefit to the people of the country district^3. "Rural free delivery, taken in connection with the telephone, the bicycle, and the trolley, accomplishes much toward lessening the isolation of farm life and making it brighter and more at- tractive. In the immediate past the lack of just such facilities as these has driven many of the more active and restless young men and women from the farms to the cities, for they rebelled at loneliness and lack of mental companionship. It is unhealthy and undesirable for the cities to grow at the expense of the country ; and rural free delivery is not only a good thing in itself, but is good because it is one of the causes which check this unwholesome tendency toward the urban concentration of our population at the expense of the country districts." These indorsements demonstrate beyond the possibility of question that under Republican rule this service, fraught 'with so much good to the people of the rural communities, has been nurtured and cared for until it Jias become one of our perma- nent institutions, against which no political party will ever dare raise a voice. At present New York has nearly 2,000 routes in operation; Pennsylvania, 2,100; Indiana, 2,200; Ohio, 2,500; Illinois, 2,800; Minnesota, 1,600; Missouri, 2,000; Nebraska, 1,000. In fact, almost all cases pending during the past year have been dis- posed of, and wherever an adequate niunber of people desired the service it has been established and put in daily use. INCREASED VALUE OF FARM LANDS. The testimony of those who enjoy this service from all over the country proves that by reason of the free rural delivery the actual value of farm lands has been greatly increased. I have had farmers inform me that they would not dispense with the service for $50 or even $100 per annum. It has been estimated that the value of farm lands has risen by this means as high as $5 per acre in many States. A moderate estimate would show a benefit to the farm lands of from $1 to $3 per acre. BETTER PRICES FOR FARM PRODUCTS. A better knowledge of trade conditions is always of g-reat ad- vantage. The farmer is not only the producer, but he is also his own salesman, and it is essential that he should be ac- quainted with the daily prices of the produce he raises in order to know when it will be to his advantage to market his goods. He is now enabled to receive a city daily paper giving him quotations and prices of stock and produce, and in fact the changing values of everything he raises on the farm. By meani* of this better communication with the markets l^e is able to obtain better prices for all that the farm produces. He can also receive and dispatch mail much more quickly than before — in fact, he can in m^iny cases obtain an answer to his letter on the day following its dispatch. In the old days oui; rural in- habitant was obliged to send to the post-office for his mail, and in the busy season, when his horses were busy in the fields, a week would sometimes elapse before he or any of his family could reach the post-office. Now there are delivered daily in the course of a year a half million pieces of mail on rural routes throughout the country to the farmers and inhabitants of the sparsely settled regions. Increased facility always brings increased use and enjoyment. The increased number of letters written and newspapers sub- scribed for and received has so greatly augmented the revenues of the country's postal service as to make the rural free-delivery service almost self-sustaining. Rural free delivery is encouraging the building of good roads. The farmer desires the delivery of his mail, and the Department wisely insists that each locality must furnish roads easily traversed if such a benefit is to be bestowed. In many locali- ties, therefore, our people have taken the matter of good roads into consideration, and through their supervisors and commis- sioners have improved grades, turned waterways, built bridges, and thus not only aided the delivery of mail, but have facilitated general communication among our people. This service has been practically established and built up witfiin the last eleven years. During the last Administration of President Cleveland rural free delivery was condemned and rejected by the Committee on Post-Offices and Post-Eoads of the House Under this same Democratic Administration in 1894 the Postmaster-General refused to make use of the appropriation of $10,000 offered him to begin the service. He stated that the pro- ject was unwise and could not be carried oiit. Under the Kepub- lican Administration it has been extended until it has become one of the most beneficial and useful portions of legislation provided by the Federal Government. It has become, under Republican prosperity and Republican administration of law, thoroughly established as one of our permanent instilutions. It^; general use and benefits are conclusive proof of the wisdom of recent Repub- lican progress. "No men living are more worthy to be trusted than those who toll up from poverty; none less inclined to take or touch aught which they have not honestly earned/'—LINCOLN. "The American system of locating manufactories next to the plow and pasture has produced a result noticeable by the intelligent portion of all commercial nations."— GRANT. "A currency worth less than it purports to be worth will in the end defraud not only creditors but all those who are engaged in legitimate business, and none more surely than those who are de- pendent upon their daily labor for their daily bread."— HAYES. "Every citizen of the United States has an interest and a right in every election within the republic where national representatives are chosen. We insist that these laws relating to our national elections shall be enforced, not nullified." —GARFIELD. "The right of railway corporations to a fair and profitable return upon their investments and to reasonable freedom in their regulations must be recognized; but it seems only just that, so far as its constitutional authority will permit, Congress should protect the people at large in their inter- state traffic against acts of injustice which the State Qovernments are powerless to prevent."— ARTHUR. "I believe that the protective system has been a mighty instrument for the development of our national wealth and a most powerful agency in protecting the homes of our workingmen."— HAR- RISON. "To increase production here, diversify our productive enterprises, enlarge the field and in- crease the demand for American workmen; what American can oppose these worthy and patriotic objects?"— Mckinley. "The present phenomenal prosperity has been won under a tariff made in accordance with certain fixed principles the most important of which is an avowed determination to protect the interests of the American producer, business man, wage- worker and farmer alike "—ROOSEVELT. — c c ;j :r <^' ^ 8 S I ^* i . • . . . .00 • 00 • f -O • 00 • OS l-< «D i^ ift e» e? o r-" 05 -co -55 -M - - Wl :- too S? ^^ 03 w - 1 O O 5^ Qj « ! »-!!!'^ '^'S ' D t^ C •'- « , Sip is ^ •-"0 Si! T3 ; .5 «>.-= O , p fe s -e •a ilili Ml Cl V CO I o S I fe g « .2 I « i^ { ft Bin ID « i" Q) O) •jj S3 O > C O c;?; « (U oj « — « n> •50 1-. Jh C =5 >■ K 6UI ! > es ( >•<»«: 00 in _ O O O C ~ •'^ ----—.,.-._ — — a p ^^ h W OQ -acaa">-'MM«c3_6s& «&« o baa c c n I- ts n •go 15. 3-M 00 «2 RETURN TO the circulation desk of any University of California Library or to the NORTHERN REGIONAL LIBRARY FACILITY BIdg. 400, Richmond Field Station University of California Richmond, CA 94804-4698 ALL BOOKS MAY BE RECALLED AFTER 7 DAYS • 2-month loans may be renewed by calling (510)642-6753 • 1-year loans may be recharged by bringing books to NRLF • Renewals and recharges may be made 4 days prior to due date DUE AS STAMPED BELOW Due Date: JUL 1 4 2005 DD20 6M 9-03 (B931l8l0)476 "*"' "'Berkeley Mtll895 1 9 .- THE UNIVERSITY OF CALIFORNIA LIBRARY