N Republican Campaign Text-Book 1904 ISSUED BY THE REPUBLICAN NATIONAL COMMITTEE PRESS OF THE EVENING WISCONSIN CO. 366-368-370 Milwaukee Street, 130-132-134-136 Michigan Street Milwaukee, Wis. it outline of contents. Paoh. Things for which the Republican party stands 329 Republican legislation, 1860 to 1904 ;tt2 Laws enacted by the Republican party 888 Work of the Departments, 1897 to 1904 :v,U, 392 Department of State 334 Treasury Department 340 War Department 347 Department of Justice 362 Post-Offlce Department 366 Navy Department 371 Department of the Interior 379 Department of Agriculture 883 Department of Commerce and Labor 386 The Civil Service 393 Railway Regulation 395 Merchant Marine 398 Pensions and Pension Laws 408 The problem of our colored citizens 416 Vote for representatives in Congress, 1900-1902 423 Vote for President, 1900 424 Vote for President, 1856 to 1900 425 McKInley and Bryan states, conditions In 426 Work of the 58th Congress 427 German-Americans for Roosevelt 432 Budgets of principal countries of the world, 1880-1902 435 Progress of the United States in principal Industries 436-440 Development of the United States, 1800 to 1903 442, 443 Railways in the United States, 1883-1902 condition* 444 Financial and commercial conditions of principal countries 445 Last speech of William McKUiley 449 Last s£e,ech of Mascus* £j .Hr.nna 452 Fifty yaars of the'« Republican* party, Hon. John Hay 456 Fifty .years pf the. Republican party, Hon. C. W. Fairbanks 464 Spe*icl/ of Hod. EHhnI Root, Republican National Convention, 1904... 466 Speech of Hon. J. G.' Ca'ririon, Republican National Convention, 1904. 479 Platform of Republican party, 1904 482 Platform of Democratic party, 1904 486 Platform of People's party, 1904 491 Democratic platform and candidate discussed 493 The St. Louis Esopus episode 497 The trusts and Judge Parker 503 Democratic record on the gold standard act of 1900 505 Silver planks of Democratic platforms, of 1890-1900 507 Rejected gold plank of St. Louis platforms, 1904 508 Judge Parker's telegram and the Convention's reply 508 Gold standard act of 1900 509 Currency record of Republican and Democratic parties 512 Commerce of gold and silver standard countries of the world.. 516 Gold and silver production of United States, 1792-1903 517 Gold imports and exports of United States, 1825-1903 518 Commerce of the United States and Canada 522 Coinage of the United States' mints 1846-1903 519 World's production of gold and silver 1492-1903 520 Stocks of money in 13 principal countries, 1873-1903 521 Commerce of the United States with Canada, 1850-1903 522 Passports and protection to American Citizens abroad 523 President Roosevelt's speech to notification committee 529 Senator Fairbanks' speech to Notification Committee 533 Judge Parker's speech to the Notification Committee 541 Republican National Committee 547 Republican Congressional Committee 548 Electoral votes by states, 1864 to 1900 549 Electoral votes allotted to each state in 1904 549 INDEX A Page. Advance in prices chiefly in natural products 247 Advance in prices 241 Advance in prices in other countries 243 Adversity vs. prosperity in three presidential periods 105 Adversity under low tariff of 1894 100 Agitation of tariff, effect on manufactures and business 47 Agriculture Department of, work of, 1897-1904 383 Agricultural interest benefited by return to protection 103 Agricultural products, exportation of, 1850 to 1903 130 Agricultural products, prices compared with articles consumed 145 Agricultural prosperity under Republican Administration 136 Agricultural products, exportation of, under low tariff 139 Allison, Hon. W. B. on trusts and tariff 195 American citizen protected abroad 526 American tariffs, 1789 to 1903 56 American vessels engaged in foreign and domestic trade, 1860-1903.. 405 American wheat crop and consumption of in United States, 1877-1903. 141 Animals on farm, number and value, by groups, 1875-1903 140 Animals on farms, value of, 1850-1903 440 Animals on farm value of, under four Presidents 141 Area, population wealth, etc., of United States, 1800-1903 442 Arid lands, irrigation for 160, 162 Army reduction and organization 348 Asia, commerce with United States, growth of, 1899-1903 322 Australia, tariff of 8 Average wage increase or decrease, 1890-1903 204 B Balance of trade before and since March, 1897 , 62 Balfour, Sir Arthur, on British prosperity. 94 Bank clearings in New York, 1850-1904 437 Bank clearings in United States, 1890-1903 437 Bank deposits, (all classes of banks) 1875 to 1903 109 Bank deposits by states, 1892-96-1903 113 Bank deposits, savings, 1820 to 1903 107 Bank deposits, in United States, 1875-1903 438 Banks, national, 1863 to 1903 110 Banks, national organized 346 Barrett, Hon. John, on extension of American influence 323 Barrett, Hon. John, on shipping question 402 Beet sugar, production in the United States 155 Beet and cane sugar production in United States 157 Beet sugar, produced in United States, 1880-1903 159 Beet sugar and Cuban reciprocity 156 Beet sugar and cane sugar production of the world, 1840-1903 159 Beet sugar production of the United States, 1880-1903 440 Belgium, tariff of 7 Bismarck on protection in United States 95 Boots and shoes, did tariff on hides affect prices of? 44, 46 Boots and shoes, prices 1897 to 1904 66 Budgets of the principal countries of the world, 1880-1903 435 Page. Boltftio speech of President McKlnley 449 Bureau of corporations, Its work since orgnnlzntlon 888 BostnetS and industrial conditions, 18964)6 V2~> r.usincss of Post Office Department, statistical details, 1790-1903... 370 Rrltlsh and American Industrial growth compared 04 Rritish arguments for protection 57 Rrltlsh colonies, tariffs of 8 Rritish Imports of manufactures 8 Hrltlsh Iron and steel commission, views on United States Industry.. 52 I'.ritish tariff and revenues produced thereby 70 British tariff, detailed statement 70 British view of protection '. 49 Bryan and McKInley states of 1900, conditions In 420 Bryan, Wm. Jennings, speech on Parker etc 52!» c Cable, the Pacific 293 Panada, commerce of United Staffs with, 1850-1903 522 Canada, reciprocity with 45 Canada, tariff of 8 Canal Sault Ste. Marie, tonnage of vessels, 1800-1903 440 Canal, Panama discussed 207 Cane and beet sugar production of the world, 1840-1903 159 Cannon, Hon. J. G., speech at Republican National Convention, 1904. 479 Capital and labor, relative share In prosperity 37 Capital Invested in manufacturing 1850 to 1900 07 Census of 1900 on share of manufactures produced by trusts 15 Census report on irrigation 1G3 Chamberlain, Hon. Joseph, on British prosperity 94 Cheap transportation destroys natural protection 6 Circulation of money in the United States, July 1st, 1904 397 Circulation of money, increase, 1896 to 1904 341 Circulation of money in the United States, 1800-1903 442 Circulation of money in United States, 1850-1904 437 Civil service, the 393 Clearing house returns in New York and United States 112 Cleveland's administration, record of trusts 191 Cleveland low tariff adversity 100 Coal consumption as a measure of industrial activity 01 Coal consumption in free trade and protection countries 01 Coal consumption In high and low tariff countries 12 Coal, growth in production in United States 39, 01 Coal, prices of before and after removal of tariff 45 Coal production of United States, 1850-1903 439 Coal strike, President Roosevelt's action 201 Coinage of United States mints, 1840-1902 523 Colonies, trade of Great Britain with its, 1809-1902 321 Colored citizens, problem of 410 Colored employees in the service of the United States government. . 42'J Combinations, industrial, in England 13 Combinations, wages paid by, before and after consolidation.. 230 Commerce, effect of protection upon 20, 02 Commerce, growth under reciprocity 40 Commerce and Labor, department of, its work since organization.. 380 Commerce of countries commercially adjacent to the Philippines 322 Commerce of gold and silver standard countries of the world 519 Commerce of the United States, 1790 to 1904 128 Commerce of United States with Asia, 1899-1903, growth of 322 INDEX. Vll P4.GE. Commerce of 'United States with Canada 522 Commerce of the U. S. in American and foreign vessels, 1860-1903.. 400 Commerce of U. S. compared with Germany and United Kingdom.. 122 Commerce with countries protesting against Dingley law 30 Commerce with our Island possessions 292 Commerce with Oceania 295 Commerce of the Orient, importance to the United States 291 Commerce of the Pacific, development of 290 Commerce of the United Kingdom, growth compared with U. S... 122 Commerce of the United Kingdom, with its colonies, 1869-1902 321 Commercial failures in United States, 1880 to 1903 114 Commercial and financial statistics of principal countries 445 Commercial relations of United States with its islands 318 Committee, Republican National 547 Committee, Republican congressional 548 Conditions in Bryan and McKinley states, of 1900 426 Conditions in United States compared with other countries 122 Conditions of prosperity 1S92-96-1900 and 1903 116 Congress, the 58th, its work discussed 427 Congressional election record, 1900-1902 423 Congressional Record, "Extracts From" described 4 Congressional Record, "Pages From" described 4 Consumption of coal in free trade and protection countries 61 Consumption of cotton as test of prosperity 102 Control of markets and prices by corporations 15 Corn, average value per bushel, 1870-1903. 441 Corporations, bureau of, its work since organization 388 Corporations, can they control markets and prices 15 Corporations, Judge Grosscup on 16 Corporations, President Roosevelt on 17 Cost of living in United States and England compared 34 Cotton consumed by manufacturers of United States, 1850-1903 440 Cotton consumption as test of prosperity 102 Cotton industry of United States, 1850 to 1900 92 Cotton Manufacturing development under protection S8 Cotton production, manufacture, importation and exportation 92 Cotton production of United States, 1800-1903 443 Cotton production of the United States, 1830-1903 440 Countries protesting against Dingley law, trade with 29 Crops, principal, value of, 1866-1903 139 Cuba, Democratic record regarding 288 Cuba, naval stations in 376 Cuba record of action by United States 284 Cuban reciprocity and beet sugar 156 Currency of all kinds in circulation July 1st, 1904 397 Currency of 13. principal countries 525 Currency record of Republican and Democratic parties 515 Currency system element of elasticity development 343 D Day's wages, purchasing power of, 1896-1903 211 Debt and wealth of leading nations 124 Debt of United States, 1800-1903 442 Debt of United States 1850-1903 437 Debt of U. S. 1865-1903 135 Democracy and panic periods 58, 60 Democratic adversity, record of 1893-96 125 viii index. Page. Democratic convention reply to Judge Parker's telegram.. 511 Democratic party, Its policy of opposition, Littleton 2 I democratic platform, iD04 489 I democratic platform discussed and analyzed 496 Democratic press on exports below home prices 22 1 democratic record in Cuban legislation 288 Democratic record on rural free delivery 165 Democratic record on trusts 168, 101 Democratic silver planks 1896-1900 510 Democratic vote against gold standard act / 508 Democratic and Republican pension legislation record 411 Democratic and Republican record on currency 515 Democratic and Republican States, labor laws in 236-238 Department of Agriculture, its work, 1897-1904 383 Department of Commerce and Labor, Its work * 386 Department of Commerce and Labor, work regarding trusts 176 Department of Interior, its work, 1897-1904 379 Department of Justice, its work, 1897-1904 362 Department of Justice, work regarding trusts 172 Department of State, its work, 1897-1904 334 Department of State, work in the Orient 324 Deposits in all classes of banks, 1875 to 1903 109 Deposits in Savings Banks, 1820 to 1903 107, 108 Deposits, savings, in various countries 108 Dingley law, imports of raw material under 42 Dingley tariff, prosperity urder 12 Dingley law, trade with countries protesting against 29 Diplomacy of the United States in Orient 324 Duties collected under low and protective tariffs 30, 59 Duties paid per capita on imports, 1870 to 1903 133 E Earnings in various occupations, 1903 compared with J.896 206 Earnings of railway employees, 1896 and 1903 236 Earnings of various occupations, 1890-1903 200-203 Effect of tariff agitation on manufactures and business. 47 Effect of protection on export trade 25 Elasticity in currency system development 343 Election laws in the South and North 420 Election of members of Congress, vote on, 1900-1902 423 Electoral votes by States, 1864 to 1900 '. 537 Electoral and popular vote for President, 1900 424 Electors, number to earn State, 1904 549 Employers and employees in United States, English views on 53 Employees of manufacturing establishments in U. S., 1850 to 1900.. 67 Employees of railways, earnings of 1896 to 1903 * 236 Employment and wages paid in manufacturing, 1850 to 1900 67 England and the United States, wages of labor in 222 England and United States, relative to industrial growth 64 England and United States, wages in cities. 226 England and United States, retail prices in 227 England, experience with free trade 16 England, growth of wealth and manufacturing 38 England, imports and exports of manufactures, 1860 to 1902 40 England, sales abroad below home prices 21 England, trusts in 181 English argument for protection 57 Page. English attitude toward trusts 13 English imports of manufactures 8 English Iron and Steel Commission to United States 52 English Labor Commission to United States 51 English tariff, detailed statement 70 English tariff and revenue produced thereby 70 English views of American tin plate industry 54 English view of protection 49 Esopus-St. Louis episode 500 Europe, trusts in 180 European combinations against the United States 27 European exports below home prices 22 Excess of exports before and since March 4th, 1897 62 Exchange value of food products, 1896 and 1903 216 Expansion and its results 296 Expenditures and receipts of United States, 1790 to 1903 134 Expenditures of the United States compared with other countries.. 115 Expenditures of leading nations per capita 124 Expenditures for military and navy services of principal countries. . 435 Expenditures of principal countries of the world, 1880-1903 435 Expenditures of principal countries for navy 378 Expenses of living in United States and England compared 34 Exportation of agricultural products, 1850 to 1903 130 Exportation of farm products under low tariff 139 Exportation of manufactures 1850 to 1903 130 Exports and imports of the United States, 1790 to 1904 128 Exports and imports, excess of under high and low tariffs 62 Exports below home prices, democratic press on 22 Exports by England below home prices 21 Exports of U. S. to Grand Divisions, 1850 to 1903 132 Exportation by great groups, 1850 to 1903 130 Exports, excess of, before and since March 4th, 1897 62 Exports from the United States, 1850-1904 438 Exports from United States, 1800-1903 '. 443 Exports of manufactures below home prices 18, 80 Exports of manufactures from the 1 United States, 1850-1904 438 Exports per capita, 1870 to 1903 i 133 Exports to Asia and Oceania 294 Exports to countries protesting against Dingley law 30 Exports to the Orient, by articles 294 Export trade, effect of protection on 25 Exports under high and low tariffs of United States 26, 62 Extension of National bank system 344 "Extracts from Congressional Record" described 4 F Failure of crops not cause of panic of 1893-4 60 Failures in United States, 1880 to 1903 114 Failures, strikes, etc., 1893-1896 125 Fairbanks, Hon. C. W., speech at Jackson, Mich 456 Fairbanks, speech to Notification Committee 539 Farm animals, increase in value 137 Farm animals, number and value, by groups, 1875-1903 140 Farm animals, value of, 1850-1903 440 Farm animals, value of, under four presidents 141 Farm crops, value of, 1866-1903 139 Farm crops,, value of, 1895 to 1903 .- 114 X INI" Page. Farm earnings in manufacturing and nonraanufacturing sections. . . . 148 ■ products, exportation of, under low tariff 130 Farm products, freight rates of 18681003 146, 147 ■ products, price, by states, 1802-1003 142, 143 Farm products, prices compared with articles consumed 1877-1003.144, 145 Farm prodm -ts. purchasing power of, 1806 and 1003 217, 210 l arm products, share used by manufacturers 31 Farm values, growth of 08 Farm values, increase in, since 1895 114 Farm values, Increase of, under Republican administration 136 Farmers benefited by return to protection 103 Farmer, relation of manufacturing to 91 Farmer's prosperity under Republican administration 136 Farmer, value of factory to 148 Fifty years of Republican party, Hon. John Hay 456 Fifty-eighth Congress, Its work 427 Financial, commercial and industrial conditions, 1802 to 1003 116 Financial and commercial statistics of principal countries 445 Financial record of the Republican and Democratic parties 515 Food in England, prices of, increase in 225 Food products, exchange value of, 1806 and 1003 215 Food purchased with one day's wages, by articles, 1806-1003 211 Food, relative prices, 1800-1003 200 Foreign carrying trade in American and foreign vessels, 1860-1003.. 406 Foreign commerce of the United States 128 Foreign countries, tariffs of 7 Foreign sales below home prices 18, 80 "Free raw materials" under Dingley and Wilson laws 42 Free trade between the U. S. and Porto Rico, Hawaii, and Alaska. . . 207 Free trade destructive In England 16 Free trade, English arguments against 57 Freight rates on farm products, 1868-1003 146, 147 France, tariff of 7 Q Garfield, Hon. James A., on great corporations 180 German-Americans for Roosevelt 432 Germany, tariff of 7 Germany, wages affected by protection 63 Gold certificates in circulation in United States, July 1st, 1004 307 Gold, excess of Imports over exports, 1850-1003 439 Gold imports and exports 52 1 Gold in circulation in United States July 1st, 1004 397 Gold and sliver production of the world, 1403-1002 524 Gold and silver standard countries of the world, their commerce 51.0 Gold and silver produced by principal countries 1002 524 Gold and silver productions in the United States, 1402-1003 520 Gold standard act, Democratic vote against 508 Gold standard act, copy of r )12 Government expenditures of the United States, 1850-1003 437 Government receipts under low and protective tariffs 30 50 Gray, Judge, on President's attitude in coal strike 2G3 Great Britain, Chamberlain and Balfour on lack of prosperity 04 Great Britain, labor conditions in 34 Great Britain, trade with its colonies, 1860-1002 321 Page. Great Britain, trusts in 13 "Greenbacks" in circulation, July 1st, 1904 397 Grosscup, Judge, on corporations 16 Growing demand for tropical products in the United States 292 Growth of exports to Asia and Oceania 294 Growth of exports under protection 26, 62 Growth in imports and exports of manufactures, England and U. S. . 41 Growth of wealth in United States and other countries 37, 38 Growth of wealth under protection 98 Guenther, on European exports below home prices 22 H Hanna, Marcus A., last words of advice to the party and people. . . . 452 Hawaiian Islands, commerce with, 1897-1903 319 Hawaiian Islands, Philippines and Porto Rico, conditions 299-322 Hawaiian Islands, work of United States in 311 Hay, Hon. John, speech at Jackson, Mich 456 History of Republican party, Hon. John Hay on 456 History of Republican party, Senator Fairbanks on 464 Home market, equals world's international commerce 32 Home markets, value under protection 31, 32 Homestead entries in United States, 1890-1903 441 I Immigrants arriving in United States, 1850-1903 441 Importation of manufacturers' materials, 1850 to 1903 129 Importation, production and consumption of sugar, 1880-1903 158 Imports and exports of gold coin and bullion, 1825-1903 521 Imports and exports of United States, 1790 to 1904 128 Imports by Grand Divisions, 1850 to 1903. 131 Imports into the United States, 1850-1904 438 Imports into United -States, 1800-1903 443 Imports of material for manufacturing, 1850-1903 439 Imports of the United States by great groups, 1850 to 1903 129 Imports, prices advance in 244 Imports, tropical into the United States, by articles, 1870-1903 .... 320-321 Increase and decrease of earnings, 1890-1903 204 Increase in prices of food in England 225 Increased earnings of various occupations, 1896-1903 206 Industrial combinations, effect on wages 230 Industrial combinations in England v 13 Industrial Commission on trusts abroad 14 Industrial Commission on prices in foreign markets 18-80 Industrial growth in England and United States 64 Industrial life insurance under high and low tariffs 33 Industrial life insurance in force in United States, 1880-1902 438 Insular tariff cases 362 Insurance, life, in force in United States, 1850-1902 438 Interdependence and home exchange under protection 32 Interest charge, United States, per capita, 1850-1903 437 Interest on public debt, 1865-1903 135 Interest charge on public debt of United States, 1850-1903 437 Interior Department, its work, 1897-1904 379 Interstate commerce commission, its work 395 Investigation of Post-Office Department 367 Iron and coal as an index of prosperity 99 Iron and steel consumption in United States and other countries.... 78 XII INDI.X. Page. Iron and steel Industry In the United tSates 77 Iron and steel, share produced by steel corporation 15, 05 Iron ore, prices, 1898 to, 1903 83 Irrigation, President Roosevelt on HH), 1G2 Irrigation statistics, what has been accomplished li;.". Islands of the United States, commerce with 318 Island territories of the United States, conditions 29,9 322 Isthmian canal, advantage to western ports 296 Isthmian canal discussed 1M!7 Italy, tariff of 7 J Jarrett on English exports below home prices 21 Jeans, English steel expert, on manufacturing In United States 52 Jenks, Prof., on trusts abroad 14 Jewish citizens, passports question discussed 526 Judge Gray on President's attitude in coal strike 263 Justice, Department of, its work, 1897-1904 362 L Labor and capital, relative share in prosperity 37 Labor conditions in Great Britain 34 Labor and protective tariff 33 Labor Bureau reports by states 231 Labor Commission, English, visit to United States 51 Labor, effect of trusts on 227 Labor in United States, English views 53 Labor in United States and England, wages of 222 Labor laws in Republican and Democratic states 236-238 Labor, relative compensation in United States and England 36 Labor, wages and prices 200 Land frauds, work of Interior Department regarding 379 Last speech of Marcus A. Hanna 452 Last speech of Wm. McKinley 449 Laws enacted by Republican party 332 Laws, labor in Republican and Democratic states 236-238 Leather manufactures, prices not affected by tariff on hides 44, 46 Legislation, Republican, on labor 332 Life insurance in force in United States, 1850-1902 438 Life insurance, industrial, under high and low tariffs 33 Lincoln on tariff 48 Littleton, Hon. Martin W., on Democratic party 2 Live stock on farms, value of under four Presidents 141 Live stock on farms, number and value of, by groups, 1875-1903 .... 140 Living, cost of in United States and England compared 34 Living, cost of, compared with wages 208 Losses of wage earners under low tariff 100 M Manufactures, annual value of products 150 Manufactures exported from the United States, 1850-1904 438 Manufactures exported from United States, 1800-1903 443 Manufactures, exports of 130 Manufactures, exports less than home prices 18-80 Manufactures, imports and exports, England and U. S., 1860 to 1903. 41 Manufactures, imports and exports of England, 1860-1902 40 INDEX. Xlll Page. Manufactures, imports into Great Britain 8 Manufactures of the United States by great groups in 1900 150 Manufactures of leading countries compared with United States 124 Manufactures in the United States, value, 1850-1900 150 Manufactures, prices not controlled by trusts 44 Manufactures, relative growth under high and low tariffs 38 Manufactures, value of product in United States, 1850 to 1900 67 Manufacturer's materials, advance in prices of 242 Manufacturer's material imported, 1850*1903 439 Manufacturers, use of farm products by 31 Manufacturing in the United States, capital, wages, etc., 1850 to 1900 6T Manufacturing in United States, Moseley commission on 51 Manufacturing, progress in the United States, 1850 to 1900 . 67 Manufacturing, value to the farmer 148 Markets, can corporations control 15 Markets supplied by islands of United States 318 Materials for use in manufacturing imported into U. S., 1850-1903.. 439 Materials for use in manufacturing, imported, 1850-1903 439 Materials used in manufacturing, 1850 to 1900 67 McKinley, Wm., last speech of 449 McKinley tariff, prosperity under 12 McKinley and Bryan states of 1900, conditions in 426 Merchant marine of United States and the world 398 Merger suit, what it saved 193 Merger case, New York World on 196 Military and naval expenditures of leading countries 435 Military service, its work, 1897-1904 348 Mineral productions as test of prosperity 102 Mineral production of the United States, 1870-1903 440 Mints, United States, coinage of, 1846-1902 523 Money in circulation in United States, 1800-1903 442 Money in circulation in United States, 1850-1903 437 Money in circulation in United States, July 1st, 1904 397 Money in circulation, increase, 1896 to 1904 341 Money in 13 principal countries of the world, 1873 and 1902 525' Money supply, elasticity in system, development of 343 Moseley commission to United States, views of members 51 Moseley, English manufacturer on United States 35, 50 Mulhall on Protection in United States 95 N National banks, 1863 to 1903 110 National bank notes in circulation, July 1st, 1904 397 National banks organized since March 4th, 1900 346 National bank system, its extension 344 National bank statistics, 1904 121 National expenditures of leading nations compared, per capita . . 124 National expenditures of leading countries, per capita • 115 Natural protection destroyed by cheap transportation 6 Naval expenditures of principal countries 378 Naval and military expenditures in leading countries 435 Naval stations in Cuba 376 Navy Department, work of, 1897-1904 371 Netherlands, tariff of 7 New York World on Merger case 196 New Zealand, tariff of 8 XIV INDEX. Page. Noncontiguous territories of the United States, conditions 299-322 Nondurable articles, advance in prices 119 Northern securities decision 177 Norway, tariff of 7 Number of persons engaged In manufacturing, 1850 to 1900 67 o Ocean mall service payments by U. S. and United Kingdom, 1848-1903. 407 Oceania, commerce with 295 Old age pension order, Gen. Sickles on 412 Old age pension order, Secretary Hitchcock on 413 Old age pension order issued by Lochran, in 1893 414 Open shop order of President Roosevelt 259 Organization and reduction of the army 348 Orient exports to, by articles 294 Orient, importance of its commerce to the United States 291 P Pacific, the, development of commerce on 290 Pacific cable 293 Pacific coast brought nearer European markets by canals 296 "Pages from Congressional Record" described 4 Panama Canal, advantage to Western ports 296 Panama Canal discussed 267 Panama Canal, distance between ports via 283 Panama, extract from President's message on 276 Panama Republic recognized by foreign governments 274 Panama, Secretary Root on 274 Panic of 1893-4 not due to crop failures 60 Panic periods and Democracy 58, 60 Parker and trust managers .' 198 Parker and the trusts 506 Parker, Wm. Jennings Bryan on 529 Parker's letter on his vote for free silver, 1896-1900 500 Parker telegram to St. Louis convention 511 Parker ; speech to Notification Committee 541 Passports and protection to American citizens of all classes 526 Pensions, cost of, 1866-1903 410 Pensions and pensioners 408 Pension legislation, Republican and Democratic record contrasted.... 411 Pension Order No. 78, Secretary Hitchcock on. 413 Pension Order No. 78, General Sickles on 412 Pensioners, number on the roll, 1866-1903 410 People's party, platform of, 1904 494 Per capita of exports and imports, 1870-1903 133 Per capita of imports and duties paid, 1870-1903 133 Per capita of national debt and interest, 1865-1903 135 Per cent of increase or decrease in hours of labor 205 Per cent of world's sugar production by beet and cane, 1840-1903. . 159 Philippines, commerce with, 1897-1903 319 Philippines, commerce of countries commercially adjacent to 322 Philippine Islands, work of the United States army in 350 Philippines, work of United States in 299-311 Philippines, Porto Rico, and Hawaiian Islands, conditions 299-322 Pig iron, growth in production in United States 39, 78 Pig iron, production of the United States, 185&1903 439 INDEX. XV Page. Platform of Democratic party, 1904 489 Platform of Democratic party discussed and analyzed 496 Platform of the People's party, 1904 494 Platform of Republican party, 1904 485 Popular and electoral vote for President by states, 1900 424 Popular and electoral vote for President, 1856 to 1900 425 Population of the United States, 1850-1903 437 Population, wealth, and area, etc., of the United States, 1800-1903. . 442 Populist party, platform of, 1904 494 Porto Rico, commerce with, 1897-1903 319 Porto Rico, work of United States in 313 Porto Rico, Hawaiian Islands, and Philippines, conditions 299-322 Portugal, tariff of 7 Post-Office Department, its development, 1790-1903 370 Post-Office Department, its work, 1803-1904 366 Post-Office Department investigation 367 Post-Office Department, revenues of, 1790-1903 370 Post-offices, number in United States, 1790-1903 370 Post routes in United States, length of, 1790-1903 370 Postal fraud case, result of 368 Postal investigation, result of cases tried 368 Postal receipts, 1893-1904 306 Postal statistics of United States, 1790-1903 370 President Roosevelt's administration, record of 252 President Roosevelt and the coal strike 261 President Roosevelt on irrigation 160, 162 President Roosevelt on public lands 160 Presidential vote, electoral and popular, 1900 424 Presidential vote, electoral and popular, 1856-1900 125 Prices, 1880-1903, annual average 245 Prices, advance of, in articles imported 244 Prices, advance is chiefly in natural products 247 Prices and advance in other countries 243 Prices and relation of trusts thereto 15 Prices and tariff, English views on 55 Prices at home, does protection increase 43 Prices, can corporations control 15 Prices, does tariff control 119 Prices not controlled by trusts , 44 Prices of articles of farm production and consumption, 1877-1903. . 144, 145 Prices of boots and shoes, 1897-1904 66 Prices of coal before and after removal of tariff 45 Prices of cotton and cotton goods in United States, 1880-1003;. 93 Prices of farm products by states, 1892-1903 142, 143 Prices of food in England, increase in 225 Prices of manufactures reduced by domestic prosperity 99 Prices^ of iron ore, 1898-1903 83 Prices of tin plate and fall under protection 85 Prices of trust-made articles, decline in 118 Prices, relative, of food, 1890-1903 209 Prices, retail, in United States and England 227 Prices, wages, and labor 200 Problem of our colored citizens 416 Production of gold and silver in the world, 1493-1902 524 Production of gold and silver by principal countries. 1902 524 Production, importation, and consumption of sugar, 1880-1903 158 Production of minerals as test of prosperity 102 XVI INDEX. Page. Progress of manufacturing in the United States, 1850-1900 t>7 Progress of United States in area, population, etc., 1800 loo:;. .. . I ij Progress of United States In its material industries 487440 Promise of tariff changes causes immed'ate check in prosperity.... LOO Prosperity and relation to the various tariffs of the United States, i 86 Prosperity, conditions in 1892-96, 1900-03 110 Prosperity in the United States !) I Prosperity of the farmer under Republican adniiuislr.it ion i;;r, Prosperity permanent under permanent protection 07 Prosperity, return of, under DIngley tariff 101 Prosperity, relative growth by labor and capital 37 Prosperity under Roosevelt's administration 104 Prosperity under present tariff 12 Prosperity vs. adversity in three presidential periods 105 Protection and development of Iron and steel industry 77 Protection and labor 33 Protection as viewed by English Steel Commission 52 Protection as viewed by Moseley Commission 51 Protection, British view of 49 Protection does not increase home prices 43 Protection, effect on steel rail industry 78 Protection, effect on export trade 25 Protection, English arguments for 57 Protection, growth of exports under 26, f>L> Protection in Germany and effect on wages 63 Protection, natural, destroyed by cheap transportation (5 Protection, permanent, gives permanent prosperity 97 Protection reduced prices of steel rails 43 Protective tariff as revenue producer 30, 59 Protection, value to sheep and wool industry .■ 151 Public buildings, new, erected in United States since 1897 342 Public debt of United States, 1865-1903 131 Public debt and wealth of principal countries 109 Public lands, president Roosevelt on 160 R Rails, steel, exports below home prices 23 Rails, steel, prices reduced under protection 43 Rails, steel, production, tariff, and prices, 1867-1903 82 Railroads, earnings, passenger, freight carried, etc., 1885-1902. . . . 440 Railroads placed under receivership and sold, 1876 to 1903 112 Railway employees, earnings of, 1896 and 1903 236 Railways In length, business transactions, etc., 1883-1902 4t4 Railway legislation, recent 395 Railway regulations, work of interstate commerce commission 395 Rates of freight on farm products, 1868-1903 146, 147 Raw materials, advance in prices 242 Raw material, importations under Dingley law 42 Raw silk, imports into United States, 1870-1903 440 Receipts and expenditures of United States, 1790-1903 134 Receipts of the Post-Office Department, 1893-1904 306 Receipts of United States Treasury, 1850-1903 437 Receivership, railroads placed under, 1876-1903 112 Reciprocity, Blaine on 45 Reciprocity, commerce with Canada during 522 .. INDEX. XV11 I Page. Reciprocity, Democratic 46 Reciprocity, Democratic platform of 1892 47 Reciprocity, Democratic text-book of 1902 on 47 Reciprocity, expenses of United States with 45 Reciprocity, growth of commerce under 46 Reciprocity, Hawaiian Treaty 46 Reciprocity, McKinley on 45 Reciprocity, Republican 45 Reciprocity, treaties under McKinley law 46 Recognition of Panama by foreign governments 274 Record of Republican and Democratic parties on currency 515 Record of two parties on rural free delivery '. 165 Record of two parties on trust legislation 168 Reduction and organization of the army 348 Relative prices of food, 1890-1903 209 Relative value of lands, manufacturing and other sections 148 Retail prices in England and United States 227 Retaliation, tariff, by foreign countries 27 Reports of State Labor Bureau 231 Republican and Democratic record on currency 515 Republican and Democratic record on pension legislation 411 Republican and Democratic states, labor laws in 236-238' Republican legislation . . . ; 332 Republican congressional committee 548 Republican national committee. J 547 Republican party, some of the things for which it stands 329 Republican party, 50 years of, Hon. John Hay on 456 Republican party, 50 years of, Senator Fairbanks on 464 Republican platform, 1904 485 Republican record on rural free delivery 165 Republican record on trusts 168 Republic of Panama recognized by foreign governments 274 Result of expansion 296 Returns of clearing house in New York and United States 112 Revenue under British tariff 70 Revenue of United States under low and protective tariffs, 1790-1903. 59 Revenues of the Post-Office Department, 1790-1903 370 Revenue production under low and protective tariffs 30, 59 Revision of present tariff 13 "Rich growing richer and poor poorer" 37 River and harbor improvements under United States army 357 Roosevelt's administration, record of 252 Roosevelt, extract from message on Panama 276 Roosevelt, German Americans for 432 Roosevelt's labor record 258 Roosevelt, President, on trusts and corporations 17 Roosevelt on trusts and corporations 171 Roosevelt, prosperity under his administration 104 Roosevelt, speech to notification committee 530 Roosevelt, Theodore, personal history and record 248 Root, Hon. Elihu, speech at Republican National Convention, 1904... 466 Rural free delivery, appropriations of 1904 167 Rural free delivery, record of two parties on 165 Rural free delivery, work of Post-Office Department in 366 Russia, passports and persons visiting 526 Russia, tariff of 7 XVU1 INDEX. Sai th€ Philippine Islands, 1902 "•« National banks established In the United States, March 14, 1900, to April 30th, 1904 3- Postal receipts, 1893 to 1903 Postal statistics of the United States, 1790 to 1903 370 Naval expenditures of the principal countries of the world 378 Money In circulation in the United States July 1, 1904 397 American Merchant Marine, 1892 to 1903 398 Shipping subsldities paid by principal countries of the world 401 World's production of pig Iron, 1790 to 1903 404 American merchant marine, 18G0-1903 405 Merchant marine of the world, 1903 405 Foreign carrying trade of the United States, 1860-1903 406 Subsidies and payments for ocean mail service, 1848-1903 407 Pensions and pensioners of the United States 408-10 Colored officers, clerks and employees in the government service. . 45 Vote for representatives in Copgress, 1900-1902 423 Vote for President by states, 1900 424 Popular and electoral vote for President, 1856-1900 425 Conditions in McKinley and Bryan states of 1900 Budgets of principal countries of the world, 1880-1902 435 Military and naval expenditures of principal countries 435 Progress of the United States in manufacturing, production, etc., 1850-1903 437-440 Progress of United States in population, area, production, business conditions, etc., 1800, 1903 441-442 Railways in United States, mileage, earnings, freight and passengers carried, etc 444 Financial and commercial statistics of principal countries 445' Iron and steel industry of the United States, capital, wages, and labor employed 446 Iron and steel production of the United States, growth of 447 Railway employes of the United States, 1893 to 1903 448 Commerce of the gold standard and silver standard countries of the world 519 Gold and silver product of the United States, 1792-1902 520 Imports and exports of gold into and from the United States, 1825-1903 521 Commerce of the United States with Canada, 1850-1903 522 Coinage of the United States' mints, 1846-1903 523 Gold production of the world, 1492-1902 524 Stocks of money in 13 principal countries 525 Electoral vote cast by each state in each election, 1864 to 1900 549 Electoral vote of each state and number necessary to choice in 1904. . 549 ■ "FOUR GREAT FACTS/ "Four great facts seem to justify vhe Republican party in ask- ing the voters of the United States to continue it in control o>" tne affairs of the Government. First, th3 pJ-p.riptness • v,*i-x , vv].'h«h ,it has fulfilled the pledges of its platform upon which it success- fully appealed to the people in 1896; second, the prosperity which has come to all classes of our citizens with, and as a resuit of, the fulfillment of those pledges; third, the evidence which that pros- perity furnishes of the fallacy of the principles offered by the opposing parties in 1896, and still supported by them; and, fourth, the advantages to our country, our commerce, and our people in the extension of 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 Republican Campaign Text Book of 1900 applies with equal force to condi- tions in the present campaign. The four great facts which justi- fied 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 the Democracy then appealed for public support ; and, fourth, the con- ditions which had come to other parts of the world and their people as a result of promises fulfilled by the Republican party in the United States. These assertions made in the Text Book of 1900 have been fully justified by the added experiences of another four years. The pledges of 1896 and those made in 1900 have been redeemed The Protective Tariff has been restored; the Gold Standard made permanent ; Cuba freed and given independence ; the Panama Canal assured under the sole ownership and control of the United States; a Department of Commerce and Labor established ; Rural Free Delivery given to millions of the agricul- tural community ; the laws for the proper regulation of trusts and great corporations strengthened and enforced; prosperity estab- lished ; commerce developed ; labor protected and given ample em- ployment and reward; intelligence, prosperity, and good** govern- ment established in distant islands; and the flag of the United States made the emblem 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 discouragement, the opposition, and the hostilities of the Democracy. The Pro- tective Tariff was fought at every step, and is to-day 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 convention and platform of 1904 deliberately refused to retract in the slightest 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 and discouragements at every step. In the efforts to establish peace and good government in the newly acquired territory, each step met with opposition and false charges and the demand that .the territory and its millions of people be abandoned to internal strife or control by a mon- archial government. The acquirement of the right to construct the Panama Canal was met with opposition and obstruction at 1 'J i 01 i: OBI a r PACTS. every point The enforcement of law against trusts and other i prorations aw denounced as ineffective ana designed to deoelte .the public. The establishment of rural free delivery was discouraged Tho u \ )h '"' iv the "['position. But in any event the amount is so small as compared with the aggregate output of our factories as to be unworthy of consideration. The report of the Industrial Commission shows that some of these articles are protected in this country by pat- ents, and are not so protected in the foreign market. If the sup- posed evil as applied to patented articles is worthy of dr remedial measures, the most feasible would be the repeal of our patent laws. w "There is one other important feature not often recognized. The Republican party has always provided a method whereby a manufacturer can have the benefit of free raw material for the production of merchandise actually exported. Under regulations prepared by the Secretary of the Treasury, the consumer of im- ported material is allowed to recover back the duty paid thereon whenever he exports the same or any article manufactured there- from. During the fiscal year 1903, the amount of drawbacks thus actually paid exceeded $5,000,000. A portion of this was upon goods exported direct from warehouses and upon which no labor had been expended. But if Senator Gallinger's estimate, based upon the data furnished by the Industrial Commission, be correct, that only $4,000,000 worth of merchandise is annually sold abroad cheaper than at home, then the annual drawback onVmported ma- terial would seem to remove any presumption that an injustice is being perpetrated upon the American consumer. A very small portion of the $5,000,000 drawback would cover the difference be- tween the price at which this merchandise is sold abroad, and the domestic price. "The United States Census reports our aggregate manufactures of 1900 at $13,000,000,000. It is doubtless somewhat larger now. $4,000,000, the amount estimated to be sold abroad cheaper than at home, is therefore only one-thirtieth of one per cent of the aggre- gate. In other words out of every one thousand dollars' worth of manufactures produced by American labor, something like thirty cents' worth is sold abroad cheaper than to our own people; or, stated in yet another form, every time our shops and factories pay five hundred dollars to labor, and therewith produce one thou- sand dollars' worth of goods, they sell thirty cents' worth abroad for twenty-nine cents. "Whether this practice is defensible or not, foreign producers very generally and almost universally do the same thing. Nearly every class of goods imported into this country is obtainable for export to this country below the regular foreign market. And this is as true in free trade England as in protection France or Ger- many. Our tariff law provides that imported merchandise shall be appraised at its regular market value at the place whence it is imported and at the time of importation, and a penalty is provided for undervaluation. To avoid this penalty the importer adds to the invoice what he admits to be the difference between the regu- lar foreign market value and the price actually paid. During the eleven months of the present fiscal year over 6,000 invoices entered at the one port of New York have been thus advanced by the im- porter to make market value, and the aggregate of the advance- ments thus made upon these invoices exceeds $1,200,000. During the fiscal year 1903, $32,000,000 worth of merchandise was imported at New York admittedly below the foreign market value, and the importer voluntar-ily added $1,500,000 to the invoice to make mar- ket value as the confessed difference between the price actually paid and the regular foreign market value; and Treasury officials added thereto an additional $400,000 and imposed and collected a penalty of $400,000. The goods thus sold by the foreign producer cheaper for exportation to the United States than for home con- sumption include woolen goods, cotton goods, silk goods, and linen goods of all kinds; umbrellas, ribbons, trimmings, velvets, hosiery, rugs, furs, cutlery, glassware, jewelry, furniture, saddlery, guns, wool, hides, chemicals, machinery, iron and steel products gener- ally, and groceries. In fact, they include about everything and from all countries. "So universal is the practice of selling goods for export to the United States cheaper than for domestic consumption that a very large and influential association of importers have sought for years to have our tariff laws amended so as to authorize the as- sessment of ad valorem duties on the foreign market value for ex- portation to the United States instead of as now upon the regular foreign* value at the place whence the goods are imported. This association of importers thus recognize and confess the fact that there are two foreign market values of merchandise, one the mar- ket value for domestic consumption and the other the market value for export to the United States. They also recognize and confess that a change of. the law permitting the assessment of ad valorem duties on the market value for export to the United States would be as advantageous to them as a reduction in the rate of duty. "It is a well known fact that sugar which sells in the United States, duty paid, at five cents per pound retail, is worth in the country of production, seven and one-half cents per pound whole- sale. The very men who grow the beets from which this sugar is made, pay ten cents per pound retail for the same sugar which we get at five cents per pound, and the foreign beet grower is statesman enough to approve the policy. He is willing to pay a higher price for the small amount of sugar which he consumes, on condition that the product of his field shall supply the American table. Speaking for myself alone, I am willing to pay any reasonable price for the small amount of barbed wire which I consume, pro- THE TARIFF. 21 vided the wheat from my field, the dairy products from my herd, and the meat from my stall, shall feed the men who mine the coal and iron, and the artisans who produce the wire to fence the farms of other countries." Exports from England at Less Than Domestic Prices. That the manufacturers and exporters of free-trade England sell their goods in foreign countries at less than the prices charged in the home market is shown by the following extracts from official reports to the Department of State of a United States Consul in England. The correspondence in question oc- curred in 1890 and 1891, and while not intended as a discussion of thei question of exports at less than domestic prices, tells in- cidentally some important facts bearing upon certain questions now at issue. The statements, which are those of the United States Consul at Birmingham, England, show habitual and con- tinuous exports to the United States at . less than the prices charged for the same article in the domestic markets of England. This is important in its bearing upon the claim that exports at less than domestic prices are made possible through the exist- ence of a protective tariff, and also in its relation to the claim which has always been made by protectionists that at least a part of the protective tariff duty is paid by the foreign manufac- turer or exporter to the country in question. The statements which follow are extracts from a series of reports in 1890 and 1891 to the State Department by Hon. John Jarrett, consul of the United States at Birmingham, England. These reports are the results of some investigations made by Mr. Jarrett with the purpose of determining whether the statements made to him as to the prices at which certain goods were being exported to the United States were or were not accurate and had as their purpose the determination of the question as to whether the goods were being undervalued. This fact will account for the fragmentary character of the statements, since they were made in a discussion of a subject different from that now under consideration. The facts developed, however, that the goods were being sold at less than the prices charged in the home mar- kept, are pertinent to the present issue. In a communication to the State Department dated April 15, 1891, Mr. Jarrett says: "It is extremely difficult to get at the actual selling- prices of cycles, as there are no wholesale price lists in general use, nor are there any market quotations or prices current to be found in use in or by the trade. The retail price lists are in general use. and prices are made according to quantities sold, and the standing of the buyers, by discounts on the retail price. These discounts range in the foreign trade from 30 to 60 per cent, and in the home trade from 20 to 40 per cent. To very large customers, especially American customers, the manufacturers furnish special prices. * * * I desire also again to call your attention to the difference in discounts allowed in the home and foreign trade. In a dispatch of September 19, 1890, I enclosed you a letter from Singer & Com- pany which clearly stated that the higher discounts allowed in the foreign trade were made necessary hy the tariffs of foreign coun- tries. I was informed up to the date of that dispatch that the discount allowed in the American trade was the same as that to the trade of all foreign countries, and now discover that in cycles there is a higher discount of ten per cent allowed in the United States trade than that of other countries, AND THAT THTS IS BE- CAUSE OUR TARIFF ON CYCLES IS HIGHER THAN THAT OF OTHER COUNTRIES." In a communication to the State Department dated September 16, 1890, Mr. Jarrett also says: "I desire briefly to call your attention to another singular fact. The prices charged in the export trade, are, as a rule, in nearly all trades,' less than the prices charged in the domestic trade. I enclose you a letter I have received from Singer & Com- pany, of Coventry, which, you will observe, is marked 'confiden- tial.' It is altogether impossible to get reliable information of this character in any other way. Singer & Co. are large manufac- turers' of cycles, etc., and have a house in Boston to which they make consignments of their manufactures. I have letters from other cycle manufacturers who also cite the fact that their dis- counts in the foreign trade are higher than those in the domestic trade." The letters referred to by Mr. Jarrett in which the manu- facturing company states that its export rates are less than those charged in the domestic market are as follows: 22 ' Hi I AMI I . i ( 'oiiii.lrntial.) CONTRACJTORS TO THE BRITISH GOVERNMENT. SINGER & CO Cycle Manufacturers. London 17 Holborn Viaduct. August 16, 1890. Dear Sir: In reply to your Inquiry of the 13th Inst., we beg to say that we do not now is'sue any trade list, but we charge our agents special account prices which vary according to the number of machines purchased. These prices represent discounts varying from 25 per cent to 45 per cent, the latter being export discount only. Export discounts are larger than those we allow at home, as in nearly every country In Europe there is a considerable duty on cycles' and we have to help our agents in this way. We believe our Mr. Stringer explained this to you personally on his last visit to the consulate. Yours' faithfully, SINGER & CO. JOHN JARRETT, ESQ.., United State Consulate, Birmingham." "(Memorandum from Starley Brothers, Coventry.) [ENCLOSURE 3.] JOHN JARRETT, ESQ., United States Consul, Birmingham. March 20th, 1891. Dear Sir: We have much pleasure in enclosing two copies of our price list as requested by your letter of the 18th inst. The lists are printed for distribution by our agents and others, among private individuals, and are subject to discounts ranging from 60 per cent downwards, but to large buyers our prices are, quoted net and are the subject, of special arrangement. We would direct your attention to the fact that these lists' are prepared for the English trade. Our American trade is done through one firm only, and as a considerable portion of our whole trade is done through this Arm, and the machines are different from the English ma- chines, our prices are low and the subject of a special arrangement every year. Yours faithfully, • STARLEY BROTHERS, fr. C. Bradham." DEMOCRATIC PRESS ADMITS MATTER UNIMPORTANT. The New York Evening Post, in its issue of July 21, 1904, dis- cussing the English proposition to protect the home manufacturer against "dumping" by a protective tariff, says editorially: In earlier days it went by the fairer name of "inundation," or the "threatened flooding" of the markets of a new country by the un- scrupulous producers of the Old World. Defined with precision, it means' simply the sale of goods in a foreign market either at an absolute loss, or at a markedly lower figure than is obtained in the home market of the dumping manufacturer. Now this so-called dumping process may take two forms. It may be done at an in- itial loss, in order to advertise wares, or possibly to drive out small competitors; or it may be practiced in order to clear the home mar- ket of a surplus and thus maintain monopoly prices in the home market. It is not necessary to go abroad to find the first kind of dumping. Every grocer who sells sugar below cost, in order to make custom for his other wares, is a dumper. Where this prac- tice in England is resorted to once by a foreign producer, it is practiced by Englishman against Englishman a hundred times. Moreover, it involves a certain initial loss', and a doubtful future gain. No tariff can protect against it, nor has the success of this kind of underbidding proved so frequent as to warrant any attempt to prohibit it by law, even if such an attempt were likely to suc- ceed. The New York Journal of Commerce, Democratic, a leading financial and commercial publication, discussing the same subject, says in its issue of July 22, 1904: "However it may be in Germany, there is not here any organ- ized system" for regulating that trade and "dumping" a surplus "irrespective of cost." This "dumping" is the chief bugbear of the British tariff reformers, but it cannot be carried on on any considerable scale or for any length of time to the advantage of the "dumping" country. Exporting at a loss, to be made up by high cost to domestic consumers', cannot be a lasting policy, for it is a losing one for the country that indulges in it; and while it may at times cause disturbance in a single industry in the country where the surplus is sacrificed, it cannot permanently injure that country's trade. THE CUSTOM A COMMON ONE WITH EUROPEAN MANUFACTURERS. Hon. Richard Guenther, United States Consul-General at Frankfort-on-the-Main, Germany, in a report to the State Depart- ment in June, 1904, says : "The manager of the carbon works of the General Lighting Company writes to the Daily Mail in refer- ence to the proposal of a German firm to establish in England large works for the manufacture of carbons for electric arc lamps. That the English factory at Witton, near Birmingham, has for the THE TARIFF. % 28 last two years turned out carbons for the government, municipali- ties, and other users of a quality and at prices which compete with German manufacturers. The amount of 'dumping' with a view to killing the carbon industry in this country would, he adds, astonish the most inveterate free importer. Foreign manufac- turers sell at something like 40 per cent cheaper than in their own country." Sales of Steel Ralls Abroad at Less Than Home Prices. Much complaint has been made by the Democrats of the fact that in certain instances steel rails have been sold in foreign markets, especially in Mexico and Canada, at $22 per ton, against a uniform price of $28 per ton charged in the United States by the steel rail manufacturers of the country. Curiously this com- plaint has come from the Democratic politicians and not from the railroads, the sole purchasers of steel rails. This fact, that the railroads are making no complaint, justifies a careful examin- ation of the question as to whether they are being required to pay excessive prices at home, or whether, on the other hand, the sales abroad are^ being made at cost or below cost for purposes satisfactory to the manufacturers who are making those sales. The question of whether prices demanded by agreement among steel manufacturers in the United States are excessive, might be answered by an elaborate analysis of the cost of producing steel i-ails and the percentage of profit which manufacturers ought to make on their products ; but this elaborate and complicated method of. determining the question of whether the manufacturers are obtaining excessive profits is not necessary. There is a much nore simple and practical method of determining it. No class of business men in the United States are more acute, more thor- oughly posted on the cost of producing the materials which they must constantly buy than the railway managers of the coun- try, and no class of men are better able to command the necessary money with which to establish factories for the manufacture of those materials in case they felt it to be to their advantage to nanufacture for themselves instead of buying them at the prices demanded by the present manufacturers. It will be # conceded by everybody that the railway managers of the United States number among their ranks the most acute and able business men and financiers of the country. They, of all men in the United States, would be most likely to know whether they were being im- posed upon in the prices demanded of them by manufacturers of the article for which they pay such enormous sums of money every year. The railroads pay to steel rail manufacturers fully 75 million dollars a year for steel rails, and they, with their keen instinct and unlimited facilities, can easily know, and certainly do know whether the prices charged are excessive. What would be easier than for them to establish steel rail works of their own, aDd what would they be more certain to do than this if they were being charged excessive prices? They can command unlimited capital. There is no class of business men in the United States who could more readily raise a million, ten mil- lions, a hundred million dollars, or even a greater sum with which to establish steel rail manufacturing plants to supply them- selves with this material for which they are now paying to the manufacturers 75 million dollars a year. What would be more natural than that they should establish steel-rail plants if they felt that they were being imposed upon in the prices now charged? The very fact that these trained and acute business men, with their knowledge of the cost of the article for which they are paying such large sums of money, and with their facilities for obtaining unlimited capital with which to establish works of their own, do not establish such works, but go on quietly and uncomplainingly paying for steel rails this price of $28 per ton to the manufac- turers of the country is sufficient evidence that they do not con- sider the prices charged them excessive, and that those prices are not excessive. Another fact worthy of note in this connection is that the steel-rail manufacturers made no advance in prices during the period of great demand and general high prices for iron and steel, from 1900 to 1903, though prices of all other grades of iron and steel greatly advanced meantime. . 24 THE TARIFF. REASONS FOR FOREIGN OUT. This brings us to the question of, or reasons for, the sales abroad at j trices less than those charged at home. These reasons are easily found. First, the American manufacturers who desire to sell their rails in Mexico, for example, must do so in direct and full competition with the steel rail manufacturers of Europe. The cheaper labor of European countries enables the manufacturers there to produce rails at a much lower cost than they can be made here, and the fact that foreign rails can be transported most of the distance by water, while those from our own great manufacturing establishments must be transported to Mexico a large part of the distance at least by land, places European manu- facturers at least on equal footing with those of the United States in the Mexican markets. And it is also well known that the manufacturers of European countries make their foreign prices below those which they charge in the home markets for the pur- pose of building up markets in those countries. This plan of opera- tion on the part of European manufacturers in placing their rails in Mexico brings to the lowest point the prices with which Ameri- can steel rails must compete in that market. If therefore the steel rail manufacturers of the United States desire to establish a market in Mexico they must put their prices at a point at which they can compete with the rates named by other countries, else they will make no sales and establish no market, but will abandon to European manufacturers a market in a country just alongside of the United States. In addition to this, steel works are being established in Mexico, where rates of wages are extremely low and the prices at which rails will be turned out when this ii dustry is further developed will be very low, hence the impoi ance of retaining control of that market even at low rates of profit Thus the steel-rail manufacturers of the United States, if they desire to sell their products in Mexico at all, must do so at a price which will compete with European manufactures and Mexican manufacturers and with the. cheap labor of both coul- tries. Still another condition with which American manufacturers must conTpete in Canada is the fact that the Canadian govern ment is now paying a bounty to the steel manufacturers of that country, and this supplies another form of competition which the American manufacturer must meet if he attempts to sell his steel rails in Canada. Thus the American steel-rail manufacturer, if he desires to establish a market for his product in Mexico, must compete with the cheap labor of Europe and the still cheaper labor of Mexico ; and if he desires to sell his product in Canada he must com- pete with the cheap labor of Europe, plus the bounty paid to domestic manufacturers by the Canadian government. Unless he does make his prices to meet those conditions in the two coun- tries lying alongside of the United States he must abandon the hope of ever establishing in those countries a market for any of his products. Under these conditions it is not surprising that he should find it good business policy to temporarily relinquish his profits for the sake of establishing or holding markets in coun- tries at his very door, and also that he should at times dispose of his surplus stock in those markets at cost or even less, for the sake of keeping his works running and his workmen employed, rather than to reduce his working force and permit his machinery to de- teriorate by so reducing his product as to make it only equal to the home demand. To put it in a single sentence: It is apparent, first, that the prices charged in the home markets are not excessive, else the railroads would establish their own works for the manufacture of rails ; and, second, that if American manufacturers are to sell their rails abroad they must put them at a price at which they can meet European competition and cheap labor competition in Mexico, and at which they can also meet European competition, plus domestic bounties in Canada. In general terms it may be said that the sales abroad of steel rails and of other classes of iron and steel at less than domestic prices are exceptional and only made under exceptional condi- tions, either .for the purpose of gaining new trade, just as is done thousands of times every year in many lines of trade at home, THE TABTFF. 25 or for the purpose of disposing of surplus stock and thus keeping irills running at fuil rates and giving full employment to labor a|id the low prices of product which full working capacity ren- ders possible. [ On this subject Mr. James M. Swank, general manager of tie American Iron and Steel Association, a high authority, the accuracy of whose statements is never called* in question, in a letter to Hon. John Dalzell in February, 1902, made the following statement: • / "With regard to the prices at which our iron and steel products have been sold abroad it can be said with entire frankness that, \rhile there have been some sales made at lower prices than have been charged to domestic consumers, the large majority of the sales have been made at the same prices' as have been obtained at home or at even higher prices. When lower prices have been charged the inducement to do this has been to dispose of a sur- plus, as during the yea"rs of depression following the panic of 1893 or during the reactionary year 1900, or to secure entrance into a desirable foreign market, or to retain a foothold in a foreign mar- ket that has already yielded profitable returns. These reasons for the occasional cutting of prices require no defense. They are akin to the reasons which daily govern sales of manufactured and all other products in domestic markets. "Even in years of prosperity it sometimes happens that a roll- ing mill or steel works, when running to its full capacity, produces a surplus of its' products beyond the immediate wants of its custo- mers or of the general market. If this surplus can be sold abroad, even at prices below current quotations, it is better to do this than to reduce production by stopping the rolling mill or steel works for a few days' or even for one day. The men would not only lose their wages during the stoppage but the manufacturers would lose in many ways. As one incident of the stoppage the home con- sumers of their products could not be supplied so cheaply as when the plants are running full. A moment's' reflection will convince any candid man that the manufacturing establishment that is not kept constantly employed, whether it produces iron and steel, or cotton goods, or woolen goods, or pottery, or glassware, or any other articles, can not be operated so economically for its owners' or so beneficially for its customers as the establishment that is kept running six days in the week and every week in the year. "It should also be remembered that our tariff legislation for at least a generation has encouraged our manufacturers to seek foreign markets by remitting nearly all of the duties levied on im- ported raw materials when these raw materials enter into the manufacture of exported finished products. Under the operation of this drawback system our iron and steel manufacturers have been able to manufacture their products intended for foreign mar- kets at a much lower cost than they could supply similar products to home consumers. The London Engineering for January 17, this year, says of this drawback system: 'A certain amount of trade is brought into the country that would otherwise be missed and no one loses anything.' It might have added that the raw materials we import and subsequently export in the form of finished prod- ucts furnish employment to thousands of American workmen." 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 pro- tective 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 countries not having a protective tariff and offering in the world's markets the same class of goods as those offered by the protection country. The United States Bureau of Statistics has recently published a Sta- tistical Abstract of the World, which gives the exports of do- mestic products by each of the principal countries 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 nonprotected country — the United Kingdom. The two most strongly marked examples of protec- tive tariff countries are Germany and the United States, and the chief 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 chief competitors for the great markets of the world and the only- countries of the world whose annual exports reach or pass the billion dollar line, each of these countries exporting annually more than one billion dollars' worth of merchandise, while no other country of the world 26 THE TARIFF. has ever exported so much as one billion dollars' value of domestic products in a single year. Let us see, then, what the effect of pre- tention has beep upon sales abroad by the United States aid Germany, the world's most conspicuous examples of protectiv- tarilT countries, as compared with the effect of free trade upai exports from the United Kingdom, the world's most marked ex- ample of low-tariff countries. The Statistical Abstract, above re- ferred to, compiled from the official figures of the countries to question and issued by the Bureau of Statistics, shows that the exports of domestic products from free-trade United Kingdom grew from 1,085 million dollars in 1880 to 1,380 millions in 1902, an increase of 28 per cent; while those from protection Ger- many grew from 688 millions in 1880 to 1,113 millions in 1902, an increase of 62 per cent; and those from protection United States grew from 824 millions in 1880 to 1,355 millions in 1902, an increase of 64 per cent. In other words, exports from the world's greatest example of free trade — the United Kingdom — increased 28 per cent in 22 years ; those from protection Germany increased 62 per cent, and those from protection United States in- creased 64 per cent in the same period. This certainly does not justify the assertion that other countries discriminate against and reject the merchandise of the country having protective tariff laws and favor that of countries having free trade. While of course the general law of supply and demand in- fluences in a greater or les^ 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 operation 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 export trade of the United" Stages. The only protective tariffs which 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 1897-1903, making the total of the period covered by protective tariffs 58 years, against 57 years of low tariff, counting the forma- tive period from 1790 to 1812 as low tariff. Thus the history 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 — 58 years of protection and 57 years of low tariff. During the 57 years of low tariff the imports ei ceeded the exports by $514,954,931 ; during the 58 years of pr* tective tariffs the exports exceeded the imports by $4,099,026,861. These statements are compiled from official reports of the United States Bureau of Statistics, and their accuracy can not be called into question. During 57 years of low tariffs imports ex- ceeded exports by 514 million dollars ; during 58 years of pro- tection exports exceeded imports by 4,099 millions. Does this look as though protective tariffs had the effect of reducing or de- stroying the export trade? To sum up these official statements of exportation under low tariffs and protective tariffs — the statements being in every case from the official' records of the country in question — it may be said that exports from the United Kingdom under free trade in- creased 28 per cent from 1880 to 1902; while those from Ger- many and the United^ States, under protection, increased 62 per cent and 64 per cent, respectively, in the same period, and that in the history of the United States, under the present form of government, 57 years of free trade gave an excess of imports over exports amounting to 514 million dollars, and 58 years of pro- tection gave an excess of exports over imports amounting to 4,099 million dollars. This is the practical test, the "proof of the pudd- ing in the eating," and should put an end forever to the assertion that protection destroys or injures the foreign markets of the country adopting it. Of the 57 years of low tariff, 47 show an 1 THE TARIFF. 27 etcess of imports over exports, while of the 58 years of protective tariff, 33 show an excess of exports over imports. A table printed on page 62, compiled from the official reports of the Treasury Department and the Department of Commerce and Labor, shows t^e years in which low and protective tariffs, respectively, were in operation, and the excess of imports or exports in each year, also the total excess of exports under low and protective tariffs, respectively. Ia There Danger of European Combinations Against the United States on Account 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 of our products from their markets. This assertion has been made over and over again for years, but more especially in comparatively recent years. But such action seems highly improbable, for the following reasons: 1. The countries in which these 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 markets if the supply from the world's largest producer were cut off. 3. The exclusion of these necessary products from the United States would necessitate their importation from other countries, and by re- ducing the supplies in these other countries would make markets for our products in those countries drawn upon or in other coun- tries from which they had been accustomed to draw their sup- plies. 4. Experiments of this kind for the exclusion 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 bitterly of the tariff of the United States have steadily and rapidly increased their impor- tations of our products meantime. 6. During the very period in which the talk of exclusion from European cqgnt^ajgs^f Amer- ican manufactures have been made, our exports of manufactures 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, wheat, corn, meats, and other forms of provisions — as well as of manufactures. 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 countries; and ; two- fifths of the meats which enter into international commerce. The European countries, with possibly one or two exceptions, 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 worfa's principal source of these various articles must be to increase in their home mar- kets the prices of those articles. If through concerted action by these countries three-fourths of the world's supply of cotton (pro- 28 THE TARIFF. I duced in the United States) were excluded from tbeir markets naturally tho price for the remaining one-fourth of the world's cotton, wherever produced, would advance greatly, and this prn- ciple would apply in the exclusion of any <>f the great produces of which the United States exports a sufficiently large percentile 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. Imagine the effect upon prices of meats if 40 per cent of the world's available supply for the internatioiial trade were wiped out of existence. Note the effect upon the price of cotton due to a small shortage in the crop of the United States last year, and consider what would be the effect if all of the cotton supply of the United States— three-fourths of that which the world produces — were shut out of the markets demanding that cotton. Even if certain countries 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 countries, and the products of the United States would find her markets in those countries thus drawn upon or in the countries to which they had formerly furnished their surplus. The world's pro- duction of the requirements of man — cotton, corn, wheat, pro- visions — 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 mar- kets 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 pro- ducts 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 EXPERIMENTS 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 about twenty years ago certain of the European countries began the ex- clusion of certain classes of meats from the United States, charg- ing that they were dangerous to public health by reason of the presence of trachinaB in hogs, Texas fever and other diseases in cattle, and upon other but somewhat similar grounds. These rul- ings or legislation against American meats extended from country to country upon various pretexts during a series of 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 regulations 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 question. The total value of provisions and animals for food exported from the United States in 1880, the approximate date at which this adverse move- ment against provisions from the United States began, was 130 million dollars, and 235 millions in 1902, a growth of more than 100 million dollars in exports of provisions 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 at- tempt 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 excluded 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 pur- chases from this country. These protests, while not a joint action, and while relating in some cases to different features of THE TARIFF. 29 the act from those complained of by other protesting countries, were practically simultaneous, and as the passage of the act with- out 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 ex- cluding our products from their markets. 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 countries have increased.- Our exports to the 12 countries which protested against the act in question were in 1896 $618,688,000, and in 1903 $925,447,000, an increase of 50 per cent as compared with 1896, the year prior to that in which these protests were made. (See table of countries protesting against Dingley law, and exports to them, page 30.) Even in manufactures, of which the European countries are large producers, and against which they have most vigorously protested, our exports to those countries have steadily grown during the years in which threats of exclusion have been most frequently made. Expressions of hostility to manufactures from the United States and threats of legislation or rulings to bring about their exclusion have been most strongly marked during the short period since 1895. Yet in that period exports of manu- factures from the United States to Europe, the very section of the world from which these threats of exclusion came, have doubled, our total manufactures exported to Europe in 1896 being $96,- 961,020, and in 1902, $197,572,992, while those of the fiscal year 1904 exceed 200 million dollars. • 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. Our imports in 1903 were from Germany, $119,772,511; from France, $77,285,239; from Austria-Hungary, $10,569,929; from Belgium, $22,567,337; from Italy, $36,246,412; from the Netherlands, $22,- 868,978. What they buy of us are necessaries; what we buy of them 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 ad vance towards free trade the fewer weapons of defense we hold. Thus, both the logic of the situation and our actual experience with adverse legislation and threats of such legislation fail to justify the assertion that our products of any class are being ex- cluded or are likely to be excluded from the markets of other countries by reason of our protective tariff. TRADE OF THE UNITED STATES WITH COUNTRIES PROTESTING AGAINST THE DINGLEY TARIFF ACT. The table which follows shows the trade of the United States with each of the 12 countries which protested against the Ding- ley tariff act during its pendency in Congress in 1897. The figures cover the period from 1896, the year prior to the enact- ment of that law, to and including the fiscal year 1903. It will be seen that the exports to each of the countries have increased. This record is deemed important in its bearing upon the claim that other countries are likely to reduce their imports from the United States by reason of the protective tariff. In this case, 12 leading commercial countries of the world had almost simul- taneously protested against certain features of this act, not all of them against any single feature, but each of them had made a protest ; yet the act was passed in the original form without modification so far as related to the features referred to in the protests, and instead of a reduction in exports to those countries there, has been a steady increase in all cases, and the total expor- tation from 'the United States in 1903 to the 12 countries in ques- tion was $953,585,567. as against $618,687,429 in 1896, having thus increased $335,898,138, or 54 per cent, over the exports to those countries in 1896. 30 THE TARrFF. EctporU from the United States to the countries which protested against the Dingley tariff 1>M, showing Increase in ewporU after enactment of the law. Count ri.'s. Year ending June 30— 1896. 1897. 1898. 1899. United Kingdom $405,741,339 97.897.197 * 39,022.899 27,070.625 19,143,606 7,689.685 6,557,448 6,921.933 5.979.046 2.439,651 191,046 32.954 $483,270,398 125,246.088 » 51,045.011 33.071,555 21.502.423 13,255.478 10.194.857 11,924.933 6,384.984 4,023.011 110.763 70,871 $540,940,605 155.039,927 64.274,524 47,619,201 23.290,858 20,385,041 12,697,421 9,992,894 6,429,070 5,697,912 127,559 263,970 $511,778,705 Germany 155.772,179 Netherlands 79,305,998 Belgium 44.158,03:? Italy 25,034,940 Japan 17,264.688 Denmark 16,605, H2H 14,493 440 Argentina 9,563,510 Austria-Hungary 7.378,935 Greece 213.507 Switzerland. 267,732 Total to countries 618,687,429 760,099.827 886.159,527 881,837.495 Countries. Year ending June 30— 1900. 1901. 1902. 1903. United Kingdom $533,819,545 187.347,889 89,386,676 48,307,011 33,256,620 29,087,475 18,487,991 15,259,167 11.558.237 7,046,819 290,709 250,447 $631,177,157 191,780,427 84.356.318 49,389,259 34,473,189 19,000,640 16.175,235 10.405,834 11,537.668 7.222.650 291.538 255,360 $548,548,477 173,148,280 75.123,135 46,271.756 31,388,135 21,485,883 15.464,622 24,722,906 9,801,804 6,167.127 305,950 217,515 $524,262,656 Germany 193,841 636 Netherlands 78,245,419 Belgium 47 087 939 Italy 35,032 680 Japan 20.933 692 16 157 583 18 898 163 11.437,570 7.156.688 330,844 205 697 Austria-Hungary « Switzerland Total to countries 974.098.616 1.056.065.279 942.645.590 953.585.567 Protective Tariff as a Revenue Producer. In the matter of revenue the contrast between low and pro- tective tariffs 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 58 years of protective tariffs 44 of the total showed an excess of receipts over expendi- tures. Of the 14 years under protective tariffs in which the ex- penditures exceeded the revenues no less than nine were war periods, when, necessarily, expenditures exceeded 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. Excluding the war periods from consideration, it may be said that of the 55 years of peace, during which low tariffs were in operation, 20 years showed a deficit; while of the 49 years of peace, during which protective tariffs were in operation, only five showed a deficit. Considering the entire history of the country, under the Con- stitution, but excluding the war years, it may be said that the revenues of the Government during low tariff periods fell $33,- 143,242 below expenditures, while under protection, still exclud- ing the war years from consideration, the revenues exceeded the expenditures by the enormous sum of $2,122,189,005. To sum up in a single sentence the revenue records of low and protective tariffs, respectively, during years of peace, low tariffs showed a deficit in 20 out of the 55 peace years in which they were in operation, while protective tariffs showed a deficit in but 5 of the 49 peace years in which they were in operation, the low tariffs producing a total deficit during their entire 55 peace years of operation amounting to 33 million dollars, and the protective tariffs a surplus of 2,122 millions during the 49 years of peace in which they were in operation. "The proof of the pudding is in the eating." Fifty-five peace years of low tariff, THE TARIFF. , 31 deficit, 33 million dollars; forty-nine peace years of protection, surplus, 2,122 millions. (For table of revenues under low and protective tariffs, respectively, see page 59.) The Home Market. The object of a protective tariff is to conserve and develop the home market for the home producer. By this is meant not merely the home manufacturer, but the home producer of every class, because of the development of each domestic industry through the prosperity of other domestic industries. While pri- marily protection in the United States looks especially to the de- velopment of the manufacturing industry, that development of the manufacturing industry in turn develops other industries. To produce the enormous supplies of manufactures required by our own people — the farm, the forest, the mine, and even the fisheries are called upon for material to aid in this work. Not only are all of these branches of industry thus developed by the mere calls upon them for material for use in manufacturing, but the millions of men and women engaged in manufacturing and other dependent industries through their prosperity and employment at good wages have the means with which to purchase and pay for these products. The manufactures of the country require from the farmer cotton, wool, hides, flax, hemp, the grain which is manufactured into flour, meal, etc., and the numerous other arti- cles of lesser importance ; they require the products of the mine, coal, iron, copper, zinc, tin, lead, nickel, gold and silver ; and they require of the products of the forest large supplies. These industries — manufactures, mining and forestry — employ more than six million people and pay them wages amounting to three bil- lions of dollars annually, which they in turn expend for the pro- ducts of the farm, the fisheries, the mines and the factories. Thus, under protection, each industry, through its activities, stimulates other industries, while those other stimulated industries, through the prosperity of the persons engaged in them, in turn become consumers and purchasers, thus developing and stimulating the production and prosperity of every occupation and industry of the country. MUTUAL INTERDEPENDENCE THE KEYNOTE. The interdependence of the great industries of the country and the dependence of each for its prosperity upon the success and prosperity of the others can better be realized when it is stated that of the 2,389 million dollars' worth of raw materials used by the manufacturers of the United States in 1900, no less than 1,941 million dollars' worth was the product of agriculture, and only 156 million dollars' worth of this was imported. These figures are from the official statements of the United States cen- sus and the Bureau of Statistics. Thus, 75 per cent of the raw material used by the manufacturing industries of the country is drawn from our own farms, the remainder being products of the mines and forests and miscellaneous imports. These figures indicate the interdependence of the great industries of the coun- try and the relation of the prosperity and activity, one by one, to the prosperity and activity of the other. This interdependence is especially shown by the figures which indicate the use of agri- cultural products in the manufacturing industries of the coun- try. As already indicated, 75 per cent of the raw materials used by the manufacturers of the United States are products of our own agriculture. The total value of the farm products of the United States in 1900, according to the census of that year, was 3,764 million dollars, and the total value of agricultural products used in man- ufacturing was 1,940 millions. Of this 156 millions was im- ported and the remaining 1,785 million dollars' worth was drawn from our own farms. Thus, our own agricultural products used in the manufacturing establishments of the United States, ac- cording to the official figures of the census of 1900, actually amounted to more than one-half of the total value of the products of the farms' of the country in that year. When to this we add the enormous demands made upon the farmers for food supplies for the six million people employed by the manufacturers and in the other industries from which the manufacturers draw part of 32 THE TABIFP. their material, the importance to the farmer of the prosperity of the manufacturers can scarcely be over-estimated. Another class of consumers whose prosperity and therefore purchasing power depends greatly upon the activity of the manu- facturing interests is those engaged in transportation, while still another group is those engaged in trade. These two groups of people— those engaged in transportation and trade — numbered in 1900, according to the census of that year, 4,766,965 persons, or more than 16 per cent of those engaged in "gainful occupations" in that year. THE WELFABE OF EACH THE WELFARE OF ALL. The total number of persons engaged in "gainful occupations" in 1900, according to the census of that year, was 29,074,117. Of these, 10,381,765 were engaged in agriculture; 7,085,992 in manu- facturing and mechanical pursuits; and 4,766,964 in trade and transportation. Thus, of the 29 million people engaged in "gain- ful occupations" in the United States in 1900, 22 millions, or 76 per cent, of the total number, were engaged in agriculture, manufacturing, transportation and trade — all dependent for their activity upon the prosperity and activity of the manufacturing industries. On the other hand, the manufacturing industries were equally dependent for their success and for a home mar- ket for their products upon the prosperity of these three great groups engaged in agriculture, manufacturing, transportation, and trade. There remain in the census classification two other groups of people, viz, those engaged in domestic and personal services, 5,580,657, and those engaged in professional service, 1,258,739, and nobody can doubt that either of these great groups is equally dependent for its prosperity upon the prosperity of those engaged in agriculture, manufacturing, transportation, and trade, or that their prosperity as consumers is in turn important to the manu- facturer, the agriculturist, and those engaged in trade and trans- portation. Thus the interdependence of the people and industries of a great nation such* as the United States, with its enormous area equal to that of all Europe, and with its variety of climate, soil and products of field, forest, mine and factory, fully justifies the application of the protective principle, which insures prosperity and activity to that great industry of manufacturing, which in turn contributes so greatly to the activity and prosperity of all other industries. -The gross value of the manufactures of the United States in 1900 was 13 billions of dollars, against less than four billions for products of the farm, and one billion dollars, pro- ducts of the mine. The number of persons employed in manufac- turing was 5% millions, and the sum paid to them as wages and salaries 2% billions of dollars, or more in a single year than the entire amount of money in circulation in the United States todry. Practically all of this sum, together with most of the seven bil- lions of dollars expended for materials used by the manufacturers, was distributed among the people of the United States, chiefly to the farmers whose products formed over 80 per cent of the value of the materials used, and who also supplied the food consumed by these five million employees, and in addition profited by the in- creased activity resulting in the other industries of mining, for- estry, transportation, and trade. THE HOME MARKET THE GREATEST MARKET. These great facts — the aid which each industry proves to other industries in a country which supplies practically all of the re- quirements of man, whether in manufacturing or for food, cloth- ing, heat, and light — make the home market of the United States the greatest market of the world. That -this home market in the United States far exceeds that offered in any other part of the world was shown by the chief of the Bureau of Statistics, Mr. O. P. Austin, in an address at Rochester, N. Y., on January 7, 1904, in which he said : "The internal commerce of the United States was in 1900 20 billions of dollars. With this definite basis of 20 billions in 1900, and knowing what rapid development has occurred since that time, we may safely and conservatively put the internal commerce of the year 1903 at 22 billions of dollars, a sum which actually equaled the entire international commerce of the world in that THE TARIFF. 33 year. Think of it, you producers and manufacturers, and merch- ants and traders and bankers and transporters, think of it! The market of our own country — the home market in which you can transport your goods from the door of the factory to the door of the consumer without breaking bulk a single time — is equal to the entire international commerce of the world." This is the measure of the home market, of its value, and of its importance to every class of citizens, and indicates the im- portance of maintaining the system under which it has been de- veloped. Mr. Austin, in his remarks above quoted, showed also that this same home market had grown from only seven billions of dollars in 1870 to 22 billions in 1903, basing his estimate in both cases upon the figures of the United States census, having thus trebled in 33 years, while the international commerce of the world had only doubled during that same period of 33 years. Thus not only is the home market of the United States equal to the com- bined imports and exports of the world, but its growth is much more rapid than that of the markets offered in other countries. Labor and Protective Tariff. The importance to labor of the protective system and the activi- ties which develop under it can scarcely be overestimated. Of the 29 million people engaged in "gainful occupations" in 1900, 7 millions are directly dependent upon manufacturing and mechan- ical industries, and 4% millions upon trade and transportation, which are so closely associated with and affected by the activities of manufacturing. Practically one-half of the products of agricul- ture are, as indicated by the census, consumed by the manufactur- ing industries. Hence a large proportion of the 10 million persons engaged in agricultural pursuits are dependent for their prosperity upon the activities of the manufacturing industries, to say noth- of the 6^ millions engaged in professional, domestic, and personal service, whose employment must depend largely upon general prosperity in manufacturing and allied industries. It is not mere- ly the 2% billions of dollars paid as wages and salaries to the employees of the manufacturing establishments of the country, but the earnings of more than half of those engaged in "gainful occupations" which are affected by and dependent upon the pros- perity of the manufactures. BANK DEPOSITS. That labor has been prosperous under the improved condi- tions in the manufacturing industries since the enactment of the Dingley tariff law is evidenced by the fact that deposits in sav- ings banks alone, those depositories of the working people, widows, and orphans of the United States, grevv from 1,907 million dol- lars in 1896, the last year under the low tariff, to 2,935 millions in 1903, an increase of over 50 per cent. During the period in which low tariff was in existence or threatening the industries of the country — 1892 to 1897 — savings banks deposits increased but 154 million dollars; since 1897 savings bank deposits have in- creased under a protective tariff 99G million dollars — the increase under Democratic low tariff being less than 40 million dollars per annum, and under Republican protective tariff, 166 million dollars per annum. Another evidence of prosperity among the masses is found in the amount of life insurance policies in force in the United States. Life insurance is another form of savings, and in the aggregate of its outstanding policies is to be found an equally important index of the prosperity of the people of the United States. During the period of threatened or actual Democratic low tariff, from 1893 to 1897, the value of life insurance policies in the United States increased from 5,291 million dollars in 1893 to 6,326 millions in 1897, or an average of only 259 millions per annum. Since that time the increase under a Republican pro- tective tariff has been from 6,326 millions in 1897 to 10,508 millions in 1902, or at the rate of 836 millions per annum. Thus the value of life insurance policies in the United States increased in the four-year period of threatened or actual low tariff but 1,035 mil- lions, or 259 millions per annum, while from 1897 to 1902 the in- crease has been 4,182 millions, or 836 millions per annum, the rate of increase under a Republican protective tariff being more than three times as great as the annual rate of increase under Demo- cratic low tariff. I Ml 1 \HQ-t . INDUSTRIAL INSURANCE. It may be objected that life insurance includes among Its patrons men oi' wealth, and this is true; though they form but a small proportion, of course, of the total. But it will be admitted that this is not true of the industrial insurance associations, Which collect their premiums in small weekly sums, and certainly their prosperity and activity may be accepted as a measure of the actual prosperity of the working men of the country or of those dependent upon the prosperity of the great in- dustries. The statistics of industrial insurance in force in the United States, as published by the Bureau of Statistics, and sup- plied by that distinguished insurance statistician, Mr. Frederick L. Hoffman, show the amount of policies of industrial insurance in force in the United States, in 1893, at $662,030,129; in 1897. $996,139,424, and in 1902 at $1,806,890,804. Thus during the period of threatened or actual low tariff the amount of industrial insurance in force increased by 334 millions, while since that time, i<( r the standard of living and affect the wage-earning power of the American workman" See letter on page 50. The l'.ritish Blue Book, entitled "Memoranda of Statistical Tables; etc., of the Board of Trade with Reference to British and Foreign Trade and Industrial Conditions," in a table prepared with the purpose of showing industrial conditions in the United King- dom, United States, and other countries, gives the current rates of wages in the great cities for a few of the leading trades in the United States and United Kingdom, respectively, as follows: Carpenters, United Kingdom, $10.05, United States, $24.00; com- positors, United Kingdom, $9.65, United States, $19.25; fitters, United Kingdom, $9.65, United States, $15.20. The London Telegraph, discussing these figures of wages and cost of living in the two countries, puts the average weekly in- come per family of approximately equal earnings relatively to the standard of wages in the United Kingdom and the United States as follows: In the United Kingdom $7.83, in the United States $11.30; the total expenditure, including rent and clothing, in the United Kingdom $7.56, in the United States $10.50; and the weekly surplus, in the United Kingdom 27 cents ; and in the United States 80 cents — the surplus of earnings over necessary expendi- tures therefore being three times as great in the United States as for like occupations in the United Kingdom. The above state- ments, from British authority, that American workingmen can save more from their earnings than can those in free-trade Eng- land is fully sustained by the savings banks statistics of the two countries, which show that in the latest years for which figures are available the deposits in savings banks in the United Kingdom amounted to 959 million dollars, or $22.86 per capita, and in the United States to 2,935 millions, or $36.52 per capita. A further indication of the relative effect of protection or low tariff upon the actual savings of the workingmen as evi- denced by savings banks deposits is found in the fact that savings banks deposits in the United States during the period of threatened or actual low tariff (1893-97), increased but 154 million dollars, or but 9 per cent ; while from 1897 to 1903, under protection, the in- crease was 996 million dollars, or 51 per cent. (For savings banks tables see page 107. ) Tin Plate in the United States. An illustration of the advantage to labor which comes through the establishment and maintenance of protection to domestic in- dustries is found in the history of tin-plate manufacturing in the United States. In 1890 there were no tin-plate factories in the United States. The McKinley tariff act placed a heavy duty on tin plate, with the distinct purpose of creating a tin-plate in- dustry. The result has been the creation of tin-plate establish- ments which in 1900 employed 15,552 wage earners and paid them salaries and wages amounting to $11,106,078 in that year. While the figures of men employed and wages paid are only available for the census year 1900, the figures of tin-plate production are available for each year from that following the passage of the McKinley act down to the present time. A comparison of these figures of production year by year with those of the year 1900, in which the wages paid amounted to $11,106,078, fully justifies the assertion that the wages paid to American workmen in the tin-plate factories of the United States since the enactment of the McKinley law amount to $100,000,000, while their consumption of material for manufacturing has aggregated 200 millions. Mean- while the cost of tin plate to the consumer in the United States has been greatly reduced, despite the maintenance of the high tariff. The average price paid for tin plates in the New York markets in 1890 was $5.15 per box of 100 pounds, while in April, 1904, the price in the same market was but $3.65. Thus, as a net result of the protective tariff on tin plate a market has been made for 200 million dollars' worth of domestic products, the workingmen of the country have been paid 100 millions in wages and the cost of tin plate to the consumer has been reduced 29 per cent. See detailed discussion of tin plate industry, page 84. THE TABIFB^i 87 Are the Rich Growing Richer and the Poor Poorer? The frequent assertion that the protective tariff is especially in the interests of the manufacturers and capitalists, and that under it "the rich grow richer and the poor poorer" may be an- swered in a word by some of the figures which have already been quoted. While it is doubtless a fact that the manufacturers and capitalists are prosperous, it is equally true that the workingmen are prosperous and that the share of labor in the general pros- perity of the country is steadily increasing. No more accurate evidence of the prosperity of the workingman can be found than the figures of deposits in savings banks and industrial life in- surance. The statistics of deposits in savings banks show that the total deposits in 1880 were 819 million dollars ; in 1890, 1,525 millions, and in 1903, 2,035 millions. Thus, in 1903, the deposits in savings banks are over SV 2 times as much as in 1880 and nearly twice as much as in 1890. Industrial life insurance policies in force in the United States amounted in 1880 to 20 million dollars value ; and in 1890, to 429 millions ; and in 1902, to 1,806 millions. Thus the amount of industrial insurance outstanding in 1902 was 90 times as much as in 1880, and over four times as much as in 1890. Now let us compare these savings of the workingmen — this growth in their accumulated wealth — with the general growth of wealth in the United States. The census puts the wealth of the United States in 1880 at 42 billion dollars ; in 1890, at 65 billions : and experts estimate it at the present time as being fully 100 billions, the total for 1904 being, therefore, about 2% times as great as in 1880, and 50 per cent, in excess of that of 1890. De- posits in savings banks, as already shown, are today Sy 2 times as much as in 1880 and nearly twice as much as in 1890; and the value of industrial life insurance policies in force at the present time is 90 times as much as in 1880, and four times as much as in 1890. This seems to justify the conclusion that the accumulations of the masses, the patrons of savings banks and in- dustrial life insurance associations, are proportionately much more rapid than the general growth of wealth, and that they are, therefore, steadily increasing their share in the general prosperity and the general accumulations of wealth. Growth of National Wealth Under Protection and Free Trade. That national wealth and therefore general prosperity is cre- ated more rapidly under protection than under free trade is illustrated by a comparison of the figures of wealth in free-trade United Kingdom and protected Germany and the United States, respectively, in 1870 and 1903. These statements of national wealth at the dates named are, in the case of the United States, those of our own census, while in the case of the United Kingdom and Germany they are based upon careful estimates by the most eminent statisticians and economists of the world, among the number being Sir Robert Giffen, Yves Guyot, Michael Mulhall, and Professor Soetbeer. They show that from 1870 to 1903 the wealth of the United Kingdom, under continuous free trade, increased 66 per cent. ; that of Germany, with protec- tion during a large part of the period, 95 per cent., and that of the United States, with continuous protection except during the period 1894-97, 233 per cent. Thus, growth in domestic wealth is not only the logical result of protection, but has proved the actual result in its practical operation. The nation which excludes such pro- ducts of other countries as her own people can produce not only prevents the sending of wealth out of the country to purchase those products but stimulates her own people to produce them from the elements which nature supplies — the products of the soil, the forest, and the mine. The larger the country, the greater the variety of its natural products which can be turned into manu- factures, and the larger the population to create a home market, the more rapid the increase of wealth. The United States pro- duces 43 per cent of the world's pig iron, 50 per cent of its copper, 80 per cent, of its cotton, and has 40 per cent, of the world's railways and the world's cheapest transportation with which to assemble those products, and one-third of the world's coal for use in turning them into manufactured form. To ab- sorb these products it has practically the exclusive control of a home market amounting to 22 billions of dollars per annum, or ;jk i in; takim'. twice the amount of the Imports of all nations of the world aside from the United States. The total imports of all nations of the world, aside from the United States, according to the Bureau of Statistics, are, in round terms, 11 billion dollars per annum; while the value of the merchandise consumed in the home market in a single year is, according to an estimate of the chief of that Bureau, based upon census figure*, 22 billions' of dollars, or exactly twice the total annual imports of all nations other than the United States. It is/ through the production from natural sources — the soil, the forest, and the mine — and its transformation by labor into this 22 billion dollars' worth of merchandise an- nually consumed in our home markets that this enormous national wealth of 100 billion dollars has been created. In 33 years, just one-third of a century, there has been added to the wealth of the United States 70 billions of dollars, while during that same period free-trade United Kingdom has added to her wealth but 24 billions of dollars. The following table shows the wealth of the United Kingdom. Germany, and in the United States in 1870 and 1903, as estimated by leading statisticians and economists of the world, and the per- centage of increase from 1870 to 1903: Countries. National Wealth . (in billions of dollars.) Percentage of 1870. 1903. United Kingdom 36 21 30 60 41 100 66.7 95.2 United States 233.8 In savings bank deposits alone, which illustrate the pros- perity of the working people, the increase in the United Kingdom was from 265 million dollars in 1870 to 959 millions in 1903 ; an increase of 694 million dollars ; in the United States the increase was from 550 million dollars in 1870 to 2,935 millions in 1903, an increase of 2,385 millions. The increase in savings bank de- posits from 1870 to 1903 was more than three times as great in the United States as in the United Kingdom. Relative Growth of Manufactures Under Protection and Free Trade. The fact that prosperity of the manufacturer insures prosperity of all other classes, as indicated by the figures already given showing the great contributions of the manufacturing industries to all other classes of occupations, justifies an inquiry as to the relative growth of manufacturing under protection and free trade. The two marked examples of protection are the United States and Germany, and the one marked example of free trade is the United Kingdom. That distinguished English statistician, the late Michael G. Mulhall, shortly before his death made a careful analysis and comparison of the manufacturing industries of these three coun- tries, at certain periods sufficiently distant to determine the rela- tive growth of the manufacturing industries in those countries. He found that the value of the manufactures produced in free- trade United Kingdom was, in 1860, 2,808 million dollars, and in 1894, 4,263 millions, having thus increased during that period 1,455 million dollars, or but 51 per cent. In Germany, which adopted protection in 1879, and was thus a protection country during about half of the period covered by these figures, the value of manufac- tures grew from 1,995 million dollars in 1860 to 3,557 millions in 1894, an increase of 1,562 millions, or 78 per cent. In the United States, which adopted protection in 1861 and was a protection country during all of the period covered by Mr. Mulhall's figures, the value of manufactures grew from 1,907 million dollars in 1860 to 9,498 millions in 1894, an increase of 7,591 millions, or 396 per cent. To sum up in a single sentence, this study of the relative growth of manufactures, it may be said that in the period from 1860 to 1894 free-trade England increased her manufactures 1,455 million dollars ; Germany, which had protection during about half of that period, increased her manufactures 1,562 millions ; and the United States, which had protection during all of that period, in- creased her manufactures 7,591 millions; while the percentage of THE TARIFF. 39 growth in the period from 1860 to 1894 was, for the United King- dom, 51 per cent; Germany, ?8 per cent, and the United States, 396 per cent PIG IBON AND COAL. Some details of the growth of manufacturing industries may be worthy of a moment's consideration. Pig iron is generally con- sidered the best barometer of manufacturing and industrial activ- ity and prosperity. Taking again the three countries already named, free-trade England, protection Germany, and the United States, the production of pig iron in the United Kingdom grew from 3,830,000 tons in I860 to 8,680,000 tons in 1902, an increase of 5,850,000 tons, or 153 per cent. ; Germany's production of pig iron grew from 530,000 tons in 1860 to 8,393,000 tons in 1902, an in- crease of 1,484 per cent ; and that of the United States grew from 820,000 tons in 1860 to 17,821,000 tons in 1902, or 2,073 per cent. Coal production and consumption is another evidence of manu- N facturing and business activity and prosperity. In this, as well as in iron and manufactures generally, the two protection countries — Germany and the United States — show a much more rapid in- crease than the United Kingdom. The coal consumption of the United Kingdom in 1875 was 114 million tons, and in 1902 166 million tons, an increase of 52 million tons, or 45.7 per cent. The coal consumption of Germany in 1875 was 41% million tons, and in 1902 149 million tons, am increase of 101 million tons, or 212 per cent. The coal consumption of the United States in 1875 was 47 million tons, and in 1902 266 million tons, an increase of 219 million tons, or 470 per cent. Attention is especially called to the fact that the figures here quoted are those of consumption, not of production. In the case of the United Kingdom production shows a much greater gain than that of consumption, since that country is a large exporter of coal, but even the figures of production do not compare in rapidity of growth with those of protected Germany or the United States. Coal production in the United Kingdom grew from 80 million tons in 1860 to 227 .million tons in 1902 ; that of Germany grew from 17 million tons in 1860 to 151 million tons in 1902 ; and that of the United States from 15 million tons in 1860 to 269 million tons in 1902. The Fight Against Free Trade in England. One of the most striking evidences of the relative effects of protection and free trade upon the manufacturing industry is found in the figures now being presented in England as arguments in favor of the abandonment of free trade and the adoption of pro- tection. Those arguments are based upon the statement that ex^ ports of manufactures from the protected countries have grown more rapidly than those from free-trade England, while imports of manufactures into free-trade England have increased much more rapidly than those into the protected countries. The figures quoted in support of this assertion are from an official publication of the British Government, a publication especially prepared for serious consideration in the proposition now before the English people, of a return to protection in order to strengthen the home manufacturing industry and to prevent its destruction by the in- troduction of manufactures from the protected countries of the world. These official statements issued by the British Govern- ment show that exports of manufactures from free-trade United Kingdom increased 8* per cent, from 1882 to 1902 ; those from pro- tected Germany 64 per cent., and those from protected United States 200 per cent. Equally striking is the fact that the United Kingdom, although a great manufacturing nation, finds her own markets being more and more invaded each year by the manufac- tures from protection countries, the importations of manufactures from the United States into the United Kingdom having grown from 10 million pounds sterling in 1890 to 21 millions in 1902; those from Germany, from 9 millions in 1890 to 16 millions in 1902 ; those from Belgium, from 12 millions in 1890 to 20 millions in 1902; those from France, from 25 million pounds sterling in 1890 to 31 millions in 1902. Meantime the exports of manufac- tures from the United Kingdom to the principal protected coun- tries—United States, Germany. Belgium, Netherlands, France. Russia, and Italy— fell from 83% million pounds sterling in 1890 40 THE TARIFF. to 70 millions in 1902, while to other countries and colonies they increased from 145 million pounds sU'Hing in 1890 to 157 millions in 1902. Thus to the principal protected countries England's ex- ports of manufacfures decreased V.\y 2 million pounds sterling from 1890 to 1902, and to the nonprotected countries they increased 12 million pounds sterling. Meantime her own imports of manufac- tures, unobstructed by protective tariffs, increased from 98 million pounds sterling in 1890 to 148 millions in 1902. To put it in a single sentence, free-trade England's exports of manufactures to protected countries fell off 13% million pounds sterling (65 million dollars) from 1890 to 1902, and those to other countries of the world increased 12 millions sterling (58 {pillion dollars), while in th« absence of protection her own imports of manufactured and partly manufactured goods increased 50 million pounds sterling (250 million dollars). Thus the principal protected countries of the world are now excluding from their markets 65 million dollars' * worth of manufactures which they formerly took from the United Kingdom and annually paying this sum to the workmen and man- ufacturers within their own borders, while free-trade England has during the same time, through the absence of a tariff, admitted to competition with her workmen the labor of other countries in the form of the 250 million dollars' worth of manufactured and partly manufactured goods which she is now importing in excess of that imported in 1890. It is because of this disaster to the labor and manufacturing interests of the United Kingdom, the loss of the home market as well as of the market in protected countries, that leading statesmen of that country are now openly and earnestly advocating a return to the protective system which all other lead- ing nations of the world have now adopted. IMPORTS AND EXPORTS OF MANUFACTURES BY THE UNITED KINGDOM. The following table presents the imports and exports of the United Kingdom by five-year periods, taking the annual average for each period from 1864 to 1902, the share which manufactures formed of the imports and exports, respectively, being shown. It will be seen that the percentage which manufactures form of im- ports grew from 14.9 per cent, for the period 1859-63 to 27.8 per cent, for the period 1899-1902, and that the share which manufac- tures form of exports fell from 91 per cent, in 1859-63 to 81.6 per cent in the four-year period, 1899-1902. Imports and Exports of the United Kingdom (merchandise only) Compared with the Imports and Exports of Manufactured or Partly Manufactured Goods, the Figures Stated Being in Each Case the Annual Average for the Five-Year Period Named. [From the British Blue Book.] Total imports of— Proportion Total exports of— Proportion of Annual of manufactured exports to to- tal exports. average for— Merchan- Manu- manufactures to total Merchan- Manu- dise. factures. imports. dise. factures. Million £. Million £. Million £. Million £. 1859-63 216.2 32.6 14.9 132.4 120.5 91.0 1864-68 282.2 46.3 16.4 175.0 161.5 92.3 1869-73 331.0 58,6 17.7 224.8 204.2 90.8 1874-78 376.4 75.4 20.0 211.2 • 189.3 89.6 1879-83 402.2 80.3 20.0 226.2 201.1 88.9 1884-88 372.2 84.6 22.7 223.0 196.9 88.3 1889-93 422.4 98.7 23.3 240.8 208.8 86.7 1894-98 437.8 115.1 26.2 229.8 197.0 85.7 1899-02 514.5 143.1 27.8 271.8 221.8 81.6 / The falling off in England's exports of manufactures occurs especially in her trade with the protected countrtes, as is illus- trated by the following table from the British Blue Boole showing the exports of British manufactured or partly manufactured goods to the principal protected foreign countries. It will be seen that exports of manufactures to the protected countries fell from an annual average of 101 million pounds sterling for the period 1870-74 to an average of 75 millions for the period 1900-1902. THE TABIFF. » 41 Total Exports of British Manufactured or Partly Manufactured Goods to the Principal Protected Foreign Countries. Average annual amount. Period. Pounds sterling. 1870-74 101,238,000 1875-79 75,979,000 1880-84 84,922,000 1885-89 77,300,000 1890-94 77,075,000 1895-99 74,100,000 1900-02 75,464,000 EXPOBTS AND IMPORTS OF MANUFACTURES, UNITED STATES AND UNITED KINGDOM. The table which follows, from the British Blue Book, shows the exportation of manufactures from free-trade United Kingdom and protected United States, respectively, at quinquennial periods from 1860 to 1900, and in 1902, stated in millions of pounds sterling for the United Kingdom and in millions of dollars for the United States. It will be seen that exports of manufactures from the United Kingdom increased from 124.9 million pounds sterling in 1860 to 227.6 millions in 1902, having thus less than doubled, while those from the United States increased from 40.3 million dol- lars in 1860 to 403.6 millions in 1902, being thus ten times as great in 1902 as in 1860. Exportation of manufactures from United Kingdom and United States, respectively, at quinquennial years, 1860 to 1902. [From official statistics of the respective governments ] From the United From the United Kingdom. States. Year. Millions sterling. Millions dollars. 1860 124.9 40.3 1865 153.1 59.0 1870 182.4 68.2 1875 201.2 92.6 1880 198.2 102.8 1885 188.1 147.1 ' 1890 228.4 151.1 1895 195.0 183.6 1900 224.7 433.8 1902 227.6 403.6 The table which follows, also from the British Blue Book, shows the importation of manufactures into free-trade United Kingdom and protected United States, respectively, at quinquennial years from 1860 to 1900, and in 1902, stated in millions of pounds sterling for the United Kingdom and in millions of dollars for the United States. It will be seen that imports of manufactures into the United Kingdom grew from 29.3 million pounds sterling in 1860 to 148.9 millions in 1902, while the importation of manufac- tures into the United States only grew from 212.3 million dollars in 1860 to 344.8 millions in 1902. Thus the importation of manu- factures into free-trade United Kingdom increased 400 per cent during the period in question, while those into protected United States increased only 64 per cent Importation of manufactures into United Kingdom and United States, respectively, at quinquennial years, 1860 to 1902. [From official statistics of the respective governments.] Into the United Tnto the United Kingdom. States. Tear. Millions sterling. Millions dollars. 1860 29.3 212.3 1865 43.5 111.3 1870 57.0 217.6 1875 72.7 245.8 1880 83.2 263.2 1885 83.4 * 259.0 1890 98.2 328.8 1895 107.7 301.9 1900 145.2 297.8 1902 ,, 148.9 344.8 42 I III IAKII I Meantime the domestic manufactures of the United Kingdom, subjected as they tlms Were t<> the enormous pressure from manu- facturers of other countries and the rapid growth in imports of foreign manufactures, grew, according to Mr. Mulhall, from 2,808 million dollars' value in 1860 to 4,263 millions in 1894, while those of the United States, under protection, grew, according to this same authority, from 1,1)07 millions in I860 to 0,408 millions in 1804. I Yon i 1860 to 1804, therefore. British manufactures, sub- jected to fierce competition with all other parts of the world, in- creased but 51 per cent, while those of protected United States increased 396 per cent. To sum up in a single sentence the con- trast between the prosperity of manufactures in free-trade United Kingdom and protected United States, during the period from 1860 to 1002 imports of manufactures into the United Kingdom in- creased 400 per cent., into the United States 64 per cent. ; exports of manufactures from the United Kingdom increased 51 per cent, those from the United States 000 per cent, while production of manufactures in the United Kingdom increased, from 1860 to 1894, 51 per cent, and in the United States 306 per cent. Importation of Raw Material for Manufacturing; Under the Wilson and Dingley Lawn, Respectively. One point worthy of special attention in a comparison of the work of the Wilson low tariff and the Dingley protective tariff acts is that the importation of raw material for use in manufac- turing has been very much greater under the Dingley than it was under the Wilson act. "Free raw materials" was the Democratic cry during their campaign and during the preparation of the tariff act; yet the demoralization of the home market which re- sulted from low tariff rates on manufactured articles so reduced the demand upon the manufacturers for finished goods that they had little occasion to use the free raw materials which the Wilson act gave them. The Dingley act also placed a very large propor- tion of the raw materials on the free list, levying, however, a duty on certain articles which come in competition' with those produced at home, especially wool and hides ; but in no case was this suffi- cient to prove embarrassing to the manufacturers, while the do- mestic industry was meantime stimulated. The Statistical Ab- stract of the United States shows that the value of articles in a crude condition which enter into the various processes of domestic industry imported in the years 1805, 1806 and 1807, in which the Wilson low tariff was in operation, aggregated $506,601,306, or an average of 100 millions per annum ; while the imports of this class of articles in the fiscal years 1001, 1002, and 1003 aggregated $082,842,401, or an average of 328 millions per annum. Thus the net result of the application of the two principles of free raw materials and low duties on manufactured articles on the part of the Democratic measure, and free raw materials and protective duties on manufactured goods under the Republican measure, is shown in the fact that the importation of raw material for use in manufacturing during the three years in which the Wilson law was in operation averaged 100 million dollars per annum, while in the last three years under the Dingley law the importation of raw material for use in manufacturing averaged 328 million dollars per annum. Despite the assertion of the Dem- ocrats that they were going to give to the manufacturers of the country free raw material, the disadvantages to the business com- munity of their low tariff rates which they coupled with it were so great that the manufacturers had little use for the free raw materials ; while under the protective measure which gave the manufacturers free raw materials in most of their required arti- cles and an enormous demand in the home market by reason of the protection to manufactures, the importation of raw material under the Dingley law in the last three years has been 65 per cent, in excess of that under the Wilson law in a like number of years. Under the Wilson law, with all of its boasted "free raw ma- terials" for the manufacturers of the country, articles in a crude condition for use in manufacturing averaged but 26 per cent, of the total imports; while under the Dingley law articles in a crude condition for use in manufacturing formed 31.8 per cent, of the THE TARIFF. 43 total imports in 1899 ; in 1901, 33V 2 per cent. ; in 1902, 36y 2 per cent, and in 1903, 38 per cent, of the total imports. This justifies the above assertion that the low tariff rates on manufactures which accompanied the free raw material of the Wilson law de- stroyed the home demand for those raw materials, while the pro- tective duty on' manufactures under the Dingley law so stimulated the home demand for manufactures that our manufacturing estab- lishments increased their share of the total importations from 26 per cent, under the Wilson act to 38 per cent, under the Dingley act. A table on page 129 shows the total value of "articles in a crude condition which enter into the various processes of domestic in- dustry" imported and the percentage which they formed of the total imports in 1895, 1896, and 1897 under the Wilson act, and in 1899, 1900, 1901, 1902, and 1903 under the Dingley act : Does Protection Cause an Increase of Prices in the Home Market? Experiences in the United States do not justify the assertion made by the free traders that a protective tariff results in an ad- vance of prices or in high prices in the country adopting it. Cer- tainly this has not been the case in the United States. With an area equal to that of all Europe, and producing practically all articles other than tropical which are required for use in manu- facturing and for food, with a population of 80 millions, with nearly a half million separate and competing manufacturing estab- lishments, with perfect freedom of interchange between all parts of the community in-which these manufacturing estab- lishments are located, and with the cheapest transportation facili- ties which the world affords, the competition among our own producers is an absolute assurance against excessive prices or against possible combinations by which artificial prices can be maintained. The census of 1900 shows the number of manufac- turing establishments whose product exceeds in each case $500 per annum. It gives the number as 296,440, and of those having a product of less than $500 each, 127,419, and these figures do not include the hand trades in which the number of establishments is given at 215,814. That natural competition ' among such a large number of producers, located with especial reference to proximity to materials and power, or markets, or both, should produce the keenest competition and consequently the lowest possible prices consistent with a fair rate of profit is apparent. That it does so happen is evidenced by the fact that the price of tin plate, as above indicated, has fallen from $5.15 per box of 100 pounds in 1890, the year of the enactment of the McKinley law which placed a high rate of duty on that article, to $3.65 in the same market April 29, 1904. True there was a time during that period when prices of tin plate returned to a figure nearly as high as that of 1890, but this was due solely to a great increase in the price of the material used in its manufacture and in the price of labor. During that period of high prices pig tin advanced 174 per cent, above its lowest record price, and steel slabs, the material from which the plates are made, advanced 193 per cent above its low- record prices, while tin plate and Bessemer pig iron advanced 174 per cent above their low-price record, and steel tank plate ad- vanced 161 per cent, above its low record. In all of these cases the advance in prices of the material was greater than that of the finished product, while today with the reducing prices in the raw material tin plate has again fallen to $3.65 per box, or 30 per cent, below the price in 1890, the year in which the duty was placed upon that article. THE CASE OF STEEL BAILS. Another and even more striking illustration of the reduction in home prices of articles upon which a high rate of duty is placed is found in the case of steel rails. A duty of $28 per ton was levied on steel rails in 1870. In the immediately preceding year the quantity of steel rails produced in the United States was only 8,616 tons. In 1871, the year following that in which the duty was placed upon steel rails, the production was 34,152 tons ; by 1881 it had reached 1,210,285 tons ; in 1887 it was over two million tons, and in 1902 was 2,947,933 tons. In 1870, the year in which the 44 THE TARIFF. duty was placed on steel rails, the currency price of steel rails in the United States, as shown by the Statistical Abstract, was $106.75 per ton; by 1880 tin- price had fallen to $G7.50 per ton; by L890 to $31.75, and in 1903 the average price was .$28 per ton. Meantime the duty hud been reduced to $17 per tonkin 1883; $13.44 per ton hy the McKtnley act of 1890; to $7.84 by the Wilsoh-Gor- mau act, and this rate of $7.84 per ton was continued under the pingley act UUTY ON HIDES DID NOT INCREASE PRICES OF BOOTS AND SHOES. Prices of boots and shoes following the imposition of a tariff of 15 per cent, ad valorem on hides of cattle imported did not ad- vance. Prior to the enactment of the Dingley law hides had been for many years free of duty. By that act a duty of 15 per cent was levied on raw hides and still remains. That act went into effeqt July, 1897. On January 1, 1897, the wholesale price of men's grain shoes was shown by tables quoted in Dun's Review, an accepted authority, at $1.07% per pair. Instead of advancing, the price fell from $1.02% on January 1, 1898, to 97% cents on January 1, 1899 ; $1.05% on January 1, 1901, and $1.05 on January 1, 1902. Men's calf shoes, which were $1.75 per pair at wholesale iirices on January 1, 1897; by January 1, 1899, were $1.70, and on January 1, 1902, were $1.75. Men's kip boots, which were $1.33 on January 1, 1897, before the duty had been placed on hides, were, on January 1, 1899, $1.30. Women's grain shoes, which were 87% cents per pair at wholesale on January 1, 1897, were on January I, 1899, the year after the addition of the rate of duty on leather, 85 cents per pair. It is true that prj^es of boots and shoes of all Trades have advanced slightly since 1902, due to an increase in the ( rices of raw material and prices of labor ; but the fact that there v as a steady fall in the price of practically all grades of shoes dur- ing the two years following the enactment of the Dingley law which placed a duty on hides, shows that the duty placed on hides produced no advance in the prices of boots and shoes. That the recent advance in prices is due to causes other than the tariff, which has not been changed since 1897, is evidenced not only from the general advance in prices of labor, but from the fact that the average import price'of hides in 1903 was about 20 per cent higher than that of 1899, as shown by the official statements of quantity and valuation of hides imported in those years, while in the domes- tic markets prices of hides and leather also show a corresponding advance as compared with 1899. Upon this subject of the effect of a protective duty upon the prices of articles produced at home, attention is especially called to the fact that a very large proportion of the material required by manufacturers for production of the articles which enter into the home markets are imported free of duty. The total value of material imported for manufacturing in 1903 was 380 million dollars. Of this 280 millions came in free of duty and 100 mil- lions was dutiable. Upon this the amount of duty collected was 32 million dollars, which amounts to less than one-fourth of one per cent, of the gross value of the manufactures of the United States as reported by the census of 1900. Even if we take the entire amount of duty collected on finished manufactures and man- ufacturers' materials in 1903, we should get a total of but 200 million dollars, or a fraction over one per cent, of the gross value of the domestic manufactures of that year, an advance easily and almost certainly more than offset by the reduction naturally result- ing from competition among the large number of manufacturers producing and seeking a market for this enormous quantity of manufactured material. Trusts not Able to Fix Prices. The assertion that the great combinations are able to fix and maintain prices is amply refuted by the experiences of the present year. A table recently published by the Bureau of Statistics and printed on another page of this work (see index) shows a large fall in prices of nearly all classes of articles produced by the great manufacturing combinations of the United States during the past year, in which the trusts have been supposed to be at the very height of their power, while the chief articles in which an increase of price is reported are the products of the farm or those imported from other countries, m neither of which are the articles in ques- ion produced by trusts. THE TABIFF. 45 Coal Prices Advanced After the Coal Tariff was Removed. A recent illustration of the fact that prices in the United States are not affected by presence or absence of tariff duties is found in a study of the results of the removal of the duty on coal, made in the closing months of 1902. It will be remembered that in view of the then existing coal strike and the shortage of coal resulting from that strike, urgent demand was. made for a removal of the duty on bituminous coal. In response to this demand Congress enacted a law suspending the duty on coal for one year beginning with January 1, 1903. * The rate of duty on bituminous coal under the then existing law was 67 cents per ton, and if the theory that this duty is added to the price in the home market were true, the removal of this duty of 67 cents per ton should have caused a corresponding fall in the selling price of coal in the United States. Instead of this, however, the annual average price per ton of. bituminous coal, as shown by the official reports of the Bureau of Statistics of the United States Govern- ment, was $3.75 in 1903, against $2.50 in 1902, 1901, and 1900, re- spectively ; $2.00 in 1899, and $1.60 per ton in 1898. This price of $3.75 per ton which existed in 1903 in the absolute absence of any tariff duty on coal was higher than that quoted in these official re- ports at any time since 1S81. Reciprocity. 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 President Arthur, James G. Blaine and William McKinley ; was put into operation in the McKinley tariff law ; was destroyed by the Demo- cratic Wilson-Gorman tariff law ; and now the Democratic party is charging that the Republican,party is not willing to give the coun- try "genuine reciprocity." There are two distinct kinds of legis- lation which have been designated as reciprocity legislation. THE DEMOCRATIC PLAN". The first of these was enacted by the Democratic party in 1854, taking effect in 1855. It was reciprocity with Can- ada, and provided that certain articles, the growth or pro- duce 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 kinds, fresh, smoked, and salted meats, cotton, seeds, vegetables, fruits, fish, poultry, eggs, hides, furs, stone, slate, butter, cheese, tallow, lard, ores, coal, pitch, turpen- tine, 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. Under 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 million 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 million dollars. In our trade with all other countries during that same period our imports in- creased 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 under this reciprocity were decreasing 15 per cent. It was simply free trade in articles of common production and with no oarrier to protect the domestic pro- ducer — 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 REPUBLICAN PLAN. A later form of reciprocity with which the country has had ex- perience is illustrated by the plan formulated in the McKinley tariff law and expressed by William McKinley in his much-quoted speech at Buffalo, quoted in full on page 446, in which he said : "By sensi- ble trade arrangements which will not interrupt our home produc- tion we shall extend the outlets for our increasing surplus. * * * 46 THE TABIFF. 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 encourage and protect our industries at home, why should they not be employed to extend and promote our markets abroad?" To purchase from our neighbors "'such of their products as we can use ivithout harm to our industries and labor;" in other words such of their products as are not produced by our own labor and obtain in exchange markets for the class <>l* merchandise which we desire to sell, and which the countries in question re- quire for their own use, differs materially from the reciprocity of 1855-56 which was merely free trade in articles 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 subtropical. We import about 400 million dollars' worth of tropical and subtropical prod- ucts every year more than a million dollars' worth for every day in the year, including Sundays and holidays. These articles we do not produce in the United States in sufficient quantities for home requirements. They include rubber, hemp, sisal, jute, raw silk, Egyptian cotton, and other articles used in manufactur- ing, 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 tiine^ the home production of sugar is only suffi- cient to supply about one-fifth of the total home consumption. The countries which produce these tropical and subtropical articles are not manufacturing countries, nor are they large producers of those great staples of food — flour, wheat, corn, and meats. As a conse- quence, they require the very classes of articles which the people of the United States have to sell. TREATIES UNDER THE M'KINLEY LAW. Under the McKinley tariff law reciprocity treaties were made by President Harrison with the governments of Brazil, British Guiana, Salvador, Nicaragua, Honduras, Guate- mala, Santo Domingo, and the countries governing the British West Indies and Porto Rico and Cuba. . These treaties provided for a reduction of duties on foodstuffs and manufactures from the United States entering the countries and islands in question, in exchange 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 trop- ical countries, producing the class of articles which the United States requires and does not produce in sufficient quan- tities at home, was that our exports to those countries and islands increased 26 per cent and our imports from them increased 28 per cent between 1890, the year of the enactment of the McKinley law, and 1894, the year in which it was repealed by a Democratic Congress and a Democratic Presi- dent, and reciprocity thus destroyed. During that same period our exports to all other countries than those above named increased 3 per cent, and our imports from them decreased 27 per cent. THE HAWAIIAN TREATY. Another example of reciprocity, that with countries pro- ducing the class of articles which we require and importing the class which we produce and desire to export, was the reciprocity 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 ex- ports to the Hawaiian Islands grew from $779,257 in the fiscal year 1876 to $13,509,148 in the fiscal year 1900, while im- ports f-'oni the Hawaiian Islands of noncompeting articles de- manded! by our markets — tropical products — increased from $1,227.- 191 in 1876 to $20,707,903 in 1900. Thus by taking from this trop- ical country — Hawaii — its production of articles which we must import from some part of the world, we built up in the Hawaiian Islands a market for our merchandise seventeen times as large as in 1876, the year in which the reciprocity agreement was made; while in the brief period in which reciprocity with the Tropics ex- THE TAK1KI . 4-7 isted under the McKinley tariff law, our market in the countries in question was enlarged 26 per cent. It will be seen from these' illustrations, that the policy of re- ciprocity, as a part of the policy of protection, can be most largely extended in the direction of tropical countries, for their benefit as well as ours, but under the policy as declared and understood by the Republican party it can be extended to any country where mutual exchanges can be made "without harm" to our productions at home. Thus a reciprocity treaty with Canada if properly framed might be as desirable as one in different terms relating to a tropical country. On this question the Republican platform of 1904 says, "We favor liberal trade arrangements with Canada and with peoples of other countries where they can be entered into with benefit to American agriculture, manufactures, mining, or commerce." The question of reciprocity with Cuba, already provided for, and which gives great promise of usefulness to this country and Cuba, is treated under the chapter relating to Cuba. Democratic View of Reciprocity. [From the Democratic platform of 1892.] Section 4. Trade interchange on the basis of reciprocal ad- vantages to the countries participating is a time-honored doctrine of the Democratic faith, but we denounce the sham reciprocity which juggles with the people's desire for enlarged foreign mar- kets and freer exchanges, by pretending to establish closer trade relations for a country whose articles of export are almost ex- clusively agricultural products, w ith other countries that are also agricultural, while erecting a custom-house barrier of prohibitive tariff taxes against the richest countries of the world, that stand ready to take our entire surplus of products, and to exchange therefor commodities which are necessaries and comforts of life among our own people. [From the Democratic Campaign Book, Congressional Election 1902.] Reciprocity looks like free trade, but tastes like protection. It is really a new sugar-coating prepared by the Republican tariff doctors for many patients who are refusing to take their protection pills straight. In practice, reciprocity is worse than protection. Ordinarily protection is not quite prohibitory, and, incidentally, yields some revenue to the government. Reciprocity cuts off much of this revenue without conferring any equivalent benefit upon the nation. It does, however, as will be shown, give special privileges to a somewhat different class from that which pockets most of the benefits of straight protection. . * * * In theory, reciprocity, like protection, thinks only of the pro- ducer, and never of the consumer. It assumes that the seller is the only one benefited by an exchange of products. It does not propose to lower our tariff .wall by the fraction of an inch. It proposes to punch vent holes in the walls to save it from destruc- tion. It will permit certain quantities of certain articles to pass through these holes, but never enough to let in all of any one product. To do this would benefit consumers and spoil the game of the protectionists. * * * Reciprocity cares nothing for the consumer and hunts foreign markets with a club. Its stock in trade is high tariff, favoritism, discrimination, and retaliaton. It threatens to slam' our doors in the face of foreign countries which will not open their doors to our products. Reciprocity is based upon the same false theories as is pro- tection, and, like protection, is a sham and a humbug, and to most people has been, and will ever continue to be, a delusion and a snare. Effect of Tariff Agitation. Tariff agitation and threats of reduction of tariff are frequently as harmful as tariff reduction, in proportion at least to their dura- tion. The uncertainty on the part of the purchaser as to the prices at which he can obtain his goods from abroad leads him to curtail his orders from the home producer, while in turn the home producer is unable to fix prices because of the uncertainty as to 48 THE TAlti the cost of the material which he imports for use in his manufao tures, and is also unable to determine to what extent foreign oier chandise will compete with that which he produces. The results of these conditions are necessarily a check in manufacturing from the moment that manufacturers know or hav,e reason to believe that a change is to be had in the tariff. This check is immediately felt not alone in the reduction of employment hut in the reduction in the purchases of material used by the manufacturer, and in a reduction of the purchases of food, clothing, and other supplies by the employees whose earnings are thus reduced. This in turn is felt by the farmers and producers of raw material and foodstuffs, and their purchases are in turn curtailed and the sales of the mer chant and manufacturer thus reduced. As a result of these come reductions in the earnings of transporters whose expenses can not be curtailed in proportion to the reduction of their receipts, since their trains must be kept running at regular intervals, and with this comes disaster to these great interests and to those dependent upon them. The immediate and disastrous effects of a threat of tariff reduction as a result of the uncertainty in prices and condi-' tions which followed the announcement that the tariff policy of the United States was to be reversed are shown in the disasters which immediately followed the election of a free-trade President and Congress in 1892. This election of President Cleveland and of a Democratic majority in both branches of Congress occurred in November, 1902, and by the beginning of 1903 manufacturers and those dependent upon them realized that a radical change in the tariff awaited them. As a result, the business failures, which amounted in number to 10,304 in 1892, were 15,242 in 1893, and their liabilities, which in 1892 were 114 million dollars, were in 1893 346 millions. Money in circulation fell from 1,601 million dollars in 1892 to 1,596 millions in 1893, and the per capita from $24.56 in 1892 to $24.03 in 1893. Bank clearings, which were 60,883 million dollars in 1892, dropped to 58,880 millions in 1893 : deposits in savings banks fell from 1,753 million dollars in 1892 to 1,556 millions in 1893 ; and railroads placed under receiverships increased from 10,508 miles in 1892 to 29,340 miles in 1893. All of this, b.e it remembered, occurred in the single year, 1893, before a line of the free trade legislation had been placed upon the statute books,; but during a period when the entire business interests of the community were compelled to suspend operations largely by reason of the uncertainty as to what the extent of that tariff legislation would be. Abraham Lincoln, on the Tariff Question. Abraham Lincoln had clearly defined views on the tariff ques tion. He was a protectionist. He believed that American con- sumers should patronize American producers and thus build up and develop the great home market, and in so doing assure them- selves not only domestic prosperity but lower prices and a smaller loss of labor applied in transportation. "A tariff of duties on imported goods so adjusted as to protect American in- dustry is indispensably necessary to* the American people" was the form in which he expressed his sentiments in resolutions offered at a Whig meeting at Springfield, 111., March 1, 1843. In an address to the people of Illinois issued three days later and bearing his name he said: "By the tariff system the whole revenue is paid by the con- sumers of foreign goods, and those chiefly luxuries and not the necessaries of life. By this system the man who contents himself to live upon the products of his own country pays nothing at all. And surely this country is extensive enough and its products abundant enough to answer all the real wants of its people. In short, by this system the burden of revenue falls almost entirely on the wealthy and luxurious few, while the substantial and labor- ing many who live at home and upon home products go entirely free." In some tariff memoranda written by Mr. Lincoln after his election to Congress but before taking his seat in that body in 1847 he said: "I suppose the true effect of duties upon prices to be as fol- lows: If a certain duty be levied upon an article which by nature can not be produced in this country — as 3 cents a pound upon coffee — the effect will be that the consumer will pay 1 cent more per pound than before, the producer will take 1 cent less and the merchant 1 cent less in his profits; but if a duty amounting to full THK T A HI IF. 49 protection be levied upon an article which can be produced here with as little labor as elsewhere — as iron — that article will ulti- mately and at no distant day, in consequence of such duty, be sold to our people cheaper than before, at least by the amount of the cost of carrying- it from abroad." In another memorandum on the tariff question, written just before talcing his seat in Congress, Mr. Lincoln said: "To secure to each laborer the whole product of his labor, or as nearly so as possible, is a worthy object of any good govern- ment. Will the protective principle advance or retard this object? The habits of our whole species fall into three great classes — use- ful labor, useless labor, and idleness. It appears to me that the labor done in carrying articles to the place of consumption which could be produced in sufficient abundance and with as little labor at the place of consumption is useless labor. Iron and everything .made of iron can be produced in sufficient abundance and with as "little labor in the United States as anywhere else in the world; therefore all labor done in bringing iron and its fabrics from a foreign country to the United States is. a useless labor. The same precisely may be said of cotton, wool, and of their fabrics. The raw cotton grows in our country, is carried by land and water to England, is there spun, wove, dyed, stamped, etc., and then carried back again and worn in the very country where it grows, and partly by the very persons who grew it. Why should it not be spun, wove, etc., in the very neighborhood where it grows and is consumed and the carrying thereby dispensed with?" Mr. Lincoln's suggestion fifty-seven years ago that the protec- tive principle should be applied in the development of our iron and cotton industries has been fully justified by subsequent events. In that year (1847) the pig iron production of the United States amounted to 800,000 tons. By 1870, ten years after the election of the first Republican President, pig iron production had reached 1,665,000 tons; by 1880 it was over 4,000,000 tons; by 1890 over 9,000,000 tons; in 1900 over 13,000,000, and in 1903 over 18,000,000 tons. Meantime the price had fallen from $30.25 per ton in 1847, the year in which Mr. Lincoln expressed these sentiments, to $15 per ton in 1904; or less than one-half the price when he predicted that home manufacture would reduce prices. In cotton manufacturing his prediction has been equally justified. The cotton mills of the United States in that year took 1,858,000 bales of domestic cotton for manufacture. Under the protective system here advocated by Mr. Lincoln the consump- tion has grown to over 4,000,000 bales in 1902, and the price of standard prints, -a staple article of cotton manufacture, has fallen from 10 cents per yard in 1847 to 5 cents per yard in 1903, as shown by official figures of the Bureau of Statistics. President Lincoln's views on the tariff were often expressed in his quaint but always forceful method. "The tariff question," he said to a Pittsburg audience on February 15, 1861, "is as durable as the Government itself. It is a question of national housekeeping. It is to the Government what replenishing the meal tub is to the family. So far there is little difference among the people. It is as to whether and how far duties on imports shall be adjusted to favor home production in the home market that controversy begins. * * * I have long thought that it would be to our advantage to produce any necessary arti- cle at home which can be made of as good quality and with as little labor at home as abroad, at least by the difference of the carrying from abroad." On another occasion Mr. Lincoln is quoted as saying: "I am not posted on the tariff, but I know that if I' give my wife twenty dollars to buy a cloak and she buys one made in free- trade England, we have the cloak, but England has the twenty dollars; while if she buys a cloak made in the protected United States, we have the cloak and the twenty dollars." British Views of American Protective Tariffs. — Growing 1 Proba- bility of Protection in the Last Stronghold of Free Trade. That the protective system, as exemplified in the United States, is finding favor in the last stronghold of free trade (Eng- land) is well known. Mr. Chamberlain, the former secretary of state for the colonies, has resigned from the cabinet tx> lead the fight in favor of protection, and Premier Balfour has written a pamphlet openly advising the abandonment of free trade. Lib- eral extracts from the expressions of these and other English statesmen and writers are published in the document "Pages from the Congressional Record," especially in the speeches of H ^ I III I Mill K Representatives Dick, MCOleary, and Olmsted. A study of all of these speeches and of the others published In this document will prove of great value both to speakers and editors, as they contain much matter which can not he inserted in a textbook. Among the views of representative ECngUshmen on the Ameri- can tariff and its results attention is especially called to those of the Museley Tariff Commission. This commission, composed of officers of the labor unions of the United Kingdom, was brought to the United States in 1902 by Mr. Alfred Moseley, a distin guished British manufacturer interested in the prosperity of English labor as well as English industries. The commission visited all of the great manufacturing centers, occupying several months in its studies, and on its return to England issued an elaborate report. This was made up in part of special reports' by each member of the commission upon conditions in Ids par- ticular branch of industry, but each member was also required to answer certain specific questions regarding x he general con- ditions of labor in the United States. These reports and replies are a striking testimonial to the protective system of the United States. A summarization of them will be found in the speech of Representative Olmsted, above alluded to, and should be care- fully studied. The following is a letter published in the London Times by Mr. Moseley, the head of the commission, shortly after his return, and it is followed by an extract from his report which occupied the opening pages of the general report of the commis- sion; also by extracts from a report of the British Iron and Steel Commission, which visited the United States in 1902. Mr. Alfred Moseley's Letter to the British Public on Condition* in the United States and Their Relation to the Protective Tariff. To the Editor of the London* Times. Sir: I find on my return to England that there is. a vast amount of curiosity on the part of the public as to how Mr. Cham- berlain's proposals are viewed by the mercantile community on the other side of the Atlantic. Of course, they realize that a tariff imposed upon our imports would not be to their advantage; nevertheless they do not allow their judgment to be warped by the consideration of their own personal interests, and I found on all sides but one comment, amounting practically to "Why has it not been done before? We could never see the utility of allowing other nations to dump their surplus products on the market and put one's own people out of work." This was the opinion of every business man with whom I conversed, with the exception only of Mr. Carnegie. The subject of our tariff reform movement is as interesting to the people of the United States as it is to ourselves, and is continu- ally discussed in the newspapers and forms the topic of endless debates in their universities and societies. Nowhere have I heard it condemned as being impractical. Their authorities on political economy, with many of whom I discussed the subject, one and all agreed that it is the only course open to England in view of the conditions that have arisen since she adopted free trade; amongst whom I may name Mr. John H. Gray, professor of economics at Northwestern University, Chicago, who expressed wonder that there should be any opposition to Mr. Chamberlain's scheme ex- cept from "cranks" and people incapable of moving with the times. Professor Gray, I may state, is considered in the United States as a high authority, and he was chosen two years ago by their Govern- ment to come to this country to investigate labor conditions here. The results of his inquiries are to be published shortly by Com- missioner Carroll D. Wright of the United States Labor Bureau. Whilst I was in America I read a report of a speech by Lord Goschen, in which he stated that whilst we were about to adopt protection the United States was tending entirely in the opposite direction, towards the removal of tariffs. No one, of course, doubts his sincerity in making this assertion, but it shows how lamentably he is out of touch with conditions as they are. The tariff question there is absolutely a closed book; all that the people of the States ever propose to discuss is whether perhaps they are not taxing themselves unnecessarily in certain industries by the high tariff that exists, and there is a disposition in some sections of the com- munity (although even these are not very large) to make a re- vision of the tariff by reducing the duty on certain articles; but nobody dreams for a single instant that such reduction should be sufficiently large to allow the foreigner to come in and compete with them, lowering the standard of wages and injuring industry. The workingman of the United States is quite sufficiently alive to his own interests to keep this matter always before him, and no presidential candidate would have the smallest chance of election if he proposed to attempt anything in the way of tariff reform likely to lower the standard of living and affect the wage-earning power of the American workman. Yours, faithfully, A. MOSELEY. London, E. C, December 22, 1802. THE TARIFF. 51 UP-TO-DATE METHODS OF PROTECTION. Mr. Moseley himself, on tlie opening page of the report, says: In my travels round the world, and more particularly in the United States, it became abundantly evident to me that as a manu- facturing- country America is forging- ahead at a pace hardly real- ized by either British employer or workman. I therefore came to the conclusion that it would be necessary for the workers them- selves to have some interest in these developments, and I decided to invite the secretaries of the trades unions representing the prin- cipal industries of the United Kingdom to accompany me on a tour of investigation of the industrial situation across the Atlantc. * * * In my previous trips to America I had been favorably struck by the up-to-date methods of protection there, both from a busi- ness standpoint and as regards the equipment of their workshops. The manufacturers there do not hesitate to put in the very latest machinery at whatever cost, and from time to time to sacrifice large sums by scrapping the old whenever improvements are brought out. Labor-saving machinery is widely used everywhere and is encouraged by the unions and welcomed by the men, be- cause experience has shown them that in reality machinery is their best friend. It saves the workman numerous miseries, raises his wages, tends toward a higher standard of living, and, further, rather creates work than reduces the number of hands employed. In England it has been the rule for generations past that as soon as a man earns beyond a certain amount of wages the price for his work is cut down, and he, finding that working harder and run- ning his machine quicker brings no larger reward, slackens his efforts accordingly. In the United States the manufacturers rather welcome large earnings by the men so long as they themselves can make a profit, arguing that each man occupies so much space in the factory, which represents so much capital employed, and therefore that the greater the production of these men the greater must be the manufacturer's profit. * * * The United States has advanced by leaps and bounds. She is beginning to feel the beneficial ef- fects of the education of her masses and an enormous territory teeming with natural resources as yet but meagerly developed. At the present time the home market of the United States is so fully occupied with its own developments that the export trade has as yet been comparatively little thought of; but as time goes on and the numerous factories that are being erected all over the country come into full bearing, America is bound to become the keenest of competitors in the markets of the world. * * * How is it that the American manufacturer can afford to pay wages 50 per cent, 100 per cent, and even more, in some instances both ways, and yet be able to successfully compete in the markets of the world? The answer is to be found in small economies which escape the ordinary eye. That the American workman earns higher wages is beyond question. As a consequence, the average married man owns the house he lives in, which not only gives him a stake in the country, but saves payment of rent, enabling him either to increase his savings or to purchase further comforts. Food is as cheap (if not cheaper) in the United States as in England, whilst general necessaries may, I think, be put on the same level. * * * It is generally admitted that the American workman, in consequence of labor-saving machinery and the excellence of the factory organization, does not need to put forth any greater effort in his work than is the case here, if as much. He is infinitely better paid, therefore better housed, fed, clothed, and, moreover, is much more sober. Under such conditions- he must naturally be more healthy. * * * Fuel and raw material are much the same price in tlip United States as in Europe, and it therefore can not be claimed that she has very much advantage on this; but facilities for trans- port, both by rail and water, are undoubtedly better and cheaper. * * * In the United States one hears a great deal against "trusts" (as they are known, or what we term "large corpora- tions"), but personally I am rather inclined to welcome these con- cerns, because large organizations that employ capital are best able to compete in manufactures on the most economical lines, can fearlessly raise wages within given limits, are in position to com- bat unhealthy competition, can provide up-to-date machinery ad libitum, call erect sanitary and well-ventilated workshops, and generally study better the comfort and well-being of the workmen than small individual manufacturers struggling against insuffi- cient capital and old machinery. It is in the organization of cap- tal on the one hand and a thorough organization of labor on the other that I believe the solution of industrial problems will be found. GREAT PROGRESS IN MANUFACTURING IN THE UNITED STATES. The report of the Moseley Industrial Commission closes with a general statement, entitled "Progress in Manufacture in the United States at the End of the Nineteenth Century." It begins by calling attention to the fact that manufactures, which formed in 1875 but I6Y2 per cent of the exports of domestic merchandise, formed in the period 1899-1901 29 x / 2 per cent of the exports of domestic merchandise. It also calls attention to the fact that the growth of exports of manufactures from the United States from 1889 to 19C1 has been much more rapid than the growth of manufactures exported from the United Kingdom, and says: 52 I'm: lAUHK. Comparison between detailed headings in the trade accounts of the two count lies is probably somewhat unsafe, but some idea of the prospect of the United States becoming a greater exporter than this country — the United Kingdom — may be gathered by noticing that the values of machinery exported as well as that of the total exports of iron and steel manufactures, which were both, five years ago, less than a quarter of the corresponding values in this country, amounted at the end of the century to more than half those values. * It also calls attention to the fact that the production of pig iron grew from 4,000,000 tons, average, in 1884 and 1885, in the United States to 13,70&,000 ions in 1889-1900, while that of the United Kingdom only .grew from 7,614,000 tons to 9,191,000, and that the growth in production of steel in the United States was even more rapid. It also calls attention to the growth of the tin-plate industry in the United States, saying: Previous to 1890 the United States produced practically no tin plates and sheets, and the industry owes its existence almost wholly to the protective tariff placed upon these goods in 1890, which became operative on July 1, 1891. The growth of the in- dustry since that date has been very remarkable and has resulted in this country (the United Kingdom) to a large extent losing its best customer. * * * Much of our loss, due to the closing of the American markets against us, has been made good by markets having been found elsewhere; but, in spite of this, the blow to the trade has been very severe. In closing the general discussion, the report says : Before concluding, it may be as well to suggest, briefly, the causes that have contributed to the enormous expansion of manu- facturing industries in the United States. This is not the place to discuss in detail the causes which may be credited as political. That a certain proportion of the growth of the manufacturing in- dustries of the United States is attributable to the direct action of government, and especially to the operation of the tariff, is ob- vious, and, indeed, has been referred to incidentally in discussing the growth of tin-plate manufacture in the United States. A word, however, may be said as to the causes of growth which depend on the natural advantages possessed by the United States and the personal characteristics of her citizens. Under the first head come the enormous coal resources of the United States, coupled with the rich deposits of iron ore. Under the second comes a whole group of characteristics, which to a large extent evade statistical analysis. There is, first, the readiness of the manufacturer to adopt, and of the workman to accede to, the use of labor-saving devices. Allied to this is the largeness of scale, with its resultant economies, with which manufactures are con- ceived and carried on. For further details of this report see speech of Representative Olmsted in document "Pages from Congressional Record." Report of the Commission of the British Iron Trade Association. Another tribute to protection is paid by another representa- tive commission from England which visited the United States in 1902, namely, the commissioners appointed by the British Iron Trade Association to inquire into the iron, steel, and allied in- dustries of the United States. This commission, which visited the great iron manufacturing centers of the United States, pre- sented an elaborate report, forming a volume of nearly 600 pages. It contains reports on all features of the iron and steel production, including the supplies of ore and coal, freights, labor condi- tions, hours of work, strenuousness of labor, cost of production, organization and administration in industrial affairs, transporta- tion systems, the great corporations, and other work in iron and steel production, and many other kindred subjects. Throughout this elaborate report the writers point to the advantageous condi- tions existing in the United States, the higher prices paid for labor, the better conditions of the laboring men than those of their own country (England), and the wonderful prosperity which has come to the iron and steel industry in the United States, where, in the words of the secretary of the commission, Mr. J. Stephen Jeans, "In no country has protection been adopted in such a whole-souled manner. In no other country have the shibboleths of free trade been more emphatically held at arm's length." Commenting upon the remarkable development in the United States in this industry, Mr. Jeans says: The cost of production of iron and steel is made up of three main elements — raw materials, labor, and transportation. No one of these matters can properly be dealt with unless in relation to the others. Raw materials, however cheap and abundant, are of THE TAEIFF. 53 little value as a basis of industrial prosperity without cheap trans- port and labor at a reasonable cost. Similarly, cheap labor is of little value without adequate supplies of raw materials of the right kind plus a reasonable rate of charge for transport. The inter- relation of these three subjects has made it necessary to devote much space to all three of them in this report. Labor is perhaps the most fundamental of the trio, because in one form or another the ultimate cost of all commodities is mainly that of labor. In the United States, paradoxical as it may appear, we have to face conditions that make at once the dearest and the cheapest labor that is probably to be found in any part of the world — dearest with respect to nominal remuneration, the cheapest with respect to in- dustrial and economic results. It is the purpose of the following pages to demonstrate how American ironmasters and engineers have been able to so disci- pline and apply the labor at their command as to reconcile high wages with cheap production in a degree not hitherto attained elsewhere. * * * The influence of trades-unionism is not near- ly so strong nor so aggressive in the United States as in Great Britain. * * * The almost absolute freedom of labor has been the chief instrument whereby it has won such conquests in the field of industrial economy during the last quarter of a century. In all countries industrial processes have been greatly cheapened during that period, but in America the cheapening appears to have been carried farther than anywhere else. Within that time a wire-rod roller has seen his earnings per ton reduced from $2.12 to 12 cents, and yet he earns larger wages at the lower figure, while 5 cents are paid to-day for heating billets to make wire rods against 80 cents during the period referred to. * * * Wages, in short, are generally so good and the men have their futures so much in their own hands that they have every encouragement to do the best they can both for their employers and for themselves. The human factor and the personal equation appear to count in the United States for more than they generally do in Eruope. Workmen appear to enjoy a larger measure of independence, based on a knowledge of the fact that work is more easy to obtain than in older countries, and they are able as a rule to save money and are therefore less dependent than when living, as is not unusual in Europe, from hand to mouth, and that they are living under a political regime which is founded on democratic principles. RELATIONS BETWEEN EMPLOYERS AND EMPLOYED. Two features of the relations of employers and employed may be named as exercising a powerful influence on the amity of their connections: First, the encouragement and reward of workmen's inventions, and second, the readiness with which workmen of ex- ceptional capacity can themselves become employers and capital- ists. * * * The vast scale of operations is a feature of American works that can not be paralleled elsewhere. The total number of hands employed at Homestead is over 7,000, and the capacity of output of steel something like 2,000,000 tons a year. One individual customer takes 1,000 tons a day of this output, and all the other operations are on a similarly colossal scale. This fact enables the manage- ment to spread the standing charges over a large output in such a manner as to bring them down to a percentage of total cost of which probably no European works has any experience. * * * The commissioners naturally found that the influence of the corporation was almost all-pervading in certain districts, and that its future policy and its financial issues were regarded from very different aspects and with very different ideas by different observ- ers. The United States Steel Corporation, in the opinion of the majority, has come to stay. As it controlled nearly two-thirds of the total iron ore, coke, pig iron, and steel capacities of the United States at the time of its organization, it is natural that it should be looked to as the leader of all movements of prices and wages, and the prominent part which it took in the settlement of the im- portant labor dispute of 1901 supplied an evidence, if any were needed, that it means to use its power and influence when occasion demands that it should do so. At the same time, there is reason to believe that its power is not relatively increasing — in other words, that the production of iron and steel controlled by inde- pendent concerns, or/ likely to be so in the near future, is or will be greater than that at the time of the consolidation. THE STEEL TRUST. It is natural that both here and on the other side of the At- lantic the vast influence and the commanding position secured by the United States Steel Corporation should have induced a degree of apprehension lest smaller plants may be swamped, and both pro- duction and price become largely a matter of monopoly. This is not. however, the opinion of the best-informed and most far-seeing men with whom I have had the opportunity of discussing the situ- ation in the United States. That private enterprise in that country is not afraid of the steel corporation is made evident by the un- precedented activity that is being displayed in the establishment of new independent plants while I write. In every part of the United States plants are entering the lists to compete against the steel corporation, and the capacity of the private plants opposed to it to-day is probably considerably greater than it was at the time it was founded, although that was only February, 1901. A recent writer has accurately noted that small plants well located and economically managed are remarkably tenacious of life. It has also been observed that the best returns on American capital during the period known as the "lean years" were not generally those of the largest enterprises, but those of a few smaller firms, and those in some cases outside the range of what are known as "the cheap centers," 54 I III lAKIP'K. THE TIN PLATE INDUSTRY AND ITS DEVELOPMENT. The British Iron and Steel Commission after its visit to the United States in 1902 devotes a chapter of its report to a discus- sion of the tin-plate industry in the United States, and hegins hy saying: The tin-plate industry Is one of the most recent in the United States and has been built up on the McKinley tariff of 1890, which levied a duty of 2% cents per pound on all tin plate imported into the country and practically caused the customs to claim as much on imports into the United States as the price of the product at works in the principality. At the time the McKinley tariff came into force there was f (radically no tin plate manufactured in the United States, and the mports of that commodity ranged from 300,000 to 400,000 tons a year. In the following year the* home production was only 552 tons, and the imports of British tin plates were' 327,882 tons. Since"* then the American production has increased year by year, while the American imports have as rapidly declined. In 1900 the total American output of tin plates exceeded 400,000 tons, and the im- ports had fallen to only 58,000 tons, or about a sixth part of what they were in 1890. The following table shows the British exports, American im- ports, and American output of tin plate for the last thirteen years: Year. Exports from Great Britain to all countries. Imports into United States of America. American production. 1889 Tons 430,623 i 421,797 448.738 395,580 379,233 354.081 365,088 266,955 271,230 250,953 256,629 273,954 171,657 Tons. 331,311 329,435 327,882 268,472 253,155 215.068 219,545 119,171 83.851 67,222 58.915 60,386 Tons. 1890 1891 552 1892 18,803 1893 1894 55.182 74,260 1895 113,666 1896 160 362 1897 256 598 1898 326 915 1899 397,767 1900 302 665 1901 The imports of the past three or four years have been confined almost entirely to tin plates, which are reexported in the shape of cans containing oil, fruit, fish, etc. By the terms of the Dingley law 99 per cent, of the duty originally placed on such tin plate is refunded by the Government on its reexport. * * * It seems to be pretty certain from the available records that whatever "virtual monopoly" of the tin-plate trade the steel cor- poration may have possessed when it was founded, or whatever the amount of control exercised over the trade at an earlier date by the American Tin Plate Company, competitive concerns have in- creased largely and rapidly, until the twenty-six tin-plate works under the control of the steel corporation are leas than one-half of the whole number. While, therefore, the action of that consolida- tion can not be regarded as uninfluential in the affairs of the tin- plate trade, it is not likely to be all important, as it would have been while independent concerns were less numerous. The number of completed tin-plate works in the United States at the end of 1901 was fifty-five, compared with sixty-nine in April of 1898, and the same number at the end of 1895. Hence the num- ber of existing works at the end of 1901 was less than that of either of the two previous periods. But the amount of enterprise being shown at the end of 1901 in adding to the productive capacity of American tin-plate plants was greater than at either of those previous dates. Mr. Swank's figures show that at the end of 1901 no fewer than seven new tin-plate works were in course of con- struction, against one in April, 1898, and four at the end of 1895. Of the new works being built at the end of 1901, three were in Pennsylvania, two in West Virginia, one in Ohio, and one in Wis- consin, while one other was at that time projected in Illinois. The aggregate capacity of the whole of the tin-plate works of the United States is not quite known, but it is computed at over 700,000 tons, which is a good deal in excess of any actual output hitherto reached in the United Kingdom. * * * In considering the tariff of the United States from the point of the influence on British industry, we can not ignore the possible example that it has set to -other nations and which in the future it may conceivably offer to our own. We need not discuss this point at any length. It would be unsatisfactory to attempt to dis- cuss it from a purely controversial standpoint. But it is at least permissible to point out that not a few leading manufacturers have expressed dissatisfaction with a condition of things that enables other countries to enter British markets without let or hindrance while excluding us from their own, and under which Britain is steadily increasing her imports of foreign manufactured goods, while leading statesmen have pointed out that this country, having by its economic policy given a practical sanction to this system of unrestricted Imports, has no equivalent to offer in commercial ne- gotiations with other nations. THE TARIFF. 55 THE BRITISH POINT OF VIEW. From the British point of view the main interest in and the chief effect of the United States tariff takes two forms — that of ex- cluding our products from the markets of that country and that of underselling' us in our own. As regards the former, the fact is so well known that I need not pile up figures to prove it. Suffice it to say that our total iron and steel exports to the United States are now only about one-fifth of what they were ten years ago, al- though even now the tariff does not entirely shut out European iron and steel, seeing that pig iron and billets are being imported from Europe while I write. * * * I may here point out that while Great Britain, according to the official records of the United States, took from that country an average of more than $500,000,000 worth of merchandise during the last four years, the average imports of British produce into the United States have not exceeded one-third of that figure, while of that one-third from one-half to two-thirds are subject to more or less prohibitory duties. This is not a trade relationship which the people of this country can regard with perfect equanimity. Ameri- cans can hardly be surprised if in Great Britain there is an increas- ingly strong impression that in matters of commerce our American friends, like the Dutch described by Hudibras, have a habit of "giv- ing too little, and asking too much." EFFECT OF THE TARIFF ON PRICES. The Americans generally dispute the argument that a tariff for protection tends to keep up prices to the home consumer, and in support of their attitude on this subject they point to the fact that the prices of coal, iron, steel, and other commodities are and have been materially lower in the United States than in Great Britain. This view opens up questions of vast range, which it would take much space to handle. The other side of the argument obviously is that prices of commodities in the United States have declined, not because but in spite of the tariff. * * * At the same time it is by no means clear that a high tariff does necessarily involve a high range of prices in the protected country and in the United States within the last few years prices have touched a very low level in spite of the tariff. Take as a case In point the statistics of steel rails. When the steel-rail industry was begun in the United States, in 1867, the rate of duty on Im- ports was 45 per cent, ad valorem. This rate was continued until 1871, when it was made a specific duty of $28 per ton, which was reduced to $17 per ton in 1883, to $13.44 in 1.890, and to $7.84 in 1894, at which figure it has since been maintained. In spite of these duties, however, the average price of steel rails in the United States fell from $28 in 1897 to $17.62 in 1898, and in the latter year the average American price was probably under the average of any other country. EFFECT OF THE TARIFF ON INDIVIDUAL CONCERNS. Many hold that the tariff has mainly been responsible for the great fortunes made by the typical millionaire, and the case of Mr. Andrew Carnegie is often quoted as a conclusive proof of this theory. I should not have dealt with an individual example in this connection but for the fact that it stands out so prominently in the recent history of the American iron trade as to make it almost impossible to ignore it in the consideration of this phase of the question. Moreover, I have had the privilege on more than one occasion of comparing notes with Mr. Carnegie and of knowing something more of the facts than "the man in the street"; and while I would not, of course, make use of any of the facts and figures brought to my knowledge in this way, I am quite at liberty to deal with facts that are common property in the light of the aspects thus presented. Everyone who makes any pretensions to a knowledge of the recent history of the American iron and steel industries must be fully aware that during one of the most critical periods in its career the operations of manufacturing firms, and not the least so those engaged in the steel-rail industry, were not uniformly suc- cessful. In the years 1896-1898 the principal firms connected In the American rail industry were the Carnegie Steel Company and the Illinois Steel Company, afterwards merged in the Federal Steel Company. But it is a well-known fact that over a large part of this period the Illinois Company failed to make profits, while the Carnegie Steel Company did remarkably well. The difference of results is mainly, if not wholly, due to differences in location, re- sources, and administration, and it is hardly likely to be claimed that the tariff was the cause of those differences, since its influence equally affected both. No doubt in the earlier history of the rail trade profits were large, but on a relatively small product, for In 1875, when the Carnegie Company started, the total American pro- duction of steel rails was only 259,000 tons. TRUSTS AND THE TARIFF. In America the question has been many times raised of late whether there is not a large degree of interdependence between in- dustrial combinations and tariff duties, on this subject the United States Industrial Commission recently reported: "Protective tariffs do not seem to have been of special signifi- cance in the formation of industrial combinations in Europe, al- though in many cases the combination has been enabled to take advantage of the protective tariff in the way of securing higher prices. In free-trade England the combination movement seems 50 Till'. 1AK111. to have developed considerably further than in protectionist Prance; but. <"» the other hand, the movement toward combination lias gone much further in extent in Austria, and (Jermany, both protectionist countries, than in England, although in England the form of combination is generally more complete. Doctor Lief- iiuiMii, in an article on combinations in England, expresses the opinion that the chief reason for the lesser development of mo- nopolistic combinations in England and the continuation of severe competition in branches of industry in which in Germany there have existed for a long time very rigid combinations* — for example, the coal industry — aeeaftbea the emine rather to the principle of extreme individualism in England, which has a much firmer hold on business men, in his judgment, than in Germany, and this ap- pears, on the whole, to be the right conception." AMERICAN TARIFFS FROfl 1789 TO 1897. [From "Protection and Prosperity," by Geo. B. Curtiss, Bing- hamton, N. Y.] Dates of Passage and Operation with Salient Features and Consequences. Act of July 4, 1789. — Went into effect August 10, 1789. Duties imposed upon 75 articles, 40 specific; 35 ad valorem; 15 free. Aver- age rate on total imports 7% Per cent. August 10, 1790. — Went into effect January 1, 1791. Imposed 50 new duties and increased many of previous year. Average rate on total imports 8 per cent. March 3, 1791. — Slight increase — unimportant — rates increased on spirits. Average rate on total imports 8.43 per cent. May 2,«1792. — Went into effect July 1, 1792. Over 150 articles were enumerated in this bill. General increase of 2% per cent. Average rate on total imports 10.93 per cent. June 5-7, 1794. — Went into effect July 1, 1794. Imposed ad- ditional duties and made slight increase in many existing. In- creased rates on tobacco, snuff and refined sugar. Average rate on total imports 13.88 per cent. January 29, 1795. — Rates changed on types, sugar and wines. Many changes, some reductions. Twenty-five articles on free list. Average rate on total imports 8.04 per cent. March 3, July 8, 1797. — Increased rates on sugar, tea, molasses, velvets, cotton goods, candy. Average rate on total imports 9.25 per cent. March 13, 1800. — Went into effect July 1, 1800. Increased rates on sugar and wines. Average rate on total imports 13.11 per cent. March 26, 1804. — Went into effect July 1, 1804. Increased all ad valorem rates 2% per cent. Increased rates on goods in foreign vessels 10 per cent. Additional rates on many specific articles. Mediterranean Fund. Average rate on total imports 13.06 per cent. March 3, 1807; March 4, 1808. — Salt and copper, saltpetre and sulphur made free. Increased duties on brass, hats, iron, linen, wines and many other articles. Average rate on total imports 28.71 per cent. Embargo Act passed in December, 1807, prohibiting all imports from England and France, repealed May 15, 1809. — This was not a tariff measure, but at the same time had the effect of stimulating many industries. The people of the United States were thrown entirely upon their own resources and the result was new indus- tries established, and increased production in existing manufac- tures. Act of July 1, 1812. — Went into effect same day. Known as the war tariff. All duties were doubled. Supplementary Acts,' February 25, 1813; July 29, 1813; March 3, 1815; February 5, 1816. Great activity in manufacturing due both to high duties and the war. Average rate on all imports 32.73 per cent. Act of April 27, 1816. — Went into effect July 1, 1811. Known as the Lowndes-Calhoun bill. War rates were considerably re- . duced. Ad valorem duties ranged from iy 2 to 33 per cent. Un- enumerated goods paid 15 per cent. Iron and other metals 15 per cent. Woolen goods 25 per cent. Minimum principle adopted. Intended as a protective measure but failed because of duties be- ing too low to prevent vast importations from England at less than cost prices. Average rate on all imports 26.52 per cent. April 12, 1818. — Rates changed on Iron and Alum. March 3, 1819. — Rates on certain wines reduced. Average rate on all imports 35.02 per cent. Act of May 22, 1824.— Went into effect July 1, 1824. Decided increase in duties with most significant and gratifying results. Average rate on all imports 37 per cent. Act of May 19, 1828. — Went into effect September 2, 1828, and July 1, 1829. Known as the "Tariff of Abominations." Minimum extended. Rates increased. Average rate on all imports 47.80 per cent. May 20, 1830. — Rates reduced on teas, coffees and cocoa and molasses. July 14, 1832. — Went into effect March 4, 1833. Known as the "Modifying tarift." Duties on iron reduced, on woolens increased. Act of March 2, 1833. — Went into effect January 1, 1834. Known as the "Compromise Tariff." Rates reduced 10 per cent of all duties in excess of 20 per cent, etc., each alternate year till January 1, 1842, one-half the remaining excess of 20 per cent to be taken off on that date and the other half July 1, 1842. Linens, worsted goods, shawls and manufactures of silk made free. Aver- age rate on all imports about 17 per cent. July 4, 1836. — Rates reduced one-'aalf an wines. THE TARIFF. 57 September 11, 1841.— Articles free and those paying less than 20 per cent to pay 20 per cent. Railroad iron reduced to 20 per Act of August 30, 1843. — Took effect immediately. General re- vision and increase of rates 50 to 75 per cent. A thoroughly pro- tective measure. The result was a revival of industry and trade, followed by general prosperity. Act of July 30, 1846. — Went into effect December 1, 1846. Known as the "Walker Tariff." General reduction of duties. Changes from specific to ad valorem rates, duties for revenue only. Effects of this tariff were most disastrous in spite of foreign war, famine and the discovery of gold. Act of March 3, 1857. — Went into effect July 1, 1857. General revision and further reduction of duties. A culminating free-trade act, resulting in panic and commercial ruin. The worst period in the nation's hstory. Act of March 2, 1861. — Went into effect April 2, 1861. In- tended to raise the necessary revenue for government expendi- tures. ' . August 5, 1861. — First of the war tariffs, large increase in duties. December 24, 1861. — Duties increased on sugar, tea and coffee. July 14, 1862. — Went into effect August 2, 1862. Further in- crease of rates. March 3, 1863; April 20, 1864; June 30, 1864; March 5, 1865; March 15, 1866, and July 28, 1866. — Bills changing and generally increasing duties. Act of March 2, 1867. — Took effect immediately. Rates in- creased on wool and woolens giving great benefit to those indus- tries. February 24, 1869. — Rates increased on copper. July 14, December 20, 1870. — General changes. Free list large- ly reduced. Duty of $28 per ton on steel rails. May 1, 1872. — Tea and coffee made free. June 6, 1872. — Went into effect August 1, 1872. Reduction of 10 per cent. Increased free list. June 22, 1874. — Revised statute, with slight and unimportant February 8, 1875. — Known as the "Little Tariff Bill."- General March 3, 1875. — Took effect immediately. Rates increased on sugar. Repeal of 10 per cent reduction of act of June 6, 1872. July 1, 1879. — Quinine made free. July 14, 1880. — A few unimportant changes. May 6, and December 3, 1882. — Repeals discriminating duty. Act of March 3, 1883. — Went into effect July 1, 1883. Known as the Tariff Commission Bill. General revision, reductions and increased free list. Severe blow to wool industry. Act of October 1, 1890. — Went into effect October 6, 1890. Known as the McKinley Bill, the most perfect tariff measure ever framed. Changes from ad valorem to specific rates. Enlarged free list. Sugar made free, a bounty being substituted. Recipro- city law. Unusual prosperity in all lines of industry. More men employed and at higher wages than ever before in the history of the nation. Act of 1894. — Went into effect August 27, 1894. Known as the Gorman-Wilson Bill. Became a law without the President's signa- ture. General reduction of duties. Wool put on free list. Great falling off in number of sheep. Increased importations of com- peting commodities to the detriment of American manufacturers. Great increase in national debt. Deficiency of revenue. Impair- ment of gold reserve, necessitating repeated bond issues. Decline in foreign trade. General depresson in business throughout the entire countrty. Act of 1897. — Went into effect July 24, 1897. Known as the "Dingley Act" — thoroughly protective and stated in its title that its purpose was to provide revenue for the Government and "to encourage the industries of the United States." It was followed by a revival of manufacturing, mining, agricultural and trans- portation industries, by a great increase in the general business of the country and increase in the exports of manufactures, large additions to the deposits in savings banks and an- era of general prosperity. Anti-Free Trade Data in England. [From New York Tribune.] A correspondent asks upon what data Mr. Chamberlain bases his demand for the abandonment of that free-trade system which was introduced to Great Britain as the consummate flower of business shrewdness, political wisdom and humane benevolence, and which has been maintained during half a century of marvel- lous growth and prosperity. Mr. Chamberlain points, then, to facts such as these: That sixty years ago the United Kingdom was practically self feeding, while to-day more than half its meats and more than two-thirds of 'its grains are of foreign origin. That in 1840 it purchased from abroad only 23,000,000 hun- dredweight of food of all kinds while now it purchases 304,000,000 hundred weight. That this change is by no means altogether because of the 58 I'HB TAKll I . iiinv.isr pf population, but also because of the decrease of homo production, it sixty years the population has Increased by 58 per cent while the foreign food bill lias increased by 1,180 per cent. Also in thirty years the area planted in wheat has de- creased by 26 per cent, and that in vegetables has decreased by 14 per cent. That the farm profits of the kingdom, which were nearly £47,000,000 a year before free trade, have been reduced under free trade to less than £15,(KK).(HM>. That of Great Britain's enormous Import trade, so greatly boasted by free traders, one half consists of food, drink and tobacco. That the industrial imports of the kingdom are declining*, baying been £7 5s. a head in 1871-'75, and being now only £0 13s. That during the last century, while exports have increased only from £2 9s. to £6 14s. a head, imports have at the same time increased from £1 19s. to £12 lis. a head. That while the decennial increase of population was 15 per cent in 1821-'31 and 11 *4 per cent in 1831-'41, before free trade, it was only 8 per cent in 1881-'91 and less than 10 per cent in 1891-1901. under free trade. That these and other similar facts and figures indicate an unhealthy state of affairs, which must be remedied if hopeless decline of British greatness is to be avoided. This last named is not a fact of statistics. It is a deduction made by Mr. Chamberlain and by those who take his view of the case. It is, however, scarcely denied by the free traders. DEMOCRACY AND PANIC PERIODS. [From Philadelphia Press, July 13, 1904.] All our worst panic periods have come, not after a free trade tariff actually adopted, but after Democratic success and free trade agitation. What has been worse in the memory of men. now liv- ing; than the terrible grinding years from 1875 to 1878, with the strike summer of 1877 between? These years followed a Demo- cratic House, elected by a tidal wave in 1874. No turn of the tide came until the political tide turned. — The Press, June 28. A wide range of our Democratic friends in various news- papers are worried over this paragraph. The panic of 1873, they aver, assert and reiterate, came out of a Republican sky. So it did. The Republican party was in full control when Jay Cooke & Co. put up its shutters in September, 1873. This was a financial smash. A speculative craze brought a speculative crash. A gold crash had come in September, 1869, and recovery followed. A stock crash came in September, 1873. A crash in stocks may come without affecting general business. In 1901 there was a headlong fall in stocks, failures and liquida- tion, but the general trade of the country was not affected. In 1873, the mere failure of one great railroad system, not yet com pleted, need not have brought a long period of depression. Recovery should have followed. It did not. In 1874 a Democratic tidal wave swept the country. Free trade was talked everywhere. The currency was attacked. The Democratic party allied itself in all the Western States with the greenback craze. Resumption was assailed. When the resumption act was passed by the Republican party it was attacked by the entire Democratic party. East and West it was denounced as "Sherman sham." The Democratic party challenged confidence in the gold value of the greenback. It straddled. It nominated for President a free trader, though a hard money man, Tilden. It nominated for Vice-President a free trader and a soft-money man, Hendricks. Eastern Democrats favored a gold value for all v currency, but attacked paper money. Western Democrats demanded more paper money. The party was divided as it is now and, as now, its new leaders in 1876 and in 1880, anxiously sought to persuade the public to forget the recent financial errors of the party. From 1874 to 1878 this Democratic policy depressed all busi- ness and destroyed trade. The panic of 1873 had come and gone. The price of stocks recovered in the Winter of 1874. Trade picked up. Failures fell in amount to a normal year. After the election of a Democratic House in 1874 stocks fell and failures increased. As Democratic greenback agitation went on, opposed by Eastern Democratis, but urged West and South, as with free THE TARIFF. 59 silver, worse came. In 1877 shares went to their lowest point. In 1878 aggregate failures exceeded those of 1873. The total of liabilities has never been exceeded but once, in 1893, after the hist election of Grover Cleveland. Worse years than 1877 and 1878 the country has never known. They were years, as every one remembers, of the end of the greenback and the beginning of free silver, of agitation for Dem- ocratic free trade and its outspoken support by the Democratic party. The Republican party in 1879 resumed gold payments and prosperity came when Bland and every other Democrat was pre- dicting disaster. Democratic free trade was met by the assertion of Republican protection. In 1880 this was the chief issue, and when it was won prosperity came like a flood. "No turn of the tide came until the political tide turned." Tariffs and Revenues, 1790 to 1904. Years in which low tariffs and protective tariffs, respectively, have been in operation in the United States, shotving the excess of expenditures or receipts of the Government in each year. [Compiled from official statements of the Treasury Department.] Low tariffs. Protective tariffs. Fiscal year— Deficit. Surplus. Fiscal year— Deficit. Surplus. $1,312,499 1813 $17,341,442 23,539,300 17.246,744 $4,599,909 1814 ( War pe- 1793 805,993 1815 1816 f riod. 1794 865,917 1,195,066 $16,480,630 1825 5,983,640 1796 2,586.879 2,680.154 292.909 1826 8,222,575 1797 1827 6,827,198 1798 1828 6,369,087 1799 1,749,004 1829 9,643.574 34,778 3,541,831 7.019,542 3,111.811 3.188.399 4.546.344 6.110,753 8,043,868 7,999,249 1830 9,702.008 1801 1831 13,289.004 1802 1832 14,578,500 1803 1833 10,930,874 1804 .. 1843 3,549,791 1805 1844 6,837,148 1806 1845 7,034,278 1807 1846 (half year).. f.214,392 1808 1862 417,650,981 606,639.331 621,556,130 973.068.131 1 1809 2.507,273 1863 1810 909,461 6,244,594 1864 1811 1865 1812.. . 10,479,638 1866 927,208 1817 13,108.157 1,566.543 3,091,370 1867 116,317,354 1818 ):::: 1868 6 095 320 1819.. . . 1869 35,997,658 1820. 444,685 1.276,173 1870 102.302,829 1821. . 1871 91,270,711 1822 5,231.996 5,834,036 1872 94.137,534 1823 1873 36,938,348 1824 892,489 1874 1.297,709 1834 3,164,365 17,857.274 19,958,632 1875 . 9 397 379 1835 . . . 1876 24.965,500 1836 "l2.289,'06i' 7.562,152 1877 39,666,167 1837 .... 1878 20,482,449 1838 1879 5,374,253 1839 4,585.967 1880 68.678.864 1840 4.834.402 9,621.657 5,158.689 1881 101.130 658 1841 1882. .. 145.543,811 1842 1883 132,879,444 1846 (half year).. 1,219.392 (.Warpe- j" riod. 2.644.506 4.803.561 5.456.563 13.843,043 18.761,886 6,714,912 5.330.434 1.330.904 1884 104,393,626 1847 28,453,381 12,778,001 1885 63,463 775 1886... 93,956,589 1849 1887 103 471,098 1850 1888 119.612,116 1851 1889 105.053 443 1890 105,344,446 1853 1891 37.239,763 1854 1892 9,914 454 1855 1893 2 341,674 1894 69,803,261 38,047.247 89.111,560 1857 1898 1 War pe- 27,327.126 16,216.492 7.821,276 25,173.914 42,805,223 25,203,246 " 18,052,455 1899 1859 1900 79,527,060 1901 77,717,984 1861 1902 91.287.376 1903 . . . 54,297,667 1896 1897 GO THE i \ Kill-. THE PANIC OF 1893-94 WAS NOT DUE TO CROP FAILURES. The assertion has been persistently made by the apologists for the Wilseii-(ienn;Mi tariff t ii.it the general depressed financial and Industrial conditions and shortage of money then existing were dne to short Crops in 1892, 1803, and 1894 and were not Chargeable lo the tariff law. This assertion, while absolutely untrue, is worthy Of earofnl attention boeanse of its misleading character and because of the fact that without investigation the statement appears plausible. It is possible to show, for example, that the corn crop of 1892 was l<><> million bushels less than that of 1891; that the wheat crop of 18M2 was !><; million bushels less than that of 181)1. ami that the oat crop of 1892 was 77 million bushels below lhai of IN'.tl ; and this statement unaccompanied by any other facts or figures niight give some color to the claim that the de- pression of 1N!»3 was dne to some extent at least to the short crops in 1892. But a further examination of the figures of pro- duction lor a term of years shows the absolute falsity of this assertion. The table given below shows the production, farm value, and value per bushel of corn, wheat, and oats in the United States from 1885 to 1903. It will be seen from an examination of the table that while it is true that the corn, wheat, and oat crops were less in 1892 than in 1891, they were in each case more than those crops in 1890. The corn crop of 1892 was 1,628,464,000 bushels, as against 2,000,154,000 bushels in 1891, and this is urged as one of the causes of the financial depression of 1893 ; but an examination of the table will show that the corn crop of 1890 was only 1,489,790,000 bushels, as against 2,112.892,000 bushels in 1889. As a drop of 623 million bushels in the corn crop of 1890 as com- pared with the preceding year caused no panic or financial depres- sion in 1891, how can it be possible that a drop of 432 million bushels in 1892 was the cause of the panic in 1893? The same general line of facts holds good with reference to wheat and oats. While it is true that the wheat crop of 1892 was 96 million bushels below that of 1891, it is also true that the wheat crop of 1890 was 91 millions below that of 1889 and no panic ensued ; and similar conditions are apparent with reference to the oat crop of 1890. An examination of the column showing the average farm value per bushel of these crops, which accompanies the statement of quantity produced, is suggestive. This shows that the farm value per bushel of corn, which was 50.6 cents in 1890, practically 40 cents in 1891 and 1892, moved steadily downward until it reached 21.5 cents in 1896 under low tariff ; that the farm value per bushel of wheat, which in 1890 and 1891 was above 83 cents, had fallen to 49 cents in 1894 ; and the farm value of oata, which in 1891 and 1892 was 31.5 cents per bushel, was 18.7 cents per bushel in 1896. Production, farm value, and value per bushel of corn, wheat, and oats, 1S85 to 1903. Corn. Wheat. Oats. Total. Total* Total. Year. Production. Farm value per bushel Dec. 1. Produc- tion. Farm value per bushel Dec. 1. Produc- tion. Farm value per bushel Dec. 1. 1885 1886 • 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 2.523,648,312 2,244,176,925 Cents. 32.8 36.6 44.4 34.1 28.3 50.6 40.6 39.4 36.5 45.7 25.3 21.5 26.3 28.7 30.3 35.7 60.5 40.3 42.5 Bushels. 357,112,000 457,218,000 456,329,000 415,868,000 490,560,000 399,262,000 611,780,000 515,949.000 396.131.725 460,267,416 467,102,947 427,684,346 530,149.168 675,148,705 547,303,846 522,229.505 748.460,218 670.063,008 637,821,835 Cents. 77.1 68.7 68.1 92.6 69.8 83.8 83.9 62.4 53.8 49.1 50.9 72.6 80.8 58.2 58.4 61.9 62.4 63.0 69.5 Bushels. 629,409,000 624,134,000 659,618,000 701,735,000 751.515,000 523,621,000 738.394,000 661,035.000 638,854,850 662,036,928 824.443,537 707,346.404 698,767,809 730,906,643 796,177,713 809,125,989 736,808,724 987,842,712 784,094,199 Cents. 28.5 29.8 1887 1888 1889 1890 30.4 27.8 22.9 42.4 1891 1892 1893 1894 31.5 31.7 29.4 32.4 1895 19.9 1896 18.7 1897 1898 1899 1900 21.2 25.5 24.9 25.8 1901 1902 1903 39.9 30.7 34.1 THE TARIFF. 61 Coal Production and Consumption in Protective United States and Germany and Free-Trade United Kingdom from 1860 to 1902 — Evidence of Much Greater Business Activity in the Protective Tariff Countries. This table shows the production and consumption in the two protective-tariff countries, the United States and Germany, com- pared with that in the one low-tariff country, the United King- dom. Coal consumption is an important measure of manufacturing activity and growth, since it is the chief supply of power for man- ufacturing and transportation. It will be seen that the consump- tion of coal in the United Kingdom only increased about 44 per cent, from 1875 to 1902, while that of Germany increased about 200 per cent, and that of the' United States nearly 500 per cent. The importance of these figures of coal consumption is very great as a measure of manufacturing activity. This statement of rela- tive increase in consumption in the three countries is especially important because in most cases the figures of production only are shown, while the fact that the United Kingdom exports a large share of her coal production makes a comparison based upon figures of production misleading. It is the consumption which measures the activity in manufacturing, and these figures of con- sumption in the protective and free-trade countries, respectively, are worthy of careful attention. Coal production and consumption in the United Kingdom, Ger- many and the United States for the years named. United Kingdom. Germany. United States. Years. Product'n Consump'n Product'n Consump'n Product'n Consump'n gross tons gross tons metr. tons metr. tons gross tons gross tons @ 2240 lbs. @ 2240 lbs. @ 2204.6 lbs. (& 2204.6 lbs. © 2240 lbs. @ 2240 lbs. 1860 80,043,000 * 16,731.000 1 14.440,000 14.494,000 1865 98.151,000 * 28,553,000 >No data. 20,310,000 20.861,000 1870 110,431.000 * 34,003,000 s 32.863,000 33,051.000 1875 131.867,000 114.044,000 47,804,000 47.562.000 46,686.000 46.604.000 1880 146,819,000 123.190,000 59,118,000 57,002.000 67,998.000 67.855,000 1885 159.351,000 128,585,000 73,676.000 70.729.000 99.250,000 98.752,000 1890 181,614.000 142.955,000 89,291,000 90.798.000 140.867,000 139,627.000 1895 189,661.000 146.768,000 103,958,000 105.876.000 172,426.000 170,097,000 1900 225.181.000 166,786.000 149,788.000 149.804.000 240.789,000 234.781.000 1901 219,047.000 161,271,000 153,019,000 152,138.000 261,875,000 256.412,000 1902 227,095,000 166,365,000 150,600,000 148,785,000 269,277,000 265.791,000 ♦Figures for the German Customs Union. (The amount of British bunker coal not found prior to 1875.) Groicth 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 1868 to 1895, and annually from 1896 to 1902, in tons of 2,000 pounds. [From reports of the United States Geological Survey.] Year. United States. Great Britain. Germany France. Total pro- duction of the world. Per cent of U. S. •1868 Short tons. 31,648.960 36,806,560 52,288,320 76,157,944 111,159,795 157.770,963 193,217,530 191,986,357 200,229,199 219,976,267 253,741,192 269.684,027 293,299,816 301,590.439 Short tons. 115,518,096 123.682.935 149,303,263 164,605.738 178,473.588 203,408,003 212,320,725 218,804,611 226,385,523 226,301,058 246,506,155 252,203,056 245,332,578 254,346,447 Short tons. 36,249,233 37,488,312 52.703,970 65,177,634 81,227,255 98,398.500 114,561,318 123,943,159 132,762,882 144,283,196 149,719,766 164.805,202 168.217,082 165,826.496 Short tons. 14.697,236 14.530,716 18.694,916 21,346,124 21,510,359 28,756,638 30,877.922 32.167.270 33.938.987 35,656,426 36,215,026 36,811,536 35,596,536 33,286,146 Short tons. 221.035,430 238,621.068 308,419.177 369.413,780 447,783,802 563,693,232 644,177,076 664,001,718 697.213,515 738,129.608 801,976,021 846.041,848 869,037,199 14.32 15.42 16.95 20.62 24.82 27.99 29.98 28.92 28.72 29.80 31.63 31.88 33.76 1870 1875 1880 1885 1890 1895 1896 1897 1898 1899 1900 1901 1902 62 I III i \uu i . TARIFFS AND TRADE BALANCES, 1790-1903. Years in which low tariffs and protective tariffs, respectively, have been in operation in the United states, shouting the excess <>f imports or em ports in each year and the total excess of im- ports or exports under each system. [Compiled from official statements of the Bureau of Statistics.] L»w tariffs Fiscal Year Protective tariffs Fiscal Year Excess of imports Excess of exports Excess of imports Excess of exports 1790 $2,794,844 10,187.959 10.746,902 4,990,428 1,556,276 21,766.396 22.861.539 24 084,696 7,224,289 403,626 20.280,998 18,342,998 4,376,189 8,866,638 7,300,926 25.033,979 27.873.037 30.156.860 34.659,040 7,196,767 18,642,080 1813 $5,861,017 1791 1814 $6,037,559 60,483,621 65,182,948 1792 1815 1798 1816 1794 1826 549,023 1795 1826 5,202,722 1796 1827.... 2,977.009 1797 1828 16,998,873 " 1798 1829 846,736 8,949.779 1799 1880 1800 1831.... 23,589,527 13,601,159 13,619,211 1801 1832 1802 1833 1803 1843... 40,392.225 3.141,226 1804 1844 1805 .... 1845 71,44,211 41,65,409 1806 .. 1846* 1807 1862 1,313,824 1808 1863 39,371,368 167,609,295 72,716,277 86,952,544 101,254,955 75,483,541 131,388,682 43,186,640 77,403,506 182,417,461 119,656,288 1809 1864... . 1810 1865 . 1811 $7,916,832 1866 1812 .. 38,502.764 11,578,431 28,468,867 16,982 479 4,758,331 1867 _ 1817 1868 1818 1869 1819 1870 1820 1871 1821 75,489 1872 1822 18,521,694 4,155 328 3,197,067 6.349,485 21.548,493 52,240 450 19,029,676 1873 1823 .... 1874 18.876,698 1824 . 1875 19,562,725 1834 1876 79,643,481 151,152,094 257,814,284 264,661,666 167,683,912 259,712,718 25,902,683 100,658,488 72,815,916 164,662,426 44,08s,694 23,863,443 1835 1877 1836 1878 . 1837 1879 1838 ... 9,008.282 1880 1839. 44,245,283 1881 1840 25,410,226 1882 1841 11,140,073 1883 1842 3,802,924 1884 1846. ... 4,165,408 1885 1847 34,817,249 1886 1848 10,448,129 855,027 29,133,800 21,856,170 40,456, 1«7 60,287,983 60,760,030 88,899,206 29,212,«87 54,604,582 1887 1849 1888 28,002,607 2,730,297 1850 1889 1851 1890 68,618,275 39,564,614 202,875,686 1862 1891 1863 1892 1854 1893., 18,735,728 1855 1894 237,145,950 615,432,676 529,874,813 644,541,898 664,592,826 478,398.453 394 422 442 1856 .... 1898 1857 1899 1868 8,672,620 1900 1859 38,431,290 20,040,062 69,756,709 1901 1860 1902 1861 1903 1895 75,568,200 102.882,264 286,263,144 1896 1897 Total... 1,068,872,161 553,917,230 Total... 1,371,397,064 5,470.423,925 *Half year. Net excess of IMPORTS under low tariffs $514,954,8®! Net excess of EXPORTS under protective tariffs 4,099,026,861 Net excess of exports over imports from 1789 to March 1, 1897 380,028,497 Net excess of exports over imports from March 1, 1897, to March 1, 1904 3,594,829,82« TIlK TARIFF. 88 Killed by Lack of Protection. [From St. Thomas (Ontario, Canada) Daily Times of April 14, 1904.] The directors of the Canada Woolen Mills Company have de- cided to close their business and sell out their plants at Hespeler, Carleton Place, Waterloo, and Lambton Mills, throwing 700 people out of employment and destroying an industry representing a million dollars capital. The directors have been losing money because of the preference given to British goods. Those 700 em- ployees must live somewhere, and will probably be forced to leave the country. Loss of population of this class means loss to every kind of business; hence a loss in wealth to the province. The question for our lawmakers and people to consider is : Would it not be better to protect this industry sufficiently to keep these people in employment here, rather than allow them to be forced out? The strength of a nation is its people; the more industrious the people, the more strength and wealth. The Tariff and Wages. Foreign workmen flock to the United States because of the high wages paid here, but the large number that come help to reduce wages. At Turin, in Italy, according to the consular reports, the rate of wages paid by the city for day laborers is from 40 to 60 cents a day. Bricklayers receive from 80 cents to $1, carpenters from 60 to 70 cents, and painters from 40 to 50 cents, not one-third of, the average rate paid in this country. The Italian workman can earn enough in the United States during the summer to go home and live without work during the winter, as comparatively little is required for his sustenance in a warm climate. But low wages are not confined to Italy. In London, for instance, the pay of a policeman at the start is $0.25 a week, and that is increased yearly by 25 cents until the amount reaches $8.14 a week, and that is the limit. In this country, in New York, a patrolman receives $25 a week, or three times as much as the experienced member of the British force. The pay is less on the Continent of Europe than in Great Britain. With such low wages and all the advantages in machinery that the workmen in the United States have, nothing could prevent a similar reduction of wages in this country excepting the tariff. That is why the Republican party will stand steadfastly for the protective tariff, and will only make changes after careful investigation and certain knowledge that the changes would be justified. Wages are much lower in Canada than in the United States, and that has to be taken into consideration in any negotiations for a reciprocity treaty. s The wage question is of the greatest importance in this country. There will be no legislation to cause any reduction, such as took place under the last Cleveland Administration, unless the Democrats are again returned to power, which is improbable. Protection and Wages in Germany. The Spanish Economist and Financier has the following in a recent issue : — The Chamber of Commerce of Essen, Germany, has' just pub- lished an interesting- memorial on the influence of protective tariffs on wages and on the conditions of the working- classes. Referring to the district of Essen, the Chamber establishes the fact that the average wages, which were 3.30 marks in 1871, were 3.89 marks in 1875, but went backward till they descended to 3.30 marks again. In 1879 a system truly Protectionist was inaugurated. From that time on wages went up from 3.57 marks' in 1882 to 3.71 marks in 1888, 4.06 marks in 1892, 4.10 marks in 1895, and 4.78 marks in 1900. The conclusion drawn by the Chamber of Commerce experts from the facts cited is that wages remained practically at a stand- still during the years 1875-1879, just preceding the Protectionist era, while the advance during the later, or protection, period was' fully 58 per cent. To meet the objection that foods have gone up faster than wages, thus neutralizing the increased purchasing power of the laborer, the Chamber shows that the foods consumed by the laboring classes dropped as follows': Bread, 20 per cent; potatoes, 29 per cent; while beef increased only 5 per cent; veal, 21 per cent, and pork, 27 per cent. 64 IM'IMKTAL GROW 'I H IN l\oi.\\l> \Mi UNITED STATES. INDUSTRIAL GROWTH IN ENGLAND AND UNITED STATES COMPARED. In ;in article on occupation :is a test of prosperity, the Fort- nightly Review presents statistics to show that during the twenty years. 1NN1 and l!iol, the increase in the Dumber of persons en- gaged in the leading industries of Great Britain lias not in- creased in proportion to the population, and on this showing it bases an argument in favor of tariff reform. Without entering into the economic discussion which is the occasion of the Fort- nightly Keview's article, it is of value to compare the statistics of Great Britain with those of the United States in this matter of the number of persons engaged in the leading industries. Such a comparison is in every way gratifying to this country. It shows conclusively that the industrial growth in the United States has been much more rapid than in England in the past twenty years. In # that time the percentage of increase in popula- tion in the United States has been 52 and in England about 25, and yet in eight selected industries the increase in the number of persons engaged in them has been in the United States 56 per cent and in England only 6.7 per cent. In other words, in these industries the number of persons engaged has increased more rapidly than the population in the United States, while in England the increase is very much less than that in the popula- tion. In order to show this more clearly the following tables are given to exhibit the number of persons engaged in eight in- dustries in 1880 and 1900 in the United States and in 1881 and 1901 in England and Wales, with the percentages of increases in both instances : Number of persons engaged in eight industries in England. 1881. 1901. In- crease. Perct. of inc. 552.000 224.000 68.000 84,000 201,000 13,000 65.000 240,000 582,000 251,000 93,000 122,000 216.000 5,000 39.000 236,000 30,000 27,000 25.000 38,000 15.000 *8.000 *26,000 *4,000 5.4 12.0 36.8 45.2 7.4 *61.0 Silk *40.0 ♦1.6 Total. . . 1,447,000 1.544.000 97,000 6.7 25.0 ♦Decrease. Number of persons engaged in eight industries in the United States. 1880. 1900. In- crease. Perct. of inc. 185.000 111,000 24,000 63.000 159.000 484 31,000 105,000 303.000 143.000 53.000 100,000 266,000 3,283 65,000 126.000 118,000 32,000 29,000 37,000 107,000 2,799 34,000 21,000 62 28 120 59 67 578 109 20 \ 678,484 1.059,283 380.797 56 52 THE TARIFF, 65 SHARE OF THE IRON AND STEEL MANUFACTURES PRO- DUCED BY THE UNITED STATES STEEL CORPORATION. The table which follows shows the share of iron ore and iron and steel produced in the United States in the calendar year of 1002, by the United States Steel corporation and by independent companies. This table has been prepared with great care by the Secretary of American Iron and Steel Association, Mr. James M. Swank, and its accuracy cannot be called in question. Mr. Swank is and has been for many years an accepted authority in the United States on all matters pertaining to iron and steel production and this statement prepared by him is Vherefore of special value in in- dicating the share of iron and steel product of the United States produced by the United States Steel corporation and by independ- ent companies, respectively. It will be seen that of the finished rolled products of iron and steel produced in the United States in 1002. 50.8 per cent was produced by the United States Steel Corporation and 40.2 per cent by independent companies. The table is especially important in its relation to the question of control of prices by this greatest of industrial corporations. The fact that practically one-half of the iron and steel products of the United States are produced by independent companies in com- petition with this single organization, suggests the impracticabil- ity of control of prices by even this greatest of the manufacturing combinations of the United States. A similar table prepared by Mr. Swank for the year 1001 shows similar results. The table for the year 1003 is not yet available and the table covering con- conditions in 1002 is presented as the latest available data.' Statistics of the United States Steel Corporation for 1902. [From Bulletin of American Iron and Steel Association, Jan. 25, 1904,] With the single exception of iron ore the statistics presented below have been carefully compiled from the returns of production made to the American Iron and Steel Association for the whole of the calendar year 1902 by all the constituent companies of the United States Steel Corporation and by all other iron and steel manufacturing- companies. The statistics of iron ore shipments and production by the Corporation in 1902 have been obtained from the Corporation itself. Other statistics of iron ore production have been obtained from the Census Bureau, and other statistics of iron ore shipments have been obtained from the Iron Trade Review, of Cleveland, Ohio. Iron ore shipments and production in the calendar year 1902. Gross tons. By U. S. Steel Corporation. By inde- pendent companies. Total ship- ments and production. Percentage of U.S. Steel Corporation. Shipments of iron ore from the Lake Superior re- gion in 1902.. 15,836,806 16,063.179 11.734,315 19,288.256 27,571,121 35,351,435 57.4 Total production of iron ore in 1902 45 4 Iron and steel actually produced in the calendar year 1902. Gross tons. Production •i.vU.S. Steel Corporation. Production by indepen- dent comp's. Total production. Percentage of U.S. Steel Corporation. Bessemer, basic, and low- phosphorus pig iron Spiegeleisen and ferro- manganese 7,733.724 172,718 69,088 4,698,034 40,263 5,107,480 12,431,758 212,981 5.176.568 62.2 81 1 Forge, foundry, malleable Bessemer, and all other kinds of pig- iron 1.3 Total pig- iron, including 9.845.777 17,821,307 manganese 7,975.530 44.8 Bessemer steel ingots and 6,759,210 2,984.708 2,379,153 2,703,021 9,138,363 5,687,729 74.0 52.5 Open-hearth steel ingots and castings Total Bessemer and open- hearth steel ingots and castings 9.743.918 5,082,174 14,826,092 65.7 Bessemer steel rails Structural shapes 1,920,786 753.481 1,583,865 1,126,826 1.701.700 1,014,606 546,845 1,081,544 447,467 3.766,996 2,935,392 1,300,326 2.665.409 1,574,293 5,468,696 65.4 57 9 Plates and sheets, includ- ing black plates for tinn- ing 59.4 Wire rods All other finished rolled products, including bars, skelp. cut nails, open- hearth steel rails, iron rails, etc 31.1 Total of all finished rolled products 7,086,658 7,122,354 6,857,458 3,859.892 13.944,116 10.982,246 50.8 64.9 Wire nails, kegs of 100 lbs.. i 66 I III I \ Kl 1 1 . rrioon of BotKM ami Shoes Under the Wilson and Dlngley Tariffs— The Duty on Hides Did Not Affeet Prices. This table shows the wholesale prices of boots and shoes ol various grades, in each quarter of each year from th<> be ginning of 1897 to 1004. The Dingley ijct placed a duty of l: per cent on hi d'C^?*^ a^h+i cj-ci?* 3 ' o'-'S.S?-^ dH^i** cxi 11118888 £<*£ S*1 THE TARIFF. os a ^^ 2 ><->. 1m' 06 cd »M 3 St a !k S J u | » tf CI) 90 K O Pi 3 s«. S «X =5. si en £ 2 O 3 w ^ 4) ft ~ H «i H b £ a u p =* X isi ©OS 38 g'8 S8S sss ©m in t~ £8 00 MCS^NXNCDiSSOlOSO^l''* monww»MWceH(oor"N co o 3; > so* * co-HiNeososomt-i:» i^QCtDCOO^tDaxoOOON r so* - ®*. -" x* r-* -*" co t-* o m" 10* -*' £• l»5~<00in>-lSDX!MSD«CO £ s s 3 ~ss e-i eg in in in os i-K »»-• 88 Sg.S S § S3 cost wmoj p7 th eo'os* *» ** eo co f- os o eo w co - 1 co 10 °° "s $ 00 g» so co go o 00 mm ** < Heoco® lf s* c, eococortjoin"^ ,c ^ x^^Min^^ n — ' ^ w oo*" 5 £ $8 8 * £3 Sig^ES ^ °° CO CO M»<5 CO -( as ■** t> ©1 e* so ©8 8^22 S gs rt **-3 *3 l 1 1- co w co co co in S -1 S : 0) ; . . > ■ u ■ O ifil * :l o : o a)"-s a> cd •gs-c-c 8 £1,55,2 3 c3 C3 c3 E . . c3 c3 B g Sj >> co '_. i» CD t>" i - Hi FiD>»CB . 81 -T « J) c8 cp &'-' ^2 S?E S 1 ^^ o «D^a>9fc»^K-"ai «U i|oS ^ o Jg-a 3 -m ■hc£ 0)00 (j, § s O O ft o CD ft 79 27.873.*37 SO.lOO.Xill S4.660.V40 7.1M.TS7 18.042.0.10 M.oiri'w *,0ST.5*i> 66.483.521 60,1X3.948 11.078.4.11 28.4UX.KU7 16.1W3.479 4.758.SS1 1790 17*1 17*2 IT** .., 17*4 IT** ._ 17** 17*7 17*8 17»* ixtt 1M1 18*2 .... 1803 18*4 1X*6 18*7 '.'"".'.'.'. 1808 180* 181* .„ 1811 1812 IXIS 1814 „ 1816 1816 1817 1818 Wuhlnjton (Apr. SO. 1T89, to Mar. 4, 1T*T). John Adams (Mar. 4. 1797. to Mar. 4. 1801). Jaffonon (Mar. 4. 1801. to Mar. 4. 180S) .'. . Foruiatlvopwlod. MadUon (Mar. 4. 1809, lo Mar. 4. 1817; •7.MU.8S2 6,801,017 1 Protective tariff V (Joljr 1. 1813. to Job* J SO. 181*). n,«H to Mar. 4, 1820 1X20 1*21 1X22 Low tariff (June so. 18,031.6*4 .4.l6a,.128 3.197.097 J. Q. A. lam« (Mar. 4. 1826. to Mar. 4, 1x29) V64V.023 umjm 1825 1X2S 6,303,723 182X 16.9*8.873 1828 1X29 18S* - Trotcetlr. tariff (Jna* so. 1824. to Mar. 8. 1XSS). 346.736 8,949.77* 1831 1882 1855 1834 1830 1856 '18J7 1888 188* 18*0 ' 1841 1843 184S 1844 28.689.627 13.001.15il 18,619,211 lt.:H!l.4R6 21,648,49:1 02.240.400 19.029.07B JiirkaoB (Mar. 4. )--"■>. %$£&& lx:;2 18SS 18S4 1836 1880 18.17. 1S3X 1839 1840 1X41 1X42 1843 Van Rnren (Mar. 4. 1837, to Mar.4, 1841).. . Low tariff (Mar.i.lMS. 44.245.88S 26.410.22il "iss;»M 40.392.220 3.141.220 84.S17.249 W. H. Harri«on-Tyl« 11.140.071 4.1846) ., 7.144.811 8,3*0,817 1845 18« 1847 1K4X 1M9 I860 .'. f (A OK. .10. li«s,toD*c. I'olk (M»r. 1. 1846. to 1846 Low tariff* (Dai. 1. 1 184*. to Apr. J. 1S«I). Tajlor-Filloio™ (Mar. 10.448.129 XOT..027 291S3.800 21.X5tS.l70 40.466,107 60.387.91*! 60.760.030 38.890,306 39.313.887 64.604.582 38,43'i!29t 20.040,063 69.756.709 1X.VI 1864 1850 1X56 1867 1868 186* 1860 1861 18S3 1363 1864 ...... 18*5 1866 1867 I8S8 1869 1870 1871 1873 1873 ....... 1874 1875 1X86 1877 .... 1878 I8T9 1880 1881 I8B2' 1X83 1X84 18K5 18X6 ...... 1887 mas ;;;"' 1890 1891 1892 1893 1894 1895 1896 1897 1899 ..:::. 1900 1901 1908 1903 Mar 4.1857) 1864 Low tarlffa (Dm. 1. 184U. to Apr. 1. 18*1). *mSm Buchanan (Mar. 4. 1867. to Mar. 4. Ixtsl). ' 1867 1868 1859 18*0 "1861 1862 1863 1864 1865 1866 1867 . 1868 1870 '.'..'.'.. 1871 187* ....... 1873 1874 1875 , 1876 1877 1878 1879 .. . 1880 . .. 1881 ... . 1882 ... . 1883 , 1884 1885 1887 ;:;;:: . 1888 1889 1890 1891 . 1891 1893 1894 1895 ... . . 1896 1897 1898 1899 ' 1901 .'.'.'.'.'. 1908 1903 .. . Uncoln-Johnson (Mar. 4. 1861. to Mar. 4.1899) ♦ l.SIS.834 39.371 .36X I57.609.29.-. 72.716.877 80.952.544 101.254.955 75.483.S41 131.3X8,683 43.186.640 77.4011.506 1X2.417.191 119.656.28X "" 19.562.725 Urant (Mar. 4. 1869. to Mar. 4. 1877) i8.876'.0»8' Haves (Mar. 4. 1877. to Mar. 4. 1881) Oartleld-Arthur (Mar. 4. 18X1. to Mar. 79.643.481 151.153.094 257.814.834 364.661.666 167.683.912 259.712.718 85.902.683 100.658.488 72.815.916 ' 164.662.426 44.088.694 83.863.413 Protective tariff* U,,M.,„,. W A«* Cleveland (Mar. 4. 1885. to Mar. 4. 18x9) Benjamin Harrison (Mar. 4. 1889. to Mar. jw.tmow 2.780.877 68.518.375 39.564.614 803.875.686 837.i45.950 76.568.300 102.882.264 386.363,144 615.433.676 539.874,813 544.541.898 664.593.886 478.398.453 394.488.443 •3.584.071.930 Cleveland (Mar. 4. 1893. to Mar. 4.1x97). 18'.735.728' I Low tariff (Aug-. 88. J- 1894. to July 84. 1897). 1897. to Sept. 14.1901) i Protective tariff Roo«evelt (Sept. 14, Total THE TARIFF. 69 ! expenditures of the United Stake Government from 1791 tol90S. (From official reports at U» Unite! SUM rtovert 70 THE BRITISH I \UIIK. THE BRITISH TARIFF. [Hon. J. T. McCleary, of Minnesota, in Congressional Record.] Since "LS40 Great Britain lias collected her duties on imports under the policy advocated by the' Democratic party. Let us see how the policy is operated there and what the results are. For the information at those who may not have convenient access to the Statesman's Year Book, I submit the following table Showing the sources of revenue of the government of Great Britain for national purposes for the fiscal year ending March 31, 1908, the latest for which data can be had. (In the Year Book the amounts are expressed in pounds sterling. A pound sterling is worth a few cents less than $5. For convenience of compu- tation I have called it exactly $5 in translating the English money into American money for the purposes of this table.) Customs duties: Duties on exports— coal $9,958,835 Duties on imports: Tobacco 62.257,365 Tea 29,877,410 Sugar, glucose, etc 22,393,535 Grain, etc 1 1,733,980 Rum ■ 11,149,365 Wine 7,619,280 Brandy 6,405,57r> Other spirits 6,143,965 Raisins 1,024.555 Coffee 893,140 Cocoa 774,605 Currants 577,620 Other articles 1,495,120 Total revenue from customs duties 172,304,350 Excises: Spirits 90,821,795 Beer 66,319,450 Other sources 3.598.115 Total revenue from excises 160,739,360 Estate, etc., duties: Estate duties 48,501,810 Legacy duty 15,008.965 Succession duty 4.828.365 Corporation duty 219,235 Total revenue from estate duties, etc 68558.375 Stamps (excluding fee stamps, etc.): Deeds 19499,915 Receipts 7,642,3 1 5 Bills of exchange 3.498.545 Companies' capital duty 3123,795 Patent medicines 1,666,855 Insurances 1437,745 Bonds to bearer 1,051 , 145 Licenses, etc 858,685 Other sources 21319,015 Total revenue from stamp taxes 41*093,015 = Land tax 3803,770 House duty $168,855 Property and income tax 193^29,230 Total revenue from taxes 648J966.455 The above does not include the revenue received from the nost- office and the telegraph, from the crown lands, from interest on Suez Canal shares owned by the British government, from fee stamps, from the mint, from the Bank of England, and from various other sources, amounting in all to $108,103,490, nonejof which can properly be regarded as taxes. Thus the grand total of national revenue in the British Isles rpr the fiscal year ending March 31, 1903, from all sources except money borrowed, was $757,067,945. * It is to be remembered that these are the revenues of the national government for meeting national expenses, such as in- trest on the public debt, the support of the army and the navy, THE BR] MM l I ABIFF. 7| and for civil administration, including the post-office and the tele- graph, It does not include the sums raised for local purposes, except a few small sums, mainly those in the way of government aid to schools. Nor does it include sums raised for the support of colonies, most of the colonies being self-supporting, and many of them being practically self-governing. I have given these figures simply because in Great Britain is found the best exemplification in the world of "a tariff for reve- nue only," the goal toward which our Democratic brethren pro- fess to be headed. Several things are noteworthy. / In the first place, considering only national taxation proper (omitting direct payments to the government for direct services, like the postal revenues and such things), the total national reve- nues of Great Britain amounted last year in round numbers to $048,000,000, or about $10 per capita, while in the United States they amounted to $284,479,582 from customs, $230,810,124 from excises, and about $3,000,000 from other sources — in all to about $518,000,000, or less than $6.50 per capita. That is, with twice as maay people we collected for national purposes $130,000,000 less tlan did Great Britain. In other words, our taxation for national purposes is considerably less than half as heavy in' pro- portion to population as that of "free trade" England. By the way, in these indisputable facts there is very little com- fort for those who have a sort of vague notion that free trade as illustrated in Grjeat Britain would in some way mean freedom from taiation for national purposes. As a matter of fact, investi- gation shows that the cost per capita for the support of our na- tional government is smaller than that of any other civilized country in the world. In tie second place, it will be noted that the customs duties in Great Britain, including the export duty collected on coal, amount to about $4.30 per capita, while in this country the total amount of custons duties amounts to only about $8.50 per capita. In tie third place, the table above reveals how few are the articles going into Great Britain upon which the tariff duties are collected ; that is, how few are the articles the like of which they dc not produce in Great Britain, and consequently the enor- mous amount that must be produced on each of those few items. As a result, the rates of duty in Great Britain are very greatly higher than those in the United States. In the fourth place, it will be noted that many of these articles on which these enormously high rates of duty are laid are what may je regarded as necessaries of the poor man's table — tea, sugar, raisiis, coffee, cocoa, currants, etc. So that it is evident that the poor man feels every day as a great burden the British policy of "a tariff for revenue only." At a matter of fact, our people simply would not tolerate in timet of peace such burdensome taxation on the necessaries of life. Customs Tariff of the United Kingdom. [Retirn showing- the several articles subject to import and export dities in the United Kingdom, and the duty levied upon each aricle, according- to the tariff in operation upon the 1st of Au- gist, 1903, together with an account of customs drawbacks and cistoms charges. — Official,] Import Duties. Rates of duty. Articles. £ s - d - B >Sec. 7, Finance charin) ) ) Act, 1901. Tea the ft. 6 Tobacco, manufactured, viz. :— Cigars the ft. 5 6 Cavendish or Negrohead -.---. 4 4 Cavendish or Negrohead, manufactured in bond 3 10 Other manufactured tobacco, viz.:— Cigarettes 3 10 Other sorts 3 10 Snuff containing more than 131bs. of moisture in every 100 lbs. weight thereof 3 7 Snuff not containing more than 13 fts. of moisture in every lOOfts. weight thereof.. 4 4 Tobacco unmanufactured, viz. :— Containing 10 fts. or more of moisture in every 100 fts. weight thereof . . '. 3 o Containing less than 10 fts. of moisture in every 100 fts. weight thereof 3 1 Note.— The minimum weight of packages of tobacco allowed to be imported into the United Kingdom is not less than 80 fts. gross weight. Packages of tobacco must contain tobacco only, and under tobacco are in- cluded cigars, cigarillos, cigarettes, and snuff. Wine :— Not exceeding 30° of proof spirit the gallon 1 3 Exceeding 30° but not exceeding 42° of proof spirit 3 i» And for every degree or part of a degree beyond the highest above charged, an ad- ditional duty (i 8 The word "degree" does not include frac- tions of the next higher degree, Wine includes lees of wine. Additional :— On still wine imported in bottles 1 o On sparkling wine imported in bottles 2 6 Export Duty. Coal, cinders, etc., exported, viz:— Coal and culm the ton 1 Coke and cinders 1 Fuel, manufactured 90 per cent A rebate of the duty is allowed on coal, of export duty the value of which, free on board, exclusive on coal, of duty, is proved not to exceed 6s. per ton; and on fuel, the coal ingredient of which is proved not to be of a higher value than 6s. per ton. I. — General Customs Order No. 18, of 18th of February, 1904, Con- taining a List of Customs Duties and Drawbacks. The list published in this Order, embracing all the changes in the Customs Tariff of the United Kingdom, up to 18th February, 1904, is a reproduction of the seventh edition of said Tariff (No. 2). and first Supplement, as issued by the International Customs Bureau, save the following exception: The following item has been inserted: £ s. d. Sugar candy the cwt. 4 2 II. — New Rate of Duty on Tea and Additional Rates of Duty on Certain Descriptions of Tobacco. [General Customs Order No. 40, of 18th of April, 1904.] In pursuance of a resolution to be proposed in the House of Commons on the 19th instant, in lieu of the customs duty now payable on tea the following duty is to be charged on and after Wednesday, the 20th instant, and until the 1st of August, 1905, viz.: £ s. d. Tea ..the lb. 8 Under a further resolution to be proposed on the same date, in addition to the duties now payable on tobacco of the following descriptions under Section 1 of the Finance Act, 1898, and Section 2 of the Finance Act, 1900. the following duties are to be levied on and after the 20th instant, viz.: £ s. d. Cigars the lb. 00 6 Cigarettes do. 010 Tobacco, unmanufactured— If stemmed or stripped the lb. 3 7G 'ill!. BRITISH i \i:n i The actual duties payable on these descriptions of tobacco on and after the 20th instant will, therefore, be as follows: Xs. (I. Cigars the lb. <> 6 o Cigarettes t u>. i m Tobacco, unmanufactured: If stemmed or stripped— Containing lOlbs. or more of moisture in ererj 100 lbs. weight thereof .the lb. o 3 3 Containing less than io u>s. of moist ore in e\ ery iui n>s. weight thereof .'the lb. 3 7 These increased duties will be leviable on all tea and tobacco of the specified descriptions entered on or after Wednesday the 20th instant, in accordance with Section 7 (2) of the Finance Act, 1901, and on tea and tobacco, previously entered, which are lying in bonded warehouses on that date. It should also be noted, with reference to the Customs Code, paragraphs 3 and 486, that all tea and tobacco in respect of which duty has been paid at the present rates, but which have not been delivered from bonded warehouses on the morning or the 20th in- stant, will be liable to the difference of duty hereby involved. The hum of industry has drowsed the voice of calamity and the voiee of despair is no longer heard in the United States, and the orators wthout occupation here are now looking to the Philip- pines for comfort. As we opposed them when they were standing against industrial progress at home, we oppose them now as they are standing against national duty in our island possession in the Pacific President McKInley. I am a protectionist because facts confront us, not theories. I have seen the wage-earners of Great Britain and continental Europe; know how they live; that they are homeless and landless as far as ownership is concerned; that they are helpless and hope- less as to any brighter future for themselves or their children; that in their scant wages there is no margin for misfortune and sickness, pauperism being the .only refuge. — Hon. William P. Frye. Luxuries to the European laborer are necessities to the Ameri- can. — Senator Frye, In the American Economist. The farmer of the West has learned a»d the farmer of the South ought to learn that when the factory is closed he not only loses customers for his products, but also meets additional com- petitors in his production. The workman, losing his employment in the factory, settles upon a truck farm and becomes a producer of the products he formerly bought from the farmer. The pros- perity of the farmer depends upon the prosperity of those who buy his products. — Hon. P. P. Campbell, in Congress, April 1, 1904. The job hunts the man, not the man the job. When that con- dition exists labor Is always better rewarded. — President McKinley. The depression and ruin that was inaugurated with that tariff revision by the Democratic party is vivid in the minds of all. — Hon. P. P. Campbell, in Congress, April 1, 1904. A tariff for revenue only resulted in cheaper wool, cheaper bread, cheaper everything; there was no doubt about that; but did cheapness produce happiness, as they said it would? No; it pro- duced misery, just as we said it would. — Hon. M. N. Johnson, in Congress, March 24, 1897. L.et us keep steady heads and steady hearts. The country is not going backward, but forward. American energy has not been destroyed by the storms of the past. — President McKinley before Manufacturers' Club, Philadelphia, June 2, 1897. Experience of more than forty years in business has taught me that under a low or revenue tariff business depression and financial distress has been the rule, while under protection gc Jd business and general prosperity has been the result. — Hon. N. D. Sperry, 31. C, of New Haven, Conn., in the American Economist. A condition of prosperity came with the policy of protection and a condition of adversity came when the theory of free trade was yielded to and this has been without an exception. — Hon. P. P. Campbell, in Congress, April 1, 1904. We have lower interest and higher wages, more money and fewer mortgages.— President McKinley. IBON AND STEEL INDUSTRY. f 7 THE,IRON AND STEEL INDUSTRY IN THE UNITED STATES. The development of the iron and steel industries furnishes am- ple proof of the great benefit of a protective tariff. Before the Revolutionary War Great Britain would not permit these indus- tries to become established in her American colonies. Everything was done to develop manufacturing in the British Islands, but the object was to prevent the colonists from manufacturing for them- selves in order to compel them to take what was produced in England at whatever prices the home producers might charge. In 1750 a hatter shop in Massachusetts was declared a nuisance by the British Parliament. In the same year an act was passed per- mitting the importation of pig iron from the colonies because charcoal, then exclusively employed in smelting the ore, was well nigh exhausted in England. But the erection of tilt-hammers, slitting or rolling mills, or any establishment for the manufacture of steel was prohibited. A law of Virginia to encourage textile manufactures in that province was annul led in England. Lord Chatham declared that "the British colonists of North America had no right to manufacture even a nail for a horseshoe." The act passed in regard to manufacturing iron and steel read in part as follows : "No mill or other engine for slitting or rolling of iron, or any plating forge to work with a tilt-hammer, or any furnace for making steel, shall be erected or, after such erection, continued in any of His Majesty's colonies in America." A heavy fine was provided for any person using any such "mill, engine, forge or furnace," as mentioned in the act. That act was enforced down to the beginning of the Revolution. The export of wool and woolens from the colonies was forbidden and the transportation of iron wares, linens, woolens, paper, hats, and leather from one colony to another was forbidden, and even the exportation of hats was stopped. The importation of foreign iron into England was stopped by excessive duties, and the colonists were compelled to buy such articles as they might need, not produced at home, en- tirely from the merchants and manufacturers of England, and, besides, were compelled to sell their produce exclusively in Eng- lish markets. Those were the conditions that led to the Revolu- tion, and which left the colonies without any manufactures. Early Beginnings of the Industry. One of the first acts of the American Congress provided for a protective tariff, though it was a mere beginning in that direction. British legislation from that time forward was designed as before to prevent as much as possible the growth of manufacturing in the United States. In 1816 Lord Brougham, in a speech in Parlia- ment advocating the increased exportation of British goods to the United States, declared that "it was well worth while to incur a loss upon the first exportation in order by the glut to stifle in the cradle those rising manufactures in the United States which the war had forced into existence contrary to the natural course of things." By means of differential duties in favor of imports in English vessels the British shipping was favored. In 1819 iron imported into England in British ships paid a duty equivalent to $32.50 a ton and if it came in a foreign ship it had to pay $39.62 a ton. A large number of articles were absolutely prohibited from entering British ports, or were subjected to duties one-half their value. In all this legislation special efforts were made to protect the British iron and steel industry. Rapid Development Under Protection. After the Revolution the iron and steel industries of the United States slowly and spasmodically developed, though foreign com- petition was severe. A great deal of the time down to the begin- ning of the Civil War the duties on iron and steel were not suf- ficient to afford adequate protection. With the enactment of the Morrill protective tariff in 1861, and with the added stimulus of the Civil War, the iron and steel industries entered upon a period 78 IKo.S \M» SI I I I I Mil SI KV. of extraordinary development which with some Interruptions has continued to fhe present time, greatly surpassing the development of like Industries in any other country. In 1860 the United States produced 821,223 tons of pig iron and in 1890 the production reached 9,902,708 tons, and in 1903 was over 18,000,000 tons. Operation of Democratic and Republican Tariff*. During the time of the Democratic tariff act, owing to the depression in business, the production was much less than it was under the McKlnley tariff law. In the year 1894 only 6,657,388 tons of pig iron were produced, which was nearly 3,000,000 tons less than were produced in 1890, and in 1896 the production was 600,000 tons loss than it was in 1890. But under the Dingley law the production rapidly increased until it reached the total of 18,000,252 tons in 1903. Great Britain last year produced only 9,000,000 tons, or less than one-half the product of the United States, while Germany produced 10,000,000 tons. In five years tfaJ production of pig iron in the United States Increase^ seventy-five per cent ; in the United Kingdom eleven per cent, and in Germany forty-three per cent. Germany and the United States each have a protective tariff, while England is practically on a free-trade basis. Conditions in United States Compared with Other Countries. The world consumed in 1902 of pig iron 44,557,901 tons, of which forty per cent was, made in the United States. The same great development is shown in the production of steel, of which the United States produced 15,000,000 tons in 1902; Geramny 7,700,000 tons and Great Britain 5,000,000 tons. The United States produced 2,300,000 tons more than Germany and Great Britain combined. In 1889 the United States produced 7,603,642 tons of pig iron, which at that time was the largest production ever made in this country in one year. Great Britain produced in that year 8,322,824 tons, and she had exceeded the production in the United States in each preceding year. But under the Mc- Kinley tariff the production of pig iron increased to 9,202,703 tons in 1890, in which year the product in Great Britain fell off to 7,904,214 tons. Since that time the United States has doubled its production while Great Britain has just about held its own. Germany, which went under a protective tariff in 1879, pro- duced only 4,524,558 metric tons (2,204 pounds) of pig iron in 1889; but in 1900 Germany had increased the production so that her pig iron product was almost the equal of that of Great Brit- tain, and in steel she exceeded Great Britain. In 1902 Germany produced of Bessemer and open-hearth steel 7,664,158 tons, while Great Britain produced only 4,909,067 tons. The United States produced 14,826,092. Effect of Protective Tariffs Upon the 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 House of Representatives, earnestly protested against the proposed duty because, as he alleged, it would so increase the cost of foreign steel rails that our railroad companies could 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 reduction 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 transpor- tation has been enormously reduced. The United States long since became the largest producer of steel rails in the world. Great Britain long ago having fallen behind^ Formerly a large percentage of the rails in use were iron. Now they are practical- ly all steel. The tariff on steel rails in 1870 was 45 per cent ad IRON AND STEEL INDUSTRY. 79 valorem. That has been gradually i educed until now it is $7.84 a ton. In 1902 the production of steel rails in the United States amounted to 2,935,392 tons. Results of British Investigations — Profits of Labor Under Protection. British investigations into a large number of British and American industries, details of which were published in Cham- bers' Journal and in the London "Times," gave this result: put- ting the joint product of labor and capital at 100 parts, in Eng- land, fifty-six parts go to labor, and in the United States seven- ty-two parts. The Illinois Steel Company, in which an investiga- tion was made as to the labor cost of producing various articles, established the fact that of the entire cost of pig iron seventy- seven per cent went to labor and twenty-three per cent for ma- terials; of ingots, labor got seventy-nine per cent and the ma- terials cost twenty-one per cent; and of steel rails labor received eighty per cent and the materials cost twenty per cent; and part of the cost of materials was due to labor. Labor secures a larger proportion now than ever before. Common labor gets on the average $1.50 a day in iron and steel mills in this country; in Great Britain it is paid from seventy-five to ninety-five cents a day, while on the continent of Europe it is paid fifty cents or less a day. Findings of the Moseley Labor Commission. The Moseley Labor Commission, which was composed of lead- ing Workmen in various British industries, made a thorough in- vestigation of similar industries in the United States. The re- port of the Commission on its return to England stated that the pay of blast furnacemen in the United States was forty per cent higher than in England, while iron founders received more than twice as much in the United States as in England ; iron and steel workers received pay vastly greater than in England, some rollers in this country receiving as high as $5,000 per an- num, while heaters received from $7.00 to ?13.00 a day. The pay of Engineers in the United States was given as seventy per cent higher than in Great Britain, while cutters received 100 per cent more in this country. It was stated that the wages of other work- men compared as follows: Cotton spinners, $16.66 per week in the United States and $9.50 in England ; tailors, 100 per cent higher in the United States; bootmakers, thirty to seventy per cent higher; leather workers, ninety-five per cent higher; bricklayers, three and one-half times more in the United States than in Eng- land; plasterers, 100 per cent more; carpenters, $18.50 in New York and $6.87 in London; lithographers, $30.00 in New York and $11.25 in London; bookbinders, $20.00 in New York and $9.00 in London. Those are the figures given after investigation by British workmen, and were published in Great Britain. Cost of Living. The vastly higher wages in the United States are not ac- companied by any increase in the cost of living. Mulhall, the well-known English statistician, says that the cost of living on the same quantity of food for each man is as follows: In Great Britain, eleven shillings ($2.75) per week; United States, ten shil- lings; Germany, nine shillings; France, eight shillings. If an American workman lived on the same quantity of food as an Englishman, it would cost him less, according to so good an authority as Mulhall, than it costs the British worker. Labor- Saving Machinery. Great improvements have been made in labor-saving ma- chinery in this country, but that machinery is not confined to the United States. In some of the modern steel mills less than one cent per ton is paid to a roller for rolling steel rails, whereas he formerly received fifteen cents a ton, but he makes as much money now at this low price as he did before at the high price. Edwin S. Cramp, Vice-President of the Cramp Shipbuilding Com pany, in his testimony before the Congressional Commission in- 80 1KO.S AMI B7 mi. imm SI ky. vestigating the shipping question, told how the exportation of Labor-saying machinery has long been a marked feature of the exports of this country. Mr. Cramp said: "The argument which you have hoard urged so often, that the American mechanic can <1<> nana than the English mechanic, and that the introduction and application of labor-saving deviaes en- ables the American to increase his output very largely over that of England, does not hold good. The same labor-saving devices that we have introduced and applied in America are being intro- duced and applied in every shipyard in Great Britain, so that the amount of work a man can do there is increasing, and will con- tinue to increase. At the same time we are paying double the wages — from 50 to 100 per cent more — than is being paid in Eng- land for the same labor." Thus any advantages which Americans have in the way of labor-saving machinery are to be found in mills in nearly all foreign countries. Mr. J. Stephen Jeans, Secretary of the Brit- ish Iron Trade Association, presented to the tariff commission appointed by Mr. Chamberlain, and now investigating that ques- tion in England, an exhaustive review of the iron trade in that country. He declared that Great Britain furnished all the ad- vantages of the general proximity of ores and fuel, but that the British iron and steel industries suffered severely from a want of confidence in their future. He said: High Tariff, High Wages, and High Efficiency go Together. "The higher wages paid in the United States is coincident with the higher efficiency of labor, which, however, is not necessarily unapproachable in this country (Britain)." Mr. Jeans stated that "a tariff does not in the iron and steel trade prevent a nation from attaining and maintaining the highest industrial efficiency." "The tariff policy of our competitors by guaranteeing within large limits the monopoly of the whole market, and what is perhaps of greater importance, keeping the home market from sudden and violent breaks, must promote continuity in running." Mr. Jeans stated that in the last ten years under free trade the British iron production had little more than held its own, while the American output trebled in the same time under a pro- tective tariff. Britain, he said, was also beaten in steel, the form in which iron now finds its most important use. England has a 33 1-3 per cent preference in Canada in the way of lower duties, and yet the United States sells to Canada four times as much iron and steel in various forms. The British output of manufac- tured iron in 1903 was the lowest since 1850. The Bessemer steel output in that year was 154,000 tons less than in 1882. Purport Prices — Why Lower Thnn Home Prices? Much has been said about United States manufacturers sell- ing iron and steel and other products abroad lower than at home. Iron and steel at home are sold at prices fixed by competition, and the law of supply and demand. No corporation has a mon- opoly of their manufacture. The United States Steel Corporation does not control one-half of the iron and steel capacity of the United States, and the number of independent companies is con- stantly increasing. The price of steel rails was maintained at $28.00 a ton as a result of the work of the steel corporation when much higher prices could have been obtained. The policy of the corporation, as stated by its officers, was to try to make money by reducing the cost of production, not by advancing the price to the consumer. In 1893, under the Cleveland administration, there was a great depression in the iron and steel industry, and prices were ab- normally low and unremunerative; wages in the iron trade were also greatly reduced. Soon afterwards there was developed a boom in the iron and steel industries of Great Britain and Ger- many and their prices went up. That was an opportunity for the American manufacturers of which they took advantage. A seri- ous and prolonged strike in Great Britain subsequently broad- ened this opportunity, Foreign orders for iron and steel became so numerous that exports of those articles exceeded the imports for the first time in 1893. When the prices of iron and steel re- covered in the United States under the Dingley tariff law there was a shrinkage in the foreign demand, ana prices abroad, and the exports of iron and steel necessarily declined. In fact, the IRON AND STEKL LNOUSTKY. 8l home demand brought large importations. At the present time a shrinkage in the home demand has led to increased exportation. The large importations in 1902, $41 ,408,820, show that the man- ufacturers in the United States do not control their home market. Foreigners sell their products here much below the prices they receive at home. German syndicates pay an export bounty to the members of their organizations, and their returns as published show large losses on their foreign trade. This, they explain, is necessary to keep their mills going and maintain prices at home. English newspapers complain that German iron and steel are sold in large quantities at lower prices in British markets than in Germany. The importation of such a large quantity of iron and steel in 1902 shows that the Dingley rates of tariff duties in this country are not too high, since if they were lowered these imports would be-enormously increased. The foreigners have a great advantage in shipping their pro- ducts to the United States. What are termed tramp vessels call at our ports in large numbers for grain, petroleum, and coal as return cargoes. That these vessels may be properly ballasted on the inward voyage they gladly accept all such heavy products as iron and steel at merely nominal freight rates, frequently as low as $1.00 a ton, and sometimes as low as twenty-five cents a ton, the American manufacturers having to pay much higher rates on the railroads to/ reach important points of consumption on the coast are at a disadvantage. German iron and steel man- ufacturers make a regular practice of selling abroad much lower than at home, and Englishmen do the same to a smaller extent. Canada pays a bounty of $3.00 a ton on pig iron produced in that country, and a bounty of $3.00 a ton on steel ingots. What the Industrial Commission Found as to Low Export Prices. The United States Industrial Commission, after an investiga- tion, found that a very small percentage of the goods exported from the United States are sold cheaper abroad than at home. But this only happens in years of depression. When lower prices have been charged abroad than at home the inducement to do this has been to dispose of a surplus, or to secure entrance into a desirable foreign market, or to retain a foothold in a foreign market that' had already yielded profitable returns. These rea- sons for the occasional cutting of prices require no defense. Even in years of prosperity it sometimes happens that a rolling mill or steel works, when running to its full capacity, produces a surplus of its products beyond the immediate wants of its production by stopping the mill or discharging a part of the employees. It is cheaper to keep the men employed and sell this surplus at cost if necessary than it would be to stop the works temporarily. The manufacturer can produee cheaper when his plant is running full than when it is partly stopped. Our tariff legislation has encouraged manufacturers to seek for- eign markets by remitting nearly all of the duties levied on im- ported raw materials when these raw materials enter into the manufacture of exported finished product. Under the operation of this drawback system some products can be fhanufactured for sale abroad at a lower cost than they could be supplied to home customers. If this surplus can be sold abroad, even at prices below current quotations, it is better than to reduce customers. Great Britain a Competitor in Low Export Prices. Great Britain early pursued this course of selling abroad cheaper than at home. In T81G Lord Brougham, in a speech in Parliament advocating the increased exportation of British goods to the United States, declared that "it was well worth while to incur a loss upon the first exportation, in order by the glut to stifle in the cradle those rising manufactures in the United States which the war had forced into existence." In 1854 a British parliamentary commission reported as follows: "The laboring classes generally in the manufacturing districts of this country and especially in the iron and coal districts, are very little aware of the extent to which they are often indebted for their being employed at all to the immense losses which their employers vol- untarily incur in bad times in order to destroy foreign competi- tion and to gain and keep possession of foreign markets." That is the kind of competition our manufacturers have to meet. ^'J IICO.N \M> Sllll. I.NDl SI'UY. Prominent I'.nu I ImIi men \'«»!<>c ltepublioiiu Sentiments. Premier Balfour, of the Knglish Cnhinet, deehiivd in B speeeh last October that the developments of the Last half century "had made rrea trade an empty mime and a vain farce." Eie said: "I eonfess thai when 1 heat eritieism upon the American and Ger- man policies which caused these great industrinl nations to a<- company their marvelous commercial expansion with protective dUtkfa which must have thrown a most heavy burden upon the consumer. 1 feel that they have a retort to which I at least have no reply. Free trade is Indeed an empty name and a vain farce." The London "Statist*" in an article referred to the fact that under protection the united states "has made more remarkahle progress than perhaps any other country in the world." It then refers to England and India, under free trade and states that "India has remained poor and famine stricken." In England more than 2,000,000 acres of wheat land have gone out of cultiva- tion in half a century and 1,000,000 fewer men are employed on the land. In the production of manufactured products, taking in the producing nations of the world, Great Britain has fallen from forty-five per cent to less than thirty per cent in the last quarter of a century, while the United States has enormously in creased in the same time. General Booth, head of the Salvation Army in London, stated after an examination in 1890 that there were 2,000,000 paupers in Great Britain and 1.000,000 more persons who were nearly paupers. Former Secretary Chamberlain of the British Cabinet has olaced the number of paupers in Great Brit- ain at 4,000,000. Production and Prices of Bessmer Steel Ralls In the United States. The following table gives the annual production in gross tons of Bessemer steel rails in the United States from 1867 to 1903. 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. Duty. 1867 2,277 6.451 8.616" 30,357 34.152 83.991 115.192 129.414 259.699 368,269 385.865 491,427 610,682 852,196 1,187,770 1,284,067 1,148.709 996,983 959,471 1,574,703 2.101.904 1.386,277 1.510.057 1,867.837 1,293.053 1.537.588 1.129,400 1,016,013 1.299,628 1,116,958 1,644,520 1,976,702 2,270,585 2,383,654 2,870,816 2.935,392 2,873,228 $166.00 158.50 132.25 106.75 102.50 112.00 120.50 94.25 68.75 59.25 45.50 42.25 48.25 67.50 61.13 48.50 37.75 30.75 28.50 34.50 37.08 29.83 29.25 31.75 29.92 30.00 28.12 24.00 24.33 28.00 18.75 17.62 28.12 32*29 27.33 28.00 28.00 1868 ,45 per cent ad valorem to January 1, 1869 ' 1871. 1870 1871 1872 1873 1874 1875 $28.00 per ton from January !, 1871, 1876 to August l. 1872; $25.20 from Au- 1877 gust 1. 1872. to March 3. 1875; $28.00 1878 from March 3, 1875, to July 1, 1883. 1879 1880 1881 1882 1883 1 1884 1885 .$17.00 per ton from July 1, 1883, to October 6, 1890. 1886 1887 1888 1889 1890 1891 .$13.44 per ton from October 6. 1890, 1892. ...-. to August 28, 1894. 1893 1894 1895 1896 1897 1898 l $7.84 per ton from August 28. 1894. to 1899 date. 1900 1901 1902 1903 B '-.. 1K0JN AiNU STEEL INDUSTRY. 83 Advance in Prices of Iron Ore. The following table, furnished by the editor of the Iron Trade Review, an accepted authority, shows the prices of iron ore from 1898 to 1903. It will be seen that the advances in the raw ma- terial have been very great and account in part at least for the advance in price of the finished article, which is also affected in price by the advance in wages during the same period. [Furnished by Mr. A. I. Findley, editor of the Iron Trade Review.] Grades. Mesabi Bessemer Mesabi non-Bessemer.. Marquette specular: No. 1 Bessemer No. 1 non-Bessemer.. Chapin Soft hematites, No. 1 non-Bessemer Gogebic, Marquette and Menominee No. 1 Bes- semer hematites Vermilion No. 1 hard non-Bessemer Chandler No. 1 Besse- mer Marquette extra low- phosphorus Bessemer $2.15 to $2.25 1.70 to 1.85 3.10 to 3.35 2.35 to 2.45 2.56 1.80 to 2.00 2.75 to 2.95 2.50 3.13 3.65 1900. $4.40 to $4.90 4.00 to 4.25 5.93 to 6.48 5.00 4.96 4.15 to 4.25 5.50 to 5.75 5.10 6.00 6.80 to 6.90 $3.00 ® $3.25 2.60© 2.85 4.65® 5.00 3.80® 4.00 3.91 3.00® 3.25 4.65 4.07 4.50 5.40 $4.00 $4.85® $5.15 4.00® 4.25 The base price for 1900 of "old range" Bessemer ores, those from the Marquette, Menominee, Gogebic, and Vermilion ranges, have been fixed at $5.50, against $2.95 in 1899. Even supposing that a high tariff is all wrong, it would work infinitely better for the country than would a series of changes between high and low duties. — President Roosevelt* in his Life of Benton, p. 224. The Republican party Stands now, as it has always stood and always will stand* for sound money with which to measure the exchanges of the people? for a dollar that is not only good at home, but good in every market place of the world.— Major Mc- Kinley to Young Men's Republican Club, June 26, 1896. The real evils connected with the trusts can not be remedied by any change in the tariff laws. The trusts can be damaged by depriving them of the benefits of a protective tariff only on con- dition of damaging all their smaller competitors and all the wage- workers employed in the industry. — President Roosevelt at Cincin- nati, September 20, 1902. I yield to no Senator, I yield to no Republican in my attach- ment to the doctrines of the Republican party. I believe that -when the platform was adopted at St. Louis it was a warrant to be ex- ecuted honestly, fearlessly, faithfully, and I am here, Mr. Presi- dent, to execute it to the best of my humble ability.— -Hon. C. W. Fairbanks, in U. S. Senate, May 20, 1897. If there is any one quality that is not admirable, whether in a nation or in an individual, it is hysterics, either in religon or in any- thing else. The man or woman who makes up for ten days' indif- ference to duty by an eleventh-day morbid repentance about that duty is of scant use in the world. — President Roosevelt at Boston, Mass., August 25, 1902. All the prosperity enjoyed by the American people— absolutely all the prosperity, without any reservation whatever — from the foundation of the United States Government down to the present time, has been under the reign of protective principles; and all the hard times suffered by the American people in the same period have been preceded either by a heavy reduction of duties on im- ports or by insufficient protection, thus refuting all free-trade theories on the subject. As I desire my native land to be on the apex of prosperity, rather than under the heel of hard times, I am a protectionist. — David H. Mason, in the American Economist. 84 i in i i\ Pi \ n: ixnrsTBT. A tariff which protects American labor and industry and-pro- vides ample revenues has been written in public law. • —william Mckinley. THE TIN-PLATE INDUSTRY. Established Under McKinley Protection. Checked by Democratic Free Trade, It has Effected a Saving: of $35,000,000 to the Conn- try and Now Gives Employment to 17,000 People* Who Earn $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 was 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 duty, being a reve- nue 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 until the latter part of Jan- uary, 1895, when they were put in operation at greatly reduced wages. The American tin-plate works were then enabled to operate under the existence of the Wilson-Gorman tariff law because : Growth of the Industry. 1. The industry had acquired great momentum under the Mc- Kinley 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 pound was 0.2 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 than had ever been seen before. Five Hundred Mills Busy There. Up to July 1, 1891, when the McKinley tin-plate duty became effective, over 500 tin mills were kept in practically steady opera- tion in W T ales. Since then there has been a continuous succession of strikes and lockouts. The number of mills in operation has fallen below 300 at times, and prices of tin plate in Wales were brought down to a level formerly unknown. The Welsh tin-plate trust was completely broken up. The following table shows the decline in the Welsh tin-plate trade due wholly to the establish- ment of the American industry, while the partial revival since 1898, due to the opening up of markets in other countries not pro- tected by a tariff, will also be noted: British Exports Decrease. Exports of tin plate from Great Britain to all countries since 1887, in long tons: Year. Long- tons. 1887 354,773 1888 391,291 1889 430,623 1890 421,797 1891 448,732 1892 - 395,580 1893 379,233 TIfE TIN PLATE INDPSIKV. 85 1804 354,081 1805 365,082 1806 266,055 1807 271,230 1808 250.053 1800 256,620 1000 272,877 1001 271,320 1002 312,206 1003 -. 203,147 The following table gives the imports of tin plate into the United States since 1880 in long tons: Year. Long tons. 1880 331,311 1800 320,435 1801 327,8S2 1802 268,472 1803 2,13,155 1804 215,068 1805 210,545 1806 1 10,171 1807 83,851 1808 67,222 1800 58,015 1000 \ 60,386 1001 77,305 1002 60,115 1003 47,360 Our Imports are Ndw Inconsequential. The great bulk of the imports in these later years was neither for domestic consumption nor subject to the duty, being known as "rebate" plates, on which the duty is refunded by the Government on the export of articles made from them, as will be explained more fully later. Deducting such rebate plates, the imports of tin plate for domestic consumption and subject to the duty have averaged, from July 1, 1807, to March 31, 1004, only 6,320 tons per annum, a wholly inconsequential quantity, and made up wholly of fancy plates sold under special brands. The following table gives the production of tin plate in the United States in each calendar year since 1801 : Year. Long- Tons. 1801 552 1802 18,803 1803 55,182 1804 74,260 1805 113,666 1806 160,362 1807 256,508 1808 326,015 1800 , 307,767 1000 302,665 1001 300,201 1002 306,000 High and Low Prices. The following table shows the highest and lowest prices in Wales of full weight coke tin plate since 18S0. The great decline caused by the American industry will be noted. The much higher prices in 1800 and 1000 were caused by the great advances in raw materials, especially steel and pig tin, which have occurred all over the world : Year. Lowest. 1880 12s 0d 1800 . •. 13 3 1801 12 1802 11 1803 10 10 V» Highest. ISs Od 17 3 12 12 3 12 6 Hi, i in i i \ ri \ i 1 i m.i BTB1 . L89d K) 3 11 1895 !> 9 LO 9 L896 6 LO% K» 6 1S97 9 9 10 3 1898 9 9 10 6 1899 11 ii 15 L800 L8 :i if. 9 1901 12 3 15 3 1902 11 9 14 1903 • 11 12 6 1904 (first half) 11 G 12 The following table gives the average price paid for full weight coke tin plate at New York -each year since 1890 ; prices are Cor imported plates up to and including 1894 and for domestic plates since then : v 1890 $5.15 1891 5.30 1892 .vu 1893 &I5 1894 . 4.57 1895 3.0(1 1896 3.63 1897 3.26 1898 2.99 1899 4.50 11)00 4.82 1901 4.34 1902 4.27 1903 * 4.07 1904 (first half) 3.82 On Juno 13, 1904, the current market price of tin plate was $3.45, f. o. b. mill, Pittsburg district, for 100-pound coke plates. This, with 15 cents extra for "full weight" (108 pounds) and freight to New York made the price of full weight plates in New York $3.79. A Saving; of $35,000,000, 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 protective tariff, and closely calculating what it actually has cost in these years with the protective tariff and the American industry, it has been found that the country has saved to date fully $35,000,000 through the McKinley tin-plate industry. 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. Earnings Much Higher Than in Wales. The average weekly earnings of all employes in American tin mills are from two and a half to three times as much as in Wales. This is due mainly to wages being much higher per unit of output, but it is also in part due to the fact that there is a very much greater capital investment per unit of output in America than in Wales. The American manufacturer spends perhaps three times as much money in building his plant and this greater investment enables the men to turn out a greater product per week without greater exertion. Even per ton, however, American wages are much higher than the Welsh wages. Taking the wages being paid in American mills in June, 1904, the comparison stands as follows, for the single branch known as the hot-mill labor, this being only one step in 'the process of tin plate manufacture : Wales. United States. Roller and catcher $1.90 $4.60 Doubler 1.16 2.26 Heater 1.09 2.20 Total $4.21 $9.06 THE TIN PLATE INDUSTRY. 87 Which shows that on these jobs American wages per ton are 115 per cent, higher than in Wales. On account of the greater output, the actual weekly earnings are nearly three times as great as in Wales. Tin-Plate Is Cheap. Tin plate is cheaper in the United States now than it was at any time prior to the passage of the McKinley protective duty, and the present price at New York is only 27 per cent, higher than the lowest price on record at any time. The followinig is the cost, delivered New York, of the quanti- ties of tin plate required \o make the articles named, based on the open market in May and June, 1904 : Cents. Ordinary 2-lb. or No. 2 can 0.94 Ordinary 3-lb. 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 famous dinner pail made of American tin, therefore, now costs only what the workman pays for an ordinary street car fare. Workmen Recognize Tariff's Responsibility for High Wages. 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 tin plate for domestic con- sumption, the Welsh manufacturers were 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 operation of the general drawback law the Govern- ment, on the export of these commodities, paid to the exporters 99 per cent, of the duty which had originally been paid on the tin plate so used. Thus the tin plate used in this "rebate trade" was practically duty free. The Amalgamated Association 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 remaining trade from the Welsh makers, but the company was willing to make up the bal- ance 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 compli- cated system was adopted partly because it would have been incon- venient 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 ex- ports were made. By this action the men recognized that the tariff was directly responsible for the wages they were receiving, and showed that they were willing, in competing with Welsh manufacturers operat- ing under no tariff, to make a concession in wages. To the middle of this year the amount of business done under this arrangement was not very large, as the mills were quite busy on strictly domestic business. In the past few months the rebate ousiness has assumed quite important proportions. f>»-i ,. I am a protectionist because our country has prospered with protection and languished without it. — Hon. B. F. Jones, in the American Economist. I believe in the doctrine of protection because the facts of our national experience thoroughly exemplify its truth. No great American statesman, except the half-forgotten leaders of the slave p«.»ver, have disowned the protective system.— Hon. J, P. DolUver, in the American Economist, 88 l Hi: l i:\Tll.i-; INDUSTRY. THE TEXTILE INDUSTRIES OF THE UNITED STATES. How Labor and Agriculture Have Been Mutually Aided and Price* to the Consumer Reduced Under the Protective System. [By Edward Stanwood, author of "A History of the Presidency," "American Tariff- Controversies of the Nineteenth Century," Etc.] If one were asked to aesignate the American industries whicb may be regarded as the most conspicuous 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 industry, 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 immense canning industry of the coun- try at prices far below those which prevailed when the market was controlled , by foreigners. Nevertheless, the most 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-digested plan is requisite; and their safety and interest require that they should promote such manu- factories as tend to render them independent of others for essen- tial, particularly military, supplies." Although clothing w s 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 1812 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 it was found impossible to buy in the country $6,000 worth 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 importation secretly from the British provinces in viola- tion 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 brought 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 inter- rupted, have continued to the present time. The Cotton Industry. Cotton manufacture has enjoyed fairly adequate protec- tion for three-quarters of a century. Even under the Walker tariff of 1846 the rate of duty was sufficient to give the home manufacturer 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 goods enor- mously. Thus every interest connected with this industry, di- rectly or indirectly, has been benefited— the manufacturer and his employees, the southern planter, and the whole population of the country, because all are consumers of the products of cotton mills. In recent years the United States has begun the THE TEXTILE INDUSTRY. 89 conquest of foreign markets. An export trade established before the civil war reached in 1860 almost $11,000,000. It did not touch those figures 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 1903 the value of cotton goods exported exceeded $32,000,000. It was smaller in 1904, owing to the abnormal price of raw cotton, which caused a demoralization in this branch of the textile industry throughout the world. The accompanying table shows the progress made by this industry during the last thirty years under a policy of unin- terrupted protection, for the Wilson tariff of 1894, harmful to other manufactures, did not materially reduce the protective duties on cotton fabrics. 1890. Number of establishments.. Capital Wage-earners, average num ber Total wages Cost of materials used Value of products Active spindles, number Looms, number Cotton consumed, bales Cotton consumed, pounds.. 973 $460,842,772 297,929 $85,126,310 $173,441,390 $332,806,156 19,008,352 450,682 3,639,495 1,814,002,512 905 $354,020,843 218,876 $66,024,538 $154,912,979 $267,981,724 14,188,103 324,866 2,261,600 1,117,945,776 756 $208,280,346 174,659 $42,040,510 $102,206,347 $192,090,110 10.653,435 225,759 1,570,344 753,343,981 956 $140,706,291 135,369 $39,044,132 $111,736,936 $177,489,739 7,132.415 157,310 398,308,257 The Woolen Industry. The voyage of the woolen industry has been through seas much more stormy than those over which the cotton manufac- turers have passed. The difficulties which have beset it have arisen largely by reason of the complication of protection of wool with protection of wool manufactures. The growers of wool have rightfully contended that they were as deserving of the fostering care of government as were the users of their product. The concession of their contention has resulted, naturally and in- evitably, in the requirement of a duty on finished goods which seems excessive to those w T ho are not aware of the peculiar circumstances of the case, and which has made the wool and woolen schedule of the tariff the vulnerable point always chosen by the opponents of protection as the best for an attack and the easiest to carry by assault. There have consequently been many interruptions and variations in the policy of protection, which have prevented the full and healthy development of the industry. At one time, in 1846, a blow was given to the manu- facturers by a tariff law which levied no higher duty on .finished goods than on raw wool. At another time, under the Wilson - Gorman act of 1894, the woolgrower was struck by a provision making wool duty free. Yet in spite of opposition and of a vacillating policy the woolen industry has grown to large proportions, taking ad- vantage of favoring laws to increase and gain strength, endur- ing adverse legislation as best it might, and holding itself ready to make a forward step again when conditions should permit. Although the inherent difficulties and the artificial difficulties resulting from the lack of a continuous and consistent policy have prevented the full development of the industry, and, in consequence, that unimpeded home competition which would bring prices down strictly to the level of the foreign article, yet the difference in price is not great. Upon many varieties of goods the price of American fabrics is as low as that of European fabrics of the same quality plus a rate of duty not higher than the average of a "revenue tariff." Protection has not placed the manufacturers of wool in a position so favorable as that of the manufacturers of cotton, but under the present tariff they are making good progress, and if the policy be continued they will be able to intrench themselves strongly in the home market, to the great advantage of American woolgrowers in a steady demand for their product at reasonable prices, and of 200,000 wage-earners in continuous and remunerative employment, 90 i III. i I \ i ii i INDUS'! m . as well as of the whole American people in an abundant sup- ply of honest goods at fair prices. The main facts relating to the woolen and worsted indus- try and to the allied manufacture of hosiery and knit goods. covering the ascertainment at the last three censuses, are pre- sented in the following table: Number of establishments , Capital Wane-earners, average number. Total wages Cost of materials used Value of products 2,835 $392,040,3< 1 3 242,495 $82,292,444 $232,230.98(5 $392,473,050 1890. 2.489 $290,494,481 213,859 $70,917,894 $203,095,572 $337,768,524 2.089 $159, 09 1.. sc.il 161,557 $47,389,087 $164,371,551 $267,252,913 The Silk Industry. It is- not generally realized that under the operation of a protective tariff the United States has risen almost if not quite to the first rank among the silk manufneturing countries of the world. The census returns in 1900 showed that in that year the value of the silk manufacture of France was $122,- 000,000 and that of the United States $92,000,000, and the rate of progress in this country was and is such that in all probability the relative positions of the two countries have been reversed and that this country now leads in this important manufacture. In 1870 exactly two-thirds, in value, of the American con- sumption of silk manufactures was of foreign importation. In that year the total value of silk goods imported and produced at home was $36,418,995, of which only $12,210,662 was domestic. In 1900 the valne of such goods consumed in the United Slates had increased almost fourfold and amounted to $133,807,184, of which four-fifths ($107,003,650) was of home manufacture. The value of imported silk manufactures increased less than $2,500,000 in the intervening thirty years; the value of the do- mestic manufactures increased from $12,200,000 to $107,000,000. The protective tariff created this industry in the United States at the same time that free trade killed the same in- dustry in Great Britain. Fifty years ago the silk manufacturer of England was great and prosperous. The British census of 1851 showed that there were 117,000 hands employed in the King- dom in the silk mills. Even in 1879 it employed more than 40,000 hands. The system of free imports has rendered it almost extinct. The value of goods produced in 1900 was but $15,000,- 000 — less than one-sixth that of this country. The destruction of this industry by invited foreign competition is one "Of the chief points in Mr. Chamberlain's indictment of the free-trade policy. The beginning of a protective system for the silk manufac- ture was made in the tariff of 1864, but the excessive internal taxation during and subsequent to the war, the disorganization of labor, and the diversion of capital to more pressing needs prevented the introduction of the manufacture on a large scale. Indeed, although the percentage of growth of the industry be- tween 1870 and 1880 was large, it was not until the tariff act of 1883 adjusted the rates in a satisfactory manner, making raw silk free and allowing an adequate protection on manufactured goods, that the industry began to assume large proportions. It will be seen from the following table that it gave employment in 1900 to more than 65,000 employees who earned wages of nearly $21,000,000. The table corresponds to those already given for the other industries. 1900. 1890. 1880. 1870. Number of establishments Capital Wage-earners, average number. Total wnges Cost of materials used Value of products Raw silk used, pounds 483 $81,082,201 P5.416 $20,982,194 $62,406,665 $107 256,258 9,760,770 472 $51,007,537 49,382 $17,762,441 $51 .004,425 $87,298 454 6,376,881 $19,125,300 31,337 $9,146,705 $22,467,701 $41,033,045 2.690,482 $6,231,130 6,649 $1,942 286 $7,817,559 $12,210,662 684,488 THE TEXTILE INDUSTRY. 91 The protective system is establishing the flax, hemp, aud jute industries. As compared with cotton, wool, and silk they are still of secondary importance, but are destined, if the policy be continued, to a large growth. What it Means to Labor. Iii the aggregate these several branches of the textile indus- try employed, in 1900, no less than 661,451 hands, who earned in wages the sum of $209,022,447, and the 4,312 establishments re- ported produced goods of the value of $931,494,566. The number of hands employed exceeded by more than 100,000 the total popu- lation in 1900 of St. Louis, of Boston, or of Baltimore. But it is always to be borne in mind, first, that on the average each wage- earner provides bread and meat, clothing, and lodging for not less than two persons besides himself; and, secondly, that their wages reach an ever-widening circle of persons engaged in other occupations — grocers, dry goods merchants, carpenters, and the like in the first instance,- railroads and their employees, farmers and planters, and an infinite numbe/ of others all the way be- tween the first and the last. What It Means to the Parmer. It is a most serious mistake to suppose that the effect of prosperity or of depression in the manufacturing, particularly in the textile, industry is limited to those employed in the mills and to their employers, or even to the communities and States in which the mills are located. The manufacturing communities in this country are wholly dependent upon the agricultural regions for their food. New England, for example, does not raise enough of any single article of food to supply its own people. Of the two staples, breadstuffs and meat, it does not raise the one-hundredth part of its need. It is therefore vitally important to the farmers of the West that the mill hands shall be steadily employed and that their wages shall be sufficient to enable them to purchase freely. Reduce the tariff, introduce foreign goods instead of domestic, diminish the demand for the products of our own mills, cut wages, close the mills or put them on short time, and you deal a blow directly at the great agri- cultural regions of the country. You restrict the consuming power of a community — including the wives and children of the opera- tives — almost equal in numbers to the population of Chicago, and you gain nothing in the form of a foreign outlet for your grain and your meat. The history of the textile manufacture in brief is this: A great industry has been built up by means of a protective tariff ; two-thirds of a million of hands have employment in the factories ; the country has become almost independent of a foreign supply of textile goods ; the growth of the industry has been accompanied by a steady and in the aggregate a great decline in prices, so that to-day the clothing of the people is not only cheap but nearly or quite as cheap, quality considered, as that of any other na- tion ; and in no branch of the industry is there a monopoly "trust" or the suspicion of a monopoly. No great fortunes have been built up in the textile manufacture. The conquest of the home mar- ket will be followed, if the wise policy be continued, by an en- trance into foreign markets, and by the leadership of the Unked States in all departments of this industry. Class appeals are dishonest; * * * they calculate to sepa- rate those who should be united, for our economic interests are common and indivisible. — Maj. McKinley to Commercial Traveling Men's Republican Club, September 26, 1896. Arraying labor against capital is a public calamity and an irreparable injury to both.— Maj. McKinley to Commercial Travel- ing Men's Republican Club, September 26, 1896. The only antitrust law on the Federal Statute books bears the name of a Republican Senator. The law creating an Interstate Commerce Commission bears the name of another Republican Sen- ator and all the law is being enforced by a Republican President. — Hon. E. L. Hamilton, in Congress, April 14, 1904. 92 THE TEXTILE INDUSTRY. The textile industries of the United States at decennial periods 1850 to /goo. [Compiled from census reports.] 1 u Number u Capital. of wage Wages. Cost of materials. Value of product. 5 a- earners. H fc Wool manu- facture^) 1850 1,760 $32,516,366 42,849,982 47,763 $29,246,696 46,649,365 $49,636,881 80.734,606 i860 i.ora 59.522 $13,361,602 1870 3,456 132,382.319 119,859 40.357,235 134.154,61 5 217,668,826 1880 2,689 159,091,869 161.557 47,389.087 164,371,551 267 252 913 1890 2,489 296,494.481 213.859 70,917,894 203.095,572 837.768.524 1900 2.335 392,040,353 242,495 82,292,444 232,230,986 392,473,050 Cotton manu- 1850 1.094 74,500,931 98,585,269 92.286 122,028 34,835,056 57.285,534 61,869,184 115,681.774 I860 1,091 23,940,108 1870 956 140,706.291 135.369 39,044.132 111.786.986 177.489.739 1880 756 208.280,346 174.659 42,040,510 182,206,347 192.090,110 1890 905 354,020,843 218.876 66,024,538 154,912,979 267,981,724 1900 1,055 467,240,157 302,861 86,689,752 176,551,527 339.200,320 Silk manufac- ture 1850 67 678,300 2,926,980 1,743 5,435 1.093,860 1,809,476 1860 139 1,050.224 3,901,777 6,607,771 1870 86 6,231,130 6,649 1.942,286 7,817,559 12,210,662 1880 382 19,125,300 31,337 9,146,705 22,467,701 41,033,045 1890 472 51,007,537 49,382 17.762.441 51,004,425 87.298,454 1900 483 81,082,201 65,416 20,982,194 62.406,665 107.256,258 Dyeing and finishing tex- tiles 1850 104 4.818,350 5,718,671 5,105 7,097 11,540,347 15,454.430 11,716,463 1860 124 2,001,528 5,005,435 1870 292 18.374,503 13,066 5,221,588 99,539.992 113,017,537 1880 191 26,223,981 16,698 6,474,364 13,664,295 32,297,420 1890 248 38,450,800 19,601 8,911,720 12,385,220 28,900,560 1900 298 60,643,104 29,776 12,726,316 17,958,137 44,963,331 Flax, hemp and jute 18% 162 27,731,649 41,991,762 15,519 4,872,389 26,148 344 37,313,021 1900 141 20,903 6,331,741 32,197,885 47,601,607 Combined tex- tiles 1850 3 025 112,513,947 150,080,852 146 877 76,715,959 128 769,971 1860 3.027 194,082 40,353.462 112,842.111 214 740,614 1870 4,790 297,694,243 274.943 86,565,191 353.249.102 520,386,764 1880 4,018 412,721,496 384,251 105.050,666 302,709,894 532.673,488 1890 4,276 767,705,810 517,237 168,488,982 447,546,540 759,262,283 1900 4,312 1,042,997,577 661.451 209,022,447 541,345,200 931,494,566 a. Includes hosiery and knit goods. Cotton production and manufacturing in the United States, also imports and exports of cotton manufactures. [From the Statistical Abstract of the United States.] Taken for home con- Total com- sumption. Raw Exports Imports of manu- mer- cial By North- By South- Total. cotton imported. factures of cotton. factures of cotton. crop. ern mills. ern mills. Int housanc s of ba les. Pounds. 1884 5,713 1,537 340 1,877 7,019.492 $11,885,211 $29,074,626 p '1885 5,706 1,437 316 1.753 5.115,680 11,836.591 27.197,241 1886 6,575 1,781 381 2.162 5,072,334 13.959,934 29.709,266 1887 6,499 1,687 401 2,088 3,924,531 14,929,342 28,940,353 H* .1888 7,047 1.805 456 2,261 5,497,592 13,013,189 28,917,799 3 P 1889 6,939 1,790 480 2,270 7,973,039 10,212,644 20,805.942 1890 7,297 1,780 545 2.325 8,606,049 9,999,277 29,918,055 1891 8,674 2,027 613 2,640 20.908,817 13,604,857 29,712,624 1892 9,018 2,172 684 2,856 28,663,769 13,226,277 28,323.841 O > p Sc» 03 o o % o3 ■d c3 •a Hi fl o3 a c3 £ CO cd OQ P 83 2 Bales. Cents. Cents. Cents. Cents. Cents. 5,761,000 11.51 8.51 8.51 12.73 7.41 6,605,000 12.03 8.51 8.06 12.74 7.00 6,456,000 11.56 8.45 8.25 12.95 6.50 6,950,000 11.88 8.32 7.11 12.93 6.00 5,713,000 10.88 7.28 6.86 10.46 6.00 5,706,000 10.45 6.75 6.36 10.37 6.00 6,576,000 9.28 6.75 6.25 10.65 6.00 6,499,000 10.21 7.15 6.58 10.88 6.00 7,047,000 10.03 7.25 6.75 10.94 6.50 6,939,000 10.65 7.00 6.75 10.50 6.50 7,297,000 11.07 7.00 6.75 10.90 6.00 8,674.000 8.60 6.83 6.41 10.64 6.00 9,018,000 7.71 6.50 5.60 10.25 6.25 6,664,000 8.56 5.90 5.72 9.75 5.25 7,532,000 6.94 5.11 5.07 9.50 4.90 9,837,000 7.44 5.74 5.69 9.85 5.25 7,147,000 7.93 5.45 5.48 9.50 4.66 8,706,000 7.00 4.73 4.75 9.25 4.70 11,216,000 5.94 4.20 4.10 8.00 3.96 11,256,000 6.88 5.28 5.13 9.50 4.25 9,436,000 9.25 6.05 5.95 10.75 5.00 10,383,000 8.75 5.54 5.48 10.25 4.62 10,681,000 9.00 5.48 5.52 10.50 5.00 10,728,000 11.18 6.25 6.37 10.75 5.00 6j .22 .a >> a£ 1881 1882 1883 1884 1885 1886 1887 1888 1889 1890 1891 1892 1893 1894 1895 1896 1897 1898 1899 4900 901 1902 Cents. 4.51 3.95 3.76 3.60 3.36 3.12 3.31 3.33 3.81 3.81 3.34 2.95 3.39 3.30 2.75 2.86 2.60 2.48 2.06 2.69 3.21 2.84 3.11 3.25 a Years ending August 31. b Including 1881 and since, the price of standard drillings are net; raw cotton prices are also net for the entire period. Protection has already made us the richest and strongest nation on earth, and under a properly restricted immigration will bring to us much that is most valuable in the population of other lands. — Senator Hoar, in the American Economist. By the policy of fostering American industries the development of our manufacturing interests have been secured; the inventive genius of our people has found a field; American labor has become the best paid, and consequently our laborers the best housed, clothed, and fed; and the wonderful development and progress in this country in all that makes a people great, have elicited the admiration of the civilized world. — Senator Cullom, in the American Economist. As a result in a large degree of our protective tariff system the United States has become one of the foremost nations of the world. — Hon. S. M. Cullom. •i I I'ROSPl R1TY. PROSPERITY. Prosperity among all classes of the population of the United States is so evident at the present time that no argument in sup- port of that fact is necessary. The fact is apparent. Yet the constant assertion of the opponents of the Republican party that the prosperity is not general and dors not roach to the masses of the people justifies the presentation of some facts and figures by which these false assertions may be readily answered and the real prosperity of the country and its people accurately measured. Prosperity Abroad Under Protection. Before taking up the question of prosperity at home, it may be well to consider what protection and free trade have done in producing prosperity or the reverse in the principal countries of the world. The great general rule that protection fosters domestic activ- ity and therefore domestic prosperity applies just as strongly to-day as it has all through the history of the various great com- mercial nations of the world. That protective Germany and the United States have developed a much greater prosperity dur- ing the past twenty years than free-trade England is now con- ceded even by the British themselves, and upon the prosperity of Germany and the United States are based the arguments now be- ing placed before the people of the United Kingdom in favor of the adoption of a protective system. GREAT BRITAIN ALONE UNPROSPEROUS. Right Hon. Joseph Chamberlain, a member of the British cabinet, secretary of state for the colonies, who in 1903 with- drew from his position to lead the fight in favor of a return to protection, says in a signed article prepared for the London Daily Telegraph: "It is not well with British trade. After a long period of success the policy of unrestricted free imports has now shown evident signs of failure. Our exports are stationary in amount and declining in character. We receive from our com- petitors a larger proportion of manufactured goods, and we send them a larger proportion of raw materials than we used to do. Our supremacy in what have always been considered our stand- ard industries has been wrested from us, or is seriously men- aced. One by one markets once profitable and expanding are closed to us by hostile tariff's. We have lost all power of bar gaining successfully for the removal or reduction of these bar- riers to our trade." « Sir Arthur Balfour, the premier of the British cabinet, prime ininister and first lord of the treasury, in a letter entitled "Eco- nomic Notes on Insular Free Trade," which he says "were circulated to my colleagues in the first days of August, 1903," and which were afterwards made public, says: "The most ad- vanced of our commercial rivals are not only protectionists now but in varying measure are going to remain so. Other nations have in the past accepted the principle of free trade; none have consistently adhered to it. Irrespective of race, polity, and material circumstances, every other physically independent com- munity whose civilization is of the western type has deliberately embraced, in theory if not m practice, the protectionist system." LOSS OF BOTH HOME AND FOREIGN MARKETS. Commenting upon these remarkable utterances froin leading officials of the British Government and upon the official figures regarding conditions in the United Kingdom compared with those of other countries, the London Telegraph says : "Internal trade, which the free-import system has enabled protected (for- eign) capital to capture, is better worth lighting for than all the foreign markets of the world. Our fiscal system has thrown this vast business at home into the hands of competitors who shut us out from their sphere abroad, * * -*' Why is our PROSPERITY. <),") trade stagnant? Because our products can no longer find in the whole world a. single market that is free; and not content with being repulsed in every other country, we surrender our own. * * * In spite of alarmist predictions of the Cobden Club, the United States adopted the McKinley tariff. They knew exactly what they wanted; they believed that the more com- pletely they secured the home market for home enterprise the higher would be the development of their internal industry and the greater, therefore, its success in foreign trade. No estimate was ever more brilliantly verified. * * * Germany under Bismarck abandoned the system of approximate free trade in 1879; she has since achieved the marvelous expansion in manu- facture and commerce with which we have had cogent reason to be well acquainted. She has stopped the stream of emigration from her shores; that is the test. The Kaiser's subjects would have continued as before to flow abroad by millions if pros- pects of prosperity previously unknown had not been opened up at home after the free-import system was abandoned. No com- petent witness can deny the immense subsequent increase of employment and the remarkable advance in the general well- being of the German people. * * * If you want to judge the progress of home production in any country by the index fact, inquire what are the make and consumption of iron and steel. In the twenty (protection) years before Cobdenism, say 1825 to 1845, we tripled our output of iron. The United States and Germany did exactly the same thing in the two decades of protection, 1880-1900, while we increase our consuming power for iron by 24 per cent. That is the master fact bearing upon the relative progress of home trade. * * * Capital can move from trade to trade and from country to country. The tariffs of the United States and the Continent have compelled many well- known British employers to transfer their undertakings to foreign soil and find employment for foreign workmen. But to a work- ing man the trade he has been taught is his very life. If the ordinary skilled artisan cannot find employment after he attains full manhood in the trade in which he has been brought up he is ruined, unless he emigrates to a country like America, a country with tariff, not only willing to give him employment but give him an absolute guaranty against the displacement of his labor by foreign competition. * * * The working classes in the United States and Germany have been increasing their savings faster than the working classes here. * * * English workmen receive high wages under free trade, but American workmen receive wages 'from 50 to 100 per eent higher under the tariff." UNPARALLELED SUCCESS OF THE UNITED STATES. Representative men of other nations have also noted that the prosperity in the United States has come under and by reason of protection. Mr. Mulhall, of the Royal Society of Lon- don, in his "Balance Sheet of the World," says: "It would be impossible to find in history a parallel to the progress of the United States in the last ten years. Every day that the sun rises upon the American people it sees an addition of two and one-half million dollars to the accumulation of wealth of the Republic, which is equal to one-third of the daily accumulation of all mankind outside of the United States." That great statesman of Germany, Prince Bismarck, in a speech before the Reichstag, said : "The success of the United States in material development is the most illustrious of modern time. The American nation has not only succesfully borne and suppressed the most gigantic war of all history, but immediately afterwards dis- banded its army, found work for all its soldiers and marines, paid off most of its debt, given labor and homes to all the unemployed of Europe as fast as they could arrive within the territory, and still by a system of taxation so indirect as not to be perceived, much less felt. Because of its deliberate judgment that the prosperity of America is mainly due to its system of protective laws, I urge that Germany has now reached that point where $t is necessary to imitate the tariff system of the United States." 96 rao flra& rTT. Relation of the Turin'* of the United Stutett to Prosperity or Adversity of the People. Before taking up the question of the general prosperity at the present time, it is proper to review briefly the conditions of prosperity and adversity under the various tariffs of the I aited States from the earliest date, and to note the elt'eet of low and protective tariffs, respectively, upon the conditions among our own people, a brief outline will be given of conditions during the long period prior to l$6i, a period in which the protective tariffs were of such short duration as to give only a suggestion of the real benefit of protection when continuously operating upon the great industries of the country. The first really protective! tariff period in the United States was from 1S12 to 1810, the period in which duties were high through the great, increase made in the rates at. the beginning of the war of 1812, and so evident was the advantage of protection to our domestic manufactures that President Madison, in a special message, urged upon Congress "deliberate consideration of the means to preserve and promote the manufactures which have sprung into existence aud attained unparalleled maturity throughout the United States during the period of European wars," Notwithstanding this urgency a re- turn to low tariff followed, and the British followed the advice of Lord Brougham, who in 1810 said in the House of Commons.: "It is well worth while to incur a loss upon the first exportation in order by the glut to stifle in the cradle those infant manufac- tures in the United States which the war has forced into ex- istence.' Following this programme, outlined by Lord Brougham, British manufactures were poured into the United States, and according to Niles, in his history, "great sums of money were expended by the British to destroy our flocks of sheep, that they might thereby ruin our manufactories. They bought up and immediately slaughtered great numbers of sheep; they bought our best machinery and sent it off to England, and hired our best mechanics and most skillful workmen to go to England, simply to get them out of this country, and so hinder and destroy our existing and prospective manufactures." As to the result of This, Senator Benton, a distinguished Democrat, gives this picture of the condition of the times : "No price for property ; no sales, except those of the sheriff and the marshal; no purchasers at execution sales, except the creditor, or some hoarder of money; no employment for industry; no demand for labor; no sale for the products of the farm ; no sound of the hammer, except that of the auctioneer knocking down property. Distress was the universal cry of the people; relief, the universal demand." RESULTS OF VARIOUS TARIFFS. The response to this universal demand was the protective tariff of 1824-33, of which Henry Clay said: "If the term of seven years were to be selected of the greatest prosperity which this people has enjoyed since the establishment of their present Constitution, it would be exactly that period of seven years which immediately followed the passage of the tariff of 1824," and in regard to the low-tariff period which intervened between the two protective tariff periods, already described, he added: "If I were to select any term of seven years since the adoption of the present Constitution which exhibited a scene of the most widespread dismay and desolation, it would be exactly that term of seven years which immediately preceded the establish- ment of the tariff of 1824." / In the low-tariff period. 1833-42, which followed the repeal of the protective tariff acts of 1824-28 occurred the great financial crash of 1837, of which Senator Gallinger says : "The whole coun- try went into liquidation, bank loans and discounts fell off more than one-half; the money lost to the country was not less than one billion dollars; all prices fell off ruinously; production was greatly diminished, and in many departments practically ceased ; thousands of workmen were idle, with no hope of employment; cur farmers were without markets ; their farms, teeming with rich harvests, were sold by the sheriff for debts and taxes ; the low tariff which robbed the industries of protection also failed to sup- ply Government revenues; the treasury was bankrupt; the reve- PROSPERITY. 97 nne fell off 25 per cent, and the Government was obliged to borrow money at high rates of interest to pay current expenses." Under the third protection period which followed, from 1842 to 184G, prosperity returned, and President Polk, although a Democrat and free trader, was constrained to say in his annual message of December, 184G: "Labor in all its branches is re- ceiving an ample reward, while education, science and the arts are rapidly enlarging the means of social happiness. The prog- ress of our country in her career of greatness, in resources and wealth, and the happy condition of her people, is without an example in the history of nations." The next free-trade period, from 1846 to 1801, while favored with special conditions of great demand abroad for our farm products and the enormous gold production in California begin- ning with 1849, was characterized by the greatest business de- pression. In January, 1855, the New York Tribune said: "The cry of hard times reaches us from every part of the country. The making of roads is stopped; factories are closing; houses and ships are no longer being built. Factory hands, roadmakers. carpenters, bricklayers and laborers are idle and paralysis is rapidly embracing every pursuit in the country. The cause of all this stoppage of circulation is to be found in the steady out- flow of gold to pay foreign laborers for the clothing and shoes and the iron and other things that could be produced by Ameri- can labor, but which cannot be so produced under our present revenue system." And the New York Herald of January 0, 1855, said: "Elsewhere will be found some mention of large failures at Boston and New Orleans. The epidemic has traveled over the whole country. No city of any note can hope to escape." By 1801 the condition had grown so serious that " President Buchanan, the last Democratic President before the advent of the Republican party to control of the Government, said in his annual message : "With unsurpassed plenty in all the productions and of all the elements of natural wealth, our manufacturers have suspended, our public works are retarded, our private en- terprises of different kinds are abandoned, and thousands of use- ful laborers are thrown out of employment and reduced to want. We have possessed all the elements of material wealth in rich abundance, and yet, notwithstanding all these advantages, out- country in its manufacturing interests is in a deplorable con- dition." Permanent Prosperity Under Permanent Protection. With the permanent return of protection which followed the advent of the Republican party in 1801, prosperity and wonderful development of the industries of the United States continued uninterruptedly, save in those great periods of adversity which swept over all countries and by which the purchasing power of our foreign customers was greatly reduced. An indication of the relative development of prosperity under continuous protection following 1801, as compared with that under almost continuous free trade prior to that date, may be had by contrasting conditions in manufacture, in 'agriculture, in wealth, in bank deposits, and other measures of prosperity in 1890 with those of 1800, the termination of the long low-tariff period. In 1800 the country had had seventy years under the Constitution, and of those seventy years only sixteen were under protection, and they covered such brief and widely separated intervals as to reduce materially their general effect upon the development of the great industries of the country. Following those seventy years of almost continuous low tariff" which ended with 1800 came continuous protection down to 1892, when a free- trade President and Congress were elected.' It is thus practicable to compare the relative development of the country and the growth of prosperity during two great periods — practically con- tinuous low tariff down to 1800, and continuous protection from 1800 to 1892. While it is true that the actual enactment of a low tariff did not occur until 1894, the effect of the prospective change was felt .the very day following the announcement that a low-tariff President and Congress had been elected, since merchants and manufacturers were from that moment unable to safely proceed with their business undertakings in view of c $8 the certainty thai Changes in the tariff would occur, and the uncertainty as to what those changes would be, A study of the protective tariff period must therefore contrast the figured of 1802, wherever possible, with those of I860, the termination of the long period of practically continuous low tariff, and in cases where figures for 1892 are not available those of the census year 1800 are utilized. GROWTH OF WEALTH UNDER LOW TARIFF AND PROTECTION. The total wealth accumulated in the United States during the seventy years of almost continuous low tariff— from 1700 to I860 —was, as shown by census figures, 16 billions of dollars; by 1800 it. had increased to 05 billions, the accumulation during the thirty years of protection being 40 billions, or three times as much as in the seventy years preceding 18G0. In the closing decade of the low-tariff period, 1850-00, the wealth of the country increased from 7 to 10 billions, an increase of billion dollars; in the very next decade, despite the war conditions which pre= vailed, the increase was 14 billions, or 50 per cent more in this decade of protection than in the last decade of low tariff; while iu the decade from 1880 to 1800 the increase was 23 billions, or two and one-half times as much as in the last decade of low tariff. The per capita wealth which in 1800, according to the census, was $514, in 1800 was $1,038, having a little more than doubled in the thirty years of protection. Money in circulation in 1800 amounted to 435 million dollars, though much of it Vvas of a very unsatisfactory character, being uncertain as to value at points distant from the place of issue. In 1802 the total was 1,001 millions, or practically four times as much as in 1800, and every dollar of it good not only in every part of the country, but in every part of the world. Meantime the per capita money in circulation had grown from $13.85 in 1800 to $24.50 in 1802, having thus nearly doubled in the period of thirty-two years under protection— BANK DEPOSITS. Figures of bank deposits of the various classes which form the grand total are not available for so early a date as 1800, but the statistics of savings-bank deposits are available for that year. They show a total of 140 million dollars for 1800; in 1802 they were 1,713 millions, or more than ten times as much as in 1860. Thus in seventy years of almost continuous low tariff the workingmen of the country, the class whose funds are depos- ited in savings banks, had only reached a condition in which they were able to have on deposit 140 millions; while after thirty-two years of protection they had 1,713 millions, or more than ten times as much as at the end of the seventy years of low tariff. The number of depositors in savings banks was, in 1800, 003,870, and in 1802, 4,781,005. Contrast the growth in the last decade of free trade with that of the first decade of protection. During the decade prior to 1800, while the popula- tion grew from 23 millions to 31 millions, the number of depositors in savings banks increased from 251,354 to 693,870, an increase of only 442,510. In the next decade, despite war conditions and with no increase in territory, and less than the normal increase in population by reason of war and the resulting reduction in immigration, the number of de- positors grew from G93,870 to 1,030,840, an increase of 030,976, or more than twice the increase of the former decade. In the ten years prior to 18G0 under low tariff the deposits in- creased $105,840,374, while in the decade following 1800, under protection, the increase was $400,596,854; and it must be re- membered that during a considerable portion of the second period a large number of the wealth producers of the country were | engaged in war. FARM VALUES. Farm values are another measure of prosperity, and the rela- tion of farm values under a period of protection to that under a period of low tariff is a fair indication of the effect of a manufacturing industry upon the values of farm property. In 1860 the value of farms and farm property in the United States PROSPERITY. 99 was 7,980^inillion dollars, and in 1890 16 billions of dollars, having thus more than doubled in the thirty years of protection, as compared with the accumulations in value during the long period under low tariff. The value of animals on farms in 1800 was 1,089 million dollars; in 1890 it was 2,419 millions, having increased 1,330 millions, or 122 per cent in the thirty years of protection. IRON AND COAL. Business activity, and especially activity in the manufactur- ing industries, may be measured with a fair degree of accuracy by the production of pig iron and coal. Up to 1860 the production of coal in the entire country had only grown to 8,51d,123 tons; by 1870, under a single decade of protection, the production had grown to 32,863,000 tons, or nearly four times as much as in 1860; and in 1890 it had reached the enormous aggregate of 110,866,931 tons, or sixteen times as much as in 1860. Pig iron production up to 1860 had only reached a total of 821,223 tons, the figures of that year being larger than those of any preceding year. In a single decade, from 1860 to 1870, the production doubled, the figures for 1870 being 1,665,179 tons, while in 1890 the total was 9,302,703 tons. In the manufacturing industries the total number of persons employed in 1860 was only 1,311,246, and in 1890 was 4,712,622, or more than three and one- half times as many as in 1860; while the wages and salaries paid, which amounted to $378,878,906 in 1860, were in 1890 $2,283,216,529, or six times as much as in 1860. Thus in 1890, after thirty years of protection, the number of persons employed in manufacturing was nearly four times as many as in 1860 at the end of the low-tariff period, and the sum paid in wages and salaries in the manufacturing industries was six times as great as in 1860. Meantime, it should be remembered, popu- lation had barely doubled, the population in 1860 being 31,443,321 and in 1890 62,622,250. The effect of this increase in production upon the facilities for transportation and the cost of transporting material is shown in the fact that the railways of the country grew from 30,626 miles in 1860 to 166,654 miles in 1890, and the cost of transport- ing a bushel of wheat from Chicago to New York fell from 24.83 cents- in 1860 to 5.85 cents in 1890, as shown by the Statistical Abstract of the United States. Still another evidence of the relative growth of business activ- ity in the two periods is that of postal receipts of the Post-Office Department. In 1860 they were but $8,518,067, and had never exceeded that sum in any preceding year. In 1892 they were $70,930,476, or eight times as much as in 1860, while population meantime had but little more than doubled. Prices Reduced by Domestic Competition. > Meantime the domestic competition brought about by the great home industries built up by the tariff, and despite the existence of a tariff which excluded foreign products, had re- sulted in a reduction in the price of pig iron from $22.75 per ton in 1860 to $15.75 per ton in 1892; of steel rails from $166 per ton in 1867, the earliest available data, to $30 per ton in 1892. In the cotton industry alone the wages and salaries paid had grown from 24 million dollars in 1860 to 69 millions in 1890, and the value of the product turned out, from 116 million dollars to 268 millions. Meantime the competition in manufacturing in the domestic market had reduced the price of standard prints from 9.50 cents per yard in 1860 to 6 cents per yard in 1890. Thus the number of people employed in manufacturing in thirty years of protection practically quadrupled, and the sum paid them in wages and salaries was six times as great as that paid in 1860. Under the increased home market thus Offered to the farmers of the country the value of farm property doubled; yet under the competition which grew up within the country among the protected industries meantime, prices of practically all products fell from 25 to 60 per cent, and the cost of transportation was reduced more than 75 per cent. All of the figures above quoted are from the Statistical Abstract of the United States, an official publication and an accepted authority. 100 PROSPERITY. The Cleveland Low Taritt' I'erlod. Following this long period of thirty-two years of protection came four years of low tariff, either actual or threatened. The morning following the election of Cleveland and a Democratic Congress the people of the United States know that a Democratic low tariff would be enacted. From that, moment every importer was expecting to obtain his merchandise from abroad at a less rate through a reduction of the tariff, but was uncertain as to what that reduction would he. Tin* manufacturer was also uncertain as to what the tin ill conditions would be with refer- ence to the raw material which he must import for use in his manufacturing. As a consequence merchants who were accus- tomed to purchase from the home manufacturer were unwilling to give orders because they felt that they might find it profitable to buy from abroad under the reduced tariff. Manufacturers were unahle to make contracts hoth hy reason of this fact and the uncertainty regarding the cost of imported materials which they must import. The effect of this was an immediate check in the manufactur- ing industries, and this in turn resulted in a reduction in the number of employees and in the wages paid. This condition, in its turn, decreased the market offered by these millions of employees to the farmer, the purchasing power of these millions of employees and of the farmers whp were thus affected was re- duced, and the retail merchant thus suffered a loss in business; tlie quantity of material to be carried by the railroads for the 'manufacturing establishments fell off, and the railroads in turn were compelled to reduce the number and wages of their employees, and this again reduced the purchasing power of that class of citizens. The general result was a great falling off in sales by the merchants and dealers of the country, and a great reduction in their purchases from the manufacturers, who thus found their home market still further reduced by this loss of the earning power of the various classes of consumers' and this in turn reacted upon the financial institutions of the coun- try. Disaster followed disaster and failure followed failure, and in the single year 1893, under the mere shadow of free trade, the certainty of tariff reductions and the uncertainty as to what they would be, the number of failures grew from 10,344 in 1S92 to 15.242 in 1893, and the liabilities of the failing firms from $114,044,167 in 1892 to $346,779,889 in 1893. The effect upon the great railroad interests of the country was shown in the fact that seventy-four railroads with a mileage of 29,930 miles were placed in the hands of receivers in the single year 1893, while In the years 1895-96, the closing period of low tariff, 26,571 miles of railway, or one-seventh of the entire number of miles in the United States, were sold under foreclosure. Meantime the freight carried, which was 730,605,011 tons in 1892, fell to 674,714,747 tons in 1894. and the number of passengers carried from 575,769,678 in 1892 to 529,756,259 in 1895. Bank « clearings of the country, another measure of business activity, fell from $60,883,572,438 in 1892 to $45,028,496,746 in 1894, while those of New York alone fell from 36 billion dollars in 1892 to 24 billions in 1894, and did not again reach their normal height until 1898, one year after the restoration of the Republican party and the protective tariff. Large numbers of workmen in the factories lost their employment, and the remainder suffered a reduction in wages. These conditions may be expected to return in case of another low-tariff experiment. ENORMOUS LOSSES UNDER LOW TARIFF. The effect of this upon other industries, especially that of agriculture and those employed in supplying the food, clothing, and household requirements of the persons thus affected, was greatly felt, and in turn caused a reduction in the earnings of those engaged in the various occupations so much dependent upon manufacturing and the prosperity of those engaged therein. Plow great the loss of earnings and wages can not be told in precise terms. Certain facts, however, which indicate in some degree w r hat the loss was are available. The Massachusetts labor reports, which were showing a steady increase in wages PROSPERITY. 101 paid in that State year after year during -rrosiuent Harrison's Administration, showed a decrease in 1893 of over 10 million dollars and in 1894 of over 11 "million dollars }n fcW jMtges of persons employed in the 4,400 manufactur-nig' establishments to which its inquiries were extended. Another inquiry as to wages paid in 200 great manufacturing establishments in the United States from 1890 to 1899 showed that the wages paid in these 200 establishments fell from 53 million dollars in 1892 to 48 millions in 1893 and 40 millions in 1894. Railway em- ployees fell off nearly 100,000 in number, and wages were reduced among those who were so fortunate as to be able to retain their positions. It has been estimated that the loss in earnings by the employees of the manufacturing establishments of the country alone averaged 380 million dollars a year, or over a million dollars a day, during the entire period from the election of Cleveland and a free-trade Congress to the election of McKin- ley and a protection Congress, while the effect of this loss of earnings upon the other branches of industry and commerce closely allied thereto cannot be measured in figures. Tnese conditions of adversity in manufacturing, transporta- tion and in. other commercial and industrial lines were reflected directly upon the 'farmers of the country. The manufacturing industries, which draw, according to the census reports, 80 per cent of their materials from: the products of agriculture, re- duced very greatly their purchases. The millions of men thrown out of employment in the manufacturing establishments and the other industries dependent upon them for their activity reduced their purchases of farm products, and the general de- pression which came to all classes of citizens was felt finally, and perhaps most heavily, by the farmers, who furnish not only the food supply, but a large part of the material for clothing and other manufactures consumed by the people of the country. The farm value of the wheat produced in the United States, which in 1891 was 513 million dollars, by 1893 was only 213 millions, a fall of more than one-half; in 1894 it was 226 millions, and in 1895, 238 millions. The farm value of the corn crop of the country, which in 1891 was 836 million dollars, was in 1896 491 millions. The value of farm animals, which in 1892 was 2,461 millions, fell gradually, and showed in 1896 a total of only 1,727 million dollars, a reduction of about one-third in value of the animals on the farms, while the percentage of re- duction in value of the crops was even greater than this. All of these figures are from the official reports of the Department of Agriculture. Return of Prosperity Under < Protection. The very day following the election of McKinley, however, presented a marked change in the industrial condition of the en- tire country. Mr. McKinley had expressed the opinion that "it is better to open the mills than the mints," and the mills re- sponded the moment his election was assured. The newspapers of the very day following his election teemed with telegrams from all parts of the country announcing that mills and factories which had long been closed were preparing to start up. No one can examine the files of newspapers of that day without being impressed by the promptness with which business re- sponded to an assurance of the restoration of a protective tariff. True, the" merchants could not determine accurately the precise increase which would be made in the rates of duty on that which they had to buy ; the manufacturers could not determine accu- rately the increased amount of protection which they would re- ceive; but the name of McKinley, the newly elected President, was so closely identified with the tariff act under which pros- perity had existed from 1890 to 1892, and the promise had been so clearly made that a special session of Congress would be called to repeal the existing tariff and restore protection, that the announcement of the election of McKinley and a Republican Congress assured a prompt return to effective protection and therefore employment for the people and earnings with which to purchase the products of the farm and factory. Money which had been withdrawn from circulation immedi- ately made its appearance. The money in circulation on July 1, 102 PROSPERITY. 1896, wr.s 1,506 million dollars, on July 1, 1897, 1,640 millions, an increase of 134 million dollars in m single year. From that time on the money .in circulation increased steadily, reaching 2,055 million ctotlars in i960, 2.2-19 millions in 1902, and over 2,500 millions in 1904. The per capita of money in circulation, which under Cleve- land and low tariff fell from .$24.50 in 1892 to $21.41 in 189G, „ passed the $30 line in the closing months of 1903, and is now uearly $31. The bank clearings of the country which had fallen from 60 billions of dollars in) 1892 to 45 billions in 1894 were 65 billions by 1898, 84 billions by 1900, and 114 billions in 1903. Bank deposits, which stood at 4,916 million dollars in 1896, as against 4,619 in 1892, increased to 5,725 millions in 1898, 7,298 millions in 1900, and 9,673 millions in 1903, being almost twice as great in 1903 as in 1896 at the close of the low-tariff period. The total increase in bank deposits in the four years ending with 1896 was but 300 million dollars, while in the next four years, under protection, the increase was 2,382 millions, or prac- tically eight times as much in the four years of protection as in the four years of threatened and actual low tariff. Savings bank deposits, which in 1892 stood at 1,712 million dollars, were in 1896 but 1,907 millions, an increase of only 195 million dollars during the four years of low tariff influence; but in 1900 the total stood at 2,449 millions, an increase of 542 millions, and by 1903 had reached 2,935 millions, the total for 1903 being 1,223 millions, or 70 per cent, greater than in 1896. The number of depositors in savings banks was in 1896 6,065,494 and in 1903 7,305,228, an increase of 44 per cent. MINERAL PRODUCTION. Another means of measuring the effect of the low-tariff period upon manufacturing industries is found in the official figures showing the value of minerals produced in the United States. Minerals are so important a factor in the manufacturing indus- tries, supplying as they do not only a, considerable part of that which enters into manufactures but the coal with \vhich the raw material is transformed into the finished product, that the record of their production, whether stated in quantity or value, furnishes an important measure of general business activity and pros- perity. In 1892, according to. the report of the Geological Sur- vey, the value of minerals produced was $648,895,031, and by 1894 had fallen to $527,079,225, a decrease of nearly 20 per cent. In 1896 the total mineral production stood at 622 million dollars, and by 1900 had reached 1,063 millions and in 1902 was 1,260 millions, or more than double the value of the product of 1896. This contrast between the two periods— that of low tariff threatened or actual, and that of protection— upon the value of the minerals produced in the United States is extremely im- portant in view of the relation of the mineral industry to the manufacturing industry of the country. During the entire four-year period under low tariffs, threatened or actual, the an- nual value of minerals produced was less than that of the last year under President Harrison and a protective tariff, while in the six years since the close of the low-tariff period the value of the minerals produced actually doubled. COTTON CONSUMPTION. Still another measure of manufacturing activity is found in the quantity of cotton consumed by the cotton mills of the United States. The Bureau of Statistics in its official reports shows that the number of bales of domestic cotton taken by the cotton manu- facturing establishments of the United States for their own use was, in 1892, 2,856,000 bales, and by 1896 had fallen to 2,505,000 bales. By 1898 the number had reached 3,465,000; in 1900 was 3,644,000 ; in 1902, 4,083,000 ; but was reduced slightly in 1903 by reason of the excessively high price of cotton, the total for that year being 3,924,000 bales, Thus during the four years of low tariff, threatened or actual, the domestic cotton used in the mills Of the United States actually fell off 350,000 bales, while in the pext four years, under protection, the increase was more than one million bales, and in the entire period since 1896 the increase lias been Vk fftillion bales, PROSPERITY. 103 RAILROAD TRANSPORTATION AND EARNINGS OF EMPLOYEES. Railroad transportation, another index of business condi- tions, shows greatly increased activity under the return to pro- tection. The number of tons of freight carried one mile, which had fallen from 90 billions in 1893 to 82 billions in 1894, was 97 billions in 1897, 114 billions in 1898, 141 billions in 1900, and 150 billions in 1902, or nearly double that of the lowest point under Cleveland and the low tariff. The number of passengers carried, which fell from 575 millions in 1892 to 529 millions in 1895, was in 1902 655 millions. The number of men employed by the railroads of the country, which had fallen from 821,415 in 1892 to 779,608 in 1894, rapidly increased and by 1898 was 874,558, in 1900 was 1,017,653, and in 1902, 312,537. The com- petisation paid to all railroad employees in 1895 was, according to the report of the Interstate Commerce Commission, $445,508,261 ; by 1899 it was $522,577,896, and in 1903, $757,321,415, an increase of 311 million dollars, or 10 per cent, in the annual earnings of railroad employees of the country compared with 1895, under the low tariff. WAGES AND SALARIES. The increase in earnings of persons employed in the manufac- turing establishments of the country can only be estimated, owing to the fact that reports on this subject are made by the United States Census, and therefore figures are only available for decennial years. The fact, however,' that the production of pig iron— that barometer of business conditions in manufacturing interests* — fell from 9 million tons in 1892 to 6% millions in 1894; that the value of minerals produced fell from 648 million j dollars in 1892 to 527 millions in 1894; that the importation of raw material for use in manufacturing fell from 197 million \ dollars in 1892 to 126 millions in 1894; coupled with the well- ! known fact of general depression among manufacturers and the i armies of unemployed who marched upon Washington demanding \ legislation which would give them occupation — shows that the actual loss in earnings during the low-tariff period must have been very great ; while the fact that the census figures of 1900 showed wages and salaries paid in manufacturing establishments at $2,735,430,848, against $2,283,216,529 in 1890 indicates that the re- covery from the depression of 1893-96 must have been very rapid, and that the annual earnings of the employees of the manufactur- [ ing establishments of the country are now many hundreds of mil- lions in excess of those of the low-tariff years. *• GREAT BENEFIT TO THE FARMERS. All of these important conditions in the earnings of the manu- tnring industries and the earnings of their workmen— the in- crease of 50 per cent in sums paid to railway employees, the increase of 66 per cent in the amount of money in circulation, the increase of 60 per cent in the value of agricultural products exported — have had a marked effect upon the prosperity of the farmer. Just as the closing of factories, the suspension of rail- way activities, and the general business depression caused an enormous decrease in the value of farm products of all classes, so the increased activity in manufacturing, the increased wages paid to workmen in the factories, the increase in earnings of railway employees, the improvement in general business activities, and the increase in exportations have increased the value of the products of the farm. The farm value of the wheat crop of the United States in 1893, as shown by the official figures of the Department of Agriculture, was 213 million dollars ; in 1894, 220 millions; in 1895, 238 millions; and in 1903, 443 millions, or more than double the annual average during the years 1893-95. The farm value of the corn crop was 591 million dollars in 1893, 554 millions in 1894, 545 millions in 1895, and 491 millions in 1896, an annual average of 536 millions; while in 1902 the farm value of the corn crop was 1,071 millions, or practically double the annual average value during the Cleveland low-tariff period. \The farm value of the cotton crop of the United States was in 1893 268 million dollars; in 1894, 264 millions; in 1895, 262 millions, and in 1896, 269 millions— an annual average of 266 millions; while for the year 1901 the value was 469 millions, or 104 PROSI'KKITY. 7.~» per cent, greater than the annual average during; the Cleve- land low tariff administration, and in L903 was about equal to that of 1901. TIh- wool production of the country, which fell from 80? million pounds in 1893 to 209 millions in IS!)."), was in Phil 1 :•.]•; million pounds, and with prices tift.v per cent Higher than those of the low-tariff period when wool from abroad was being imported free of duty. The value of animals on farms, which fell from 2,483 million dollars in 1893 to 1.707 millions in 1866, in 1901 for the first time passed the three billion dollar line, being 3,011 millions, and in 1903 was 3,102 millions, having doubled in value. Prosperity Under President Roosevelt. The prosperity which has been a feature of business con- ditions since the return of the Republican party to control a*nd the enactment of a protectee tariff has been quite as strongly marked under the administration of President Roosevelt as at any time in the history of the country. This fact should be of itself a sufficient reply to the cry of the opposition that "Roose- velt is an unsafe man for President." No factor in our national life is more sensitive to adverse or even doubtful conditions than business and finance. In order to test thoroughly the con- dition of business during President Roosevelt's Administration with that of former years a table has been prepared and pre- sented herewith (p. 11G), compiled in all cases from official figures, showing conditions in the various lines of business and industry in the last year of President Roosevelt's term, 1903, compared with the last full year of President McKinley's Administration, 1900, the last full year under President Cleveland, 1896, and the last year under President Harrison, 1892. This table shows, for ex- ample, that the money in circulation in 1892, the last year under President Harrison, was 1,601 million dollars; in, 1896, the last year under President Cleveland, 1,506 millions; in 1900, the last year under President McKinley, 2,055 millions, and in 1903, the last year under President Roosevelt, 2,367 millions, and it may be added that at the present time the tptal exceeds 2,500 mil- lions. The per capita of money in circulation in 1892 was $24.56 ; in 1896, $21.41; in 1900, $26.94, and in 1903, $30.38. This does not look as though capital or money, the most conservative of business factors and the most prompt in responding to adverse conditions, find cause for alarm in the administration of Presi- dent Roosevelt. Savings-bank deposits, which were 4,781 million dollars in 1892, 5,065 millions in 1896, and 6,107 millions in 1900, were 7,305 in 1903. Total bank deposits, which were C619 mil- lions in 1892, 4,916 millions in 1896, and 7,208 millions in 1900, were 9,673 millions in 1903. Bank clearings for the entire coun- try, which were 61 billion dollars in 1892, 51 billions in 1896, and 84 billions in 1900, were 114 billions in 1903. Tons of freight carried on the railroads of the country, which amounted to 730 millions in 1892, 773 millions in 1896, and 1,071 millions in 1900, were in 1902, the latest available year, 1,192 millions. These are a few of the more important items, any one of which may be considered a fair index of business activity and prosperity. But each of the forty-odd items composing the table tells its own story of the prosperity of the particular industry to which it is related. Single-year statements are, however, sometimes misleading, and in order that there may be no doubt as to the perfect fair- ness of this comparison another table is presented showing the annual average of each of the forty-odd articles included in the above-mentioned table during the four years of 1893, 1894, 1895, and 1896 of President Cleveland's term; 1897, 1898, 1899, and 1900, the four full years of McKinley's first term, and the years 1901, 1902, and 1903, under President Roosevelt. Attention is es- pecially called to this table showing the annual average in business conditions during the three presidential periods, which while it fully confirms the table above referred to, strengthens the general statement by its indication of the steady upward movement of business conditions which has characterized the entire seven years since the close of President Cleveland's term and maintained its upward movement down to the latest date for which figures are available. PROSPERITY. 105 These tables have been prepared with great care from official records in every instance, and their accuracy and fairness cannot be called in question. Attention is especially called to their value not only as an evidence of continued prosperity in every branch of our industries and business but as a complete refuta- tion of the attacks made upon the administration of President Roosevelt in its effect upon the business and industrial conditions f the country. Prosperity vs. Adversity. 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.] Interest-bearing debt Annual interest charge Annual interest per capita Treasury receipts, net ordinary Government expenditures, ordinary Money in circulation Money in circulation, per capita Bank clearings, total ... Bank clearings, New York > Bank deposits, total Bank deposits, savings Depositors in savings banks Industrial life insurance in force Life insurance, total, in force Imports, total Exports, total Excess of exports over Imports Exports of manufactures Imports of raw material for manufacturing Gold: Excess imports over exports Exports to Asia and Oceania Crude rubber imports pounds.. Pig tin imports do Tin plate imports do PBODTJCTION. Coal tons.. Pig iron do... Steel rails do... Steel, total do... Tin plate pounds.. Minerals, total value Cotton, total value , Beet sugar, 1,000 tons Wool pounds.. Raw silk, imports do Cotton used in manufacture >r tons.. Animals on farms, total value Hordes on farms, total value Cattle on farms, total value Sheep on farms, total value Net earnings of railways Dividends paid by railways \. Passengers carried 1 mile ;. Freight carried 1 mile tons.. Miles placed under receivership Miles sold under foreclosure Miles built Average receipts per ton mile Tonnage of vessels passing through Sault 8te Marie Canal Failures, liabilities of Post office receipts Wheat,- average price of Corn Oats Homestead entries 1893-1896 1897-1900 1901-1903 Millions Millions Millions 696 941 944 27.9 37.5 27.6 $0.41 $0.48 $0.35 331 459 • 570 335 436 465 1,592 1,859 2.264 $23.29 $25.13 $28.61 51,700 73,300 ' 114 900 29,066 45,131 74.202 4,757 6.223 9.139 1,813 2,169 2,760 4.9 56 6.8 793 1.217 1 723 5,635 7,394 10,051 758 732 917 ' 856 1,251 1,430 98 519 513 188 335 407 183 253 327 • 50 50 4.5 20 49 57 38 45 63 42 63 80 494 164 142 165 210 270 7.96 12 21 17 27 1.27 1.75 2.73 4 96 9.23 14.21 226 698 857 575 731 1,136 266 300 334 26 54 170 271 272 302 8 02 11.09 13 30 251 3.38 8.85 2.050 1,942 3,034 7' 9 512 1.005 879 1,060 1,325 87 97 161 333 416 640 83 107 168 566 529 640 89 100 155 11,474 1.697 193 7,9iil 5,125 795 1 .900 2.891 4.439 $0.85 $0.76 $0.75 14 20 28 230 128 128 77 92 122 $0 70 87 6 83.1 44.4 39.0 45 5 31.3 27.5 40.8 6,174 328 14,241 •(Excess exports.) It Is foolish to pride ourselves upon our progress and pros- perity, upon our commanding position in the international indus- trial world, and at the same time have nothing hut denunciation for the men to whose commanding position we in part owe this very progress and prosperity, this commanding position. — Presi- dent Roosevelt at Cincinnati, Ohio, September 20, 1902, 106 PROSPERITY— SAVINGS BANK DEPOSITS. SAVINGS BANK DEPOSITS. The 1 nltlcs which follow relate to savings banks and savings- bank deposits in tbe United States and show conditions from 1820 down to the present time. They are prepared by the Comptroller of the Currency and may be accepted as an official and reliable statement of the condition of the savings banks of the United States during that period. A careful study of these tables will develop some startling facts with reference to the growth of sav- ings banks under protection. During the long period of almost continuous low tariff prior to 1801 deposits in the savings banks of the country had never reached so much as 150 million dollars, the highest point being 149 millions in 1800. By 1870 the deposits in savings banks had trebled, being in that year 549 million dol- lars, the increase during the decade ending with 1870 being 400 million dollars, or nearly three times as much as the growth dur- ing the 40 years from 1820 to 1800. In the next decade, ending with 1880, the increase was 270 million dollars ; in the next decade, ending with 1890, over 700 millions, and in the decade ending with 1900 more than 800 million dollars. Attention is especially called to the contrast between conditions during the recent low-tariff period and those under protection. In 1893 the deposits in the savings banks of the United States were 1,785 millions, and in the following year dropped to 1,747 millions, an actual decrease of 38 million dollars. The average per capita savings bank deposits in the United States, which in 1893 stood at $26.63, fell to $25.53 in 1894, $25.88 in 1895, $20.56 in 1896, and $26.68 in 1897, the per capita being thus less on July 1, 1897, at the close of the Cleveland low-tariff period than it was on July 1, 1893, practically the be- ginning of that period. Immediately following the return to pro- tection, however, the total savings-bank deposits and the per capita of such deposits began to increase, and the per capit of savings- bank deposits has grown from $26.56 in 1897 to $36.52 in 1903, an increase of 37 per cent. Attention is also called to the table which follows that above alluded to, which shows the deposits by States, and to another table which shows the deposits and number of depositors, etc., in each of the principal countries of the world. It will be seen that the total deposits in savings banks in the United States exceed those in any other country of the world, and that the average for each depositor is also greater in the United States than in any other country. A comparison of the figures of this last-mentioned table with those of the table showing deposits by States shows that the total amount of deposits in the single State of New York, with its 7y 2 millions of population, is greater than that in all the United Kingdom with its 42 millions of people ; while a comparison of other States with the less important countries is also inter- esting. The table which shows the total bank deposits in each State may prove convenient for reference, especially in considering the effect of manufacturing industries upon the business activity and prosperity of the States in which they are located. The table on pages 107-108 are especially interesting in their showing the conditions relative to prosperity during recent years. It will be noted that although the number of savings banks depositors and the amount of their deposits was rapidly in- creasing prior to 1892, there was but little increase in 1893 and, an actual decrease in 1894 in the number of banks, the number of depositors, the amount of money deposited, the average amount due each depositor and the average per capita of deposits in the United States. The falling off in amount of deposits in 1894 com- pared with 1893 was nearly $40,000,000. This is a marked con- trast with conditions in more recent years in which the increase in deposits in the savings banks has averaged more than $100,- 000,000 a year since 1897. The total amount of deposits in the savings banks of the United States has increased 50 per cent since 1897. Attention is also especially called to the table on page 108 which shows the number of depositors and deposits in the savings banks of the principal countries of the world and shows a larger sum deposited in savings banks of the United States than those of any other country and a larger average deposited per indi- vidual in the United States than in any other country. PROSPERITY — SAVINGS BANK DEPOSITS. Number of savings banks in the United States, number of de- positors, amount of savings deposits, average amount due each depositor in the years 1820, 1825, 1835, 1840, and 18J5 to 1899, and average per capita in the United States in the years given. [Compiled in the office of the Comptroller of the Currency.] Year. N limber of banks Number of depositors Deposits. Average due each depos- itor. 1820.. 1825.. 1830.. 1835.. 1840.. 1845.. 1846.. 1847., 1948 1849. 1850. 1851. 1852., 1853. 1854. 1855. 1838. 1857. 1861.. 1862.. 1863. 1864. 1865. 1866. 1867. 1870.. 1871.. 1872.. 1873. 1874., 1875., 1876. 1877. 1878. 1879. 1880. 1881. 1887. 1894. 1895. 1896. 1897. 1898. 1899. 1900. 1901. 1902. 10 15 S6 52 61 70 74 70 83 90 108 128 141 159 190 215 222 231 245 259 278 305 817 336 371 406 476 517 577 647 669 693 771 781 675 663 639 629 629 629 630 636 646 638 684 801 849 921 1,011 1.059 1 030 1,024 1,017 988 980 979 987 1,002 1,007 1,036 1,078 8,635 16,931 38,085 60.058 78,801 145,206 168,709 187.739 199.764 217,318 251,354 277.148 308,863 365,538 396,173 431,602 487,986 490,428 538,840 622,556 693,870 694,487 787,943 887.096 976,025 980,844 1,067,061 1,188,202 1.310 144 1,466.684 1.630,846 1.902.047 1,992,925 2,185,832 2,293,401 2.359,864 2,368,630 2,395.314 2,400,785 2,268,707 2,335,582 2,528.749 2,710,354 2,876,438 8,015,151 8.071,495 3,158.950 3,418,013 3.838,291 4.021,523 4,258,893 4,533,217 4 781,605 4,830,599 4.777,687 4,875,519 5,065,494 5,201,132 5,885,746 5,687,818 6,107.083 6,858.723 6,666,672 7,305,228 $1,138,576 2,537,082 6,973,304 10,613,726 14,051,520 24.506.677 27,374.325 31,627,497 33,087,488 36,073.924* 43,431,130 50,457,913 69,467,453 72 313,696 77,823,906 84,290,076 95.598,230 98,512,968 108,438.287 128,657,901 149.277,504 146,729,882 196,434.540 206,235,202 236,280,401 242,619,382 282,455,794 337,009,452 392,781,813 457,675,050 549,874,358 660.745,442 785,046,805 802,363,609 864,556,902 924,037,304 942,350,255 866,218.306 879,897,306 802,490.425 819,106,973 891,961,142 966,797.081 1,024,856,787 1,073,294.955 1,095,172,247 1,141,530,578 1.235,247.371 1,364,196,550 1,425,230.349 1,524,844 506 1,623,079,749 1,712.769,026 1,785.150,957 1,747,961,280 1,810.597,023 1,907,156.277 1.939.376,035 2,065,631.298 2.230,366.954 2.449.547,885 2 597.094.5S0 2.750.177,290 2,935,204,845 $131.86 149.84 183.09 176.72 178.54 168.77 172.48 168.46 165.63 165.99 172.78 182.06 192.54 197.82 196.44 195.29 195.90 200.87 201.24 206.66 215.13 211.27 215 03 232.48 242.08 247.35 264.70 283 63 299.80 312.04 337.17 34213 368.82 367.07 876.98 391.56 397 42 36163 366.50 353 72 350.71 352 73 356.70 356 29 355.96 356 56 361.36 361.39 355.41 354.40 858.03 858.04 358 20 369 55 365.86 371.36 376 50 372.88 383.54 392.13 401.10 408.30 412.53 417.21 108 PROSPERITY— 8AVIN.G8 RANK DKH tSlTS. \ urn her of savings depositors, aggregate savings deposits, and 7H©i >©r-l< 888^SSS§2oSSg8^S >S o i-i eo co t- ■* t- G\^+ eqe* e* eo to* in t-*t-"co" ao'in" tj< m ^"M^"^o"«M"ejt«'e»o«K'5® £ S SS 2 J£ "*S '2 JG 2 fe "\i ISSS8SS |||||l.g||l ; | ' j : j { ; ; : • t-cOeO'* i :ao*co*©*co*< cm m Tt< t- as m t» < )in©7-i coco- leoffit-cooi la^oooooi ©"■ :©*CCeMC07-icO-*JicOCM©t-©©7H .-«nMinxW'HO'ioco S5h cm PNSqqS^coaqwoNqrHwcs-^MMiot-.M [t-'odeo'inco"-'^®*©* rtinw" cm" o -£**■** a* ©*eo" co"-**©* inin*©"co*co in ,eo^-*7H-*coincocoinin~cM©fr»eMeo^£coTt<©©7Hr-i£©© .7-lCOin-*t--*COCOeOeOa0eOCMeDeMCMCDCM©'Hin©a0'-'7HT*<05in no t--H « : CM CO <^ ' icmcmi |P.§IMS|l|lMl.I.lii.lllllP-ls. . CO CO CO c iinNi>ccwNgc»aoN(»oso5xroj*a-Hp|Ogx^ i cm cm cm oo cq o •<* eq § in © in co_ cm c» in eq ©^ © cm cm t* r in eo* eo « eo* co* ao co* jg co* o" o» co" co" ■<* m" ■* co" eo* © th* jm j** 'cOeOCOCOCOCOCOCOCOCOCOCOCMCMCMlNCMCOCOCOCOeOCO )©©c07*cOint-t-inooeomooc07*7-cMft*^-'i-i^— it-wOHH )t»Oco©cbcM©coincMcS'^"cqt-oi'-<_co_incqinincq©_t^ "© cb"©"t-" © co co ©" m*eo in co"eo*©*cM*t-"© co*co in eo*t- co'co" )^©(MCMcoT-^minincoo5CM05(Mio-*icMcocD-*iincot^ .^r-^Sco^in^i— t-^^in cm co_cqc^_cqcqcq'-H^^cqini> in ; :«§eom t-© © oo-* o m© © cm cm cm t*co m co©© cm 3 m cc ; : i-l 74 CM CM CM CO CO CO CO CO CO CO CO -* Td ■* ■* ^ -* .©©< :82SS ;22s.£&; ■ CO CO t- CO ■* < I©©©©©©©©©©©©' )©©t-co©-^*in^t<©©cococM©^HCoin'-iinco©©cocD I i|2 BS 25 8 S S3 8 8 1 883 S S g g2 § g g 8 > in in" ©" I* co co* i-c r4 t>* ©* ©* »-i cm" co od cm* t-" m* cm" © t-" eo* t>" ■*' l m c- cm t» © cm —i co cm ^ © co -* ■* co co co © t*< © r- co ' tOlft! i in t- ( i •«»< t- < inco©©oo©eoep©eoeo©cp©©t»m ■^t>co- «> t-_ © oq cq in «> -* co i« rt in cq © co i s i s i i i lis s i s i s .CO CO* 00* axiow: COCO CM CO i • t-M ~ 1 7?feSf SlS^Saf cm" cm"© t-in^«7iin7Hcococoe2Tjfc^©©^t-COCOCO(NcOCMCOCOcpcDCt5©int-cD30rO v * ** t-ooeo^CM^ineO©i?:©'HoocDi>©©c0^t'©-*t-cM t- ft^iOi CO CO CM I >©©"*T-ico©aoin i7i-*i7Hcoin-ic0eo icMini->-*cMcoinin co t- in© o oo < co cS8^' ujmooTt<©7HaocOMcO'^t-coooina>'^ Pig. iron, foundry No. l....Ton 15.74 Wire nails 100 lbs 2.1 > Cut nails 100 lbs 1.7 Tin plates 100 lbs 5.: Steel rails Ton 30.( Steel billets Ton 23.< , Rope, manila Pound . i a 1902. b Including 1 Hawaii. c Includes corn, wheat, oats, barley, rye, buckwheat, potatoes, and hay. d Includes statistics of Amer- ican Telephone and Telegraph Company and operating com- panies associated with it. e 1893. f 1895. 1900. 272,474.000 288.636,000 32,529.536 45,670,053 269.116.000 357,000,000 40,000 82,000 622,533,016 1,063.620,548 171,416,393 240,780,238 159 232 8,623,129 13,789,242 1,300,325 2,271,108 5,281.689 10,188,329 41,160,877 121,913,548 359.209,798 677,969,600 385,138,983 147,963,804 49,952,957 70,158,915 2,505.000 3,644,000 9,084,920 13.043.714 30,520,177 57,935,698 36,774.460 49,377,138 82,499,208 102,354,579 72,221,896 79.696,227 281,695 632,946 23,273 26,499 15,088 10,774 226,096.834 138,495,673 4,830,915 8,478,409 1,704 3,516 332,766,979 483,247,526 81,528,154 140,343,653 f 785,034 1,017,653 f 445,508.261 577,264,841 773,868,716 1.071,431.919 535,120.756 584,695,935 82 75 13.730 3,477 17,249,418 22,315,834 .340 .453 .233 .273 3.79 3.84 3.35 5.08 4.94 7.52 4.27 5.39 6.98 8.04 .045 .053 .123 .082 r .258 .297 2.25 2.00 .993 .937 .052 .052 .614 .810 .064 .071 .394 .659 3.55 3.91 .90 1.20 .104 .118 12.95 19.98 2.92 2.63 2.71 2.25 3.43 4.67 28.00 32.28 18.83 25.06 .066 .132 g 1892 figures are for im- ported tin; those of subsequent years of domestic manufacture. h December 1. i Except cotton. j Prices of farm products are those of Chicago markets; Iron and steel, those of Pitts- burg; general merchandise, in most cases, those of New York, and in all cases are wholesale rates. Our -workshops never were so busy, our trade at borne was never so large, and our foreign trade exceeds that of any like period in all our history. — President McKinley at Chicago. Oct. 10. 1899. 118 PR0S1MUI I 5f. Do Trust* Control PrlcfcH? Much has been said about the advance in prices, coupled with the assertion that the advances in cost of living is due to trust control and that the increase in prices has been more rapid than the advance in wages. This general question of wages, and the relation of wages to prices is discussed in the chapter on Labor, to which attention is especially called, but In addition to the facts there presented some statements with reference to the advance and more recent decline in prices is worthy of special attention. That statement, from official and recent reports of the Bureau of Labor, completely disproves the charge, and shows clearly the falsity of the Democratic assertion that cost of living has advanced more rapidly than wages. Another extremely important fact is the marked decline in prices in many articles during the present year, among these articles being many controlled by trusts and great industrial cor- porations, which are constantly charged by the Democracy with advancing prices and with ability to control the same. A table compiled from reports of the Bureau of Statistics shows the prices of principal articles of food and manufactures, in March, 1004, compared with March, 1003: Articles. March, 1903. March. 1904. Dollars. Dollars. 0.05% 0.06% .84 1.12 .26 .28 .09 .09% .08% .07% .04% .04% '.0362% .036 4.45 3.80 .30% .289% 23.10 14.35 21.00 9.75 .02 .01% .016 .014% 32.50 23.00 28.00 28.00 1.50 1.71 .10% .113% .0462% .045 .15 .1287% .0467% .0462% .057 .0512% 4.00 3.65 .105 .0725 .10 .07 .05^ .04% 19.00 15.50 15.00 12.50 .055 .057% .043 .050 .050 .046 .12% .UK .31 .33 .81% 1.07% JWH .58K .43% .48% .09)* ■ UK Prices of imported articles. Coffee, Rio, No. 7 Pound Rubber do . . Japan tea (choice) do.. Manila hemp do . . Sisal do.. Jute do . . . Sugar, raw do . . . Silk, raw do . . . Tin. pig do... Prices of articles of domestic production. Pig iron: Bessemer ton. Southern do... Iron bars pound . Steel bars do Steel billets ton.. Steel rails do.... Petroleum: Crude barrel . . Refined gallon . . Sugar, refined pound.. Copper ■= do Lead do Zinc do Tin plate box.. Lard pound.. Oleostearine do — Tallow do — Pork, mess barrel . . Beef, family do.... Native steers pound.. Texas steers do — Cows do — Hides do.... Wool, Ohio XX do.... Wheat. No. 2 bushels Corn, No 2 do i . . .. Oats, No. 2 do.... Cotton pound . . Of the 40 articles named in this, table, practically all of those in which advances occurred are the natural products of the farm— wheat, corn, oats, and wool— in which the advances cannot be ascribed to the trusts; while practically all of the articles manufactured by trusts or great corporations, such as iron and steel, sugar, copper, tin-plate, show a marked reduction in March, 1904, as compared with March, 1903. If the assertion that trusts are able to control prices were true, how is it that practically all of the trust-made articles in the United States have declined in price during the last year and that, too, during the very time when prices of farm products and prices of many of the articles imported for use in manufacturing were advancing? Attention is especially called to the fact that the single article of trust production in which an advance is shown is petroleum PROSPERITY. 119 both crude and refined, an article upon which no tariff duty is collected, and' in which therefore the assertion that trusts ad- vance and maintain high prices by reason of the tariff is not justified. In practically all of the articles in this table which are subject to duty, whether trust-made or otherwise, the prices in March, 1904, are less than those of the corresponding date of 1903, while the single trust-made article upon the free list is the one in which an advance in price has been made Does the Tariff Control Prices? Upon this subject of relative advance in price of articles on the free list and those upon which a tariff is collected, a table is also presented which includes eleven articles on the free list and twenty-one articles on the dutiable list This table was pre- sented in the House of Representatives by Representative E. J. Hill, of Connecticut. Every article named in this table was in- cluded in the list of "articles controlled by trusts" published in the Democratic Campaign Text-Book of 1902, page 369. Of the 11 articles on the free list every one shows a marked advance in price since 1896, the average advance on all being 53.54 per cent. Of the 21 items on the dutiable list, 12 show an advance in price, comparing 1904 with 1896; three show not change, and six show a reduction. The average advance on the dutiable list is 8.6 per cent, as against 53.54 per cent on the free list. Statement in Congressional Record, February 18, 1904, by Hon. E. J. Hill, of Connecticut, showing the relative advance in prices of free and dutiable articles, respectively (denominated by the Democratic Campaign Book as "Controlled by Trusts"), 1896 to 1904: Items on free list. July, July. 1901. July. 1902. July. 1903. Janu- ary, 1904. Anthracite stove coal (f. o. b. New York) per ton.. Anthracite broken coal (f. o. b. New York) per ton . Copper, lake, ingot (New York) per pound. Flax, Kentucky do — Jute, spot do — Petroleum, crude ( at well) per barrel . . Petroleum, refined per gallon. Petroleum, refined (150 per cent test for export) per gallon. Rubber, island per pound. Sisal, spot do — inder twine do. ... $3,881 3.228 .115 .08 .035 1.0825 .108' .84 .0675 $4,236 3.509 .17 .10 .035 1.1337 .0562 .0975 $0.1225 1.22 .074 $4.80 4.55 .1425 .045 1.50 .14 .1005 .87 .0762 .145 $4.75 5.00 .125 .045 1.85 .15 .1405 .94 .075 .145 Items on dutiable list. July, July, 1901. July, July 1903. Janu ary, 1904. Duty. 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 lb.. Sugar, centrifugal do — Sugar, granulated do Steel rails, Pittsburg — per ton . . Ashtonsalt per bush.. Tin plate percwt.. $2.31 5.25 .065 .065 .85 1.65 .0425 1.25 3.15 2.90 .075 16.00 8.25 .10 12.75 .0525 .035 28.00 2.10 3.45 12.43 5.75 .08 .0625 1.00 1.70 .0475 1.30 2.40 2.10 .09 21.50 16.75 .115 15.87 .0537 .0425 .0524 28.00 2.25 4.19 $2.51 6.25 .95 1.65 $2.48 5.25 .OH .90 1.65 $2.40 07 ' .95 1.65 .08 2.10 2.05 22.50 19.75 125 22.75 0575 0337 2.05 2.20 1.25 11.50 17.75 .1375 18.50 55 .0475 .00 2.25 4.19 017 28.00 2.25 4.00 2.00 1.95 .125 11.00 13.50 .12 15.00 .04 .0347 .0436 28.00 2.25 3.80 $2.25 per gal. 25 p. c. 20 p. c. 50 p. c. and up. 8c. per lb. 30 p. c. 45 p. c. 40 p. c. He. per lb. 6-lOc per lb. 2c. per lb. 5c. per lb. 25 p. c. 5c. per lb. $4 per ton. 2c. per lb. $1,825 per cwt. $1.95 per cwt. $7.84 per ton. 12c. per lb, l^c. per lb. 1L'<) PROSP1 KM V. HKIiATlVK ( H-W.I-. IN BBtOJM "I' AKT1CLKH OF KAKM PRODUCTION AND FARM CONSUMPTION. Two additional tables on pages 144 and 145 show (1) the prices of Leading articles of farm production, and (2) the prices of leading articles of farm consumption. Attention is especially qalled t<> these and to the fact that they efcow in nearly nil cases a greater advance in prices of farm products than in prices of farm consumption, indicating that in this large and important class of thpse engaged in the great industries, earnings have grown more rapidly than the cost of living. These tables have been compiled, for the earlier years from the Aldrich tables on prices, and for the later period from prices tables prepared by the Bateau of Labor and Bureau of Statistics, being in all cases from' official figures. The prices of farm products are from the official publications of the Department of Agriculture. The prices of farm products are those on the farm; those of other merchandise are the wholesale prices in New York. In most cases the prices quoted are an average of the available quota- tions for the year; those of wheat, however, being the prices for December 1st of each year, and those of animals, for January 1st of each year. A study of these tables and the relative advance in prices of the leading articles presents some interesting facts, among them being the following: Wheat, which the farmer sells, shows an advance from 49.1c per bushel in 1894 to 69.5c in 1903, an in- crease of 40 per cent; while sugar, which is a staple article of purchase and consumption by the farmer (a trust-controlled article also) shows an advance from 4.12c per pound in 1894 to 4.64c per pound in 1903, an increase of but 12.6 per cent, as against a 40 per cent increase in wheat. Corn shows an increase of 68 per cent from 1894 to 1903, while coffee increased but 59 per cent meantime. Oats show an increase in price of 70 per cent from 1895 to 1903, and coal an increase of but 8.6 per cent. Horses show an increase of 71 per cent from 1895 to 1903, while nails, an article which the farmer must purchase, increased in the same time but 60 per cent Sheep show an increase of 67 per cent from 1895 to 1903, and wool, an increase of 76 per cent; while carpets, made from the wool, show an increase of but 22 per cent meantime. Cotton shows an increase of 41 per cent from 1896 to 1903; and shirtings, drills, sheetings, and prints averaged show an increase of but 13 per cent, as against an increase of 41 per cent in the price of the raw material" from which they are pro- duced. Hay shows an increase of 38 per cent from 1896 to 1903, and salt for the same period showed a decline of 6.4 per 'cent Swine show an increase of 41 per cent in price from 1896 to 1903. and mineral oil an increase of 37 per cent. Tobacco shows an in- crease from 1896 to 1903 of 15 per cent; men's brogan shoes show a decrease in the same period of 6.4 per cent Potatoes show an increase of 115 per cent from 1896 to 1903, while starch shows a decline of 1.1 per cent in price during the same period. SECRETARY JOB OE THE EMPLOYERS' ASSOCIATION ON RELATIVE ADVANCE IN WAGES AND COST OF LIVING. Two other tables— one showing the advance in prices of arti- cles of common use in # the household, and the other the advance in wages— were prepared ,by Mr. Frederick W. Job, secretary of the Employers' Association of Chicago. The table of prices, entitled "Cost of Diving in Chicago," was compiled in the latter part of 1903 and covers the first six months of 1903, which may be looked upon as the period of the very highest prices of the past few years, prices of nearly all articles having materially declined since that time. This table relates to the cost of living in Chicago in 1898 and*the first six months of 1903, as applied to workmen earning wages from $800 to $1,000 per year. It in- cludes in its grocery schedule, flour, sugar, coffee, tea, potatoes, butter, and eggs; and in its meat schedule, steak, beef, chops, breakfast bacon, ham, lard, and pickled pork. In the grocery schedule he finds an average increase of 5 per cent; in the meat schedule an average increase of 34 per cent; in the milk schedule PROSPERITY, 121 an increase of 20 per cent; in rents, about 20 per cent; in fuel, about 30 per cent; in clothing', a reduction of about 3 per cent; and from this he obtains an average increase in the cost of living in Chicago, over 1898, of 1G.8 per cent. Mr. Job's second table relating to wages "among the increases in rates of wages in the past few years in Chicago," truck teamsters, an increase of 30 to 40 per cent; grocery-wagon drivers, 20 to 30 per cent; garment workers, of whom there are 10,000 in, Chicago, cutters, 40 to 50 per cent advance; sewers, from 25 to 30 per cent; glove makers, from 20 to 25 per cent; railway street car employees, printers, brick layers, mastons, boiler makers, and supply-house clerks, 20 per cent; box makers, 22 Mj per cent; electrical workers, men in lumber yards, and laundry workers, 25 per cent; harness makers, 30 per cent; stockyard employees, 35 per cent; coal miners, 35 to 45 per cent; and sheet metal workers and structural iron workers, 17% per cent. It will be noted that in every one of these cases th^ increase in wages is greater than the average increase which he finds in the cost of. living, and in numerous cases the increase in wages is more than twice as great as the increase in cost of living. Greater Savings Show the Falsity of the Assertion That the Cost of Living Has Advanced More Than Earnings. Figures quoted elsewhere also call attention to the fact that the funds deposited in savings banks, the sums paid for indus- trial life insurance, and the amounts being invested in building associations are much greater at the present time than during the period of abnormally low prices, a period when prices were low because the masses had little with which to buy. The fact that in all these great institutions for the savings of the work- ingmen, the sums being deposited, whether as savings bank de- posits, industrial life insurance premiums, or building associa- tion funds, are much greater at the present time than in earlier years shows beyond question that the assertion that cost of liv- ing has advanced more than wages is false; for if this were true men so employed would be compelled to decrease the amount of their earnings, while in fact their savings bank deposits are to-day 50 per cent in excess of those of 1896, and the amount of industrial life insurance outstanding is more than double that of 1896. National Bank Statistics for 1904, Compared with 1903. The statement which follows, issued by the Comptroller of the Currency on July 2, 1904, shows conditions in national banks on June 9, 1904, compared with the corresponding date in 1903, and is especially interesting in its relation to the assertions with ref- erence to business conditions at the present time as compared with those of last year. It will be seen that in deposits, loans and discounts, circulation, and other features which are usually con- sidered as indications of business conditions the figures of 1904 show an advance over those of the corresponding date of 1903. 1903. Increase. Number of banks Loans United States bonds Other bonds, etc Specie Legal tenders Aggregate resources Capital stock. Surplus and undivided profits Circulation. , Individual deposits . . . 4 939 $3,415.045!751 527,101,439 538,671,472 388,616,378 163,592,829 6,286,935,106 743,506,048 542,183,537 359,261.109 3,200,993,509 5.331 $3,595,013,467 554,460.797 576,898.062 488,664,145 169,729.173 6,655,988,687 767,378. 14B 581,638.528 399,583,838 3,312,439,841 $179,967,716 27,359.358 38,226,590 100.047.767 6,136.344 369,053,581 23,872.100 39,454,991 40,322,729 111,446,332 The upshot of all this is that it is peculiarly incumbent upon us in a time of such material well-being, both collectively as a na- tion and individually as citizens, to show, each on his own account, that we possess the qualites of prudence, self-knowledge, and self- restraint. In our Government we need above all things stability, fixity of economic policy. — President Rooseveft at Providence, R. I., Aug. 23, 1902. 122 PROSPERITY. COMPARISON OF CONDITIONS IN THE UNITED STATES WITH THOSE IN OTHER PARTS OF THE WORLD. The following tables, comparing conditions in the United States with those in other parts of the world, recently published in a leading financial journal of the United States, are sugges- tive and worthy of attention. Comparison of Development In the United States and United Kingdom. During the past twenty years the percentages of increase in a number of vital items in national prosperity are shown by the following table: Percentages of increase 20 years. Population National debt Exports Banking capital Deposits Bank clearings, London and New York Railway mileage Railway capital Railway receipts Railway net earnings Shipbuilding Merchant marine Sailing ships Steamers oa 1 production ig iron production Cotton consumption Wool consumption Great United Britain. States. 18 49 2 *36 24 87 24 53 122 198 69 63 20 67 58 70 54 109 24 67 63 1002 42 43 *44 *31 '56 580 .38 282 11 291 14 169 30 13 ♦Decrease. Condition In the United States Compared with That of the Re- mainder of the World. The following table shows the relation of the United States to the rest of the world: World. United States. Per Cent U. S. Area r square^miles . Population Internal commerce Wealth Banking power" » . . Per capita money in circulation Savings bank deposits National debt Government revenue Government expenditures Stock of gold Stock of silver Gold production Life insurance in force Railroads mileage . Railroads passengers . Railroads receipts. Merchant tonnage Area of coal fields square miles. Coal production tons. , Copper production do.... Zinc production do Pig iron production do Steel production do ... . Wheat crop bushels. Corn crop do... Barley crop do... Rye crop, bushels do . . . Cotton crop bales . Wool crop pounds . Number of telegraph messages Newspapers and periodicals Armed strength, land men : Peace footing * War looting 51,238.000 1,600,000,000 22,000,000.000 $400,000,000,000 -$27,045,000,000 $9.47 $9,900,749,029 $31,662,553,258 $6,924,291,275 $6,908,507,815 5,607,600.000 3.869.300,000 327.000,000 $24,039,486,922 490,000 3,746,000.000 3,840,000,000 34,482.303 471.800 787,000,000 525.357 502.104 44,557.991 36,479,783 3,124,422,000 3,070,920.000 1.777,656,000 1,678,714.000 13,120.000 2,667.686,000 448.019.887 58,794 4,484,736 34,347,684 2,445 $100,000 $14,000, $2,935 $969, $684 1,314. 673 74 $17,035 584, 1,487, 6, 18 15 670 2.244 670 33 10, 287, 91. 616.484 000.000 000.000 000,000 000.000 $30.38 204,845 457,241 326.280 038,903 622,524 300,000 000,000 752.753 194,000 ,000.000 044,814 087.345 194.000 078.668 272,685 127 751 003,448 186.406 063 000 000 000 063,008 631000 758.326 450.000 00,000 21,000 59,866 8.347,684 7.0 5.0 11.0 25.0 52.0 30.0 3.6 9.8 8.5 23.4 17.4 22.6 70.0 39.5 15.5 38,7 17.6 40.9 33.8 51.0 25.2 40.9 41.7 21.4 73.0 37.7 20.0 82.0 10.8 1.3 24.5 PROSPERITY, rv> at © 6. a o £ >- o 5 5 5 6 b. S. h-. >i qc e 5 ? c. fc © <*-. Cj a « ^~ e o 5 V Si © B jg -r •3 o. k OS Q M •a t*. Ci ; u- oS u •*( 5 a g § § 2 ■as b * 35 Si II ■4-i I/} •a-<" co" eo" o* eo" t~ flfioeooo^wwMrHoo 05 M CD CO CO s CO ■* S in m t- w r- HXCOXCOTH«r-0«'icpN c3inmcoooaominoQeoo.-i 3 eo © i—_ oq co eo cq ao co [t-i co oq >eo"©"©oo*©"eo"ao"c I 5 t» 8 Ss os 3 « ' «XCCOCOCOX«rtfflr-9J «*t»Oi5*«»t-QOO j -rh s* -* ^ co 05 oo in in oo w co ' CM* O* CD* "** CO* Si CO* CM* CO* CM* «-! rt" 'eoi-ico-^oot-oot-co- '-'eo'aO*©"'-' 8S3333 ■*r-lO(>H' Q CO 00O5 ©© © < - in 05 m cgxminh-oOrtiNrHOi -*inoiniM«^-tt»NH 't^o5005incoo505^eot- asss co t~- r- 05 ** 05 co t CO CO t~ 00 CO -rf (N < m co in t> t- oo oo i ooQinr-coo5cOTt«aoQ SINnO m" Ci* o" gs" o" ©" NnNKid in-*c5 O -f< 05 m" 05* i-c m" t-* t-- m" o" ^ in Q«-ifrtQO-tlMM''l'h'1i o co t* oo © oq o © m m in cq .4 _* r-T -<' in* i-" in in" in in ei ai 'Oinoi ' t~ t- oo c i oo oo oo c Commerce of the world since 1830. [Aggregate of imports and exports in millions of dollars.] Country. 1830. 1840. 1850. 1860. 1870. 1880. 1890. 1897. 1903. United Kingdom 422 197 220 134 72 96 33 14 144 105 168 43 48 264 547 317 249 158 105 144 48 19 216 197 230 101 96 323 811 456 336 192 139 182 53 24 293 297 336 211 144 326 1,800 801 624 230 225 249 120 38 413 653 451 494 249 853 2.625 1,089 1,017 494 398 317 197 48 653 792 648 614 408 1,200 3.350 1.627 1,411 629 513 437 240 67 1,137 1,478 768 974 518 1,351 3.552 1,493 1,761 566 441 451 283 86 1,488 1,536 797 1,430 629 2,287 3,389 1,450 1,996 618 609 438 301 73 1,915 1,815 826 1,550 440 3.020 4 056 France a 1 702 Germany 2 698 Russia 1)799 Austria-Hungary Italy a637 a312 Spain a97 c 2.431 d 2 418 Holland and Belgium United States Spanish America c965 c 2,292 C664 C 2 866 India 1,960 2.750 3,800 7,200 10,500 14,500 16.800 18,500 22 746 a Preliminary figures for 1903, subject to correction, b Trade over the European frontier only, c 1902. d Fiscal year ending June 30. 124 Total ( \rjx tnlit ii)( PEOSPEBITY. and jxr capita expenditures of the principal countries of the world. Countries. Population. Year. 4,794,000 1901 3,772,000 1902-3 788,000 1902-3 45.405,000 1902-3 6.694,000 1901 5,457,000 1902 1,078.000 1902 3X.1H5;>,000 10D2 58,549.000 1901 32.475,000 1002-3 5,347,000 1901 t>:stuxM> 1902 5,429.000 1901-2 18.61S.000 1902 5,199,000 1901 41,961,000 1902-3 80,372,000 1902-3 Per capita expenditures. Argentina Australasia: Common wealth New Zealand. .. Austria-Hungary. Belgium Canada Cuba France German Empire. . Italy Netherlands Paraguay Portugal. Spain Sweden United Kingdom. United States — Dollars. 60.757,000 142,148,000 30,241,000 647.969,000 116,500,000 50.759,000 19,515,000 695,250,000 553,222,000 356,492,000 61,468,000 11.007,000 62,170.000 .187,846,000 49,593,000 897.790,000 640,323,000 Dollars. 12.69 37.69 38.38 14.27 17.40 9.30 12.40 17.84 9.44 10.97 11.49 17.30 11.45 10.00 9.53 21.39 7.97 Wealth and debt of principal nations. [Eugene Parsons, in Gunton's Magazine, April, 1904.] United State' United Kingdom . France Germany ( Empire) Russia Austria-Hungary .. Italy Spain... Scandinavia Danubian States. . . Belgium Neth&rlands Portugal Greece Argentina Egypt Turkey Brazil Canada Roumania Mexico Uruguay Chile Wealth, (a) Dollars. 100,000,000,000 59,000,000,000 48,000,000,000 40,000,000,000 32,000,000,000 21.649,000,000 15,168,000,000 11,424,000,000 6,220,800,000 4,924,800,000 4,742,400,000 4,224,000,000 1,978,800,000 1,065,600,000 Not stated. Not stated. Not stated. Not stated. Not stated. Not stated. Not stated. Not stated. Not stated. Debt. Dollars. 925,000,000 3,885,000.000 5,856,000,000 b 698,000.000 3,333,000,000 1,112,000.000 2,560,000,000 2,061,000,000 Not stated. Not stated. 504,000,000 466,000,000 670,000,600 168,000,000 509,000,000 500,000,000 726,000,000 480,000,000 265,000,000 280,000,000 168,000,000 124.000,000 113,000.000 Per capita debt. Dollars. 11 92 150 60 24 25 81 110 81 86 151 69 100 53 29 33 50 47 13 a Figures for United States, 1903; United Kingdom, France, and Germany, 1901; remaining countries, 1895. b Exclusive of German States, $2,687,000,000. Estimate of manufactures of principal countries, 1900. [Wm. J. Clark, in Engineering Magazine, May, 1904.] United States $13,004,400,133 United Kingdom 5,000,000,000 Germany v 4,600,500.000 France 3,450,000,000 Austria-Hungary 2,000,000,000 Russia 1.980,000.000 Italy 1,700,000,000 Canada * 800,000.000 Belgium 750.000,000 There Is no "worse enemy of the -wage-worker than the man -who condones mob violence in any shape, or who preaches class hatred; and surely the slightest acquaintance 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 Syra- N. Y., September 7, 1903. DEMOCRATIC ADVERSITY. 125 BUSINESS AND INDUSTRIAL RECORD, 1893=1896. [From Appleton's Annual Cyclopedia, 1893, 1894, and 1895.] July 18, 1893 : Denver, Colo. ; four banks close their doors and there are runs on other financial institutions. July 19 : More banks close their, doors. July 20.: Kansas ; fight between strikers and nonunion miners at Weir City. July 22 : Two bank failures in Milwaukee and runs on banks in many other places. July 24 : More bank failures in the West. July 2G : New York ; two stock exchange firms fail. July 27 : Ten banks suspend, most of them Northwestern. Other business failures reported. July 28: More failures and suspensions, including nine banks in the West and one in Kentucky. August 1 : Collapse of the Chicago provision deal. Many failures of commission houses. Great excitement in the board of trade. August 8: The Chemical Bank, one of the strongest in the country, is unable to fill its weekly orders for small currency. August : Madison Square Bank suspends. August 17: Much excitement on east side New York among Hebrew laborers. Police called out. August 22 : Encounter between anarchists and socialists avert- ed by police in New York. August 23 : Meeting of anarchists broken up by police. August 30: Kansas coal miners strike ended with nothing gained. January 15, 1894: Secretary of the Treasury Carlisle an- nounces his intention to issue bonds. January 17: The Secretary of the Treasury offers a $50,- 000,000 loan for public subscription, according to his announced intentions. January 24: Strike in Ohio of 10,000 miners. January 27 : A mob of foreign miners destroy property at Brantyille, Pa., and elsewhere. February 16 : Many New York silk factories close on account of strike. February 18 : In Ohio all the mines of the Massillon district closed by strike. February 20 : In Boston a riotous assemblage of unemployed workmen dispersed by police. March 2 : Six* thousand miners in Jackson County, Ohio, out of employment. Paterson, N. J. : General strike among the silk weavers. March 3 : In West Virginia striking miners burn the railroad bridge and commit other lawless acts. March 13 : At Paterson, N. J., riotous proceeding on the part of the striking silk weavers. March 17: In Colorado Governor Waite orders State troops to Cripple Creek to suppress mining troubles. March 20: In Boston a large body of unemployed working- men march to the State House and demand employment. March 24 : A movement inaugurated in various parts of the Northern States, known as the Army of the Commonwealth, Coxeyites, etc., proposing marching .to Washington and demand- ing help at the hands of Congress. March 31 : Coxeyites are a source of terror to certain Western towns upon which they quarter themselves. April 1: In South Carolina a large force of State militia is dispatched to the scene of the whisky war in Darlington and Florence. In Ohio a mob of strikers at East Liverpool becomes riotous and several" persons are injured. April 2: In Chicago 5,000 plumbers, painters, etc., go on a strike. 126 l»l-.MOi KM U ADYKKSl IV. At Connelisviii(\ Pa., 5,000 coke workers strike. April .".: in South Carolina the governor assumes control of i he police and declares martial law In all the cities of the State. April 1 : In Pennsylvania r> men killed and 1 wounded in coke riots. April 13: General strike for higher wages on Great Northern Railway. In Alabama: The general council of United Mine Workers orders a strike affecting 8,000 men. April 1G: Strike on the Great Northern spreads to the Northern Pacific. April 20: In Omaha a *mob seizes a train of box cars and attempts to deport Kelly's industrial army, but the army refuses to go. April 21 : About 150,000 miners stop work in sympathy with the coke strikers of Pennsylvania. April 28: Arrival of a division of the Coxey army at Wash- ington. A division of the Coxeyites arrested at Mount Sterling for holding up a railway train. United States troops ordered to assist the civil authorities in the far West. On the Great Northern Railroad system the Knights of Labor are called out on strike. April 29: Kelly's army, 1,200 strong, at Des Moines. April 30: Strike of 2,000 painters in Chicago. May 1 : Attempted demonstrations of Coxey's army on the steps of the Capitol. Leaders arrested. May 2: In Ohio a mob of Italians and Poles attack the iron mills, but the. riot is subdued by the police. May 4 : Further bloodshed in the coke regions of Pennsyl- vania ; killed and wounded on both sides. May 9 : Kelly's army sails from Des Moines on flatboats. May 10 : Several deputy marshals and citizens shot in a conflict with Coxeyites. May 11: Two thousand Pullman car employees strike at Chi- cago for last year's wages. May 12 : The captured Coxey army is removed to Leaven- worth, where there is a strong garrison of regulars. May 13 : Arrest of a commonweal army by United States mar- shal at Greenriver, Wyoming. May 19: Several hundred employees of the Government Print- ing office dismissed. May 19 : Considerable detachments of commonweal armies are suffering from cold and hunger in the neighborhood of Cin- cinnati. May 25 : In Ohio more conflict between striking miners and deputy sheriffs. May 2G: In Pennsylvania the governor «oes to the coke regions to use his personal influence toward allaying the dis- turbances. In Colorado the governor orders out the militia to suppress riotous miners at Cripple Creek. May 27: In Illinois the governor orders troops to Minonk, where a mob has taken possession of a railway train. May 30: In Pennsylvania the governor issues a warning to coke rioters. In Ohio: Governor McKinley orders out the militia to pre- vent interference with coal trains. June 1: At St. Louis 1,000 carpenters strike. General Kelly and his industrial army leave the city. June 4 : At Washington destitution among the commonwealers. June 5: Militia ordered out to quell striking miners. In Idaho a number of commonwealers sentenced to imprison- ment for train stealing. June 7 : In Ohio trains move under the protection of the militia. Kelly and his commonwealers abandon their boats at Cairo and resume their march on Washington. June 9 : Nineteen commonwealers sentenced to jail for var- ious offenses. DEMOCRATIC ADVERSITY. 127 June 10: Coal strikers in Pennsylvania killed and wounded in an encounter with sheriffs at Lamont. State troops on both sides of the Ohio River harassed by strikers. June 11 : Continued destruction of railroad property in Ohio and Alabama. June 17 : The Indiana miners continue to strike. Striking miners in Ohio, Pennsylvania, and West Virginia decide to re- turn to work. Twenty-three commonwealers in Illinois sent to jail for train stealing. June 18: Wisconsin; General Cantwell's industrial army cap- tures a train and rides 200 miles. At Leavenworth 121 comm'onwealers sentenced and sent to various county jails. June 20: On the Gogebic range, Mich., 2,000 miners go on a strike. June 21: Governor of Pennsylvania orders out troops to sup- press disorders in Jefferson County. In Illinois : Twenty-five strikers indicted by grand jury. June 25: In St. Louis and Ludlow, Ky., about 500 employees strike work from Pullman Car Company. ~- June 20 : Boycott against Pullman cars goes into effect. Industrial army disturbances are thus far reported in 14 States and 2 Territories. June 28: The railway strike spreads so as to include nearly all the great railroads between the Mississippi and the Pacific. June 30: The month closes with a most threatening state of affairs in the West and the Northwest ; violence continues to in- crease at all the strike centers. July 1 : The Federal Government takes active steps to pro- tect mails in transit through the region of disturbance. July 2 : United States courts at Chicago issue a general order against strikers, and United States troops are called out. July 3 : Strikers block the operations of all railways from Chicago westward. Regulars and State troops in strong force ordered to the scene of action. July 5: Great destruction of property by rioters at Chicago. Encounters with militia at Sioux City and Asbury Park. July 6 : Many cars burned by rioters in Chicago. Governor Altgeld protests against the intervention of United States troops. July 7 : State troops fire on mob at Chicago. United States regulars assume control of the Northern Pacific m and Union Pacific railroads. July 8 : Regulars disperse mob at Hammond, Ind. ; 1 killed and 4 wounded. July 10: Debs and other labor leaders arrested at Chicago, but released on bail. General call upon all Knights of Labor to strike. Regulars start for Sacramento, Cal., which has been for several days under mob rule. July 11 : About 15,000 workingmen strike at Chicago. Strikers wreck a train at Sacramento, Cal., killing the en- gineer and 3 soldiers and injuring others. July 13 : Regulars fire upon a mob at Sacramento. A detach- ment of Kelly's industrial army captures a train in Ohio. July 15 : Strikers wreck a freight train at Indianapolis. July 17 : Debs and other leaders sent to jail by Federal court. August 10 : Two companies of State militia ordered to South Omaha to restrain packing-house strikers. August 11: An industrial army at Rosslyn, Va., dispersed by State troops. August 13 : Adoption of the amended Wilson tariff bill by both houses of Congress. August 23: Lockout of 25,000 mill operatives at Fall River, September 15 : Strike of 38,000 mill operatives at Fall River. September 20: General strike of garment workers in Boston. September 24: Strike of 3,000 shirt makers in New York. October 23: Residents of Indian Territory ask the Govern- ment to detail troops for the protection of private property. Resumption of strike among the textile workers at Fall River. November 13 : Secretary of the Treasury Carlisle issues a call for another loan of $50,000,000 on five per cent ten-year bonds. 1 28 IMPORTS AND EXPORTS OF T 'EI) STATES. i in ports and e&ports <>f the United 8tttU i 'iM-ul Years. Imports. Exports. Excess of imports. Excess of exports. 1790 $23,000,000 0I.S6S.7S8 85,400,000 74,450,000 72,169,172 90,189,310 78,093,511 71,332.938 81.020,083 67.088,915 62.720,956 95.885,179 95,121.762 101,047,943 108.609,700 136.764.295 176,579,154 130,472,803 95,970,288 156,496,956 98,258.706 122,957,544 96,075.071 42,433,464 102,604,606 113,184,322 117,914,065 122,424,349 148,638,644 141,206,199 173,509,526 210,771,429 207,440,398 263,777,265 297,803,794 257,808,708 310,432,310 348,428,342 263,338,654 331,333,341 353,616,119 289,310,542 189,356,677 243,335,815 316,447,283 238,745,580 434,812,066 395,761,096 357,436,440 417,506,379 435,958,408 520,223,684 626,595,077 642,136,210 567,406,342 533,005,436 460,741,190 451,323,126 437,051,532 445,777,775 667,954,746 642,664,628 724,639,574 723,180,914 667,697,693 577,527,329 635,436,136 692,319,768 723,957,114 745.131,652 789,310,409 844,916,196 827,402,462 866,400,922 654,994,622 731,969,965 779,724,674 764,730,412 616,049,654 697,148,489 849,941,184 823,172.165 903.320,948 1.025,719,237 $20,205,156 70,971,780 66,757,970 69.691,609 68.972.10f) 90,738.333 78,890,789 74,309.917 64,021,210 67*,434,651 71,670,735 72,295,652 81,520,603 87,528,732 102,260,215 115,215,802 124,338.701 111.443,127 104.978,570 112.251,673 123,668,932 111,817,471 99,877,995 82,825,689 105,745,832 106,040,111 109,583,248 156,741,598 138,190,515 140,351,172 144,375,726 188,915,259 166,984,231 203,489,282 237,043,764 218,909,503 281,219,423 293,823,760 272,011,274 292,902,051 333,576,057 219,553,833 190,670,501 203,964,447 158,837,988 166,029,303 348,859,522 294,506,141 281,952,899 286.117,697 392,771,768 442,820,178 444,177,586 522,479,922 586,283,040 513,442,711 540,384,671 602,475,220 694,865,766 710,439,441 835,638,658 902,377,346 750,542,257 823,839,402 740,513,609 742,189,755 679,524.830 716,183,211 695,954,507 742,401,375 857,828,684 884,480,810 1,030,278,148 847,665,194 892,140,572 807,538,165 882,606,938 1 ,050,993,556 1,231,482,330 1,227,023,302 1,394,483,082 1,487,764,991 1,381,719,401 1,420,141,679 $2,794,844 20,280.988 18,642,030 4,758.331 3.197,067 "'5,262.722' 1800 1810 1820 1 V 1 I8H $549,023 l bm 1817 2,977,009 i no.*:. '.'..'. 16,998.873 "315,736 ino ' 23.589,527' 13,601.159 13,519,211 6,349,485 21,548,493 52,240,450 19,029,676 8,949,779 1831 1832 1834 1835 1836 1 837 1838 9,008,282 1839 44,245,283 1840 25.410,226 1841 11,140,073 1842 3,802,924 1843 40,392,225 1844 3,141,226 1845 7,144,211 8,330,817 1 846 1847 34,317.249 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 1849 1850 1851 1852 1853 1854 1855 1856 1857 1858 8,672,620 1859 38,431, 2'jO 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 ] 864 1865 1866 1867 1868 J 869 1870 1871 1872 1873 1874 18,876,698 1875 19,562,725 1876 79,643,481 1877 151,152,094 1878 257,814,234 1879 264,661,666 1880 167,683,912 1881 259 712,718 1882 25,902 683 1883 100 658 488 1884 >. 72 815 916 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 1892... 202,875,686 18,735,728 1894 237,145,950 1895 : 75,568,200 1896 102,882,264 286,263,144 1898 615,432,676 529,874,813 1900.. 544,541,898 1901.. 664,592,826 1902 478,398,453 1903 394 422 442 •Total $34,279,263,510| $37,863,335,440 $*3,584,071,93O * The totals include the figures of all omitted years and are thus the totals of all years from 1789 to 1903. 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U xeocow^cocomcoxcooiQ — 'M«^fC25-wccin'-;Nooao r i»ni>-«tiTi © o 35 IS ■ o m h co -"f m co oi -ri oi o; ■ "■""j SJn8oo^SSS^cbc?-*coinin?ixcoc05'ifico5coo>co "c3O s o0'-i-^ | c>cot't»xeac>n>inx i (NXi>"^S'jt-O5b»O5t-3S S*?lrf^Tj3cD'^COOTCO'co'^"^^^CO'cOCO^^^CO^M9i(ji(N5— iJ>in©i>l>i-X( 2 rf££&Va&£iis^W^i8£ggg££'3'8: 'S-Jt-i^mt-coin-^TposmQcpxwmcos'iin'-osint^in^Hcoco s^ffl(»M0Q«wi»ddd'HiNddd^eo«Mr4«s'imM'*'irf k O ©«2ii©co^cox©x^cDOCi-*C5*(:*cp»-.^f-inQOOJ 2 «q in as Sj_ © ■* t- $> ""J» © tt ■* ■* ~_ r-, 35 9i m ■* -* x t> cq -* © t- c8 5* co* .n* t-" ei co* t» "* ©" in m* © ©* ci* co' x" co* in !>* x* i> i-I ■* •** r* in" ft 3' 8 8 S3 88" 8 gW£ 8 cfS 8 8 2 5 8 9j £ £(S5 S 8 £ ^cpcp-*ico orfSmS-* So^gi^g^g^g^gis^^g^sgsrig^g^sg^gi (X o i0^^xxcJcocopt^t~oo(M(Mco-vincocoinrtt- :«58&S888S33S5l$€S33lS88 «COV*«OM - t X - o u a> *-> '3 P a) a +3 o -J a CO *3 5 A | < 0,o Dollars. 682.151 1,849.642 3.798.518 3,166,431 C 9.860,058 c 10,219.095 d 3.789,420 d 4,382,223 d 4.836,842 c 4.875.838 c 4.565.363 c 5,505,275 3.321.477 4.207.146 5.318.052 9,857.032 3,479.338 5.709.169 11.172.979 9,529,713 7.193,639 10.436,060 11.218.437 8.953,461 13.447,615 12,581.651 OO ' «-* ' ** ' ■wco©ico'(»c>icocowcoco^eoeo-<«*eo-«i*-H'-"^'>^^wco P. . on *» 2 * Co M H Exports of agri- cultural prod- ucts, per cent of total exports. Exports of prod- ucts of manufac- ture, per cent of total exports. s o o o ► 33 S3 V A P M g Raw wool. Year. if P "8 1 1871 $12.65 13 80 l.\91 13.26 11.97 10 29 9.49 9.21 899 12.51 12 68 13.64 13.05 12 16 10 82 10.89 1165 1188 12.10 12 35 13 38 12 50 12 73 9.41 10.61 10 81 1102 8.05 9.22 10 88 10 58 11.89 12 54 S5 12 5.23 4.44 3.75 3.51 3.22 2.77 2.67 2.73 3.64 8.78 4.12 3 92 3.47 8 17 3.30 3.65 3.60 8.60 8.62 8 40 2.68 3.00 1.92 2 17 2.23 2.41 1.99 2.72 3 01 3 06 3.17 8.49 810.83 10 65 12 12 13.81 11 86 11 64 12 72 14.30 14 29 16.43 17.23 13.97 14 98 13.20 12.94 1160 11.98 11.40 1192 13.60 13 63 15.61 12.98 12.85 11.51 12.29 14 42 16 59. 16 29 17.96 1881 17.16 17.32 P. cent. 70.74 74.18 7610 79.37 76.95 71.67 72 63 77.07 78.12 83.25 82 63 75.31 77.00 73 98 72.96 72.82 74.40 73.23 72.87 74.51 73 69 78.69 74.05 72.28 69.73 66.02 66.23 70 54 65.19 60.98 64.62 62.83 62.78 P. cent. Lbs. 14 10 11.10 1519 13.60 11.90 14.77 14.03 13.71 15.90 18 94 19.64 16.15 20.80 16.80 15.16 19.69 16.84 19.59 17.22 18.50 22.38 24.58 17.84 16.45 22.75 18.67 18.77 25 76 27.87 22 57 25.94 25.65 24.64 Bush. 4.69 4.79 4.81 4.46 5.38 489 501 5.72 5.58 5 35 6 09 4.98 6.64 5.64 6.77 457 5.17 5.62 5 84 6.09 4.59 5.94 4.89 3.44 459 4.85 8.95 4 29 6 09 4 74 3 95 6 50 5.81 Lbs. 5.73 6.75 5 67 4.81 5.28 5.21 6.16 5.28 5.03 6.11 5 66 6 36 6.62 6 85 6.69 7.39 6.68 6.81 6.33 6.03 6.44 6.75 7 10 5.13 7.89 6 98 8.40 5 44 4.53 5.72 5.18 6.07 5.74 P. cent. 294 1872 45 3 1873 33.2 1874 17 5 1875 16 57 17.08 21.61 17 79 16 72 12.48 12 92 18 38 16.69 18.81 20.25 20.50 19.45 19 05 18.99 17.87 19 37 15.61 19.02 81.14 23.14 26.48 26.87 24.02 28.21 31.65 28.14 29.77 29.28 22.1 1876 18.3 1877 16 8 1878 16.9 1879 14 2 1880 34 9 1881 1882 17.8 19 1883 1884 18.7 20.6 1885* 18 1886* 28.9 1887*. 18*8* 1889 189 t 27.4 28.9 318 27.0 1891 30.8 1892 1893f 33,1 35.7 189 4 1 14.2 1895t 40.0 1896f 46.9 1897f 57.8 1898 32 8 1899 19.2 1900 34 4 1901 ... 1902 24.9 84.1 1903 37.8 * Democratic President, but Republican control of on* branch of Congress. t Democratic President and low tariff. Total Values of Imports Entered for Consumption and Duties Col- lected Thereon from 1876 to 1903. [Frorr Statistical Abstract.] Average ad valo- Year ending Total. Per Amounts of duty rem rates of duty on- Duty collect- Imports per ed per capita. June 30— of free. collected. Dutiable Free and dutiable capita. Dollars. Dollars. Per cent Per cent Dollars. Dollars. 1877 ...... 439,829,389 32.02 128,428,343 42.89 26.68 2.77 9.49 1878 438,422,468 32.24 127,195,159 42.75 27.13 2.67 9.21 1879 439,292.374 32.45 133,395,436 44.87 28.97 2.73 8.99 1880 627,555,271 33.15 182,747.654 43.48 29.07 3.64 12.51 1881...... 650,618,999 31.13 193,800.880 43.20 29.75 3.78 12.68 1882 716,213,948 29.42 216,138,916 42.66 30.11 4.12 13.46 1883 700,829,673 29.52 210.637,293 42.45 29.92 3.92 13.05 1884 667.575,389 31.15 190.282,836 41.61 28.44 3.47 12.16 1885 579,580,054 33.28 178,151.601 45.86 30.59 3.17 10.32 1886 ...... 625,308,814 33.83 189,410,448 45.55 30.13 3.30 10.89 1887 683,418,981 34.11 214,222.310 47.10 31.02 3.67 11.65 1888 712.248,626 34.27 216,042,256 45.63 29.99 3.60 11.88 1889 741.431,398 34.61 220,576,989 45.13 29.50 3.62 12.10 1890 773,674,812 34.39 226,540.037 44.41 29.12 3.62 12.35 1891 854.519.577 45.41 216,885,701 46.28 25.25 3.40 13.38 1892 813,601.345 56.30 174,124,270 48.71 21.26 2.68 12.50 1893 844.454.583 52.60 199,143,678 49.58 23.49 3.00 12.73 1894 636,614,420 59.53 129,558,892 50.06 20.25 1.92 9.41 1895 731.162,090 51.55 149,450,608 41.75 20.23 2.17 10.46 1896 759,694.084 48.56 157,013,506 39.95 20.67 2.23 10.81 1897 789.251,030 48.39 172,760,361 42.17 21.89 2.41 11.02 1898 587,153.700 49.65 145.438.385 48.80 24.77 1.99 8.05 1899 685,441,892 43.72 202.072,050 52.07 29.48 2.72 9.22 1900 830.519,252 44.16 229,360,771 49.24 27.62 3.01 10.88 1901 807.763,301 41.98 233.556.110 49.64 28.91 3.06 10.58 1902 899,793.754 44.01 251,453,155 49.78 27.95 3.17 11.39 1903 1,007,960,110 43.38 a 280,762,197 49.03 27.85 3.49 12.54 131 KK( ! NTS \\i> I \l'i:\i)Ill kks OK THE UNITED STATES. Receipts and expenditure* of the r>iitc;il Abstract.] Total *$17,096,217,866 Net ordinary receipts. $4,409,951 10.848,740 0.884,214 17,810,670 I0t881,2ia 21.840,868 25,260,484 22,966,364 24,763,089 21,827,027 24.844,117 31,867.451 33,948,426 21,791,036 35,430,087 50,826,796 24.954.153 26,302.562 31.482,750 19,480,115 16,860,160 19,976,197 8,231,001 29,320,708 29,970,106 29,699,968 26,467,403 35,698,699 30,721,078 43,592.889 52,555.039 49.846.816 61,587.032 73,800,341 65.350,575 74,056,699 68,965,313 46,665,366 52,777,108 56,054,600 41,476,299 51,919,261 112,094,946 243,412,971 322,031.158 519,949,564 462.846,680 376,434,454 357,188,256 395,959,834 374,431,105 364,694,230 322.177,674 299,941,091 284.020.771 290.066,585 281.000.642 257,446.776 272,322,137 333,526,501 360,782,293 403.525,250 398,287,582 318,519,870 323.690,706 336,439,727 371.403.278 379,2667075 387,050.059 403,080.983 392.612,447 354,937,784 385,819.629 297,722,019 313,390,075 326,976.200 347,721,705 405,321,336 515.960,620 567.240.851 587,685,337 562,478.233 558.887.526 Net ordinary expenditures. $3,097,452 10.813,971 8.474,753 18.285,535 20,273.703 15.&57.217 17.037,859 16.139.167 16,394,842 15.184,054 15.142.108 15.237,817 17,288,950 23,017,552 18.627.570 17,572.813 30,868,164 37.243,214 33,864,715 26,896,783 24,314,518 26,481,818 25,134.886 11,780,093 22,483.560 22,935.828 27,261,183 54,920.784 47,618,221 43,499,078 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 63,875,876 66,650,213 469,570,242 718,734,276 864,969,101 1,295,099.290 519,022,356 346,729,326 370,339,134 321,190,598 293,657,005 283,160,394 270,559.696 285.239.325 301.238,800 274,623,393 265,101,085 241,334,475 236,964,327 266,947,884 264,847,637 259,651,639 257,981,440 265,408,138 244.126,244 260,226.931 242,483.139 267,932.180 259.653,959 281,996,616 297,736.487 355,372.685 345,023.331 383.477,954 367,525,280 356,195,298 352,179,446 365.774.160 443.368.583 605,072.180 487,713,791 509,967,353 471,190,858 506,272,073 Excess of receipts. $1,312,498 34.778 909,461 5,983.641 8.222,575 6.827.197 8.369.087 9,643,573 9.702,009 13,289,004 14,578,501 10,930,874 3,164,366 17,857,274 19,958,632 Excess of expenditures. 4,585,967 6,837,148 7,034,278 2,438,785 2,644,506 4,803.561 5.456,564 13,843.043 18,761,886 6,719,912 5,330,349 1,330,904 927,208 116,117,354- 6,095,320 35,997,658 102,302,829 91,270,711 94,134.534 36,938,349 9,397,378 24,965,500 39,666,167 20,482,449 5,374,253 68,678.864 101,130.654 145,543,810 132,879,444 104,393,626 63,463,775 93,956,588 103.471,098 119,612,116 105,053,443 105,344,496 37,239,762 9,914,453 2,341,675 79,527,060 77,717,984 91,287.375 52,615,453 $17,864,398,913 $768,181,047 Note. — Does not include receipts from loans or payments on principal of public debt. Fiscal year ended September 30 prior to 1843; since that date ended June 30. Footings include the figures of omitted years prior to 1810, and are totals of all years from 1790 to 1903, ANALYSIS OF THE PRINCIPAL OF THE PUBLIC DEBT. 135 « P..-S lOHOHHa;-ia«( 85 8 88 it--*05^meor-i>»fs-*j^5»(rn* © eo CDinmm-tf-<*<"<*<-*-tf^* C inioioiowi 1 O N'fl M B 1« Xi-iHlflrlX > »t X »>. KS © © MOXNH-* r in" tf> 1* *"" C* 3D t*<* co ?>" i> 05 ©" 1 * ^CB ©Tr-1 C>J i> i> £> t- S> *> COCO h.jf- O e8 rtS)CDOQ0«OP-HO j t- •* -■* m m to co x t- co t- -* ^ © ^ £ ^ ( M^aXffl^^WNX-M'OWX^iOTtifflOMX"?! ©TO «* £ "° » c *"Si.^< > HOONM'< , B(0ot->nMrtrHqa_NaK5 cq<-i i» oj « q: CO* »N CO* 35* m* ■* ©* ©* 05* 05* CO* C35* 05 W* 00* 00* ift (N* lO CO irt" Q* e* ■«* -* «o SCO 05 C*» ii> co ■ in x x © ; XOOBl " »-" a>" co" m" ■-? oo" °\ "*. *"L © C5* co" as" oo" cr* i>" "~(M-*CD05-*O « r J *-+ T^T BMNOXN cocococot-s.-*^"^"**^ |S-»Sow85 *3eS cS o 8 a 05 ■<* co in n cq©©inin ! N* CO '30 TO © O 0J CO(NCD(M'-iCO -f 050 CJTfl'. in05C75COCD-* x" in c» <- t) cq cq !>•-<_: *\ o" 05" co* in* t>* ■* m m* o* — ' ^ <-? 00" 8* -* m" o n" lt»WO«-*wO t» 05 co C5 co 05 mco (Mcovs wcc-^-^coco i>»rtXOB(Mo«^m -hin--il>Tt(M t> 1K5 CO iCV CO iooincoin©x(Nxoo-*coo5( -it^in-HOOtNcocoooco. ■ ; i> in co o x",' I00C5 i°v t> ■ I in "* Tfl ■* Tj( Tj< ( >-. ■ a V * OHNho ©o o©©ommmininmin Oi •* © OS rH CWCM (NCOCOCOincOO — 005^fCD050U OOOJt»!»OX^«ifl»T(iXX*NO i '*'- > q'* co* 00* 00* co" o>* co" m* in* x" -** m* «-J co" o" -J © ©" •*" "5 ©" •*« oo-*iNMH«0'*a^N«©MiooO'Hart int»aaaNfOcoinotOMnxcH^r-i-*a 1 t>"i( 'int-jx m m m m m _ 8^8S£8-*g^*c§cococox© COl^O'^OJTO'* (NtM'-f^lNIN • a c3 if 1! 1 1^ t-( IHK5O0) . . .0005^© >CO(NCO-*t^05CD'-Hl^ t-" •»" 05" cc 05" co" in" "*" 0" -'i* co* 05t>0505OJ>XT-I^.C0t- (Mcoxo5in'<* ■* cq 00 x © tt X) * co cq in f> in in S" co -h" co" x" co" cp" cp" co* •<** co" ©" m" t-" <-" 05" r-" in" 1-7 x" co" 05' co" in" n" m „ ^ M . e "vTt"o*«"o5"t-"io «rH©C^0^©O5O5©XS>t^in5>Tt<'*"*"*COC0(N(N(N n © m in in © 10 © © -1 m co ©o- co©r. J2 e S * 3! "2 in t> t" '-i OS t~ co Tt> in © t- — t~ -* « x cq « co^ in cq -h -h to »^jgg © X) r-( ^1 *^. °9. ©. ^ ^1 © in* co" ■*" co" ©" co" in" cd in" co" co" t-- ©" 05" co" ©" -*" n" (m" w co" as" 05" r^ _r _r„*. ' t^ x" x" -h o" 1— 1 TOin©©XTOi^xxTO-ri©©--iN©in^©'Nio^CN!C'jTO'^2;COO(a-fi!>"*"~-'*< w*coj"-*®cotoxt-coaLOx nco ^ © © in 00 to m_ ©.©■* © © © <^\^i "* '"I ." 5 . fH co" -*" •*" ©* x' (N ©" -h -*" t-" co" 05* co" x" co" co* co* r* ©" o" m' ©* in" «5 ®. c l cv5 „ e *v *> ©" to" i> — * -* x^TO^«TO(N-H^c»c»iNcococo(N35Tt-2jinj2£ ! '7; : S °St^©_-*cqj f! iissisiiBiiisiiiiiiiiiiiilllliiiss 136 a<;kiculturai, PROSPERITY. AGRICULTURAL PROSPERITY UNDER REPUBLICAN AD- MINISTRATION, DEPRESSION UNDER DEHOCRATIC RULE. The farmers of the country create most of its wealth and send abroad 63 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 lias greatly developed agricultural investigation in the last seven years, until scientific inquiry is being made in all our States and Territories and in the isles of the sea under our flag, to the end we may produce the necessities of life for ourselves and tliose 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 coun- tries into continental United States and into our island posses- sions in order to diversify crops and bring into productiveness sections 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 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 1903 was nearly double that of 1896, the last year of the Cleveland adminis- tration. This is rather a startling statement, but it is borne out by the Statistical Abstract, published by the Government and made up from the official figures which have no partisan bias. For the year 1896 the farm value of corn was $491,006,967, that of the wheat crop $310,602,539, and that of the oat crop $132,485.- 033, the total farm value of the three crops for that year being $934,094,538. The farm value of the corn crop in 1900 was $751,220,034, that of the wheat crop $323,515,177, and that of the oat crop $208,- 669,233, making the total farm value of the three crops in 1900 $1,283,404,444, or $349,309,905 more than the farm value of the same crops in 1896. In 1903 the farm value of the corn crop was $952,868,801, that of the wheat crop $443,024,826 r and that of the oat crop $267,661,665, a total farm value of the three crops in 1903 of $1,663,555,292, or $380,150,848 more than the farm value of the same crops in 1900, and $729,460,753 more than their farm value in 1896. Increase in Farm Values. I This increase of farm value under Republican administrations is not accidental. It is a matter of history that rural prosper- ity and Republican rule are coincident, it is equally a matter of record that agricultural depression, mortgage foreclosures, and low prices for farm products accompany Democratic administra- tion of national affairs. The prosperity of the farmer depends upon the prosperity of all other industrial elements of our popu- lation. When the industrial classes are employed at American wages their consumption of farm products is on a liberal scale. 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 has 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 workmen are carrying well filled dinner pails, a conditions which has accompanied Republican supremacy since the birth of the party. Idle men, tramps, and soup houses, fa- miliar sights under Democratic rule, furnish but poor markets for farm produce. The . records for the last four administrations, which alter- nated between the Republican and Democratic parties, show that the farmers received more for their crops under Republican ad- ministrations than under Democratic administrations. AGRICULTURAL PROSPERITY. 137 The farm -value of the corn crops for the four years of Cleve- land's first administration, from 1885 to 1889, aggregated $2,509,- 053,980. In the four years of the Harrison administration which fol- lowed, the farm value of the corn crop aggregated $2,830,938,138, an increase in value of more than $250,000,000 over that of 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 corn crop aggregated $2,182,337,290, a decrease of $750,000,000 from that during the Harrison administration. Then came the Republican administration of William Mc- Kinley, and for the first four years of that administration the farm value of the corn crop aggregated $2,433,526,524, or an in- crease of $250,000,000 over that of the last Democratic adminis- tration, while in the succeeding three years, 1901-03, it was $2,- 891,441,918, or $457,915,394 more in three years than in the pre- ceding four years. 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 ad- ministration aggregated $1,285,407,400, and for the next four years, including the Harrison administration, the farm value of the wheat 'Crop aggregated $1,512,859,980, an increase of $227,- 000,000 in the farm value of wheat -over that for the preceding Democratic administration. For the next four years, under the second Cleveland adminis- tration, the farm value of the wheat crop aggregated $987,614,943, a shrinkage of $525,000,000 in the value of the wheat crop from the preceding four years under Republican administration. 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 the Mc- Kinley administration the farm value of the wheat crop aggregated $1,464,387,877, an increase in value amounting to nearly $500,- 000,000. For the succeeding three years of the Republican ad ministration, 1901-03, the farm value of the wheat crop amounted to $1,332,599,099, almost as much in three years as in the pre- ceding four years and $344,984,156 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 $761,943,820; for the next four years, under the Harrison administration, the farm value of the oat crop increased to $835,395,372; for the next four years, under Cleveland, this crop decreased in value to $698,533,113, and for the next four years, under McKinley administration, it in- creased to $741,217,291. During the last three years of the Republican administration its aggregate value has been $864,905,294, or $123,688,003 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 $388,145,614, in 1900 it was $445,538,870, and in 1903 it was $556,376,880. The farm value of the potato crop in 1896 was $72,182,350, in 1900 it was $90,811,167, and in 1903 it was $151,638,094. Farm Animals. During the seven years of Republican administration the farm animals of the country have increased in value from $1,655,414,- 612 on January 1, 1897, to $2,998,247,479 on January 1, 1904. The number of horses has increased from 14,364,667 to 16,- 736,0^9, and their value from $452,649,396 to $1,136,940,298. The number of mules has increased from 2,215,654 to 2,757,916, and their value from $92,302,090 to $217,532,832. The number of milch cows has increased from 15,941,727 to 17,419,817, artd their value from $369,239,993 to $508,841,489. The number of cattle, other than milch cows, has increased from 30,508,408 to 43,629,498, and their value from $507,929,421 to $712,178,134. 138 Af.iiK i i.i thai. PB06PEBITV, The number of sheep has Increased from .°>6,818,643 to 51,- <•..".<). 144, and their value from $67,020,942 to $183,590,099. The number of Bwine has Increased from 40,600,276 to 47,009,- 987, and their value from $1 (',<;, 2 72, 7 7() to $289,22 1,027. On January 1 of the present year there were 116 horses, 124 mules, LOO milch cows, 143 other cattle, 11(5 swine, and 140 sheep for every hundred of each kind seven years ago. It will readily be perceived from the foregoing figures that the increase in total value is far more than proportional to the increase in number. The total value of sheep, for example, is al- most double, that of mules considerably more than double, and that of horses more than two and one-half times as great as it was when the Republicans took hold of the administration of the eountry seven years ago. The "man with the hoe" has only to look at the record to see which way points to prosperity. Increase of Farm Values. The value of the live stock on the farms of the country, which was reported by the Agricultural Department in 1896 at $1,727,- 926,084, was reported at $2,228,123,134 in 1900, an increase of $500,197,050, and in 1904 at $2,998,247,479, a further increase of $770,124,345, making a total increase in eight years of $1,270,- 321,395. With the increased activity, increased earnings, and increased consumption the farmer has* received greatly increased prices for his productions. The Agricultural Department reports an increase of $353,047,- 657 in the farmj value of the cereals alone in 1900, as compared with 1896, and a further increase of $423,249,664 in 1903, as com- pared with 1896, making a total increase of $776,297,321, these figures being those of 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.- 398,264 in 1896 to $844,616,530 in 1900, and to $873,285,142 in 1903, a total increase of $298,886,878 in the mere surplus re- maining after supplying the great and rapidly expanding home market. Exports of Agricultural Products Under the McKinley, Wilson and Dingley Tariffs, Respectively. This table shows the exports of leading agricultural pro- ducts under the McKinley, Wilson, and Dingley tariffs, respectively, in the fiscal years 1894, 1895, 1899, and 1903. The year 1894 was the last under the McKinley tariff, that of 1895 the first year under the Wilson tariff. (The fiscal year ends June 30, and the Wilson law went into effect in August, 1894.) It will be seen that there was a reduction in the exports of practically all classes of agricultural products under the Wilson law. Under the Dingley law there has been a large increase in the ex- portation of practically all articles. These stubborn facts are a remarkable commentary upon the Democratic assertion that the protective tariff hampers our sales abroad. Tables of the exports of manufactures presented on another page show also that the exportation of manufactures increased very greatly under the Dingley tariff, as compared with the Wil- son law. The average exportation of manufactures during the three years of the Wilson law was 240 million dollars per annum and during the last four years of the Dingley law has been over 400 millions per annum. A table presented on another page also shows that the total exportation during the 57 years of low tariff was actually 514 million dollars less than the imports of those years, while in the 57 years of protective tariff the exports exceeded the imports by 4,099 millions. These facts seem to fully refute the assertion that protection destroys or reduces the export trade or the opportunities in for- eign markets. AGRICULTURAL PROSPERITY. 139 Exports of farm products from the United States tinder three tariffs. [Compiled from reports of Bureau of Statistics.] McKinleylaw • fiscal year 1894. "Wilson law, calendar year 1895. Dingle y law, fiscal year 1899. Dingley law, 1903. Cotton Breadstuff's (all) Provisions (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, unmfg'd Fruits and nuts Cotton seed oil $210,869,298 166,774,558 145,262,273 69,271,760 59,470,041 40,089,721 38,338.357 35,698.180 33.455,092 30,211,154 25.673.699 • 8,807,256 7,942,221 7,180,331 5.159,868 4,540,851 3,972,494 3.844,232 2,766.164 2,426,284 2,379,714 1,717,663 2,027,934 1,744,462 890,654 210.742 126.532 24.087,934 2,424,239 6.008,405 $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 1.485.038 1,300.993' 599.835 1.557,483 701,346 179.856 724 24,707.563 5.450.878 6,429,828 $210,089,576 273,999,699 175.508,608 73.093,810 104.269,169 42,208,465 I 41,557,067 37.880.916 30,516,833 68,977.448 29,720,258 14,548,765 5,079.396 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 $317,065,271 221,242,285 179,839,714 73,756,404 87,795,104 50,854,504 22,178,525 34,781,193 29,848,936 40,540,637 36.847.106 19,839.279 9,455,283 2,250,229 13,364.940 1.549,687 1,224,401 1,909,952 1.623,852 5.698,494 4.662.541 2,569,248 1.850,728 2,543.483 828.483 211.250 3,143.913 35,250.899 18.057.677 14,211,244 Value of principal farm crops in the United States, December 1, 1866 to m3. [From reports of the Department of Agriculture.] Calendar year. Corn. Wheat. Oats. Rye. Barley. 1867.... 1868.... 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*... 1897.... 1898.... 1899.... 1900.... 1901.... 1902 1903.... $411 437 424 522 540 430 385 411 496 484 456 467 440 580 679 759 783 658 640 635 610 646 677, 597 754. 591 554 544 491 501 552 629 751 921 1.017 952 ,450,830 ,769,763 ,056,649 ,550,509 ,520,456 ,355,910 ,736,210 961,151 ,271,255 674,804 108,521 635,230 ,280,517 486,217 714,499 ,482,170 ,867,175 ,051,485 735.560 674,630 311,000 106,700 561,580 918,829 433,451 439,228 146,630 625,627 719,162 ,985,534 ,006,967 ,072,952 ,023,428 ,210,110 ,220,034 ,555,768 ,017,349 ,868,801 $232,109,630 308,387,146 243,032,746 199,024,996 222,766,969 264,075,851 278,522,068 300,669,533 265,881,167 261,396,926 278,697,238 385,089,444 325,814,119 497.030,142 474,201,850 456,880.427 445,602,125 383,649,272 330,862,260 275,320,390 314,226,020 310,612,960 385,248,030 342,491,707 334,773,678 513,472,711 322,111,881 213,171,381 225,902,025 237,938,998 310,602,539 428,547,121 392,770,320 319,545,259 323,515,177 467,350,156 422,224,117 443,024,826 $94,057,945 123,902,556 106,355,976 109,521,734 96,443,637 92,591.359 81,303,518 93,474,161 113,133,934 113,441,491 103,844,896 115,546,194 101,752,468 120,533,294 150,243,565 193,198,970 182,978,022 187,040,264 161,528,470 179,631,860 186,137,930 200,699,790 195,424,240 171,781,008 222,048,486 232,312,267 209,253,611 187,576,092 214,816,920 163,655,068 132,485,033 147,974,719 186,405.364 198,167,975 208,669,233 293,658,777 303,584,852 267,661,665 $17,149,716 23,280,584 21,349,190 17,341,861 11,326,967 10,927,623 10,071,061 10,638,258 11,610,339 11,894,223 12,504,970 12.201,759 13,566,002 15,507.431 18,564,560 19,327,415 18.439,194 16,300,503 14,857,040 12,594,820 13,181,330 11,283,140 12,'009>52 16,229,992 24,589,217 15,160,056 13,612,222 13,395,476 11,964,826 9,960,769 12,239,647 11,875,350 12,214,118 12,295,417 16,909,742 17,080,793 15,993,871 $7,916,342 18,027,746 24,948,127 20,298,164 20,792,213 20,264,015 18,4. 1 5,839 27,794,229 27,997,824 27,367,522 24,402,691 2f, 629, 130 24,454,301 23,714,444 30,090,742 33.862,513 30,768,015 29,420,423 29,779,170 32,867,696 31,840,510 29,464,390 37,672.032 32,614,271 42,140,502 45,470,342 38,026,062 28,729,386 27,134,127 29,312,413 22,491,241 25,142,139 23,064,359 29,594,254 24,075,271 49,705,163 61,898,634 60,166,313 ♦Pemocratic and low-tariff years. AGRICULTURAL PROSPER] n , 3 cJ E-i c9 ,-, ^* ,_ « rt ,_ »^ « ©»*©»* oi oi oioioioi ©» oioioi*-* »* « »-< -* oinoioioi po"©"j>x"ed~ id oo -*.;;< ~- ©*oo'~ t-*x*oo"»- I ©" -•»" — < » «' « a w w d « ■*" »qqM»Ninio«M^!!5qxw*«o ^wiSmNM-tqwaij 2 J5 r? 2" °* 2 P 23 s "2 SR SB S2 °" c w °" a "5 © «» so" p" V o" in" eo" n* ■* ©* j,r,«HHHH85JlJliM™(N © ^*> © c* *^n ©1 *■* © © 00 00 © ©00 ©05'*j.p->*i©^in 05 CO t-_CO 3d x © eo t> ■<* >n *» *- 1- 1- © 1-1 »n o» ■*< © t» © o" so " «-" ©" p* id t^" o" *+ t~* id oi ©" id S3S2©P£' M fc©P^cp^t^l~^m©'N©XX©C!'N©cb{^-'J'.--O0 eq© x© © cm ©^n © os© ^ x ©i © © co ~ © ^ co ^ © t- © © © 4iooin 3?" S3 ©," P* © P* s" p" ■*" o» £-* 05©0" co" p" oi 05* ■*" ©" co" — ■ " 00" co" x" ■»* x" x* co" ■*i* co" co" os" ■* o" XMO^NCOtO- O0'NCD'Mm'*<©eO'NC0t~-f©© — m — X m CC p 00 *> os x t> ^*> iq © o\ eo_oo 00 1> in in eq-<* ©_ © © co £2 "5 "J "5 as p" «*s »»" os" P" p" x* ■* -^" in" -& 00" •«*" t-* m" in" x" co" t>" 05* n? os" ©* x o in os >* © « © •* 3* 05* b-" OS* 05* t-* (M* CO ~ 00* Tt<* ^" CO* l"M t~" p" ■<** O* — <" CO* * 05* p* OS* •<** oi c^cooococoeoco-^icDcococococoininmmminTtiinmcocOcOosxxt- OQOOOQ«MfcOt»'*lOCO«9lT)iMc5cO«00»Nin'-i0500) -* oor-1 eq ^P t-. oq-^pcq u» '-'.^w ■* *rtWO«t' e* -f ed id co" co" x" ~ x* o* co* co" co" id « x* in" os" m" i-T •** x* -^" >d x" ■* •>* o* p" t^" os" os" m i» q w * m q n q q x w in w q x »_ q q co mown os cd m t- co co ^^^^MJSwwwfNWcococooocococococoeococowlciw^^^^ T»b : M©ecxco( N ^p* © oo_-* co<© in in >- ^oo >-<_05 — t-cot-ino5X©^©oo©M< os" co" co" gs" co" os" «>* os" id cd w m" os" im* co* ua e* i-h cooo oj ©_cd ©wx«MX©^-t-x ri © t- X* cp" ©* P* CD* cp" co oi © X* CO* CO* 00* CO* »-" l>* X «■> eo" oi" ■"* ■* ■* id x" co" X* ^os ci© cm >—iXi>cDco m -*m mm cococDcot-^-©x--i© ooeoeowwwweoeo-^-^eoeoooooeocoeoeococoeoco^-^min-^min oooop5iOMKO««Xr((sxo>ioxo«xiMX- eq© ■* cqxmco_© -^co m^t>x HMtoxNx §m p p co t» x —i m t-i -<*< m in co x* " •** i> ™* © ©" oi eo* co* m* os x«ow«(Or-MoowiNioo!in-i«MXO!CTti^aaeei$0'-i > ONMxqwq«qq«ioxwqq'*^i* lO^qxi w xcd ^ r»< o i-"'— -h ,-h c<("s>j oi oi eo ed-* -«*< ■* m"id©*co"co co coco idididco*co"co t» t> eoM'co©^H©Ttixpcot-pxeo«©©©'-i^H-^pcO'-H*»©Ttit>-(N ^r^t-eot-rtcot-05t-p©eocOx©t-i-m^Heoino3'-ico©©©weo t>- i-H ©_©^©_ oqrt co_ cq© © © in in "* © ec © t^x x -" ■*" oi ©" eo" t." e>i i-J eo" w* ©©XfMeo-*©T3.eo-H©xmmTt<©Ttixi^oo'M©©©pi-.co^mco ifliOr)i_eoqqqq !•-_ « ■* m q x ■* co x x_ q w o ©» oq^© nm -CD-<*<>-H©©©©«XX©-H oppppp-H©©«D©eo^t--»ft-(M©X'-ixpTt<(Meot-xr-xcD l(!OOOOOM!Ol-IM!0 01^(MNM«(JlMWO*lOX«(Min«Xrt t» m m m ^ m_ t-_ « ©_ i-j m m ^h t- m © m cq i-< m <-h_ © cq M »» r» ■* © © © oo" ■*' eo* t^ eo ©" ©" m* <-" •* im* m* r-" -*" i> *+ p" tj* ,-* in" co" x m" p* ■* co" ■* t-* x* *-* ©-H-^eo-HiN©»eot-— 't-m- i©ineo©--©mt-T-HQoocpeooo cpco©com©cD©t-xxx©©©©©©©t-inin-*Tt(incDxo5©r-( S?0005®'*OK(Mt-'jiej" eo* co* oo" ©" ©" ©" ©" lG*?fc'"?PS^^S^SSSfc"SSS2s^C^* n P^-x©'p-H(N'eo-^ &fc&fc"^^"S&"S'S*S"S92 SS®o > <^os©os©©o5pp©©© xxxxxxxxxxxxxxxxxxxxxxxxxos©©©© AGRICULTURAL PROSPERITY. 141 Wheat Production and Consumption in the United States, 1897 to 1903. Quantities of wheat produced in the United States, and of wheat and ivheat flour exported, and retained for consumption, 1877 to 1899. [From the Statistical Abstract.] Year ending June 30— Produc- tion, a Exports of domestic. Domestic retained for con- sumption. Quantity. Value Per of crop capita, per acre. Bush. 5.01 $14.65 5,72 10.15 5.58 15.27 5.35 12.48 6.09 12.12 4.98 12.02 6.64 10.52 5.64 8.38 6.77 8.05 4.57 8.54 5.17 8.25 5.62 10 32 5.34 8.98 6.09 9.28 4.59 12.86 5.94 8.35 4.89 6.16 3.44 6.48 4.59 6.99 4.85 8.97 3.95 10.86 4.29 8.92 6.09 7.18 4.74 7.61 3.95 9.37 6.50 9.14 5.81 8.96 World's production. 1877 1878 1879 1880 1881 1882 1883 1884 *1885 *1886 *1887 *1888 1889 1890 1891 1892 *1893 *1894 *1895 *1896 *1897 1898 1899 1900 1801 1902 1903 Bushels. 289,356,500 364,196,146 420,122,400 448,756.630 498,549.868 383,280,090 504,185,470 421,086,160 512,765,000 357,112,000 457,218,000 456,329,000 415,868,000 490,560,000 399,262,000 611.781,000 515,949,000 396,131.725 460,267.416 467,102,947 427,684,346 530,149,168 675.148,705 547,303.846 522,229,505 748,460.218 670,063,008 Bushels. 57,043,936 92,071,726 150,502,506 180,304,180 186-.321.514 121,892,389 147.811.316 111,534,182 132,570,366 94,565,793 153,804,969 119,624,344 88.600,742 109,430,467 106,181,316 225,665,812 191,912,635 164.283,129 144,812,718 126,443,968 145,124,972 217.306,004 222,618,420 186,096,762 215,990,073 234.772.515 202,905,598 Bushels. 232,312,564 272,154,520 269.619,894 268,452,450 312,228,354 261,387,701 356.374,154 309,551,978 380,196,634 262,543,207 303,413,031 336,700,656 327,267,258 381,129,533 293,080,684 386.114,188 324,036,365 231,848,596 315,454,698 340.658,979 282,559,374 312,843,164 452,530,285 361,207,084 306,239,432 513,687,703 467,157,410 Average crop. 1,944,000,000 2.115,000.000 '2,m,ob6,o6o 2,639,746.000 2,414,414,000 2,559,174,000 2.660,557,000 2,502,518.000 2,488.349,000 2,226.745,000 2.879,424.000 2.783,885,000 2,627,971,000 2,929,333,000 3,103,710,000 3,195,853,000 ♦Democratic and low-tariff years. Wheat flour is reduced to wheat at the rate of 4% bushels to the barrel. Value of Farm Animals Under Harrison, Cleveland, McKinley, 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 was at the close of 1892, the last year of the Harrison Administration, when the valuation was $2,483,506,681, the country being prosperous, labor fully employed, and wages good. The lowest point reached in the past 20 years was at tie close of 1896, when mills were closed, tires 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 amounted to 33 per cent, making $828,091,000 the price which the owners of live stock paid for the Democratic experiment of 1892. In the years of industrial activity which followed the election of Mc- Kinley the value of live stock has kept pace upward with the increased earning and spending capacity of American labor, and on January 1, 1900, it had advanced to $2,288,375,413, or a rise of $632,960,000, or 38 per cent, from the depths of the depression. The figures in detail, as shown in the official reports of the Department of Agriculture, are as follows : Value of live stock. Jan. 1, 1892, Harrison. Jan. 1, 1897, Cleveland. Jan. 1, 1900. McKinley. Jan. 1, 1904. Roosevelt. Horses $1,007,593,636 174.882,070 351.378,132 570,749,155 116,121.290 241,031,415 $452,649,396 92,302.000 369,239,993 507,929,421 67.020,942 166,272,770 $603,969,042 111,717.092 514,812,106 689.487,260 122.665.913 245,725,000 $1,136,940,298 217,532,832 508.841,489 712,178.134 133.530,099 289,224,627 Mules Cattle Hogs Total 2,461.755,698 1,655,414,612 2,288,375r413 2,998,247,479 142 AGRICULTURAL PRODUCTS— FARM PRICES. I'riccs of principal agricultural products on the farm December 1, 1892, to December 1, 1903— Continued. [From report of Department of Agriculture.] Corn (per bushel). States. 1892. 1893. 1894. 1895. 1896. 1897. 1898. 1899. 1900 1901. 1902 1903. Cts 67 65 64 62 63 62 60 58 57 44 45 53 54 57 56 60 52 51 50 45 47 43 56 40 42 46 40 37 38 37 32 36 31 28 33 40 70 61 40 72 65 58 Cts 62 57 61 62 69 64 55 52 49 40 44 46 50 65 56 68 59 55 57 54 45 39 55 43 40 45 36 31 35 34 27 30 31 27 25 38 70 63 51 71 66 58 Cts 72 76 69 61 75 68 61 54 55 45 50 47 47 60 58 71 53 49 62 56 47 39 57 44 43 50 37 39 45 43 45 40 43 50 46 44 82 65 61 75 100 58 Cts 54 51 48 52 56 51 45 42 39 34 37 37 38 46 41 47 37 37 40 31 32 27 40 27 27 32 23 22 30 20 18 20 19 18 23 24 75 57 41 56 75 49 Cts 47 45 38 46 49 42 38 36 33 25 32 32 37 46 43 53 45 44 45 41 37 28 34 25 21 24 19 18 22 19 14 20 18 13 18 25 60 78 36 55 Cts 47 45 43 47 54 49 40 38 34 30 30. 38 43 49 48 55 46 45 45 41 40 36 40 35 25 27 21 21 25 24 17 24 22 17 21 32 65 50 38 58 Cts 48 46 44 49 64 52 43 40 40 31 35 35 43 46 48 50 41 39 41 34 29 29 37 27 27 34 25 25 28 24 23 27 26 22 23 36 66 55 40 56 Cts 50 49 47 51 53 50 45 40 41 34 36 38 47 50 50 53 47 46 44 36 38 39 45 37 30 36 27 26 30 24 23 30 25 23 26 33 52 43 43 58 Cts 55 56 50 54 67 55 47 45 45 38 41 49 57 64 57 60 58 58 50 47 43 49 50 40 34 37 32 32 33 29 27 32 32 31 29 42 59 60 48 64 Cts 76 78 73 76 76 75 72 66 62 57 58. 59 73 84 82 85 77 74 75 80 81 65 65 61 57 52 55 57 52 45 52 67 63 54 45 46 90 72 74 77 90 90 Cts 74 73 68 74 78 74 67 56 58 49 51 52 60 69 73 77 67 61 66 66 49 47 54 42 42 52 36 36 50 40 33 33 34 30 4* 45 72 59 59 78 101 67 Cts 66 New Hampshire 63 62 66 81 67 60 57 57 49 51 53 61 South Carolina 69 69 Florida 73 57 54 58 48 51 49 West Virginia 64 56 Ohio 47 46 36 Illinois 36 43 Minnesota 38 38 34 36 28 35 North Dakota 42 62 58 54 75 Arizona 90 Utah 51 55 60 59 63 70 Idaho 70 60 56 55 71 62 47 50 59 69 56 57 62 40 55 53 60 58 57 68 76 76 62 65 66 77 39 43 57 Washington 57 56 53 55 53 56 42 60 62 I 60 20 59 57 61 26 55 67 74 38 39 United States 39.3 36.5 45.7 25.3 21.5 •6.3 28.7 30.3 35.7 60.5 40.3 42.5 Wheat (per bushel.) States. 1892. 1893. 1894. 1895. 1896. 1897. 1898. 1899. 1900. 1901. 1902. 1903. Maine $1.02 $1.02 $0.79 $0.82 $0.84 $1.06 $0.89 $0.91 $0.90 $0.97 $0.92 $0.98 New Hmpshre 1.00 .85 .80 .76 1.00 1.10 .92 .95 .92 Vermont .96 .85 .67 .69 .93 1.04 .90 .85 .78 .94 1.09 .95 Massachusetts .97 .87 .85 .68 .68 "m 1.00 .90 .88 .72 .95 .80 .82 .77 New York .76 .62 .82 .79 .81 New Jersey... .83 .70 .61 .71 .89 .93 .73 .75 .74 .72 .76 .82 Pennsylvania . .81 .65 .56 .65 .83 .91 .68 .66 .72 .72 .73 .79 Delaware .75 .60 .55 .64 .87 .94 .69 .68 .70 .71 .75 .78 Maryland .74 .76 .54 .64 .88 .93 .70 .68 .71 .71 .72 .79 Virginia .76 .63 .56 .65 .80 .92 .66 .69 .72 .73 .79 .84 North Car'lina .89 .72 .65 .72 .83 .94 .78 .82 .82 .82 .92 .97 South Car'lina .93 .98 .87 .88 .89 1.18 .94 .99 1.01 .98 1.02 1.01 Georgia .90 .90 .76 .82 .89 1.03 .98 .98 .95 .94 .98 .96 Florida Alabama .93 .88 .78 .80 .85 1,01 .90 .89 .89 .88 .93 .95 Mississippi .90 .85 .75 .61 .82 .99 .83 .78 .84 .86 .85 .93 Louisiana Texas .75 ,58 .54 .66 .75 .89 .68 .68 .64 .78 .77 .78 Arkansas .80 .65 .55 .59 .71 .84 .58 .64 .65 .78 .67 .78 Tennessee .... .68 .57 .51 .62 .74 .95 .67 .78 .79 .74 .76 .84 AGRICULTURAL PRODUCTS—FARM PRICES. 143 Wheat (per bushel) —Conti nucd 1892. 1893. 1894. 1900. 1? ©I. 1902. 19 $0.82 $0 States. 1895. 1896. U 97. 1898. 1899. ):?. West Virginia $0.75 $0.72 $0.60 $0.69 $0.78 $0 89 $0.71 $0.71 $0.77 $0 77 85 Kentucky .67 .57 .50 .61 76 89 .62 .66 .69 72 .74 81 Ohio .68 .67 .57 .57 .49 .52 .60 .60 78 84 88 87 .66 .64 .64 .65 .71 .69 71 71 .71 80 Michigan 77 Indiana .64 .53 .46 .57 80 89 .63 .64 .70 70 .68 78 .63 .62 .51 .54 *.45 .51 .53 .51 74 70 89 84 .60 .59 .63 .61 .64 .64 69 65 .59 .64 75 Wisconsin 72 Minnesota .61 .51 .49 .44 68 77 .54 .55 .63 60 .61 09 .60 .58 .49 .48 .50 .43 .46 .51 62 70 75 85 .52 .59 .55 .62 .59 .63 80 69 .55 .58 62 Missouri 71 Kansas .52 .42 .44 .45 63 74 .50 .52 .55 59 .55 59 Nebraska .50 .40 .49 .40 58 69 .47 .49 .53 54 .49 54 South Dakota. .51 .44 .46 .38 62 69 .50 .50 .58 53 .51 62 North Dakota. .52 .43 .43 .38 64 74 .51 .51 .58 54 .58 w Montana .69 •60 .54 .73 66 68 .58 .61 .61 67 .62 66 Wyoming .66 .65 .63 .64 62 70 .69 .67 .76 69 .81 71 Colorado .58 .52 .65 .56 61 70 .56 .57 .59 67 .75 86 New Mexico.. .80 .75 .88 .73 66 75 .62 .61 .68 72 .86 75 Arizona .78 .65 1.00 .65 80 74 .92 .64 .71 85 1.05 93 Utah .62 .75 .60 .73 .53 .75 .44 .49 68 69 68 90 .54 .95 .53 .76 .55 .70 70 88 .76 .98 8(1 Nevada 99 .60 .58 .60 .48 .46 .39 .47 .41 65 74 70 68 .51 .54 .50 .51 .46 .51 61 47 .70 .65 75 Washington. . . 69 Oregon .64 .55 .43 .47 72 72 .62 .53 .55 M .67 77 California .68 .53 .57 .60 83 88 .72 .62 .58 60 .80 87 .51 .48 68 76 .52 .53 .53 63 4 .58 .61 63 Ind. Territory. 89 United States .624 .538 .491 .509 .726 .8C 8 .582 .584 .619 .6S .630 .695 OaU (per bushel). States. 1892. 1893. 1894. 1895. 1896. 1897. Cts 32 38 32 33 34 34 27 30 27 23 26 29 37 45 42 53 43 44 38 27 33 28 30 27 20 23 19 18 19 19 16 19 18 15 18 26 33 35 32 41 1898. Cts 34 38 35 37 37 36 31 31 30 30 29 29 37 45 48 54 41 42 38 28 29 28 30 27 24 27 23 23 24 21 24 23 1899. Cts 38 39 37 38 37 37 33 33 29 25 30 33 41 47 48 50 43 50 40 30 34 32 35 32 25 28 23 22 23 22 19 24 22 1900. Cts 38 38 36 38 38 35 32 31 30 30 31 37 45 48 49 50 44 46 40 30 35 35 34 31 26 26 23 23 23 24 20 23 23 24 24 32 42 1901. Cts 50 52 50 55 54 54 48 47 45 45 41 42 51 62 67 72 64 63 60 60 57 45 43 41 39 41 38 40 39 34 36 43 43 37 34 33 36 1902. 1903. Cts 45 44 43 48 49 45 39 41 40 38 38 39 45 52 52 55 51 50 50 38 40 38 41 37 35 35 34 31 29 28 26 30 26 23 23 28 40 38 34 56 Cts 45 43 42 42 43 40 30 35 35 38 35 35 44 53 52 55 51 47 44 42 39 41 38 34 30 32 28 27 27 26 23 25 27 22 25 28 37 40 37 51 Cts 44 49 51 43 47 43 39 38 38 35 39 37 44 53 51 61 51 47 47 39 40 35 39 36 31 34 30 39 30 30 28 29 31 36 35 29 31 48 46 50 Cts 34 35 33 34 39 31 28 29 27 29 27 30 38 49 46 65 42 39 36 26 32 27 32 26 22 23 20 17 18 14 14 18 17 14 17 16 44 39 28 45 Cts 31 35 31 35 31 31 26 28 24 21 23 26 35 48 41 53 41 44 34 34 31 26 28 24 17 19 16 15 17 15 12 17 16 11 13 18 31 53 30 40* Cts 45 44 43 45 43 41 36 39 34 42 38 42 51 59 53 61 55 51 50 49 41 42 41 36 32 33 28 28 30 27 25 28 30 25 29 27 36 50 51 68 75 47 70 48 49 41 51 34 37 Cts 45 48 Vermont 44 49 45 45 41 43 37 40 40 43 52 59 55 60 54 51 46 44 44 4?, 46 41 Ohio k 3ft 3ft 391 39! 34 30 29 32 Kansas 30 Nebraska 20 21 26 35 40 41 41 22 23 27 39 40 42 44 27 29 31 35 47 43 48 48 50 60 60 51 70 44 35 34 44 50 46 39.9 50 41 63 61 Utah 40 33 34 30 39 33 38 40 44 49 68 Idaho 37 35 37 40 41 35 37 38 32 31 28 44 29 28 27 39 30 40 33 44 32 35 35 49 36 40 40 50 38 38 41 47 40 40 41 46 45 38 Oregon California 44 54 34 Indian Territory 35 31.7 32.4 19.9 18.7 21.2 25.5 24.9 25.8 United States 29.4 30.7 34.1 144 PRICES OF ABTICLES OF FARM PRODUCTION. " 1.1 l< lib I ggt*>pn^lO l P l0l '> U > | A 00 A ^. to e oseoco»*iOfteO'*".ci© _^ 9 : l l - C 5 t-. 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US US I us us us us .©t^^t,uscqmus©©ususu5usus©_ - iiawwooN-ftt-oNHOW c^ rj © oc © us us co co oq oo co us i cn cn c* ci co eb t- I ■spanod 001 aed 'aiie.n ©COt-©CO©©©CO-'*Xt~CMb-i •noq. jed 'i«oo © CM © CO CO r— ' ' US CN t-; US US CO i cn eo cn t* •«* -* ■ •pnnod jed 'eajjoo iaM»rtCHM(-a: HONMN-JNOSi -t cm co eo co -t cm co co si .us©eo«eo©w^'oous ,0«9^"lONSlfflOXS!fflCNN»'tt.CS10Nt.l •pJBjC jad 's^adaeo I© US US© US 1-©©©©©©©©©©©© = •qoraa 'sS^s . x x •* ^ co © — iu3-t^f«©-t"us-tco©^u5©i-i©oo©useoeooo at oq oq Si eo .=• us so i-< © "* © - ^- co «c g |C |C t-" si oo oc oo t>^ us' ■+' ■* ko us' us' us' us *f cm i-i cn co eo jjj us' «*" «# -»•' •pj^ jad i eo X cn us © ■ •parage jad 'swaqauiQ ^oooooooo©oob»©©©©©©©©©»-*-*'1''^<'!it©b-©i-;CMCNUSb-U5eMUSCMCN©- us ©' ©' us' us' us' us' -* -t us us' us' us' •pjB^ jed 'S^ai^jiqs . © © CN »t ■<* US 00 © b- '.'S 00 -r © © ■"* IS US © irs © us © © >o US © US l' t-^ OO 00 00 t-^ ©'©' CD ©'©'©'©'©' US US US US US' TJ<' Tj( US US US IT. ©' •pjB£ jad •s^aj^aaqs , CO O S H w 115 N 00 IS in 1(5 IO O O M O O , ' 00 US tt 00 I CN = US Tf i i US ©' US us' i ■pnnod jad 'jeSng i©©ieiGuseoeoMoocst-ususTi<'NNo9© X t- CO © h- i^_ M © r- OO CI © CC 00 ^ r- u: us I © a» cs oo © © CM us © -* t>» t- © rt i ■"t ■* ■>* ■<* •>cK tj.' Tt •<*' us us' Tj- -^i - © -j cm eo •<* i IO © t- X © © . 146 FREIGHT i:\ns <>\ i \km products, drain, Chicago to New York, and average rates, in cents, per oushd. [From Bulletin No. 15, Revised. Miscellaneous Series, of the Divi- sion of Statistics.] Year. 1868 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. 1897. 1898. 1899. 1900. 1901 . 1902. As re- ported by New York Produce Ex- change. Wheat. Via lake and rail. 20.76 18.80 19.15 22.38 21.91 23.64 15.20 12.71 10.58 15.08 11.31 13.30 15.70 10.40 10.90 11.5 9.55 9.02 12 12 11 8.70 8.50 8.53 7.55 8.44 7 6.95 7.32 7.37 6.63 5.05 5.57 5.78 As re- ported by Chi- cago Board of Trade 18.80 19.58 22.76 26.25 21.63 15.37 12.09 10.19 14.75 11.99 13.13 15.80 10.49 10.91 11.63 10 9.02 12 12 11.14 8.97 8.52 8.57 7.59 8.48 7 6.96 6.61 7.42 4.91 6.63 5.10 5.54 5.89 6.37 Via all rail. As re- ported by New York Produce Ex- change. 30.49 26.39 28.98 27.75 29.80 29.17 25.81 20.97 14.80 19.37 17.56 17.30 19.90 14.40 14.60 16.5 13.12 14 16.50 16.33 14.50 15 14.31 15 14.23 14.70 12.88 12.17 12 12.32 11.55 11.13 As re- ported by Chi- cago Board of Trade, 27.09 26.74 26.11 28.47 31.13 27.26 23.61 20.89 15.12 19.56 17.56 17.74 19.80 14.40 14.47 16.20 13.20 13.20 15 15.75 14.50 15 14.30 15 13.80 14.63 13.20 11.89 12 12.50 12 11.60 9.96 9.88 10.62 11.29 Corn. Via lake Via all and rail. rail. As re- ported by Chi- cago Board of Trade. 17.71 19.32 21.24 23.67 20.19 12.48 11.34 9.68 13.42 10.45 12.20 14.43 9.42 10.28 11 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 As re- ported by Chi- cogo Board of Trade. 25.28 24.96 24.37 26.57 29.06 25.42 22.03 19.50 14.12 18.03 16.39 14.56 17.48 13.40 13.50 15.12 12.32 12.32 14 14.70 13.54 12.6 11.36 14 12.96 13.65 12.32 10.29 10.50 11.43 9.80 10.08 9.19 9.21 9.94 10.54 Live stock and dressed meats, Chicago to New York, freight rates, in cents, per 100 pounds. Average Cattle. Hogs. Sheep. Horses and mules. Dressed beef. Dressed hogs. Year. Refrig- erator cars. Com- mon cars. 1880 55 35 36 40 31 31 33 33 22 25 23 27 28 28 28 28 28 28 28 25 28 28 28 28 43 31 2!) 32 28 26 30 32 26 30 28 30 28 20 30 30 30 30 30 25 30 30 30 30 65 61 53 50 44 43 42 40 31 30 30 30 30 30 30 30 30 30 30 25 30 30 30 30 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 60 88 56 57 64 51 54 6t 62 46 47 39 45 45 45 45 45 45 45 45 40 45 42.9 41.2 45 1881 1882 1883 1884 1885 1886 1887 59 46 47 39 45 45 45 45 45 45 45 45 40 45 42.9 41.2 45 64 1888 44 45 39 1889 1890 1891 46 1892 45 1893 45 1894 45 1895 45 1896 .% 1897 45 45 1898 45 1899 40 1900 45 1901 42.9 1902 41.2 1903 45 FREIGHT RATES ON GRAIN, FLOUR, AND PROVISIONS. 147 Average freight rates on grain, flour, and provisions, in cents per 100 pounds, through from Chicago to European ports, by all rail to seaboard and thence by steamers, from 1894 to 1903. Shipped to— Articles. 1894. 1897. 1900. 1903. Liverpool Do 32.5 33.16 44.06 34.63 35.03 46.59 32.88 34.93 45.75 46.88 50 50 50 55.31 66.56 55.31 62.5 33.6 36.81 44.4 35.23 39.06 52.5 34 36.12 48.14 51.09 51 52 52 57.28 68.53 57.28 64.13 29.48 27.9 48.84 30.98 31.56 55.31 31.1 35.01 55.87 51.09 50 51 51 55.31 64.5 55.31 64.12 22.68 Sacked flour Provisions 25.19 Do 41.9 24.43 Do Sacked flour Provisions 25.38 Do 46.88 23.56 Do Sacked flour...... Provisions do 25.19 Do 44.06 49.69 do 47 do 42 do 42 do 49.69 do 52.5 Stettin do 49.69 do 56.25 Average annual freight rates from 1870 to 1903. [From Statistical Abstract.] Year. Freight rates on wheat per bushel. Freight rates on can- n e d g o o ds, per cwt., from Pacific coast to New York. Chicago to New York, by rail. Buffalo to New York, by canal. Less than car- loads. In car- loads. 1870 Cents. 33.3 31 33.5 33.2 28.7 24.1 16.5 20.3 f7.7 17.3 19.9 14.4 14.6 16.5 13.1 14 16.5 15.7 14.5 15 14.3 15 14.2 14.7 12.9 12.2 12 12.3 11.6 11.1 10.0 9.9 .10.6 11.3 Cents. 11.2 12.6 13. 11.4 10. 7.9 6.6 7.4 6. 6.8 6.5 4.7 5.4 4.9 4.2 3.8 5. 4.5 3.4 4.8 3.8 3.5 3.5 4.6 3.2 2.2 3.7 2.8 2.8 3 2.5 3.5 3.8 4 $3.66 3.76 3.74 3.69 - 3.78 3.66 3.77 4.06 4.17 4.20 4.20 2.54 1.50 1.50 1.50 1.50 1.18 1.55 1.89 2.30 2.30 2.30 3.30 2.30 2.30 2.30 1.91 1.90 1.90 1.90 1.90 1.90 1.90 1.90 $3.66 3.76 3.74 3.69 3.78 3.66 3.77 4.06 4.17 4.20 4.20 2.54 1.50 1.50 1.41 1.25 1.01 1.20 1.13 1.06 1.00 1.09 1.05 1.00 1.00 1.00 .75 .76 .75 .75 .75 .75 .75 .75 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 1897 1898 1899 1890 1901 1902 1903 148 FARM AND FACTORY. VALUE OF THE FACTORY TO THE FARMER. Practical and Statistical Evidence that Manufacturing Establish- ment!* Increase the Earnings of Farmers in the Section Where Located and Advance the Permanent Value of Farm Properties — A Comparison of Conditions in the Manufacturing and Non- manufacturing .Sections, Based Upon Official Figures. 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 great manufacturing industry in the country — an indus- try which employs 5 million people and pays wages and salaries amounting to 2% billions of dollars per anuum — 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. McKinley remarked in the House of Representatives 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 property and all values for miles surrounding it ;" and Thomas B. Reed, of Maine, inquired, "Which is it better for the farmer to do — send his surplus 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 Representative Brewer, of Michigan, in the Fiftieth Congress, "that he cannot send to foreigners his potatoes, vege- tables and many other things which he grows 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 diver- sified 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 manu- factories next to the plow and the pasture and adding connect- ing railroads and steamboats has produced in our distant in- terior country a result noticeable by the intelligent portions of all commercial nations." The table which follows, 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 Mississippi 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 manufacturing 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, includes all of the New England and Middle States and Maryland, District of Columbia, Ohio, Indiana, Illinois, Wisconsin, and Michigan. This manufacturing section contains, speaking in round terms, one-half (50.9 per cent) of the population of the United States, while the agricultural but non-manufacturing 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 produced 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, Tn§ FARM AND FACTORY. 149 section designated as the manufacturing section has no advan- tage in soil or climate over large portions of the other section. More than one-half of the wheat, two-thirds of the corn, all of the cotton, and by far the largest share of the meat and wool sup- ply of the United States are produced in the agricultural and non-manufacturing section, while more than three-fourths of the manufactures are produced in the manufacturing section, the popu- lation in the two sections being practically 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 manufac- turing of the United States and the other approximately three- fourths of the agricultural industry of the country— gives an op- portunity 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 annua* 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 6f all farm lands in the manufacturing section in 1900 was, ac- cording to the census, $24. per acre, and in the non-manufactur- ing 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, including buildings, was, in the manufacturing section, $58 per acre, and in the other section but $31. The average value of buildings, which represent in some degree the savings of the farmer, was in the manufacturing sec- tion, $15 per improved acre and in the non-manufacturing sec- tion $5.50 per improved acre, while of implements used upon the farms the value per improved acre in the manufacturing sec- tion was nearly twice as great as in the non-manufacturing sec- tion. Coming to the value of farm products, the average value per improved acre in the manufacturing section was $141, and in the non-manufacturing 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 manufacturing section was $60, and in the non-manufacturing section $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 of prosperity, earnings, value of property, etc., the condition of the farmer in the manufactur- ing section was, according to the figures of the last census, much higher than that in the non-manufacturing section, despite the fact that the non-manufacturing section has soil, climate, lands, and producing power quite as favorable and in many cases more favorable than those of the manufacturing 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 prod- uts per person engaged," the earnings of the farmer in the manu- facturing section are 57 per cent, greater than those in the non- manufacturing section whose soil, climate, etc., and producing capacity certainly equal, if they do not surpass as a whole, those of the manufacturing 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 permanent pros- perity, is, in the manufacturing section, $606 per capita and in the non-manufacturing section $278 per capita, while in other evi- dences 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 section. 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 latter could be utilized to obtain data for a later year than the census. Attention is called to the map of the United States on the cover of this volume, which indicates the two sections here dis- cussed and some of the countries presented. 150 FARM AN!) FACTORY. Relative conditions of prosperity in the manufitctiirinu and von- inanufiuturiny sections of the t'nitcd States, respect irely* [From Census of 1900.1 M TeS rinK Other S ta te». 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 1900 Average value per acre of all farm lands Average value per acre of all lands and buildings. Average value per acre of land (improved only) and buildings Average value of buildings per 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 in savings banks, total Deposits in savings banks, per capita 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 property, assessed valuation Real and personal property, per capita Salaries paid teachers in public schools Newspapers published, number Newspapers, aggregate circulation 50.9 49.1 14.1 85.9 $10,021,718,461- $2,988,318,053 77 23 $2,194,936,683 $536,471,656 4.437.714 1,273,917 $24.07 $12.78 $32.50 $14.85 $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 $394.50 $2,200,439,838 $249,108,047 $56.90 $6.67 $5,949,984,845 $1,384,666,395 $153.80 *37.10 $76,356,970,422 $8,225,479,659 $1,973.50 $220.40 $8,613,200,000 $2,167,500,000 $222.65 $58.10 $23,445,809,898 $10,388,667,238 $606.25 $278.50 $85,234,961 $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 Maryland, District of Columbia, Ohio, Indiana, Illinois, Michigan, and Wisconsin. PROGRESS IN flANUFACTURINQ IN THE UNITED STATES. The following table shows the gross value of manufactures in the United States at each census year since 1850: 1850 $1,019,106,616 1860 1,885,861,676 1870 4,232,325,442 1880 / 5,369,579,191 1890 .* 9,372,437,283 1900 13,039,279,566 Divided into principal groups, the showing for 1900 is : 1. Food and kindred products $2,272,702,010 2. Iron and steel, and their products. . 1,793,490,908 Textiles 1,637,484,484 Hand trades 1,183,615,478 Lumber and its manufactures 1,030,906,579 Miscellaneous industries 1,004,092,294 Metals, other than iron and steel . . 748,795,464 Paper and printing 606,317,768 Leather and its finished products. . 583,731,046 10. Chemicals and allied products 552,891,877 11. Vehicles for land transportation... 508,649,129 12. Liquors and beverages 425,504,167 13. Clay, glass and stone products.... 293,564,235 14. Tobacco 283,076,546 15. Shipbuilding 74,578,158 This grand result gave employment to 5,316,802 wage earners earning $2,328,691,254; 307,174 officials and clerks earning $404,- 230,274 in 512,734 establishments. Conservatively estimating the increase in all lines for the three years since 1900 and bearing in mind the immense immigration of each year we can safely assume our present industrial position to be: Establishments 600,000 Workers and officials 7,000,000 Yearly wages and salaries $3,750,000,000 Yearly product $15,000,000,000 Wealth $100,000,000,000 SHEEP AND WOOL INDUSTRY. 151 THE SHEEP AND WOOL INDUSTRY. Some Figures on the Losses Under Free Trade in Wool. The losses to the sheep and wool producers of the country through the Wilson-Gorman tariff law which placed wool on the free list are well remembered in general terms, but the actual figures regarding the fall in the value of sheep and the reduction in the number of sheep and the wool produced are such as to justify presentation. The figures of the Department of Agricul- ture show that the number of sheep in the United States on January 1, 1893, two months after the election of President Cleve- land, 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, 30,818,643 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 number of sheep had reached 63,964,876, and the value $168,315,750, an in- crease of practically 75 per cent in the number, and 150 per cent in the value of the sheep in the country. This, however, 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 was 303 million pounds and by 1895 had fallen to 209 million pounds and did not again reach the 300 million line until 1901, when it was 302 millions, and in 1902, 316 millions. Here was a reduction of practically one-third in the quantity of wool produced in 1895 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 care- ful estimate of the value of the wool product of the United States made by an eminent authority on the subject puts the total value of the wool product of the country in 1892 at 79 million dollars, and in 1896 at 32% millions, a loss of 46% 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 approximately 400 million dollars for the four years of the Cleveland Administration. In 1902 the value of wool was estimated by experts at $65,000,000, or double that of 1896. Effect of Protection and Free Trade in Regard to Sheep. [Extracts from remarks of Hon. C. H. Grosvenor of Ohio-, in daily Congressional Record, June 7, 1900.] The official reports of the United States Government upon the subject of sheep raising and sheep values, which I will present, teach a wonderful 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 upon raw wool amounted to no more than a revenue tariff on yarns and some other goods pro- duced 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 about 6,000,000. The McKinley 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 be- fore the free-trade election of 1892. 152 SHEEP AND Wool. I NIHNTKY. The Wilson tariff, with free trade la wool, practically wont into effect when Mr. Cleveland was elected, and Immediately the Hocks throughout the country began to decrease, and from 1883 to 1896 decreased by abou4 9,000,000. The Dingley tariff reimposed the scientific schedules of the McKinley tariff, 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 J896 to and including #00 the number of sheep increased by 1,042,411. The effect of protection and free trade in regard to the number of sheep owned throughout the country is not more Impressive than the effect as to value. Under the Morrill tariff the 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 highest price $2.6G. Under free trade the lowest price was $1.58 and the highest price $1.92. Under the Dingley tariff the lowest price was $2.75 per head, and now the value has advanced to $3.90 per head, the highest average price in the history of the nation. Report of the United States Government on sheep raising from 1878 to 1898, inclusive, and 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 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 $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 $79 023 984 1879 90,230.537 1880 104,070.759 1881 106,594.954 1882 124,365.835 The tariff of 1883: 1883 119,902,706 1884 107 960 650 1885 92,443,867 1886 89 872 839 1887 89 279 926 1888 90,640,369 1889 100,659,761 The McKinley tariff: 1890 108,397,447 1891 116,121 290 1892 125,909.264 The Wilson tariff, free trade in wool. 1893 89,186,110 1894 66,685,767 1895 65.167,735 1896 67,020,942 The Dingley tariff: 1897. . . 92 721 133 1898 107,697.530 1899 a 1900 63,121,881 3.90 246,175,335 a United States Government report for 1899 not yet published. In 1890 we had arrived at the lowest stage of the wool-growing industry since the rebellion, and possessed 30,818,043 sheep, which, under the fostering care of protection, were increased to 03,121,881. The value of our sheep in 1890 was $07,020,942, and under the fostering care of protection has reached the enormous value of $240,175,335. In the history of industrial and economic condi- tions of the world no more wonderful result can be shown. Over $664,000,000 Loss in Two Years In Live Stock. [Extract from remarks of Hon. Francis E. Warren, of Wyoming, in the Senate of the United States, and printed in the daily Con- gressional Record, January 23, 1896.] LXVE STOCK TABLE. A comparison between Republican and Democratic Adminis- trations as shown by the values of domestic animals, horses', mules, cattle, sheep, and swine: When we. resumed specie payment in 1879 our domes- tic animals, horses, mules, cattle, sheep, and swine were valued at $1,445,423,062 SHEEP AND WOOL INDUSTRY. 153 During the ensuing six years, until the election of Mr. Cleveland in 1884, the values increased to.... 2,467,868,924 A gain during six years of Republican rule of . . 1,022,445,862 I During the ensuing four years, until the election of Mr. Harrison in 1888, values decreased from 2,467,868,924 To 2,409,043,418 A loss during four years of Democratic rule of. . 58,825,506 During the ensuing four years, until the second elec- tion of Mr. Cleveland in 1892, values again in- creased from 2,409,043,418 To 2,461,755,698 A gain during four years of Republican rule of. . 52,712,280 During the last two years, under the second adminis- tration of Mr. Cleveland and under proposed and accomplished free trade and sweeping tariff reduc- tions, values again decreased from 2,483,506,681 To the comparatively insignificant total of 1,819,446,306 Showing the enormous loss in two years of Democratic rule of 664,060,375 Mr. President, over $664,000,000 loss in two years in live stock ! Do the American people comprehend this? That their losses in live stock alone have been $1,100,000 for every working day during the past two years? And this, too, in these piping times of boasted plenty, prosperity, and pugnacity — toward England ! CLASSIFIED TABLE. Mr. President, I will give the classified shrinkages for the last one year quoted as to both numbers and values. All classes shrank except milch cows. Number. Value. 17.229 187.821 19.123 2,243,952 1,040.782 $3,603,068 192,494,219 35.304,977 53,790,618 50,883,359 Mules shrank .'. Oxen and other cattle shrank S wine shrank But it remained for sheep to show the most disastrous shrink- age in both numbers and value, and to mark most plainly the poi- sonous effect of an un-Republican policy. SHEEP TABLE. In 1884, under Republican policy, our sheep were 1 50,626,626 in numbers and of the value of $119,902,706 Under the influences of the threatened Mills bill they s'hrank to 42,599,079 in numbers and to the value Of 90,640,369 A shrinkage of 8,027,547 head and in value.... 29,262,337 From the lowest point recorded under the Mills bill fright up to 1893, under Republican guardianship, sheep increased to 47,273,553 in numbers and to the value of 125,909,264 An increase of 4,674,474 head and an increase in value of 35,268,895 But again upon Mr. Cleveland's second election we turn backward and downward as usual under the blighting, withering influence of a wrong policy, and in two years sheep decreased to 42,294,064 head, of the value of 66,685,767 A loss of 4,979,489 head and a loss in value of. . 59,223,497 A shrinkage in two short years of nearly one-half! THE OTHER SIDE OF THE LEDGER. Now, to exhibit the other side of the ledger. Here is a statis- tical table (I ask to have it incorporated in my remarks) which shows our importation of wool has increased to nearly triple, not in two years nor three years, but in the first ten months of this, present year, ended October 31, 1895, 154 SHEEP AND WOOL INDUSTRY. Imports of tvool (in pounds). Ten months ending October— 1894. 1895. Class 1 K, 807.462 8,841.422 54,574.386 113 672 709 Class 2 I6,7:n,9h5 80,052,544 Class 3 Total 83,223,270 811,057.388 1,081.441 17,824.008 Wool production, imports, consumption, and manufacture in the United States; also price of wool and value of sheep on farms, 1875 to 1900. [From the Statistical Abstract of the United States, 1903.] 4 Value of imports ilu Sheep on farms =•, *i of wool, and man- £•" ft in the United =s! *. o ufactures of. °* P-ri States.:): cS Produc- tion. Imports. 1 o u ft » s ■ Price of washed ck Ohio fleec poun 5" Wool, raw. Manufac- tures of wool. Number. Value. Pounds. Pounds. Dollars. Dollars. Cents. Dollars. 1875.... 181,000,000 54,901,760 22.1 11,071,259 44,609,704 48 33.783,600 94,320,652 1876.... 192,000,000 44,642.836 18.3 8,247,617 33,209,800 45 35,935,300 93,666,318 1877.... 200,000,000 42,171,192 19 3 7.156,944 25,701.922 48 35.804,200 80 892.683 1878.... 208,250,000 48,449,079 16.9 8,363,015 25.230,154 35 35,740,500 80,603,062 1879.... 211,000,000 89,005,155 14.2 5,034,545 24.355,821 41 38,123,800 79,023,984 1880.... 232,500,000 128,131.747 84.9 23,727,650 33,911,093 46 40,765,900 90,230,537 1881.... 240,000,0011 55,964,236 17.3 9,703,968 31,156,426 43 43,569,899 104,070,759 1882.... 272,000,000 67,861,744 19.0 11 096,050 37,361,520 42 45,016,224 106,595,954 1883.... 290,000,000 70,575,478 18.7 10,919,331 44,274,952 39 49,237,291 124,366,335 1884.... 300,000,090 78,350,651 20.6 12,384,709 41,151,583 35 50,626,626 119,902,706 1885.... 308,0" 0,000 70,596,170 18.0 8,879,923 35,776,559 33 50,360,243 107,960,650 1886.... 302,000,000 129,084,958 28.9 16,746,081 41,421,319 35 48,322,331 92,443,867 1887.... 285.00k.00C 114,038,030 27.4 16.424.479 44,902,718 32 44,759,314 89.872,839 1888.... 269,000,000 113,558,753 28.9 15.887,217 47,719,393 31 44,544,755 89,279,1)26 1889.... 265,000,900 126.487,729 31.8 17,974,515 52,564,942 33 42,599,079 90,640,369 1890.... 276.000,000 105,431.285 27.0 15,264,083 56.582,432 33 44,336,072 100,659,761 1891.... 285.000,090 129,303,648 30.8 18,231,372 41,060,080 31 43,421,136 108,397.440 1892.... 294,000,00( 148,670,652 33.1 19,688,108 35,565,879 29 44,938,365 116,121,290 1893.... 303,153,00( 172,433,838 35.7 21.064,180 38,048,515 23 47.273,553 125,909 260 1894 §.. 298,057,384 55,152,585 14.2 6,107,438 19,439,372 19 45,048,017 89,186,110 1895 §.. 809.748.00C 206,033,906 40.0 25,556,421 38,539,89( 18 42,294,064 66,685,767 1896 §.. 272,474,708 230.911,473 45.9 32,451,242 53,494,400 18 38,298,783 65.167.735 1897 §.. 259,153.251 350,852,026 57.8 53,243,191 49,162,992 27 36,818,643 67,020,042 1898.... 266,7^0,68^ 132,795,202 32.8 16,783,692 14,823.771 28y 2 37,656,960 92.721,133 1899.... 272.191.330 76,736,209 19.2 8,322,897 13,832,621 81 39,114,453 U'7,607,530 1900.... 288,636,621 155,928,455 34.4 20,260,936 16,164,446 26M, 59,756,718 178,072,476 1901.... 302.502.328 103,583.505 24.9 12,529,881 14,583,306 25 62,039,091 164,446,091 1902.... 316.341.032 1*56.576,966 34.1 17,711,788 17,384,463 28 63,964,876 168,315,750 1903.... 287.450,000 177,137,796 37.8 22,152,961 19,546,385 32 51,630,144 133,530,099 |On October 1 of each year. $On January 1 of year named. §Democratic and low tariff years. Note.— The importations of wool and woolen goods in the fiscal year 1894 were held back to obtain the reduction in duties by the Wilson act, then pending-, and which went into effect August 28, 1894. The rich manifestations of our commercial power, our military und naval strength, great and splendid as they are, are not to be counted when compared with the moral and Intellectual grandeur of our people. — Hon. C. W. Fairbanks, at Baldwin, Kas., June 7, 1901. It is, of course, a mere truism that we -want to use everything in our power to foster the welfare of our entire body politic. In other words, we need to treat the tarift* as a business proposition, from the standpoint of the interest of the country as a whole, and not with reference to the temporary needs of any political party.— President Roosevelt at Minneapolis, April 4, 1903. BEET SUGAR. 155 BEET SUGAR. 'he fact that about a hundred million dollars' worth of sugar is brought from abroad each year to meet the demands of the people of the United States, coupled with the belief that the production of this great sugar supply by our farmers is possible, renders proper a careful consideration of the effect of the recent legislation by which sugar from Porto Rico and the Hawaiian Islands is admitted free of duty, that from the Philippines at 25 per cent below, and that from Cuba at 20 per cent below the regular tariff rates. Will the absolute removal of all duty un sugar from Porto Rico and the Hawaiian Islands and the reduc- tion of 25 per cent, on sugar from the Philippines and 20 per cent, on that from Cuba destroy the beet-sugar industry in the United States or work to its disadvantage? While it is a fact that the an- nexation of Hawaii and its organization as a Territory and cus- toms district of the United States removed permanently all tariff on merchandise from those 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 being to render absolutely permanent the conditions which had existed ever since the treaty of 1876, by which sugar from the Hawaiian Islands was admit- ted free on agreement 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 Rico all of the duty except 15 per cent, was removed by the act establishing the government for Porto Rico, and the re- mainder of that duty disappeared ns soon as tie Porto Rican government announced its ability to provide its own revenues. The reduction of 25 per cent in the rates of duty on merchandise from the Philippine Islands occurred March 8, 1902. EFFECT ON THE HOME PRODUCES. All of these removals of duty on sugar from our own possessions have been in force a sufficient length of time to give opportunity to test their effect upon domestic sugar production. The quantity of sugar imported from Porto Rico increased from 86,607,317 pounds in the fiscal year 1897 to 201,247,040 pounds in the calen- dar year 1903. The sugar imports from the Hawaiian Islands have increased from 431,196,980 pounds in 1897 to 858,268,351 pounds in the calendar year 1903 ; and those from the Philippine Islands decreased from 72,463,577 pounds in the fiscal year 1897 to 65,348,247 pounds in the calendar year 1903— the reduction in imports of sugar being, of course, due to the destruction of plan- tations and machinery during the war. Thus the quantity of sugar imported from Porto Rico, Hawaii, and the Philippine Islands in 1903 was practically double that of 1897. The entire quantity of sugar brought into the United States in the calendar year 1903 amounted to 4,388,388.809 pounds. Of this total im- portation, 1,059,515,391 pounds came from Porto Rico and the Hawaiian Islands, and was absolutely free of duty, and this formed 24.5 per cent, or practically one-fourth, of the total; while that from the Philippine Islands, which amounted to 65,348,247 pounds, came in with a reduction of 25 per cent, of the regular duty and formed about 1% per cent, of the total. Thus practically one-fourth of the sugar coming into the United States in 1903 was admitted absolutely 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 importa- tion of that year. INCREASE OF BEET SUGAR PRODUCTION SINCE THE ANNEXATION OF HAWAII AND PORTO RICO. Here, then, -is a fair basis upon which to determine the effect of the importation of sugar from our own pos- sessions free of duty. In 1897 practically 9 per cent, of the sugar imported came in free of duty. In 1903 practically 25 per cent. 15(5 B 'I' SUGAR. ctBM in free of duty, if such free importation wore likely to affect disadvantagoously beet sugar production at home, an in- crease 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 production 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 the sugar was imported free, and 1903 when 25 per cent was imported free. The reports of the Department of Agriculture and Bureau of Statistics show that the beet sugar produced in the United States amounted in 1897 to 88,892,160 pounds. By 1899 it had increased to 141,230,160 pounds; by 1901 to 279,682,160 pounds; and in 1908 was .154,541,120 pounds. Here, then, is an increase of 524 per cent, in the beet sugar production of the United States during the very period in which free importation of sugar from Porto Rico was estab- lished and that from Hawaii made absolutely permanent by an- nexation and its establishment as a customs district of the United States, and in which period the quantity of sugar imported free of duty increased 150 per cent. If an increase of 150 per cent in the quantity of sugar imported free of duty, coupled with ab- solute assurance that the sugar fields of Porto Rico and Hawaii are to have permanently free access to the markets of the United States, was accompanied by an increase of 524 per cent in the pro- duction of beet sugar at home, there seems little ground for any anxiety as to the effect of free sugar importation from our own territory in depressing beet sugar production at home. CUBAN RECIPROCITY WILL NOT PROVE INJURIOUS. Regarding the reduction of 20 per cent on sugar provided by the recent reciprocity agreement, the question of its effect upon beet sugar production in the United States was very thoroughly discussed in Congress before that body would agree to the reci- procity treaty. In the course of that debate Representative Charles L. Knapp, of New York, presented a series of tables re- lating to sugar importation, home production, and consumption, and said: "While the exact effect cannot be foretold with mathematical accuracy, it can be foretold with exact certainty that after the re- duction proposed on beet sugar that industry will still remain one of the most highly protected of all our industries, and it is a fair and reasonable assumption that such reduction will neither jeopar- dize nor injure the industry." . Representative McCall, of Massachusetts, who gave the sub- ject careful attention before lending his support to the treaty, said: "The effect upon the beet-sugar industry has caused alarm to those representatives from states largely interested in the manu- facture of beet sugar. I do not think it is in a particle-of danger. Suppose that the reduction proposed by this bill to 1.35 cents a pound on raw sugar should measure the entire protection that would exist upon sugar after the passage of this bill (and I feel confident that it will not) I think it is susceptible of demonstration that the protection will be substantially what it is at the present time. In testimony taken before the Committee on Ways and Means two years ago our collector at Habana, Mr. Bliss, testified that he had examined the returns from eight different plantations and found that the average cost of making sugar there and taking it to the port of shipment was 2 1-16 cents per pound. Mr. Atkins, a successful business man and sugar manufacturer, reached sub- stantially the same conclusions. All the evidence that could be called evidence went to show that it cost the Cuban at least 2 cents a pound to make his raw sugar. Now, if you add to this the 1.35 cents (the duty) and to that you add the freight rate, insur- ance, and other charges, the Cuban cannot afford to sell his sugar in New York for less than three and about seven-eighths of a cent per pound. And it must after that be refined, so that a price would be reached at which it would clearly be profitable to make refined sugar here. Mr. Oxnard, who has been as much identified with the manufacture of beet sugar as any man in the United States, put forth a statement, after he had been engaged in that business nine years, to the effect that at 4 cents a pound and allowing the farmer $4 a ton for his beets, there was then a profit of about 43 per cent, upon the cost of the material and labor em- ployed, in selling the refined product at 4 cents a pound. Not a small profit by any means. As a matter of fact, he would get nearer 5 than 4 cents a pound. Is it not clear, therefore, that under this duty of 1.35 cents per pound, which is a specific duty equivalent to an ad valorem duty of nearly 80 per cent, including the freight, our beet sugar producers have nothing whatever to fear?', BEET SUGAR. 157 NO CAUSE FOB ALARM. On this subject Representative James E. Watson, of Indiana, said in the House of Representatives on November 19, 1903: "The cost of 100 pounds of Cuban sugar, f. o. b. at Habana, is $2.00. The freight to New York is 9 cents per hundred pounds; the duty, after a 20 per cent, reduction, would be 1.348 cents. The cost of refining is known by all to be 0.625 cents for every 100 pounds, without any profit to the refiner. The freight to Chicago is 29 cents a hundred. So that to land 100 pounds of Cuban sugar al- ready refined, in the market in Chicago, would cost exactly $4.35 a hundred, and to land it in Kansas City would cost $4.42 a hundred. "H. M. Stewart, president of the Kalamazoo Sugar Company, when before the committee, made the following statement: 'The total cost per 100 pounds on refined beet sugar is $4,682, which in- cludes 5 per cent, interest on the capital invested and 7 per cent, annual depreciation; leaving out these two items the cost of each 100 pounds of refined sugar is $4,011.' To this sum should be added 13 cents a hundred pounds, freight from Kalamazoo to Chi- cago, so that it would cost the Michigan producer $4.14 to land 100" pounds of his product in the Chicago market, while it would cost $4.35 for the Cuban planter to do the same thing. "W. L. Churchill, president of the Bay City Beet Sugar Com- pany, said: T can assure you that we will make sugar this year at a cost not to exceed $2.60 or $3.75 per 100 pounds.' Assuming that the freight rate is 13 cents per 100, it would cost that com- pany not to exceed $4.05 to lay down 100 pounds of its product in the Chicago market, as against $4.35 for the Cuban planter, a dif- ference in favor of the home product of 30 cents a hundred, a difference great enough to lift the Michigan grower above the pos- sibility of harm from his dusky competitor. "Francis K. Carey, president of the National Sugar Manufac- turing Company, of Sugar City, Colo., said: T believe the cost of sugar in Colorado under normal conditions, which we will sooner or later have, surrounding our factory, ought not to be over 3 cents a pound. If I am mistaken in my belief I am free to admit that I have no standing before this committee and no right to ask for the protection of my industry.' "Thomas R. Cutler, president of the Utah Sugar Company, shows that the beet sugar industry of Utah has nothing to fear from Cuban competition and gives the average cost to his company of refined sugar for five years as follows: '1897 $4.51 per hundred. 1898 4.46 per hundred. 1899 3.55 per hundred. 1900 3.55 per hundred. 1901 3.42 per hundred. The average cost of producing sugar for these five years was $3.86 per hundred, and the average selling price, $5.76, or a clear profit of $1.90 per hundred.' Furthermore it may be said that even after the proposed reduction of 20 per cent., the rate on sugar will still be about 65 per cent., which is higher than the tariff rate on any import save alone tobacco, the average rate on all importations being a little under 49 .per cent., so that there is no cause for un- due alarm at the prospect of the passage of this bill." Tables published on page 158 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 years; also the quantity brought into the United States from Porto Rico, Hawaii, the Philippine Islands, and Cuba, respectively, 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 Beet Sugar In the Principal Producing Coun- tries of the World for the Sugar Year 1903-4. * Countries. Cane sugar production. Gross tons. Countries. Beet sugar production, Gross tons. 886,000 1.130,000 393,000 277,000 175.000 - 164,000 215,000 1,227,000 Germany 1,936 500 Austria 1,144,600 765,900 1,142,400 196 000 Brazil Holland 121 200 All other 586,400 5,893.000 4,417,000 ♦Figures for cane sugar production taken from Willett and Gray's Sugar Trade Journal. 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CO* tjh" CO* CO* •* 0* CO ■* CO* CO* ■* OSW*h^XO>»^X»«( i in x »n eq oi s> x -h ieb©©©©co6-t- ©-*o*eo-'*- eral public land laws, chief among which is the homestead law, which was signed by President Lincoln in 18G2. Under its beneficent provisions millions of settlers have established homes upon the public domain, and as a result the great West is to-day teeming with the industry of a thrifty people of good citizen- ship and many new stars have been added to the flag. But what was once a vast .public domain— then thought to be almost inex- haustible — embracing an area of over eighteen hundred million acres, through the operation of the homestead and other land laws, enacted to meet conditions prevailing at a time when culti- vable lands as well as timbered and grazing areas were abun- dant, was materially decreased until the remaining public do- main, exclusive of Alaska, now embraces less than five hundred million acres, a comparatively small portion of which is suscepti- ble of cultivation without irrigation. New conditions thus arose: the extravagant denuding of the timbered areas, the rapidly diminishing extent of the remaining public lands available for settlement, together with the increased demand for cultivable lands, accentuated by increased popula- tion, satisfactory industrial conditions, and revival of busi- ness in the last few years, rendered necessary and of the utmost importance, new legislation affecting the pub- lic lands, in order that the remaining forests and nec- essary timber supply might be duly protected, the necessary sources of water supply needed for the reclamation of the arid regions properly conserved, and the remaining public land avail- able for settlement saved for disposal to the bona fide home- builder, under such circumstances and conditions as would en- able the same to be reclaimed and thereby rendered capable of its largest beneficial use. In recognition of this, the Congress passed the act of March 3, 1891, authorizing the creation of forest reserves, under which there have since been created fifty-six re- serves, aggregating over 63,000,000 acres of land. The establish- ment of necessary forest reserves having become a well-fixed part of our national policy, the aid of the government in reclaim- ing the arid lands of the West and rendering the same available for settlement and cultivation was essential, as a necessary com- plement to this policy. IRRIGATION. Although there had been more or less discussion for years as to the necessity for national aid in irrigation, nothing effective was accomplished until Theodore Roosevelt became President. He was quick to recognize not only the necessity, but also the national importance of such policy, together with the benefits to accrue to the people therefrom. President Roosevelt, in his first message to Congress, took a strong advanced position in favor of great storage works to save the flood waters and to equalize the flow of streams, maintaining that this work should be carried on by the National Government and not by private efforts. He declared that it was as right for the National Government to make the streams and rivers of the arid region useful by engineering works for water storage as to make useful the rivers and harbors of the humid region by engi- neering works of another kind. He took the position that the Government should construct and maintain these reservoirs as it does other public works, and that the lands reclaimed by aid of irrigation should be reserved by the Government for actual PUBLIC LANDS. 161 settlers. The cost of construction should, so far as possible, be repaid by the land reclaimed. He declared that the reclamation and settlement of the arid lands will enrich every portion of our country, as the settlement of the Ohio and Mississippi valleys brought prosperity to the Atlantic States. NATIONAL RECLAMATION LAW. Congress enacted the national reclamation law June 17, 1902, and it is considered the most beneficent public land law passed since the enactment of the homestead law. The passage of this law was due largely to the previous recommendation of the President after he had lent the weight of his influence to the perfecting of its provisions in the interest of the actual settler and to the exclusion of the speculator. Realizing that the passage of the reclamation act emphasized the importance of saving the public 'lands for the home-builder, the President devoted particular attention thereto in his second message, declaring that "so far as they are available for agricul- ture, and to whatever extent they may be reclaimed under the national irrigation law, the remaining public lands should be held rigidly for the homebuilder, the settler who lives on his land, and for no one else." The President in this message also directed attention as to the best manner of using public lands in the West which are suitable chiefly, or only, for grazing, and he commended this matter to the earnest consideration of Congress, recommending, •if the latter experienced any difficulty in dealing with the subject from lack of knowledge, that provision be made for a commis- sion of experts specially to investigate and report upon the same. Subsequently, a commission was appointed by the President, which has already submitted a partial report, making sundry recommendations for the modification of existing land laws in the interest of actual settlers. Tiiis report the President sub- mitted to the favorable consideration of Congress. Under the provisions of the reclamation act over $20,000,000 have already been covered into the Treasury of the United States to the credit of the reclamation fund, derived from the sales of public lands and fees and commissions in the several States and Territories affected by that act, and more than 33,000,00 acres of public land have been withdrawn for reclamation purposes with a view to determining the feasibility of contemplated projects. Sixty-seven projects in fourteen different States and Territories have been under consideration and examination, and the work of actual construction has been commenced on eight of these President Roosevelt, by reason of his intimate association with Western people, his actual experience in that section of the coun- try, and accurate knowledge of the prevailing conditions in the public land states, is exceptionally well qualified to properly judge of the requisite needs of that part of the country and has exercised a forceful influence toward the perfecting of a wise, discriminating, up-to-date public land policy, and when so per- fected will see to it that the same is carefully and properly ad- minister. Such a policy, perhaps, more than any other single consideration, is essential to the prosperity of the West and the happiness of its people, will add to the material wealth and de- velopment of the whole country, and should commend itself to every thoughtful citizen. "The Policy of Washington is the policy of the Republican party." — Oullom. "The safety and Interest of the people require that they should promote such manufactures as tend to render them independent of others." — Washington. "No men living; are more worthy to be trusted than those who toil 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 the pasture has produced a result noticeable by the fh«% telllgent portion of all commercial nations,"— Grant. 162 lamuATioN. IRRIGATION FOR ARID AND SEMIARID LANDS. Irrigation for the arid and somiarid lands of the United States bat never had a firmer and more vigorous supporter in public lit'*' than President Roosevelt. During the decade before he became President the subject of national Irrigation had been under dis- cussion and there was growing throughout the country a senti- ment in favor of national action of some character upon.- this sub- ject. There was, however, wide diversity of opinion as to the method to be employe)!, and this very condition of diverse opinions reduced the probability of national action. When Mr. Roosevelt became President, however, knowing conditions in the great West as he did, and knowing the henelits which would accrue to it from systematic work in behalf of irrigation, he consulted with the men who had been working for national irrigation, discussed con- ditions with them any reason of rural free delivery the actual value of our farm lands las been increased. Many farmers state that they would not dis- 3ense with the service for $50 or even $100 per annum. It has jeen estimated that the value of farm lands has risen by this neans as high as $5 per acre in several States. A moderate bene- it to the farm lands of the whole country would be from $1 to $3 >er acre. The producers, being brought into daily touch with the state -ears of fostering, nourishing, and friendly encouragement by a Republican Administration it has grown from a $10,000 appropri- ition to over $20,000,000. During the last fiscal year 48,954,390 nieces were collected and 390,428,128 pieces of mail were delivered sy Uncle Sam's 15,119 carriers; 8,339 routes were investigated, of vhich 6,653 were established and 1,714 were rejected. On June 30, 903, there were 15,119 routes in operation, an average number 1MHSTKIAI. COM HINATIONS. "At every election the regulation of trusts had been the foot-/ ball of campaign oratory and the subject of many insincere declaJ rations. "Our Republican Administration has taken up the subject In a practical, sensible way as a business rather than a political ques- ton, saying what it really meant, and doing what lay at its nand to be done to accomplish effective regulation. The principles upon which the government proceeded were stated by the President in his message of December, 1902. "After long consideration, Congress passed three practical statutes — on the 11th of February, 1903, an act to expedite hear- ings in suits in enforcement of the anti-trust act; on the 14th of February, 1903, the act creating a new Department of Commerce and Labor, with a Bureau of Corporations, having authority to secure systematic information regarding the organization and op- eration of corporations engaged in interstate commerce, and on the 19th of February, 1903, an act enlarging the powers of the Interstate Commerce Commission and of the courts, to deal with secret rebates in transportation chars.es, which are the chief means by which the trusts crush out their smaller competitors. "The Attorney General has gone on in the same practical way, not to talk about the trusts, but to proceed against the trusts by law for their regulation. In separate suits fourteen of the great railroads of the country have been restrained by injunction from giving illegal rebates to the favored shippers, who, by means of them, were driving out the smaller shippers and monopolizing the grain and meat business of the country. The beef trust was put under injunction. The officers of the railroads engaged in the cotton-carrying pool, affecting all that great industry of the South, were indicted and have abandoned their combination. The North- ern Securities Company, which undertook by combining in one ownership the capital stocks of the Northern Pacific and Great Northern railroads to end traffic competition in the Northwest, has been destroyed by a vigorous prosecution, expedited and brought to a speedy and effective conclusion in the Supreme Court under the act of February 11, 1903. "The right of* the Interstate Commerce Commission to compel the production of books and papers has been established by the judgment of the Supreme Court in a suit against the coal-carrying roads. Other suits have been brought and other indictments' have been found, and other trusts have been driven back within legal bounds. No investment in lawful business has been jeopardized; no fair and honest enterprise has been injured; but it is certain that wherever the constitutional power of the National Govern- ment reaches, trusts are being practically regulated and curbed within lawful bounds, as they never have been before, and the men of small capital are finding in the efficiency and' skill of the na- tional Department of Justice a protection they never had before against the crushing effect of unlawful combinations." Under President Roosevelt's administration there has been no frittering away of chances to enforce the laws because -of fine- spun definitions of trusts. Attorney General Knox said at Pitts- burg, October 14, 1902: "The people, by common consent, have denominated the great industrial and other corporations, now controlling many branches of commercial business, trusts. The technical accuracy of the term is unimportant, but, indeed, it is much more apt than might be supposed, when it is recalled that the essential difference be- tween the old industrial trusts and the great corporations owning and controlling subsidiary ones is that in respect to the former the shares of independent corporations agreeing to act .in harmony were lodged with a trustee who received the separate earnings and distributed them among the holders of trust certificates, while as to the latter a corporation is created to take over the title to the stock or properties of the constituent companies and issue its own shares as the evidence of interest in the combination. The corporation owner of corporations invokes specific legal au- thority from the legislature of the State under which it is created. "The President, in his first message to Congress, said: " 'There is a widespread, settled conviction in the minds of the American people that these trusts are, in many of their features and tendencies, hurtful to the general welfare. This springs from no spirit of envy or uncharitableness, nor lack of pride in the great industrial achievements that have placed the country at the head of the nations struggling for commercial supremacy. It does not rest upon a lack of intelligent appreciation of the necessity of meeting changing and changed conditions of trade with new meth- ods, nor upon ignorance of the fact that combination of capital and effort to accomplish great things is necessary when the world's progress is demanding that great things be done. It is bottomed upon sincere conviction that combination and concentration, while not to be prohibited, are to be controlled, and in my judgment this conviction is right.' "These great combinations, now numbering thousands, are the instrumentalities of modern commercial activity. Their number and size alone appall no healthy American. We are accustomed to large things and to do them in a large way. We are accustomed to speak with a justifiable pride of our great institutions and what we have fairly accomplished through them. No right-thinking man desires to impair the efficiency of the great corporations as instrumentalities of national commercial development. Because they are great and prosperous is no sufficient reason for their de- TRUSTS AND INDUSTRIAL COMBINATIONS. 171 struction. Tf that greatness and prosperity are not the result of the defiance of the natural rights or recorded will of the people, there is no just cause of complaint. "That there are evils and abuses in trust promotions, purposes, organizations, methods, management, and effects none questions except those who have profited by those evils. That all or any of these abuses are to be found in every large organization called a trust no one would assert who valued his reputation for sane judg- ment. "The conspicuous noxious features of trusts existent and pos- 1 sible are these: Overcapitalization, lack of publicity of operation, discrimination in prices to destroy competition, insufficient per- | sonal responsibility of officers and directors for corporate manage- ment, tendency to monopoly, and lack of appreciation in their man- agement of their relations to the people for whose benefit they are permitted to exist." President Roosevelt's Words on This Subject. The following utterances of President Roosevelt on this sub- ject are clear-cut, honest, and practical expressions of the atti- tude of the Republican party: "The first essential in determining how to deal with the great industrial combinations is knowledge of the facts — publicity. In the interest of the public the Government should have the right . to inspect and examine the workings of the great corporations engaged in interstate business. "The average man, however, when he speaks of the trusts, means rather vaguely all of the very big corporations, the growth of which has been so signal a feature of our modern civilization, and especially those big corporations which, though organized in , one S'tate, do business in several States, and often have a tendency ; to monopoly. "In dealing with the big corporations which we call trusts, we must resolutely purpose to proceed by evolution and not revolution. * * * The surest way to prevent the possibility of curing any of them is to approach the subject in a spirit of violent rancor, complicated with total ignorance of business interests and fundamental incapacity or unwillingness to understand the limita- tions upon all law-making bodies. No problem, and least of all so difficult a problem as this, can be solved if the qualities brought to its solution are panic, fear, envy, hatred, and ignorance. * * * Corporations that are handled honestly and fairly, so far from being an evil, are a natural business evolution and make for the general prosperity of our land. We do not wish to destroy corpo- rations, but we do wish to make them subserve the public good. All individuals, rich or poor, private or corporate, must be subject to the law of the land; and the Government will hold them to a rigid obedience thereof. The biggest corporation, like the humblest private citizen, must be held to strict compliance with the will of the people as expressed in the fundamental law. The rich man who does not see that this is in his interest is indeed short-sight- ed. When we make him obey the law we insure for him the absolute protection of the law. "I think I speak for the great majority of the American people when I say that we are not in the least against wealth as such, whether individual or corporate; that we merely desire to see any abuse of corporate or combined wealth corrected and remedied. * * * There is no proper place in our society either for the rich man who uses the power conferred by his riches to enable him to oppress and wrong his neighbors, nor yet for the demagogic agitator. "The necessary supervision and control, in which I firmly be- lieve as the only method of eliminating the real evils of the trusts, must come through wisely and cautiously framed legislation, which shall aim in the first place to give definite control to some sovereign over the great corporations, and which shall be followed, when once this power has been conferred, by a system giving to the Government the full knowledge which is the essential for satis- factory action. Then, when this knowledge — one of the essential features of which is proper publicity — has been gained, what fur- ther steps of any kind are necessary can be taken with the confi- dence born of the possession of power to deal with the subject, and of a thorough knowledge of what should and can be done in the matter. "In the interest of the whole people the nation should, without interfering with the power of the States in the matter, itself also assume power of supervision and regulation over all corporations doing an interstate business. ♦ "We are no more against organizations of capital than against organizations of labor. We welcome both, demanding only that each shall do right and shall remember its' duty to the Republic. Such a course we consider not merely a benefit to the poor man, but a benefit to the rich man." However, the Republican party and its leaders have not lim- ited their dealings with this question to mere words, nor futile paper attacks upon offending corporations. Passive virtue is often as dangerous as active vice. This administration has taken vigorous action to make good its promises and carry out its policies. 172 TRUSTS AND INDUSTRIAL COMBINATIONS. Work of the Department of Justice in the Enforcement of Antl- Truat Lavra. In no branch of tho litigation for the Government has greater] success been achieved than in the enforcement of the Sherman Anti-Trust law. The importance of the suits brought, the gravity of the -questions involved, and the success attained render spe- cial mention appropriate. Two great difficulties encountered in ,the past in the enforce ment of the Sherman law were the lack of power to compel the giving of testimony and the production of documentary evidence in the form of books and paper— the evidences of violation of the law; and also the delays in pushing prosecutions to a speedy conclusion, which could be availed of by those against whom punishment was directed. It thus being apparent that the law needed amendment to make it more effective, the Judiciary Committees of Congress, in December, 1902, called upon Attorney General Knox for an expression of his views as to the amendments which should be made to the law. In response thereto the Attorney-General made several recommendations. Among others, these: (1) That the Interstate Commerce law should be so amended as to make the penalties prescribed for the granting of rebates, concessions, and discriminations apply to all carriers, whether an incorporated company or not, and to subject the recipient of the rebates, concessions, or discriminations to the same punishment as might be imposed upon the giver of them; that an act done or omitted to be done by an officer, agent, or employee of a carrier, which subjected such person to a penalty, should also be held to be the act of the carrier corporation and to subject the corporation to the same penalty as that imposed upon its officer, agent, or employee; to specifically confer upon the courts the au- thority to enjoin the granting or the receiving of rebates or con- cessions; and to make it ^unlawful for the common carrier to transport traffic for less than its published rate, and to subject, to heavy penalties all who participate in such a transaction. (2) That a Commission be created, with the power and duty, among other things, to make diligent and thorough investigation into the operations and conduct of all corporations, combinations and concerns engaged in interstate and foreign commerce; vest- ing in the Commission the authority, in making investigations, to compel the giving of testimony, the production of books and papers, and the making of such reports upon such matters as the Commission may desire information; and to gather such data and information as will enable it to make specific recommendation for additional legislation for the regulation of such commerce. (3) That an act be passed to expedite the hearing and determi- nation of cases under the Anti-Trust and the Interstate Commerce acts, by providing that whenever the Attorney-General shall file in any court in which a case under such laws is pending a certifi- cate that the case involves important questions and the public interests demand a speedy hearing, it shall thereupon be the duty of the court, a full bench sitting, to proceed with the hear- ing and determination of the case at as early a date as is practi- cable; and that from a decision of the trial court an appeal may only be taken direct to the Supreme Court and that within a very limited time. In response to these suggestions, Congress promptly enacted the following legislation: (1) On February 11, 1903 (32 Stat, 823), an act to expedite the hearing and determination of suits under the Anti-Trust and the Interstate Commerce Acts. The act provides that whenever the Attorney-General shall file with the clerk of the court in which such a suit is pending a certificate that the case is of pub- lic importance, it shall thereupon be the duty of the court, not less than three of the judges sitting, to proceed to hear and de- termine the case at the earliest practicable day. An appeal from the decision of the trial court will lie only to the Supreme Court and must be taken within sixty days from the* entry of the final decree. (2) On February 14, 1903 (32 Stat, 825, 827), by section 6 of the act creating the Department of Commerce and Labor, there TRUSTS AND INDUSTRIAL COMBINATIONS. 173 was created a bureau called the "Bureau of Corporations," at the head of which was placed a Commissioner. Authority and power was vested in the Commissioner to make diligent investi- gation into the organization, conduct, and management of the business of all corporations, joint stock companies, and corporate combinations engaged in interstate or foreign commerce (except- ing common carriers subject to the Interstate Commerce Law), and to gather such information and data as will enable the Presi- dent to make recommendations to Congress for additional legisla- tion; and to compel the giving of testimony, and the production of such books and papers, and the making of such reports as may be necessary for the purposes of the investigation. (3) On February 19, 1903, Congress passed what is commonly known as the "Elkins Law" (32 Stat, 847), which amended the Interstate Commerce Law in several important particulars. That act provides that anything done or omitted to be done by a corporation common carrier, subject to the act, which, if done by an officer, agent, or employee thereof would constitute a misdemeanor under the law, shall also be held to be a misde- meanor committed by such corporation, and subjects the corpor- ation to like penalties; Requires every common carrier subject to the law to publish its tariff rates or charges and to maintain them; and for a failure to do so subjects the corporation to a fine of from $1,000 to $20,000 for each offense; , Declares it to be unlawful for any person or corporation to offer, grant, or give, or to solicit, accept, or receive any rebate, concession, or discrimination in respect of the transportation of any property in interstate or foreign commerce, whereby such property shall by any device whatever be transported at a less rate than that named in the tariffs published by the carrier, and for a violation of this provision subjects the person and the cor- poration to a fine of from $1,000 to $20,000; Makes the rate published and filed with the Interstate Com- merce Commission the legal rate, and every departure from it is to be deemed an offense under the act; Expressly declares that ai prosecution instituted by the Gov- ernment under this act shall not exempt the offending carrier from suits to recover damages by any party injured, as provided in the former acts; Requires the production, in any proceeding, of all books and papers, both by the carrier and the shipper, which directly or indirectly relate to the transaction charged against the carrier, and the giving of testimony, whether such books, papers, or testi- mony may tend to criminate the party or not; but exempts the party so compelled to testify, or to produce any books or papers, from any prosecution or penalty on account of any transaction, matter, or thing concerning which he may be compelled to tes- tify or produce evidence; And authorizes the expediting and hearing of any suit brought thereunder, as provided in the act of February 11, 1903 (32 Stat, 823), for the hearing and determination of sutts under the Anti- Trust law. (4) On February 25, 1903 (32 Stat, 854, 903), appropriated $500,000 for the purpose of enforcing the provisions of the Anti- Trust law, and vested in the Attorney-General the authority to employ special counsel and agents of the Department of Justice to conduct proceedings, suits, and prosecutions under that act; and exempts from prosecution or penalty any person compelled to testify, or to produce evidence, in any suit or proceeding under that law. (5) The act of March 3, 1903 (32 Stat, 1031, 1062), provides for the appointment of a Special Assistant to the Attorney-Gen- eral, and as Assistant Attorney-General, to assist in the enforce- ment of the Anti-Trust law, and to perform such duties as may be required of them by the Attorney-General. Clothed with the authority conferred by this new legislation, the Department of Justice, in connection with the Interstate Commerce Commission and the Bureau of. Corporations, has taken up the work of making a thorough investigation into the formation, conduct, and operations or corporate combinations en- 174 XBU8TS AM) INDISTUIAI, COMBINATIONS. gaged in Interstate and foreign commerce, and upon the comple- tion of these Investigations, the Department will be in a position the more effectually and successfully to prosecute violations of the Ami-Trust and interstate Commerce laws. The suits under the latter laws arc referred to under their appropriate heading hereafter. The following are the more important Anti-Trust cases pend- ing at the beginning of President Mckinley's Administration and successfully prosecuted, and those begun and successfully prose- cuted under the administrations of President McKinley and President Roosevelt: United States v. Joint Traffic Association, 171 U. S. f 505 (de- cided October 24, 1898). In this case the Supreme Court held illegal what is known as the JoinfTraffic Agreement, an agreement entered into by 31 different railroads operating in the territory between Chicago and the Atlantic Coast, for the purpose of fixing and maintaining rates and fares. The court held: That Congress has the power to prohibit, as in restraint of interstate commerce, a contract or combination between compet- ing railorad companies to establish and maintain interstate rates and fares for the transportation of freight and' passengers on any of the railroads parties to the combination, even though the rates and fares thus established are reasonable; That Congress has the power to forbid any agreement or com- bination among or between competing railroad companies for interstate commerce by means of which competition is pre- vented; and That the Sherman Anti-Trust law is a legitimate exercise of the power of Congress over interstate commerce, and a valid regulation thereof. United States v. Addyston Pipe & Steel Co., (decided Decem- ber 4, 1899; 175, U. S., 211). In this case six corporations, located in different States and engaged in the manufacture of cast-iron pipe, had entered into an agreement to control the sale of cast-iron pipe in 36 States and Territories, by fixing the price of sale, dividing up the terri- tory between them, and by refusing to bid against each other. The court in declaring the combination to be illegal, held: That the power to regulate interstate commerce, and to pre- scribe the rules by which it shall be governed, is vested in Con- gress and that any agreement or combination which directly operates, not alone upon the manufacture, but upon the sale, transportation and delivery of an article of interstate commerce, by preventing or restricting its sale, thereby regulates interstate commerce to that extent, and thus violates the Anti-Trust law; That the Sherman law applies to combinations of individuals and private corporations as well as to combinations of railways ; and that Congress has authority to declare void and to prohibit the performance of any contract between individuals or corpo- rations where the natural and direct effect of such a contract shall be, when carried out, to directly regulate to any extent in- terstate or foreign commerce. United States v. Northern Securities Co. et. al., 183 U. S., 198 (decided March 14, 1904). This suit was brought in the circuit court of the United States for the district of Minnesota, in March, 1902, against the Northern Securities Company, the Great Northern Railway Com- pany, and the Northern Pacific Railway Company, to restrain the Securities Company from in any manner acting as the owner, or from voting any of the shares of the capital stock of the two railway companies; and to enjoin the two railway companies from permitting the Securities Company to vote any of the scares of the capital stock of the two roads, or from exercising any control whatsoever of the two railways. The Securities Company was formed by the officers of these two railway companies for the purpose of acquiring a control- ling interest in the capital stock of the two roads, which it did by exchanging its stock for the stock of the two railways. Just prior to the formation of the Securities Company the Great Northern and the Northern Pacific Railway Companies had joint- TRUSTS AND INDUSTRIAL COMBINATIONS. 175 ly acquired a controlling interest in the stock of the Chicago, Burlington & Quincy Railroad Company. For this stock the two railroad companies issued their joint bonds, pledging the capital stock so purchased as collateral for the payment of the purchase bonds. In this manner the two railway companies secured joint control of the Burlington system. In securing a controlling interest in the stocks of the Great Northern ana Northern Pacific systems the Securities Company not only secured the control of those two systems but also of the Burlington system controlled by them, which enabled it to dictate the policy of all three railway systems, and to prevent all competition between them. By these means, it was entirely within the power of the Securities Company to absolutely con- trol all three systems of railway and to suppress all competition between these hitherto competing lines of railway in all of the States through which they ran, lying north of the line of the Union Pacific Railway and between the Great Lakes and the Pacific Ocean. Upon full hearing the circuit court held the combination to be illegal and restrained all acts under it. On appeal, the Su- preme Court affirmed the decree of the circuit court and, among other things, held: That the principal, if not the sole object of creating the Securities Company, was to secure and to hold a controlling in- terest in the stock of both railway companies and thus prevent all competition between them; and that such an arrangement w r as an illegal combination in restraint of interstate commerce and a violation of the Sherman Anti-Trust law; That every combination or conspiracy which would extin- guish competition between otherwise competing railroads, en- gaged in interstate trade or commerce, and which would in that way restrain such trade or commerce, is made illegal by that act; That Congress has the power to establish rules by which in- terstate commerce shall be governed, and by the Anti-Trust act has prescribed the rule of free competition among those engaged in such commerce; and That it need not be shown that such a combination, in fact, results, or will result to suppress or restrain such commerce, but it is only essential to show that the combination possesses the power to do so, if it wishes to exercise it. United States v. Chesapeake & Ohio Fuel Co. et al, 105 Fed. Rep., 93. In this case the U. S. circuit court for the southern district of Ohio, in the suit brought in May, 1899, for that purpose, re- strained the carrying out of an agreement between 14 coal com- panies engaged in mining coal and making coke in West Virginia and a fuel company— whereby the latier company was to take the entire product of the mining companies intended for ship- ment to the Western States; to sell the same at not less than a minimum price to be fixed by a committee of the mining com- panies; to account for and to pay over to them the entire pro- ceeds above a fixed pric# each company receiving payment at the same rate, and the fuel company binding itself not to sell the product of a competing company— as being in violation of the Anti-Trust law, the combination being in restraint of interstate trade and commerce and as tending to monopoly. The court held that— It is the declared policy of Congress to promote individual competition in relation to interstate commerce, and to prevent combinations which restrain such competition between their members; and that it is no defense to an action to dissolve such a combination under the Anti-Trust law r that it has not in fact been productive of injury to the public if it possesses the power to injure if it wishes to exercise it. Upon appeal by the combination the circuit court of appeals for the sixth circuit affirmed the decree of the lower court, from which decree of affirmance no appeal was taken (115 Fed. Rep., 610). United States v. Swift & Co. et al, 122 Fed. Rep., 529. This suit, instituted in May, 1902, commonly called the "Beef 176 TRUSTS AMI INIU'STKIAL COM HI N A TIONS. Treat" suit, was brought in the U. S. circuit court, for the north- ern district of Illinois to restrain the operations of the "Beef Trust," a combination composed of the principal buyers of live stock and shippers of dressed meats in the United States. The object of the combination was to restrain competition among themselves in the buying of live stock and in the sale of dressed meats. The court held — That the agreement of the defendants to refrain from bid- ding against each other in the purchase of live stock; to bid up prices for a short time to induce large shipments and then to reduce the price and cease competitive bidding when the shipments arrived; and the agreement to fix and maintain uniform prices for dressed meats, wasl in restraint of trade and violated the Sherman law; That the Sherman law has no concern with prices, but looks solely to competition and to the giving of competition full play by making illegal any effort at restriction upon commerce. The court therefore granted the injunction prayed for by the Government From this action the Beef Trust has taken an ap- peal to the Supreme Court. United States v. The Federal Salt Company, et al. The combination involved in this case (brought in October, 1902)" was known as the "Salt Trust," and was formed for the purpose of raising and maintaining the price of salt in the States west of the Rocky mountains. The circuit court of the United States for the northern district of California enjoined the com- bination from acting under its agreement in restraint of trade and commerce, and the combination was dissolved. The grand jury (in February, 1903) also returned an indictment against the trust* to which it pleaded guilty, and was sentenced to pay a fine, which was paid. Fiirther "Work Begrun by the Department of Commerce and Labor. This record of things well done justifies the Republican party in asking the people to leave the further solution of industrial problems in its hands, but it is not content with simply point- ing to the past; it is working in the present preparing for the future. The creation of the Bureau of Corporations in the De- partment of Commerce and Labor marks the change from the old to the new way of dealing with the trusts. The chief dif- ficulty has been lack of accurate knowledge regarding existing conditions. The purpose of the Bureau is to get all essential facts about the business of interstate and foreign commerce, and the agencies engaged therein. It has broad powers of in- quiry. The facts it obtains, reported to Congress through the President, will afford a sound basis for wise and progressive constructive legislation. The work of the Bureau thus far has been a systematic study of legal and industrial conditions in all the States and special investigations into particular industries. These investigations have been conducted vigorously, but not with a spirit of hostility to all the industries because of the misdeeds of some. The great powers given the Bureau would be justly condemned by the people if used for partisan attack upon special corporations, or the exploitation of the operations of business enterprises for the sake of temporary political advantage. The result of the year's work is most gratifying. The people at large have confidence that Congress will get the information it needs, business men see that legitimate enterprise need not fear unjust attack nor improper inquisitorial investigation. The Bureau is not charged with the enforcement of any penal statute. Those Democratic leaders who charge it wit. failure to suppress a corporation alleged to be violating a law either will- fully misrepresent facts, or are wofully ignorant of the organic statute. The clamor of Democracy for an indiscriminate assault upon corporations will not drive this Administration from its Steadfast, though undramatic, work of discovering facts upon which it can recommend a practical change of laws which wiU improve, not destroy, our industries TRUSTS AND INDUSTRIAL COMBINATIONS. 177 The Northern Securities Decision and the Power of Congress to Deal with Trusts. The Supreme Court in the Northern Securities case has cleared away many of the popular doubts about the power of Congress to deal with interstate commerce, as shown by the fol- lowing extracts from the opinion: It is sufficient to say that from the decisions in the above cases certain propositions are plainly deducible and embrace the present case. Those propositions are — That although the act of Congress known as the Anti-Trust act has no reference to the mere manufacture or production of articles or commodites within the limits of the several States, it does embrace and declare to be illegal every contract, combination, or conspiracy, in whatever form, of whatever nature, and whoever may be parties to it, which directly or necessarily operates in restraint of trade or commerce among the several States or with foreign nations; That the act is not limited to restraints of interstate and inter- national trade or commerce that are unreasonable in their nature, but embraces all direct restraints imposed by any combination, conspiracy, or monopoly upon such trade or commerce; That railroad carriers engaged in interstate or international trade or commerce are embraced by the act; That combinations even among private manufacturers or deal- ers whereby interstate or international commerce is restrained are equally embraced by the act; That Congress has the power to establish rules by which in- terstate and international commerce shall be governed, and, by the Anti-Trust act, has prescribed the rule of free competition among those engaged in such commerce; That every combination or conspiracy which would extinguish competition between otherwise competing railroads engaged in interstate trade or commerce, and which would in that way re- strain such trade or commerce, is made illegal by the act; That the natural effect of competition is to increase commerce and an agreement whose direct effect is to prevent this play of competition restrains instead of promoting trade and commerce; That to vitiate a combination, such as the act of Congress con- demns, it need not be shown that the combination, in fact, results or will result in a total suppression of trade or in a complete monopoly, but it is only essential to show that by its necessary operation it tends to restrain interstate or international trade or commerce or tends to create a monopoly in such trade or commerce and to deprive the public of the advantages that flow from free competition; That the constitutional guaranty of liberty of contract does not prevent Congress from prescribing the rule of free competition for those engaged in interstate and international commerce; and, That under its power to regulate commerce among the several States and with foreign nations Congress had authority to enact the statute in question. No one, we assume, will deny that these propositions were dis- tinctly announced in the former decisions of this court. They cannot be ignored or their effect avoided by the intimation that the court indulged in obiter dicta. By the express words of the Constitution, Congress has power to "regulate commerce with foreign nations and among the several States, and with the Indian tribes." In view of the numerous de- cisions of this court there ought not, at this day, to be any doubt as to the general scope of such power. In some circumstances regulation may properly take the form and have the effect of pro- hibition. (In re Rahrer, 140 U. S., 545; Lottery Case, 188 U. S'., 321, 355, and authorities there cited.) Again and again this court has reaffirmed the doctrine announced in the great judgment rendered by Chief Justice Marshall for the court in Gibbons vs. Ogden (9 Wheat., 1, 196, 197), that the power of Congress to regulate com- merce among the States and with foreign nations is the power "to prescribe the rule by which commerce is to be governed;" that such power "is complete in itself, may be exercised to its utmost extent, and acknowledges no limitations other than are prescribed in the Constitution;" that "if, as has already been understood, the sovereignty of Congress, though limited to specified objects, is plenary as to those objects, the power over commerce with foreign nations and among the several States, is vested in Congress as absolutely as it would be in a sin- gle government having in its constitution the same restrictions on the exercise of the power as are found in the Constitution of the United States;" that a sound construction of the Constitution al- lows to Congress a large discretion, "with respect to the means by which the powers it confers are to be carried into execution which enable that body to perform the high duties assigned to it, in the manner most beneficial to the people;" and that if the end to be accomplished is within the scope of the Constitution, "all means which are appropriate, which are plainly adapted to that end and which are not prohibited, are constitutional." (Brown v. Maryland, 12 Wheat., 419; Sinnot v. Davenport, 22 How., 227, 238* Henderson v. The Mayor, 92 TJ. S., 259; Railroad v. Husen, 95 U. S., 465. 472; Mobile v. Kimball, 102 U. R, 691; M., K. & Texas Ry. Co. v. Haber, 169 U. S., 613, 626; The Lottery Case, 188 U. S., 321, 348.) In Cohens v. Virginia (6 Wheat., 264, 413), this court said that the United States were for many important purposes "a single nation," 178 TRUSTS AND INDUSTRIAL COMBINATIONS. and that "in all commercial regulations we are one and the same people;" and it has since frequently declared that commerce among the several States was a unit, and subject to national control. Previously, in McCulloch v. Maryland (4 Wheat., 316, 405), the court said that the Government ordained and established by the Constitution was, within the limits of the powers granted to it, "the Government of all; its powers are delegated by all; it rep- resents all, and acts for all," and was "supreme within its sphere of action." As late as the case of In re Debs (158 U. S., 564, 582), this court, every member of it concurring, said: "The entire strength of the nation may be used to enforce in any part of the land the full and free exercise of all national powers and the se- curity of all rights intrusted by the Constitution to its care. The strong arm of the National Government may be put forth to brush away all obstructions to the freedom of interstate commerce or the transportation of the mails. If the emergency arises, the army of the nation, and all its militia, are at the service of the nation to compel obedience to its laws." They serve also to give point to the declaration of this court in Gibbons v. Ogden (9 Wheat., 194) — a principle never modified oy any subsequent decision — that, subject to the limitations imposed by the Constitution upon the exercise of the powers granted by that instrument, "the power over commerce with foreign nations and among the several States is vested in Congress as absolutely as it would be in a single government having in its constitution the same restrictions on the exercise of power as are found in the Constitution of the United States." Is there, then, any escape from the conclusion that, subject only to such restrictions, the power of Congress over interstate and international commerce is as full and complete as is the power of any State over its domes- tic commerce? If a State may strike down combinations that re- strain its domestic commerce by destroying free competition among those engaged in such commerce, what power, except that of Con- gress, is competent to protect the freedom of interstate and inter- national commerce when assailed by a combination that restrains such commerce by stifling competition among those engaged in it? We reject any such view of the relations of the National Gov- ernment and the States composing the Union, as that for which the defendants contend. Such a view cannot be maintained without destroying the just authority of the United States. It is inconsis- tent with all the decisions of this court as to the powers of the National Government over matters committed to it. No State can, by merely creating a corporation, or in any other mode, project its authority into other States, and across the continent, so as to pre- vent Congress from exerting the power it possesses under the Constitution over interstate and international commerce, or so as to exempt its corporation engaged in interstate commerce from obedi- ence to any rule lawfully established by Congress for such com- merce. It cannot be said that any State may give a corporation, created under its laws, authority to restrain interstate or inter- national commerce against the will of the nation as lawfully ex- pressed by Congress. Every corporation created by a State is necessarily subject to the supreme law of the land. And yet the suggestion is made that to restrain a State corporation from in- terfering with the free course of trade and commerce among the States, in violation of an act of Congress, is hostile to the re- served rights of the States. The Federal court may not have power to forfeit the charter of the Securities Company; it may not declare how its shares of stock may be transferred on its books, nor pro- hibit it from acquiring real estate, nor diminish or increase its capital stock. All these and like matters are to be regulated by the State which created the company. But to the end that effect be given to the national will, lawfully expressed, Congress may prevent that company, in its capacity as a holding corporation and trustee, from carrying out the purposes of a combination formed in restraint of interstate commerce. The Securities Com- pany is itself a part of the present combination; its head and front; its trustee. It would be extraordinary if the court, in exe- cuting the act of Congress, could not lay hands upon that com- pany and prevent it from doing that which, if done, will defeat the act of Congress. Upon like grounds the court can, by appro- priate orders, prevent the two competing railroad companies here involved from co-operating with the Securities Company in restraining commerce among the States. In short, the court may make any order necessary to bring about the dissolution or suppression of an illegal combination that restrains interstate commerce. All this can be done without infringing in any degree upon the just authority of the States. The affirmance of the judg- ment below will only mean that no combination, however powerful, is stronger than the law or- will be permitted to avail itself of the pretext that to prevent it doing that which, if done, would de- feat a legal enactment of Congress, is to attack the reserved rights of the States. It would mean that the Government, which repre- sents all, can, when acting within the limits of its powers, compel obedience to its authority. It would mean that no device in evasion of its provisions, however skillfully such device may have been con- trived, and no combination, by whomsoever formed, is beyond the reach of the supreme law of the land, if such device or com- bination by its operation directly restrains commerce among the States or with foreign nations in violaton of the act of Congress. The question of the relations of the General Government with the States is again presented by the specific contention of each de- fendant that Congress did not intend "to limit the power of the several States to create corporations, define their purposes, fix the / : TRUSTS AND INDUSTRIAL COMBINATIONS. 179 amount of their capital, and determine who may buy, own, and sell their stock." All that is true, generally speaking, but the con- tention falls far short of meeting the controlling questions in this case. To meet this contention we must repeat some things already said in this opinion. But if what we have said be sound, repetition will do no harm. So far as the Constitution of the United States is concerned, a State may, indeed, create a corporation, define its powers, prescribe the amount of its stock, and the mode in which it may be transferred. It may even authorize one of its corpora- tions to engage in commerce of every kind; domestic, interstate, and international. The regulation or control of purely domestic commerce of a State is, of course, with the State, and Congress has no direct power over it so long as what is done by the State does not interfere with the operations of the General Government, or any legal enactment of Congress. A State, if it chooses so to do, may even submit to the existence of combinations within its limits that restrain its internal trade. But neither a State corpor- ation nor its' stockholders 'may, by reason of the non-action of the State or by means of any combination among such stockholders, interfere with the complete enforcement of any rule lawfully de- vised by Congress for the conduct of commerce among the States or with foreign nations; for. as we have seen, interstate and inter- national commerce is by the Constitution under the control of Congress, and it belongs to the legislative department of the Government to prescribe rules for the conduct of that commerce. If it were otherwise, the declaration in the Constitution of its su- premacy, and of the supremacy as well of the laws made in pur- suance of its provisions, was a waste of words. Whilst every in- strumentality of domestic commerce is subject to State control, every instrumentality of interstate commerce may be reached and controlled by national authority, so far as to compel it to respect the rules for such commerce lawfully established by Congress. The combination here in question may have been for the pe- cuniary benefit of those who formed or caused it to be formed. But the interests of private persons and corporations cannot be made paramount to the interests of the general public. Under the Articles of Confederation commerce among the original States was subject to vexatious and local regulations that took no account of the general welfare. But it was for the protection of the general interests, as involved in interstate and international commerce, that Congress, representing the whole country, was given by the Constitution full power to regulate commerce among the States and with foreign nations. This decision is a complete answer to those who attack the Administration on the one hand for failing to enforce the Sher- man law, or on the other for unwarrantedly assailing business interests. Attitude of the Two Parties Contrasted. Therefore, upon its record of promises kept, things done, work going on, and policies outlined, the Republican party confidently believes that the industrial welfare of the country will best be conserved by continuing in power its leaders. The issue between the two great parties on this subject is not clearly defined, but the proposed methods of dealing with trusts are widely different. The Republican party says let in the light, search the depths of industrial conditions, get the truth, then build better and strong- er. The Democratic party says strike in the dark, injure all because some are bad, destroy existing conditions before know- ing what to substitute. The American people were not led astray by the misguided theories of Democracy in 1896 and 1900, nor will they be misled this year. That party preaches discontent, but their remedy is destruction; the Republican party, industrially, as politically, recognizes discontent as an accompaniment of progress, and its remedy is construction. The Real Attitude of the Two Great Parties. The attitude of the two great parties on the Trust question is clearly defined. That of the Democratic party looks to constant agitation, with no restrictive legislation ; that of the Republican party to such restriction as will prevent arbitrary advance in prices, or reduction in wages through exclusive control, but not the destruction by legislation or injury by fictitious agitation of legitimate enterprise through great manufacturing systems by which production is cheapened, prices of manufactures reduced, and permanency of employment assured. As far back as the Fiftieth Congress the Democrats began their agitation for effect by the passage of a resolution authorizing the House Committee on Manufactures to enter upon an investigation of the Trusts of the United States. Such distinguished Democratic leaders as Representative Wilson of West Virginia, Representative Breckin- 180 TKt SIN \M) IMH STHIAI, COMBINATIONS, ridge of Arkansas, Representative Bynum of Indiana, and Repre- sentative Bacon of New York were members of the Committee, and they were given power to administer oaths, examine wit- nesses, compel the attendance of persons and the production of papers, and make their investigation a thorough one. More than 100 witnesses, Including II. A. Havemeyer and Claus Spreckels of sugar fame, Mr. Rockefeller, Mr. Flagler, and others of the Standard Oil Company, and representatives of the cotton bagging trust and whisky trust were examined A thousand pages of testi- mony were taken and the Committee delayed its report until one day before the expiration of the Congress, when it presented its testimony, but made no recommendation as to legislation, "owing to the present difference of opinion between members of the Com- mittee." .In the Fifty-second Congress the House Judiciary Com- mittee made another investigation, and after an examination of many witnesses, submitted a report in which it declared that "none of the methods employed by the trust in controlling the production or disposition of their products are in violation of the United States laws," and that "it is clearly settled that the pro- duction or manufacture of that which may become a subject of interstate commerce and ultimately pass into protected trade is not commerce, nor can manufacturers of any sort be instruments of commerce within the meaning of the Constitution." In 1894 they again grappled with the Trust problem, adding to the Wilson- Gorman tariff law a series of provisions purporting to authorize the regulation of Trusts, but which neither the Democratic Presi- dent nor the Democratic officials who were in power when the act came into existence made, so far as is known, any attempt to put into operation. The difference between Democratic promises and Republican performances is strikingly illustrated by the enactment of the measure known as the Sherman Anti-Trust Law, which was enacted in 1890 by a Republican Congress and signed by a Re- publican President — Benjamin Harrison. Although the Democrats sneered at the bill, which they contended was simply a piece of buncombe and would be only a dead letter, the recent decisions of the Supreme Court have shown that it is at least the only piece of legislation ever put upon the statute books which has the sem- blance of power to control and prevent combinations in restraint of production or commerce. While attacks upon Trusts have been the stock in trade of professional agitators, none of them has offered any practical leg- islation which could be enforced in the several States other than that which might be provided through a constitutional amendment. Even Mr. Bryan, who omits no opportunity to declare his hostility to Trusts, offers no legislative remedy other than that which would be supplied by a constitutional amendment. In his address before the Trust Conference in Chicago, on September 16, 1899, he said: "I believe we ought to have remedies in both State and Nation, and that there should be concurrent remedies. * * * I believe in addition to a State remedy there must be a Federal remedy, and I believe Congress has, or should have, the power to place restrictions and limitations, even to the point of prohibition, upon any corporation organized in one State that wants to do business outside of the State. * * * Congress ought now to pass such a law. If it is unconstitutional and so declared by the Supreme Court I am in favor of an amendment to the Constitution that will give to Congress power to destroy every Trust in the country." Yet, in the face of this assertion, when the Judiciary Committee of the House of Representatives on June 1, 1900, brought before that body a joint resolution providing for a Con- stitutional amendment which should give Congress power to regu- late Trusts, only 5 Democrats voted for it, while practically every Republican in the House voted for the measure, but as it required a two-thirds vote, the Democrats were strong enough to defeat it. Trusts in Europe. The development of the trusts has not been confined to this country, but has extended throughout all the great commercial nations of the world. Under the direction of the Industrial Com- mission, Professor J. W. Jenks in 1891 made a careful study of the condition in Europe, his full report appearing in volume 18 of the TRUSTS AND INDUSTRIAL OOMKINATTONS. 181 Report of the Industrial Commission. His conclusions were as follows : "1. There is, relatively speaking, little objection to com- binations in Europe, and in some countries the governments and people seem to believe that they are needed to meet modern in- dustrial conditions. They do believe that they should be carefully supervised by the Government and, if necessary, controlled. "2. There is little or no belief that the protective tariff is re- sponsible for their existence. Tt is known that they at times use the tariff to keep their prices higher than would otherwise be possible, and that their export prices are often lower than their domestic prices. The tariff should be guarded so as to prevent serious abuses', but there is practically no thought of its aboli- tion. "3. Railroad discriminations have been practically abolished in Europe, and in consequence they have had no effect toward cre- ating combinations. "4. The great degree of publicity in the organization of cor- porations has largely prevented the evils arising from stock watering, and has evidently had much effect in keeping prices steady and reasonable, and in keeping wages steady and just. "5. There seems to be no inclination toward the passage of laws which shall attempt to kill the combinations. That is be- lieved to be impossible and unwise. Laws should attempt only to control, and that apparently chiefly through publicity, though the governments may be given restrictive power in exceptional cases." United States consuls in 1900 were requested to report such information as they might be able to obtain relating to trusts or combinations in the countries in which they were serving. These interesting reports were published in the series of Consular Re- ports (in volume 21, part 3) under the title of "Trusts and Trade Combinations in Europe." The following are extracts from the reports : TRUSTS IN THE UNITED KINGDOM. [From the U. S. Consul at Bradford^ England.] The combine mania has smitten this district with almost the fury of an epidemic, and more than any other part of the country it is responsible for the flotation of trusts. To what extent these have been effected will be clearly seen from the following table: Date of Name of company. Number of busi- nesses absorbed. Capitalization. flota- tion. English money. United States equivalent. 1898. Dec. 14. Bradford Dyers' Association. 22 11 9 38 46 £4,500,000 600,000 250.000 2,500,000 2,750.000 $21,899,250 1899. July 4 Yorkshire Indigo, Scarlet, and 2,919,900 July 6 Oct. 9 Bradford Coal Merchants and Consumers' Association. Ltd.. Yorkshire Wool Consumers As- 1,216.625 12,166.250 1900. April 4 British Cotton and "Wool Dyers' 13.382,875 Total 126 10,600,000 51.584,900 The above are the trusts which so far have been submitted to the British public for support in this district, but there is in em- bryo a combine which will embrace all the firms engaged in the manufacture of cards for the woolen and 'worsted trade. There are about thirty firms carrying on business, and more, than half have already signified their intention to form a syndicate, but it is felt that such a combination should comprise at least 75 p^r cent of the whole trade. It is expected that the capital of the combination, if it is formed, will be about £200,000 ($973,300) or £250,00$ ($1,216,625). There is also a movement which it is hoped will result in the formation of a trust comprising the Bradford dress-goods manu- facturers. Already a meeting has been held, and invitations have been sent asking whether firms would be willing to join in the syndicate. The dress-goods manufacturers in this district are so multitudinous and the variety of goods made is so great that such 182 fBl ITf AMI INDUSTRIAL COMBINATIONS a trust would be almost past human genius to manage. Another proposed combine covers the interests of the Bradford worsted spinners. Here, again, the trade is confronted with such a huge Bcheme that many express the opinion that it will never be accom- plished. The matter has been freely talked over by many leading worsted spinners in this district with the promoter of textile com- bines, and although there is a good deal yet to be done, I am assured that matters are proceeding satisfactorily. The proposed combination will include not only the spinners of fine and "Bot- any" yarns, but also of "crossbreds." Spinners' and Skipping Trust. Consul Halstead writes from Birmingham, March 1, 1900, in regard to the apathy with which the people of Great Britain re- gard the formation of trusts. The news editor of the London Mail (circulation, one million two hundred and odd thousand) gives only some thirty-two lines to an item of the kind, and the editor in chief is not disturbed to the extent of a single editorial paragraph. Except an approving paragraph or two in the financial columns when the flotation is advertised, one can look in vain in other papers for either news or editorial notice referring to English trusts. Mr. Halstead con- tinues : I have a clipping from the February 1 issue of the London Daily Mail. It is an announcement of a proposed formation of a worsted spinners' trust. This trust is to have a capital of £18,- 000,000 ($87,597,000), and one hundred and six firms are con- cerned ; yet the news editor of the Mail judges this item to be worth only a two-line head, twenty-eight lines of small type, set solid. The item is as follows : Another Huge Trust — Bradford Spinners Discuss an £18,000,000 Combine. • A meeting- of spinners engaged in the worsted trade was held yesterday in Bradford to consider the question of forming a com- bination of firms in that branch of business. One hundred and six firms were represented. Mr. Scott Ling, of Manchester, who presided, explained that it was proposed to buy out firms on the basis of allowing nothing for good will of concerns which show only 5 per cent, profit. All profit beyond 5 per cent, will be multiplied seven and a half times, and that amount allowed for good will. On such a basis he calcu- lated they could show iy 2 to 8 per cent, for ordinary shareholders. A resolution in favor of combination was unanimously passed, and the following committee appointed to devise a scheme: Mr. Ickeringill, of Keighley; Mr. James Drummond, of Bradford; Mr. Alfred Haley, of Wakefield; Mr. A. Anderton, of Checkheaton; Mr. J. Hoyle, of Halifax; Mr. Smithies, of Halland, and Mr. H. White- head of Bradford. Opinion is divided as - to the possibility of a successful com- bination. Some put the probable total capital at £18,000,000. I take from the same issue of the Daily Mail the following extract in regard to the amalgamation as a "trust" of two great South African steamship companies: Cape Shipping Combination. Details are now fully arranged of the recently announced amalgamation of the two well-known Cape mail companies. The object of the amalgamation is to provide for the more effi- cient working of the South African trade and for the carrying out of the joint mail contract which the companies have made with the Cape Government for ten years from October next. The Castle Company changes its name to the "Union-Castle Mail Steamship Company, Limited," takes over the property and liabilities of the Union Company, and increases its nominal capital to £2,000,000. The directorates also combine, and Sir Francis Evans, chairman and 'managing director of the Union, joins the firms of Donald Currie & Co. in the control of the amalgamated poncern. A new 4 per cent debenture stock will be created, for which the shareholders in both companies will be allowed to exchange their present stock. It is proposed that the shares of the united company shall be £10 instead of £20 shares, and the shareholders of the Uniojf Com- pany will receive for their paid-up capital an allotment of an equal nominal amount of fully paid-up shares of the Union Castle Com- pany, and in addition will receive £6 13s. 4d. per share, payable in 4 per cent debenture stock. Wail-Paper Trust. Under date of Birmingham, February 16, 1900, Consul Hal- stead says: TRUSTS AND INDUSTRIAL COMBINATIONS. 183 Combinations of the kind which at home we call "trusts" are created here without attracting public attention or causing alarm, though no trouble is taken to keep the facts from getting to the public, and it is rare that one hears a voice raised against trusts. A wall-paper combination with £6,000,000 ($29,199,000) of capital is announced, and receives from the London Daily Mail, a news- paper which is very active in news gathering, only the scant at- tention of a two-line head, twenty-one lines of type set solid, and an inconspicuous position. The Mail article reads as follows : The Association of Wall-Paper Manufacturers, after working jointly since September 30, are now preparing. a prospectus, and an issue of capital will be made within the next few days'. The company is already registered with £4,000,000 of share capital, plus debentures, and the new issue will probably be £6,000,000. Practically every maker of paper hangings in the Kingdom is stated to be embraced by the federation, including Scotch, Lan- cashire, Yorkshire, and London concerns. The chairman of the combination is W. P. Huntington, late member of Parliament for the Darwen division of Lancashire, and sheriff of Lancashire. Many important consolidations, adjustments, and economies have already been effected since the formation of the federation. Trust in Bleaching Trade. Consul Halstead writes from Birmingham, February 24, 1900 : Wednesday's edition of the London Mail refers to the forma- tion of a bleaching trust with a capitalization of £10,000,000 or £12,000,000. This, in the judgment of the managing editor, is worthy of only one headline, twenty-two lines of nonpareil type set solid. The Daily Mail article reads as follows: Bleaehing-Triule Combine. The Lancashire bleaching trade will shortly be in the hands of a powerful company. It is said that the combination will involve the capitalization of from £10,000,000 to £12,000,000 ($48,665,000 to $58,398,000), and the object in view is to prevent individual concerns from indulging in sharp practices, cutting prices, discounts, etc. Individual businesses are to be taken over and worked from March 31 by the company, which will be known as the Lancashire Bleachers' Association, Limited, and the prospectus will probably be in the hands of the public soon after that date. Experts are confident that there is no branch of the textile in- dustries which will so well and profitably lend itself to the adop- tion of joint-stock-combination principles as that of the Lanca- shire bleaching trade. A provisional committee has been appointed from among the members of the largest firms. Mr. Halstead adds, July 23, 1900: In the advertising columns of the Times, Mail, Express, and other London and provincial papers appears to-day the prospectus of the Bleachers' Association, Limited, the cotton bleaching "trust" the proposed formation of which I reported some time ago. The share capital of this new "trust" is given at £6,000,000, and added to this as an exact statement of the money involved there are £2,250,000 in 4*4 per cent first mortgage debenture stock, mak- ing a total of £8,250,000, equivalent in American money to $40,- 148,625. Power is reserved by the "trust" deed to create further debenture stock in addition to the amount announced, provided it is necessary. I have not seen, in the five daily newspapers I have read this morning, a single editorial comment on the formation of this great "trust," which is, by the way, a full brother organiza- tion to the Bradford Dyers' Association, Limited, an equally great "trust," and with which it has a working arrangement, which is shown by this paragraph taken from the prospectus : A few of the amalgamated firms are dyers as well as bleachers, and the two businesses' may be usefully and profitably continued side by side. There is, however, no intention of competing with the Bradford Dyers' Association, Limited, and in the case of one firm which carries on at one of its works piece dyeing of the Bradford class',* the Gompany has arranged to transfer the dye works to that association. The prospectus states that the company has been formed with the object of acquiring and amalgamating numerous firms and companies engaged in the bleaching trade and of strengthening and *I think this means' dyeing of wool. — Consul. 184 TRUSTS AND INDUSTRIAL COMBINATIONS. extending various associations which previously existed for vari- ous purposes In connection with Hie trade. The Dames of the fifty-three linns which have entered into contract for the sale of their businesses to the "trust" are given, and are as follows: Richard Ainsworth, Son & Co., Halliwell Bleachworks, Boiton, established 1760. The Birkacre Company, Limited (bleaching business only), Birkacre Bleachworks. Chorley, established 1871. John & Henry Bleachley, Myrtle Grove Bleachworks', Prest- wich, established 1799. Thomas Ridgway Bridson & Sons, Bolton Bleachworks, Bolton, established prior to 1800. Thomas Ridgway Bridson & Sons, Lever Bank Bleachworks, Little Lever, established prior to 1832. W. E. Buckley & Co., Limited, Pilsworth Bleachworks, White- field, near Manchester, established 1878. Buckley & Brennand, Seedley Bleachworks, Seedley, estab- lished 1887. R. & A. Chambers', Limited, Spring Waters Bleachworks Whitefield, near Manchester, established 1856. Thomas Cross' & Co., Limited, Mortfield Bleachworks, Bolton, established 1820. Davies & Eckersley, Limited, Huyton Bleachworks, Adlington, Lancashire, established 1831. Deeply Vale & Co., Limited, Deeply Vale, near Bury. Eccles Bleaching Company, Limited, Bentcliffe Works, Eccles, established 1877.- Eden & Thwaites, Limited, Waters Meeting Bleachworks, Bol- ton, established 1770. Forrest. Gillies & Co., Lanfine Bleachworks, New Milns, Ayr- shire, established 1882. Andrew Greenhalgh, Clough Bleachworks, Radcliffe, estab- lished 1831. Andrew Greenhalgh, Ballydown Bleachworks, Banbridge, es- tablished 1820. Edward Hall & Bros., Limited, Whaley Bridge Bleachworks, Whaley Bridge, established 1830. Adam Hamilton & Sons, Blackland Mill, near Paisley, estab- lished 1780. Handforth Bleaching Company, Limited, Handforth, estab- lished 1860. James Hardcastle & Co., Bradshaw Works, Bolton, established 1784. Thomas Hardcastle & Son, Firewood Works, Bolton, estab- lished 1803. Hepburn & Co., Limited, The Square Works, Ramsbottom, es- tablished prior to 1800. Robert Heywood, Crescent Bleachworks, Salford, established 1838. Horidge & Co., Raikes Bleachworks, Bolton, established 1822. The Irkdale Bleachworks Company, Limited, Irkdale Works, Middleton, established 1874 Kay & Smith, Lands' End Works, Middleton, established prior to 1820. The Kersal Bleaching Company, Kersal Vale Bleachworks, Higher Broughton. established 1892. A. J. King & Co., Ingersley Vale, Bollington, near Macclesfield, established 1876. Kirkpatrick Brothers, Ballyclare Bleachworks, Ballyclare, County Antrim, established prior to 1800. Knowles & Green, Underscore Bleachworks, Bolton, estab- lished 1800. Thomas Lewis Linsey, Hollins Vale Bleachworks, Whitefield, established 1849. Longworth & Co., Springfield Bleachworks, Astley Bridge, Bol- ton, established 1840. James McHaffie & Son, Kirktonfield, Neilston, established 1817. John McNab & Co., Midtownfield, Howard, New Brunswick, es- tablished 1825. Melland & Coward, Limited, Heaton Mersey, Manchester, es- tablished 1820. H. Milner & Co., Northdean Bleachworks, Pendlebury, estab- lished 1885. William Mosley, Cheadle Bleachworks', Cheadle, Manchester, established 1875. George Murton & Co., Sharpies Bleachworks and Mill Hill Bleachworks, Bolton, established 1845. The Rawtentsall Bleaching Company, Rawtentsall, established 1884. Thomas Ridgway & Co., Wallsuches Bleachworks, Horwich, established 1801. Robert K. Roberts, Stormer Hill Bleachworks, Tottington, near Bury, established 1799. Executors of S. Rothwell, Woodhill Bleachworks, Elton, near Bury. G. & S. Slater, Dunscar, Bolton, established prior to 1800. Simpson & Jackson, Street Bridge Bleachworks, Royton, Old- ham, established 1761. John Smith, Jr., & Co., Great Lever Works', Bolton, estab- lished 1840. John Stanning & Son, Limited, Leyland Bleachworks, Leyland, established prior to 1830, r TRUSTS AND INDUSTRIAL COMBINATIONS. 185 S'ykes & Co., Limited, Edgeley Bleachworks, Stockport, estab- lished 1871. John Waterhouse & Co.. Tootel Bridge Bleachworks, Breight- ment, Bolton, established 1793. Samuel Walch, Outwood Bleachworks, near Prestwich, estab- lished 1850. John Whitehouse, Elton Works, Bury, established prior to 1800. John Whittaker & Co., Mount Sion Bleachworks, Radcliffe, es- tablished 1771. Charles Whowell, Two Brooks Bleachworks, Tottington, es- tablished 1859. John Young & Co., Crumpsall, Limited, Anchor Bleachworks, Hendham, Hendham Vale, Manchester, established prior to 1800. From the prospectus I take the following paragraphs explana- tory of the purposes of the trust : The principal business of the company is the bleaching and finishing of cotton piece goods of every description. The chief center of the cotton industry is Manchester, and all the works acquired by the company are situated within convenient distance of that city excepting those of four Scotch and two Irish firms, who are engaged in special branches of the bleaching busi- ness, and are regarded as desirable acquisitions for the company. A few of the malgamated firms are dyers as well as bleachers, and the two businesses may be usefully and profitably continued side by side. There is, however, no intention of competing with the Bradford Dyers' Association, Limited, and in the case of one firm, which carries on at one of its works piece dyeing of the Bradford class, the company have arranged to transfer the dye works to that association. The bleaching trade is' one of the oldest in Lancashire, and has proved itself a steady and prosperous one. It is also preemi- nently a safe trade. Bleachers are not buyers or sellers of the goods upon which they operate, their business being to bleach and finish goods for the merchants. It is practically free from ordi- nary trade risks; the profits are believed to have been exception- ally stable, and there is no record of any bleacher having suffered appreciable loss through bad debts' incurred in the course of his legitimate trade. The great and ever increasing difficulty of obtaining an ade- quate supply of water renders the position of the old established bleaching firms a very strong one, while enforcement of law against pollution of rivers tends still further to prevent the erec- tion of new works. For a great many years past, there have existed in the Man- chester bleaching trade voluntary associations for the regulation of prices in branches of the business and for other purposes, and these have worked in harmony with the merchants as well as to the advantage of the trade; but it has been realized that the -full advantages of cooperation can be secured only by amalgamation, for the success of which the organization and existence of these associations give exceptional facilities. The present amalgamation has secured the adhesion of many firms who were not previously members of any price association. It is believed the formation of this company will strengthen the cordial relations already existing with the Manchester merch- ants, for, being in possession of works of every description capa- ble of dealing at appropriate prices with every branch of bleaching and finishing, the amalgamated firms will be enabled to satisfy the varying demands of the whole Manchester trade and meet any competition from abroad or elsewhere. Individual effort will be maintained among che various' amal- gamated firms. So far as possible, the management of each works will be left in the hands of those who have been responsible for its conduct in the past, and the heads of each branch may under the articles of association be remunerated wholly or partially by a commission of percentage on the profits of the branch managed by them. Each firm will continue to deal personally with its own customers, and arrangements which have been made by individual firms with regard to special finishes for particular customers will be strictly adhered to. The general management of the business of the company is vested in general managers. The first two managers will hold . office for three years, and the remuneration attached to their posts is limited to a commission, payable to each of them, of 2y 2 per cent on the balance of the net profits made by the company during each year over and above the sum required to pay the debenture interest and preference divided for that year. The directors believe that the successful management of the undertaking and the cordial cooperation of all the amalgamated firms are secured by the appointment as first general managers of Mr. John Brennand and Mr. John Stanning. The remuneration of the chairman, vice-chairman, and direc- tors (other than the general managers) will be fixed by the share holders in general meeting. As so many kinds of cottons are shipped to America from Man- chester, this trust has an interest to us. In the year ending De- cember 31, 1899, it sent to the United States, colors, dyestuffs, and chemicals to a total value of $125,592.76. Igg TRUSTS AND INDUSTRIAL COMBINATIONS. Cement Trust. Consul Ilalstead writes from Birmingham, under date of July 14, 1900 : British newspapers are to-day printing in their advertising columns the preliminary notice of the Associated Portland Cement Manufacturers. Limited, with a total capital of £8,000,000. This $40,000,000 cement "trust" attracts do attention, and its formation is not even commented upon by the newspapers. In a recent num- ber of the Advance Sheets of Consular Reports, Consul Worman, Of Munich, announces that German manufacturers of cement are to hold a meeting for the formation of a syndicate, which will open a central bureau for the sale of all cement of German manu- facture. Scotland. [From the United States' Consul at Edinburgh.] I submit the following list of trade combinations in the United Kingdom : In February, 1891, the United Alkali Company, Limited, was formed, combining in one undertaking various chemical works in the United Kingdom, in which some or all of the following chemi- cals are manufactured, viz. : Bleaching powder, soda ash, caustic soda, white alkali, sulphate of soda, crystals of soda, chlorate of potash, sulphuric acid, hydrochloric acid, sulphur, etc. Salt mines and works were also acquired. This company consolidated the works and businesses of forty-eight firms or companies. Offices, Liverpool. In July, 1896, J. & P. Coats, Limited, thread manufacturers, a company organized several years before, acquired the dominant interest in the businesses of Messrs. Clark & Co., Messrs. Jonas Brooks & Bros., and Messrs James Chadwick & Bro., Limited, and the capital was increased from £3,750,000 ($18,249,375) to £5,500,- 000 ($26,705,750). Offices, Paisley. The English Sewing Cotton Company, Limited, was formed in November, 1897, uniting the principal English firms and companies engaged in the manufacture of sewing, crochet, knitting, mend- ing and other cottons, including in some cases the allied busi- nesses of cotton spinning, doubling, twisting, dyeing, bleaching, polishing, bobbin making, etc. Fifteen companies were amalga- mated. Capital, £2,750,000 ($13,382,875). Offices, Manchester. The Fine Cotton Spinners and Doublers, Limited, was formed in May, 1898, consolidating thirty-one businesses and having a capital of £6,000,000 ($29,199,000). The American Thread Company, Limited, organized in Decem- ber, 1898, united thirteen businesses. Capital, £3,720,000 ($18,- 103,380). The Bradford Dyers' Association, Limited, was formed in De- cember, 1898, for the purpose of acquiring the businesses of the various companies and firms engaged in the piece-dyeing trade. Twenty-two businesses were thus amalgamated, comprising about 90 per cent of the Bradford piece-dyeing trade. In July, 1899, The Yorkshire Indigo, Scarlet, and Color Dyers, Limited, was formed for the purpose of acquiring and carrying on the works of several firms and companies engaged in the Yorkshire indigo, scarlet, and color dyeing trade. Eleven businesses were consolidated. Capital, £600,000 ($2,919,000). Offices, Hudders- field. In July, 1899, The Bradford Coal Merchants and Consumers, Limited, was formed, uniting eight businesses. Capital, £250,000 ($1,216,625). The Yorkshire Wool Combers' Association, Limited, was or- ganized in October, 1899, acquiring and amalgamating into one concern the wool-combing businesses of thirty-eight companies and firms. Capital, £2,500,000 ($12,166,250). Offices, Bradford., The British Oil and Cake Mills, Limited, formed in July, 1899, amalgamated seventeen companies and firms engaged in oil and cake manufacture and oil refining. Capital, £1,500,000 ($7,- 299,750). Offices, London. Barry, Ostlere & Shepherd, Limited, incorporated in October, 1899, consolidated the businesses of five companies having eight works engaged in the manufacture of floor cloth and linoleum. Capital, £4,000,000 ($19,4(36,000). Offices, Kirkcaldy. .... TRUSTS AND INDUSTRIAL COMBINATIONS. 18' The United Indigo and Chemical Company, Limited, formed in November, 1899, consolidated eight companies. Capital, £250,000 ($-1,216,025). Offices, Manchester. The Calico Printers' Association, Limited, formed in December, 1899, amalgamated sixty businesses valued at £8,047,031. Capi- tal, £9,200,000 ($44,771,800). Offices, Manchester. The Wall Paper Manufacturers, Limited, incorporated in Feb- ruary, 1900, united thirty-one firms and companies engaged in the manufacture of wall papers and raised decorative materials. Capital, £4,200,000 ($20,439,300). Offices, Darwen, England. The United Velvet Cutters' Association, Limited, formed in March, 1900, consolidated four businesses, the principal ones en- gaged in this branch of trade in England. Capital, £300,000 ($1,- 459,950). Offices, Manchester. The British Cotton and Wool Dyers' Association, Limited, in- corporated in April, 1900, united forty-six businesses. Capital, £2,- 750,000 ($13,382,875). In The Yorkshire Soap Makers' Association, Limited, formed last April, were amalgamated twelve firms and companies en- gaged in the soap making, oil, and packing, cotton-waste manu- facturing, and other kindred trades. Capital, £400,000 ($1,940,- 000). Offices, Bradford. I send under separate cover a copy of the prospectus of each of these combinations :1 The United Alkali Company, Limited; The English Sewing Cotton Company, Limited; The Yorkshire Indigo, Scarlet and Color .Dyers, Limited ; The Yorkshire Wool Combers' Association, Limited ; The British Oil and Cake Mills, Limited ; Barry, Ostlere and Shepherd, Limited; United Indigo and Chemical Company, Limited ; The Calico Printers' Association, Limited ; The Wall Paper Manufacturers, Limited ; The United Velvet Cutters' Asso- ciation, Limited; The Yorkshire Soap Makers' Association, Lim- ited; and The Bradford Dyers' Association, Limited. A rumor has been current that there is a movement among the tweed manufacturers of the south of Scotland to amalgamate, but those manufacturers who have been approached on the subject say that the story is an invention. As to the effect of the combinations in various trades upon production, wages, and prices, the opinions of well-informed men differ. It would seem that, generally speaking, the effect has been most marked in preventing a rise in wages. Wall paper has advanced about 10 per cent since March last. In the same period, ordinary sewing cottons have risen 15 per cent, and ordinary linen sewing thread from 10 to 15 per cent. The cheaper qualities of floor cloth are 2 per cent higher than the average prices in September, 1899, and the better qualities have risen 4 per cent since January 1, 1900. Glasgow. [From the United States Consul at Glasgow.] Under the law of Scotland, which is also the law of the United Kingdom, a corporation may be formed for the purpose of carrying on any business, by seven persons subscribing a memor- andum of association. The memorandum states the object for which the company is to be formed, the amount of capital with which it is to start business, and the number of shares into which the capital is divided, and whether any number of shares are to be preferred over the others as to dividend or as to payment of capital in the event of winding up ; also the name of the proposed company and the situation of its registered office. The subscribers of the memorandum of association may only have one share each. This memorandum of association is usually accompanied by articles of association, which are by-laws for regulating the business of the company, the appointment of directors, votes of shareholders, etc. These documents are sent to the registrar of joint-stock companies, who is a Government official, and on being registered by him, a certificate of incorporation is issued to the company. The Company is then incorporated and entitled to com- mence business. Hitherto, there has been no regulation as to what proportion of the nominal capital must be subscribed before commencing business, but there is a bill at present before the legis- lature, and which it is intended will became law immediately. 188 TRUSTS AND INDUSTRIAL COMBINATIONS. making it imperative that a certain proportion of the nominal capital must be subscribed before any business is done. The lia- bility of shareholders is limited to the amount, if any, unpaid on the shares held by them. A list of shareholders, with the num- ber of shares held by them and the amount paid, and a balance sheet showing the position of the company, must be lodged with the registrar annually. Any person, whether a creditor or not, can, on payment of a small fee, get from the registrar full in- formation as to the positions of any registered company. So far as trust combinations are concerned, there are no statutory enactments either prohibiting or regulating them. Such combinations are formed under the provisions appertaining to all corporations. It is worthy in passing, however, to mention that little or no attention is given to these combinations, when formed, in the public prints. They excite no comment whatever. It is for that reason very difficult to obtain information of their workings and influence. In this report, I have endeavored to give such details as I can obtain of the principal trusts or combina- tions which have their habitation in Scotland. The list may pos- sibly not be complete, though in the main I think it will be found to include all worth mentioning. I have said above that little or no discussion of trusts is found here in the public prints. Very recently, a member of the Glasgow Chamber of Commerce gave notice in that body that at the next meeting he would move to discuss the subject of trusts or combinations, and to ask the Chamber to record its opinion that such combinations are "highly prejudical to the commercial interests of this country and unjust to others engaged in similar trades or manufactures, creating as they do virtual monopolies." It was further proposed by this member that the directors of the Chamber should advise the Chamber to petition the Government to take "such steps as seem to them right" to prevent the forma- tion of these combinations and to recommend other chambers to take similar actions. Speaking of this movement on the part of the Chamber of Commerce, the "Glasgow Herald" says: It has been objected that this is not a matter of practical poli- tics, and should not, therefore, be debated by the chamber at all. But it is a matter of large social and economic importance that will sooner or later be projected into the ordinary political arena. If the system of business combinations known in America as "trusts" has not in this country, or in Europe, either attained the dimensions or developed the evil qualities to be found in the United States, it is by no means a novelty in the Old World. It is, moreover, a perfectly natural evolution of commercial enterprise, whether it is' to be commended or not. Nor is there anything new in the antipathy to such combinations and the desire to prevent them by force of law, for there existed on our statute books a hundred years ago, or more, a number of ordinances imposing penalties on combinations to fix the prices or secure the monopoly in several branches' of industry. There is a material practical dif- ference, no doubt, between trusts as we hear of them in America and as we know them in Europe. The big American trusts are formed on such a scale as to carry out the definite object of con- trolling all the influences that can affect the interests of the co- partners, including railway and other corporations and local, State, and Federal governing bodies. For the most part, the combines in Great Britain and on the Continent are of comparatively modest dimensions, and are, or are alleged to be, formed to prevent exces- sive underselling, injurious to the producers and not greatly bene- ficial to the consumers. In both cases the ultimate aim is, of course, profit, and profit is the legitimate aim of all commerce. It becomes illegitimate only when gained at the expense of the Commonwealth. If, for instance, trusts or combines operate in re- straint of trade, they are injurious to the Commonwealth. And it is just here that economic opinion varies*. To the American trusts the balance of opinion is adverse. As to the European combines, opinion is pretty much divided. Curiously enough, Germany has both more numerous and larger industrial organizations than any other country on this side of the Atlantic. It is' stated that there are upward of two hundred trusts in Germany, but probably only a very few of them at all approximate to American ideas. For the majority of them it is claimed that by checking overproduction and preventing underbidding, they have proved a blessing to the trades concerned, without at all affecting the public welfare. And here it may be at once admitted that, while it is for the public wel- fare to have commodities cheap, it is not for the public welfare that producers should be ruined and industries destroyed in the pursuit of cheapness. Perhaps the German combination best known to Britain is the Rhenish-Westphalian Coal Syndicate, which con-' trols the bulk of the German coal industry and practically regu- lates prices. It is' by no means clear that the public welfare has not suffered at the hands of this combination, And it would be un- TBUSTS AND INDUSTRIAL COMBINATIONS. 189 wise to conclude that this and similar combinations in Germany are popular, or at all events are not regarded with popular disfavor merely because they have not been denounced by any portion of the people as fiercely as the trusts are denounced in America. The circumstances of the two countries are so very different. Perhaps one reason why the German trusts have not created a political crisis is that they have hitherto exercised their powers with moderation, and have not attempted to manipulate prices so as to give cause for legal interference. And the same may be said of the combines and unions that have been formed in this country of recent years. Thread has not been made dearer by the great or- ganization of thread producers, though, of course, it may be said that it might have been cheaper had production remained free and open. It is probable that coal would have been no dearer than it is' now had the late Sir George Elliot been able to carry out, his scheme of a great coal combine. But there are other considerations besides the influence of such organizations upon price. There is, for instance, the distribution of productive industry. Under the trust system, the plan followed is to concentrate production for economy, and to close up the least profitable factories. One has only to study the history of th^s Alkali union to see how, by this method, an industry may be cleared out of several districts alto- gether, to the obvious disadvantage of the workers and traders in these districts. It has been sometimes said by American writ- ers that it is the free-trade principles of Britons that lead them to comment so severely on the trust system, but free trade has not prevented the development of a form of the system here — a de- velopment which has presented some very striking examples within quite recent months. The very essence of all these combines is' monopoly. Now monopoly is an ugly word, but it is not necessarily a bad thing. Monopoly in practical economics is not absolute ab- sorption by individuals or associations of individuals. It is, rather, the antithesis of competition. An American economist has, not unhappily, provided a definition of modern monoply as substantial unity of action on the part of persons engaged in some particular kind of business" which gives practical control over prices. That control, of course, is obtained by concentration and economization in production and distribution. And one of the greatest powers the monopolists under the trust and combine systems possess is that of underbidding. They can stave off competitors by undersell- ing, but this very power induces the prudential policy of staving off competition by keeping prices at a moderate level. When all is' said and done, however, one is constrained to perceive that trusts and combines have not abolished overproduction or prevented in- dustrial crises. And, with whatever good features they may be accredited, we must remember that, if impelled by greed and un- scrupulousness, such organizations must in time involve very serious dangers to the Commonwealth. Is it safe to trust human nature with the opportunity and the means to wax fat and kick at the expense of the community? * The impression that seems to exist here that, somehow or other, these "combinations" in Great Britain differ in some of their essentials, aims, objects, and workings from trusts in America, is erroneous. If there be any difference it is merely in degree rather than in kind. Trusts in this country have thus far met with no opposition either in legislation or public opinion. Consequently, they have not been called upon in self-defense to exercise those more disagreeable qualities which are attributed to them by aggressive enemies. The question of trusts has never figured in politics (few commercial, economic, or financial ques- tions do in this country), hence no accusations of official favorit- ism to gain political advantage are made. However, one has but to go through the country and note the tall chimney stacks stand- ing here and there, idle and alone, from which the rest of the works have been moved or razed, to understand that the com- bination has reduced output or confined operations to narrower limits . Extract from Speech of General Garfield. July 2, 1873. "What is likely to be the effect of railway and other similar combinations upon our community and our political institutions? Is it true, as asserted by the British writer quoted above, that the State must soon recapture and control the railroads, or be captured and subjugated by them? Or do the phenomena we are witnessing indicate that general breaking up of the social and political order of modern nations so confidently predicted by a class of philosophers whose opinions have hitherto made but little impression on the public mind? That you may not neglect this broader view of the question, I will quote some sentences written by Charles Fourier, sixty-six years ago — nearly a quarter of a century before the fire of the first steam locomotive was lighted. After tracing the course of civilization through its several phases 190 TRUSTS AND INDUSTRIAL COM HI NATIONS. of development, and declaring that it was then (1808) past the middle Of its third phase, ami moving towards its own destruction, be said : "Civilization is tending towards the fourth phase, by the in- - fiuence of joint stock corporations, which, under the cover of cer- tain legal privileges, dictate terms and conditions to labor, and arbitrarily exclude from it whomever they please. These corpora- tions contain the germ of a vast feudal coalition, which is destined soon to invade the whole industrial and financial system, and give birth to a commercial feudalism. * * * These corporations will become dangerous and lead to new outbreaks' and convulsions only by being extended to the whole commercial and industrial system. The event is not far distant, and will be brought about all the more easily from the fact that it is not apprehended. * * * Extremes meet; and the greater the extent to which anarchial competition is carried, the nearer is the approach to the reign of universal monopoly, which is the opposite excess. It is the fate of civilization to be always balancing between extremes. Circum- stances axe tending toward the organization of the commercial classes into federal companies, or affiliated monopolies, which, oper- ating in conjunction with the great landed interest, will reduce the middle and laboring classes to a state of commercial vassalage, and by the influence of combined action will become master of the productive industry of entire nations. The small operators will be forced indirectly to dispose of their products according to the wishes of these monopolies; they will become mere agents for the coalition. We shall thus see the reappearance of feudalism in an inverse order, founded on mercantile leagues, and answering to the baronial leagues .of the middle ages. Everything is concurring to produce this result. * * * We are marching with rapid strides toward a commercial feudalism, and to the fourth phase of civili- zation." "These declarations read something like prophecy, so far as they relate to the effects of combined corporations. New mechan- ical forces have hastened the development of corporations since Fourier w T rote. We need not take alarm at his prophecy of the speedy decay of civilization; but the analogy between the in- dustrial condition of society at the present time and the feudalism of the middle ages is both striking and instructive. In the dark- ness and chaos of that period, the feudal system was the first important step towards the organization of modern nations. Powerful chiefs and barons intrenched themselves in castles, and in return for submission and service gave to their vassals rude protection and ruder laws. But as the feudal chiefs grew in power and wealth, they became the oppressors of their people, taxed and robbed them at will, and finally, in their arrogance, defied the kings and emperors of the mediaeval states. From their castles, planted on the great thoroughfares, they practiced the most capricious extortions on commerce and travel, and thus gave to modern language the phrase 'to levy black mail.' The consolidation of our great industrial and commercial companies, the power they wield, and the relations they sustain to the States and to the industry of the people, do not fall far short of Fourier's definition of commercial or industrial feudalism. The modern barons, more powerful than their military prototypes, own our vast highways, and levy tribute at will upon all our vast industries. And, as the old feudalism was finally controlled and subordinated only by the combined efforts of the kings and the people of the free cities and towns, so our modern feudalism can be subordinated to the public good only by the great body of the people acting through their governments by wise and just laws. "My theme does not include, nor will this occasion permit, the discussion of methods by which this great work of adjustment may be accomplished. But I refuse to believe that the genius and energy that have developed these new and tremendous forces, will fail to make them, not the masters, but the faithful servants of society. It will be a disgrace to our age and to us if we do not discover some method by which the public functions of these or- ganizations may be brought into full subordination to the public, and that too without violence, and without unjust interference with the rights of private individuals. It will be unworthy of our age and of us, if we make the discussion of this subject a mere warfare against men. For in these great industrial enter- prises have been, and still are, engaged some of the noblest and worthiest men of our time. It is the system, its tendencies and its dangers, which society itself has produced, that we are now to confront. And these industries must not be crippled, but pro- moted. The evils complained of are mainly of our own making. TRUSTS AND INDUSTRIAL COMBINATIONS. 191 States and communities have willingly and thoughtlessly con- ferred these great powers upon railways, and they must seek to rectify their own errors without injury to the industries they have encouraged. * * * "It depends upon the wisdom, the culture, the self-control of our people, to determine how wisely and how well this question shall be settled. But that it will be solved, and solved in the interest of liberty and justice, I do not doubt. And its solution will open the way to a solution of a whole chapter of similar questions that relate to the conflict between capital and labor. The gloomy views of Socialistic writers on this question would have more force, if the dangers here discussed had grown up in spite of our efforts to prevent them. But the fact is they have grown up by our help, while we were unconscious of the fact that they were dangers." DEMOCRATIC RECORD ON TRUSTS. [Address of Hon. Leslie M. Shaw Before the Young Men's Repub- lican Club, Providence, R. L] Hon. Leslie M. Shaw, Secretary of the Treasury, before the Young Men's Republican Club, Providence, R. I., Wednesday evening, March 23, 1904, said in part: "No sooner was' the result of the merger case announced than the opposition inaugurated widely varying and inconsistent tac- tics to rob the Adminstration of the fruits of its victory. Some demanded the institution of similar suits against every large busi- ness and producing enterprise and every consolidation of railroad interests, whether of competing systems or of continuous' lines. The most amusing effort to avoid a comparison of Republican and Democratic administrations, to the great advantage of the former, appears in a recent interview by ex-President Cleveland. He does not claim to have recommended any anti-trust legislation during either of his administrations. He does not claim that any anti-trust legislation was passed during either of his administra- tions. He does' not claim credit for any litigation ever instituted to suppress any trust or combination during either of his adminis- trations. He simply seeks to explain why nothing was done, and he places the responsibility therefor upon the courts and the Con- stitution and upon the fact that the Northern Securities Company was not organized during his administration. "I am very glad that the ex-President has again commenced to take notice, notwithstanding the McKelway letter.^ Eight years is a long time to remain in mourning. But now that he has volun- tarily entered the lists and invited comparisons, he can not com- plain if comparisons be made. "Mr. Cleveland was first inaugurated President March 4, 1885.' Neither in his inaugural address nor in any message does' he men- tion the subject of trusts until immediately preceding the election of 18S8. In his last message preceding that campaign he refers to the existence of 'combinations frequently called trusts,' and closes with this sage conclusion: " 'The people can hardly hope for any consideration in the operation of thes'e selfish schemes.' V'He recommends no relief and suggests no remedy. Neverthe- less the Congress to which this comprehensive statement of fact was submitted, a majority of the Members' of which belonged to his school of political thought, appointed a commission to investi- gate the subject. The purpose of the commission was to con- vince the people that their interests were not being neglected, at least during the campaign, and that if Mr. Cleveland was re- elected some remedial legislation would follow. To that end this commission held meetings from time to time throughout the cam- paign. Mr. Cleveland was not re-elected, however, but when Congress reconvened, in a paragraph of five lines, he refers to the subject of trusts, and closes with this sad and terrifying an- nouncement: 'Corporations, which should be the carefully re- strained creatures of the law and the servants of the people, are fast becoming the people's masters.' But he recommends no relief and suggests no possible way of escape. "Two days before the inauguration of President Harrison the commission to which I have referred made its report, setting forth what evidently appeared to the commission as a most deplorable condition. " 'Your committee respectfully report that the number of com- binations and trusts formed and forming in this country is', as your Committee has ascertained, very large, and affects a large por- tion of the important manufacturing and industrial interests of the country. They do not report any list of these combinations, for the reason that new ones' are constantly forming and old ones are constantly extending their relations so as to cover new branches of business and invade new territories.' "Their words of encouragement which follow must be read in the light of the fact that two days later a Republican Congress elected some months before, was to convene. Listen! " 'Your committee further report that owing to present differ- ences of opinion between the members of your committee, they 193 TRUSTS AND JM)I STK1A1. COMBINATIONS. limit this report to submitting to the careful consideration of subsequent Congresses the tacts shown by the testimony taken before the committee.' "Both the President and the committee acknowledges the exis- tence of harmful trusts and combinations, but neither holds forth to the people any ray of hope except at the hands of those who were about to fill their seats. "The Republican Congress was' not long Inactive. The very first bill introduced in the Senate of the Fifty-first Congress was John Sherman's Anti-Trust bill, Senate File No. 1. It passed both Houses and received the signature of Benjamin Harrison. "The passage of this act was followed by several suits for its' enforcement and several decisions by the Supreme Coure were secured, declaring it constitutional and applying it to various con- ditions. Then, on March 4, 1893, President Cleveland was again in- augurated, and in his Inaugural address he refers to trusts, saying: " 'These aggregations and combinations frequently constitute conspiracies against the interests of the people, and in all their phases they are unnatural and opposed to our American sense of fairness. To the extent that they can be reached and restrained by Federal power the General Government should relieve our cit- izens from their interference and exactions.' "He suggests no modification of the Sherman act, and recom- mends nothing in its place, but in harmony with the teachings of State sovereignty statesmanship, of which he always had been, and therefore always will be, a diligent student, he suggests that it is' very doubtful whether the Federal Government has any jurisdiction in the premises. "That was in his inaugural address. He does not again refer to the subject of trusts in message or proclamation until December, 1896, after the election of William McKinley, when he can throw the responsibility upon another. In this, his last message, he de- nounces combinations of every description in language as intem- perate and inflammatory as was ever employed by his party's more recent candidate for the Presidency. He says: " 'Their tendency is to crush out individual independence and to hinder and prevent the free use of human faculties and the full development of human character.' "He then discouraged Federal legislation by saying: " 'The fact must be recognized, however, that all Federal legis- lation on this subject may fall short of its purpose because of the complex character of our governmental system, which, while making the Federal authority supreme in its' sphere, has carefully limited that sphere by meets and bounds that cannot be trans- gressed. The decision of our highest ourt on this precise question renders It quite doubtful whether the evils of trusts and monop- olies can be adequately treated through Federal action unless they seek, directly and purposely, to include in their objects transporta- tion or intercourse between States or between the United States and foreign countries.' "This, so far as the record shows, is his last utterance, official or otherwise, on the subject of trusts, until he explains, in his re- cent interview, the reason why nothing was done during either of "his administrations. While the platform on which he was elected • the second time promised much in the way of anti-trust legislation, nothing was done except to include in the tariff act of 1894 a pro- vision rendering 'null and void any combination, conspiracy, trust, agreement, or contract between two or more persons or corpora- tions engaged in importing articles from any foreign cuntry into the United States intended to operate in restraint of trade or to increase the market price of any imported article or any manufac- ture into which imported articles have entered.' Their sole legislation was against combinations of importers, with intent to put up the price of imported goods. In no way, shape, or form did they seek to prohibit a combination of American manu- facturers, producers, or transportation companies. It is needless to say that no effort has been or ever will be made to enforce this act, for it is directed against an imaginary evil. Importers may represent foreign trusts, but they do not combine in this country to increase the price of their imported wares. It was' intended to please the people and I see no reason to presume that any existing or contemplated trust was scared thereby. "And now I want to refer to the language of Mr. Cleveland's explanation for the sad neglect of his administration as* set forth in his authorized interview. He says: " 'The question of the Government taking legal action against the so-called trusts was given much consideration during my last administration, from 1893 to 1897. I recall that I examined closely the law and received reports from Mr. Olney, who was then Attorney-General. I was most anxious to have something done, but we were blocked by decisions of the Supreme Court, which at that time tied our hands. * * * The decisions of the Supreme Court, as pointed out in my message, restricted our action against trusts unless they were engaged in interstate transportation. There was a distinct difference drawn between railroads and pure- ly producing combinations. It could not be said that the sugar trust, or the beef trust, or the Standard Oil Company was directly engaged in interstate transportation.' "I think Mr. Cleveland has overlooked the fact that Attorney- General Knox has at this time an injunction in full force against seven corporations, one copartnership, and twenty-three individ- uals' engaged in the production and transportation of meats and meat products, restraining them, as the opinion shows, from re- quiring their purchasing agents to refrain from bidding against TRUSTS AND INDUSTRIAL COMBINATIONS. 193 each other when making purchases; from bidding up the price of live stock for a few days to induce large shipments, and then ceasing to bid so as to obtain live stock at prices less than it would bring in the regular way; from agreeing between them- selves upon prices to be adopted by all; from restricting the quan- tities of meat to be shipped; from requiring their agents to im- pose uniform charges for cartage, and from making agreements with transportation companies for rebates and other discrimination rates'. "Of course, this action is based upon the allegation admitted in the demurrer, that these packing concerns are engaged not only in the production of articles entering into interstate commerce, but that the concerns are themselves engaged in interstate com- merce. Admittedly, the Federal Government has no jurisdiction to restrain combinations between individuals or corporations, ex- cept such as is derived under the provision of the Constitution, giving Congress control of interstate and foreign commerce. Thus, what Mr. Cleveland just last week said can not be done is an ac- complished fact, and the action was' brought under the Sherman act, a Republican measure, promised in a Republican platform, passed by a Republican Congress, signed by a Republican Presi- dent, and enforced by a little giant under the direction of the present Republican President. And while the case has been ap- pealed, it stands and holds and will remain effective until re- versed. "Nor is this all, nor the most astonishing feature of Mr. Cleve- land's interview. In the closing paragraph he takes no small pains' to explain why nothing was done during his administration, and by so doing endorses, in the most emphatic language, what has been done by his successors. Without admitting the 1 suffi- ciency of his explanation, it is quite gratifying to have so distin- guished a person unqualifiedly approve the institution, the prose- cution, and the result of the merger case. Listen to the explana- tion he gives for his own inactivity: " 'There was then no opportunity to take any such action as this merger suit. The case did not present itself. If contracts existed among these business combinations for the restraint of trade, they were kept secret and no evidence offered itself on which to act. At that time this merger of railroads had not been formed, so that there was no action of this sort to take.' "How unfortunate it is' for so many of us that opportunities never present themselves in our times. Those who lived before us, and those who come after us, have great opportunities. Of all men we are most miserable. And so Mr. Cleveland bewails his' misfortune, in much the same tone, if not in the same language, that Ben King employs: "Jane Jones keeps talkin' to me all the time, An' says you must make it a rule To study your lessons 'nd work hard 'nd learn, An' never be absent from school. Remember the story of Elihu Burritt, An' how he clum up to the top, Got all the knowledge 'at ever he had Down in a blacksmithing shop? Jane Jones she honestly said it was so! Mebby he did — I dunno! O' course what's a-keepin' me 'way from the top, Is' not never havin' no blacksmithing shop. She said "at Columbus was out at the knees When he first thought up his big scheme, An' told all the Spaniards 'nd Italians too, An' all of 'em said 'twas a dream. But Queen Isabella jest listened to him, 'Nd pawned all her jewels o' worth, 'Nd bought him the Santa Maria 'nd said, 'Go hunt up the rest of the earth!' Jane Jones she honestly said it was so! Mebby he did — I dunno! Of course, that may be, but then you must allow, They ain't no land to discover jest now!" WHAT THE MERGER SUIT HAS SAVED* [From the Philadelphia Press, July 16, 1904.] What were the profits threatened by the Northern Securities decision? What is the saving to the country by the instituting of the merger suit and its judicial affirmance? The organization of this corporation was the outgrowth of the attempt by "com- munity of interest" to eliminate competition and add to railroad profits. "Community of interest" in four years added $155,000,- 000 to railroad charges for freight. Last April the Interstate Commerce Commission proved this in a report, to the Senate. In 1887 the Interstate Commerce act, which was the first of the various measures passed for the purpose of preventing combination and destroying competition, began the work of re- 194 TRUSTS AND INDUSTRIAL COMBINATIONS. dueing rates under its Republican Administration, From 1890 until 1899 freight rates steadily decreased. The railroads be- tween 1890 and 1899 increased their tons of freight by one-half, and the sum received for carrying it by less than one-third, or two-sevenths. In other words, freight was being carried cheaper for the public, although more was being moved. The aggregate freight carried in 1890 was 636,541,61^ tons, at a cost of $714,464,277. By 1899 the freight had increased to 959,763,583 tons, while the freight receipts had only risen to $913,737,155. As will be seen, the increase in freight was 323,- 221,964 tons, or 50.9 per cent, and the increase of income $199, 272,878, or 16.4 per cent A better comparative showing could be made, if one wished to force this point, by taking one of the years of extreme depres- sion. The year 1899 was not. In it the railroads were making a fair return on their capital and their business. No one was complaining. The decisions of the United States Supreme Court destroyed traffic agreements. "Community of interests" began. The trunk lines were drawn to closer relations. These had their effect on the railroad systems of the country. All the 186,000 miles which then constituted the railroad mileage of the United States be- came a vast web whose rates responded to the determination of a few great financiers in New York to make the country pay for its transportation. The next step after the "community of interest" was to be the "holding corporations," of which the Northern, Securities Company was the first example. Rates advanced from 1899 to 1903. Aggregate freight tonnage rose to 1,221,475,948 tons, an increase of about one-fourth, but the freight receipts rose still faster. They advanced to $1,318,320,604. This was an increase of nearly one-half. The advance in the cost of freight to the people of the United States w T as $404,583,449, an increase of 44.28 per cent, while total freight tonnage had only increased 261,712,365 tonsi or 27.27 per cent If rates had remained in 1903 as they were in 1899 — and the railroads, as we have already said, were making money in 1899 —stocks were rising and new bonds and shares were selling- shippers instead of paying $405,000,000 more would have paid in addition only $250,000,000. Instead they were taxed an ad ditional $155,000,000. This was the measure of the advance in rates from 1899 to 1903, a measure obtained by ascertaining how much the freight carried in 1903 would have cost the country if it had been carried at the same rate as received in 1899. This advance and this increased tax laid upon tne trade of the country were gained through the "community of interest," and schemes like the Northern Securities Company, which were in- tended to carry a step forward the "community of interest" and still more eliminate competition. The industries and the labor of the country, which had steadily improved from 1897 to 1899 under low rates, went on under a period of enlarging business under higher rates. But the tax was fej.t. It is not possible to make $155,000,000 in a year out of the profits of everybody who uses railroads for freight, as every business does, directly or indirectly, and not have someone feel it. The corporations gained. The shipper lost. When President Roosevelt's Administration attacked the Northern Securities combination it served notice on everybody concerned that this process could go on no longer. The corporations objected. Naturally. Under combination, more or less veiled — within the letter of the law, but against its spirit— they had slowly marked up rates until they were ob- taining $155,000,000 more than in 1899, with every prospect of adding to the tax which they were levying on the country. This was a stake worth fighting for. The corporations and the small group of able financiers who had in four years increased the burden of railroad freight on the country by $155,000,000 had and have no intention of permitting any interference with this plan if they can help it. The real question which lies behind the "trust issue," brought into evidence by the Northern Securities decision, is whether, under President Roosevelt's policy, this increase of freight rates TBUSTS AND INDUSTBIAL COMBINATIONS. 195 shall be stopped, revised and reduced by allowing the play of natural causes through competition, or, as will take place if Judge Parker is elected, the increase in freight rates shall go on by railroads freed from opposition to their "community of interest" and to their consolidation. THE TRUSTS AND THE PROTECTIVE TARIFF. [Hon. William B. Allison, United States Senator, in American In- dustries for December, 1903.] It is contended that the protective policy is the basis of what are known as trust combinations in our country, and that if these are to be crippled or destroyed the most effective weapon is free trade in trust-made goods'; that is to say, that goods produced in other countries of character and quality similar to those produced by a trust in this country shall be placed on the free list. The effect of this, of course, would be to place all imported goods of this character on the free list, whether competitive goods' were made here by a trust combination or by independent factories com- peting with the trust, thus allowing world-wide competition in this class of goods. This plan is impossible of execution, even if otherwise effective, as it would lead to endless contests and conflicts in the custom houses and in the courts on the question of what are trust-made goods and what are goods of like character produced here and also produced abroad. According to the census of 1900 about 12 per cent of manufact- ured articles were made by what we call trusts in this country. That percentage has increased since 1900, but certainly does not now exceed 20 per cent of the total product. But if this proposi- tion were enacted into law those producing the remaining 80 per cent in competition with the trusts would be punished and crippled, and it may be destroyed, through no fault of their own, but by the action of the trusts producing the 20 per cent. If tariff duties are necessary to protect our producers against foreign competition then not only these who are in combination here, but also the independent manufacturer, must suffer alike if the necessary protection is withdrawn. Is it possible to devise a more effective method of destroying the protective system than this proposed insidious method of withdrawing protection from trust-made goods? The basis of this proposal is a false one. The tariff is not the foundation of these combinations, nor does it promote them in any material degree. Whatever their origin it cannot be found in our tariff laws. If it were so found then these combinations would be confined to those manufacturers benefited by the tariff. But it so happens that many of these combinations, and the largest of them, have no relation whatever to the tariff, but have grown up with- out tariff protection and wholly outside of it. The Standard Oil Trust is a conspicuous example of this. There is not now and never has been any duty on its product. As a pre- cautionary measure the Wilson bill of 1894 provided that if any country producing petroleum or its products imposed a duty upon our petroleum or its products, a duty of 40 per centum should be paid on such articles imported from that country, and this pro- vision, not materially modified, was retained in the Dingley law. But it is' of no value, and has no effect upon the trade. Anthracite coal has been continually on the free list under all protective tariffs, and even including the Dingley law, although, by a mistaken definition of anthracite as distinguished from bitum- inous coal, the Treasury Department was led to decide that a cer- tain class of anthracite should pay duty. About 250,000 tons of so- called anthracite were imported between the passage of the Ding- ley law and the repeal of that provision, as compared with a total production of 150,000,000 tons in our own country during the in- tervening time, of which production coal to the value of $12,000,000 was exported to Canada. The impossibility of the small importa- tion having any effect upon the price of anthracite coal in our markets is apparent. Whatever the remedy may be against the anthracite combination in Pennsylvania, the tariff had nothing to do with its origin and progress. It is said there is a beef combination that is able to control prices and limit production because of the tariff. There is a duty upon live cattle imported. The repeal of this duty would help rather than injure this combination. The repeal of the duty on dressed meats would not in the slightest degree affect its control over the market to the extent it now has. There is no place front which dressed meats could be imported in competition with our packers. We export to Canada more cattle and meat products than we import from there. We hear something of a trust in the manufacture of agricul- tural implements. Our country produces' these implements in many places, and they are largely exported to every part of the world, and practically none are imported. The Wilson-Gorman bill put them on the free list, with no effect whatever upon the price at home or abroad. The present duty of 20 per centum is of no value to the manufacturers, and I understand they so regard it, nor does it affect home prices in the slightest degree. The skill in production and the inventive genius of our people as respects this class of manufactures are such that our implements' go the world around. The only complaint made is that France and Germany and other countries in Europe, and the Dominion of Canada, place a 196 TRUSTS AND INDUSTRIAL COMBINATIONS. hlg-h duty upon these articles exported by us, and should Canada especially persist In retaining these duties It will be done at the cost of the farmers of Ca i Canada does not produce these articles to any extent. No industry is more important to our country than that of iron and steel. It has been truthfully stated by somebody that the wealth of a country could be largely measured by its consump- tion of iron and steel products. We produced in the United States in 1880 iron and Bteel products to the value of $660,000,000 in round numbers. Twenty years later we produced in value of these products' in round numbers $1,800,000,000, thus nearly tripling our product in value in twenty years, and if we could carry that product down to 1903 the increase would be still greater. We con- sumed in 1900 nearly as much pig iron as the United Kingdom, Germany, and France combined. These three countries are our principal competitors in the production of iron and steel, and also the principal consumers of these products outside of our country. Although England is a large exporter of iron and steel she also largely imports both. She imported from contiguous European States in 1900 twice as' much steel as she imported to them. No industry has' made such progress as that of iron and steel in our country. We are by far the largest producers in the world, and we are also the largest consumers'. We have for the last few years largely increased our exporta- tion of iron and steel, and it seems to me that, with our great natural resources in this regard and the competition that will inevitable continue in their production in our own country, we shall in the future still further increase our exportations or iron and steel. Duties on them may require adjustment because of changes in production and consumption. Yet the United States Steel Corporation, which is the largest producer, contributing more than one-half the total product, has substantial competition, which has been increased since the organization of the corporation, and largely increased during the last year. Prices of its products were abnormally increased in 1900, but they are now diminishing and will continue to fall. Effective control of trusts must be had. All parties agree that whatever can be done ought to be done to minirnize and remove as far as' possible the evils which exist because of these combina- tions. But it is plain that the adoption of free trade and the abandonment of the policy of protection is not one of these rem- edies; THE NEW YORK WORLD ON THE MERGER CASE AND THE WORK OF THE PRESIDENT AND ADHINISTRATION WITH REFERENCE THERETO. [From the New York World, Tuesday, March 15, 1904.] The decision of the Supreme Court against the Northern Se- curities merger is an event of vital and far-reaching importance. So clear, so obvious, so important are the issues involved that wonder grows that a final decision in a case of the first magni- tude was not reached until almost fourteen years after the passage of the Sherman act. What is the decision: what the circumstances that led up to it; what its probable effects? The Case. The first railway across the continent was necessarily a monopoly. As each additional line was opened the effort was made to prevent competition. This ettort was particularly active in the Northwest, where the Northern Pacific and the Great Northern Railroads were natural rivals. The Burlington and the Union Pacific were other parallel lines. The Northern Pacific secured control of the Burlington by a stock-conversion deal. To protect their interests the mas- ters of the Union Pacific set out to capture the Northern Pacific, and this led to the great Northern Pacific war and the panic of May 9, 1901. The financiers of Wall street met to restore peace and appor- tion the spoils, and out of their efforts grew the Northern Securi- ties merger, organized in November, 1901, under the laws of New Jersey, for the purpose of holding the stock of the Northern Pa- cific and Great Northern companies, including the control of the Burlington. It was modestly suggested that it might later take in the Chicago, Milwaukee & St. Paul, the Chicago & Northwest- ern, and probably the Chicago Great Western and Wisconsin Central. It was said that the combination was legally unassailable; that all the railroads of the United States might presently be consolidated in the hands of a few great holding companies. This was a menace and a challenge. TRUSTS AND INDUSTRIAL COMBINATIONS. 197 The Law. On March 3, 1902, Attorney-General Knox, urged thereto by President Roosevelt, riled a petition against the combination and its two constituent companies in the United States Circuit Court of Minnesota under the Sherman Anti-Trust act of 1890, which provides: Section 1. Every contract, combination in the form of trust or otherwise, or conspiracy in restraint of trade or commerce, among the several States', or with foreign nations, is hereby declared to be illegal. Every person who shall make any such contract or en- gage in any such combination shall be deemed guilt}' of a misde- meanor, and on conviction thereof shall be punished by a fine not exceeding $5,000, or by imprisonment not exceeding one year, or by both said punishments, in the decision of the court. * * * Section 4. The several circuit courts of the United States are hereby invested with jurisdiction to prevent and restrain viola- tions of this act; and it shall be the duty of the several district- attorneys' of the United States, in their respective districts, under the direction of the Attorney-General, to institute proceedings in equity to prevent and restrain such violations. The Decree. The case was vigorously pushed. One week later the At- torney-General alleged in a bill in equity filed at St. Paul that the Northern Pacific and Great Northern were "the only trans- continental lines of railway extending across the northern tier of States west of the Great Lakes * * * to the Pacific Ocean, and were (previously) engaged in active competition for freight and passenger traffic"; that by the merger the defendants were monopolizing interstate and foreign commerce in violation of the Sherman act, and that the Securities Company "was not or- ganized in good! faith to purchase and pay for" the roads it ac quired, but "solely to incorporate the pooling of stocks of said companies." Mr. Knox added that if this were permitted the act of Con- gress could be set at naught and all the railway systems of the country could be "absorbed, amerged and consolidated, thus placing the public at the absolute mercy of the holding corpora- tion." This view was sustained on April 3 of last year by the United State Circuit Court of Appeals, Justice Thayer saying that Con- gress, after forbidding the "trusts" known at the time of the passage of the law: Evidently anticipating that the combination might be other- wise formed, was careful to declare that a combination in any other form, if in restraint of interstate trade or commerce — that is, if it directly occasioned or effected such restraint — should like- wise be deemed illegal. The Supreme Court: By a majority of five to four in the Supreme Court itself the decree of the Circuit Court is now confirmed. This is final. There is no appeal. . . The decision, written by Justice Harlan, states that, than the holding company, "no scheme or device could certainly more ef- fectively come within the prohibition of the Anti-Trust law." The law is not an interference with the right of the States to charter companies. The authority of Congress is supreme. Sweeping away by broad principles a maze of technicalities, Jus- tice Harlan finds that the merger is "a combination in restraint of interstate and international commerce, and that is enough to bring it under the condemnation of the act." If such a combination was not destroyed— The entire commerce of the immense territory in the northern part of the United States, between the Great Lakes and the Pacific at Puget Sound, will be at the mercy of a single holding corpora- tion, organized in a state distant from the people of that terri- tory. The Effect. Of business interests the decision is conservative, not destruc- tive, not obstructive. Because of it no wheel need cease to turn. No property is destroyed, no right of wealth invaded, no legitimate ambition assailed. The sun will rise and set as before, the rain will fall, the grain will grow as bravely in all that vast region which the 198 TBUSTS AND INDUSTRIAL COMBINATIONS. merger sought to make subject in the important matter of trans- portation to one corporate will. * * * The Supreme Court has proved itself the protector of the rights of the people against trusts, as upon occasion it would prove the protector of the trusts themselves against unfair at- tack. Trusts, like workingmen, are entitled to the protection of the law as long as they remain within and under, not over and against the law. No man of sense expects the destruction of all commercial combinations. The shouting, insincere, hypocritical demagogue who only wishes to get power by denouncing the trusts is perhaps a greater public enemy than the trusts them- selves. The Future. Politically, the effect of the decision can hardly be exagger- ated. It will greatly strengthen President Roosevelt as a candidate. People will love him for the enemies he has made. Mr. Cleve- land lost popularity among the Democratic masses by not en- forcing this law. Mr. Roosevelt will gain by enforcing it. It cannot now be said that the Republican party is owned by the trusts. It cannot now be said that Mr. Roosevelt is con- trolled by them. His prospects of re-election were not small be- fore; they are brighter to-day, and, barring some act of impetu- ous unwisdom on his part before November, brighter they will remain. But in the last analysis it is not the President who has tri- umphed. It is not the court. It is not the law. It is the people — the plain people who elect Presidents and set up courts and through their representatives do ordain the laws. The President did what public opinion called for. The law itself was framed because public opinion demanded it. It is public opinion and the people's will that has triumphed, as in the end it must always triumph, in the court of last resort. Trust Officials as Managers of the Parker Candidacy. [From New York Tribune May 4, 1904.] David B. Hill and August Belmont, in their reorganization of the Democratic State Committee at Albany, last Saturday, seem to have established close relations with the trust officials of New York and New Jersey, and especially with the American Sugar Refining Company. The declaration of the platform adopt- ed by the Albany convention on April 18 in favor of "a reasona- ble revision of the tariff" and free raw material becomes illumi- nating, in view of the election of Cord Meyer to be chairman of the Democratic State Committee and Senator P. H. McCarren to be chairman of the executive committee, which will raise and spend the money during the campaign. Mr. Meyer is a capitalist, and was one of the original stock- holders in the first organization of the sugar trust. He was a member of the firm of Dick & Meyerf with refineries in Brook- lyn, that was swallowed in the sugar trust's first organization. It is to be presumed that Mr. Meyer stn retains his interests in the sugar trust because of the large dividends it has regularly paid. During the great struggle over the sugar schedule in the Wilson bill in the first year of Cleveland's second administration the statement was made that the sugar trust had contributed large sums of money to the Democratic campaign fund of 1892. not only to the national committee but to the State committees of New York and Connecticut, in the expectation of favors yet to come. Mr. Havemeyer practically admitted its truth by re- fusing to testify to specific amounts, but he did testify that he gave the Republicans nothing, because he could see no advan- tage in so doing. It was charged by the Republicans that the sugar trust had received a promise rrom the Democrats that it would have the privilege of writing its own sugar schedule. It was widely pub- lished at the time that Cord Meyer waited upon members of the Cabinet and asked whether the interests of the sugar trust were TRUSTS AND INDUSTRIAL COMBINATIONS. 199 to be looked after. It was also widely published that Mr. Have- meyer himself submitted to Secretary Carlisle the sugar schedule which was taken to the Senate committee and substituted for the schedule in the Wilson bill which the Senate committee had prepared. In the end the sugar trust had its way, and there was a great scandal surrounding the whole negotiation, including the specu- lation in sugar stocks by United States Senators, as disclosed by the investigation, when Mr. Havemeyer, John E. Searles and Elverton R. Chapman were reported to the district attorney for being in contempt of the Senate in refusing to answer questions. Mr. Havemeyer and Mr. Searles were released by the court on the ground that any contributions they may have made to the Democratic campaign fund could not possibly have concerned the election of any of its members, notwithstanding the fact that in 1892 there were elected legislatures which sent Edward Mur- phy, Jr., to the United States Senate from New York and James Smith, Jr., from New Jersey. Senator McCarren, who has become the chairman of the New York Democratic State executive committee, is the champion defender of the sugar trust in public life. In 1897 there was an investigation of the trust question by a joint committee of the New York Senate and Assembly, of which Senator Clarence Lexow was chairman. Senator McCarren was the Democratic member of this committee on the part of the Senate. The man who hy the use of his capital develops a great mine; the man who by the use of his capital builds a great railroad; the man who by the use of his capital, either individually or joined with others like him, does any great legitimate business enterprise, confers a benefit, not a harm, upon the community, and is entitled to be so regarded. He is entitled to the protection of the law, and in return he is to be required himself to obey the law. The law is no respecter of persons. The law is to be administered neither for the rich man as such nor for the poor man as such. It is to be administered for every man, rich or poor, if he is an honest and law-abiding citizen; and it is to be invoked against any man, rich or poor, who violates it. without regard to which end of the social scale he may stand at; without regard to whether his ofl'eii.se takes the form of greed and cunning or the form of physical violence. In either case, if he violates the law, the law is to be invoked against him; and in so invoking it I have the right to challenge the support of all good citizens and to demand the acquiescence of every good man. ,1 hope I will have it; but, once for all, I wish it understood that even if I do not have it I shall enforce the law. — President Roosevelt at Butte, Mont., May 27, 1903. Where possible, it is always better to mediate before the strike begins than to try to arbitrate when the fight is on and both sides have grown stubborn and bitter. — President Roosevelt at Labor Day picnic, Chicago, Sept. 3, 1900. Our average fellow-citizen is a sane and healthy man, who be- lieves in decency and has a -wholesome mind. He therefore feels an equal scorn alike for the man of -wealth guilty of the mean and base spirit of arrogance toward those who are less well off, and for the man of small means -who in his turn either feels or seeks to excite in others the feeling of mean and base envy for those -who are better off. — President Roosevelt at Syracuse, N. Y., Sept. 7, 1903. The duties of peace are with us always; those of war are but occasional; and -with a nation as with a man, the -worthiness of life depends upon the -way in -which the everyday duties are done. The home duties are the vital duties. — President Roosevelt at Sher- man statue unveling, Oct. 15, 1903. Above all the administration of the government, the enforce- ment of the laws, must be fair and honest. The laws are not to be administered either in the interest of the poor man or the interest of the rich man. They are simply to be administered Justly.— President Roosevelt at Charleston, S. C, April 9, 1902. 200 LABOR, WAGES, AND PRICES. LABOR, WAGES, AND PRICES. LABOR CONDITIONS UNDER REPUBLICAN AND DEMOCRATIC ADMINIS- TUAI'IONS. The only way in which a fair idea may be obtained of the actual conditions of labor at any time is by careful, impartial In- vestigation. This fact was recognized when the United States Government and the governments of most of the different states of the Union and of the countries of Europe established bureaus of labor statistics. The United States Bureau of Labor in its bulletin for July, L804j ((/) published the results of an extensive investigation into the wage conditions in leading industries throughout the country during the years 1890 to 1903. To obtain this information special agents of the Bureau of Labor were sent to representative estab- lishments which have existed during that entire period to copy directly from the pay rolls the figures showing the number of persons employed, the average wages paid, and the hours worked per week. This investigation was the most comprehensive of its kind ever undertaken by any government. As no figures were used unless obtained from establishments which could furnish all the information for each year of the period, the results are comparable in ercry detail, and as they have been taken directly from the payrolls of the establishedments they are believed to be entirely trustworthy. The following tables compiled from the above mentioned July bulletin, show in actual and relative figures the average number of employees, the average wages per hour, and the average num- ber of hours worked per week from 1890 to 1903, for each of 13 leading occupations. It must be remembered that the figures are for identical establishments, the number of which is given at the head of each table. To make the study of the table easier the Bureau of Labor computed a relative number to accompany each actual number. 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 average 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 blacksmiths) appears the number 576, which was the average number employed during the ten years from 1890 to 1899 in the 166 identical establishments. 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, showing the number of employees in 1890, is given the relative number 99.5, indicating that in 1890 the number of employees in the 166 establishments was 99.5 per cent of the average number employed during the ten-year period from 1890 to 1899. The other relative figures may be used in a similar manner. Blacksmiths in 166 identical establishments. [Averag-e 1890-1899-100.0.] Employees. Wages per hour. Hours per week. Year. Actual No. Rela- tive No. Actual. Rela- tive. Actual No. Rela- tive No. Av. 1890-99 576 573 579 583 586 510 541 548 541 635 665 695 753 802 818 100.0 99.5 100.5 101.2 101.7 88.5 93.9 95.1 93.9 110.2 115.5 120.7 130.7 139.2 142.0 $0.2639 .2677 .2681 .2672 .2677 .2611 .2602 .2643 .2604 .2587 .2637 .2685 .2757 .2844 .2962 100.0 101.4 101.6 101.3 101.4 98.9 98.6 100.2 98.7 98.0 99.9 101.7 104.5 107.8 112.2 59.09 59.41 59.20 59.37 59.03 58.68 59.18 58.93 58.96 59.20 58.98 58.87 57.78 57.17 56.65 100.0 1890 100.5 1891 100.2 1892 100.5 1893 99.9 1894 99.3 1895 100.2 1896 99.7 1897 99.8 1898 100.2 1899 99.8 1900 99.6 1901 97.8 1902 96.8 1903 95.9 a The bi-monthly bulletins of the lished for free distribution and can be the bureau. Bureau of Labor are pub- obtained on application to LABOR, WAGES, AND PRICES. 201 Boilermakers in 97 identical establishments. [Average 1890-1899-100.0.] Employees. Wages per hour. Hours per week. Year. Actual No. Rela- tive No. Actual Rela- tive. Actual No. Rela- tive No. Av. 1890-99 1263 1336 1291 1327 1280 1105 1136 1236 1197 1354 1369 1477 ' 1585 1624 1700 100.0 105.8 102.2 105.1 101.3 87.5 89.9 97.9 94.8 107.2 108.4 116.9 125.5 ' 128.6 134.6 $0.2609 .2594 .2577 .2585 .2583 .2614 .2629 .2626 .2607 .2617 .2654 .2773 .2794 .2800 .2848 100.0 99.4 98.8 99.1 99.0 100.2 100.8 100.7 99.9 100.3 101.7 106.3 107.1 107.3 109.2 58.55 59.25 59.23 58.88 58.39 58.83 58.47 58.02 58.11 58.30 58.06 57.36 56.82 56.33 56.24 100.0 1890 1891 1892 101.2 101.2 100.6 1893 99.7 1894 1895 100.5 99.9 1896 1897 1898 1899 99.1 99.2 99.6 99.2 1900 1901 1902 1903 98.0 97.0 96.2 96.1 Bricklayers in 212 identical establishments. [Average 1890-1899-100.0.] Av. 1890-99 1890 1891 1892, 1893 1894 1895 1896 1897 1898 1899 1900, • 1901 1902 4355 100.0 4422 101.5 4892 112.3 4967 114.1 4535 104.1 4055 93.1 3841 88.2 3998 91.8 4010 92.1 4150 95.3 4675 107.3 4576 105.1 5142 118.1 4781 109.8 5064 116.3 $0.4387 $100.0 51.57 .4316 98.4 53.22 .4365 99.5 52.80 .4431 101.0 52.19 .4436 101.1 51.63 .4325 98.6 51.96 .4367 99.5 51.56 .4337 98.9 51.50 .4361 99.4 51.11 .4331 98.7 50.47 .4597 104.8 49.24 .4672 106.5 49.32 .4912 112.0 48.62 .5313 121.1 48.27 .5471 124.7 47.83 Carpenters in 221 identical establishments. [Average 1890-1899-100.0.] Av. 1890-99 1890 1891 1892 1893 1894 1895 1896 1897 1898 1899 1900 1901 1902 1903 5655 100.0 5923 104.7 6231 1102 6461 114.3 5528 97.8 5049 89.3 5021 88.8 5413 95.7 5403 95.5 5402 95.5 6120 108.2 6336 112.0 6660 117.8 6906 122.1 6580 116.4 $0. 2751 2713 2730 2825 2744 .2740 .2748 .2790 .3190 .3403 .3594 100.0 98.6 99.2 102.7 99.7 97.9 97.9 101.4 103.2 110.8 116.0 123.7 130.6 54.85 55.94 55.56 55.12 55.22 55.27 55.05 54.67 54.20 54.02 53.42 51.86 50.74 49.70 49.41 Compositors in 91 identical establishments. [Average 1890-1899-100.0.] Av. 1890-99 1890 1891 1892 1893 1894 1895 1896 1897 1898 1899 1900 1901 1902 1148 100.0 $0.3939 100.0 52.53 1508 131.4 .3980 101.0 53.15 1530 133.3 .3997 101.5 52.62 1494 130.1 .4013 101.9 52.58 1327 115.6 .3933 99.8 53.13 1055 91.9 .3796 96.4 52.75 915 79.7 .3827 97.2 52.73 883 76.9 .3897 98.9 52.58 928 80.8 .3925 99.6 52.47 898 78.2 .3934 99.9 52.06 944 82.2 .4086 103.7 51.26 969 84.4 .4071 103.4 51.09 959 83.5 .4252 107.9 50.37 954 83.1 .4352 110.5 49.96 1009 87.9 .4467 113.4 49.81 a The decrease in the number of compositors employed is due largely to the creation of the new occupation "Linotype Operators" upon the introduction of the linotype. 202 LABOR, WAGES, AND PRICES. Hodcarriers in 250 identical establishments. [Averagre 1890-1899-100.0.] Year. Av. 1890-99 1890 1891 1892 1893 1894 1895 1896 1897 1898 1899 1900 1901 1902 1903 Employees. Wages per hour. Hours per week. Actual No. Rela- tive No. Actual. Rela- tive. Actual No. Rela- tive No. 4242 100.0 $0.2329 100.0 51.60 100.0 4.W7 102.0 .2259 97.0 52.78 102.3 46*4 109.5 .2248 96.5 52.54 101.8 4894 115.4 .2314 99.4 51.81 100.4 4455 105.0 .2325 99.8 51.64 100.1 3698 87.2 J303 98.9 52.03 100.8 3844 90.6 .2320 99.6 51.53 99.9 3959 93.3 .2335 100.3 51.45 99.7 3996 94.2 .2322 99.7 51.42 99.7 3920 92.4 .2343 100.6 51.01 98.9 4685 110.4 .2518 108.1 49.79 96.5 4417 104.1 .2498 107.3 49.79 96.5 5097 120.2 .2546 109.3 49.35 95.6 5062 119.3 .2676 114.9 48.56 94.1 5242 123.6 .2863 122.9 47.98 93.0 Ironmoldcrs in 183 identical establishments. [Average 1890-1899-100.0.] Av. 1890-99 1890 1891 1892 1893 1894 1895 1896 1897 1898 1899 1900 1901 1902 2974 100.0 $0.2526 100.0 59.31 2962 99.6 .2540 100.6 59.51 2952 99.3 .2565 101.5 59.60 3032 102.0 .2548 100.9 59.49 3181 107.0 .2557 101.2 59.18 2519 84.7 .2472 97.9 59.10 2781 93.5 .2476 98.0 59.29 2909 97.8 .2507 99.2 59.24 2732 91.9 .2525 100.0 59.17 3234 108.7 .2503 99.1 59.34 3439 115.6 .2568 101.7 59.14 3790 127.4 .2694 106.7 59.07 3793 127.5 .2739 108.4 58.47 3968 133.4 .2894 114.6 57.65 42x8 141.8 .3036 120.2 56.80 Laborers in 1^6 identical establishments. [Average 1890-1899-100.0.] Av. 1890-99 1890 1891 1892 1893 1894 1895 1896 1897 1898 1899 1900 1901 1902 1903 4460 100.0 $0.1467 100.0 58.84 5118 114.8 .1507 102.7 59.02 4861 109.0 .1511 103.0 59.02 4812 107.9 .1519 103.5 59.02 4516 101.3 .1493 101.8 58.80 4128 92.6 .1419 96.7 58.76 3796 85.1 .1440 98.2 58.88 4018 90.1 .1415 96.5 58.92 4000 89.7 .1445 98.5 58.80 4524 101.4 .1466 99.9 58.44 4822 108.1 .1457 99.3 58.71 5275 118.3 .1461 99.6 58.27 4648 104.2 .1585 108.0 57.98 5317 119.2 .1644 112.1 56.66 5082 113.9 .1676 114.2 56.13 Machinists in 218 identical establishments. [Average 1890-1899-100.0.] Av. 1890-99 1890 1891 1892 1893 1894 1895 1896 1897 1898 1899 1900 1901 1902 1903 5414 100.0 $0.2404 100.0 59.12 5302 97.9 .2413 100.4 59.52 5414 100.0 .2435 101.3 59.47 5409 99.9 .2459 102.3 59.24 5677 104.9 .2450 101.9 59.03 4339 80.1 .2347 97.6 59.07 4917 90.8 .2347 97.6 59.08 5176 95.6 .2397 99.7 59.01 5059 93.4 .2397 99.7 58.96 6058 111.9 .2377 98.9 59.11 6793 125.5 .2417 100.5 58.72 7088 130.9 .2485 103.4 58.56 7646 141.2 .2555 106.3 57.37 8221 151.8 .2646 110.1 56.56 8576 158.4 .2709 112.7 56.12 LABOR, WAGES, AND PRICES. 203 Painters in 203 identical establishments. [Average 1890-1899-100.0.] Employees. Wages per hour. Hours per week. Year. Actual No. Rela- tive No. Actual Rela- tive. Actual No. Rela- tive No. Av. 1890-99 3676 3541 3708 3877 3666 3450 3460 3648 3737 3723 3953 4089 ■4284 4254 4021 100.0 96.3 100.9 105.5 99.7 93.9 94.1 99.2 101.7 101.3 107.5 111.2 116.5 115.7 109.4 $0.2763 .2680 .2712 .2747 .2795 .2737 .2720 .2742 .2778 .2827* .2892 .3054 .3170 .3303 .3450 100.0 97.0 98.2 99.4 101.2 •99.1 98.4 99.2 100.5 102.3 104.7 110.5 114.7 119.5 124.9 53.82 55.23 54.86 54.43 53.86 54.01 53.87 53.61 53.28 52.79 52.27 50.91 49.85 49.27 48.89 100.0 1890 102.6 1891 101.9 1892 101.1 1893 100.1 1894 1895 100.4 100.1 1896 99.6 1897 99.0 1898 98.1 1899 97.1 1900 94.6 1901 92.6 1902 91.5 1903 90.8 Plumbers in 221 identical establishments. [Average 1890-1899-100.0.] Av. 1890-99 1898. 1899. 1900. 1901. 1902. 1903. 1380 1368 1384 1427 1377 1303 1301 1365 1367 1443 1466 1523 1633 1627 1595 100.0 $0.3550 100.0 53.23 99.1 .3464 97.6 54.33 100.3 .3488 98.3 54.09 103.4 .3511 98.9 53.86 99.8 .3552 100.1 53.36 94.4 .3515 99.0 53.28 94.3 .3546 99.9 53.08 98.9 .3505 98.7 52.86 99.1 .3598 101.4 52.67 104.6 .3638 102.5 52.53 106.2 .3684 103.8 52.28 110.4 .3811 107.4 51.40 118.3 .3935 110.8 50.77 117.9 .4122 116.1 49.52 115.6 .4371 123.1 48.97 Stonecutters (granite) in 12 identical establishments. [Average 1890-1899-100.0.] 1890 1891 1892 1893 1894 1895 1896 1897 1898 1899 1900 1901 775 100.0 $0.3628 100.0 52.71 938 121.0 .3730 102.8 52.73 880 113.5 .3803 104.8 52.54 882 113.8 .3750 103.4 52.70 778 100.4 .3618 99.7 53.12 705 91.0 .3593 99.0 52.84 685 88.4 .3611 99.5 52.67 709 91.5 .3590 99.0 52.77 678 87.5 .3524 97.1 52.99 698 90.1 .3467 95.6 53.04 798 103.0 .3594 99.1 51.70 901 116.3 .3923 108.1 50.20 852 109.9 .3868 106.6 49.96 856 110.5 .3938 108.5 49.67 900 116.1 .4225 116.5 48.67 Masons (stone) in 115 identical establishments. [Average 1890-1899-100.0.] kv. 1890-99 1891. 1892. 1893. 1894. 1895 1896 1897 1898 1899 1900 1901 886 100.0 $0.3617 100.0 53.83 947 106.9 .3722 102.9 54.54 1021 115.2 .3732 103.2 54.51 984 111.1 .3673 101.5 54.49 898 101.4 .3644 100.7 54.17 799 90.2 .3440 95.1 54.34 798 90.1 .3485 96.4 54.05 828 93.5 .3547 98.1 53.97 796 89.8 .3628 100.3 53.05 932 105.2 .3581 99.0 52.43 860 97.1 .3719 102.8 52.73 935 105.5 .3788 104.7 51.89 927 104.6 .4007 110.8 51.23 954 107.7 .4304 119.0 50.19 1073 121.1 .4486 124.0 49.54 204 LABOR, WAGES, AND PRICES. The following tables show the percentage of increase or de crease in the number of employees, average wages per hour ant average hours worked per week in the 13 leading occupations iu 1903, compared with each preceding year from 1890 to 1892. [The figures in this table give under each year the per cent of increase or decrease in wages per hour (indicated by + and — ) which the 1903 figures show as compared with the year speci- fied. For example, under the year 1898 opposite blacksmiths ap- pears + 14.5; this shows that the wages of blacksmiths were 14.5 per cent higher in 1903 than in 1898. Under the year 1895 opposite carpenters appears + 33.5; this shows that the wages of carpenters were 33.5 per cent higher in 1903 than in 1895 etc etc.] ' '' •5 o IS ^& !■§ £1 to nj ■ft V. o +++++++++++++ +++++++++++++ +++++++++++++ eoCO©«DC0t--*03co(N(Miro^H cDoqooiqN$->«sQfoirtt~iMco ooJ5D^iw5da>T-<'w©'o6cdco GO L a 54, to §« ■3 to ■5 a, to ©> ©t > ;C5t>-OOcqeO'«*«in©,-i +++ I +++ | ++ | | + -*©OOT» O! CD CO r* t COlf5t^«5CO-*©>Ol>CD(M0005 05t^?o-^-*(riiritt)ioaJ©cdcd -VCOS^CJ^CO'J'C^5D*l>— r-^ff5 +++++++++++++ WOMOM^NOS-^WIN©' +++++++++++++ 'uooseo-too^r-icocoso- "+++ I ++++++++ «D00^©©t-«OlO'-»rat~00t>- ++++ 1 ++++++++ eOT-i©oom<— -^?ocD©t~oo© © 00 9* ph C>t t^ 05 i6 00 05 CO rA &i Tt* EM CO CO lO i-H ++++ I ++++++++ 00££ to to 2i ©J ©>© 5*. 5a x> *- s> © © Q, to §• r« © t- to § GO •*■ $: " o © © to a 00 i 05(M05«oc»50iioosoioeooo^o dddocjrt'HddHdHN I I I I I I I I I I I I I 00(OeO'-i»0>NMM01lO!0 I I I I I I I I I I I I I oooot-in«oot-«ino^o II I I I I I I I I I I I I I I I I I I II I I I I ■*co»dQd-*id-^T}iid»rit>«do6 I I I I I I I I I I I I I I I I I I II I I I I I I I I I I I I I I II I I I I II I II II I I I I I I I Ml I I I I I I I I I I I II II I II I I I I I I II I I II II I I I I Ml I I I I Ml I (Oy-ti-tt-ttT-nooit^Gimost- •^krio^cDOJTiiTjiidcJ^oic- i iTTi ii ii iT i i 2 : :»«« gas efts gsg-sS Si These figures show that during the administrations of Presi- dents McKinley and Roosevelt there were more persons em ployed in industrial establishments, and higher wages were paid |to employees than during the period of Democratic rule. Taking up each occupation separately for discussion, we find jthat there were 49.3 per cent, more blacksmiths employed in the teame 166 establishments in 1903 than in 1896, and that the average wages per hour of these blacksmiths were 12.1 per cent, higher in 1903 than in 1896. There were 37.5 per cent, more boiler makers employed in the Same 97 establishments in 1903 than in 1896, and the average tvages per hour of these boiler makers were 8.5 per cent, higher. There were 26.7 per cent more bricklayers employed in the same 212 establishments in 1896 than in 1903, and these brick- layers received an average of 26.1 per cent more wages per hour. There were 21.6 per cent more carpenters in the same 227 Fstablishments in 1903 than in 1896, and they received 31.2 per ent more wages per hour. 206 LABOR, WAGES, AND PRICES. There were 14.S per cent more compositors in the same 91 establishments in 1903 than in 1896, and they received an average of 14.G per cent more wages. The same 250 establishments employed 32.4 per cent more hod] carriers in 1903 than in 1890, and paid them an average of 22.9 per cent more wages per hour. The same 183 establishments employed 45 per cent more iron molders in 1903 than in 1890, and paid them 21.1 per cent more) wages per hour. The same 146 establishments employed 26.5 per cent more day laborers in 1903 than in 1896, and gave them 18.4 per cent more wages per hour. The same 218 establishments employed 65.7 per cent more ma- chinists in 1903 than in 1896, and paid them 13 per cent more wages per hour. The same 115 establishments employed 29.6 per cent more stone masons in 1903 than in 1896, and paid them 26.5 per cent more wages per hour. The same 203 establishments employed 10.2 per cent more painters in 1903 than in 1896, and gave them 25.8 per cent more wages per hour. The same 221 establishments employed 16.8 per cent more plumbers in 1903 than in 1896, and paid them 24.7 per cent more wages per hour. The same 72 establishments employed 26.9 per cent more stone cutters in 1903 than in 1896, and gave them 17.7 per cen more wages per hour. If these figures are representative of labor conditions generally for the occupations given, and there is no reason why they should not be, they show the following interesting facts: Employment. For every 100 blacksmiths employed in 1896 there were 149 blacksmiths employed in 1903; for every 100 boiler makers em ployed in 1896 there were 137 employed in 1903 ; for every 10(1 bricklayers employed in 1896 there were 127 employed in 1903 a for every 100 carpenters employed in 1896 there were 122 emA ployed in 1903 ; for every 100 compositors employed in 1896 there were 114 employed in 1903; for every 100 hod carriers employed in 1896 there were 132 employed in 1893; for every 100 iron molders employed in 1896 there were 145 employed in 1903 ; for every 100 day laborers employed in 1896 there were 126 employed in 1903; for every 100 machinists employed in 1896 there were 166 employed in 1903 ; for every 100 stone masons employed in 1896 there were 130 employed in 1903 ; for every 100 house painters employed in 1896 there were 110 employed in 1903 ; for every 100 plumbers employed in 1896 there were 117 employed in 1903 ; for every 100 stone cutters employed in 1896 there were 127 em-| ployed in 1903. Wages. For every dollar paid to a blacksmith in 1896, $1.12 werej paid in 1903 for the same amount of labor; for every dollar paid to a boiler maker in 1896, $1.08% were paid in 1903; for every dollar paid to a bricklayer in 1896, $1.26 were paid in 1903; for every dollar paid to a carpenter in 1896, $1.31 were paid in 1903; for every dollar paid to a compositor in 1896, $1.14% were paid in 1903; for every dollar paid to a hod-carrier in 1896, $1.22% were paid in 1903; for every dollar paid to an iron molder in 1896, $1.21 were paid in 1903; for every dollar paid to a laborer in 1896, $1.18% were paid in 1903; for every dollar paid to a machinist in 1896, $1.13 were paid in 1903; for every dollar paid to a stone mason in 1896, $1.26% were paid in 1903; for every dollar paid to a painter in 1896, $1.26 were paid in 1903; for every dollar paid to a plumber in 1896, $1.24% were paid in 1903; for every dollar paid to a stone cutter in 1896, $1.17% were paid in 1903. The 13 occupations for which figures have been shown in de- tail 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 sec- tions of the country. Figures for 519 such occupations are given in detail in the Bulletin of the Bureau of Labor from which the LABOR, WAGES, AND PRICES. 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 for each industry, thus giving an opportunity to study the figures for each industry as a whole. The summaries for a few important industries are here reproduced, namely, bar iron, boots and shoes, cigars/ cotton goods, and lumber. The explanation given of the preceding tables applies, to these tables as well. BAB IBON INDUSTBY. Employees. Hours per week. Wages per hour. Per cent of in- Per cent of in- P^r cent of crease (+) or crease (+) or increase (+) Year. Relative decrease (— ) in 1903 as Relative number. decrease (— ) in 1903 as Relative. or decrease (— ) in 1903 as number. compared compared compared with year with year with year specified. specified. specified. 1890 . . . 99.4 - 9.9 102.7 —4.2 110.3 -23.8 1891 . . . 98.4 -11.0 101.6 —3.1 105.0 -30.0 1892 . . . 98.3 -11.1 101.8 —3.3 100.0 -36.5 1893 . . . 106.9 - 3.1 101.4 —3.0 95.7 -42.6 1894 . . . 100.2 -9.0 101.3 —2.9 90.1 —51.5 1895 . . . 103.7 - 5.3 100.7 —2.3 91.6 --49.0 1896... 93.9 -16.3 101.0 —2.6 99.3 -37.5 1897 . . . 97.7 -11.8 97.1 +1.3 98.0 -39.3 1898 . . . 99.7 - 9.5 96.6 +1.9 96.3 -41.7 1899 . . . 101.6 - 7.5 95.9 +2.6 +1.1 113.7 -20.1 1900... 108.9 - .3 97.3 118.2 +15 100 7 - 8.4 98.4 119.7 - -14 1902 .. . 104.1 h 4.9 98.8 — .4 132.9 + 2.7 1903 109.2 98.4 136.5 CIGAB INDUSTBY. BOOT AND SHOE INDUSTBY. 1890 . . . 77.2 j -68.9 100.2 —3.6 97.9 -18.1 1891 . . . 80.0 - -63.0 100.8 —4.2 96.2 -20.2 1892 . . . 86.4 - -50.9 100.5 —3.9 98.2 -17.7 1893 . . . 97.1 - -34.3 100.1 —3.5 100.5 -15.0 1894 . . . 99.0 -31.7 99.9 —3.3 99.5 -16.2 1895 . . . 103.2 -26.4 99.9 —3.3 100.6 -14.9 1896 . . . 110.5 -18.0 99.8 —3.2 100.7 -14.8 1897 . . . 111.3 -17.2 99.7 —3.1 102.5 -12.8 1898 . . . 111.3 - -17.2 99.6 —3.0 101.8 - -13.6 1899 . . . 118.4 -10.1 99,5 —2.9 102.3 - f-13.0 f- 9.8 1900... 123.2 - 5.8 99.0 —2.4 105.3 - 1901 .. . 127.7 - -2.1 99.2 —2.6 105.2 - H 9.9 -6.3 1902 . . . 124.0 - - 5.2 98.0 —1.4 108.8 - 1903 . . . 130.4 96.6 115.6 1890... 76.0 j -56.3 100.1 -1.3 100.3 hl6.6 1891 ... 85.2 -39.4 99.6 -1.8 100.6 -16.2 1892... 90.3 -31.6 99.2 -2.2 99.6 17.4 1893 . . . 100.5 -18.2 99.7 -1.7 100.0 -16.9 1894 . . . 103.5 -14.8 99.9 -1.5 99.0 -18.1 1895 . . . 109.9 - 8.1 99.8 -1.6 97.2 +20.3 +18.6 1896 . . . 95.2 -24.8 100.4 -1.0 98.6 1897 . . . 107.4 -10.6 100.0 -1.4 102.4 -14.2 1898 . . . 107.7 -10.3 100.3 -1.1 101.1 -15.6 1899 . . . 119.9 — .9 101.0 - .4 101.3 -15.4 1900... 93.9 +26.5 99.8 -1.6 100.8 -16.0 1901 .. . 106.1 +11.9 100.6 - .8 112.5 - 3.9 1902... 116.0 + 2.4 100.9 - .5 110.0 - -6.3 1903 .. 118.8 101.4 116.9 COTTON GOODS INDUSTBY. 1890 . . . 87.8 -22.1 99.9 —0.9 102.8 [-19.7 1891 . . . 98.3 -9.1 100.7 —1.7 98.9 -24.5 1892 . . . 95.8 -11.9 101.2 —2.2 100.2 -22.9 1893 . . . 98.2 - 9.2 99.9 — .9 103.5- -18.9 1894 . . . 96.1 -11.6 98.6 + .4 96.8 -27.2 4895 . . . 94.8 -13.1 100.0 —1.0 96.9 -27.0 1896 . . . 98.8 - 8.5 99.5 — .5 104.8 -17.5 1897 . . . 104.6 - 2.5 99.4 — .4 101.1 L-21. 8 1898 . . . 112.5 — 4.7 100.3 —1.3 99.9 -23.2 1899 . . . 112.1 — 4.4 100.4 —1.4 97.7 -26.0 1900... 115.5 — 7.2 100.2 —1.2 109.1 -12.8 1901 ... 109.0 — 1.7 100.0 —1.0 110.3 -11.6 1902... 117.2 — 8.5 99.2 — .2 116.2 - 5.9 1903 . . . 107J3 99.0 123.1 -ZUK LABOR, WAGES, AND PRICES. 1ATMHKU INDUSTRY. Employees. Hours per w<< k. Wajres per hour. Per cent of in- Per cent of in- Per cent of Year. crease (+) or crease (+) or increase (+ ) Relative decrease (— ) Relative number. decrease (— ) or decrease Dumber. to, 1903 as in 1903 as Relative. (— ) in 1 903 as compared compared compared witii year with year with year speciiieil. speciiied. specified. 1890.... 94.2 f-32.6 100.4 —2.1 102.8 -10.2 1891.... 95.7 r30.5 100.2 —1.9 102.4 -10.6 1892.... 96.1 -30.0 100.2 —1.9 102.1 -11.0 1893.... 95.6 -30.6 99.7 —1.4 101.7 -11.4 1894.... 95.3 -31.1 99.7 —1.4 97.8 -15.8 1895.... 96.3 -29.7 100.1 —1.8 97.2 -16.6 1896.... • 99,1 -26.0 100.1 —1.8 97.0 -16.8 1897.... 105.0 -19.0 99.9 —1.6 97.4 -16.3 1898.... 107.6 -16.1 99.8 —1.5 99.4 -14.0 1899.... 111.3 -12.2 99.8 -1.5 102.2 -10.9 1900.... 115.5 - 8.1 99.5 —1.2 104.4 -8.5 1901.... 118.7 - 5.2 99.1 — .8 106.5 -6.4 1902.... 123.6 - 1.1 98.4 109.5 h 3.5 1903.... 124.9 98.3 113.3 Taken all in all the preceding figures show that, as far as wages and employment are concerned, this country has never seen such an era of prosperity as that which was inaugurated when industry was enabled to adjust itself to the stable con- servative protective policy of the present administration. Never in modern times has employment been as secure and general, and never in the history of the country have wages been as high as during the past few years. WAGES AND COST OF LIVING. Comparison of Day Wages with Retail Prices In 1896 and 1903 — A Day's Wages Will Buy More of the Requirements of Dally Life Now Than in 1896 — Labor Bureau Figures. The claim is often made that while wages have advanced they have not kept pace with the increased cost of living. The ab- solute falsity of this assertion is readily shown by a study of retail prices of articles of daily requirement, as published in the United States Bureau of Labor Bulletin No. 53, in connection with the wages paid in leading occupations. This bulletin was issued in July, 1904, and thus contains the very latest available data on the subject. It is there stated that this is the first extended in- vestigation covering a long series of years that has been made into retail prices in this country. All previous collections of price data covering a period of years have dealt solely with wholesale prices which, of course, do not represent accurately or even approximately the cost to the small consumer. The figures collected by the Bureau of Labor were secured by its agents di- rectly from the books of account of over 800 retail merchants whose patrons largely belong to the class of small consum- ers. Covering actual sales in all parts of • the country the figures may, therefore, be considered thoroughly representative as well as trustworthy. A comparative study of these figures and those for wages just given shows that the increased wages of bricklayers, carpenters, hod carriers, iron molders, laborers, stone masons, house painters, plumbers, stone cutters, etc., have not only kept pace with food prices, but that they have risen much more, and that a day's wages of workingmen in these occupations can purchase much more food in 1003 than in 1896. Even if it were not so, and if wages and prices had in- creased in the same proportion it must not be forgotten that with such higher wages and prices the difference between the income and expenditures is greater in actual dollars and cents. For instance, if a workingman earned $700 per year in 1896 and expended $600 he would save $100. If in 1903 both the wages and prices had increased 15 per cent., his wages would then be $805, and his expenditures $690, and his sayings, in consequence, would be $115. As a matter of fact, LABOR, WAGES, AND PRICES. 209 however, wage rates in the leading occupations have increased more than prices, and not only have the wage rates increased, but those employed have had much more constant employment in 1903 than in 1896. In the Bureau of Labor report the average price of each com- modity as a whole could not be stated in dollars and cents because the articles for which retail prices were shown vary more or less as to kind and quality in different localities. The aver- ages have, therefore, been computed on a percentage repre- sented as 100, or the base, and the prices from year to year being indicated by relative figures. These relative figures consist of a series of percentages show- ing the per cent the price in each year was of the average price for the ten-year period from 1890 to 1899. This average price for the ten-year period was selected as the base because it repre- sented the average conditions more nearly than the price in any one year which might be selected as a base for all articles. The following table shows the relative price of the 30 principal articles of food considered in the Bureau of Labor Bulletin. In order to miake clear the manner of using the relative figures we take, for example, the column showing the figures for "Beef, fresh roasts and stews"; it is seen that the price in 1890 was 99.5 per cent of the average price for the period from 1890 to 1899. In 1891 the price was exactly the average price for the ten-year period— that is, 100.0. The lowest point reached was in 1894, when the price was 98.3 per cent of the average price for the ten-year period. The highest point reached was in 1902, when it stood at 118.6, or 18.6 per cent higher than the average price for the base period, 1890 to 1899. In 1903 a consid- erable decline from the price in 1902 is seen, the relative price being 113.1, or 13.1 per cent higher than the price for the base period. The table follows: Relative retail prices of the principal articles of food, 1890 to 1903. [Average 1890-1899-100.0.] Year. Ap- ples, evapo- rated. Beans, dry. Beef, fresh, roasts and stews. Beef, fresh, steaks. Beef, salt. Bread, wheat. But- ter. Cheese. Chick- ens. Cof- fee. 1890. . . . 109.0 103.3 99.5 98.8 97.5 100.3 99.2 98.8 101.3 105.4 1891.... 110.3 106.2" 100.0 99.4 98.3 100.3 106.4 100.3 104.0 105.2 1892.... 99.3 102.4 99.6 99.3 99.5 100.3 106.8 101.5 103.8 103.8 1893.... 107.0 105.0 99.0 99.6 100.3 100.1 109.9 101.8 104.2 104.8 1894. . . . 105.8 102.8 98.3 98.2 98.9 99.9 101.7 101.6 98.6 103.3 1895.... 97.4 100.5 98.6 99.1 99.6 99.7 97.0 99.2 98.4 101.7 1896.... 88.6 92.7 99.1 99.5 99.8 99.9 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 1898.... 95.4 95.9 101.7 102.0 102.1 99.8 95.1 97.5 96.8 91.1 1899. . . . 99.5 99.7 103.7 103.9 103.2 99.6 97.7 102.4 101.8 90.5 1900.... 95.2 110.0 106.5 106.4 103.7 99.7 101.4 103.9 100.8 91.1 1901.... 96.8 113.9 110.7 111.0 106.1 99.4 103.2 103.3 103.0 90.7 1902. . . . 104.4 116.8 118.6 118.5 116.0 99.4 111.5 107.3 113.2 89.6 1903. . . . 100.8 118.1 113.1 112.9 108.8 100.2 110.8 109.4 118.5 89.3 Year. Corn meal. Eggs. 100.6 Fish. fresh. Fish, salt. Flour wheat. Lard. Milk, fresh. Mo- lasses. Mutton and lamb. Pork, fresh. 1890.... 100.0 99.3 100.7 109.7 98.2 100.5 104.7 100.7 97.0 1891.... 109.7 106.9 99.6 101.7 112.5 99.8 100.5 101.7 100.6 98.7 1892.... 105.2 106.8 100.1 102.2 105.1 103.6 100.6 101.2 101.0 100.5 1893. . . . 103.1 108.1 100.1 103.4 96.1 117.9 100.4 100.6 99.9 107.0 1894.... 102.2 96.3 100.4 101.5 88.7 106.9 100.2 100.3 97.8 101.8 1895.... 100.8 99.3 99.8 98.9 89.0 100.1 100.0 99.0 98.7 99.7 1896.... 95.0 92.8 100.2 97.5 92.7 92.5 99.9 98.7 98.7 97.4 1897.... 93.7 91.4. 99.8 95.2 104.3 89.8 99.7 97.7 99.6 97.6 1898.... 95.0 96.2 100.5 98.8 107.4 93.9 99.4 97.9 100.4 98.6 1899.... 95.1 101.1 100.2 100.2 94.6 97.1 98.9 98.2 102.6 101.7 1900.... 97.4 99.9 100.4 99.1 94.3 104.4 99.9 102.2 105.6 107.7 1901.... 107.1 105.7 101.4 100.9 94.4 118.1 101.1 101.3 109.0 117.9 1902.... 118.8 J 19.1 105.0 102.8 94.9 134.3 103.3 102.1 114.7 128.3 1903.... 120.7 125.3 107.3 108.4 101.2 126.7 105.8 103.8 112.6 127.0 210 LABOR, WAGES, AND PRICES. Pork. Pork. salt. Pork. Pota- Vin- egar. Year. salt dry or salt toes, Prunes Rice. Sugar. Tea. Veal. bacon. pick- ham. Irish. eted. 1890.... 95.8 95.3 98.7 109.3 116.8 101.3 118.6 100.0 98.8 102.9 1891.... 96.6 98.9 99.3 116.6 11«.5 102.5 102.7 100.4 99.6 105.5 1892. . . . 99.1 100.5 101.9 95.7 1M.5 101.3 96.2 100.2 100.0 102.7 1893.... '109.0 108.7 109.3 112.3 115.6 98.4 101.5 100.1 100.0 99.5 1894.... 103.6 103.4 101.9 102.6 100.9 99.0 93.8 98.7 98.7 99.8 1895.... 99.4 99.2 98.8 91.8 94.2 98.8 91.8 98.5 98.5 98.9 1896.... 96.7 95.5 97.6 77.0 86.8 96.7 96.6 98.8 99.5 97.2 1897.... 97.4 97.3 98.2 93.0 84.3 97.9 95.7 98.5 99.9 97.4 1898.... 100.2 99.1 95.1 105.4 86.3 101.7 101.3 100.7 101.2 97.9 1899.... 102.9 101.8 99.2 96.1 85.1 102.4 101.7 104.4 103.7 98.3 1900.... 109.7 107.7 105.3 93.5 83.0 102.4 104.9 105.5 104.9 98.5 1901.... 121.0 117.5 110.2 116.8 82.6 103.5 103.0 106.7 108.8 98.9 1602.... 135.6 132.5 119.4 117.0 83.4 103.5 96.0 107.2 115.2 99.5 1903.... 139.8 129.0 121.3 114.8 80.2 103.9 96.1 106.0 114.9 99.1 The following table shows the relative prices of food, consid- ered as a whole, for each year. The prices are "weighted" ac- cording to the importance of each article in family consumption, the degree of importance having been determined by a special inquiry covering over 2,500 families. In the computation of a "simple average" for all food the same importance is given to each article, flour, for example, being given the same weight as cheese. To overcome the unfairness of such an average, the exact quantity of each commodity of food used was ascertained and each commodity was then given its proper importance as an article of consumption- The result is the "weighted" average given. It should be stated in this connection, however, that the weighted average as shown does not differ materially from the simple average. The last line of the table shows the per cent of increase or decrease (indicated by or — ) in 1903 as com- pared with each of the preceding years. Relative retail prices of all food each year from 1890 to 1903 and per cent of increase or decrease in 1900 as compared with pre- vious years. [Average 1890-1899-100.0.] Year. Relative prices of all foods. Per cent of increase (+) or decrease ( ) in 1903 as comp a r e d with years specified. 1890 1891 1892 1893 1894 1895 1896 1897 1898 1899 1900 1901 1902 102.4 103.8 101.9 104.4 99.7 97.8 95.5 96.3 98.7 100.1 101.1 105.2 110.9 110.3 ■ 7.7 6.3 8.2 5.7 10.6 12.8 15.5 14.5 11.8 10.9 9.1 4.8 The method of using both the relative figures and the per- centages has already been explained. The important facts dis- closed in this table are that food was lower in 1903 than in 1902, and that food was only 15.5 per cent higher in 1903 than in 1896— the year of lowest prices. The changes in the cost of liv- ing, as shown by the Bulletin of the Bureau of Labor, relate to food alone, representing 42.54 per cent of all family expenditures in the 2,567 families furnishing information. With respect to the remaining expenditures of the average family the Bulletin states as follows: Of the remaining articles, constituting 57.46 per cent of the family expenditure, certain ones 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 principal and interest of mortgage, taxes, property and life insurance, labor and other organization fees, religion, charity, books and newspapers, amuse- LABOB, WAGES, AND PBICES. 211 ments and vacations, intoxicating liquors, and sickness 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 available, 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 per 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 the wholesale prices of 25 articles of food in 1903, as compared with 1896, was 27.9 per cent, while the advance in the retail prices of 25 similar articles or groups of articles, as shown by the results of this investigation, was but 15.3 per cent. An examination of the relative wholesale prices of these classes of articles in Bulletin No. 51, giving them their proper weight ac- cording to family consumption, leads to the conclusion that the retail prices of these articles as a whole in 1903 could have been but little, if at all, above the level indicated by food. If all classes of family expenditures as above be taken into consideration, it is apparently a safe and conservative conclusion, therefore, that the increase in the cost of living, as a whole, in 1903, when compared with the year of lowest prices, ivas less than 15.5 per cent, the figure given above as the increase in the cost of food as shown by this investigation. It is shown on the succeed- ing pages that the increase in wages in 1903 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 18.8 per cent. A comparison of the table showing prices with that on page 204 entitled "Per cent of increase or decrease in the average wages per hour in 13 leading occupations in 1903 compared with each preceding year discloses the following interesting facts: Bricklayers' wages advanced 26.1 per cent from 1896 to 1903 ; carpenters' wages, 31.2 per cent; hod carriers' wages, 22.6 per cent ; iron molders' wages, 21.1 per cent ; laborers' wages, 18.4 per cent; stone masons' wages, 26.5 per cent; painters' wages, 25.8 per cent; plumbers' wages, 24.7 per cent; stone cutters' wages, 17.7 per cent, etc.— while during the same period the retail prices of fresh beef roasts increased 14.1 per cent; beef steaks, 13.5 per cent; salt beef, 9 per cent; bread, 0.03 per cent; butter, 19.5 per cent; cheese, 11.7 per cent; fresh fish, 7.1 per cent; salt fish, 11.2 per cent; wheat flour 9.2 per cent; fresh milk, 5.9 per cent; molasses, 5.2 per cent; mutton and lamb, 14.1 per cent; rice, 7.4 per cent; tea, 7.3 per cent; veal, 15.5 per cent; and coffee has decreased 10.3 per cent and sugar 0.5 per cent. All food of ordinary con- sumption has increased an average of 15.5 per cent. Pork prod- ucts, which are included in this general average, advanced from 24.3 to 44.6 per cent, owing to the high price of hogs, the whole- sale price of which advanced 75.22 per cent from 1896 to 1903, as is shown in the chapter on the exchange value of farm products beginning page 216. By measuring the purchasing power of a day's wages of these various articles of food in 1896 and in 1903 a very interesting result is obtained. In the case of a bricklayer it shows that for a day's wages in 1903, as compared with a day's wages in 1896, he could buy 10.4 per cent more beet roasts or stews ; 11.1 per cent more beef steak; 15.6 per cent more salt beef; 25.7 per cent more wheat bread ; 5.5 per cent more butter ; 12.8 per cent more cheese ; 40.6 per cent more coffee ; 17.7 per cent more fresh fish ; 13.4 per cent more salt fish ; 15.5 per cent more wheat flour ; 19.1 per cent more fresh milk ; 19.9 per cent more molasses ; 10.5 per cent more lamb and mutton ; 17.3 per cent more rice ; 26.7 per cent more sugar ; 17.5 per cent more tea ; 9.1 per cent more veal, and 8.9 per cent more of the 30 food commodities taken collectively. A carpenter could buy for a day's wages in 1903, as compared with 1896, 14.9 per cent more beef roasts or stews ; 15.6 per cent more beef steak ; 20.3 per cent more salt beef ; 30.7 per cent more wheat bread; 9.7 per cent more butter; 17.3 per cent more 213 LABOR, WAGES, AND PRICKS. cheese; 46.2 per cent more coffee; 22.4 per cent more fresh fish; 1T. ( .> per cent more salt fish; 20.1 per cent more wheat flour; 2&8 per cenl more fresh milk; '_• i.<; per cent more molasses; L4.8 per cenl more lamb and mutton; •->•_'.<) per cent more rice; 31.8 per cent more sugar; 22.3 per cent more tea; 13.5 per cent more veal, and 13.3 per cent more of the 30 food commodities taken collectively. A ilay laborer could buy for a day's wages in 1903, as com- pared with 189G, 3.7 per cent more beef roasts or stews; 4.3 per cent more beef steak; 8.5 per cent more salt beef; 18.0 per (tut more wheat bread; 5.9 per cent more cheese; 32.4 per cent more coffee; 10.5 per cent more fresh fish; G.4 per cent more salt fish.; 8.3 per cent more wheat flour; 11.7 per cent more fresh milk; 12.0 per cent more molasses; 3.8 per cent more lamb and mutton; 10.1 per cent more rice; 19.0 per cent more sugar; 10.3 per cent more tea ; 2.5 per cent more veal, and 2.2 per cent more of all the 30 articles of food taken collectively. A painter could buy for a day's wages in 1903, as com- pared with 1896, 10.3 per cent more beef roasts or stews ; 11.0 per cent more beef steak ; 15.4 per cent more salt beef ; 25.5 per cent more wheat bread ; 5.3 per cent more butter ; 12.7 per cent more cheese; 40.3 per cent more coffee; 17.6 per cent more fresh fish; 13.2 per cent more salt fish ; 15.3 per cent more wheat flour ; 18.9 per cent more fresh milk ; 19.7 per cent more molasses ; 10.4 per cent more lamb and mutton; 17.2. per cent more rice; 26.6 per cent more sugar; 17.3 per cent more tea; 9.0 per cent more veal, and 8.7 per cent more of all the 30 articles of food taken as a whole. An iron molder could buy for a day's wages in 1903, as com- pared with 1896, 6.2 per cent more beef roasts or stews; 6.8 per cent more beef steak ; 11.1 per cent more salt beef ; 20.8 per cent more wheat bread ; 1.4 per cent more butter ; 8.4 per' cent more cheese ; 35.1 per cent more coffee ; 13.1 per cent more fresh fish ; 9.0 per cent more salt fish ; 11.0 per cent more wheat flour ; 14.4 per cent more fresh milk ; 15.2 per cent more molasses ; 6.2 per cent more lamb and mutton ; 12.8 per cent more rice ; 21.8 per cent more sugar; 12.9 per cent more tea; 4.9 per cent more veal, and 4.7 per cent more of all the 30 articles of food taken as a whole. A plumber could buy for a day's wages in 1903, as compared with 1896, 9.3 per cent more beef roasts and stews ; 9.9 per cent more beef steaks ; 14.4 per cent more salt beef ; 24.2 per cent more wheat bread; 4.4 per cent more butter; 11.6 per cent more cheese ; 39.1 per cent more coffee ; 16.5 per cent more fresh fish ; 12.2 per cent more salt fish ; 14.6 per cent more wheat flour ; 17.6 per cent more fresh milk ; 18.6 per cent more molasses ; 9.3 per cent more lamb and mutton ; 16.1 per cent more rice ; 25.4 per cent more sugar ; 16.2 per cent more tea ; 8.0 per cent more veal ; 7.6 per cent more of all the 30 articles of food taken collectively. A stone cutter could buy for a day's wages in 1903, as com- pared with 1896, 3.1 per cent more beef roasts and stews ; 3.7 per cent more beef steaks; 7.9 per cent more salt beef; 17.3 per cent more wheat bread; 5.3 per cent more cheese; 31.2 per cent more coffee; 9.9 per cent more fresh fish; 5.8 per cent more salt fish ; 7.8 per cent more wheat flour ; 11.1 per cent more fresh milk ; 11.9 per cent more molasses ; 3.2 per cent more lamb and mutton; 9.5 per cent more rice; 18.3 per cent more sugar; 9.7 per cent more tea; 1.9 per cent more veal; 1.7 per cent more of all the 30 articles of food taken collectively. A stone mason could buy for a day's wages in 1903, as com- pared with 1896, 10.7 per cent more beef roasts and stews; 11.4 per cent more beef steaks; 15.9 per cent more salt beef; 26 per cent more wheat bread; 5.8 per cent more butter; 13.1 per cent more cheese ; 40.9 per cent more coffee ; 18.0 per cent more fresh fish ; 13.6 per cent more salt fish ; 15.5 per cent more wheat flour ; 19.3 per cent more fresh milk ; 20.2 per cent more molasses ; 10.8 per cent more lamb and mutton; 17.6 per cent more rice; 27.1 per cent more sugar; 17.8 per cent more tea; 9.5 per cent more veal, and 9.2 per cent more of all the 30 articles of food taken collectively. Similar comparisons could be made with many more occupa- tions, but it is believed that the above, which all relate to leading LABOR, WAGES, AND PRICES. 213 sine 1 well defined occupations, are sufficient to prove the fallacy of the assertion that wages have not kept up with prices since the great industrial depression during the last Democratic adminis- tration. .SUMMARY OP CONCLUSIONS. As a summary of the results of the investigations relative to wages and cost of living the two following tables are given in the Bulletin of the Bureau of Labor. The first shows relative fig- ures while the second shows the increase or decrease in the year 1903 as compared with each preceding year of the period consid- ered: Relative employees, hours per week, wages per hour, weekly earn- ings per employee and for all employees, retail prices of food, and purchasing power of hourly wages and of weekly earnings per employee measured by retail prices of food, 1890-1903. [Average for 1890-1899—100.] Purchasing power measured by Weekly Weekly retail prices of Year. Em- Hours Wages earnings per earnings of all Retail prices food, of— ployees. per per week. hour. em- em- of food. Weekly ployee. ployees. Hourly wages. earnings per em- ployee. 1890... 94.9 100.7 100.3 101.0 95.8 102.4 97.9 98.0 1891 . . . 97.4 100.5 100.2 100.7 98.1 103.8 96.5 97.0 1892 . . . 99.1 100.5 100.8 101.3 100.4 101.9 98.9 99.4 1893... 99.2 100.3 100.9 101.2 100.4 104.4 96.6 96.0 1894... 94.1 99.8 97.9 97.7 91.9 99.7 98.2 98.6 1895... 96.3 100.1 98.3 98.4 94.8 97.8 100.5 100.2 1896... 98.3 99.8 99.7 99.5 97.8 95.5 104.4 104.9 1897... 100.9 99.6 99.6 99.2 100.1 96.3 103.4 103.6 1898... 106.3 99.7 100.3 100.0 106.3 98.7 101.6 101.3 1899... 110.8 99.2 102.0 101.2 112.1 99.5 102.5 101.7 1900... 115.5 98.7 105.5 104.1 120.2 101.1 104.4 103.0 1901... 119.1 98.1 108.0 105.9 126.1 105.2 102.7 100.7 1902... 123.6 97.3 112.3 109.3 135.1 110.9 101.3 98.6 1903... 126.4 96.6 116.3 112.3 141.9 110.3 105.4 101.8 Note. — In explanation of relative figures it should he 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 18£0 to 1899, the latter being presumed to represent normal conditions more accurately than the figures' for any one 3*ear. In the first column, for example, the number of employees in 1890 is shown to have been 94.9 per cent of the average num- ber 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 1903 was 126.4 per cent of the average, or 26.4 per cent, greater than the average for the ten-year period, etc., etc. The following table, which presents the facts in the convenient form of percentages, discloses most important information with reference to conditions in 1903 as compared with the period of industrial depression which reached its lowest depths during the years 1894, 1895, and 1896. First. Employment afforded. — As regards the number of em- ployees engaged in the 519 occupations, covering 67 important industries and 3,429 establishments engaged in the manufactur- ing and mechanic*! industries, it is seen that over one-third more workmen (34-3 per cent) were employed in 1903 than in 1894, and that during the administrations of President McKinley and President Roosevelt the number given employment has steadily and rapidly increased even up to and including the last year of the period, 1903. And even the wonderful increase in 1903 over 1894 as shown above does not mark the extreme limit of the betterment of industrial conditions as regards employment af- forded; for it must be remembered that the 3,429 establishments covered in the investigation of the Bureau of Labor w T ere prac- tically all in operation each year during the entire period and the figures secured therefrom do not reflect conditions in hun- dreds of important establishments which- were closed entirely during the period of depression nor in still other hundreds of new establishments which went into operation after the depression had been relieved and confidence reestablished. Were figures 214 LABOR, WAGES, AND PRICES. Per cent of increase (+) or decrease ( — ) in 190S, as compare with previous years, in employees, hours per week, wages pi hour, weekly earnings per employee and of all employees, retail prices of food, and purchasing power of hourly wages and hf weekly earnings per employee measured by retail prices of food, 1890 to 1998. Per cent of increase (+) or decrease (— ) in 1903 as compared with previous years. Purchasing power measured by Weekly Weekly Retail prices rouiil prices of Year. Em- Hours Wages earn- ings per earn- ings of food, of— ployees. per per of food. week. hour. em- all em- Weekly ployee. ployees. Hourly Wages. earn- ings per em- ployee. Av. 1890-99.. -26.4 —3.4 -16.3 H hl2.3 -41.9 -10.3 +5.4 +1.8 1890.. -33.2 —4.1 -16.0 - 11.2 -48.1 -7.7 +7.7 +3.2 1891.. -29.8 —3.9 -16.1 - 11.5 - -44.6 - 6.3 +9.2 +4.9 1892.. -27.5 —3.9 - -15.4 H -10.9 - -41.3 - 8.2 1+6.6 +2.4 1893.. -27.4 —3.7 - -15.3 - -11.0 - -41.3 - 5.7 -f9.1 +5.1 1894.. -34.3 —3.2 -18.8 J -14.9 _ -54.4 -10.6 +7.3 +3.9 1895.. -31.3 —3.5 - -18.3 - -14.1 - -49.7 -12.8 +4.9 +1.2 1896.. -28.6 —3.2 - -16.6 _ -12.9 - -45.1 -15.5 +1.0 —2.3 1897.. -25.3 —3.0 _ -16.8 13.2 -41.8 -14.5 + 1.9 —1.2 1898.. -18.9 —3.1 -16.0 -12.3 -33.5 -11.8 +3.7 tl 1899.. -14.1 —2.6 -14.0 -11.0 -26.6 -10.9 +2.8 +1.0 1900.. - 9.4 —2.1 -10.2 - - 7.9 -18.1 - 9.1 —1.2 1901.. - 6.1 —1.5 - 7.7 - 6.0 12.5 - 4.8 +2.6 +1.1 +3.2 1902.. h 2.3 — .7 - 3.6 - 2.7 r 5.0 — .5 i +4.0 Note. — The figures in this table give 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 — and — ) whiph the figures for 1903 show as' compared with the year specified. For example, the first column shows that the number of employes in 1903 was 26.4 per cent, greater than the average number in/ the ten-year period, 34.3 per cent greater than the number in 1894, 2.3 per cent greater than the number in 1902, etc., etc. / available showing the thousands of workmen thrbwn into abso- lute idleness by the closing down of factories and mills during Democratic rule and the thousands given employment during Re- publican rule, \he per cent of increase in employees at work in 1903 over the number shown for 1894 would doubtless be doubte that given by the Bureau of Labor for the 3,429 t establishments in continuous operation. Second. Working Hours. — As regards hours of work in the establishments covered, it is seen that almost without a halt the workday has gradually been shortened during \he period. The average hours worked per week in 1903 were than in 1890, 3.5 per cent less than in 1895, 2.1 in 1900, and .7 per cent less than in 1902. T ment of industrial conditions is nowhere better figures which indicate that slowly but surely tie hours of labor are decreasing and a consequently longer time is afforded the workman for rest, recreation, and improvement. 1 per cent less er cent less than e general better- own than in the Third. Hourly Wages. — The table shows quijie conclusively the reduction in wages during the years of depression and the gradual and rapid increase year by year since 1896. It is seen that the hourly wages in 1903 were 16.0 per cent higher 'han in 1890; they were in 1903 18.8 per cent higher than in 1894, \he year of lowest wages; they were 18.3 per cent higher than in J.895, and 16.6 per cent higher than in 1896, etc. It is most interesting to note the steady and strong tendency toward higher wagbs during the last eight years, nor should the fact be overlooked that the wages of 1903, the last, year covered, were higher than in any previous year, being 3.6 per cent higher than the year 1902. The figures do not in any way indicate that a retrograde movement has begun. 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 themselves for a LAB0B, WAGES, AND PBICES. 215 shorter workday, it should be noteu, also that when the decrease in hours per week is taken in connection with the increase in wages the resulting weekly earnings still show a marked increase in 1903 over preceding years. For example, the weekly earnings in 1903 were 14-9 per cent greater than in 1894, Uf.l per cent greater than in 1895, etc., etc. While the increase as shown above is quite considerable, it should be remembered that it does not by any means indicate the conditions as to weekly, monthly, or an- nual earnings in 1903 as compared with the years of depression, inasmuch as the figures given are based on the presumption that each employee worked full time. While figures are not available showing ihe extent to which establishments worked "half time" or "three-quarter time" during the years of depression, or closed down entirely, it is safe to say that were it possible to compare average ueekly, monthly, or yearly earnings in 1903 with those for 1894, 189*, and 1896 the per cent of increase in 1903 over the latter years would be much greater than that shown in the Bulle- tin of the Bureau of Labor, and would reach probably between 25 and 30 per cent. Fifth. Weekly earnings of all employes. — Some impression as to the infuence of conditions of employment on the earnings of wage-workers may -be gained by reference to the column of the table containing the percentages which show the increase (in 1903 over each preceding year of the period) in the weekly earnings of the employees covered by the report. It will be remembered that the report covers 67 industries and that these industries are represented by a total of 519 distinctive occupations in 3,429 estab- lishments—all of which were in operation during each year of the entire periol. If the number of workmen employed each year in the 519 occupations is considered in connection with their weekly earnings, the amount of the weekly pay roll of these workmen for each year of the period is readily obtained. While for reasons before stated the figures given do not mark the extreme decline and advanct in the amount paid out in wages, they are extremely suggestive. It is seen that the per cent of the increase in 1903 over 1894 of the weekly earnings of the workmen employed in the two years mentioned reached as much as 54-4 per cent; the in- crease in 1903 over 1895 reached ^9.7 per cent; the increase in 1903 over 189( reached 45-1 per cent h etc., etc. The figures for the last eight yeats of the period again show the increasing and almost marvelous beterment of conditions during these years and their uninterrupted continuance to the last year of the period. Sixth. Reail prices of food. — As previously indicated, the figures given n this column are stated by the Bureau of Labor to fairly represent not only the trend of cost of living so far as food is concerned, bit also to mark the possible limits of advance and decline in the tost of all articles of family consumption. The re- sults are especally important, as they are derived from the first comprehensive investigation into retail prices covering a long series of years. Heretofore wholesale prices have been used to indicate the traid of cost of living, although it was recognized that they were nore sensitive to conditions than retail prices, that their fluctuation? were considerably greater, and that they could not be used to iidicate even approximately the extent of increase or decrease fron year to year in cost of living. The collection of retail prices whch forms the basis of the figures in the table is, therefore, of great value as indicating with great exactness the cost of living bated on prices actually paid by the small consumer. It is seen that tost of living increased in 1903 over the year of lowest prices, 1&6, not more than 15 M per cent; over 1897, 14-5 per cent; over 1898, 11.8 per cent., etc., etc. It is interesting to note in this connection that the cost of living in 1903 was .5 per cent less than in 1902 and that the decline in 1903 is the first since 1896. It is also important to note that while cost of living de- clined in 1903, the number of workmen employed, the wages per houi, and the earnings per week continued their steady advance. Seventh. Purchasing power of wages. — The last two columns of the table show the percentages representing the purchasing p«wer of wages. The first of the two columns shows the facts for lourly wages, while the second shows those for weekly earnings. 216 LABOR, WAGES, AND PRICES. Considering the retail priced <>f food or cosl of living in connection/ with hourly wages, it is shown thai the purchasing power of hourly wages in t903 was 9.1 per cent greater than in is<).t, ?'.;? per bent r than in t894, '/••' per cent areata- titan in 189$, h.0 pei cent greater than in mo..', etc., etc. in other words, an hour'! wages in t90S would purchase 9.1 per cent more of the com modi ties and. articles entering into the cjbei of living of the workini man's fa mil)/ than irould an hour's iruges in 1898, etc.; etc. Tl last column, which doeta ool present so accurate a figure for rea- sons stated previously in eonneetion with weekly earnings, con- bat, con- has bene- tinns the conclusion justilied by tlie preceding column sidering both irages and cost of living the irorki in/man filed to a measurable degree from the increase in Wages despite the increase in cost of living and shortening of icorking hou WJien it is remembered also Hint the betterment of Industrial conditions has been greater than the figures indicate in some cases as previously explained, that it has extended in manyjdirections not covered by the figures and not even, susceptible of iemonstra- tion by the statistitcal method, and that the savings of the. work- man during a period of high wages, although accompanied by high /trices, is considerably greater than during a period of depression, it st ( ins a safe and conservative conclusion that at no time in the history of this or ang other country has there been Ian era of prosperity so productive of material benefit to both tlm working- man and the employer as the last eight years of Republican rule. retail prices an advance the sale of $151.72 for EXCHANGE VALUE OF FARM PRODUCTS Prices of Raw Materials Compared with Prices of H^anufactured Articles, 1896 and 1903. During the last few years, when prices in generll have ad- vanced, it is interesting to determine in what degiee the pro- ducer of the farm products has been benefited by the/rise. The table which follows has been prepared from official figures published in Bulletin No. 51 of the United States Biueau of Labor and shows the per cent of advance in 1903 as coinpaipd with 1896, the commodities being grouped as in the original /source. The comparisons are between wholesale prices, as in thfe language of the original report "They are more sensitive than and more quickly reflect changes in conditions." Comparing 1903 with 1896, farm products shox of 51.72 per cent, that is for every $100 received frc farm products in 1896 the farmer received in 19* the same quantity. / Food, etc., advanced 27.80 per cent. ; cloths and/clothing, 16.76 per cent ; fuel and lighting, 43.4 per cent, etc. it is seen that the advance in farm products has been from two to four times as great as the advance in any of the other groups, except fuel and light, and even there the advance. has not been learly as great as in farm products. It will likewise be observedjthat the whole- sale prices of food have increased much more fhan the retail prices, which are considered on pages . The purchasing power of farm products in 19$ increased ma- terially over 1896. The same quantity of farm purchase in 1903 18.17 per cent more food th would purchase 29.94 per cent more cloths 5.99 per cent more of the articles included in the lighting; 20.90 per cent more metals and impler cent more lumber and building materials; 24. li drugs and chemicals ; 26.21 per cent more house nrnishing goods ; and 22.07 per cent more of the articles included in the miscel- laneous group. \ This shows that no one has been benefited by the advand? in prices as much as has the farmer; that in 1903 the prick of farm products was 51.72 per cent, or more than o>\e-half greyer than in 1896; that even when the advance in price oj other arti is considered, the purchasing power of farm products in 1903 w when compared with other groups of articles, from 5.99 per ce to 29.94 per cent greater than in 1896. products would n in 1896. It and clothing ; group fuel and ents ; 16.74 per per cent more LABOR, WAGES, AND PRICES. The following table shows the comparisons : 217 Comparative advance in the price of farm products and other groups of commodities, 1903 compared ivith 1896. [Compiled from Bulletin No. 51, United States Bureau of I«abor.] Group. Advance. Purchas- ing power. Per cent. 51.72 27.80 16.76 43.14 25.51 29.98 21.60 20.21 24.29 Per cent. 18.71 29.94 5.99 20.90 16.74 24.78 26.21 22.07 25.66 20.73 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 1903 has been compared with the average price in 1896. In practically every case the raw material ad- vanced more than the finished products. The first table shows that live cattle advanced 19.82 per cent, while fresh beef advanced but 12.38 per cent. With the same weight of live cattle 6.62 per cent more fresh beef could be pur- chased in 1903 than in 1896. Hogs advanced 75.22 per cent and smoked hams 34.86 per cent. With the same weight of live hogs 29.94 per cent\ more ham could be bought, in 1903 than in 1896. Sheep which the farmer sells advanced 25.03 per cent, mutton which the workingman buys advanced 19.06 per cent. With the same weight of sheep 5.2 per cent more mutton could be purchased in 1903 than in 1896. Corn advanced 78.61 per cent, while corn meal advanced but 61.11 per cent. With the same quantity of corn 10.86 per cent more corn meal could be purchased in 1903 than in 1896. Wheat, which the farmer raises, advanced 23.07 per cent, while wheat flour for everybody's use advanced 6.47 per cent. That is, with the same quantity of wheat 15.59 per cent more pour could be purchased in 1903 than in 1896. Raw cotton advanced 41.86 per cent, cotton bags 13.76 per cent, calico declined 4.00 per cent, cotton flannels advanced 13.74 per cent, cotton thread 20.58 per cent, cotton yarns 20.32 per cent, denims 14.16 per cent, drillings 9.68 per cent, ging- hams 15.68 per cent, cotton hosiery declined 0.44 per cent, print cloths advanced 24.64 per cent, sheetings 13.55 per cent, shirt- ings 5.41 per cent, and tickings 8.44 per cent. The average ad- vance for cotton goods being but 12.08 per cent against 41.86 per cent for the raw cotton. With the same quantity of raw cotton 26.59 per cent more manufactured cotton goods could be pur- chased in 1903 than in 1896. Wool shows an advance of 56.23 per cent, blankets (all wool) 23.39 per cent, broadcloths 38.39 per cent, carpets 20.40 per cent, flannels 33.84 per cent, horse blankets (all wool) 29.74 per cent, overcoatings (all wool) 27.69 per cent, shawls 20.09 per cent, suitings 24.15 per cent, underwear (all wool) 8.31 per cent, women's dress goods (all wool) 54.39 per cent, and worsted yarns 61.87 per cent. An average advance for woolen goods of 30.01 per cent, while the raw material — wool — advanced 56.23 per cent. Or with the same quantity of wool 20.14 per cent more manufactured woolen goods could be bought in 1901 than in 1896. The following table shows this information in tabular form : 218 LABOB, WAGES, AND PRICES. Comparative advance in price of certain related commodities, 1903 compared with 1896. [Compiled from Bulletin No. 51, United States Bureau of Labor.] Cattle 19.82 Fresh beef 12.38 Hogs 75.22 Hams 34.86 Sheep 25.03 Mutton 19.06 Corn 78.61 Corn meal > 61.11 Wheat 23.07 Wheat flour 6.47 Cotton— Upland Middling 41.86 Cotton bags 13.76 Calico a 4.00 Cotton flannels 13.74 Cotton thread 20.58 Cotton yarns 20.32 Denims 14.16 Drillings 9.68 Ginghams 15.68 Hosiery ( cotton ) a 0.44 Print cloths 24.64 Sheetings 13.55 Shirtings 5.41 Tickings 8.44 Average for cotton goods 12.08 Wool 56.23 Blankets (all wool) 23.29 Broadcloths 38.39 Carpets 20.40 Flannels 33.84 Horse blankets (all wool) 29.74 Overcoatings (all wool) 27.69 Shawls 20.09 Suitings 24.15 Underwear (all wool) 8.31 Women's dress goods (all wool) 54.39 Worsted yarns 61.87 • Average for woolen goods 30.01 a Decline. Market Value of Farm Products in 1896 and 1903 When Measured by the Wholesale Prices of Staple Articles. The farmer and stock raiser measures the value of his grain and stock 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 or on the farm. No official retail prices, other than for certain articles of food, have been published for recent years, but the United States Bu- reau of Labor in its bulletin for March, 1904, published wholesale prices of the staple articles in general use. From this publication the following tables have been prepared, showing the value of corn, wheat, oats, cattle, hogs, and dairy butter in 1896 and 1903 when measured by the value of other staple articles which the farmer must buy. While these figures do not represent the actual purchasing power (as all the prices are wholesale), yet the figures shown for the two years, 1896 and 1903, are in practically the same pro- portion as retail prices would show. Ten bushels of corn in 1896 was equal in value to 20.9 pounds of Rio coffee, while in 1903 it was equal to 82.4 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 1903 equal to 99.2 pounds ; in 1896 equal to 49.1 yards of calico, in 1903 to 91.4 yards; in 1896 equal to 54.7 yards of ginghams, in 1903 to 83.7 yards ; in 1896 to 41.5 yards of Indian Head sheetings, in 1903 to 67.6 yards ; in 1896 to 37.1 yards of Fruit of the Loom shirtings, / LABOR, WAGES, AND PRICES. 219 in 1903 to 60.1 yards; in 1896 to 19 bushels of stove coal (anthra- cite), in 1903 to 26.7 bushels; in 1896 to 24.8 gallons of refined petroleum, in 1903 to 33.8 gallons ; in 1896 to 95 pounds of 8-penny cut nails, in 1903 to 210 pounds ; in 1896 to 88 pounds of 8-penny wire nails, in 1903 to 222 pounds. It must be borne in mind that these values are based on the average yearly prices of these ar- ticles. The comparative values of wheat, oats, cattle, hogs, and dairy butter presented in the tables which follow show wonderful in- creases and the exchange values of wheat, oats, corn, cattle, and hogs during the present year are much greater than during 1903. The tables are as follows: Value of 10 bushels of corn in 1896 and 1903 when measured by the wholesale prices of the following staple articles. [Compiled from Bulletin No. 51, United States' Bureau of Labor.] Articles. 1896. 1903 Coffee, Rio, No. 7 pounds Sugar, granulated do . . Tea. Formosa, fine do . . Shoes, men's calf bal. Goodyear welt pairs. Shoes, women's solid grain do . . Calico, Cocheco prints yards Denims, Amoskeag do . . Drillings, brown, Pepperell do . . Gingham's, Amoskeag do . . Hosiery, men's cotton half hose. 20 to 22 oz pairs . Overcoats, chinchilla, cotton warp yards Sheetings, bleached, 10-4, Atlantic do.. Sheetings, brown, 4-4 Indian head do . . Shirtings, bleached. 4-4 Fruit of the Loom do . . Suitings, indigo blue, all wool, 14 oz., Middlesex do . . Tickings, Amoskeag, A. C. A do . . Women's dress goods, cashmere, cotton-warp, 22-inch, Hamilton, 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 do . . Carbonate of lead, (white lead), American, in oil do.. Cement, Portland, American barrels Plate glass, area, 3 to 5 square feet square feet Glassware, tumblers, }$-pint, common 20.9 56.9 10.0 (a) (O 49.1 26.1 45.0 54.7 37 5.9 15.2 41.5 37.1 2.3 25.3 36.3 19.0 24.8 95 88 49.9 1.3 7.6 172 82.4 99.2 20.1 (b) (d) 91.4 40.9 74.4 83.7 71 10.2 21.7 67.6 60.1 3.2 41.7 62.2 26.7 33.8 210 222 74.9 2.3 17.5 313 a 1 pair and 1.8 cents over. c 3 pairs and 3 cents over. b 1 pair and $2.26 over. d 5 pairs and 17 cents' over. Value of 10 bushels of oats in 1896 and 1903 when measured by the wholesale prices of the following staple articles. [Compiled from Bulletin No. 51, United States Bureau of Labor.] Articles. 1896. 1903. Coffee, Rio. No. 7 pounds. Sugar, granulated do Tea, Formosa, fine do Shoes, men's calf bal., Goodyear welt pairs. Shoes, women's solid grain do... Calico, Cocheco prints yards. Denims. Amoskeag — do... Drillings, brown. Pepperell do. . . Ginghams. Amoskeag .• do. . . Hosiery, men's cotton half hose, 20 to 22 ounce pairs . Overcoatings, chinchilla, cotton warp yards. Sheetings, bleached, 10-4, Atlantic do. . . Sheetings, brown, 4-4, Indian head do. . . Shirtings, bleached, 4-4, Fruit of the Loom do Suitings, indigo blue, all wool, 14-ounce, Middlesex do. . . Tickings. Amoskeag, A. C. A do. . . Women's dress goods, cashmere, cotton warp, 22-inch, Hamilton, 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 do Carbonate of lead, (white lead) American, in oil do Cement, Portland, domestic barrels. Plate glass, area, 3 to 5 square feet square feet . Glassware, tumblers, ji pint, common 14.6 39.7 7.0 (a) (c) 34.3 18.2 31.4 38.2 26 4.1 10.6 29.0 25.9 1.6 17.7 25.3 13.3 17.3 34.8 0.9 5.3 120 63.3 76.8 15.4 (b) (d) 70.3 31.4 57.2 64.4 54 7.8 16.7 52.0 46.2 2.5 32.1 47.8 20.6 25.8 161 171 57.6 1.7 13.5 pair. a Lacks 60 cents of price of 1 c 2 pairs and 10 cents over. b 1 pair and $1.19 over. d 3 pairs and 88 cents over. 220 LABOR, WAGES, AND PRICES. Value <>{ 10 bushels of wheat In t§96 and 190$ ifihen measured by ike wholesale prices of the following staple article*. [Compiled from Bulletin No. 51, United States Bureau of Labor.] Articles. Coffee, Rio. No. 7 pounds Sugar, granulated do.. Tea. Formosa, fine do . . Shoes, men's calf bal., Goodyear welt pairs Shoes, women's solid grain do. Calico, Cocheco prints yards Denims. Amoskeag do . . Drillings, brown, Pepperell d< » . . Ginghams, Amoskeag do.. . Hosiery, men's cotton half hose. 20 to 22 oz pairs Overcoatings, chinchilla, cbtton-warp yards Sheetings, bleached, 10-4. Atlantic do . . Sheetings, brown, 4-4. Indian head do . . Shirtings, bleached, 4-4. Fruit of the Loom do.. Suitings, indigo blue, all wool, 14 oz, Middlesex., .do.. Tickings, Amoskeag, A. C. A do . . Women's dress goods, cashmere, cotton-warp, 22-inch, Hamilton 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 do . . Carbonate of lead (white lead) , American, in oil . . do . . Cement. Portland, American barrels Plate glass, area, 3 to 5 square feet square feet Glassware, tumblers, JS-pint common iv.«;. 1903. 52.0 141.2 141.5 170.1 24.8 84.4 (a) (b) (d) (c) 122.2 156.6 64.9 70.1 111.9 127.5 135.9 143.5 92 121 14.7 17.4 37.7 37.2 103.1 115.9 92.1 102.9 5.6 5.5 62.9 71.5 90.2 106.5 47.3 45.8 61.7 57.9 236.1 359.6 219.2 380.5 • 124.0 128.4 3.2 3.9 18.9 30.1 427 537 a 2 pairs and $1.61 over. c 7 pairs and 56 cents' over. b 3 pairs and 85 cents over, d 8 pairs and 80 cents over. Value of cattle (good to extra steers) per 100 pounds in 1896 and 1903 when measured by the ivholesale prices of the following staple articles. [Compiled from Bulletin No. 51, United States Bureau of Labor.] Articles. Coffee, Rio, No. 7 pounds.. Sugar, granulated do — Tea, Formosa, fine do — Shoes, men's calf bal., Goodyear welt pairs.. Shoes, women's solid grain do — Calico, Cocheco prints yards.. Denims, Amoskeag do.. .. Drillings, brown, Pepperell do. . . . Ginghams, Amoskeag do — Hosiery, men's cotton half hose. 20 to 22 oz pairs. . Overcoatings, chinchilla, cotton- warp yards.. Sheetings, bleached. 10-4, Atlantic do.... Sheetings, brown, 4-4 Indian head do — Shirtings, bleached, 4-4 Fruit of the Loom do — Suitings, indigo blue, all wool, 14 oz. Middlesex . . . do — Tickings, Amoskeag, A. C. A. do — Women's dress goods, cashmere, cotton-warp, 22-inch, Hamilton 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 do — Carbonate of lead (white lead), American, in oil.. do — Cement, Portland, American barrels. . Plate glass, area, 3 to 5 square feet square feet . . Glassware, tumblers, M-pint, common a 1 pair and $2.03 over. c 5 pairs and 18 cents over. b 2 pairs and 61 cents over, d 5 pairs and 88 cents over. Above all thing's we should avoid the demagague as a pes- tilence, and take counsel only of reason and right. — Hon. C. W. Fairbanks, at St. Paul, Minn., August 31, 1903. For years the commerce of the world has demanded an isth- mian canal, and recent events give us the assurance that this vast undertaking will be accomplished at an early day under the pro- tection of the American flag. — Hon. C. W. Fairbanks, at St. Paul, Minn., August 31, 1903. LABOR, WAGES, AND PRICES. 221 Value of hogs (heavy) per 100 pounds in 1896 and 1903 when meas- ured by the wholesale prices of the following staple articles. [Compiled from Bulletin No. 51, United States Bureau of Labor.] Articles. 1896. Coffee. Rio, No. 7 pounds. Sugar, granulated do — Tea, Formosa, fine : ... do ... . Shoes, men's calf bal. , Goodyear welt pairs . . Shoes, women's solid grain do Calico, Cocheco prints yards . . Denims, Amoskeag do — Drillings, brown, Pepperell do ... . Ginghams, Amoskeag do — Hosiery, men's cotton half hose, 20 to 22 oz pairs . . Overcoatings, chinchilla, cotton-warp yards . . Sheetings, bleached, 10-4, Atlantic do — Sheetings, brown, 4-4. Indian head do — Shirtings, bleached, 4-4. Fruit of the Loom do — Suitings, indigo blue, all wool, 14 oz. . Middlesex do — Tickings. Amoskeag, A. C. A do — Women's dress goods, cashmere, cotton-warp, 22-inch, Ham- ilton 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 do — Carbonate of lead (white lead), American, in oil do — Cement, Portland, American barrels . . Plate glass, area, 3 to 5 square feet square feet . . Glassware, tumblers, ji-pint, common 27.2 108.4 74.1 130.5 13.0 26.4 (a) (b) (d) (c) 64.0 120.2 34.0 53.7 58.6 97.9 71.1 110.1 48 93.0 7.7 13.4 19.8 28.5 54.0 88.9 48.2 79.0 3.0 4.2 33.0 54.9 47.2 81.7 24.8 35.2 32.3 44.4 124 276 115 292 64.9 98.5 1.7 3.0 9.9 23.1 224 412 1 pair and 96 cents over. 3 pairs and 81 cents over. b 2 pairs' and $1.36 over. d 6 pairs and 73 cents over. Value of 20 pounds of butter (New York State dairy) in 1896 and 1903 when measured by the wholesale prices of the follow- ing staple articles. [Compiled from Bulletin No. 51, United States Bureau of Labor.] Articles. 1896. 1903. Coffee, Rio No. 7 pounds . . 27.0 76.9 do.... 73.5 92.7 Tea, Formosa, fine do.... 12.9 18.7 Shoes, men's calf bal., Goodyear welt pairs . . (a) (b) Shoes, women's solid grain do.... (c) (d) Calico, Cocheco prints yards . . 63.4 85.3 Denims, Amoskeag do.... 33.7 38.1 Drillings, brown. Pepperell do.... 58.1 69.5 Ginghams, Amoskeag do.... 70.6 78.2 Hosiery, men's cotton half hose, 20 to 22 oz pairs . . 48 66 Overcoatings, chinchilla, cotton-warp, C. C. grade yards . . 7.6 9.5 Sheetings, bleached, 10-4, Atlantic do.... 19.6 20.2 Sheetings, brown, 4-4, Indian head do.... 53.5 63.1 Shirtings, bleached. 4-4, Fruit of the Loom ., do.... 47.8 56.1 Suiitings, indigo blue, all wool, 14 oz., Middlesex. . ? do.... 2.9 2.9 Tickings, Amoskeag, A. C. A do ... . 32.7 38.9 Women's dress goods, cashmere, cotton-warp 22-inch, Ham- ilton 46.8 24.6 58.0 Coal, anthracite, stove bushels . . 25.0 Petroleum, refined, 150° test gallons . . 32.1 31.5 Nails, cut, 8-penny, fence and common pounds . . 123 196 Nails, wire. 8-penny. fence and common do.... 114 207 Carbonate of lead (white lead), American, in oil. do.... 64.4 69.9 Cement, Portland, American barrels . . 1.7 2.1 Plate glass, area, 3 to 5 square feet ..square feet.. 9.8 16.4 222 293 a 1 pair and 93 cents over. c 3 pairs and 78 cents over. b 1 pair and $1.98 over. d 4 pairs and 78 cents over. When the comparative value of silver is shown, the decrease is remarkable. The value in 1903 is less than in 1896, when meas- ured by 22 of the 25 articles. In 1896 the value of 10 ounces of silver was equal to 150.5 pounds of granulated sugar, in 1903 it was equal to but 116.8 pounds; in 1896 equal to 144.5 yards of ginghams, in 1903 to 98.6 yards; in 1896 equal to 109.6 yards of Indian Head sheetings, in 1903 to 79.6 yards; in 1896 equal to 50.3 bushels of. stove coal (anthracite), in 1903 to but 31.5 bushels. 222 LABOR, WAGES, AND PRICES. The table follows : Value of 10 ounces of silver (fine bar) in 1896 and 1903 when measured by the Wholesale prices of the following articles. [Compiled from Bulletin No. 51, United States Bureau of Labor.] Articles. Coffee. Rio. No. 7 pounds. . Sugar, granulated do Tea. Formosa, fine do Shoes, men's calf bal., Goodyear welt pairs.. Shoes, women's solid grain do. . . . Calico, Cocheco prints yards. . Denims. Amoskeag do ... . Drillings, bro wn, Pepperell do Ginghams, Amoskeag do Hosiery, men's cotton half hose, 20 to 22 oz pairs. . Overcoatings, chinchilla, cotton-warp yards.. Sheetings, bleached, 10-4. Atlantic do.. .. Sheetings, brown. 4-4, Indian head do Shirtings, bleached, 4-4. Fruit of the Loom do Suitings, indigo blue, all wool, 14 oz. Middlesex do Tickings. Amoskeag. A. C. A do Women's dress goods, cashmere, cotton-warp. 22-inch, Hamilton 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 do Carbonate of lead (white lead), American, in oil. .do Cement, Portland, American barrels . . Plate glass, area. 3 to 5 square feet square feet . . Glassware, tumblers, M-pint, common 55.3 150.5 26.4 (a) (O 129.9 69.0 119.0 144.5 98 15.7 40.1 109.6 98.0 6.0 66.9 95.9 50.3 65.6 251 233 131.9 3.4 20.1 455 1903. 97.0 116.8 23.6 (b) (d) 107.6 48.1 87.6 98.6 83 12.0 25.5 79.6 70.7 3.8 49.1 73.2 31.5 39.8 247 261 88.1 2.7 20.7 a 2 pairs and $2.02 over, c 8 pairs and 2 cents. b 2 pairs and 72 cents over, d 6 pairs and 10 cents over. PROTECTED LABOR IN AMERICA VS. FREE-TRADE LABOR IN GREAT BRITAIN. OFFICIAL FIGURES U. S. GOVERNMENT REPORTS. 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 great an influence for higher wages there as it has in this coun- try. Industrial conditions, under free trade, have, however, made it impossible for employers of labor to pay anything like the wages received by American workingmen. At the same time that the preceding figures relating to wages 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. a The following table, which was also 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 : We are a people of peace and desirous of winning its ample trophies. — Hon. C. W. Fairbanks, at Baldwin, Kas., June 7, 1901. In the United States law is liberty and liberty is law. C. W. Fairbanks, at St. Paul, Minn., August 31, 1903. -Hon. We seek physical power because it may advance our moral and intellectual well-being:.— Hon. C. W. Fairbanks, at Lancaster, Mass., June 30, 1903. It is as much our imperative duty to protect capital and labor in the free and proper exercise of their functions as it is to restrain and forbid the encroachments of wrong;.— Hon. €. W. Fairbanks, at St. Paul, Minn., August 31, 1903. LABOR, WAGES, AND PRICES. 223 3-9 3* !SS§gg8Si8S88g8£ >CDCOcDCOt-COt-t-t~t-t-t^t- lOOt-BQCDg-inOOOO'tt'CS^CD i-tfmt»t»QNOtD05COOJCO Pea *00NOOMt»MOiOiflK)l»III t-»Q0(B(»0)05»OOOOOO NCOt-T)c C Pod i-i.-iinmift^mio>Joiftioi5mio >ao-*mco©mooooccoooooooooocoeo- 05 00 I- t- t~ Tf - co r- F t- t~ t- t~ 28838§?§388S8go$ t-r^oot-cocot-t^r-ooo-H-^in WNN«WINMlN(N(NWWC<5CO ©J05lCt^Om t0r-t-{-.f-t~t>t~aoooO'->oo-<» < pcfl £2 P^ t-«»O>«NC2'*00X'*ffJN £££8g&888© ! o : 8go' in us in m m m i ! CO CO ' COOO^^COfCCOCOCOlOCOOiCO'^ •^-^-^-JTOCOCCCOCO-^-^inCOt- P55 0) ^B Pifl i—-*COKOt-C35 'rHT)Ti •*xmiftiomint-»'-«J!iftr; 8888888882°. 2°. 2 ilftlfti*'<)<'*'<)lT(i-*'OiiJiiftl Ptt 1 og c3 -£^ P5Q NQi-i^'<* tr ift t~ - > CO CO iO < ■00 t- t~ *-c < i cO CO CO CO <_ - !MWNNN(MI»NMW«N( OJC^CTiC^didiOsbsOSOS©©©© ooooooocooooooaoooooosoidids )OOOOOOOOGOGOOOX< :888 These statistics show a remarkable difference between wage conditions in the United States and in Great Britain. During the 14 year period from 1890 to 1903 the average wage returns for each year, as shown in the table, range as follows : Black- smiths, in the United States, $0.26 to 0.29 %, and in Great Britain $0.16% to 0.17% per hour ; boiler makers, in the United States, $0.26 to 0.28%, and in Great Britain $0.16 to 0.17% per hour; bricklayers, in the United States, $0.43 to 0.54%, and in Great Britain $0.17% to 0.20% per hour ; carpenters, in the United States, $0.27 to 0.36, and in Great Britain $0.17 to 0.20% per hour ; compositors, in the United States, $0.38 to 0.44%, and in Great Britain $0.15% to 0.18 per hour ; hodcarriers, in the United States, $0.22% to 0.28%, and in Great Britain $0.12 to 0.13 per hour ; ironmolders, in the United States, $0.24% to 0.30%, and in Great Britain $0.17 to 0.18 per hour ; general laborers, in the United States, $0.14 to 0.17, and in Great Britain $0.09% to 0.10% per hour; machinists, in the United States, $0.23% to 0.27, and in Great Britain $0.15% to 0.17, per hour; house painters, in the 224 LABOR. WAGES, AND PRICES. United States, $0.27 to 0.34'.. and in Great Britain $0.15*4 to 0.17% per hour; plumbers, in the United Stales. ,$(l.:!4i/, to 0.43%, and in Great Britain $0.17% to 0120% per hour; stone cutters, in Hie United States, $0.34% to 0.42, and in Groat Britain .$0.17 to 0.20 per hour; stone masons, in the United Slates, $0.34% to 0.45, and in Great Britain $0.17% to 0.21 per hour. The claim is sometimes made that the increased wages in this country since the years of the depression (1803 to 1897) were accompanied by like increases in Great Britain. That this is not the case can be shown by examining the following table, in which the wages in 180(5 and in 1903 and the percentage of in- crease in the United States and in Great Britain during that period are placed side by side: Wages in the United States and Great Britain in 1896 and 1903. [Compiled from Bulletin No. 51, United States Bureau of Labor.] Wages per hour. United States. Great Britain. Occupation. 1896. 1903. Per cent in- crease. 1896. 1903. Per cent in- crease. Blacksmiths $0.2643 0.2626 .4337 .2740 .3897 .2335 .2507 .1415 .2397 .2742 .3505 .3590 .3547 $0.2962 0.2848 .5471 .3594 .4467 .2863 .3036 .1676 .2709 .3450 .4371 .4225 .4486 12.1 8.5 26.1 31.2 14.6 22.6 21.1 18.4 12.6 26.5 25.8 24.7 17.7 $0.1716 .1683 .1960 .1893 .1695 .1250 .1698 .0958 .1607 .1656 .1926 .1893 .1977 $0.1740 .1719 .2062 .2028 .1795 .1250 .1787 .1019 .1677 .1774 .2027 .1994 .2078 1 4 Boilermakers 2.1 5.2 7 1 5 9 Hodcarriers 0.0 Laborers, general, . . M 4 4 Painters, house 7.1 5 2 Stonecutters Stonemasons 5.3 5.1 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 United States during this period plainly show that the increase here has been phenomenal. Thus, while from 1896 to 1903 the wages of blacksmiths increased 1.4 per cent in Great Britain they increased 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 molders 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 increased 4.4 per 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, while 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 cent in the United States. LABOR, WAGES, AND PRICES. 225 Official Fignres from British Reports. In the chapter on wages and cost of living it has been shown that in the United States the rise in wages has more than kept pace with the increased cost of food commodities. In the preced- ing chapter it has been shown that from 1896 to 1903 the per- centage of increase in the wage rates in 13 leading occupations ranged from to 7 per cent. It is interesting in this connection to observe how thi£ slight increase in British wages compares with the increase in the food prices of that country. A report recently published by the British Government contains statistics of whole- sale and retail prices in the United Kingdom up to and including 1902. From this report the following quotations of retail prices in London have been compiled: Articles. Retail Prices. Per cent in- crease Articles. Retail Prices. l!)U;2 Per cent in- crease. Flour, per 14 lbs. Pastry whites Households Superfiue Brown Meal American Rice, per 2 lbs. Carolina Java Fine Patna Rangoon Ground Beef, British, per lb. in September. Fillet Gravy beef Top ribs (whole) Fore ribs (prime) Sirloin (prime cuts). . . Sirloin (wing end) Beef steak Rump steak Mutton, British, per lb in September. Breasts Chops, trimmed Fore quarters Hind quarters Pork, British, per lb. in September. Bell/ es or springs.. . Chops Legs Loins, fore Loins, hind Loins, whole Bacon, best Irish, per K> Back ribs Gammon Fore ends Loins Collar Bacon, best Wiltshire, per lb ... Back ribs Gammon Fore ends Loins Collar Hams, YOrk, per lb. Under 16 lbs Over 16 lbs Hams, irish, per lb. Over 10 lbs Eggs, cooking, per doz. in October. .' Eggs, new laid, per doz. in October Sugar, per 7 lbs. Moist, for cooking Demorara (2d quality) Loaf, for table use — Castor Tea.China, unblended, fl> Kaisow Congon Orange Pekoe Gun Powder Coffee, Mocha, per lb. Unroasted Roasted Ground Coffee, Costa Rica, ground, per lb. :■:? Thus, while wages in Great Britain increased from to 7 per cent in 13 leading occupations as above shown, the price of flour in that country increased from 11 to 27 per cent ; the price of rice from to 12 per cent ; the price of beef from 7 to 20 per cent ; the price of mutton from to 14 per cent; the price of fresh pork from 9 to 21 per cent ; the price of bacon from 22 to 50 per cent ; the price of ham from 14 to 24 per cent; the price of eggs from 12 to 18 per cent ; the price of sugar from to 17 per cent ; and the price of tea from 6 to 11 per cent, and so on. This shows that our British cousins have not been as fortunate as we during the past few years, and that, although we have paid more for our commodities in 1903 than in 1896, we, at least, unlike our British cousins, have had the wages to pay for them. The British Board of Trade, by order of Parliament, recently published comparative statistics of wages in Great Britain and a few other countries. The data relate to the years between 1895 and 1902, but mainly to the years 1898 to 1901, and cover returns for fifteen, skilled occupations. The following table gives a summary of these returns, corrected to a standard year, for Great Britain and the United States* 226 LABOR, WAGES, AM) PRICES. Current weekly icuyc rates for ci shillcd occupations. [Source: Memoranda, % statistical tables, and charts prepared In the Board of Trade with reference to various matters bearing- on British and foreign trade and Industrial conditions, pp. 291 and 191] Occupations. Weekly wage rates in London. Weekly wage rates in New York. Per cent excess of New York over London wage rates. Weekly wage rates in other towns. Great Britain. United States. Per cent excess of Amer- ican over British wage rates. Blacksmiths Brass molders Cabinet makers Carpenters and joiners Compositors Lithographic printers . . Machinists (fitters) Machinists (turners)... Masons Painters Pattern makers Plasterers Plumbers Upholsterers AH of above fifteen trades S l A 9 9 b l A 10 10 42 75 64 108 64 89 64 86 174 139 79 133 116 67 79 d. 6 3 3 OH 3 3 s. d. 75 66 3 58 2 73 4 56 3 85 3 52 1 52 10 84 4% 73 3 66 UN M M 92 74 151 51 51 115 100 86 123 145 54 The above statistics show that the average wage rates in the United States are nearly twice as high as those in Great Britain, and fully corroborate the figures published by the United States Bureau of Labor. The following statistics of wages per hour in London in 1903, taken from the Ninth Annual Abstract of Labor Statistics pub- lished by the British labor department, agree almost exactly with those obtained from private establishments by a special agent of the United States Bureau of Labor and shown on page : Bricklayers, $0.21; carpenters, $0.21; painters, $0.18; plas- terers, $0.22 ; plumbers, $0.22 ; stone masons, $0.21 ; masons and plasterers' laborers, $0.14. Lower Prices in the United States Than in England. The claim is often made that while wages are higher in the United States the cost of living is correspondingly cheaper in Great Britain. That this statement is erroneous can be proved by official statistics obtained simultaneously in both countries. In 1892 the Senate Committee on Finance made an extensive report on "Retail Prices and Wages" in leading cities of the United States and Europe at different periods from June, 1889, to September, 1891. Among the cities considered in this report were St. Louis, Mo., and Manchester, England. A comparison of the prices of articles of identically the same description, obtained at, the same time, namely, June, 1889, and September, 1891, in both cities, shows that instead of the necessary commodities of life being higher in the United States than in England, they are, on the con- trary, as a rule, much lower. This is shown in the table which follows. A glance at this table shows that most of the necessary food products, such as bread, eggs, lard, bacon, roast beef, hams, mutton, milk, starch, and canned vegetables, were much lower in St. Louis than in Manchester, while the prices of the few remain- ing food products averaged about the same in both countries. With regard to clothing and cloth goods, we find that men's hosiery, cotton shirts, sheetings, shirtings, and cotton and woolen dress goods of the same description and quality, were cheaper in St. Louis than in Manchester; that carpets, flannels, and cotton underwear averaged about the same, and that only in the case of men's hats was there any decided difference in favor of the Man- chester purchaser. Household articles, such as earthenware, glassware and cutlery, were nearly the same in price in St. Louis as in Manchester, with a very slight difference in some cases in favor of the latter city. LABOR, WAGES, AND PRICES. i^^^^^^^^^^t IS3SK 3SSJ3R 1*3333*35 » 88SSS2288Sggg282 £&8£88£SS8s; 8S£ S ^ • • • • v o o o o o o :*:*^ as* ;* 3? tDCO to -^ eo ■* ^SWSsSR;*:*:*:*;* at^^ SSlRSORiR ^3?3?^3? 382SSS888SS888S83 Scv5&£88£33i8£ feg! ;* ^ 2 a 3? :* SSSSSSiggSSSSciSiSS 8!88!3i?g8i!2£88 88£ £ " ~ : rt ©o ri (N O © O OOOO t-i O QO nic© 50 10 10 3?i* 3? 3^ ^^ 838§2S{ggggg©-g2g £g82S©-gcS8 £ •* 8§S ©■d >> ftfl.*3 --S3 P.03 h^3 i> S3 S3 .0 >_; • ^S^ • P 2» CD s§ g l ^ £ S S fa SpSffl P V! ^ ^ffi » -pffl 2 o £ t> p,£ •O'S a a sss! a| silica's o ° * 6 s »*n o ! Pi l-l ^ o 3 .2 228 LABOR, WAGES, AND PltlcFS. On the other band furniture cost from about one lift h to one-half as much in the United States as in Great Britain, so that for the in addi- tion, able to supply a great portion of the wants of the civilized world. During the past thirty years it has been noted that in textile fabrics alone America has gone to the front, and in the flax, silk, hemp and similar industries the Americans can now hold their own. The trade of India and Scotland, to a large extent, still de- pends on the buyers in the United States, but year after year it is becoming more evident that the buyer will not only produce his own goods but will quote to the merchant who was originally a LABOR, WAGES, AND PRICES. 2^0 seller. In such a commodity as binder twine, for instance, it is not a great number of years since the American farmer used Brit- ish made twines. Now the British market is overrun with the American production, thus reversing the former order of things. Wages in America total far more as compared with British pay. This increase may be placed at one-half to two-thirds more than is earned in England and Scotland. The men from whom this was learned were mechanics, factory workers, dyers, stonecutters and various other trades. The delegation reported that not in a single instance did they find the American workman paid loiver wages than the British workman. The delegation reported that the climatic conditions of America to a certain extent favor the workingman and the workingman's wife. Looking back upon the pottery district of Trenton, and even in the larger city of Philadelphia, it was with pleasing satisfac- tion they noted the evening promenade of the sexes. Hatless the ladies came ; coatless, often, were the gentlemen. The ladies' dresses of light material, minus gloves, and even with arms bare, carried a comforting look under the cloudless skies. The houses of the working classes were enticing externally, and the inside arrangements far ahead of workingmen's houses in England or Scotland. They visited Paterson, N. J., and studied the textile industry. Here they learned that the all-important item of wages shaded British pay bills, and that even women gained almost as much hard cash within the walls of a Paterson factory as males do in England. It was intensely gratifying to them to note that female labor was assessed at greater value than it is abroad, and as it should be in a great many instances where it certainly is not. TRUSTS AND LABOR. A Study of Industrial Combinations and Their Effect on Wages, Employment, and Prices. The United States Department of Labor published in its bulle- tin for July, 1900, the results of a careful investigation of 41 trusts and industrial combinations, the investigation covering, among other subjects, the dates of formation, capitalization, amount and character of stocks and bonds issued, profits, wages, number of employes, and prices before and after the combination, etc. The report was prepared by Prof. J. W. Jenks, of Cornell University, the trust expert of the United States Industrial Com- mission, and the material was collected by special agents and experts of the United States Department of Labor. As far as statistics were available the report shows in general a greater number of persons employed and higher wages paid i*. the same establishment after the combination than before. Owing to the fact that the books of many corporations before they en- tered into the combination were not accessible, only a portion of the combinations were able to furnish statistics of wages and per- sons employed before and after the combination. The report shows that of 14 establishments giving returns 9 show an increase in the average wages of superintendents and foremen, 4 show a decrease, and in 1 there has been no change. Out of these 14 companies 10 were formed in the years 1898 and 1899, so that the comparison of conditions before and after is a very direct one. In 7 cases out of the 14 the wages of traveling salesmen in- creased, in 2 they decreased, and in 1 they remained the same. In 2 cases no traveling salesmen had been employed by the companies entering into the combination, whereas after the combination was made such men were put to work. In one case in which traveling salesmen had been employed by the separate companies their serv- ices were dispensed with after the combination. One establish- ment reported none employed before or after. The average annual wages of skilled laborers have increased in 10 cases and decreased in 2. The average annual wages of un- skilled laborers have increased in 10 cases, decreased in 1, and remaine/j. the same in 1, after the combination. 230 LABOR, WAGES, AND PRICES. Taking the employees as a whole, the results show that out of 12 cases reporting there had been an increase of wages in 9 cases and a decrease in .".. Taking all employees collectively in each of the 13 combinations reporting, there have been but two cases of a decrease in the number of employees and but one case of a decrease in the total annual wages paid. The following table shows the annual average wages paid be- fore and after the formation of the combinations and the per cent, of increase or decrease in the average annual wages, as well as the per cent of increase or decrease in the number of employees and the total amount of wages paid, by classes of employes : Average annual wages- paid before and after the formation of the combinations, and per cent of increase or decrease in wages and the number of employees. (Incre ase (+); decrease (— ).) 0) u 1* h a o Average annual wages paid. Per cent of in- crease or decrease in the number of employees. Per cent of in- crease or decrease in total amount of wages paid. Occupations. lid 3.2 ft a «5 II P all Ah Superintendents and foremen. 12 12 9 9 9 9 $1,262 1.346 620 294 757 754 $1,227 1,246 705 351 798 662 — 2.77 — 7.43 +13.71 +19.39 + 5.42 —12.20 +11.79 + 4.17 +23.34 +20.06 +36.45 +29.06 + 8.72 — 3.57 +40.13 +43.38 Clerks +43.98 +13.42 All employees 9 460 518 +12.61 +21.56 +36.68 This table shows an increase in the average annual wages paid to skilled laborers, to unskilled laborers, and to clerks, and a de- crease in the average annual wages paid to superintendents and foremen, traveling salesmen, and the unclassified employees. Tak- ing all of the employees together, the, percentage of increase of average annual wages has been 12.61. In all lines, taking together all the establishments which have reported, there has been a decided increase in the number of em- ployees; and in an cases, with the exception of the traveling sales- men, there has been also an increase in the total amount of wages paid. A table giving the total amount of gross sales, number of em- ployees and total annual wages in the case of eight combinations reporting, shows a decided increase in the efficiency of the em- ployees, the average increase of gross sales being 47.32 per cent., as compared with an increase of 27.59 per cent, in the number of employes, and 38.19 per cent, in the total annual wages paid. The increase of 38.19 per cent, in the annual wages as compared with the increase of 27.59 per cent, in the number of employees, shows that the benefit of this increase of efficiency did not go entirely to the employers, but was divided between them and the employees. "OUT OF WORK BENEFITS" UNBER BEMOCRATIC ANB REPUBLICAN ABMINISTRATION. While no one familiar with the methods of the federal bureau of labor doubts the accuracy and integrity of its work, there may be some who either through ignorance or for political reasons may endeavor to bring discredit upon its figures. For this reason other sources have been consulted, and the same results are shown. It is plain that nothing shows more clearly the condition of employment than statistics of out-of-work benefits paid by labor organizations. The Cigar Makers' International Union is exhibiting at the St. Louis World's Fair a chart showing, for each year from 1890 to 1903, the total cost of out-of-work benefits paid to members of LABOR, WAGES, AND PRICES. 231 that organization, and the total membership. By dividing this cost by the membership we ascertain the average cost per member. These figures are given in the following table: Out-of-work benefits paid by the Cigar Makers' International Union from 1890 to 1903. Year. Total cost of out- of-work benefits. Total mem- bership of C. M. I. U. Average cost per member of out-of- work benefits. 1890 $22,760.50 21,223.50 17,460.75 89,402.75 174.517.25 166.377.25 175,767.25 117,471.40 70.197.70 38.037.00 23.897.00 27.083.76 21.071.00 15,558,00 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 $0.92 1891 0.88 1892 0.65 1893 3.34 1894 6.27 1895 5.99 1896 6.43 1897 r 4.46 1898 2.65 1899 1.31 1900 0.70 1901 0.80 1902 0.57 1903 0.40 This table is interesting. From 1890 to 1892 the cost per mem- ber for out-of-work benefits decreased from $0.92 to $0.65. In March, 1893, the Democratic administration came into power. The 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 March, 1897, the Republican administration returned. The cost per member during that year fell to $4.46, and for each year since it shows a rapid decline, until in 1903 it was reduced to but $0.40 per member. Thus while from 1896 to 1903 the total membership increased from 27,318 to 39,301, or 43 per cent., the total cost for out-of-icork benefits decreased from $175,767.25 to $15,558.00, or 91 per cent. REPORTS OF STATE LABOR BUREAUS. During recent years a number of state labor bureaus, particu- larly those in states having considerable manufacturing interests, have published from year to year information showing, among other things, the number of persons employed in leading industries, the total and average wages paid employees, the number of days establishments were in operation during the year, the value of products, etc. These statistics are separately discussed for each state for which comparative data could be obtained. Unfortu- nately none of these bureaus except that of New York has pub- lished data for 1903, the year of highest wages. Nevertheless, as far as the figures go, they corroborate those of the federal bureau of labor. Illinois Labor Reports. In the biennial reports of the Bureau of Labor Statistics of Illinois the industrial conditions are shown for recent years in 627 identical establishments, representing 38 industries. No informa- tion for years later than 1899 has yet been published. Tables are shown comparing conditions in the years 1895, 1897 and 1899, from which the following have been compiled: Six hundred and twenty-seven identical establishments, repre- senting 38 industries. [Compiled from the biennial reports of the Bureau of Labor Sta- tistics of Illinois.] INCREASE IN NUMBER OF PERSONS EMPLOYED. Year. Average number of persons employed. Increase as compared with previous year shown. Increase as compared with the year 1895. Number. Per cent. Number. Per cent. 22,466 23,567 29,166 1897 1.101 5,599 4.90 23.76 1,101 6,700 4.90 1899 '. 29.82 232 LABOR, WAGES, AND PRICKS. INCHKASH IN ToTAIj WA< i KS run. Year. Total paid. li,>'!fasr ns compared with previous year shown. Increase as compared with the year [896. Amount. Per cent. Amount. Per cent. $9,800,033 10,335.919 13.876,259 1 3,540.340 5.47 34.25 4.076.226 41.59 5.47 INCREASE IN AVERAGE YEARLY EARNINGS. Year. Average yearly earnings. Increase as compared with previous jjdar shown. Increase as compared with the year 1895. Amount. Per cent. Amount. Per cent. 1895 '. $436.32 438.58 475.77 1897 $9.86 '37.19 0.54 8.48 $2.36 39.55 0.54 1899 9.07 Massachusetts Labor Reports. The annual statistics of manufactures in Massachusetts, pub- lished by the Massachusetts Bureau of Statistics of Labor, present reports from a large number of manufacturing establishments 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 percentage 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 : 8 & to © ** « a o 8 © fc <=> ^> a ^ -a I I "* to © 3k Q &9 a a ** to d O CO fit ~ O CO -rt CD +* 5 .2 ffl co ^ §2 to r -c a ® B a to O CO Si* q o3^3 i u , „, CD CD e8 +2 CD j_, u CD fl "2 cs aS, V « a,? a CD £7,3 CO L o3to 2o^ CD P-cd CD CD c3 CD cS p,^^ O CD c ^ to Id ° ° P ° BO C3 Q. £3 *£ CD > co m t>«o-* ei t-< as co co cd < r-< in co t- co as a> m — < © >n co oo i ■* •* f cs o im o c o -t -r a io ) © b- -<: ;i-^ LABOR, WAGES, AND PRICES. 233 New York Labor Reports. The following tables and text matter concerning New York have been reproduced from Bulletin No. 19, of the department of labor of the State of New York : Since 1897 the New York bureau has collected statistics of ac- tual earnings of wage-workers through the officers of working- men's organizations, reaching in this way 150 wage-earners where one could have been reached by means of individual schedules. The New York statistics are based on quarterly reports collected twice a year and thus cover one-half of each year. Average earnings of organized workingmen, 1897-1903. Year. January- March. July-Sep- tember. Average for three months. Estimated average for one year. Estimated number of days of employ- ment in year. 1897 $145- 164 172 176 183 184 186 $174 175 197 182 194 197 190 8163 169 187 179 189 191 188 $650 678 747 716 756 765 753 254 1898 255 1899 273 1900 265 1901 274 1902 278' 1903 278 Experience r as shown tl ftt ear nings in the six moi iths April- June and October-Decembei run about the same as in the six months for which statistics j,re collected, so that it Is not errone- ous' to estimate the year's earnings on that basis. Between 1897 and 1903 the average yearly earnings of men increased $103 (from $650 to $753), or 16 per cent. As a matter of fact, the real increase was much larger, for the membership of trades unions more than doubled in the above-mentioned period and the new members al- most invariably belonged to trades or lived in localities where they worked for lower rates of wages than the old members. As' a consequence of these additions the average daily wage appeared to be stationary after 1899, while as a matter of fact it was almost universally advancing. In 1901, for example, 47,585 members of' unions obtained advances averaging $1.97 a week, while only 2.668 suffered reductions' in weekly wages — and these were principally due to the establishment of shorter hours of work. In 1902, again, 93,225 trades-unionists secured increases in wages averaging $1.78 a week, while only 3,329 sustained decreases'. Considering these facts, it seems quite conservative to say that wage rates increased at least 10 per cent between 1897 and 1903. In that period em- ployment increased as follows: Percentage of workinig time in which organized workingmen and women were employed and idle. Year. Employed. Idle. 1897 Per cent. 76^0 82.0 79.5 82.8 86.6 86.1 Per cent. 30.3 1898 24.0 1899 18.0 1900 20.5 1901 17.2 1902 13.4 1903 13.9 The duration of employment in 1903 was therefore 24 per cent greater TFTan in 1897. Assuming that rates of wages increased only 10 per cent in the same interval, their gain in earnings would be 36 per cent. This is doubtless larger than the increase enjoyed by workers in manufacturing industries. We have a veneration for the past and it is well. — Hon. C. W. Fairbanks, in commencement address at Baker University, Baldwin, Kas., June 7, 1901. Cheap labor is not the sole end we seek in the United States. * * * We desire not only well-paid labor, but want that labor steadily employed.— Hon. C. W. Fairbanks, at Kansas City, Mo., September 1, 1902. 234 LABOR WAGES, AND PRICES. The following tables show the — Prevailing daily rates of wages in the building industry of New York City (Manhattan Borough) from 1883 to 1908. Year. Bricklay- ers and masons. Carpen- ters. House- smiths. Laborers. Painters and decor- ators. Masons. Plasterers. 1883 $4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.50 4.00-4.50 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.4p 4.40 4.80 5.20 5.20 18.60 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50-4.00 4.00 4.00 4.50 4.50 $2.75 2.75 2.<5 2.75 2.75 2.75 2.75 2.75 2.00-2.75 2.00-2.75 2.00-2.75 2.00-2.75 2.00-2.75 2.00-2.75 2.50 2.50-2.80 2.80-3.50 3.20-3.50 3.76 4.00 4.50 ItJO 2.50 2.50 2.50 2.75 2.25-2.75 2.25-2.75 2.25-2.75 2.40-2.50 2.40-2.50 2.40-2.50 2.40 2.40 2.40 2.40 2.40 2.64 2.64 2.64 2.80 2.80 $3.00 3.00 3.00 3.00 8.00 $2.50-4.00 1884 2.50-4.00 1885 3.00-4.00 1886 3. 12-4 XX) 1887 3.12-t.OO 1888 8.50-4.00 1889 3.50-4.00 1890 3.50-4.00 1891 1892 2.50 2.50 2.75 2.75 2.75 2.75 2.75 2.75 3.00 3.00 3.00 3.25 3.25 3.50-4.00 3.50-4.00 1893 3.50-4.00 1894 3.50-4.00 1895 3.50-4.00 1896 3.50-4.00 1897 3.00-4.00 1898 3.00-4.00 1899 3.00-4.00 1900../ 1901 3.00-4.00 3.00-4.50 1902 a 3.50-4.50 1903 a 3.50-4.50 Year. Plasterers. Plumbers and gas fitters. Roofers. Sheet- metal workers. Steam fitters. Tile layers. 1883 $4.00 4.00 4.00 4.00 4.00 4.50 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.50 4.50 4.50 5.00 5.50 $3.00-3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 2.75-3.75 2.75-3.75 2.75-3.75 2.75-3.75 2.75-3.75 2.75-3.75 3.75 3.75 3.75 3.75 3.75 4.25 4.25 $3.00 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.75 4.00 4.00 $2.00-3.00 2.00-3.00 2.00-3.00 2.50-3.50 2.50-3.50 3.00 3.25 3.25' 3.25 3.25 3.25 3.25 3.25 3.25 3.25-3.50 3.25-3.50 3.50 3.75 3.75 4.00 4.00 $3.00 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.75 4.00 4.00 4.00 4.00 1884 1885 $3.50 1886 3.50 1887 3.50 1888 3.50 1889 3.50-4.00 1890 3.50-4.00 1891 4.00 1892 4.00 1893 4.00 1894 4.00 1895 4.00 1896 4.00 1897 4.00 1898 4.00 1899 4.00 1900 4.50 1901 5.00 1902 5.00 1903 5.00 a Amalgamated reports painters' wages $4; the Brotherhood, $3.50 and $4; Amalgamated reports' decorators' wages $4.50. Decor- ators received the higher rate throughout the entire period. Prevailing daily rates of wages for paving and stonecutting in New York City (Manhattan Borough), 1883 to 1903. 1883 $4.00 4.00 4.00 4.00 5.00 5.00 1884 1885 1886 1887 1888 1889 1890 1891 4.50 4.50 4.50 4.50 4.50 1892 1893 1894 1895 1896 1897 4.50 4.50 4.50 4.50 4.50 4.50 4.50 1898 1899 1900 1901 1902 1903 Paving. Freestone. Granite. $4.50 $3.50 4.50 3.50 4.50 3.50 4.50 3.50 4.50 3.50 4.50 3.50 4.50 4.00 4.50 4.00 4.50 4.00 4.50 4.00 4.50 4.00 4.50 4.00 4.50 4.00 4.50 4.00 $3.50 and 4.50 4.00 3.50 and 4.50 4.00 3.50 and 4.50 4.00 3.50 and 4.50 4.00 3.50 and 4.50 4.00 4.00-5.00 4.00 4.00-5.00 4.50 Marble. $2.50 2.50 50-3.00 50-3.00 50-3.00 50-3.00 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 4.00 4.00 4.00 4.00 4.50 4.50 5.00 The secre LABOB, WAGES, AND PBICES. 236 Pennsylvania Labor Reports. secretary of internal affairs of the state of Pennsylvania, in his reports for 1901 and 1902 publishes a series of tables show- ing comparative statistics in 354 identical establishments for the years 1892 to 1901, and 771 identical establishments for the yearn 1896 to 1902, respectively. The following tables have been com- piled from these reports: Comparative statistics of 354 identical manufacturing establish- ments, 1892 to 1901. [Compiled from the Twenty-ninth Annual Report of the Bureau of Industrial Statistics, Pennsylvania.] Average persons employed. Aggregate wages paid. Average yearly earnings. Value of product. Ye ar. Per Per Per Per Num- ber. cent of in- crease. Amount. cent of in- crease. Amount. cent of in- crease. Amount. cent of in- crease. 1892 . . . 136,882 $67,331,876 $491.90 $269,452,465 1893 ... 122,278 a 10.67 56,818,289 a 15.61 464.66 a 5.54 226.017,762 a 16.12 1894 . . . 109,383 a 10.55 45,229,667 a 20.40 413.50 a 11.01 185,626,971 a 17.87 1895 ... 127,361 16.44 56,704,511 25.37 445.78 7.81 222,730.930 19.99 1896 ... 118,092 a 7.28 52,102,365 a 8.12 441.29 a 1.01 211.252,732 a 5.15 1897 ... 121,281 2.70 52,138,941 .07 429.90 a 2.58 222,995,654 5.56 1898 ... 137,985 13.77 62.676,615 20.21 454.52 5.73 266.044,530 19.30 1899 ... 154,422 11.91 78,179,333 24.73 506.27 11.38 377.934,411 42.06 1900 . . . 136.814 a 11.40 69.697,485 a 10.85 509.43 .62 418.790,239 10.81 1901 ... 156,424 14.33 85.219.969 22.27 544.80 6.94 432,994,653 3.39 a Decrease. Comparative statistics of 771 identical manufacturing establish- ments, 1896 to 1902. [Compiled from the Thirtieth Annual Report of the Bureau of Industrial Statistics,', Pennsylvania.] Average persons employed. Aggregate wages paid. Average yearly earnings. Value of product. Year. Num. ber. Per cent of in- crease. Amount. Per cent of in- crease. Amount. Per cent of in- crease. Amount. Per cent of in. crease. 1896.... 129,240 134,918 150.990 173,302 184,623 191.153 203,927 $49,430,808 51,827,646 60,681,022 75,797,895 81 ,029,889 86.103,628 98,432,570 '"4.8" 17.1 24.9 6.9 6.3 14.8 $382.47 384.14 401.89 437.37 439.97 450.44 482.68 "6.4" 4.6 8.8 0.6 2.4 7.2 $185,249,628 202,292,309 237,590,026 320,743,139 351,376,655 366,722,365 421,141,115 1897.... 1898 .... 1899.... 1900.... 1901 ... . 1902.... 4.4 11.9 14.8 6.5 3.5 6.7 9.2 17.5 34.9 9.5 4.4 14.8 Other state labor bureaus have published statistics showing similar results, but only those have been reproduced which are comparable one year with another, that is, statistics for identical establishments. WAGES IN HAWAII BEFORE AND AFTER ANNEXATION. That the influence of American annexation is felt in our de- pendencies may well be seen in the following table of wages paid on the plantations of Hawaii each year from 1890 to 1902: Average daily wages of various classes of plantation labor, 1890 to 1902. [From Bulletin of the United States Bureau of Labor, July, 1903.] Occupation. 1890. 1892. 1894. 1896. 1897. 1898. 1899. 1900. 1901. 1902. Unskilled (male ) Unskilled (female) Field labor and superin- tendence (a) $0.65 .39 .80 3.04 $0.60 .39 .69 3.21 $0.55 .38 .65 3.16 $0.53 .35 .62 3.28 $0.52 .32 .60 3.29 $0.52 .32 .60 3.24 $0.58 .37 .63 3.07 $0.64 .39 .72 3.74 $0.76 .44 .88 3.69 $0.71 .45 74 3 80 a One plantation only. 236 LABOR, WAGES, AND PRICES. The annexation of Hawaii took place in 1898. During the period from 1890 to 1898 the wages of unskilled male laborers de- clined steadily from $0.65 to $0.52 per day, while from 1899 to 1902 they increased from $0.58 to $0.71 per day; the daily wages of unskilled female laborers declined from $0.39 in 1890 to $0.32 in 1898, and increased steadily after annexation to #<>. i:» per day. While the daily wages of skilled mechanics fluctuated considerably from year to year before annexation, they increased almost stead- ily from $3.07 in 1899 to $3.80 in 1902. RAILWAY LABOR DURLNG REPUBLICAN AND DEMOCRATIC ADMINIS- TRATIONS. There is no better index to the industrial condition of a country than the amount of business done by the railways, and, as the railways in this country employ over one million persons, the in- crease or decrease in traffic materially affects a large proportion of the population. During the fiscal year ending June 30, 1896 (Cleveland's ad- ministration), there were 826,620 railway employees in the United States receiving a total yearly compensation of $468,824,531. In 1903 there were 1,312,537 railway employees, about 97 per cent of whom received $757,321,415. This shows an increase in 7 years of 485,917 railway employees and of about three hundred million dollars in aggregate salaries and wages. In other words, 58.8 per cent more persons were employed by the railways in the United States on June 30, 1903, than on June 30, 1896, when the Demo- cratic party was in power, and nearly two-thirds more were paid in wages and salaries. The following table shows the number of railway employees and the total salaries and wages paid in each class in 1896 and 1903 : Number and total wages and salaries of railway employees in the United States during the fiscal years ending June 30, 1896, and June 30, 1903. [Compiled from Report on Statistics of Railways, Interstate Com- merce Commission.] Occupation group. Railway employees on June 30— 1896. 1993. Compensation of railway employees for the year ending June 30— General officers Other officers General office clerks Station agents Other station men Enginemen Firemen Conductors Other trainmen < Machinists Carpenters Other shopmen Station foremen Other trackmen Switch tenders, crossing tenders and crossing watchmen Telegraph operators and dis- patchers Employees— A c c o u n t floating equipment All other employees and laborers Total 5,372 2,718 26,328 29,723 75,919 35.851 36,762 25,457 64,806 29,272 38,846 95,613 30,372 44,266 21,682 5,502 88,467 4,842 5,201 42,218 34,892 120,724 52,993 56,041 39,741 104.885 44,819 56,407 154,635 37,101 300,714 49,961 7,949 168,430 $12,497,957 5,301,119 19,037,816 17.059,117 39,076.478 41,354.307 23,724,854 24.758,485 38,379,035 19,312,746 22,948,585 48,497,887 17,097,832 54,521,113 24,950,907 13,695.587 3,221,290 43,398,416 $13,244,121 10,010,099 30,486,272 21,011,724 60,463,462 64,173,825 37,484,283 39,932,537 66,221,636 33,414,954 35,526,545 84,133,168 21,430.984 103.426,685 27,162,555 19,962,487 5,032,788 84,203.290 826,620 468,824,531 757,321,415 a The figures showing total wages and salaries are for 97 per cent, of the employees only. The exact figures for the total num- ber of employees had not been computed at the time when this book was published. On the basis of the figures given, the ap- proximate total compensation for the year ending June 30, 1903, was about $780,000,000. LABOR LAWS. LABOR LEGISLATION IN REPUBLICAN AND DEMOCRATIC STAMES. There is no better way of judging the merits of a political party LABOR, WAGES, AND PRICES. 237 than by the laws which are passed by the legislators who are elected to office from its ranks. With regard to legislation for the protection of the workers much remains to be done before they re- ceive their full measure of protection and justice, but as can be shown by the statistics of the different states, nearly all protective labor legislation in the United States was first enacted by Repub- lican states, and then adopted by way of imitation by the Demo- cratic states. At the present time, that is, up to the close of 1903, the proportion of Republican states having protective labor legis- lation is much greater than that of Democratic states. This is plainly shown in the table on the following page. The following table shows the number and per cent, of Repub- lican and Democratic states which have enacted the legislation as shown on the preceding chart : Legislation in force January 1, 1904 Republican States. Number. Per cent. Democratic States. Number. Per cent. Creating labor bureaus — Creating factory inspection serv- ices Providing for free employment bureaus Providing for boards of concilia- tion and arbitration — Establishing an eight-hour day for labor on public works Prohibiting employment of chil- dren under 12 years of age in factories Limiting hours of labor of children Restricting employment of chil- dren of school age and of il- literate children Prohibiting employment of chil- dren in bar-rooms Prohibiting employment of chil- dren in operating or cleaning dangerous machinery Regulating woman labor Requiring seats for females in shops and stores Regulating sweatshops Requiring wages to be paid weekly, fortnightly or monthly Protecting members of labor or- ganizations Protecting the union label 50 31 12% 31 19 37% 25 12% 56 12% 37% 12% 69 An examination of these 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 the workingman. Labor Bureaus. — There are few agencies which have done more toward giving a clear insight into the problems of labor and capi- tal, that have brought employer 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 statistics. The above tables show that at present there are 33 state labor bureaus in the United States. Of these, 25 are in Re- publican states and 8 are in Democratic states. Reducing these figures to a proportionate basis, we find that 25 out of 29 Repub- lican states, or 86 per cent., have labor bureaus ; 8 out of 16 Dem- ocratic states, or 50 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 searching out and bringing to justice persons who violate such laws. It is easy enough to enact protective legis- lation, but it is another thing to enforce it. If a state, therefore, enacts such laws and fails to organize a service for their enforce- ment, it is deceiving those whom it pretends to favor. Let us again observe the tables. We find that 22 out of 29 Republican states, or 76 per cent., have laws creating factory inspection ser- vices. We also find that 5 out of 16 Democratic states, or 31 per cent, have factory inspection services. In examining the other 238 LABOR, WAGES, AND PRICES. ■B B t 1 1 ] to OIUtSjIA. 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BOB}UOJ^ O©©© :; i ;• -o j :;•::: : : : <= 1 £ Bjosaauipv ©OO© -C •©© •© i • •© i© • • •© ° n -S aB3tqoij\ oo •© • ■ : ©© •© • j©o •©© • • • o IS SSB W ©© i© -c -oo •©© |©o -oo -O© © M ~ 9UIBr\ o© I i j • -oo :© 1 j •© j j j jo j Z "» SBSUB^f c ■ c © o : © • • • • © i • • © j © • • o © o s * BAVOT oo : i ;;•;•; i • ;oo io i ;o • o CO BUBtpUl OO io •© iOC •© • •©© io© ioo o 6 a 9 SlOUl[|I oooo ; ; ;©o ; o © • © © • ; c • ; ; ° ^2 oqBp| © j j© i= j j j j j j ; j ; | j j ; ;© » 1 & 9JBAVBPG o • i -O i • • • • i • •© i© i i • i ° c - 1 jnoip^nuo^ o = o© ; ; ;oo ;o© ;•©© ;©© ;oo ° 1 g BioaojuB"") o© 'z. ;© ;c© ; i ; ; ;© io; ;©© o w •« 5 o s 3 a « I ,o ,c c .2 •& o £ S M c ¥ creating tactory inspection services Providing for free employment bureaus Providing for boards of conciliation and arbitration. Kstablishing a compulsory 8 hour day for labor on public works. . (a) Prohibiting employment of children under 12 years, of age in factories Limiting hours of labor of children Restricting of employment of children of school age and of illiterate children Prohibiting employment of children in bar-rooms Prohibiting employment of children in operating or cleaning dangerous machinery Regulating woman labor Requiring seats for females in shops or mercantile es- tablishments Regulating sweatshops Requiring wages to be paid weekly, fortnightly, or monthly „ Protecting members of labor organizations protecting the union label a In addition to the states Indicated, nvo Republica working day in the absence of a contract. Note.— States having an age limit but permitting ch LABOR, WAGES, AND PRICES. 239 subjects of labor legislation which folloiv we musi not lose sight of the fact that only 5 of the Democratic states have made pro- vision for factory inspection services for the purpose of carrying out the provisions of the labor laws which will be under consid- eration. Free Employment Bureaus. — The movement to establish free public employment bureaus, where working people in search of work and employers desiring help might be brought together with- out 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 providing for such agencies have been enacted in 13 states. Of these 11 are Republican and 2 are Democratic. Boards of Arbitration and Conciliation. — Twenty-one states have enacted laws providing for either state or local boards of conciliation and arbitration. Of these 16 are Republican and 5 are Democratic states. Eight-hour Law. — For many years labor organizations have been endeavoring to secure legislation prohibiting labor on govern- ment works or public contracts for over eight hours per day. At the present time 17 of the 45 states have such laws on their statute books. Of these 14 are Republican and 3 are Democratic. In addition to these, 5 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 sys- tem, over a century ago, the greatest sufferers from the greed of inconsiderate and cruel employers have been the helpless children, who often at a tender age are placed in factories. It is a prin- ciple recognized in all civilized countries that children under 12 years of age should not be employed in factories, and nearly all civilized countries have laws placing a minimum age limit of 12 or 14 years upon such child labor. In our country 28 states abso- lutely prohibit the employment of children under 12 years of age in factories. Of these, 19 are Republican and 9 are Demo- cratic states. Three of the latter, however, did not enact such laws until last year. Of these 19 Republican states, 17 have fac- tory inspection services to see that the laws are enforced, while only 4 of these 9 Democratic states make provision for such in- spection. Many states have enacted laws placing certain restrictions upon the employment of children, usually under 16 years of age, and in some cases even upon the employment of all minors. Of this class are laws limiting the hours of labor of children in fac- tories or stores, which have been enacted in 27 states. Of these 19 are Republican and 8 are Democratic states. Twenty-eight states have placed restrictions upon the employ- ment of children of school age or of illiterate children, of which 22 are Republican and 6 are Democratic. Thirteen states prohibit the employment of children or minors in places where intoxicants are sold or handled. Of these 9 are Republican and 4 are Democratic. Thirteen states prohibit the employment of children in operat- ing dangerous machinery or cleaning machinery in motion. Of these 11 are Republican and 2 are Democratic states. Woman Labor. — Next to the children the greatest victims of abuse by greedy employers when unrestrained by law are women. Investigations have shown that their condition* is sometimes piti- ful 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 countries. In the United States 38 states have legislated upon this subject. Of these. 38 states, 27 are Republican and 11 are Democratic. Again it is interesting to notice that of the 21 Republican states regu- lating woman labor 21 provide for factory inspection, while of the 11 Democratic states mentioned, only 4 make such provision. Seats for Females in Shops. — Legislation on this subject needs no comment. Any man who has a daughter or sister employed in a shop or store* and every physician, knows what a hardship it is to a woman to be compelled to stand all day at a bench or behind a counter. Fortunately in 31 states legislation has been enacted requiring employers to provide seats for females. Of these 31 states, 22 are Republican and 9 are Democratic. 240 LAUOK, \V \CIS. AND PRICES. itshop Legislation.- There Is no -renter menace to tin* he;iltli of the working people. ;in<)3. In the latter part of 1903 and the early part of 1904* however, as already indicated, prices fell in the homo market, and as a consequence the im- portations in the first half of L904 foil from 88% millions to 21 millions. This great Increase Id the Imports of iron and steel in response to the unusual demands of the homo market and con- sequent high prices Is of Itself a sufficient refutation of the as- sertion that the rates of duty on iron and steel are prohibitive, and that the prices in the home market can be fixed by home pro- ducers without reference to competition from abroad. Another important fact with reference to the movements of prices of iron and steel in the past few months is that they com- pletely refute the assertion that it is in the power of the manu- facturers to maintain high prices. The fact that this representa- tive class of steel production — steel billets — is shown by the re- ports of the Bureau of Statistics to have fallen from $37 per ton in July, 1902, to $23 per ton by November, 1903, a reduction of about one-third, and remained stationary at that low figure since that time, refutes the assertion that prices can be fixed and maintained by the manufacturers. If the steel trust or any com- bination of manufacturers were able to fix and maintain prices it would be scarcely possible that they would permit a reduction of 40 per cent in prices of their products within a period of fif- teen months and permit prices to remain at this comparatively low figure down" to the present time. LABOR AND RAW MATERIAL MUCH HIGHER. As to wages, labor, as is well known, forms a very large pro- portion of the value of the manufactured article. In many cases it forms three-fourths of the total cost of the finished article, but as a whole it may be fairly set down as forming at least one-half of the value of the manufactures of the country. That the cost of labor has very greatly increased is too well known to require argument. N As shown elsewhere, the reports of the Labor Bureau show a marked increase in wages of all occupation, especially as compared with the period from 1893 to 1896. The reports of Frederick W. Job, Secretary of the Employers' Association of Chicago, show that wages in many lines of occupation have in- creased from 20 per cent, to 50 per cent, since 1895, and when it is taken into consideration that from one-half to three-fourths of the value of the manufactured article consists of labor, in which such increases have been made in wages, this fact accounts for a large part of the increased cost of the article. As to raw material. That prices of raw material have in- creased very greatly is indicated by tables taken from the official reports of the Bureau of Statistics and printed on page ...., showing the import prices of articles required in manufacturing. They show, for example, that raw cotton, which was imported in 1897 at 11.2 cents per pound, averaged in 1903 18.9 cents ; hemp, which averaged $126 per ton in 1897, was in 1903 $150 per ton; flax increased from $219 per ton in 1897 to $258 in 1903; manila hemp from $79 per ton in 1897 to $200 in 1903; sisal grass, for use in manufacturing rope, twine, etc., from $60 per ton in 1897 to an average of $156 in 1903 ; jute, from $30 per ton in 1897 to $48 in 1903 ; Yaw silk from 2.97 cents per pound in 1897 to 3.45 cents in 1903. India rubber, the import price of which averaged 50 cents per pound in 1897, was 69% cents in 1903. Pig tin, for use in manufacturing tin plates, which averaged 12.8 cents per pound in 1897, import price, averaged in 1903 27.3 cents. It will be seen from these few examples that prices of raw ma- terial imported increased from 25 per cent, to, in some cases, 150 per cent. A table on page 244 shows in detail the increase in import prices of articles used in manufacturing and will repay careful study in a consideration of this subject. ADVANCES IN RAW MATERIALS. The above discussion relates to prices of imported raw ma- terials, and it certainly can not be charged that these advances are due to control by tariff-protected trusts, so called, since the ADVANCE IN PRICES. 243 articles in question come from so many parts of the world and in a large proportion of cases from countries in which tariff rates are extremely low, such as silk from China and Japan ; fibers and india rubber and cotton from tropical countries; sugar chiefly from the Tropics; and wool from Argentina, Australia, and Southern Asia and Europe. Nor can this advance be charged to our tariff, since most of these articles are on the free list. A similar advance in prices occurs in a large proportion of the raw materials produced in the United States and used in manufacturing. The price of raw cotton, for example, in 1898 averaged 5.95 cents per pound, and in 1903 11.18 cents, having practically doubled during that time. These figures are supplied to the Bureau of Statistics by Mr. Alfred B. Shepperson, a well- known expert in matters of this character. Prices of wool, as reported to the Bureau of Statistics by Mauger & Avery, a well known and reliable firm of New York, were, for October, 1896, 18 cents per pound, and in 1903, 32 cents for "fine" grades; for the "medium" grade 19 cents per pound in 1896, and in 1903 Siy 2 cents; for that graded as "coarse," 18 cents per pound in 1896, and 28 cents in 1903. Of iron ore, the price as supplied by Mr. A. I. Findley, editor of the Iron Trade Review, Cleveland, was, in 1897, $2.65 per ton, and in 1903 $4.50 per ton. The Bureau of Statistics quotes the price of Lake copper on January 7, 1898, at $10.90 per ton, and in April, 1963, at $15. Crude petroleum is quoted in September, 1898, at $1 per barrel, and in December, 1903, at $1.90. Bessemer pig iron, while the first stage of manu- facture, is nevertheless a manufacturer's material, and is quoted by the Bureau of Statistics at $10.50 per ton in the closing months of 1898, $25 per ton in the closing months of 189^ and $23 per ton in the opening months of 1903. Prices Have Also Advanced Abroad. While it is true that the United States has witnessed a marked advance in prices of many articles since the low tariff period in which lack of earnings of the people so reduced their purchasing power that values fell to their very lowest level, it is also true that great advances have also occurred in other countries. Prof. Sauerbeck's tables, showing the course of prices of 45 commodi- ties during the last 25 years, published by the British Statistical Society, present figures showing the prices of many leading ar- ticles in London during past years and furnish an illustration of the fact that the advance in prices has not been confined to the United States. These figures show, for example, that Scotch pig iron, which was quoted in London at 42s., 8d. per ton in 1894, was 69s., 4d. per ton in 1900. Iron bars show an increase from 4% pounds sterling per ton in 1894 to 9 pounds sterling per ton in 1900; Straits tin, from 68 pounds sterling per ton in 1894 to 134 pounds sterling in 1900 ; pig lead, from 9% pounds sterling in 1894 to 17% pounds sterling in 1900 ; manila hemp, from 22 pounds sterling per ton in 1894 to 39 pounds sterling in 1900 ; merino wool, from 11% pence per pound in 1894 to 15% pence in 1900; linseed, from 20% pounds sterling per ton in 1894 to 30V 2 pounds in 1900; and linseed oil, from 38 shillings per quarter in 1894 to 54 shillings in 1900. Beef shows an advance in the class designated as "prime" from 47 pence per 8 pounds in 1894 to 51 pence in 1900 ; in the class designated as "middle" from 37 pence per 8 pounds in 1894 to 42 pence in 1900; prime mutton, from 55 pence per 8 pounds in 1894 to 59 pence in 1900 ; butter, from 98 shillings per cwt. in 1894 to 102 shillings in 1900; dry hides, from 5% pence per pound in 1894 to 8% pence in 1900. Attention is again called, before leaving this subject, to the fact that while an advance has occurred in prices of certain manufactures and foodstuffs by reason of increased cost of raw material and labor, the advance in wages has more than kept pace with these increases. This is fully and clearly shown from the reports of the Labor Bureau of the United States Government, in the article on Labor, Wages, and Prices. This is not and never shall he a government of a plutocracy; it is not and never shall be a government by a mob. — President Roosevelt at Butte, Mont., May 27, 1903. 244 ADVANCE IN PRICES. Increase In Prices of Imported Material Used In Manufacturing* This table shows the import price of the chief ;irticles used in manufacturing In the United States, it will be seen that they have largely Increased in price, although they usually come from luw tariff countries and therefore are not controlled by "tariff- made trusts." This Increase lb price Of rat? materials is one of the causes of the Increase In price of finished goods manufac- tured from them, though in most cases it is found that the manufactured article has not increased in price as rapidly as the iaw material entering it. / (This subject of the causes of the increase in price of manufactures is discussed elsewhere; see index.) Import prices. [Represents prices in foreign countries.] Articles. March- 1897. Chemicals, drugs, etc.: Bark, cinchona, etc per pound . . Gums : Camphor, crude do Potash, nitrate of do Quinia, sulphate of, etc per ounce . . Sumac, ground. per pound . . Cotton, raw Manufactures of: Cloth, not bleached, per square yard Fertilizers: Phosphates, crude.. per ton.. Fibers, vegetable, etc.: Flax do.... Hemp do — Istle or tampico fiber do Jute do Manila do Sisal grass do Manufactures of:* Cables, cordage, etc per pound. . Hides and skins, other than fur skins : Goatskins per pound . . All other, except hides of cattle . . do Hides of cattle do India rubber do Iron and steel and manufactures of : Pig iron per ton . . Tin plates, terneplates. etc.. per pound. . Wire, and articles made from do Silk, raw do.... Sugar : Not above No. 16— Beet do Cane and other do Above No. 16 do Tin in bars, blocks, pigs, etc do Wood : Boards, planks, etc . . . per M f eet . . Wool : Class 1— clothing per pound. . Class 2— combing do Class 3— carpet do.... Manufactures of : Cloths do . . .>. Zinc or spelter: in blocks, pigs and old.. do 10.043 .139 .020 .152 .015 .112 219.54 126.00 79.74 59.85 .108 .504 22.90 .023 .051 2.97 .017 .020 .024 .128 10.27 .171 .200 .111 .567 .033 $0,096 .171 .022 .236 .016 .092 .076 2.98 295.66 138.41 49.71 24.98 60.64 84.47 .295 .231 .152 .117 .586 25.80 .022 .075 3.26 .022 .024 .135 .234 .093 .039 $0,122 .203 .025 .249 .015 .104 .081 5.08 229.53 121.50 64.85 32.49 120.10 130.33 .395 31.87 .024 .071 3.43 .021 .025 .028 .192 9.80 .171 .314 .09 1.02 .049 1900. $0,193 .294 .027 .328 .094 5.08 296.18 133.65 70.91 33.59 135.84 166.23 .817 .272 .174 .130 .660 36.21 .035 .091 4.63 .021 .027 .027 .254 12.04 .053 1904. $0,152 .342 .027 .232 .015 .112 6.21 258.76 150.42 95.00 48.37 200.72 155.91 .606 .273 .133 .110 17.47 .027 .070 3.45 .0145 .0191 .031 .273 .1559 .188 .206 .114 1.01 .052 ♦Includes thread and twine. Movement Toward the Towns and Cities Advances Prices of Farm Products. Another fact must be borne in mind in seeking for causes for the advance in prices, and that is the fact that the percentage of the total population of the country which is engaged in agricul- ture is steadily growing less and the share congregating in cities and towns and demanding food from the agricultural sections is steadily growing greater. In 1880 the census showed 44.7 per cent of those engaged in gainful occupations in the United States were employed in agricultural pursuits. In 1900 only 35.7 per cent of those engaged in gainful occupations were employed in agriculture. As a consequence the nonproducers of agricultural products who were, however, still dependent upon the farmers for their food, had increased from 45.7 per cent in 1880 to 64.3 per cent in 1900, of those engaged in gainful occupations. ADVANCE IN PRICES. 245 ANNUAL AVERAGE OF WHOLESALE PRICES IN THE YEARS 1880, 1900, AND 1903. The table which follows shows the annual average of prices of articles of common use in 1880, 1800, 1000, and 1003. It is presented for the purpose of illustrating the fact that, despite all the complaints with reference to prices at the present time, they are, in manufactures and in many other articles in the prices of which transportation forms an important factor, much lower at the present time than in 1880 or 1890. While it is doubtless a fact that prices of certain articles are higher at the present time than in the depressed period of 1893-96, when labor was unemployed and consequently purchasers were few and money scarce, it is also a fact that a study of price conditions month by month and year by year from 1880 to the present time, shows a steady reduction, under normal conditions, and that in nearly all articles of importance prices to-day are below those of 1880 or 1890. In certain natural products, however, such as timber and the lumber produced therefrom, meats, and grains, the increased home demand through the growth of popu- lation, and in the case of timber, the reduced area of supply, and the movement of population from the producing area to the manu- facturing centers, tend to maintain and in some cases increase prices. In practically all manufactured articles, however, a reduction is shown, except in those cases in which they are produced from natural products whose area of produc- tion is being reduced at least in proportion to the num- ber of domestic consumers. Population in the United States has increased 60 per cent, since 1880, while the area capable of producing meats and grain has not increased mean- time, and the area of available timber has been greatly re- duced. These facts account for the upward tendency of pro- visions, meats, and lumber, while the multiplication of manu- facturing establishments and the improvement in their methods have during the same time decreased prices of manufactures, ex- cept those in which the raw material has so greatly advanced in price. The figures presented in this table are the annual average wholesale price of each article in each 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 annua! averages are the result of the combination of a large number of quota- tions made at various periods during the years in question. Annual average of wholesale prices during calendar years. Articles. 1890. 1900. 1903. Food, etc.: Butter. Elgin creamery lb. . Coffee, Rio, fairandNo.7 lb.. Flour, wheat bbl. . Flour, rye bbl. . Fruit: Apples, evaporated « lb. Currants lb. , Raisins, California, London layers box. Lard, prime lb. Meat: Beef, fresh, native sides lb. Salt, extra mess bbl. Ham lb. Pork, salt mess bbl. Bacon lb. Molasses, New Orleans, prime gal. Rice lb, Salt bbl. Spices: Nutmeg's lb. Pepper lb. Starch, pure lb. Sugar: 96° centrifugal lb. Refined, granulated lb. Tallow lb. Farm products: Wheat, cash bush. Wheat, No. 2, red winter bush. Wheat, contract grades, cash bush. Dollars. .2925 .1513 8.9000 4.9880 .1433 .0593 2.2875 .0750 13.3100 .5500 .0725 .7500 .8850 .1417 .0613 .0876 .0988 .0672 Dollars .2276 .1793 5.1856 .1136 .0478 .0633 6.9596 .0995 12.1502 .0603 .3542 .0605 .7921 .6317 .1151 .0546 .0546 .06168 Dollars. .2245 .0822 3.8423 3.4250 .0615 .0720 1.5208 .0804 9.7538 .1025 12.5072 .0752 .4775 .0548 1.0010 .2601 .1291 .0500 .04572 .05332 .0485 Dollars. .2348 .0559 4.3303 3.1479 .0611 .0476 1.4458 .0877 .0784 9.0673 .1271 16.6514 .0959 .3546 .0566 .6140 .2877 .03720 .04641 .0510 .804 .7040 .853 Articles. Corn, No. 2. cash bush. Oats, cash bush Rye, No. 2, cash hush. Barley, by sample bush. Flaxseed, No. 1 bush. Cattle: Steers, choice to extra 100 lbs. Steers, good to choice . .• 100 lbs. Hogs: Heavy 100 lbs. Light 100 lbs. Sheep: Native 100 lbs. , Western 100 lbs. , Hides, green, salted, packers' heavy native steers lb. . Hay, timothy. No. 1 ton. Hops. New York State, choice lb. . Cotton, upland, middling lb. . Wool: Ohio medium fleece, scoured lb. . Ohio fine fleece, scoured lb. . Cloths and clothing: Bags, 2-bushel, Amoskeag each.. Boots and shoes: Men's brogans pair. . Men's split boots doz. pairs. . Women's solid grain shoes pair. . Calico, Cocheco prints yd. . Carpets: Ingrain 2-ply. Lowell yd. . Wilton, five-frame Bigelow yd. . Cotton thread, 6-cord. 200 yards, J. & P. Coats spool. . Denims, Amoskeag yd. . Drillings, Stark A yd. . Ginghams, Amoskeag yd. . Print cloths, 28-inch, 64 by 64 yd. . Shirtings, bleached. 4-4, Fruit of loom. . . yd. . Shirtings, bleached, 4-4, Lonsdale yd. . Tickings, Amoskeag, A. C. A yd. . Women's dress goods: Cotton warp alpaca, 22 in. Hamilton. . .yd. . Cotton warp cashmere. 22 in. Hamilton yd. . Cotton warp cashmere, 27 in. Hamilton yd. . Fuel and lighting: Coal, anthracite stove ton. . Bituminous ton. . Metals and implements: Nails, cut 100 lbs. . Wire 100 lbs. . Barbed wire, galvanized .100 lbs. . Pig iron. No. 1, foundry ton. . Steel rails ton. . Bar iron, best refined lb. . Copper, sheet lb. . Quicksilver lb. . Lead, pig lb. . Lead pipe 100 lbs. . Saws, hand. Disston's doz. . Shovels, Ames' No. 2 doz. . Spelter, domestic lb. . Lumber and building materials: Oak boards, white, plain M. feet. . Pine boards, white M. feet. . Shingles, white pine M. . Doors, pine each. . Lime, common bbl. . Brick, common domestic M. . Cement Rosendale bbl. . Rope, manila lb. . Putty lb. . Carbonate of lead in oil lb.. Turpentine, spirits of gal. . Drugs and chemicals: Alcohol gal. . Brimstone. crude ton. . Glycerin, refined lb. . 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 of 3 . . Miscellaneous: Rubber, Para lb. . Dollars. .i2267 .&375 1.0275 .1931 uooo 21.500 .0500 .0762 .8767 2.6750 .041250 .0431 .1621 .0950 .1588 .1067 .1142 .1450 3.9625 5.1125 1890. 28.500 67.5000 .0260 .2900 .4138 .0472 6.5825 14.040 10.0300 .0575 33.0000 37.0000 2.3750 1.8750 .8875 7.0000 1.0500 .1250 .0306 .0770 .38000 2.1025 27.7500 .1925 .7025 6.6875 2.9500 .0100 8.000 4.5000 15.000 1.4500 1.4000 .8500 Dollars .3950 ,8108 .5117 .5062 4.8697 4.1375 8.9584 4.5284 4.6644 .0933 9.9952 .2621 .11089 .6143 .7156 .1594 1.0500 17.000 .8500 .0650 .5160 1.9200 .0315 .1175 .0640 .0625 .0334 .0845 .0845 .1200 .0735 3.7108 2.9875 2.2875 2.9646 3.5665 18.4083 31.7792 .0184 .2275 .7300 .0440 5.4000 14.400 7.8700 .0554 37.8750 44.0833 3.8417 1.3750 .9792 6.5625 1.0542 .1494 .0175 .0638 .4080 2.0717 21.1458 .1767 .6158 2.6208 .3275 .0088 7.000 4.2000 15.000 .1800 1.5917 1.6500 .8379 1900. Dollars .8811 .2271 .5177 .4815 1 JBM8 5.7887 5.3938 5.0815 5.1135 4.1236 4.5207 .1194 11.5673 .1483 .5296 .6594 .1575 .9375 18.000 .9042 .0525 .4920 1.8720 .0372 .1073 .0542 .0515 .0308 .0753 .0731 .1084 .0711 .0760 .0882 3.9451 2.9083 2.2500 2.6333 3.3942 19.9800 32.2875 .0215 .2067 .6769 .0445 5.1208 12.600 9.1200 .0442 40.8333 57.5000 4.0000 1.5900 .6833 5.2500 1.0167 .1320 .0190 .0625 .4771 2.3867 21.1458 .1515 .6292 3.2000 .3325 .0120 8.000 5.2080 15.600 .1800 1.4917 1.4417 .9817 a Michigan white pine 16 inches long, XXXX. b 7-16 inch. ADVANCE IN PRICES. 247 Advance Occurs Chiefly in Natural Products — The Advance In Manufactured Articles is Less Than That of the Material from Which They are Produced. One important fact in considering the advance in prices is that the chief increase occurs in products of the farm, forest, and mine — articles ivJiich are not controlled by trusts, and for which advance the trusts or corporations cannot possibly be held respon- sible. Equally important with this is the fact that finished arti- cles produced from these natural products, whether foodstuffs, articles of clothing, articles of household use, machinery for the farm, or shop, have not advanced in any such proportion as have the raw materials of which they are composed. Official tables published in various parts of this volume show prices of various classes of productions of agriculture, the mine, the forest, and those of manufactured articles of various classes. A comparison of the advance in prices of these articles not con- trolled by corporations with the advance in the price of the finished article shows in practically every case a much greater percentage of increase in the raw material, not controlled by trusts or cor- porations, than in the finished article, produced, in many cases, by the class of corporations which are charged with excessively and arbitrarily advancing prices. Attention is especially called to a table on page entitled "Comparative Advance in Prices of Cer- tain Related Commodities, 1903, Compared with 1896." This table is compiled from an official bulletin of the United States Bu- reau of Labor. This table compares prices in 1903 with those of 1896, and is an official statement. It shows an advance in price of cattle of 19.82 per cent, and in fresh beef, which may be classed as the manufactured product, of 12.38 per cent. This does not sustain the assertion which has been frequently made during the past year that the beef trust has excessively advanced prices to the consumer and controlled to its own advantage the prices of the livestock from which the beef is produced. In live hogs the ad- vance in price amounts to 75.22 per cent., and in hams 34.86 per cent. In sheep the advance is 25.03 per cent. ; in mutton 19.06 per cent. In corn the advance is 78.61 per cent. ; in corn meal 61.11 per cent. In wheat the advance is 23 per cent. ; in wheat flour 6.50 per cent. In cotton (upland, middling) the advance is 41.86 per cent, and in print cloths 24.64 per cent., in ginghams 15.68 per cent., in cotton denims 14.16 per cent, in cotton bags 13.76 per cent, in cotton flannels 13.74 per cent, in cotton sheetings 13.55 per cent, in cotton tickings 8.44 per cent., in cotton shirtings 5.41 per cent. ; while calico is 4 per cent, below the price of 1896 and hosiery is 44 per cent, below that of 1896. This gives an average advance of 12.08 per cent in the corporation-made articles as against an advance of 41.86 per cent, in the price of the material which they used, and which was not produced or controlled by trusts and is not protected by a tariff. In wool the advance in price is 56.23 per cent, and in the articles manufactured therefrom the average advance is 30.01 per cent A study of other tables of prices of natural and manufactured products will show similar conditions, viz., that the chief advance has been in the natural products and that in practically every case the advance in the finished product has been less than that of the material from which it is produced. The Statistical Abstract shows the average price of raw sugar (centrifugals) in 1896 to be 3.62c per pound, and in 1903 3.72c, an advance of 2.76 per cent. ; and of the finished product (granulated sugar) in 1896 4.53c, and in 1903 4.64 c, an advance of 2.28 per cent This more rapid advance in the price of the natural product than of the finished article is also illustrated by some tables pub- lished under the title of "Market Value of Farm Products in 1896 and 1903, when Measured by the Wholesale Price of Staple Arti- cles," which show that 10 bushels of corn which in 1896 was equal in value to 20.9 pounds of raw coffee, was equal in 1903 to 82.4 pounds of coffee of the same grade ; that 10 bushels of corn in 1896 would buy, in 1903, 56.9 pounds of sugar, and in 1903, 99.2 pounds ; of calico, in 1896, 49.1 yards, and in 1903, 91.4 yards ; of refined petroleum, in 1896, 24.8 gallons, and in 1903, 33.8 gallons ; and of 8-penny wire nails, in 1896, 88 pounds, and in 1903, 222 pounds; while tables showing the purchasing power of other natural prod- ucts, also presented, give similar results and are worthy of ex- amination. For table see pages 144 and 145. 248 THEODOBK BOOSEVELT. THEODORE ROOSEVELT. Theodore Roosevelt, unanimously nominated for the Presidency by the National Republican Convention at Chicago on June 23, L904, is without doubt, of all men living in the United States in those opening years of the twentieth century, the man best quali- fied by training and experience tor the high duties of the othee of Chief Executive. Training for great and varied responsibilities in life is of two kinds: — first, training in those qualities of mind, character, and personality that go to make up the man himself; and second, training in the subjects and the methods that relate to the business of the office in question. In both of these forms of preparation Theodore Roosevelt meets every test of fitness. Meas- ured along the line of the first test, namely, that of personal quali- ties, the speakers at the Chicago convention were not wrong in the tributes they paid to Mr. Roosevelt as — to quote from ex- Governor Black — "the highest living type of the youth, the vigor, and the promise of a great country and a great age." Senator Beveridge was right in characterizing Theodore Roosevelt as one "whose sympathies are as wide as the Republic ; whose courage, honesty, and vision meet all the emergencies, and the sum of whose qualities makes him the type of twentieth century Ameri- canism." Mr. Knight, of California, eulogized President Roose- velt's embodiment of American ideals, aspiration, and character, whose so-called "impulsiveness" is but the frank, decisive habit that comes to be the very essence of the character of a man in whose make-up "dishonesty,, cowardice, and duplicity have no part." Mr. Root closed his great speech as temporary chairman of the convention with a tribute to Mr. Roosevelt's personal quali- ties, and these are the concluding sentences of that memorable address : No people can maintain free government who do not in their hearts' value the qualities which have made the present President of the United States conspicuous among the men of his time as a type of noble manhood. Come what may here, come what may in November, God grant that those qualities of brave, true manhood, shall have honor throughout America, shall be held for an example in every home, and that the youth of generations to come may grow up to feel that it is better than wealth, or office, or power to have the honesty, the purity, and the courage of Theodore Roose- velt. His Character No Topic for Difference of Opinion. Theodore Roosevelt's character is no topic for difference of opinion "or for party controversy. It is without mystery or con- cealment. It has the primary qualities that in all ages have been admired and respected: physical prowess, great energy and vitality, straightforwardness, and moral courage, promptness in action, talent for leadership. But besides exhibiting these bolder constitu- ents of manhood that one finds in the best of Plutarch's men, and in the approved figures of all historic periods, Theodore Roosevelt has in his life of forty-six years, — a life lived openly and without any dark or hidden or regretted chapters, in the presence of a host of friends and fellow-citizens — remained constant and true in the possession and exercise of an added set of virtues, namely, those that the best American fathers and mothers must prize and desire for their own children. Thus Theodore Roosevelt, as a typical personality, has w r on the hearty confidence of the American people ; and he has not shrunk from recognizing and using his influence as an advocate of the best standards of personal, do- mestic, and civic life in the country. He has made these things relating to life and conduct a favorite theme in speech and essay, and he has diligently practiced what he has constantly preached. Thus he has become a power for wholesomeness in every depart- ment of our life as a people. A Training for High Public Duties. But President Roosevelt is not merely the man of trained and mature personality, — with a physical and mental capacity for con- tinuous work, with a power of concentration that never fails or THEODORE ROOSEVELT. 249 flags, with a vitality that never needs artificial stimulant, and with a strength of will as well as of body that is equal to any emergency. Another man might have these splendid attributes of personal manhood, yet be lacking in the kinds of knowledge and experience demanded by the highest executive office in the gift of any nation. A locomotive engineer, a soldier, or the captain of a lake schooner — all men, by the way, whom Theodore Roosevelt cordially respects — might possess an equal measure of Theodore Roosevelt's physical and moral courage, his native intelligence and his tempered self-control, but might lack altogether the knowl- edge of public affairs that would be requisite for high political office. On the other hand, there are men whose information re- garding American history, public policy, and statecraft might in some directions be even wider than President Roosevelt's, while lacking that rounded development of personal character that the people of this country earnestly wish to find in the man who oc- cupies the White House and stands before the world as their fore- most citizen and representative. Mr. Roosevelt is without question the highest authority in this country to-day upon the application of our laws and our system of government to the varied tasks of the Chief Executive. He has been before the public for almost a quarter of a cen- tury, always destined to great influence. Yet he has never been a conscious climber up the ladder of public preferment. He has never used one office as if it were a stepping-stone on the way to another. He has never taken up any public task without putting his whole energy into its performance as if it afforded the supreme opportunity for usefulness to his fellow-citizens. As Boy and Man. Theodore Roosevelt was born in New York October 27, 1858. His father was a greatly respected citizen of New York City, and his mother was from the State of Georgia. He graduated at Har- vard University in 1880. His health had not been good as a boy, but systematic physical training through the school and college period brought him out strong and well. He was always inter- ested in American history and politics, and entered almost imme- diately on leaving college upon the career which, without the slightest turning or deviation, he has pursued ever since. He found himself a Republican by inheritance and tradition, by asso- ciation, and by his own independent study of the course of our country's affairs. He determined to work within that party, be- lieving it to be an organization designed to promote the country's good, within which men might find sufficient freedom for the ad- vocacy from time to time of their own convictions, as policies might develop and new questions might arise. His first public service was in the New York Legislature, to which he was elected in 1881, and where he served for three consecutive terms. High Ideals in Regard to Public Service. He attained, almost immediately, a leading position through his frankness and courage. He saw dawning upon the horizon of practical politics two new and essential reforms. One was the substitution in place of the spoils system of a business-like and efficient civil service, and the other, in view of the rapid growth of our town life, was the improvement of the methods and char- acter of city government. With intelligence, courage, and convic- tion he threw himself into both of these lines of active reform work. Thus he wrote the original civil service law of the State of New York, and as a Republican carried it through the Legis- lature. He instituted an investigation into the conditions of municipal government in the metropolis of the country, and headed the committee that made the inquiry. Young Republicans all over the United States took note of this resolute new leader in the great Empire State, and said to one another, if he shows staying power we shall some day make him President. In 1884, young as he was, he appeared at the National Republican Convention as one of the four delegates at large from his State. Some of his most trusted and respected friends in New York and Massachusetts who had been prominent in the cause of civil service reform did not concur in the Republican choice of Mr. Blaine tot President, and launched an independent move- 250 THEODORE BOOSEVELT. ment. Mr. Roosevelt, however, adhered to the Republican party and supported the ticket, although Mr. Edmunds, rather than Mr. Blaine, had been his convention preference; and he set forth his position in a statement so clear and final upon the obligations and duties of party allegiance, that he would not to-day alter a single word Some Details of a Busy Life. In the twenty years from this conspicuous appearance of his at the convention of 1884 to the convention which nominated him In 1004 his position in the Republican party and in the country has been one of steady growth, until he lias now become firmly established as the highest authority in the party and the fore- most public man of the Nation. From his early days in college he had been a devoted student of the history, the geography, the de- velopment, and the life in all phases of this great country. While still a member of the New York Legislature he had acquired a ranch near the Montana line of North Dakota, where for several years he spent much of his time, participating actively in pioneer life, and gaining in practical ways an invaluable knowledge of the processes of evolution through which all American commonwealths have had to pass. His work as a student of books, meanwhile, was never dropped, even while he was most busily engaged in the affairs of current politics or in frontier activity. In 188G he was the Republican nominee for mayor of New York City, but was defeated by Mr. Abram Hewitt as the Tammany Democratic nominee, around whom certain conservative interests rallied in the fear that otherwise the third candidate, Mr. Henry George, might be elected. It was not until 1889 that Mr. Roosevelt again held an office; but he was meanwhile in more than one way an active and influ- ential figure in the busy life of the American people. In 1882 he had published his work on the second war with Great Britain, entitled "The Naval Operations of the War Between Great Britain and the United States, 1812-1815." This at once gave him a place among writers on American history and also among students of naval strategy. His next book, which appeared in 1886, was called "Hunting Trips of a Ranchman." During the following three years, when he had no official duties, he gave his best energy to the study of the history and development of the United States, and embodied that study in a series of volumes. So indus- trious was he, indeed, that he brought out in the years 1886-1889 (inclusive) no fewer than seven volumes that will stand perma- nently to his credit. It was in this period that he entered upon those remarkable studies of the conquest and settlement of the Mississippi Valley which have taken form in his four-volume work entitled "The Winning of the West," of which the first two vol- umes were given to the public in 1889. He had meanwhile in 1887 and 1888 contributed two volumes to the "American Statesman" series, one a life of Thomas H. Benton, the other a life of Gouve- neur Morris. In 1888, moreover, appeared his volume entitled "Es- says on Practical Politics," which has more recently been brought out with additional essays in the volume called "American Ideals." His second book on frontier life also appeared in 1888 under the title "Ranch Life and Hunting Trail." As Civil Service Commissioner. Mr. Roosevelt had always been interested in our foreign rela- tions, and was proposed for Assistant Secretary of State when President Harrison's administration began in 1889; but he was offered instead what seemed the less attractive position of civil service commissioner. He took the position cheerfully and held it for six years. During that period, serving under President Cleveland as well as President Harrison, he saw the methods of appointment in the United States almost completely transformed. His activity and energy in this great work of putting business-like method into the detail of the public services brought him into close contact with the machinery of government in all the depart- ments, and into relationship with cabinet officers, senators, mem- bers of Congress, and the whole personnel of administration. For a young man capable of taking on training, there could have been *}o better school than this for subsequent personal direction of THEODORE ROOSEVELT. 251 that great administrative machine. And when Roosevelt left the office Commission he had served his full apprenticeship and was fit for any public work, no matter what its responsibilities, that might bei assigned to him. As Police Commissioner of New York. He was in his thirty-seventh year when, early in 1895, Mayor Strong called him from Washington to take the presidency of the Police Board of New York City. He will be in his forty-seventh year when, early in 1905, the victor in the pending Presidential campaign will be inaugurated at Washington. In these ten years his career has led him upward and onward by swift bounds almost unprecedented in our political history; but the secret of his ad- vancement is to be found in the thorough ess of his previous training. As New York Police Commissioner he was called upon to show great strength of character in the observance of his oatk of office by enforcing unpopular laws. He left a permanent im- press upon the administration of the great metropolis. He helped to solve some of the most difficult police problems for all the cities of the country. As Assistant Secretary of the Navy. He was one of the first to foresee the inevitability of the war with Spain. He had done what he could for the Police Depart- ment of New York, and meanwhile a Republican administration was coming into power at Washington. He was appointed by Mr. McKinley as Assistant Secretary of the Navy, Hon. John D. Long, of Massachusetts, being head of that department. We were wholly unprepared for war either on land or by sea. Of all men connected with the administration Roosevelt most clearly per- ceived the fact that although armies may be made ready after war breaks out, navies must be prepared in advance or be worse than useless. When he began to enforce the necessity of training in marksmanship upon the navy, our standing in that regard was below that of all the leading naval powers. In less than two years, through the efforts of Theodore Roosevelt, our naval gun- ners led the world in skill and accuracy. His Service in the War With Spain. When the war broke out Roosevelt felt that his place was at the front, and that there was no longer need of his services in the Navy Department. He enlisted as a volunteer, was com- missioned with Dr. Leonard Wood to form the First Regiment of Volunteer Cavalry, known as "the Rough Riders," won honor at Santiago, and with fresh laurels returned from Cuba in the sum- mer of 1898 as a colonel, recommended by President McKinley for a brevet brigadier-generalship for gallantry on the field of action. As Governor of New York. The political pendulum was swinging strongly toward the Democratic- side in the affairs of New York State. A large sum of money had been spent to deepen the Erie Canal without effect- ive results, and public opinion had condemned the Republican party. In this emergency Roosevelt was the only man in sight who offered the Republicans any chance at all. He was nomi- nated without conditions, promised the people to investigate the canal situation thoroughly and to expose and punish whatever wrong-doing he might find, and carried the State triumphantly because the people had faith in him. His administration as gov- ernor was noteworthy for its efficiency in managing the affairs of the Empire State, and for its promotion of several needed reforms. He appointed the charter commission which gave the metropolis its present revised system of government; he selected the tene- ment house commission which extended the housing reforms that he had begun as police commissioner ; he undertook to unify the control of public educational work in the State; he secured the passage of the far-reaching franchise tax law; he presented to the Legislature the most statesmanlike messages upon the regula- tion of trusts and corporations and various taxing reforms that were produced in any State during that period,— and he had be- fore him the certain prospect of a triumphant reelection as gover- nor for a second- term in the autumn of 1900. 252 THEODORE ROOSI \ I I 1 A» Vice President. His victory of 1898, however, had everywhere attracted atten- tion to his availability for the national ticket two years later. Mr. Mckinley's renomination was conceded, ami the Republicans of the country, especially in the West, were already talking of Theodore Roosevelt as their probable candidate for 1904. He ap- peared at the Philadelphia convention at the head of the New York delegation just as he had appeared sixteen years previously at Chicago. Not only was he the most popular personal figure in the convention, but he was regarded by a large proportion of the dele- gates, for a series of reasons, as the most desirable man to be associated with Mr. MeKinley on the ticket. Hence the nomina- tion which he Bought to avoid, but accepted when it came as the mandate of the party. He entered upon the work of the cam- paign with great enthusiasm, and his work as a speaker was more effective than that of any 'other member of his party. The cam- paign over, he quietly resumed his literary work (he had already written in 1898 his famous book, "The Rough Riders," and while governor wrote a characteristic life of Oliver Cromwell), visited the Rocky Mountains and wrote a remarkable description of the hunting of the cougar, and so — in place of his expected second term in the intense activities of the governorship of New York — he reconciled himself to the prospects of four years of quiet, self- repressed, observant, and studious life in the dignified office of Pice-President. Taking Up the Work Laid Down by President MeKinley. A brief extra session had given him opportunity in his new official capacity to preside over the Senate. The first regular session of Congress was not to begin until December, 1901. In September, however, the bullet of the assassin made vacant the great office so ably and honorably filled by President MeKinley, and on September 14, 1901, at Buffalo, Theodore Roosevelt took the oath of office as President of the United States, informing the country that it was his purpose to take up the work as Mr. Me- Kinley had laid it down. He has been unfailingly true to that promise. No previous Vice-President ever came into power through the death of the President without almost immediately calling about him a new cabinet and adopting methods and poli- cies of his own. Mr. Roosevelt, with an individuality as strong as that of any other man of his day, was able to adjust himself at once to the personnel and to the policies of the MeKinley administration, while sacrificing not one whit of his own personality, and while fixing in every direction the impress of his own distinctive meth- ods. Mr. McKinley's cabinet remained with him to a man, one or two of them who had expected to retire — Mr. Gage, Mr. Long, and Mr. Smith, for example — keeping their places longer than they otherwise would have done. Mr. Root, Mr. Hay, and Mr. Knox had the same freedom of opportunity to carry on their great de- partments as under Mr. MeKinley himself. Mr. Hitchcock and Mr. Wilson held steadily on their respective courses. There was unity in the cabinet, there was good-will between the Administra- tion and both Houses of Congress, and there was harmony and enthusiasm in the party at large. Senator Hanna, as chairman of the National Committee and an influential figure in Congress, remained in close and confidential relations with the new Presi- dent to the day of his lamented death. His Nomination in 1904 a Foregone Conclusion. Under these circumstances, with the unshaken confidence of the masses of the people and with the enthusiastic support of the unofficial rank and file of the Republican voters, President Roose- velt's nomination at Chicago in 1904 was a foregone conclusion, even though it had never happened before that a President who had come into office to fill an unexpired term had been his party's choice for reelection. Some of the Achievements of President Roosevelt's Administration. Under President Roosevelt's administration a series of great achievements can be named, and these will constitute a large THEODORE ROOSEVELT. 253 part of the claim that the Republican party makes in this year's campaign for another lease of power. President McKinley had undertaken to create a new and stable republic in the island of Cuba, having intimate relations with this country, for our own advantage and for the best welfare of the people of the island. President Roosevelt completed that task; insured the prosperity of Cuba by a mutually advantageous treaty of commercial reciprocity ; established on the south coast of Cuba a great naval station commanding the Caribbean Sea, and thus put the stamp of completion upon one of the most brilliant and highly creditable chapters in the statesmanship of any nation. We had not gone to Cuba to make war, but to establish peace ; and it has been Theodore Roosevelt's good fortune to play a leading part in the beginning and the ending of that proud episode. The Philippines. Again, through Secretary Root, Judge Taft, and their associ- ates and successors President Roosevelt has given permanence to the lines of humane and progressive policy for the Philippines, promoting education and self-government by every possible means, and working steadily towards the prosperity of the islands. His remarkable knowledge of army affairs enabled him to cooperate the more successfully with Secretary Root in the reorganization of our military system. His intimate knowledge of naval affairs has given the country as well as Congress a very general confi- dence in the policy of naval enlargement and efficiency that has been adhered to through his administration. The Monroe Doctrine. No one understands so well as President Roosevelt the manner in which a strong navy insures peace for this country. It was the strength of our navy which made it comparatively easy for the President to prevail upon Germany and England to withdraw from their blockade of Venezuela and to submit all points in con- troversy to settlement by arbitration. In dealing with the various aspects of this Venezuela question the principles of the Monroe Doctrine were accepted and strengthened, and the prestige of the United States as a just and disinterested arbiter in Western Hemi- sphere affairs was advanced to a point never before reached. President Roosevelt was besought to take upon himself the arbi- tration of certain phases of the Venezuela dispute, but he sent the case to The Hague, thereby contributing the greatest practical aid to the cause of a permanent tribunal. The settlement of the Alaska boundary on the basis of the findings of an Anglo-Ameri- can commission was also a great triumph of statesmanship for which President Roosevelt is entitled to the highest credit. The Isthmian Canal. The Venezuela and Alaska situations exemplified talent of the highest order in the settlement of critical foreign questions. But, to many minds, the crowning achievement of Mr. Roosevelt and his administration has been the removal of all the series of vexa- tious obstacles that lay in the way of beginning the construction of the Isthmian Canal. No man in the United States has been more strongly impressed for many years than President Roosevelt himself with the necessity of keeping the Isthmian Canal under the political sovereignty and control of the United States Govern- ment. His views on this subject were frankly expressed and highly influential in the final shaping of the negotiations with England for the abrogation of the Clayton-Bulwer Treaty. When it seemed best to give up the Nicaragua route, President Roosevelt stood firmly for a proper measure of American jurisdiction over the Panama zene. At every step of the negotiations, first with Colombia and then with Panama, his course was marked by good faith in the highest degree and disinterested statesmanship with- out a flaw or stain. The final outcome, that of an independent republic at Panama closely allied with the United States, was the best solution, probably, that could have been found, whether for North America, South America, or the commercial nations of 254 THEODORE ROOSEVELT. Kurope ; and the citizens of Colombia itself are already perceiving that this was the best solution for them, and that they are now certain to have all the benefits of a canal on the most favored terms, without any of the dangers, costs, or responsibilities. With his characteristic foresight and intelligence, the President has already provided for the thorough sanitation of the canal zone, has appointed a splendidly qualified board of commissioners to construct the canal, and has arranged for the effective policing and government of the ten-mile strip. If reelected, he will astonish the world by the vigor, efficiency, and essential economy with which he will prosecute this greatest of all engineering tasks. Foreign Relatlonii. In his proclamations enjoining neutrality in the war between Russia and Japan, President Roosevelt has shown great tact as well as a correct sense of our position under international law. His leadership in securing from all great powers, including the combatants themselves, the territorial restriction of the war, will go upon the record as one of the most beneficent services in the history of American diplomacy. His promptness in defending American rights, whether in Turkey, Morocco, Santo Domingo, or elsewhere, has promoted peace and good-will rather than ani- mosity. Under his administration our relations with all nations, foreign governments, and peoples have been advanced to the highest point of friendliness and mutual respect ever attained since the beginning of our national life. Internal Administration. In the work of internal administration President Roosevelt has shown himself, on the one hand, thorough in routine and a master of detail ; on the other hand, strong and constructive in policy. His whole training had made him preeminently fit for the direction of the machinery of the immense executive business of government. Under him the departments have reached their highest pitch of efficiency. Never before has the work of skilled and competent men been so much in demand or so heartily ap- preciated. Never before have the unworthy and the incompetent been so unsparingly shut out from the governmental services. In the Post-Offlce Department there had survived and developed in certain special parts of the vast organization some favoritism, some fraud, and some flagrant dishonesty as the bad fruitage of a spoils system for which both parties must share the blame. These evil conditions had escaped the vigilance of two or three Con- gressional investigations ; but President Roosevelt has brought them to the light, sparing no culprit, however well connected or influentially surrounded. Thus the people know that in him they have an executive unequalled in the reduction of the public service to a basis of honesty, efficiency, and intelligent economy. It is a great thing to be able to grasp details as well as to formulate principles ; and to know how to select men as well as to understand the tasks to which they are assigned. But Presi- dent Roosevelt, who excels in acting as Uncle Sam's foreman in running every branch of his great business, has also shown a re- markable talent for domestic statesmanship and for the initiating of new and better methods. Thus he has thrown himself into the task of improving Uncle Sam's physical domain, and as a result we have the new irrigation policy which is to add to the Nation's wealth, population, and contentment more than any man can now well estimate. We have also the new forestry policy, and many other matters of note belonging in particular to the departments of Secretary Wilson and Secretary Hitchcock, having to do with the country's material welfare and progress. The New Department of Commerce and Labor. One of the greatest constructive achievements of President Roosevelt's administration has been the setting up of a new cabi- net department, that of Commerce and Labor. This department groups together in a convenient way a number of public services already existing, and in addition it enables the Government to utilize more effectively its constitutional power to regulate com- merce between the States for the well-being of the people and, THEODORE ROOSEVELT. 255 further, to promote not only the country's prosperity in industry and commerce, but also its harmony in the relations between the different factors of production. Difficult Problems Well Solved. In everything let it be said that, wherein it has fallen to the President's lot to deal with problems affecting the relations of capital and labor, he has not failed to show the highest qualities of courage and the highest sense of justice, but he has at all times upheld the dignity and the supremacy of the national Gov- ernment. The anthracite coal strike reached a point where it became a grave national emergency, and the President found a way to settle it which did not strain in the slightest degree his official prerogative, while it contributed greatly to the prestige of the Government, reassured the public, and fixed a noble precedent in favor of arbitration at a moment when the strain between labor and capital was the greatest ever known in this country. Enforcement of the Sherman Anti-Trust Law. The measures taken by the President through the Attorney- General's office for the enforcement of the Sherman anti-trust law, however important they were as respects the particular matters in dispute, found their greatest importance, after all, in the assur- ance they gave that the law is still supreme in this land, that the President as Chief Magistrate will enforce the law against the greatest corporation as well as against the criminal who breaks open a letter-box, and that the highest courts, when entered under •the President's instruction by an energetic Department of Justice, will interpret the laws without fear or favor. Unfailing in His Sense of Justice. President Roosevelt has been unfailing in his sense of public dignity and justice. He has reposed the fullest confidence in his associates in executive office, and has gloried in their effective devotion to their work, relying upon them and leaving them un- hampered, while himself always in the fullest sense the President and the leader. His has been an administration without fads, without favorites, and without scandals. In army and navy pro- motions, as well as in all appointments to civil office, he has per- formed his duty with sole regard to the country's welfare, and with a freedom from bias or mere personal leaning that has never been surpassed if ever before equalled in the administration of any American President. He Knows the Country and Its People. He knows the country and all its interests and resources from North to South and from East to West. He knows the plain peo- ple, in person and in type, as well as he knows their leaders in industry and education, in church and state. He has no quarrels ; he bears no grudges ; he is willing and anxious to work with all men who will deal honorably and faithfully. He knows the his- tory of labor, recognizes the services that have been rendered by associations of working men for mutual benefit, and is so confident in his sense of good faith in all his dealing with the problems of labor and capital, that he has no fear of being misunderstood when he speaks with perfect frankness upon questions as they arise. He knows the Indians and sees that they have justice. He knows the difficulties that beset the race problem in the South, but he also holds that in ethics, as under the Constitution and laws of the United States, a man is a man, no matter what the color of his skin. He Holds the Man Higher than the Dollar. While believing that the rights of property must be regarded and conserved, he holds the man higher than the dollar. He sees that in a country like ours, the radical and the conservative alike must demand of. their chief executive that he maintain the law as first and supreme over rich and poor alike. 256 THEODORE ROOSEVELT. An Example to the Yonng Men of the Country. To the young men of the country, President Roosevelt sets an example of the value of a sound mind in a sound body. His career helps them to see the practical worth of industry, of sys- tem, of temperate living; and helps them to perceive that faith in the highest public and private ideals still holds sway in our places of highest honor and power. IN BEHALF OF RAILWAY EHPLOYES— 7 ^E SAFETY AP- PLIANCE LAW. President Roosevelt has been especially active in his efforts to preserve the integrity of laws passed for the protection of wage workers, and has insisted that such laws be impartially and effectively executed. His efforts in behalf of railway employes deserve special mention. In 1893 the Safety Appliance Law, Car Coupler Bill, as it is sometimes called, was passed by a Republican congress. This legislation was persistently opposed by Democrats at previous sessions of Congress, and Senator Gorman and other prominent Democrats worked and voted against the bill as finally passed. The main purpose of this law was protection for the lives and limbs of railway employees, and it has proved of great benefit to this class of wage-workers. As has been the case with almost all legislation of this char- acter, experience disclosed certain defects in the law, and showed that it was impossible to obtain the full benefit contemplated by its framers without the enactment of certain amendments, which were proposed. President Roosevelt took a lively interest in this law, and interested himself actively in the passage of the proposed amendments, calling attention to the matter in his Message to Congress, under date of December 2, 1902, as follows : The safety appliance law for the better protection of the lives and limbs of railway employees, which was passed in 1893, went into full effect on August 1, 1901. It has resulted in averting thousands of casualties. Experience shows, however, the neces- sity of additional legislation to perfect this law. A bill to provide for this passed the Senate at the last session. It is to be hoped that some such measure may now be enacted into law. The friends of the law were much indebted to President Roose- velt for invaluable assistance in furthering the passage of these amendments, which finally passed both Houses of Congress, and received the President's approval on March 2, 1903. From the standpoint of a proper administration of the law the passage of these amendments had become a necessity, owing to a decision of the United States Circuit Court of Appeals in the case of W. O. Johnson vs. The Southern Pacific Company. This case was an action in which the plaintiff, Johnson, a freight brakeman in the employ of the railroad company, sought to recover for the loss of an arm. He was injured while attempting to couple a locomotive onto a dining car with an ordinary link and pin, con- trary to the spirit and letter of the safety appliance law, and his case involved a construction of that law, particularly the second section of it, which makes it unlawful for any common carrier "to haul or permit to be hauled or used on its line any car used in moving interstate traffic not equipped with couplers coupling auto- matically by impact, and which can be uncoupled without the necessity of men going between the ends of the cars." In the trial court the case was taken from the jury and a ver- dict ordered for the defendant company, whereupon Johnson, rely- ing on the justice of his cause and with confidence in the law that had been enacted for his protection, collected all of his scanty resources and took the case to the United States Circuit Court of Appeals, on appeal from the action of the trial judge. In its dis- position of the case the Circuit Court of Appeals sustained the action of the court below, and in an elaborately written opinion placed such a construction upon the law as to nullify it in impor- tant particulars and render it useless for the purpose intended by its framers, namely, protection for the lives and limbs of railway employees. Ordinarily this decision would have ended the case, as the decisions of the Circuit Court of Appeals are final in such cases, and Johnson, being penniless and without influence, seemed to have no alternative but submission. As a last resort, however, a THEODORE ROOSEVELT. 257 petition for a writ of certiorari was submitted to the Supreme Court of the United States in his behalf. Because of the interest of the Government in the construction given by the Circuit Court of Appeals to the car coupler act, the Attorney-General, by direc- tion of the President, intervened in the case before the Supreme Court and submitted reasons of a public nature why the case should be reviewed by that court. The Supreme Court granted the writ, and the case will be heard early in October next. It is believed that this is the first instance in the history of the country wherein a court has construed a public statute in a private case in such a way as to nullify the statute, and in which the Government has intervened to protect the integrity of the law. The plaintiff in this case is a poor brakeman. He had used all his money in litigation, and was without means to carry the case fur- ther even had he been granted the right to do so; and had the Government not become interested in his case through the action of the President he must have submitted to the decision of the court and given up all hope of securing redress of his injury. But through the action of the President and his able Attorney- General he is given an opportunity to have his case heard by the highest tribunal in the land, and it will be so ably and fully pre- sented to the court by the officers of the Government that he will be assured of a proper disposition of his case. Another important case under this law in which the President has demonstrated his sympathy for wage-workers and his interest in the laws that have been passed for their protection, is that of Voelker vs. The Chicago, Milwaukee & St. Paul Railway Co., re- cently decided by the Circuit Court of Appeals for the eighth cir- cuit. Voelker was a switchman in the employ of the railroad com- pany, and in the discharge of his duties he was crushed to death between the drawbars of two cars while endeavoring to adjust a defective coupler so that it would operate as the law directs. His widow brought suit against the railroad company to recover for his death, and a jury in the trial court rendered a verdict in her favor on which judgment was rendered. The railroad company carried the case to the United States Circuit Court of Appeals in an effort to set aside the judgment of the lower court, and as a construction of the law in vital particu- lars was involved it became important that the case should be properly presented to the court. For the protection of railway employees it was necessary that the integrity of the law should be sustained, and by direction of the President the Attorney-General asked leave to intervene and file a brief in the case, in order that the court should be fully informed concerning the scope and intent of the law. The opinion of the Circuit Court of Appeals sustains the law completely, and places such a construction upon its terms that railway employees may now feel that they have a sound and efficient law to protect their interests, and that a beneficent gov- ernment is watchful to see that they are not exposed to unneces- sary hazard in the pursuit of their dangerous calling. This has been accomplished by the watchful care of the Presi- dent and his zeal in seeing that rich and poor alike are given the protection intended to be accorded them by the laws of their com- mon country. The true solution of the questions arising between labor and capital lies in an awakened public conscience.-— Hon. C. W. Fair- banks, at Kansas City, Mo., September 1, 1902. There are more than twenty-five thousand local labor unions in the United States, with a membership of more than two millions. What infinite good can he accomplished by this mighty army of peace and industry if held true to its opportunity. — Hon. C W. Fairbanks, at Kansas City, Mo., September 1, 1902. We want no slave labor. Two million men, with their blood, wiped away slavery forever. We want no labor, either white or black, in a virtual state of serfdom. Labor must be free, with all the prerogatives which pertain to freedom. — Hon. C. W. Fairbanks, at Kansas City, Mo., September 1, 1902. 258 LABOR RECORD OF THEODORE ROOSEVELT. LABOR RECORD OF THEODORE ROOSEVELT. "The most vital problem with which this country, and for that matter the whole civilized world, has to deal is the problem which has for one side the betterment of social conditions, moral and physical, in large cities and for another side the effort to deal with that tangle of far-reaching questions which we group together when we speak of labor." — President Roosevelt's first message to Congress. Epitome of Theodore Roosevelt's Favorable Action on Labor i Legislation. As member of assembly in New York he voted for bills — Abolishing tenement-house cigar making in New York City. Restricting child labor in factories and workshops. Regulating the labor hours of minors and women in manufac- turing establishments. Safeguarding the lives and limbs of factory operatives. Regulating wage rates of laborers employed by municipalities. Making employees preferred creditors. Providing for building mechanics' liens. Prescribing the lien rights of working women. Protecting mechanics and laborers engaged in sinking oil or gas wells. Abolishing contract child labor in reformatory institutions. Creating a commission to examine into the operation of the contract system of employing convicts. Establishing the bureau of labor statistics. To promote industrial peace. For a five-cent fare on the New York City elevated railroad. Incorporating the New York City Free Circulating Library. For free public baths in New York City. As governor of New York he approved these measures: Creating a tenement- house commission. Regulating sweat-shop labor. Empowering the factory inspector to enforce the scaffolding law. Directing the factory inspector to enforce the act regulating labor hours on railroads. Making the eight-hour and prevailing-rate-of-wages laws ef- fective. Amending the factory act — (1) Protecting employees at work on buildings. (2) Regulating the working time of female employees. (3) Providing that stairways shall be properly lighted. (4) Prohibiting the operation of dangerous machinery by chil- dren. (5) Prohibiting women and minors working on polishing or buffing wheels. (6) Providing for seats for waitresses in hotels and res- taurants. Shortening the working hours of drug clerks. Increasing the salaries of New York City school-teachers. Extending to other engineers the law licensing New York City engineers and making it a misdemeanor for violating the same. Licensing stationary engineers in Buffalo. Providing for the examination and registration of horseshoers in cities. Registration of laborers for municipal employment. Relating to air brakes on freight trains. Providing means for the issuance of quarterly bulletins by the bureau of labor statistics. In addition to the foregoing, while governor of New York he recommended legislation (which the legislature failed to pass) in regard to — Employers' liability. State control of employment offices. State ownership of printing plant. LABOR RECORD OF THEODORE ROOSEVELT. 259 Devising means whereby free mechanics shall not be brought into competition with prison labor. As President of the United States he has signed bills — Renewing the Chinese-exclusion act and extending its pro- visions to the island territory of the United States. Prohibiting the employment of Mongolian labor on irrigation works and providing that eight hours shall constitute a day's labor on such projects. Abolishing slavery and involuntary servitude in the Philippine Islands, violation of the act being punishable by forfeiture of con- tracts and a fine of not less than $10,000. Protecting the lives of employees in coal mines in Territories by regulating the amount of ventilation and providing that en- tries, etc., shall be kept well dampened with water to cause coal dust to settle. Exempting from taxation in the District of Columbia house- hold belongings to the value of $1,000, wearing apparel, libraries, school books, family portraits and heirlooms. Requiring proprietors of employment offices in the District of Columbia to pay a license tax of $10 per year. Creating the Department of Commerce and Labor and making its head a Cabinet officer. Improving the act relating to safety appliances on railways. Increasing the restrictions upon the immigration of cheap for- eign labor and prohibiting the landing of alien anarchists. Union Labor In Government Work. In his first message to Congress, in 1901, President Roosevelt recommended that "provision be made to render the enforcement of the eight-hour law easy and certain," and also that the Govern- ment should provide in its contracts that all work for it should be done under "fair" conditions. By this expression it is understood that the President meant that no contract should be given or no contractor employed by the Government who would not agree to pay the union scale of wages ; in other words, no contractor should, in any way, be allowed to obtain a contract from the Government by lessening the price paid the employees for their labor to a point less than the "fair" or union scale of wages or by working more than the usual number of hours per day which had been fixed for the trade. While thus favoring the union standard of wages and hours in Government work the President recognizes the illegality of any discrimination, for or against members of a union. Thus in the case of William A. Miller, who complained that he was removed from his position of assistant foreman in the Government Printing Office, in violation of the civil-service law, because he had been expelled from Local Union No. 4, of the International Brother- hood of Bookbinders, the President ordered Miller's reinstatement and explained the rule governing public employment in the follow- ing communication to Secretary Cortelyou, in whose charge the President placed the investigation : Oyster Bay, N. Y, July 13, 1903. My Dear Secretary Cortelyou: In accordance with the letter of the Civil Service Commission of July 6, the Public Printer will re- instate Mr. W. A. Miller in his position. Meanwhile I will with- hold my final decision of the whole case until I have received the report of the investigation on Miller's second communication, which you notify me has been begun to-day, July 13. On the face of the papers presented, Miller would appear to have been removed in violation of law. There is no objection to the employees of the 'Government Printing Office constituting themselves into a union if they so desire, but no rules or resolu- tions of that union can be permitted to override the laws of the United States, which it is my sworn duty to enforce. Please communicate a copy of this letter to the Public Printer for his information and that of his subordinate. Very truly, yours, Theodore Roosevelt; Hon. George B. Cortelyou, Secretary ofCommerce and Labor. Oyster Bay, N. Y., July 14, 1903. My Dear Mr. Cortelyott: In connection with my letter of yes- terday, I call attention to this judgment and award by the Anthra- cite Coal Strike Commission to its report to me of March 18 last: "It is adjudged and awarded that no person shall be refused employment or in any way discriminated against on account of 260 LABOR RECORD ol- t'HKOIH>KK KOOSEVELT. membership or nonmembership to any labor organization, and that tlure shall be no discrimination against or interference with any employee who is not a member of any Labor organisation by mem- bers of such organization." I heartily approve of this award and judgment by the Com- mission appointed by me, which itself included a member of a labor union. This Commission was dealing with labor organiza- tions working for private employers. It is, of course, mere ele- mentary decency to require that all the Government Departments shall be handled in accordance with the principle thus clearly and fearlessly enunciated. I Please furnish a copy of this letter both to Mr. Palmer and to the Civil Service Commission for their guidance. Sincerely yours, Theodore Roosevelt. Hon. George B. Cortelyou, Secretary of Commerce and Labor. Mr. Palmer, the Public Printer, on Wednesday, July 1G, notified Mr. Miller that he had been reinstated and might report for duty any day. On September 29, 1903, the President gave a hearing to mem- bers of the executive council of the American Federation of Labor on the subject of pending labor legislation, at which he announced his final decision in the Miller case and at the same time explained his preference for the "union shop" in private employment. The president of the American Federation of Labor in an address, issued on the succeeding day, to organized labor of America, thus described President Roosevelt's attitude: Replying to statements on the subject, President Roosevelt set forth that in his decision he had nothing in mind but a strict compliance with Federal, including civil service, law and that he recognized a difference between employment by the Government, circumscribed by those laws, and any other form of employment, and that his decision in the Miller case should not be understood to have any other effect or influence than affecting direct employ- ment by the Government in accordance ■ therewith. He further- more made plain that in any form of employment excepting that so circumscribed he believed the full employment of union men Was preferable either to nonunion or open shops. Following is the official account of the hearing : September 29, 1903. Pursuant to the request of Samuel Gompers, president of the American Federation of Labor, the President granted an interview this evening to the following members of the executive council of that body: Mr. Samuel Gompers, Mr. James Duncan, Mr. John Mitchell, Mr. James O'Connell, and Mr. Frank Morrison, at which various subjects of legislation in the interests of labor, as well as Executive action, were discussed. Concerning the case of William A. Miller, the President made the following statement: "I thank you and your committee for your courtesy, and I ap- preciate the opportunity to meet with you. It will always be a pleasure to see you or any representatives of your organizations or of your federation as a whole. "As regards the Miller case, I have little to add to what I have already said. In dealing with it I ask you to remember that I am dealing purely with the relation of the Government to its employees. I must govern my action by the laws of the land, which I am sworn to adminster, and which differentiate any case in which the Government of the United. States is a party from all other cases whatsoever. These laws are enacted for the benefit of the whole people, nd can not and must not be construed as per- mitting discrimination against some of the people. I am President of all the people of the United States, without regard to creed, cclor, birthplace, occupation, or social condition. My aim is to do equal and exact justice as among them all. In the employment and dismissal of men in the Government service I can no more recognize the fact that a man does or does not belong to a union, as being for or against him, than I can recognize the fact that he is a Protestant or a Catholic, a Jew or a Gentile, as being for or against him. "In the communications sent me by various labor organiza- tions protesting against the retention of Miller in the Government Printing Office the grounds alleged are twofold: First, that he is a nonunion man; second, that he is not personally fit. The question of his personal fitness is one to be settled in the routine of ad- ministrative detail, and can not be allowed to conflict with or to complicate the larger question of governmental discrimination for or against him or any other man because he is or is not a member of a union. This is the only question now before me for decision, and as to this my decision is final." In the foregoing statement of policy President Roosevelt merely reiterated his well-known conviction that the law must be admin- istered with absolutely no discrimination. LABOB EECOED OF THEODOBE BOOSEVELT. 261 The President and the Coal Strike of 1902. The President has frequently emphasized the need of more sym- pathy between employers and employees and deprecated the culti- vation of class feeling with its resulting antagonisms. The appointment of the commission, which resulted in the ter- mination of the great coal strike of 1902, is perhaps President Roosevelt's most widely known and generally appreciated contri- bution toward the improvement of industrial relations. When the efforts of all other peacemakers had come to naught and the coal famine remained unbroken at the near approach of winter, Mr. Roosevelt, as a representative American citizen, pleaded with the operators and miners to terminate their dispute and resume the raining of coal. Public opinion supported his action so strongly that both sides to the dispute agreed to resume work and leave to a commission to be appointed by the President the determination of the conditions of employment concerning which they had been unable to agree. The President's commission not only adjusted the dispute in the coal regions, but in so doing formulated prin- ciples of very general application to the organization of industry at the present time. The immediate effect of the commission's appointment was, as the President has himself stated, "of vast and incalculable benefit to the nation, but the ultimate effect will be even better if capitalist, wage- worker, and lawmaker alike will take to heart and act upon the lessons set forth in the report" of the commission. The coal industry is typical of all the great in- dustries of to-day that are organized on the principle of large-scale production, and its treatment of the labor problem is therefore highly illuminative. Under the influence of a vast stream of immigration of Poles, Hungarians, and Slavs into the coal regions during the last two or three decades wages had steadily declined. The American miners saw their own standard of living threatened by the lower standards brought from central Europe unless they could induce these newcomers to unite with them in an effort to put an end to the incessant underbidding for employment. In 1897 they brought their organization, the United Mine Workers, to such a state of perfection that it dominated the labor situation in the bitumin- ous regions and met the employers' associations on an equality in the annual settlement of the terms of employment. In 1899 the organization spread to the anthracite regions and the next year was able to secure a 10 per cent, advance in wages, after a com- paratively short strike that was supported as heartily by the miners outside the union as by the minority at that time in the union. As a consequence of this triumph a vast majority of the miners joined the organization, which thereupon sought to represent the miners in making terms with the employers' agents at annual con- ferences such as were held with the bituminous operators. The denial of this request by the officers of the mining corporations nearly brought on another strike in 1901, and when early in 1902 a similar request, accompanied with a demand for an advance in wages, etc., was once more denied, industrial peace could no longer be preserved. The operators even refused the union's offer to sub- mit its demands to the arbitration of the National Civic Federa- tion or other arbitrators, and a week later a delegate convention of the anthracite mine workers voted to continue the strike ordered on May 12. In obedience to this decision, says the commission, "nearly the entire body of mine workers, which numbers about 147,000, abandoned their employment and remained idle until the strike was called off by another convention," that is, until Octo- ber 23, 1902. With the progress of summer and the failure of all mediatory efforts to adjust the differences between the miners and the oper- ators the scarcity of fuel made itself felt. Many factories that were dependent upon anthracite had to shut down, throwing large numbers of working people out of employment, and the famine prices at which coal was sold almost prohibited its use for domes- tic purposes by the poorer families. As cold weather approached the President felt himself virtually compelled to act in order to avert unexampled distress throughout all eastern communities that depended upon anthracite coal for domestic heating purposes. On October 1 he telegraphed an invitation to the presidents of the 262 I Aiiou KKCOBD OP THEODORE ROOSEVELT. Ave coal railroad companies, a prominent individual operator, and the president of the miners' organization to confer with him "in regard to the failure of the coal supply, which had become a mat- ter of vital concern to the whole nation." To these seven persons, who met the President at the White House on October 3, Mr. Roosevelt said: I wish to call your attention to the fact that there are three parties affected by the situation in the anthracite trade — the oper- ators, the miners, and the general public. I speak for neither the operators nor the miners, but for the general public. The ques- tions at issue which led to the situation affect immediately the parties concerned — the operators and the miners — but the situa- tion itself vitally affects the public. As long as there seemed to be a reasonable hope that these matters could be adjusted between the parties, it did not seem proper to me to intervene in any way. I disclaim any right or duty to intervene in this way upon legal I grounds or upon any official relation that I bear to the situation, but the urgency and the terrible nature of the catastrophe impend- ing over a large portion of our people in the shape of a winter/ fuel famine impel me, after much anxious thought, to believe that my duty requires me to use whatever influence I personally can to bring to an end a situation which has become literally intolerable! I wish to emphasize the character of the situation and to say that its gravity is such that I am constrained urgently to insist that each one of you realize the heavy burden or responsibility upon you. * * * I do not invite a discussion of your respective claims and posi- tions. T appeal to your patriotism, to the spirit that sinks per- sonal considerations and makes individual sacrifices for the gen- eral good. At the conclusion of the President's remarks Mr. Mitchell re- plied as follows: Mr. President, I am much impressed with what you say. I am impressed with the gravity of the situation. We feel that we are not responsible for this terrible state of affairs. We are willing to meet the gentlemen representing the coal operators to try to adjust our differences among ourselves. If we cannot adjust them that way, Mr. President, we are willing that you shall name a tribunal who shall determine the issues that have resulted in this strike; and if the gentlemen representing the operators will accept the award or decision of such a tribunal, the miners will willingly accept it, even if it is against their claims. The President then put an end to the interview and asked both parties to think over what he had stated and return in the after- noon. Upon reassembling the operators made long statements of their side of the case ; but in reply to the President's inquiry whether they would accept Mr. Mitchell's proposition they an- swered "No." In response to a further question from the Presi- dent they stated that they would have no dealings whatever with Mr. Mitchell looking toward a settlement of the question at issue and .that they had no other proposition to make, save what was contained in the statement of Mr. Baer, which, in effect, was that if any man chose to resume work and had a difficulty with his employer, both should leave the settlement of the question to the judge of the court of common pleas of the district in which the mine - was located. In view of the growing public demand for the resumption of coal mining, however, the operators reconsidered their refusal to arbitrate their dispute with the miners, and a few days later pro- posed that it be settled by a commission of five, to be appointed by the President, and to be composed of an officer of the Army or Navy, an expert mining engineer, a United States circuit court judge from Pennsylvania, a sociologist, and a man who had been in the coal business. As the last-mentioned member would come from the ranks of the employers, the miners naturally demanded a modification of the operators' proposition, which should allow them a representative on the Commission. When the Commission was appointed on October 16 it therefore consisted of six members, and by the subsequent addition of the United States Commissioner of Labor its final composition was as follows: Brig. Gen. John M. Wilson; Edward M. Parker, of the United States Geological Survey; Judge George Gray, of the United States circuit court of the eastern district of Pennsylvania ; Bishop John L. Spaulding, of the Catholic Church; Thomas H. Watkins, a retired coal operator; Edgar E. Clark, chief of the Order of Railway Conductors, and Hon. Carroll D. Wright On October 21 a convention of the miners voted to submit all the questions at issue to this commission and to resume work on Oc- tober 23. The presidents of the anthracite coal roads agreed to LABOR RECORD OF THEODORE ROOSEVELT. 263 abide by the decision of the commission, and in the course of its proceedings the leading independent operators and the nonunion miners also became parties to the arbitration agreement, so that the board's awards, when announced on March 18, 1903, covered virtually the entire anthracite mining industry. The four demands of the miners were for an increase of 20 per cent, in the piece rates paid to contract miners, the rates to be based on weight of the coal instead of the carload, a reduction of 20 per cent, (from ten to eight hours a day) in the hours of labor of workmen employed by the day, and the recognition of the union ^y the establishment of a joint trade agreement between the rep- resentatives of the employers and employed. The commission com- )romised on the matter of wages by awarding an increase of 10 par cent, with additional increases under a sliding-scale system vhen the market price of coal rose above the existing level ; a re- duction in hours from ten to nine; the establishment of a joint b:>ard of conciliation, representing employers and employed, to decide disputed questions during the life of the award (to March 31 1906). The advance in wages took effect November 1, 1902. Notwithstanding the importance of the wages question, the reilly fundamental point at issue was the recognition of the right of collective bargaining— that is, the right of the workingmen to combine and choose representatives to make an annual bargain or contract with the company officials (the representatives of the stockholders or employers) concerning the conditions of employ- ment, as is the practice in the bituminous trade, on the great '.•ailway systems, and in large-scale manufacturing. While deny- ing in terms the miners' demand for "the incorporation in an agreement between the United Mine Workers and the anthracite coal companies of the wages which shall be paid and the condi- tions of employment which shall obtain, together with satisfac- tory methods for the adjustment of grievances," the commission ir effect sustained the miners by upholding the principle of col- lective bargaining and by establishing a joint board of arbitration, on which the representatives of the employees must inevitably be officers of the union. Having thus vindicated the principles of unionism, the commis- sion ruled that no operator should discriminate against union men in the matter of employment. It likewise ruled that union men saould not discriminate against or interfere with nonunionists, pointing out that such discrimination on the part of either em- ployer or employed constitutes a serious menace to the discipline of the miner, which, on account of the hazardous nature of the work, should be as nearly perfect as possible. The right to strike the commission firmly upholds, but this does not include the right to persecute men who choose to work. Judge Gray on President Roosevelt in the Coal Strike. President Roosevelt's successful intervention in the coal strike met with the almost unanimous approval of the people, irrespec- tive of their political affiliations. It was not until the commis- sion's award had been made, and thought of the great disturbance nearly banished from the minds of the people, that criticism of his conduct, arising out of the resentment of the coal mine presi- dents and the desire to make political capital, began to appear, based on the allegation that his interference amounted to a modi- fication of property rights. But the criticism was hushed almost as soon as it appeared by the declaration of Judge Gray, a mem- ber o: the political party opposed to the President, that "the President's action, so far from interfering with or infringing upon property rights, tended to conserve them." Judge Gray's statement, which appeared in a New York City newspaper Sep- tember 1, 1903, was as follows : I have no hesitation in saying that the President of the United States was confronted in October, 1902, by the existence of a crisis more grave and threatening- than any that had occurred since the civil war. I mean that the cessation of mining in the anthracite coal country, brought about by the dispute between the miners and those who controlled the greatest natural monopoly in this country and perhaps in the world, had brought upon more than one-ha]f of the American people a condition of deprivation of one of the necessaries of life, and the probable continuance of the dis- pute threatened not only the comfort and health, but the safety and good order of the nation. He was without legal or constitu- tional power to interfere, but his position as President of the United 264 LABOR RECORD OF THEODORE ROOSEVELT. States gave him an influence, a lorulership, as first citizen of th< Republic, that enabled him to appeal to the patriotism and gooc sense of the parties to the controversy and to place upon them th< moral coercion of public opinion to agree to an arbitrament of th< strike then existing and threatening consequences so direful to th< whole country. He acted promptly and courageously, and in S( doing averted the dangers to which I have alluded. So far from interfering or infringing upon property rights, th< President's action tended to conserve them. The peculiar situatioi as regards the anthracite coal interest was that they controllec a natural monopoly of a product necessary to the comfort and t< the very life of a large portion of the people. A prolonged de privation of the enjoyment of this necessary of life would havt tended to precipitate an attack upon these property rights a which you speak, for, after all, it is vain to deny that this prop- erty, so peculiar in its conditions, and which is properly spoken ff as "a natural monopoly," is affected with a public interest. I do not think that any President ever acted more wisely, courageously, or promptly in a national crisis. Mr. Roosevelt de- serves unstinted praise for what he did. In the yearn that have gone by we have made the deed squire with the woril.— President Roosevelt's speech accepting 1904 nomi- nation. The credit of the Government, the integrity of its currency, and the inviolability of its obligations must be preserved. — Presi- dent McKinley's inaugural. It is better for this country to feed, clothe, and house our owl labor In this country than to support foreign labor in other coun- tries with our money.-— H. K. Thurber. / You cannot aiford to have the question raised every four years whether the nation will pay or repudiate its debts In whole or In part. — Hon. Wm. McKinley to delegation of farmers at Cant«n, September 22, 1896. Abating none of our interest in the home market, let us m fessional career to take active part in every Republican campaign in Indiana. His counsel and assistance were sought by party leaders. Before he ever held office he had spoken in every county in Indiana, and was known personally to the voters throughout the State. He contributed freely of his time and money to the Republican cause. His speeches, like his other political services, were much in demand. Among the strong political friendships he 266 CHARLES WARBEN FAIRBANKS. made in his early career in Indiana and which continued un- broken, was that with the Hon. Walter Q. Gresham. IN NATIONAL POLITICS. Senator Fairbanks' entry as a positive force in national Republican politics may be said to date from the St. Louis Repub- lican convention of 1896. Mr. Fairbanks and Major McKinley had been friends of many years' standing. Roth were Ohio born, both ardent members of the Methodist Episcopal Church, and in exact accord in their political views. In temperament their mutual friends believe they were much alike. Mr. Fairbanks was chosen as a delegate-at-large to the St. Louis convention, and soon after- ward it was announced that Major McKinley, whose nomination was then a foregone conclusion, had invited Mr. Fairbanks to be temporary chairman of the convention. His speech as temporary chairman attracted wide attention. The State of Indiana which in recent years had developed great industrial activity, particularly in the natural gas belt, showed an interest in the restoration of the protective tariff. The State was the center, also, of a strong gold Democratic propaganda. "Sound money and protection" were the watchwords employed by the Republicans that year to wrest the State, which had a Democratic Governor and two Democratic United States Senators, from the Democratic party. In this fight, which was made on the basis of a thorough political organization of the State, Mr. Fairbanks was easily leader. He returned from the St. Louis convention with additional political prestige, if possible, and his friends began the work of organizing the State in behalf of his Senatorial candidacy. The Republicans carried Indiana on national and State tickets that year by about 20,000. In the Republican caucus which followed in January, 1897, Mr. Fair- banks was nominated for United States Senator on the first ballot. Senator Fairbanks went at once to the head of the Senate committee on immigration. The subject was one which had inter- ested him for years. He felt there could be no more profitable study than that which concerned the character of immigration yearly pouring into this country to enter into the national life and be assimilated with its customs and habits into the nation's citizenship. To the study of this subject he gave the most earnest consideration, visiting the immigration stations of the country, and putting himself in daily touch with the officers charged with the responsibility of administering the immigration laws. The results of his research and labors took the form of a speech which was widely read and commended. Although Senator Fairbanks afterward took a step higher to the chairmanship of the Committee on Public Ruildings and Grounds, his interest in the immigration question has never abated. In the agitation which preceded the declaration of war with Spain, Senator Fairbanks was one of the President's closest ad- visers. He was at the White House almost daily, participating, with other members of the administration, in conferences that lasted not infrequently far into the night, the purpose of which was, if possible, to devise some way to secure the amelioration of conditions in Cuba without bloodshed. Senator Fairbanks was named by President McKinley as one of the American Commissioners of the United States and British Joint High Commission, and was Chairman of the American Commissioners. His service on that Commission is regarded by many as one of the most important and useful of his public acts. The principal questions before the United States and British Joint High Commission, aside from the Alaska boundary question, were the proposed abrogation of the Rush-Bagot treaty of 1817, which prohibited the building or maintaining of war vessels above a certain tonnage, on the Great Lakes, the lake fisheries question and Canadian reciprocity. Senator Fairbanks was invited by President McKinley at one time to become a member of his Cabinet. Senator and Mrs. Fairbanks have always retained a lively interest in the prosperity of their alma mater, and the Senator has been for a number of years one of the trustees. Senator and Mrs. Fairbanks are members of the Meridian Street M. E. Church, of Indianapolis, and the Senator is a Trustee in the Church. THE PANAMA CANAL. 267 THE PANAHA CANAL. The Course of the Administration Fully Justified — It Has Rendered Possible the World's Ambition of Centuries — A Record in Which Every American May Take Pride. Ever since the geographic formation of the connection be- tween the two Americas became known, early in the sixteenth century, the merchants, statesmen, and intelligent people of the maritime nations of the world have dreamed of an interoceanic canal across Central America. Beginning in 1527 far-seeing men in Portugal, Spain, England, and other countries have proposed plans for a canal across some part of the Isthmus. Early in the history of our own nation it was the subject of instructions to our delegates to the Panama Congress which was held in 1826. John Quincy Adams and Henry Clay were enthusi- astic advocates of a "canal * * * somewhere through the isthmus that connects the two Americas, to unite the Pacific and Atlantic oceans." It was the subject of a resolution of the Sen- ate in 1835 asking the President to open negotiations with other nations looking to the protection of parties who might under- take to construct a ship canal across the Isthmus. It was not, however, until December 12, 1846, that any effect- ive action was taken on the subject. On that date was con- cluded at the solicitation of New Granada (now the Republic of Colombia) a treaty between the United States and that Repub- lic, which is still in force. Article XXXV of that treaty is in part as follows: "* * * Th e Government of New Granada guarantees to the Government of the United States, that the right of way or transit across the Isthmus of Panama upon any modes of communication that now exist, or that may be hereafter constructed, shall be open and free to the Government and citizens of the United States, and for the transportation of any articles of produce, manufac- tures, or merchandise, of lawful commerce belonging to the citi- zens of the United States. * * * And, in order to secure to them- selves the tranquil and constant enjoyment of these advantages, and as an especial compensation for the said advantages and for the favors they have acquired by the 4th, 5th and 6th articles of this treaty, the United States guarantees positively and efficacious- ly to New Granada, by the present stipulation, the perfect neutral- ity of the before-mentioned isthmus, with the view that the free transit from the one to the other sea, may not be interrupted or embarrassed in any future time while this treaty exists; and in consequence, the United States also guarantee, in the same manner, the rights of sovereignty and property which New Granada has and possesses over the said territory." THE CLAYTON-BULWER STATUS. At this time (1846) the canal was regarded as an enterprise to be undertaken by two or more governments. The idea of a canal under the exclusive control of the United States was not thought of, but it has been a gradual evolution corresponding to our growth as a nation. Indeed, when the treaty known as the Clayton-Bulwer treaty was concluded, April 19, 1850, it was stipulated therein that neither government would "ever obtain or maintain for itself any exclusive control over the said ship canal." And by the treaty all the other powers were invited to join in the agreements it contained. Feeling itself too weak as a nation to act alone, our Government sought by the said stipu- lation to prevent any scheme for a canal under the exclusive con- trol of Great Britain. It was not until long after our civil war — a struggle which strengthened and developed our national sinews and brought us to full political maturity — that the policy of exclusive American control was first adopted and was somewhat indefinitely out- lined by President Hayes in his message to Congress. It has taken years to remove the obstacles in the way of a realization of that policy. The two chief obstacles were, first, the treaty of 1850, which as a subsisting engagement the Gov- ernment of the United States regarded itself in all good con- science and international honor bound to observe until it was 268 THE PANAMA CANAL. lawfully abrogated or superseded ; and second, the fact that the French Panama ('anal Company had secured a right of way, and in 1SS3 had begun to dig ;i canal. This obstacle was prac- tically removed by the Irretrievable financial collapse of that company In 1889, before the completion of the work. But the removal of the first-mentioned obstacle, the treaty of 1850, re- quired the employment of diplomatic skill ami ability, and it was voiy successfully accomplished by the negotiation of the treaty known as the Hay-Pauncefote treaty, signed November 18, 1901, by Mr. Hay and Lord Pauncefote, and ratified by the senate December 10, 1901, which stipulates in terms that it chad super- sede the convention of the 19th of April, 1850, and agrees to the construction of the canal under the exclusive auspices of the Government of the United States. CJOLOMBIA WHOLLY TO BLAME FOR HER LOSS. The great obstacles to the construction of an interoceanic canal by the United States having been thus practically removed, through the medium of our diplomacy, and the Isthmian Canal Commission having reported in favor of the Panama route, our Government promptly entered into negotiations with the Repub- lic of Colombia for the purpose of securing a right of way across the isthmus, and Colombia joined in the negotiation of such a treaty which was signed on January 22, 1903, and is known as the Hay-Herran treaty. It was promptly ratified by our Senate, and with every expectation that it would meet with similar action on the part of the Congress of Columbia, "the dream of the ages" seemed about to become potentially an accomplished fact. In this treaty the Government of the United States went to the limit of generosity and consideration for Colombia in agreeing to pay her $10,000,000 down and $250,000 per annum in perpetuity, since the payment of anything seemed an unjust exaction in view of the unmeasured benefits Colombia was to derive from the exist- ence of a canal upon a small tract of otherwise worthless land, and in view of the countless millions the Government of the United States obligated itself to spend in building the canal, millions which would be permanently invested in that country. Colombia would have benefited more by the building of the canal than any other nation upon the earth. It would have afforded her incalcu- lable opportunities for development and wealth. She had already acknowledged the world's right of way to the United States by the treaty of 1846. But when the long-de- sired object was about to be definitely provided for, the Congress of Colombia in a spirit of greed made still larger demands of the United States, and, on refusal, adjourned October 31, without ratifying the treaty, though repeatedly warned of the probable course of Panama as the result of such action. A condition of affairs was thereby precipitated fraught with momentous conse- quences to Colombia and the world. The State of Panama, whose future prosperity and develop- ment was vitally involved, faced the prospect of practical ruin. It was a matter of life and death. She had watched the course of the arrangements with eager interest. She was aware of the provisions of the Spooner Act, and that a failure on the part of the Colombian Government to ratify the treaty might necessitate a change to the Nicaragua route. The leaders in Panama with admirable foresight had provided for the possible contingency of a failure of the Colombian Congress to ratify the treaty, and the people of Panama, realizing what was at stake, by unan- imous action arose on November 3, 1903, in revolt against the Government of Colombia, declared their independence, and estab- lished a de facto government. On the 13th of November the United States recognized the independence of the Republic of Panama, by receiving a minister from the new Government. Negotiations were promptly entered into between Mr. Hay and Mr. Bunau-Varilla, the new minister, for a treaty with the Republic of Panama. A treaty was drawn up on lines corre- sponding very closely to those in the Hay-Herran treaty, and was signed November 18, 1903, and ratified by the Senate Feb- ruary 23, 1904. In the meantime the revolutionary leaders submitted their action to the people of Panama, who by a popular vote unan- THE PANAMA CANAL. 269 imously approved it, and by orderly procedure established a re- publican government. KECOGNITION OF PANAMA. Our recognition of the Republic of Panama was followed by that of France five days later, by China nine days later, and recognition by Austria, Germany, Denmark, Russia, Sweden and Norway, Belgium, Nicaragua, Peru, Cuba, Great Britain, Italy, Switzerland, Costa Rica, Japan, Guatemala. The Netherlands, Venezuela, and Portugal followed soon after ,in the order named. In this way has been accomplished what would otherwise have been brought about, but for the obstinacy and greed of Col- ombia, in the ordinary course by the ratification of the Hay-Her- ran treaty by the Colombian Congress. The course pursued by our Government in this matter has been the subject of criticism on the part of some of our citizens. The principal objections raised may be summarized as follows: 1st. That our Government was a party to the revolt of Pan- ama against Colombia and incited or abetted it. 2d. That our Government showed undue haste in recogniz- ing the independence of Panama and in entering into diplomatic relations with that republic. 3d. That the action of our Government was contrary to the fundamental principle regarding the right of a state to secede. 4th. That our Government took advantage of a weak state and that its action was contrary to international law and justice. With regard to the first objection it seems sufficient to say that in view of the high and unsullied reputation of President Roosevelt and Secretary Hay, both in public and private life, for absolute integrity, straightforwardness, and veracity, the frank statement of the President in his message to Congress of January 4, 1904, that "No one connected with this Government had any part in pre- paring, inciting, or encouraging the late revolution on the Isthmus of Panama, and that save from the reports of our military and naval officers given above, no one connected with this Government had any previous knowledge of the revolution except such as was accessible to any person of ordinary intelligence who read the newspapers and kept up a current acquaintance with public af- fairs," is entitled to full acceptance as answer to that objection. To the second objection as to haste in recognizing the inde- pendence of Panama, it may be said that while the President's action was not without authoritative precedent, yet a state of facts existed which was so out of the ordinary as not to make it depend fully for justification upon precedent. As to the principle of recognition it may be said generally that— "1. Definitive independence cannot be held to be established, and recognition is consequently not legitimate so long as a sub- stantial struggle is being maintained by the former sovereign state for the recovery of its authority; and that "2. A mere pretension on the part of the formerly sovereign state, or a struggle so inadequate as to offer no reasonable ground for supposing that success may ultimately be obtained, is not enough to keep alive the rights of a state, and so to prevent for- eign countries from falling under an obligation to recognize as a state a community claiming to have become one." By the terms of the treaty of 1846 with New Granada the United States secured the right to a free and open transit across the Isthmus of Panama and assumed the responsibility of guar- I anteeing to New Granada the rights of sovereignty and property over that territory. This guaranty did not include protection against domestic revolution, but had reference to foreign powers. The real design was to assure the dedication of the Isthmus to the purposes of free and unobstructed interoceanic transit by means of a canal. The Government of Colombia had by its de- liberate and willful action giVen Panama (originally an inde- pendent State and since 1855 an involuntary constituent of a loose confederation) just and lawful ground for revolt. The revolution was successful ; the Government of Panama was in full possession and control of the Isthmus ; the rights and responsibil- ities attaching to Colombia by the treaty of 1846 devolved upon the new Republic, and with no effective or adequate attempt on | the part of Colombia to reassert its authority over Panama, the 270 THE PANAMA CANAL. question of allowing a longer or a shorter space of time to elapse before recognition was not of great importance. In the case of the Republic of Brazil recognition was accorded by Secretary Blaine two days after the abdication of the royal family. THE CANAL MUST BE BUILT. In considering his course of action the President was con- fronted by these three great facts: 1. That a canal was to be built. 2. That the United States was to build it 3. That it was to be built across the Isthmus of Panama, according to the de- clared preference of Congress. Colombia had in effect deliber- ately closed her eyes to these facts. A new State had sprung into existence prepared to carry out what Colombia refused to do, and every consideration, of national interest and safety justified the prompt recognition by our Government of this new Republic, for nothing is of greater importance or more essential to our commercial development than the construction of an interoceanic canal. Indeed it is a positive and vital necessity, not admitting of indefinite delay. Delay was inevitable if further negotia- tions were to be entered into with Colombia, in view of the revelations as to Colombia's intentions, made since the rejection of the Hay-Herran treaty. Her declared design was to delay further action until the expiration of the franchise of the New Panama Canal Company, October 31, 1904, to declare the same forfeited, and then to negotiate with the United States on a basis of complete ownership. Such a nefarious scheme could but result in indefinite delay, and would doubtless involve the United States in serious complications with Prance. But recognition of Panama was above all justified by the undoubted interests of collective civilization. The nations have universally recognized the mandate laid upon our Government to build the canal, and this is evidenced by the promptness with which the powers have followed our example in recognizing Panama. THE 'QUESTION OF SECESSION. Those who see in the approval by this administration of the action of the State of Panama in withdrawing from the Colom- bian Federal Union a reversal of the attitude of our Government with regard to the secession of the Southern States, failed to dis- criminate between the two cases. They are in no wise parallel, for in the case of the Confederate States they claimed the right to secede for the purpose of maintaining human slavery, a prac- tice which was almost universally repugnant to the moral sense of every civilized nation, while in the case of Panama she has suffered from oppression and spoliation to an extent almost be- yond belief. The Government of Colombia cut off her rights and suppressed her liberties, robbed her of the privilege of electing her local officers, legislators, and judges ; restricted the right of suffrage; falsified the count of votes; took away her right of law making; suppressed the liberty of thought and speech by violent, punitive measures, and put over her officers who sold justice and robbed her treasury. With such a state of affairs, who will question the right of Panama to revolt and assert her independence, especially in view of the fact that she had origi- nally been independent and but for the treachery and superior force employed by the President of Colombia in 1885 she would still have been so? By all the principles of justice among men and among nations that all governments should maintain, the revolutionists in Pan- ama were right; the people of Panama were entitled to be free again ; the Isthmus was theirs and they were entitled to govern it, and it would have been a shameful thing for the Government of the United States to return them again to servitude. Certainly, therefore, this exception to the President's course is not well taken. Was undue advantage taken of Colombia, and were the rules of international law and justice disregarded? The history of our relations with that country for fifty years should be a sufficient answer to that question. Throughout this period the United States has repeatedly shown herself faithful to her obligations under the treaty of 1846; she has, sometimes at the request of Colombia and sometimes without it, enforced THE PANAMA CANAL. 271 peace upon the line of transit across the Isthmus at great cost and risk, and, by the distinct announcement of her protection and constantly increasing power, has formed an adequate bar- rier against foreign aggression upon the Isthmus. The unusual generosity shown Colombia in the matter of the proposed com- pensation to be given her by the Hay-Herran treaty and the ample guaranty given her for anything which she could by any color of title demand in that convention — all these things go to show that the United States has gone to the extreme limit of fairness and justice in its treatment of that Republic. The truth is that Colombia was in nominal possession of a tract of land which the Creator had designed as a natural passage for a world waterway. Her sovereignty over it was qualified by the world's easement and all the rights necessary to make the ease- ment effective, and was subject to limitations in its exercise by reason of the just interests of other nations. Colombia, or her predecessor, New Granada, had in effect recognized this fact in her treaty with the United States in 1846, and by that treaty the United States had become a guarantor of that right of way for the equal benefit of all nations ; she had received a grant of power and assumed a duty herself to keep the transit free and uninterrupted. She also assumed the burden of protecting New Granada against an unjust exercise of the world's right of passage. There is no doubt, therefore, that the United States would have been justified in proceeding to exercise the right which she possessed by reason of this treaty without regard, to the accept- ance or rejection of the Hay-Herran treaty, for Secretary Cass very clearly enunciated the principle governing in such cases when he said: "Sovereignty has its duties as well as its rights, and none of these local governments, even if administered with more regard to the just demands of other nations than they have been, would be permitted, in a spirit of eastern isolation, to close the gates of intercourse on the great highways of the world, and justify the act by the pretension that these avenues of trade and travel belong to them and that they choose to shut them, or, what is almost equivalent, to encumber them with such unjust relations as would prevent their g-eneral use." That principle is sound, and this Government was required to take a stand upon it or abandon the canal. Colombia had will- fully disregarded the principle and stood as a bar to the world's progress and the exercise of our just rights. PANAMA THE TRUE OWNER OF THE ISTHMUS. The State of Panama by the exercise of an undoubted right had by a peaceful and successful revolution become the real owners of the canal route, which was theirs originally, and was in a position to afford to the United States an opportunity to carry out the mandate of the nations and fulfill the trust she held. The vital question, then, for our Government to decide was whether it should treat with the true owner of the Isthmus — for the State of Panama in confederating with the Republic of Col- ombia under the constitution of 1863 had not parted with its title or its substantial rights, and she had said to the United States, "Recognize our independence, and the treaty follows, of course, for the building of the canal is our dearest hope" — or whether we should continue to treat indefinitely with the Republic of Colombia, which was only a trustee for the people of the Isthmus and had proved faithless to its trust. Our Government did not hesitate in making its decision. Its course was plain and the American people have already come to the conclusion that the decision of our President and the Secre- tary of State and the Senate was a righteous decision. By the exercise of foresight, prompt decision, and an undoubt- ed public duty the administration has brought to the point of actual commencement a project which the world has anticipated for four hundred years and which is of the most stupendous im- portance to our country as well as to the nations of the earth. It marks a new era in the world's history and will eventually revolutionize the commerce of the world. THE GREAT ADVANTAGES OF THE CANAL. The advantages to flow from it are too numerous to enumer- ate, but a few of them may be outlined as follows : 272 ti 1 1: r an am a canal. The most obvious advantage of the Panama Canal is, c course, the immense saving of distances for sea-borne traffl from Atlantic ports of the United States and from the wester const oi the Eastern Hemisphere to the Pacific Ocean. At pivsn such traffic has to reach the Pacific by w;iy of the Suez Oanj or the Cape of Good Hope, or by the long and dangerous journe around Cape Horn, or by transshipment to railroad system crossing Canada, the United States, and the Isthmus of Panami While points in the Pacific most distant from the United State would still be reached more expeditiously from Europe via Sue; the whole Pacific coast from Alaska to Patagonia would h brought much nearer for an all-sea route to Europe as well a the Atlantic and Gulf seaboards of the United States. The ei tire region of the Gulf of Mexico would be supplied for the fin time with a direct, unbroken carriage by sea by the shortes line with the whole Pacific coast of South and Central Americj Mexico, and the United States. The Hawaiian and Philippine Islands, our possessions in th Pacific, would be accessible to the eastern and southern portion of the United States by a continuous sea route, the connectin link of which across the Isthmus of Panama would be in Amer can hands and controlled by American influences, without th danger of interruption by a conflict of interest that might aris in relation to a canal like that of Suez, which is located in th Old World and therefore inevitably exposed to the play of 01 World rivalries. The canal would promote an enormous deve opment of our industries — agricultural, mineral, lumbering, an manufacturing — in all sections. It would help to develop an make available the extensive natural resources of the Pacifl States and increase our trade with the Orient. Its advantag from a military point of view cannot be overestimated. Fo table giving distances between United States ports and those c Asia by Panama and Suez, respectively, see index. This subject of the Panama matter in all its forms is full; discussed in the speeches delivered in Congress printed in th document "Pages from the Congressional Record," which als contains President Roosevelt's messages on this subject. Thi document can be obtained by application to the Republican Na tional Committee and should be examined by those desiring t thoroughly study this and other subjects likely to be discusse in the present campaign. MANY DEMOCRATIC VOTES CAST IN SUPPORT OF THE TREATY. While the Democrats under the lead of Senator Gorman criti cised the treaty in the beginning they were unable to withstani the overwhelming public sentiment in its favor, and practically one half of the Democratic Senators are understood to have vote< for its ratification. The vote on ratification was in Executiv Session, but the result and the details soon became known, an< were reported in the New York Tribune of February 24 ai follows : "Fourteen Democrats voted for ratification and fourteei against. Two Democrats — Clark, of Montana, and Stone, of Mis souri — were paired in favor of the treaty, and three Democrats- Overman, McLaurin and Martin — were paired against it, so in th< total vote sixteen Democrats were for the treaty and seventeei against it. The Democrats who were present and voted for th< treaty were Bacon, Berry, Clarke, of Arkansas; Clay, Cockrell Foster, of Louisiana; Gibson, Latimer, McCreary, McEnery, Mai' lory, Money, Simmons and Taliaferro." "President Roosevelt Could Take no Other Course Than to Recog- nize the New Government of Panama." [Extracts from the remarks of Hon. Shelby M. Cullom of Illinois, ir dally Congressional Record, February 22, 1904.] Mr. Cullom. Mr. President, I do not feel like allowing the dis- cussion in the Senate on the general question of a treaty with th< Republic of Panama and the conditions, history, and law, nationaJ and international, involved, to pass without asking the attentior of the Senate for a little while on this general subject. The Tsthmian Canal Commission, authorized by Congress tc make the investigation, reported in favor of the Panama route, The Spooner Act was passed, and the President under authority oi that act negotiated a treaty with Colombia. That treaty was promptly and almost unanimously ratified by the United States Senate, sent to Colombia March 18, 1903, where it was unanimously THE PANAMA CANAL. 273 rejected by the Colombian Congress with very little consideration on October 18, 1903, and on October 31 the Columbian Congress adjourned. * * * On November 3, three days after the Colom- bian Congress adjourned, Panama seceded and peaceably regained her independence. The secession of Panama could not have been a surprise to either the Colombian Government or to the United States. The correspondence shows that Senator Obaldia, a prominent Senator from the State of Panama, openly declared that should the canal treaty be rejected Panama would secede and would be right in doing so. * * * All of the correspondence in possession of the Executive De- partments has been laid before the Senate, either in open or execu- tive session. There has been no concealment on the part of the Executive. That correspondence has been gone into in consider- able detail here, and there is not one particle of evidence to show that any officer of the United States encouraged or instigated the revolution. * * * There was no resistance to the revolution by Colombia, and on November 4 the three consuls, constituting the provisional govern- ment of Panama, notified the Secretary of State officially that in consequence of a popular and spontaneous movement of the people of Panama, the independence of the Isthmus was proclaimed and the Republic of Panama instituted and a provisional government organized. An envoy extraordinary and minister plenipotentiary was later appointed by the new Government of Panama to the United States. On November 6 our consul at Panama notified the State Department that the situation was peaceful, that the move- men was a success, and that no Colombian soldiers were on Isth- mian soil. After receiving that message on November 6, our con- suls at Panama and Colon were instructed to recognize the new Government of Panama. I will not go into the correspondence pertaining to this revo- lution further at this time; but, in my judgment, that correspond- ence shows that President Roosevelt could take no other course, under the circumstances, than to recognize the new Republic. There were no Colombian officials in charge on the Isthmus, and if we did not recognize the new government there would have been no government at all on the Isthmus to which we could look for the protection of our citizens and their property. * * * Every act of our Executive, every order given to the com- manders of our vessels of war during and after this revolution, has been justified by our treaty of 1846. The treaty, entered into in 1846 with the end in view of the construction of a canal or railroad across the Isthmus, as is shown in President Polk's message, in artcle 35 provides: "The United States guarantee positively and efficaciously to New Granada the perfect neutrality of the before-mentioned Isth- mus with the view that the free transit from one to the other sea may not be interrupted or embarrassed in any future time while this treaty exists." This treaty was made in 1846 and still continues in full force. It has survived a number of revolutions. New Granada has be- come the Republic of Columbia. One revolution has succeeded another, placing different parties in control, but the treaty has re- mained and has been recognized by every succeeding government, and the United States has a number of times exercised its right under Article XXXV to keep the Isthmus open. The treaty of 1846 continues in force even though the State of Panama has seceded from the Republic of Colombia. No longer binding upon Colombia, after she lost her sovereignty over the territory to which Article XXXV refers, it is now binding and its rights and obligations have succeeded to the new Republic of Panama. In other words, the thirty-fifth article of the treaty of 1846 is binding and descends to any government which exercises sovereignty over the Isthmus of Panama. * * * Without our aid the people of the Isthmus have declared and regained their independence and have set up a government of their own; no warfare exists, and peace prevails. Under these circum- stances it could not be expected that the United States would forcibly overthrow this new Republic or would permit a civil war to be waged on the Isthmus. "The President Would Have Been Censurable if He Had Not Taken Every Precaution on the Isthmus." [Extracts from remarks of Hon. Henry Cabot Lodge of Massachu- setts, in daily Congressional Record, January 5, 1904.] All the world knew last summer that there was revolution impending. The correspondent of the New York Evening Post for December 8 says that they were planning revolution in Panama early in May. I happened to be out of the country, seeing only foreign newspapers in London and elsewhere, but it was a matter of common knowledge there in Europe and England that revolu- tion was impending in Panama if the treaty was not agreed to. That knowledge, of course, came to the Executive. He had information also from our naval and military officers, which has been cited in his message. It was his business to keep informed, but the fact of information does not imply assurances or conniv- ance, and the insinuations of connivance and incitement have al- ready been denied in a manner which requires neither repetition nor support from me or anyone else. The President would have been 274 THE PANAMA CANAL. In the highest degree censurable If he had not taken every proper precaution to prepare for the event which the reports of the dis- turbance on the Isthmus suggested. He was bound to carry out the provisions of the treaty of 1846. We have always construed that treaty to mean that we were charged with the responsibility of keeping open the transit across the Isthmus; that we were not charged with the duty of enforcing the power of Colombia if there was a revolt; that we were there to protect It against foreign aggression, but that our primary duty was to keep it open and uninterrupted. All this information had come in upon the President, and he had as in duty bound considered it and watched events. Finally there came what constitutes the first act of our Government. There came news that Colombia was about to land a force of 6,000 men at Colon, and the Acting Secretary of the Navy on November 2 sent this dispatch: "Maintain free and uninterrupted transit. If interruption threatened by armed force, occupy the line of railroad. Prevent landing of any armed force with hostile Intent, either Government or insurgent, either at Colon, Porto Bello, or other point. Send copy of instructions to the senior officer present at Panama upon arrival of Boston. Have sent copy of instructions and have tele- graphed Dixie to proceed with all possible dispatch from Kingston to Colon. Government force reported approaching the Isthmus In vessels. Prevent their landing if in your judgment this would precipitate a conflict. Acknowledgment is required." That was the first step. The next day November 3, a pressi bulletin having announced an outbreak on the Isthmus, the Acting Secretary of State telegraphed to the consul at Panama: "Uprising on Isthmus reported. 'Keep Department promptly and fully informed." The reply goes back that there was no uprising, that it was expected that night. Within a short time, a little more than an hour, came the dispatch: "Uprising occurred to-night, 6; no bloodshed," etc. Mr. President, the preparations that have been very largely talked about, and which I have no doubt were adequately made, really resulted in the presence of one vessel of war at Colon. We landed from that vessel forty-two sailors and marines. The land- ing party was commanded with judgment. The captain of the Nashville showed the utmost discretion and firmness. He pre- vented with an even hand either party from using the railroad. He prevented bloodshed. He kept peace on the Isthmus. Now, Mr. President, the President has been assailed for land- ing troops. He has landed no troops. Some sailors and some marines have been landed, and he has been charged with having made war by that act of recognition and by the landing of the forces of the United States. It is perfectly certain, Mr. President, that the aet of recog- nition by all the best authorities is held not to be in itself an act of war. As for the landing of those sailors and marines to keep order, we have done it over and over again. We did it in 1900; we did it in 1901; we did it in 1902. * * * The United States recognized Panama on November 13, then France, China, Austria-Hungary, Germany, Denmark, Russia, Swe- den and Norway, Belgium, Nicaragua, Peru, Cuba, Great Britain, Italy, Japan, Costa Rica, and Switzerland. List of Governments which have recognized the independence of Panama with dates of recognition: United States Nov. 13, 1903 France Nov. 16, 1903 China Nov. 26, 1903 Austria-Hungary . .Nov. 27, 1903 Germany Nov. 30, 1903 Denmark Dec. 3,1903 Russia Dec. 6,1903 Sweden and Norway.Dec. 7, 1903 Belgium Dec. 9, 1903 Those recognitions indicate that the rest of the civilized world do not think it was a very unreasonable thing for us to have recognized that new Republic quickly. Nicaragua Dec. 15, 1903 Peru Dec. 19, 1903 Cuba Dec. 23,1903 Great Britain Dec. 24, 1903 Italy Dec. 24, 1903 Japan Dec. 28, 1903 Costa Rica Dec. 28, 1903 Switzerland Dec. 28, 1903 "The Panama Canal." [Extracts from an address by Hon. Elihu Root, at Chicago, Febru- ary 22, 1904, printed in Congressional Record, June, 1904.] Reluctantly, and with a sense that it was unjust exaction, the United States agreed to pay $10,000,000 down, and $250,000 per annum in perpetuity — substantially the entire amount exacted by Columbia. We were not going into the enterprise to make money, but for the common good. We did not expect the revenues of the canal to repay its cost, or to receive any benefit from it, except that which Colombia would share to a higher degree than our- selves. * * * "> The concessions made in the treaty to the Government of Co- lombia, however, seemed merely to inspire in that Government a belief that there was no limit to the exactions which they could successfully impose. They demanded a further $10,000,000 from the Panama Canal Company, and upon its refusal they rejected the treaty. THE PANAMA CANAU 275 This rejection was a substantial refusal to permit the canal to be built. It appears that the refusal contemplated not merely further exactions from us, but the spoliation of the canal company. That company's current franchise was limited by its terms to the 31st day of October, 1904. There was an extension for six years granted by the President and for which the company had paid 5,000,000 francs. These patriots proposed to declare the extension void and the franchise ended and to confiscate the $40,000,000 worth of property of the company and take from the United States for themselves, in payment for it, the $40,000,000 we had agreed to pay the company. * * * By becoming a party to this scheme we might indeed have looked forward to the time when, the appetite of Columbia being satisfied at the expense of the unfortunate stockholders of the French company, we could proceed with the work, but such a course was too repugnant to the sense of justice that obtains in every civilized community to be for a moment contemplated. We had yielded to the last point beyond reason and justice in agreeing to pay for a privilege to which we were already entitled, and we could not with self-respect submit to be mulcted further. We could negotiate no further. Rejection of the treaty was practi- cally a veto of the canal. * * * These were the conditions existing when the revolution of November 3 happened. To an understanding of that revolution a knowledge of the character and history of Panama is essential. Some uninformed persons have assumed that it was merely a num- ber of individual citizens of Colombia living in the neighborhood of the proposed canal who combined to take possession of that part of Colombian territory and set up a government of their own. No conception could be more inadequate. The sovereign State of Panama was an organized civil society possessed of a territory ex- tending over 400 miles in length, from Costa Rica on the west to the mainland of South America on the east. It had a population of over 300,000. * * * The people of Panama were the real owners of the canal route; it was because their fathers dwelt in the land, because they won their independence from Spain, because they organized a civil society there, that it was not to be treated as one of the waste places of the earth. They owned that part of the earth's surface just as much as the State of New York owns the Erie Canal. When the sovereign State of Panama confederated itself with the other States of Colombia under the constitution of 1863 it did not part with its title or its substantial rights, but constituted the Federal Government its trustee for the representation of its rights in all foreign relations and imposed upon that Government the duty of protecting them. The trustee was faithless to its trust; it repudi- ated its obligations without the consent of the true owner; it seized by the strong hand of military power the rights which it was bound to protect; Colombia itself broke the bonds of union and destroyed the compact upon which alone depended its right to represent the owner of the soil. The question for the United States was, Shall we take this treaty from the true owner or shall we take it from the faithless trustee, and for that purpose a third time put back the yoke of foreign domination upon the neck of Panama, by the request of that Government which has tried to play toward us the part of the highwayman? There was no provision of our treaty with Co- lumbia which required us to answer to her call, for our guaranty of her sovereignty in that treaty relates solely to foreign aggres- sion. There was no rule of international law which required us to recognize the wrongs of Panama or the justice of her cause, for international law does not concern itself with the internal affairs of state. But I put it to the conscience of the American people, who are passing judgment upon the action of their government, whether the decision of our President and Secretary of State and Senate was not a righteous decision. By all the principles of justice among men and among nations that we have learned from our fathers, and all peoples and all governments should maintain, the revolutionists in Panama were right, the people of Panama were entitled to be free again, the Isthmus was theirs, and they were entitled to govern it; and it would have been a shameful thing for the Government of the United States to return them again to servitude. It is hardly necessary to say now that our Government had no part in divising, fomenting, or bringing about the revolution on the Isthmus of Panama. President Roosevelt said in his message to Congress of January 4, 1904: "I hesitate to refer to the injurious insinuations which have been made of complicity by this Government in the revolutionary movement in Panama. They are as destitute of foundation as of propriety. The only excuse for my mentioning them is the fear lest unthinking persons might mistake for acquiescence the silence of mere self-respect. I think proper to say, therefore, that no one connected with this Government had any part in preparing, incit- ing, or encouraging the late revolution on the Isthmus of Panama, and that, save from the reports of our naval and military officers, given above, no one connected with this Government had any previous knowledge of the revolution except such as was accessible to any person of ordinary intelligence who read the newspapers and kept up a current acquaintance with public affairs." - The people of the United States, without distinction of party, will give to that statement their unquestioning belief. 276 THE 1WN \\l \ ( \\ \l . "The Pauamn Question Transcend* tin* Nnrrow Hounds of Party." [Extract from remarks of Hon. C. W. Fairbanks of Indiana, in daily Congressional Record, February 2, 1904.] There are several conclusions which the record seems to estab- lish. They may be summarized thus: The revolution of the people of Panama was due to a long series of wrongs inflicted upon them by the Government at Bogota, and more particularly to the rejection of the Hay-llerran treaty. The revolution was initiated by the people of Panama and was not inspired by the United States. It was the duty of the President to adopt such measures as he deemed necessary to preserve the freedom of transit across the Isthmus and to protect the lives and property of American citizens, and of citizens of other countries upon the line of transit. The independence of Panama was accomplished by the people of the Isthmus. There was no vessel or armed force of the United States at the city of Panama, and only one vessel, the Nashville, third rate, at Colon; only 42 marines were landed at Colon. They were landed to protect the lives of American citizens who were in serious and imminent peril and were returned to the ship after accom- plishing their purpose. The President recognized the fact that Panama had secured her independence three days after the revolution. In recognizing the independence of the new Republic the Pres- ident acted solely within his constitutional rights. The duty of recognition rested upon him, and having exercised it his act be- came binding upon the United States. The independence of the Republic of Panama was recognized by France and many other powers soon after recognition by the United States. Within eight days after the recognition of the new Republic she signed a treaty with the United States, through here accred- ited minister to Washington, granting to the United States the requisite concessions for an isthmian canal. When the Republic of Panama concluded the treaty with the United States' she was in the exercise of sovereign power. She was discharging fully her domestic and international functions and had full capacity to enter into a valid convention with the United States. Under the treaty of 1846 the United States obtained rights and incurred obligations in Panama. She obtained the right of free transit across the Isthmus and the right to preserve the free- dom of such transit. She also guaranteed in consideration of this right and other privileges the sovereignty of the government in Panama. By the transfer of sovereignty upon the Isthmus to the Republic of Panama, the obligation to guarantee her sovereignty ugainst foreign aggression rests upon the United States. If the new treaty with the Republic of Panama is ratified by the Senate, the United States will obtain adequate concessions, rights, and privileges for the construction and perpetual main- tenance of an isthmian canal. Mr. President, I have endeavored to consider only the more salient features of the Panama question, and those which appear to me to be controlling. Much more might be said, but there would appear to be little profit in unduly prolonging the discus- sion. In one form or another the isthmian canal question has been under consideration for several centuries. The time for decisive action has come. We have but to call the roll of the Senate upon the treaty with Panama and we will instantly set in motion the machinery which will soon accomplish the great desire. Others have said that this is an American question, and so it is. It transcends the narrow bounds of party. It is as wide as the ample limits of the Republic. Who doubts in the present condition of affairs that the Panama Canal will be built? It will have back of it the best pledge any vast undertaking can have, for it will have the assur- ance of the United States. What we say for and against it will swiftly fade away and be gone forever, but the canal — the rich fruit of four centuries of hope and human effort, the colossal tribute of our people to the commerce of the world — will stand. Yes, we can well believe that it will survive the pyramids. "Panama— The Insinuations of Complicity are Destitute of Foun- dation/' [Extract from message of President Roosevelt, in daily Congres- sional Record, January 4, 1904.] To the Senate and House of Representatives: I lay before the Congress for its information a statement of my action up to this time in executing the act entitled "An act to provide for the construction of a canal connecting the waters of the Atlantic and Pacific oceans," approved June 28, 1902. By the said act the President was authorized to secure for the United States the property of the Panama Canal Company and the perpetual control of a strip six miles wide across the Isthmus of Panama. It was further provided that "should the President be THE PANAMA CANAL. 277 unable to obtain for the United States a satisfactory title to the property of the New Panama Canal Company and the control of the necessary territory of the Republic of Colombia * * * within a reasonable time and upon reasonable terms, then the President" should endeavor to provide for a canal by the Nica- ragua route. * * * When this Government submitted to Colombia the Hay-Herran treaty three things were, therefore, already settled. One was that the canal should be built. * * * Second. While it was settled that the canal should be built without unnecessary or improper delay, it was no less clearly shown to be our purpose to deal not merely in a spirit of justice but in a spirit of generosity with the people through whose land we might build it. * * * Third. Finally the Congress definitely settled where the canal was to be built. It was provided that a treaty should be made for building the canal across the Isthmus of Panama; and if, after reasonable time, it proved impossible to secure such treaty, that then we should go to Nicaragua. * * * When in August it began to appear probable that the Colum- bian Legislature would not ratify the treaty, it became incumbent upon me to consider well what the situation was and to be ready to advise the Congress as to what were the various alternatives of action open to us. There were several possibilities. One was that Colombia would at the last moment see the unwisdom of her posi- tion. * * * A second alternative was that by the close of the session on the last day of October, without the ratification of the treaty by Colombia and without any steps taken by Panama, the American Congress on assembling early in November would be confronted with a situation in which there had been a failure to come to terms as to building the canal along the Panama route, and yet there had not been a lapse of a reasonable time — using the word reasonable in any proper sense — such as would justify the Administration going to the Nicaragua route. * * * A third possibility was that the people of the Isthmus, who had formerly constituted an independent state, and who until recently were united to Colombia only by a loose tie of federal relationship, might take the protection of their own vital interests into their own hands, reassert their former rights, declare their independence upon just grounds, and establish a government competent and willing to do its share in this great work for civilization. This third possibility is what actually occurred. Everyone knew that it was a possibility, but.it was not until towards the end of Octo- ber that it appeared to be an imminent probability. Although the Administration, of course, had special means of knowledge, no such means were necessary in order to appreciate the possibility, and toward the end of the likelihood, of such a revolutionary outbreak and of its success. It was a matter of common notoriety. Quotations from the daily papers could be indefinitely multiplied to show this state of affairs. * * * In view of all these facts I directed the Navy Department to issue instructions such as would insure our having ships within easy reach of the Isthmus in the event of need arising. * * * On November 2 when, the Colombian Congress having adjourned, it was evident that the outbreak was imminent, and when it was announced that both sides were making ready forces whose meet- ing would mean bloodshed and disorder, the Colombian troops having been embarked on vessels, the following instructions were sent to the commanders of the Boston, Nashville, and Dixie: "Maintain free and uninterrupted transit. If interruption is threatened by armed force, occupy the line of railroad. Prevent landing of any armed force with hostile intent, either Government or insurgent, at any point within 50 miles of Panama. Govern- ment force reported approaching the Isthmus in vessels. Prevent their landing if, in your judgment, the landing would precipitate a conflict." These orders were delivered in pursuance of the policy on which our Government had repeatedly acted. * * * On November 3 Commander Hubbard responded to the above- quoted telegram of November 2, 1903, saying that before the tele- gram had been received 400 Columbian troops from Cartagena had landed at Colon; that there had been no revolution on the Isthmus, but that the situation was most critical if the revolutionary leaders should act. On this same date the Associated Press in Washington received a bulletin stating that a revolutionary outbreak had oc- curred. When this was brought to the attention of the Assistant Secretary of State, Mr. Loomis, he prepared the following cable- gram to the consul-general at Panama and the consul at Colon: "Uprising on Isthmus reported. Keep Department promptly and fully informed." Before this telegram was sent, however, one was received from Consul Malmros at Colon, running as follows: "Revolution imminent. Government force on the Isthmus about 500 men. Their official promised to support revolution. Fire department, Panama, 441, are well organized and favor revolution. Government vessel Cartagena, with about 400 men, arrived early to-day with new commander-in-chief, Tobar. Was not expected until November 10. Tobar's arrival is not probable to stop revo- lution." This cablegram was received at 2:35 p. m., and at 3:40 p. m. Mr. Loomis sent the telegram which he had already prepared to both Panama and Colon. Apparently, however, the consul-general at Panama had not received the information embodied in the Asso- ciated Press bulletin, upon which the Assistant Secretary of State based his dispatch; for his answer was that there was no uprising, 278 THE PANAMA CANAL. although the situation was critical, this answer being: received at 8:16 p. m. Immediately afterwards he sent another dispatch, which was received at 9.50 p. m., saying that the uprising had oc- curred, and had been successful, with no bloodshed. The Colum- bian gunboat Bogota next day began to shell the city of Panama, with the result of killing one Chinaman. The consul-general was directed to notify her to stop firing. Meanwhile, on November 4, Commander Hubbard notified the Department that he had landed a force to protect the lives and property of American citizens against the threats of the Colombian soldiery. Before any step whatever had been taken by the United States troops to restore order, the commander of the newly landed Colom- bian troops had indulged in wanton and violent threats against American citizens, which created serious apprehension. As com- mander Hubbard reported in his letter of November 5, this officer and his troops practically began war against the United States, and only the forbearance and coolness of our officers and men prevented bloodshed. * * * This plain official account of the occurrences of November 4, shows that, instead of there having been too much provision by the American Government for the maintenance of order and the protection of life and property on the Isthmus, the orders for the movement of the American war ships had been too long delayed; so long, in fact, that there were but forty-two marines and sailors available to land and protect the lives of American men and women. It was only the coolness and gallantry with which this little band of men wearing the American uniform faced ten times their number of armed foes, bent on carrying out the atrocious threat of the Colombian commander, that prevented a murderous catastrophe. At Panama, when the revolution broke out, there was no American man-of-war and no American troops or sailors. At Colon, Commander Hubbard acted with entire impartialty to- ward both sides, preventing any movement, whether by the Co- lombians or the Panamans, which would tend to produce bloodshed. On November 9 he prevented a body of the revolutionists from landing at Colon. Throughout he behaved in the most creditable manner. * * * I hesitate to refer to the injurious insinuations which have been made of complicity by this Government in the revolutionary movement in Panama. They are as desitute of foundation as of propriety. The only excuse for my mentioning them is the fear lest unthinking persons might mistake for acquiescence the silence of mere self-respect. I think proper to say, therefore, that no one connected with this Government had any part in preparing, incit- ing, or encouraging the late revolution on the Isthmus of Panama, and that save from the reports of our military and naval officers given above no one connected with this Government had any pre- vious knowledge of the revolution except such as was accessible to any person of ordinary intelligence who read the newspapers and kept up a current acquaintance with public affairs. By the unanimous action of its people, without the firing of a shot — with a unanimity hardly before recorded in any similar case — the people of Panama declared themselves an independent Re- public. Their recognition by this Government was based upon a state of facts in no way dependent for its justification upon our action in ordinary cases. I have not denied, nor do I wish to deny, either the validity or the propriety of the general rule that a new state should not be recognized as independent till it has shown its ability to maintain its independence. This rule is derived from the prnciple of non-intervention, and as a corollary of that prin- ciple has generally been observed by the United States. But, like the principle from which it is deduced, the rule is subject to ex- ceptions; and there are in my opinion clear and imperative rea- sons why a departure from it was justified and even required in the present instance. These reasons embrace, first, our treaty rights; second, our national interests and safety; and, third, the interests of collective civilization. * * * That our position as the mandatary of civilization has been by no means misconceived is shown by the promptitude with which the powers have, one after another, followed our lead in recogniz- ing Panama as an independent State. Our action in recognizing the new Republic has been followed by like recognition on the part of France, Germany, Denmark, Russia, Sweden and Norway, Nicaragua, Peru, China, Cuba, Great Britain, Italy, Costa Rica, Japan, and Austria-Hungary. The man who tills his own farm, -whether on the prairie or in the woodland, the man -who grows what we eat and the raw mate- rial -which is worked up into what -we wear, still exists more nearly under the conditions which obtained when the "embattled farmers" of '76 made this country a nation than is true of any others of our people President Roosevelt at Sioux Falls, S. Dak., April 6, 1903. We are not disposed to disturb the international peace, and we do not seek to interfere with the domestic affairs of other powers. While we are obliged to play a greater part In the af- fairs of the -world than when Washington spoke, there is the same good reason for avoiding entangling alliances as then. — Hon. C. W. Fairbanks, at anniversary of Battle of Monmouth, Freehold, N. J., June 27, 1903. THE PANAMA CANAL. 279 Letter of the President Placing: the Isthmian Canal Comm.ssion Under the Supervision and Direction of the Secretary of War Etc. White House, Washington ,D. C, May 9, 1904. Sir: By the act of Congress approved June 28, 1902, the President of the United States is authorized to acquire for and on behalf of the United States all the rights, privileges, franchises, concessions, grants of lands, rights of way, unfinished work, plants, shares of the capital stock of the Panama Railway, owned by or held for the use of the new Panama Canal Company, and any other property, real, personal, and mixed of any name or nature owned by the said new Panama Canal Company situated on the Isthmus of Panama. The President is by the same act also authorized to acquire for and on behalf of the United States, perpetual control of a strip of land on the Isthmus of Panama, not less than six miles in width, extending from the Caribbean Sea to the Pacific Ocean, and the right to excavate, construct, and maintain perpetually, operate and protect thereon, a ship canal of certain specified capacity, and also the right to perpetually operate the Panama Railroad. Having acquired such rights, franchises, property, and control,, the Presi- dent is by the same act required to excavate, construct, and com- plete a ship canal from the Caribbean Sea to the Pacific Ocean, and to enable him to carry forward and complete this work, he is authorized to appoint, by and with the consent of the Senate, an Isthmian Canal Commission of seven members, who are to be in all matters subject to his direction and control. By the terms of the canal convention between the United States and the Republic of Panama, entered into in pursuance of the said act of Congress approved June 28, 1902, the ratifications of which were exchanged on the 26th day of February, 1904, the Republic of Panama granted to the United States: First, the perpetual use, occupation, and control of a* certain zone of land, land under water including islands within said zone, at the Isthmus of Panama, all to be utilized in the construction, maintenance and operation, sanitation and protection of the ship canal, of the width of ten miles, extending to the distance of five miles on each side of the central line of the route of the canal, and the use, occupation, and control of other lands and waters outside of the zone above described which may be necessary and con- venient for the construction, maintenance, operation, sanitation, and protection of said canal or of any auxiliary canals or other works necessary and convenient for the same purpose; also the islands of Perico, Naos, Culebra, and Flamenico, situated in the Bay of Panama; and Second, all the rights, powers, and authority within the zone, auxiliary lands and lands under water, which the United States would possess and exercise if it were the sovereign of the territory gr Anted, to the entire exclusion of the exercise by the Republic of Panama of any such sovereign rights, power, and authority. By the act of Congress approved April 28, 1904, the President is authorized, upon acquisition of the property of the new Panama Canal Company, and the payment to the Republic of Panama of the price for the compensation agreed upon in the said canal con- vention, to take possession of and occupy on behalf of the United States the zone of land, and land under water including islands within said zone, at the Isthmus of Panama of the width of ten miles, extending to the distance of five miles on each side of the central line of the route of the canal to be constructed thereon, including the islands of Perico, Naos, Culebra, and Flamenico, and from time to time as may be necessary and convenient certain auxiliary lands and waters outside the said zone for the purpose of constructing, maintaining, operating, sanitating, and protecting the ship canal, the use, occupation, and control whereof were granted to the United States by the Republic of Panama in the said canal convention. By the same act, the President is authorized, for the purpose of providing temporarily for the maintenance of order in the canal zone and for maintaining and protecting the inhabitants thereof in the free enjoyment of their liberty, property, and religion, to delegate such person or persons as he may designate and to con- trol the manner of their exercise, all the military, civil, and judicial powers, as well as the power to make all needful rules and regula- tions for the government of the canal zone and all the rights, powers and authority granted by the said Canal Convention to the United States, until the close of the Fifty-eighth Congress. Payments of the authorized purchase price of $40,000,000 to the new Panama Canal Company for the property of that corpora- tion on the Isthmus, including the shares of railway stock and for the records in Paris, and of the sum of $10,000,000, as stipulated in the canal convention, to the Republic of Panama for the rights, powers and privileges granted to the United States by the terms of the said convention, have been made and proper instruments of transfer have been executed by the Panama Canal Company. The members of the Isthmian Canal Commission have been appointed. They have organized the commission and entered upon their duties. I have taken possession of and now occupy, on behalf of the United States, the canal zone and public land ceded by the Republic of Panama. It becomes my duty, under the statutes above referred to, to secure the active prosecution of the work of construction of the canal and its auxiliary works, through the Isthmian Canal Com- mission, and in connection with such work and in aid thereof to organize and conduct a temporary government of the zone, so as to 280 THE PANAMA CANAL. maintain and protect the inhabitants thereof in the free enjoyment of their liberty, property, and religion. Inasmuch as it is impracticable for the President, with his other public dutes, to give to the work of supervising the commis- sion's construction of the canal and government of the zone the per- sonal attention which seems proper and necessary, and inasmuch as the War Department is the department which has always super- vised the construction of the great civil works for improving the rivers and harbors of the country and the extended military works of public defense, and as the said department has from time to time been charged with the supervision of the government of all the island possessions of the United States, and continues to super- vise the government of the Philippine Islands, I direct that all the work of the commission done by virtue of powers vested in me by the act of Congress approved June 28, 1902, in the digging, con- struction, and completion of the canal, and all the governmental power in and over said canal zone and its appurtenant territory, which by virtue of the act of Congress approved April 28, 1904, and these instructions shall be vested in said Isthmian Canal Commission, shall be carried on or exercised under your super- vision and direction as Secretary of War. Subject to the limitations of law and the conditions herein contained, the Isthmian Canal Commission are authorized and directed: * 1, To make all needful rules and regulations for the govern- ment of the zone and for the correct administration of the military, civil, and judicial affairs of its possessions until the close of the Fifty-eighth Congress. 2. To establish a civil service for the government of the strip and construction of the canal, appointments to which shall be secured as nearly as practicable by a merit system. 3. To make or cause to be made all needful surveys, borings, designs, plans, and specifications of the engineering, hydraulic, and sanitary works required, and to supervise the execution of the same. 4. To make and cause to be executed after due advertisement all necessary contracts for any and all kinds of engineering and construction works. 5. To acquire by purchase or through proper and uniform expropriation proceedings, to be prescribed by the commission, any private lands or other real property whose ownership by the United States is essential to the excavation and completion of the canal. 6. To make all needful rules and regulations respecting an economical and correct disbursement and an acounting for all funds that may be appropriated by Congress for the construction of the canal, its auxiliary works, and the government of the canal zone; and also to establish a proper and comprehensive system of bookkeeping, showing the state of the work, the expenditures r-v classes, and the amounts still available. 7. To make requisition on the Secretary of War for fui.ls needed from time to time in the proper prosecution of the work and to designate the disbursing officers authorized to receipt for the same. The inhabitants of the Isthmian Canal Zone are entitled to security in their persons, property, and religion, and in all their private rights and relations. They should be so informed by public announcement. The people should be disturbed as little as possible in their customs and avocations that are in harmony with principles of well ordered and decent living. The municipal laws of the Canal Zone are to be administered by the ordinary tribunals substantially as they were before the change. Police magistrates and justices of the peace and other officers discharging duties usually devolving upon these officers of the law will be continued in office if they are suitable persons. The governor of the zone, subject to approval of the commission, is authorized to appoint temporarily a judge for the Canal Zone, who shall have the authority equivalent to that usually exercised in Latin countries by a judge of a court of first instance, but the Isthmian Canal Commisson shall fix his salary and may legislate respecting his powers and authority, increasing or diminishing them in their discretion, and also making provision for additional or appellate judges, should the public interest require. The laws of the land, with which the inhabitants are familiar, and which were in force on February 26, 1904, will continue in force in the Canal Zone and in other places on the Isthmus over which the United States has jurisdiction until altered or annulled by the said commission, but there are certain great principles of government which have been made the basis of an existence as a nation which we deem essential to the rule of law and the main- tenance of order, and which shall have force in said zone. The principles referred to may be generally stated as follows: That no person shall be deprived of life, liberty, or property without due process of law; that private property shall not be taken for public use without just compensation; that in all criminal prosecutions the accused shall enjoy the right of a speedy and public trial, to be informed of the nature and cause of the accusation, to be confronted with witnesses against him, to have compulsory process for obtaining witnesses in his favor, and to have the assistance of counsel for his defense; that excessive bail shall not be required nor excessive fines imposed, nor cruel or unusual punishment inflicted; that no person shall be put twice in jeopardy for the same offense, or be compelled in any criminal case to be a witness against himself; that the right to be secure against unreasonable searches and seizures shall not be violated; that neither slavery nor involuntary servitude shall exist except as a THE PANAMA CANAL. 281 punishment for crime; that no bill of attainder or ex post facto law shall be passed; that no law shall be passed abridging the freedom of speech or of the press, or of the rights of the people to peaceably assemble and petition the government for a redress of grievances; that no law shall be made respecting the establishment of religion or prohibiting the free exercise thereof: Provided, how- ever, that the commission shall have power to exclude from time to time from the Canal Zone and other places on the Isthmus over which the United States has jurisdiction persons of the following classes who were not actually domiciled within the zone on the 2Gth day of February, 1904, viz: Idiots, the insane, epileptics, paupers, criminals, professional beggars, persons afflicted with loathsome or dangerous contagious diseases, those who have been convicted of felony, anarchists, those whose purpose it it is to incite insurrection, and others whose presence it is believed by the commission would tend to create public disorder, endanger the public health, or in any manner impede the prosecution of the work of opening the canal; and may cause any and all such newly arrived persons or those alien to the zone to be expelled and de- ported from the territory controlled by the United States, and the commission may defray from the canal appropriation the cost of such deportation as necessary expenses of the sanitation, the police protection of the canal route, and the preservation of good order among the inhabitants. The commission may legislate on all rightful subjects of legis- lation not inconsistent with the laws and treaties of the United States so far as they apply to said zone and other places, and the said power shall include the enactment of the sanitary ordinances of a preventive or curative character to be enforced in the cities of Colon and Panama and which are contemplated and authorized by article 7 of said canal convention. Such legislative power shall also include the power to raise and appropriate revenues in said zone; and all taxes, judicial fines, customs duties, and other revenues levied and collected in said zone by or under the au- thority of said commission shall be retained, accounted for, and disbursed by said commission for its proper purposes. The mem- bers of said commission to the number of four or more shall con- stitute a legislative quorum, and all rules and regulations passed and enacted by said commission shall have set forth as a caption that they are enacted by the Isthmian Canal Commission "By au- thority of the President of the United States." The commission shall hold its regular quarterly meetings at the office of the commission either in Panama or at a branch office in Washington, and special meetings may be held at the pleasure of the commission. All laws, rules, and regulations of a governmental character enacted by the commission hereunder shall be submitted to you for your approval, and should your approval be withheld from any such law, rule, or regulation, then from that time the law, rule, or regulation shall thereafter have no force or effect. Major-General George W. Davis, U. S. Army (retired), a mem- ber of the Canal Commission is hereby appointed governor of the Isthmian Canal Zone. He will proceed at once to the Isthmus of Panama. He will in my name, as the chief executive in the Canal Zone, for and on behalf of the United States, see that the laws are faithfully executed, and will maintain possession of said territory, including the public lands therein and the property real and mova- ble on the Isthmus of Panama, except that of the Panama Rail- road, that has recently been acquired from the Republic of Pana- ma. He is hereby vested with the power to grant reprieves and pardons for offenses against the rules, regulations, and laws in force by virtue of action of the commission or by virtue of the clause hereof continuing in force the laws of Panama. In case of his disability or absence from the Canal Zone at any time, the Isthmian Canal Commission is empowered to designate the person or persons to act as governor during such absence or disability. Except as herein prescribed the duties of the governor shall be fixed by legislation of the Canal Commission. For the preservation of order and protecting the property of the United States, within or without said zone as provided by article 7 of the canal convention, an adequate police force shall be maintained. If at any time there shall arise necessity for mili- tary or naval assistance the governor shall, if possible, promptly notify you, and in the event of a sudden exigency the governor may call upon any available military or naval force of the United States to render assistance, and the same shall be immediately furnished. It is a matter of first importance that the most approved and effective methods and measures known to sanitary science be adopted in order that the health conditions on the Isthmus may be improved. It is the belief of those who have noted the success- ful results secured by our army in Cuba in the obliteration of yellow fever in that island that it is entirely feasible to banish the diseases that have heretofore caused most mortality on the Isth- mus, or at least to improve as greatly the health conditions there as in Cuba and Porto Rico. I desire that every possible effort be made to protect our officers and workmen from the dangers of tropical and other diseases, which in the past have been so preva- lent and destructive in Panama. Rear T Admiral John G. Walker, U. S. Navy (retired), and Colonel Frank J. Hecker, members of the Isthmian Canal Commis- sion, are hereby designated as members of the joint commission provided for by articles 6 and 15 of the canal conven- tion. The moiety of the necessary expenses of the commission to be created in pursuance of articles 6 and 15 of the above-cited 282 THE PANAMA CANAL. canal convention will be defrayed from the appropriation applica- ble to the ship canal to connect the waters of the Atlantic and Pacific oceans. The Isthmian Canal Commission will prepare for Congress and place in your hands on or before December 1 of each year a full and complete report of all their acts and of the operations con- ducted by them in respect to the canal construction and the gov- ernment of the Canal Zone. These reports will contain a detailed account of all moneys received and disbursed in the performance of their duties and of the progress made in the construction of the canal. The necessary expenses incurred by the commission in carry- ing on the government of the Canal Zone will be defrayed from the local revenues so far as the said revenues may be sufficient, and the remainder will be met from the appropriation made by the fifth section of the act of Congress approved June 28, 1902. An estimate of the proposed expenditures and revenues for each year in carrying on the government of the zone will be submitted to Congress at the beginning of each annual session. By virtue of the ownership by the United States of about sixty-nine seventieths of the shares of the capital stock of the Panama Railroad the general policy of the managers of said road will be controlled by the United States. As soon as practicable I desire that all the members of the Isthmian Canal Commission be elected* to the board of directors of the road, and that the policy of the road be completely harmonized with the policy of the Gov- ernment of making it an adjunct to the construction of the canal, at the same time fulfilling the purpose for which it was con- structed as a route of commercial movement across the Isthmus of Panama If any contracts or other obligations now subsist be- tween the railway company and other transportation companies that are not in accord with sound public policy, then such con- tracts must be terminated as soon as it is possible to effect that object. No salary or per diem allowance of compensation in addition to the stated salary and per diem allowance of the members of the Isthmian Canal Commission will be allowed to any member of the commission by reason of his services in connection with the civil government of the canal zone, or his membership of any board or commission concerned in or connected with the construction of the canal, or by reason of his services as an officer or director of the Panama Railroad. If there now be in force within the Canal Zone any franchise granting to any person or persons a privilege to maintain lotteries or hold lottery drawings or other gambling methods and devices of a character forbidden by the laws of the United States, or if the grantee of any such privilege has now the right to sell lottery tickets or similar devices to facilitate the business of the conces- sionaire, the commission shall enact laws annulling the privileges or concessions and punishing future exercise of the same by im- prisonment or fine, or both. These instructions may be modified and supplemented as oc- casion shall arise. Very respectfully, THEODORE ROOSEVELT. Hon. William H. Taft, Secretary of War. We shall send our flag Into all ports of trade, not as a menace, but as the harbinger of peace and good-will. — Hon. C. W. Fair- banks, at Freehold, N. J., June 27, 1903. This is an era of great combinations both of labor and of capi- tal. In many ways, these combinations have worked for good; but they must work under the law. — President Roosevelt at Charleston, April 9, 1902. It is almost as necessary that our policy should be stable as that it should be wise. A nation like ours could not long stand the runious policy of readjusting its business to radical changes in the tariff at short Intervals, especially when, as now, owing to the immense extent and variety of our products, the tariff schedules carry rates of duty on thousands of different articles.— President Roosevelt at Minneapolis, April 4, 1903. The man on the farm, more than any other of our citizens to- day, is called upon continually to exercise the qualities which we like to think of as typical of the United States throughout its his- tory—the qualities of rugged independence, masterful resolution, and individual energy and resourcefulness. He works hard (for which no man is to be pitied), and often he lives hard (which may not be pleasant); but his life is passed In healthy surround- ings which tend to develop a fine type of citizenship.— President Roosevelt at Rangor, Me., Aug. 27, 1902. THE PANAMA CANAL. 283 P 3 8 5 3 ^ *2 p a -a « a I Wo; C. ft 9 &>> s °* I teg a o - 5 o a> B OS ft ft 03 C3 |i 02 O * 2 °a> a) a> o 0) 03 © co *■• O ? a) a> %\ co« p s CO .p sb ^ 4) CO «w S 03 -23 P w fe CO . o « » «5H , CO 03 ,q »d 4-> pp ** TBUBO BraBUBd bia 'IBUBQ zans 'BIA •adoH pooo joadBQBiA •IBubo BuiBnBd; bi A 'IBUBO zans 'BIA •adon pooo joadBQBiA 'IBUBO BUIBUBd; BI a zans bia •adoHPOOQ joadBQBiA 'IBUBQ BUIBUBtlBIA •fBUBO zans «ia •adOH pooo joad'BQ'BXA 'IBUBO BCUBUBa BTA 'IBUBO zans bia •adoHPOOQ joadBQBiA "IBUBQ BUtBUBd BJA •IBUBO zans bia •adoHPooo jo adBO bia •IBnBQ BmBUBd: bia TBUBQ zans ^JA HNW-o^«M^io©t- 0005)Cfl«'H'*'-oiooo'*'H«-os©_ cq coco os ©_©*-<_ rirJ-r*^! m i-h" fH »-T n (S* ©» 8* O* ->*<-*J* in cq 35 os o ^ ^ o Tt<" -** ■* ■* •*" tji* -*" t(" Tt* ■*" ■*" ■*' ^c' in in us io coin^oot^?oosos-*ost^w5©J^«0(Mt- cooomoo-*W'<)it©(Nintoi'«D'* in cq tj< co at i-h im_ i-« ao oo co_ cd eo «q t^ i^ to i-I (N* ^* r^' — " >-" >-< i-i O O* O* O* O O* O O* O 05t>ococo(N-*cooioit-coooooo-^— i 0)x»cooein»MON-ioa)iwt-t» Oi co w co in co t-_ t-_ os O co_ ao_ oo oq o o -< O r" t+ .-<* r4 i-i i-J i-I «' ei ei ei ci 5* co" co co •^t^inint-t-osos^Hin — moeoooiN Hrt(M«oiNOXM®M«inCiOI-« Tf OS CD CO_ C0_ 5> oo t^ r-_ !> OS_ 0* (M_ ©I CO CO eo_ COC0C0C0C0C0COCOCOC0C0^*^t , ^ 1 ^*^ < ^* i-(MN?oin^t-N(SNinMC»'*oin i-l COCO CO X '-■MO'T!'Mi1osos — rHcot-cot-Nin^H— 'OS cOcDl^cD-»i^lcD-*ioO^HOOcOO'-«eol- -* as co co t- oq oq oo_t- oq os w co co ■«*<•* co CO* co* co" co' co" co* co" co" co" co' CO* -*" ■**<" -* Tjl* -^* Tj< -jMgcom^fMN^inMOffJTtioin ®»«xwwt>mt-t-»ioxx!-*t- in co tj< co_ ©» o* oirtoooococococor-t-co Oi— ooooooosos'ososososososos §oo»-it-oscoinr-ooco-*i-iososine* T»iTjioscD(M-HTtic5t-oot--Hinoscoco .■* ■* eo ini-x_x_qq« oo os os © -^ o* »j o* ei ei ei ei ei ei co" co" co" co" co" co" ■** •**" -^ ■^^toocOinoo^ijiiN C0^00(N00t-O-H«C000 ; > > (O t^_ X « N « (i) « N •^TtiTji->t^^Tj*-^T»*-^*'^"inininin»nin OOOOSCONHifc^OJTtlCJOt^Cr-lNei » = *csooco.-s<»com — co-*t (M* (M* ei ei co" co" co" co" co co" co" ■** tji ■*" tji* Tt" V inoo cpcOCOOOOO(MCO(Ncp^HTt i> i> cq cq eq os i-< « -h e* e* i-h ooososososo3*os*ososodososos*ososos co-^t-coinosi- icococOThot-inm^oo in-<*icooscD'-ii-i-uOinosco c3cDO S'S^^|Hflc3^§S^'S> ^sooa^csfl^ca.^moaJcscs, i-H5oooso-H(Mco'tiinco!> 284 cuba. CUBA. The Generous and Honorable Course of the I felted States Toward That Island the Work of the Iteiuihliean Party. The record of the United States in respect to its dealings with Cuba during the Last seven years constitutes one of the brightest and most honorable chapters in the history of the human race. This is now the unanimous verdict of the nations of the earth. The people of Cuba, driven to revolution by long-continued oppression and abuses on the part of Spain, had proved unequal to the task of throwing off the yoke and achieving independence unassisted. Finally the contest became marked by such cruel- ties and barbarities that the United States in the interest of com- mon humanity felt compelled to interfere and to demand of Spain independence for Cuba. This demand led to the war be- tween the United States and Spain, the details of which are so well known. As the grand result of that interference on the part of the United States and of the subsequent temporary government of the island by the United States, Cuba has become a free Repub- lic, the terrible wounds of the revolution have been healed, the immense property losses, estimated at a billion dollars, have been mainly recouped, the stricken industries of the people have been rehabilitated, the burden of the old public debt has been cast off, the courts and laws have been reformed, the former illit- eracy and ignorance of the mass of the people have been rem- edied by an admirable system of public education, the serious epidemics of yellow fever, etc., have been stamped out and the old unsanitary conditions removed, great improvements have been instituted in all the public departments and works, includ- ing the police force and rural guard, the fire department, the water supply, the roads, the pavements, the sewers, the harbor channels, the light-houses, etc., and a modern system of repub- lican governmental machinery established, including national ex- ecutive and legislative departments, subordinate provincial and municipal governments, and a thoroughly up-to-date tariff and customs service of such efficiency that from the very start the revenues of the new Republic have far exceeded its expenditures and there has been a handsome surplus in the treasury. CLEAN RECORD OF UNITED STATES. In a word, the United States first enabled Cuba to win her independence, then took Cuba in charge for three years and taught her how to administer a successful Republic, and then handed the reins of government over to the Cubans and re- tired from the island. The United States did all this simply as a manifestation of brotherly kindness, entirely at its own ex- pense; and since resigning authority in Cuba in 1902 the United States has given another practical proof of genuine friendship for the new Republic by enacting a reciprocity treaty, or com- mercial convention, giving to the Cubans the advantage of 20 per cent rebate on our tariff duties for all Cuban products subject to duty at United States ports. All these grand results were accomplished by the power and will of the Republican party of the United States, under the responsible management of the two Republican administrations of McKinley and Roosevelt, and in spite of the almost undeviat- ing opposition of the Democratic party. This is not a mere party claim or boast. It is a simple fact of political history. Although, when brought face to face with the main questions at issue, the majority of the Democratic Congressmen generally voted for the various war and Cuban measures, the leaders of that party, in and out of Congress, from the very outset, •strove persistently to obstruct the legislation proposed by the Republicans, and to hinder and embarrass the Government in the execution of its Cuban policy. CUBA. 285 STUBBORN DEMOCRATIC OPPOSITION. In 1896, in the Fifty-fourth Congress, resolutions were passed recommending the friendly intervention of this government in behalf of the Cubans. The Democratic President and admin- istration took no notice of the resolutions. In 1898, in the Fifty-fifth Congress, the Democrats endeavored to delay action on. the war resolutions, but were prevented by a ruling of Speaker Reed. They finally all voted for these reso- lutions; but on the appearance of the war revenue bill, for pro- viding ways and means for carrying on the war, they raised all sorts of objection and opposition to it, and seventy-eight of them actually voted against it. During the war the Democrats omitted no opportunity to criticise President McKinley and his associated high officials in the War and Navy Departments for their conduct of the war, and they eagerly seized upon every piece of scandal, reported or rumored, in their keen desire to bring discredit upon the author- ities w r ho were bearing the burden of the struggle and striving to preserve the honor of the country. When the war was over and the treaty of peace was under consideration the Democrats bitterly opposed ratification, and barely a sufficient number of them voted "with the Republicans to secure that result. Even this faint-hearted support of the treaty by a few of their number was, in part at least, for the purpose of merely assuring completion of the Republican policy, upon which they believed they could successfully attack the party in the campaign of 1900, then at hand. Ten Democrats and. three Populists and three members of the Silver party and one independent voted for the ratification of the treaty. During the temporary government of Cuba by the United States authorities the Democrats kept up the same system of opposition and criticism to all features of the Republican policy toward the island, including the eminently wise and necessary "Piatt Amendment." They imputed blame to all the leading United States officials temporarily in charge of Cuban affairs and threw suspicions on all their motives. A CHRONOLOGICAL COMPILATION. Under the title of "The Establishment of Free Government in Cuba," a very complete and lucid compilation from the records of the War Department has recently been made by the Bureau of Insular Affairs, giving the details, in chronological order, of all the important developments between the United States and Cuba since April 20, 1898. The compilation may be summarized as follows : On April 20, 1898, Congress adopted a joint resolution stating that the conditions in Cuba had become intolerable, that Cuba had a right to be free, that the United States therefore demanded of Spain the relinquishment of the island, that in enforcing this demand the President be empowered to make full use of the land and naval forces of the United States and the militia of the several States, and that the United States expressly disclaimed "any disposition or intention to exercise sovereignty, jurisdiction, or control over said island, except for the pacification thereof," and asserted its determination, when that was accomplished, to "leave the government and control of the island to its people." On April 25, 1898, Congress passed an act formally declaring war against Spain. On August 12, 1898, the United States and Spain agreed upon a protocol, by the terms of "which Spain promised, among other things, to relinquish all sovereignty over Cuba, and to evacuate the island, which protocol was followed by a suspension of hos- tilities. On September 10, 1898, the treaty of Paris was signed, by which, among other things, it was agreed that Spain relinquished all claim and title to Cuba, and that during the period of the occupation of the island by the United States the United States should discharge all obligations resulting from such occupation, under international law. THE GOVERNMENT OF INTERVENTION. On January 1, 1899, the Spanish evacuated Habana and re- linquished sovereignty of the island, and the government was transferred to the military governor as the representative of the President of the United States. Measures were then at once Initiated by this temporary authority to establish a permanent ami stable republican government to be administered by the Cubans themselves, and from that hour until the Cuban Republic was proclaimed on May 20, 1902, this idea was kept steadily in v iew by the "government of intervention," with the determination U> accomplish the object as speedily as possible. The iirst step was to provide for taking a census, in order to ascertain the population and the age and other qualifications for citizenship and suffr ge. Spa? ish citizens remaining in Cuba were given the option of becoming Cuban citizens, and large numbers of them did so. A basis for suffrage was agreed upon by a conference of leading Cubans, an election law was promulgated, and on June 16, 1900, an election was held throughout the island for municipal officers. This election was managed and participated in solely by Cubans, not a United States official or soldier being at or near any polling place, and it was completely successful in all respects. The next step was the calling of an election for the choice of delegates to a constitutional convention. This election was held on September 15, 1900, and was also entirely under the charge of Cubans. The thirty-one members of the constitutional convention were duly elected, and the convention began its sessions at Habana on November 5, 1900, for the purpose of framing a national constitution, agreeing upon the future rela- tions of Cuba with the United States, and providing for the popular election of officers of the Cuban Government under that constitution. THE PLATT AMENDMENT. In regard to the point concerning the future United States- Cuban relations, it was settled satisfactorily to both nations by the adoption, by both, of what has come to be permanently designated as the "Piatt Amendment." This consisted of a series of propositions offered by Senator Piatt of Connecticut as an amendment to the pending army appropriation bill in the last hours of the Fifty-sixth Congress, and passed by that Congress on March 2, 1901. By this amendment it was provided that the recognition of the full independence of Cuba by the United States should be conditioned upon the Cubans agreeing (1) never to permit any foreign power, by treaty, colonization, or other- wise, to obtain any control over Cuba or its territory tending to impair its independence; (2) never to contract any public debt beyond the capacity of the ordinary revenues of the island to take care of; (3) that the United States may intervene in Cuba for the preservation of Cuban independence and for the main- tenance of a government adequate for the proper discharge of its constitutional functions and Obligations; (4) that the acts of the United States in Cuba during the temporary government be ratified and validated and all rights thereunder honored and protected; (5) that the new sanitary system in the Cuban cities be faithfully continued, and (6) that two naval stations in Cuba be sold or leased to the United States. On June 12, 1901, these conditions were accepted and adopted by the Cuban constitutional convention, and their text grafted upon the new* Cuban constitution. This being deemed satisfactory and conclusive by the United States, nothing remained except to elect the new Cuban general officials under the constitution. The election for governors, mem- bers of the house of representatives, presidential and senatorial electors, etc., was held on December 31, 1901, and on February 24, 1902, the electors met and elected a president, vice-president, and senators. May 20, 1902, was agreed upon for inauguration day, and on that day the Republic of Cuba was formally put into action as a "going concern" by the preceding government of intervention. In the morning all the general offices and national affairs of the CUBA. 28? land were in the hands of United States officials; in the afternoon they were all in the hands of the corresponding Cuban officials, and that, too, without the slightest friction or confusion. The evacuation of Cuba by the United States officials and forces took place at once, a few troops being temporarily retained in the important fortifications, by mutual consent and in the. interest of the public safety, until the new government could replace them by an adequate force of Cuban ^roops. The transfer was made the occasion of a national holiday, the representatives and citi- zens of the United States joining heartily with the Cubans in the general jubilation. Congratulatory messages were exchanged by President Roosevelt and President Palma, and by Secretary Root and President Palma. The Cuban President officially ex- pressed the gratitude of the Cuban people for the services rendered to them by the United States, and pledged the Republic to the performance of all the duties and obligations imposed by the treaty of Paris and the "Piatt Amendment" GENERAL RESULTS. In recapitulating the principal features of the civil adminis- tration of the temporary government, the report of the Bureau of Insular Affairs states that the first thing in order after assuming control in 1899 was the maintenance of domestic peace, the relief of physical distress among the suffering inhabitants, the sanitation of the towns, and the rebuilding of the industries of the island. The maintenance of public order was easily ac- complished. The relief from hunger and illness involved a thorough house-to-house inspection and the distribution of large quantities of food and medicines. More than 5,000,000 rations were thus distributed during the first six months of 1899, without the cost of a penny to the Cubans. The claims of the Cuban isoldiers were satisfied by the payment to them by the United States of about $2,500,000 on account of or in lieu of salaries and wages for military service. The sanitary reform instituted in the island was on the most elaborate scale. Sanitary corps were organized, systematic inspections were made, streets cleaned, sewers introduced, buildings disinfected, water supplies rigidly investigated and improved, and, above all, the cause of yellow fever scientifically ascertained, with the result of bringing that disease under control and expelling it from the island. Equally careful attention was given to the cause of education. Before the war the Cuban school system was very deficient. In such public schools as existed, poorly taught, poorly furnished, poorly equipped, there was a nominal enrollment in 1897 of about 30,000 pupils. In less than six months after the occupation of the island by the United States authorities the public school en- rollment numbered 143,000, and the school premises and equip- ments had been greatly improved. Modern text-books and ap- paratus were introduced, and several hundred Cubrjn teachers were taken to the United States and given special instruction there in their calling. Thousands of others received similar in- struction in teachers' institutes in Cuba, established by the United States authorities. Besides all this extensive reforms and improvements were introduced in the prisons, asylums, hospitals, dispensaries, etc., and a radical change for the better was effect- ed in regard to the management of the railways of the island. In order to hasten the work of rehabilitating the industries of Cuba the government of intervention furnished to needy planters and farmers more than $100,000 worth of farm animals, as a free gift. The report of the Bureau of Insular Affairs concludes by presenting the balance sheet showing the revenues and ex- penditures of Cuba under the temporary government, with the former amounting in round numbers to $57,000,000 and the lat- ter to $55,000;000, thus leaving a surplus of about $2,000,000 in the gross. In view of all these gratifying results, the order of Secretary Root to the Army of the United States, of date July 4, 1902, thanking the officers and enlisted men recently on duty in Cuba for their very successful efforts and achievements in the island, must surely receive the hearty indorsement of the people of the United States. 288 cuba. Utfipniciij with Cuba. After the inception of the Cuban Republic the first question of importance to claim the attention of the United Suites with regard to Cuba was the question of reciprocity. As a rule, reci- proeity, or reciprocal commercial conventions, between nations is a simple business proposition, to be decided on simple business principles. In the case of Cuba, however, the great majority of the honorable, right-thinking citizens of the United States have acknowledged from the first that the moral element pertained to the reciprocity proposition. In the first place, the United States was in large part, responsible for the fact of Cuban independence, and it would therefore seem obvious that the United States was morally bound to see that this independence did not prove Cuba's undoing, and that the Infant nation should have at least a fair chance of life. Furthermore, it was evident that without practical assistance of material proportions from the outside Cuba could hardly recover from the fearful losses of the war. The great industries of Cuba had been sugar and tobacco. These had been almost ruined by the war. The plantations had been ravaged, the crops destroyed, the animals confiscated, the build- ings, machinery, and utensils burned up. Besides, in the case of sugar, the cane-sugar producers were confronted with a ruinous beet-sugar competition, and during the war prices of sugar had gone below pay level from a Cuban point of view. Both President McKinley and President Roosevelt repeatedly in their messages to Congress urged the adoption of reciprocity with Cuba, and both called attention to the moral aspect of the question. In his special message of June 13, 1902, on the subject President Roosevelt argued that Cuba's very life would for many years dejoend upon her treatment by the, United States, and that Cuba had at our request and dictation' assumed special obliga- tions toward the United States, which, as a matter of dionor, placed the United States under special moral obligations toward Cuba. We had already helped her ; we should continue to help her, and "are bound by every consideration of honor and expediency to pass commercial measures in the interest of her material well- being." The President also adduced other arguments of a more practical nature. President Roosevelt's message on this subject is printed in the document "Pages from the Congressional Rec- ord," as are also numerous speeches in Congress on the reciproc- ity measure. These should be examined by those desiring a de- tailed study of this subject. OPPOSITION BY DEMOCRATS ONLY. The matter came up in the Fifty-seventh Congress, but nothing decisive was done until the Fifty-eighth. A reciprocity treaty or commercial convention was prepared by accredited repre- sentatives of both nations in December, 1902. In March, 1903, the United States Senate met in special session and ratified the convention with certain amendments, one of which made it requisite for the House of Representatives to agree to the rati- fication. Accordingly, President Roosevelt called a special ses- sion of both Houses in November. 1903, to further consider the matter. The House passed a bill to carry into effect the proposed convention on November 19, 1903, by a vote of 335 to 21; and the Senate passed the same bill on December 16, 1903, by a vote of 57 to 18. In both Houses the negative vote was cast entirely by Democrats, and practically all the opposition in the debates teas voiced by Democrats. The new treaty went into effect on December 27, 1903, and, unless denounced, will continue in force for five years from that date. Aside from the articles on the free lists of both countries the treaty admits into the United States all the products of Cuba at a reduction of 20 per cent, of the United States tariff duties thereon, and admits into Cuba all the products of the United States (except tobacco) at various reductions of 20, 25. 30, and 40 per cent, of the Cuban tariff duties thereon, the articles pertain- ing to the different rates of reduction being carefully specified in the text of the instrument CUBA. 389 GBBAT INCREASE OP TRADE UNDEB THE TREATY, The Cuban reciprocity treaty has been in operation practically ! since; January 1, 1904, and the official figures of the commerce and trade between the two countries this year thus far prove .' very satisfactory to the friends of the reciprocity proposition ! and to those who argued and prophesied that the results of the i new arrangement would be of much benefit to the people of ! both communities and would injure no industry in either country. ! According to statistics compiled by the Department of Commerce and Labor through its Bureau of Statistics the United States ' exports to Cuba during the first three months of this year ; amounted in value to $6,495,149, as against $5,211,063 during the first three months of 1903. This is an increase of nearly 25 per ; cent. The percentage of increase of the imports into the United States from Cuba for tfie same period is still greater, amounting to nearly 100 per cent, and the increase in the whole trade amounts to more than 70 per cent The figures show, moreover, , that while there has been a gradual increase in our trade with Cuba during the whole of the fiscal year ending June 30, 1904, as compared with the previous fiscal year, the increase was far greater during the last half of the year (the reciprocity period) than during the first half. The bulk of the United States imports from Cuba during the I first three months of 1904 consisted of sugar. The very large total of imports for the period ($23,217,180, as compared with $11,948,597 for the first three months of 1903) was caused, to j a great extent, of course, by the action of the Cuban sugar : exporters in holding back shipments during the latter part of | 1903 so as to take advantage of the expected tariff reductions j offered by the reciprocity treaty. It is noteworthy that the | recent very large imports of cane sugar have not had a tendency | to lower the price of sugar in this country, so that our beet- i sugar interests have not suffered, while the Cuban producers ! have reaped a great benefit from the reduction of our tariff I rate on their sugar. (The question of the effect on our beet- ! sugar industry of this and other reductions is discussed on an- other page. See index.) The 25 per cent, increase in our exports to Cuba during the first three months of 1904, as compared with the first three months of 1903, applied principally to agricultural implements, wheat flour, cotton cloths, sewing machines, leather, naval stores, oils, lumber, and furniture. In some of these articles the recent increase of our exports to Cuba has been 50 per cent, and in some even 100 per cent, as compared with corresponding periods of 1903. The treaty is published in full in the document "Pages from the Congressional Record." The mints will not furnish the farmer with more consumers. The only market that he can rely upon every day of the year is the American market. — Maj. McKinley to Indiana delegation, at Canton, September 29, 1896. We believe in reciprocity with foreign nations on the terms out- lined in President McKinley's last speech, -which urged the exten- sion of our foreign markets by reciprocal agreements whenever they could be made without injury to American industry and labor. —President Roosevelt's speech accepting 1904 nomination. "We each and all owe a duty to the community and to the State. It is a positive duty, and that is to aid in securing good laws and their faithful enforcement. We are not menaced by foreign foes. We have no fear of alien attack. We have nothing within to dread except the indifference of the intelligent citizen to the discharge of his civic obligations. — Hon. C. W. Fairbanks, at Freehold, N. J., June 27, 1903. I am a protectionist because I can see very clearly that the political independence -which every patriot would sacrifice his life to preserve to his country can only be safely assured when we are Industrially Independent, and I am glad, if it requires that lesser sacrifice, to forego a few pennies of my savings to do my part to secure that assurance. — Prof. R. H. Thurston* of Cornell Univer- sity, in the American Economist. 290 THE PACIFIC. THE PACIFIC. The Republican Policy of Development of its Commerce. One distinctive feature of the Republican policy in recent years has been the enlargement of our trade with the Orient and a strengthening of our relations with the Pacific. This policy was clearly developed during the administration of President Harrison, who in his speeches on the Pacific coast, in his urgency for the construction of an isthmian canal, and in his favorable action on the application of the Hawaiian Islands for annexation to the United States, indicated a desire for the development of our Pacific and Oriental trade. The contrast between Republican and Democratic policies with reference to the Pacific is shown in the fact that the treaty of annexation of the Hawaiian Islands which President Harrison had sent to Congress during the closing period of his administra- tion was immediately withdrawn by President Cleveland and an order given to haul down the American flag which had been hoisted in those islands. A still further evidence of the contrast between the policies of the two parties is found in the fact that immediately upon the inauguration of President McKinley the application Of Hawaii for admission to the Union was renewed, favorable action recommended by President McKinley, and an act admitting Hawaii passed a Republican Congress. It was also under President McKinley that the island of Tutuila, a part of the Samoan group, in which is located the most valuable harbor in the entire South Pacific, was annexed to the United States. President McKinley also recommended the construction of a Pacific cable, and a Republican Congress subsequently enacted a law under which a cable was constructed across the Pacific by private enterprise, but assuring a marked reduction in rates, and a Republican President, Roosevelt, inaugurated it for busi- ness with his opening message to the Philippines, sent thither and around the world on July 4, 1903. COMMERCIAL PROGRESS IN THE EAST. The various steps taken in behalf of improved commercial relations with the Orient and especially with China are detailed in the chapter discussing the work of the State Department. These include the insistence upon the "open door" for trade, the negotiation of a new commercial treaty with China, the estab- lishment of new treaty ports in China and Japrn, the active work of our consuls in those countries in behalf of commerce, and in addition to these the annexation of the Philippine Islands, an important strategic point commercially as well as otherwise in the Orient. Regarding this important step and its relation to our commerce in the Orient, Archibald Colquhoun, that distin- guished British student and traveler, whose writings on trade conditions in the Orient mark him as an authority, says in his "Mastery of the Pacific:" "The presence of America in the Phil- ippines opens a grave possibility, since it is obvious that Hong- kong will in the future be out of the direct trade routes between Australasia and the Malay Archipelago and the great markets of America. * * * There are evident signs that the United States mean to make an important center of the capital of the Philippines. Among the most significant factors in the Pacific situation is the advent of Russia coming overland to the Pacific littoral an.d the sudden appearance of the United States coming over-sea and establishing herself in a large, populous and im-, portant archipelago on our borders of Asia. * * * The, United States, in the opinion of the writer, will be the dominant] factor in the mastery of the Pacific. She has all the advantages, qualifications, and some of the ambitions necessary for the role, and her unrivaled resources and vast, increasing population pro- vide the material for future greatness." THE PACIFIC. 291 The last step in the work in behalf of the development of American commerce on the Pacific and with the Orient is found in the developments of the past year with reference to the Pan- ama Oanal, fully discussed elsewhere, which have resulted in the absolute ownership by the United States of that canal cession and the perpetual control of r. strip of land five miles wide on each side of the canal route, an area nearly one-half that of the State of Rhode Island, and giving assurance of the right to construct and operate that canal. All of this work with refer- ence to the Panama Canal, as well aa all the other work above outlined with reference to the Pacific, has been accomplished under Republican Presidents and in the face of continuous criti- cism and opposition by the Democratic party in and out of Con- gress. Not a single one of the measures and steps above outlined has escaped criticism and opposition by that party. IMPORTANCE OF THE COMMERCE OF THE ORIENT. That the commerce of the Orient is of sufficient value to justify the efforts which have been made to obtain our proper share in it is evidenced not alone by the continuous efforts which the European nations are making for its control, but by the fact that the annual importations of the semicircle of countries of which Manila forms a central point aggregate about 1,250 mil- lion dollars, or an average of 100 million dollars per month, a sum nearly equal to the total value of our present domestic ex- ports. That the United States has made a marked gain in the share which products from the United States form in the total imports of the countries in question— Japan, China, India, Ceylon, Dutch and French East Indies, Australasia, the Hawaiian Islands, etc.— is shown by the fact that such shipments from the United States to Asia and Oceania amounted in 1896 to but about 6 per cent, of the total imports of those countries, while to-day they amount to about 10 per cent of their imports. A table on page .... shows the growth in exports of the United States to each of the grand divisions of the world in each year from 1896 to 1903. It will be seen that while our exports to South America increased only 10.6 per cent, those to Europe 52.9 per cent, and those to North America 84.8 per cent, those to Asia and Oceania, including shipments from the United States to the ^Hawaiian Islands, increased 149 per cent The increase in total exports to all parts of the world during the period from 1896 to 1903 was, in round terms, 61 per cent., while that in exports to Asia and Oceania, as above indicated, was 149 per cent., the percentage of increase to Asia and Oceania therefore being more than twice as great as the increase in total exports, and greater than to any other section of the world except Africa, while the actual increase was far greater than that in exports to Africa or South America. To Asia and Oceania the actual in- crease in the seven years from 1896 to 1903 was practically 64 million dollars, while in the seven years immediately preceding 1896 the increase in exports to Asia and Oceania had been but eight million dollars. Our total exports to Asia and Oceania in 1889 were $34,679,029, and in 1896 $42,827,258, an increase of $8,148,229 during, a seven-year period in most of which a Demo- cratic administration was discouraging commerce with the Pacific countries through its attitude regarding Hawaii and other questions of that character. In the seven years following 1896, however, under the encouragement of Republican Presidents, the i increase in our shipments to Asia and Oceania was from $42,827,- | 258 in 1896 to $106,770,591 in 1903, a gain of $63,918,333, or nearly eight times as much as in the seven years from 1889 to 1896. Shipments of merchandise from the United States to Hawaii, which have not been included in the official statements of our exports to foreign countries since their annexation in 1900, are included in the above statements of exports to Asia and Oceania Pin order to furnish a proper basis of comparison of growth in that commerce, in view of the fact that they were so included in 1900. j A very large proportion of the commerce of the islands and Alaska is with the United States. The total merchandise entering j Porto Rico from all countries, including the United States, in the year ending December 31, 1903, was $13,939,218, of which $11,- 292 the rAffwrtO. 819,695 was from the United States. The total merchandise sent out of Porto Rico In the year ending December 31, 1903, was $14,- 548,765, of which $10,152,923 went to the United States. The total merchandise entering the Hawaiian Islands in the 12 months end- ing June 30, 1903, was $13,982,480, of which $10,N4<),472 was from the United States. The total value of merchandise leaving the Hawaiian Islands in the same period was $26,274,938, of which $26,242,869 was sent to the United States. In the case of the Philippine Islands the proportion of imports drawn from the United States is naturally much smaller, owing to the fact that much of the materials which they require are drawn from contiguous countries— China, the British East Indies, the French East Indies, and Hongkong— and that much of their former trade with the United Kingdom, Spain, Germany, and France is still retained by those countries in the absence of any reduction on imports from the United States, which cannot be made, as above explained, during the ten years covered by the agreement with Spain bearing upon this subject With reference to the commerce of Alaska, it may be said that practically all of it is with the United States. The commerce of Guam, which was taken possession of during the war with Spain, is small and practically all of it with the United States. That of the island of Tutuila, one of the Samoan Islands which was an- nexed at the termination of the protectorate which the United States in conjunction with the United Kingdom and Germany exercised over the Samoan Islands, is small, but chiefly with the United States. The importance of this island lies not in its com- merce, but in the splendid harbor which its possession gives to the United States, being by far the best harbor in the South Pacific. This, with the control of the harbors in the Hawaiian and Philippine Islands, gives the United States the control of the best and chief island harbors of the Pacific Ocean. COMMERCIAL RELATIONS WITH OUR ISLAND POSSESSIONS. The class of articles forming the commerce between the United States and its island possessions are, in the case of mer- chandise coming from those islands, almost exclusively tropical products. Of the merchandise received from Porto Rico in the calendar year 1903, amounting in value to $10,152,923, sugar amounted to $6,813,854; cigars, $1,441,196; coffee, $610,982, and fruits, $378,210. The domestic merchandise shipped from the United States to Porto Rico during the same period, amounting to $11,424,313, included practically all classes of goods; bread- stuffs, $1,199,052; cotton manufactures, $1,950,803; iron and steel manufactures, $1,156,273; provisions, $1,403,634, and rice, $2,213,- 031. Of the merchandise received in the United States from the Hawaiian Islands during the year ending June 30, 1903, amounting to $26,242,869, $25,310,684 was sugar. The domestic merchandise sent from the United States to the Hawaiian Islands in the same period, amounting to $10,787,666, included practically all classes of articles; breadstuffs, $1,466,571; cotton manufactures, $1,022,116; iron and steel manufactures, $1,149,505; manufactures of wood, $815,290; mineral oils, $580,823; provisions, $579,334, and fertil- izers, $495,724. The merchandise received in the United States from the Philippine Islands in the year ending June 30, 1903, amounting to $11,372,584, consisted chiefly of manila hemp, $10,- 931,186, and sugar, $270,729. Of the shipments to the Philippine Islands from the United States in the same year, amounting to $4,028,677, manufactures of iron and steel formed the largest single item, $657,354 ; wood and its manufactures, $499,563 ; cotton manu- factures, $316,570; breadstuffs, $278,891; malt liquors, $310,495; spirits, $124,875, and wines, $8,397. TROPICAL PRODUCTS IN GREAT DEMAND. It will be noted that tropical products form the bulk of the 4 merchandise received into the United States from its tropical possessions. This is an important feature of the contributions of those islands to the United States and suggestive of their power to supply the tropical requirements of this country. The total value of tropical and subtropical products brought into the United States from various parts of the world now average* more than 400 million dollars per annum. The total value of , THE PACIFIC. 293 tropical and subtropical products brought into the United States during the fiscal year 1903 from foreign countries amounted to 372 million dollars, and to this was added over 25 millions from the Hawaiian Islands and 11 millions from Porto Rico, thus mak- ing the grand total of tropical and subtropical products brought into the United States during that year over 400 million dollars. Of this grand total of over 400 million dollars, sugar formed 100 millions; coffee, 60 millions; silk, 50 millions; fibers, 31 millions; India rubber, 30 millions; fruits and nuts, 23 millions; tobacco, 20 millions; cotton, vegetable oils, and gums, 11 millions each, and cocoa and chocolate, 8 millions. The fact that practically all of these articles can be produced in the islands in question and that large cultivable areas still exist in the Philippines which may be utilized in supplying this enormous demand of the United States for tropical products suggests that they may become ex- tremely valuable in supplying our rapidly growing requirements for tropical products. The value of tropical products brought into the United States has increased from 141 million dollars in 1870 to over 400 millions at the present time, and is still growing. Our experience with the Hawaiian Islands shows that following a reduction of tariff rates on merchandise passing between those islands and the United States, they increased their purchases of our products at about the same rate that we increased our pur- chases from them. Should this follow in the case of the Philip- pine Islands, and should those islands prove capable of supplying a large part of the 400 million dollars' worth of tropical products which we now purchase in foreign countries, they would in turn supply to our producers and manufacturers very large markets for our products, just as Porto Rico and Hawaii have done fol- lovlng the increase in our purchases from those islands. Tables showing the shipments of merchandise from these islands into the United States and from the United States into these islands dur- ing a term of years are shown elsewhere, also a table showing the imports into the United States of tropical productions during a term of years, and the principal articles included therein. Another advantage in the new relations of the United States to these islands is developed in the large investments which are already being made in those islands by citizens of the United States and the benefits resulting both to the islands, to the in- vestors themselves, and to the people of the United States whose sales to the islands are stimulated by the development caused by such investments. In the case of the Hawaiian Islands the total amount of American capital there invested at the present time is about 100 million dollars. This statement is based upon figures supplied to the Bureau of Statistics from a reliable authority in those islands. In the case of Porto Rico about 10 millions of American capital has been there invested up to this time. In the case of the Philippines, the investments up to the present time amount to several millions, and it is expected will rapidly increase now that order and stability are assured. Details of conditions in those islands and of the benefit which government by the United States has been to their people are dis- cussed elsewhere in the chapters especially devoted to those islands. The above discussion is intended to relate only to the commercial aspect of the control of the islands, and their rela- tion to our commerce. • The Pacific Cable. The credit of rendering practicable the construction of a Pa- cific cable is due to the policy of the Republican party. As [already pointed out in the discussion of conditions in the Orient and the Pacific, the policy of the Democratic party has been con- istantly averse to the development of trade with the Orient and to the control of islands in the Pacific. True, President Pierce and bis Secretary of State did attempt to annex the Hawaiian Islands, but a later Democratic President, Grover Cleveland, not only op- posed annexation, but prevented it during his administration, in ppite of the fact that the people of the islands were anxious for such relationship.' So long as the Islands which are now utilized for the landing places of the cable- were controlled by various nations with varied interests, nobody was willing to construct a Itrans-Pacific cable. Cables can only be worked over the compara- 294 THE PACIFIC. lively limited distance of about 3,000 miles without opportunity for relay. Tudor these conditions it was not until a single nation came to control a line of islands which would serve as landing places or relay stations for such a cable that any individual or group of capitalists wore willing to undertake the building of a Pacific cable. When the United States came in possession of these islands. President McKinley recommended to Congress the con- struction of a Pacific cable by the United States, or such other legislation as would render the construction of such cable prac- ticable. Congress subsequently passed an act authorizing the landing of a Pacific cable on the shores of the United States and its various islands — Hawaii, Wake Island, Guam, and the Philip- pines — and in the latter part of 1002 the construction of this cable line was begun by The Commercial Cable Company, with Mr. Mackay at its head. By the end of the year it had been com- pleted as far as the Hawaiian Islands, and on July 4, 1003, it was opened to Manila with appropriate ceremonies, including a mes- sage by President Roosevelt to Governor Taft and the people of the Philippine Islands, and another brief message sent literally round the world, passing from New York across the continent, under the Pacific, thence across Asia and Europe to the Atlantic, and under that ocean again to New York, in an incredibly brief space of time. Thus the Republican party in obtaining control of this line of islands, in conjunction with its favorable legislation, rendered possible this great service not only to the nation but to the world — a direct cable connecting America with Europe and Asia across the Pacific Ocean. Rapid Growth in Our Sales to Asia and Oceania. Exports. ending June 30— Europe. North America. South America. Asia and Oceania. Africa and other countries Total. 1896 $673,043,753 813,385,644 973,806,245 936,602.093 1,040,167,703 1,136,504,605 1,008,033,981 1.029,256,657 $116,567,496 124,958,461 139,627,841 157,931,707 187.394,625 196,534,460 203,971,080 215,482.769 $36,297,671 33,768,646 33,821,701 35,659.902 38.945,763 44,400,195 38,043,617 41,127,872 $42,827,258 61,927,678 66,710,813 78,235,176 108,305,082 98,783,113 110,202,118 106,770,591 $13,870,760 16,953,127 17,515,730 18,594,424 19,469.849 25.542,618 33,468,605 38,436,853 1897 $882,606,938 1898 1,050,993,556 1899 1,231,482,330 1900 1,227,023,302 1901 1.394,483,082 1902 1,487,764,991 1903 1,381,719,401 1,420,141,679 Increase. 1896 ~-1903. per cent 52.9 84.8 10. 149.1 176.5 60.9 Our Exports to the Orient in 1903 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 and 1903, respectively : Articles. Iron and steel and manufactures of Cotton cloth Mineral oils. Breadstuffs Cotton, unmanufactured Tobacco and manufactures of Wood and manufactures of — ...... Chemicals Leather and manufactures of Paper and manufactures of Provisions Carriages and cars Agricultural implements Fertilizers Fruits and vegetables 62,928,971 $11,705,055 1.532,181 14,764,403 7,246,111 10,438,001 3,521,936 16,965.291 85,211 7,557,498 2,017,508 3,851,712 2.117,058 4,260,455 1,070,462 2,058,444 732,260 2,494,460 128,277 2,044,790 518,190 1,864.517 424,952 1.737,803 575,254 1,438,474 114,988 568,460 441,430 983,788 I have not heen for either peace at any price or war at any- cost. I have been steadfastly for peace if it eould be maintained , honorably and for war if the national dignity and honor required! It, — Hon. C. W. Fairbanks, in V, S, Senate, April 14, 1898, THE PACIFIC. 295 co +j ^ tJ'a Sea s d « ■95 H©»-i***He»iMcs>»eo©co©<*^< c*e»iHiafr.©ccoj»coco*»:ce*© ©O»HC0T-*Tf©e03Di-ieJ>»HC*©© SD'H©©©«Hc?»W*<»TJt©aO©aO ,_n- t-' eo" co" t»" eo* in -=r»o »XCOOCC*t^ co cm* in co i>" co' 00" t~" m* co* cm" eo" ©* 00 - WHi CM CO CM i-H 1-1 CM ■d . ftp aeo©^<>-iacNvneooco» -itTj»©c»© ih H^NXx^rt mob Qiao of •*"*-*' co' i-r©"©" 0*" ©*>»* ©"©"cCOD©* i-COJ»©C»*-^©C»COCOrf©t)rH COeOCOeoeOC»e*S»COCieOCO'*CO'«i< (A lftOOOincMt-Ol>l>CDCO' co -< -- cm ■* cq aq co 05 05 co m < in co' © *-" 00 co* "J co* t-* m" 00' ©" -*' ft* « CC-hOCOCOi-hOCOCOO-*05COI^-CM •-•CMCO(M-«tiCOCMCMCOCMCO-*CCincO aD**e»ooeo©wi»©©eo©*»©c?» o©aD«*j<©c*ao*'i»©^'©a**»eo'*' iHrH HS i-li-t lH©KSrHj*»» C-CMiftQ-^t-CO'tiOOCMCO-^ft^Or-i •■* CM i—_ 05 © w rt CM f< in ■* 03 © CO eo cm" t>* as" f" 55" co © 1-" cm" ct>" co" m" t> •■" co" c-cp^t-Qt^cMoom3i©©co^in © O CO ^ift T^^rt co_© © © t» cm ^ in co* m" t-» ©" ■* ■* in ■*" ■*" •*** ©* eo" ©" ai *£& too •*&&■'*<£*£'** *f ©.©J» ©.«.^^.^"*J» « ^ 3 33 ^jT^T ^Tcf w*eo" ^*fxtOw4tf C0tM0C©00COlftlftint-COCO eo©coo"cococo©o0'-03in co © 3" © cm_ 00 ©_ oo_ © cq co in in co" -*' ■*' co* ©" *-" •-"* i-* t-* 00" eo" t- 00 <* 10 co t- 00 ■* rt 00 go m' © eo cq 00 ■"*"*© ft» eo in -* cm_ v ■*" cm" i-H t>r ©" od cx>* m* in* co" cm* Oi v "d . »-HC?»*'*>» fr-©e»*»c7i©i»co©fr-©T*i-* - ,<: i." ; ^ at l r *l." ! t' £ l" H ." H . "^"t 13 ^ r-rtrH »-i fh »h c* OJ eo ex eo r^mt-i>cMt-mcDeo©mcMco- in in in •* co © co_ co_ »-; cm_ ciS rn E» 00 -h* CO* t-" CM* t»J CM* ©" "" CO* t-h i^-' cm" <»" co" m" ©r-i©—(Tp©iniftini>'Mcocoint~ >-< CM -"* cq -^ ■* l> cq 00 co_ in CM co ©_ oi co* tj" t«T 00" ©* co* m* co* m* in" eo* in" ■>** co" ©" IX IB )CO0O00 00CO< 3-3 03 «* CD CD •*-> tH 03 3 s « S-o 2 <-3 0> CP """J ^ °s tid 00 - /t5 ** a -d 00 . d fljdrH £^d «u*0 CD+J'C d ° S 2^2 d rf"d rfaj-2 "god in 03 cp ."- 1 S^B 4j M O t»*J ti 42 C"H §3S s^s S43 °.d'5 cp CD 43 .43 HgEH ©3 296 EXPANSION AND ITS RESULTS. EXPANSION AND ITS RESULTS. The opposition to the control by the United States of non- contiguous territory, which was such an important feature of the campaign waged against the Republican party in 1000, has practically disappeared. Commerce between the United States and its noncontiguous territory already aggregates, an the brief time since the additions of those territories, 100 million dollars per annum. Of this sum about 40 millions is in the form of ship- ments to those various noncontiguous territories under the flag and government of the United States. HAWAII. In the case of the Hawaiian Islands, which a Democratic President, Franklin Pierce, and his Secretary of State, Mr. Marcy, attempted to annex in 1853-54, and in which President Cleveland caused the American flag to be hauled down in 1893, the annexation completed in the early part of President McKin- ley's Administration has been fully justified. Not only have conditions in the islands improved, increased sums of American capital been invested there, and new areas brought under culti- vation, but markets for increased quantities of products from the United States have been made in the islands in exchange for the increased contributions of these islands to our tropical require- ments. The commerce between the Hawaiian Islands and the United States has more than doubled in the brief period since the inauguration of a Republican President, McKinley, assured the people of those islands that their long-deferred hopes for an- nexation to the United States were to be realized. In 1896 they supplied the United States with $11,575,704 worth of tropical products required by our people, and took in exchange $2,985,707 worth of our merchandise. In 1903 they contributed $26,242,869 worth of tropical products (chiefly sugar) to our requirements and took $10,840,472 worth of the products of our ■ farms and factories. Thus in this brief period, from 1896 to 1903, we have increased our purchases from the Hawaiian Islands 127 per cent, and have increased our sales to them 175 per cent, while the figures of 1904 will exceed those of 1903 both as to pur- chases from and sales to the islands. Investments of capital from the United States in the Hawaiian Islands now aggregate nearly or quite 100 million dollars. PORTO RICO. In the case of Porto Rico the growth has been even more striking. In 1897, the year prior to annexation, Porto Rico con- tributed to the tropical requirements of the United States $2,181,024 worth of her products, and in 1903 $11,057,195, or more than five times as much in 1903 as in 1897. In exchange she took in 1897 $1,988,888 worth of products of the United States and in 1903 $12,246,225 worth, or more than six times as much as in 1897. Money from the United States aggregating from 10 to 15 millions of dollars has been invested in the island, and general conditions not only as to commerce but in education, government, legislation, road making, and general prosperity of the people have greatly improved. THE PHILIPPINES. With the Philippine Islands commerce has also grown rapidly and gives promise of further great development. The total im- ports into the United States from those islands have grown from $4,383,740 in the fiscal year 1897, that which immediately preceded their control by the United States, to $11,373,584 in 1903. Exports from the United States to the islands in 1897 were $94,597 and in 1903 were $4,039,909, and in the fiscal year 1904 will considerably exceed those of 1903. The question of applying the coastwise laws of the United States to commerce between the Philippine Islands and the ports of the United States was further considered at the last session of Congress, and an act passed which extends to July 1, 1906, r EXPANSION AJNI) ITS RESULTS. 3f>7 the provision of the act requiring all commerce between the United States and the islands to be carried in American vessels. The determination of the class of vessels which shall be used in the commerce between the islands themselves was left to the Philippine Commission. Alaska, a noncontiguous area whose purchase was severely criticised by the Democrats when it occurred under an earlier Republican administration, is becoming an important factor both in its gold supply, which amounts to about $5,000,000 annually, and in its contributions of fish, furs, and other merchandise amounting to $10,228,009 in 1903, while in return it has made a market for $9,479,721 of merchandise from the United States. Large sums of capital from the United States are being invested in Alaska in the opening of mines, in the fisheries, in building railroads to the interior by which the mining facilities will be greatly improved, and the Department of Agriculture gives assur- ance that considerable sections will in time prove valuable for agricultural purposes to such an extent as to supply a consider- able share of the local requirements of what promises to be a large and industrious population. The explorations thus far justify the belief that the gold-producing area and possibilities of Alaska are very great, and that it will not only supply large quantities of the precious metals to the United States, but in turn increase its takings of the products of our farms and factories for the people employed in the mines and in the other industries now growing up in that section. TARIFF RELATIONS BETWEEN THE ISLANBS AND THE UNITED STATES. Regarding the collection of duties on merchandise passing be- tween the "United States and its noncontiguous territories, it is proper to say that no customs duties exist except with refer- ence to the commerce between the Philippine Islands and the United States. Alaska has been for many years a customs district of the United States, and therefore merchandise passing between that territory and the various ports of the United States is con- sidered as coastwise commerce anr!. pays no duty on entering the ports, whether it be merchandise from Alaska to the United States or from the ports of the United States to Alaska. This is also true of the Hawaiian Islands and Porto Rico. For many years under the reciprocity treaty practically all of the products of Hawaii seeking a market were admitted free of duty into the United States and a large share of the products of the United States were admitted free of duty into the Hawaiian Islands, but on the admission of the Hawaiian Islands as a Territory of the United States our coastwise laws were extended to the islands, and the same freedom of intercourse between the islands and the various ports of the United States now exists as is the case in ocean transportation between New York and New Orleans or be- tween any of the coast or interior cities of the country. This is also true at the present time of Porto Rico. Originally the rate of duty on merchandise passing between Porto Rico and the United States was reduced to 15 per cent, of the regular Ding- ley law rates. The duties thus collected on merchandise entering the United States from Porto Rico were refunded (less the cost of collecting the same) to the Porto Rican Government, while, of course, the tariff collected in Porto Rico from articles entering that island from the United States also went to the support of that government. The act provided that "whenever the legis- lative body of Porto Rico should enact and put into operation a system of local taxation sufficient to meet the necessities of the government of the island, the President might terminate the col- lection of all duties on merchandise passing between the island and the United States in either direction and that in no event should such duties be collected after March 1, 1902. The Porto Rican legislature on assembling immediately passed an act providing for the collection of sufficient funds for the support of the local government, and the President, having been notified of this fact, terminated on July 4, 1901, by proclamation the col- lection of duties on merchandise passing between the island and the United States. 298 EXPANSION AND ITS RESULTS. The tariff relations with the Philippine Islands are at present as follows: A reduction of 25 per cent in the rates of duty has been nuulm on all merchandise entering The United States from the Philippine Islands, and a bill is now pending in Congress increasing that reduction to 75 per cent, of the regular Dingley law rates. All of the duties collected in the United States on merchandise coming from the Philippines, as well as the tonnage dues, are turned over by the United States Government to the Philippine treasury for the benefit of the islands; also the Philip- pine government is required to refund the export duties upon hemp and any other products of those islands bearing an export duty in the event the same are exported to the United States. The tariff of the Philippine Islands is described in the chapter upon the islands and their present condition. Under it merchan- dise from the United States entering the Philippine Islands pays the same rates of duty as merchandise from any other country. This insistence upon full rates of duty on merchandise from the United States entering the Philippine Islands is necessary under the provisions of the treaty with Spain by which the Philippines were transferred to the United States. That treaty provided that "The United States will for ten years from the date of ex- change of ratifications of the present treaty admit Spanish ships and merchandise to the ports of the Philippine Islands on the same terms as ships and merchandise of the United States." This, therefore, prevents a reduction or removal of duties on merchandise from the United States entering the Philippine Islands until 1909, the exchange of ratifications having occurred April 11, 1899. This does not, however, prevent a further re- duction or removal of the rates of duty on articles from the Philippines entering the United States and, as above indicated, a bill reducing the rates of duty on such articles to 25 per cent, of the Dingley law rates is now pending in Congress. • Western Coast Brought Much Nearer to European Markets. The following table shows the distances between the various great centers of Europe and the Pacific coast cities of the United States by the Panama and Cape Horn routes, respectively, and suggests the value which thk' canal will be to the great Pacific coast in bringing it into direct touch with European markets : St. Petersburg. Stockholm Copenhagen . . . Bergen Glasgow — Dublin London Liverpool Hamburg Amsterdam.... Antwerp Havre Marseille Lisbon Gibraltar Naples Triest Constantinople Odessa Alexandria Tripoli Algiers Tangier Funchal Habana Victoria. Seattle. Tacoma P. . cs a 15.842 15.544 15.107 15.002 14.506 14,328 14,514 14,397 14.805 14.571 14,541 14,346 14,179 13,510 13,489 14,475 15,170 15.326 15,673 15,294 14.582 13,898 13,489 13,001 13,858 cs a 9,958 9,657 9,220 8,863 8,597 8,543 8,862 8,624 9,143 8,919 8, 8,676 9,084 8,224 8,394 9,380 10,075 10.231 10.578 10,199 9,487 8, 8.: 7,803 5,082 .2 a > 15,912 15,614 15,177 15,072 14,576 14,398 14,584 14,467 14.875 14,641 14,611 14,416 14.249 13.580 13,559 14,545 15,240 15,396 15,743 15,364 14,652 13, 13,559 13.071 13,928 a c3 cs a (L e3 10, 9,727 9,290 8; 8,667 8,613 8,932 8,694 9,213 8.989 8,959 8.746 9,154 8,294 8,464 9,450 10,145 10.301 10.648 10. 9,557 8,873 8,464 7,873 5,152 P. . > 15,930 15,632 15,195 15,090 14,594 14,416 14,602 14,485 14,893 14,659 14,629 14,434 14.267 13,598 13,577 14,563 15,258 15.414 15,761 15.382 14,670 13,986 13,577 13,089 13,946 13 cS cs a (L cS 10,046 9,745 9,308 8.951 8,685 8,631 8,950 8,712 9.231 9,007 8,977 8.764 9,172 8,312 8,482 9.468 10,163 10.319 10,666 10.287 9.575 8,891 8,482 7,891 5,170 Sitka. > 16,388 16,090 15,653 15,548 15.052 14,874 15,060 14.943 15,351 15,117 15,087 14,892 14,725 14,056 14,035 15,02 15,716 15,872 16.219 15.840 15,128 14,444 14,035 13,547 14,404 Honolulu. cs a 10,504 10.203 9,766 9,409 9.143 9,099 9,408 9,170 9.689 9.465 9,435 9.222 9.630 8.770 8,940 9.926 10.621 10,777 11,124 10,745 10,033 9,349 8,940 8.349 5,628 S. •2W > 15.243 14,945 14,508 14.403 13,907 13.729 13,915 13.798 14,206 13,972 13,942 13,747 13,580 12.911 12,890 13.876 14,571 14,727 15.074 14.695 13.983 13.299 12.890 12,402 13,259 a cs cs a P_C cS 10.662 10,361 9,924 9,567 9.301 9,247 9,566 9,328 9,847 9,623 9.593 9.380 9,788 8,928 9,098 10,084 10.779 10,935 11,282 10.903 10,191 9,507 9,098 8.507 5.786 Note. — The distance through the Straits of Magellan is from 400 to 500 miles shorter than around Cape Horn. A full day's work must be paid In full dollars. — Maj. McKiuley at Canton. 189G. THE NONCONTIGUOUS TERRITORY OF THE UNITED STATES. 299 THE NONCONTIGUOUS TERRITORY OF THE UNITED STATES. The Philippines, the Hawaiian Islands, Porto Rieo— The Conditions in These Islands — Their Growing Contributions to Our Tropical Requirements and Growing Importance as Customers for Our Products. The fact that the policy of the administration in bringing the noncontiguous and tropical territory of the Philippine and Ha- waiian islands and Porto Rico under the control of the United States continues to be the subject of more or less criticism, seems to justify a somewhat elaborate review of conditions in those islands, and this is given in the following pages, beginning with the Philippine Islands and following with the Hawaiian Islands and Porto Rico. To this general presentation of conditions in these islands are added some facts about the great growth of our trade with them and the rapidity with which they are coming to supply, our re- quirements in tropical productions. The fact that the United States expends annually more than 400 millions of dollars for tropical and subtropical products from other parts of the world, and that these islands are already rapidly increasing their contri- butions to that requirement, is important, and especially so be- cause of the fact that the islands in Uirn buy of our products prac- tically as much in value as they sell to us. This feature, and that of the growth of our demand for tropical products, is discussed in extracts from the Annual Review of the Foreign Commerce of the United States, issued by the Department of Commerce and Labor through its Bureau of Statistics, which follow the discussion of conditions in the islands. THE PHILIPPINES. The Restoration of Peace. The sovereignty of the United States is established in the Philippine Islands, is accepted by the inhabitants, and is accept- able to them. Tranquillity prevails throughout the islands to a greater degree and over a larger area than at any period during the centuries the archipelago was subject to the sovereignty of Spain. Such resist- ance to governmental authority as exists to-day does not result from efforts to expel the sovereignty of the United States; it re- sults from the action of turbulent violators of the civil and crim- inal laws — bands of ladrones, highwaymen, robbers, etc. The Central Government and Legislative Authority. Civil government in the Philippine Islands under American sovereignty, as distinguished from military administration, dates from the appointment by President McKinley, in March, 1900, of the Taft Philippine Commission. In creating this Commission and authorizing it to assume and discharge the functions of gov- ernment the President exercised the war powers of the nation, and the Commission thus created was an instrumentality for the exer- cise of the authority of the President as Commander in Chief of- the Army and Navy of the United States to administer the affairs of civil government in territory subject to military occupation. The Commission was a civilian agency foT the exercise of the powers of a military government ; it consisted of Hon. William H. Taft, of Ohio; Prof. Dean C. Worcester, of Michigan; Hon. Luke E. Wright, of Tennessee; Hon. Henry C. Ide, of Vermont; and Prof. Bernard Moses, of California. The general purpose of the Commission was, as stated by the President — to continue and perfect the work of organizing' and establishing civil government already commenced by the military authorities, subject in all respects to any laws which Congress may hereafter enact. 800 mi' \<>\l I'HK I'NITEU STATEH. of real estate exceeding in value the sum of $25,000, to be ascer- tained by the oath of either party or of other competent witnesses, is involved. Civil Service In the Philippine*. One of the first laws adopted by the Philippine Commission upon its assumption of legislative powers was an act providing for the organization of the civil service on the basis of merit It was the purpose of the Commission in passing the civil- service bill to provide a system which would secure the selection and promotion of civilian officials solely on the ground of merit; and would permit anyone, by a successful competitive examina- tion, to enter the service and by the efficient discharge of his duties reach the head of any important department of the gov- ernment. This civil-service act provides that preference in appointment shall be given, first, to natives of the Philippine Islands, and,, second, to honorably discharged soldiers, sailors, and marines; of the United States. At first, by reason of their lack of knowledge of the English language and of American methods, few Filipinos could be used to advantage in the administration of the central government at Manila ; but with the progress they have made in acquiring a knowledge of the English language and of American methods, a large number now fulfill the civil-service requirements, and the proportion of places given to Filipinos in the general govern- ment is becoming much greater. The education of the Filipino. The work of providing educational facilities for the Filipinos is assumed by the general government of the islands; and to promote that endeavor there has been established a department of public instruction. There are employed in this department between 2,500 and 3,000 Filipino teachers and nearly 1,000 American teachers, the latter engaged, primarily, in teaching English to the Filipino teachers in addition to the classes of children instructed by them. On the date of the last report of this department there were maintained in the archipelago about 2,000 primary schools and 38 secondary schools. In. addition to these primary classes the government main- tains a number of technological schools, including a trade school and an agricultural school ; normal institutes for the improvement of the native teachers are held during each school vacation. There is also maintained a well-equipped nautical school, de- veloping persons qualified to become officers in the interisland. merchant marine, and with the enlargement of this school it is hoped that ultimately many of these positions can be filled by natives of the islands. In this connection attention is called to the fact that apprentices are taken on in the government print- ing office at Manila, with the gratifying result that many Fili- pinos are now learning the useful trades to be acquired in that establishment. Night schools are maintained in the city of Manila and in other places for the education of adults and others who are not at liberty to attend day school, and there was at the time of the last report an average daily attendance of 10,000. The Monetary System. Under Congressional authority there has been inaugurated a complete currency system, which affords a fixed medium of ex- change and does away with the fluctuation in value which was such a menace to trade in the old days. The coinage of the islands is distinctive, showing that it is a coin of the Philippine Islands, and also showing such islands to be under the sovereignty of the United States. The silver coinage is based upon the decimal system, ranging in value from the ten- centavo piece to the one-peso piece. There is also a nickel coin of 5 centavos, and bronze coins of one and also one-half centavo. These coins have a fixed convertible value in United States cur- rency in the ratio of 2 to 1. A gold reserve is maintained for the purpose of preserving this parity. THE NONCONTIGUOUS TEEEITOET OF THE UNITED STATES. 305 The islands have also a distinctive paper money, which shows that it is an issue of the Philippine government under the sov- ereignty of the United States. These silver certificates are issued in the denomination of 2, 5, and 10 pesos, and bear the vignettes, respectively, of Jose Rizal (a Filipino), McKinley, and Wash- ington. Merchants in the islands can buy exchange on New York by depositing with the insular government Philippine currency and paying a premium of three-fourths of one per cent, for demand drafts and of 1% per cent, for telegraphic transfers. During the Spanish regime, as well as during the first years of American Occupation, the currency of the Philippines was subject to the fluctuations of the silver bullion market, and trade was at the mercy of an ever-changing currency as well as an ever-changing rate of exchange. This great obstacle to commercial develop- ment and stability has been removed by the establishment of a fixed standard of value. Banks. In addition to the banks existing in Manila prior to American occupation, branch banks have been established by the Guaranty Trust Company of New York and the International Banking Corporation^ and one private American bank has been established. The inauguration of these banks is a great step forward in connecting the trade and financial affairs of the Philippines with those of the United States. Means of Communication. Postal and telegraph service. — Post-offices have been estab- lished throughout the entire archipelago, and mail matter is promptly forwarded from point to point with safety and rea- sonable regularity. The postal facilities include the issuance of money orders, which is an important factor, for commercial banks do not exist in the islands outside of Manila, Iloilo, and Cebu. Free-delivery service has been established in the city of Manila, the entire force of letter carriers being natives of the Philippine Islands. In the smaller towns of the archipelago, where the busi- ness does not justify the salary of a postmaster, teachers, officers of the constabulary, provincial and 'municipal officials, are ap- pointed postmasters in addition to their other duties, with slight extra compensation. At the present time there are established in the Philippine Islands more than two hundred post-offices. The rates of postage are the same as in the United States. Telegraph lines. — During military operation it was found neces- sary to construct telegraph and telephone lines connecting Manila with nearly every municipality in the islands, and in this man- ner some 8,000 miles of overland* telegraph lines and cables were constructed. The withdrawal of garrisons necessitated the aban- donment of many of the stations by the military, and these sta- tions are being taken over by the civil government as fast as skilled operators can be secured. At the present time the archi- pelago is gridironed with 8,000 miles of land and sea telegraph and cable lines, and commercial messages can be sent to practi- cally all points throughout the archipelago at rates considerably less than prevail in the United States. The new Pacific cable. — The opening of the new Pacific cable on July 4, 1903, furnishes a direct means of communication be- tween the United States and the Philippine Islands, and reduces the cost of messages not only to the Government but to private individuals. Highivays.— The general subject of improved transportation has been given primary consideration, especially in so far as it re- lates to highways. Extensive repairs and improvements to exist- ing highways have been carried on throughout the provinces. For the general supervision of this work a bureau of engineering has been established and has for its representatives in the provinces the provincial supervisors. Although handicapped by losses of draft animals, the unsettled condition of labor, and * remoteness from an adequate base of supplies, excellent progress has been ! made in the work of building new roads. This work has gen- erally been performed under the direction of army engineers. Nearly $3,000,000 have been expended in the construction of what might be termed trunk line wagon roads, which, primarily 306 THK NONCONTIGUOUS TERRITORY OF THE UNITED STATES. designed for military purposes, nevertheless are open to and affori facilities for the farmer and producer in civil life. Eminent Domain. I'ttblw lands. — The total amount of land in the Philippines h approximated al 74,000,000 acres. Of this amount it is estimate that about 5,000.000 acres are owned by individuals, leaving ii public lands about r>:u MHt.OOO. The land has never been surveyec and these amounts are estimates. The military government had no power to part with the publh land, as that power belonged to Congress. In the Philippim government act of July 1, 1902, Congress conveyed to the govern inent of the Philippine Islands all public property, including tin public lands ceded to the United States under the treaty of Paris and directed that government to classify according to its agri cultural character and productiveness, and immediately to make rules and regulations for the lease, sale, or other disposition o: the public lands other than timber and mineral lands, with th< proviso, however, that such rules and regulations were not to g( into effect or have the force of law until they should have re ceived the approval of the President and been submitted by hin to Congress. The bureau of public lands, with a competent personnel, was immediately established, charged with the duty of making th< necessary preliminary investigation and drafting the rules anc regulations, which have been enacted into law by the government Agriculture. — The inhabitants of the Philippine Islands are es sentially an agricultural people. Agriculture had, nevertheless up to the time of the American occupation, been carried on in i very primitive fashion, with rude implements and antiquated ma chinery, and without the employment of suitable methods of cul tivation. The results obtained, even under such conditions, af forded proof of the favorable character of the climate and th< natural richness of the soil. The insular government has created a bureau of agricultur< to conduct investigations and disseminate useful information witl reference to the agricultural resources of the Philippine Islands the methods of cultivation at present in vogue and their im provement, the practicability of introducing new and valuable agricultural products, the introduction of new domesticated ani mals, and the improvement of the breeds of domesticated animals n^w in the islands, and, in general, to promote the developmen of the agricultural resources of the country. The purchase of the friar lands. — At the time of the transfei of sovereignty three religious orders, the Dominicans, Augustin ians, and Recoletos, held about 420,000 acres of agricultural lands These lands were occupied by native tenants intensely hostile t< the friars, and that hostility was unquestionably shared by the vast majority of the people of the islands. The relation of thes( landlords to their tenants and to the entire people was one ol the chief causes of irritation and rebellion under Spanish rule. The new conditions made it manifest that the interest of the religious orders required that they should convert into money this property, which they could no longer peacefully enjoy or prac tically make useful. At the same time the peace and order of the community, the good will of the people toward the Governmem of the United States, and the interest of an effective settlement anc disposition of all questions arising between the church and state in the islands made it equally desirable that these lands should be purchased by the state and that opportunity to secure title upon reasonable terms should be offered to the tenants and to other inhabitants of the islands. The act of Congress approved July 1, 1902, commonly known as the "Philippine government act," authorized the Commission to acquire title to the lands of religious orders held in such large tracts as to affect injuriously the peace and welfare of the people of the islands ; to issue bonds in payment for such land ; to sell the land, with a preference to actual settlers and occupants ; and to ap- ply the proceeds to paying the principal and interest of the bonds. After numerous propositions and counter propositions had been rejected an agreement was reached whereby was closed the pur- chase of 410,000 acres at a price of $7,239,000 in gold. THE NONCONTIGUOUS TERRITORY OF THE UNITED STATES. 307 This amount was paid in cash from funds realized from the sale of bonds of the Philippine government bearing interest at the rate of 4 per cent, per annum, which bonds were sold in the United States at the rate of $107,577. The Philippines Customs Tariff. The revision of the tariff was commenced by a board of offi- cers at Manila, then turned over to the Philippine Commission, whose preliminary draft was forwarded to Washington and op- portunity given to the exporters and importers of the United States to express their opinions. This privilege was also ex- tended to the merchants and exporters and importers in Manila, in public hearings, before the Philippine tariff was formally en- acted into law. The tariff law was finally enacted by the Philip- pine government, and subsequently received the approval of the Congress of the United States. The rates in no case, except on articles of luxury, such as sparkling wines and fine china, are high. Articles of necessity have been taxed lightly ; those needed in the development of agri- culture and for the improvement of roads and transportation are also low. Prohibitive rates have been avoided, and the rapid progress and development of the islands have been kept steadily in view, together with the other side of the question, that the insular government must have revenue for current expenses and for needed improvements. The duties, on the whole, are lower than the old Spanish tariff or the tariff at present in force 'in the United States. The present tariff will average about 18 *£ per cent, ad valorem. The enactment of Congress approving the Philippine tariff also provided for a reduction of 25 per cent, of the Dingley tariff upon imports into the United States from the Philippines, and, further, that all duties collected in the United States on articles coming from the Philippines, as well as tonnage dues, should be held as a separate fund to be paid into the Philippine treasury for the benefit of the islands ; also that the Philippine govern- ment should refund the export duties imposed upon hemp' and other products of those islands in the event the same were ex- ported to the United States. Foreign Commerce. Complete Philippine trade statistics during Spanish administra- tion are not available, except those for an occasional year or two, though enough reliable data warrant the statement that, based on an annual average valuation of $35,000,000 worth of imports and exports, the United Kingdom, United States, Spain, and China have been the chief beneficiaries of that trade in the past, enjoy- ing practically 80 per cent, of the total commerce. While these countries continue to hold a large portion of the trade, the busi- ness transacted since American occupation indicates a wider dis- tribution as well as a relative change in the amount credited for recent years. During the five years of American administration the islands' commerce has increased more than 150 per cent., advancing from $25,000,000 in 1899 to $40,350,000 in 1900, to $53,490,000 during the next year, then to $56,000,000 in 1902, and at the close of the year ending June 30, 1903, the commerce had reached a value of more than $66,000,000. In the exports we find a showing that is remarkable, though adverse agricultural conditions have limited development along some lines. With but $12,000,000 worth of products in 1899, the trade has steadily increased each year until in 1903 it amounted to over $33,000,000, or sufficient to bring about a slight balance of trade in favor of the islands. Until 1902 trade *with the United Kingdom, aside from its colonial possessions, ranked first in importance, taking about one- third of the total, always receiving more of the island's products than her exports there would pay for. The United States was second in importance up to the time of the enormous. increase in direct shipments of Manila hemp, the legislation passed by Congress on March 8, "1902, enabling this country to take front rank almost immediately. 308 THE NONCONTIGUOUS TERRITORY OF THE UNITED ST.\ The significance of these facts may be appreciated when it is understood that two-fifths of the Philippine exports consist of hemp, and by reason of the $21,000,000 worth sold last .war a balance of trade in favor of the islands is shown for the first time since 1896. Practically two-thirds of this amount came to the United States, which is unparalleled in the history of the trade. Details of the commerce between the Philippine Islands and the United States are stated elsewhere in this work. The Philippine government has made purchase in the United States of supplies and other materials for public improvements and other purposes to a value exceeding $12,000,000 out of the revenues of the islands. These figures are not included in the volume of trade hereinbefore outlined. Sources of Revenue. The Philippine government is authorized by Congress to levy its own taxes and disburse its own revenues, and, with the ex- ception of an appropriation of a $3,000,000 relief fund by Con- gress, all the expense of the administration of the government has been met by the revenues of those islands. The municipal corporations, under the direction of the provincial governments, collect and disburse their own revenues, and with the exception of loans made to these provinces by the general Philippine gov- ernment from time to time, which ultimately are repaid, these subgovernments are self-supporting and meet all expense of ad- ministration. Philippine Bonded Indebtedness. The funded debt of the Philippine Islands imposed by the American Government has been small. So far from imposing a burden on the resources of the islands, its borrowings have thus far been an actual source of profit to the Philippine treasury. The debt of the islands under Spanish authority, amounting to about $40,000,000, was gotten rid of by the transfer of sovereignty and the payment by the United States of $20,000,000. The present interest-bearing obligations of the Philippine government are as follows : One-year certificates of indebtedness, under authority of the coinage act $3,000,000 Second series of such certificates 3,000,000 Bonds for taking up the lands of the iriars 7,000,000 Total 13,000,000 A third series of one-year certificates paying 4 per cent, has just been awarded at a premium of 1.181 per cent., or $35,430; but as they take the place of the first issue which is about ma- turing, they do not add to the total debt or the permanent in- terest charge. The permanent interest account of the Philippine government upon its present obligations stands thus : GROSS EXPENDITURES. Interest on $6,000,000 one-year certificates, at 4 per cent $240,000 Interest on $7,000,000 of bonds, at 4 per cent 280,000 DEDUCTIONS. Average premiums on sale of one-year cer- tificates . . $142,590 Average annual premium on ten-year bonds 63,000 Interest on gold-reserve funds 90,000 520,000 295,590 i Net annual charge upon the Philippine revenues. . 224.41 <> The customs receipts, which constitute the principal revenue of i the islands, are about $10,000,000. The net burden, therefore, for interest on the existing debt is $224,410, or at the rate of a little less than 2*4 per cent of the customs receipts. There is probably no civilized state in the world to-day— unless itns the' little principality of Monaco, whose revenue is derived from the gaming table — -whfch is not compelled to devote a larger part of its revenues than 2^4 per cent, to the interest on its public debt. The THE NONCONTIGUOUS TERRITORY OF THE UNITED STATES. 309 present debt of the Philippine Islands being $15,000,000, amounts to about $1.62 per capita for a population of 8,000,000, and the annual net interest charge to less than four cents per capita. The United States has a per capita debt of at least $12 and annual charges of more than 30 cents. Great Britain has a debt in excess of $90 per capita and interest charges of $3. France has a debt of nearly $150 for each of her people and an annual in- terest burden of $6. It is true that these are richer countries than the Philip- pines and that their gross revenue is larger. The true test of interest burdens should perhaps be the ratio which they bear to gross revenue. But here also the test is in favor of our island dependencies. In France 30 per cent, of the revenue goes to meet the charges on the debt ; in Great Britain 19 per cent. ; even in the United States about 5 per cent, without counting State and local indebtedness. In the Philippines the proportion is about 2% per cent. Tried by every test, therefore, the burden on the people of the Philippines for their bonded debt is among the light- est imposed by modern states, and they are well able to make a further appropriation from revenue to provide for railways and other public improvements. There are few, if any, civilized states, moreover, which have so much to show as the Philippines for the debt which they have incurred. Expenses In the Philippines. The Secretary of War reported to the Senate June 19, 1902, that "the amount of money expended, and the amount," so far as practicable to state it, "for* which the Government of the United States is liable, remaining unpaid for equipment, supplies, and military operations in the Philippine Islands each year from May 1, 1898, to the present time," aggregate $170,326,586.11, as follows : Expenditures. Liabilities. Adjutant-General's Department Quartermaster's Department Subsistence Department Pay Department Medical Department Engineer- Department Ordnance Department Signal Office Secretary's Office: Disbursing clerk Requisitions and Accounts Division Total $555.21 74.344,395.17 21.252.272.93 63,926,262.11 3,878,756.58 148,022.15 4,802,033.82 1,322,712.88 7,183.30 171,318.67 $462,158.92 4.251.14 2.000.00 4.663.23 169,853,512.82 473.073,29 In his official report the Secretary said: "Attention is invited to the fact that large quantities of valu- able property, such as ships, lighters, etc., horses and mules, wagons, harness, clothing, equipage and ordnance, medical, signal, and engineer supplies, the cost of which is included in the forego- ing statement, still remains on hand in the Philippine Islands for use. Parts of these supplies are already being reshipped to this country. It should also be observed that a large part of the ex- pense during the past year should not properly be treated as oc- casioned by military operations in the Philippine Islands, for the reason that it consists of pay and maintenance of troops whom we would have had to pay and maintain whether they were in the Philippines or not, in order to keep up the minimum number of regular troops required by law as a safeguard against future con- tingencies. The minimum at which the Regular Army is required to be maintained by the act of February 2, 1901, is 59,657 men, and the maximum is 100,000." The Problem Which We Have on Our Hands in the Philippines. Extract from address of Hon. Wm. H. Taft, Secretary of War, before the Chamber of Commerce of New York City, April 21, 1904: *The people of the United States have under their guidance and control in the Philippines an archipelago of 3,000 islands, the population of which is about 7,600,000 souls. Of these, 7,000,000 are Christians and 600,000 are Moros or other pagan tribes. The problem of the government of the Moros is the same as that which England has had in the government of the Straits Settlements or India. The government of 7,000,000 Christian Filipinos is a very different . problem, and one which it has fallen to the lot of the United States only to solve. 310 THE NONCONTIGUOUS TERRITORY OF THE UNITED STATES. The attitude of the American people toward the Philippine Islands may be described as follows: There are those who think that the Declaration of Independence forbids our accepting or maintaining- sovereignty .over them; there are those who, without respect to the Declaration of Independence, believe that colonial possessions are likely to lead to expense and corruption and de- moralization, have little faith in the solution of the problem by teaching the Filipino the art of self-government, and are anxious to get rid of the islands before they have done any harm to the United States. Then there are those who hold that fate brought these islands under our control, and that thus a duty was imposed upon us of seeing to it that they were not injured by the transfer. As a friend of the Filipinos it is my anxious desire to enlarge that class of Americans who have a real Interest In the welfare of the islands, and who believe that the United States can have no higher duty or function than to assist the people of the islands to pros- perity and a political development which shall enable them to secure to themselves the enjoyment of civil liberty. [Applause.] Tn the Philippine Islands 90 per cent, of the inhabitants are still in a hopeless condition of ignorance and utterly unable in- telligently to wield political control. They are subject, like the waves of the sea, to the influence of the moment, and any educated Filipino can carry them in one direction or the other, as the oppor- tunity and the occasion shall permit. The 10 per cent, of the Filipinos who are educated have shown by what they have done and what they have aspired to and what they are that they may be taught the lesson of self-government and that their fellows by further education may be brought up to a condition of discrimi- nating intelligence which shall enable them to make a forceful and useful public opinion. But that it will take more than one gener- ation to accomplish this everyone familiar with the facts must concede. * * * My own idea of the mission of the United States in the Philip- pine Islands is that it ought to be maintained and encouraged by the people of t- e United States without regard to the question of is cost or its profitable results from a commercial or financial point of view. The islands themselves give every indication of furnishing revenue sufficient to carry out the plans which the United States may properly carry out in the material and intellectual develop- ment of the country and its people. The taxpaying capacity of the country is, of course, determined by that which it produces for domestic and foreign use. * * * The Philippine Archipelago is the only country in which can be produced what is known as "manila hemp," or what is called in the Spanish language "abaca." This is a fiber of enormous strength, of from 6 to 15 feet in length, which is stripped from the stalk of a banana plant — not the ordinary banana plant, but ""a plant of the same family which does not produce fruit. Many parts of the islands are very rich in cocoanuts. The cocoanut grove is planted 200 to a hectare; that is, 200 to 2y 9 acres. It takes four or five years for cocoanut trees to bear. After that they will bear for 100 years, and a low price for annual rent is $40 gold a year an acre. The sugar and tobacco industries in the islands are capable of a considerable increase. The island of Negros contains sugar land as rich as any in the world, and the provinces of Cagayan, Isabela, and Union contain tobacco lands which, next to Cuba, produce the best tobacco in the world, but the trouble is that the markets for such sugar and tobacco have been, by tariffs imposed in various countries, very much reduced. Should the markets of the United States be opened to the Philippines it is certain that both the sugar and the tobacco industry would become thriving, and although the total amount of the product in each would prob- ably not affect the American market at all, so extensive is the demand here for both tobacco and sugar, it would mean the differ- ence between poverty and prosperity in the islands. I know that the reduction of the tariff for this purpose is much opposed by the interests which represent beet sugar and tobacco; but I believe that a great majority of the people of the United States are in favor of opening the markets to the Philippine Islands, conscious that it will not destroy either the beet-sugar or the tobacco industry of this country, and feeling that as long as we maintain the association which we now have with the Phil- ippine Islands it is our duty to give them the benefit of the mar- kets of the United States and bring them as close to our people and our trade as possible. * * * There are 7,600,000 Filipinos. Of these, the 7,000,000 Christian Filipinos are imitative, anxious for new ideas, willing to accept them, willing to follow American styles, American sports, Ameri- can dress, and American customs. A large amount of cotton goods is imported into the islands each year, but this is nearly all from England and Germany. There is no reason why these cotton goods should not come from America. * * * The first requisite of prosperity in the Philippine IslanHs is tranquillity, and this should be evidenced by a well ordered govern- ment. The Filipinos must be taught the advantage of such a gov- ernment, and they should learn from the government which is given them the disadvantages that arise to everybody in the country from political agitation for a change in the form of gov- ernment in the immediate future. Hence it is that I have ven- tured to oppose with all the argument that I could bring to bear the petition to the two political conventions asking that independ- ence be promised to the Filipinos. THE NONCONTIGUOUS TEBBITOBY OF THE UNITED STATES. 311 It is not that 1 am opposed to independence in the islands, should the people of the Philippines desire independence when they are fitted for it, but it is that the great present need in the islands is tranquillity. The Prevailing Sentiment in the Philippines Regarding the United States and Its Treatment of the People of Those Islands. The following are extracts from remarks of Dr. N. Pardo de Tavera, the head of the delegation of Filipinos visiting the United States in 1904. The remarks were delivered in Wash- ington, D. C, during the visit of the delegation to that city : "In the Philippines we knew nothing of you. We lived un- der a government which ruled through fear and imposed upon us civil and religious tyranny. To the extent that we were accus- tomed to that kind of tyranny, we feared it would be continued under the American rule and be far worse. We did not know at the time of the beneficent purposes' which animated you, and no man can condemn us for fighting when we were under that er- roneous impression. But so soon as we learned what these pur- poses were we were glad to accept these conditions. None of you can appreciate the emotions which welled up within us when our eyes rested upon the White House, within whose walls' your be- loved President McKinley evolved the intention of stretching out his beneficent hand to us to raise us up to the ane upon which you now stand and place us within the same beliefs that you now have in this' great country. You have done something unique in the history of the world. Some nations have colonized for the purpose of extending their religious beliefs; others with the in- tention of extending their commercial and industral interests, but you have carred these principles of liberty and democracy to the peoples of the countries where you have placed your foot and your flag." THE HAWAIIAN ISLANDS. Development Since Annexation. General conditions in the Hawaiian Islands show a marked improvement since annexation. Owing to wise administration there is a closer touch evident between the executive and the people, and political differences arising from local conditions have found a neutral ground in the common cause of Hawaii's welfare and future status. There is a growing sense of the responsibility on the part of the electors as they appreciate their accountability for the use of the ballot. In 1900 there was but little interest shown in the sending of delegates to the national conventions, while this year the keenest competition developed for places on the delegations. No single event since annexation is more ex- pressive of the progress and the future possibilities of Hawaii than the completion of the cable connecting Hawaii with the mainland and the Orient. The Hawaiian silver has been prac- tically retired from circulation and its place taken by currency of the United States. The successful growing of coffee and tobacco, also the growing and canning of pineapples is no longer an experiment: four large pineapple plantations are well started and two of them are al- ready sending their products to the mainland. The sisal indus- try has also been demonstrated. The traffic in bananas has in- creased materially, especially from the port of Hilo, where in six months' time it is expected that the monthly shipment will reach 20,000 bunches. The industry will grow with the increase in the number of steamers between Hawaii and the mainland. The last seven years have seen a large development in sugar, the main industry. The increase from 251,126 tons in 1897 to 437,991 tons in 1903 does not tell the whole story. There is not a plantation on the islands that has not, during these years, modernized its equipment in the sugar factories. During this period it is calculated that over $40,000,000 has been spent, mostly on the mainland, for machinery and other improvements, all of which are now installed. Since annexation extensive improvements have been made in the capital city, especially in the business districts. The wharf system has been materially extended and modernized. A trolley system has been laid through the city and its suburbs. These improvements have been made with material purchased in various parts of the United States and have changed substantially the appearance of the water front and city. Perhaps the most remarkable development in Honolulu since annexation has been the education of the lower classes in sani- 312 THE NONCONTIGUOUS TERRITORY OF THE UNITED ST A U.S. tation. Modern methods in the prevention of diseases and the precautionary measures to stamp out diseases as they appear are now understood by Honolulu's alien population. There has been established by the Federal Government on Quarantine Island, on the edge of Honolulu Harbor, one of the largest and most efficient quarantine stations of the United States. Hawaii looks forward with extreme eagerness to the com- pletion of the Panama Canal, for the following reasons: Ships coming through the canal from Europe to the Orient will touch Hawaii for orders, repairs, and for the necessary coal, fuel, oil, and provisions. It is reasonable to expect that the opening of the canal, together with the expected increase in trade caused thereby, will result in a large increase in the American marine and that most of the vessels engaged therein will make the Hawaiian Islands a port of call. The benefits to Hawaii of this trade, aside from the greater facility of shipping the Territory's produce, will undoubtedly be substantial. Since 1897, the year before the annexation of Hawaii by the United States, the exports from that island have practically doubled, increasing from $13,687,799, during the fiscal year ending June 30, 1897, up to $26,242,869 during the year ending June 30, 1903. Within the same period the imports of merchandise from the United States have more than doubled, from $4,690,075 in 1897 to $10,840,472 in 1903. Last year the balance of trade in favor of this Territory was $15,400,000. A remarkable exhibit is made by comparing the trade growth per capita of population in Hawaii, which shows an increase from $131 up to $247 under annexation for every man, woman, and child in the Territory, a total per capita of trade that is more than eight times greater than that of the trade per capita for the entire United States. Thus: Hawaii's per capita of trade. Fiscal year— Imports. Exports. Total. 1897 $33.50 42.20 66.40 90 No data. No data. 73.27 $97.77 122.76 127.36 138.05 186.02 164.86 174.95 $131.27 1898 164,96 1899 193.82 1900 228.05 1901 1902 . 1903 247.22 30.43 Last year's imports into Hawaii from foreign countries amounted to $3,036,583, as compared with $10,787,666 from the United States. Hawaii's staple product for export Js, of course, sugar, and its output has more than doubled in quantity and in value within the past eight years, though there has been but little variation in the average export price for each year. As this is the prin- sipal commodity that affects the prosperity of the Territory its importance will be realized from the following exhibit : Quantity and value of sugar exported. Year ending June 30— Pounds. Value. Price. Cts. per pound. 1896 352,175,269 431,196,980 499,766.798 462,299.880 504,713,105 690,877.934 720,553,357 774,825,420 $11,336,796 13,164,379 16.660,109 17.287,683 20,392,150 27,093.863 24,147.884 25,665,733 3.22 1897 3.05 1898 3.33 1899 3.72 1900 4.05 1901 3.92 1902 . . . . 3.35 1903 . 3.31 All of this sugar is sold in New York or San Francisco and affords cargoes for American steamers and sailing vessels, amount- ing to nearly 400,000 short tons, besides the smaller shipments of coffee, sisal, fruits, hides, etc Last year there were 61 tamers and 211 sailing vessels that entered at Hawaiian ports from the mainland, and 247 cargoes of 399,584 tons left this Territory for ports of the mainland in THE NONCONTIGUOUS TERRITORY OF THE UNITED STATES. 3l3 the same period, all of these cargoes being carried in American bottoms. Only five American vessels, of 4,288 tons register, left here in ballast, while twenty vessels of foreign nationality, of 25,397 tons register, had to go elsewhere in ballast seeking freights. As a matter of fact, one American vessel leaves this American Territory for the mainland every one and one-half days with a cargo produced on American soil for the consumption of the American people. While the current receipts of the Territory of Hawaii show an increase of only ,$200,000 for the year 1903 as compared with 1897, the year before annexation, there have been considerable fluctuations in the interval, the receipts aggregating as high as $3,345,231.50 for the year 1899, due mainly to a gain of nearly 50 per cent, in the receipts from customs in that year. In the year 1900 the Federal Government assumed control of the revenues from customs, postoffice and internal-revenue sources which aggregated $1,600,000 in 1899. Deprived of this large pro- portion of income, it became necessary to increase our system of direct taxation, which shows a jump from $763,984.84 in 1897 to $1,300,347.92 in 1900, and up to $1,678,362 in 1903— a gain of more than $900,000 per annum ($6 per capita increase) within the seven-year period. Expenditures in Hawaii show an increase of nearly $900,000 within the same seven years, from $1,999,024.59 in 1897 up to $2,- 884,563.12 in 1903. That this additional government outlay was judiciously expended is shown by the fact that there was a gain of $440,000 in the outlay for public works and. improvements and of $180,000 in providing additional and improved education. There has been a wonderful growth in the schools of Hawaii since annexation. In 1899, the year after annexation, there were in the islands 189 schools, containing 15,490 pupils taught by 544 teachers. On December 31, 1903, there were 19,022 pupils in 204 schools, taught by 647 teachers. No complete statistics have been collected since 1903, but there must be over 20,000 pupils in the various schools of the Territory at the present time. Thus, since annexation there has been an increase of 3,552 pupils, or about 1,000 per annum. To meet this, up to December 31st of last year, there was an increase of 15 schools and 103 teachers. It has been frequently charged that Asiatics formed the bulk of the pupils. This is one of those careless statements bandied from mouth to mouth without thought, and frequently believed. Indeed there are those who will asseverate that this is a fact. A little consultation of statistics will show the utter fallacy of the statement. Of the 19,022 pupils in school on December 31, there were 8,199 Hawaiians and part Hawaiians, the whites num- bering 5,882, making a total for Hawaiians and whites of 14,081. The Japanese children in school numbered 2,740 and the Chinese 1,585, while the Porto Ricans brought up the rear with 616. These latter, however, should be counted with the Hawaiians and whites, being American subjects. Of the 647 teachers reported at the close of 1903, there were 163 Hawaiians and part Hawaiians, 303 Americans (or nearly half the total number), 55 British, 13 Germans, 55 Portuguese, 15 Scandinavians, 9 Japanese, 16 Chinese, and 17 of other nationali- ties. All the Japanese and 13 of the Chinese are employed by re- ligious or philanthropical institutions sustained by private funds. PORTO RICO. Porto Rico was- occupied by the United States July 25, 1898. On August 12, that same year, the protocol was signed and military operations ceased. On October 18 Spain withdrew from the island and a government by the United States military authorities followed, and this military government was maintained until May 1, 1900, when a civil government was instituted under an act of Congress devising a special form of government for the island. The organic act was presented by Senator For- aker, and after more than four years' operation has been proved by experience to be a wise and temperate measure. It embodies as much self-government as the most thoughtful and intelligent natives of the island would recommend. It provided for an 314 THE NONCONTIGUOUS TEBB1TORY OF THE UNITED STATES. executive council, consisting of the six administrative heads of the departments, together with five native Porto Ricans, all of whom ace appointed by the President of the United States; also made provision for a house of delegates, to consist of ;;."> mem hers, to be chosen by the qualified voters of the island. These two bodies constitute the legislative assembly, with usual legis- hitive powers. The law has worked admirably, the product of the legislation thus far being wise educational statutes under which a system of free public schools has been built up; sound revenue laws have been adopted; political, civil, and penal codes, together with codes of civil and penal procedure; laws establish- ing writs for the protection of life and property; creating modern judicial systems; establishing a bill of rights; providing for liberality in the right of appeal in judicial matters; establishing sound marriage laws, and otherwise providing for the implanting of American laws, customs, and institutions. By reason of the ravages of war and the ruin brought by the cyclone of August, 1899, a modified tariff system was provided by Congress whereby all the duties, including those paid on mer- chandise going from the United States to Porto Rico and from Porto Rico to the United States, should be turned into the treasury of the island. Through this measure a large revenue was provided for the people, which gave immediate impetus to educa- tion and public works. This tariff measure was subject to abroga- tion, however, whenever the legislative assembly might provide a revenue system of its own and notify the President that, the revenue system would produce sufficient income to maintain the government By prudent laws and good sanitation, on July 4. 1901, the necessary statute was enacted, and by the wish of the people themselves, on July 25, the anniversary of the landing of the American troops in the island, President McKinley issued his proclamation declaring free trade between Porto Rico and the United States. Congress provided that all the duties on imports from foreign countries collected at the ports of Porto Rico should be turned into the insular treasury for the support of the island. The internal-revenue system of the United States was exclude 1 from the island, thus permitting the insular legislature to utilize its own resources of taxation to establish an excise system. This has been done, and now the income from customs collected upon goods imported to Porto Rico from foreign countries, the excise taxes collected under its own internal-revenue system, and its property tax, made up the principal sources of revenue. It costs approximately $2,400,000 a year to maintain the government of the island. The property tax is one-half of one per cent, for insular purposes and one-half of one per cent for municipal purposes. The civil government instituted was conservative and generous. It made the people of Porto Rico as free as any in the world, and was a wonderful transition from the absolutism of Spain, whore guaranties were always in form but never in spirit, and whose promised autonomy always had nullifying reservations to it. The act of Congress put every man on an equality before the law, and gave to the representatives of the people of Porto Rico, through the house of delegates, a right to say what their laws should be. Indeed, it may be counted as a remarkable document, and coming as it did to the oppressed people of the island, was hailed as a proclamation of sacred rights, like unto a declaration of inde- pendence. Moreover, under its operation there have been put into actual and permanent execution, those methods of govern- ment which defend the rights and promote the duties of citizen- ship. Burdens of taxation are now borne in accordance with the ability of citizens to bear them. Education extends alike to the poor and to the rich. Public improvements are made for the general good and not for a special few. Let it be noted, too, that under the old regime, Spaniards did all of the work of government and Porto Ricans were excluded, while now natives are employed in every possible capacity, being judges, assistant chiefs of departments, school-teachers, engineers, telegraphers, clerks of courts, and filling other positions requiring skill and honesty. No discussion of the present condition of the island of Porto THE NONCONTIGUOUS TERRITORY OF THE UNITED STATES. 315 Rico should be had without remembering that in August, 1899, the most devastating cyclone ever known in the neighborhood of Porto Rico swept over that island. Thousands of lives were lost, coffee plantations were utterly ruined, and incalculable destruction of property of all kinds followed its devastation. Coming just after the close of the Spanish-American war its effect was even more far-reaching, and the task of the American Government was made more difficult than it otherwise would have been. The coffee in- dustry, which has been the greatest in the island and wherein the largest number of people were employed, was practically an- nihilated, and the means of living of half the people gone. Poverty, sickness, and almost despair followed. Had it not been for this natural calamity Porto Rico to-day doubtless would have equaled any country in the world in prosperity. Nature and nothing else could restore the coffee plantations. Gradually they have been growing to a normal state, and they will in a few years be more productive than ever. The coffee crop last year was about normal, and the financial condition of the planters is improved. The people are hopeful and helping themselves to a better condition. The sugar crop for 1903 is conservatively estimated at 125,000 tons, the largest known in the history of the island. All this sugar is admitted to the United States free of duty, which gives to the sugar planter of Porto Rico an incalculable advantage over the planter in Cuba and the other West India islands. Tobacco fields are being generally planted now, the value of the crop In 1904 being estimated at about $3,000,000. Since the Americans went to the island orange groves have been planted, and in a few years the crop will be very large, it being estimated that ten thousand acres are planted in this fruit. This agricul- tural development is only a good beginning, but it serves to prove that under American occupation the progress has been steady and will be fast in the future. It may seem incredible, but it is a fact that at the expiration of four centuries of Spanish rule there were only 284 kilometers (a kilometer is about five-eighths of a mile) of roads under main- tenance in Porto Rico. After the military occupation of the United States in 1898, road construction and repair were pushed, and the government of the island has vigorously carried on the work, with the result that there are now under maintenance 707 kilometers. Briefly, in five years American energy has provided 423 kilometers of good road, as against 284 kilometers built during the preceding four hundred years. This road extension means re- duced cost of transportation and encouragement to agriculturists, as is clearly visible by the rapidly developing sections adjacent to the lines of the new roads. Again, the cost of road maintenance has been reduced from $1,000 per kilometer to $537. Since the Americans occupied the island the government has been conducting the telegraph system. In February, 1901, there were but ten telegraph stations in operation. The lines have been considerably extended since then and new stations opened, there being on July 1 39 offices established. Native telegraphers are employed, who have learned their art in the telegraph school in- stituted in connection with the offices in San Jaun. The system is self-sustaining. Wages are better now than they were during the times of the Spaniards. Then the laborers were paid in pesos, which were only worth 66 2-3 cents, while now all labor is paid in gold, so that the laborer obtains the difference. The wages of mechanics and other employees are higher. The purchasing power of the gold dollar for the necessaries of life is about the same as was that of the peso, although it is true that luxuries are somewhat higher than under the former dominion, and there has been a slight increase in the cost of living. But all employers of large numbers of men are practically unanimous in testifying that the laboring people of the island now buy more things and of a better quality than formerly. In addition to this, their work is more steady, and they are much more ambitious in bettering their homes than they used to be. They dress better and generally are living in a more advanced manner. The health reports show a decrease in the death rate, and bear witness to the fact that under prevailing sanitary methods 316 THE NONCONTIGUOUS TKUHIToin OF TBI INITKD STATES. the average death rate from January 1, 1903, to May 1, 1904, was 23.01 per 1,000. The hospital service has been very greatly improved, modern operating rooms and conveniences having suc- ceeded the most primitive methods under the old sovereignty. There is now a careful inspection of food, and it is said thut upon the question of pure food Porto Rico stands in a more advanced state than many States of the Union. Smallpox has been practically eradicated, there is no yellow fever, and, thanks to American government, there is a practical immunity from those diseases which usually afflict the Tropics. Successful effort is now being made to stamp out a form of parasitical anemia which has existed in Porto Rico for many years, and it is be- lieved that ere long even further improvement will be had in the physical condition of the people. In the times of the Spaniards no provision was made for in- digent blind, and all charitable institutions were conducted upon standards abhorrent to the improved American ideas. A blind asylum has just been established and all charitable work has been systematized. A boys' charity school, with three hundred inmates, is now housed in a commodious building; these boys are taught to be self-supporting. In the girls' charity school 200 orphans are being educated, learning to be useful and good women. The insane are looked after as well as they are in any State, and the few lepers that there were in the island have been made com- fortable on an island near San Juan. The management of this leper colony is said to be equal to that of the best in the civil- ized world. Nothing is more important than education, before referred to in this article. Spain never built a schoolhouse during her oc- cupation of Porto Rico, and the systems of education provided under her sovereignty were inadequate, lax, and bad. About 1897, she attained her maximum enrollment of children, which num- bered 22,000. Under American occupation an excellent normal school has been established, more than 40 schoolhouses have been erected, and this year the enrollment of children will reach 75,- 000. Nearly fourteen hundred school-teachers were employed during the school year, and during the fiscal year enaing July 1, 1903, there was actually spent in the island $817,814.64 for edu- cation. Industrial classes are being established with a view to teaching the boys useful trades and at the same time developing their minds. The government of the island is also educating 45 Porto Rican youths in the United States. These boys are scat- tered in the various States in the Union. They are doing well and when their studies are completed it is expected that they will return to the island to exert a strong influence among the people. The War Department at Washington has withdrawn nearly all of the regular troops from the island, their presence not being necessary for the maintenance of order. But there is left the Porto Rico provisional regiment, a body of enlisted native Porto Ricans who are organized under a special act of Congress and under command of field officers from the line of the Regular Army. The Porto Ricans make excellent soldiers, are very proud of their uniform, and are looked upon by their officers as brave and loyal men. Porto Ricans are also admitted to the Military Academy at West Point and to the Naval Academy at Annapolis. A number of young men are striving to earn admission, realizing the honor the opportunity affords. One of the defects of the old civilization was the vast exient to which concubinage existed among the illiterate country people. This has improved since the American occupation, and recently legislation has been enacted by which it is unnecessary to procure a marriage license prior to marriage, provided the priest or clergyman or official who performs the marriage service keeps the necessary statistical record and files the same with certain designated official records. The result of this legislation will be a very large number of marriages. The appended tables show the commerce of Porto Rico for the years 1893 to 1903, with the exception of 1898— the year of the war — for which no accurate data are obtainable, and with the United States for a like* period. From them it will be observed . THE NONCONTIGUOUS TERRITORY QF THE UNITED STATES. 317 that in 1893 the total commerce of the island amounted to $32,- 873,542, the imports exceeding the exports by $554,934, and that the largest trade the island ever enjoyed was in 1897, when it reached a total of $34,943,232, and with a balance in its favor.. Owing to the war the year ending June 30, 1899, showed a de- cline to $19,962,460, and the disastrous hurricane of August of that year, with which the world is familiar, still further reduced the surplus products, 1900 showing a total trade of but $16,602,- 004, of which but $6,612,499 was exports. In spite of the fact that the hurricane practically destroyed the coffee plantations and did untold damage to sugar, the two principal products of the island, and financially wrecked most of the planters, under American rule the output has steadily and rapidly increased until in 1903, after four years, it has reached $29,395,497, with a balance of trade in favor of the island of $496,165, the greatest in its history. While fostering the industries of the island and directing her prosperity the United States has made for herself a market for agricultural products and manufact 1 _d articles, supplying in 1903 80 per cent of all such go lis purchased by Porto Rico, against 20 per cent, in 1897. jlii fiv„e years the consumption of American breadstuff s has increased 50 per cent, provisions and agricultural products 60 per cent., cotton manufactures from $3,- 723 to $2,044,470, leather manufactures from $6,112 to $309,836, coal, fish, oils, paper, wines and liquors, chemicals and drugs, and wood manufactures from practically nothing to a total of a million and a half per annum. Naturally most of this trade was taken from Spain, her ex- ports to the island of cotton manufactures dropping from $9,772,- 699 in 1897, the year before American occupation, to $53,657 in 1903; wood manufactures from $529,554 to $1,801, shoes from $5,255,620 to practically nothing, oils from $751,681 to $51,210, wines from $845,462 to $29,070, preserved meats from $791,745 to $12,056. The United States is also supplying most of the articles formerly imported from the United Kingdom, Germany, Cuba, and the Netherlands. The island's imports from the principal coun- tries for 1897 and 190 3 were as follows : Country. 1897. 1903. Spain $6,901,695 1,694.303 1,268.592 668,533 149,925 207,932 2,181,024 $793,061 United Kingdom 318,839 155 917 Cuba 5,482 Netherlands 7.120 France 259,992 United States 12,246,226 France is the only country that has retained her trade, due largely to the French Railroad Company, the only public line in operation on the island. Naturally the United States has opened her markets to the surplus products of the island. In 1897, the United States took but $22,489 worth of coffee ; in 1903, $718,531 ; fruits and nuts, $61 against $287,583; sugar, $1,577,911 against $7,466,579, and cigars none in 1897 against $1,746,483 in 1903. As the United States produces no coffee nor .tropical fruit the Porto Ricans do not come into competition with her agriculturists in the ad- mission of these articles. To supply home consumption the United States must import $75,000,000 worth of sugar annually, so that the supplying of 10 per cent, of this article in a crude state for refining in the United States, and an invasion by Porto Rico of the United States' markets for Cuban cigars, is a very small concession for the markets opened to America for $12,000,- 000 annually of agricultural products and manufactured articles. This trade with the United States- is carried on solely in Ameri- can vessels, and has developed steamship lines from New York and New Orleans. In 1897 less than 10 per cent, of the commerce with the island was carried in American boicoms; in 1903 it was 80 per cent. It must be borne in mind that the island is self-supporting and that Congress appropriates only for the maintenance of one regi- ment of soldiers, so this already large and steadily increasing 818 TIIE NONCONTIGUOUS TERRITORY OF THE UNITED STATES. commerce is practically a not gain to the farmers and manu- facturers of the United States. In addition to these advantages the United States has secured a valuable naval base. nnd. from 8 mitarian standpoint, the satisfaction of uplifting a million people who under Spanish rule were but little better than serfs. The island does not owe a dollar and has never cost Uncle Sam a cent. When the Americans came they found $3.80 in gold in the treasury. On May 1, 1004, there was a balance of $370,883 in the treasury of current revenues and $005,070 of trust funds, or a total of $984,953 cash on hand. These constitute some of the signs of progress in the few years of American sovereignty. The large majority of the peo- ple are grateful for the blessings of good government, where free speech, a free press, an independent judiciary, a just tax system, an honest public service, a jury system, the writ of habeas cor- pus, free schools, and just laws have superseded the scourges of four centuries of oppression. Under such conditions it is not to be wondered at that the names of McKinley and Roosevelt mean to the people confidence and hope. Total commerce of the island of Porto Rico, 1893 to 1903, inclusive. Year. Imports. Exports. 1893 $!6,714.238 19.086,336 16.835,453 18,282.690 17,233.030 $16,159,304 1894 16.690,191 1895 . 15.245.639 1896 19.341,430 1897 16,710.202 1898 1899 9,805.919 9.989.505 8.366.230 13,209,610 14.449,696 10,156,541 1900 6.612.499 1901 8.583.967 1902 12.352.612 W03 14,945.831 * The year of the great hurricane. Total commerce of the island of Porto Rico, 1893 to 1903, inclusive. Year. Imports from United States. Exports to United States. 1893 $4,008,623 3.135.634 1.506.512 2.296.653 2.181.024 2,414,356 3.179,827 3,078,648 7,413.502 10.882,653 12.246.225 $2,510,607 1894 2,720.508 1895 1,833,544 1896 £2.102,094 1897 1,988.888 1898 1,505.946 1899"" 2,685.848 1900 4.640.449 1901 5.581,288 1902 8.297.422 1903 10.919.147 TRADE RELATIONS OF THE UNITED STATES WITH ITS NONCONTIGUOUS TERRITORY. [From Annual Review of Foreign Commerce of United States, 1903.] The trade relations with the noncontiguous territories of the United States have been, during the past year, for the first time fully and definitely recorded. The enactment by Congress in 1902, upon the recommendation of the Bureau of Statistics, of a law requiring persons engaged in commerce with the noncontiguous territories of the United States to present reports similar to those required in commerce with foreign countries, has enabled an ac- THE NONCONTIGUOUS TERRITORY OF THE UNITED STATES. 319 curate measurement to be made of the quantity and value of mer- chandise being forwarded to and received from each of the terri- tories in question. These reports show that the commerce with the noncontiguous territories, including in that term Alaska, Porto Rico, the Hawaiian and Philippine islands, Guam, and Tutuila of the Samoan group, aggregated $100,000,000 in the fiscal year 1903, including about $5,000,000 of«old produced from the mines of Alaska and received in the United States from that terri- tory. To Alaska the total shipments of the year were $9,497,721, and from Alaska the receipts of merchandise were $10,228,069, and of domestic gold $4,719,579. This being the first year in which an official record of the shipments to and receipts from Alaska was made, no comparison can be had with official statistics of earlier years. From Alaska the principal articles of merchandise received were canned salmon, $8,410,931 ; other fish, $674,658, and furs and fur skins, $423,606 ; of the shipments to Alaska the principal items were iron and steel manufactures, $2,311,678 ; provisions, $969,773 ; wood and manufactures thereof, $692,814, and tin and manufac-. tures thereof, $420,316. To the Hawaiian Islands the shipments of merchandise aggre- gated $10,840,472, against $13,509,148 in 1900, the latest year in which an official record is available. From the Hawaiian Islands the receipts of merchandise were $26,242,868 in value, against $24,730,060 in the preceding year. Sugar formed the principal item in the merchandise received from the Hawaiian Islands, be- ing $25,310,684, out of a total of $26,242,868. The shipments to the Hawaiian Islands included merchandise of all classes, the largest items being breadstuffs, $1,456,571 ; iron and steel manufactures, $1,149,505; cotton manufactures, $1,022,116, and manufactures of wood, $815,290. To Porto Rico the shipments were larger than in any preceding year, being $12,246,225 against $10,882,653 in the preceding year, while the receipts of merchandise from Porto Rico weFe $11,- 057,195 against $8,378,766 in the preceding year. Of the mer- chandise received from Porto Rico the largest item was sugar and molasses, $7,847,558, and tobacco, $1,890,391. Of the shipments to Porto Rico the principal items were cotton manufactures, $2,044,- 470 ; provisions, $1,463,121 ; breadstuffs, $1,185,313, and iron and steel manufactures, $1,434,350. To the Philippine Islands the exports of the year amounted to $4,039,909, of which the largest items were iron and steel manu- factures, $657,354; provisions, $127,936; mineral oils, $265,624; cotton manufactures, $316,570, and breadstuffs, $278,891. From the Philippine Islands the value of the merchandise received was $11,372,584, against $6,612,700 in 1902 (of which $10,931,186 was manila hemp, against $6,318,470 in 1902). The tables which follow show the commerce of the United States with Porto Rico and the Hawaiian and Philippine islands for a term of years : Commerce of the United States with Porto Rico and the Hawaiian and Philippine Islands from 1897 to 1903. Year Commerce with Porto Rico. Commerce with the Hawaiian Islands. Commerce with the Philippine Islands. ending June 30— Imports into U. S. from Porto Rico. Exports from U. S. to Porto Rico. Imports into U. S. from Hawaii. Exports from U. S. to Hawaii Imports into U. S. from Phillip- pines. a Exports from U. S. to Philip- pines. 1897 1898 1899 1900 1901 1902 1903 $2,181,024 2.414.356 3.179.827 3,078.648 5,883.892 8.378.766 11,057,195 $1,988,888 1.505.946 2,685,848 4,640.449 6,861,917 10,882.653 12,246,225 $13,687,799 17,187.380 17,831,463 20,707,903 27.903,058 24.730,060 26,242,869 $4,690,075 5,907.155 9.305,470 13,509.148 (b) (b) 10.840,472 $4,383,740 3.830,415 4.409,774 5,971.208 4.420.912 6.612,700 11,372,584 $94,597 127.804 404.193 2.640,449 4.027.064 5.251.867 4.039.909 a Does not include supplies sent by the Government, b No data. Importation of Tropical Products. The growing dependence of the United States upon the Tropics for a*fciel€W for ftfdd and for use in manufacturing is again illus- 320 THE NONCONTIGUOUS TERRITORY (U THE UNITED STATES. trated by the fiscal year VMrx A latger quantity of sugar was brought into the United States in liXKi than in any year of our history, :iiul an nnnsnally large proportion was cane sn^ar of tropical production. The total amount of Cane sugar brought into the United States during the year, including that from the ll-i waiian and Philippine islands, was 5,076,6o4,049 pounds, of which the Hawaiian Islands *>ntributod 774,825,420 pounds, the Philip- pine Islands 1S.773.333 pounds, and Porto Pico 2:M, 143,508 pounds. In many articles of tropical production the imports of 1903 ex- ceeded those of earlier years. The table which follows shows the value of articles of the im- ports of tropical and subtropical production in order of magnitude in 1903, compared with earlier years: Value of principal imports of tropical and subtropical articles at (jiiiiKjuennial periods from 1870 to 1900, and in 1903. Articles. Year ending June 30— 1870. 1890. 1900. 1903. b Sugar and molasses a $69,802,601 24.234,879 3,017,958 1,376,762 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 $82,915,044 78,267.432 24,331.867 11,011,790 14.854,512 20,746,471 21,710.454 12,317.493 1.392,728 3,221.292 5,697,280 2.859,642 •fe.223.071 '■"2.546,674' 1.588,767 1,741,383 1,453,298 794,503 909,582 1,943,272 1,827,937 559.867 1.108,726 282,775 416.718 $85,949,891 52,467,943 45,329,760 24,277,262 31.792,697 19.263.592 15.661,360 10,558.110 7,960,945 6,320,711 6,884,704 6,210,985 3.401,265 2.430,702 2,279.036 1,909,483 1,736,458 2,189,721 1,667.256 1,049,034 1,083,644 1,446,490 1,209,334 411,029 563,065 536.303 $107,282,112 Coffee 63,408.238 Silk 50 01 1 050 Fibers 31.613.240 30,659,110 Fruits and nuts 23,726 636 22,547 104 Tea 15,659 229 11 998 653 Vegetable oils y. 11.643.691 10 594 647 Cocoa, and mfrs of 8,257.441 4 815 125 4 035 300 3 061 473 Cork, and mfrs of 2.567,580 Feathers 2,476.659 1,776,908 2,340,436 1,545.167 Licorice 1 396 721 Dyewoods and extracts Indigo 1,337,093 1,203.664 1,417,770 1,202.451 Vanilla beans 1,032,654 Sago, tapioca, etc 388,621 618,221 549,753 540,710 Total $139,800,086 $297,716,578 $334,590,780 $414,696,281 a Only cane sugar not above No. 16 Dutch standard in color, and molasses. b Includes articles from Hawaii and Porto Rico. The figures in the table do not include articles received from Hawaii and Porto Rico during the years 1902 and 1903, those islands being now customs districts of the United States, and there- fore merchandise from them is not considered as imports into the United States. The principal . article of tropical production re- ceived from Porto Rico and the Hawaiian Islands is sugar, of which the quantity received from Porto Rico in 1902 was 183,- 817,049 pounds, valued at $7,999,853; from Hawaii, 720,553,357 pounds, valued at $24,147,884 ; in 1903, from Porto Rico, 220,143,508 pounds, valued at $10,741,533; from Hawaii, 774,825,420 pounds, valued at $25,065,738. While the table shows a large increase in the value of tropical and subtropical products imported, the actual growth can be better determined by an examination of the quantities of the various articles imported. In a large proportion of the cases prices have greatly decreased, and consequently the figures of values do not show the real growth. Sugar, for example, shows a comparatively small increase in value during the period from 1870 to 1903, while the quantity shows a very large increase, and this is true in a less degree of other articles. The table which follows shows the quantities of principal arti- cles of tropical and subtropical growth imported at quinquennial periods from 1870 to 1900, and in 1902 and 1903; THE NONCONTIGUOUS TERRITORY OF THE UNITED STATES. 321 Quantities of principal articles of tropical and subtropical growth imported from 1870 to 1903. Year ending June 30— Articles. 1870. 1880. 1890. 1900. 1903. 1.196.622,049 1.829.286,030 2,332.820,896 3,305,087,796 5.076.603,529 235,256,574 446,850.727 499,159,120 787,991,911 915.086,380 Silk do. 583,589 2,562,236 5,943,360 11,259,310 15.270,859 India rubber and gutta percha...lbs. 9,624,098 16,828,099 33,842,374 58,506,569 55,326.861 Tobacco, leaf lbs. 6.256.540 9.759.355 28,720,674 19.619,627 34,016,956 Cotton do. 1,698.133 3.547.792 8,606,049 67,398,521 98,081,946 Fibers.. . tons. 43,533 111,751 195,332 249,306 259,121 Cocoa lbs. 3,640,845 7,403.643 18,266,177 41,746,872 63,351,294 Olive oil. . . gal. 251,727 383,131 893,984 967,702 1,494,132 Tea lbs. 47,408.481 72.162,936 83.886,829 84,845,107 108,574.905 Rice do. 43,123.939 57.006.255 124.029,171 116,679,891 169,659.284 a Cane sugar under No. 16 Dutch standard in color only; figures, of 1903 include sugar from Hawaii and Porto Rico. Commerce of the United Kingdom with Its Colonies, 1869 to 1902. This table shows the commerce of the United Kingdom with its colonies from 1869 to 1902, and is interesting by way of its exhibit of the value which the British colonies have proved as a market for the products of the United Kingdom. It will be noted that the exports to the colonies have increased from 252 million dollars in 1869 to 571 millions in 1902, or considerably more than doubled; while the total exports have increased from 1,153 million dollars in 1869 to 1,699 millions in 1902, an increase of less than 50 per cent. ; also, that the sales of the Uniteu Kingdom to her colonies during the period in question have amounted to more than 13 bil- lions of dollars. Statement showing the total imports and exports of the United Kingdom, and the amount imported from and exports to her Colonies during the past thirty years, 1869 to 1902. Year. Imports. Exports. Total imports. Imports from colonies. Total exports. Exports to colonies. 1869 $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 2.047.297,603 2,119,074,911 2.062.392.927 1,969.415.018 1.987,210,018 2.027,820,221 2,150,063,031 2.194,932.434 2.289,905,792 2.360.425,665 2.545.545,281 2.540.265.299 2.571.416.135 $342,681,854 315,506,938 354,984.010 386.267.989 394.235.759 399.845,456 410.849.255 410.404,481 435.814.531 379.810.859 384.174.348 450.242.765 445,477,755 483,880,460 480,233.544 466.273.531 410.741.034 398,488.695 407.806,203 422,975,439 473,345,335 467.968.548 484,045.050 475.779,718 ; 446,596.048 457.023.556 464.897,767 453,596.873 457,586.162 484.815,412 §19,884.764 533,030,835 513.774.440 519,708,295 $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 1,348,693.391 1,332,378,922 1.391.003,409 1,422.329.445 1.431.598.345 1.430.819.072 1,603.680.413 1,724.559.874 1.692.881.460 1,699.570.518 $252,531,187 1870 269.561.917 1871 270.389.037 1872 319.287,259 1873 346,240,316 1874 379,149.151 1875 373,041.611 1876 341.384.435 1877 368,647.838 1878 350.352.514 1879 323.665.917 1880 396,753.915 1881 421.834,021 1882 449.361.013 1883 439.933.016 1884 429.729.930 1885 416.034.710 1886.. 400.184.346 1887 400.367,265 1888. . . . : 446.393,791 1889 442,053.886 1890 459.993,595 1891 454,229.956 1892 395,215,964 1893 382,425,688 1894 382,438,613 1895 370.205.123 1896 441,148.230 1897 1898 1899 423.212.102 438.523,897 458,665.678 iSoo.. 496.500.059 1901 550.490.518 1902 571,869,627 Total exports of United Kingdom to colonies from 1869 to 1902, $13,661,815,825. 322 l 111: NONCONTIGUOUS TERRITORY OF THE UNITED STATES. Commerce of countries commercially adjacent to the Philippine Islands in latest available year. Countries. Imports. Per cent from United states. Exports. Per cent to United States. British East Indies British Australasia China $278,054,000 258.765.000 204.768.000 135.322.CXX) 146,107.000 72.561.000 15.782.000 33.342.000 13.982.000 9.647.000 23,703.000 35.515.000 No Data 41.964.000 6.744.000 1.45 11.86 9.26 17.90 .57 1.33 .67 12.46 77.53 3.29 $409,535,000 280.116.000 134.720.000 127.326.000 125.316.000 95.102.000 21.103.000 28.672.000 26.275.000 10,430.000 13,243.000 32.250.000 No Data 40.677.000 4.142,000 6.73 5.57 11.64 Japan 31.37 Straits Settlements Dutch East Indies 12.78 11.28 .04 Philippine Islands Hawaiian Islands 40.03 99.88 1.45 10.05 Hong-Kong French East Indies .15 3.81 .01 Total $1,276,256,000 7.49 $1,348,907,000 12.34 Rapid Growth of Our Commerce with Asia Under the Republican Policy of Expansion — Growth in Exports More Rapid Than the Growth of Imports. This table shows the growth in commerce of the United States with Asia since 1889. That under the expansion policy of the Government since 1897 our prestige in the Orient and our trade with Asia has grown very rapidly and the percentage of growth in exports has been greater than in imports. The total gain in our exports to Asia since 1889 has been 157 per cent, while the growth in our total exports to all parts of the world since 1889 has been but 91 per cent. The relative growth of trade with each grand division is shown in the tables on pages . . . and .... Our commerce with Asia — Increase in exports more rapid than the increase in imports. [Prepared by Bureau of Statistics.] Jap an. Hongkong. Calendar Year. Imports into United Exports * from United States to. Imports into United States from. Exports from United States from. States to. 1899 : $20,219,385 17,179,524 23.914,123 27.196.026 19,486,273 28,100.725 27,430.678 18,214.322 28,085,123 23,259,486 34,203,587 26,315.235 36,854,692 40,597,582 45.510,768 125.07 $5,275,501 6,072,038 3,889,384 8.300,745 8,844.589 4,901962 6,856,454 10,145,909 1< .099,471 10,710,165 20,604,774 26,492,111 21,162,477 21,622,603 20,874,887 295.31 $1,498,653 861,084 617,619 855,61* 882,504 888,885 1,393 920 794,136 929,054 992,714 2,399,948 1,296.771 1.299,722 2,068.196 1,587,641 5.94 $3,864,224 1890 4,898 642 1891 4,812,694 1892 4,682,121 1893 4,289,687 1894 8,858.618 1895 4,462,856 1896 5,789,730 1897 5,737,763 1898 6699,514 1899 7.787,719 1900 9,378,289 8, 958,878 1901 1902 8.751,779 1903 9,792.193 153,41 Per cent of increase China. All Asia. Calendar year. Imports into United States from. Exports from United States to. Imports into United States from. Exports from United States to. 1899 .. 1890 1891 $15,764,717 17,750,174 21.229,212 19.886.164 18,864.089 19,837,375 21,842,860 17,707,317 23,087,740 17,388,462 24,196,476 22.940,397 18.125.836 26,182.113 24.985,510 58.49 $3,254,084 4,787,606 8,031,606 5,268,479 4,875,301 5.158,215 3.702,922 9,889.816 11,276.289 42.258,620 15,225,294 11,081,146 18,175,484 22 698,282 14,970,138 360.05 $67,646,679 63.340,309 80,451,865 83,574.886 74,845.881 72,530.886 87.098.909 78.177,767 93,896.750 94.310.501 136,863,919 120,378,219 125,093,643 142,223,176 139.651,662 106.44 $21,534,847 22,664,028 22,075,267 1892 1893 1894 1896 17,772,883 19.644,782 18,614,800 18,746,672 1896 1897 1898 1899 33.964,495 40,663,119 46,955,598 58,843,554 1900 58,726,173 1901 1902 69,068,723 62,685,097 1903 Per cent of increase 65,466,113 167.61 THE NONCONTIGUOUS TERRITORY OF THE UNITED STATES. 323 NEW HONORS FOR THE UNITED STATES AND ITS FLAQ AND REPRESENTATIVES. [By Hon. John Barrett, United States Minister to Panama, formerly Minister to Argentina and Siam and Commissioner-Gen- eral of St. Louis Expositon.] The Republican party is certainly entitled to great credit in the matter of raising the prestige and influence of the United States abroad to a position in harmony with its greatness and strength at home. Eight years ago American ministers and con- suls, American merchants, missionaries, and travelers in all parts of the earth, particularly in the great continent and along the extensive coast line of Asia, did not receive the recognition ac- corded to those of other great nations. There was no appreciation of the real standing of the United States. Our flag was little known and did not stand as a symbol of power. Our diplomatic officers failed to receive the recognition in foreign countries which was given to those of England, Germany, and France, or even of Holland and Belgium. Our merchants who encountered difficul- ties for which they were not responsible received scant satisfac- tion from foreign officials before whom they protested, although they saw the merchants of European countries everywhere having their rights protected. Our missionaries, although supported by the united church at home, were suffering unwarranted indignities, while the missionaries of European churches had their lives and property safeguarded on every hand. Our travelers, wishing to study foreign parts, never gained any facilities from saying that they were citizens of the United States, while the travelers of European nations were treated as if they were the special agents of their respective governments. Now, as a result of the policies followed abroad by President McKinley and continued by President Roosevelt, together with the prestige gained from the Spanish- American war and the later atti- tude of our Government in the Philippines, the United States is regarded in the remotest portions of the world as among the great nations of the earth. Our ministers and consuls stand in the front rank of foreign representatives, and our merchants, missionaries, and travelers find themselves, whether in the heart of Asia, Africa, or South America, accorded every protection, interest, and facility that is given to the most favored nation. A tidal wave of Ameri- can prestige has swept over the seas, and even back into the in- terior of strange lands everywhere our flag stands for that which is best among all peoples. We who have been entrusted with power as public servants during the past seven years of administration and legislation now come before the people content to be judged by our record of achievement*— President Roosevelt's speech accepting 1904 nomi- nation. The obstructionists are here, not elsewhere. They may post- pone but they can not defeat the realization of the high purpose of this nation to restore order to the islands and establish a just and generous government in which the inhabitants shall have the largest participation of which they are capable*— ■President Mc- Kinley to Notification Committee, July 12, 1900. Under present-day conditions it is as necessary to have cor- porations in the business world as it is to have organizatons— unions— among wage-workers. We have a right to ask in each case only this: that good, and not harm, shall follow.— President Roosevelt at Providence, R. I., August 23, 1902. Protection saves to the world the useless expense and labor of shipping products from one country to another and turns these into productive sources of wealth.— kludge "William Lawrence, of Ohio, in the American economist. The man or party that would seek to array labor against capital and capital against labor is the enemy of both*— Maj. Mc- Kinley at Canton, September 18, 1896. 324 OUR EASTERN DIPLOMACY. THE VICTORIES OF OUR EASTERN DIPLOflACY. The Frank nnd Effective Policy of the United States In Preserving China from Dismemberment Four Years Apt— The Restriction of the Areas of War Now — The Open Door nnd n Fulr Chance for Trade — Secretary Hay's Brilliant, Peaceful Achievements. The most recent stroke of our diplomacy in the Far East, whereby assurances have been secured that the neutrality of China and her administrative entity in all practicable ways will be respected by Japan and Russia, and that the area of hostilities will be limited as much as possible, recalls the preceding force- ful, far-seeing, and thoroughly American diplomatic achievements of Mr. Hay. Washington, in his memorable farewell address, formulated the basic principle of our diplomacy as follows: The great rule of conduct for us in regard to foreign nations is, in extending our commercial relations, to have with them as little political connection as possible. So far as we have already formed engagements, let them be fulfilled with perfect good faith. Here let us stop. That rule has been closely followed in all our diplomatic history, and at no time more implicitly than in handling our interests in the Far East in recent years. Our war with Spain brought the nation to self-consciousness as no other event in our history had done. That short but momentous conflict aroused us to a realization of the fact that more than a century of remarkable internal industrial develop- ment had rendered us an important factor in the world system. While engaged in this course of self-development we had been but half conscious that a gradual but steady absorption of many of the best markets of trade and commerce by the aggressive maritime powers of Europe had been going on, and that there was great danger that our nation might find itself confined practically to the home market for its products. What was to become of the largely increasing productions of factory, loom, and farm, with most of Africa, large portions of South America and Asia practically preempted by colonization, "spheres of in- fluence," and the like, by the aggressive powers of Europe? Where could the United States look for a legitimate, open field for the exercise of her now fully matured commercial powers? These problems had received the careful consideration of statesmen and students of the course of events long before the guns of Dewey awakened us to self-consciousness. Their suc- cessful solution was of vital importance to the commercial pros- perity of our country. In 1899 a fair solution was advanced by Mr. Hay by the initi- ation of the "open-door" policy, the success of which has won him a well-merited renown. China, recently become a near neighbor, was a natural field for the extension of our trade relations and the development of our industrial activities. For centuries it had been almost a hermit nation hedged about by walls of conservatism stronger than its wall of stone. Gradually, however, she had been open- ing her ports and engaging in international trade on an increas- ing scale. But already Great Britain, Russia, and Germany had gained special advantages and exclusive privileges in portions of China, and the danger was imminent that the Empire might be totally dismembered or divided among those and other powers under the guise of "spheres of influence." TRIUMPH OF THE OPEN-DOOE POLICY. To meet and prevent if possible such a contingency Mr. Hay addressed the governments of Great Britain, Russia, Germany, Italy, and Japan through the medium of our diplomatic repre- sentatives in those countries, in September, 1899, suggesting that as he understood it to be the settled policy and purpose of those OUR EASTERN" DIPLOMACY. 325 countries not to use any privileges which may be granted to them in China as a means of excluding any commercial rivals, and that freedom of trade for them in that Empire means free- dom of trade for all the world alike, he considered that the maintenance of this policy is alike urgently demanded by the commercial communities of the several nations and that it is the only one which will improve existing conditions and extend their future operations. He further suggested that it was the, desire of this Government that the interests of its citizens may not be prejudiced through exclusive treatment by any of the con- trolling powers within their respective "spheres of interest" in China, and that ft hopes to retain there an open market for all the world's commerce, remove dangerous sources of international irritation, promote administrative reforms which were so greatly needed for strengthening the Imperial Government and maintain- ing the integrity of China. He accordingly proposed to these various powers that a declaration by each of them of their in- tentions in regard to the treatment of foreign trade and commerce in their "spheres of interest" be made substantially to the fol lowing effect: "1. That it will in no wise interfere with any treaty port or any vested interests within any so-called "sphere of interest' or leased territory it may have in China. "2. That the Chinese treaty tariff of the time being- shall apply to all merchandise landed or shipped to all such ports as are within such 'sphere of interest' (unless they be 'free ports'), no matter to what nationality it may belong, and that duties so leviable shall be collected by the Chinese Government. "3. That it will levy no higher harbor dues on vessels of another nationality frequenting any port in such 'sphere' than shall be levied on vessels of its own nationality, and no higher railroad charges over lines built, controlled or operated within its 'sphere' on merchandise belonging to citizens or subjects of other nationalities transported through such 'spheres' than shall be levied on similar merchandise belonging to its own nationals, transported over equal distances." By December of that year replies had been received from all those governments giving cordial and full assurance of the prin- ciples suggested by our Government. The expressions of the Government of Germany were especially cordial, and in his note of February 19, 1900, Count von Bulow, the German minister for foreign affairs, said: "Gladly complying with your wish, I have the honor to inform your excellency * * * that the Im- perial Government has, from the beginning, not only asserted but also practically carried out to the fullest extent in its Chinese possessions absolute equality of treatment of all nations with regard to trade, navigation, and commerce. The Imperial Gov- ernment entertains no thought of departure in the future from this principle * * * and, upon being requested, will gladly * * * participate with * * * the other powers in an agreement made upon these lines by which the same rights are reciprocally secured." This great triumph in favor of equality of treatment for the commerce of the nations was scarcely won when the world was startled by reports of frightful massacres and atrocities being perpetrated by the "Boxers" upon all foreigners in China in the early part of 1900. The Central Government of that country, too weak or indifferent to restrain its subjects or to afford protec- tion to foreign residents, abandoned the administration of the Government and fled for personal safety to an inaccessible refuge, leaving to the provincial governors or viceroys the difficult duty of handling locally the affairs of the country. Practical anarchy prevailed, and a feeling was rapidly developing among some of the powers that the situation justified a movement on the part of the powers to take possession of the country for the purpose of restoring order and enforcing due reparation for the wanton destruction of lives and property of their nationals, and, once in possession, it was thought and hoped that an indefinite period would be necessary to restore an improved order of things. THE BOXER NEGOTIATIONS. While great anxiety and uncertainty prevailed and the nations stood aghast at the frightful fate which seemed almost inevitably to await the entire diplomatic corps and all the other foreigners in Peking, and the ancient Empire seemed tottering to its fall, 326 OUB EASTERN DIPLOMACY. there appeared a clear, calm note addressed by our Secretary of State on July 3, 1900, to all powers having Interests in China, containing a statement of the position of our Government with respect to affairs there. It declared the intention of the govern- ment to be to adhere to -its well-known policy of peace with China, the furtherance of commerce, the protection of American citizens, and the demand of full reparation for wrongs done them. The purpose of the President was declared to be to act concurrently with the other powers to reestablish communica- tion with Peking, to rescue the Americans there, to protect Americans and their property everywhere in Qiina, and to pre- vent the further spread of disorder in the Empire. It declared further that it was the policy of the Government of the United States to seek a solution for bringing about permanent safety and peace to China, preserve Chinese territorial and adminis- trative entity, to protect all rights guaranteed to friendly powers, and to safeguard for the world the principle of equal and im- partial trade with all parts of the Chinese Empire. The tone of the note was so calm, frank and reassuring that it met with the most sympathetic and hearty reception, and it aided greatly in encouraging and promoting the expedition which successfully undertook the rescue of the besieged legations and the early restoration of order and peace in China. It was a timely anticipation of a critical state of affairs, fraught with momentous consequences politically and commercially, and it served to reenforce respect for the "open-door" policy and insure its continuance. The negotiations that followed, resulting in the protocol be- tween China and the allies which was signed September 7, 1901, have also served to heighten the respect of the nations of the world for the straightforward, frank policy of the Government of the United States. In those negotiations the demands made by the powers on China for punishment of those guilty of instigating or participat- ing in the antiforeign massecres were drastic and humiliating in the extreme, but by the skillful endeavors of our commissioners a degree of leniency was secured which, while insisting upon adequate punishment, yet saved in a measure the self-respect of the Chinese Government by providing that the punishment should be inflicted by that Government itself, and not by the allies. Similar fair and reasonable consideration for China was in- sisted upon by our representatives in providing the means to prevent the recurrence of such troubles, the policy being to favor a stable and responsible government in China, thereby securing protection for our citizens and our interests under existing treaties. OPPOSITION - TO EXORBITANT INDEMNITY. The firm stand taken by our Government against the ex- orbitant demand made by the allies by way of indemnity served to very considerably reduce the amount originally demanded, thus giving to the Chinese and to the world an example of inter- ested and unselfish diplomacy which was almost startling. This considerate policy with regard to the indemnity has been perse- vered in, for within a year the United States Government has generously insisted, in direct opposition to all the other powers, that the silver tael, in which the indemnity was to be paid and which had fallen very much in value since the protocol was signed, should be accepted at its market value on the date of the signing of the protocol. This friendly spirit manifested for China is not without its effect upon her, and has tended greatly to strengthen the ties which bind the two nations. Early in 1902 our Government received information of the terms of a proposed agreement between China and Russia with regard to Manchuria. By it exclusive rights and privileges were to be given Russia in that province, which were in direct con- flict with our treaty rights and tended to impair tha sovereign rights of China in that part of her dominion. A prompt and vigorous protest was made by our Government to both parties to the agreement, because of its effect upon Ameri- OUR EASTERN DIPLOMACY. • 327 can interests and those of the whole world and because of its conflict with assurances given with regard to the "open door." This protest was followed by a considerable modification of the terms of the said agreement in favor of other nations, and called forth from Russia a renewal of her assurances that she would maintain the principle of the "open door." The recent commercial treaty negotiated by our Government with China, signed at Shanghai October 8, 1903, has further strengthened and reenforced the "open-door" policy by removing many annoying restrictions upon foreign trade, and simplifying the methods of intercourse with the Government of China, but the most important advantage gained by that convention was the opening of the two cities of Mukden and Antung in Man- churia as places of "international residence and trade." These cities, while not seaports, are important trade centers, and have strategic value commercially in that province. Events of diplo- matic importance have followed one another In rapid succession in the Orient NEUTRALITY OF CHINA IN THE PRESENT WAR. About the 1st of February a clash between Russia and Japan seemed inevitable. The geographic situation of those two powers made it evident that the area of hostilities would embrace to a greater or less extent the Empire of China, and that China herself was likely to become involved in the conflict, the conse- quences of which might seriously impair the integrity of that Empire and the benefits which the "open-door" policy seemed to assure to the United States and the world. Quick to perceive and prompt to act in such a situation, Sec- retary Hay, after some preliminary negotiations, sent the fol- lowing note, February 10, to the governments of Russia, Japan, and China, and a copy of it to other powers requesting similar representations to Russia and Japan: "You will express to the minister of foreign affairs the earn- est desire of the Government of the United States that in the course of the military operations which have begun between Russia and Japan the neutrality of China, and in all practicable ways her administrative entity, shall be respected .by both parties, and that the area of hostilities shall be localized and limited as much as possible, so that undue excitement and disturbance of the Chinese people may be prevented and the least possible loss to the commerce and peaceful intercourse of the world may be occa- sioned." The Japanese Government promptly responded on February 13, saying: "The Imperial Government, sharing with the Government of the United States in the fullest measure the desire to avoid, as far as possible, any disturbance of the orderly condition of affairs now prevailing in China, are prepared to respect the neutrality and administrative entity of China outside the regions occupied by Russia, as long as Russia, making a similar engagement, fulfills in good faith the terms and conditions of such engagements." On the 19th of February Russia replied as follows : "The Imperial Government shares completely the desire to in- spire tranquillity of China; is ready to adhere to an understanding with other powers for the purpose of safeguarding the neutrality of that Empire on the following conditions: "Firstly — China must herself strictly observe all the clauses of neutrality. "Secondly — The Japanese Government must loyally observe the engagements entered into with the powers, as well as the prin- ciples generally recognized by the law of nations. "Thirdly — That it is well understood that neutralization in no case can be extended to Manchuria, the territory of which, by the force of events, will serve as the field of military operations." On the same day the governments of Russia, Japan, and China were notified that the answers were "viewed as responsive to the proposal made by the United States as well as by the other powers," and that the other governments would be so in- formed, their adherence to the principles having been duly notified to the Government of the United States. This action gives China assurances of our continued friendly Interest and our moral support in her effort to maintain her neutrality and peaceful conditions in her dominions. 328 urn i astkun diplomacy. A CONSISTENT, BROAD, AND EFFECTIVE POLICY. In this cursory review of the diplomacy of our Government during the past four or live eventful years of our history it is plainly to be seen that a consistent, broad, and effective policy of equality of opportunity in commerce and navigation in China has been pursued on lines in complete harmony with our well- known precedents and traditions. Our presence in the Philip- pines has necessitated our taking ,an active and prominent part in Asiatic politics by assisting in the maintenance of the balance of power in Asia and by our insistence upon the integrity of China, yet this has been done without sacrificing in any degree our general policy of "no entangling alliances." The elements that have entered into this policy are notably simplicity, directness, and openness. It can be safely asserted that the success which has attended our diplomacy in the Far East — and, indeed, always — is the result of the skillful use of these elements in all our international relations. As Mr. Hay has well said, "We have sought, successfully, to induce the; great powers to unite in a recognition of the general principle of equality of commercial access and opportunity in the markets of the Orient," and through all the correspondence on the "open door" run these or similar plain, frank words,* "to insure to the whole world full and fair intercourse, with China on equal foot- ing." Nothing could be more simple or more direct, and every detail of the negotiations has been given extremely prompt and timely publication. The maintenance, and if possible the extension, of the "open- door" policy means much to us as a nation and to the whole world. To our nation it means an opportunity to secure enlarg- ing markets for the products of our growing industries on terms of equality with other nations; to our citizens residing in or having interests in China it means increased safety to life and property; to China it means the establishment of a stable and responsible government and its territorial integrity and com- plete sovereignty; and to all the world it means equality of treat- ment for its commerce with a country capable of great expansion in its purchasing power, and the removal of sources of interna- tional misunderstandings, all of which make for the permanent peace and prosperity of the nations of the earth. Not open mints for the unlimited coinage of the silver of the world, but open mills for the full and unrestricted labor of the American workingmen. — Maj. McKinley's letter of acceptance. That higher wage level aimed at by the fathers of the Republic, the policy of protection, which they inaugurated, secured, and still maintain. — Hon. George H. Ely, of Ohio, in the American Eco- nomist. Our opponents ask the people to trust their present promises in consideration of the fact that they intend to treat their past prom- ises as null and void. — President Roosevelt's speech accepting 1904 nomination. No amount of intelligence and no amount of energy will save a nation wbich is not honest, and no government can ever be a permanent success if administered in accordance with base ideals. — Theodore Roosevelt in "American Ideals." In this age of frequent interchange and mutual dependence, we can not shirk our international responsibilities If we -would; they must be met with courage and wisdom, and we must follow duty even If desire opposes. — President McKinley at Omaha, Oct. 12, 1898. The most casual observer must have perceived the rapid im- provement In the commercial interests of the country which fol- lowed the enactment of the Dingley law, an improvement which has steadily increased in degree notwithstanding the adverse In- fluence of actual war.-— Hon. C. W. Fairbanks, In U. S. Senate, June X 1898, \ THINGS THE REPUBLICAN PARTY STANDS FOR. 329 SOME OF THE THINGS FOR WHICH THE REPUBLICAN PARTY STANDS. Encouragement of Manufactures. Under the protective system inaugurated by the Republican party in 1861, manufacturing in the United States has grown from less than 2 billion dollars in value in I860 to over 13 billions in 1900. In, the entire 70 years from the establishment of the present form of government until 1860, in which period Demo- cratic control and low tariffs were almost continuous, the annual value of the manufacturing industries had never reached as much as 2 billion dollars. In a single decade, from 1860 to 1870, under protection, they doubled in value, and in the 40 years from 1860 to 1900 grew from less than 2 billions to 13 billions in annual value of product. These statements are from the official figures of the United States Census. General Prosperity. The prosperity of the country under protection as compared with its condition under Democratic control and free trade is il- lustrated by the fact that during all the 70 years of our govern- ment down to 1860, with almost continuous Democratic control and low tariff, the national wealth had only grown to 16 billions of dollars. In a single decade, from i860 to 1870, under pro- tection, it nearly doubled, the total in 1870 being 30 billions, and in the 40 years from 1860 to 1900 it grew from 16 billions to 94 billions of dollars. In the 40 years of almost continuous protection, the growth in wealth was 78 billions, or five times as much as the accumulations of the entire 70 years under practically continuous Democracy and free trade. In 1860 the per capita wealth was only $514; in 1900, $1,236. The development of the country and its industries during 70 years of almost continuous Democracy and low tariff had given to the people of the United States an aver- age wealth of but $514, while the developments under 40 years of protection brought a per capita to the vastly increased population of $1,236. Money. The money of the country, good in every part of the world and everywhere recognized as the best currency system of the world, amounts to over 2% billion dollars, having grown from \y>2 billions to 2y 2 billions since the Democratic party told us in 1896 that we could not have a proper increase of money without the free and unlimited coinage of silver. Since that date more than one billion dollars have been added to the money in circu- lation in the United States. (The figures for July 1, 1896, were $1,506,434,966, and for April 1, 1904, $2,516,639,223.) In I860 when the Republican party assumed control the total money in circulation was but 435 million dollars, and that of a very un- satisfactory character. By 1880 it had grown to 973 millions, or more than doubled, and today it is practically six times as much as when the Republican party took control, and every dollar is good as gold and a^epted throughout the entire world, while that of 1860 could not safely be" accepted at any consider- able distance from its bank of issue. In 1860 the money per capita was $13.85; by 1892, when the Democratic party resumed control of the executive and legislative branches of the Govern- ment, it had grown to $24.56; under that Democratic manage- ment it fell to $21.41 in 1896, and under Republican control since 1897 has grown to $30.87. The banking system of the United States, which has grown up under Republican rule in conjunction with its great currency sys- tem, is recognized as the best and safest in the world, and under that system, a. part of which is subject to direct government con trol and all to certain supervision by State or National govern- ments, the deposits in all classes of banks have grown from 2 330 THINGS THE REPUBLICAN PARTY 81ANDS FOR. billion dollars in 1S75, the earliest date for which complete figures arc available, to over 9 1 /- billions in 1903, and doubtless fully 10 billions of dollars at the present time. Labor. Under almost continuous Democracy and low tariff up to I860, the manufacturing industries of the United States employed less than 1 % million people and paid to them but 379 million dollars in wages and salaries ; in 1900, under protection, the number employed was 5% millions, and the sum paid to them in wages and salaries 2,735 millions, or more than 7% times as much as in 18G0. With the prosperity that came to that branch of labor the earnings of the farmers were enormously increased and the value of their property multiplied. In 1800, after 70 years of almost continuous Democracy and low tariff, the farms of the country were valued at less than 8 billions of dollars. In 1900 they were valued at over 20 billions of dollars, an addition to the wealth of the farmer of the enormous sum of 12 ^ billions of dol- lars, while the annual value of the farm products, which in 1860 was but about one billion dollars, was in 1900 3% billions. The total value of animals on farms, which in the 70 years up to 1860 had only reached one billion dollars, was in 1903 over three billions of dollars. These are official figures from the census, ex- cept those of 1903, which are from the official reports of the De- partment of Agriculture. Up to 1860 the wool production of the United States, under Democratic free trade, amounted to only 60 million pounds production annually; in 1902 it amounted to 316 millions, or more than 5 times as much as in 1860. Wages. Under the Republican system of protection in the United States wages have enormously increased, and to-day greatly exceed those paid in any otLar country. An official publication of the British Government, recently issued, showed that the rates of wages paid in skilled trades in the great cities of the United States were 79 per cent, higher than in the great cities of the United King- dom, and in other cities and towns, 93 per cent, higher in the United States than in the same class of towns and cities in the United Kingdom. The unanimous statement of the Moseley In- dustrial Commission, made up of representatives of the English trade unions visiting the United States in 1902, was that the cost of living aside from clothing and rent was no greater in the United States than in England, and that under the much higher wages paid in this country, workingmen could doubtless accumulate much riore here than in England. The relative prosperity of the working classes in the United States and the United Kingdom is illustrated by the fact that the deposits in savings banks in the State of New York alone, with 7 millions of population, is more than in the entire United Kingdom, with its 42 millions of people. The deposits in savings banks in the United Kingdom, according to the latest official re- ports, are 959 million dollars, and in the State of New York, according to the official report of the Comptroller of the Cur- rency, 1,112 millions. Home Market. • The protective system of the Republican party is especially intended to develop the home market, and that it has done so is shown by the fact that the value of the home market of the United States to-day is estimated by the Chief of the Bureau of Statistics as equal to the entire international commerce of the world. Up to 1860, according to the same authority, the home market amounted to but about 4 billions of dollars annually, while to-day it is 22 billions, or more than five times as much. Under Republican policy there has been built up for the American farmer and manufacturer, or producer of whatever class, a market at his very doors equal to the entire international commerce of the world, and four-fifths of this has been created under the Re- publican protective-tariff policy. THINGS THE REPUBLICAN PARTY STANDS FOB. 33l Reciprocity. The Republican form of reciprocity offers' special trade rela- tions to countries producing articles which we require in excess of our own domestic products and which will in exchange give special advantages to the products of our farms and factories. Democratic so-called reciprocity proposes mutual reductions of duties with countries which produce like articles, and is, therefore, free trade in competing articles, and sub- jects our producers to competition with foreign countries. Republican reciprocity is that outlined by President Mc- Kinley's last utterance on this subject, which was that it should be of a kind which "will not interrupt home pro- duction." "We should take from our customers," he said, "such of their products as we can use without harm to our industries and labor," and by "such sensible trade arrangements which will not interrupt our home production we shall extend the outlets for our increasing surplus." Expansion. The additions to our territorial possessions since 1897 have already proved of great advantage to our commerce, and promise to be of even greater importance in furnishing to the United States that great supply of tropical products which it constantly imports for use in manufacturing and food supplies which we do not produce at home, and in building up in them a market for the products of our farms and factories. The commerce of the United States with Porto Rico, Hawaii, and the Philippine Islands has grown from 27 million dollars in 1897, the year be- fore their annexation, to 75 millions in 1903, and is steadily and rapidly increasing. The United States imports about 400 mil- lion dollars' worth of tropical and subtropical products annually — more than a million dollars a day for every day in the year — and in buying this class of merchandise from producers on our own territory is developing there such prosperity that they will take in exchange the products of our farms and factories to the full extent of that which we purchase from them. Trade -with Asia and Oceania. Simultaneous with and largely resulting from our acquisi- tions in the Pacific has come a great increase in our trade with Asia and Oceania, toward which all commercial countries are now looking with longing eyes. The sales of the United States to Asia and Oceania grew from 27 million dollars in 1893 to over 100 millions in 1903, including the shipments to the Hawaiian Islands, and with our control of the Philippine Islands as a distributing point for our merchandise, promises to continue to expand most rapidly. The semicircle of Oriental and Pacific countries, of which Manila forms the center, has half the popu- lation of the earth and imports annually more than 1,200 million dollars' worth of merchandise, an average of 100 millions per month, or nearly as much as our total exports of domestic merchandise. A very large share of this importation of the Orient is of the class of goods which the United States produces and desires to sell — products of the farm and factory — and it is because of this great demand, the increased standing which the United States has gained in the Orient, and the popularity which American products are now making for themselves in this section of the globe, that our trade with the Orient is show- ing this rapid growth. Panama Canal. The developments of the past few months, under the vigorous administration of President Roosevelt, have given assurance that the dream of centuries — a ship canal to connect the Atlantic and Pacific at the Isthmus of Panama — is to be made a realization by the Government of the United States under the direction of the Republican party. That canal will shorten the route from New York to the great commercial cities of Japan and China, the center of this great Orient trade, 2,000 miles, and make the United States even more surely the chief factor in the commerce of the Orient. 332 THINGS THK KHMKI l( \\ I'AKTV STANDS lOK. Merchant Marine. That last step fn behalf of American labor and American commerce, the development of the merchant marine of the United States, hasi been delayed by reason of the attention required l>.\ our capitalists in the development of our railroad and other in- ternal communications, and the further fact that European coun- tries have meantime appropriated large sums of money to the upbuilding of their merchant marine service. During the last half century — practically during the time in which the Republican party has been in control of the Government — 200,000 miles of rail- way, two-fifths of the railroad lines of the world, have been built in the United States at a cost of over 12 billions of dollars, a sum practically equal to all the- money of the world at the present time. Meantime the European governments have expended 250 million dollars in aid of their merchant marine and are now ex- pending at the rate of about 20^ million dollars annually. REPUBLICAN LEGISLATION. The following are some of the acts of legislation and adminis- tration by the Republican party: 1. The homestead law, passed by a Republican 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 upon malt and spirituous liquors, tobacco, and cigars. 4. The thirteenth amendment to the Constitution, which abol- ished slavery. 5. The fourteenth amendment, which created citizenship of the United States as distinguished from citizenship of the several States, and provided that no state should abridge the privileges or immunities of citizens of the United States. 6. The fifteenth amendment, which established equality of suffrage. 7. The civil rights act, which extended to all persons the equal protection of the laws. 8. All existing laws for the payment of pensions to veterans of the ciyjU war and their surviving relatives. 9. The liberal legislation respecting mineral lands, which built up the mining industry, added enormously to the wealth of the country in the precious and semiprecious 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 establishment of the railway mail service, free delivery, and other improvements that make the Post-Office establishment of the United States the most efficient agency of that character that can be found on the globe. 12. The Life-Saving Service. 13. The artificial propagation and distribution of fish. 14. The distribution of seeds, and other measures of vast im- portance in the promotion of agriculture. 15. The endowment of public schools, agricultural colleges, etc., by grants of land from the public domain. 16. The administrative customs act, which insures justice ajjd 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 relieve 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 principle of reciprocity, by which we reduce the duties on certain imports from countries that offer corresponding ad- vantages to our exports and thus extend our foreign markets. 20. The admission of the States of Kansas, Nebraska, Nevada. Colorado, North and South Dakota, Washington. Montana Idaho and Wyoming. THINGS THE REPUBLICAN PARTY STANDS FOR. 388 21. The antitrust 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.) 22. The national bankruptcy acts of 1867 and 1898, which re- lieved many thousands of unfortunate men from their burdens of debt and restored them to commercial or industrial activity. 23. 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. 24. Every schedule of duties on imports adopted Within the past fifty years in which the policy of profection to American labor has been distinctly recognized and efficiently applied has been the product of a Republican Congress. 25. On logical lines with the policy of protection, the acquisi- tion of the Philippines. That is to say, having built up our in- dustries to a point where their output was in excess 1 of our con- sumption, we secured a grand depot and distributing point to command in great part the markets of the 600,000,000 inhabitants of Asia. LABOR LAWS OF THE UNITED STATES. Who Enacted Them? The great revolution, by which labor was exalted and the coun- try freed from the curse of slavery, was accomplished by the Re- publican party against the fiercest opposition possible by the com- bined forces of the Democrats and their allies. The Coolie Trade Prohibited. This law was passed February 19, 1802 ; amended February 9, 1869; and further amended March 3, 1875. President Grant, in his message of December 7, 1874, laid before Congress a recom- mendation for the enforcement of the law. The legislation on these several acts was accomplished by the Republicans in 1862, in the Thirty-seventh Congress, and in 1869, in the Fortieth Congress. Peonage Abolished. This act was passed in the Thirty-ninth Congress, when both houses were Republican by a large majority, March 2, 1867. Inspection of Steam Vessels. Passed during the Fortieth Congress, when the Republicans were in power in both houses. Protection of Seamen. Passed during the Forty-second Congress, when both houses were under control of the Republicans. It was amended during the Forty-third Congress, when the Republicans were in control of both houses. Involuntary Servitude of Foreigners Abrogated. Passed during the Forty-third Congress, when both houses were under the control of the Republicans. Incorporation of National Trades Unions. - Passed the Senate June 9, 1886, without division. Passed the House June 11, 1886, without division. Payment of Per Diem Employees for Holidays. Passed without division in the Forty-ninth Congress, second session. Labor of United States Convicts — Contract System Prohibited. Passed the House March 9, 1886. Passed the Senate February 28, 1887. All the votes against the bill were Democratic. Boards of Arbitration. Passed the House on April 3, 1886, with thirty votes against the bill, all being Democratic. Hours of Labor, Letter Carriers. Law limiting hours of labor of letter carriers to eight a day. Passed in the Senate without division. Department of Labor. Passed the House April 19, 1888. Passed the Senate May 23, 1888. All votes cast against the bill were Democratic. Trusts and Monopolies. The act to protect trade and commerce against unlawful re- straints and monopolies (Sherman anti-trust law) was passed July 2, 1890, by the Fifty-first Congress, of which both the Benate and House were Republican, 334 THE DEPARTMENT OF STATE. WO RK OF THE DEPARTMENT OF STATE, 1897-1904. Tlio work of the Department of State has increased perhaps fivefold within the last six years, for the reason that our com- mercial and political interests have steadily grown in magnitude and importance. We have many new and significant points of contact with the world to-day that were unknown and unim- portant a few years ago. World events are moving rapidly and our responsibilities abroad keep pace with them. Consideration of- the series of important happenings in the Orient, beginning with the Boxer trouble, and the settlement of the Panama Canal question, the growth in the authority and recognition of the Monroe Doctrine since Mr. Hay became Secre- tary of State, the expansion of foreign markets for American goods, the increase of over-sea commercial opportunities, the efficient support and emphatic insistence upon the application of the principle of international arbitration in a practical way to real disputes, will show in what directions have been our greatest activities and achievements in the world of diplomacy, and what they are likely to be in the immediate future. It may be said without boasting that no period of our history has been richer in diplomatic triumphs of a high and wide-sweep- ing character than the few years now under discussion. Much that has been accomplished has been done so quietly and unob- trusively that the world at large knows little about it. Settlement of Large Claims of American Citizens Against Foreign Governments. During the administrations of Presidents McKinley and Roose- velt there was collected and settled through the Department of State and its representatives abroad claims of American citizens against foreign governments amounting in the aggregate to the enormous sum of $26,690,850.08. This record illustrates and marks one of the greatest practical achievements of our diplo- macy. 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 rich gain in inter- national good feeling due to the settlement of the many dis- putes of long standing growing out of these claims. The Consular Service. The achievements of the consular service have been no less striking. Owing to the high state of efficiency to which it has been brought during the last few years, and in spite of the un- fortunate system under which our consular officers work, it is now saving to the Government upward of six millions of dollars annually through the successful efforts of its officers in detecting and preventing undervaluations. Many Important Treaties Made. The record of the Department of State in the matter of treaty making during the last eight years is a noteworthy one. The administration of President Roosevelt alone has upward of thirty treaties and international agreements to its credit, and since the first inauguration of President McKinley more than ninety treaties and agreements with foreign powers have been negotiated and proclaimed. They range in subject from the set- tlement of claims of private citizens to the control and construc- tion of the Panama Canal. Among the more important of these compacts are those pro- viding for the extradition of fugitives from justice, the list in- cluding conventions with Belgium, Bolivia, Brazil. Chile, Den- mark, Great Britain (a supplemental treaty extending the cata- logue of extraditable crimes), Guatemala, Mexico (with which power also a supplemental agreement was concluded adding THE DEPARTMENT OF STATE. * 835 bi :1k ry to the list of extradictable crimes), Peru, Servia, Switzer- hind, and the Netherlands (the last mentioned not yet pro- claimed). This series of treaties, together with the extradition conventions preceding it, and with pending 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 and peace treaty with Spain, of August and December, 1898, 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 af- forded native subjects and citizens; a temporary arrangement of the disputed Alaskan boundary question in October, 1899; the appointment of a joint commission to consider for settlement ques-. tions at issue between the United States and Great Britain respecting Canada; the adhesion of the United States to the ad- ditional articles to the Red Cross convention; the articles con- cerning naval warfare— a great humanitarian gain; the adhesion of this Government to the International Convention of Brussels of 1899, for the regulation of the importation of spirituous liquors into Africa; the canal protocols of December 1, 1900, with Costa Rica and Nicaragua, providing a means of agreement for the construction and control of an interoceanic canal by the Nicaragua route. P^rom 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 pro- jectiles and explosives from balloons, and other new nfethods of a similar nature. During the , past seven years numerous claims of private citizens have been settled by special negotiations between our own Government and those against which the claim was pre- ferred, the foreign governments concerned being Guatemala, Haiti, Mexico, Nicaragua, Peru, Salvador, Santo Domingo, and Venezuela, while by the treaty of March 24, 1897, the Chilean Claims Conven- tion 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. Treaties Negotiated During the Administration of 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 friendship with Spain; the commercial treaty with China, and extradition treaties with Belgium, Denmark, Guatemala, Mexico (supplementary), and Servia. The supplementary extradition treaty with Mexico is specially noteworthy as providing for the extradition of bribe givers and bribe takers, the 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. Immediate advantage was taken of this fact and the Hay-Herran canal treaty was con- cluded January 22, 1903, but subsequently rejected by Colombia. The Panama treaty (November 18, 1903) followed, and was proclaimed February 26, 1904, assuring the construction of a canal. The Alaskan boundary convention (January 24, 1903) provided a tribunal by which the last important question at issue be- tween Great Britain and the United States was satisfactorily 386 • THE DEI'AUTMKIST- OF STATE. 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 settlement of an important question long open, but also as submitting 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, and two others— one respecting the status of the Isle of Pines, and the other defining our relations with Cuba — are pending. The commercial treaty with China contains several very im- portant provisions, besides a satisfactory tariff schedule. The Likin tax (the collection of a tax on goods in transit within the Empire) is abolished; revision of Chinese mining regulations is secured; protection in the use of trade-marks and ownership of patents is stipulated; a uniform national Chinese coinage is projected; but more important than all, two new ports are opened to foreign trade in China, namely, Mukden and Antung, in ^Man- churia, with the result not only of strengthening the American policy of the open door, but also that of maintaining Chinese jurisdiction in the territory^ and tending to the integrity of China. Three agreements with 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- ment; while another, earlier (August to November, 1901), by exchange of notes and a joint declaration, facilitates the exchange of letters rogatory between Porto Rico, the Philippine Islands, and Spain. Other treaties are, a consular convention with Greece (Novem- ber, 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 Dominican Republic, Salvador, and Brazil ; naturalization with Haiti ; import duties and light and harbor dues in Zanzibar. The five great achievements of the treaty making of the ad- ministration are the Hay-Pauncefote treaty, superseding the Clayton-Bulwer treaty; the Panama Canal treaty; the Alaskan boundary treaty ; the commercial treaty with China, and the treaty with Menelik providing for commercial relations with Abyssin a, thus opening to our producers new trade relations with ten million people. This latter is one of the most important of our recent commercial treaties. The commercial treaty with Cuba is of hardly less importance as an act of good faith, pledged by this Government as one of the principal results of the war with Spain. 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 incorpo- rated 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 interest 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 the sub- ject he asked Congress to authorize him to bring about an in- ternational conference for the consideration of this subject, and President Roosevelt has renewed the recommendation to Con- THE DEPARTMENT OF STATE. 337 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 about mainly through the efforts of the American dele- gates. President McKinley had the honor of sending to the Per- | manent Arbitration Court established by that convention the first case ever submitted to it. A notable opportunity was presented to President Roosevelt 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 j Venezuela, a distinguished mark of confidence in his ability and impartiality. But he declined the honor and referred the war- ji 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 uot 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 may 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 view of 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 members from each country, feeling confident that our claim would be established by such a body. Against much opposition and pre- diction of failure such a tribunal was created, and its decision has happily confirmed the wisdom of the President's action, peacefully settled this irritating controversy, and restored good relations with our northern neighbors. It has proved one of the most notable diplomatic triumphs of our Government. The Consular Service. 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 citizens and their interests abroad. Our consuls have displayed unusual ability in discharging these duties. American citizens arrested or subjected to annoyance in foreign countries have, with rare exceptions, found the American Consuls energetic and 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 Ameri- cans 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 exported fo the United States our consuls have shown wonderful skill and indus- try, and their work in the direction of preventing 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 in- creased receipts from customs about one million dollars a year since 1898, a total o£ six million dollars in six years. There are 330 consular officers who are carrying 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 338 THE DEPARTMENT OF STATE. * revenues of the United States by the active, intelligent and per- sistent 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 unattained. The consuls have rendered a great deal of varied and impor- tant 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 ap- prehension of deserters and stragglers from war vessels and colliers and are in constant communication with men-of-war in local waters, supplying them with much valuable information. VALUE IN WAR AND PEACE. During the war with Spain they rendered invaluable service to the Government of the United States. They formed a series of intelligent observers throughout the world and the information and reports gathered by them were often of the highest value and importance to those directing our military and naval operations. At the instance of the Secretary of Agriculture and in pursu- ance of the pure food law of March 3, 1903, the Department of State issued instructions to consuls requiring prompt reports of the shipment of food products to this country. The character of these reports and the -promptness of their transmission to the Bureau of Chemistry of the Department of Agriculture have been most gratifying and have to a great degree made possible an intel- ligent and successful enforcement of the law. In their work in behalf of our export trade consular officers have shown themselves very efficient. In the introduction to the review of the world's commerce for 1902, it was stated by the chief of the Bureau of Foreign Commerce of the Department of State that "whatever may be the defects of our consular service it is at least showing' 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 sub- jects of interest to the industrial 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 reference books in special courses of commercial instruction. * * * In addition to the published reports, the consuls of late, by means of correspondence conducted under the supervision of the Department of State, have supplied a great mass of information to trade bodies and business Arms, and in many cases have voluntarily exerted themselves in other ways to promote commercial expansion. Their efforts fre- quently 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 busi- ness, 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 reports. 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 information. Our business men have been warm in their praise of it. One firm wrote the department, "we 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 our 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. HELPFUL TO COMMERCE. Undoubtedly a large part of our commercial progress in recent years is due to the keen business instinct and activity of our con- sular officers in pointing the way to new markets, and to a great degree is due to them the credit for the enormous increase of our exports from $886,606,938 in 1896 to $1,420,141,679 in 1903,— over $537,000,000 in seven years. THE DEPARTMENT OF STATE. 339 The consular fees collected have increased steadily and for the year ended June 30, 1903, amounted to $1,190,634.42. There has also been a steady increase in the expenditures for the consular service, the expenditures amounting for the year ended June 30, 1903, to $1,21(5,759.54, but notwithstanding this increase there has been a marked decrease in the actual cost of the service to the Government, ranging from an excess of expenditures over receipts of $302,076.37 for the year ended June 30, 1898, down to the insig- nificant sum of $26,125.12 for the fiscal year ended June 30, 1903. Since 1901 the number of principal consular officers has been increased from 315 to 330 and the number of consular agencies decreased from 407 to 380. It is doubtful whether any country having a consular service comparable to that of the United States either in the number of its officers or in efficiency is able to main- tain it upon anything like so small a net expenditure. Our consulates are on the whole in excellent condition, both as regards the general character o£ 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 personnel and efficiency of the consular service. The consular corps, which suf- fered 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 efficiency during the last eight 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 the emulation of other countries. To-day it is regarded by the best authorities abroad as the most efficient organization of its kind in the world for increasing the sale of goods, for stimulating home industry and enterprise, and for in- forming exporters as to trade conditions in every important mar- ket of the globe. Throughout the recent consular reform movement 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 German authority on con- sular 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 "dive into the economic condition of their districts and ob- tain information the result of which is discernible in the steadily increasing exportations of their home country. * * * The United States consular officers give their Government better ser- » vice and better information than any on earth." The war with Spain was the most absolutely righteous foreign war in which any nation has engaged during the nineteenth cen- tury, and not the least of its many good features was the unity it i brought about between the sons of the men who wore the blue and of those who wore the gray. — Theodore Roosevelt in "The Strenu- ous Life." Whenever even a single schedule is considered some interests will appear to demand a change in almost every schedule in the law, and when it comes to upsetting the schedules generally the effect upon the business interests of the country would be ruinous. — President Roosevelt at Minneapolis, April 4, 1903. The millions we formerly sent to aliens in alien lands to pay them for making tin plate for us we now pay to our own country- men in the United States; we have the tin plate and we have the money expended for tin plate besides. — Hon. Wm. S. Greene, in Congress, April 28, 1004. The 3,000,000 of men who went out of employment with the re- vision of the tariff by the Democratic party found employment in the enactment of the Dingley law by the Republican party, and a million and a half have been added to those who have employment in the industries of the country. — Hon. P. P, Campbell, in Congress. April 1, 1004, 340 THi: FBBASUBl i>i l'AK l M i.M . THE TREASURY DEPARTMENT AND THE NATIONAL FINANCES. Prosperity, induced by the enactment of the Dlngley tariff law and the gold standard act of March 14, 1900, has been conserved by the Treasury Department throughout the administration of President Roosevelt. The achievements of the administration so far as they relate to the finances of the country have not been spectacular, but have had much to do with the continuation of business health and industrial vigor resulting from the election of President McKinley in 1896. The adoption of the Dingley tariff and its consistent enforce- ment have secured to the Government sufficient revenues for the undertaking of great public improvements, in addition to provid- ing for the running expenses of a Government which has suddenly outgrown the needs and opportunities of an isolated nation. Payment for the Panama Canal. Perhaps the greatest fiscal undertaking during the administra- tion of President Roosevelt was the payment of fifty millions of dollars ($50,000,000) by which the American people secured abso- lute possession of the Panama Canal and the zone of territory through which it is to be constructed. This feat of fiscal engineer- ing was so carefully planned and executed by the Secretary of the Treasury that the'payment of this enormous sum practically at one time produced not even the slightest disturbance in the industrial, business, and financial circles of the country. Part of this sum was withdrawn, by orders of the Secretary of the Treas- ury, from the channels of trade, and practically simultaneously restored thereto, and the whole tremendous transaction was ac- complished without attracting more than passing notice. Aside from marking the actual beginning of a canal between the At- lantic and Pacific oceans — a dream of American statesmanship for more than a century — the successful execution of this large fiscal undertaking is an unmatchable object lesson of the financial resources and industrial health enjoyed by the United States under eight years of Republican rule. Reduction of Interest Rate. One of the most important evidences of good Republican house- keeping is the great reduction in the rate of interest paid on the public debt, and also the contraction of the debt itself. July 1, 1896, the average rate of interest paid by the Government on its interest-bearing debt was 4.058 per cent. At the close of the fiscal year 1904, the average rate of interest is 2.7 per cent. This needs no explanation, and is the best evidence of thrifty and economical administration. On November 1, 1899, after the Spanish war had been fought with such signal success, the interest-bearing debt of this country amounted to $1,046,049,020. That was high-water mark, and even at that time the Government was paying an average interest rate of 3.857 per cent. Since then the net reduction in the principal to date has been $150,891,580. Much of the decreased interest rate has been due to judicious refunding operations. This policy has been maintained consistently throughout President Roosevelt's Ad- ministration. Since the enactment of the gold-standard law of March 14, 1900, which was a Republican measure, passed by Re- publican votes, the Secretary of the Treasury has been enabled to gradually transform the interest-bearing securities of the United States from 4 and 5 per cent securities to those bearing interest at the rate of 2 per cent. Up to date the transactions along these lines are rather startling in their magnitude. The amount of bonds refunded since the operations began is $542,909,950. The interest saved exceeded all expenses connected with the new issue by $14,245,851, thus giving the government a net profit of that amount on the transaction. THE TREASURY DEPARTMENT. 341 Increase of Money in Circulation. Under wise Republican management of the country's finances, the feeling of security, and wide-spread prosperity incident there- to, the circulation per capita has enormously increased during each year since the inauguration of President McKinley. On May 1, 1904, the circulation per capita was the highest in the history of the United States, being $31.02 for each man, woman and child in the nation. July 1, 1897, the per capita circulation was only $22.87. It has increased steadily throughout the suc- [ ceeding years of Republican management, as shown by the fol- lowing table : July 1, 1896 $21.41 July 1, 1897 22.87 July 1, 1998 25.15 July 1, 1899 25.56 July 1, 1900 26.94 July 1, 1901 ..., 27.98 July 1, 1902 28.43 July 1, 1903 29.42 May 1, 1904 31.02 Compared with the tremendous volume of business and great opportunities for carelessness and fraud, the loss to the Govern- ment from occasional lapses on the part of public officials, al- j ways widely advertised, is infinitesimal. During the fiscal year ended June 30, 1903, the Treasury Department received and dis- bursed more than nine thousand million dollars without error | or loss of a single cent. The total receipts on all accounts were $4,615,509,655; the total disbursements, $4,317,625,514; in round numbers an aggregate of nine billions — an average of thirty mil- lions a day. These enormous financial transactions of course include the collection of revenue and the disbursements on ac- count of public expenditure, the operations connected with the I currency and public debt of the United States, the operation of the mints, the purchase and sale of bullion by the assay offices, the ! issue and redemption of national-bank notes, the issue, exchange, i redemption and refunding of the bonded debt, the manufacture and issue of various kinds of paper money, the exchange of money of one denomination or character for another, the handling of postal funds, including money-order funds, on account of the Post-Office Department, and the necessary transfers of funds from one depositary to another. Not including the postal service the total net receipts from every source for the fiscal year 1903 were $560,396,674.40. The total net disbursements on accounts for the same period were $506,099,007.04. The receipts and disbursements aggregate in round numbers a billion dollars — approximately three million dollars a day. The receipts and disbursements for the fiscal year ending June 30, 1904, aggregate in excess of one billion dollars, the re- ceipts from all sources amounting, in round numbers, to $540,- 000,000, and the disbursements, in round numbers, to $580,000,000. This shows an apparent deficit of $40,000,000. There has, how- ever, been no bond issue, and out of the petty cash drawer of the United States has been purchased a Panama Canal for $50,- 000,000, and $4,600,000 has been advanced to the Louisiana Pur- chase Exposition to be reimbursed to the Government, These two extraordinary items have simply been paid from a surplus due to the thrift and good financial management of the party which has been in power since 1897. Under the immediately preceding Demo- cratic administration, the purchase of the canal and the encourage- ment of an exposition of world-wide scope could only have been compassed through a bond issue, for during that period in the his- tory of the country bonds were issued to pay the ordinary running expenses of the Government. Payments for the New Navy. Eliminating the two extraordinary items paid, as has been stated, by checks on the nation's surplus, the apparent deficit melts away, and in place thereof there is a surplus of approxi- mately fifteen millions — this, too, in spite of the fact that during the fiscal year not less than $35,000,000 has been invested in a 342 THE TREASURY DEPARTMENT. greater navy for the protection of American commerce and the preservation of the prestige of the nation. Under Republican rule in the last eight years $104,000,000 has been invested in this new and greater navy. At the time of the Inauguration of William McKinley the total value of the new naval establishment, including vessels complete, vessels building, and the inventory value of the navy yards amounted to only $162,000,000. New Public Buildings. Since the inauguration of the Republican Administration in 1897, fifty millions of dollars ($50,000,000) in round numbers has been invested in public buildings and sites outside of the city of Washington. .This generous, public improvement has been nation-wide and evenly distributed according to the needs and opportunities of the various sections of the country. The authorizations to purchase sites and construct public build- ings since 1897 aggregate in round numbers 250. At the close of the fiscal year ended June 30, 1897, the actual investment in public buildings outside of the city of Washington amounted to $244,- 235,432.64 At the close of business, June 30, 1903, the actual investment in the same class of improvements amounted to $283,- 235,747.91. During the fiscal year ended June 30, 1904, some- thing over ten million dollars has been added to that sum, mak- ing the total investment at the close of this fiscal year approxi- mately $294,000,000, as against $244,000,000 when the Republican administration took charge of the affairs of government— this, too, in spite of the fact that for the first two years of Republican rule building operations were necessarily impeded by the condi- tion in which the Democratic party left the Treasury. During the latter part of President Cleveland's term all building opera- tions had ceased, and when the Republican party assumed control it contented itself with preserving the public buildings then in existence until such time as a repleted Treasury made possible an intelligent and farsighted improvement in public buildings throughout the country. It was, therefore, not until 1899 that the actual investment of the fifty millions in good real estate and substantial buildings was begun by the Republican party. Stupendous fiscal operations like those above mentioned have been carried on for years by the officials of the Treasury Depart- ment in the most perfect manner with records so accurate that balances taken at the end of years and months of actual opera- tions show the loss to the government of not one dollar of reve- nue and not one displaced security. On the death of the Assistant Treasurer at New York and the appointment of his successor, the sub-treasury in that city was thoroughly inventoried between March 23, 1903, and May 12, 1903. A force of twenty -five experts working constantly made the trans- fer from the old to the new administration of that office. The sub-treasury was charged with $296,911,256.62. To find whether that amount of money was actually on hand, it was necessary to count, piece by piece, $17,000,000 in gold certificates, weigh $200,- 000,000 in gold coin, and 65,000,000 standard silver dollars. The gold coin weighed 369 tons, tne silver coins 1,930 tons, subsidiary silver coins 38 tons, and minor coins 14 tons. In this whole amount, $25 in punched silver pieces was discovered, which sum was made good by those responsible for the errors. Short-weight coins to the amount of $20 were discovered and made good in like manner. A bag of silver quarters was found to be short one piece, which was made good, and in the minor coins 23 cents over were found. These were the only errors found in cash aggregating $297,000,000 in round numbers. Each sub-treasury in the United States is overhauled in this manner at least once a year, whether there is a transfer in the Administration or not. A force of experts appears at the sub- treasury without warning and takes full charge. Seals are put on all vaults and safes and the business of the sub-treasury is conducted under the supervision of the examiners until the entire office has been checked up. The sub-treasury at New York is the largest depositary of coin in the United! States government, but the same care that is exercised by the Government in overhauling its vaults and papers, personnel and method of business is ex- hibited at every other sub-treasury in the United States. THE TREASURY DEPARTMENT. 343 For the first time in nineteen years, due to the immense pres- sure of business and the necessity for working night and day, the Bureau of Engraving and Printing, in which all the paper money of the United States is manufactured, was recently checked up from cellar to garret. This inventory began February 21, and on that date the Bureau was charged with having in its possession 8,921,156 sheets of distinctive paper, from which all of the paper money of the country is made. For two days one hundred and thirty persons worked from dawn until darkness counting piece by piece and sheet by sheet, and at the end of the second day it was found that the Bureau had actually in its possession the exact number with which it was charged. When it is remem- bered that in this Bureau alone there are 3,000 employees, each one of whom has to do at some stage with the manufacture of this paper money, the accuracy and integrity of the system are all the more remarkable. In the nineteen years that elapsed be- tween the former count and the count described herein, more than 350,000,000 sheets of this distinctive paper— more than 2,000 tons — passed through the Bureau, and not a single sheet was lost or unaccounted for. Nor is the Bureau of Engraving and Printing exceptional for accuracy in the various offices of the Treasury Department. After a lapse of 37 months the Commissioner of Internal Revenue re- cently instituted a count of all revenue stamps in the Bureau un- der his control. During the period from January 7, 1901, to February 23, 1904, the books showed that the total number of stamps handled by his Bureau amounted to 0,236,311,764 ; that the value of the stamps on hand at the beginning of that period, added to those received during the period amounted to $955,067,567.64; that the office issued to collectors of Internal Revenue for sale stamps to the value of $866,521,359.78, and delivered for de- struction stamps to the value of $36,530,256.78, while the balance on hand February 23, 1904, of stamps amounted to $52,015,951.08. The actual count of the stamps on hand verified these figures to a cent. Not less interesting or more remarkable was the actual count of funds in the possession of the United States Treasurer during the past year. Full count had not been made since 1897. July 1, 1903, the contents of the reserve vault were counted. The books showed that the vault should contain currency to the value of $403,936,500. This exact amount was found to be inside the four walls of the strong box. January 19, 1902, the lower vaults in the office of the Treasurer, containing gold and silver coins, were counted. The Treasurer was charged with $15,- 785,000. After a day of careful counting that amount was found to be correct to a cent January 27, 1904, the national-bank notes in process or redemption in the National Bank Redemption Agency were counted. According to the books there should be notes in that Bureau to the amount of $15,294,063.71. Not a dollar was found missing. An Element of Elasticity in the Currency System. Though the demands for currency at crop-moving periods were never so tremendous as in the last two. or three years, the Treasury Department, by wise and prompt administrative meas- ures, prevented any sudden contraction of the circulation and a consequent check to prosperity. The Secretary of the Treasury for the first time since the organization of the national banks in 1863, utilized the best class of approved savings-bank investments as security for deposits of public moneys in national banks, on condition that the Government bonds thus released be used for the immediate issue of additional national-bank circulation. In this way the circulation was increased many millions. But for this original and decisive action on the part of the Secretary of the Treasury, a currency famine would have resulted. Following in its train would undoubtedly have come contraction in various lines of industrial activity and at least a partial paralysis of prosperity. This element of elasticity, first injected into the national-bank circulation in the fall of 1902, was again used in the fall of 1903,. with equally good results. To these wise meas- ures and to the remarkable and widely distributed growth of national banks throughout the country is due in large measure the 344 mi. n;i:.\snn in- i-akimkiNT. continued and well-sustained prosperous condition of this country initiated by the Republican victory of 1890. Extension of the National-Bank System. The gold standard ad of March 14, 1900, gave a great impetus to the extension of the national-bank system of this country. In operation over forty-one years, there has been, during that period, up to April 30, 1904, 7,240 associations organized, of which 5,313 are in active operation, 1,516 have been placed in voluntary liqui- dation, and 411, or only 5.6 per cent., placed in the hands of re- ceivers. Insolvent banks, the affairs of which have been liqui- dated, paid their creditors, on an average, 78.55 per cent, on their claims. Under authority conferred by the act of March 14, 1900 (which authorized the incorporation of banks with a minimum capital of $25,000), and subsequent to that date, national banking associa- tions have been organized to the number of 1,976, with aggregate capital of $114,591,500, the number and capital of asso- ciations organized in each geographical division being as follows : New England, 20 banks with capital of $4,000,000; Eastern States, 346, capital $28,524,000; Southern States, 488, capital $26,456,500; Middle Western States, 604, capital $33,681,000; Western States, 427, capital $13,770,000; Pacific States and Territories, 88, capital $7,535,000; Hawaii and Porto Rico, 3, capital $625,000. On March 14, 1900, there were in operation 3,617 associa- tions, with capital of $616,308,095, and outstanding circulation of $254,402,730. Between that date and April 30, 1904, there was a net increase in number of banks and capital of 1,696 and $158,- 141,220, respectively. During this period there was a net increase in the amount of national-bank. notes outstanding of $182,677,843, the outstanding issues amounting to $437,080,573 on April 30. From the foregoing, it will be observed that there has been a material increase in number, capital, and circulation of national banking associations as a result, primarily, of the legislation of March 14, 1900. On February 13, 1900, the date of reports to the Comptroller of the Currency- nearest to that of the passage of the currency act of that year, there were in active operation 3,604 national banks, with aggregate resources of $4,674,910,710, of which $2,- 481,579,942 was represented by loans and discounts. The amount of gold, silver, and lawful money held by the associations on that date was $476,544,315. The principal items of liabilities were as follows: Capital stock, $613,084,465; surplus and net undivided profits, $363,872,959 ; circulation outstanding, $204,912,544 ; and in- dividual deposits, $2,481,847,032. On March 28, 1904, the num- ber of associations reporting to the Comptroller of the Currency was 5,232; loans and discounts, $3,544,998,555; specie and other lawful money, $617,515,582; aggregate resources, $6,605,995,612. The paid in capital stock amounted to $765,974,752; surplus and profits, $574,532,691 ; circulation outstanding, $385,908,198, and in- dividual deposits, $3,254,470,856. Comparing the returns on the two dates, there is shown to have been an increase in number of reporting banks of 1,628, and in aggregate resources of $1,931,084,902. The capital was increased to the extent of $152,890,287; surplus and other profits, $210,- 659,732; circulation, $180,995,654, and individual deposits to the amount of $772,623,824. The percentages of increase are as fol- lows : Number of banks, 45 per cent. ; aggregate resources, 41 per cent. ; capital stock, nearly 25 per cent. ; individual deposits, 31 per cent. : circulation, approximately, 90 per cent. Classifying the returns by geographical divisions, it is shown that there has been an increase in the aggregate resources of the banks in every section of the country. In the New England States, by reason of liquidations and consolidations with other institutions, there were only 529 banks in operation on March 28, 1904, as against 565 on February 13, 1900. With this reduction in number of banks there is shown a reduction in capital stock of $18,485,000, but an increase in surplus and other undivided profits of $8,735,497. The increase in individual deposits was from $322,- 259,422 to $323,495,707, or $1,236,285. The banks in this section increased their circulation to the amount of $10,865,769. The number of banks in the Eastern States increased from 976 THE TBEASURY DEPARTMENT. 345 to 1,242 with increased assets to the amount of $818,321,183. The increase in loans and discounts is shown to have been $442,125,929, or from $1,067,365,098 to $1,509,491,027. Specie and other currency held by the banks increased from $268,812,664 to $342,976,434, or $74,163,770. The increase in capital stock was $76,894,620 ; surplus , and other profits, $115,181,829 ; circulating notes, $59,298,550. The t individual deposits increased in the sum of $231,423,116, or from i $1,106,036,612 to $1,337,459,728. In the Southern States the number of banks increased 420, or [from 545 to 965. The increase in loans and discounts was $144,- |469,806; specie and other currency, $9,462,749, and aggregate re- sources, $253,034,551. The aggregate resources of the banks in t this division in 1900 were $379,875,634, and in March, 1904, $632,- | 910,185. The increase in number of banks resulted in an increase of capital stock of $28,177,371, or from $64,067,960 to $92,245,331. Surplus and profits increased $23,578,802 ; circulation, $28,904,590, and individual deposits $129,924,413. The liabilities of the asso- ciations to depositors in 1900 were $207,682,432, and in 1904 $337,- 606,845, an increase of $129,924,413. National banking associations to the number of 1,566 were in operation in the Middle Western States on March 28, 1904, an in- crease since 1900 of 513, with an addition in capital stock of $42,863,412, the amount of capital on the earlier date being $159,- 948,100, and on the later $202,811,512. The surplus and other profits increased from $71,068,691 to $117,289,634, or $46,220,943. The banks in this section increased their circulation during the period in question from $49,589,110 to $103,620,140, or $54,031,030. The individual deposit liabilities increased $264,998,484, or from $635,799,976 to $900,798,460. The number of associations in the Western States in operation in 1904 was 738, an increase of 392 since 1900, with an increase also in capital stock of $14,613,656, or from $29,984,500 to $44,- 598,156. The aggregate resources of banks in this section increased from $213,980,433 to $351,304,708, or $137,324,275. Increase in loans and discounts was $69,344,026, and in specie and other cur- rency holdings $7,306,460. The surplus and other profits of the banks increased from $9,534,642 to $18,072,909, or $8,538,267. The banks in this section increased their circulation from $8,675,187 to $23,136,092, or $14,460,905. Individual deposits increased in the sum of $78,612,601, or from $135,331,545 to $213,944,146. ' The number of banks in the Pacific States and Territories re- i porting in 1904 was 189, an increase of 70 since 1900. The aggre- gate resources nearly doubled, amounting to $237,459,617 on the later date, and $122,353,994 on the earlier, the increase being $115,- 105,623. Loans and discounts standing at $52,641,665 in 1900, in- ■ creased to $113,617,579 in 1904, or $60,975,914, and the increase in specie and other money was from $15,455,970 to $23,159,411, or $7,703,441. The increase in capital stock was from $19,145,000 to $27,346,228, and the surplus profits from $8,304,400 to $16,639,560, | the increase in each item being, capital, $8,201,228, and surplus, ! $8,335,160. Relatively, the greatest increase in circulation is shown in this section, the amount being $13,168,310, or from $4,376,777 to $17,545,087. The increase in individual deposits was $65,405,065, or from $74,737,045 to $140,142,110. There were no national banking associations in existence in the island possessions in 1900, in consequence of which comparisons similar to the foregoing cannot be made. In March, 1904, there were in operation in Hawaii two national banks and in Porto Rico one, the aggregate capital of the associations being $625,000 ; sur- plus and other profits, $69,234; circulation, $266,500; individual deposits, $1,023,860. The banks' aggregate resources were $2,407,- 864, of which $309,179 was in specie and other currency, and $1,176,407 loans and discounts. The divisions of the States, geographically, are shown in the accompanying tabte relating to the organization of national banks from March 14, 1900, to April 30, 1904 : Fate has decreed, and her decrees are forever irreversible, that , we shall dwell in perpetual unison. Political demagogues, for selfish ends t and senseless agitators cannot disturb the ties which bind us together with more than a Titan's power.— Hon. C W. Fairbanks, at Lancaster, Mass., June 30, 1903. 346 Mil. IKKASIKV DEPARTMENT. summit)-)/. i>n states, geographical divisions, and classes, of Na- tional banks organized from March t). 1900, to April 80, 190$. States, etc. Capital — $50. Capital $50,000 , . Total organizations. No. Capital, No. Capital, No. Capitol. 1 1 1 $25,000 85,000 25.000 4 2 1 6 1 1 1286,000 200.000 lOO.(KK) 2.X(X). 500.O00 50,000 5 3 2 6 1 3 $250,000 125.000 2.KWI.IXH) 500.00Q 2 50.000 Total New England States. . 5 125,000 15 3,875,000 20 4,000,000 29 18 101 5 15 785,000 475.000 2,617.000 145.000 402,000 36 13 119 '"'.). 1 7,ic>o.o 875,000 15.088.000 "830.006' 250,000 65 31 220 5 24 1 i 350 f th$ Philippine Islands is being displayed ;it the St. Louis World's Exposition. The people of Ibis country will have ample opportunity not only to examine the products and resources of the Philippine Islands, as shown in the exhibits, but will be able like- wise to observe the manner of daily life of the Filipinos who ;iro gathered in the village at the World's Fair Grounds. The large number of representative Filipino citizens of education and more or less prominence in Filipino politics, now visiting the United States under the auspices of the Bureau of Insular Affairs, will do much on their return to explain to their people the conditions in this country. Under the policy of enlightenment and education inaugurated by the United States Philippine Commission, about 125 intelligent Filipino boys reached the United States last fall and spent the winter in California. Arrangements are now being made, under the direction of the Bureau of Insular Affairs, to distribute them in various schools and colleges in the United States. To each of these boys the encouraging promise is held out that, after a cer- tain period of schooling, they may return to their country and enter the public service. The Quartermaster**' Department. . At the outbreak of the war with Spain, six years ago, the reg- ular establishment of the Quartermaster's Department comprised 57 officers of all grades. Eleven small harbor vessels were owned and operated by the Quartermaster's Department. The total expenditures of the department for all ordinary pur- poses during the twelve months ending June 30, 1898, aggregated between nine and ten millions of dollars. The supplies of every class in the hands of the department con- sisted of only the ordinary quantities customarily carried in times of peace for the provision of a comparatively small force ; and these were not of the character to meet the peculiar requirements of tropical service. Within a few weeks following the destruction of the Maine, the total strength of the Army, regular and volunteer, had been in- creased from 26,040 to upwards of 275,000 men, practically all of whom were without equipment of any kind ; it immediately be- came the duty of the Quartermaster-General, aided by his assist- ants, to provide the armies with camps for concentration, trans- port them, and furnish them with shelter, clothing, fuel, cooking facilities, general supplies, wagons, animals, harness and forage, water, camp sewerage, scavenger service — in brief, with every- thing required for the complete equipment of the soldier of the line except his arms, ammunition, food and medical supplies, for which latter, however, it was also the duty of the Quartermaster's Department to furnish transportation. Promptly with the call to arms thirty-one concentration camps and temporary depots sprang into existence throughout this coun- try, and at forty points in Cuba, thirty-eight in Porto Rico, and nearly six hundred and fifty in the Philippine posts, temporary stations, and depots were established, at which quartermasters, acting quartermasters, or quartermasters' agents were on duty, and from which transportation was provided and supplies received, distributed, and issued to troops. Hospitals were built, depots rented or constructed for housing the vast quantities of commis- sary, quartermaster, medical, signal, and ordnance stores; all in addition to the ordinary duties of the department. As an ex- ample of the magnitude of the operations required it may be said that in a comparatively brief list of certain articles of clothing and tentage, the issues of which for ten months ending April 30, 1898, amounted to 1,522,227 articles, it was found necessary to pro- vide in the 3% months from May to August a total of 14,329,531. To meet the demands for oversea transportation a fleet of 69 chartered vessels had been provided by June 30, 1898, and in the succeeding year 26 other vessels were furnished by charter; the services of these were dispensed with as rapidly as they could be spared. THE WAR DEPARTMENT. 355 Armies were transported, consisting of 17,460 men to Porto Rico, 65,612 to Cuba, 75,723 to the Philippines, and 3,700 compris- ing the China relief expedition, together with their necessary civilian employees, animals, and impedimenta. During the period from the outbreak of the Spanish War to June 30, 1903, the transport service of this department has carried the following totals: Persons 627,737 Animals 73,438 Tons of material 772,709 Miscellaneous packages 6,000,000 Pounds of mail matter 5,000,000 and between $30,000,000 and $40,000,000 in currency and coin. This entire service has been performed without the loss of a single life chargeable to any act or neglect of the service, and with an extraordinary minimum of ordinary casualty. The figures given are exclusive of the inter-island service in the Philippines, Cuba and Porto Rico. The total of all expenditures from United States funds, which prior to the war amounted to about $9,000,000 annually, and which under the stress of emergency rose to about $125,000,000 in the year following the first war appropriation of May 4, 1898, aggre- gated on June 30, 1903, $404,523,869.95. In addition to this, as be- fore shown, the officers of this department also disbursed large amounts of insular funds. To-day the department does business over practically every route known to commerce and travel ; provides the necessities of men under the tropical sun, and, surrounded by unbroken fields of ice and snow, counts its supply depots from Alaska to China ; from the Philippines to Porto Rico ; and along the vast expanse of the Pacific, where our tiny islet possessions reach like stepping stones to our lands in the distant Orient. - The transport fleet has now been reduced to ten oceangoing vessels in commission. The appropriations for the year ending June 30, 1904, was $39,453,794.44, a large reduction over the pre- ceding year, and the appropriations for the coming year mark a still further reduction of nearly $5,000,000, being $34,648,412.50. The Commissary Department of the Army. At the close of 1897, and in a time of peace, the strength of the Army, a little over 25,000 men, was confined to a compact terri- tory and with an appropriation for its subsistence of less than $2,000,000. Within a few months thereafter the country was pre- cipitated into a war and the Army swelled more than tenfold in number, and the appropriations, mounting up until they reached a maximum of over $24,000,000 for the Subsistence Department in a single year. The Army was supplied, not counting the great quan- tities of other stores, with upwards of 65,000,000 rations in less than a year that the Spanish troubles lasted. The large sums in- volved were economically expended and the rations promptly dis- tributed and issued. This sudden and great emergency was fully met by the Subsistence Department without a breakdown, and to the satisfaction alike of the Government and the soldier. In the past few years the Subsistence Department has met the demands for vast quantities of rations and stores for troops in Cuba, Porto Rico, and the Philippines, whose almost sole depend- ence was upon a supply through the Subsistence Department and drawn from the United States. This distant and untried field, with its trying climatic conditions, presented a new and difficult problem ; but the department met and solved this problem of foods required for troops in the Tropics and the best methods for their preservation, still keeping the United States Army in the position of the best-fed army in the world. In the Philippines, on many occasions, the Subsistence Depart- ment made it possible to supply hot food on the firing line. Dur- ing the Boxer trouble in China in 1900, it was called upon to meet the^udden demand of the army transported there among hostile surroundings, and successfully met every requirement, and many complimentary remarks were made regarding the amount and quality of the stores furnished. The new army ration established by President McKinley in 1901 is the best and most liberal one of any army ration in the world, as may be seen by comparison. 356 THE WAR DEPARTMENT. and goes far toward insuring the health and efficiency of the troops, who are so largely dependent on the food supply. Dr. Yorke Davies, one of the greatest living authorities on food, diet, and hygiene, who has for many years paid particular attention to the army rations of the world, said in 1902: "My experience in studying the diets of the different armies of the world is that far and away the best for the making of physically powerful sol- diers is that given in the Army of the United States of America." The Medical Department. The sudden expansion of the Army imposed a most difficult task upon the Medical Department — a task which was worked out with the greatest success and the highest credit. War inevitably entails disease, suffering, and death, but, it can be safely said, in no war have the sick and wounded received so many comforts and been so tenderly nursed. The health of our troops serving in the newly acquired terri- tory has been guarded by every provision that modern science can provide, and the sickness and mortality from disease has been kept far below what was to be expected. The ratio of deaths per thousand of mean strength for the first year of the war was but 25.73, while that for the first year of the war of 18G1-65 was 45.87. In 1898-99 smallpox was epidemic in Porto Rico, having ex- isted for an indefinite period of time. Under the superintendence of the Medical Department of the Army between January and July, 1899, practically the entire population of the island was vaccinated, with the result that the disease was practically eradi- cated. In June, 1900, the conquest of yellow fever in the island of Cuba was begun by army medical officers. The disease, which was known by. authentic records to have existed without a year's intermission for a period of one hundred and fifty years, appeared for the last time in September, 1901, since which time the city of Habana has enjoyed complete immunity. Occasional cases im- ported from Mexican and Central American ports are treated in the ordinary public hospitals of Habana in mosquito-proof rooms and no secondary cases follow. It will be remembered that in June, 1900, a commission of army medical officers met at Habana for the purpose of studying the causes of yellow fever. Major Reed, the master mind of the commission, in a series of most perfectly planned experiments, proved beyond doubt that yellow fever is transmitted only by the bite of a particular species of mosquito, and that the old theory that filth, infected articles of clothing, etc., could carry the disease is absolutely untenable. The commissioners exercised great scien- tific ability and energy in their investigations, and much indi- vidual 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 experiments. The lamented death of United States Contract Surgeon Lazear from the bite of an infected mosquito, and the severe illness of Contract Surgeon Carroll and others from the same causes, constituted the best proofs of personal courage and professional zeal and earnestness on the part of the commission. Based entirely on the conclusive theory that yellow fever was transmitted only by the mosquito, Colonel Gorgas, of the Medical Department, then chief sanitary officer of Habana, began the eradication of the disease from that city in the spring of 1901. It is not too much to say that the work of this yellow fever commission resulted in the greatest discovery in the line of pre- ventive medicine since Jenner demonstrated the protective effects of vaccination against smallpox. It is everywhere so recognized by the scientific bodies of the world, and within the last month the Pasteur Institute of Paris has published the results of the experiments of a commission investigating yellow fever in Rio de Janeiro, which results entirely confirm those of Reed and his com- panions, and show practically no further advance in knowledge of the disease. In the Philippine Islands it became the duty of the Army Med- ical Department to protect the army from cholera and plague. The United States troops at Manila and some of the larger sea- port towns have been carried successfully through an epidemic of THE WAB DEPARTMENT. 357 bubonic plague with but one or two cases. - Smallpox has been almost eradicated from Manila and the larger towns. The Pay Department of the Army. An examination of the records of the Pay Department shows that from 1896 to 1903 inclusive it was accountable for $310,112,- 625.32. The balance in the hands of the paymasters on June 30, 1903, up to which date the last computation for the purposes of comparison was made, amounted to $5,320,647.19, showing, there- fore, that the total expenditures in the period above specified aggregated $304,791,978.13. This money was disbursed in all parts of the world where the Army was then operating, in Cuba, Porto Rico, Hawaiian Islands, Alaska, China and the Philippine Islands. $276,577,212.99 was paid to troops and the balance, as shown, was properly accounted for. Over twenty-eight millions of dollars were transported to the Philippines in currency ; 235,000 volunteer soldiers were mustered out of the service; 425,203 de- posits by enlisted men, aggregating $14,268,346.13, were received by paymasters ; and 355,105 deposits, amounting with interest to $12,734,177.34, were paid back to depositors. % River and Harbor "Work. In no department of governmental activity perhaps has there been more progress during the past eight years than in the work of improving rivers and harbors, which has been under the direct supervision and control of the Corps of Engineers of the Army; and certainly there is no field of effort more important or bene- ficial to the people at large. From the inception of the Govern- ment one of the most momentous problems which has required constant consideration is that of cheap, safe, and untrammeled transportation. Waterways are the commercial highways of the nation, abso- lutely free, and offering equal facilities to all who desire their use. Very wisely, therefore, the Government, at an early day, inaugurated a policy of improvement, the first appropriation for such purpose having been made in 1800. In the beginning this policy was very limited in scope; but the advance of population and commercial industry rendered the greater use of our lakes, rivers, and seacoast harbors imperative, and this increasing course of progress required a corresponding increase in appropriations for its protection and development. At no period has this devel- opment been greater than between the years 1896-1904; and the systematic and energetic methods employed, born of experience and intelligent conception on the part of Congress and the execu- tive, have resulted in a maximum of benefit to the agricultural, commercial and manufacturing interests of the country at a mini- mum of cost. During these years Congress has appropriated a total of $175,806,554 for the execution of definite projects carefully and scientifically formulated by experienced engineers. There are now 603 separate works being carried on under the charge and supervision of 72 trained and educated officers of the Corps of Engineers. These works range from the bays and broad armed ports where "rich navies ride," to the small streams, creeks and inlets over which the products of the farm are carried to market in rowboats and small schooners, or lumber from our virgin forests is floated in rafts. In 1896, about 7,500 men were employed on river and harbor works, whereas during the past year more than 11,000 have been given regular and profitable employment, an increase of nearly 50 per cent. To convey an accurate understanding of the magnitude of the internal commerce using our waterways, and of the work that has been accomplished for its convenience is an almost impossible task. The constant growth in size, draft, and carrying capacity of vessels navigating the inland waterways, as well as those em- ployed on the seaboard, has necessitated increased depths and widths of channel. Twenty-five years ago harbor depths of from 12 to 25 feet were considered ample, but depths of 30, 35 and even 40 feet are now required in our important harbors, and have already been acquired or provided for. Among the results accomplished up to the present time may be mentioned the increased depths and widths of channels in the 358 THE WAR DEPAKI'MI M. great harbors of the country, particularly Charleston, where the depth luis been increased from 10 to 20 feet, and Galveston, where the original depth of 12 feet has been increased to 27 feet; the improvement of the ports and rivers tributary to the Great Lakes, which has developed a marine performing a service greater than that done by one-quarter the entire railway freight equipment of the nation, and forming a means of transportation costing only about one-ninth of the cost of the same service by rail ; the con- struction of canals, and twenty-three different slack-water systems as artificial aids to the navigation of rivers, such as the St. Mary's Falls Canal through which there passed during the year ending June 30, 1903, 10,615 vessels, aggregating 20,557,413 regis- tered tons, and carrying 31,028,365 tons of freight, and 21,990 passengers, a traffic more than twice as large as that which passes through the Suez Canal; the improvement of the Mississippi River and its tributaries, aggregating more than 1G,000 miles of navigable waterways, reaching the very center of the country and affording a cheap and ready means of transporting the vast prod- ucts of farm and mine; the improvement of various important harbors and waterways on the Pacific coast, including the Colum- bia River, which penetrates the rich forests of Washington and the grain-bearing regions of Oregon, and into which, since im- # provement, the largest vessels can now enter and depart without difficulty; in short, every part of our seacoast, from St. John to the Rio Grande, from San Diego to Puget Sound, more than 23,000 miles in extent, and every section of the country traversed by our inland waterway has been benefited by reason of the increased facilities and lessened cost of transportation. The Work of the United States Army Signal Servlee Shows Splen- did Achievements. On occupying Cuba the Signal Corps of the Army found a few dilapidated, telegraph lines on the western half of the island about 800 miles in length, operated with antiquated methods, with tariff rates increasing in proportion to the length of the message, without free delivery, and with grave uncertainties as to espion- age, secrecy, and delivery. It constructed a system of about 3,000 miles with two main trunk lines from the extreme eastern to the western end of Cuba, and thirteen intersecting cross-lines. The American system was thoroughly installed, with instruments of the best modern type, a speedy and reliable transmission, with low tariff rates, certainty of delivery and inviolability of messages. The Cuban operators were trained in American methods, and by judicious action the entire system was turned over to the Cuban government without interruption or delay in current business. More than 1,000,000 messages were sent in a single year. Not a cent of the commercial receipts was spent, but every account was systematically audited and the receipts deposited without loss in the Cuban treasury, and the lines were turned over with commer- cial receipts of about $100,000 annually. In Porto Rico the Signal Corps found an antiquated, inefficient system, expensively and inefficiently managed. During the mili- tary occupancy of the island a hurricane destroyed the whole sys- tem, some 800 miles, which was rebuilt in accordance with modern engineering methods and thoroughly equipped with American in- struments. This entire system of Porto Rico was maintained, operated, repaired and reconstructed by the Signal Corps without entailing a dollar of expense on the treasury of Porto Rico, to the government of which the telegraph lines were transferred without impairing the efficiency of the service. The Signal Corps found the Philippine Islands destitute of any land telegraph system on the American occupancy, Manila being connected, however, by cable with three islands. A telegraph and cable system of about 7,000 miles has been constructed, of ma- terial all of American manufacture, and maintained efficiently and economically. It connects fifteen of the most prominent islands of the archipelago, facilitating greatly commerce and business, as well as administration. American methods of inviolability of mes- sages, low rates, and efficient service have been carried out, and the cost of telegraphing over this system is from one-third to one- fourth of that charged by the English cable system installed by Spain in these islands. The commercial receipts, exceeding $50,000 THE WAR DEPARTMENT. 359 per year, have been carefully audited and deposited in the treasury without loss, no expenditures being made therefrom. The Signal Corps telegraph system in Alaska constructed dur- ing the past three years affords telegraphic communication with nearly every place of importance on the mainland of Alaska, in- cluding the entire Yukon Valley as far as St. Michael Island. The completion of an all- American cable route, which shall bring the whole of Alaska in direct communication with the rest of the United States, is in progress and will probably be completed the present year. Coast Defenses. The United States Engineers and Ordnance Departments are so intimately connected and mutually dependent upon each other for military usefulness in the work of construction and arma- ment of the coast defenses that they must be in a measure con- sidered together. The Engineers, under recommendations of the Board of Fortifications and Seacoast Defenses, construct the forts, batteries, and fortifications, and the Ordnance supplies the guns and war munitions. The work of each is most important and involves much expenditure of money especially in time of peace when must be done the efficient work of manufacturing guns and ammunition and constructing fortifications, as well as preparing emplacements of heavy guns— all this in preparation for war which, after all, is the only time their practical use is ever contemplated. To form some idea of the extent of this work of construction and manufacture, the fact may be mentioned that the so-called seacoast guns vary in size from six inches to twelve inches and cost from $10,000 to $55,000 each, while most of these guns are mounted on the disappearing carriages so designed that the recoil carries a gun from the more or less exposed firing position to one of concealment and security behind the parapets. The cost of such gun carriages varies from $10,000 to $40,000 each, accord- ing to size, making each effective complete mounted gun cost from $20,000 to $95,000, irrespective of the additional large cost of construction work involved, and also the cost of projectiles and powder, the charges of powder for each firing of the gun varying from one hundred to four hundred pounds. One of the great achievements in recent years of these two departments has been a great reduction in the cost of emplace- ment of the heavy guns so as to protect them from the emeny after firing. Formerly, when the work began under the Endicott Board scheme of 1886, the only means of protecting the high power coast defense gun was the steel 'or chilled coast iron turret, the cost of which was between $1,100,000 and $1,000,000 for each pair of 12-inch guns mounted. The gun lift scheme was subsequently adopted at a cost of $525,000 exclusive of the guns, each of which could be fired once in eight minutes. But as recently re- ported by the Secretary of War we can now have two 12-inch guns mounted on disappearing carriages — as at Sandy Hook, for example — which cost only about $150,000 for the carriages, em- placements, and protection of both guns, and each of those guns can be fired ten times in eight minutes, or ten times faster now than a few years ago, and this, too,, at a reduced total cost of $375,000. While it must be accepted that this feature of the Nation's defense always has been and always will be necessarily an ex- pensive one — and also a necessarily unavoidable one which no political party will ever be able, on account of its pretentions to reform or economy, to ignore or neglect. From a recent special report of the newly appointed General Staff of the Army, the below indicated interesting figures are taken to illustrate the magnitude of this part of the work of military defense, which in time of peace — the only fitting and safe time for its accomplishment — cannot be too long delayed. This consolidated statement shows the expenditures for fortifi- cations, armament, electrical appliances, and quartermaster's con- struction and supplies up to September, 1903, to have been $89,- 599,621.58. And further, according to the official estimates of the same military authority of the cost of completing the defense project of the so-called Endicott Board, as modified from time 360 THE WAB DEPABTMENT. to time, it will yet cost for continued and additional similar work in the projected scheme of National defense $50,852,694.98 : so that when this projected scheme of coast defense is com- pleted the aggregate cost of defending our coast and ocean har- bors and seaport cities will have reached $140,452,310.56. In addition to this must be considered the annual cost of maintenance of coast defense fortifications, including garrisoning, and annual supplies, estimated at $18,083,145.85. The present administration of the War Department under the direction of the President, realizing fully the value and vital importance of this coast defensive work, has boldly met the National obligations involved and does not shrink from tht groundless criticisms which the uninformed partisan is pleased to make on the score of alleged increased militarism every time military expenditures are recommended. It is true that cursory reading of the statistical statements of National expenditures each year, briefly classified under the laconic heading of "War," aggregating, as they do, for the past eight years nearly nine hun- dred millions of dollars, are, it must be admitted, likely to mislead the average layman who construes the appropriations for purely army purposes only. But an examination of the nature of those so-called expenditures for war will show that much of them is expended in time of peace, and will show, also, that those so- called "war" expenditures not only include the comparatively small cost of maintaining the minimum Regular Army, but the various unavoidable expenditures which no political party could, even if they wished, well avoid, as, for example, the millions of dollars expended annually for internal improvements, lake im- provements, preservation of public parks, road and bridge build- ing, as well as for the manufacture of ordnance and arms and the munitions of war, a reasonable amount of which it is always wise and safe to accumulate in times of peace. Due attention has been given to the matter of coast defenses in the insular possessions. Projects for the defense of San Juan, Porto Rico, Pearl Harbor and Honolulu Harbor, Hawaii, San Luis d'Apra, Guam, Manila Bay, and Subig Bay in the Philippines, have been made and approved. The subject of forti- fications of naval stations in the West Indies has also been urged upon Congress. The Corps of Engineers, U. S. Army. On June 30, 1896, the fortifications of the sea coasts of the United States were so incomplete as to make it a matter of national necessity to exclude from them, as far as possible, any one who might communicate the information to foreign powers that our shores were to all intents and purposes without defense. At each harbor there were remains of the. old stone forts — the best of their kind in the world in their day and utterly im- pregnable by wooden sailing fleets — supplemented by the earthen batteries for smooth-bore guns of the period immediately suc- ceeding the Civil War. At a few harbors, interspersed among these decaying remains of former systems of defense, rendered obsolete by the wonderful advance in rifled guns, smokeless pow- der, and hard-faced steel armor, were one or two modern bat- teries of the earlier type, experimental attempts to develop a system to meet the new demands of defense against the modern high-power naval guns behind their panoply of steel hard-faced and backed up by the rigid structure of the new type battleship, at once fleet and powerful. In the last eight years these batteries have grown from few in number and experimental in type to the numerous and complete defenses of to-day; at nearly every harbor a good defense is now possible. From having ready 92 emplacements for heavy guns and mortars, 75 of which were mounted, and two emplace- ments for 2.24-inch rapid fire guns, in 1896, we now have ready for the hands of well-trained and effective artillery garrisons emplacements for 652 heavy guns and mortars, 611 of which are mounted, and for 367 rapid fire guns of 6-inch and lighter cali- bers, 185 of which are mounted. For some two years prior to the war with Spain the sub- marine mine system was under revision by a special Board of Engineer Oflicers, whose work had been practically completed, THE WAR DEPARTMENT. 361 but neither time nor funds had been available for replacing the old-style material with the new. In March, 1898, when the out- break of war appeared imminent, there were about 3,500 mine cases stored at a number of the principal harbors of the coun- try, out of a total of about 8,000 required for the complete ap- proved projects, but practically no cable, none of the various articles essential to an efficient working of a system of mines, and no searchlights. March 17, 1898, funds were allotted for the torpedo defenses from the appropriation for National defense, and were applied at once, under telegraphic orders, to the purchase and distribution of the most necessary articles of torpedo ma- terial. An April 21 the order to plant mines was given, and by the close of that month practically nearly every harbor of im- portance was defended by at least a preliminary line of mines. These submarine mines, which had been planted in 28 harbors, were maintained until the signing of the peace protocol with Spain, when they were removed, partly by explosion and partly by raising and unloading, and all material recovered was cleaned and stored for future use. Subsequent appropriations have been applied to the equipment of all ~harbors with a full complement of the material essential to rendering available for service all the mines and cable already on hand, to alterations and improvements in the old-type case- mates, and to the construction of new casemates, cable tanks, and storehouses. With few exceptions all harbors are now equipped with tor- pedo storehouses, cable tanks, and sevicable mining casemates, though many of the latter are not of the latest type. During the last eight years the authorized strength of the Corps of Engineers has been increased from 107 to 188 officers and from one battalion of five companies to three battalions of four companies each. The engineer soldier has been educated up to new duties. To accompany the advance in the Philippine cam paigns a portion of the engineers were mounted, and this now forms part of their regular organization. Everyone knows that the average American consumer pays more than the average British consumer. Yet the British con- sumer, in spite of that advantage, is by no means so well off as the American consumer.— The London Daily Telegraph. Let nothing distract us; let no discordant voice intrude to em- barrass us in the solution of the mighty problems -which involve such vast consequences to ourselves and posterity. Let us re- member that God bestows supreme opportunity upon no nation which is not ready to respond to the call of supreme fluty.— Presi- dent McKinley at St. Louis, Oct. 14, 1898. This is not and never shall be a government of a plutocracy; it is not and never shall be a government by a mob. It is, as it has been and as it will be, a government in which every honest man, every decent man, be he employer or employed, wage-worker, mechanic, banker, lawyer, farmer, be he who he may, if he acts squarely and fairly, if he does his duty by his neighbor and the State, receives the full protection of the law and is given amplest chance to exercise the ability that there is within him, alone or in combination with his fellows, as he desires. — President Roosevelt at Butte, Mont., May 27, 1903. We are not a nation of classes, but of sturdy, free, Independent and honorable people, despising the demagogue and never capitu- lating to dishonor. — McKinley's letter of acceptance, 1896. I have seen it to be an actual fact, abundantly sustained by evidence, that under 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 advantage be- ing contingent upon the completeness and accuracy of the appli- cation of the protective system. This advantage comes directly or indirectly to all classes of toilers, be they weavers, spinners, carpenters, painters, machinists, farmers, doctors, editors, or teach- ers. — Hon. H. B. Metcalf, Pawtucket, R. L, in the American Economist. ,162 THE DEPARTMENT OF JUSTICE. \ THE WORK OF THE DEPARTMENT OF JUSTICE. The Department of Justice is that branch of the Government upon which is imposed the duty of enforcing, by civil and criminal proceedings, the laws of the United States, and all rights of the Government under them. Prompt and efficient enforcement of law is of the utmost importance to the Government. This has been the policy of the Department during the administrations of Presi- dent McKinley and President Roosevelt, as shown by the results it has accomplished. During these administrations an unusual number of highly important cases, involving grave constitutional questions, have arisen and have been decided in favor of the Government The more important of these may be summarized as follows: The Insular Tariff Cases. These cases grew out of the cession to the United States by Spain, as a result of war, of the Island of Porto Rico and the Philippines; and as a result of the annexation, by resolution, of the Republic of Hawaii. The one great question involved in these cases was whether Congress might impose duties upon goods coming into the United States from its island possessions, and upon goods going into its island possessions from the United States. In the Dowries Case (decided in May, 1901; 182 U. S., 244) the court upheld the power of Congress to impose duties on goods coming into the United States from Porto Rico, as pro- vided in the Foraker act, for the reason that by the cession Porto Rico did not become a part of the United States within that provision of the Constitution which declares that "all duties, im- posts, and excises shall be uniform throughout the United States;" and that therefore Congress, under the power conferred to govern territory belonging to the United States, had a right to provide for Porto Rico a system of customs and internal taxation appro- priate to its needs and distinct from that in force in the United States. In the Second Dooley Case (decided in December, 1901; 183 U. S., 151), there was involved the question of the right to col- lect duties imposed by the Foraker act upon goods brought into Porto Rico from the United States. In addition to the objection urged in the Dowries Case that Congress could not impose such duties because they were not uniform throughout the United States, the further objection was made that the imposition of such a duty was a tax or duty upon "articles exported from any State." which was forbidden by the Constitution. The courts held, however, that only those articles destined for a foreign country constituted "articles exported from any State ;" that Porto Rico was not "a foreign country," but, under the decision in the DcLima CY/.vr, was territory appurtenant and belonging to the United States, and that Congress had the power to impose such a tax. The other insular tariff cases involved the right to collect duties passing between the United States and its island pos- sessions after their cession to the United States, but prior to ap- propriate legislation by Congress, the court denying such a right. These cases were the DeLima, the First Dooley, the Armstrong, the Diamond Rings, the Goetze, and the Grossman cases (182-183 U. S.), the court holding that these islands were not "foreign countries" within the meaning of the Dingley law and that goods coming therefrom were not subject to dutv under the Dingley law. In the First Dooley Case (decided in May, 1901 ; 182 U. S. 222), the court upheld the power of the Military Commander and the President, as Commander in Chief, under the war power, to col- lect duties on goods brought into Porto Rico from the United States from the time possession was taken of that island until the ratification of the treaty of peace> THE DEPARTMENT OV .TT7STICE. 363 The Federal Inheritance Tax Cases. In the case of Knowlton v. Moore (decided in May, 1900; 178 U. S., 41) and the other cases heard with it, there was in- volved the validity of sections 29 and 30 of the War Revenue act of June 13, 1898 (30 Stat., 404), which imposed an excise tax upon legacies and distributive shares arising from personal prop- erty. There was a double gradation of the tax, the tax in the tirst instance being determined by the degree of kinship, lineal descendants being subjected to one rate of tax, those of collateral kinship paying, a higher rate, and those not related a still higher rate. The second gradation depended upon the amount of the legacy, a small legacy paying a lower rate than a larger one — • the tax varying from % of 1 per cent to 15 per cent of the amount of the legacy. The law was attacked upon three grounds: (1) That it was a direct tax and not apportioned as required by Article I, section 9, clause 4 of the Constitution; (2) if not a tax on property, but a tax upon the privilege of transmitting or receiving property, it was invalid because the privilege of inheritance is conferred by the States; and (3) it violated the uniformity clause of the Con- stitution. Article I, section *8, clause 1.) The court overruled all these objections, holding the tax to be indirect; that Congress might impose the tax even though the privilege be granted and regulated by the States ; and that it did not violate the rule of uniformity which was held to be merely geographic in its nature, the same rate of tax being imposed upon all legacies of the same class wherever found. While Congress has since repealed the inheritance tax law, nevertheless the decisions are of great importance as establish- ing the principle that Congress, in seeking^objects for taxation, may tax valuable privileges, however obtained, and in adjusting the burdens of government may apportion the tax according to the ability of the person on whom it is placed to bear the same. I/and Fraud and TImher Trespass Cases. A very important class of litigation at the present time is that aimed to prevent and to punish frauds in the unlawful secur- ing of public lands from the Government and the unlawful cut- ting of timber thereon. Under the land laws a person may not enter more than 1G0 acres of land. Because of this fact, and with a view to securing large tracts for grazing purposes and for the timber growing thereon, which, in many instances, is of far more value than the land, large corporations and companies have undertaken to secure the lands by employing and inducing large numbers of irrespon- sible persons to enter the land and in so doing to make false affi- davits in order to obtain patents, and upon obtaining patents to convey the lands to the corporations or other persons who have furnished the necessary money with which to pay all fees and costs, besides a compensation to the persons employed to com- mit the frauds and perjuries. In this manner large tracts of valuable public lands have been secured. So glaring did these frauds become that determined measures were adopted by the Department of Justice and the Department of the Interior L o put a stop to them and to punish the offenders. To this end special counsel, skilled in the land and timber laws, have been employed to prosecute such parties and to in- stitute proceedings to cancel the patents wrongfully acquired. A large number of patents so acquired have already been can- celed by the court, and suits are pending and are being pushed to as speedy a conclusion as possible to cancel patents to large tracts of lands. In addition a large number of indictments have been returned against the parties to the frauds. Some of the parties indicted have pleaded guilty and have been severely pun- ished. The pending indictments will be tried as soon as a trial can be forced upon the criminals. These vigorous measures have had the effect of greatly checking the frauds practiced upon the Government in this respect in the past. Another class of this litigation refers to the proceedings to recover the value of timber unlawfully cut from the public lands .and to punish the offenders for their illegal acts. The timber 364 THE DEPABTMENT OF JUSTICE. lands of the Government being in remote places it has been some- what easy for the lumber and mining companies to steal and to cut up into lumber la rue quantities of timber taken from Govern- ment lands. This has been due in part to a lack of a sufficient number of agents to properly patrol the forests, and to a re- luctance on the part of those having knowledge of the trespasses to furnish evidence to convict the guilty parties. Under the administrations of President McKinley and of President Roosevelt vigorous measures have been adopted to put a stop to these unlawful practices. The Department of Jus- tice, acting with the hearty cooperation of the Department of the Interior, has employed special attorneys skilled in the knowledge of the timber and laud laws, specially charged with the work of bringing suits to recover the value of the timber stolen and of instituting prosecutions to criminally punish the offenders. This has had the effect of largely checking these trespasses. Many suits have been brought and large sums of money have been re- covered. Other suits are pending and are being brought and are being pushed to as speedy a conclusion as is possible. In Mon- tana alone suits are pending against great companies in that State to recover nearly $2,000,000, the value of the timber taken (unlawfully cut) from the public lands. Besides, a large num- ber of persons have been indicted for willful trespass ; some have been found guilty and punished and the trial of the other indictments will be had at as early a date as is possible. Another branch of this litigation refers to the suits brought against a number of the Pacific railroads for cutting timber for use on their railroads. Under the act of March 3, 1875 (18 Stat, 482), Congress granted to any railroad desiring it a right of way through the public lands ; and authorized the companies to take from the public lands adjacent to their right of way material, earth, stone, and timber necessary for the construction of the road. Acting under this statute, the railroads have construed the word "adjacent" to mean any distance they may see fit to' go for the timber, and have cut timber as far as from 25 to 50 miles distant from the line of their road. A number of suits have been brought against the railroads for timber taken more than two miles distant from their line of roads, and judgments have been recovered against them. And the Supreme Court has prac- tically adopted this construction in the case of United States v. St. Anthony Railroad Co. (192 U. S., 524), decided in February, 1904; so that, hereafter, when a railroad goes beyond a two-mile limit in cutting timber from the public lands, in order to escape from being held a willful trespasser, it must show some special reason why the two-mile limit should not be held to apply. This decision will practically put a stop to these trespasses by the railroad companies. The Lottery Law. Another direction in which the efficient work of the Depart- ment of Justice is shown is in the enforcement of the Lottery Law of March 2, 1895 (28 Stat, 963), the validity of which was sustained by the Supreme Court in February, 1903, in the case of Champion v. Ames, Marshal (188 U. S., 321). That act pro- vides for the punishing by imprisonment for not exceeding two years, or by a fine of not more than $1,000, or both, of "any per- son who shall cause to be brought within the United States from abroad, for the purpose of disposing of the same, or deposited in or carried by the mails of the United* States, or carried from one State to another in the United States, any paper, certificate, or instrument purporting to be or reperesent a ticket, chance, share, or interest in or dependent upon the event of a lottery, so-called gift concert, or similar enterprise, offering prizes dependent upon lot or chance;" or shall cause to be brought into, deposited or carried in the mail, or transferreed from one State to another, any advertisement of a lottery or other similar scheme or en- terprise. The court held: "Lottery tickets are subjects of tariff among those who choose to buy and sell them and their carriage by independent carriers from one state to another is therefore interstate commerce which Congress may prohibit under its power to regulate commerce among the several states. THE DEPARTMENT OF JUSTICE. 365 "Legislation under that power may sometimes and properly assume the form, or have the effect, of prohibition. "Legislation prohibiting the carriage of such tickets is' not inconsistent with any limitation or restriction imposed upon the exercise of the powers granted to Congress." The effect of this decision has been to render it next to im- possible to traffic in lottery tickets. The Oleomargarine Cases. These suits, four in number, grew out of the attempt on the part of the manufacturers of oleomargarine to evade and defeat the provisions of the act of May 9, 1902 (32 Stat., 193), amending the original oleomargarine act of August 2, 1886 (24 Stat, 209), imposing a tax of ten cents per pound upon oleomargarine arti- ficially colored in imitation of yellow butter. This legislation resulted from the great profits realized by the manufacturers and dealers in oleomargarine in fraudulently selling colored oleomar- garine as and for butter, and is in harmony with the policy of Congress in imposing taxes upon those subjects best able to bear them. The manufacturers resisted the payment of the tax of ten cents per pound upon the colored article upon the ground that the tax was confiscatory; that it was an attempted regulation and not a tax ; and sought to evade and defeat the ^law in every pos- sible way. In the three cases which have been decided (on May 31, 1904) the Supreme Court held: That the tax is an excise, which Congress had the power to impose; That the only limitation upon the power of Congress to impose excises is that they shall be uniform throughout the United States; that this tax is uniform; That it is for Congress to fix the rate of tax, and that it is not within the power of the court to inquire into the reasonableness of the excise, either as respects the amount, or the property upon which it is imposed; That if Congress abuses its taxing power, the remedy lies with the people who elect the Congress, and not with the courts. The court having heretofore held that the States may, in the exercise of their police power, absolutely probihit the manufac- ture and sale of oleomargarine colored to look like butter, be- cause of the aptitude of that article to deceive the public into buying it as butter, it results that even if the effect of the tax of 10 cents per pound be to repress the manufacture of the arti- fically colored article, such repression violates no fundamental right, for the manufacture of artificially colored oleomargarine may be prohibited by a free government without a violation of fundamental rights; and That the use of artificially colored butter in the manufacture of oleomargarine, although an authorized ingredient, constitutes an artificial coloration, and subjects the oleomargarine to the tax of ten cents per pound. But the foregoing classes of cases do not embrace all that have been begun and successfully prosecuted by the Department. Also deserving of special mention are the suits arising out of the collection of the customs and the internal revenue, and the prosecutions for a violation of the laws relating thereto; of the suits brought for the purpose of enforcing the provisions of the interstate commerce law; of the proceedings instituted and de- fended in the enforcement of the Chinese exclusion and the immigration laws; of the suits brought to forfeit and to re- store to the public domain land grants in aid of the construction of railroads, the conditions of the grant not having been com- plied with ; of the proceedings to forfeit and condemn as prize Spanish vessels captured in the war with Spain; and of the proceedings and prosecutions to enforce the law imposing taxes upon oleomargarine and other fraudulent imitations of dairy and food products. Trusts— Enforcement of the Sherman Anti-Trust Law. The work of the Department in the enforcement of the Sher- man Anti-trust law, which may be considered its most important work in recent years, is fully discussed in the chapter relating to trusts. 366 THE ^OST-OBFICE DEPARTMENT. WORK OF THE POST-OFFICE DEPART- MENT. Hunt! Free Delivery— Correction of Abuses In Second-* l:\»n Mall Privilege — The Investigations Instituted by Republican Officials and Their Results. The business of the Post-Office Department is a reliable index to the general condition of the country and the postal receipts for the last ton years show conclusively that our people have been prosperous and our business more active since the return of the Republican party to power than ever before in the history of the country. The following table gives the figures of receipts for the years Indicated : 1893 $75,896,933.10 1894 ., 75,080,479.04 1895 70,983,128.19 . 1890 /. 82,499,208.40 1897 82,005,402.73 1898 89,012,018.55 1899 95,021,384.17 1900 102,354,579.29 1901 111,031,193.39 1902 121,848,047.20 1903 134,224,443.24 1904 (estimated) 144,100,000.00 The increase of nearly $70,000,000.00 in ten years shows a truly marvelous development. Rural Free Delivery. The responsibility for the introduction of rural free delivery belongs to the administration of President McKinley and its in- crease and continuance to the administration of President Roose- velt. The introduction of this service has proceeded with mar- velous rapidity. At the beginning of the fiscal year 1899 there were less than 200 routes in operation. At the close of the present fiscal year the number in actual operation will be in excess of 25,000, bringing a daily mail service to more than 12,500,000 of our people residing in the rural districts. At the present time complete service is established in one hundred and forty-two counties, in which all the people outside of the cities receive their mail daily by rural free delivery carriers. The policy of rural free delivery is no longer a subject of serious dispute. It has unmistakably vindicated itself by its fruits. The practical benefits and the popular appreciation and demand have been decisively demonstrated. It has been made plain that this service is a potent educational force; that it brings agricultural life into far closer relations with the active business world; that it keeps the farmers in daily touch with markets and prices ; that it advances general intelligence through the increased circulation of legitimate journals and periodicals, stimulates correspondence, quickens all interchanges, promotes good roads, enhances farm values, makes farm life less isolated and more attractive, and unites with other wholesome influences in checking and changing the hitherto prevailing current from country to city. The national value of these advantages is in- calculable. They are not theoretical, but real, direct, and im- mediate. In diffusing them the beneficent agency of the Govern- ment is brought into the daily presence and thought of the people. The appropriation made by the present Congress for the con- tinuation of the service and its extension into districts where its introduction is justifiable was $20,810,000.00. The Post-Oflice Department has also endeavored to extend the benefits of the rural free delivery service to remote districts THE POST-OFFICE DEPARTMENT. 367 where the number of people is not sufficient to justify the es- tablishment of rural free delivery, and to this end has arranged for the delivery of mail into boxes along the lines of 20,000 star routes, aggregating 249,000 miles in length, and over 500,000 peo- ple are having their mail delivered to them by the star route car- riers in this way, and reports indicate that the service is gener- ally satisfactory to those who are served. The Investigations and Their Results. During the year 1903 an investigation of the Post-Office De- partment was ordered by President Roosevelt. The investigation, by the Postmaster-General, was conducted under the immediate supervision of the Fourth Assistant Postmaster-General, who had about fifty inspectors detailed exclusively to aid'ln the investiga- tion covering a period of eight months. The inception of this investigation is clearly set forth in the following extract taken from the memorandum of the President made after an examina- tion of the report of the Fourth Assistant Postmaster-General : "It appears that in December, 1902, Postmaster-General Payne and Congressman E. F. Loud, chairman of the Committee on the Post-Office and Post-Roads, held various consultations regarding the postal service, and as a result of these interviews it was de- termined that as soon as possible after the necessary appropria- tions could be made by the Congress an investigation should be made of the service, both Messrs. Payne and Loud agreeing as to the need for the investigation ,and the time when it should take place. Accordingly, an increase of $5,000 in the appropriation bill reported in January was made for the express purpose of carry- ing on the investigation in question. The reasons for the increase in the appropriation were known only to the Postmaster-General, to Congressman Loud, and to Congressman Bromwell. "Subsequently, some time in January, information was laid be- fore me by Mr. Seckendorff tending to show improper conduct by Beavers, general superintendent of the division of salaries and allowances, and Machen, general superintendent of the free de- livery system; and by Mr. William Allen White tending to show corruption by or under Tyner, Assistant Attorney-General for the Post-Office Department. First Assistant Postmaster-General Wynne also informed me that he had become suspicious of the in- tegrity of both Machen and Beavers. After full consultation with Mr. Payne it was decided that Fourth Assistant Postmaster-Gen- eral Bristow should make a thorough and exhaustive investigation of the charges in question and of all matters that might be de- veloped in connection with them. Mr. Bristow's report is a record of as thorough a bit of investigating work as has ever been done under the Government. After this investigation had been in progress for about two months it became evident that legal proceedings would have to be undertaken against some of the offenders. Owing to the importance of the case it was deemed advisable that special counsel should be employed, and Messrs. Charles J. Bonaparte and Holmes Conrad were chosen for this purpose. Messrs. Bonaparte and Conrad, in their review of the report of Mr. Bristow, speak as follows: "We consider the re- port an exceptionally able, candid, and impartial review of its subject-matter and that it shows clearly reprehensible misconduct, amounting in many cases to crime, on the part of a number of public officials. It is a voluminous document, but this arises, not from prolixity, but from the nature of the matters discussed. * * * We heartily commend the report and deem its conclu- sions fully .justified by the facts it sets forth ; and while regret- ting in common with all patriotic citizens that the grave abuses of long standing which it reveals should have grown up in the Post-Office Department, we consider the exposure of these abuses and the attempts made to punish those responsible for them a work of the highest public utility, quickly and ably performed." In all that is thus said of the report of Mr. Bristow I cordially agree. "The investigation made by Mr. Bristow discloses a condition of gross corruption in the office of the First Assistant Postmaster- General and in. that of the Assistant Attorney-General for the Post-Office Department. In the case of the superintendent of free delivery, Machen, the evidence shows that his misconduct began 368 THE POBT-Ofc'l'-li K DKPAKTMENT. immediately after his appointment in September, 1893. In the case of the general superintendent of salaries and allowances, Beavers, it began soon after he was appointed to that place in 1897. "In the review of the report of the Fourth Assistant Postmaster- (uiHial made by Messrs. Conrad and Bonaparte, they recom- mended that a law be passed extending the statute of limitations from three to five years for offenses of this character. In com- menting upon this recommendation the President said: "I heartily approve of the recommendation of Messrs. Conrad and Bonaparte that the statute of limitations be extended in the case of Government servants to a period of at least five years; for the persons who in such positions of trust engage In corrupt practices can ordinarily conceal their guilt for a longer time than is covered by the present short statute of limitations. This recom- mendation has been laid before the jCongress in the report of the Attorney-General, and it is earnestly hoped that it will be acted upon favorably. Moreover, our experience shows that outsiders claiming political influence sometimes sell their influence to can- didates for office, or in other words blackmail tnese candidates. There should be legislation which will permit of summary dealing with such offenders. "However, the prime need is not new legislation but the punish- ment of those who offend against existing laws. The Post-Office Department is making certain changes in the methods of ad- ministration, notably in the method of inspection, by which the service will be improved and tne chance of corruption existing without discovery be minimized ; but the only way to meet the real evil is to punish the offenders, by removal in any event, and where possible by prosecution under the criminal statutes. In any great business, public or private, wrongdoing is certain at times to occur. The way to guard against it is rigorously to scrutinize the character of those appointed, carefully to supervise their actions after appointment, and finally, to punish with relentless severity those who go wrong. All this is being done. "The immediate reformation of the service by the turning out of the offenders is not in itself enough to meet the demands of justice. The cases against both those within and those without the Post-Office Department, who by their acts have brought them- selves within the grasp of the law, will be pushed with the utmost vigor. Every effort must be made to see that both the delinquent official and the outsider who shares his guilt are punished to the limit of the law. In pursuance of this policy the individuals above enumerated have been indicted. In no case has the indictment been sought save where the officials of the Government were con- vinced of the man's guilt ; and in every case the Government will exhaust every expedient in its power in the effort to see that justice is meted out to the offenders. Those in the public service whose duty it is must ever be vigilant in the detection of wrong- doing, fearless in its exposure, relentless in its prosecution; but in the last resort, when everything which the public official, wheth- er legislator, judge, or executive officer, can do has been done, it remains for the jury, drawn from the people and representing the people, to do even-handed justice, shielding the innocent, but declining to be misled by any plea into refraining from punish- ment of the guilty." As the result of this investigation thirty-one people were in- dicted ; thirteen were removed from office, and four resigned. Of those indicted, twelve have already been tried and seven convicted. Those convicted are as follows: A. W. Machen, Clerk in the post-office at Toledo, Ohio, from 1886 to 1887, and assistant postmaster in that office from 1887 to July 31, 1890; appointed assistant superintendent free delivery in the Department May 6, 1893. C. Ellswobth Upton, Clerk in the Free Delivery Division, ap- pointed July 1, 1900. Diller B. Geoff, not in the Postal Service. Edmund H. Dbiggs, member of Congress from Brooklyn, N. Y., from 1897 to 1900. THE POST-OFFICE DEPARTMENT. 369 Thomas W. McGregor, Clerk in Free Delivery Division, appointed March 11, 1891. George E. Lorenz, Postmaster Toledo, Ohio, from 1886 to 1890. Not in the service at time of conviction. Samuel A. Groff, not in the Postal Service. In closing his memorandum the President said: No crime calls for sterner reprobation than the crime of the corruptionist in public life, and of the man who seeks to corrupt him. The bribe giver and the bribe taker are equally guilty. Both alike sin against the primary law of the State's safety. All questions of difference in party policy sink into insignificance when tbe people of this country are brought face to face with a question like this, which lies at the root of honest and decent government. On this question, and on all others like it, we can afford to have no division among good citizens. In the last resort good laws and good administration alike must rest upon the broad basis of sound public opinion. A dull public conscience, an easy-going acquies- cence in corruption, infallibly means debasement in public life, and such debasement in the end means the ruin of free institutions. Self-government becomes a farce if the representatives of the people corrupt others or are themselves corrupted. Freedom is not a gift which will tarry long in the hands of the dishonest or of those so foolish or so incompetent as to tolerate dishonesty in their public servants. Under our system all power comes from the people, and all punishment rests ultimately with the people. The toleration of the wrong, not the exposure of the wrong, is the real offense. Correction of the Abuse of the Second-Class Mail Privilege. The rate of postage for tbe second class of mail matter is one cent per pound, which is estimated to be about one-fifth of the cost to the Government of handling the same. Congress in granting this favored rate of postage, it is presumed, did not intend to open the door for all kinds of publications, but intended that only legitimate newspapers and periodicals should have the benefit thereof. In the administration of the postal service -abuses of this privilege hase grown up, so that it was estimated that nearly one-half of the mail matter sent at the second class rate was composed of mere shams or pretensions which had no right under the law to those privileges, or were books and libraries, which were clearly not intended to come within this class. The Department undertook to reform these abuses which had so insidiously grown up. At once legal steps were taken to pre- vent the Department from carrying out the reform. Several cases have been tried in the United States courts and finally some of these cases have reached the Supreme Court of the United States, which tribunal, in a decision rendered April 11, 1904, determined that the action of the Department in the cases pending before the court was proper and within the law. There are several other cases pending in the United States courts, but, as the decisions referred to cover the general principles involved, it is believed that the right of the Postmaster-General to decide what publica- tions are, and what are not, entitled to be classified as second- class matter is fully established. This reform is very important, in that it will result in the exclusion from the mails of many worthless publications and confine the privilege of second-class mail matter to legitimate newspapers and periodicals, and in the end result in the saving of a very large amount of money to the Government. England learns from experience— Democracy does not. — Hon. Charles Dick, in Congress, Jan. 5, 1904. During the seven years that have just passed there Is no duty, domestic or foreign, which we have shirked; no necessary task which we have feared to undertake, or -which we have not per- formed with reasonable efficiency. We have never pleaded impo- tence. We have never sought refuge in criticism and complaint instead of action. We face the future -with our past and our pres- ent as guarantors of our promises; and we are content to stand or to fall by the record which we have made and are makings— Presi- dent Roosevelt's speech accepting 1904 nomination. $70 II IK POST OFFICE IiKPARTMENT. ass* 5 i| .55qwwqqq«-i«ci • §9 9 9 35? 9 ^ *- ' 9* H! os IN t»" O ©" © ©" t- -<-iNTfti0»O9H.8^Mft&5* oo" oo oo" oo' >*> *»" ^»«* in «*" in* m* m" to to* I*" i~" od od R2t3Si:8i3S8£S8££:5f2i > x m — ■ © n x -r -r © eo t- t- o © V i — < ift oo S5 t- i £i' 3 £3 2 5°" !2 22 9* £ M ' S " B '■£> 08 » os' "* G» N * I* N»«0'$l-55©xeo^eN^©£',nxoO't<-tM-"-oo «©^x«©oin in is 2-d £.2 eo © i- — ©©-*iN-+i©Tt< — leMowaHooo in 5* in * r-._ oq ©_ 55 ©_ <* in © eo © in © © 35 * in ©" ©" X* t)>* 1-" .- " t-" t- ©' r-j ©' oc' ©' ©" ©' ©' M «* *i *i ©3^01£©-ih'2©©rtN©in©00 01--eOin OS ©^ «3 in © © © © IN UO ©_ -f 1-1 m © © t X 00 © © »i i-i *< ■*»" m ' iri in in" -d" m" •«»* m" ©* ad ©' o * m" c3 bxift'd a cS a a> .S«"j3 *rt cn 03 cr Oft" 3 "" §m»nin©m©©©©©©©©inoot-m©©fspooin ip-<>" eo" ©' eo* x* ** •-< eo" od >->" •v eo' i -' ©" t-r--.K5CO«XXl»X«ON01NIMXK © Of -+ t- X CO oq --; i- © i-i © i- in cm in cm »f -f © © © m n © i~ * ?i r? o* t ?? 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The great victories at Manila Bay and Santiago which shed undying fame upon this arm of the national defense were in no sense accidents. They w r ere the results of years of careful training of officers and men and the thorough preparation of the fleets for the crucial test of war. For this preparation, this readiness to meet the supreme moment for which a navy is constructed and maintained, those who administer the affairs of the Navy should have credit. The glory goes to our heroes who are in command afloat and to those officers and men who seize the opportunities of^war to render conspicuous service; but in remembering them, let us not forget those who labor without ceasing to secure the fleet in condition of high efficiency and to place at the disposal of commanding officers an abundance of the supplies, without which the fleet is power- less. As early as January 11, 1898, more than a month before the Maine was destroyed in the harbor of Habana, the Secretary of the Navy began to mobilize the ships of the Navy and to take such measures as would place at the disposal of the officers in command the full measure of our naval force. Immediately upon the passage of the bill appropriating $50,000,000 for the national defense, a board was organized for the purchase of auxiliary ships, and after careful examination 102 ships of various types were secured at a total cost of $17,956,850. Of these vessels but two, the New Orleans and the Albany, were strictly vessels of war. The others were mer- chant ships, pleasure yachts, tugs, etc., which were rapidly over- hauled at the different navy-yards, provided with such light armor protection as was practical, and suitably armed. It is a fact worthy of preservation that this number of 102 ships selected and purchased under the direction of the then Assistant Secretary of the Navy, now President of the United States, contained but nine whose sale as unsuited to the needs of the permanent naval establishment was found necessary in the years following the war. Eighty-five of the ships then pur- chased are still on the navy list doing excellent service either with the regular Navy or as ships of practice and instruction with the naval brigades of the various States ; one, the Merrimac, was sunk in the channel at Santiago, two were wrecked, and five were transferred to the War Department. Quick Preparations for War. Between March 16 and June 30 all these vessels were pur- chased and as rapidly as overhauled were placed in commission and put into active service. They were used not only as auxil- iary war vessels, but to supply the fleets with coal and ammuni- tion and with fresh water and fresh provisions. For the care of the sick and wounded the Solace was fitted out as a complete hospital, and to make repairs to vessels at sea the Vulcan was fitted out as a modern machine shop. In order to meet the in- creased demands on the navy-yards it was necessary to prac- tically double the force between February 15 and the middle of April. In addition to the ships which were added to the Navy by pur- chase, fifteen revenue cutters and four light-house tenders were transferred from the Treasury Department to the Navy, and four of the great steamers of the International Navigation Company were chartered. There were in all 128 ships added to the regular naval establishment, and it became at once necessary to provide officers and men to man them. For this purpose 225 officers on the retired list were ordered to active duty, 850 officers were ap- pointed for temporary service, and the enlisted force was in- creased from 12,500 to over 24,000 men. - ■ . :^\ S ' 372 i hi: .navy hki'aktment. It was an enormous undertaking to make all tflese additional ships ready for war service, to secure the necessary guns for them, and to keep the fleets supplied with coal, ammunition, and provisions. But this was only a part of the work which the Navy Department had in hand. For the protection of tne coasts of the United States an auxiliary naval force was created, which was officered and manned by the naval militia of the United States. A coast signal service was established, which kept practically our entire coast line from Maine to Texas under observation, to give warning of the approach of an enemy's vessel or of suspicious craft of any kind. The operations of the fleets of the Asiatic and North Atlantic squadrons are so well known that it is hardly necessary to speak of them in detail. Their work was so well done that the power of Spain was swept from the sea, and Cuba, Porto Rico, and the Philippines, which she had misgoverned for centuries, were taken from under her dominion. The Appeal from Peking. When in May, 1900, an appeal for help came from the lega- tions at Peking, the Navy Department had made provision of ships, officers, and men, so that it not only had an adequate naval force at the nearest seaport town but was also able to send forward immediately a force of marines for the protection of the United States legation. This guard reached the Chinese capital in the latter part of May, only a short time before the representatives and citizens of foreign countries in that city were subjected to siege and cut off from the rest of the world. The annals of his- tory present few examples of more dramatic interest than the story of the beleaguered legations in Peking from June 20, 1900, the date on which the German minister was killed and the siege began, until August 14, when the allied forces entered the Chinest capital. Official and unofficial reports, and particularly the dispatches of our minister, show that the American marines bore their full share in the burdens of defense during this mem- orable siege. The United States legation was situated just in- side and near to the wall of the Tartar city. When the lega- tions were assaulted the American detachment immediately oc- cupied a position on the city wall, a strategic point of great importance, establishing an improvised sandbag fort there, which enabled them to defend the section of wall immediately com- manding the legations, and, although repeatedly attacked by overwhelming numbers, and on two occasions driven for a few minutes from the wall, they were never permanently dislodged, but held this vital position until relief came. Another detachment made up from the fleet of the United States at Taku, composed chiefly of seamen and under the com- mand of Captain B. H. McCalla, U. S. N., joined the relief col- umn under Admiral Seymour which started for Peking on June 10. Of the part borne in this hazardous expedition by the Ameri- can sailors honorable mention is made in all reports. The British admiral said of them "Their post was usually in the advanced guard, where their- zeal and go were praised by all." In the meantime the foreign settlement at Tientsin was attacked and communication between that city and Taku was interrupted. On June 19 a detachment of our marines arrived at Taku from Cavite and was ordered to the relief of Tientsin, but the little fowce of not over 500 men was confronted by overwhelming num- bers on June 21 and driven back. On June 22 an allied force of 2,000 men was made up by reenforcements, and the foreign city of Tientsin was entered and the siege raised. On June 25 Admiral Seymour's force was relieved and on July 14 the walled city of Tientsin was carried. Conspicuous gallantry was displayed by the American marines in this action, in which one officer and four enlisted men were killed and four officers and fifteen enlisted men were wounded. On the day of the capture of the Chinese stronghold at Tien- tsin the systematic attacks upon the beleaguered legations at Peking ceased ; an informal truce was arranged at the instance of the tsungli yamen; communication between the besieged and the outside world was partially reopened; the legations were offered certain supplies by the Chinese authorities, and although THE NAVY DEPARTMENT. 373 subjected to desultory attacks from time to time and to a fierce final assault on the night of August 13, were on the following day relieved by the entrance into Peking of the allied forces. During the course of the insurrectionary troubles in the Philippines the Navy took an active and creditable part. Owing to the nature of the service unusual demands were made upon the commissioned and enlisted personnel, calling for the qualities of tact and discretion as well as for a high standard of efficiency and courage. The smaller vessels which were captured during the course of the Spanish war were organized into subordinate detachments and squadrons, and afforded effective support and aid to the army in suppressing the various otubreaks which preceded the establishment of civil government in the islands. Record at the Isthmus. The instant readiness of the Navy of the United States to perform any service or any duty was exemplified by the events on the Isthmus which began with the landing of troops on November 3, 1903, with intent to disturb the peaceful conditions which were guaranteed by the United States within the zone crossed by the isthmian railroad. On the morning of November 3 four hundred Colombian troops were landed at Colon; when refused transit over the isthmian railroad and on learning of the Panama revolution in the city of Panama, their command- ing officer threatened to open fire on the city of Colon and kill every United States citizen. Commander John Hubbard of the U. S. S. Nashville immediately landed a force for the protection of the town, and, though outnumbered by the Colombian troops, by the firmness of his front and his determination to protect the town and the peace of the Isthmus at all hazards, secured the withdrawal of the threat and the abandonment of Colon by the Colombian troops, who returned to Cartagena on the follow- ing day. The mobilization of an effective force to insure the continua- tion of peace on the Isthmus was rapidly carried out by the Navy Department. The preparation for the ordinary course of duty made by the constitution of a Caribbean squadron was found ample, with the addition of a small force of torpedo boats and special service vessels, not only for the purpose of maintain- ing peace, but for an extended series of observations and surveys along little known parts of the isthmian coast. The tact and effective diplomacy which universally marks the intercourse of the Navy of the United States with the people and represen- tatives of foreign nations assisted materially in restoring confi- dence among the people of the Isthmus and in allaying misap- prehensions as to the intention of the presence of the Caribbean squadron in those waters. For the purpose of still further assuring the peace of the Isthmus, battalions of marines to the total number of 1,300 were dispatched to the Isthmus, the whole being under the command of the Brigadier-General Commandant. From the moment the order for the mobilization of the marines was given to that of the arrangement for stationing the marines on the Isthmus under the terms of the treaty of Panama, the progress of the movement was frictionless. Transportation from the United States with the necessary stores arrived at League Island coincidentally with the companies of marines ordered to the Isthmus and sailed for their destination on the moment appointed. On the Isthmus sanitary conditions were quickly established, and dispositions made so that the tour of duty was accomplished without the loss of a life from tropical conditions and with results in the maintenance of the general health of the battalions that has never been equalled in similar tropical service. Increase of Naval Strength. But the claims of the administration of the Navy to the ap- proval of the people rest not alone on its war record. The up- building of the new Navy has gone steadily forward, and Congress has cooperated with the ^Department In the desire to materially increase our naval strength. 374 lilt NAVY DEPARTMENT] The platform of the Republican party adopted at St. Louis, .July 17. 1896, said: "The peace and security of the Republic and the maintenance of its rightful influence among the nations of the earth demand a naval power commensurate with its position and responsibility. We therefore favor the continued enlargement of the Navy." It has been a source of pride to the citizens of the United States thai the upbuilding of the Navy has not been a partisan undertaking. The new Navy, based upon the investigations under- taken by a Republican administration, had its inception in the authorization of four ships by a Congress in which the Republi- cans held the lower House by a small majority and in which the 1 Senate was almost equally divided. Since that Congress there have been five Congresses in which the Democratic party has held the majority of votes of the lower House, in which propositions for appropriations originate, and five (not counting the present Congress) in which the Republican party has had the preponderance of influence. With the addi- tions to the Navy contemplated in the naval appropriation bill for 1904-5, the authorizations of ships for the increase of the Navy of the United States are shown in comparison by the following table : Congress. DEMOCRATIC. Armored ships. Cruisers. Torpedo boats. Total. Forty-eighth 4 6 9 3 6 4 Forty-ninth 8 2 2 1 15 Fiftieth 11 1 6 6 Fifty-third 14 Total 14 28 8 50 REPUBLICAN. 4 2 4 Fifty-first 3 3 13 5 9 3 1 10 31 6 Fifty-fourth 13 Fifty-fifth 8 3 4 3 52 Fifty-sixth 15 Fifty-eighth 6 Total 36 24 49 109 Since the 4th of March, 1897, Congress has authorized the construction of 76 ships with a total displacement of 404,668 tons. This includes 15 battle ships of the first class, 8 armored cruisers of the first class, 4 monitors, 9 protected cruisers, 35 torpedo boats, surface and submarine ; 3 gunboats, and 2 training ships. The naval appropriation bill for the fiscal year 1904-5 contains in addi- tion the authorization of one battle ship, two armored cruisers, and three scout cruisers, of a total displacement of 56,250 tons, with two colliers, making a total authorization since the above date of 84 vessels with a total displacement of approximately 475,000 tons. There have been completed under Republican administration since the 4th of March, 1896, 76 vessels of war with a total ton- nage of 144,000 tons. This includes 8 battle ships, 4 monitors, 4 protected cruisers, 9 gunboats, and 51 torpedo boats and torpedo- boat destroyers. A strong Navy not only adds to our prestige abroad, but makes the rights of our country respected wherever they may exist. The money expended does its part in lending a stimulus in many branches of trade and manufacture and in the employment of labor. The industrial operations involved in building and maintain- ing the navy of the United States are so wide-spread that it is difficult to make a comprehensive estimate of the employment afforded. In operations conducted by the department itself, not less than an average of 22,000 men are employed, while in the private enterprises carrying out naval construction work, the estimate of 15,000 men is a conservative one. if the labor employed in producing the miscellaneous supplies and fittings of the Navy THE WAVY DEPARTMENT. 375 is considered, together with the number included in the per- . sonnel of the Navy and Marine Corps, a total of over 100,000 men may safely be arrived at who are afforded steady and re- munerative employment in maintaining this national safeguard, the cost of which, as shown by the last report of the Secretary of the Navy, is but seven-tenths of a mill on each dollar of uational valuation. High Standard of Efficiency Attained. It is not too much to say that as the result of eight years of Republican administration, aided by the lessons which were taught by the period of active service of the Spanish war, the Navy of the United States is better equipped, better organized, in a higher state of efficiency than ever before in the history of the United States. In the administration of President McKinley and through its efforts legislation was effected reorganizing the personnel of the Navy and creating salutary changes, which have placed the organ- ization on a much more satisfactory basis, increased the flow of promotion so that officers are brought to command rank at a much earlier age, and have eliminated conditions which were long a source of dissatisfaction. The increased provision of ships has made it possible to create fleet dispositions and exercise the ves- sels on the various stations in squadron formations to an extent that has not previously been possible. The excellent effect of the development of fleet work in the Navy is shown in the marked increase in the general efficiency of the Navy and by rapid progress in the matter of marksmanship with all classes of guns. In the successive target practices of the two years last past a general standard of marksmanship has been attained equaling that of any navy in the world, while the world's record for shooting with heavy guns has been more than once raised and again broken. As a result of the responsibilities which grew out of the Spanish war, the need of naval stations outside of the continental limits of the United States became imperative. The long-neglected gateway to the southern coasts of the United States through the West Indian channels has been protected by the formation of a squadron to be permanently stationed in the Caribbean. In order to secure an effective base for the operations of this squadron, ter- ritory for a naval station was secured by treaty provisions with Cuba at Guantanamo and the proper development of this base has been undertaken. When the moderate provision proposed for a naval base at this point is completed, a means of defense at a dis- tance from the shores of the United States will have been provided for the southern coasts, and an important factor in the defense of the entrance of the Isthmian canal established. The needs of the fleet which has done such effective work in Asiatic waters also brought the requirement of a better naval base than that afforded by the station at Cavite. An ideal location has been selected at Olongapo, on Subig Bay, and this easily defended and accessible base will be made the refitting and supply station of United States ships in Asiatic waters. Young Native-Born Men Attracted to the Service. It is also to be noted that under Republican administration, the Navy has been exceptionally successful in attracting the serv- ices of the young men of the nation to a most creditable degree. As late as 1889 it was stated in a report of Secretary of the Navy Tracy that "at the present time crews of our naval vessels are in large part composed of foreigners." For the year 1903, 90.7 per cent, of the enlisted men were citizens of the United States and nearly eighty per cent, were native born. Of the 12,934 enlist- ments effected in 1903 a very large proportion came from the States of the West and Middle West, and the splendid examples of American young manhood who undergo the careful training and education in seamanship and the duties of the man-of-war have developed into a class described by Admiral Dewey as the "best enlisted men in the world." The strength of the Navy on March 31, 1904, consisted of 2,060 officers and 30,751 enlisted men, while the strength of the Marine Corps carries 233 officers and 7,467 enlisted men. It is to be noted that while the expenditures for the building up of the Navy and for providing the necessary accessories for its efficient operation have increased largely in this term of years, the 376 THE NAVY DEPARTMENT. item of expenditure "salaries and expenses" has not had a pro- portionate Increase. Thus the proportion of this item to the whole expenditures for the Navy for the fiscal years ended, respectively, on June 30 in 1894, 1895, 1896, and 1897 was 1.2 per cent in 1894 ; 1.4 per cent, in 1895; 1.4 per cent, in 1896, and 1.1 per cent, in 1897. The years of 1894, 1895, and 1896 were those of Democratic administration, as were also nine months of the fiscal year ended June 30, 1897. Of the six succeeding fiscal years, which are years wholly of Republican administration, the proportion of "salaries and expenses" to total expenditures is, in 1898, 0.7 per cent; 1899, 0.6 per cent; 1900, 0.7 per cent; 1901, 0.7 per cent; 1902, 0.7 per cent; 1903, 0.6 per cent. Our Naval Stations In Cuba. In accordance with the seventh stipulation of the "Piatt Amendment," the Cuban authorities have already transferred to the United States Navy Department two sections' of Cuban territory for the establishment of United States naval and coal- ing stations — one on the south coast and one on the north coast. The southern station is at Guantanamo, and includes a large tract of 18,500 acres of land, bordering on one of the best harbors of Cuba. The northern station is at Bahia Honda., a bay about forty miles east of Habana, and includes a tract of about 1,000 acres. Both stations are highly satisfactory to the United States naval authorities, and the negotiations regarding their selection and transfer have been eminently amicable and cordial on both sides. By the t^rms of the agreements the stations are to be leased to the United States at an annual rental of $2,000, which is universally considered by the United States authorities as a mark of great generosity and good will on the part of the Cubans. Congress has already appropriated $311,000 to begin work on the station at Guantanamo, which is a position of great strategic importance and value, effectually guardinig all the Caribbean ap- proaches, and it will greatly strengthen the most vulnerable coast line of the United States. The station at Bahia Honda, the de- velopment of which will be attended to later, will also prove very useful to this country. Under the stipulation included in the negotiations between the United States and Cuba, there has been placed at the disposal of the Navy Department certain sections of Cuban territory for the establishment of naval and coaling stations. The details of these arrangements have been carried out in a spirit of friendliness and mutual accommodation which has been the source of universal satisfaction. The defense of the independence of Cuba, as well as the protection of the entrance of the Panama Canal and of the Gulf coast of the United States, which has during its history been vulnerable and open to attack from the direction of the Caribbean, has been assured by the far-sighted policy of both governments In setting aside at Guantanamo Bay, on the south coast of Cuba, a tract of land surrounding the best harbor on the coast for the purpose of the establishment of an adequate naval station and base for the Use of the vessels of the United States in these southern waters. In February, 1903, an agreement was signed by the President of the Cuban Republic and by the President of the United States providing for the lease to the United States of land at Guantana- mo, amounting to about 18,500 acres, and at Bahia Honda, a bay some forty miles from Habana on the north coast of Cuba, amounting to about a thousand acres. By a further treaty, ratifi- cations of which were exchanged in Washington October 6, 1903, the annual rental for these lands was fixed at two thousand dol- lars, American gold, so long as the United States should occupy the land. Under the various agreements the United States has full power and jurisdiction to occupy the land for the purposes of naval bases, and amicable arrangements have been made to pre- vent all conflict of jurisdiction. Appropriations of $300,000 have been made available by the Congress of the United States to provide for the inception of the work at Guantanamo, the location at Bahia Honda being reserved for development at a future date as the necessities of the situation develop. The leasehold at Guantanamo is a most gratifying acqui- sition in every respect. A capacious harbor with ample depth of I THE NAVY DEPARTMENT. 377 water Is surrounded by land which may be improved readily for the purposes of a naval station. It is strategically the most im- portant point on the south coast of Cuba, being within easy dis- tance of all the important channels opening into the Caribbean. Its acquisition and the development of a naval station there is the most important step in the national defense that has been taken in recent years, since it will effectually guard the most vulnerable coast line of the United States. As a guaranty of the predomi- nance of the influence of the United States in southern waters the value of this concession is inestimable, as the wisdom of its acqui- sition is undoubted, while the liberality of the terms on which the Government of Cuba effected the lease is an indication of the sub- stantial nature of the friendly relations existing between the two nations. Surveys which have been made at Bahia Honda develop the fact of a large anchorage for deep-draft vessels, and while it is not the intention to inaugurate improvements there at present, the location affords an effective base for coaling from ships and as a point from which effective defense of the waters immediately be- tween Cuba and the United States may be made. I am a protectionist because I think by that policy the work- men of America will be well paid and not underpaid.— Hon. George F. Hoar. Protection creates a home market, -without which the culti- vators of land in America would be but a little better off than our aborigines. — Hon. J. S. Morrill. Our appeal Is not to a false philosophy or vain theories, but to the masses of the American people, the plain, practical people whom Lincoln loved and trusted and whom the Republican Party has always faithfully striven to serve.— Maj. McKInley to Notifica- tion Committee, 1896. r The Republican party stands now, as it has always stood, and al- ways -will stand, for sound money with which to measure the ex- changes of the people; for a dollar that is not only good at home, but good in every market place in the -world.— Major McKInley to Young Men's Republican Club, June 26, 1896. The prosperity of any of us can be best attained by measures that will promote the prosperity of all. The poorest motto upon which an American can act is the motto of "Some men down" and the safest to follow is that of "All men up." — Vice-President Roosevelt at opening of Pan-American Exposition, May 20, 1901. No matter how capital combines or how labor combines or how they differ among themselves, their interests are inseparable and it ought to be plain to both that they can not afford to go out of business in favor of foreign labor and foreign capital by abandon- ing the policy of protection.— Hon. K. L. Hamilton, in Congress, April 14, 1904. That -whenever the need arises there should be a readjustment of the tariff schedules is undoubted; but such changes can with safety be made only by those whose devotion to the principle of a protective tariff is beyond question, for otherwise the charges would amount not to readjustment but to repeal. The readjust- ment when made must maintain and not destroy the protective principle. — President Roosevelt's speech accepting 1904 nomination. f A protective tariff unquestionably increases the rewards of labor (a) by creating a demand for skilled labor, (b) by diversify- ing the kinds of labor in a country and thus differentiating 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 con- fined to the protected industries, but elevates wages in every sphere (a) by the sympathetic effect of high wages generally, and (b) by -withdrawing from the nonprotected industries and from agriculture a surplus of -wage-earners -who would divide and re- duce wages if they competed against each other.— David J. Hill, D. D., Iili. D., president University of Rochester. 378 THE NAVY DEPARTMENT. NAVAL EXPENDITURES. [From the Nautical Gazette.] Certain grumblers in the session of Congress, just closed com- plained of the increased expenditures necessary to give us a navy worthy of the position of our nation in the affairs of the world, and of our growing foreign commerce. Let us see, for the four years 1 1 )< m i-l 003, how our naval expenditures, maintenance, and new ships compare with the expenditure for similar pur- poses by our four most important commercial rivals — Great Britain, Germany, France, and Russia. Greut Britain. 1900 $160,060,000 1901 168,632,000 1902 171,009,000 1903 195,304,000 United States. 1900 $56,378,000 1901 60,985,000 1902 68,302,000 1903 83,116,000 France. 1900 $62,555,000 1901 ' 65,538,000 1902 61,359,000 1903 62,964,000 Russia. 1900 $54,814,000 1901. . . . ". 58,298,000 1902 53,339,000 1903 61,747,000 Germany. 1900 $37,362,000 1901 46,124,000 1902 51,453,000 1903-: 51,260,000 Averaging these four years we get the following result, in round millions: Great Britain $173,000,000 United States 67,000,000 France 63,000,000 Russia 57,000,000 Germany 46,000,000 Is there any reason why we should not take as much care of our world position and our world trade, as does Great Britain, while, as a matter of fact, our exports exceed those of our Trans- Atlantic cousins? Instead of crying out that we are spending too much on our navy, these grumblers (for party purposes) should call for larger expenditures, or, at least keep quiet. Great Britain, with a smaller export trade, is devoting more than two and a half times as much money to the support and upbuilding of her navy as is the United States. THE DEPARTMENT OF THE INTERIOR. 379 DEPARTMENT OF THE INTERIOR. The Land Fraud Investigation. Information that frauds of a serious nature were being perpe- trated against the Government by a combination of land specu- lators located at San Francisco, California, was brought to the attention of the Secretary of the Interior about December, 1902, through a report of one of the agents of the land department. Some of the persons implicated were represented to be men of wealth, of apparent high standing in their business relations, and of great social and political influence. It was charged that these men were defrauding the United States out of large quantities of the public lands by obtaining the same in an unlawful manner under certain provisions of the forest reserve legislation contained in the act of Congress of June 4, 1897 (30 Stat. 11, 34-36), the purpose of which legislation was to allow the exchange of lands held in private ownership within the limits of United States forest reserves for other lands belonging to the United States, situated outside of such reserves. By the creation of forest reserves many private owners of land within the boundaries thereof were placed in a state of isolation from the markets and business centers, and from church, school, and social advantages, and the value of their lands was thereby necessarily impaired. There was no longer hope of the continuing and increasing settlement of the surround- ing lands, such as was reasonably expected and anticipated when their titles were acquired. It was with a view to relieving the situation thus described with respect to the pioneer settlers of the public domain, and to provide a means whereby the Government might become the sole owner of all the lands within such reserves, and thereby be en- abled to improve and protect the forests therein for the purpose of securing conditions favorable to a continuous' water flow and to a permanent supply of timber for the use and necessities of the citizens of the United States, that the legislation referred to was enacted. The information touching the alleged fradulent transactions tended strongly to show that this legislation, enacted in the inter- est of the public and for the most laudable purposes, was being perverted to the unlawful use of unscrupulous and scheming men, whose sole object was to increase their own possessions by de- frauding the Government of its public lands. The Secretary of the Interior at once placed the matter in the hands of competent agents, with instructions to make a most thor- ough and exhaustive investigation thereof and to probe every clue to wrongdoing to the bottom, regardless of any influence, social, political, or otherwise, that might be possessed by the parties im- plicated. The investigation was commenced early in January, 1903, and notwithstanding many great and almost insurmountable difficulties which had to be met and overcome, and the constant efforts on behalf of the persons involved to defeat the investiga- tion and to control its issue favorably to themselves, the work proceeded without cessation, under the personal direction of the Secretary of the Interior, with the result that in February last Frederick A. Hyde and John A. Benson, of San Francisco, Califor- nia, the leading spirits in the combination, together with others implicated with them, were indicted by the grand jury of the Dis- trict of Columbia, under section 5440 of the Revised Statutes, for conspiracy to defraud the United States. The evidence procured in the investigation showed that these parties had been engaged for several years in securing and attempting to secure titles to and the possession and use of large tracts of the public lands of the United States fn exchange for State school lands lying within the limits of United States forest reserves in the States of Cali- fornia and Oregon, the titles to which school lands "were acquired by said parties from said States contrary to the laws thereof re- lating to the disposal of school lands, and in a grossly illegal and fraudulent manner, by means of false and forged affidavits and other documents required by the laws of said States to be executed 380 1I1K DKFABTMENT OF THE INTERIOR. and filed in connection with the purchase of school lands; and also by making, and securing to be made, false and forged relin- quishments to the United States of the lands thus fraudulently obtained from said States, and by selecting other lands belonging to the United States outside of forest reserves in lieu of the lands so fraudulently obtained and relinquished to the United States. While several hundred thousand acres of the public lands, sit- uated in various of the public land States and in the Territories of Arizona and New Mexico, are involved, only about thirty or forty thousand acres had been patented by the Government when the fraud was discovered. The issue of patents for such lands was immediately stopped, and the Government is therefore in no danger of further loss of its public lands through the said fraudu- lent scheme. As a further result of the investigation John A. Benson has been indicted for bribery of public officials at Washington in con- nection with these fraudulent transactions. The indictments, both for the conspiracy and for the bribery, are now being prosecuted with the utmost possible vigor by the Department of Justice. Immediately after the indictments were found the defendants were arrested — two in the State of Cali- fornia, one in the State of New York, and another in the District of Columbia. Proceedings under Section 1014 of the Revised Statutes have been instituted in California and New York to secure the removal of the defendants arrested in those States to the Dis- trict of Columbia for trial. The investigation and prosecution have had the effect to con- vince the public mind that the Secretary of the Interior, as the head of the land department, is determined to guard the interests of the people with the greatest care and watchfulness in the mat- ter of the disposal of the public lands, and to preserve the same for the benefit of those entitled to them under the law ; and also to show that the Government is determined to punish all persons who seek to acquire its public lands by means of forgery, perjury, bribery, or other unlawful means. The Attorney-General has taken hold of the prosecution with vigor and determination, and the people need have no fear that any of the guilty parties will be allowed to escape just punish- ment for their misdeeds. That the results accomplished will have a beneficial effect in deterring others from entering upon similar fraudulent practices there can be no doubt, nor can the full extent of the good done'be at this time estimated. A copy of the indictment, the first count whereof describes in detail the fraudulent methods employed by the conspirators, is herewith submitted. Frauds of a much less serious nature and extent have also been perpetrated in the States of California, Oregon, and Wash- ington by other parties in attempts to secure title to timber lands belonging to the United States, under legislation enacted for the disposal of such lands. (Act June 3, 1878, 20 Stat. 89.) A number of indictments have been found against the parties engaged in these frauds, and the cases are now being pressed for trial in the courts, with the confident expectation that convictions will be had. Care of the Indians. The civilization of the American Indian is being accomplished through educational processes which have been wonderfully devel- oped during the past seven years. A continuous policy has been pursued, and results are commensurate with the time, thought, and money which have been expended. Education to work has been the dominant factor. Literary training has been given the subordinate place. All Indian schools have been made industrial centers from which are annually radiating educated Indian boys and girls. They return in a great many instances to their reserva- tion homes and allotments carrying the seeds of industry and thrift, which are beginning to bear fruit. Seven years ago 89,000 Indians out of a total of 183,000 dressed as citizens, while to-day 112,000 are thus habited. Then there were 38,000 who could read, and now there are 50,000, and 66,000. who have sufficient knowl- edge of the language to use it familiarly in ordinary business life. There were conducted in 1897 234 schools, with an enrollment of 23,000 pupils, and to-day there are close to 30,000 whose names THE DEPARTMENT OF THE INTERIOR. 381 are on the school rolls. They are taught by 2,500 teachers and Instructors. In no phase of the Indian question has greater progress been made than in the education of Indian children. Careful instruc- tion % adapted to future environment is taught in 257 schools which a generous Government has provided for its wards. These estab- lishments are on the collossal scale of Haskell and Chilocco, with seven or eight hundred bright Indian boys and girls as assiduously pursuing their studies as their white friends, or on the modest plane of a little day school of twenty-five pupils, tucked away in a mountain gulch on an Indian reservation far from railroad and civilization. Each is working out the destiny of the Indian. All the energies of the administration have been to civilize the Indian — to prepare him for citizenship and enlarge his capacity to enjoy its blessings. Indian schools are laying the broad founda- tion for this result, and unnumbered individual instances are pro- duced showing that the American Indian is fast adapting himself to the manners, customs, and habits of the whites. The educated Indian as a citizen and a voter, as a farmer and a worker, is reaching the standard . of the average citizen of our country. Reservation barriers are being broken down, and the great tide of civilization is sweeping into and around the lands of the Red Man. Modest as well as splendid homes and cities are springing up on the old reservations. The Indian is thus brought in contact and, after education, into a portion of that civilization. Business ad- ministration of schools and agencies has been substituted for the haphazard policies of the past. Men of education, experience, and business qualifications now control the destinies of the agencies and schools. These men are directing the energies of returned Indian pupils, and as a result ignorance, thriftlessness, and their attend- ant evils are being banished. Civilized homes and contented citi- zens can be the only result. The education of the Indian costs about four million dollars per annum. It is money well spent, in that it is uplifting a race of native-born people to the high grade of citizens. It is annually sending back among the whilom warriors, bucks, and squaws of the older generation 2,000 or more educated, civilized youths to leaven the old mass, to break down tribal customs, and build up a sturdy yeomanry. It is dotting the West with deserted army posts, costing millions to build, equip, and maintain, turning bar- racks into dormitories, and cannon into plow shares. The rattle of the saber and the clank of war have given way to the busy hum of the shops and the cheerful call of the red plow boy, and instead of sending out a dashing troop to carry desolation and carnage to the Indian home, now emerges the educated Indian to take his place in our civilization as a wage-earner and peaceful worker in the shops and on the farm. During the past four years the Government has been engaged in settling the affairs of the Five Civilized Tribes in Indian Ter- ritory, under agreements with the several tribes and legislation by Cdngress. This necessitated the resurvey, appraisement, and classification of nineteen and a half millions of acres, the largest estate ever settled in the history of the world, a Territory about the size of the State of Indiana, and an inquiry into the rights of two hundred and fifty thousand claimants to citizenship, resulting in favorable action on about one hundred and thirty thousand cases, allotments having been made to about ^wo-thirds of these. Two hundred and ninety-seven towns have been surveyed and the lots appraised and scheduled preparatory to sale, and it is ex- pected that at least five millions will be realized for the tribes. There being large tracts of coal lands in the Choctaw and Chicka- saw Nations, four hundred and fifty thousand acres have been set aside and are soon to be sold for the benefit of the two tribes, the value being estimated at several millions. Many and far-reaching legal questions have been solved or are in process of solution in connection with this work, to the end that all the affairs of these tribes may be finally closed up when their governments expire by limitation of law in March, 1906, and their citizens become merged with the general citizenship of the Nation. As a result of the recent laws relating to Oklahoma and Indian Territories there have been constructed in that. section of country Within the past four years about 2,000 miles of new railroad. 3S2 I 111! HI.I'AKI MINI 01 IHK nviKiuoii. opening to market the resources of one of the most richly endowed portions of the United states, embracing extensive coal and as- phalt ticlds : and nearly every town and handet in that broad region is connected hy telephone with the surrounding States. Since the first of October, $01, over 2, families. The further quantity of 2300,000 acres of Indian reservation lands is to he disposed of within the next two or three years. In the matter of the occupancy of Indian lands, a remarkable reform has been accomplished witlfcn the past few years. Only a few years ago Indian reservations were open to encroachment by the whites and were subject to continual trespassing. Now prac- tically every acre of surplus tribal land is under lease, yielding the Indians of the several reservations a revenue of more than a million and a half dollars annually. Under the act of 1902, authorizing the sale of lands of deceased Indians, the Department of the Interior has disposed of, at fair prices to the Indian heirs, about one thousand five hundred sep- arate tracts, aggregating 150,000 acres, situated principally in the middle west, making 1,500 additional homes to meet the wants of our ever increasing population. During the present administration no less than 15,000 leases of Indian allotments have been executed, and approved by the Secre- tary of the Interior, covering an area of about a million and a quarter acres, and yielding a revenue to individual Indians of something like $600,000 annually, and providing temporary homes for thousands of settlers. Pensions. In the administration of the pension laws, the Pension Bureau, under Republican administration, has always been liberal and generous to the brave defenders of our country. The Republican party has been the devoted and consistent friend of the soldier and his dependents, and this fact stands forth prominently in the his- tory of pension legislation ever since 1862. Liberal and beneficent laws have been enacted, and the present pension system, which has been built up by the different adminis- trations, is the best and most liberal in the world. It embraces within its provisions the soldier and sailor who contracted his disabilities in the service, and grants relief to 450,000 survivors of the Civil War who are incapacitated for earning a support from causes which have arisen since the war. Besides these, nearly 300,000 widows and dependent relatives are receiving the benefits of the pension laws. Notwithstanding the fact that the annual death rate of pen- sioners is about 45,000 per year, the allowance of new pensions each year are nearly sufficient to prevent any material decrease in the number of pensioners, and in the -amount of the annual payments. Starting with 126,722 pensioners in 1866, the roll has steadily increased under the beneficent legislation of Congress, and from July to October, 1902, the number of pensioners exceeded one million. There has been only a slight decrease since that date, and it would not be surprising if the roll should again exceed one million. k Since 1866 the total payments for pensrons have been over $3,000,000,000, and the magnitude of the pension roll both as to the number of beneficiaries and the amount paid has excited the wonder and admiration of all the nations of the world. The details of the pension system and pension legislation of the United States are discussed at length on page 403. Our opponents now appeal for confidence on the ground that if triumphant they may be trusted to prove false to every principle which in the last eight years they have laid down as vital, and to leave undisturbed those very acts of the administration because of which they ask that the administration itself be driven from power. — President Roosevelt's speech accepting 1004 nomination. THE DEPARTMENT OF AGRICULTURE. * 383 THE DEPARTMENT OF AGRICULTURE. I' Work of the MeKinley-Roosevelt Administration in Behalf of the Farmer. During the last seven years Presidents Mcl^jnley and Roose- velt have aimed to bring the Department of Agriculture to the help [of our farmers in all sections of the country, and have instructed [the Secretary of Agriculture to use all endeavors to help the tiller of the soil toward greater efficiency and more economic produc- tion ; to make the American acre more potent in growing crops. The Congress during the last seven years has doubled the amount of money invested in agricultural research and demonstration, to give the American farmers help in their operations on the farm, to feed our people well and cheaply, and enable them to compete with the outside world. It has provided for two thou- j sand scientists, specialists in their respective lines, who are in touch with our farmers in all sections of the country, gathering information and preparing it for issue in departmental publica- tions, of which twelve million pieces are given out annually and go into our country homes, dealing directly with what is upper- most in the minds of our growers, of plants and animals at the time of publication. Science Applied to Development of Agriculture. 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 departmental work. Graduates of our agricultural colleges are drafted into the Department of Agriculture and prepared for scientific re- search along the lines demanded by the producers of our country under all our varied conditions. Within the last seven years five hundred young men have had postgraduate instruction in the sciences of agriculture. The Department of Agriculture and the State experiment stations are actively cooperating with re- gard to the unsolved problems that affect the farmer throughout our State and Territories and in the islands of the sea that have lately come into our possession. New markets for our surplus production 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 know- ledge with regard to production may mitigate the evils of specu- lation. Inquiry is also being made into the productions of com- peting 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 pro- duction of articles we have been importing from foreign countries. During the last seven years there has been an increase in the production of sugar from beets of over two hundred thousand tons in quantity and over sixteen million dollars in value. Seven 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 consumption and foreign markets are being sought for the surplus. There was an increase in the production of rice from 115,000,000 pounds in 1898 to 400,000,000 pounds in 1903. 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 fifteen million dollars a year to foreign coun- tries. Our explorers have searched foreign lands for grains, le- gumes, 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 Regions of our 384 THJE DKI'AKTMENT OF AGRICULTl'KK. i -Dmitry through the introduction of plants that are at home where the rainfall is light. Millions of bushels are being grown in regions that have heretofore been unproductive. Eradication of Diseases of Farm Animals and Products. The Federal Government is studying the diseases of domestic animals with a view to their complete eradication. Our animals ami their products go to foreign countries with bills of health- fulness. The American meats are the most wholesome in the world, and the world is beginning to find it out. An imported foreign disease or domestic animals was promptly stamped out within a year at an expenditure of three hundred thousand dol- lars, to prevent it from spreading throughout the country among our herds and flocks. Rigid inspection against foreign countries having animal diseases is maintained at our ports of entry, in order to protect the health of our domestic animals. Within the last seven years the Government lias become thoroughly equipped to deal with plant diseases. The loss of half a million dollars annually was stopped by pathological examination 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 been 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. A Central American weevil threatens to destroy the cotton crop of the United States. The Federal Government, in searching the world for a remedy, has found on the table-lands of Guatemala an ant which gives promise of destroying the pest. The San Jose scale, which was destroying our orchards, is now being checked by an insect enemy found near the Great Wall of China. The black scale, that attacks orange and lemon groves in Cali- fornia, is being exterminated by a parasitic fly brought from South Africa. 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 Farmer and the Balance of Trade. During the thirteen years, 1890-1902, the average annual ex- cess of domestic exports over imports amounted to $275,000,000. and during the same time the annual average in favor of farm products was $337,000,000, from which it is apparent that there was an average annual adverse balance of trade in products other than those of the farm amounting to $62,000,000, which the farmers offset and had left $275,000,000 to the credit of themselves and the country. Taking the business of 1903, the comparison is much more favorable to the farmers than during the preceding thirteen-year period, since the value of domestic exports over imports was $367,000,000, the entire trade being included, while the excess for farm products was $422,000,000, which was sufficient not only to offset the unfavorable balance of trade of $56,000,000 in products other than those of the farm, but to leave, as above stated, the enormous favorable balance of $367,000,000. THE DEPARTMENT OF AGRICULTURE. 385 During the last fourteen years there was a balance of trade in favor of farm products, without excepting any year, that amounted to $4,806,000,000. Against this was an adverse balance of trade in products other than those of the farm of $865,000,000, and the farmers not only canceled this immense obligation, but had enough left to place $3,940,000,000 to the credit of the nation when the books of international exchange were balanced. These figures tersely express the immense national reserve sustaining power of the farmers of the country under present quantities of production. It is the farmers who have paid the foreign bondholders. The health of our people is being safeguarded by inquiry into importations of food from foreign countries that contain sub- stances deleterious to health. The United States is no longer the dumping ground for food stuffs that are forbidden sale in the countries where they originate. An aim of the Department is to make the American independent with regard to everything that can be produced in our latitudes. Corps of scientists have been placed in each of the new island groups that have lately come under our jurisdiction for the pur- pose of helping them to produce what can not be grown in tbe continental United States. The Department of Agriculture is furnishing information re- garding the requirements and possibilities of irrigation, both in the arid regions of the United States and as an aid to agriculture in the humid East. This inquiry determines the amount of water needed to give the best results, the time when it should be ap- plied, and the methods of application best suited to different lo- calities and different crops. The evils of too much water, resulting in the ruin of large areas which were highly productive a few years ago, are being investigated, with a view to preventing not only the ruining of crops which get too much water, but of those on equally fertile soil which are deprived of the necessary water supply. The economic use of water, and the introduction of plants from foreign countries where the rainfall is light, are extending crop growing over large areas that have hitherto been unpro- ductive. See "Agricultural Prosperity," page 136, and "Value of the Factory to the Farmer," page 148. I believe it is a good deal better to open tbe mills of the United States to the labor of America than to open the mints of the United States to the silver of the world. — Maj. McKinley, to his comrades of the 23d Ohio Regiment, at Canton, August 12, 1896. A tax, and a stiff one, upon foreign manufacturers would be one of the most popular as well as one of the wisest imposts ever levied in this country. Either the foreign manufacturer would pay the duty or the home manufacturer would get the trade- London Daily Telegraph, December 10, 1903. Judging by the history of the last 12 years, down to this very month, Is there justification for believing that under similar cir- cumstances and with similar initial differences of opinion, our opponents would have achieved any practical result? — President Roosevelt's speech accepting 1904 nomination. Laying aside the fact that trusts are organized under English free trade as well as German, Austrian, and American protection, it is susceptible of absolute demonstration that American free trade would operate in the interests of trusts and against the in- terest of American labor.— lion. E. L. Hamilton, in Congress, April 14, 1904. Under our policy of free trade we have lost that commercial and industrial superiority we acquired under the policy of strict protection. Our policy of direct taxation bears heavily upon our industries and reacts on the working classes in reduction of wages and employment. Our agriculture has been ruined and our indus- tries are struggling hard for existence. Other nations, under a policy of strict protection, are beating us In the race of competi- tion, not only in neutral, but in our own markets.-— Sir Guilford L. Molesworth on Free Trade in England. 386 DEPARTMENT OF COMMERCE AND LABOR. DEPARTHENT OF COHflERCE AND LABOR. The act creating the Department of Commerce and Labor was approved February 14, l ( .»o:;, .uul lion. George B. Cortelyou, form- erly Secretary to the President, was made Secretary of Commerce and Labor. On July 1, 1903, the following offices were trans- ferred from other departments and made a part of the Depart- ment of Commerce and Labor: The Light-House Board, the Light-House Establishment, the Steamboat-Inspection Service, the Bureau of Navigation, the United States Shipping Commissioners, the National Bureau of Standards, the Coast and Geodetic Survey, the Commissioner-General of Immigration, the Commissioners of Immigration, the Bureau of Immigration, the Immigration Service at Large, the Bureau of Statistics, the Census Office, the Depart- ment of Labor, the Fish Commission, the Office of Commissioner of Fish and Fisheries, the Bureau of Foreign Commerce, the Alaskan Fur-Seal and Salmon Fisheries. The personnel of the Department on that date comprised 10,125 employees, of which number 1,289 were on duty in Wash- ington and 8,836 in the country at large. The act creating the Department having become a law after the preparation of the usual appropriation bills, the sum appro- priated for the services of the fiscal year 1903-4 was limited. Notwithstanding that fact, material progress has been made by this new Department in developing and enlarging the scope of tbe work of the bureaus assigned to it and in preparing for thorough and valuable work by the newly created bureaus and divisions. The Census Office has perfected its plans for a taking of the census of manufactures in 1905, which will be the first occasion on which a Federal census relating to any important industry or factor of our national life was made in any other than the decennial year or in connection with the decennial census. Un- der the law a census of manufactures is hereafter to be taken every five years. The work of the Bureau of Statistics has been materially broadened and its value increased by a consolidation of the Bureau of Foreign Commerce, formerly of the State Department, with it. The reports of the United States consuls in various parts of the world on commerce and commercial matters are edited and published by the Bureau of Statistics in conjunction with its sta- tistics of our own import and export trade and domestic produc- tions. By this combination of the information furnished by the consuls and that of the Bureau of Statistics, the value of their work has been materially increased. Under authority granted by a recent act of Congress, a Division of Foreign Tariffs is to be established by the Bureau of Statistics, from which information regarding the tariffs of the various countries of the world can be obtained. Reports of the consuls are issued in a daily bulletin and distributed to the press, the great commercial organizations of the country, and to such individuals engaged in manufacturing and export trade as may find them of value in their studies of condi- tions in foreign markets or opportunities for expanding their sales abroad. The act creating the Department authorized the establishment of a Bureau of Manufactures, but owing to the inadequacy of the appropriation made after the passage of the bill in the closing days of the session this could not be accomplished during the last fiscal year, but a sufficient appropriation has been made to justify its establishment early in the new fiscal year. The Bureau of Fisheries has enlarged and extended its work and is giving special attention to the fisheries in Alaska, with the purpose of taking such steps as will prevent the destruction of the salmon fisheries of that important section of the United States — an industry which is of great importance at the present time, and which with proper care and protection will continue as a producer of great food supplies and great wealth. DEPARTMENT OE COMMERCE AND LABOR. 387 The Bureau of Labor. A large part of the office and field force of the Bureau of Labor has been engaged during the past year in the collection of data for the eighteenth annual report of the Bureau (the report for 1903) and in its preparation. This report presents the re- sults of an extended investigation into the cost of living of workingmen's families and the retail price of staple articles of food used by such families. That part of the report which relates to retail prices is the first extended investigation of the kind that has been made in this country. The previous price studies, cover- ing a period of years, have dealt solely with wholesale prices, which of course do not represent accurately the cost to the small consumer. The second annual report on the course of wholesale prices was \made in the Bureau's bulletin for March, 1903. While it is considered advisable to continue this index of wholesale prices, the data relative to retail prices contained in the eighteenth an- nual report should be used in preference to wholesale prices in any study of the cost of living of workingmen's families. In addition to the preparation of the eighteenth annual report and other work done by the Bureau, its bulletin has been issued regularly every other month. Each number of the bulletin con- tains, in addition to one or more special articles, timely data Relative to agreements between employers and employes, digests of recent reports of State bureaus of labor statistics, digests of recent foreign statistical publications, court decisions affecting labor, and laws of various states relating to labor. As the re- sult of investigations in progress or completed, forthcoming bulle- tins will contain the following special articles : Labor Unions and British Industry. Labor Conditions in Australia. Labor Conditions in the Philippine Islands. The Revival of Handicrafts in the United States. Trade Union Movement among the Coal Mine Workers of the United States. Other investigations are being carried on by the Bureau, and the results will appear either in the bulletins or in special re- ports. Among the latter may be mentioned a report on re- striction of output by employers and employees in the United States, Great Britain, and the continent of Europe; a report on the labor of children in the principal industrial States of the Union; a report of coal-mine labor in Europe; and also a com- pilation of the labor laws of the United States, which revises and brings down to date the second special report of the Bureau, published in 1896. Reports have already been issued upon the condition of the laboring classes of the Territory of Hawaii. Active work on the preparation of the nineteenth annual re- port of the Bureau and the collection of data therefor was begun some months ago, and rapid progress is being made. This re- port, which should be available — in summary form, at least — in the spring of 1904, will comprise the largest and most repre- sentative collection of data relative to wages ever undertaken. The period covered will be the years from 1890 to 1903, inclusive, and it is expected that every important manufacturing industry and every large industrial center in the United States will be adequately represented. One of the first official acts of the Secretary of Commerce and Labor on the day the Bureau of Labor was transferred to this Department was to direct the employment of a special agent to make an investigation in England as to the effect of trade union- ism on British industries. The agent's report, which is to appear in an early issue of the bulletin, will commend itself to the at- tention of those interested in this subject. In view of the atten- tion which the subject of trade unionism commands, and the efforts made by employers and employees to improve their rela- te- prevent strikes and other industrial disturbances, and to pro- vide a ready and certain method by which disagreements can be adjusted, it is believed that this report, explaining the methods adopted in Great Britain and the lessons they teach, will prove a valuable contribution to the literature of sociology and may offer some suggestions which can be profitably adopted in our own industrial system. 388 DKl'ARTMENT OF COMMKRt'K AND I.AlloK. Commenting on the Bureau of Labor and its work, Secretary (ortelyou said in bis annual report: "The Bureau of Labor bas rendered effective service in its special field. Tbe Department will utilize to (he fullest extent the experience that bas been gained in this important Bureau, and will seek to make more ;unl more available the information it can obtain and to secure larger results from its work. Not only is there at present a bureau doing work pertaining" exclusively to labor, but it is pro- posed to make every other bureau in the Department do its share, so far as its organization will permit, to 'foster, promote and develop * * * the labor interests, * * * of the United States.' The Department's statistics on labor, as well as its statistics on other subjects, will be gathered fairly, given out fairly, and as far as possible will be made to represent accurately conditions found to exist. Whatever rearrangement may be found necessary in any of the duties now assigned to the Bureau, the great interests of labor and of industry in their broadest sense will be subserved. The new Department should not be ex- pected to do impossible things. If it can be helpful to any con- siderable extent in improving existing relations as between em- ployer and employee ; if its publications can furnish facts from which there may come fuller understanding ; if, having gained the confidence of the people, it can, from time to time, point the way to better feeling and broader views as between contending interests, it will accomplish one of the most beneficent results of its organization. "The Department is empowered to acquire and diffuse among the people of the United States useful information on subjects connected with labor, in the most general and comprehensive sense of the word, especially regarding its relation to capital, such as tbe hours of labor and tbe earnings of laboring men and women ; tbe means in general of promoting their material, social, intellectual, and moral condition ; the elements of cost, or ap- proximate cost, of products ; the comparative cost of living, and the kind of living ; the articles controlled by trusts or other combinations of capital, business operations, or labor, and the effect such trusts or other combinations have on production and prices; the causes of and facts relating to all controversies ami disputes between employers and employees. "Capitalists and wage receivers are to be treated on an equality, for in these matters relating to labor and capital and to their respective representatives tbe Department must stand in the po- sition of an educational office, collecting and publishing such in- formation as will enable each party to understand more fully the prevailing conditions. "The Department has no executive functions relative to the settlement of labor disputes. It can not interfere on behalf of either employer or employee in controversies arising between them. "Whatever enables either party to secure necessary information falls within the authority of law. That authority does warrant the Department in publishing any information drawn from condi- tions in this or in other countries which will be helpful in bring- ing about fuller knowledge and better understanding. Employer and employee are dependent upon each other, and tbe recognition of the welfare of both, and of the means of assisting in securing that welfare, will be assiduously cultivated. All possible measures of an educational nature will be employed to induce the repre- sentatives of labor and capital to conduct their affairs on a basis which shall not interfere with the general welfare of those not engaged in the disputes. This general policy must commend itself to the wisdom of employer and employee alike, as it is in the interests of both." The Bureau of Corporations. The Bureau of Corporations, created by this act, is charged with the duty of gathering information on the subject of inter- state and foreign commerce, to investigate the organization, con- duct, and management of corporations and joint stock companies engaged in such commerce (other than common carriers subject to the jurisdiction of the Interstate Commerce Commission), to report the results of such investigations to the President through the Secretary of Commerce and Labor, and to compile and pub- DEPARTMENT OE COMMERCE AND LABOR. 389 useful information concerning corporations engaged in in- terstate and foreign commerce, including insurance companies. As an aid to investigation, the Commissioner of Corporations is given like powers to those granted the Interstate Commerce Commission. Since the organization of the Bureau on L\ ' uary 2G, 1903, ex- haustive studies have been undertaken in the lollowing fields: 1. A systematic study of the law creating the Bureau 2. The general subject of interstate commerce and the powers of the Federal Government in relation thereto. 3. The decisions of the Federal courts relating to corporations engaged in interstate commerce which are subject to the juris- diction of the Bureau. 4. The jurisdiction and powers of the Interstate Commerce Commission. 5. The decisions of the Federal courts in relation to trade conspiracies, monopolies, and combinations in restraint of trade. 6. The corporation laws of the various States and Territories, particularly those relating to the annual reports and the returns for taxation purposes required from such corporations. 7. The methods of taxing corporations in each State and the decisions relating to the taxation of interstate commerce. 8. The effect of industrial combinations upon the prices of the commodities sold by such combinations, the effect of tariff duties upon the prices of commodities subject to such duties, and the reasons for the difference, if any exists, between the domestic and foreign prices of commodities manufactured by the protected industrial combinations of this country. 9. The powers of the Federal Government in relation to in- surance companies. From a preliminary study, it became apparent that the public records of States and Territories, the reports of special commit- tees appointed under State or Federal authority, the files of cer- tain Government offices, and various commercial and industrial publications contained a fund of valuable information on the sub- jects to be investigated. This information is being brought to- gether, analyzed, and properly indexed, in order that the facts already known may be utilized in planning more specific inquiries. An investigation of the beef trust is also in progress ; the details regarding this investigation are stated under the discus- sion relative to trusts, on another page of this volume. Regarding the functions and work of this important new Bureau Secretary Cortelyou said in his annual report for 1903: "The creation of the Bureau was viewed by some with alarm, or at least with suspicion. It was feared that the powers granted might be hastily or inadvisedly used to the injury of legiti- mate enterprise. No such purpose actuated the framers of the law ; no such purpose will control its administration. "Many corporations have been granted important privileges by the public, and some of these corporations, through consolidation of capital, have acquired extensive influence in the industrial af- fairs of the country. Such privileges, if used improperly, not only retard the progress of industry, but frequently breed corruption in politics. The legislation creating the Bureau of Corporations was the expression of a popular belief that further safeguards should be provided for the regulation of business enterprises to which special privileges have been granted by the people. Pub- licity will disclose unfair dealing, dishonesty, and corruption ; but if properly enforced it will not disclose to trade competitors the fruits of individual thrift and initiative^ nor permit in any other manner the invasion of private rights*" Work of the Immigration Bureau. There is no branch of the administrative service which ex- hibits a more pronounced and practically useful advance during the present administration than the Immigration Service. This advance is due both to legislation and to the intelligent and fear- less administration of those laws by the officers responsible therefor. On March 3d, 1903, a general immigration law was passed and received the executive approval. This law was a combined codification of all preceding legislation upon the subject, with cer- tain entirely new measures, either suggested by administrative defects in the preceding laws or by the growing necessity of pro- tecting the people of this country from the dangers of an indis- criminate immigration of aliens. To provide an adequate fund to defray the cost of administer- 390 DEPARTMENT OF COMMERCE AND LABOR. ing these laws the head tax imposed upon transportation lines bringing aliens to the United States was increased from one to two dollars per capita. As a result commodious struct urea have been erected for the humane accommodation of aliens pending examination and for their care during temporary sickness. The official force at the ports of entry has been enlarged in each in- stance so as to facilitate a prompt and efficient inspection of such persons, the admission of those entitled to land, and the rejection and deportation of those not so entitled. To the list of those already excluded by law there were added epileptics, those who have been insane within Ave years prior to arrival, those who have had two or more attacks of insanity at any time previously, professional beggars, anarchists, prostitutes, procurers of prostitutes, and those who have been, within one year prior to their coming, excluded from admission upon the ground that they had come in pursuance of some promise or assurance, given prior to their embarkation, of work awaiting them in this country. The exception from the excluded classes of professionals under the old law was restricted under the new act to those be- longing to a "learned profession." That portion of the new act which related to the exclusion of what are known as alien con- tract laborers was enlarged so as to embrace within that term not only those coming under contract but those whose coming is induced by offers, solicitations, promises, or agreements to per- form labor in this country. Another new feature introduced by the act of 1903 is the im- position of a penalty of $100 upon any transportation agency knowingly and wilfully bringing any diseased alien to the United States for each such alien so brought, and to make such penalty effective the act provides that such fine when imposed shall not be remitted. Prior to that time the only penalty imposed on a vessel which thus wilfully endangered the health of the people of this country by bringing diseased aliens in contact with healthy ones was the obligation to return such diseased aliens at its own expense. There are many other respects too numerous to mention in detail in which the new act strengthened the hands of the ad- ministrative branch of the government and enabled it to prevent the landing in this country of objectionable aliens. The time within which aliens found unlawfully in the United States could be deported at the expense of the vessel or vessels on which they were brought was extended from one to two years, and authority was given to appoint inspectors to canvass the public institutions of the various States with a view to ascertaining how many aliens were detained therein for the purpose either of punishment, of treatment for disease, or of free support, thus enabling the admin- istrative branch of the government to discover such persons there- in as could be deported under the two year limit. Perhaps the most striking feature of the act is that portion which relates to the exclusion or expulsion of anarchists, a feature of the law which in its application has been found to be efficacious and which the Supreme Court lias had occasion to declare con- stitutional and therefore vital. One other feature of the act is especially noteworthy in taking away the privilege theretofore enjoyed by diseased aliens of tem- porary treatment in hospitals of this country. This has in great measure destroyed the temptation of such persons to embark for the United States, and, coupled with a fine imposed in such cases on the transportation company, removes the inducement of such persons to attempt to come to this country. Under the present administration the enforcement of the laws has kept pace in progress and efficiency with improved legislation. Stations have been established at the principal ports of our in- sular possessions and efficient and experienced officers have been placed in charge thereof. The most notable feature in such prog- ress, however, is in the organization of an official force along the Canadian boundary, which for the first time controls the influx of aliens from Canada into the United States. Within the past three years the enforcement of these laws on such boundary has become as effective as at the best equipped and administered port upon our seacoast. Under an agreement with the Canadian transportation lines, to avoid impeding travel at the boundary to make inspection there, no alien can secure transportation over DEPARTMENT OF COMMERCE AND LABOR. 391 such lines into the United States except upon the production of a certificate from the Commissioner of Immigration at Montreal showing that he has been found admissible and that the head tax for his admission will be paid. To show how efficient this service is, during the year ending June 30, 1903, 5,158 aliens were ex- cluded along the Canadian border, 1,439 of whom were suffering with dangerous contagious diseases. During the same period there were excluded, in the aggregate, at ports of the United States, 8,769, of whom 1,773 were diseased persons. These figures will give some idea of the relative importance of the Canadian border service, which had no existence prior to 1901. During tho same period officers along the said border arrested 31 persons engaged in smuggling aliens unlawfully into the United States, most of whom were convicted, some fined, some imprisoned, and some were subjected to both penalties. Since the passage of the said act, moreover, a large number of aliens have been denied admission as contract laborers and a number of suits have been instituted against the contractors in this country, in which every effort is being made to convict the offenders, a valuable aid to which is found in that provision of the new act which allows the detention of the aliens whose services are contracted for for use as witnesses. For the first time in the administration of the immigration laws their terms have been applied to Chinese aliens, by means of which a large number of such persons have been excluded be- cause they were afflicted with dangerous contagious diseases. On April 29, 1902, all existing Chinese exclusion laws, each of which had been enacted for the limited period of ten years from date of enactment, and which were about to expire, were re- enacted and extended to the insular possessions of the United States and to intercourse between such possessions and the con- tinental portion of this country. This law contained no limita- tion of time as to its duration. It is permanent until repealed. The provision in said law which limited the reenactment to such portions of prior acts as were not inconsistent with treaty obliga- tions was, by the last Congress, repealed, leaving the act absolute and permanent. As an evidence of the purpose, fostered by this administration, to enforce these laws, attention may be called to the fact that the meager appropriations made during former administrations and amounting to between $100,000 and $200,000 per annum was in- creased, for the fiscal year 1904, to $500,000, and for the year 1905 to $600,000. The administration of the Chinese exclusion law, thus aided, has been no less energetic, efficient and fearless than the enforce- ment of the immigration laws. A notable instance of this will be found in the means adopted to prevent the unlawful entry of Chinese persons from Canada into the United States. Congress had made exclusive ports of entry on the seacoast, but conferred upon the Secretary of the Treasury authority to open additional ports. This authority was exercised along the Canadian border without any condition or precaution, and the result was that many hundred Chinese who were brought to Canada, after remaining there a short time, entered the United States across the border, either surreptitiously or in open defiance of the law. The latter course was usually taken to insure their examination before United States commissioners, where the advantage of the training they had received in Canada was made apparent by the large number annually discharged, many of them as American citizens, upon the score that they had proved birth in this country. By an arrangement with the Canadian transportation line which brings Chinese persons through Canada to the. United States, se- cured through an intimation that unless such arrangement was made the border would be closed and the company deprived of the outgoing travel from the United States that it had long en- joyed, all Chinese destined to the United States are brought direct to one of four specified ports on the Canadian boundary and there delivered to inspection officers, who determine their right to admission before they can secure an opportunity to coach, the expense of maintenance during detention being borne by the said company, as well as the expense of returning those who are re- jected. As a result the unlawful entry of Chinese across the Canadian boundary has virtually ceased, and, as illustrative of 392 1>K!\\IU Ml.N I <>l (OMMKRCK AM) I.AHOK. the efficiency of tho present system, it may ho stated that from 8 single one of said border ports there were recently returned to China, at the expense of the Canadian Pacific Railroad Company, is? Chinese persons' who fals/ly represented themselves as having been born in the United States and being citizens thereof. Be- sides this, many more arrests have been made of those unlaw- fully in the United States, who have accumulated here during Lai administration, and upon trial have been ordered deported. There is one other feature in the administration of these laws which has contributed largely to their efficient administra- tion. The consolidation in the hands of a single bureau of all the administrative functions, not only those discharged by in- spectors, but, as well, those formerly imposed upon collectors of customs and collectors of internal revenue, has added largely to the successful enforcement of the Chinese exclusion acts. When it is recalled that the interests opposed to a strict en- forcement both of the immigration and the Chinese exclusion laws are those representing large combinations of capital, such as the transportation lines, both of the Atlantic and Pacific, it will be conceded that the present administration has evinced un- flagging courage and independence in its efforts to protect the people of this country from dangerous and undesirable im- migration. Government finance, per capita. Year. 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, 1897. 1898. 1899. 1900. 1901. 1902. 1903. 1904. Population June 1. Am' ountof money in the United States July 1. 39.555,000 40,596,000 41,677,000 42,796 000 43.951.000 45,137,000 46.353,000 47.598.000 48,866,000 50,155,783 51.316,000 52.495,000 53,693,000 54.911,000 56,148,000 57.404,000 58.680,000 59.974.000 61,289,000 62,622,250 63,844,000 65.086.000 66.349.000 67,632.000 68.934,000 70,254,000 71.592,000 72.947,000 74,318.000 76.303.387 77.647,000 79,01)3,000 80.372,000 81,752.000 Government finance, per capita. Money in cir- cula- tion July 1. Dolls. 18.75 18.79 18.58 18.83 18.16 17.52 16.46 16.59 21.15 23.64 26.30 26.85 27.42 27.08 27.38 27.20 27.84 28.20 27.06 26.91 26.28 26.92 26.21 26.69 26.39 25.62 26.62 28.43 29.47 30.66 31.98 32.45 33.40 34.27 Debt less cash in Treas- ury, 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 24.56 24.03 24.52 23.20 21.41 22.87 25.15 25.58 26.94 27.98 28.43 29.42 30.80 Dolls. 56.81 52.96 50.52 49.17 47.53 45.66 43.56 42.01 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 12.64 13.30 13.08 13.60 13.78 14.08 15.55 14.52 13.45 12.27 11.51 11.83 Year ending June 30. 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 .37 .35 .35 .38 .42 .49 .48 .47 .54 .44 .38 .35 .32 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 5.45 5.81 4.40 4.54 4.65 4.85 5.56 6.94 7.43 7.56 7.11 6.96 6.61 Netex 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 5.07 5.73 5.30 5.78 5.43 5.16 5.01 5.11 6.07 8.14 6.39 6.56 5.96 6.29 7.12 Dis- burse- ments for pen- sions. Dolls. 0.84 .74 .70 .71 .56 .69 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 2.09 2.05 1.98 1.97 2.02 1.88 1.85 1.79 1.75 1.72 1.74 We know what we mean when we apeak of an honest and stahle currency. We mean the same thing from year to year. — President Hoosevelt's speech accepting J 904 nomination. Assuredly It is unwise to change the policies which have worked so well and which are now working so -well. — President Roosevelt's speech accepting 1004 nomination. THE CIVIL SERVICE. 393 THE CIVIL SERVICE. The chief criticisms of the Civil Service of the United States indulged in by the opponents of this Administration are based either upon a total misapprehension or a willful misstatement of the facts. The Civil Service law was enacted in 1883 for the purpose of stopping the flagrant abuses which had developed under the old patronage system of appointments. Under that system the govern- ment service, particularly in the Departments at Washington, had become inefficient and extravagant. Public office was considered a perquisite of the party in power, not a public trust. It was to remedy such evils that the Civil Service law was enacted ; and during the twenty-one years of its enforcement, there has been developed a high order of industry, integrity, and effi- ciency 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 117,000 Federal employees, and is recognized as necessary for good adminis- tration. The conclusive answers to the criticisms are the following plain statements of existing conditions and the acts of this Ad- ministration : 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 individual industry and ability. They do not constitute a body of per- manent officeholders who are protected from removal even though inefficient and incapacitated, as is charged. The power of re- moval is absolute in the head of every Department, this rule having been clearly defined by President Roosevelt, and explained by the Commission in its last annual report, as follows : "The Commission desires to call particular attention to this provision, under which appointing- officers are made the absolute judges of the sufficiency of reasons given for the removal of any person in the competitive classified service. No examination of witnesses is required, nor any trial or hearing, except in the dis- cretion of the officer making the removal. The rule is intended to prevent removals upon secret charges and to stop political pres- sure for removals. * * * The civil service law and rules pro- vide no tenure of office except that based upon efficiency and good behavior, and under the requirements of the law and rules it is as much the duty of an appointing officer to remove classified em- ployees for inefficiency as it is not to discriminate against them in any way for political or religious reasons." The merit system does not result in an undue permanency of tenure. Fifty-seven per cent of the persons in the entire execu- tive civil service have served less than five years, and seventy-four per cent less than ten years. In the Departments at Washing- ton naturally the service is more stable, but there forty-one per cent of the employees have served less than five years and sixty per cent less than ten years. The appointments made as a result of the examinations in the entire service are at the rate of about 2,100 per month. About twenty-two per cent of the entire service, and about ten per cent of the Departmental service in Wash- ington, changes each year. The inefficient employee gives way to the efficient, or the efficient employee finds private work more profitable or more congenial. The charge that the service is filled with superannuated clerks is unfounded. Sixty per cent of the employees are less than forty years old, and ninety-one per cent less than sixty years ; in Washington fifty per cent are less than forty and eighty-seven per cent less than sixty. 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 ex- aminations to meet the special requirements of particular places. The experience of twenty years has shown definitely that the 39-A THE CIVIL SERVICE. average examination can be passed by any intelligent person who has bad 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 the 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 have been of great practical value, in the Departments of 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 pos- sible for every branch of the service. It looks to the good of the service, not to the mere enforcement of a rule. It is the barrier against the spoils system, but it does not protect the in- efficient or dishonest employee. The ideal Civil Service law should close the door to entrance into the public service except through 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 $GOO,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. President Roosevelt has proved that under his administration the business of government is so conducted. He has appointed men of recognized ability and judgment to carry on executive work. He has made no promises impossible of fulfillment. By precept and example he has in- spired public officers to a higher sense of duty. He has shown that neither personal nor political influence can save the corrupt official from punishment. American citizens should remember and take to heart his words spoken at the unveiling of the Sher- man statue: "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 the wrongdoers punished." Protection steadily enlarges the home market for farm prod- ucts. — Hon. Li. R. Casey. "Well-paid wage-earners are generous consumers. — Former Senator Casey, in the American Economist. The theory of free trade between nations is as fallacious. Im- practicable, and utterly absurd as is that of free love between families. — Hon. B. F. Jones. We know our own minds and we have kept of the same mind for a sufficient length of time to give to our policy coherence and sanity. — President Roosevelt's speech accepting 1904 nomination. It is true, as Peter Cooper well said: "No goods purchased abroad are cheap that take the place of our own labor and our own raw material." — H. K. Thurber, in the American Economist. The dollar paid to the farmer, the wage-earner, and the pen- sioner must continue forever equal in purchasing and debt-paying power to the dollar paid to any Government creditor. — Maj. Mc- Knley to Notification Committee, 1896. RAILWAY REGULATION. 395 RAILWAY REGULATION. Work of the Interstate Commerce Commission. No more important or difficult task devolves upon the Govern- mt than the efficient regulation of our railway systems. The marvelous rapidity of their growth, their incomparable utility, the indispensable service they perform, the vast capital they repre- sent, and the enormous amount of labor they employ all require their subjection to adequate public control. As the function of railway transportation becomes better understood and»the depend- ence thereon of all other activities is more clearly perceived the greater will be the demand for securing to every citizen the right of fair and equal treatment in the use of these public facilities. In nearly every civilized country except the United States and Great Britain the railroads are owned and operated by the several governments, and public ownership here is not without its advo- cates. This proposition, however, has not made any considerable headway and is not likely for a long time to become a political issue. It is a project at variance with our inherited ideas and the traditional spirit of our institutions. The dominant sentiment of our people is strongly in favor of allowing this service to be per- formed by private enterprise, yet so controlled and regulated as to secure reasonable charges and prevent discriminating practices. It is of the utmost consequence, therefore, that laws enacted for this purpose shall be vigorously and thoroughly enforced. The first serious attempt at Federal railway control was the passage of the act to regulate commerce, commonly known as the interstate commerce law, in 1887. The adminstration of this law was committed to a commission of five members, of whom not more than three shall belong to the same political party ; the com- mission was intended to be, and in fact has always been, strictly nonpartisan. Under this law and its various amendments the commission exercises such authority as has been conferred upon it by the Congress, and the results have been in the main highly satisfactory. It must be remembered, however, that the Commission is an administrative and not a judicial body. It has no power to en- force its own orders, much less can it punish criminal offenders. It is practically dependent for success upon the vigilant coopera- tion of the Department of Justice. The civil remedies which this law provides must be enforced against disobedient carriers by suits in the Federal courts, while the criminal remedies afforded are wholly in the hands of the various United States attorneys under the direction of the Attorney-General. The efficiency and useful- ness of the Commission must in the nature of the case be deter- mined largely by the attitude and efforts of the Department of Justice. Bearing these facts in mind, it is not easy to estimate the bene- ficial results which have been attained during the last few years. 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 have constantly obtained, 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, 1903, closes with this significant statement: "In conclusion the Commission takes pleasure in saying that the Department of Justice has promptly and cheerfully complied with every request for the prosecution of civil and criminal pro- ceedings, and has in various ways materially aided the efforts of the Commission to enforce the regulating- statutes." This tribute from an independent and nonpartisan board to a Republican Attorney-General carries its own comment. But this is by no means all that has been done during the present Administration. A Republican Congress has passed and a Republican President has approved amendments to the interstate commerce law which have greatly increased its efficacy and greatly aided the success of public regulation. As a means for the cor- rection of transportation abuses these amendments have in fact re- 306 RAILWAY REGULATION. invigorated the law by removing defects and adding needful pro- visions. The regulating statute has been put upon a far more workable basis and the utility of this legislation has already been proven beyond doubt or question. This is particularly true of the Elkin8 law, so called, which was approved in February, 1903. Concerning this law the Commission in its last annual report makes the following statement: "It has proved a wise and salutary enactment. It has cor- rected serious defects in the original law and greatly aided the attainment of some of the purposes for which that law was en- acted. No one familiar with railway conditions can expect that rate-cutting and other secret devices wll immediately and wholly disappear, but there is basis for a confident belief that such of- fenses are % no longer characteristic of railway operations. That they have "greatly diminished is beyond doubt, and their recur- rence to the extent formerly known is altogether unlikely. In- deed, it is believed that never before in the railroad history of this country have tariff rates been so well or so generally observed as they are at the present time." Only those familiar with the history of railway operations can fully appreciate the significance of this official declaration. It means that the announced charges of railway carriers are now in fact actually applied to large and small shippers alike. This is cause for public rejoicing. As everyone knows, the secret advan- tages heretofore secured by rebates and other forms of favoritism were the dishonest means by which large concerns often crushed out their smaller rivals. Nothing has so powerfully aided the aggreseions of industrial trusts, nothing connected with these com- binations has been so offensive and destructive, as the private bar- gains of one sort and another by which they secured lower freight rates than independent dealers were compelled to pay. This was the characteristic and odious evil of railway methods up to a re- cent date. Within the last two years this evil has been thoroughly suppressed. To a very great extent, to an extent which justifies the most favorable comment, the whole rebate business has been broken up and is rapidly disappearing. This is perhaps the great- est benefit that could, be conferred upon the general business inter- ests of the country. It gives each man the same opportunity and puts the small dealer on a footing of equality with his largest rival so far as transportation charges are concerned. It is difficult to realize the advance that has been made in this regard within a comparatively short time. The salutary provisions of the Elkins law, and the resolute and persistent efforts of the Attorney-Gen- eral during the present administration, have practically removed the greatest and gravest of railroad abuses. The important and most useful changes effected by the Elkins law are described by the Commission as follows : In the first place, the recent amendment makes the railway corporation itself liable to prosecution in all cases where its offi- cers and agents are liable under the former law. Such officers and agents continue to be liable as heretofore, but this liability is now extended to the corporation which they represent. This change in the law corrects a defect which has always been a source of embarrassment to the Commission, as has been explained in previous reports, because it gave immunity to the principal and beneficiary of a guilty transaction. As a practical matter, it is be- lieved that much benefit will result from the fact that proceedings can now be taken against the corporation. The amended law has abolished the penalty of imprisonment, and the only punishment now provided is the imposition of fines. As the corporation can not be imprisoned or otherwise punished for misdemeanors than by money penalties, it was deemed expedi- ent that no greater punishment be visited upon the offending officer or agent. The various arguments in favor of this change have been stated in former reports and need not here be repeated, i Whether the good results claimed by its advocates will be realized j is by no means certain, but the present plan should doubtless be continued until its utility is further tested. A further change has been effected by the act of 1903 which is of much importance. As the former law was construed by the courts, it was not sufficient to show that a secret and preferential rate had been allowed in a particular case; there had to be further proof of the payment of schedule charges, or at least higher I charges than those in question, by some other person on like and i contemporaneous shipments. That is, it was necessary to prove discrimination in fact as between shippers entitled to the same rates by reason of receiving the same service. The practical result of this construction was to render successful prosecutions extremely difficult if not impossible, because the required evidence could J rarely be secured, and this was particularly the case when there was an extensive demoralization of rates and consequently the : most urgent occasion for the use of criminal remedies, Under RAILWAY REGULATION. 397 such circumstances it frequently happened that all shippers re- ceived substantially the same rates, much less, however, than the published tariff, and thus there was no actual discrimination. This aggravating defect appears to have been wholly cured, as the new law in most explicit terms makes the published tariff the standard of lawfulness, as respects criminal misconduct, and any departure therefrom is declared to be a misdemeanor. It is sufficient now, in order to make out a case of criminal wrongdoing, to show that a lower or different rate from that named in the tariff has been accorded. The effect of this amendment is to make the shipper liable whenever the carrier is liable, while either or both of them may be convicted by simply proving that the rate charged ts not covered by the tariff applicable to the transaction. The foregoing are the principal changes made by the Elkins law as respects the criminal remedies for prohibited practices. They relate solely to acts which are made misdemeanors and have no other application. The further provisions of this law, affecting what may be called civil remedies, are likewse important and may be briefly mentioned. One of these makes it lawful to include as parties, in addition to the carrier complained of, all persons in- terested in or affected by the matters involved in the proceedings; and this may be done both before the Commission and when suit is begun originally in the circuit court. Under the former law carriers only could be made parties defendant; under the amended law shippers also may be included. To what extent this change will prove advantageous the Commission does not undertake at this time to express an opinion. The other and more essential provision of the character now referred to is the one which confers jurisdiction upon the circuit courts of the United States to restrain departure from published rates, or "any discriminations forbidden by law," by writ of injunc- tion or other appropriate process. The writ or process thus au- thorized is enforcible as well against parties interested in the traffic as against the carrier. This provsion disposes of a question which has been the subject of much controversy, and furnishes a comprehensive remedy which is believed to be of the greatest value. During the last two years, also, the safety appliance laws have been improved by important amendments and by an act requiring reports of railway accidents. This humane legislation has proved of incalculable benefit to railroad employees. It safeguards their dangerous and responsible work, and at the same time gives added security to the millions of travelers. These are immense benefits to the public and to hundreds of thousands of the most intelligent and deserving working men in the country. 0) > tn » a M & onagn rt 00 00 lO < *ri oo as" <3j in < :£8££ : g »-t OS M kO 9* OS tO . © 2 g^®~c1 : S OS OS Tf" JO 00 t- t» co to to t- o e* as iO irt V OS t*< SPSS t- .»-l • 00 *""© • 2 -8 § • 2 :S :Si !Ss8 i IN tO" a : •B •■'•£ Is : :3n«crf<» a 3 ,; O «, •«P°*u o.o o£ j-'-S DfldjOd vi o Is 3 © a*" n U CO © c| cS-O 8 2 © S3 v o !| 4) 5 II 8 a £2 ©©s 5 - c« S5§a ©©g© S -Ss2 oj O+J cj fa^-2* w a w. a >, -» hj— ' 4)-^ 0) SS 4) laS SSoggsS .3°dB 4) a O" uTj 4> 4) M OO °s|^Sa§.oB do S 39fi MKKCI1ANT MARINE. flERCHANT riARINE. While American shipping in foreign trade has not yet agair. reached a rank commensurate with the country's needs or witt its growth and greatness in other directions, American shipping and shipbuilding since the return of the Republican party tc power have made good progress. The following table shows the total merchant tonnage (gross register tons) under the Americar. tl. ig, divided according to the trade in which engaged, on June 3( of each year named, and also the gain or loss for each period ol four fiscal years, covering approximately the three latest national administrations : Total American Merchant Shipping;. On June 30— Foreign Trade. Coasting 1 trade. Sea fisheries. Total. 1892 977,624 829.833 816.795 879,264 3.700.773 3.790.296 4,286,516 5.141.037 86.524 83.751 61.528 67.044 4.764.92 4 703 88( 1896 1900 5 164 835 1903 6 087 34J Gain or Loss In Four Years. Period. Foreign Trade. Coasting Trade. Sea fisheries. Total. 1893-1896 —147.791 ~r 13.038 *62,469 89.523 496,220 *854,521 — 2.773 —22.223 *5.516 —61,041 1897-1900 460,959 1901-1903 ♦922.506 ♦Gain in three years. The returns for June 30, 1904, not yet completed, will show a total increase during the four years ol nearly 1,100,000 gross' tons, and about 1,000,000 gross tons in the coasting trade. American Tonnage Built During; Recent Periods of Pour Fiscal Years, Beginning; June 30. Gross regis- ter tons. 1893-1896 inclusive 681.53S 1897-1900 inclusive 1 , 106,51 1 ♦1901-1904 inclusive 1.769.47S The notable increase in American shipping during the eight years pf Republican administration has been due to wise legisla- tion as well as to general causes. The Porto Rican act of April 12, 1900, and the Hawaiian act of April 30, 1900, brought under the American flag 51,618 gross tons of shipping formerly belonging to those islands. By applying the coasting laws to trade between the United States and those islands the construction in American shipyards of steel steamers for those trades, aggregating about 140,000 gross tons, has been encouraged, involving an expenditure for labor and materials of fully $15,000,000. Means of communica- tion between these islands and the United States are better than ever before, freight rates are lower, and trade has increased. The first regular American steamship line around Cape Horn has been established and an American yard has built the largest steamer ever launched into the Pacific. By the Philippine act of April 15, 1904, trade between the United States and the Philippines after July 1, 1906, will be subject to the coasting laws. This act will doubtless lead to the establishment of the first regular American steamship line through the Suez Canal. Prudence dictated a date far enough in advance to permit the construction of ample Ameri- can shipping for the trade, the necessary adjustment of tariff rela- tions, and the registry under the American flag of 143,837 gross tons of shipping now owned in the Philippines. The act of April 28, 1904, provides that vessels of the United States and no others shall be employed in the transportation by sea of supplies for the Army and Navy, This act is in accord with MERCHANT MARINE. 399 the policy of England, Germany, and France, and strengthens American sea power and increases American shipbuilding. The act of June 28, 1902, and the prompt action of President Roosevelt thereunder has put the United States in possession of the Panama Canal Zone, and the actual construction of the canal under American auspices has begun. The Panama Canal (discussed at page 2G5) will give a powerful stimulus to American shipping and shipbuilding. The distance from New York to San Francisco by the Straits of Magellan is 13,090 miles ; by the Panama Canal it will be only 5,278 miles. The saving in distance between our Atlantic and Pacific ports will involve a great increase in the American coasting trade, increased ship- building and reduced freight charges by land and sea. Mainly at the request of commercial and shipping interests Congress by act of February 14, 1903, created a Department of Commerce and Labor, charged with the duty of fostering, promot- ing, and developing the foreign and domestic commerce, shipping and fishery industries, the labor interests, and the transportation facilities of the United States. The general policy entered upon by the Republican party in 1872 of exempting from duty imported materials to be used in American shipyards for vessels for the foreign trade has been extended by successive enactments until by the Dingley tariff of July 24, 1897, all imported materials for vessels in the foreign trade, or for their machinery, outfit and equipment and for their repairs, are admitted free of duty, and supplies for American ves- sels in foreign trade are free from customs duties or internal- revenue taxes. The United States has always exerted its influence in favor of peace and the mitigation of the injuries caused by war to non- combatants. At the recommendation of the late President Mc- Kinley and President Roosevelt, Congress passed the following joint resolution, approved April 28, 1904: "Resolved, By the Senate and House of Representatives of the United States of America in Congress assembled, That it is the sense of the Congress of the United States that it is desirable, in the interest of uniformity of action by the maritime states of the world in time of war, that the President endeavor to bring- about an understanding among the principal maritime powers with a view of incorporating into the permanent law of civilized nations the principle of the exemption of all private property at sea, not contraband of war, from capture or destruction by belligerents." Legislation for Seamen. In recent years of Republican control of Congress and the executive departments the conditions of American labor at sea have been greatly improved by legislation. The act of December 21, 1898, provided a compulsory scale of provisions for seamen on American merchant vessels very much superior in quantity and quality to the food furnished to seamen on foreign vessels. It also provided for the prompter payment of wages, already much higher than on foreign ships, and for the return of wrecked, sick, or injured American seamen from abroad at the expense of the Fed- eral government. Forecastle quarters on American ships are now equal to any on foreign ships and superior to most. Warm rooms are prescribed in cold weather. Government relief is extended to distressed American seamen in Alaska, Porto Rico, Hawaii, and the Philippines as well as in foreign ports. The penalty of imprison- ment for the seaman's breach of a civil contract has been abol- ished, and all forms of corporal punishment prohibited under heavy penalties. Prompt trial of cases in which the seaman is a party has been provided. More rigid inspection at home and abroad of the seaworthiness of a vessel, the sufficiency of pro- visions, and the adequacy of the crew are now required by law. The act of December 21, 1898, imposes heavy penalties for sending an unseaworthy American ship to sea. The hulls of the larger sail- ing vessels are subjected to Government inspection and their mas- ters and mates are required to stand Government tests of com- petency. The evils of the "crimping" system, by which seamen have been cheated of their wages, have been combated by legislative enact- ment and administrative effort. Abuses of allotments of wages 400 MKIUTIANT MARINE. have been reduced, v under the act of December 21, 1898. Of that act the Supreme Court of the United States recently 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 ad- vancement of wages. Bad men lure them into haunts of vice, ad- vance a little money to continue 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 powerless 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 in- terests of seamen as a class are preserved by such legislation." Already this year one crimp has been sentenced to five years' imprisonment and a fine of $5,000 ; three have been sentenced each to 18 months' imprisonment and a fine of $1,000; lesser penalties have been imposed in other cases, and still other cases are under- going or awaiting trial. The acts of March 31, 1900, and April 13. 1904, providing stricter regulations for boarding incoming vessels, have reduced the opportunities for crimping. The Shipping? Question. Thus during the nearly eight years of complete Republican con- trol of Congress and the executive departments American shipping and shipbuilding have developed rapidly under legislation bene- ficial alike to the interests of shipbuilders, shipowners, and seamen and to the general welfare of the whole country ; but American ships still carry a diminishing proportion of our exports and im- ports. In 1892 they carried 12.3 per cent. ; in 1896, 12 per cent. ; in 1900, 9.3 per cent., and in 1903, 9.1 per cent. A merchant fleet Is a national necessity, first to furnish the reserve transports and supply ships needed in war to supplement the Navy, and second to furnish the reserve seamen required to put the country on a war footing at sea, as the national guard of the States can put the country on a war footing ashore. The transportation of our ocean mails is a public service which should be intrusted as far as prac- ticable to American steamers. Ocean carrying in national ships promotes a country's commer- cial importance and its influence in the affairs of nations; it de- velops and diversifies home industries to the advantage of labor, and brings to home capital a fair return on investment. During the past twelve years the values of American exports and imports carried in American and foreign vessels have been as follows : Year. In American vessels. In foreign vessels. Total. Per cent. 1892 $220,173,735 197,765.507 195.268,216 170,507,196 187,691.887 189.075,277 161.328,017 160,612.206 195.084.192 177.398,615 185.819.987 214,695,032 $1,564,558,808 1,428.316.568 1.273,022.456 1.285.896.192 2.377.973,521 1.525,753,766 1,582,492.479 1,646,263,857 1,894,444,424 1,974,536,796 1.919,029,314 2,026,102,388 $1,784,732,543 1,626,082,075 1,468,290,672 1,456,403,388 1,565,665,408 1,714,829,043 1.743.820.496 1,806,876.063 2,089,528,616 2,151,935,411 2,104,849,301 2,240,797,420 12.3 1893 12.2 1894 13.3 1895 11.7 1896 12 1897 11 1898 9.3 1899 8.9 1900 9.3 1901 8.2 1902 1903 8.8 9.1 There are no wholly reliable figures of the amount paid in freights for ocean cargoes. The late authority on international statistics, Mulhall, estimated ten years ago that the earnings of ships amounted to about 8 per cent of the value of the cargoes, rates are subject to great fluctuations, and have been low the past two years. For 1903 the freights paid on American exports and imports were approximately $140,000,000, of which American ves- sels received 9.1 per cent. Passenger fares exceed annually $30.- 000,000 of late years. 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 purposes at the present time by the principal nations are substantially as follows : MERCHANT MARINE. Subsidies to Shipping. 401 Country. Mail. General. Total. Austria-Hungary $1,288,201 82,455 5,019,703 1,825.651 4,874,243 1,757.812 2.865.831 367,468 48,338 63,300 $656,270 $1,944,471 82 455 Denmark France 3,623,720 8 643 423 Germany 1 825 651 Great Britain 662.369 1.061.639 76.465 5 536 612 Italy 2 819 451 2.942.296 367 468 Norway 89,218 "'i,595,76i' 137 556 Portugal 63 300 Russia 1 595 701 Spain . 1,629,927 81,849 1 629 927 Sweden 81 849 19.904,778 7.765.382 27.670,160 The British House of Commons in July, 1903, ratified a con- tract by which the British Government agrees to advance to the Cunard Company £1,300,000 for each of two mail steamers, the largest and fastest afloat, to be repaid in twenty years at 2% per cent interest. During these twenty years the Government guar- antees an annual subsidy of £150,000 and £68,000 additional for the mails. So important does England, the great shipping and naval power, deem fast ocean mail steamers that by this contract she practically gives to the Cunard Company the two finest ships which can be built, if the company will operate them as mail and auxiliary naval vessels. The best means of restoring the American marine to the ocean has been a matter of long and thus far fruitless debate. On recommendation of President Roosevelt Congress on April 28, 1904, created a Merchant Marine Commission of five Senators and five Representatives, whose duty it is to investigate and report to the Congress on the first day of its next session what legislation is de- sirable for the development of the American merchant marine and American commerce, and also what change or changes, if any, should be made in existing laws relating to the treatment, comfort, and safety of seamen, in order to make more attractive the seafar- ing calling in the American merchant service. This commission is now engaged in obtaining the views of shipbuilders, shipowners, ship managers, and others engaged in the shipping industries at the great centers of the shipping trade, visiting all parts of the coun- try where citizens having special knowledge on this subject through experience or otherwise are to be found. It is believed that the information which they will thus collect will aid Congress in determining what steps should be taken to develop the mer- chant marine of the country. PRESIDENTIAL RECOMMENDATIONS. Extract from President McKin ley's message, December 3, 1900 : Foreign ships should carry the least, not the greatest, part of American trade. The remarkable growth of our steel industries, the progress of shipbuilding for the domestic trade, and our stead- ily maintianed expenditures for the Navy have created an oppor- tunity 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 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 transporta- tion 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. Extract from President Roosevelt's message, December 3, 1901 : Shipping lines, if established to the principal countries with which we have dealings, would be of political as well as commer- cial benefit. From every standpoint it is unwise for the United States to continue to rely upon the ships of competing nations for the distribution of our goods. It should be made advantageous to carry American goods in American-built ships. At present American shipping is under certain great disadvan- tages when put in competition with the shipping of foreign coun- tries. Many of the fast foreign steamships, at a speed of fourteen knots or above, are subsidized, and all our ships, sailing vessels 402 M EEC II ANT MARINE. and steamers alike, cargo carriers of slow speed and mail carriers of hi^li speed, have to meet the fact that the original cost of build- ing American ships is greater than is the case abroad; that the wages paid American officers and seamen are very much higher than those paid the officers and seamen of foreign competing coun- tries, and that the standard of living on our ships is far superior to the standard of living on the ships of our commercial rivals. Our Government should take such action as will remedy these Inequalities. The American merchant marine should be restored to the ocean. Causes of the Growth of Foreign Shipping and Decline of American Shipping for the Foreign Trade. The great causes of growth of foreign shipping and decline of American shipping for the foreign trade are well known. Great Britain began the payment of large sums to her shipowners in the forties, some in the guise of payments for carrying mails and some as direct subsidies. She was followed in this plan of encouraging the shipping interest by other European countries. This custom has grown until the annual payments to ships for mail services or as direct subsidies now amount to about 30 million dollars per annum, of which about 2 millions are paid by the United States. The sums paid by for- eign governments to aid in developing their merchant marines since 1860 have aggregated many hundreds of millions of dollars. While these governments, chiefly those of Europe, have been de- veloping their merchant marines at this enormous cost the Govern- ment and people of the United States were encouraging the de- velopment of our splendid railroad system, which now forms two- fifths of the railways of the world. During that same period the ocean transportation system was being entirely changed from the wooden and iron vessels to the modern steel screw pro- peller. The consequence was that the American vessels which ex- isted before the civil war became almost useless in competition with the new style of vessels, and as American capital was busy with the more profitable work of developing the railways, the lake transportation and the coastwise transportation systems of the country, the ocean shipping was neglected. The Government aid which foreign lines obtained, together with cheapness in labor for building and operating vessels, enabled them to carry freights at such low rates that little incentive was offered to Americans to invest in shipbuilding, especially as cost of labor was and is much higher here than abroad, both in the building and operating of vessels. In the domestic commerce — along the coasts, upon the lakes— and on the rivers -where foreign ships are not permitted to operate, American shipping has shown a healthj- growth. Views of Minister Barrett. In response to the request of the Congressional Merchant Ma- rine Commission, Hon. John Barrett, United States Minister to Panama, and who has formerly been, respectively, United States Minister in Argentina and Siam, in addition to making a journey around the world as Commissioner-General of Foreign Affairs for the St. Louis Exposition, appeared before that body in Chicago, June 24, and made a statement based on his observations as a foreign representative of the United States and a traveler in many different countries. This statement, which was highly commended, not only by the friends but by the opponents of so called ship subsidies present, is summarized below. Mr. Barrett said : I am not here to make any argument for or against ship subsi- dies, but to submit a few facts and suggestions based on my study of our foreign trade in many different countries and upon various seas. During the last ten years it has been my privilege to make three journeys around the world, twice while a Minister of the United States and once as Commissioner-General of the St. Louis Exposition. After what I have seen I would be lacking in patriot- ism and be unmindful of actual conditions if I did not urge that something should be done for the development of American ship- ping. It does not seem that this is a question of so called "subsidies." It is rather a problem as to whether the United States Govern- ment is willing to pay certain sums for the carrying of the mails between ports of the United States and ports of foreign lands, just as it would pay a railroad company, a stage driver, or a mes- MERCHANT MARINE. 403 senger to do the same service in the United States. The higher the expense for such transportation, and the greater the difficul- ties to be encountered, the more the United States should be will- ing to pay. Just as the Government, or an individual, pays a company, or a person, to do any work for it, in accordance with the conditions surrounding this undertaking, so the United States should take into consideration what are the conditions surround- ing the carrying of the mails on comparatively fast steamers to distant ports of foreign lands. If the United States pays a certain man $1,000 for carrying the mail one year in a stage coach be- tween two towns in Vermont, or Colorado, so that people living in this section may have good service, it is difficult to understand why the same Government should not be willing to pay a propor- tionate amount to carry mails between, for instance, New York City and Buenos Aires, the great commercial entrepot of South America, and other important places in foreign lands. Without, however, going further into this argument, beyond simply empha- sizing that I argue in favor of practical every-day methods being applied to American steamship service, without any regard to actual subsidies, I state now what supports me in my argument. First: No one can dispute the importance of building up closer relations of commerce and friendship between the United States and the great staple countries of South America, like the Argentine Republic. The foreign trade of Argentina last year amounted to $360,000,000, of which the share of the United States was only $24,000,000, counting both exports and imports ; the great proportion of the remainder was with European countries. Ar- gentina is the United States of South America, and is destined in trade and influence to dominate all South America. Its capital city and chief port, Buenos Aires, has a population of one million, and is growing more rapidly than any city in the world, with the exception of New York and Chicago. When I left Buenos Aires in April, 1904, there were seven first-class fast mail and passen- ger steamship lines running between Buenos Aires and the prin- cipal ports of Europe, like Liverpool, Southampton, Hamburg, Bor- deaux, Barcelona, Genoa, and Naples ; there was not a single line of similar steamers between Buenos Aires and New York, or any North American port. In other words, there were almost two steamers per week of this kind, aside from a large regular freight fleet running between southern South America and Europe, while no direct mail or passenger steamers with fast freight facilities were leaving Buenos Aires for or coming from the United States. Expressed in another way, which should come home to every busi- ness man in the United States, the situation is this : A merchant or banker in Buenos Aires can write to Europe and get an answer within 55 days, but he can not write to the United States and obtain a reply in less than 75 or 90 days. It is needless to point out that such conditions are booming trade with Europe and de- pressing trade with the United States in a field that has a mag- nificent future. Second: Just before leaving Argentina, General Roca, the President of that Republic, informally stated to me that Argen- tina stood ready to do her share in cooperation with the United States to pay a reasonable sum for the carrying of the mails be- tween Buenos Aires and New York, in steamers which would also have passenger and fast freight facilities. He said that there was no other influence that would do more than this to promote closer relations between the two great republics of North and South America. The newspapers and all classes of men, irrespective of calling, are favorable to such legitimate payment for services that may be done by a steamship company, and can not understand why the United States will not do its part, especially when they believe that it would add millions and millions of dollars to American trade with South America. The reason why no steam- ship company can now afford to put on first-class vessels between New York and Buenos Aires is that it can not compete success- fully against these European lines, most of which are paid well by the governments for carrying their mails, and which in some instances have entered into contracts with freight steamship lines between the United States and southern South America not to carry passengers, or put on fast mail and freight ships. They desire naturally not only to keep the business in Europe, but to *U* AIMICMAINT A1AK1JN*;. keep passengers, the number of which is increasing greatly every \r;ir, hum (oining to the United States instead of Europe. From reliable data placed in my hands I have reason to believe that :>.(kh) to 10,000 representative influential men of Argentina would come to the United States every year for trade and travel, and that our trade with that country would be increased 50 to 100 per cent per annum (or to $40,000,000 to $(50,000,000 per annum, and even more) if such steamship service were established. In other words, if the United States were willing to join with Argen- tina and pay what might be termed a reasonable wage to a steam- ship company for carrying the mails between New York and Buenos Aires and other South American ports, like Rio Janeiro, Santos, and Montevideo, there would be a beginning of the end a I >«»ut all this talk of European trade controlling South America in trade and politics. Third: During the last journey I made around the world, leaving San Francisco and going by the way of Japan, China, India, the Mediterranean, and Europe, I did not see in any impor- tant port along the highway of empire a single large merchant vessel flying the American flag. There were, on the other hand, the flags of Great Britain, Germany, and France and often that of Japan. I need not enlarge upon this condition of affairs to prove that something should be done for the upbuilding of our merchant marine. There is something the matter somewhere! During the four years that I was United States Minister in Siam I never saw one American merchant vessel enter the harbor of Bangkok, which is one of the most prosperous and important cities of Southeastern Asia, with a large and growing trade with the outer world, but every day I witnessed vessels coming in and going out flying the flags of England, Germany, Japan, and not infrequently those of Norway, Sweden, and Denmark. There are to-day a half dozen fast mail and passenger steamers running between Europe and the east of Asia which are well paid by their governments for carry- ing the mail, while there is only one line flying the American flag between the west coast of the United States and the Orient. In harmony with this condition can be noted that the trade of Europe with Asia is six or seven times that of the United States. Ten years ago, when I first traveled up and down the coast of Asia, from Japan to India, I seldom if ever saw merchant vessels under the Japanese flag ; to-day they can be found in almost every port, in addition to running to Europe and the United States^ The Japanese Government and business men ascribe this wonderful development almost entirely to the liberal sums the Japanese Gov- ernment voted to Japanese ships for carrying the mails in appro- priate vessels. The world's production of pig iron from 1790 to 1902. Year. United States. Great Britain. Germany. France. Various. Total. Tons. Tons. Tons. Tons. Tons. Tons. 1790 30,000 40,000 55.000 110.000 180,000 290,000 560,000 820.000 1,670,000 68.000 190.000 250,000 400.000 680.000 1.390.000 2,250.000 3,830,000 5.960.000 30,000 40.000 46,000 90.000 120,000 170.000 402.000 530,000 1,390.000 40.000 60.000 85.000 140.000 220. (XX) 350.000 570.000 900.000 1,180.000 110.000 130,000 180.000 270.000 385.000 480,000 640.000 1.100.000 1,710.000 278 000 1800 460 000 1810 616 000 1820 1.010.000 1.585.000 2,680.000 1830 1840 1850 4,422 000 I860 7 180 000 1870 11.910.000 1880 3,840,000 7,750,000 2.730.000 1,730,000 2,090.000 18.140,000 1885 4,050,000 7.420.000 2,690.000 1.630.000 2.310.000 19.100,000 1889 7.600,000 8,250.000 4.530.000 1,720,000 3,060,000 25,160,000 1895.. 9,446.000 7.703.000 5.465,000 2,006.000 4.247.000 28.867.000 1896 8,623.000 8,660,000 6.271,000 2,302.000 5,001.000 30,857,000 1897 9,652,000 8.796.000 6.771,000 2.444.000 5,267,000 32.930,000 1898 11.773,000 8,610,000 7,196,000 2,485.000 5.808,000 35,872,000 1899 13,620,000 9.421,000 8.013.000 2,537,000 6,464,000 40,055,000 1900 13.789.000 8,960,000 '8,384,000 2,671,000 6.686,000 40,490.000 1901 15.878,000 7,929.000 7,754,000 2.351,000 6,886,000 40.798,000 1902 17.821.000 8.680,000 8,393,000 2.367.000 *6,800,000 *44,061.000 1903 18,009.000 ♦Partial estimate. NOTE — Official figures for the United States, the United King- dom, Germany and France. Figures for all other countries taken from the French and Swedish Mineral Statistics. MHIKUHAJNT MAKIJNE. 4:Ufc> Statement of number and tonnage of steam and sailing vessels of over 100 tons, of the principal countries of the world, as recorded in Lloyd's Register for 1903-4. Flag. British : United Kingdom. Colonies Total American (United States): Sea Lake Total Argentine Austro-Hungarian . Belgian Brazilian Danish Dutch French German Greek Italian Japanese Norwegian Philippine Islands. . Russian Spanish Swedish Other countries : Steam. No. 7.530 1.023 349 1,211 119 267 112 288 385 360 717 1,425 199 365 544 962 92 573 459 750 Net tons. Gross tons ,233,721 466,732 8.700.453 810,003 756,470 1,566,473 13,410, 782: 14,193,582 1.220.995 1.001,072 2,222,067 Sail. No. 2,581 2,119 56 99 29 2 90 414 98 638 473 192 861 1,042 1.256 37 726 136 764 15 Net tons. 1,478,677 334,115 24.918 20.952 488 22,979 97,279 45,626 468,255 488,936 52.304 476,226 141.276 718,511 8,261 231.305 43,625 218,535 5.333 CONDITION OF AMERICAN MERCHANT MARINE 1860 TO 1903. American vesssels. Registered tonnage of vessels passing through Sault Ste. Marie Canal. Years. Built. Engaged in foreign trade. Engaged in domestic trade. Engaged in com- merce of Great Lakes. 1860 Tons. 214.797 233,194 175,075 311,045 415,740 394,523 336,146 305,595 285,304 275,230 276,953 273,226 209,052 359,245 432,725 297,638 203,585 176,591 235,503 193,030 157,409 280,458 282,269 265,429 225,514 159,056 95.453 150,450 218,086 231,134 294,122 369,302 199.633 211.639 131,195 111,602 227,096 232,232 180,458 300,038 393,790 483,489 468.833 436,152 Tons. 2,546,237 2,642,628 2,291,251 2.026,114 1,581.894 1,602,583 1,492,926 1,568,032 1,565,732 1,566,422 1,516,800 1,425,142 1,410,648 1,423,288 1,428,923 1.553,827 1,592,821 1,611,193 1.629,048 1,491,534 1,352,810 1,335,586 1,292,294 1.302,095 1,304,221 1,287,998 1,111,179 1.015,563 943,784 1,021,595 946,695 1,005,950 994,676 899,803 916,180 838,186 844,954 805,584 737,709 848,246 826.694 889.129 882.555 888.776 Tons. 2,807.631 2,897,185 2,830,913 3,128,942 3,404,506 3,494,199 2,817,852 2,736,455 2,786,027 2,578,219 2,729,707 2,857,465 3,027,099 3,272,739 3,371,729 3,299,905 2,686,637 2,631 ,407 2,583,717 2,678,067 2,715,224 2,722,148 2,873.639 2,933,392 2,967,008 2,977.936 3,019,957 3,090,282 3.248.132 3,285,880 3,477,802 3,678.809 3,770,245 3,925.268 3,767,849 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 Tons. 467,774 490,445 563,260 635,054 700,673 673,697 573,912 617,686 695,604 661,366 684,704 712,027 724,493 788,412 842,381 837,891 613,211 610,160 604.656 597,376 605,102 663,382 711,269 723.911 733,069 749,948 762,560 783,721 874.102 972.271 1,063,063 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 1,706.294 1,816.511 1,902,698 Registered tons. 403,657 1861 276,639 1862 359,612 1863 507,434 1864 571,438 1865 409,062 1866 458,530 1867 1868 556,899 432.563 1869 524,885 1870 690,826 1871 752,101 1872 914,735 1873 1,204,446 1074 1,070.857 1875 1,259,534 1876 1,541.676 1877 1,439,216 1878 1,667.136 1879 1,677,071 1880 1,734,890 1881 2,092,757 1882 2,468,088 1883 2.042,259 1884 2.997,837 1885 3.035,937 1886 4,219,397 1887 4,897,598 1888 5,130.659 1889 7,221,935 1890 8.454,435 1891 8,400,685 1892 1893 10,647,203 8,949,754 1894 13,110.366 1895 16,806,781 1896... 17,249,418 1897 17,619,933 1898 18,622.754 1899 21,958,347 1900 22,315.834 1901 24.626.976 1902 31,955.582 1903 27.736.446 406 MERCHANT MARINE. Value of Foreign Carrying Trade of the United States in Ameri- can and Foreign Vessels, etc. -Total United States Imports and Exports. [From the Statistical Abstract.] By sea. Year By land vehicles. Total by land and sea. ending June 30. In Ameri- can vessels In foreign vessels. Total. Per cent in Ameri- can vessels Dollars. Dollars. Dollars. Dollars. Dollars. 1860 507.247.757 255.040,798 762.288,550 66.5 762.288,550 1881 381.616.788 203,478.278 684.995.066 65.2 584,995,066 1862 217.695.418 218,015.296 435.710,714 50. 435,710,714 1863..... 241.872.471 343.056,031 584,928.502 41.4 584,928,502 1864 184.061.486 485,793,548 669,855.034 27.5 669.855,034 1865 167.402,872 437,010.124 604,412,996 27.7 604.412,996 1866 325.711,861 685,226.691 1,010,938,552 32.2 1,010,938.552 1867 297.834,904 581,330.403 879.165,307 33.9 879.165,307 1868 297,981.573 550,546.074 848,527,647 35.1 848.527,647 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 1871 353.664,172 755,822,576 1,109,486.748 31.9 '22, 985,510 1.132,472.258 1872 345,331,101 839,346,362 1,184,677.463 29.2 27.650.770 1,212,328,233 1873 346.306,592 966,722,651 1,313,029,243 26.4 27,869,978 1.340,899,221 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 1,199,046,309 26.2 20,388,235 1,219,434.544 1876 311,076,171 813,354,987 1,124,431,158 27.7 18,473,154 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 1879..... 272,015.692 911,269,232 1,183,284.924 23. 19,423,685 1,202,708,609 1880 258.346,577 1,224,265,434 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 1.258,506,924 1,498,927,424 16. 48,092,892 1,547,020,316 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 1,079,518,566 1.274,384,309 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 1.359,551,254 14.3 48.951,725 1,408,502,979 1888 190,857,473 1,174.697,321 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 1,647,139,093 1891 206,459,725 1,450,081,087 1,656,540,812 12.5 72,856,194 1.729,397,006 1862 220,173,735 1,564,559,651 1,784,733,386 12.3 72,947,224 1,857,680.610 1893 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 170,507,196 1,285,896,192 1,456.403,388 11.7 83,104,742 1,539.508,130 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 1898 161,328,017 1.582,492,479 1,743,820,496 9.3 103,711,488 1,847,531,984 1899 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 2.244,424,266 1901 177,398,615 1,974,536,796 2,151,935,411 8.2 159,001,745 2,310,937,156 1902 185,819,987 1,919,029,314 2,104,849,301 8.8 180,191,048 2,285,040,349 1903 214,695,032 2,026,106,388 2,240,801,420 9.1 205,059,496 2,445,860,916 A fall day's work must be paid in full dollars.— Major McKinley, at Canton, 1896. "I believe that the protective system has been a mighty in- strument for the development of our national wealth and a most powerful agency in protecting the homes of our workingmen."— - Harrison. "To increase production here,, diversify our productive enter- prises, enlarge the field and increase the demand for American workmen; what American can oppose these worthy and patriotic objects ?" — McKinley. "Every citizen of the United States has an interest and a right in every election within the Republic where national representa- tives are chosen. We insist that these laws relating to our na- tional elections shall be enforced, not nullified."— Garfield. "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. "The right of railway corporations to a fair and profitable re- turn 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 interstate traffic against acts of Injus- tice which the State governments are powerless to prevent."— Arthur. MERCHANT MARINE. 407 Subsidies and Payments for the Ocean Mail Service of Great Britain and the United States from 1848 to 1908. [Compiled from official sources.] Great Britain. United States. Year. Mail payments. Subsidy to British steamers. To Amer- ican steamers. To for- eign steamers. Total amount paid. 1848 $3,250,000 3,180,000 5,313,985 5,380,000 5,510,635 5.805,400 5,950,559 5,741,633 5,713,560 5,133,485 4,679.415 4,740.179 4,349,760 4,703,285 4,105,353 4,188,275 4,503,050 3,981,995 4,227,018 4,079.966 4,047,586 5.481,690 6,107.761 6,070,741 5,693,500 5,665,296 5,697.346 4,860.000 4,420,261 3,976,580 3,914,990 3.768,230 3,873,136 3.601,350 3,538,835 3,608,800 3,608,355 3,612,065 3,662,805 3,625,915 3,490,864 3,184,425 3,827,260 4,142,139 4,277,972 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 $100,500 235,086 619,924 1,465,818 1,655,241 1.880,273 1,903,286 1,936,715 1,886,766 1,589,153 1,177,303 1,079,220 707,245 570,953 80,683 79,397 64,356 66,572 245,605 411,065 625.239 757,964 791,389 699,661 805.788 81S.400 750,296 740,361 580,063 283,835 40,152 41,251 38,780 42,552 40,645 48,077 53.170 49.048 43.319 76,727 86,890 109,828 120.170 147.561 259.788 646,031 711,443 633,035 1,027,735 1,288,674 1,038,141 998,211 1,269,660 1,250,381 1,525,313 1,611,794 $100 500 1849 235 086 1850 619 924 1851 1,465,818 1 655 241 1852 1853 1 883 273 1854 1,903,286 1 936 715 1855 1856 1,886 766 1857 1,589 153 1858 $33,758 125,350 147,085 235,932 293,932 336,677 376,085 498,856 468,324 456,138 390,907 343,726 315,944 275,364 221.103 228,757 238,098 236,283 173,547 162,061 159,828 158,775 161,029 197,515 239,856 268,281 279,051 282,855 286,072 335,946 376,528 505,573 420,507 443,204 478,748.95 495.630.87 461,956.87 429,856.67 394,636.60 392.670.18 437.882.06 487,038.24 518,954 575,666 556,195 597,940 1,211,061 1859 1,204,570 1860 854.330 1861 896,885 1862 374,618 1863 416,074 1864 440.441 1865 . .' 475.428 1866 713,929 1867 1868 867,203 1.016,146 1869 1,101.690 1870 1871 1872 r. 1873 1874 1,115,333 975,025 1.026,891 1,044,157 988,394 1875 976.644 1876 756,610 1877 448,896 1878 199,980 1879 200,026 1880 199,809 1881 240,067 1882 280.501 1883 316.358 1884 332,321 1885 331.903 1886 329.391 1887 412,673 1888 463,418 1889 515,401 1890 510,677 1891 590,765 1892 738,537.51 1893 1,141.662.69 1.173W00.'80 1894 1895 1,062,892.56 1896 1.422,372.50 1897 1.681,344.40 1898 1.478.023.21 1899 1.485.250.09 1900 1,788,614 1901 1,826,047 1902 2,081,508 1903 2,209,735 Resuscitation will not be promoted by recrimination. The distrust of the present will not be relieved by a distrust of the future. A patriot makes a better citizen than a pessimist. — Presi- dent McKinley before Manufacturers' Club, Philadelphia, June 2, 1S97. While American labor is more efficient and more productive than labor elsewhere, it yet remains incontestibly true that there are thousands of commodities which can not be made by our arti- sans in competition with low-priced labor elsewhere. — Hon. Henry M. Hoyt. "The present phenomenal prosperity has been won under a tariff made in accordance with certain fixed principles, the most Im- portant of which is an avowed determination to protect the in- terests of the American producer, business man, wage-worker, and farmer alike."— Roosevelt. 408 n NSIONS. PENSIONS. The Record of the Republican Party In Behalf of the Soldier. The first duty of a nation is to care for its defenders. Those who leave the paths of peace and bare their breasts to the storms of war when their country's peril calls have an abiding lien upon the sympathy and gratitude of that country wheh disabled, old, and poor. This is Republican doctrine, and that it is no idle pre- tense, no flimsy generality, the records of the 40 years since the thunder of the guns that defended the Union were silenced in victory have abundantly proved. Our splendid pension system which has no precedent in the world's history, and no peer in justice and generosity among the nations of the earth, is a dis- tinctively Republican institution, not one feature of which is due to or has ever been claimed by the Democratic party. The official statements herewith presented will verify the boast of the Republican party that it has not failed to redeem every promise made in the dark hours of that great struggle of the last century, the promise to care for the soldier, for his widow, and for his children. The total number of original pension claims allowed from 1862 to June 30, 1903, is 1,782,213. To this will be added during the current fiscal year probably 50,000 more, making more than one million eight hundred thous- and cared for "soldiers, their widows, and their children." The number of original pension issues from 1862 to elusive, is: 1903, in- Year Applica- tions Claims allowed Year Applica- tions Glaims allowed 1862 2,487 49,832 53,599 72,684 66.256 36.753 20.768 26,066 24,851 43,969 26,391 18,308 16,734 18,704 28,623 22,715 44,587 67,118 141,466 31,116 40,939 48,776 462 7,884 39,487 40,171 60,177 36,482 28,921 28,196 18,221 16,562 34,333 16,062 10,462 11,152 9.977 11.826 11,962 31,346 19,545 27,394 27,664 88,162 1884 41,785 40,918 49,895 72,465 75,726 81.22H 105,044 696,941 246,638 119,361 67,141 45,861 42,244 50.585 48.732 68.881 51,964 58,373 47.965 52,325 34,192 35.767 40 857 1868 1885 1864 1886 1866 1887 , 55,191 60 262 1866 1888 1867 1889 81,921 66,637 156,486 224,047 121,680 89,086 39,185 40.374 50,101 52,648 37,077 40,646 44,868 40,178 40,186 1868 1890 1869 1891 1870 1892 1871 1893 1872 1894 1873 1895 1874 1896 1876 1897 1876 1888 1877 1899 1878 1900 1879 1901 1880 1902 1881 1903 Total 1883 2,924,701 1,782,218 In the report for 1902 it was suggested that the number of pensioners would reach 1,000,000. The following table gives the monthly report of pensioners during the fiscal year of 1903, and also the number dropped by death : June 30, 1902 Jnly31,1902 August 81, 1902 September 30, 1902. October 31, 1902 November 80, 1902.. December 81, 1902.... January 81, 1903 .... February 28, 1903 ... March 31, 1908 April 30, 1908 May 31. 1908 June 30, 1903 Total Number of pensioners on the rolls Number of pensioner* dropped by death 999,446 1,001,494 2,026 1,000.530 3,890 1.000,732 2,151 1.000,392 3,144 999,894 3,826 998,932 8.029 998,964 2.865 997,414 3.938 996.686 3,833 995,088 4.826 995.819 8.482 996,545 6,403 40,907 PENSIONS. 409 It is not probable that the pension roll will again cross the million line. The high-water mark was on July 31, 1902. The number of pensioners upon the rolls July 1, 1903, and for four preceding years, respectively, is as follows: Wars 1903 1900 War, Revolutionary : Widows Daughters War of 1812 Survivors Widows Indian wars: 8urvivors Widows Mexican war: Survivors Widows Service after Mar. 4, 1861 General laws — Army invalids Army widows Navy invalids Navy widows Army nurses Act June 27. 1890— Army invalids Army widows Navy invalids Navy widows War with Spain: General laws- Army invalids Army widows Navj invalids Navy widows Total 1.565 3,169 5.964 7,910 264.139 86,866 4,142 2,221 624 427,711 155.249 16.010 6,992 8,798 8,488 402 174 4 4 1 1,317 3.320 6,828 8,017 277,965 87,046 4.360 2,263 634 426,188 148,201 15,953 6.977 6.282 2.727 329 127 1 1,627 1.086 3.479 293.186 86,504 4.489 2,298 650 422,481 138.490 15,683 6.621 3,344 1,981 211 1 1.742 1.370 8.739 8.352 8.151 305.980 88,463 4.622 2,314 646 415.265 129,412 If. 392 6.314 822 845 60 1 1.998 1.656 3,899 9.204 8.176 90.597 4.721 2,293 653 405.987 124,127 14.925 6.139 117 165 997,735 993,529 991,519 The Burden of Pensions. The cost of the pension system is made the burden of com- plaint by our Democratic brethren in and out of Congress. While $140,000,000 per year is, technically, somewhat of a burden, it is so slight compared with the wealth of the nation that it ceases to be an argument. The official figures will exhibit this in detail. The cost of the pension system per capita of population for each year since 1889 and the proportion it sustains to the wealth of the United States are as follows: Year. Number of pen- sioners. Total cost of pension Bystem. Total population. CoBt per capita of population. 1889 489,725 637,944 676,160 876,068 966,012 969,544 970,524 970,678 976,014 993,714 991,519 993,529 997,736 999,446 996,545 892,309,688 98 109,620,282.52 122,018,326.94 144,292,812.91 161,774,372 86 143,950,702.48 144,150,314.51 142,212,080.07 143,987,500.42 148,765,971.26 142,502,570.68 142,303,837.89 142,400,279.28 141,335,646.95 141,752,870.50 61,289,000 62,622,250 68,844,000 65,086,000 66,349,000 67,632,000 68,934,000 70,254,000 71,592,000 72,947,000 74,318,000 76,803,8»7 77,647,000 79,003,000 80,847,000 8151 1890 llbX 1891 1.91 1892 2.22 1893 1894 2.44 2.13 1895 2 09 1896 2.02 1897 2.01 1898 2.04 1899 1.92 1900 186)4 1901 1.84 1902 1.79 1903 1.75 The pension system was and is a burden on the aggregate wealth of the United States as follows : Year. Aggregate wealth of the United States. Cost of pen- sion system per 81,000. 1890 865,037,091,000 a 72,200,000,000 77,000,000,000 94,800,000,000 a 107,200,000,000 81.40 1893 224 1895 , 1.90 1000 .„ 150 1908 .... 132 a Estimated. 410 TENSIONS. The pension system was the greatest as a burden to the people of Hit' United States in \SWA, since which time the burden has been constantly decreasing until it has shrunk in ten years from $2.24 to $1.32 per $1,000 of taxable wealth. In ten years more the burden will cease to be noticed. The disbursements for pensions by the United States from July 1, 1790, to June 30, 1865, were $96,445,444.23. The total of pensions and expenses from the latter date to the present is, with the number of pensioners, as follows : Year. Paid as pen- sions. Cost, main- tenance, and expenses. Total. Number of pen- Biooers. 1866 $15,450,549,88 20,784,789.69 23,101.509.86 28,518,247.27 29,351,488.78 28,518,792.62 29 752,746.81 26.982,063.89 30.206,778.99 29.270.404.76 27,936,209.53 28 182 821.72 26 786 009.44 33,664,428.92 56.689.229.08 60,583.405.35 54 313,172.05 60,427,573.81 57.912,387.47 65,171,937.12 64,091,142.90 73,752 997.08 78,950,501.67 88,842,720.58 106,098.850.39 117,312.690.50 139,394.147,11 156,906,637.94 139,986,726.17 139,812,294.30 138,220,704.46 139,949.717.35 144,651,879.80 138.355.052.95 138,462,130.65 138,531,483.84 137,504,267.99 137,759.653.71 $407,165.00 490.977.85 553.020.34 564,526.81 600,997.86 863.079.00 951,253.00 1,003,200 64 966 794.13 982 695.35 1,015,078.81 1,034,459.33 1,032,500.09 837,734.14 935,027.28 1,072,059.64 1,466,236.01 2,591,648.29 2,835.181.00 3,392.676.34 3,245,016.61 3,753,400.91 3,615.057.27 3,466.968.40 3,526.382.13 4 700,636.44 4.898,665.80 4,867,734.42 3,963,976.31 4,338,020.21 3,991,375.61 3,987,783.07 4,114.091.46 4.147,517.73 3,841.706.74 3,868,795.44 3,831,378.96 3,993,216.79 $15,857 714.88 21,275.767.04 28.654,529.70 29 077,774.08 29 952,486.64 29 381,871.62 80 703,999 81 27,985.264.53 81,173.573.12 30,253,100.11 28 951,288.34 29,217.281.05 27,818.509.63 34,502,163.06 57,624,266.36 51,665,464.99 56,779,408.06 63,019,222.10 60,747,568.47 68,564,513.46 67,336,159.51 77,506,397.99 82,466.558.94 92.309,688.98 109,620,232.52 122,013,326.94 144,292,812.91 161,774,372.86 143,950,702.48 144,150,314.51 142,212,080.07 143,937,500.42 148.765.971.26 142,502,670.68 142,308,837.39 142,400.279.28 141,335,646.95 141,752,870.50 126,722 155.474 169.643 187 963 1867 1868 1869 1870 198 686 1871 207,495 232,189 238,411 236,241 234,821 232,137 232 104 1872 1878 1874 1875 1876 1877 1878 223.998 242,755 250,802 268,830 285,697 303,658 322 756 187» 1880 1881 1882 1883 1884 1885 345,125 865 788 1886 1887 406,007 452,557 489,725 537,944 676 160 876 068 1888 1889 1890 1891 1892 1893 .. . 966,012 969 544 18»4 1895 970,524 970,678 976 014 1896 1897 1898 993 714 1899 991 519 1900 993 529 1901 997 736 1902 999 446 1903 996 545 Total $2,942,178,145.93 $95,647,934.71 $3,037,826,080.64 Total number of pensions June 30, 1903, was 996,545. The number now is practically the same. The following table shows the number of pensions, and the monthly rate thereof: Rate. Number of pensions Rate. Number of pensions. $6 and under From $6 to 88, inclusive... From $8 to $10, inclusive. From $10 to $12, inclusive From $12 to 814, inclusive From $14 to 815, inclusive From fcl5 to $16, inclusive From 816 to 817, inclusive. From $17 to $18, inclusive From $18 to $20, inclusive From $20 to $24, inclusive From 824 to 825. inclusive 129,614 1544,620 83,696 296,084 22,926 8,782 9,084 43,784 786 7,316 26,216 3,114 From 825 to $30, inclusive., From 830 to 836, inclusive. . From 836 to $45, inclusive. . From $45 to 850, inclusive.. From $50 to $72, inclusive., From 872 to $100, inclusive At $125 At 8166% At$i08>^ At $416% TotaL. 14,472 540 3,536 3,254 3,787 77 1 8 996,545 The average value of a pension i3 $133.49. Over one-half of the pensions are $10 or under. In addition to caring for the disabled soldier the Republican party has also provided for his widow and children. One pro- vision of the well known act of May 9, 1900, is deserving of special consideration. It provides for the well-being of insane, idiotic, or otherwise helpless children, physically or mentally, of PENSIONS. 411 the deceased soldiers, by pensioning them during life, unless they recover from such disability. Such a provision for the helpless children of soldiers is elsewhere unknown in the world. Of the recent enactments for the benefit of the Republic's de- fenders the Republican party has pride in referring to these gen- erous provisions : Act of January 15, 1903, providing a pension of $40 per month for total loss of hearing. Act of February 28, 1903, providing for restoration to the rolls of a pensioned widow who had remarried and whose second hus- band has died or from whom she has been divorced without fault upon her part. Act of March 2, 1903, providing generous increase of pension to those who have lost limbs in the service, the rates running from $40 to $100 per month, according to the disability. Act of March 3, 1903, providing an increase of pension to $12 per month to all Mexican war survivors. The survivors of all the Indian wars and disturbances were provided for by the act of June 27, 1902, as well as their widows. (Wars, etc., up to 1856.) Order 78. No single act of this Administration has aroused such deter- mined opposition from the Democratic minority in Congress as the order of the Commissioner of Pensions, cordially approved by the Secretary of the Interior and the President, bringing within the benefits of the pension laws all veterans who have reached the age of 62 years and over in these terms : "(1) In the adjudication of pension claims under said act of June 27, 1890, as amended, it shall be taken and considered as an evidential fact, if the contrary does not appear, and if all other legal requirements are properly met, that when a claimant has passed the age of 62 years he is disabled one-half in ability to per- form manual labor and is entitled to be rated at six dollars per month; after 65 years at eight dollars per month; after 68 years at ten dollars per month, and after 70 years at twelve dollars per month. "(2) Allowances at higher rate, not exceeding twelve dollars per month, will continue to be made as heretofore, where disabili- ties other than age show a condition of inability to perform man- ual labor. "(3) This order shall take effect April 13, 1904, and shall not be deemed retroactive. The former rules of the office fixing the minimum and maximum at 65 and 75 years, respectively, are hereby modified as above." As will be noticed, this is not new legislation, as opponents of the system contend, but a construction of the act, which is with- in the always acknowledged competency of the Department. THE DEMOCRATIC RECORD ON PENSION LEGISLATION. Following the Republican lead it has been a habit with Demo- cratic conventions to insert in their platforms a perfunctory plank in favor of "liberal pensions to our brave soldiers." The insin- cerity of this forced public recognition of the services of the republic's defenders is apparent from the most cursory review of that party's performance when opportunity was offered to make good. On the fourteen most important measures, constituting the pension law as it exists today, the record shows a total vote as follows : Democrats, for the bills 417. Democrats, against the bills 648. Republicans, for the bills 1,068. Republicans, against the bills None. In line with this showing made by the last Democratic Ad- ministration when 8,694 pensioners were dropped from the rolls and 23,702 pensions were reduced. Why? Because, forsooth, af- ter from one to four years inarching, fighting, starving, freezing, it was alleged that they were not found sufficiently disabled to hold the pensions which a Republican Administration had given them. 412 PENSIONS. General Sickle* on the Old Age Pension Order. The following correspondence between General O. O. Howard and General Daniel E. Sickles is self-explanatory : Boston, Mass., June 5, 190k- Dear General Sickles : When you and I were on railroad coach the other day, in answer to some statements of the Commissioner of Pensions, you said in substance that his recent pension order was" a good one for all concerned, and you made a very clear and concise demonstration that this said order was thoroughly legal, a proper interpretation and application of existing statute laws. Would you be willing to put in writing for my use and in- formation substantially what you said? Ever, very truly, yours, (Signed) O. O. Howard. Major-General O. O. Howard, U. S. A. Dear General: Complying with your request. I have much pleasure in recapitulating the views expressed by me the other day about the recent pension order of President Roosevelt. The Constitution commands the President to "take care that the laws be faithfully executed." Congress, in the organization of the Pension Office, imposed upon the President the duty of super- vising the execution of the pension laws. It is the only bureau in the Government placed under the immediate direction of the President by an act of Congress. Order No. 78, dated March 15, 1904, which recognizes old age as a disability incapacitating a soldier or sailor to earn a living by manual labor, and therefore entitling him to a graduated pen- sion under the act of June 27, 1890, is sustained by precedent and law, and is one of the wisest acts of President Roosevelt's Admin- istration. You and I have heard this order denounced as a usurpation of legislative authority by the executive. These critics forget that Judge IiOchran, President Cleveland's Commissionere of Pensions, by his order of September 2, 1893, gave the same effect to the act of 1890, fixing, however, the age of 75 as the period of disability. The legality of Judge Lochran's order was not questioned. President McKinley's Secretary of the Interior, in July, 1897, established the rule that "a claimant for pension under the act of June 27, 1890, who has attained the age of sixty-five years, shall be entitled to at least the minimum rate of pension (six dollars a month) provided by that act." This order of President McKinley was not disputed. President Roosevelt's Commissioner of Pensions, Col. Ware, in his now famous Order No. 78, approved by the Secretary of the Interior, Mr. Hitchcock, directs that "when a claimant under the act of June 27, 1890, has passed the age of 62 years' he is disabled one-half in ability to perform manual labor and is entitled to be rated at six dollars per month," the minimum pension; "after 65 years at eight dollars per month; after sixty-eight years at ten dollars per month, and after 70 years at twelve dollars per month," the maximum. Each of these orders is based upon the same interpretation of the act of June 27, 1890. If Cleveland and McKinley were right, Roosevelt is right. It is the common experience of mankind that old age unfits one to earn a living by manual labor. Who will give a job of hard work to a man over sixty? We have seen that our Pension Office has for many years recognized old age as a legal "disability," affecting the fitness of a veteran soldier or sailor to earn a sup- port. President Roosevelt declares this inability begins at the age of sixty-two. That is true, — and Roosevelt has the same au- thority to fix the pensionable period as Cleveland and McKinley had when they were in power. Officers of the Navy are retired from service at that age; Army officers are retired at sixty-four. Congress determines these periods. In 1887 Congress directed that all of our soldiers who served in the Mexican War, who were over sixty-two years of age, should be placed on the pension roll, giv- ing them eight dollars a month — two dollars more per month than is allowed by Order No. 78 to the civil war soldiers of the same age. The President followed these analogous cases. The Almighty Ruler has enacted* that the great mass of man- kind are seriously disabled from earning a support by manual labor at sixty-two years, and President Roosevelt and the Pension Bureau have only recognized that law in determining that the pension of a veteran for disability, under the act of June 27, 1890. shall begin at that age, at the rate of six dollars a month and be increased gradually, until, at the age of seventy, twelve dollars a month is allowed. As Senator Spooner well said: "Service in the Army is a draft upon the future which must be honored in old age." The average age of the survivers is now between sixty-two and sixty-five years. Many a soldier or sailor in one day of battle does the work of years. Veteran soldiers and sailors feel the in- firmities of age sooner than the average man. Is the Roosevelt order censurable because it says that the dis- abilities of old age begin at sixty-two and culminate at seventy? Why was not Cleveland denounced for the Pension Office Order of 1893? Is it because seventy-five years was fixed as the pensionable age? Why was not McKinley denounced for the Pension Office Order of 1897? Is it because sixty-five years was fixed as the pensionable age? If Roosevelt's order is a usurpation of legis- PENSIONS. 413 lative authority, then Cleveland and McKinley are "particeps cnminis — equally guilty. But nobody ever complained of these acts of Roosevelt's predecessors. It is only our strenuous young Hotspur, now President, who is found to be in fa,ult in following the footsteps of his predecessors? Are these acts' of Cleveland, McKinley, and Roosevelt lawful? Yes. It is a long-established rule of our courts that in construing a law which is to be applied by the Executive Department of the Government, the courts will sanction and accept the practical operation and effect given to the statute by those charged with the duty of putting it in force, unless such interpretation of the law is repugnant to its plain intent and meaning. For ten years the Government has regarded old age as a disability entitling a soldier or sailor of the civil war to a pension under the act of June 27, 1890, which grants pensions to those who are unable to support themselves by manual labor. Congress has uniformly ap- propriated the money necessary to pay these old age pensions These appropriations are all recognitions and approvals of the executive action granting old age pensions. The courts hold that such sanction by Congress is conclusive on judicial tribunals- President Roosevelt's Order No. 78, of March 15, 1904, is there- fore the law of the land — having the authority of the executive, legislative, and judicial departments of the Government The propositions of law, maintained in this' letter, are supported by familiar cases to be found in the reports of the Supreme Court of the United States. See McKeen vs. Delany, 5 Cranch, 22; Brown y^ T T-T S -i n L U - T S -' J 68; Th e Laura, 114 U. S., 411; U. S. vs. Graham, 110 U. S., 49; U. S. vs. Philbrick, 120 U. S., 52- U S vs Johnston, 124 U. S., 236. It is said that Order No 78 costs money. Yes, that is true Time is responsible for this — not Roosevelt. The veterans are growing old; thousands! of them, every year, pass the old age period of sixty-two. The War of the Rebellion began more than forty years ago. Most of the men who fought for the Union are past three-score years. The critics have the consolation of know- ing that death will soon terminate the pensions granted for old age. Both parties, Democratic and Republican, have recognized and adopted this humane and reasonable interpretation of the law The courts of the United States will sustain Order No. 78 whenever one of the critics of the President will venture to go into court to challenge its legality. The arrows of his assailants will fall harmless at his feet. The living veterans of the Civil War — their children and kindred, the descendants of the million who have died, and all of our people who cherish a manly sympathy for the needs of their defenders, now tottering towards their graves, will bless Roosevelt for his kindly and just action. Sincerely yours, (Signed) Daniel E. Sickles. Secretary Hitchcock on Pension Order No. 78. [Order No. 78.] Department of the Interior, Washington, March 28, 190%. The President pro tempore, United States Senate. Sir : Replying to Senate resolution No. 151, I have the honor to state that an order has recently been issued regulating the ad- ministration of the act of June 27, 1890. It is not considered, how- ever, that this Department has the authority to enlarge the pro- visions of that act or in any way to affect its just interpretation or that the order referred to does either. A copy of the order is contained in the report of the Acting Commissioner of Pensions, transmitted herewith. As some misunderstanding with reference to the interpretation and purpose of this order has existed, a brief review of pension legislation and the administration thereof in this Department is submitted for the purpose of showing that the order referred to is clearly within executive authority and in conformity with exist- ing law and the methods which have heretofore prevailed in its administration. Before the act of June 27, 1890, no pensions were granted ex- cept upon proof that the death or disability for which the pension was sought resulted from actual service. This act, however, pro- vided that any person who had served ninety days or more and who had been honorably discharged should receive a pension of not less than six nor more than twelve dollars per month, if proof were furnished that he was suffering from a permanent disability, not the result of vicious habits', which incapatiated him "from the performance of manual labor in such a degree as to render him unable to earn a support." Disability, partial or complete, to perform manual labor is the sole measure of the right to a pension under this act. The element of manual labor is fundamental. If in the adjudication of a pen- sion claim, it shall be determined that the applicant's pensionable disabilities render him wholly incapacitated for manual labor, his pension rating will be accordingly, even though the applicant may be then occupied, with distinguished usefulness, in some field of intellectual endeavor. It is well understood that there is a natural decay of the physical powers, due solely to age, which impairs man's capacity to "earn a support" by his own manual labor. Not only does the act itself provide that "each and every infirmity shall be duly 414 PENSIONS. considered," but the decisions under it uniformly recognize the principle that disabilities due to senility alone are pensionable. By an order (No. 241) issued by the Pension Bureau in Sep- tember, 1893, a copy of which is transmitted herewith, it was de- termined that "in a case in which the pensioner has reached the age of 75 years his rate shall not be disturbed if he is receiving the maximum ($12), and if he is not a pensioner he shall receive the maximum for senility alone, if there are no special disabili- ties shown." In the case of applicant Patrick Carroll the Department in February, 1893, decided that "old age or senility is a legal disabil- ity under the act of June 27, 1890, and the surgeons should have given their estimate of the amount of disability arising therefrom for the performance of manual labor and the earning of a support thereby. In July, 1895, in the case of applicant Jacob Rinkle, the Department affirmed the above named order No. 241. Later, in July, 1897, in the case of Francis Frank, it was held by the Department that "a claimant for pension under the act of June 27, 1890, who has attained the age of 65 years shall be en- titled' to at least the minimum rate of pension provided by that act." Although age, in connection with other disabilities, has always been considered in determining pension ratings under the act, there has never been any uniform rule for rating the infirmities due to the element of age with the exception of the two classes named. Such ratings therefore seem to have been governed by the varying opinions of the many who have been occupied with that duty, thereby imparting to that feature of pension adminis- tration something of uncertainty and inequality. To this fact, together with the growing importance or age conditions, is due in considerable measure the necessity for action on the line of this order specifically defining, as far as practicable, ratings from the best attainable data for infirmities due to senility. In the administration of the pension laws and the consideration of the immense number of cases that are pending under every act it is' impossible to secure uniformity and expedition in decisions without laying down conveinent rules for the weighing of evidence and prima facie presumption wheh long experience justifies. This has been the uniform course of the Pension Bureau since its estab- lishment. The order in question merely lays down as* a convenient rule of decision and a rebuttable presumption of fact that one who is otherwise entitled and is 62 years of age is partially disabled from earning a livelihood by hisi hands, that one who is 65 is more dis- abled for manual work, that one who is 68 is in a still greater degree incapable of earning a support by manual labor, and that one of 70 is completely disabled in this regard. Certainly such a presumption is justified by general experience in actual life. When it is understood that in the adjudications under this act age has always been considered a factor in connection with other disabilities, and when it is' further considered that for more than ten years there has been an established rating (the maximum al- lowed by law) based solely on the age of 75 years, and that for near- ly seven years there has been an established rating (minimum pro- vided by law) based alone on the age of 65 years, it will be appar- ent how largely problematical must be any estimate of increase of expenditures under the order of March 15, 1904. The Acting Commissioner of Pensions has given attentive con- sideration to the second paragraph of the resolution, and by ref- erence to his report it will be seen that he estimates that the order of March 15, 1904, will result in an increased expenditure annually of $5,400,000. Attention is' particularly invited to this branch of the Commis- sioner's report, wheh, while it shows the processes by which this result is reached and that it is the best approximation to accuracy practicable, reveals the fact that the calculation is to some extent necessarily speculative. Respectfully, E. A. Hitchcock, Secretary. The Lochran Old Age Pension Order of 1893. [Okdeb No. 241.] Department of the Interior, Bureau of Pensions, Washington, D. C, September 2, 1893. The circular of June 12, 1893, in respect to rating cases under the act of June 27, 1890, is withdrawn. Hereafter, in fixing rates under this act, the medical referee or the medical officer in the board of revision shall weigh each disability and determine the degree that each disability or the combined disabilites disables the claimant from earning a support by manual labor, and a rate cor- responding to this degree shall be allowed. In cases in which the pensioner has reached the age of 75 his rate shall not be disturbed if he is receiving the maximum, and if he is not a pensioner, he shall receive the maximum for senility alone if there are no spe- cial pensionable disabilities shown. Wm. Lochren, Commissioner. Acting Commissioner Davenport on Order No. 78. Department of the Interior, Bureau of Pensions, Washington, March 21, 190%. Sir : In compliance with the accompanying resolution of the United States Senate, I have the honor to inclose a copy of the PENSIONS. 415 \ order, dated March 15, 1904, which is probably the one referred to by that honorable body. This order does not, in the opinion of this Bureau, enlargo "the pension act of June 27, 1890, and amendments as to disabilities of applicants for pensions," but simply construes said act in its application to the granting- of pensions thereunder. Inability to earn a support by manual labor from any cause is the guide to rating. "Pensions not exceeding $12 per month and not less than $6 per month, proportioned to the degree of inability to earn a support," is the wording of the law. Special diseases and disabilities are not the only factors that produce inability to perform manual labor. The bodily infirmities natural to advancing age must be recognized in considering claims under the law. Manual labor alone enters into consideration, and to determine the degree of inability to earn a support thereby is a difficult problem to solve in such a way as to distribute pensions equitably to deserving applicants unless some rule for the guidance of the Bureau is adopted. While it is an established fact that men of great age retain their intellectual capacity and mental activity in the highest degree it is also an established fact that the man who earns his support by hard manual labor finds at the age of 62 his ability diminishing and employment difficult to obtain. The amount the order will "increase pensions annually, and particularly when the same shall become fully operative," can be only roughly estimated. There are supposed to be living today about 875,000 ex-Union soldiers of the civil war. Of these there are pensioned under the act of July 14, 1862, known as the general law, about 265,000, and under the act of July 27, 1890, about 428,000, aggregating 693,000, which, deducted from the whole number of survivors, leaves 182,- 000 who have not applied for pension. To state definitely how many of this number failed to serve the required ninety days and receive final honorable discharge would be impossible. One-fourth seems a fair estimate and reduces the number to 136,500. To say that 75,000 of these have reached the age of 62 and will apply seems' a reasonable estimate. If these 75,000 are all placed on the rolls at $6 a month, or $72 a year, the output for pensions will be increased $5,400,000 annually. The pension roll is diminishing rapidly, owing to deaths of beneficiaries, and in all probability this decrease will offset any gains caused by claims of soldiers who have reached the age of 65 and upward. I have the honor to remain, your obedient servant, J. L. Davenport, Acting Commissioner. The Secretary of the Interior. Order No. 78. Department of the Interior, Bureau op Pensions, March 15, 190k- Whereas the act of June 27, 1890, as amended, provides that a claimant shall "be entitled to receive a pension not exceeding twelve dollars per month and not less than six dollars per month proportioned to the degree of inability to earn a support, and in determining such inability each and every infirmity shall be duly considered, and the aggregate of the disabilities shown to be rated;" and Whereas old age is an infirmity the average nature and extent of which the experience of the Pension Bureau has established with reasonable certainty; and Whereas by act of Congress in 1887, when thirty-nine years had elapsed after the Mexican war, all soldiers of said war who were over 62 years of age were placed on the pension roll; and Whereas thirty-nine years will have elapsed on April 13, 1904, since the civil war, and there are many survivors over 62 years of age Now therefore, Ordered, (1) In the adjudication of pension claims under said act of June 27, 1890, as amended, it shall be taken and considered as an evidential fact, if the contrary does not appear, and if all other legal requirements are properly met, that, when a claimant has passed the age of 62 years, he is disabled one-half in ability to perform manual labor, and is entitled to be rated at six dollars per month; after 65 years, at eight dollars per month; after 68 years, at ten dollars per month, and after 70 years, at twelve dol- lars per month. (2) Allowances at higher rate, not exceeding twelve dollars per month, will continue to be made as heretofore where disabili- ties other than age show a condition of inability to perform manual labor. (3) This order shall take effect April 13, 1904, and shall not be deemed retroactive. The former rules of the office fixing the mini- mum and maximum at 65 and 75 years, respectively, are hereby modified as above. E. F. Ware, Commissioner of Pensions. Approved. * E. A. Hitchcock, Secretary. 416 THE PROBLEM OF OUR COLORED CITIZENS. THE PROBLEM OF OUR COLORED CITIZENS. This problem, heretofore a subject of more or less academic discussion, has been made a political question by the recent action of most of the Southern States in so amending their state consti- tutions as to nullity the plain intendment of the Federal Consti- tution as modified by the XlVth and XVth Amendments thereto. Article XIV provides that "All persons born or naturalized in the United States, and subject to the jurisdiction thereof, are citizens of the United States and of the state wherein they reside. No state shall make or enforce any law which shall abridge the privi- leges or immunities of citizens of the United States." * * * Article XV provides that "The right of citizens of the United States to vote shall not be denied or abridged by the United States or by any state on account of race, color, or previous condi- tion of servitude." It is provided, also, that the Congress shall have power to enforce these articles by appropriate legislation. These amendments, the recorded judgment and will of the na- tion, crystallize the patriotism and the sacrifice of a million heroes who fought for liberty and union. It is upon the practical acceptance of the great principles un- derlying these constitutional guaranties that the two leading par- ties fundamentally differ, and a careful reading of the records of the Republican party and of the Democracy relative thereto will leave little room for choice as to which party promises most for the ultimate strength and glory of the Nation. No more striking contrast as to the attitude of the two great parties touching their adherence to the principle that "all men are created equal" can be made than that afforded by the course of events Nor^h and South during the past quarter of a century. In the North, where Republicanism is strongest, colored citizens, although a minority of the population, are given participation in the control of municipalities, counties, and states, and are fre- quently elected to public office in these respective units of our governmental system; in the South, the stronghold of Democracy, the colored citizen is being systematically disfranchised and barred from effective participation in the conduct of public affairs, and each year witnesses a narrowing of his political and civil rights. The mere mention of the facts well known to every observer of the times will suffice to indicate the relative attitude of the two great political parties toward the colored citizen. The Republican party believes in the political equality of all men without refer- ence to race or nationality, and this belief it has supported by the most costly and sanguinary war in our national history. The Democratic party believes in restricting the privilege of citizenship to a particular class, and has written her opinions into the statutes, constitutions, and practices of nearly every Southern State where that party Is dominant. The Republican party be- lieves in the doctrine so tersely expressed by President Roosevelt —"All men up rather than some men down" — and it has always encouraged the colored citizen in his efforts and ambition to rise higher in the scale of civilization. The Democratic party would deny to the negro the incentive to high aspirations, and boasts through its representatives of its purpose to exclude colored men from any voice in the control of local affairs. Senator Gorman, high in the Democratic counsels of his party, clearly stated the manifest intention of the Democracy to de-citizenize, as far as possible, the colored voters of the country, and in a recent speech declared : "The South has passed through scenes of turbulence and disorder and rape and riot. By amendments to State con- stitutions and by legislation the whites (of the South) have se- cured control, for the time being, of their own local governments, and the colored race is no longer a political factor in any State south of the Potomac." Here is a frank admission that Democ- racy no longer respects the time-honored maxim that "govern- ments derive their just'p° wers from the consent of the governed," and that only a portion of the citizenry are, in the opinion of its leaders, entitled to a voice in public affairs. THE PROBLEM OF OUR COLORED CITIZENS. 417 The Republican party encourages the highest character in the negro ; the Democratic party seeks to degrade it. No Re- publican legislature has ever enacted laws inimical to the progress, happiness, and comfort of any class of citizens; numerous Demo- cratic legislatures, on the other hand, have enacted laws which make it impossible for a colored person of refinement to travel in decency or comfort from one part of a State to another. No Republican governor would dare veto a measure for the education of any class of citizens in the rudiments of knowledge. Yet that is just what has recently been done by the chief executive of Mississippi. The Republican party is on record as being in favor of the most liberal policies with respect to negro education, be- lieving that no other position is consistent with the preservation of popular institutions. The present liberal policy of the Republican party is in keep- ing with the broad statesmanship which has characterized it from the beginning. Prior to the accession of the Republican party to power a race of 4,000,000 souls had suffered the wrongs and cruelties of human slavery, with no redress either in the courts, in Congress, or at the bar of public opinion. In all the years from 1619, when the first cargo of slaves was landed at Jamestown, Va., to 1856, when the Republican party had its birth, both organic and statutory law formed an impassable bar to negro hopes and ambitions. But with the birth of that party a marked change occurred. It is unnecessary to recount the causes which led up to the war of the rebellion. Suffice it to say, as a result of that war, under the leadership of a Republican President, supported by a Republican Congress, 4,000,000 negroes were emancipated from slavery, invested with citizenship, and made an integral part of this great Republic, to share in its glories and opportunities, bound only by the limitations of in- dividual capacity and worth. Unwilling, however, to rest the security of the negro's rights upon mere legislative enactment, the Republican party, through the co-operation of Republican States, gave to negro citizenship the supreme sanction of Con- stitutional guaranty. It was only then that the Declaration of Independence, now so ostentatiously quoted by the Democracy as the embodiment of their party principles, but which for nearly 100 years had been ignored and repudiated by their party practices, first became the true expression of our national policy. Following this change in the political status of the colored population came a period of preparation for citizenship. Thou- sands of Northern men and women, schooled under the tutelage of Republican environment in the works of philanthropy and justice, dedicated their money, their time, and even their lives to the education and elevation of those emancipated millions. Hence the colored school and the colored church under the guidance of white philanthropists sprang into existence, only to be followed by similar institutions organized and controlled by colored citizens. But this leaven of intelligence could never have been imparted to the black masses of the South but for the opportunities first opened as a direct result of Republican principles and policies. The outbreak of hostilities between the United States and Spain afforded another opportunity for the Republican party to demonstrate its loyalty to the broad principles set forth in the Declaration of Independence and given legal sanction by the XlVth and XVth Amendments to the Constitution, already quoted. In that war over 15,000 black soldiers were called into service, among them nearly 300 colored officers, a fact without precedent in all our national history. Their service was characterized by gallantry and bravery which aroused the admiration of the world, the valor of the black troops at San Juan Hill contributing largely to the victory achieved on that occasion. As a mark of recogni- tion of the heroic service rendered by black soldiers, President McKinley, in 1899, issued an order for the organization of two infantry regiments of colored men. Despite the protests of the Democrats this was done and the regiments have been designated respectively the Forty-eighth and Forty-ninth Volunteer Infantry, with headquarters at Fort Thomas, Ky., and Jefferson Bar- racks, Mo. Thus the war with Spain, in addition to its primary object, 418 THE PROBLEM OF OUR COLORED CITIZENS. served a two-fold purpose. It emphasized the policy of the Re- publican party in honoring the colored citizen both in war and peace; and the black soldier in that war, by patriotism and valor, proved to the world that citizenship had not been un- worthily bestowed. In face of the foregoing facts, the colored voter and others doubtful of the wisdom of continuing the control of the present Administration may well be asked whether or not the rights of the American negro at home and the destinies of the inhabitants of those islands now belonging to the United States are not safer with the Republican party, which by tradition and legislation has identified itself with the cause of human freedom and uni- versal opportunity, than with the Democracy. Upon the record of its treatment of American citizens of whatever race, color, or nativity, the Republican party rests its claim upon the confidence of the country as to its intentions in the islands recently added to the domain of the United States. Nei- ther the speciousness of Democratic platform deliverances, the eloquence of Democratic oratory, nor the idle generosity of Demo- cratic promises can obscure the Democracy's unenviable record upon every question that pertains to human rights. "Charity begins at home," and until that party accords justice to all the inhabitants of the States under its control it cannot claim the suffrages of the colored people of this country who seek ameliora- tion of their civil and political status nor of that greater body of American citizens whose only interest in the issue of the present struggle is the honor and stability of our own nation, and the welfare and advancement of those peoples who have recently be- come the wards of the American nation. The following are a few expressions from leading Democrats that clearly indicate the policy of their party respecting the colored citizen: "The 12,000,000 white people of the 11 Southern States have irrevocably, finally, and almost unanimously determined that they will prevent, by every constitutional means in their power, these people from exercising 1 the elective franchise." — Hon. T. W. Hard- wick, Democratic Congressman, Georgia, "I am opposed to the nigger's voting, it matters not what his advertised moral and mental qualifications' may be. I am just as much opposed to Booker Washington's, with all his Anglo-Saxon reinforcements, voting as I am to voting by the cocoanut headed, chocolate colored, typical little coon Andy Dotson, who blacks my shoes every morning. Neither one is fit to perform the supreme functions of citizenship." — Governor Vardeman, Democratic Gover- nor of Mississippi. "We would not withhold from the negro any of his 'rights,' but we do not regard the right of suffrage as one of his rights, or as being essential in any way to the protection of his life or prop- erty, or to his pursuit of happiness." — Charleston News and Courier. THE PROPOSED INVESTIGATION OF VIOLATIONS OF THE FOURTEENTH AMENDMENT TO THE CONSTITUTION. The justification of this plank of the platform rests upon a few simple though important facts and principles, which may be briefly stated: Under the Constitution as it existed before the civil war suf- frage was, for all practical purposes, under the exclusive control of the States. Each State had the right to prescribe such quali- fications of its electors as it deemed best suited to its own interest. The State could confer or withhold the right to vote according to its will expressed in its constitution and laws, which were supreme in that respect. The only limit (if there be a limit) to this abso- lute authority suggested by the Constitution is contained in the national guaranty to every State of a republican form of govern- ment, Article IV, Section 4, of the' Constitution ; the only condi- tion imposed upon its exercise is that the electors of the members of the House of Representatives shall have the qualifications re- quired for the electors of the most numerous branch of the State legislature. THE PROBLEM OF OUR COLORED CITIZENS. 419 In the exercise of this power the several States from time to time fixed and determined their own electorates, sometimes ex- cluding the illiterate, sometimes excluding those without a certain amount of property, and almost universally, north and south alike, excluding the negro race. This was done without any possibility of affecting the representation in Con- gress or in the electoral vote, which was then, by Article I, Section 2 of the Constitution, proportioned (as'* direct taxes are proportioned) to the number of free persons plus three-fifths of the slaves. But the civil war brought about two radical changes in the Constitution with respect to suffrage, one expressed in the 14th Amendment to the "Constitution and the other expressed in the 15th Amendment to the Constitution. The second section of the 14th Amendment to the Constitution, which deals with the suffrage question, is as follows: "Section 2. Representatives shall be apportioned among the several States according to their respective numbers, counting the whole number of persons in each State, excluding Indians not taxed. But when the right to vote at any election for the choice of electors for President and Vice-President of the United States, Representatives in Congress, the Executive and Judicial officers of a State, or the Members of the Legislature thereof, is denied to any of the male citizens of such State being twenty-one years' of age, and citizens of the United States, or in any way abridged, ex- cept for participation in rebellion, or other crime, the basis of representation therein shall be reduced in the proportion which the number of such male citizens shall bear to the whole number of male citizens twenty-one years of age in such State." It is obvious that this amendment did not confer the right of suffrage upon the negro race, nor in any way limit the full power of each State to fix the qualifications of its voters as it chose. Each State was free to limit the right of suffrage as it chose, to disfranchise those who were illiterate or without property, or those belonging to the negro race. The prevalent opinion in the Republican party at the time the 14th Amendment was passed was, that the negroes lately released from bondage were not yet fitted for the duties of citizenship. But this amendment for the first time imposed upon any State which should, as it had a right to do, exclude from the electorate any of its male inhabitants twenty-one years of age, citizens of the United States, and guilt- less of crime, the penalty of a reduction of its representation in the House of Representatives and in the electoral college. The amendment provides that the basis of apportionment of repre- sentation should be not the total population of the State, but that population diminished by such a percentage of itself as the num- ber of citizens denied the right to vote constitute of the whole number of male citizens. As, by the 13th Amendment to the Constitution slavery had been abolished, under the Constitution as it existed before the passage of the 14th Amendment the States wherein slavery had existed would have received a considerable increase in representa- tion in the House of Representatives and in the electoral college, because those who had been slaves and had theretofore counted as three-fifths of a man in escertaining representation, each counted as a single man when he became free. As there were some four and a half millions of slaves who were freed by the 13th Amendment to the Constitution, the extraordinary spectacle would have been presented of the States lately at war with the Union returning within it with an increased political power meas- ured by two-fifths of the four and one-half millions of freedmen, and expressed by from thirty to forty additional seats in Congress and votes in the electoral college. It was then assumed that the Southern States would continue to confine the right of suffrage to the white race and accept the diminution in political power im- posed by the 14th Amendment. It was hoped that the temptation of an increase of political power would result in the States grad- ually, from time to time as they judged it safe to do so, conferring the right of suffrage upon freedmen who in one way or another should prove that they were worthy of it. But the slave States rejected contemptuously the 14th Amendment and passed laws for the government of the freedmen which caused great apprehension, well described in Mr. Blaine's "Twenty Years in Congress." Then followed the 15th Amendment to the Constitution, which is as follows : 420 THE PROBLEM OF OUR COLORED CITIZENS. "Section 1. The right of citizens of the United States to vote shall not be denied or abridged by the United States or by any State on account of race, color or previous condition of servitude. "Section 2. The Congress shall have power to enforce this ar- ticle by appropriate legislation." This amendment does not confer the right of suffrage upon any person. It, however, for the first time limits the right of a State to deal with that subject. A State still has the power to prescribe the qualifications for suffrage. It may at will exclude those without property. It may still at will exclude the illiterate, but if it excludes the illiterate negro it must by the same law exclude the illiterate white man. In the eyes of the 15th Amend- ment all races admitted to our citizenship are entitled to impar- tial treatment in respect of suffrage. In many of the States recently new constitutions have been adopted with the avowed purpose of excluding as many as possi- ble of the negro race from the right of suffrage and including as many as possible of the white race in the right of suffrage. Whether these constitutions, examples of which are printed below, are violative of the 15th Amendment and therefore void is too large a question for discussion here. If such a violation has occurred, by Section 2 of Article XV Congress has authority to deal with the subject. Passing by that, however, it is a matter of common knowledge that the effect of these new constitutions is to exclude voters, mostly of the negro race, by the tens of thousands from the electorate. Thus there is presented the exact condition to which the 14th Amendment is intended to apply. The plank of the platform under consideration favors an in- vestigation by Congress of the subject, and after the facts are ascertained a reduction of representation in accordance with the Constitution. It is a mistake to suppose that this planlk refers to the Southern States alone. Many other States exclude from their electorates substantial portions of their male citizens wenty- one years of age, notably the States of Massachusetts, Connecticut, and California. Extracts from the constitutions of those States are printed below. It is clearly just that any reduction under the 14th Amendment which Congress may adopt should apply equally to all of the States of the Union. Any investigation which Congress undertakes should be conducted with respect to all the States where there is any denial of the right of suffrage to any of their citizens. This is the obvious meaning of the plank. This utterance of the convention has been bitterly attacked as sec- tional and calculated to arouse race hatred. It is neither. The Republican party has the right to discuss the interpretation and enforcement of any part of the Constitution of the United States. The demand is made that we stand mute by men who themselves embrace every opportunity, on the platform, in the pulpit, and in the press to put forward their own views upon this great subject. The Republican party by the action of its convention has declined to comply with this demand and has brought forward the subject for discussion. It may be confidently hoped that the just and constitutional representation of the people of the several States in the House of Representatives and the electoral college may re- ceive earnest consideration and temporate discussion. That each State shall receive only its just share in the political power of the nationnation is the right of every other State, because the power of no State can be unlawfully increased except at the expense of unlawfully decreasing the power of the other States. We may be assured that any action which may hereafter be taken will be with scrupulous regard to the rights of every State, and will seek to impose upon none any other law or rule than that which the Constitution itself commands. The New Election Laws In the South. The following are the sections of the Mississippi, Louisiana, and North Carolina election laws framed for the avowed pur- pose of depriving colored citizens of their constitutional right to vote. The number of colored males of voting age in these three States was in 1900 472,398 and now presumably reaches 500,000, thus representing a population of nearly 2,500,000 in these States alone. It will be seen that the Louisiana and North Caro- lina laws are especially framed for the purpose of making the THE PROBLEM OF OUR COLORED CITIZENS. 421 educational test apply only to the colored population, and all persons who were voters prior to January 1, 1867, and the lineal descendants of all persons who were voters prior to that date are exempt from the provision of the law which disqualifies per- sons because of illiteracy. Mississippi. "Section 244. On and after the first day of January, 1892, every elector shall, in addition to the foregoing qualifications, be able to read any section of the Constitution of this State; or he shall be able to understand the same when read to him, or give a reasonable interpretation thereof. * * * Louisiana. "Section 3. He (the voter) shall be able to read and write, and shall demonstrate his ability to do so when he applies for regis- tration, by making, under oath administered by the registration officer or his deputy, written application therefor, in the English language or his' mother tongue, which application shall contain the essential facts necessary to show that he is entitled to register and vote, and shall be entirely written, dated and signed by him, in the presence of the registration officer or his deputy, without assistance or suggestion from any person or memorandum what- ever, except the form of application hereinafter set forth. * * * "Section 5. No male person who was on January 1st, 1867, or at any date prior thereto, entitled to vote under the Constitution or statutes of any State of the United States, wherein he then re- sided, and no son or grandson of any such person not less' than twenty-one years of age at the date of the adoption of this Con- stitution, and no male person of foreign birth, who was natural- ized prior to the first day of January, 1885, shall be denied the right to register and vote in this' State by reason of his failure to possess the educational or property qualifications prescribed by this Constitution; provided, he shall have resided in this State for five years next preceding the date at which he shall apply for registration, and shall have registered in accordance with the terms of this article prior to September 1, 1898, and no person shall be entitled to register under this section after said date." North Carolina. "Section 4. Every person presenting himself for registration shall be able to read and write any section of the Constitution in the English language. * * But no male person who was, on January 1, 1867, or at any time prior thereto, entitled to vote under the laws of any State in the United States wherein he then re- sided, and no lineal descendant of any such person shall be de- nied the right to register and vote at any election in this State by reason of his failure to possess the educational qualifications herein prescribed, provided, he shall have registered in accordance with the terms of this section prior to December 1, 1908. "The General Assembly shall provide for the registration of all persons entitled to vote without the educational qualifications herein prescribed, and shall, on or before November 1, 1908, pro- vide for the making of a permanent record of such registration, and all persons so registered shall forever thereafter have the right to vote in all elections by the people in this State, unless dis- qualified under 'section 2 of this article: Provided, such person shall have paid his poll tax as above described." The following are state constitutional provisions regarding the right of suffrage in certain northern states : /-■ Massachusetts. "Art. XX. No person shall have the right to vote, or be eligi- ble to office under the constitution of this commonwealth, who shall not be able to read the constitution in the English language, and write his name: provided, however, that the provisions of this amendment shall not apply to any person prevented by a physical disability from complying with its' requisitions, nor to any person who now has the right to vote, nor to any persons who shall be sixty years of age or upwards at the time this amendment shall take effect." Connecticut. "Art. VIII," as amended. "Every male citizen of the United States who shall have attained the age of twenty-one years, who shall have resided in this State for a term of one year next pre- ceding and in the town in which he may offer himself to be ad- mitted to the privileges of an elector, at least six months' next pre- ceding the time he may so offer himself, and shall sustain a good moral character, shall, on his taking such oath as may be pre- scribed by law, be an elector." "Art XI. Every person shall be able to read any article of the Constitution or any section of the statutes of this State before being admitted an elector." 422 THE PROBLEM OF OUR COLORED CITIZENS. California. "Art. ir .Section 1. Every native male citizen of the United States, every male person who shall have acquired the rights of citizenship under or by virtue of the treaty of Queretaro, and every male naturalized citizen thereof, who shall have become such ninety days prior to any election, of the age of twenty-one years', who shall have been resident of the State one year next preceding the election, and of the county In which he claims his vote ninety days, and in the election precinct thirty days, shall be entitled to vote at all elections which are now or may hereafter be author- ized by law: provided, no native of China, no idiot, no insane per- son, no person convicted of any infamous' crime, no person here- after convicted of the embezzlement or misappropriation of public money, and no person who shall not be able to read the constitu- tion in the English language and write his name, shall ever exer- cise the privileges of an elector in this State: provided, that the provisions' of this amendment relative to an educational qualifi- cation shall not apply to any person prevented by a physical dis- ability from complying with its requisitions, nor to any person who now has the right to vote, nor to any person who shall be sixty years' of age and upwards at the time this amendment shall take effect." The following table, compiled from official data, shows the number of colored employees in the service of the Government, exclusive of the United States Capitol and the judiciary : Colored Officers, Clerks, and Other Employees in the Service of the United States Government, 1904. Diplomatic and consular service Departmental service : State Treasury War Navy Post-Offlce Interior Justice Agriculture Commerce and labor Government Printing Office Interstate Commerce Commission District government, Washington, D. C Recorder of deeds Service at large : Customs and internal revenue Post office at large Land office, New Orleans Miscellaneous Army officers Total Recapitulation by localities : At foreign stations At Washington, D. C At New York. N. Y At New Orleans, La At Atlanta. Ga At Savannah, Ga At Augusta, Ga At Baltimore, Md At Richmond. Va At miscellaneous points Army officers Total No. Salaries 13 $32,000 10 7.600 596 391,834 122 94.910 42 29,736 103 66,840 219 167,260 17 13.520 100 53,272 125 78,856 320 210.874 4 2,280 1,891 847,055 22 14,050 258 205,047 750 611,140 3 7,800 5 2.400 10 17,260 4.610 $2,853,734 13 $32,000 3,663 2,056,727 188 153,982 108 96,740 94 65,780 42 32,766 12 8,120 40 31.444 50 37,820 390 321,095 10 4,610 $2,853,734 The fact that nearly 5,000 colored citizens are in the public service and receiving salaries aggregating about three million dollars furnishes further evidence of the broad and liberal policy of the Republican party, while the further fact that the colored employees are proverbially faithful, courteous, and efficient is am- ple justification of the attitude of the party toward the freedmen of the nation. We ask that sober and sensible men compare the workings of the present tariff taw and the conditions which obtain under it, with the workings of the preceding tariff law of 1894 and the con- ditions which that tariff of 1894 helped to bring about. — President Roosevelt's speech accepting 1904 nomination. VOTE FOR REPRESENTATIVES IN CONGRESS, 1900 AND 1902. 423 Vote for Representatives in Congress, 1900 and 1902. State. 1900. Rep. Dem. 1902. Rep. Dem. Alabama Arizona Arkansas. California..... Colorado Connecticut Delaware Florida Georgia Hawaii Idaho..... Illinois Indiana Iowa v Kansas Kentucky Louisiana Maine Maryland Massachusetts.. Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina. North Dakota... Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina.. South Dakota .. Tennessee Texas „ Utah Vermont Virginia Washington West Virginia.. Wisconsin Wyoming Total 36,334 7.716 42,785 180,549 92,811 102,559 21,711 5,254 11,605 (2)3.783 26,860 591,886 330,775 304,302 180,979 228,476 14,554 72,908 135,404 230,376 312.902 158,396 2,579 313,814 34.887 112,952 4,190 53,502 250,822 21,567 808,474 122,879 35,891 537,016 38,253 43 300 683,941 30.941 3.100 54.530 96,921 82,229 46.180 46,718 98,730 110,661 118,213 260,644 14,539 104,626 8.664 84.258 142,321 (1)121.011 74,521 18,529 26,451 83,504 1.567 28,087 502,187 310.847 212.847 162.652 233.002 52,925 40.485 122 778 143,356 216,664 105,895 47,549 854,080 21.175 (1)109.988 5.975 34,918 199,268 17 857 669 012 162 260 20 519 479 168 33,529 30,902 411 552 18,715 47,«27 89,554 116,030 296,978 45,939 16,732 165 069 90 330 100 598 160,834 10,017 6,593 152,363 85.297 6,636 32,834 406,560 296,185 223,021 158,307 122,746 4,047 63,481 100,054 192,580 228,399 158,843 230,749 24,626 98,337 5,101 44,629 183,576 24,222 651,838 68,938 32,986 439,765 45,763 48,082 619,805 28,215 742 48,454 53,618 55,320 43,710 33.539 38,129 59,366 100,223 194,885 15,808 67,667 9,716 32,823 126,290 84,348 70,589 16,396 16,340 39,967 4,696 24,878 373,488 268,940 158,849 115,342 168,652 22,218 38,633 91,606 150 055 155,732 90,791 18,058 274,220 19,560 89,214 5,876 30,204 164,199 14,576 633,570 135,819 14,765 337,656 45,469 31,811 303,201 27,853 31,343 21,113 98,766 286,787 38,196 8,544 82,226 34,315 88,350 137,056 8.892 .853,905 6,163,311 (1) Fusion. (2) Wilcox, Ind. Home Ruler, elected Delegate to Congress from Hawaii in 1900. In twenty yetirs the -workshop of the world has become the dumping ground of the world. — London Daily Telegraph, December 10, 1903. To be an American citizen to-day means more than ever be- fore; it means greater opportunity and enlarged responsibility.— Hon. C. W. Fairbanks, at Baldwin, Kas., June 7, 1901. The question of human rights and human liberty are the po- tential questions which have summoned our mightiest armies and have assembled our fleets and stirred our country to the utmost depths. — Hon. C. W. Fairbanks, in U. S. Senate, February 22, 1902. The foundation of our whole social structure rests upon the material and moral well-being, the intelligence, the foresight, the sanity, the sense of duty, and the wholesome patriotism of the wage-worker. — President Roosevelt at Labor Day picnic, Chicago, Sept. 3, 1900. The menace of 16 to 1 still hangs over us with all its dire con- sequences 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 Notification Committee, July 12, 1900. 424 POPULAR AND ELECTORAL VOTE FOR PRESIDENT IN 1900. Popular uml electoral vote for President in 1900. Popular vote. Electoral vote. Hep. Pro - De^m. 1 Labor Pop - PlBrallt y' Dem. Rep Alabama , Arkansas California Colorado , Connecticut. Delaware Florida Georgia Idaho Illinois Indiana Iowa Kansas Kentucky.... Louisiana.... Maine Maryland.... Massachusetts. Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada N. Hampshire New Jersey New York North Carolina North Dakota. Ohio Oregon Pennsylvania. Rhode Island. South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington.... West Virginia Wisconsin Wyoming 97,131 81, 142 124,986 122,733 73,997 18,858 28,007 81,700 29,414 503,061 309,584 209,179 162,601 235,103 68,671 36,822 122,271 166,997 211,685 112,901 61,706 851,922 37,146 114,018 6,347 85,489 164,808 678,386 167,752 20.519 474,882 33,385 424,232 19,812 47,286 39,544 144,751 267,337 45,006 12,849 146,080 44,833 98,807 159,285 10,164 54,512 14,800 164,755 93,072 102,567 22,529 7,314 85,085 26,997 697,985 336,063 807,785 185,955 227,128 14,233 65,435 136,212 238,866 316,269 190,461 5,758 314,092 25,373 131,835 3,849 54,803 221,707 821,992 133,081 35,891 543,918 46,526 712,665 38,784 3,679 64,530 121,194 121,173 47,139 42,568 115,865 57,456 119,829 265,866 14,482 2,762 584 6,024 3,790 1,617 538 1, 1,396 857 17,623 13,718 9,479 8,605 8,780 2,585 4,582 6,202 11,859 8,555 5,965 298 3,655 1,270 7, 22,043 1,006 731 10,203 2,536 27,908 1,529 1,542 3,900 2,644 209 2,150 2,368 1,692 10,124 7,554 651 1,029 57 601 9,687 2,874 2,778 1,605 646 ""878 908 9,607 2,826 3,065 6,139 708 790 4,609 12,869 518 4,847 1, 4,831 176 410 1,841 720 2,006 268 524 4,178 972 387 1,373 663 259 1,070 4,584 2131 1,141 1,488 618 391 2,699 903 1,829 1,294 1,644 4,244 1,104 2,074 12,622 1,688 no 251 208 1,423 16020,976 106 367 274 7,065 41.619D 86, 342 D 89, 770 R 29,661 D 28,570 R 3,671 R 20,693 D 26,665 D 2,216 D 94,924 R 26,479 R 98,606 R 28,854 R 7,975 D 89,438 D 28.613R 18,941 R 81,869 R 104, 684 R 77,560 R 45,953 D 37,830 D 11,778 D 7,822 R ♦2.498D 19, 814 R 56,899 R 143,606 R 24,671 D 15,372 R 69,036 R 13, 141 R 288, 438 R 13,972 R 43,657 D 14,986 R 23,557 D 146, 164 D 2.183R 29, 719 R 30,215 D 12,623 R 21,022 R 106,581 R 4,318 R 11 12 15 3 4 12 ..... 4 6 12 3 Total 6,358,133 7,207,923 208,914 87,814 50,373 155 292 Popular vote, McKinley over Bryan 849,790 Popular vote, McKinley over all 456,259 Electoral vote, McKinley over Bryan 137 Total popular vote, all candidates 13,959,653 Total popular vote, including scattering votes. . . 13,961,566 So long: as labor Is deemed honorable there need be no con- cerns as to the future. — Hon. C. W. Fairbanks, in a Labor Day ad- dress at Kansas City, Mo., September 1, 1902. What has been done for the tin-plate manufacturers in the United States can be done for American shipbuilders and American shipowners. — Hon. Wm. S. Greene, in Congress, April 28, 1904. The Republican party stands now as ever, for honest money and a chance to earn it by honest toil. — Prom an address by Hon. \\ m. McKinley before the Marquette Club, Chicago, Feb. 12, 1896. It is no longer a question of expansion with us; we have ex- panded. If there is any question at all it is a question of contrac- tion; and who is going to contract? — President McKinley at Iowa Falls, Iowa, Oct. 16, 1899. In the Post-Office investigation the source of corruption, the fountain head from which flowed the whole miserable business, was found not in a Republican, but in a Democratic Administra- tion, and it was a Republican Administration which applied the lancet and let free the poison.— Hon. Albert J. Beveridge, in the Senate,, April 1, 1904. PRESIDENTIAL VOTE 1856-1900. 425 ?S t* to to to to i to to .<§ . to •e *5S ""a k a s| ?-r © to to I II a &? 8S .2-° £§. 8 to 5*. ** O 8 ^2o •§ to § .4=0 £ fl 9 4> 4) ft O ft 6 SI co 05 r- oo m m ■* m co co co co S3 w cb eo eo 5< § 3! 3< 3< r?oooon i-H ■* oj eo 10 05oo«5g5(MaocDco-*io 06 t-. cq i-« © •>* 05 •* in >h «5 $p ■* ■*" cp o" •*" •* o" w ,05" os" tr sa n in -*" 05" m" -H co" ■** to' •sss 00 0* SO CO to to ^ § £5§SSco?5ocoS» 0* cq qqooiacoow^ffl th 50 co*m't>*co"qq*»*-(«M •h i-h ©j mco -<*■*■* m* 10 t>*t>- 00 in in go 05* 3;" -*»<' o mZ 55 ^'^ 4? is ° CD £* O ftp "1 ft oflOTJ, Co«h : aiX a),-, cy<^c<, a> •rj > as a) "^ 4>- t- a> >13 1 C JO! Our Government should be as exacting from foreigners as from Americans. Make them pay duty -while we pay taxes. — Hon. P. C. Cheney. I fancy the people will be found pretty well content with an Administration which did not hesitate to say, "Let no guilty man escape," and then enforced that order* — Hon. Albert J. Beveridge, in the Senate, April 1, 1904. Those who denounce the gold standard and assail its supporters must have read to no profit the splendid and incomparable history of their country Hon. C. W. Fairbanks, in U. S. Senate, March 5, 1900. I would like to impress upon every public man, upon every writer in the press, the fact that strength should go hand in hand with courtesy, with scrupulous regard in word and deed, not only for the rights, but for the feelings, of other nations. — President Roosevelt at Waukesha, Wis., April 3, 1903. I would rather have my boys taught to think the finest thing in life is the honesty and frankness, the truth and loyalty, the honor and the devotion to his country of Theodore Roosevelt than to have them in possession of all the wealth In this great metropo- lis — Hop. KHhu Root, at New York, Feb, 3, 1904, 426 m'kinley states vs. ijryan states. THE McKINUEY STATES VERSUS THE BRYAN STATES. Educational, Financial* and Industrial Conditions in the States Carried by McKinley and Bryan, Respectively, in 1000. The table presented on the opposite page shows conditions in population, literacy, educational facilities, educational expendi- tures, industries, savings bank deposits, and other measures of conditions in each of the states carried by McKinley and Bryan, respectively, in 1900. It will be noted that the states which gave their electoral votes to McKinley in 1900 had 60.2 per cent, of the population of the country, and those which gave their votes to Bryan 33.8 per cent. The McKinley states, although they had two- thirds of the population, had but 31 per cent, of the illiterate white population, while those giving their vote to Bryan had 69 per cent. The McKinley states show a total expenditure for public schools amounting to 189 million dollars, or 85 per cent, of the total, while the Bryan states show a total of but 33 million dollars, or only 15 per cent, of the total public school expenditures of the United States. Of the value of the real property of the United States, amounting to 25 billions of dollars, 84 per cent, was located in the McKinley states and but 16 per cent, in the Bryan states ; and of the personal property of the country, amounting to 8 billions of dollars, 74 per cent, was in the states which gave their electoral votes to McKinley and 26 per cent, in those which gave their votes to Bryan. Of the value of the farm products of the United States in 1899, 67.8 per cent, was produced in the states which gave electoral votes to McKinley and 32.8 per cent, in the states which gave their votes to Bryan ; while of the total value of farm lands, including buildings and improvements, 76.9 per cent, was located in the McKinley states and 23.1 per cent, in the Bryan states. Of the 13 billion dollars' worth of manufactures produced in the United States in 1900, 87.2 per cent, was produced in the states which gave their electoral votes to McKinley and protection, and 12.8 per cent, in the states which gave their votes to Bryan and low tariff ; while 79.2 per cent, of the mineral prod- ucts of the United States in 1900 was produced in the states which gave their electoral votes to McKinley, and 20.8 per cent, in the Bryan states. Of the savings bank depositors in savings banks, 98.9 per cent, were located in the McKinley states and 1.1 per cent, in the Bryan states ; and of the money deposited in sav- ings banks, 99.5 per cent, was in the McKinley states and 0.5 per cent, in the Bryan states. Conditions in States carried by McKinley and Bryan, respectively, in 1900. McKinley States. Per cent of total Bryan States. Per cent of total. Area square miles Population Illiterate native white popu- I lation 10 years old and over. \ School expenditures in 1900. . . . Assessed value of real estate. Assessed value of personal property Value of farm lands, includ- ing buildings, etc f Value of farm products 1899. . . Total value of manufactures I in 1900 S Wages and salaries paid in I manufacturing in 1900 S Value of product of mines, ( oil and gas wells, etc f Savings banks deposits in 1900. . Number of depositors in I savings banks f $189 $21,598, $ 6,036, $12,608, $ 3,137, $11,274, $ 2.392, $616, $ 2,436. 5, 380.760 390,585 569,434 246,785 680,997 963,575 824,602 173,372 581,477 212,780 51.8 66.2 85 84.1 74 77 67.8 87.2 79.2 99.5 1.284.200 25,216,640 1,270.048 $33,512,434 $4,076,900,371 $2,122,040,651 $3,789,316,055 $1,487,964,093 $1,649,647,187 $317,067,517 $161,853,006 $ 12.913.792 67,762 15 15.9 23 32.2 12.8 11.7 20.8 0.5 1.1 WORK OF THE FIFTY-EIGHTH CONGRESS. 427 WORK OF THE 58th CONGRESS. The following summarization of the work of the Fifty-eighth Congress, covering the special session called by President Roose- velt to consider the Cuban reciprocity treaty, and the regular ses- sion which closed on April 28, 1904, is from the New York Tribune of April 29, 1904: Two great achievements have marked the first two sessions of the Fifty-eighth Congress, which is likely to go down in history as a business Congress, characterized by economy and strict adher- ence to business principles. The consummation of the policy of reciprocal trade relations with Cuba, outlined by McKinley and faithfully adhered to by Roosevelt, by the enactment of an enabling law which put into effect the provisions of the Cuban treaty ratified by the Senate last spring in special session, con- stituted the chief work of the first session of the current Congress, which met on November 9, although the final vote was not taken until December 16. Of not less importance was the ratification at the regular session of the Panama treaty, negotiated under the direction of President Roosevelt, which paves the way for the great inter- oceanic highway designed to stand throughout the ages as the greatest monument to the United States, as well as to the fearless and energetic President who, overcoming all obstacles and quick to perceive a favorable opportunity, recognized the Republic of Pan- ama, negotiated a treaty giving to the United States complete con- trol over the canal zone, and received the hearty indorsement of Congress in his course. Both of these measures were contested inch by inch by Demo- crats in Congress, who, bereft of any issue on which to appeal for support to the voters of 1904, thought they perceived an oppor- tunity to create partisan capital. Under the rigid rules of the House little difficulty was encountered in passing the Cuban enabling act, but in the Senate- persistent antagonism was met, and Senators Teller, Patterson, and other Democrats labored con- tinually to rally their colleagues in a determined opposition to the policy of the Republican administration. The result was the post- ponement of final acton until after the beginning of the regular session, but the final vote was 57 to 18 in favor of Cuban reci- procity, this being the first indication of that Democratic lack of harmony and that disintegration which have characterized the opposition throughout the session. Immediately after the Christmas holidays the discussions of the Panama treaty began in earnest. The Democrats, seeking to make capital, introduced various resolutions, which they were able to discuss in open sesion, thus avoiding the "closed doors" which are the usual order when a treaty is under consideration. In this debate Mr. Gorman believed that he saw an opportunity to estab- lish beyond peradventure his right to lead his party, and made Herculean efforts to solidify the Democratic opposition and to create the impression that President Roosevelt was an unsafe man. Days were spent in denunciation of the President's policy. The President cheerfully forwarded to the Senate every docu- ment asked for, thus laying open to the most careful scrutiny every act in connection with the recognition of the Republic of Panama and the negotiation of the canal treaty. No impropriety was revealed, and no ground of criticism could be discovered, and gradually the Democrats in the upper chamber, who were daily hearing of the displeasure of their States at their unreasoning opposition, lost confidence in the leadership of Mr. Gorman. At last, on January 27, Senator Simmons, of North Carolina, felt com- pelled to speak in favor of the Panama treaty. He was followed by Senator Clark of Arkansas, and by other Democrats, and then the Republicans, perceiving their advantage, followed it up. Senator Gorman found himself deserted by his party colleagues, and on February 23 the Senate, by a vote which, including pairs, was 72 to 17, ratified the Panama treaty. Sixteen of the thirty- three Democratic Senators repudiated Mr. Gorman's leadership and placed themselves on record as indorsing the policy of President Roosevelt. With the- Panama treaty disposed of, an early adjournment immediately became the subject of discusion, and the leaders of both Houses determined to accomplish all necessary legislation with unparalleled expedition, setting April 1 as their goal for ad- journment. The Post-office Scandals. One more energetic effort was made by the Democrats to create campaign material. The report of Fourth Assistant Post- master-General Bristow, giving every detail of the Post-Office investigation of last summer, had been called for by a committee of the House and had been made public. It clearly demonstrated the thoroughness with which every clew to dishonesty in the postal service had been followed, and the unremitting and inex- orable character of the inquiry which Mr. Bristow had conducted. Thirty indictments had been procured and eight convictions 428 WORK OF THE FIFTY-EIGHTH CONGRESS. obtained, while cases brought under the remaining twenty-two indictments were still in the courts, with no diminution in the vigor with which they were being prosecuted. There was nothing in the document to afford comfort or consolation to the Democratic politicians and they quickly perceived that fact. Driven to desperation for a party issue, they thought that a further investigation might be instituted, which, whether it revealed the existence of any irregularity undiscovered by Mr. Bristow or not, would afford abundant and fruitful material for the partisan press, which could easily send out from Washington columns of unfounded rumor and speculation, were such an inquiry in progress. Hours of debate and pages of the Congressional Record were filled "with the vociferous demands of the Democrats for such an investigation. The nonpartisan commission consisting of Holmes Conrad and Charles J. Bonaparte, called by the Presi- dent to the assistance of the Departments of Justice and Post-Office in the investigation, was, however, still in existence, looking into the few remaining unraveled tangles of the former inquiry, and authorized to bring to the attention of the grand jury any evidence which would warrant application for indictment; and Democrats in Congress who had been making wild and general charges of mal- feasance were invited to bring to the attention of Messrs. Conrad and Bonaparte any evidence which they believed should be further investigated. From that time nothing more was heard of a gen- eral Post-Office investigation, even from those Democrats who were loudest in proclaiming in debate the existence of irregularities still unprobed. The National Finances. Early in the session, on January 26, Representative Hemen- way, chairman of the Committee on Appropriations, warned Con- gress of the necessity for strict economy. He drew attention to the fact that the total estimates for the approaching fiscal year called for an expenditure of $724,474,000, exclusive of $56,500,000 required to meet the sinking fund. Adding the amount included in special appropriation bills, Mr. Hemenway estimated the grand total of this year's appropriations at $747,317,922. Deducting from this sum $704,472,060, Secretary Shaw's estimate of revenues for the next fiscal year, Mr. Hemenway showed an estimated deficit for the years 1904-5 of $42,845,862. Referring to the treasury surplus of $224,000,000, Mr. Hemenway predicted its rapid reduc- tion. He showed that $131,000,000 was already appropriated for the Panama Canal and unexpended balances for the Navy, rivers and harbors, and the House building. Basing his argument on these figures, he urged the most rigid economy in every possible direction. How closely the advice of the chairman of the Com- mittee on Appropriations has been followed and how businesslike has been the conduct of this Congress are shown by his statement issued to-day. The authorized expenditures of the session amount to $698,272,786, which, deducted from the revenues, estimated at $704,472,060, leaves a surplus of $6,199,274. Important Laws Enacted. Among the more important laws enacted at the session may be enumerated one deferring application of the coastwise laws of the United States to commerce with the Philippines until July 1, 1905, and relieving the interisland trade to the Philippines from the restrictions of those laws; another providing that Government sup- plies shall be carried between the United States and the Philippines in vessels of American register; the creation of a commission, con- siting of Senators Gallinger, Lodge, Penrose, Mallory, and Martin and Representatives Grosvenor, Minor, Humphrey, McDermott, and Spight, to determine the best method of assisting the American merchant marine. The commission will meet in the summer and make some recommendation to Congress at the next session. The legislation giving the President power to take possession of the Panama Canal zone, pay the $10,000,000 to Panama, establish such government there as may be necessary, and delegate to the Panama Commission such powers as he may deem best, was enacted in the closing hours. Rear-admiral John G. Walker, Major-General George W. Davis, William Barclay Parsons, Frank J. Hecker, William H. Burr, Carl Bwald Grunsky and Benjamin M. Harrod were confirmed by the Senate as members of the Panama Canal Commission, which has already visited the Isthmus and returned to make plans for carrying on the work. Some question having been raised as to the effectiveness of the existing Chinese exclusion laws after the denunciation of the treaty with China of December 7, 1894, has taken effect, a brief clause has been added to the sundry civil appropriation bill pro- viding that existing laws on this subject shall remain in force, regardless of the expiration of that treaty. Further immigration legislation provides that citizens of Newfoundland entering the United States shall be exempt from the payment of the usual head tax of $2. The only pension legislation enacted was a law fixing the pension of any person who lost the use of both eyes in the military or naval service of the United States at $100 a month. Assistance has been given to two expositions, $4,600,000 having been advanced to the Louisiana Purchase Exposition and $475,000 provided for Alaskan and Government exhibits at the Lewis and Clark Exposition, to be held at Portland, Oregon, next year. By joint resolutions Congress extended an invitation to the Interparliamentary Union for the Promotion of International Arbi- WOBK OF THE FIFTY-EIGHTH CONGRESS. 429 tration to hold its session next fall in the United States, appropri- ating- $50,000 for the expenses of the conference; provided funds for bringing- to the United States 600 Porto Rican teachers to attend summer schools at the universities and other institutions of learning this year, and united in a request to the President to open negotiations with Great Britain for a revision of the Bering Sea and North Pacific Ocean fur seal regulations, and if possible to conclude similar negotiations with Russia, Japan, and other mari- time nations. By a House resolution the Secretary of Commerce and Labor was instructed to investigate the alleged beef trust. The " Charges Against Members." One incident of the session which deserves notice in passing was the "tempest in a teapot", caused by the House Committee on Post-Offices and Post-Roads, which, believing it saw in Fourth Assistant Postmaster-General Bristow's report a reflection on mem- bers of Congress, proceeded to call for documentary evidence. The documents when received and made public so irritated the members of the House as to cause them to create the so-called "McCall committee" to investigate the relations qf members of Congress with the Post-Office Department. This committee found no serious impropriety in the conduct of men then members of the House, but recommended greater formality and discretion on the part of members in their dealings with the executive depart- ments. Answers to Charges of Excessive Appropriations. The following account of the discussion in the Senate in the closing hours of the session regarding the appropriations of the year is also from the New York Tribune of April 29 : Statement of Appropriations. Mr. Allison, chairman of the Committee on Appropriations, submitted a series of tables, prepared by the clerks of the Appro- priations Committtee, showing an increase of $28,000,000 over the propriations for last session. He gave the principal terns of increase as follows: For the Navy $16,000,000 On account of the postal service, including rural free delivery 8,000,000 He also said there was an increase of $8,832,000 in the per- manent annual appropriations, the chief item being $5,000,000 for the bank-note redemption fund and the next most important item being $2,250,000 for the irrigation reclamation fund. Mr. Allison also spoke of the increase in the deficiency appro- priations, the principal item being the loan of $4,600,000 made to the St. Louis Exposition. Replying to an inquiry from Mr. Aldrich, he said that outside the loan to the exposition the cost of that insti- tution to the national Treasury, including the cost of the Govern- ment exhibit, is about $6,500,000. Speaking generally, Mr. Allison said the appropriations were in the main for the conduct of the Government, and he expressed the opinion that they would not be criticised. He also referred to obligations assumed, and said those of this year are less than for many years previous. Comparing Administrations. Resuming Mr. Allison said the obligations aside from appro- priations incurred at the present session amounted to $24,000,000. Mr. Culbertson presented a review of appropriations for the last twelve years, covering the last administration of Mr. Cleveland and the McKinley and Roosevelt administrations. He said the total expenditures under the Roosevelt administration had been $2,640,000,000, or $211,000,000 greater than the four years of the McKinley administration, and $883,000,000 greater than in the four years of the Cleveland administration. These increases he sub- divided as follows: Civil administration $160,000,000 Naval 231,000,000 Military 284,000,000 He also said that for 1905 the total appropriation on account of the military, including pensions, would be $387,000,000, and that excluding the expenses of the Boer war. the military expenditures of the United States for 1903 were $32,000,000 more than those of Great Britain for that year, $131,000,000 greater than those of Ger- many, and $139,000,000 in excess of those of France. Replying to Mr. Allison. Mr. Gorman placed the total appropri- ations of this session at $781,000,000, and the obligations incurred at over $24,000,000, or more than $800,000,000 all told, not includ- ing the appropriation for the Panama Canal. He said the figures were amazing, and predicted that it would be impossible to continue expenditures at this rate without increasing taxes. He attributed the rapid increase to the ambition of the President to make of the United States "a great world power," and said that no harvest had been reaped except the loss of life and demoralization in every branch of the Government service. Mr. Gorman refered to the increase for the support of the 430 WOBK OF THE FIFTY-EIGHTH CONGRESS. Army, and said that if the present tendency should be pursued, the Army would become an instrument of tyranny. He charged that it was now being- organized on the plans of the German army, and that the chief reason for the building up of the Army and Navy was to attract the attention of the crowned heads of Europe. He again charged that the early adjournment — " the earliest in the history of the country" — had been due to influence from the "White House, and said that while delay might have been secured, it would not have changed results, and delay, therefore, was not sought by the Democratic Senators. Mr. Allison replied to Mr. Gorman, saying he was surprised to hear from him that the adjournment of Congress was premature or unduly influenced. Mr. Allison also characterized Mr. Culbertson's tables as "old and worn-out," as at the time covered by the tables the conditions of the country were totally different from present conditions. He said the extraordinary expenditures of the McKinley administra- tion had been due to the Spanish war, which was forced on the President. He also combated the statement that the expenses of the military establishment were greater than those of the Euro- pean nations, saying that the pension expenditures could not properly be included in such estimates. Mr. CulbeYtson said the figures given for other countries include their pension lists, and Mr. Gallinger called attention to the fact that European countries grant limited pensions. Mr. Allison admitted that there had been an increase in tk« strength of the Army, but said the increase had been a nonpar- tisan measure. He also said that per capita expenditures on account of the military were smaller than those of any other country. He also defended the administration of the Post-Office Department as on the whole economical and honest. Mr. Aldrich said that in the statement made by Mr. Allison many items were included which were never expended, and that while the statement was valuable for comparison, it did not indicate the exact state of affairs. In 1902, for instance, when the appropriations were $730,000,000, the expenditures were only $470,000,000. In 1899 the discrepancy was about $400,000,000. Hence, Mr. Culbertson's figures did not show expenditures with even approximate correctness. He admitted, however, that the expenditures for the last year and the year before had been greater than for the years preceding the Spanish war, and necessarily so because of the growth of the country, the principal items of Increase being on account of the Army and Navy. Mr. Aldrich also said that never since the Spanish-American war had the country been able to get back to a peace footing, although he hoped it might. Referring to the charge of undue haste in adjourning, Mr. Aldrich said that Congress was about to adjourn because the public business had been completed. He thought the country was to be congratulated. Senator Allison's Statement About Appropriations. [Extract from record of Senate proceedings, April 23, 1904.] Mr. ALLISON. Mr. President, I was very much interested, as 1 always am, in the plausible statements made by the Senator from Maryland [Mr. Gorman]. I was rather surprised to learn from him that we are closing this session under some sort of compulsion, and that we are refraining from attending to the necessary busi- ness of the country. I do not know what further important business there is to be transacted. If the Senator from Maryland or any of his colleagues have presented important bills that ought to have been passed and pressed them in committee and in this Chamber at the present ses- sion, I am not aware of it. I think the session about to adjourn has dealt with most, if not all, of the important questions that ought to be dealt with at this session. This' being a long session, and another session coming later this year, subjects considered at this session go over on the calendar until the next session. I have been here a good many years', and I do not know an instance where all the bills that were presented by committees have been considered and passed during the first session of a Congress. Many of them go over for want of time, whatever the length of the session, as' many of them fall at the close of a Congress. Now, Mr. President, I wish to say only a few words more on the question of approprations. First, let me call attention to the tables introduced by the Senator from Texas [Mr. Culberson]. These are old and worn-out tables comparing the Administration of Mr. Cleveland in 1885 to 1889 with the Administration beginning in 1897. Mr. CULBERSON. No tables were presented by me for 1885. Mr. ALLISON. Very well. I was not able to gather from the Senator's remarks amid the confusion how far back in our history he went, but I am perfectly certain he went as far back as 1893, and he compared the four years of President Cleveland, beginning in 1893, with the four years of President McKinley, beginning in 1897, and he compared the expenditures for those first four years with the expenditures under President McKinley, when the situa- tion and condition of our country was wholly different. I am surprised that the Senator from Texas made no allusion whatever to the conditions and the inheritance of President McKin- WORK OF THE* FIFTY-EIGHTH CONGRESS. 431 ley after four years of President Cleveland. I do not speak now of that inheritance which spread disaster and distress in our country, but I speak of that inheritance which was derived from the situa- tion in Cuba when President McKinley came into power. The situation there was left in such a condition — I will not un- dertake to describe it — as made it necessary for President Mc- Kinley to deal with it on the very threshold of his' Administration. That he dealt with it in a conservative way and sOught to avoid the expenditures which followed no one now will deny; and that those expenditures were brought upon our country not by the Ad- ministration of President McKinley, but by the pressure that was made upon him in this body and in the other that he should enter upon a war with Spain unless they yielded to conditions' that they would not yield to. If you go back to the debates of that period, you will see that the pressure upon President McKinley was so great that the situation as respects that war was a situation that was claimed for the Democrats and by that party as a part of their policy. Mr. President, enough upon that point. The Senator from Texas also undertakes to show that our ex- penditures for war purposes are far beyond the expenditures of the great powers of Europe, Germany, France, and the United Kingdom. He says that our expenditures for this current year and for the last year for war purposes amount to $332,000,000, if I understood the table he brought forth. Mr. CULBERSON. The expenses of the military establishment for 1903 amounted to $339,000,000 in the United States. Mr. ALLISON. The military establishment! What is the mili- tary establishment? It is the Army and the Navy. The Senator speaks of a military establishment and then includes a matter which is as foreign to our present military establishment as any- thing can possibly be. Is it possible that he charges' the military establishment with the pensions that are granted to the surviv- ors of the war of 1812, to the survivors of the war with Mexico, to the survivors' of the great civil war of 1861 to 1865, for which we are still paying pensions? Mr. President, that can not be re- garded as a fair statement of what the military establishment is. Mr. CULBERSON. Mr. President, if the Senator will pardon me a moment, the total expenses of the military establishment of Great Britain, Germany, and France for 1903, as furnished me by the War Department, included pensions, and consequently a fair comparison on the part of the United States includes pensions also. Mr. ALLISON. I do not know what the pensions of Great Britain may be, but they are very small in amount. Mr. GALLINGER. If the Senator from Iowa will permit me, I will say that Great Britain pensions her soldiers only for wounds, not for disabilities' incurred in the service; and I think the German pension system is even more restricted than that. Mr. ALLISON. So, Mr. President, in order to show the great extravagance in our military establishment the Senator from Texas includes pensions, which are a gratuity and a recognition in some degree of the valuable services' rendered by that great body of civilians who entered our Army in 1861 for purposes of preserva- tion of the Union. So when we leave pensions out of that calcula- tion, amounting, in round numbers, to $151,000,000, we have, in- cluding every expenditure in the appropriations for the Army and Navy, only $189,000,000. Mr. CULBERSON. I call the Senator's attention to the fact that notwithstanding the total expenditures for pensions have been reduced yearly in the last four years there has been an enormous increase in the military establishment, showing that the increase is" not affected by an increase in the pension list at all, but it is on account of the War and Navy Department alone. Mr. ALLISON. Mr. President, the fact is not disputed that we have increased our Army. Who increased it? It was not in- creased as a partisan measure. The measure was brought into this Chamber and carefully considered without regard to party lines. Nearly every Democrat voted for that increase of the Army upon conservative lines. Not every Democrat voted for that army bill; there were thirteen Senators', if I recollect rightly, who voted against it; but this Army of ours was regarded as a neces- sary army at the time by all parties, and it was increased to 100,000 men. Mr. President. I shall not go further into this question except to say that as the exigency passed away our Army was reduced from 100,000 men to 59,000 men, where it now remains. So it is that in the bill for the current year, the regular appropriation for the Army is less than it was last year, and the appropriation for last year was less' than for the year before. Now, Mr. President, I want to call the attention of the Sen- ator from Texas to another matter, and that is the general cost of maintaining the Government of the United States as compared with the cost of maintaining the governments of those countries of which he spoke. I have here an extract from a table recently published by the Bureau of Statistics, which discloses' that the expenditures per capita of the United Kingdom for the last year were $37.60, the expenditures per capita for France were $17.84, the expenditures per capita for the German Empire were $9.45, and the expenditures for the United States were $7.97 per capita. So, Mr. President, it appears that the appropriations for the maintenance of our Gov- ernment, compared with similar appropriations of other govern- 432 GERMAN AMERICANS FOR ROOSEVELT. ments, are the lowest of all the governments of which I have knowledge who maintain armies and navies, and who have a large civil list. The Senator from Maryland seems to think that these appro- priations and these expenditures are extravagant, and that the sev- eral Departments of the Gevernment ought to be investigated. Mr. President, I am not opposed to proper investigation of any Department of the Government, but the Administration itself has investigated the irregularities and the corruption in the Post- Offlce Department, whatever they were. Mr. President, I have only to say as respects the Post-Office Department, to which the Senator especially alluded, that, consid- ering the great amount of labor accomplished in that service and the vast number of people who are employed in it, I do not be- lieve there is or has been a more judicious, economical, and hon- est administration of any other Department of the Government than that of the Post-Office Department. GERMAN AMERICANS FOR ROOSEVELT. [From Washington Star, May 2, 1904.] The National Roosevelt League, composed of prominent Ameri- can citizens of German descent from all sections of the United States with Richard Bart&bldt of Missouri as president, was organized at the New Willard Hotel Saturday evening and plans were laid for carrying on an aggressive campaign to give Theodore Roosevelt the German-American vote in the approaching Presi- dential nominating convention and election in the fall. The meeting was an enthusiastic one, and at its conclusion the following statement was given out by President Bartholdt : "The National Roosevelt League issues the following state- ment to all citizens of German descent: " 'On the eve of national election, we as citizens without re- gard to party who have at heart the welfare and the continued development of the United States, have resolved: To urge and support the nomination of the best and most able man available as candidate for the high office of the presidency. This man is Theodore Roosevelt. " 'The man Who is to be the executive head of this great nation must possess the following qualifications: A clear head, •a warm heart, a strong sense of justice, persevering diligence, large experience and above all a firm character and a pure mind. No one can deny that Theodore Roosevelt possesses a clear head. He has proved this in his combats with the enemies of our coun- try, but above all in his solution of the difficult diplomatic prob- lems with which he has had to wrestle. He has given abundant evidence that he possesses a warm heart. Whenever the poor and the powerless needed protection, whether they were mine workers, helpless immigrants or needy veterans, Theodore Roose- velt was always ready to come to the rescue. When the mighty attempted to make themselves still more powerful it was Theo- dore Roosevelt who staid their hands. It takes a strong moral character to engage in combat with the forces of prejudice and with powerful interests. Theodore Roosevelt has never recoiled from the struggle. It stands to reason that his experience of over twenty years in public service enables him more expedi- tiously and wisely to solve important problems than any one lack- ing that experience. " 'His greatest glory, however, consists in this: That he has faithfully executed the political testament of his memorable predecessor, the immortal martyr President, William McKinley* for only in his spirit has Theodore Roosevelt administered the presidential office. " 'For these reasons, to which we may add the purity of his life, Theodore Roosevelt is the man of our choice. He certainly is to-day the first in the hearts of his countrymen. No mere politician could or should fill his place. We shall therefore use our utmost endeavors to secure his election." Many addresses were made, principal among which was that of Mr. Arthur von Briesen of New York. Mr. von Briesen said in part: MR. VON BRIESEN 'S ADDRESS "We have met here in our double capacity of Germans and of citizens of the United States to discuss important questions GERMAN AMERICANS FOR ROOSEVELT. 433 relating to the welfare of the country. Millions of our best citi- zens came from Germany, and found opportunities for develop- ment in every direction. The best way of showing our gratitude and our appreciation of what this beautiful country has offered us is to incorporate into this nation the best that is in us. The German element in America has already, I believe, done much in this direction. We have softened the harsh outlines of sober Puritanism by the cultivation of the arts, particularly that of music. We have thoroughly adapted ourselves to the spirit of earnest endeavor and achievement which we found here, but have added to it the measure of gladness and joy which makes life worth living. As regards the Germanic principle of personal liberty, in contrast to the painful surveillance of the individual, we can show progress. In political matters the Germans here have attained great influence, because they look at them from the idealistic standpoint; they seek neither office nor emolu- ments of office. Their only aim is to have public affairs adminis-, tered for the public good. In regard to the great parties our 1 position differs from that of the majority of the citizens in that we have arrayed ourselves not under party leadership, but above it. "The Democrat as well as the Republican earnestly strives to serve the country, to improve its institutions, and to enhance its authority. Both must, of course, be properly reined, like a team of spirited horses, and must be so guided that together they draw the triumphal chariot of the republic, even though occasionally one of the lively animals may snap at the other. However much at times a Republican steed wants to take a bite out of a Democratic charger, both are in the service of the com- monwealth and must be guided with a firm hand to move in the direction in which we, not they, want to go. In control of such a team we need a man who knows the road before him, who knows the goal, who keeps the steeds under control, however much they may balk or try to run away, and who. without con^ sidering side issues or self interest, devotes himself entirely to the great duty before him. Our country needs a President who combines within himself these qualifications. Our country has such a President — Theodore Roosevelt. With remarkable ability he has managed to hold the reins of government firmly in hand. With incomparable tact he subordinated apparently contradic- tory local interests to the welfare of the whole country. He was aroused to serve measures only when confronted with corruption and dishonesty. To the oppressed and suffering his sympathy has always been extended. I shall never forget the charm of his manner when he met the poor immigrants at Ellis Island. No President before him has ever found it worth his while person- ally to inspect Ellis Island. As he stood among the newcomers and scanned their faces he invariably found something to please him, and gave expression of kindly thoughts: 'Look at that little blond-haired woman with her child in her arms— what a pretty sight!' 'That boy over there without parents or protection enters the new world— how promising he looks— he will become a good citizen!' 'See those stalwart men— that is the kind we need!' "When the situation created by the trouble in the coal regions because almost intolerable and a solution seemed impossible it was our President who devised means for successfully termi- nating the conflict. "How vast a power the President wields! He presses a but- ton and thousands and hundreds of thousands are set in motion. For what purpose? For works of peace— as we have seen it to- day, as we have seen it during the entire period of his incum- bency. With the aid of his competent advisers, he successfully avoided conflict of every kind with other nations. Courts of arbitration were set in motion, and where, as in Panama, un- skilled action would have engendered inexpressible misery and bloodshed, Theodore Roosevelt, in the face of the severest criti- cism, brought about a solution by means entirely peaceful, which has been accepted by all parties in interest. He only who knows how to subordinate to the interests of peace great power which is intrusted to him deserves the full confidence of a people. "When the immortal martyr-President, McKinley, fell a vie- 434 GERMAN AMERICANS FOR ROOSEVELT. tim to tin' dastardly act of an assassin, and Theodore Roosevelt had to take up the reins of government tliat Cell from his gentle liand, ho declared that to the utmost of his ability be would ad- minister the office in the spirit of his great predecessor. Tins promise Theodore Roosevelt has fully kept. I am convinced that before reaching any important decision he invariably asks himself what President McKinley would have done, ami acts accordingly. Fearless and true, Roosevelt stands before us! Able, experienced, kindly and pure of heart! He is not a poli- tician in the ordinary acceptation of the term. He does not seek riches or personal aggrandizement, nor has he ever sought public office. As far as I can recall every public office thus far held by him came to him unsolicited. The fact that he appointed Demo- crats to public, office where he found them more competent than available Republicans, proves that he also stands above party. "It follows that if we want to give this country the best man for President we must and will elect Theodore Roosevelt. He shall be our standard bearer. We will use our utmost endeavors to elect him, and shall then return to our ploughshares confident that public affairs are in the best of hands. I ask you to rise and pledge our new President and our future President— Theo- dore Roosevelt." Others who spoke were Messrs. F. C. Winkle, Mr. F. J. Kauf- mann, L. Markbreit, Representative Bartholdt, and H. C. Kud- lich. All of the addresses were in German, except that of Mr. Kudlich. Later in the day the members of the league called on President Roosevelt by appointment at the White House. Mr. von Briesen read to the President the resolutions adopted by the league and assured him of the hearty support of the German Americans. The President listened attentively to the remarks and at their conslusion said in part: "My friends and fellow-Americans: I cannot well express what I feel, not merely at your action, but at the spirit and words. I know I do not deserve what you have said, but the fact of your having said it will make me more and more try to deserve it. I want to express my thanks for the heart you give me when you speak and treat me as you have to-day. "I know you will give me credit for speaking the truth and not vainglorious flattery, because I am addressing you personally, when I say, in all seriousness, that I would a hundred — a thou- sand — fold rather lose this office and retire from public life than to forfeit the right to the friendship and regard you have shown. "I want to express my feeling of the gratitude this country owes to its citizens of German extraction for raising the level of good citizenship. My greatest pleasure in the support you are giving me comes from the fact that the support is due not be- cause of what I have done for you as German citizens, but be- cause when I have lifted my hand in the cause of right you have tried to uphold me," and on this the delegates applauded approv- ingly. "A nation can go forward upon but one condition," con- tinued the President, "and that is treating each upon his record as a man— desiring equality for all, but separating the go©d from the bad citizens." The President told of the debt this country owes to its citi- zens of German parentage, notably in the one great crisis when the Union of the states was at stake. "There was dissension among the people of various sections," he said, "but there was none among the Germans. With them the application for sup- port of the Union was certain of meeting unanimous response." The President referred feelingly to the services of such dis- tinguished German Union soldiers as General Osterhaus, and ex- pressed the happiness it gave him ho meet the general yester- day. Defense against injurious importations is as necessary and justifiable as is an army and navy. — Hon. B. F. Jones. 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. BUDGETS OP THE PRINCIPAL NATIONS OF THE WORLD. 435 Expenditures made for military and naval purposes in the United States, Austria-Hungary, France, Germany, Italy, Russia, and the United Kingdom of Great Britain and Ireland. [Prepared by the Bureau of Labor. The data for the United States are taken from Digest of Appropriations, published by the United States Treasury Department, and for foreign countries they are taken from the Statesman's Year Book. The figures for the United States include deficiency bills for preceding years.] Country. Year War. Navy. Total. 1903 1903 1903 1903 1903 1903 1903 a $92,794,619.35 b 62.827,490.08 b 137.228,000.00 a 135.421,048.00 b 54,405,687.33 b 169,910,760.09 C 319,154,803.00 a $75,049,781.29 b 9,934,986.46 b 59.212,156,43 a 20.685,532.00 b 24.543.031.05 b 59.550,089.12 d 140.946,492.90 a $167,844,300.64 a 72,762,476.54 b 196 435 156 43 Austria-Hungary a 156,106,580.00 b 78,948,718.38 b 229,460,849.21 C 460,101,295.90 Italy a Not including pensions. b Report does not state whether c Not including pensions, retired 142,312. d Not including pensions, retired 158,397.85. e Not including pensions, retired 300,709.85. O ^ q e© 00 *-i 1 | u n y~ ,~ > § © +j k, m Co <4> U u a -2 w >> tit ,0 •a H u o o « CO S *« -J, ~ S a & o to n ** bfi v^ a 9 o X O •S A OS |3CQ o o a &» it 3d ■ JO (N t-i S*e* c3 •$ od oi od ^h r-Too os">o* d gSSSgSSSgcSog pensions are included or not. pay, etc., amounting to $18,- pay, etc., amounting to $11,- pay, etc., amounting to $29,- .cs-rj<.-<©ccinosmT*f-©t~'^©>ftr-t< (M-^it^i—t-t-OCpcOlOt «5inj>iOcoeot-oo5-*, >t-CO -^OS — <«!MrtMWt^(SCO :** t-" Oco©u3^eq^cq"o"oiio'»V" 005T-^Oj!MCOlO-*(M(M(MCOxf*•*■-* "* -«ti iC lO CO 00 OS SS?SS-S8SSo888888888888888S ' 00 *~i (M © -** < | ■<*< OOOOOS ! \2£$%%Z ■ iooom->tiC5-'*'ost~- , * , ~'f< cce*(MT-n^cC''z;ososoooo< b".' H . rt . )n .' H . ." 1 l*" ) l t '. ( . iSMNrHiot^aa^co'aQTHV'wV^'rt'cjindiOrtaD ^co-*-^»o ;co oo5ooqqa®'<(;rtN 2 r* *r « co3b^-*^iS t ^ t ^ (N " ,5N 5?' _l o r-i cq incqos cq t~i' «**^-"op"^)"'**d«D*i-"o to - - co« Q r-* os" r-" d e* in oo* g* oo* co* cH^*i-*»oioco«ot->{>ososo J >COCOCOF*t~CPt-CD©00 i"*cocooscooscoiqooiq [assies sites " ift" co" os" t-" co* oo" in" oo" in" d ) 0O CO CO 00 CO *— ' r- OS t— iN *jaOCSO»lOCOTt o* os" \Q~ in cq r-_ os os os oq cq S *S Os_ cq cq oo" <-" co" d fh" d d o* < ICOCO< !CO! co '. i < ' I- < .OSQ00 .'*l e,5 . rH . §*eo*d*"d»-<"co"iod(M"^*d(M* sBo^t-oo-^eoeoF-iooosco 'OOCOfH coco< NrHJ)«tO( ■ r-t-eoco«0< n>i-c 436 PROGRESS OF TI1K UNITED STATES. PROORESS OF THE UNITED STATES IN FINANCIAL, COM- MERCIAL, AND INDUSTRIAL CONDITIONS, 1890 TO 1904. The tables which follow are an extract from the much-quoted table of the Statistical Abstract of the United States, entitled "Progress of the United States in its Material Industries, 1800 to 1903." Obviously it would be impossible, in a volume of this size and character, to give the figures for such a long term of years and for all of the subjects discussed in that table ; but a section which shows conditions in 1850, 1860, 1870, 1875, 1880, 1885, and in each year from 1890 to date is reproduced here- which includes the period from 1890 to 1903 is reproduced here- with. It shows the progress in each of the great industries and financial operations which may be considered a measure of busi- ness conditions, and exhibits in plain figures the effect upon these industries and business undertakings of the free-trade experiment of the last Cleveland administration. In studying these it should be remembered that those of the Government, finance, and commerce are usually fiscal years (ending June 30) and that those of pro- duction in most cases relate to calendar years. These tables have attracted wide attention at home and abroad as a valuable bird's- eye view of the prosperity or otherwise of the country in the long term of years which they cover, and the section which relates to the period from 1890 to 1903 will prove convenient to those who desire to contrast conditions under the three tariffs which have existed during that period. These tables occupy several successive pages following the one upon which these words are printed. They will repay a careful study. It will be seen that they present a bird's-eye view of the progress of the financial and industrial conditions of the country since a period ante-dating that at which the Republican party assumed control of the Government. Neces- sarily this could only be pictured in outline in a volume of this size, but it is sufficient to show the wonderful progress which the country has made under protection. But an equally important view is that presented by the figures which show conditions in each year since 1890. The downward movement, in everything except national indebtedness during the years of democracy and low tariff, is pictured in the figures of 1893, 1894, 1895, and 1896, and will repay a careful study. National debt and interest charges, government receipts and ex- penditures, money in circulation, bank clearings, bank deposits, life insurance in force, imports, exports, the commerce with the various parts of the World, the production of coal, iron, steel, tin plates, cotton goods, beet sugar, the value of farm animals, rail- way building, railway earnings, the business on the great lakes, the business activity of the country as measured by postal re- ceipts, and many other matters are shown at intervals from 1850 to 1890 and in each year from 1890 to date. Another series of, tables immediately following these shows conditions in the more important factors of prosperity in each decennial year from 1800 to 1900 and in 1903. These will enable a measurement of the relative growth prior to 1860 and since the beginning of the period of protection which dates from that year, while the first mentioned tables showing figures for each year since 1890 will show the conditions during the low tariff period of a more recent date. Another table of the series shows conditions of the railroads in each year from 1883 to 1902, (the detailed figures for 1903 being not yet available). This table will repay a careful study in the evidence it presents in regard to business activities in the various years of the period and especially those of the period 1893-6 compared with years preceding and following that date. Following these are tables showing financial, commercial, and industrial conditions in the principal countries of the world, in- cluding the United States, and enabling a comparison of condi- tions in this country with those in other countries. All of these tables are from the official publications of the Bureau of Statistics of the Department of Commerce and Labor. PROGRESS OP THE UNITED STATES. 43? 01 oil -hOJ d "S'O m O 4) If ■E d £5 a 0> O M £ ^ A m o ► 4) K ., iisssiiiiisiii ^ sa" : ? : - i-coi~aoosinmTt<lCCTtiTflt^ScfccO'»os"in dQ-*COCOMaSa0OS©l~-'J , t^OScOi-iCO00t~CI0in r-j OHia«r(t>(ii(o o5eo »- to 5 d OOtft BgS225gSSS8SSqS5SSaBSs Q 9 =■ O O 8 « « 2 S 00 £ <3 o 2 Ho?? 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Slavery entrenched itself in every department of our public life. Its advocates dominated Congreo and the State legislatures; they even invaded the pulpit aid grotesquely wrested a few texts of Scripture to their purpose. Thiy gave the tone to society; even the Southern accent was imitated in our schools and colleges. If the slaveholders had been content with their unquestioned predominance, they might for many years have controlled cur political and social world. It was natural for the conservative people of the North to say: "We deplore the existence of slavery, but we are all to blame for it; we should not cast upon our bretl- ren in the South the burdens and perils of its abolition. We must bear with the unfortunate condition of things and take our sha-e of its inconveniences." But the slaveholding party could not rst content. The ancients said that madness was the fate of these judged by the gods. Continual aggression is a necessity of a fase position. They felt instinctively that if their system were perma- nently to endure it must be extended, and to attain this objtct they were ready to risk everything. They rent in twain the corn- promises which had protected them s'o long. They tore down the bulwarks which had at once restricted and defended them; and confiding in their strength and , our patience they boldly an- nounced and inaugurated the policy of the indefinite extension of their "peculiar institution." Once embarked upon this fatal enterprise they left nothhg undone which could contribute to the catastrophe upon which tley were rushing. The Whig party had gone to ruin in 1852 on tc- count of the impossibility of combining the scattered elemeits of opposition to the party of pro-slavery aggression; but they themselves furnished the weapon which was to defeat them. In May, 1854, after several months of passionate debate, to which hay's speech. 457 the country listened with feverish interest, Congress passed the bill organizing the territories of Kansas and Nebraska, omitting the restrictions of the Missouri Compromise, which excluded slavery from them. This action at once precipitated the floating anti- slavery sentiment of the country. A mighty cry of resolute in- dignation arose from one end of the land to the other. The hol- low truce, founded upon the legitimate compromises which had been observed in good faith by one side and ruthlessly violated by the other, was at an end. Men began to search their consciences' instead of the arguments of political expediency. A discussion of the right and wrong of slavery became general; the light was let in, fatal to darkness. A system which degraded men, dishonored women, deprived little children of the sacred solace of home, was doomed from the hour it passed into the arena of free debate. And even if we shut our eyes to the moral aspects of that heart- less' system, and confined ourselves to the examination of its eco- nomic merits, it was found to be wasteful and inefficient. The Americans are at once the most sentimental and the most prac- tical of peoples — and when they see that an institution is mor- ally revolting, and, besides, does' not pay, its fate is sealed. The Constitution and Law Always Respected. Yet the most wonderful feature of that extraordinary cam- paign which then began, and which never ceased until the land was purged of its deadly sin, was that even in the very "tempest and whirlwind of their passion" the great leaders of the Republi- can party kept their agitation strictly within the limits of the Constitution and the law. There was no general demand for even an amendment to the organic instrument. They pleaded for the repeal of unjust statutes as inconsistent with the Constitution, but did not advocate their violation. Only among the more ob- scure and ardent members of the party was there any demand for the abolition of slavery, but the whole party stood like a rock for the principle that the damnable institution must be content with what it had already got, and must not be allowed to pollute another inch of free soil. On this impregnable ground they made their stand; and the mass convention which assembled here in 1854, while the vibration of the thunder of the guns and the shout- ings of the birthday of Liberty yet lingered in the air, gave a nucleus and a name to the new party destined to a great and be- neficent career. Before the month ended the anti-slavery men of five more great states adopted the name "Republican," and under that banner Congress was carried and two years later a national party assembled at Pittsburg and nominated Fremont and Day- ton, who failed by a few votes of sweeping the North. Who of us that was living then will ever forget the ardent enthusiasm of those days? It was one of those periods, rare in the life of any nation, when men forgot themselves, and, in spite of habit, of interest, and of prejudice, follow their consciences wHerever they may lead. In the clear, keen air that was abroad the best men of the country drew deeper breaths and rose to a moral height they had not before attained. The movement was universal. Sumner in the East, Seward in New York, Chase in Ohio, Bates in Missouri, Blair in Maryland, all sent forth their identical appeal to the higher motive; and in Illinois, where the most popular man in the state boldly and cynically announced, "I don't care whether slavery is voted up or voted down," a voice, new to the nation, replied, "There are some of us who do care. If slavery is not wrong nothing is wrong" — and Abraham Lincoln came upon the field, not to leave it until he was' triumphant in death. I have no right to detain you at this hour in recounting the history of those memorable days. Two incidents of the long battle will never be forgotten. One was the physical and political contest for the possession of Kansas, carried on with desperate courage and recklessness of consequences by the pro-slavery party on the one side, and, on the other, by the New England farmers' whose weapons of aggression were Bible texts and the words of Jeffer- son, and whose arms of defense were Sharpe's rifles. With words that ring even now when we read them, like the clashing of swords, the Slave State men claimed Kansas as their right and the Free State men replied in the words of the prophet before Herod, It is not lawful for you to have her. And when the talking sharpened to the physical clinch, the praying men fought with the same ferocity as the men who cursed. In the field of political dis- cussion the most dramatic incident of the fight was the debate between Lincoln and Douglas. Not many of you saw that battle of the strong, where each of the gladiators had an adversary worthy of his steel, where the audiences were equally divided, where the combatants were fairly matched in debating skill and address, and where the superiority of Lincoln was not so much personal as it was in the overwhelming strength of his' position. He was fighting for freedom and could say so; Douglas was fighting for slavery and could not avow it. The result of the contest is now seen to have been inevitable. Douglas was re-elected to the Senate but had gained als'o the resentful suspicion of the South, which two years later disowned him and defeated his lifelong ambition. Lincoln became at once the foremost Republican of the West, and a little later the greatest political figure of the century. Our First Republican President. If there is' one thing more than another in which we Repub- licans are entitled to a legitimate pride it is that Lincoln was our 458 hay's speech. first President; that we believed In him, loyally supported him while he lived, and that we have never tost the right to call our- selves his followers'. There is not a principle avowed by the Re- fmbllcan party to-day which is out of harmony with his teachi- ngs or inconsistent with his character. We do not object to our opponents quoting him, praising him — even claiming him as their own. If it is not sincere, it is still a laudable tribute to acknowl- edged excellence. If it is genuine, it is still better, for even a Nebraska Populist who reads his Lincoln is in the way of salvation. But only those who believe in human rights and are willing to make sacrifices' to defend them; who believe in the nation and its beneficent power; who believe in the American system of protec- tion championed by a long line of our greatest and best, running back from McKinley to Washington, and, as Senator Dolliver so truthfully said, "to the original sources of American common sense;" only those who believe in equal justice to labor and to capital; in hone3t money and the right to earn it, have any title to name themselves by the name of Lincoln, or to claim a moral kin- ship with that august and venerated spirit. I admit it would be little less than sacrilege to try to trade upon that benignant Renown, whose light "folds in this' orb o' the earth." But we who have always tried to walk in the road he pointed out can not be deprived of the tender pride of calling ourselves his disciples, and of doing in his name the work allotted to us by Providence. And I hope I am violating neither the confidence of a friend nor the proprieties of an occasion like this when I refer to the ardent and able young statesman who is now, and is to be, our President to let you know that in times of doubt and difficulty the thought oftenest in his heart is, "What, in such a case, would Lincoln have done?" As we are removed further and further from the founders of our party and their mighty work, their names and their fame rise every year higher in the great perspective of history. The clamor of hatred and calumny dies away. The efforts' made to weaken the hands of Lincoln and his associates are forgotten. The survivors of those who so bitterly attacked him and his cause, which was the cause of the country, are now themselves astonished when con- fronted with the words they then uttered. But it was against a political opposition not less formidable and efficient than the armed force beyond the Potomac that the Union men of that day, and their President, had to struggle. It was not merely the losses in battle, the waste of our wealth, the precious' blood of our young men, that filled Lincoln's heart with anguish and made him old before his time, but it was the storm of partisan hostility that raged against him, filling the air with slanders and thwarting his most earnest and unselfish efforts for the country's good. But in spite of it all he persevered, never for a moment tempted by the vast power he wielded to any action not justified by the moral and the organic law. I have always liked the inscription on the medal which the workmen of France, by one-cent subscriptions, caused to be struck after his death: "Abraham Lincoln, the honest man. Waged war. Abolished slavery. Twice elected President without veiling the face of Liberty." This was an achievement new to the world; that a man and a party, armed with an author- ity so unquestioned and so stupendous, in the very current of a vast war, should have submitted themselves so rigidly to the law — and never have dreamed there was anything meritorious about it. Then, if never before, we proved we were as fit to be free as the men who achieved our freedom. The world learned other lessons in swift succession. We dis- banded our army — sent them home to earn their livings' as simple citizens of the land they had saved, without terms or conditions; they asked none; they wanted peace; they were glad to get to work. And there were no reprisals, not a man punished for re- bellion or treason; not an act of violence sullied the glory of vic- tory. The fight had been fierce, but loyal; we at least wished the reconciliation to be perfect. Then came the paying of our debts. To whom is' the credit due of that enormous task, that sublime effort of common honesty, if not to the party which, against every assault of open and covert repudiation, stood by the country's honor and kept it free from stain? "Why the Party is Entitled to Public Confidence. Let me hurriedly enumerate a few of the events in the long and fruitful career of the Republican party which seem to us to entitle it to the confidence of the country and the final approval of history. After the war was ended and peace re-established with no damage to the structure of the Government, but, on the contrary, with added strength and with increased guaranties of its perpetu- ity, it remained to be shown whether the power and success of the Republican party were to be permanent, or whether, born of a crisis, it was fitted to cope with the problems of daily national life. It had destroyed slavery, or. perhaps we might better say, it had created the conditions by which slavery had committed sui- cide. In the absence of this great adversary, could the party hold together against the thousand lesser evils that beset the public life of modern peoples — the evils of ignorance, corruption, avarice, and lawlessness, the prejudices of race and of class, the voices of demagogues, the cunning of dishonest craft, the brutal tyranny of the boss, the venality of the mean? I think it is not too much to say that the last forty years have given an answer, full of glory and honor, to that question. The Republican party, in the mass and in detail, has shown its capacity to govern. By the homestead law, with equal generosity and wisdom, it distributed the im- HAY'S SPEECH. 459 mense national domain among the citizens who were willing to cultivate it and who have converted wide stretches of wilderness into smiling- homes. It built the Pacific Railroad, which has bound the Union together from East to West by bands of steel and made the states beyond the mountains among our most loyal and pros- perous commonwealths. It redeemed our paper currency and made all our forms of money exactly of equal value, and our credit the best in the world. By persistent honesty in our finances — in the face of obstacles which might have daunted the hardiest statesmen — it has reduced our interest charges so that in any mart on earth we can borrow money cheaper than any other people. In the financial revulsions to which all communities are subject we are able, thanks to our laws and our administrative system, to meet and pass the most violent crises without lasting damage to our prosperity. We have, by the patient labor of years, so suc- ceeded in reforming and regulating our civil service that patronage has almost ceased to cast its deadly blight upon the work of our public servants. Human nature is weak and offenses happen; but they are almost always found out and are punished without mercy when detected. By persistent adherence to the policy of protection, we have given to our industries a development which the fathers of the Republic never dreamed of; which, besides sup- plying our home market, has carried our manufactures to the ut- termost ends of the earth. A Prosperity Unparalleled In History. History affords' no parallel to the vast and increasing prosper- ity which this country has enjoyed under Republican rule. I hasten to say we do not claim to have invented seedtime and har- vest, and industry and thrift. We are a great people and success is our right; God is good to those who behave themselves. But we may justly claim that the Republican party has been in power during these years of marvelous growth, and we can at least bring proof that we have not prevented it — and this is no slight honor for a party to claim. I will not at this moment speak of the important acquisitions of territory we have made, which ren- der us in many ways the predominant power in the Pacific. But out of the territory we already possessed, fourteen new states have entered the Union. The census of 1850 gave us 23,000,000 of population — the last one 76,000,000. The number of our farms — the total of our cultivated acreage — has increased fourfold. Our corn crop is five times what it was; our wheat crop, six times. The 'capital invested in manufacturing has grown from five hun- dred millions to ten billions; where it employed less than a mil- lion artisans, it now employs more than five millions; and while the number of workingmen has increased five times, their wages have increased tenfold. The value of manufactured property is thirteen times what it was when the Republicans of Michigan met under the oaks. The real and personal wealth of the country has grown in this' amazing half century from seven thousand millions to ninety-four thousand millions. Our railroads have grown from a mileage of 16,000 to one of 200,000. Our imports and exports have gone up by leaps and bounds to the same monstrous propor- tions. And finally, let us hasten to say, as' the other side will say it for us, instead of the $47,000,000 which supplied our modest needs in 1850 we now collect and spend some $700,000,000 annually. I can only add what Speaker Reed replied to a Democratic states- man who complained of a billion-dollar Coflgress': "Well, this is a billion dollar country." Of course, our opponents, who have got far* enough from the men and the events of the great war period to admit they were not without merit, will say — for they must say something — that we have fallen away from that high level. Now, I am grieved to con- fess that I am old enough to have seen something of the beginning, rs well as of the present, of Republican Administrations, and I ven- ture to say that no eight years of government in our history have been purer from blame or have conferred greater benefits upon the country than the eight years of McKinley and Roosevelt which claim your approval to-day. I need not hesitate to refer to it, although I have been associated with both Administrations; so little of their merit is' mine that I may speak of them without false modesty. Our national finances have never in our history been so wisely and successfully administered; our credit never stood on a basis so broad and so strong. Our two-percents com- mand a premium in all markets — no other country on earth can say as much. We paid abroad the other day fifty millions of gold in a single transaction without producing a ripple in exchange. The vast expenditure made necessary by our enormous increase in every element of national growth is collected with the utmost ease and expended with perfect honesty. Our protective system, loyally and intelligently carried out and improved in the last seven years, not only fills our Treasury with the means of national ex- penditure, but has carried our industries and our commerce to a height of prosperity which is the wonder and envy of our neigh- bors, who are trying to emulate our progress. The Republican Party Always the Friend of Labor. In the relations between labor and capital, always a subject of deep concern in democratic governments', we have improved both in the letter and the spirit. How could it be otherwise when labor knows that McKinley and Roosevelt have watched over its inter- ests as a brother might, and capital knows that its rights will be sacredly guarded so long as it is' true to Us duties? As to our 460 hay's speech. place In the world, It has simply followed and naturally comple- mented the steady Improvement in our domestic condition. Our Relation to the World. A country growing so fast must have elbow room — must have its share of the sunshine. In the last seven years, without aggres- sion, without undue self-assertion, we have taken the place that belonged to us. Adhering with religious care to the precepts of Washington and the traditions of a century, and avoiding all en- tangling alliances, professing friendship to all nations and parti- ality to none, McKinley and Roosevelt have gone steadily forward protecting and extending American interests everywhere and gain- ing, by deserving it, the good will of all the world. Their advice has been constantly sought and sparingly given. By constant iter- ation their policy has been made plain. We do not covet the territory nor the control of any other people. We hold ourselves absolutely apart from any combinations or groups of powers. We favor no national interests but our own. In controversies among our neighbors we take no part, not even tendering good offices unless at the request of both parties' concerned. When our advice is given, it is always on the side of peace and conciliation. We have made, it is true, great acquisitons, but never of set purpose nor from greed of lantf. In the case of Hawaii, the will of the people of those islands coincided with the important interests we have to guard in the Pacific. In the Samoan treaty we freed our- selves from a useless and dangerous entanglement, and in place of an undesirable condominium we gained possession of the best harbor in the South Seas, retaining, at the same time, all our com- mercial rights in the archipelago. The diplomacy of McKinley and Roosevelt has been directed principally to our present and fu- ture interests in the Pacific, on whose wide shores so much of the world's work is to be done. They have constantly kept in view the vast importance of that opening field of our activities. The long negotiations for the "open door" in China; the steadfast fight we made for the integrity of that ancient empire; President Mc- Kinley's attitude throughout the Boxer troubles, so severely crit- icized at the time and so splendidly approved by the result; the position President Roosevelt has' since held and now holds in re- gard to the neutrality of China in the present war — have all been dictated by one persistent policy, of taking care that our interests receive no detriment in the Pacific; that while we wish no harm to anyone else, we shall see that no damage is done to our peo- ple, no door is shut in our face. The negotiations begun by McKinley and successfully com- pleted by Roosevelt for the abrogation of the Clayton-Bulwer treaty, which impeded our freedom of action in building an isth- mian canal, was a part of the same general plan of opening a field of enterprise in those distant regions where the Far West becomes' the Par East. In this matter we were met in the most frank and friendly spirit by the British Government, as also in the matter of the Alaskan boundary, which was settled for all time by a high judicial tribunal removing a cloud upon our title to another great Pacific possession. And to close this record of success — monotonous because gained by appeals to reason rather than force, without parade or melodrama — came the treaty with Panama, by which we finally gained the pathway across the Isth- mus' by a perpetual grant, insuring the construction of an Ameri- can canal under American control, built primarily for American needs, but open on equal terms to all the people of good will the world over. All the foreign policy of McKinley and Roosevelt has been marked with the same stamp of honesty and fair dealing, con- fessedly in American interests, but treating our friends with equity and consideration. They have made more treaties than any two preceding Presidents; and the conclusion of the whole matter is that we stand to-day in independent though amicable relations to all the rest of the world — without an ally and without an enemy. The War With Spain and Its Results. If the Government for the last seven years had done nothing else, it would have entitled itself to an honorable place in history by the manner in which it has handled the questions' of the islands whose destiny has been so interwoven with our own. The war with Spain was carried through with incredible swiftness and en- ergy, without a shadow of corruption, without a moral or a tech- nical fault. A hundred days sufficed for the fighting. Diplomacy then did its work, and our commissioners brought home a treaty so just and so beneficial that it was impossible to unite the oppo- sition against it. Then came the far more difficult and delicate task of administration. You remember the doleful prophesies of evil with which the air was filled; that we had not the habit nor the ability to govern outlying possessions; that the islands would be cesspools of jobbery and fraud; that the enterprise was con- ceived in violence and would go out in disaster. And now you know the result. The Republic never is in default of men to serve it worthily when the Chief of the State is honest and able; when he has the eye and the will to choose the best men and will be satisfied with no less. So in Cuba, Porto Rico, and the Philippines we got the best we had. Wood, Allen and Hunt, and Taft have each in his place wrought a great work and gained a righteous fame. Cuba and Porto Rico are free and enjoying— the one under her own banner, the other under the Stars and Stripes — a degree hay's speech. 461 of prosperity and happiness' never known before in all their trou- bled story. As to the Philippines, the work done there by Judge Taft and his associates will rank among 1 the highest achievements of colonial administration recorded in history. Never since their discovery has there been such general peace and order; so thorough • a protection of the peaceable and restraint of evil doers; so wide a diffusion of education; so complete a guaranty to industry of the fruit of its labors. And when they see this energetic and efficient government carried on, free from the venality and bribery which formerly seemed to them a necessity of existence, then, indeed, they are like them that dream. The principal evil from which they still suffer has its origin here. Some well-meaning people — and others not so well meaning — are constantly persuading them that they are oppressed and that they will be given" their liberty, as they choose to call it, as soon as the Republican party is over- thrown in this country. These are the true enemies of the Fil- ipinos, and not the men who are striving with whole-hearted energy and with consummate success to ameliorate their condition and to make them fit for self-government and all its attendant advantages. The so-called anti-imperialists confound in their daily speeches and writings two absolutely unrelated ideas — the liberty, the civil rights, the self-government which we have given the Filipinos, and the independence which the best of them do not want and know they are unable to maintain. To abandon them now, to cast them adrift at the mercy of accident, would be an act of cowardice and treachery which would gain us th« scorn and reproach of civilization. Democrats Who Aided the Republican Party in Its Great "Under- takings. Our opponents sometimes say we have no right to claim the credit of the great deeds of the last half century — that we could not have accomplished them without the aid of Democrats. Noth- ing truer was ever said; and it is one of the chief glories of our annals, and it forms the surest foundation of our hopes for the future. The principles upon which our party is built are so sound, they have so irresistible an attraction to patriotic and fair-minded men, that whenever a time of crisis comes, when the national welfare is clearly at stake, when voters must decide whether they shall follow their prejudices or their consciences, we draw from other parties' their best men by thousands. Bright among the brightest of those who founded our party shine the name of Dem- ocrats; and when the war came on, the picked men of that party rallied to the colors. Douglas, shortly before he died, declared his unfaltering support of Lincoln. The sun would go down be- fore I could name the Democrats who fought like heroes for the country. Grant, Sherman, Sheridan, Dix, Sickles, Logan — in short, an innumerable host, Democrats all, rushed into the field and thereafter fought and worked with the Republicans while life lasted, and that vast majority of Lincoln's in 1864 would have been impossible had not myriads of Democrats, casting their life- long associations to the winds, listened to the inward monitor which s'ad, "Choose you this day whom ye will serve." As it was then, so it has been in after years. When the attempt was made to repudiate, in whole or in part, the national debt; or to abolish the system of protection to American industries, founded by Washington and Hamilton, and approved by the experience of a hundred years; or to degrade our currency at the demand of mere ignorance and greed — in all these cases we saw the proof of the homely adage that you may lead a horse to the water but may not make him drink. In spite of organizations and platforms, in spite of the frantic adjurations of gifted orators, hosts of pa- triotic Democrats walked quietly to the polls and voted as' their consciences dictated, in the interests of the public welfare rather than of a party. Even in so lofty and restricted an arena as our Senate, we have seen the ablest and most adroit organizer of his party fail in the most energetic effort of his' life to induce his party to reject a great national benefit because it was offered by Republican hands. Half the Democratic Senators said this was no question for pettifogging politics and voted for an American canal across the isthmus. 4t ._ . . .. We are not claiming that we monopolize the virtue or the patriotism of the country. There are good men in all parties, r know far better men than I am who are Democrats. But we are surely allowed in a love-feast like this, to talk of what has been done by the family and at least to brag a little of the Democrats who have helped us. We get their votes for one reason only— because we started right and in the main have kept right. We in- vite accessions' from the ranks of our patriotic opponents^ and we shall get them in the future, as we have in the past whenever we deserve them. We shall get them this year, because this year we do deserve them. We come before the country in a position which can not be successfully attacked in front or fl«mk or war What we have done, what we are doing and what we intend to do— on all three we confidently challenge the ] verdict o ! the Ameri- can people. The record of fifty years will show whether as a party we are fit to govern; the state of our domestic and foreign affairs will show whether as a party we have fallen off ; and both together will show whether we can be trusted for a while longer. The Platform ©* 1904. Our platform is before the country. Perhaps- it is lacking in novelty, There is certainly nothing sensational about it. It ii 462 hay's speech. substantially the platform on which we won two great victories In the name of McKlnley, and it is still sound and serviceable. Its Srinciples have been tested by eight years of splendid success and ave received the approval of the country. It is in line with all our platforms of the past except where, prophecy and promise in those days have become history in these.' We stand by the ancient ways which have proved good. The Opposition Party. It would take a wizard to guess what a dainty dish our ad- versaries will set before the sovereign people to-morrow. Their State conventions have given them a rich variety to choose from. As to money, they range all the way from Bedlam to Belmont; as to tariff, the one wing in Maryland is almost sane, the other wants raving tree trade and dynamite for the custom-houses. When they discuss our island possessions, some want to scuttle away and abandon them out of hand; others agree with that sensi- ble Southerner who said: '"What's the use talking about expansion. Great Scott! we've done expanded!" One thing is reasonably sure: they will get as near to our platform as they possibly can and they will by implication approve everything McKinley and Roosevelt have done in the last four years. They will favor sound finance and a tariff which will not disturb business; rigid honesty in ad- minstraton and prompt punishment of the dishonest; the Monroe Doctrine and an isthmian canal. To be logical they ought to go on and nominate the Republican candidates who are pledged to all these laudable policies. But they will not be logical. They do not care to oppose our policy; they merely deny our sincerity in avowing it. They cannot deny the soundness of our principles; they pretend themselves to hold them. But the function of an opposition is to oppose, and as they are otherwise destitute of an issue they seek to make a few by attributing to us principles we have never dreamed of holding and policies which are abhorrent to us. And distrusting the effect of these maneuvers in advance, they announce their plan of cam- paign to be not pro-anything, but anti-Roosevelt. This is a mere counsel of desperation and the Republicans will gladly accept the issue. Theodore Roosevelt. Even on this narrow issue they will dodge most of the details. Ask them, Has the President been a good citizen, a good soldier, a good man in all personal relations? Is he a man of intelligence, of education? Does he know this country well? Does he know the world outside? Has he studied law, history, and politics? Has he had great chances to learn, and has ho improved them? Is he sound and strong in mind, body, and soul? Is he accessible and friendly to all sorts and conditions of men? Has he the courage and the candor, and the God-given ability to speak to the people and tell them what he thinks? To all these questions they will answer, Yes. Then what is your objection to him? They will either stand speechless or they will answer with the parrot cry which we have heard so often: He is unsafe! In a certain^ sense we will have to admit this to be true. To every grade of lawbreaker, high or low; to a man who would rob a till or a ballot box; to the sneak or the bully; to the hypocrite and the humbug, Theodore Roosevelt is more than unsafe; he is positively dangerous. But let us be serious with these good people. What are the coefficients of safety in a Chief of State? He should have courage; the wisest coward that ever lived is not fit to rule. And intelli- gence; we want no blunder-headed hero in the White House. And honesty; a clever thief would do infinite mischief. These three are the indispensables. With them a man is all the more safe if he has a sense of proportion, a sense of humor, a wide knowledge of men and affairs; If he seeks good counsel; and, finally, if he is a patriot, if he loves his country, believes in it, and seeks in all things its interest and its glory. Any man may make mistakes; but such a man as this will make few, and no grave ones. Such a man is our President and our candidate. He is prompt and energetic, but he takes infinite pains to get at the facts before he acts. In all the crises in which he has been accused of undue haste, his action has been the result of long meditation and well- reasoned conviction. If he thinks rapidly, that is no fault; he thinks thoroughly, and that is the esential. When he made peace between the miners and the operators, it was no sudden caprice but the fruit of serious reflection, and this act of mingled philan- thropy and common sense was justified by a great practical result. When he proclaimed anew the Monroe Doctrine in the Venezuela case his action was followed by the most explicit acceptance of that saving policy which has ever come to us from overseas. He acted very swiftly, it is true, in Mississippi, when the best citizens of a town threatened the life of a postmistress for no fault but her color. He simply said, "Very well, gentlemen; you may get your letters somewhere else for a while." As to the merger suits, now that people have come to their senses fehey see that his action in that case was as regular as the equinox. He was informed through legal channels that a statute had been violated. He did not make the statute, but he was bound by his oath to execute It. He brought the proceeding which it was his duty to bring. The courts, from the lowest to the highest, sustained his action. He did what It would have been a high misde- meanor not to have done. The laws in this country are made to be obeyed, whether it is safe or ndt. It is always unsafe to disobey tbfem. hay's speech. 463 But there has been more noise made over his suddenness on the Isthmus of Panama than elsewhere. It is difficult to treat this charge with seriousness. The President had made a treaty with Colombia at her own solicitation, which was infinitely to her ad- vantage, to inaugurate an enterprise which was to be for the benefit of the world. He waited with endless patience while Bogota delayed and trifled with the matter, and finally rejected it, and suggested new negotiations for a larger sum. Panama, out- raged by this climax of the wrongs she had already suffered, de- clared and established her independence. The President, following an unbroken line of precedents, entered into relations with the new Republic, and, obeying his duty to protect the transit of the Isthmus as all other Presidents had done before him, gave orders that there should be no bloodshed on the line of the railway. He said, like Grant, "Let us have peace," and we had it. It will seem incredible to posterity that any American could have objected to this. He acted wisely and beneficently, and all some people can find to criticise in his action is that he was too brisk about it. If a thing is right and proper to do, it does not make it criminal to do it promptly. No, gentlemen! That was a time when the hour and the man arrived together. He struck while the iron was white hot on the anvil of opportunity and forged as perfect a bit of honest statecraft as this generation has seen. We could desire no better fortune, in the campaign upon which we are entering, than that the other side should persist in their announced intention to make the issue upon President Roosevelt. What a godsend to our orators! It takes some study, some re- search, to talk about the tariff, or the currency, or foreign policy. But to talk about Roosevelt! it is as easy as to sing "the glory of the Graeme." Of gentle birth and breeding, yet a man of the peo- ple in the best sense; with the training of a scholar and the breezy accessibility of a ranchman; a man of the library and a man of the world; an athlete and a thinker; a soldier and a statesman; a reader, a writer, and a maker of history; with the sensibility of a poet and the steel nerve of a rough rider; one who never did, and never could, turn his back on a friend or an enemy. A man whose merits are so great that he could win on his merits alone; whose personality is so engaging that you lose sight of his merits. Make their fight on a man like that! What irreverent caricaturist was it that called them the Stupid party? In our candidate for the Vice-Presidency we have followed the old and commendable custom of the Republic and have nom- inated a man in every way fit for the highest place in the nation, who will bring to the Presidency of the Senate an ability and experience rarely equaled in its history. A Word to Young Men. I have detained you too long; yet as I close I want to say a word to the young men whose political life is beginning. Anyone entering business would be glad of the chance to become one of an established firm with years of success behind it, with a wide con- nection, with unblemished character, with credit founded on a rock. How infinitely brighter the future when the present is so sure, the past so glorious. Everything great done by this country in the last fifty years has been done under the auspices of the Republican party. Is not this consciousness a great asset to have in your mind and memory? As a mere item of personal comfort is it not worth having? Lincoln and Grant, Hayes and Garfield, Harrison and McKinley — names secure in the heaven of fame — they all are gone, leaving small estates in worldly goods, but what vast pos- sessions in principles, memories, sacred associations! It is a start in life to share that wealth. Who now boasts that he opposed Lin- coln? who brags of his voting against Grant? though both acts may have been from the best of motives. In our form of government there must be two parties, and tradition, circumstances, tempera- ment, will always create a sufficient opposition. But what young man would not rather belong to the party that does things, in- stead of one that opposes them; to the party that looks up, rather than down; to the party of the dawn, rather than of the sunset. For fifty years the Republican party has believed in the country and labored for it in hope and joy; it has reverenced the flag and followed it; has carried it under strange skies and planted it on far-receding horizons. It has seen the nation grow greater every year and more respected; by just dealing, by intelligent labor, by a genius for enterprise, it has seen the country extend its inter- course and its influence to regions unknown to our fathers. Yet it has never abated one jot or tittle of the ancient law imposed on us by our God-fearing ancestors. We have fought a good fight, but also we have kept the faith. The Constitution of our fathers has been, the light to our feet; our path is, and will ever remain, that of ordered progress, of liberty under the law. The country has vastly increased, but the great-brained statesmen who preceded us provided for infinite growth. The discoveries of science have made miraculous additions to our knowledge. But we are not daunted by progress; we are not afraid of the light. The fabric our fathers builded on such sure foundations will stand all shocks of fate or fortune. There will always be a proud pleasure in look- ing back on the history they made; but, guided by their example, the coming generation has the right to anticipate work not less important, days equally memorable to mankind. We who are pass- ing off the stage bid you, as the children of Israel encamping by the sea were bidden, to Go Forward; we whose hands can no longer hold the flaming torch pass it on to you that its clear light may show th.e truth to the ages that are to come. 464 SENATOR FAIRBANKS' SPEECH. SPEECH BY SENATOR FAIRBANKS AT JACKSON, MICH., JULY 6th, 1904, ON THE 50th ANNIVERSARY OF THE BIRTH OF THE REPUBLICAN PARTY. Senator Burrows and Fellow Citizens: We are met to commemorate no ordinary event, for here a half century ago American patriots solemnly pledged themselves to vindicate the first principles of republican government, to chal- lenge the aggressions of the slave power. Here was issued the second declaration of freedom. Here was taken the initial step which led to the overthrow of slavery and the establishment of the government upon truly national lines. We freely pay the tribute of our grateful appreciation to the memory of those who raised here the standard of republicanism. The Republican party was born of the conscience of the people, and it was here dedicated to as high and holy a service as ever summoned men to heroic duty. The appeal to the people of Michigan which was issued by Zachariah Chandler, that stalwart among stalwarts, and his asso- ciates, was like a clarion call to exalted service. It was conceived in the same spirit which inspired our fathers in the morning of the American Revolution. The resolutions here adopted were put upon a high plane. Dif- ferences of individual opinion upon all other subjects of state or domestic policy were subordinated to the one overmastering ques- tion of the hour. It was solemnly "Resolved, That, postponing and suspending all differences with regard to political economy or administrative policy, in view of the imminent danger that Kansas and Nebraska will be grasped by slavery, we will act cordially and fathfully in unison to avert and repeal this gigantic wrong and shame." Integrity of the Nation. Thus consecrated, the Republican party was here christened and sent forth to accomplish a more vital mission than ever chal- lenged the consideration of the people since the foundation of the Government. To the Republican party was committed, in God's providence, the stupendous responsibility of preserving the integrity of the nation itself. We would not here kindle anew the fires of past hates or reopen the debate of long-buried differences which divided section against section, for we stand united under the acknowl- edged supremacy of one flag and one Constitution. But we may appropriately recall the history of a great generation in which American contested with American for the triumph of opposing theories. In that contest the Republican party stood for the national solidarity. It stood for the nation above the state, and the victory it achieved blessed both the victor and the vanquished. American opposed American with titanic power. American met American upon the field of glory and the God of battles was with the cause espoused by the Republican party. The hates and the enmities which ignorance and false teaching engendered have hap- pily perished and perished forever. The memory of the valor of those who fought for conscience sake beneath opposing flags remains as a rich national inheri- tance. The impartial verdict of history is that the Republican party was everlastingly right, and its further verdict is that no American ever surrendered his sword save to an American. Every grave, whether it is tenanted by the heroic youth who wore the blue, or by him who wore the gray, is an enduring pledge of the solidity and unity of the Republic. Out of the unhappy divisions which followed quickly upon the accession to power of the Republican party came a new national birth, a fusing of national strength beyond the dreams of our fathers. Amidst Stirring Events. Fifty years is a brief period when compared with the life of the older nations, yet it embraces the entire life of the Republican party, a party whose achievements are among the most lasting and luminous of the deeds done by any party since the beginning senator Fairbanks' speech. 465 of the Government. It has not lived the life of repose and inac- tivity, for its career has been characterized by restless energy and serious work. Its lines have been cast amidst stirring events, when great problems were to be solved and mighty deeds were to be done. It has met upon a high level domestic questions of far- reaching significance, and it has increased our national prestige abroad. Our primacy among the nations of the world is generally acknowledged. It is a cause for congratulation to us that the orator of this historic occasion should be one who has done more than any other to establish our prestige among foreign courts, the wise, able, modest, loyal, trusted friend of Abraham Lincoln, William McKinley, and Theodore Roosevelt — the Hon. John Hay. The span of the last fifty years is, indeed, the golden age of the Republic. During the greater part of this period the Republican party was in the ascendency. Its principles and its policies were in full operation in the nation and our country advanced as never before. Its growth during the existence of the Republican party verges on the marvelous. While the tremendous progress that has been made can not be ascribed, of course, entirely to the wisdom and beneficence of its policies, yet it has contributed immeasurably to the results which have been attained. Human Liberty Extended. It has given security and protection to capital and labor. It has been the wise and loyal friend of each, for it has realized that our greatest development must come through their harmonious co- operation. It has inspired confidence among the people in the \ integrity and soundness of its administration, all of which is essen- tial to the highest development and progress. No duty has been | laid upon it, now matter how sudden or grave, but that it has [met it wisely and bravely. It has never capitulated to mere ex- i pediency or made a truce with wrong. It has taken the moral side | of every great question and has confidently trusted in the sober and ultimate judgment of the American people. It has taught the unity of the Republic, the oneness of the American people, and their interdependency. It has stood against socialistic tendencies and opposed those malign teachings which would establish class distinctions, which are the very life of monarchical institutions and which are baneful to the Republic. The country of fifty years ago stands in marked contrast to what we behold to-day. Then there were thirty-two States with some 25,000,000 of people, part slave and part free. To-day we have forty-five States, with 80,000,000 of freemen. Then there was division among the States. To-day there is unity of senti- ment. Then there was slavery. To-day it is dead and buried be- yond the possibility of resurrection. The zone of human liberty has been extended beyond the limits of our borders by the valor of our arms, and established among alien peoples in the distant seas. Worthy of Our Fathers. The progress of our people has been manifest in every avenue of human effort. It has been marked in art and science, in philanthropy and charity, in school and church, in industry and commerce. While we have developed in the material world be- yond the most optimistic dreams of those who fifty years ago assembled here beneath the historic oaks, we have expanded in all of the higher and better qualities which excite the pride and admiration of the most advanced people. We stand at the morning of a new century which is to be greater than the past with all of its glorious achievement. It is a happy augury that we enter upon it with the Republican party in the ascendency, under Republican policies which are suited to the largest national growth. The Republican party has given to history many statesmen of great eminence, whose names have become a part of the immeas- urable glory of the Republic. We will enter upon the half century which opens before us with such hopeful promise under a bravo, patriotic, wise American whose ideals are in harmony with the best traditions of the Republic, and whose ambition is to lead our countrymen and our country in the paths of peace, prosperity, and honor— Theodore Roosevelt. Let us take hence new inspiration from this hallowed spot and prove ourselves worthy of the virtue and courage of our fathers. 466 BOOT'S SPEECH. SPEECH OF HON. ELIHU ROOT. Temporary Chairman of Republican National Convention, at Chi- cago, June 21, 1904. The responsibility of the Government rests upon the Republican party. The complicated machinery through which the 80,000,000 people of the United States govern themselves answers to no single will. The composite government devised by the framers of the Constitution to meet the conditions of national life more than a century ago, requires the willing co-operation of many minds, the combination of many independent factors, in every forward step for the general welfare. The President at Washington with his cabinet, the ninety sena- tors representing forty-five sovereign states, the 386 representatives in Congress are required to reach concurrent action upon a multi- tude of questions involving varied and conflicting interests and re- quiring investigation, information, discussion, and reconciliation of views. From all our vast territory with its varieties of climate and industry, from all our great population active in production and commerce and social progress and intellectual and moral life — to a degree never before attained by any people — difficult prob- lems press upon the National Government. Within the past five years more than sixty-six thousand bills have been introduced in Congress. Some method of selection must be followed. There must be some preliminary process to ascer- tain the general tenor of public judgment upon the principles to be applied in government, and some organization and recognition of leadership which shall bring a legislative majority and the Execu- tive into accord in the practical application of those principles, or effective government becomes impossible. The practical governing instinct of our people has adapted the machinery devised in the eighteenth to the conditions of the twen- tieth century by the organization of national political parties. In them men join for the promotion of a few cardinal principles upon which they agree. For the sake of those principles they lay aside their differences upon less important questions. To represent those principles and to carry on the Government in ac- cordance with them, they present to the people candidates whose competency and loyalty they approve. The people by their choice of candidates indicate the principles and methods which they wish followed in the conduct of their government. They do not merely choose between men, they choose between parties — between the principles they profess, the methods they follow, the trustworthi- ness of their professions, the inferences to be drawn from the records of their past, the general weight of character of the body of men who will be brought into participation in government by their ascendency. A Great Record. When the course of the next administration is but half done the Republican party will have completed the first half century of its national life. Of the eleven administrations since the first election of Abraham Lincoln, nine — covering a period of thirty- six years — have been under Republican Presidents. For the greater part of that time the majority in each House of Congress has been Republican. History affords no parallel in any age or country for the growth in national greatness and power and honor, the wide diffusion of the comforts of life, the uplifting of the great mass of the people above the hard conditions of poverty, the common opportunity for education and individual advance- ment, the universal possession of civil and religious liberty, the protection of property and security for the rewards of industry and enterprise, the cultivation of national morality, respect for religion, sympathy with humanity, and love of liberty and justice ROOT'S SPEECH. 4f>7 which have marked the life of the American people during this long period of Republican control. With the platform and the candidates of this convention we are about to ask a renewed expression of popular confidence in the Republican- party. We shall ask it because the principles to which we declare our adherence are right and the best interests of our country require that they should be followed in its government. We shall ask it because the unbroken record of the Republican party in the past is an assurance of the sincerity of our declara- tions and the fidelity with which we shall give them effect. Be; cause we have been constant in principle, loyal to our beliefs', and faithful to our promises we are entitled to be believed and trusted now. We shall ask it because the character of the party gives as- surance of good government. A great political organization, com- petent to govern, is not a chance collection of individuals brought together for the moment as the shifting sands are piled up by wind and sea, to be swept away to be formed and re-formed again. It is a growth. Traditions and sentiments reaching down through struggles of years gone, and the stress and heat of old conflicts, and the influence of leaders passed away, and the ingrained habit of applying fixed rules of interpretation and of thought all give to a political party known and inalienable qualities from which must follow in its deliberate judgment and ultimate action like results for good or bad government. We do not deny that other parties have in their membership men of morality and patriotism, but we assert with confidence that, above all others, by the in- fluences which gave it birth and have maintained its life, by the causes for which it has striven, the ideals which it has followed, the Republican party as a party has acquired a character which makes its ascendency the best guaranty of a government loyal to principle and effective in execution. Through it more than any other political organization the moral sentiment of America finds expression. It cannot depart from the direction of its tendencies. From what it has been may be known certainly what it must be. Not all of us rise to its standard, not all of us are worthy of its glorious history, but as a whole this great political organization — the party of Lincoln and McKinley — cannot fail to work in the spirit of its past and in loyalty to great ideals. We shall ask the continued confidence of the people because the candidates whom we present are of proved competency and patriotism, fitted to fill the offices for which they are nominated to the credit and honor of our country. We shall ask it because the present policies of our Government are beneficial and ought not to be set aside ; and the people's business is being well done and ought not to be interfered with. A Few Questions. Have not the American people reason for satisfaction and pride in the conduct of their Government since the election of 1900, when they rendered their judgment of approval upon the first administration of President McKinley? Have we not had an honest government? Have not the men selected for office been men of good reputation who by their past lives had given evidence that they were honest and competent? Can any private business be pointed out in which lapses from honesty have been so few and so trifling, proportionately, as in the public service of the United States? And when they have occurred have not the of- fenders been relentlessly prosecuted and sternly punished without regard to political or personal relations? Have we not had an effective government? Have not the laws been enforced? Has not the slow process of legislative discussion upon many serious questions been brought to practical conclu- sions embodied in beneficial statutes? And has not the executive proceeded without vacillation or weakness to give these effect? Are not the laws of the United States obeyed at home, and does not our Government command respect and honor throughout the world? Have we not had a safe and conservative Government? Has not property been protected? Are not the fruits of enterprise and industry secure? What safeguard of the constitution for vested 468 BOOT'S SPEECH. right or individual freedom has not been scrupulously observed? When has any American administration ever dealt more consider- ately and wisely with questions which might have been the cause of conflict with foreign powers? When have more just settle- ments been reached by peaceful means? When has any adminis- tration wielded a more powerful influence for peace and when have we rested more secure in friendship with all mankind? Four years ago the business of the country was loaded with burdensome internal taxes, imposed during the war with Spain. By the acts of March 2, 1901, and April 12, 1902, the country has been wholly relieved of that annual burden of over one hundred lhillion dollars ; and the further accumulation of a surplus, which was constantly withdrawing the money of the country from cir- culation, has been prevented by the reduction of taxation. Between the 30th of June, 1900, and the 1st of June, 1904, our Treasury Department collected in revenues the enormous sum of $2,203,000,000 and expended $2,028,000,000, leaving us with a surplus of over $170,000,000 after paying the $50,000,000 for the Panama canal and loaning $4,000,000 to the St. Louis Exposition. Excluding these two extraordinary payments, which are invest- ments from past surplus and not expenditures of current income, the surplus for this year will be the reasonable amount of about $12,000,000. The Financial Policy. The vast and complicated transactions of the Treasury, which for the last fiscal year show actual cash receipts of $4,250,290,262 and disbursements of $4,113,199,414, have been conducted with perfect accuracy and fidelity and without the loss of a dollar. Under wise management the financial act of March 14, 1900, which embodied the sound financial principles of the Republican party and provided for the maintenance of our currency on the stable basis of the gold standard, has wrought out beneficent results. On the 1st of November, 1899, the interest-bearing debt of the United States was $1,046,049,020. On the 1st of May last the amount of that debt was $895,157,440, a reduction of $150,- 891,580. By refunding, the annual interest has been still more rapidly reduced from $40,347,884 on the 1st of November, 1899, to $24,176,745 on the 1st of June, 1904, an annual saving of over $16,000,000. When the financial act was passed the thinly settled portions of our country were suffering for lack of banking fa- cilities because the banks were in the large towns, and none could be organized with a capital of less than $50,000. Under the pro- visions of that act there were organized down to the 1st of May last 1,296 small banks of $25,000 capital, furnishing, under all the safeguards of the national banking system, facilities to the small communities of the west and south. The facilities made possible by that act have increased the circulation of national banks from $254,402,730 on the 14th of March, 1900, to $445,988,- 565 in the 1st of June, 1904. The money of the country in circula- tion has not only increased in amount with our growth in business, but it has steadily gained in the stability of the basis on which it rests. On the 1st of March, 1897, when the first administra- tion of McKinley began, we had in the country including bullion in the Treasury, $1,806,272,076. This was $23.14 per capita for our population, and of this 38.893 per cent, was gold. On the 1st of March, 1901, when the second administration of McKinley began, the money in the country was $2,467,295,228. This was $28.34 per capita, and of this 45.273 per cent, was gold. On the 1st of May last the money in the country was $2,814,985,446, which was $31.02 per capita, and of it 48.028 per cent, was gold. This great increase of currency has been arranged in such a way that the large government notes in circulation are gold certificates, while the silver certificates and greenbacks are of small denominations. As the large gold certificates represent gold actually on deposit, their presentation at the Treasury in exchange for gold can never in- fringe upon the gold reserve. As the small silver certificates and greenbacks are always in active circulation, no large amount of them can be accumulated for the purpose of drawing on the gold reserve; and thus, while every man can get a gold dollar for every dollar of the Government's currency, the endless chain which we were once taught to fear so much has been effectively root's speech. 469 put out of business. The Secretary of the Treasury has shown himself mindful of the needs of business and has so managed our finances as himself to expand and contract our currency as occa- sion has required. When in the fall of 1902 the demand for funds to move the crops caused extraordinary money stringency, the Secretary exercised his lawful right to accept state and municipal bonds as security for public deposits, thus liberating United States bonds which were used for additional circulation. When the crops were moved and the stringency was over he called for a with- drawal of the state and municipal securities, and thus contracted the currency. Again, in 1903, under similar conditions, he pro- duced similar results. The payment of the $50,000,000 for the Panama Canal made last month without causing the slightest disturbance in finance showed good judgment and a careful con- sideration of the interests of business upon which our people may confidently rely. Regulation of Trusts. Four years ago the regulation by law of the great corporate combinations called "trusts" stood substantially where it was when the Sherman Anti-Trust Act of 1890 was passed. President Cleveland, in his last message of December, 1896, had said : "Though Congress has attempted to deal with this matter by- legislation, the laws passed for that purpose thus far have proved ineffective not because of any lack of disposition or attempt to enforce them, but simply because the laws themselves as inter- preted by the courts do not reach the difficulty. If the insufficien- cies of existing laws can be remedied by further legislation, it should be done. The fact must be recognized, however, that all Federal legislation on this subject may fall short of its purpose because of inherent obstacles and also because of the complex character of our governmental system, which, while making Fed- eral authority supreme within its sphere, has carefully limited that sphere by metes and bounds that cannot be transgressed." At every election, the regulation of trusts had been the football of campaign oratory and the subject of many insincere declara- tions. Our Republican administration has taken up the subject in a practical, sensible way as a business rather than a political ques- tion, sayipg what it really meant, and doing what lay at its hand to be done to accomplish effective regulation. The principles upon which the government proceeded were stated by the President in his message of December, 1902. He said : "A fundamental base of civlization is the inviolability of prop- erty; but this is in no wise inconsistent with the right of society to regulate the exercise of the artificial powers which it confers upon the owners of property, under the name of corporate fran- chises, in such a way as to prevent the misuse of these pow- ers. * * * "We can do nothing of good in the way of regulating and supervising these corporations until we fix clearly in our minds that we are not attacking the corporations, but endeavoring to do away with any evil in them. We are not hostile to them; we are merely determined that they shall be so handled as to subserve the public good. We draw the line against misconduct, not against wealth. * * * "In curbing and regulating the combinations of capital which are or may become injurious to the public we must be careful not to stop the great enterprises which have legitimately reduced the cost of production, not to abandon the place which our country has won in the leadership of the international industrial world, not to strike down wealth with the result of closing factories and mines, of turning the wage-worker idle in the streets and leaving the farmer without a market for what he grows. * * * "I believe that monopolies, unjust discriminations which pre- vent or cripple competition, fraudulent over-capitalization, and other evils in trust organizations and practices which injuriously affect interstate trade, can be prevented under the power of the Congress to 'regulate commerce with foreign nations and among the several States' through regulations and requirements operating directly upon such commerce, the instrumentalities thereof, and those engaged therein." After long consideration, Congress passed three practical stat- utes : On the 11th of February, 1903, an act to expedite hearings in suits in enforcement of the Anti-Trust Act ; on the 14th of Feb- ruary, 1903, the act creating a new Department of Commerce and Labor with a Bureau of Corporations, having authority to secure systematic information regarding the organization and operation of corporations engaged in interstate commerce; and on the 19th of February, 1903, an act enlarging the powers of the Interstate Commerce Commission and of the court, to deal with secret re- 470 root's speech. bales in transportation charges, which are the chief means by which the trusts crush out their smaller competitors. The Attorney-Genera] has gone in the same practical way, not to talk about the trusts, but to proceed against the trusts by law for their regulation. In separate suits fourteen of the great rail- roads of the country have been restrained by injunction from giving illegal rebates to the favored shippers, who by means of thorn were driving out the smaller shippers and monopolizing the grain and meat business of the country. The beef trust was put under injunction. The officers of the railroads engaged in the cot- ton carrying pool, affecting all that great industry of the South, were indicted and have abandoned their combination. The North- ern Securities Company, which undertook by combining in one ownership the capital stocks of the Northern Pacific and Great Northern Railroads to end traffic competition in the Northwest, has been destroyed by a vigorous prosecution, expedited and brought to a speedy and effective conclusion in the Supreme Court under the act of February 11th, 1903. The Attorney-General says : "Here, then, are four phases of the attack on the combinations in restraint of trade and commerce — the railroad injunction suits, the cotton pool cases, the beef trust cases, and the Northern Se- curities case. The first relates to the monopoly produced by secret and preferential rates for railroad transportation; the second to railroad traffic pooling; the third to a combination of independent corporations to fix and maintain extortinate prices for meats, and the fourth to a corporation organized to merge into itself the control of parallel and competing lines of railroad and to eliminate compettion in their rates of transportation." Lawful Concerns Protected. The right of the Interstate Commerce Commission to compel the production of books and papers has been established by the judgment of the Supreme Court in a suit against the coal-carrying roads. Other suits have been brought and other indictments have been found and other trusts have been driven back within legal bounds. No investment in lawful business has been jeopardized, no fair and honest enterprise has been injured ; but it is certain that wherever the constitutional power of the National Govern- ment reaches, trusts are being practically regulated and curbed within lawful bounds as they never have been before, and the men of small capital are finding in the efficiency and skill of the na- tional Department of Justice a protection they never had before against the crushing effect of unlawful combinations. We have at last reached a point where the public wealth of farm land, which has seemed so inexhaustible, is nearly gone, and the problem of utilizing the remainder for the building of new homes has become of vital importance. The present administration has dealt with this problem vigor- ously and effectively. Great areas had been unlawfully fenced in by men of large means, and the home-builder had been excluded. Many of these unlawful aggressors have been compelled to relin- quish their booty and more than 2,000,000 acres of land have been restored to the public. Extensive frauds in procuring grants of land, not for homesteads but for speculation, have been investi- gated and stopped, and the perpetrators have been indicted and are being actively prosecuted. A competent commission has been constituted to examine into the defective working of the existing laws and to suggest practical legislation to prevent further abuse. That commission has reported, and bills adequate to accomplish the purpose have been framed and are before Congress. The fur- ther denudation of forest areas, producing alternate floods and dryness in our river valleys, has been checked by the extension of forest reserves, which have been brought to aggregate more than 63,000,000 acres of land. The reclamation by irrigation of the vast arid regions forming the chief part of our remaining public do- main has been provided for by the National Reclamation Law of June 17, 1903. The execution of this law, without taxation and by the application of the proceeds of public land sales alone, through the construction of storage reservoirs for water, will make many millions of acres of fertile lands available for settlement. Over $20,000,000 from these sources has been already received to the credit of the reclamation fund. Over 33,000,000 acres of public lands in fourteen states and territories have been embraced in the sixty-seven projects which have been devised are under examina- root's speech. 471 tion, and on eight of these the work of actual construction has begun. The postal service has been extended and improved. Its reve- nues have increased from $76,000,000 in 1895 to $95,000,000 in 1899, and $144,000,000 in 1904. In dealing with these vast sums a few cases of peculation, trifling in amount, and by subordinate officers, have occurred there as they occur in every business. Neither fear nor favor, nor political or personal influence, has availed to protect the wrongdoers. Their acts have been detected, investigated, laid bare; they have been dismissed from their places, prosecuted criminally, indicted, many of them tried, and many of them convicted. The abuses in the carriage of second- class mail matter have been remedied. The rural free delivery has been widely extended. It is wholly the creation of Republican ad- ministration. The last Democratic Postmaster-General declared it impracticable. The first administration of McKinley proved the contrary. At the beginning of the fiscal year 1899 there were about 200 routes in operation. There are now more than 25,000 routes, bringing a daily mail service to more than 12,000,000 of our people in rural communities, enlarging the circulation of the newspaper and the magazine, increasing communication and relieving the isolation of life on the farm. For the Farmer. The Department of Agriculture has been brought to a point of efficiency and practical benefit never before known. The Oleo- margarine Act of May 9, 1902, now sustained in the Supreme Court, and the Act of July 1, 1902, to prevent the false branding of food and dairy products, protect farmers against fraudulent imitations. The Act of February 2, 1903, enables the Secretary of Agriculture to prevent the spread of contagious and infectious diseases of live stock. Rigid inspection has protected our cattle against infection from abroad, and has established the highest .credit for our meat products in the markets of the world. The earth has been searched for weapons with which to fight the ene- mies that destroy the growing crops. An insect brought from near the Great Wall of China has checked the San Jose scale, which was destroying our orchards; a parasitic fly brought from South Africa is exterminating the black scale in the lemon and orange groves of California ; and an ant from Guatemala is about offering battle to the boll weevil. Broad science has been brought to the aid of limited experience. Study of the relations between plant life and climate and soil has been followed by the introduction of special crops suited to our varied conditions. The introduction of just the right kind of seed has enabled the Gulf States to increase our rice crop from 115,000,000 pounds in 1898 to 400,000,000 pounds in 1903, and to supply the entire American demand, with a surplus for export. The right kind of sugar beet has increased our annual production of beet sugar by over 200,000 tons. Seed brought from countries of little rainfall is producing millions of bushels of grain on lands which a few years ago were deemed a hopeless part of the arid belt. The systematic collection and publication of information re- garding the magnitude and conditions of our crops is mitigating the injury done by speculation to the farmer's market. To increase the profit of the farmer's toil, to protect the farmer's product and extend his market, and to improve the con- ditions of the farmer's life ; to advance the time when America shall raise within her own limits every product of the soil con- sumed by her people, as she makes within her own limits every necessary product of manufacture — these have been cardinal ob- jects of Republican administration; and we show a record of practical things done toward the accomplishment of these objects never before approached. That Pledge to Cuba. Four years ago we held the Island of Cuba by military occupa- tion. The opposition charged, and the people of Cuba believed, that we did not intend to keep the pledge of April 20, 1898, that when the pacification of Cuba was accomplished we should leave the government and control of the island to its people. The new policy towards Cuba which should follow the fulfillment of that 472 root's speech. pledge was unformed. During the four years it has been worked out in detail and has received effect. It was communicated by executive order to tiio .Military Governor, it was embodied In the Act of Congress known as the Halt Amendment It was accepted by the Cuban Constitutional Convention on the 12th of October, 1901. It secured to Cuba her liberty and her independence, but it required her to maintain them. It forbade her ever to use the freedom we had earned lor her by so great a sacrifice of blood and treasure, to give the island to any other power; it required her to maintain a government adequate for the protection of life and property and liberty, and should she fail, it gave us the right to intervene for the maintenance of such a government. And it gave us the right to naval stations upon her coast for the protection and defense alike of Cuba and the United States. On the 20th of May, 1902, under a constitution which embodied these stipulations, the government and control of Cuba were sur- rendered to the President and Congress elected by her people, and the American army sailed away. The new republic began its existence with an administration of Cubans completely organized in all its branches and trained to effective service by American officers. The administration of President Palma has been wise and efficient. Peace and order have prevailed. The people of Cuba are prosperous and happy. Her finances have been honestly administered, and her credit is high. The naval stations have been located and bounded by Guantanamo and Bahia Honda, and are in the possession of our navy. The Piatt Amendment is the sheet anchor of Cuban independence and of Cuban credit No such revolutions as have afflicted Central and South America are possible there, because it is known to all men that an attempt to overturn the foundations of that government will be confronted by the overwhelming power of the United States. The treaty of reci- procity and the Act of Congress of December 6, 1903, which con- firmed it, completed the expression of our policy towards Cuba ; which with a far view to the future was to bind us by ties of benefit and protection, of mutual interest and genuine friendship to that island which guards the Caribbean and the highway to the isthmus, and must always be, if hostile, an outpost of attack, and, if friendly, an outpost of defense for the United States. Rich as we are, the American people have no more valuable possession than the sentiment expressed in the dispatch which I will now read: HAVANA. May 20, 1902. Theodore Roosevelt, President, Washington. The government of the island having- been just transferred, I, as Chief Magistrate of the Republic, faithfully interpreting the sentiment of the whole people of Cuba, have the honor to send you and the American people testimony of our profound gratitude and the assurance of an enduring friendship, with wishes and prayers to the- Almighty for the welfare and prosperity of the' United States. T. Estrada Palma. As to the Philippines. When the last national convention met the Philippines also were under military rule. The insurrectos from the mountains spread terror among the peaceful people by midnight foray and secret assassination. Aguinaldo bided his time in a secret re- treat. Over seventy thousand American soldiers from more than five hundred stations held a still vigorous enemy in check. The Philippine Commission had not yet begun its work. The last vestige of insurrection has been swept away. With their work accomplished, over 55,000 American troops have been brought back across the Pacific. Civil government has been estab- lished throughout the archipelago, peace and order and justice prevail. The Philippine Commission, guided at first by executive order and then by the wise legislation of Congress", in the Philip- pine Government Act of July 1, 1902, have established and con- ducted a government which has been a credit to their country and a blessing to the people of the islands. The body of laws which they have enacted upon careful and intelligent study of the needs of the country challenges comparison with the statutes of any country. The personnel of civil government has been brought together under an advanced and comprehensive civil service law, which has been rigidly enforced. A complete census has been boot's speech. 473 taken, designed to be there as it was in Cuba the basis for repre- sentative government; and the people of the islands will soon proceed under provisions already made by Congress to the election of a representative assembly, in which for the first time in their history they may have a voice in the making of their own laws. In the meantime the local and provincial governments are in the hands of officers elected by the Filipinos ; and in the great central offices, in the Commission, on the bench, in the executive depart- ments, the most distinguished men of the Filipino race are taking their part in the government of their people. A free school system has been established and hundreds of thousands of children are learning lessons which will help fit them for self-government. The seeds of religious strife existing in the bitter controversy between the people and the religious orders have been deprived of potency for harm by the purchase of the friars' lands, and their practical withdrawal. By the Act of Congress of March 2, 1903, a gold standard has been established to take the place of the fluctuating silver currency. The unit of value is made exactly one-half the value of the American gold dollar, so that American money is practically part of their currency system. To enable the Philip- pine Government to issue this new currency $6,000,000 was bor- rowed by them in 1903 in the city of New York ; and it was bor- rowed at a net interest charge of 1% per cent per annum. The trade of the islands has increased notwithstanding adverse con- ditions. During the last five years of peace under Spanish rule the average total trade of the islands was less than $36,000,000. During the fiscal year ending June 30, 1903, the trade of the islands was over $66,000,000. There is but one point of disturb- ance, and that is in the country of the Mohammedan Moros, where there is an occasional fitful savage outbreak against the enforce- ment of the law recently made to provide for adequate supervision and control to put an end to the practice of human slavery. When Governor Taft sailed from Manila in December last to fill the higher office where he will still guard the destinies of the people for whom he has done such great and noble service, he was followed to the shore by a mighty throng, not of repressed and sullen subjects, but of free and peaceful people, whose tears and prayers of affectionate farewell showed that they had already begun to learn that "our flag has not lost its gift of benediction in its world-wide journey to their shores." None can foretell the future; but there seems no reasonable cause to doubt that, under the policy already effectively inaugu- rated, the institutions already implanted, and the processes al- ready begun in the Philippine Islands, if these be not repressed and interrupted, the Philippine people will follow in the footsteps of the people of Cuba ; that more slowly indeed, because they are not as advanced, yet as surely, they will grow in capacity for self- government, and receiving power as they grow in capacity, will come to bear substantially such relations to the people of the United States as do now the people of Cuba, differing in details as conditions and needs differ, but the same in principle and the same in beneficent results. The Panama Canal. In 1900 the project of an isthmian canal stood where it was left by the Clayton-Bulwer Treaty of 1850. For half a century it had halted, with Great Britain resting upon a joint right of control, and the great undertaking of de Lesseps struggling against the doom of failure imposed by extravagance and corruption. On the 18th of November, 1901, the Hay-Pauncefote Treaty with Great Britain relieved the enterprise of the right of British con- trol and left that right exclusively in the United States. Then followed swiftly the negotiations and protocols with Nicaragua; the Isthmian Canal Act of June 28, 1902 ; the just agreement with the French canal company to pay them the value of the work they had done; the negotiation and ratification of the treaty with Colombia ; the rejection of that treaty by Colombia in violation of our rights and the world's right to the passage of the isthmus ; the seizure by Panama of the opportunity to renew her oft-re- peated effort to throw off the hateful and oppressive yoke of Colombia and resume the independence which once had been hers, and of which she bad been deprived by fraud and force ; the sue- 474 BOOT'S SPEECH. cess of the revolution; our recognition of the new republic, fol- lowed by recognition from substantially all the civilized powers of the world; the treaty with Panama recognizing and confirming our right to construct the canal ; the ratification of the treaty by the Senate ; confirmatory legislation by Congress ; the payment of the $50,000,000 to the French company and to Panama ; the appointment of the Canal Commission in accordance with law, and its organization to begin the work. The action of the United States at every step has been in ac- cordance with the law of nations, consistent with the principles of justice and honor, in discharge of the trust to build the canal we long since assumed by denying the right of every other power to build it, dictated by a high and unselfish purpose, for the common benefit of all mankind. That action was wise, considerate, prompt, vigorous and effective; and now the greatest of constructive na- tions stands ready and competent to begin and to accomplish the great enterprise which shall realize the dreams of past ages, bind together our Atlantic and Pacific coasts, and open a new highway for that commerce of the Orient whose course has controlled the rise and fall of civilizations. Success in that enterprise greatly concerns the credit and honor of the American people, and it is for them to say whether the building of the canal shall be in charge of the men who made its building possible, or of the weaklings whose incredulous objections would have postponed it for another generation. For Peace and Justice. Throughout the world the diplomacy of the present adminis- tration has made for peace and justice among nations. Clear- sighted to perceive and prompt to maintain American interests, it has been sagacious and simple and direct in its methods, and considerate of the rights of the feelings of others. Within the month after the last national convention met Sec- retary Hay's circular note of July 3, 1900, to the great powers of Europe had declared the policy of the United States "to seek a solution which may bring about permanent safety and peace to China, preserve China's territorial and administrative entity, protect all rights guaranteed to friendly powers by treaty and international law, and safeguard for the world the principle of equal and impartial trade with all parts of the Chinese Empire." The express adherence of the powers of Europe to this declara- tion was secured. The open recognition of the rule of right con- duct imposed its limitations upon the conduct of the powers in the Orient. It was made the test of defensible action. Carefully guarded by the wise statesman who had secured its acceptance, it brought a moral force of recognized value to protect peaceful and helpless China from dismemberment and spoliation, and to pre- serve the open door in the Orient for the commerce of the world. Under the influence of this effective friendship, a new commercial treaty with China, proclaimed on the 8th of October last, has en- larged our opportunities for trade, opened new ports to our com- merce, and abolished internal duties on goods in transit within the Empire. There were indeed other nations which agreed with this policy of American diplomacy, but no other nation was free from suspicion of selfish aims. None other had won confidence in the sincerity of its purpose, and none other but America could render the service which we have rendered to humanity in China during the past four years. High evidence of that enviable posi- tion of our country is furnished by the fact that when all Europe wa.s in apprehension lest the field of war between Russia and Japan should so spread as to involve China's ruin and a universal conflict, it was to the American Government that the able and far- sighted German Emperor appealed, to take the lead again in bring- ing about an agreement for the limitation of the field of action, and the preservation of the administrative entity of China outside of Manchuria ; and that was accomplished. Upon our own continent a dispute with Canada over the boundary of Alaska had been growing more acute for 30 years. A multitude of miners, swift to defend their own rights by force, were locating mining claims under the laws of both countries in the disputed territory. At any moment a fatal affray between Canadian and American miners was liable to begin a conflict in which all British Columbia would be arrayed on one side and root's speech. 475 all our Northwest upon the other. Agreement was impossible. But the Alaskan Boundary Treaty of January 24, 1903, provided a tribunal for the decision of the controversy ; and upon legal proofs and reasoned argument, an appeal has been had from prejudice and passion to judicial judgment ; and under the lead of a great Chief Justice of England, who held the sacred obligations of his judicial office above all other considerations, the dispute has been settled forever and substantially in accordance with the American contention. International Arbitration. In 1900 the first administration of McKinley had played a great part in establishing the Hague Tribunal for international arbitration. The prevailing opinion of Europe was incredulous as to the practical utility of the provision and anticipated a paper tribunal unsought by litigants. It was the example of the United States which set at naught this opinion. The first international case taken to the Hague Tribunal was under our protocol with Mexico of May 22, 1902, submitting our contention for the rights of the Roman Catholic Church in California to a share of the Church moneys held by the Mexican Government before the cession and known as the Pious Fund; and the first excision of the tri- bunal was an award in our favor upon that question. When in 1903 the failure of Venezuela to pay her just debts led England, Germany and Italy to warlike measures for the col- lection of their claims, an appeal by Venezuela to our Government resulted in agreements upon arbitration in place of the war, and in a request that our President should act as arbitrator. Again he promoted the authority and prestige of the Hague Tribunal and was able to lead all the powers to submit the crucial questions in controversy to the determination of that court. It is due greatly to support by the American Government that this agency for peace has disappointed the expectations of its detractors, and by demon- strations of practical usefulness has begun a career fraught with possibilities of incalculable benefit to mankind. On the 11th of April, 1903, was proclaimed another convention between all the great powers, agreeing upon more humane rules for the conduct of war ; and these in substance incorporated and gave the sanction of the civilized world to the rules drafted by Francis Lieber and approved by Abraham Lincoln for the conduct of the armies of the United States in the field. All Americans who desire safe and conservative administration which shall avoid cause of quarrel, all who abhor war, all who long for the perfect sway of the principles of that religion which we all profess, should rejoice that under this Republican adminis- tration their country has attained a potent leadership among the nations in the cause of peace and international justice. The respect and moral power thus gained has been exercised in the interests of humanity where the rules of diplomatic inter- course have made formal intervention impossible. When the Roumanian outrages, and when the appalling massacre at Kishi- neff shocked civilization and filled thousands of our own people with mourning, the protest of America was heard through the voice of its Government, with full observance of diplomatic rules, but with moral power and effect. We have advanced the authority of the Monroe Doctrine. Our adnerence to the convention which established the Hague Tribunal was accepted by the other powers, with a formal declaration that nothing therein contained should be construed to imply the relin- quishment by the United States of its traditional attitude toward purely American questions. The armed demonstration by the European powers against Venezuela was made the occasion for disclaimers to the United States of any intention to seize the ter- ritory of Venezuela, recognizing in the most unmistakable way the rights of the United States expressed in the declaration of that traditional policy. In the meantime, mindful that moral powers unsupported by physical strength do not always prevail against selfishness and aggression, we have been augmenting the forces which command respect. The Army and Navy. We have brought our navy to a high state of efficiency and have exercised both army and navy in the methods of seacoast defense. 476 root's speech. The joint army and navy board has been bringing the two serv- ices together in good understanding and the common study of the strategy, the preparation and the co-operation which will make tlu>ni effective in time of need. Our ships have been exercised in fleet and squudron movements, have been improved in marksman- ship and mobility, and have been constantly tested by use. Since the last national convention met we have completed and added to our navy 5 battleships, 4 cruisers, 4 monitors, 34 torpedo destroy- ers and torpedo boats; while we have put under construction 13 battleships and 13 cruisers. Four years ago our army numbered over 100,000 men, regulars and volunteers, 75 per cent of them in the Philippines and China. Under the operation of statutes limiting the period of service, it was about to lapse back into its old and insufficient num- ber of 27,000 and its old and insufficient organization under the practical control of permanent staff departments a*- Wash- ington, with the same divisions of counsel and lack of co- ordinating and directing power at the head that led to confusion and scandal in the war with Spain. During the past four years the lessons taught by that war have received practical effect. The teachings of Sherman and of Upton have been recalled and re- spected. Congress has fixed a maximum of the army at 100,000 and a minimum at 60,000, so that maintaining only the minimum in peace, as we now do, when war threatens the President may begin preparations by filling the ranks to the maximum, without waiting until after war has begun, as he had to wait in 1898. Permanent staff appointments have been changed to details from the line, with compulsory returns at fixed intervals to service with troops, so that the requirements of the field and the camp rather than the requirements of the office desk shall control the departments of administration and supply. A corps organization has been provided for our artillery, with a chief of artillery at the head, so that there may be intelligent use of our costly sea- coast defenses. Under the. Act of February 14, 1903, a General Staff has been established, organized to suit American conditions and requirements and adequate for the performance of the long- neglected but all-important duties of directing military education and training, and applying the most advanced principles of mili- tary science to that necessary preparation for war which. is the surest safeguard of peace. The command of the army now rests where it is placed by the Constitution — in the President. His power is exercised through a military chief of staff pledged by the conditions and tenure of his office to confidence and loyalty to his commander. Thus civilian control of the military arm, upon which we must always insist, is reconciled with that mili- tary efficiency which can be obtained only under the direction of the trained military expert. New Military System. Four years ago we were living under an obsolete militia law more than a century old, which Washington and Jefferson and Madison, and almost every President since their time, had declared to be worthless. We presented the curious spectacle of a people depending upon a citizen soldiery for protection against aggression, and making practically no provision whatever for training its citizens in the use of warlike weapons or in the elementary duties of the soldier. The mandate of the Constitution which required Congress to provide for organizing, arming and disciplining the militia had been left unexecuted. In default of national provi- sions, bodies of state troops, created for local purposes and sup- ported at local expense, had grown up throughout the Union. Their feelings towards the Regular Army were rather of distrust and dislike than of comradeship. Their arms, equipment,' disci- pline, organization and methods of obtaining and accounting for supplies were varied and inconsistent. They were unsuited to be- come a part of any homogeneous force, and their relations to the Army of the United States were undefined and conjectural. By the Militia Act of January 20, 1903, Congress performed its duty under the Constitution. Leaving these bodies still to perform their duties to the States, it made them the organized militia of the United States. It provided for their conformity in armament, organization and discipline to the Army of the United States; it BOOT'S SPEECH. 477 provided the ways in which, either strictly as militia or as volun- teers, they should become an active part of the Army when called upon ; it provided for their training, instruction and exercise con- jointly with the Regular Army ; it imposed upon the Regular Army the duty of promoting their efficiency in many ways. In recognition of the service to the nation which these citizen soldiers would be competent to render, the nation assumed its share of the burden of their armament, their supply and their training. The workings of this system have already demonstrated, not only that we can have citizens outside of the Regular Army trained for duty in war, but that we can have a body of volunteer officers ready for service, between whom and the officers of the Regular Army have been created by intimate association and mutual helpfulness those relations of confidence and esteem without which no army can be effective. , The first administration of McKinley fought and won the war with Spain, put down the insurrection in the Philippines, an- nexed Hawaii, rescued the legations in Pekin, brought Porto Rico into our commercial system, enacted a protective tariff, and estab- lished our national currency on the firm foundations of the gold standard by the financial legislation of the Fifty-sixth Congress. The present administration has reduced taxation, reduced the public debt, reduced the annual interest charge, made effective progress in the regulation of trusts, fostered business, promoted agriculture, built up the navy, reorganized the army, resurrected the militia system, inaugurated a new policy for the preservation and reclamation of public lands, given civil government to the Philippines, established the Republic of Cuba, bound it to us by ties of gratitude, of commercial interest and of common defense, swung open the closed gateway of the Isthmus, strengthened the Monroe Doctrine, ended the Alaskan boundary dispute, protected the integrity of China, opened wider its doors of trade, advanced the principle of arbitration, and promoted peace among the na- tions. More Work Ahead. We challenge judgment upon this record of effective perform- ance in legislation, in execution and in administration. The work is not fully done ; policies are not completely wrought out ; domestic questions still press continually for solution ; other trusts must be regulated ; the tariff may presently receive revision, and if so, should receive it at the hands of the friends and not the enemies of the protective system ; the new Philippine Government has only begun to develop its plans for the benefit of that long- neglected country ; our flag floats on the Isthmus, but the canal is yet to be built ; peace does not yet reign on earth, and consid- erate firmness backed by strength are still needful in diplomacy. The American people have now to say whether policies shall be reversed or committed to unfriendly guardians ; whether perform- ance, which now proves itself for the benefit and honor of our country, shall be transferred to unknown and perchance to feeble hands. No dividing line can be drawn athwart the course of this suc- cessful administration. The fatal 14th of September, 1901, marked no change of policy, no lower level of achievement. The bullet of the assassin robbed us of the friend we loved ; it took away from the people the President of their choice ; it deprived civilization of a potent force making always for righteousness and for humanity, but the fabric of free institutions remained unshaken. The gov- ernment of the people went on. The great party that William McKinley led wrought still in the spirit of his example. His true and loyal successor has been equal to the burden cast upon him. Widely different in temperament and methods, he has approved himself of the same elemental virtues — the same fundamental beliefs. With faithful and revering memory, he has executed the purposes and continued unbroken the policy of President McKinley for the peace, prosperity and honor of our beloved country. And he has met all new occasions with strength and resolution and far-sighted wisdom. As we gather in this convention, our hearts go back to the friend — the never-to-be-forgotten friend, whom when last we met we acclaimed with one accord as our universal choice to bear a 478 ROOT'S SPEECH. second time the highest honor in the nation's gift; and back still, memory goes through many a year of leadership and loyalty. HOW wist» ami how skillful he was; how modest and self-effac- ing; how deep his insight into the human heart; how swift the intuitions of his sympathy; how Compelling the charm of hts gracious presence. He was so unselfish, so thoughtful of the hap- piness of others, so genuine a lover of his country and his kind. And he was the kindest and teuderest friend who ever grasped another's hand. Alas, that his virtues did plead in vain against cruel fate. Yet we may rejoice that while he lived he was crowned with honor ; that the rancor of party strife had ceased ; that success in his great tasks, the restoration of peace, the approval of his countrymen, the affection of his friends gave the last quiet months in his home at Canton repose and contentment. McKinley and Himnn. And with McKinley we remember Ilanna with affection and sorrow — his great lieutenant. They are together again. But we turn as they would have us turn, to the duties of the hour, the hopes of the* future; we turn as they would have us turn, to prepare ourselves for struggle under the same standard borne in other hands by right of true inheritance. Honor, truth, courage, purity of life, domestic virtue, love of country, loyalty to high ideals — all these combined with active intelligence, with learning, with experience in affairs, with the conclusive proof of competency afforded by wise and conservative administration, by great things already done and great results already achieved — all these we bring to the people with another candidate. Shall not these have honor jn our land? Truth, sincerity, courage; these underlie the fabric of our institutions. Upon hypocrisy and sham, upon cunning and false pretense, upon weakness and cowardice, upon the arts of the demagogue and the devices of the mere poli- tician no government can stand. No system of popular govern- ment can endure in which the people do not believe and trust. Our President has taken the whole people into his confidence. In- capable of deception, he has put aside concealment. Frankly and without reserve he has told them what their government was doing, and the reasons. It is no campaign of appearances upon which we enter, for the people know the good and the bad, the success and failure, to be credited and charged to our account. It is no campaign of sounding words and specious pretenses, for our President has told the people with frankness what he believed and what he intended. He has meant every word he said, and the people have believed every word he said, and with him this con- vention agrees because every word has been sound Republican doctrine. No people can maintain free government who do not in their hearts value the qualities which have made the present Presi- dent of the United States conspicuous among the men of his time as a type of noble manhood. Come what may here — come what may in November, God grant that those' qualities of brave, true manhood shall have honor throughout America, shall be held for an example in every home, and that the youth of generations to come may grow up to feel that it is better than wealth, or office, or power, to have the honesty, the purity, and the courage of Theodore Roosevelt. A party is of worth only so far as it promotes the national in- terest.— From President Roosevelt's speech of acceptance. Our domestic trade must be won hack and our idle working: people employed in gainful occupations at American wages. — Major McKinley to the Notification Committee, 1806. President Roosevelt was the greatest conservative force for the protection of property and of capital in the city of Washington during the years that have elapsed since President McKinley's death — Hon. Elihu Root, at New York, Feb. 3, 1904. If a tariff law has on the whole worked well, and if business has prospered under it and is prospering, it may be better to endure some inconveniences and inequalities for a time than, by making changes, to risk causing disturbance and perhaps paralysis in the industries and business of the country. — President Roosevelt at Minneapolis, April 4, 1903. cannon's speech. 479 SPEECH OF HON. J. Q. CANNON. Permanent Chairman of the Republican National Convention. For the first time in iny life I have in black and white enough sentences to contain 2,500 words to say to you. I have tried to memorize it (laughter), but I cannot. I have given it out through the usual channels to the great audience, and now I must either beg to be excused entirely or I must do as we do down in the House of Representatives under the five-minute rule and make a few feeble remarks. But that no man shall say that I have not made a great speech, I will set that matter at rest by saying that from beginning to end I heartily indorse every statement of fact and every sentiment that was given you yesterday from the tem- porary presiding officer in the greatest speech ever delivered at a convention. (Applause.) • Now let me go on and ramble. (Laughter.) And first they say that there is no enthusiasm in this convention. Gentlemen, the great river that has its 30 feet of water, rising ip the mountains and growing in depth and breadth down to the ocean, bears upon its bosom the commerce of that section of land that it drains and pours it out to the world. It is a silent river, and yet the brawling river that is like to the River Platte out in Nebraska, that is four- teen miles wide and four inches deep, makes more noise than the bigger rivers. (Applause.) When we were young folks twenty years ago (laughter) we went to see our best girls. We were awfully enthusiastic if she would give us a nod of the head or the trip-away, catch me if you can (laughter), to enter upon the chase ; that was awfully strenuous and awfully enthusiastic. (Laughter.) But when she said "Yes," then good relations were established and we went on evenly throughout the balance of our lives. (Laughter and applause.) It is a contest that makes en- thusiasm. In 1904 as in 1900 everybody has known for twelve months past who is to be our standard-bearer in this compaign. (Loud applause and cheering.) We are here for husiness. (Laugh- ter.) I wonder if our friends, the enemy, would not be glad of a little of our kind of enthusiasm. (Prolonged laughter and ap- plause.) I might illustrate further ; I don't know that it is necessary. I see some of my former friends before me — my colleague. Col. Lowden, and various others. (Applause.) Now, there is not one of you that raises chickens, as I do, but what understands that when the hen comes off the nest with one chicken she does more scratching and makes more noise than the motherly hen that is fortunate with twenty-three. (Laughter.) Our friends, the enemy, will have the enthusiasm, we will take the votes in November. (Applause.) To be serious for a moment. The Republican party is a gov- ernment through party and through organization — oh, you find people once in a while who do not want any parties. As long as you have 80,000,000 of people competent for self-government they will organize and will call the organization a party. The Repub- lican party, born of the declaration that slavery is sectional and freedom national (applause), achieved its first success in 1800 with Abraham Lincoln. (Applause.) Secession, the war of the Union, you older men recollect it well. We have one of the sur- vivors here. I was glad to see the convention give him the cour- tesies of the convention. He helped to make it possible that we could have this convention. (Applause.) Forty-four years ago, just about now, 1904, what a contrast ! A divided country, a bankrupt treasury, no credit. The Republican party got power, and under its great leadership wrote revenue legislation upon the statute books and went back to the principles of Washington and Hamilton, and legislation that would produce revenue, while fixing duties upon imports was so adjusted as to encourage every Ameri- can citizen to take part in the diversified industries and resources of the country. Our Great Factory Product. Will you bear with me for five minutes while I speak of the comparison as it was then upon the one hand of facts and the 480 cannon's .speech. condition to-day. In 18G0 we had been substantially dominated for inn ny years by the free-trade party, insignificant in manufactures, great In agriculture. Under our policy, which has been followed, with the exception of four years, from that time to this the United Stat« remains first in agriculture, but by leaps and bounds has diversified her industries until to-day we are the greatest manu- facturing country on God's footstool. One-third of all the world's products that come from the factory are made in the United States by the operation and cooperation of American capital and Ameri- can labor and skill. Let me make one other statement : Our prod- uct every year is greater than the entire combined manufactured product of Great Britain, of Germany, and of France. Where do we get .the market for it? Ninety-seven per cent of this great product — one-third the world's product — finds a market among ourselves in the United States. And yet of this product last year we sold to foreign countries — I am speaking now of the manufac- tured product — over $400,000,000 — 29 per cent of our total exports and our total exports made and make us the 'greatest exporting nation on earth. (Applause.) Made? Made by labor? Yes. Made by labor that works less hours than any labor on earth. Made by labor that, conservatively stated, receives one dollar and three-quarters as against the aver- age of the competitive labor in the world of one dollar. (Ap- plause.) Oh, gentlemen, it is not a few rich men that make mar- kets; nay, nay. It is the multiplied millions on the farm, in the mine, and in factory that work to-day and consume to-morrow, and with steady employment and good wage give us, with 80,000,- 000 people, a market equal to 200,000,000 of consuming people "any- where else on earth. The farmer buys the artisan's product. The artisan, being employed, buys the farmer's product. The wheels go round. You cannot strike one great branch of labor in the Republic without the blow reacting on all producers. Well, are you satisfied with the comparison from the manu- facturing standpoint? If not, let me give you another illustration that will perhaps go home to the minds of men more quickly than the illustration I have given. Take the Post-Office Department that reaches all of the people, and no man is compelled to pay one penny. It is voluntary taxation. From March, 1860, the year that Lincoln came into power, to March, 1861, in the twelve months the total revenue of the Post-Office Department in all the United States was $8,500,000. Keep that in your minds— $8,500,000. How much do you suppose it cost to run the department? Nineteen million. It took all the revenue and as much more and one-quarter as much more from the treasury to pay for that postal service. Why, gentlemen, the city post-office of Chicago last year collected more revenues by almost $1,000,000 than was collected by the whole department in the United States in 1860. (Applause.) How is it now? We have reduced postage over one-half since 1860 on the average. Last year the postal revenues were $134,000,000, as against $8,000,000 in 1860. Keep that in your minds— $134,'- 000,000. Arid the whole service cost only $138,000,000. We had a deficit of $4,000,000 (3 per cent), and we would not have had that deficit had it not been that, under the lead of the Republican party, looking out for the welfare of all the people and conducting the government from a business standpoint, under the lead of Mc- Kinley, followed by Roosevelt, there was established rural free delivery that cost $10,000,000. (Applause.) Great heaven! The Republican party from 1860 until this moment moves on — does what good, common sense dictates, and the country grows to it. Protection and the Democrats. Well, now I will drop that department. The Republican is a national party and believes in diversification of our industries and the protection of American capital and American labor as against the cheaper labor elsewhere on earth. (Applause.) What do the other people believe in? For sixty years went out the cry of free trade throughout the world, free ships upon the sea; on other questions a tariff for revenue only. The free-trade party has always denounced the Republican policy of protection as robbery, and whenever clothed with power, whatever its pretenses, it has thrust a dagger into the very heart of protection. Oh, well, aren't they going to change? Let us see. Just before cannon's speech. 481 the close of the last Congress, New York's eloquent son, Bourke Cockran, now a member of the House of Representatives, got the floor and he preached an old-fashioned Democratic sermon, free trade and all that kind of thing, and he did it well ; and there came from the minority side of that House without exception such cheer- ing and crying and hurrahing and applauding as I never witnessed before in that House of Representatives, because at last they had the pure Democratic faith delivered to them. They are trying to do what? Trying to convince the people that they ought to come into power, under the lead of Gorman of the Senate and Williams of the House. They have been trying to give the country dovers' powders. (Laughter.) "Oh," said a dis- tinguished colleague, following the astute Senator Gorman, "If we come into power, while protection is robbery, we will say to you that we will journey in the direction of free trade, but we will not destroy your industries over night." Great God! think of it! They won't kill you outright, but they will starve you to death day by day. (Laughter and applause.) They want to be put on guard to protect the people, who are dwelling in peace and pros- perity under a Republican policy. It reminds of the fable of Aesop. You know he records in one of his fables that the wolves said to the sheep, "Discharge the dogs" — : who were their natural protectors — "and employ us, and we will take care of you." (Laughter and applause.) Does the capital of this country and the labor of this country want to go under the care of wolf Gor- man and wolf Williams and their fellows? I think not. What a country this is ! and, Republicans, we have got to out- line the policy and lead the people in caring for it. Why, we are like the women ; we not only have to take care of ourselves, but more, as one of our women said, we have to take care of the men. (Laughter and applause.) The Republican party not only has to care for itself, but has to care for the minority by a wise policy. How it has been doing it! We preserved the Union under the policy and leadership of this party. Do you recollect that the opposition party, on a demand for an armistice and negotiation and compromise, nominated McClellan in 1864 and moved heaven and earth to defeat Lincoln? Do you recollect -hen the constitu- tional amendments were submitted they said nay, nay, and then, after they were adopted, the Democrats came into power tempo- rarily in Indiana and Ohio, they passed acts taking back the assent of the states? When the first batti^ was fought against greenback or fiat money, back in the '70s, out In the middle West, whatever they were on the Atlantic coast, they were fiatists in the West. From step to step through all these forty-four years where, if you measure time by advance, we have lived two cen- turies as compared with any other period of the world's history, they have pulled back, pulled back, and when we accomplish — and it is necessary to march forward and try to accomplish again — they move into our old quarters and squat down there and make a face and say, "You are going to send the country to hell." (Loud cheering and applause.) McKinley and Roosevelt. But we do not mind it. We move on. (Applause.) Why, gen- tlemen, why multiply words about ancient or recent conditions? Take the country under the administration of Grover Cleveland, and compare it with the country under the administration of William McKinley and under Theodore Roosevelt. (Applause.) If a man will dwell on comparison for a moment and make a fair comparison, if he would not indorse the policies of the Republican party he would not believe one though he were raised from the dead. (Laughter.) McKinley' Roosevelt! the Dingley act that restored us economic prosperity! the gold standard act that set- tled for all time the matter of sound currency! the short, trium- phant war with Spain! the Philippines and Porto Rico coming under our flag, and freedom to Cuba is a record that will stand in the future second only to the record made by George Washing- ton and Abraham Lincoln. (Applause.) Imported anarchy struck down our great President when par- tisan strife had almost ceased ; the world paused in wonder and in indignation — not in fear, because as life went from our great leader and our great President there was a young, active, honest, i 482 cannon's speech. courageous man standing by the bedside who, under the Constitu- tion, was his successor, and he there said : "I am to be President, to carry out the policies of the Republican party, and I will jour ney in the footsteps of William McKinley and of Abraham Lin- coln." (Applause.) To your coming President great things have happened in the last three years. In the old world a single great polity in a gen- eration is the exception. We have more than that in our pro- gressive country. I have given you the great achievements under McKinley. Under his great successor we have had the consum- mation of freedom to Cuba, wrought out by superior statesman- ship. Imperialism, talked about under McKinley, has disappeared with growing civil government and peace in the Philippines. Aye, it has disappeared from the face of the earth. Did I say from the face of the earth? I will stick to it, because the doctrinaire here and the doctrinaire there, whether in New York or in Boston, draws his toga about him, saying, "I am wiser than thou," and still, after this great question is settled by the conscience and the intelligence of all the people, cries, "Wolf, wolf !" Well, under the Constitution of the United States he has a right to. (Laughter.) Let them ask what is going to become of the Philippines? At last we have peace, at last we have growing civil government, and as our 80,000,000 in this twentieth century shall increase to 250,- 000,000, as we shall go out with production and commerce, in the fullness of time, that territory will be useful to the United States, whereas in the meantime we will be like a benediction to them. (Applause.) The United States is great in production and wealth. How great in wealth? In 1850 $300 in round numbers was the per capita wealth. In 1000 $1,235 was the per capita wealth. In 1800 the wealth was measured by $10,000,000,000; in 1000, $04,000,- 000,000; now a hundred billions. Great Brifaih only has an aggre- gate of wealth of $00,000,000,000, and she has been HviHg and gathering it for the last 500 years, yet in a generation we sprang from $10,000,000,000 to $100,000,000,000. The world's wealth is $400,000,000,000. The United States has one-fourth of it. The Trusts. But our friends, the enemy, some of them little politicians, vex the air, crying "trusts, trusts, trusts !" Oh, they come out strong with good lungs as trust-busters. Since 1800 have they ever done any busting? (Laughter.) Oh, no. There is no Jericho now, and if there was it would never happen again that people would march about the walls blowing rams' horns seven times until the walls fell down. That is what the Democrats are trying to do. Trusts? Yes. Great combinations of capital against public policy? Yes. But the Republican party, always true to the people arid its tradi- tions, made haste to provide under the Constitution legislation that would prohibit these combinations. The "do something" party ! It slept under Cleveland. McKinley had the war with Spain and the restoration of prosperity, but that young, enthusias- tic, true man took an oath to see to it that the laws were exe- cuted and has executed them. And in his opinion trusts are un- lawful and should be dissolved. That is the difference between the Democrats and Roosevelt. One bursts by wind, the other bursts by law. (Laughter and applause.) There is no country on earth that has so much wealth as ours. Why, interest rates are cheapening and cheapening, until to-day the credit of the United States commands money at a permium at 2 per cent, which is 1 per cent lower than any nation on earth can command it. Foreign combinations? But all the while these great wealth- seeking individuals, desiring favorable investments month by month and year by year, enterprising citizens desiring gain, found additional industries. Take the census of 1000. The figures are correctly tabulated and made according to the facts, and the census of 1000 shows that from the establishments of the so-called trusts in the United States only 14 per cent of the factory product came, whereas 80 per cent of the factory product came from their competitor individuals and small ownerships. And it is bound to be that way if yon will stop and think. There are 80,000,000 of our people. If some man conceives the cannon's speech. 483 Idea that when he dies wisdom will have departed, and that he can corner the air and the water and the sunlight, he will And 80,000,- 000 of people who make our civilization that will not only make a law and put it into force, but by competition and enterprise will swear that the admitted declaration of the enemy is a falsehood. Can you prove it? Yes. Just a minute. In the last two years the wind and the water that came from overcapitalization in forming the so-called trusts have been squeezed out, and there are people who make "mouth bets" about the price of watered companies and companies that have gas on top of the water, made by the print- ing-press certificates. . Oh, they stand around and say, "Why, these is the most extraordinary shrinkage in values that was ever known." "How much?" "Oh, a good many hundreds of millions; the Wall Street Journal says over a billion, 600 million." (Laugh- ter and applause.) And yet every dollar of property, every particle of property that was represented by this overcapitalization two years ago is yet with us. (Laughter and applause.) Now, all the fools that bet it to go down and the fools that bet it to go up can fight it out. It doesn't make one particle of difference to the 80 millions of people who live on the sweat of their faces and do a legitimate business. (Applause.) Oh, gentlemen, the law, public opinion, public sentiment, the desire for good investments, dollar for dol- lar in the factory where a dollar costs 100 cents, goes into compe- tition against the factory that costs % hundred cents and is bur- dened with another hundred cents common and another hundred cents gas and another hundred cents moonshine. Work it out. It is all right. (Laughter and applause.) Strikes. "Oh, but," says our enemy, "my goodness, look at the strikes you are having in this country!" That is their strong suit — strikes! Strikes! (Laughter and applause.) Now, what is a strike? The strike is an effort by the employer and the employee to agree how the profit should be divided. If the employee doesn't get as much as he thinks he ought to get after arbitration has been tried, he strikes. A quarrel about something. The division of something. Well, then, it is absolutely necessary to have a strike that there should be a profit. Great God ! how many strikes were there under Cleveland, when the Democrats had the running of things? (Laughter and applause.) When money became scarce the profits were scarce. There is the whole story. Oh, but outrageous things are done by the employer when he oppresses the laborer, and outrageous things are done by some laborers when they go on a strike. Yes, outrageous things are done in some of our best-governed churches and amongst those who do not belong to any church. Once in a while a citizen com- mits larceny. Once in a while a man commits arson. Once in a while a man is guflty of homicide. Why, the law is made to pro- tect society against the man whfS will not obey the law and who makes war on his neighbors. Yes, there is lawbreaking and dis- order — lawbreaking in the formation of trusts, lawbreaking at times in the organization of labor when it goes on strike. But the great body of the American people that own the wealth are not for the trusts, and the great body of labor, honest men who live by the sweat of their faces, are not for lawbreaking in the strikes. (Applause.) The law, the sheet anchor of civilization, is strong enough to pull down the strongest, strong enough to curb the wicked and the vicious, strong enough, like the grace of God, to throw its arms about the weak and the poorest and bring him under its protection. (Applause.) All must obey under Theodore Roosevelt as the national representative of the law. (Applause.) lie is and wiH continue to be, without favor or affection, the rep- resentative of law, supreme and universal in our borders. Party Should Have Full Poyver. A few words more, and I will conclude. Our Government is of the people. It is divided into co-ordinate branches. The judges of the United States courts, who hold office for life or during good behavior; the Executive; the Congress, which consists of two co-ordinate branches — the House and the Senate — great legis- 484 cannon's speech. lative bodies; they could not be otherwise, born as they are of 80,000,000 of people who are competent for self-government. (Applause.) In the Senate the tenure is for six years. The great popular body, near to the people, that reflects the sentiment of the people, is chosen every two years. Now, then, you know, under our form of government, the party in power is held responsible. The function of the minority is to put it on good behavior by being ever ready to appeal to the people. Let me tell you something. If our •government has a fault, it is, after an election one party is placed in power — only one leg. It may have the Senate. It may have the Presidency. It may have the House. It goes along on crutches. Yet you want to hold it responsible for public sentiment. If I had the power I would so change our constitution that at every quadrennial election the party that received the popular approval should go fully into power and let the public have a government according to the sentiment expressed at the ballot-box. (Applause.) But we have not got it arranged quite that way. What is the next best thing? You like Theodore Roosevelt? Yes. Stronger than his party, he will be triumphantly elected. Do you like the Senate of the United States? Yes. Its condition cannot be changed in November. It could be changed at the end of four years, electing a third every two years. You like the electoral colleges of the great political party, 386 strong, coming with the warrants of attorney from the people to cast their votes for your candidates, if you approve of them, if you approve of the Republican policies. You are short-sighted if you refuse a working majority in the House of Representatives, because you cannot keep a Republican House without it. I am done. I have already detained you longer than I expected. In conclusion, let me again say that we are proud of the president, we are proud of the future. The 20th century is to bring more of good or evil to the human race than the 19th century brought. Under what party banner will you enlist? Under that of the re-actionist? Under that of the people who sit still or tear down? Or will you take service with the party of Lincoln and Grant and Garfield and Harrison and McKinley and Roosevelt? (cheers and applause) and help us march on to victory. Speaking to the living in the presence of the dead, we have tears for them and admiration for the great things that they accomplished, but the glory of our race, of our civilization, is that each generation works out its own salvation and marches forward to success and the betterment of the condition of man- kind, and, as they drop into the grave, their successors move on to the stage of action, holding fast all that the past has given us and going in turn a generation's march further on for the benefit of the race and of civilization. (Applause.) So long as the Republican party Is In power the sold standard Is settled.— From President Roosevelt's speech of acceptance. The American people hold the financial honor of our Govern- ment as sacred as our flag, and can be relied upon to guard It with the same sleepless vigilance. — Maj. McKinley to the Notification Committee, 1896. So long as the Republican party is in power the gold standard Is settled, not as a matter of temporary political expediency, not because of shifting conditions in the production of gold in certain mining centers, but in accordance with what we regard as tbe fundamental principles of national morality and wisdom. — Presi- dent Roosevelt's speech accepting 1904 nomination. Above all» the administration of the government^ the enforce- ment of the laws, must be fair and honest. The laws are not to be administered either in the interest of the poor man or the in- terest of the rich man. They are simply to be administered justly —In the Interest of justice to each man, be he rich or be he poor — giving immnnity to no violator, -whatever form tbe violation may assume. Such Is the obligation which every public servant takes, and to it he must be true under penalty of forfeiting the respect both of himself and of his fellows. — President Roosevelt at Charles- ton, S. C, April 9, 1902. • PLATFOBM OF THE REPUBLICAN PABTY. 485 PLATFORM OF THE REPUBLICAN PARTY, 1904. Adopted by National Convention at Chicago June 22, 1904. Fifty years ago the Republican party came into existence dedicated among other purposes to the great task of arresting the extension of human slavery. In 1860 it elected its first Presi- dent. During 24 of the 44 years which have elapsed since the election of Lincoln the Republican party has held complete con- trol of the government. For 18 more of the 44 ^ears it has held partial control through the possession of one or two branches of the government, while the Democratic party uuring the same period has had complete control for only two years. This long tenure of power by the Republican party is not due to chance. It is a demonstration that the Republican party has commanded the confidence of the American people for nearly two generations to a degree never equaled in our history, and has displayed a high capacity for rule and government which has been made even more conspicuous by the incapacity and infirmity of purpose shown by its opponents. Conditions In 1807. The Republican party entered upon its present period of com- plete supremacy in 1897. We have every right to congratulate ourselves upon the work since then accomplished, for it has added luster even to the traditions of the party which carried the government through the, storms of civil war. We then found the country after four years of Democratic rule in evil plight, oppressed with misfortune and doubtful of the future. Public credit had been lowered, the revenues were declining, the debt was growing, the administration's attitude toward Spain was feeble and mortifying, the standard of values was threatened and uncertain, labor was unemployed, business was sunk in the depression which had succeeded the panic of 1893, hope was faint and confidence was gone. We met these unhappy conditions vigorously, effectively, and at once. The Tariff Law. We replaced a Democratic tariff law based on free trade prin- ciples and garnished with sectional protection by a consistent protective tariff, and industry, freed from oppression and stimu- lated by the encouragement of wise laws; has expanded to a degree never before known, has conquered new markets, and has created a volume of exports which has surpassed imagination. Under tbe Dingley tariff labor has been fully employed, wages have risen, and all industries have revived and prospered. We firmly established the gold standard which was then men- aced with destruction. Confidence returned to business, and with confidence an unexampled prosperity. Revenues. For deficient revenues, supplemented by improvident Issues of bonds, we gave the country an income which produced a large surplus and which enabled us only four years after the Spanish war had closed to remove over $100,000,000 of annual war taxes, reduce the public debt, and lower the interest charges of the government. The Public Credit Restored. The public credit, which had boon so lowered that in time of pence a Democratic administration made large loans at extrava- gant rates of interest in order to pay current expenditures, rose under Republican administration to its highest point and enabled us to borrow at 2 per cent even in time of war. Cuba. We refused to palter longer with the miseries of Cuba. We fought a quick and victorious war with Spain. We set Cuba free, governed the island for three years, and then gave it to the 486 PLATFORM OF THE REPUBLICAN PARTY. Cuban people with order restored, with ample revenues, with edu- cation and public health established, free from debt, and con- nected with the United States by wise provisions; for our mutual interests. Porto Rico* We have organized the government of Porto Rico„ and Its people now enjoy peace, freedom, order, and prosperity. The Philippines. In the Philippines we have suppressed insurrection, established order, and given to life and property a security never known there before. We have organized civil government, made it ef- fective and strong in administration, and have conferred upon the people of those islands the largest civil liberty they have ever enjoyed. By our possession of the Philippines we were enabled to take prompt and effective action in the relief of the legations at Peking and a decisive part In preventing the partition and preserving the integrity of China. The Isthmian Canal. The possession of a route for an isthmian canal, so long the dream of American statesmanship, is now an accomplished fact. The great work of connecting the Pacific and Atlantic by a canal is at last begun, and It is due to the Republican party. The Arid Lands. We have passed the laws which will bring the arid lands of the United States within the area of cultivation. The Army and Nary. We have reorganized the army and put it In the highest state of efficiency. We have passed laws for the improvement and support of the militia. We have pushed forward the building of the navy, the defense and protection of our honor and our interests. Our administration of the great departments of the govern- ment has been honest and efficient, and wherever wrongdoing has been discovered the Republican -administration has not hesitated to probe the evil and bring offenders to justice without regard to party or political ties. The Great Corporations. Laws enacted by the Republican party which the Democratic party failed to enforce and which were intended for the protection of the public against the unjust discrimination or the illegal en- croachment of vast aggregations of capital, have been fearlessly enforced by a Republican President and new laws insuring rea- sonable publicity as to the operations of great corporations, and providing additional remedies for the prevention of discrimina- tion in freight rates, have been passed by a Republican Congress. In this record of achievement during the past eight years may be read the pledges which the Republican party has fulfilled. We promise to continue these policies, and we declare our con- stant adherance to the following principles : Protection to American Industries. Protection which guards and develops our industries, is a cardinal policy of the Republican party. The measure of protec- tion 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 Re- publican party. To intrust it to the Democratic party is to invite disaster. Whether, as in 1892, the Democratic party declares the protective tariff unconstitutional, or whether it demands tariff reform or tariff revision, its real object is always the de- struction of the protective system. However specious the name the purpose is ever the same. A Democratic tariff has always been followed by business adversity ; a Republican tariff by busi- ness prosperity. To a Republican Congress and a Republican PLATFORM OF THE REPUBLICAN PARTY. 487 President this great question can be safely intrusted. When the only free trade country among the great nations agitates a re- turn to protection the chief protective country should not falter in maintaining it Foreign Markets Extended. We have extended widely our foreign markets, and we believe in the adoption of all practicable methods for their further ex- tension, including commercial reciprocity wherever reciprocal ar- rangements can be eifected consistent with the principles of pro- tection and without injury to American agriculture, American labor, or any American industry. The Gold Standard. We believe it to be the duty of the Republican party to uphold the gold standard and the integrity and value of our national currency. The maintenance of the gold standard, established by the Republican party, cannot safely be committed to the Demo- cratic party, which resisted its adoption and has never given any iproof since that time of belief in it or fidelity to it. American Shipping;. While every other industry has prospered under the fostering aid of Republican legislation, American shipping engaged in for^ eign trade in competition with the low cost of construction, low wages, and heavy subsidies of foreign governments, has not for many years received from the government of the United States adequate encouragement of any kind. We therefore favor leg- islation which will encourage and build up the American mer- chant marine, and we cordially approve the legislation of the last Congress which created the Merchant Marine Commission to in- vestigate and report upon this subject. A navy powerful enough to defend the United States against any attack, to uphold the Monroe doctrine, and watch over our commerce, is essential for the safety and the welfare of the American people. To maintain such a navy is the fixed policy of the Republican party. *" Chinese Labor. We cordially approve the attitude of President Roosevelt and Congress in regard to the exclusion of Chinese labor, and pBomise a continuance of the Republican policy in that direction. Civil Service. The civil-service law was placed on the statute books by the Republican party, which has always sustained it, and we renew ©ur former declarations that it shall be thoroughly and honestly ^enforced. The Soldiers and Sailors. We are always mindful of the country's debt to the soldiers and sailors of the United States, and we believe in making ample provision for them and in the liberal administration of the pen- sion laws. Arbitration. We favor the peaceful settlement of international differences hy Arbitration. Protection of 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 citizens abroad. It is the unquestioned duty of the government to procure for all our citizens, without distinction, the rights of travel and sojourn in friendly countries, and we declare ourselves in favor of all proper efforts tending to that end. The Orient. Our great interests and our growing commerce in the Orient render the condition of China of high importance to the United States. We, cordially commend the policy pursued in that direc- tion by the administrations of President McKinley and Presi- dent Roosevelt. The Elective Franchise. We favor such Congressional action as shall determine whether by special discriminations the elective franchise in any State has 488 PLATFORM OF THE REPUBLICAN PARTY. been unconstitutionally limited, and\ if such Is the case, we de- maud that representation In Congress and in the electoral col- leges shall be proportionally reduced as directed by the Consti- tution of the United States. Combinations of Capital and of Labor. I Combinations of capital and of labor are the results of the economic movement of the age, but neither must be permitted to infringe upon the rights and interests of the people. Such com- binations, when lawfully formed for lawful purposes, are alike entitled to the protection of the laws, but both are subject to the laws and neither can be permitted to break them. Our Lamented President. The great statesman and patriotic American, William Mc- Kinley, who was re-elected by the Republican party to tbc Presi- dency four years ago, was assassinated just at the threshold of his second term. The entire nation mourned his untimely death and did that justice to his great qualities of mind and character which history will confirm and repeat. President Roosevelt. The American people were fortunate in his successor, to whom they turned with a trust and confidence which have been fully justified. President Roosevelt brought to the great responsibilities thus sadly forced upon him a clear head, a brave heart, an earnest patriotism, and high ideals of public duty and public ser- vice. True to the principles of the Republican party and to the policies which that party had declared, he has also shown him- self ready for every emergency and has met new and vital ques- tions with ability and with success. The confidence of the people in his justice, inspired by his public career, enabled him to render personally an inestimable service to the country by bringing about a settlement of the coal strike, which threatened such disastrous results at the opening of winter in 1902. Our foreign policy under his adminstration has not only been able, vigorous, and dignified, but in the highest degree successful. The complicated questions which arose in Venezuela were settled in such a way by President Roosevelt that the Monroe doctrine was signally vindicated and the cause of peace and ar- bitration greatly advanced. His prompt and vigorous action in Panama, which we commend in the highest terms, not only secured to us the canal route, but avoided foreign complications which might have been of a very serious character. He has continued the policy of President McKinley in the Orient, and our position in China, signalized by our recent com- mercial treaty with that empire, has never been so high. He secured the tribunal by which the vexed and perilous question of the Alaskan boundary was finally settled. Whenever crimes against humanity have been perpetrated which have shocked our people, his protest has been made, and our good offices have been tendered, but always with due regard to international obligations. Under his guidance we find ourselves at peace with all the world, and never were we more respected or our wishes more re- garded by foreign nations. Pre-eminently successful in regard to our foreign relations, he has been equally fortunate in dealing with domestic questions. The country has known that the public credit and the national currency were absolutely safe in the hands of his administration. In the enforcement of the laws he has shown not only courage, but the wisdom which understands that to permit laws to be violated or disregarded opens the door to anarchy, while the just enforcement of the law is the soundest conservatism. He has held firmly to the fundamental American doctrine that all men must, obey the law; that there must be no distinction between rich and poor, between strong and weak, but that justice and equal protection under the law must be secured to every citizen without regard to race, creed, or condition. His administration has been throughout vigorous and honor- able, high-minded and patriotic. . We commend it without reser-. vation to the considerate judgment of the American people. PLATFORM OF THE DEMOCRATIC PARTY. 489 PLATFORM OF THE DEMOCRATIC PARTY 1904. The Democratic party of the United States, in national conven- tion assembled, declares its devotion to the essential principles of the Democratic faith which bring us together in party com- munion. Under these principles, local self-government and national unity and prosperity were alike established. They underlaid our inde- pendence, the structure of our free republic, and every Democratic expansion from Louisiana to California, and Texas to Oregon, which preserved faithfully in all the States the tie between taxa- tion and representation. They yet inspirit the masses of our peo- ple, guarding jealously their rights and liberties, and cherishing their fraternity, peace, and orderly development. They remind us of our duties and responsibilities as citizens, and impress upon us, particularly at this time, the necessity of reform and the res- cue of the administration of government from the headstrong, arbitrary, and spasmodic methods which distract business by un- certainty, and pervade the public mind with dread, distrust, and perturbation. Fundamental Principles. The application of these fundamental principles to the living issues of the day constitutes the first step toward the assured peace, safety, and progress of our nation. Freedom of the press, of con- science, and of speech ; equality before the law of all citizens ; right of trial by jury ; freedom of the person defended by the writ of habeas corpus ; liberty of personal contract untrammeled by sumpt- uary laws ; supremacy of the civil over military authority ; a well disciplined militia ; the separation of church and state ; economy in expenditures ; low taxes, that labor may be lightly burdened ; prompt and sacred fulfillment of public and private obligations; fidelity to treaties; peace and friendship with all nations; en- tangling alliances with none; absolute acquiescence in the will of the majority, the vital principle of republics— these are doctrines which Democracy has established as proverbs of the nation, and they should.be constantly invoked and enforced. Economy of Administration. Large reductions can easily be made in the annual expendi- tures of the government without impairing the efficiency of any branch of the public service, and we shall insist upon the strictest economy and frugality compatible with vigorous and efficient civil, military, and naval administration as a right of the people too clear to be denied or withheld. Honesty in the Public Service. We favor the enforcement of honesty in the public service, and to that end a thorough legislative investigation of those executive departments of the government already known to teem with corruption, as well as other departments suspected of har- boring corruption, and the punishment of ascertained corruption- ists without fear or favor or regard to persons. The persistent and deliberate refusal of both the Senate and House of Repre- sentatives to permit such investigation to be made demonstrates that only by a change in the executive and in the legislative de- partments can complete exposure, punishment, and correction be obtained. Federal Government Contract with Trusts. We condemn the action of the Republican party in Congress in refusing to prohibit an executive department from entering into contracts with convicted trusts or unlawful combinations in re- straint of interstate trade. We believe that one of the best methods of procuring economy and honesty in the public service is to have public officials, from the occupant of the White House down to the lowest of them, returned as nearly as may be, to Jeffersonian simplicity of living. Executive Usurpation. We favor the nomination and election of a President im- bued with the principles of the Constitution who will set his 490 PLATINUM or i in: m:mocuatic pakty. face sternly against Executive usurpation of legislative and judi- cial functions, whether thai usurpation be veiled under the guise of Executive construction of existing taws, <>r whether it take refuge in the tyrant's picas of necessity, or superior wisdom. Imperialism. Wo favor the preservation, so far as we can, of an open door lor the world's commerce in the Orient, without an unnecessary entanglement in Oriental and European affairs and without arbi- trary, unlimited, irresponsible, and absolute government any- where within our jurisdiction. We oppose, as fervently as did George Washington, an indefinite) Irresponsible, discretionary and vague ahsolutisin and a policy of colonial exploitation, no matter where or by whom invoked or exercised; we believe with Thomas .Jefferson and John Adams, that no government has a right to make one set of laws for those "at home," and another and a different set of laws, absolute in their character, for those "ill the colonies." All men under the American flag are entitled tu the protection of the institutions whose emblem the flag is; if they arc inherently unfit for those institutions then they are in- herently unfit to be members Of the American body politic. Wherever there may exist a people incapable of being governed under American laws, in consonance with the American consti- tution, the territory of that people ought not to be part of the American domain. We insist that we ought to do for the Filipinos what we have done already for the 'Cubans, and^it is our duty to make that promise now and upon suitable guarantees of protection to citi- zens of our own and other countries resident there at the time of our withdrawal, set the Filipino people upon their feet, free and independent to work out their own destiny. The endeavor of the Secretary of War, by pledging the govern- ment's indorsement for "promoters" in the Philippine Islands to make the United States a partner in the speculative exploitation of the archipelago, which was only temporarily held up by the Opposition of the Democratic Senators in the last session, will, if successful, lead to entanglements from which it will be difficult to escape. Tariff. The 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 Congressional favor, to draw a heavy tribute from the American people. This mon- strous 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 greatest combinations of capital that the world has ever known. These especial favor- ites of the government have, through trust methods, been con- verted into monopolies, thus bringing to an end domestic com- petition, 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 con- trol the policy of the Republican party. We denounce protectionism as a robbery of the many to enrich the few, and" we favor a tariff limited to the needs of the govern- ment, economically, effectively, and constitutionally administered, and so levied as not to discriminate Against any industry, class, or section, to the end that the burdens of taxation shall be dis- tributed as equally as possible. We favor a revision and a gradual reduction of the tariff by the friends of the masses and for the common weal, and not by the friends of its abuses, its extortions, and its discriminations, keeping in view the ultimate end of "equality of burdens and equality of opportunities" and the constitutional purpose of raising a revenue by taxation, to-wit, the support of the Federal govern- ment in all its integrity and virility, but in simplicity. Trusts and Unlawful Combinations. We recognize that the gigantic trusts and combinations de- signed to enable capital to secure more than its just share of the joint products of capital and labor, and which have been fostered and promoted under Republican rule, are a menace to beneficial competition and an obstacle to permanent business prosperity. A private monopoly is indefensible and intolerable. PLATFORM OF THE DEMOCRATIC PARTY. 491 Individual equality of opportunity and free competition are essential to a healthy "and permanent commercial prosperity and any trust, combination, or monopoly tending to destroy these by controlling production, restricting competition, or fixing prices and wages should be prohibited and punished by law. We especially denounce rebates and discrimination by transportation companies as the most potent agency in promoting and strengthening these unlawful conspiracies against trade. We demand an enlargement of the powers of the Interstate Commerce Commission, to the end that the traveling public and shippers of this country may have prompt and adequate relief from the abuses to which they are subjected in the matter of transportation. We demand a strict enforcement of existing civil and criminal statutes against all such trusts, combinations, and monopolies ; and we demand the enactment of such further legis- lation as may be necessary to effectually suppress them. Any trust or unlawful combination engaged in interstate com- merce which is monopolizing any branch of business or produc- tion should not be permitted to transact business outside of the State of its origin. Whenever it shall be established in any court of competent jurisdiction that such monopolization exists, such prohibition should be enforced through comprehensive laws to be enacted on the subject. Capital and Labor. We favor enactment and administration of laws giving labor and capital impartially their just rights. Capital and labor ought not to be enemies. Each is necessary to the other. Each h$~ its rights, but the rights of labor are certainly no less "vested," no less "sacred," and no less "inalienable" than the rights of capital. W T e favor arbitration of differences between corporate em- ployers and their employees, and a strict enforcement of the eight- hour law on all government work. We approve the measure, which passed the United States Sen- ate in 189C), but which a Republican Congress has ever since re- fused to enact, relating to contempts in Federal courts, and pro- viding for trial by jury in cases of indirect contempt. Constitutional Guaranties. Constitutional guaranties are violated whenever any citizen is denied the right to labor, acquire and enjoy property, or reside where interests or inclination may determine. Any denial thereof by individuals, organizations, or governments should be summarily rebuked and punished. We deny the right of any Executive to disregard or suspend any constitutional privilege or limitation. Obedience to the laws and respect for their requirements are alike the supreme duty of the citiezn and the official. The military should be used only to support and maintain the law. We unqualifiedly condemn its employment for the sum- mary banishment of citizens without trial at or for the control of elections. Waterways. We favor liberal appropriations for the care and improvement of the waterways of the country. When any waterway, like the Mississippi River, is of sufficient importance to demand special aid of the government, such aid should be extended with a defi- nite plan of continuous work until permanent improvement is secured. We oppose the Republican policy of starving home develop- ment in order to feed the greed for conquest and the appetite for national "prestige" and display of strength. Reclamation of Arid Lands and Domestic Development. We congratulate our Western citizens upon the passing of the measure known as the new lands irrigation act for the irrigation and reclamation of the arid lands of the West ; a measure framed by a Democrat, passed in the Senate by a non-partisan vote, and passed in the House against the opposition of almost nil the Re- publican leaders by a vote the majority of which was Demo- cratic. We call attention to this great Democratic measure, broad and comprehensive as it is, working automatically throughout all time without further action 6f Congress, Until the reclama- tion of all the lands in the arid West capable of reclamation 493 PLATFORM OF THE DEMOCRATIC PABTT. is accomplished, reserving the lands reclaimed for homeseekers in small tracts, and rigidly guarding agahist land monopoly, as an evidence of the policy of domestic development contemplated by the Democratic party, should it be placed in power. Isthmian Canal. The Democracy, when intrusted with power, will construct the Panama Canal speedily, honestly, and economically, thereby giving to our people what Democrats have, always contended for — a ' great inter-oceanic canal, furnishing shorter and cheaper lines of transportation, and broader and less trammeled trade relations with the other peoples of the world. American Citizenship. We pledge ourselves to insist upon the just and lawful pro- tection of our citizens at home and abroad, and to use all proper measures to secure for them, whether native born or naturalized, and without distinction of race or creed, the equal protection of laws and the enjoyment of all rights and privileges open to them under the covenants of our treaties of friendship and commerce; and if under existing treaties the right of travel and sojourn is denied to American citizens or recognition is with- held from American passports by any countries on the ground of race or creed, we favor the beginning of negotiations with the government of such countries to secure by new treaties the re- moval of these unjust discriminations. We demand that all over the world a duly authenticated pass- port issued by the goveacment of the United States to an Ameri- can citizen shall be proof of the fact that he is an American citizen and shall entitle him to the treatment due him as such. Election of Senators by the People. < a We favor the election of United States Senators by the direct vote of the people. Statehood for Territories. We favor the admission of the Territories of Oklahoma and Indian Territory. We also fayor the immediate admission of Arizona and New Mexico as separate States and a Territorial government for Alaska and Porto Rico. We hold that the officials appointed to administer the govern- ment of any Territory, as well as with the district of Alaska, should be bona fide residents at the time of their appointment of the Territory or district in which their duties are to be performed. Condemnation of Polygamy. We demand the extermination of polygamy within the juris- diction of the United States and the complete separation of church and state in political affairs. Merchant Marine. We denounce the ship subsidy bill recently passed by the United States Senate as an iniquitous appropriation of public funds for private purposes, and a wasteful, illogical, and useless attempt to overcome by subsidy the obstructions raised by Re- publican legislation to the growth and development of American commerce on the sea. We favor the upbuilding of a merchant marine without new or additional burdens upon the people and without bounties from the public Treasury. Reciprocity. We favor liberal trade arrangements with Canada and with peoples of other countries where they can be entered into with benefit to American agriculture, manufactures, mining, or com- merce. Monroe Doctrine. We favor the maintenance of the Monroe doctrine in its full integrity. Army. We favor the reduction of the army and of army expenditures to the point historically demonstrated to be safe and sufficient. Pensions for Our Soldiers and Sailors. The Democracy would secure to the surviving soldiers and sailors and their dependents generous pensions, not by an arbi- trary Executive order, but by legislation, which a grateful people stand ready to enact. PLATFOBM OF THE DEMOCRATIC PARTY. 493 Our soldiers and sailors who defend with their lives the Con- stitution and the laws have a sacred interest in their just adminis- tration. They must, therefore, share with us the humiliation with which we have witnessed the exaltation of court favorities, without distinguished service, over the scarred heroes of many battles ; or aggrandizement by Executive appropriations out of the treasuries of prostrate peoples in violation of the act of Congress which fixed the compensation of allowances of the military officers. Civil Service. The Democratic party stands committed to the principle of civil service reform, and we demand its honest, just, and impartial enforcement. We denounce the Republican party for its continuous and sinister encroachments upon the spirit and operation of civil- service rules, whereby it has arbitrarily dispensed with examina- tions for office in the interests of favorites and employed all man- ner of devices to overreach and set aside the principles upon which the civil service was based. Sectional and Race Agitation. The race question has brought countless woes to this country. The calm wisdom of the American people should see to it that it brings no more. To revive the dead and hateful race and sectional animosities in any part of our common country means confusion, distraction of business, and the reopening of wounds now. happily healed. North, South, East, and West have but recently stood together in line of battle from the walls of Peking to the hills of Santiago, and as sharers of a common glory and a common destiny we should share fraternally the common burdens. We therefore deprecate and condemn the Bourbon-like, selfish, and narrow spirit of the recent Republican convention at Chicago, which sought to kindle* anew the embers of racial and sectional strife, and we appeal from it to the sober, common sense and patriotic spirit of the American people. The Republican Administration. The existing Republican administration has been spasmodic, erratic, sensational, spectacular, and arbitrary. It has made itself a satire upon the Congress, courts, and upon the settled practices and usages of national and international law. It summoned the Congress in hasty and futile extra session, and virtually adjourned it, leaving behind its flight from Wash- ington uncalled calendars and unaccomplished tasks. It made war, which is the sole power of Congress, without its authority, thereby usurping one of its fundamental preroga- tives. It violated a plain statute of the United States as well as plain treaty obligations, international usages and constitutional law ; and has, done so under pretense of executing a great public policy which could have been more easily effected lawfully, con- stitutionally, and with honor. — - It forced strained and unnatural constructions upon statutes, usurping judicial interpretation, and substituting for Congressional enactment Executive decree. It withdrew from the Congress its customary duties of investi- gation, which have heretofore made the representatives of the people and the States the terror of evil doers. It conducted a secretive investigation of its own, and boast- ing of a few sample convicts, it threw a broad coverlet over the bureaus which had been then* chosen field of operative abuses and kept in power the superior officers under whose administra- tion the crimes had been committed. It ordered assault upon some monopolies, but, paralyzed by its first victory, it flung out the flag of truce and cried out that it would not "run amuck" — leaving its future purposes beclouded by its vacillations. Appeal to the People. Conducting the campaign upon this declaration of our prin- ciples and purposes", we invoke for our candidates the support not only of our great and time-honored organization, but also the active assistance of all of our fellow-citizens, who, disregarding past differences, desire the perpetuation of our constitutional gov- ernment, as framed and established by the fathers of the Republic. 494 PLATFORM OK Till* PKOPLliS' PARTY, PLATFORH OF THE PEOPLE'S PARTY rial form of the People's Party 11)01, Adopted In National Conven- tion at Springfield, HI., July 4, 1001. [Republished from Lincoln (Neb.) Independent.] The People's party reaffirms its adherence to the basic truths of the Omaha platform of 1892, and of the subsequent platforms of 18P<; and 1900. In session in its fourth national convention on July 4. 1904, in the city of Springfield, 111., it draws inspiration from the day that saw the birth of the nation, as well as its own birth as a party, and also from the soul of him who lived at its present place of meeting. We renew our allegiance to the old-fashioned American spirit that gave .this nation existence, and made it distinctive among the peoples of the earth. We again sound the keynote of the Declaration of Independence, that all men are created equal in a political sense, which is the sense in which that instrument, be- ing a political document, intended that the utterance should be understood. We assert that the departure from this fundamental truth is responsible for the ills from which we suffer as a nation; that the giving of special privileges to the few has enabled them to dominate the many, thereby tending to destroy the political equality which is the corner stone of democratic government. We call for a return to the truths of the fathers, and we vig- orously protest against the spirit of mammonism and of thinly- veiled monarchy, that Is invading certain sections of our national life, and of the very administration itself. This is a nation of peace, and we deplore the appeal to the spirit of force and mili- tarism which is shown in ill-advised and vainglorious boasting and, in more harmful ways, in the denial of the rights of man under martial law. A politic? 1 '. democracy and an industrial despotism cannot exist side by side ; and nowhere is this truth more plainly shown than in the gigantic monopolies which have bred all sorts of kindred trusts, subverted the governments of many of the States, and established their official agents In the national government. We submit that it is better for the government to own the rail- roads than for the railroads to own the government ; and that one or the other alternative seems inevitable. We call the attention of our fellow citizens to the fact that the surrender of both of the old parties to corporate influences leaves the People's party the only party of reform in the nation. Therefore, w£ submit the following platform of principles to the American people : The issuing of money is a function of government, and should never be delegated to corporations or individuals. The constitu- tion gives to Congress alone power to coin money and regulate its value. We demand, therefore, that all money shall be issued by the Government in such quantity as shall maintain stability in prices, every dollar to be a full legal •ender, none of which shall be a debt redeemable in other money. We demand that postal savi.igs banks be established by the Government for the safe deposit of the savings of the people. We believe in the right of labor to organize for the benefit and protection of those who toil : and pledge the efforts of the People's party to preserve this right inviolate. Capital is organ- ized and has no right to deny to labor the privilege which it claims for itself. We feel that intelligent organization of labor is essential ; that it raises the standard of workmanship, and pro- motes the efficiency, intelligence, independence and character of the wage-earner. We oelieve with! Abraham Lincoln that labor is prior to capital, and is not its slave, but its companion : and we plead for that broad spirit of toleration and justice which will PLATFORM OF THE PEOPLE'S PARTY. 495 promote industrial peace through the observance of the principles of voluntary arbitration. We favor the enactment of legislation looking to the improve- ment of conditions for wage-earners, the abolition of child labor, the suppression of sweat shops and of convict labor, in competi- tion with free labor, and the exclusion from American shores of foreign pauper labor. We favor the shorter work day, and declare that if eight hours constitutes a day's labor in government service, that eight hours should constitute a day's labor in factories, work shops, and mines. As a means of placing all public questions directly under the control of the people, we demand that legal provision be made under which the people may exercise the initiative, referendum and proportional representation, and direct vote for all public officers, with the right of recall. Land, including all the natural sources of wealth, is a heri- tage of all the people, and should not be monopolized for specu- ! lative purposes; and alien ownership of land should be pro- . hibited. We demand a return to the original interpretation of the con- stitution and a fair and impartial enforcement of laws under it ; and denounce government by injunction and imprisonment with- out the right of trial by jury. To prevent unjust discrimination and monopoly, the Govern- ment should own and control the railroads ; and those public utilities, which in their nature are monopolies. To perfect the postal service, the Government should own and operate the gen- eral telegraph and telephone systems, and provide a parcels post. As to those trusts and monopolies which are not public utili- ties or natural monopolies, we demand that those special privi- leges which they now enjoy, and which alone enable them to exist, should be immediately withdrawn. Corporations being the creatures of government should be subjected to such govern- mental regulations and control as will adequately protect the public. We demand the taxation of monopoly privileges, while they remain in private hand^, to the extent of the value of the privileges granted. We demand that Congress shall enact a general law uni- formly regulating the power and duties of all incorporated com- panies* doing interstate business. Changes in tariff schedules can with safety be made only by those whose devotion to the principle of protection is beyond question. — From President Roosevelt's speech of acceptance. The poorest motto upon which an American can act is the motto of "Some men down" and the safest to follow is that of "All men up." — Vice-President Roosevelt at opening of Pan-American Exposition, May 20, 1901. Protection furnishes an opportunity for every person to find the employment best adapted to his or her genius and capacity that will secure the largest income or the greatest happiness.-— Hon. J. S. Morrill, in the American Economist. We are no more against organizations of capital than against organizations of labor. We welcome both, demanding only that each shall do right and shall remember its duty to the Republic.— President Roosevelt at Milwaukee, Wis., April 3, 1003. We do not have to avoid a definite and conclusive committal on the most important issues which has recently been before the people, and which may at any time in the near future be before them again. — President Roosevelt's speech accepting 1004 nomi- nation. Reciprocity must be treated as the handmaiden of protection. Our first duty Is to see that the protection granted by the tariff in every case where It is needed is maintained, and that reciprocity be sought for so far as it can safely be done withont injury to our home industries.— President Roosevelt's Annual Message, Fifty- seventh Congress, first session. 496 THE DEMOCRATIC PLATFORM AND CANDIDATE. The Democratic Platform and Candidate. An Analysis of the Platform— The St. Louls-Esopus Episode— The Rejected Oold Plank— The Silver Planks, which remain the Party's Latest Expression on the Money Question— Judge Parker's Utterances and Record on the Cur- rency Issue — Record of the Democratic Party on the Currency Question— The Vote on the Gold Standard Act of 1900. A Discussion, of the Democratic Platform of 1004. The very remarkable performance of the Democratic National Convention respecting its platform consisted of a drama of four acts. All four must be considered to measure its character and import. Ii might be called a tragedy, so serious and deadly were some if its developments ; it might be called a comedy, so humorous were some of its phases ; it might be called a melo- drama, so spectacular and emotional were some of its touches. WEAK GOLD PLANK REJECTED BY COMMITTEE. The first act was that of the subcommittee of the Committee on Resolutions; the second was that of the full committee, ap- proved by the convention; the third was that of Judge Parker, the candidate for President ; the fourth was that of the convention* in response to him. Only by reviewing all four in their proper relations and meaning can the true spirit of the platform and the party behind it be justly understood. When the Committee on Resolutions, consisting of one member from each State and Terri- tory, entered on its duty of making the platform a subcom- mittee was appointed to do the actual work of framing it. This subcommittee included ex-Senator David B. Hill of New York, John Sharp Williams of Mississippi, William J. Bryan of Nebraska, Senator Daniel of Virginia, and ex-Senator Henry G. Davis of West Virginia, who was afterwards nominated for Vice- President. After a long discussion, in the absence of Mr. Bryan who was otherwise engaged, it adopted the following plank on the gold standard, which had been presented by Mr. Williams : "The discoveries of gold within the past few years and the great increase in the production thereof, adding two thousand million dollars to the world's supply, of which seven hundred mil- lion falls to the share of the United States has contributed to the maintenance of a money standard of value, no longer open to question, removing that issue from the field of political conten- tion." This plank only recognized the existing standard as "no longer open to question." The Democratic platforms of 1896 and 1900 had declared for the free and unlimited coinage of silver at 16 to 1, which would have made the silver standard. The Williams plank did not directly repudiate this declaration, but only acknowl- edged the gold standard as established by events and bowed to it. Even this moderate concession was too much for the full com- mittee. That committee met on the evening of July 7 to receive the draft prepared by the subcommittee, and was in session all night to consider it. Note the composition of this full committee. It included Senator Daniel of Virginia, Senator Bailey of Texas, Senator Tillman of South Carolina, Senator Carmack of Tennes- see, Senator Foster of Louisiana, Senator Dubois of Idaho, and Senator Newlands of Nevada. Besides these seven present mem- bers of the United States Senate it contained four ex-Senators and leading men from every State. It was a conspicuously repre- sentative committee which fairly reflected the Democratic party v of the country. This committee had a protracted debate on the money ques- tion, one side standing for the moderate Williams plank and the other standing against any declaration whatever. Finally about 5 o'clock on the morning of July 8 it struck out the Williams plank by the decisive vote of 35 to 15. Thus the free-silver planks, of 1896 and 1900 were left as the last authoritative expression of the party without any counter or modifying declaration. THE DEMOCRATIC PLATFOBM AND CANDIDATE. 497 SIGNIFICANCE OP VOTE IN COMMITTEE. Thus, after full deliberation and discussion, was the decision of the committee, which not only represented the party but showed in its composition that it could mould and shape the party's action. The division of the vote was significant. In the present House of Representatives the Democrats have 176 mem- bers. The 15 votes for the Williams plank represented States which have only Jfi of those members. Throwing out New York they have only 30. Five of them have no Democratic member at all. On the other hand, the 35 votes against the Williams plank and against any money declaration represented States which have 129 of the 170 Democratic members of the House. In other words, the 35 votes against 'recognizing the gold standard not only re- flected the committee and the convention by more than two to one, BUT REPRESENTED THE VOTING STRENGTH OF THE PARTY IN THE HALL OF LEGISLATION IN THE PROPOR- TION OF NEARLY THREE TO ONE. CONVENTION APPBOVES. The platform thus prepared by the Committee on Resolutions was reported to the convention on the early evening of July 8 and immediately adopted by a unanimous vote. JUDGE PABKEB'S HALTING PBOTEST. The convention proceeded at once to make a nomination for President, and Judge Parker was nominated about 2 o'clock on the morning of the 9th. The action of the Committee on Resolutions in striking out the gold standard plank was known throughout the country on the forenoon of the 8th. The even- ing New York papers of that date and the morning New York Democratic papers of the 9th all treated that action as abso- lutely fatal to any chance of Democratic success. Then at 11 o'clock on the 9th — about 30 hours after the commHtee had taken the fatal step, about 18 hours after the convention had ratified it, about 9 hours after he had been nominated — Judge Parker sent the following telegram to the convention, addressed to his friend, William F. Sheehan: "I regard the gold standard as firmly and irrevocably estab- lished, and shall act accordingly if the action of the convention to-day shall be ratified by the people. As the platform is silent on the subject, my view should be made known to the convention, and if it is proved to be unsatisfactory to the majority I request you to decline the nomination for me at once, so that another may be nominated before adjournment." This telegram must be considered in the light of the antecedent and surrounding facts. Judge Parker voted for Bryan both times he was a candidate, in 1890 and in 1900. He had thus done all within his power as a citizen to establish the silver standard. But this is not all. The New York State Democratic Convention which formally presented him as a Presidential candidate was held in April. Its platform was understood to be the platform, prepared under his own eye, on which he desired to stand as a candidate and on which his candidacy was to be pressed. That platform was absolutely silent on the money question, like the national platform. For three months, while he was being advo- cated on this silent platform, Judge Parker saw no occasion for saying, "As the platform is silent on the question my view should be made known ;" and it was only after he had been finally nomi- nated, after even the Democratic papers within his reach had publicly declared that the deliberate exclusion of the money plank at St. Louis was suicide, and after it was too late to change the nomination without utter demoralization that the telegram was sent. Even as it was, the telegram, with the remembrance of all these facts, naturally produced great confusion. After several hours' delay and conference it was presented to the convention, and after a further stormy discussion that body sent the following answer : The subcommittee had inserted the money plank because it was deemed necessary to make an expression on the subject, and the full committee had fought for many hours on the question. How this is to be reconciled with the statement that the platform is silent because the question ia not in issue may be left to the 498 THE DEMOCRATIC PLATFORM AND CANDIDATE. Imagination. The facts thus set forth show plainly the spirit and feeling of the large majority of the i onvention and indicate clearly whither the Democratic party can be trusted on the money standard. THE TARIFF DECLARATION. On other questions besides that of the money standard the action of the Committee on Resolutions shows dangerous tenden- cies and the platform is full of peril. This is especially true of the tariff. The subcommittee had sought to allay apprehension of violent disturbance in the event of Democratic success. Its draft declared in favor of a revision of the tariff, but indicated that it should be a "conservative revision," "keeping also in view, as men of common sense should, existing conditions, however wrongfully, mistakenly, or unjustly brought about, and the danger to the cause of tariff reform itself of abrupt and revolutionary reversal of policy." This saving clause, designed to reassure the business interests against fear of sweeping changes, was repeated in the further declaration in the same connection: "We should bear in mind the equal truth that in the assertion of any general principle and in reaching any ultimate end, however sacred and logically unavoidable, due regard, but only due regard, must and should be paid to actually existing conditions." - These reservations respecting the character of the tariff re- vision were embodied in the draft of the subcommittee with the plain purpose of winning the confidence of the business elements. But when they were reported to the full committee that body deliberately struck out all of these saving clauses, and not only that, but it adopted the most extreme and unqualified denuncia- tion of the whole protective principle. That declaration, as re- ported to and accepted by the convention and as it now stands in the platform, is in these words : "We denounce protection as a robbery of tho many to enrich the few, and we favor a tariff limited to the needs of the Government economically admin- istered." No more radical utterance could be made. The denunciation is directed not merely against a particular tariff or schedule in which it might be claimed there were wrongs, but against the whole idea and purpose of protection. It condemns any and all protection and insists that the tariff should be framed solely for revenue without any protective effect. There is no reservation or qualification. All protection is assailed as "robbery." The policy under which the greatness and prosperity of the Republic have been created is stigmatized as "robbery of the many to enrich the few." The declaration commits the Democratic party to the overthrow of the whole protective system, and, in the event of Democratic success, means just such a destruction of confidence and paralysis of industry and stagnation of business as followed the election of Cleveland in 1892. TO DESTROY POWER OF THE COURTS. The dangerous spirit of the Committee on Resolutions em- bodied in the platform was shown in another matter. One of the most reprehensible and obnoxious declarations of the Democratic platforms of 1896 and 1900 was the denunciation of what was called "government by injunction." The time-honored right of the courts to guard against and prevent the perpetration of wrongs by the process of injunction or mandamus is one of the sacred defenses of liberty and social order. The power to punish for contempt is the indispensable accompaniment and bulwark of this right. The Democratic platforms of 1896 and 1900, under Mr. Bryan's influence, condemned such judicial process and added; "We approve the bill passed at the last session of the United States Senate, and now pending in the House, relative to con- tempts in Federal courts and providing for trial by jury in certain cases of contempt." The subcommittee at St. Louis did not include in its draft any declaration on this subject. But the full committee under Mr. Bryan's inspiration adopted, and there appears in the platform, what is practically a repetition of the odious utterance of 1896 and 1900 in these words: "We approve the measure which passed the United States Senate in 1896, but which a Republican Congress has ever since refused to enact, relating to contempts THE DEMOCEATIC PLATFORM AND CANDIDATE. 499 In Federal courts and providing for trial by jury in cases of indi- rect contempt." The measure thus approved would nullify, and is intended to nullify, the power of the courts to punish for con- tempt and so would destroy its power to protect the public peace by judicial process. The renewed declaration for it shows that the virus of Bryanism still thoroughly taints the party. THE PHILIPPINES. Among the most positive utterances of the platform is the promise of independence to the people of the Philippine Islands. "It is our duty," says the platform, "to make that promise now, and upon suitable guarantees of protection to citizens of our own and other countries resident there at the time of our withdrawal set the Filipino people upon their feet, free and independent to work out their own destiny." The unfortunate and mischievous effect of such a promise at this time cannot be fully estimated. Whatever may be our ultimate purpose, such an expression just now can only have an injurious influence. The administrations of Presidents McKinley and Roosevelt have given the Filipinos the largest measure of freedom and home rule compatible with their safety and welfare. The work of educating and training them for self-government is going on. Their self-rule has been steadily extended as they were fitted for it. Every observer knows that these millions of ignorant people only recently emerged from centuries of barbarism, are not yet prepared for independ- ence, and that to "set them upon their feet free and independent to work out their own destiny, would be to plunge them into in- ternecine war, to deliver them over to every kind of internal strife, and to make them the prey of some other power, which would eagerly seize what we should abandon. Whatever may be deemed best when the preparation and advancement of these peo- ple have been carried further, a present and premature promise can only be hurtful to themselves. Besides, such a policy would be disastrous to our national prestige and influence in the East. Our country has gained great eclat in the Orient and high stand- ing among the great nations in determining the affairs of that portion of the world. It took a leading part in the Boxer diffi- culties of 1900 and prevented the dismemberment of China. It has secured the principle of "the open door" in the East. It led the nations at the outbreak of the Russo-Japanese war in obtain- ing a guarantee of the neutrality of China and in localizing the war to the immediate belligerents. Through this new position in the East we have the assurance of great commercial advantages. All this has come through our possession of the Philippines, which made the United States an eastern power. If now there were Democratic success with this promise it would impair our stand- ing beyond calculation. The nations would feel that the American people were of infirm and unstable purpose. They would regard it as unsettling our whole policy in the East, and the loss of influ- ence, respect, and advantage would be immeasurable. EVASION OF THE TRUST QUESTION. The declaration of the platform respecting trusts and combina- tions is naturally of an indefinite character. As the Democratic party has never done anything against trusts either in legislation or in administration, it could not be expected to say anything of a specific nature. All that has been done on the subject by either the enactment or the enforcement of law has been done by Re- publicans. This is clearly shown in other chapters of this volume. The only definite proposition of the Democratic platform is a de- mand for "the enlargement of the powers of the Interstate Com- merce Commission to the end that the traveling public and ship- pers of this country may have prompt and adequate relief from the abuses to which they are subjected in the matter of transpor- tation." Just such a measure, enlarging the powers of the Inter- state Commerce Commission, was passed by a Republican Con- gress and approved by the President February 19, 1903. It strengthens the provision against rebates, increases the penalty, assures swifter prosecution, and establishes more complete safe- guards. The record shows that the Republicans have acted while the Democrats have only talked. The remainder of the platform consists only of empty ex- pressions. It favors the upbuilding of a merchant marine, -but 500 THE DEMOCRATIC PLATFOBM AND CANDIDATE. • denounces every measure for accomplishing It. It deprecates the race question, but condemns any proceeding against the disfran- chisement of a race. It holds up the promise of pensions to the oar, but breaks it to the hope of any practical step. In all its leading features the platform shows that the Democratic party is unchanged. ST. LOUIS- ESOPUS EPISODE. EVASION OF LEADING ISSUES BY PLATFORM, CONVENTION, AND CANDIDATE. In order that the real meaning of the joint performance at St. Louis with reference to the relation of the Democratic party and its candidate to the currency question may be understood, the incidents pertaining thereto are here enumerated in their chronological order. That it was the deliberate purpose to deceive the voters of the United States with reference to the real attitude of the Democratic party on the currency question cannot be doubted. Indeed Mr. Bryan, who has been on two previous occasions the spokesman of that party and whose per- sonality absolutely dominated and controlled the convention upon this question, says openly "It was a plain and deliberate attempt to deceive the party." Taking up the matter chronologically, the first subject for consideration is Judge Parker's history with reference to politics. The New York Tribune of July 13, 1904 says: "While Judge Parker was still a young- man and free to choose the political leaders and associates to whom he might look for preferment, he consented to manage Hill's first campaign for Gov- ernor and was rewarded with an appointment to the Supreme Court bench. * * * In due time he became Hill's candidate for Chief Judge of the Court of Appeals." EVASION ON THE SILVER QUESTION. It was during this candidacy for the Judgeship of the Court of Appeals, in 1897, a candidacy made, according to the above quotation, under Mr. Hill's management, that Judge Parker made his first "record" on one of the vital subjects of this campaign. At that time the Bryan silver influence in New York was very strong and was represented by Hon. Elliott Danforth, Chairman of the Democratic State Committee. In order, appar- ently, to placate that element, Mr. Danforth urged Mr. Parker to express himself on the silver question and he did so in the fol- lowing letter declaring that he had supported Bryan and free silv.er in both national campaigns. It will be seen by an exam- ination of the letter that it was prepared with the especial pur- pose of giving his opinion to that element of the party in New York which he designates as "the sincere friends of Mr. Bryan." "New York, Sept. 20, 1897. "The Hon. Eliot Danforth, Chairman of the Democratic Committee: "My Dear Mr. Danforth — It was entirely right for you to bring to my attention the question which the sincere friends of Mr. Bryan are pressing upon you. I can say to you frankly and sin- cerely that you can assure them that I voted for the last national nominees of the Democratic party, as I have voted for all the reg- ular Democratic nominees since I had a vote. . "Yours, very sincerely, "ALTON B. PARKER." It will be noted that while this letter states that he "voted for the last national nominees of the party," it is singularly like the recent telegram to St. Louis in that it omits any expression of his personal views on the real question at issue. EVASION ON THE TRUST QUESTION. Judge Parker's next record was made by the platform of the New York State convention of 1904, in the preparation of which he personally aided, and which the New York Evening Post (Democratic) says he revised and attested. The New York Times said of the platform, "It is understood to have full approval of Judge Parker." That platform, like the one at St. Louis, was silent on the money question and upon the question of trusts was "State's rights" to a degree which must have delighted the heart of the southern element which supported him so cordially at the St. Louis convention. It stated explicitly that "corporations chartered by the state must be subject to just regulation by the state** THE DEMOCRATIC PLATFORM AND CANDIDATE. 501 This proposition with reference to trusts — to relegate the entire question to the states — means of course to do nothing, and is as complete an evasion of the trust question on the part of dem- ocracy of New York as was the evasion of the St. Louis plat- form on the money question. For three months Judge Parker stood contentedly on this platform made by his friends and by the state convention which nominated him as its candidate for the Presidency, uttering no word of dissatisfaction with its evasions of the chief issues of the campaign. So unsatisfactory was this platform and the candidate -whose views it was under- stood to represent that Mr. Bryan, in an address at Chicago on April 23, 1904, denounced him as unfitted to receive the support of the party, saying that "the Democrats of the nation ought to defeat as an aspirant for the Democratic nomination any man who would be willing to have it go forth as a declaration of his views on public questions" and added that in his opinion, "Judge Parker is not a fit man to be nominated by the Democratic party." MORE EVASION ON THE MONEY QUESTION. Mr. Hill went to St. Louis prior to the opening of the con- vention as Judge Parker's accredited representative. When the Committee on Platform met, Mr. Hill and other representatives of Judge Parker urged the adoption of the plank on the money question as follows: "The discoveries of gold within the past few years and the great increase in the production thereof, adding- two thousand mil- lion dollars to the world's supply, of which seven hundred millions falls to the share of the TJ'nited States, has contributed to the maintenance of a money standard of value no longer open to ques- tion, removing that issue from the field of political contention." The above statement was, by implication at least, false and misleading. The Democratic party in 1900 reiterated its declara- tion in behalf of the free and unlimited coinage of silver, basing that proposition upon the claim that only by the unlimited use of silver as money metal could the world's requirement for cur- rency metal be properly met. Since that declaration of 1900 the world's production of gold has, according to the annual estimates of the Director of the Mint, amounted to $1,142,000,000 or only $112,000,000 more than during the four years immediately pre- ceding the declaration of 1900 when the Democratic party demanded the free and unlimited coinage of silver upon the theory that the gold supply was insufficient. In other words, the plank proposed by Mr. Hill attempted to show that the change of senti- ment in the party since its last declaration was due to an enormous increase in the production of gold, while in fact the increase in the production of gold since that last declaration in 1900 has been only $112,000,000 more than that of the four years preceding the declaration of 1900. The world's production of gold in the four years immediately preceding the Democratic convention of 1900 which declared for the free and unlimited coinage of silver upon the claim that the production of gold was insufficient to meet the requirements, amounted to $1,030,000,000 while in the four vears since the Democratic convention of 1900 the world's gold production has been $1,142,000,000. GOLD PLANK REJECTED BY MORE THAN TWO-THIRDS VOTE. The above plank proposed by Mr. Hill and other supporters of Judge Parker, declaring that the increased production of gold removes the money question from the field of political contention, was rejected by the committee, after a 19-hours' struggle, by a vote of 35 to 15, and an agreement was reached that the platform should contain no reference to the money question. NEWS MUST HAVE REACHED ESOPUS EARLY ON FRIDAY. This rejection of the gold plank and conclusion to omit the money question from the platform occurred according to the New York Evening Post at 4.40 o'clock on Friday morning as a result of the all-night session of the committee. The news was flashed over the country by telegraph with remarkable promptness and was in the mouths of the people in every part of the United States as soon as the business of the day had opened. It was known in the newspaper offices of New York and Albany by the time Judge Parker had breakfasted on Friday and had of course 502 THE DEMOCRATIC PLATFORM AND CANDIDATE. boon telephoned nnd telegraphed to the bevy of newspaper cor- respondents which constantly surrounded Judge Parker's house, and it seems Impossible to suppose that the information should have failed to reach him personally very early on Friday morn- ing, either through those correspondents or by personal cora- niunications from his friends in St. Louis or from the newspaper olHces, especially those supporting his candidacy and which were able to communicate instantly with him on that important sub- ject. It was the talk of the town early in the forenoon of Friday in all New York, in Washington and every other city in which any interest was felt on the subject. The New York Evening Post, the most urgent, of his supporters, in its issue of that date, announced in startling headlines: "No Money Plank" Thus people of all classes in the United States who were at all inter- ested in this subject knew, in the early part of Friday, that the Platform Committee had decided, by a more than two-thirds vote, to recommend that no utterance be made on the money question and there was reason to believe that the convention would adopt that proposition, and it seems impossible to suppose that Judge Parker could have failed to receive this information very early in the day on Friday. The New York and Albany afternoon papers containing the announcement were doubtless at Esopus long before the close of the day and certainly during many hours of Friday afternoon and night during which the convention was in session. PARKER PRESS URGING ACTION ON FRIDAY NIGHT. The editors of the New York papers which had been support- ing his candidacy wrote on Friday night, for their Saturday morning issues, vigorous editorials, not only denouncing the omis- sion of the money question from the platform, but stating that such omission would destroy the possibility of party success. The New York World said "to reject this resolution and refusing to make any utterance on the question that has twice defeated the party is to invite another overthrow." The New York Sun said that "HilVs sinister methods have intervened at the critical moment to overcloud hopes that were bright and to turn possible victory into probable defeat." Even the New York Evening Post of Friday had said: "On anything but an affirmation of the gold standard Judge Parker cannot stand; short of it the party has not a gleam of hope before it." But most striking of all these demands which his editorial friends wrote on Friday night, while he persisted in remaining silent, was that of the New York Times, which said: "On Bryan's platform Judge Parker will never be elected. He must make his own and make it promptly if he would stay the tide of defection. The convention expressly refused to declare for gold, thereby confessing- that the Democracy is not cured of the free silver craze. * * * The blunder can be amended, so far as it iK amendable at all, only by the candidate — and at this hour of writing, before the taking of the ballot, we are assuming the nom- ination of Parker. He must at once declare * * that the gold monetary standard, as now established by law, is permanent and no longer open to question. We do not say that by such a declar- ation Judge Parker would avert defeat; we fear it is too late for that." Note the similarity of the wording of this declaration, de- manded while the nomination was pending, and complied with after the nomination had been secured. The demand is that he "at once" declare that "the monetary standard, as now estab- lished by law, is permanent and no longer open to question." The next day, after the editorial had been read and digested, and lite nomination had been secured. Judge Parker followed the ad- vice in almost the lnnguage dictated, by declaring that "I regard the gold standard as firmly and irrevocably established." It can scarcely be possible that while these personal friends and supporters of Judge Parker were writing these things about him on Friday afternoon and evening they failed to communicate their views to him in a personal way. Reports of the incidents at Judge Parker's home during this time, published in the New York papers, indicate that messages were being constantly received in his house by telephone, thus indicating that he was not at any moment so isolated from the public as to prevent his receiving full information of what was in progress either THE DEMOCRATIC PLATFORM AND CANDIDATE. 503 through the bulletins from St. Louis which were being sent freely in all directions or through direct communications from his friends in St. Louis and New York. That this information did reach him on Friday is now practically confessed in a statement from Esopus, published in the New York Times and other papers on July 12, which is given as from a "near friend" of Judge Parker. It says: Even when the news came Friday that the Resolutions' Com- mittee had agreed on a platform Which contained no financial piank, a full conception of what seemed to be his duty did not form itself in Judge Parker's mind. * * * Even if he had a vague notion, as he admitted yesterday, of the awkward position in which, he would be placed, holding as he did such decided views on the money question, should he be put at the head of the ticket on a platform which did not commit itself on that vital issue, the gravity of such a situation did not at first clearly present itself to him. ANOTHER EVASIVE RESPONSE. Yet with all this information forced upon him through these numerous avenues which he could not possibly have escaped, he was silent until his friends had absolutely secured for him the nomination, and the convention, worn out with the night of struggle, had taken a recess until Saturday afternoon when it should complete its work by nominating his running mate. Then the nomination having been secured, and fully 24 hours after he must have known of the Platform Committee's action and the probability that the convention would ignore the money ques- tion, he sent the following telegram: Esopus, N. Y., July 9, 1904. Hon. Wm. F. Sneehan, Hotel Jefferson: I regard the gold standard as firmly and irrevocably estab- lished, and shall act accordingly if the act of the convention to- day shall be ratified by the people. As' the platform is silent on the subject, my view should be known to the convention; and if it is proved to be unsatisfactory to the majority, I request you to decline the nomination for me, so that another may be nominated before adjournment. (Signed) ALTON B. PARKER. Note again the similarity of this telegram and the 1897 letter to Mr. Danforth — In each case there is an evasion, a sphinx-like silence on the real question of the writers' views as to the vital issue of the silver question. He says he thinks the question irrevocably settled,' but does not say whether he thinks it property and rightfully settled, any more than he said in his letter to Mr. Danforth that he did or did not believe in the silver standard in 1896 and 1900 when he voted for the party nominee. THE CONVENTION DISREGARDED PARKER'S DECLARATION. When Judge Parker's telegram reached St. Louis in the after- noon of Saturday, the convention was not in session. It had remained in session all of Friday night to nominate him, and, having accomplished this, at 5.48 on Saturday morning, had taken a recess until 2 p. m.. Just before that hour, the receipt of the telegram from Judge Parker threw the leaders into confusion and there was necessity of a conference as to what course should be pursued. So the convention was persuaded to take another recess until 5 o'clock, which it did. By this time news of the real cause of the second recess had begun to leak out and threw the leaders and members into a turmoil and rage seldom if ever seen in a national gathering of this kind. The southern members, who with Mr. Bryan had been the chief participants in the proceedings, were especially vigorous in their denuncia- tion of the telegram and its author. The New York Sun, in its report of the scene, says that "At the Jefferson, Planters', and Southern hotels, many of the delegates tore off their Parker badges and flung them on the floor and stamped on them." Sena- tor Tillman, according to the same authority, said that Judge Parker's action should be repudiated if the party was to be saved and that no man had a right to put himself above the action of the convention which nominated him. Senator Culber- son, of Texas, according to the same authority, said that the delegates from his state were furious and would not allow them- selves to be bullied or bulldozed. Governor Vardeman of Missis- sippi agreed with Senator Culberson, and said that the platform as adopted should stand, and the delegates from Tennessee con- curred in the sentiments of Culberson, Tillman, and Vardeman. 504 THE DEMOCRATIC PLATFORM AND CANDIDATE. Governor Dockery of Missouri, the Sun says, remarked that "Judge Parker should go and take another bath in the Hudson." The New York World reports Senator Tillman as asking if the committee on resolutions was to be kicked and cuffed about as if it wore nothing, and adding, "The Democratic party can always be relied upon to make a fool of itself at the right time." The same authority reports Ollie James of Kentucky as saying that if a gold-standard plank were adopted his state would give a majority of 100,000 Republican. Ex-Senator Jones, Chairman of the Democratic National Committee, is reported by the same paper as saying, "I consider the gold plank proposition as fake politics," and it adds that Chairman. Cowherd, of the Deniocratic Congressional Committee, remarked that "Any attempt to dis- credit the decision taken in 1896 and 1000 would be a mistake." The New York Herald reports Senator Tillman as saying, "If Judge Parker sent this message, I am in favor of moving to withdraw the vote of South Carolina which nominated him; I stood for peace, but the last concession has been made." Repre- sentative Vandiver of Missouri, according to the same authority, remarked, "We have got what we deserved for nominating a clam," and Mr. Sheehan, according to the World dispatch, said to the delegates who surrounded him, "Please let me alone; I am half crazy." THE BEPLY OF THE CONVENTION. When the convention re-assembled at 5.30, the leaders were not yet ready with their reply to Judge Parker, and another recess was taken until 9 o'clock. When the members of the con- vention came together again at 9 o'clock it waited a full hour and at 10 o'clock on Saturday night Judge Parker's telegram was read to the delegates wearied with two nights' struggle over platform and nomination and the following reply proposed: "The platform adopted by this convention is silent on the ques- tion of the monetary standard because It is not regarded by us as a possible issue in this campaign, and only campaign issues were mentioned in the platform. Therefore there is nothing in the views expressed by you in the telegram just received which would preclude a man entertaining them from accepting the nomination on said platform. This proposed telegram and flat refusal to subscribe to any sentiments expressed in Judge Parker's message was urged upon the convention by Tillman, Williams, and others. Mr. Bryan, hearing of the situation, left his sick bed and appeared on the floor of the convention at 10.30 p. m., and after a speech in which he reflected upon Judge Parker by saying, "It is a manly thing for a man to express his opinion before the convention adjourns ; it would have been manlier to have expressed it before the con- vention met," withdrew objection, and the convention, wearied with two all-night sessions and a third night now half spent, voted to authorize the chairman to send a reply and consider the matter at an end. So insistent and all-powerful were the silver men in committee and convention that after the gold plank had been stricken out in the committee, Mr. Bryan called attention to the fact that the final section of the platform in its appeal to the public invoked the support of "all our fellow citizens who, disregarding past differences upon questions no longer an issue, desire the perpet- uation of our constitutional government," etc. He insisted that the words "upon questions no longer an issue" be stricken out, lest they might be regarded as referring to the silver question, and it was agreed in committee that this should be done. After the committee had adjourned, it was discovered that the plat- form had been given to the press with these words still retained, and Mr. Bryan again sharply called attention to the matter ; and as a result the copy of the platform when furnished to the official reporters showed that the wdrds "upon questions no longer an issue" had been stricken out. WHAT DID THE PARKER TELEGRAM MEAN? Now for an analysis of Judge Parker's telegram. In it Judge Parker says: "I regard the gold standard as firmly and irre- vocably established and shall act accordingly if the act of the convention to-day shall be ratified by the people." The Century Dictionary gives the meaning of the word "irrevocably" as THE .DEMOCRATIC PLATFOEM AND CANDIDATE. 505 "beyond recall ; so as to preclude recall or repeal." The purpose of Judge Parker's telegram then must have been to assert that the gold standard was, in his opinion, established beyond repeal, and the meaning of his statement that he would "act accordingly if the act of the convention to-day shall be ratified by the people" was apparently intended to convey the impression that he would interpose his veto in case of a repeal of the gold standard act by the party which had refused in convention in 1904 to with- draw its advocacy of the free and unlimited coinage of silver. WAS THE IMPLIED PLEDGE ONE THAT COULD BE MADE EFFECTIVE? While this implied assertion is quite out of line with that made to Chairman Danforth in 1897 when Judge Parker went out of the way to gain silver votes by announcing that he had twice supported Mr Bryan and free silver, its absolute worthlessness as an assurance of ability to maintain the gold standard, even if he were perfectly sincere in that wish, is shown by the latest record of the Democratic party in Congress upon this question. DEMOCRATIC RECORD ON LAW ESTABLISHING GOLD STANDARD. That latest record was made in the vote upon the bill offered by the Republican party in 1899 establishing the gold standard. In the vote in the House of Representatives on that bill (Decem- ber 18, 1899) eleven (11) Democrats voted for the bill and 142 against it, and in the Senate on the same measure (February 15, 1900) two (2) Democrats voted for the bill and 23 Democrats against it. Thus on the test vote in 1899 and 1900 on the bill establishing the gold standard, more than nine-tenths of the Dem- ocrats in the House and Senate voted against the proposition and less than one-tenth voted for it. With this record of the party on a distinct proposition to establish and maintain the gold standard, of what value is Judge Parker's implied promises that he would veto a bill repealing the gold standard? A two-thirds vote in the House and Senate would pass such a measure over his veto and the record of his own party in Congress is that nine- tenths of its members voted in 1900 against the gold standard act, and, it may be assumed, would vote to override a veto of the bill repealing that act against which they thus voted. The abso- lute unwillingness of the Democratic party to be at all guided by the views of a President of its own selection is shown in the fact that it passed in House and Senate in 1894, a tariff act so unsatisfactory to its President that he not only denounced it in unmeasured terms during its consideration but withheld his signa- ture when it was finally forced upon him by his own party. WAS SILENCE ON THE. MONEY QUESTION A PREARRANGED PLAN? Not only did the St. Louis convention of 1904 decline to make an expression on the money question even after the receipt of Judge Parker's telegram, but there are facts which indicate that this was the settled purpose of the supporters of Judge Parker from the beginning. The Hon. John Sharp Williams, leader of the Democratic party in Congress, an avowed supporter of Judge Parker, in his speech as Temporary Chairman on the opening of the convention announced that the party would present its can- didate "upon a platform ignoring dead issues." This announce- ment was made before the Platform Committee had met. His early assertion that the party would "ignore dead issues" indi- cates that it was the intention of this leader of the party in the House of Representatives and his associates that the party would ignore and pass by in silence this silver question, to which it would in fact still be pledged unless it should in some definite man- ner revoke its former action upon this subject. That it was the intention of the party leaders from the first to omit reference to this important subject and also to make it appear that this treatment of the question in the platform of the party would have Judge Parker's approval or at least his tacit consent is •further indicated by the fact that Mr. Littleton, in his speech nominating Judge Parker (which speech had of course been sub- mitted to that gentleman before its presentation) said: "If you ask me why he has' been silent, I tell you it is be- cause he does not claim to be the master of the Democratic party, but is content to be its servant. If you ask me why he has not outlined a policy for this convention, I tell you that he does not 606 THE DEMOCRATIC PLATFORM AND CANDIDATE. believe that policies should be dictated, but that the sovereignty of the party Is in the untrammeled judgment and wisdom of its members; If you ask me what his policy will be, if elected, I tell you that it will be that policy which finds expression in the plat- form of his party." In addition to this, attention is again called to the silence on the money question of the Now York state platform framed with the co-operation and full approval of Mr. Parker and with the purpose of making it the basis for his presentation to the con- vention as candidate of New York state. But say his supporters, "he did express himself despite the refusal -of the convention to consider the money question and despite the assertion of his spokesman that "his policy will be that which finds expression in the platform of his party." Yes he did express himself, but that expression was withheld until his nomination was safely within his grasp and until he had been on the other hand warned by tho leading newspapers of his party that without such an expression from him they would refuse to support him and his "possible victory would be turned into defeat" EX-ATTORNEY GENERAL KNOX ON JUDGE PARKER'S DECLARATION. Ex-Attorney General Knox in an interview in the Philadelphia Press of July 15, said: "Judge Parker's recognition of the fact that the gold standard has been irrevocably established Is nothing but an acknowledg- ment of the accomplishment of that great fact by the Republican party against the repeated protest of his party and against his* personal vote every time the issue was before the people. "It could hardly be expected that a man of his position would exhibit less intelligence than was' manifested by his prompt avowal of his knowledge of that fact after being prodded to do so by the Democratic and Mugwump New York press. It was pointed out to him that failure to do so meant defeat. "It would be just as silly to extol an acknowledgment of the fact that the earth is round as the fact that this country is' irre- vocably upon a gold basis. That it is irrevocably so is because the people will not give the Democracy the chance to revoke, at least, until the good faith of the party rests upon something more substantial than the self-serving assertion of one man against the deliberate, sullen silence of the whole party. "I have heard of no expression yet that either Judge Parker or his party regards the money question as settled right. The fair inference from his vote and his party's attitude is that they only regard it as' settled for the purpose of this campaign. "We have the authority of Mr. Littleton, who nominated Mr. Parker in a speech, which, of course, Mr. Parker saw before its de- livery, that 'no candidate is greater than his party and no party greater than its principles.' " THE TRUSTS AND JUDGE PARKER. That Judge Parker owes his nomination as the Democratic candidate for the Presidency to certain powerful financial inter- ests in Wall street is a matter of record. The chief promoter of his candidacy was August Belmont PARKER HELPED MAKE THE ALBANY PLATFORM. On April 15, three days before the assembling of the New York Democratic State Convention, which instructed a delegation to the National Convention to vote as a unit for him, Judge Parker paid a visit to New York City. The object of that visit, and what occurred at the conferences which attended it, were set forth fully and frankly in the New York Times, an ardent Parker supporter, on the following day. Appended is an extract from its report : "Judge Alton B. Parker spent several hours in this city yes- terday In consultation with William F. Sheehan and others', dis- cussing principally the draft of the platform which has been pre- pared by ex-Senator David B. Hill for adoption at next Monday's Democratic State convention. "Judge Parker, Mr. Sheehan and August Belmont lunched to- gether, and late in the afternoon Judge Parker, accompanied by Mr. Sheehan, left for his home at Esopus, where he will remain until after the State convention. Mr. Sheehan will remain at Judge Parker's home until some time to-day, when he will go to Albany to take the approved draft of the platform back to Senator Hill. * • • "As it stands, the platform is' understood to have the full ap- proval of Judge Parker, all of the propositions advanced by Sen- ator Hill as being likely to attract the radical vote having b«en eliminated at the wish of the prospective candidate for the Presi- dency. • • • "The platform which has been approved, and which will be pre- sented to the convention on Monday, is understood to be drawn on THE DEMOCRATIC PLATFORM AND CANDIDATE. 507 ultra-conservative lines', and to avoid all references to the rocks on which the party split in the last two national campaigns." TRUSTS TO BE LET ALONE. The fourth plank of the platform thus approved and subse- quently adopted by the convention, reads as follows: "Corporations chartered by the State must be subject to just regulation by the State in the interest of the people." There is no mistaking the meaning of that declaration. It abolishes national control of trusts and all similar combinations. If embodied in law it would compel the repeal of the statute under which the Northern Securities suit was brought and won by President Roosevelt. It is absurd to suppose that Judge Parker, who is nothing if not an able and experienced lawyer, could have read and approved this declaration without fully compre- hending its meaning. It is equally absurd to suppose that David B. Hill and Mr. Belmont were not fully aware of its intent, and of its effect in operation were it to become a law. No question that was to come before the New York convention was calcu- lated to command more careful consideration from Judge Parker ;and his friends in this conference than that of trusts. Nobody | knew better than they that the only reason for taking the Dem- ocratic nominee for the Presidency from the State of New York was that President Roosevelt had incurred the bitter hostility of Wall street because of his uncompromising conduct in enforcing the law against the trusts. The Democratic hope relied solely upon finding a candidate who would be acceptable to the trusts, and who would not only get them votes, but their money in the campaign. Judge Parker knew this, and Mr. Belmont knew it. The only safe course was to put in a declaration favorable to the trusts, and this was done. After the convention had been held and the platform had been adopted, the Democratic State Committee met on April 30 to organize for the campaign. In the interim not a word came from Judge Parker expressing dissatisfaction with the platform which, aside from its trust deliverance, was weak and meaningless. There had been much discussion as to the chairmanship of the committee, and several candidates for the position had been sug- gested. The Parker influence was exerted for Cord Meyer, and he was elected. The same influence was exerted for Patrick H. McCarren for chairman of the executive committee, and he also was elected. PARKER'S REAL BACKERS. Who is Cord Meyer, and who is Patrick H. McCarren? Let e record tell the story: Cord Meyer was one of the original stockholders in the first rganization of the Sugar Trust in 1897. Sixteen refining com-' anies entered the combination, with a total value of $6,590,000. he second company to enter was the Dick J. Meyer Company, which Cord Meyer was interested. This company was put in t $200,000, and to it was issued a total of several millions m trust ertiflcates. That was the usual trust method of procedure, as own in the Shipbuilding Trust exposure. Havermeyer, testify- g before a trust investigation, which was conducted by a joint jommittee of the two houses of the New York Legislature in 1897, said with his usual frankness, that the Sugar Trust was formed :o control the price and the production of sugar in the United States. Evidence was presented at the same investigation that he Trust controlled the sugar business, even down to the retailer, >y a system of factors' agreements, and that grocers who would lot sign these factors' agreements to sell sugar at the price dic- :ated by the Trust had their supply shut off. It was shown that iven with the tremendous capitalization the Trust paid divi- iends of 12 per cent. It was also shown that seven or eight large •efineries were shut down, and that between 5,000 and 6,000 men vere thrown out of employment permanently. In their report the investigation committee, which had gone nto the Tobacco, Rubber and Wall Paper Trusts, as well as the Sugar Trust, declared that "every such combination was accom- panied by enormous capitalization, and was generally followed )y a successful effort to distribute its stock to the public through [he channels of speculation. Every such combination was followed 508 THI DEMOCRATIC PLATFORM AND CANDIDATE. by the closing and dismantling of factories, the discharge of labor and the Concentration of the business of many separate organizations into a (tew of the many lactones controlled by th< combination." To this report all the members of the committee, save one affixed his signature. The dissenting member was Patrick II McCarren, who made a minority report defending the trusts, anc especially the Sugar Trust, as beneficent institutions. Was it by mere accident that these two trust beueficiaries and defenders were put in charge of the Democratic campaigt in New York? Meyer, in addition to having been a stockholdei in the Sugar Trust, is a director in a half-dozen or more othei trusts. He is a millionaire and is personally acquainted witl the magnates of Wall street. No sooner wms the New York dele gation secured for Parker than Meyer began to "pass the hat' in WmII street for funds to promote the Parker CMndidacy, sayinp that Belmont had borne all the expense to date, and that other* should help in order to get Parker nominated. His function is to collect the money from the trusts, while McCarren is to spenc it where it "will do the most good." One other point remains to be tMken from the record. At th< Democratic State convention, which chose the Parker delega tion, four Presidential eleetors-at-large for the State were elected One of these was James T. Woodward, President of the Hanovei National Bank of New York, another was Henry Payne Whitney son of the late William C. Whitney, and a third was Isadoi Straus. These withdrew several weeks later under a loud out cry from the Democratic press, led by the New York World because one as President of a National Bank and the others as directors in such institutions, were ineligible under the law. Thej were put on the ticket, for the same reason that Meyer mtk' McCarren were put in charge of the campaign work, to invite the confidence and contributions of the moneyed interests of Wal street. It is said that the Democrats will be able to collect a large campaign fund this year for the first time in many years. When will they get it? From the trusts which are angry at Presided Roosevelt because he refused to allow them to violate the law or to look upon them as above the law. Will the trusts give money to Parker, In view of the anti-trust plank of the St. Louis platform? Why should they not? That is not his plank, bui Bryan's. Parker's plank is in the New York platform, and the trusts can easily get assurance from Belmont and Meyer that he will stand by that RECORD OF THE DEHOCRATIC PARTY ON THE ACT ES- TABLISHINQ THE GOLD STANDARD. Analysis of the Vote la. the House and Senate Upon that Act. Judge Parker's telegram to the St. Louis convention statee: that he regards "the gold standard as firmly and irrevocablj established and shall act accordingly." How little he is in accord with his party on this subject is shown not only by the fact that the convention declined bott before and after his telegram to repudiate in any way the silvei platform of 1896 and 1900, but is also shown by the vote of the Democratic party in Congress on the act establishing the gold standard. That measure was passed in the House of Representa- tives December 18, 1899 ; was amended in the Senate and passed February 15, 1900, and the conference report which presented the bill in the form in which it became a law was voted upon in the Senate March 6, 1900, and in the House March 13, 1900. Thi votes on this measure at its various stages are summarized bj Representative T. C. McRae, of Arkansas, a Democrat, on pages 3034 and 3035 of the daily Congressional Record of March 14, 1900 (page 2842 of bound record) as follows: Vote on passage in the House, December 18, 1899 : Yeas — 179 Republicans, 11 Democrats. Nays' — 142 Democrats, 5 Populists, 3 S'ilverites. Vote on passage in the House, December 18. 1809: Yeas — 44 Republicans, 2 Gold Democrats. Nays — 23 Democrats, 3 Silverites, 2 Populists, 1 Republican. THE DEMOCBATIC PLATFOEM AND CANDIDATE. 509 Vote in Senate on Conference Report, March 6, 1900: Teas — 43 Republicans, 1 Democrat. Nays — 21 Democrats, 2 S'il writes, 2 Populists, 1 Republican. Vote on Conference Report in House ,of Representatives, March 13, 1900: Yeas — 157 Republicans, 9 Democrats. Nays — 114 Democrats', 4 Populists, 2 Sllverltes. THE VOTE AGAINST THE GOLD STANDARD ACT. The vote against the bill on its original passage in the House on December 18, 1899, with the politics of each member as stated in the Congressional Directory for 1900, is summarized in the Congressional Record of March 14, 1900, by Hon. Thomas C. Mcliae, a Democratic Congressman from Arkansas, as follows: Adamson, Ga., Dem. Allen, Ky., Dem. Allen, Miss., Dem. Atwater, N. C, Dem. Bailey, Tex., Dem. Ball, Tex., Dem. Bankhead, Ala., Dem. Barber, Pa., Dem. Bartlett, Ga., Dem. Bell, Col., Pop. Benton, Mo., Dem. Berry, Ky., Dem. Bradley, N. Y., Dem. Brantley, Ga., Dem. Braezale, La., Dem. Brenner, O., Dem. Brewer, Ala., Dem. Brundidge, Ark., Dem. Burke, Tex., Dem. Burleson, Tex., Dem. Burnett, Ala., Dem. Caldwell, 111., Dem. Carmack, Tenn., Dem. Chanler, N. Y., Dem. Clark, Mo., Dem. Clayton, Ala., Dem. Cochran, Mo., Dem. Cooney, Mo., Dem. Cooper, Tex., Dem. Cowherd, Mo., Dem. Cox, Tenn., Dem. Crawford, N. C, Dem. Crowley, 111., Dem. Cummings, N. Y., Dem. Cusack, 111., Dem. Daly, N. J., Dem. Davenport, S. W. Pa., Dem. Davis, Fla., Dem. DeArmond, Mo., Dem. DeGraffenreid, .Tex., Dem. DeVries, Cal., Dem. Dinsmore, Ark., Dem. Dougherty, Mo., Dem. Elliott, S. C, Dem. Epes, Va., Dem. Finley, S. C, Dem. Fitzgerald Mass., Dem. Fitzpatrick, Ky., Dem. Fleming, Ga., Dem. Foster, 111., Dem. Fox, Miss., Dem. Gaines, Tenn., Dem. Gaston, Pa., Dem./ Gilbert, Ky., Dem. Glynn, N. Y., Dem. Gordon, O., Dem. Green, Pa., Dem. Griffith, Ind., Dem. Griggs, Ga., Dem. Hall, Pa., Dem. Hay, Va., Dem. Henry, Miss., Dem. Henry, Tex., Dem. Howard, Ga., Dem. Jett, I'll., Dem. Johnston, W. Va., Dem. Jones, Va., Dem. Kitchln, N. C, Dem. Kleberg 1 , Tex., Dem. Kluttz, N. C, Dem. Lamb, Va., Dem. Lanham, Tex., Dem. Latimer, S. C, Dem. Lentz, O., Dem*. Lester, Ga., Dem. Lewis, Ga., Dem. Little, Ark., Dem. Livingston, Ga., Dem. Lloyd, Mo., Dem. McClellan, N. Y., Dem. McCulloch, Ark., Dem. McDowell, O., Dem. McLain, Miss., Dem. McRae, Ark., Dem. Maddox, Ga., Dem. May, N. Y., Dem. Meekison, O., Dem. Meyer, La., Dem. Miers, Ind., Dem. Moon, Tenn., Dem. Muller, N. Y., Dem. Naphen, Mass., Dem Neville, Neb., Pop. Newlands, Nev., Sil. Noonan, 111., Dem. Norton, 111., Dem. Norton, S. C, Dem. Otey, Va., Dem. Pierce, Tenn., Dem. Polk, Pa., Dem. Quarles, Va., Dem. Randsdell, La., Dem. Rhea, Ky., Dem. Rhea, Va., Dem. Richardson, Tenn., Dem. Ridgely, Kan., Pop. Riordan, N. Y., Dem. Rixey** Va., Dem. Robb, Mo., Dem. Robbins', Ala., Dem. Robinson, Ind. Dem. Robinson, Neb., Dem. Rucker, Mo., Dem. Ryan, N. Y., Dem. Ryan, Pa., Dem. Salmon, N. J., Dem. Shackelford, Mo., Dem. - Shafroth, Col., Sil. Sheppard, Tex., Dem. Sibley, Pa., Dem. Sims, Tenri., Dem. Slayden, Tex., Dem. Small, N. C, Dem. Smith, Ky., Dem. Snodgrass, Tenn., Dem. Sparkman, Fla., Dem. Spight, Miss., Dem. Stark, Neb., Pop. Stephens, Tex., Dem. Stokes, S. C, Dem. Sulzer, N. Y., Dem. Sutherland, Neb., Pop. Swanson, Va., Dem. Talbert, S. C, Dem. Tate, Ga., Dem. Taylor, Ala., Dem. Terry, Ark., Dem. Thomas, N. C, Dem. Turner, Ky., Dem. Underwood, Ala., Dem. Vandiver, Mo., Dem. Wheeler, Ky., Dem. Williams, J. R., 111., Dem. Williams, Miss'., Dem. Williams, W. E., 111., Dem. Wilsom Ida., Sil. Young,* Va., Dem. Zenor, Ind., Dem. Zlegler, Pa., Dem. 510 THE DEMOCRATIC PLATFORM AlfD CANDIDATE. The vote against the bill on its original passage in the Senate, February 15, 1900, and the politics of each Senator, were as follows : ©ate, Tenn., Dem. McEnery, La., Dem. Berry, Ark., Dem. McLaurln, S. C, Dem. Butler, N. C, Pop. Martin, Va., Dem. Chandler N. H., Rep. Money, Miss., Dem. Chilton, Tex., Dem. Morgan, Ala., Dem. Clark, Mont., Dem. Pettus, Ala., Dem. Clay, Ga., Dem. Rawlins, Utah, Dem. Cockrell, Mo., Dem. Stewart, Nev., Sil. Culberson, Tex., 'Dem. Sullivan, Miss., Dem. Daniel, Va., Dem. Taliferro, Fla., Dem. Harris, Kan., Pop. Teller, Col., Sil. Heitfeld, Ida., Pop. Tillman, S. C, Dem. Jones, Ark., Dem. Turley, Tenn., Dem. Jones, Nev., Sil. Vest, Mo., Dem. Kenney, Del., Dem. Even the Democratic Representatives in the New England and Middle States which now pose as supporters of the gold standard voted generally against the act establishing the gold standard. In the original vote on the bill in the House of Representatives, December 18, 1899, 23 of the 33 Democratic representatives from the northeastern section of the United States, — including in that term Pennsylvania, Delaware, New Jersey, New York, and the New England States — voted against the aql. Of the 18 Demo- cratic members from New York who are reported as having voted upon this act, 10 are recorded as having voted against it, as follows : Messrs. George B. McClellan, Sulzer, Cummings, Bradley, Riordan, Muller, May, Chanler, Glynn, and Ryan. Of the 10 Democratic Representatives from Pennsylvania who are reported as having voted on the bill, 9 are recorded as having voted against it, viz. : Messrs. Barber, Green, Davenport, Ryan, Polk, Ziegler, Gaston, Sibley, and Hall. Of the 3 Democratic Representatives from Massachusetts who are reported as voting on the bill, two — Messrs. Fitzgerald and Naphen — are recorded as voting against it. The two New Jersey Democrats — Messrs. Salmon and Daly — reported as voting are also recorded in the negative. Thus in the one section of the United States whose Democracy poses as the "gold wing" of the Democratic party, 23 of the 33 who voted in the House of Representatives upon this measure establishing the gold standard are recorded in the official reports of the Congressional proceedings as having voted against it and only 10 for it. In other words, in the one section of the United States in which the Democracy claims its greatest strength for the gold standard, more than two-thirds of the Democratic mem- bers of Congress when put to the test voted against the act estab- lishing the gold standard. If this be true of that, section of the Democracy in which the gold standard is in greatest favor, what value wourd the views of Mr. Parker or his veto as a President prove upon any measure relating to this subject, since In that part of the country which claims the greatest strength for the gold standard the vote was more than two-thirds against its establishment. That is the record of the vote in Congress on the gold standard act by the party whose newspapers and Presidential candidate are now trying to make the people believe that it is a gold standard party or that it is abandoning in any way its opposition to the gold standard. LATEST DEMOCRATIC UTTERANCES ON THE MONEY QUESTION. Hore are the latest official utterances of the Democratic party in national convention on the money question, the money planks of their platforms in 1896 and 1900, also the rejected plank of 1904: ADOPTED BY THE DEMOCRATIC NATIONAL CONVENTION AT CHICAGO, JULY 8, 1896. Recognizing- that the money system is paramount to all others at this time, we invite attention to the fact that the Federal Con- stitution names silver anfl gold together as the money metals' of the United States, and that the first coinage law passed by Con- gress under the Constitution made the silver dollar the monetary unit, and admitted gold to free coinage at a ratio based upon the silver dollar unit. We declare that the act of 1873 demonetizing THE DEMOCBATIC PLATFORM A WD CANDIDATE. 511 silver without the knowledge or approval of the American people has resulted in the appreciation of gold and a corresponding fall in the prices of commodities produced by the people; a heavy in- crease in the burden of taxation and of all debts, public and pri- vate; the enrichment of the money-lending- class at home and abroad; prostration of industry and impoverishment of the people. We are unalterably opposed to gold monometallism, which has locked fast the prosperity of an industrial people in the paralysis of hard times. Gold monometallism is a British policy, and its' adoption has brought other nations into financal servitude to Lon- don. It is not only un-American but anti-American, and it can be fastened on the United States only by the stifling of that spirit and love of liberty which proclaimed our political independence in 1776 and won it in the war of the Revolution. ADOPTED BY THE DEMOCBATIC NATIONAL CONVENTION AT KANSAS CITY, JULY 5, 1900. We reaffirm and indorse the principles of the National Demo- cratic platform adopted at Chicago in 1896, and we reiterate the demand of that platform for an American financial system, made by the American people for themselves, which shall restore and maintain a bimetallic price level, and as part of such system the immediate restoration of the free and unlimited coinage of silver and gold at the pres'ent ratio of 16 to 1, without waiting for the aid or consent of any other nation. We denounce the Currency bill enacted at the last session of Congress as a step forward in the Republican policy which aims to discredit the sovereign right of the National Government to issue all money, whether coin or paper and to bestow upon national banks the power to issue and control the volume of paper money for their own benefit. A permanent na- tinal bank currency, secured by Government bonds, must have a permanent debt to rest upon, and if the bank currency is to in- crease with population and business the debt nvust als'o increase. The Republican currency statement is, therefore, a statement for fastening upon the taxpayers a perpetual and growing debt for the benefit of the banks. We are opposed to this private corporation paper circulated as money, but without legal tender qualities', and demand the retirement of the national bank notes as fast as Gov- ernment paper or silver certificates can be substituted for them. PLANK REJECTED IN PLATFORM COMMITTEE AT DEMOCBATIC NATIONAL CONVENTION AT ST. LOUIS, JULY 8, 1904, BY VOTE OF 35 TO 15. The money question: The discoveries of gold within the past few years' and the great increase in the production thereof, adding $2,000,000,000 to the world's supply, of which $700,000,000 falls to I the share of the United States, has contributed to the maintenance of a money standard of value, no longer open to question, removing that issue from the field of political contention. Not only was the above plank rejected In the committee by a vote of 35 to 15, but the convention unanimously adopted the platform which made no declaration on the money question, thus leaving the declarations of 1896 and 1900 still the official utterances of the party upon this question. The refusal of the platform committee and of the convention to in any way revise or modify the declarations of 1896 and 1900 on the money question was emphasized by a further refusal to in any way act upon the question after the receiving of Judge Parker's telegram. Judge Parker's telegram and the resolution of response adopted by the convention are as follows: JUDGE PABKEB'S TELEGRAM. I regard the gold standard as firmly and irrevocably established and shall act accordingly if the action of the convention to-day shall be ratified by the people. As the platform is silent on the subject my view should be jmade known to the convention, and if it is proved to be unsatisfac- tory to the majority I request you to decline the nomination for Ime at once, s'o that another may be nominated before adjournment I ALTON B. PARKER. The platform adopted by this convention is silent on the ques- tion of the monetary standard, because it is not regarded by us as ; a possible issue in this campaign, and only campaign issues were ■mentioned in the platform. Therefore there is nothing in the ■views expressed by you in the telegram just received which would •preclude a man entertaining them from accepting a nomination on Ijsaid platform. The currency act of March 14, 1900, establishing the gold jntandard, upon which the Democratic party in House and Senate 'Jmade the record above quoted — a record reported by a leading jIDemocratic member of Congress and placed in the Congressional (Record — is as follows: EESPONSE OF THE CONVENTION. 612 THE DEMOCRATIC PLATFORM AND CANDIDATE. THE GOLD STANDARD CURRENCY LAW, ENACTED BY THE FIFTY-SIXTH CONGRESS, AND VOTED AGAINST BY PRACTICALLY ALL DEMOCRATS. [Official Copy. J An act to define and fix the standard of value, to maintain the parity of all forms of money issued or coined by the United States, to refund the public debt, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the dollar consisting of twenty-five and eight-tenths grains of gold nine- tenths fine, as established by section thirty-five hundred and eleven of the Revised Statutes' of the United States, shall be the standard unit of value, and all forms of money issued or coined by the United States shall be maintained at a parity of value with this standard, and it shall be the duty of the Secretary of the Treas- ury to maintain such parity. Sec. 2. That United States notes and Treasury notes issued under the act of July fourteenth, eighteen hundred and ninety, when presented to the Treasury for redmption, shall be redeemed in gold coin of the standard fixed in the first section of this act, and in order to secure the prompt and certain redemption of such notes as herein provided it shall be the duty of the Secretary of the Treasury to set apart in the Treasury a reserve fund of one hundred and fifty million dollars in gold coin and bullion, which fund shall be used for such redemption purposes only, and when- ever and as often as any of said notes shall be redeemed from said fund it shall be the duty of the Secretary of the Treasury to use said notes so redeemed to restore and maintain such reserve fund in the manner following, to wit: First, by exchanging the notes so redeemed for any gold coin in the general fund of the Treasury; second, by accepting deposits of gold coin at the Treasury or at any sub-treasury in exchange for the United States notes so re- deemed; third, by procuring gold coin by the use of said notes, in accordance with the provisions' of section thirty-seven hundred of the Revised Statutes of the United States. If the Secretary of the Treasury is unable to restore and maintain the gold coin in the re- serve fund by the foregoing methods, and the amount of such gold coin and bullion in said fund shall at any time fall below one hun- dred million dollars, then it shall be his' duty to restore the same to the maximum sum of one hundred and fifty million dollars by borrowing money on the credit of the United States, and for the debt thus incurred to issue and sell coupon or registered bonds of the United States in such form as he may prescribe, in denomina- tions of fifty dollars or. any multiple thereof, bearing interest at the rate of not exceeding three per centum per annum, payable quarterly, such bonds to be payable at the pleasure of the United States after one year from the date of their issue, and to be pay- able, principal and interest, in gold coin of the present standard value, and to be exempt from the payment of taxes or duties of the United States, as well as from taxation in any form by or under State, municipal, or local authority; and the gold coin received from the sale of said bonds shall first be covered into the general fund of the Treasury and then exchanged, in the manner here- inbefore provided, for an equal amount of the notes redeemed and held for exchanged, and the secretary of the Treasury may, in his discretion, use said notes in exchange for gold, or to purchase or redeem any bonds of the United States, or for any other lawful purpose the public interests may require, except that they shall not be used to meet deficiencies in the current revenues. That United States notes when redeemed in accordance with the pro- visions of this section shall be reissued, but shall be held In the reserve fund until exchanged for gold, as herein provided; and the gold coin and bullion in the reserve fund, together with the re- deemed notes held for use as provided in this section, shall at no time exceed the maximum sum of one hundred and fifty million dollars. Sec. 3. That nothing contained in this Act shall be construed to affect the legal tender quality as now provided by law of the silver dollar, or of any other money coined or issued by the United States. Sec. 4. That there be established in the Treasury Department, as a part of the office of the Treasurer of the United States, divi- sions to be designated and known as the division of issue and the division of redemption, to which shall be assigned, respectively, under such regulations as the Secretary of the Treasury may ap- prove, all records and accounts relating to the issue and redemp- tion of United States notes, gold certificates, silver certificates, and currency certificates. There shall be transferred from the ac- counts of the general fund of the Treasury of the United States, and taken up on the books of said divisions, respectively, accounts relating to the reserve fund for the redemption of United States notes and Treasury notes, the gold coin held against outstanding gold certificates, the United States notes held against outstanding currency certificates, and the silver dollars held against outstand- ing silver certificates, and each of the funds represented by these aocounts shall be used for the redemption of the notes and certifi- cates for which they are respectively pledged, and shall be used for no other purpose, the same being held as trust funds. Sec. 5. That It shall be the duty of the Secretary of the Treas- ury, as fast as standard silver dollars are coined under the pro- visions of the Acts of July fourteenth, eighteen hundred and ninety, THE DEMOCRATIC PLATFORM AND CANDIDATE. 513 and June thirteenth, eighteen hundred and ninety-eight, from bul- lion purchased under the Act of July fourteenth, eighteen hundred and ninety, to retire and cancel an equal amount of Treasury notes whenever received into the Treasury, either by exchange in ac- cordance with the provisions' of this act or in the ordinary course of business, and upon the cancellation of Treasury notes silver certificates shall be issued against the silver dollars so coined. Sec. 6. That the Secretary of the Treasury is hereby author- ized and directed to receive deposits of gold coin with the Treas- urer or any assistant treasurer of the United States in sums of not less than twenty dollars, and to issue 'gold certificates therefor in denominations of not less than twenty dollars, and the coin so de- posited shall be retained in the Treasury and held for the payment of such certificates on demand, and used for no other purpose. Such certificates shall be receivable for customs, taxes, and all public dues, and when so received may be reissued, and when held by any national banking association may be counted as a part of its lawful reserve: Provided, That whenever and so long as the gold coin held in the reserve fund in the Treasury for the redemp- tion of United States notes and Treasury notes shall fall and re- main below one hundred million dollars the authority to issue cer- tificates as herein provided shall be suspended: And provided further, •That whenever and so long as the aggregate amount of United States notes and silver certificates in the general fund of the Treasury shall exceed sixty million dollars the Secretary of the Treasury may, in his discretion, suspend the issue of the cer- tificates herein provided for: And provided further, That of the amount of such outstanding certificates one-fourth at least shall be in dei|g>minations of fifty dollars or less: And provided further, That the Secretary of the Treasury may, in his discretion, issue certificates in denominations of ten thousand dollars, payable to order. And section fifty-one hundred and ninety-three of the Re- vised Statutes of the United States is hereby repealed. Sec. 7. That hereafter silver certificates shall be issued only of denominations of ten dollars' and under, except that not exceed- ing in the aggregate ten per centum of the total volume of said certificates, in the discretion of the Secretary of the Treasury, may be issued in denominations of twenty dollars, fifty dollars, and one hundred dollars; and silver certificates of higher denomination than ten dollars', except as herein provided, shall, whenever re- ceived at the Treasury or redeemed, be retired and canceled, and certificates of denominations of ten dollars or less shall be substi- tuted therefor, and after such substitution, in whole or in part, a like volume of United States notes' of less denomination than ten dollars shall from time to time be retired and canceled, and notes of denominations of ten dollars and upward shall be reissued in substitution therefor, with like qualities and restriction*' as those retired and cancelled. Sec. 8. That the Secretary of the Treasury is hereby authorized to use, at his discretion, any silver bullion in the Treasury of the United States purchased under the Act of July fourteenth, eighteen hundred and ninety, for coinage into s'uch denominations of subsi- diary silver coin as may be necessary to meet the public require- ments for such coin: Provided, That the amount of subsidiary sil- ver coin outstanding shall not at any time exceed in the aggregate one hundred millions of dollars. Whenever any silver bullion purchased under the Act of July fourteenth, eighteen hundred and ninety, shall be used in the coinage of subsidiary silver coin, an amount of Treasury notes issued under said Act equal to the cost of the bullion contained in such coin shall be canceled and not reissued. Sec. 9. That the Secretary of the Treasury is hereby author- ized and directed to cause all worn and uncurrent subsidiary silver coin of the United States now in the Treasury, and hereafter re- ceived, to be recoined, and to reimburse the Treasurer of the United States for the difference between the nominal or face value of such coin and the amount the same will produce in new coin from any moneys in the Treasury not otherwise appropriated. Sec. 10. That section fifty-one hundred and thirty-eight of the Revised Statutes is hereby amended so as to read as follows: "Section 5138. No association shall be organized with a less capital than one hundred thousand dollars, except that banks with a capital of not less than fifty thousand dollars may, with the approval of the Secretary of the Treasury, be organized in any place the population of which does not exceed six thousand in- habitants, and except that banks with a capital of not less than twenty-five thousand dollars may, with the jp&ction of the Secre- tary of the Treasury, be organized in any praee the population of which does not exceed three thousand inhabitants. No association shall be organized in a city the population of which exceeds fifty thousand persons with a capital of less than two hundred thousand dollars." Sec. 11. That the Secretary of the Treasury is hereby author- ized to receive at the Treasury any of the outstanding bonds of the United States bearing interest at five per centum per annum, payable February first, nineteen hundred and four, and any bonds of the United States bearing interest at four per centum per annum, payable July first, nineteen hundred and seven, and any bonds of the United States bearing interest at three per centum, payable per annum, payable August first, nineteen hundred and eight, and to issue in exchange therefor an equal amount of coupon or registered bonds of the United States in such form as he may prescribe, in denominations of fifty dollars or any multiple thereof, bearing interest at the 514 THE DEMOCRATIC PLATFORM AND CANDIDATE. rate of two per centum per annum, payable quarterly, such bonds to be payable at the pleasure of the United States after thirty years from the date of their issue, and said bonds to be payable, principal and interest, in gold coin of the present standard value, and to be exempt from the payment of all taxes or duties of the United States, as well as' from taxation in any form by or under State, municipal, or local authority: Provided, That such outstand- ing bonds may be received in exchange at a valuation not greater than their present worth to yield an income of two and one- quarter per centum per annum; and in consideration of the reduc- tion of interest effected, the Secretary of the Treasury is author- ized to pay to the holders of the outstanding bonds surrendered for exchange, out of any money in the Treasury not otherwise appropriated, a sum not greater than the difference between their present worth, computed as aforesaid, and their par value, and the payments to be made hereunder shall be held to be payments on account of the sinking fund created by section thirty-six hun- dred and ninety-four of the Revised Statutes: And provided further, That the two per centum bonds to be issued under the provisions of this act shall be issued at not less than par, and they shall be numbered consecutively in the order of their issue, and when payment is* made the last numbers issued shall be first paid, and this order shall be followed until all the bonds are paid, and whenever any of the outstanding bonds are called for payment in- terest thereon shall cease three months after such call; and there is hereby appropriated out of any money in the Treasury not otherwise appropriated, to effect the exchanges of bonds' provided for in this act, a sum not exceeding one-fifteenth of one per centum of the face value of said bonds, to pay the expensfe of pre- paring and issuing the same and other expenses incident thereto. Sec. 12. That upon the deposit with the Treasurer of the United States', by any national banking association, of any bonds of the United States in the manner provided by existing law, such association shall be entitled to receive from the Comptroller of the Currency circulating notes in blank, registered and counter- signed as provided by law, equal in amount to the par value of the bonds so deposited; and any national banking association now having bonds on deposit for the security of circulating notes, and upon which an amount of circulating notes has been issued less than the par value of the bonds', shall be entitled, upon due appli- cation .to the Comptroller of the Currency, to receive additional circulating notes in blank to an amount which will increase the circulating notes held by such association to the par value of the bonds deposited, such additional notes to be held and treated in the same way as circulating notes of national banking associations heretofore issued, and subject to all the provisions of law affecting such notes': Provided, That nothing herein contained shall be con- strued to modify or repeal the provisions of section fifty-one hun- dred and sixty-seven of the Revised Statutes of the United States, authorizing the Comptroller of the Currency to require additional deposits of bonds or of lawful money in case the market value of the bonds' held to secure the circulating notes shall fall below the par value of the circulating notes outstanding for which such bonds may be deposited as' security: And provided further, That the circulating notes furnished to national banking associations under the provisions of this act shall be of the denominations prescribed by the law, except that no national banking association shall, after the passage of this' act, be entitled to receive from the Comptroller of the Currency, or to issue or reissue or place in circulation, more than one-third in amount of its circulating notes of the denomination of five dollars: And provided further, That the total amount of such notes issued to any such association may equal at any time but shall not exceed the amount at such time of its capital stock virtually paid in: And provided further, That un- der regulations to be prescribed by the Secretary of the Treasury any national banking association may substitute the two per centum bonds issued under the provisions of this act for any of the bonds deposited with the Treasurer to secure circulation or to secure deposits of public money; and so much of an act entitled "An Act to enable national banking associations to extend their corporate existence, and for other purposes," approved July twelfth, eighteen hundred and eighty-two, as' prohibits any na- tional bank which makes any deposit of lawful money in order to withdraw its circulating notes from receiving any increase of its circulation for the period of six months from the time it made such deposit of lawful money for the purpose aforesaid, is hereby repealed, and all otlk acts or parts' of acts inconsistent with .'ie provisions of this slroon are hereby repealed. Sec. 13. That every national banking association having on deposit as provided by law, bonds of the United States bearing in- terest at the rate of two per centum per annum, issued under the provisions of this act, 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 of its notes in circulation as are based upon the deposit of said two per centum bonds; and such taxes shall be in lieu of existing taxes on its notes in circu*ation imposed by section fifty-two hundred and fourteen of the Revised Statutes. Sec. 14. That the provisions of this act are not intended to pre- clude the accomplishment of international bimetallism whenever conditions shall make it expedient and practical to secure the same by concurrent action of the leading: commercial nations of th« world and at a ratio which shall insure permanence of relative value between gold and silver. Approved, March 14, 1900. THE DEMOCRATIC PLATFORM AND CANDIDATE. 515 CURRENCY RECORD OF THE TWO PARTIES. Republican Party Always In Favor of Sound Money — The Demo- crats Always Supporters of Unsound Financial and Currency Schemes. [Extract from speech by Hon. Leslie M. Shaw, Secretary of the Treasury, at College Point, Long Island, July 23, 1904.] No one has a right to claim for the Republican party that all of its adherents have intuitively and primarily been right on every proposition. Neither has it a right to claim that each and all of its political opponents have been intuitively and primarily wrong on all propositions. But the Republican party has the right to claim, and does claim, that the consensus of mature Republican judgment has been reasonably sound and measurably consistent. It also has a right to claim, and does claim, that the consensus of opposing opinion has usually been wrong, and if not wrong primarily it has become wrong after mature deliberation, and that it has seldom been consistent with itself for any great num- ber of consecutive years. In proof of these logical, and I hope not altogether unphilo- sophical, propositions, I have time to refer to the record of the two principal parties on only one general subject. There is no question so essential to the prosperity and commercial advance- ment of a people as sound financial policies. Great Britain, Ger- many, France, and most commercial countries of Europe, have great central government banks, such as the "Bank of England," the "Imperial Bank of Germany," the "Bank of France," etc. These institutions, under appropriate legislative restrictions, issue currency (as distinguished from coin) for the use of the people, and therefore in aid of commerce. EARLY FINANCIAL AND CURRENCY HISTORY. An act drawn by Hamilton, passed by Congress in 1791, and signed by Washington, authorized the organization of the Bank of the United States, but when the charter was about to expire, in 1811, a bill to renew it was defeated. In 1816 another United States bank was chartered, and in 1832 a bill to renew its charter passed both Houses, but was vetoed by President Jack- son. Upon this one veto, more than upon any other single act of his administration, within the ranks of the Democratic party, rests the fame of this patron saint of that party. Having killed what was designed to be something analogous to the Bank of England and the Bank of France, it would not have seemed irregular had he recommended something in its place ; but Gen- eral Jackson recommended nothing. In the absence of a recom- mendation the then Democratic Congress might, with propriety, have evolved a financial scheme, but it did not. i When the Republican party came into power it evolved a plan. Instead of creating a great central government bank patterned after European institutions, it authorized a large number of national banks, placed them under the supervision of the Treas- ury Department, and gave them authority' to issue redeemable currency under appropriate safeguards and restrictions. With- out claiming that the national-banking act is perfect, or that our currency system is free from objection, I think the world unites in the verdict that it is the best system known to man. For its existence the people are indebted to the Democratic party for an aggregate of only 3 votes in the two Houses of Congress. I cite the fact as an illustration that the consensus of mature Republi- can judgment on banking and currency is reasonably sound, and that the consensus of mature judgment of the opposition party on the same great question is both unsound and inconsistent, and also indefinite. DEPOSITS OF GOVERNMENT FUNDS. There being no authorized Government bank during Demo- cratic supremacy in which the revenues of the Government could be appropriately kept, it became necessary to establish subtreas- uries, which was done in 1846. Such credit as is due anyone for the original creation of subtreasuries, for the segregation of whatever revenues the Government may collect, is due the Demo- cratic party, but in criticism of that party I cite the fact that no 516 THE DEMOCRATIC PLATFORM AND CANDIDATE. provision was ever made by a Democratic Congress, and, so far as I can discover, no recommendation was ever submitted by a Democratic President, to autborize tbe deposit of public moneys in any class or kind of banks. In otber words, our opponents developed uo plan whatever, but simply allowed tbe Government to collect Its revenues, and, having thus taken the funds out of circulation; kept them in its strong box out of reach of the people. It is due President Jackson, however, to say that, following his veto of the bill to renew the charter of the Bank of tbe United States, he did deposit public money in State banks, but he did so without any act of Congress authorizing it, and he did it without taking security of any kind. But this was in 1834, before the creation of the subtreasuries. The first and only provision for the return, to the channels of trade, of the money collected by the Government and not imme- diately needed, was passed by a Republican Congress, and fifty- three Democrats voted against the measure, and only three in Its favor. The consensus of Democratic opinion, after fifty years of experience, was manifestly wrong. Having destroyed the United States Bank, and failing to pro- vide a substitute, the Democratic party allowed the country to drift as it would. No act of Congress, until 1861, ever authorized tbe issuance of a single dollar of currency by the Government, and, barring the charters authorizing the two United States banks, no act of Congress prior to 1863 ever authorized the issu- ance of a dollar of currency by any bank. The same act which authorized the issuance of national-bank currency was the first act of Congress that ever placed any restriction upon State banks or industrial corporations or private firms from issuing currency of any kind or character, and in any volume, which the people could be induced to accept. Having no financial policy except a strong box In which the revenues of the Government, when it had any, were to be kept out of reach of the people, the country was allowed to take care of itslf. I suppose the reason for this and for the repeated demands for the repeal of parts or all of the national-banking act is the Democratic fiction against paternalism. The absence of paternalism, as represented in Government supervision of banks, means "wildcat money" of the wildest and fiercest species. The recollection of the experiences of the people under this Democratic no-policy period still seems to be an insurmountable objection within both parties to the issuance even of a limited volume of credit currency by banks directly under the super- vision of the Government, with every possible safeguard, and witb ample provision for its redemption in gold safeguarded and guaranteed by the Government. In other words, the experience in those Democratic times was so appalling, and the embargo upon commerce so great, and the chains which retarded our de- velopment were so heavy, so cruel, and so unbreakable, that the American people, even at this late date, shudder at the suggestion of anything that recalls the past. THE NATIONAL BANKS. The act of Congress under which national banks are chartered, and which authorizes the issuance of national-bank notes secured by a deposit of Government bonds, received the negative vote of 90 per cent of the Democrats in both Houses. The national-banking act taxes out of existence all State and private bank' currency. It levies a 10 per cent tax upon every- thing, except national-bank notes, designed to circulate as money. The opposition, in its platform of 1892, demanded the repeal of this 10 per cent tax, and the consequent return to the nonpaternal policy of letting anybody and everybody issue anything and every- thing that the people can be induced to accept. In harmony with this platform, in 1900, pending the bill to establish the gold standard, the Democrats in the Senate proposed an amendment removing this tax upon "wildcat currency," and supported it 19 to 1. This wa* the position of the Democratic party in 1892. Four years later it denounced the "Issuance of notes intended to cir- culate as money by national banks as In derogation of the Con- THE DEMOCRATIC PLATFORM AND CANDIDATE. 517 stitution," and In 1900 it demanded "the retirement of national- bank notes as fast as Government paper or silver certificates can be substituted for them." These are the last official utterances of* the party on the subject, and represent the attitude of the opposition on the great question of banking and currency. Our philosophical stranger, if still in the country, would possibly cite this in proof of his original deduction that the longer some people study a question the more thoroughly wrong they become. CUBBENCY OF THE WAE PEEIOD. The Republican party, when it came into power, found the Treasury depleted, Government credit practically exhausted, and no banks under Government supervision, and therefore no author- ized and stable currency, as distinguished from coin, in the hands of the 'people. During the Civil War, which immediately fol- lowed Republican accession, the Government, in addition to the issuance of bonds, made a forced loan of $400,000,000 in United States notes, commonly called greenbacks. These notes, though not expressly redeemable in gold, were always recognized by the party responsible for their issuance, and by the business com- munity generally as a debt, for the ultimate redemption of which in that metal the Government stood morally bound. Not being redeemable on demand, these- notes fluctuated in cur- rent value as the prospect of actual redemption appeared more or less remote. Gold, being at a premium, was out of circulation, and the country did its business on a fluctuating currency. EETUEN TO SPECIE PAYMENTS — PARTY RECORDS THEREON. After protracted discussion, the Republican party recognized the necessity of resuming specie payment, and in 1875 passed the well-known resumption act. By this act the Secretary of the Treasury was authorized to sell bonds to replenish the Treasury, and he was directed, from and after January 1, .1879, to redeem these United States notes in coin on demand. The vote by which this resumption act was passed was strictly partisan. Every Republican voted for it and every Democrat against it. To show how even a good and perhaps a great man may reach wrong cqpclusions on questions of the greatest moment, through unfortunate association, I cite the fact that the present Democratic nominee for Vice-President actually voted against the resumption of specie payment. The Democratic national platform the next year demanded the repeal of the resumption act, and, in harmony with the plat- form, the Democratic House, in 1877, actually passed a bill repealing it. The Republican Senate passed a substitute, which was sent to the House, and laid on the Speaker's table until after the resumption act actually went into effect. Shortly after resumption had become an accomplished fact, General Ewing, a leading opposition Congressman from Ohio, sought to amend the bill by inserting a provision denying the Secretary of the Treas- ury the power to borrow money to sustain resumption. General Garfield moved to lay the whole matter on the table, and the motion prevailed against 107 Democratic votes. It thus appears that the intuitive judgment of the opposition on* the subject of resumption of specie payment was wrong at the time the resump- tion act was passed, and that the consensus of mature Demo- cratic judgment became confirmed in its error after the act went into effect and as soon as greenbacks were worth their face in gold. FREE AND UNLIMITED COINAGE OF SILVER. Agitation for the free and unlimited coinage of silver begins as early as 1877, and since that date the sentiment of Congress, in one way or another, has been expressed on no less than ten occasions. Neither party can claim to have been originally united either for or against the proposition, though every vote taken shows a larger proportion of Democrats than Republicans favor- ingj free and unlimited coinage. The bill to repeal -the pur- chasing clause of the so-called Sherman act, for instance, though passed by an opposition Congress and on the recommendation of a Democratic President, nevertheless received the support of 78 per cent of the Rpublicans who votd on the question and only 61 518 THE DEMOCRATIC PLATFORM AND CANDIDATE. per cent of the Democrats who voted. The bill establishing the gold standard in 1900 had an aggregate vote in its favor of 235, only iJ of whom were Democrats, and an aggregate of 179 votes against it, only 1 of whom was a Republican ; while a fr^e silver amendment to the bill was supported 23 to 2 by the Democrats of the Senate. * Thus gradually the sentiment in favor of the single gold standard within the Republican party increased, and the senti- ment in the opposition party correspondingly diminished. When the issue was fairly presented in 189G, a new alignment occurred. Those who intuitively recognized the logical impossibility of the maintenance of parity between coins of different metals when both are coined free of expense to the owner of the bullion, and in unlimited quantity, whatever the ratio, together with those who by study and research reached the same conclusion, and those who profited by the historic fact that no country ever suc- ceeded in maintaining, for a period of six months at a time, the parity in metallic value of coin of different material, coined freely and unlimitedly, gradually allied themselves with the Re- publican party ; while those whose intuitions were wrong, and whose research confirmed them in their error, allied themselves with the opposite party. This new alignment may or may not prove permanent, but it tends to establish one of the propositions which I laid down in the beginning, that the consensus of mature judgment of the Republican party is usualiy rignt, and that the consensus of mature judgment of the Democratic party is usually wrong. On this subject the Republican party wabbled for a time, and stumbled once or twice, but, as in other instances, ultimately regained its equilibrium. The Democratic party, on the contrary, after wabbling for a time, and stumbling frequently, finally expressed its mature judgment in its Chicago platform of 1896, which it re-affirmed in 1900, and neither retracted nor apologized for it in 1904. We know -what we mean when we speak of an honest and staple currency.— -From President Roosevelt's speech of acceptance. < m Protection alone insures American labor against European pauper wages.— Former Senator Casey, in the American Economist. No one suffers so much from cheap money as the farmers and laborers; they are the first to feel its bad effects and the last to recover from them.— Maj. McKlnley's letter of acceptance, 1896. Prosperity has come at home; the national honor and interest have been upheld abroad. — From President Roosevelt's speech of acceptance. The civilized world substantially protects itself, thus forcing us to protect ourselves. — Hon. D. B. Henderson, in the American Economist. We shall altoays need protective duties as long as our people insist upon a higher standard of wages and scale of living than prevail abroad. — Jas. M. Swank. All I ask is a square deal for every man. Give him a fair chance. Do not let him wrong any one, and do not let him be wronged.— President Roosevelt at Grand Canyon, Arizona, May 0, 1003. The dollar paid to the farmer, the wage-earner, and the pen- sioner must continue forever equal in purchasing and debt-paying power to the dollar paid to any Government creditor. — Maj. Mc- Klnley to Notification Committee, 1806. We have prospered marvelously at home. As a nation we stand in the very forefront in the giant international competition of the day. We can not afford by any freak or folly to forfeit the position to which we have thus triumphantly attained.— President Roosevelt at Minneapolis, April 4, 1008. THE DEMOCRATIC PLATFORM AND CANDIDATE. 519 Commerce of the gold and silver standard countries of the world, and commerce of United States with each country. GOLD STANDARD COUNTRIES. Population. Total commerce. Commerce with United States. Total. Imports from U. S. Algeria 4,739.000 45,405,000 6,694,000 3,358.000 4,560,000 37,000 5,592,000 1.583.000 3,744,000 313,000 1,573,000 2,465,000 35,736,000 1,204,000 9.734,000 38,962,000 58,549.000 41,961,000 154,000 297,927,000 32,475.000 45,862,000 5,347,000 2,263,000 4,610,000 5,913,000 141,000.000 2.744,000 2,536,000 5.199.000 3.356,000 24,932,000 959,000 80,372,000 7,590.000 $125,032,000 737,688,000- 831,092,000 345.457,000 538.881,000 2,591,000 439,432,000 68,989,000 33.762,000 10,076,000 136,675,000 236.923.000 167,663,000 15,840.000 160,310,000 • 1,668,697.000 2,451,186,000 3,950,6^9,000 (b) 37,083,000 755.354,000 626,895.000 262,648.000 1,607.872,000 123,466,000 3U,000,000 127,026,000 697,829,000 84,308,000 22,570,000 239,759,000 386,544,000 176,206,000 58,221,000 2,517,950,000 66,064,000 $550,000 35,697,000 70,387,000 21.592,000 46,296,000 1,326,000 182.601,000 23,872,000 193,000 4,989,000 88,472,000 23,360,000 11,694,000 3,171,000 6,799,000 129,893.000 319.413,000 733,491,000 37,083,000 35,051,000 74,905,000 64,172.000 137.187,000 3,891,000 5,399,000 139,000 20,049,000 1,000 214,000 2,792,000 32.924,000 2.714,000 4,152,000 $383,000 Austria-Hungary 27,569,000 53,237,000 British Africa (a) British Australasia British Honduras British North America. . British West Indies 21,557,000 30,702,000 731,000 131.711,000 12,666,000 58,000 1,697,000 Cuba 25,714,000 19,157.000 Dutch East Indies 965.000 1,823.000 Egypt 974,000 France 81.993.000 Germany 212,534,000 617,859,000 10,840.000 India and Ceylon Italy 4,264.000 40,740.000 24,229.000 94,220,000 3,333,000 2,573,000 139.000 17.984,000 1,000 181,000 2,792.000 S witzerland 11,890,000 354,000 2,148,000 Philippine Islands 17.807,000 3,944.000 Total #.... 929,448,000 19,749,818,000 2,142,196,000 1,460.962,000 GOLD STANDARD COUNTRIES ON A PAPER BASIS. 4.794,000 14.334,000 3.051,000 4,000,000 2,434,000 1.294,000 5,429,000 18,618,000 2,445,000 610,000 $272,638,000 290,611,000 116,182.000 29,570,000 45.259,000 18,260,000 90.753.000 342.045,000 26,522.000 8,211,000 $22,525,000 82,739,000 9.029,000 7,733,000 1.670,000 3,084.000 5,107,000 25.913,000 9,347,000 5,061,000 $12,838,000 Brazil 11,156.000 Chile 5.254,000 2,923,000 561.000 Haiti 1,956,000 4.308.000 Spain 22,446.000 Venezuela 2,737.000 Santo Domingo 1,700,000 Total 57,009,000 1,240,051,000 172,208,000 65,879,000 Total gold standard 9^,457,000 20,988,869,000 2.314,404,000 1,526.841.000 SILVER STANDARD COUNTRIES. 1,816.000 407,253,000 775,000 12.000,000 13,545,000 9.500.000 1,007.000 5,000,000 572,000 $16,663,000 339.488,000 4.029.000 10.886,000 141,804,000 36.946,000 6.550,000 36,885,000 271.423,000 $79,000 34,644,000 2,106.000 257.000 96,490,000 $77,000 China 18,957,000 Honduras 970,000 257,000 39,017,000 1,452.000 114.000 16,850,000 868,000 106,000 Straits Settlements 833,000 Total 451,468.000 864,674,000 151,992,000 61,085,000 SILVER STANDARD COUNTRIES ON A PAPER BASIS. Ecuador 1,204,000 1.647,000 500.000 636,000 $15,840,000 10,152,000 5,428.000 6.057,000 $3,171,000 3,318,000 3.564.000 19,000 $1,348,000 Guatemala 1.128,000 1,365,000 Paraguay 15,000 Total .■ 3,987,000 37,477,000 10,072.000 3.856.000 Total silver standard couutries 455.455,000 902.151,000 162.064.000 64.941,000 520 THE DEMOCRATIC PLATFORM AND CANDIDATE. Prodmot of gold and silver in the United States from 1792 to 1844, and annually since. [From the report of the Director of the Mint.] Years. April 2, 1792-July 31, 1834. July 81, 1834-Dec. 31, 1844. 1846 1846 1847 1848 1849 1851. 1852. 1863. 1854. 1855 1856. 1857- 1858. 1858. 186) 1861. 1862. 1863. 1864 1865. 1866 1867. 1868. 1869. 1870. 1871. 1872. 1873 1874. 1875. 1876. 1877 1878. 1879 1880. 1881. 1882 1888. 1884. 1885. 1886. 1887. 1888. 1889. 1890. 1891 1892. 1898. 1894 1895. 1896. 1897 1898. 1899 1900 1901. 1902 Total. Gold. Silver (coining value). •14 ,000,000 ,500,000 ,0»8,000 ,140,000 889,000 ,000,000 ,000,000 ,000,000 ,000,000 ,000,000 ,000,000 ,000,000 ,000,000 ,000,000 ,000,000 ,000,000 ,000,000 ,000,000 ,000,000 ,200,000 ,000,000 ,100,000 ,225,000 ,500,000 ,725,000 ,000,000 ,500,000 ,000,000 ,500,000 ,000,000 ,000,000 ,500,000 ,400,000 ,900,000 ,900,000 ,200,000 ,900,000 ,000,000 ,700,000 ,500,000 ,000,000 ,800,000 ,800,000 ,000,000 ,000,000 ,175,000 ,800,000 ,845,000 ,175,000 ,000,000 35,955,000 39,500,000 46,610,000 53,088,000 57,368,000 64,463,000 71,053,000 79,171,000 78,667,000 80,000,000 55, 55, 55, 50, 50, 46, 43, 39, 40, 46, 53, 53, 51, 48, 49, 50, 43, K, 36, 33, 33, 2,543,752,000 Insignificant. $250,000 50,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 50,000 50,000 60,000 60,000 50,000 500,000 100,000 150,000 2,000,000 4,500,000 8,500,000 11,000,000 11,250,000 10,000,000 18,500,000 12,000,000 12,000,000 16,000,000 28,000,000 28,750,000 35,750,000 37,300,000 31,700,000 38,800,000 89,800,000 45,200,000 40,800,000 89,200.000 43.000,000 46,800,000 46,200,000 48,800,000 51,600,000 51,000,000 53,350,000 69,195,000 64,646,000 70,465,000 75,417,000 82,101,000 77,576,000 64,000,000 72,051,000 76,069,000 69,637,000 70,384,000 70,807,000 -74,533,000 ^71,888,000 71,758,000 1,878,477,000 We have kept of the same mind for a sufficient length of time to give oar policy coherence and sanity.— -From President Roose- velt's speech of acceptance. I helieve in the reciprocity of Blaine and McKinley, reciprocity in non-competitive goods, but not in reclnrocity in competitive goods, which is simply free trade.— Hon. Andrew J. Volstead, in Congress, Feb. 8, 1904. When we legislate for Alaska we are acting within the clearly granted authority of the Constitution, and when we legislate for the Philippines we are likewise within the scope and plain purpose of the Constitution*— Hon. C. VV. Fairbanks, in XI; S. Senate, Febru- ary 23, 1008. THE DEMOCBATIO PLATFORM AND CANDIDATE. 521 Value of gold coin and bullion imported into and exported from the United States, fiscal years since 1825. Year ending Imports Exports Excess of imports over exports Excess of exports over imports September 30— 1825 % 529, 277 678,740 1,110 448 808.220 810 606 821.146 932,029 716.686 611,852 3,766,172 2,325 196 7,231,862 2,431,814 11.674*83 1.164,580 3,085.157 1.269 449 757.294 17,066,437 1,613.304 818,850 910.413 21574,931 3.408,7i 5 4.06«. 647 1.770.7(6 3,569.090 8.658.059 2.427,356 3,031,964 1,092,802 990.305 6.654,636 11,506,068 2.125,397 2 508,786 42,291,930 I3.9n7.011 5,530,538 11,176,769 6.498,228 8,196.261 17,024 866 8,737.443 14,132,568 12,056,950 6,883,561 8,717,458 8.082.447 19 503 137 13.090.793 7 992,709 20,240,284 13,330,215 5,624,948 80,758,396 100,031,259 34,377,054 17,734,149 22,831,317 26.691,096 20,743.349 42,910.601 43,934.317 10,284,858 12.943,342 18,232,507 49.099.454 21.174.881 72 449,119 30,381.760 33,525,065 85.014,780 120 391,074 88.954,603 44,573,184 66,051,187 52,021,254 44,982,027 $315,672 1,056,088 1,872,489 1,035,084 1,573.268 1,422,664 2,979 529 2,049,406 889,505 690.180 1,355,280 647,455 3,213,735 1.213.204 4,800,668 3,703,373 2.589,869 2,304, 756 407,687 1 366,521 3,055,425 2,053,199 1,037 921 11.071,197 1.972,233 4.560,627 22.830,913 40,073,979 25,442,858 40,470,260 55.109,215 45,000,977 65,232,653 50.002 804 61,108,053 58 446,039 97 423 973 35 439,903 62' 162,838 100*661,634 5S'381,033 71 197,309 39 028,627 73'396,344 36 003,498 33'635,902 66 086,208 49 548,760 44 866,715 34 042,420 66*980 977 31 '177,050 26,590,374 9 204 455 4'5S7,614 3' 639, 025 2 505 132 32'587,880 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 50,195,327 108.680,844 76,5-78,061 66,408,481 112,409,947 40,361,580 15,406,391 37,522,086 48,266,759 53,185,177 48,568,950 47,090,695 $213,605 1826 $377,348 1827 762 041 1828 826 864 1829 756.592 601 518 1830 1831 2 047 500 1832 1,332.720 1833 277,653 1834 3,075.992 969,916 6,684,407 1835 1836 1837 781,921 1838 10.461,679 1839 3,636,088 618,216 1840 1 1841 2,320 420 1842 1,547 462 1843 16,658 750 246.783 1844 1845 2,236.675 1846 1,142 786 1847 20,537,010 184S 7,662,442 1849 2,096,414 1850 2 783 921 1851 19 207 823 1852 36,415,920 23 015 M)2 1853 1854 37 438 296 1855 54,016 418 44,010,672 68 578 017 1856 1857 1858 38.436,736 58,982.656 56,937,258 1859 1860 a 1801 14,867,967 1862 21,632 892 1803 56,632.300 1864 89,484 865 1865 51,882,805 1866 63,001,048 1867 22 001.761 1868 64 658,901 21,870,930 1870 21,579.012 1871 69,802,647 1872 40,831,302 1873 36,174,268 1874 14,539.283 1875 53,284,184 1876 23,184,341 1877 844,140 1878 4,125,760 1,037,334 77,119,371 97,466,127 1,789,174 6,133,261 1879 .... 1880 1881 1882 , 1883 .. 1884 18,250,640 1885 18,213,404 1886 22,208,842 1887 >... 33,209,414 25,558.083 1888 1889 49,667,427 1890 4 331 149 1891 68,130,087 1892 495,873 1893 87,506,463 1894 4,528,942 1895 30,083,721 1896 78,884,882 1897 44,653,200 104,985,283 61.432,517 1898 1899 1900 3,693,675 1901 12,866.010 3,452,304 1902 1803 2,108.568 Our policy is one of fair aud equal justice to all men, paying no heed to whether he is rich or poor nor heeding? his race, his creed or his birthplace. — From President Roosevelt's speech of accep- tance. 522 COMMERCE BETWEEN THE UNITED STATES AND CANADA. COMMERCE BETWEEN THE UNITED STATES AND CANADA, 1850 to 1904. Values of merchandise imported into and exported from the United -States in its trade with the British North American Provinces from 1850 to 1872, inclusive, and tbith the Dominion of Canada from 1873 to 1903, inclusive. (Newfoundland not included after 1872.) [Official figures from Bureau of Statistics.] Year ending Exports to Canada. Imports from Canada. Excess of— June 30— Exports. Imports. 1850 Dollars. 9.515.991 11,771.092 10.229,608 12,432,597 24,073,408 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 29,411.454 32.534.984 41.827,904 34,547,219 33.375,719 37,418,315 37,146,682 29,604,385 29,460.257 37.903,322 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 56,664,094 52,854.769 59,687,921 64,928,821 83,714,086 87,974.961 95,319,970 105,789.214 • 109.642.993 123.266,788 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 23.572.706 22.724,489 18511,025 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 37,175.254 34,173,586 27.867,615 28,805,964 24,164,755 25.044,811 25.719.771 32,988.564' 37.684.101 50,775.581 44.294,158 38,399,835 36.695,685 37,304.036 37,847.277 42,924.554 42,738.074 39,042,977 39,087,782 34,954.203 37,777,463 30.790.916 36.574.327 40,887,565 40,309,371 31.870,486 31,220,967 39,369,074 42,482,163 48,076,124 54,781.418 Dollars. 4,336,491 6.490.374 4.760. 163 5.905.038 15,288.996 12.62::. 519 7,748,735 2,029.566 7.819,690 8,821,929 Dollars. 1851 1852 1853 1854 1855 a 1856 a 1857 a 1858 a A 1859 a : 1860 a 876 868 1861 a 47,976 1862 a 2.062.045 10,135.028 1863 a 1864 a. 3,034,112 1865 a 4 485 001 1866 a. 23 CO 1 .) HH 1867 4,023 703 1868 2 180 602 1869 5,912,295 1870.... 10,926,074 1871 265,961 1872 6,935.476 1873 4,640.270 7.654,318 6,679,604 4,569,755 - 13.253.560 12,101,871 3,884,614 1875 1876. 1877 \ 1879 1880 3,528.307 1881 819,821 1882 14,275,178 1883 i 22, 952 5,906.361 1,549,949 1885 3,841,236 1887 2 859 167 7,042,171 1889 2,130,513 1.239.131 1891 940,004 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 63.307,051 61,566,869 68.485,370 1893 1895 1897 1899 1900 1901 1902 1903 (a) Period of reciprocal trade. There has been considerable debate as to whether the Con- stitution follows the flag. No matter how diverse and conflicting our opinions may be on this subject, there is one opinion that we all entertain, and that is that the American school-house follows the flag.— Hon. C. VV. Fairbanks, in IT. S. Senate, February 22, 1002. Our experience in the past has shown that sweeping: revisions of the tariff are apt to produce conditions closely approaching panic in the business world. Yet it is not only possible, but emi- nently desirable, to combine with the stability of our economic system a supplementary system of reciprocal benefit and obligation with, other nations. — President Roosevelt's Annual Message, Fifty- seventh Congress, first session. THE DEMOCRATIC PLATFORM AND CANDIDATE. 523 Coinage of the United States mints from 1846 to 1902. [From the report of the Director of the Mint.] Calendar year. Total coinage. Gold. Silver. Minor. Total. 1846. 1847. 1848. 1849. 1850. 1851. 1852. 1853. 1854. 1855. 1856. 1857. 1858. 1859. 1860. 1861. 1864. 1865. 1867. 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. 1897. 1898. 1899. 1900. 1901. Dollars. 4,034.177.50 20,202.325.00 3,775,512.50 9,007,761.50 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 83,395.530.00 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 32,951,940.00 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 23,991,756.59 27,773.012.50 28,945,542.00 23,972,383.00 31,380.808.00 21,413.931.00 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 77.985.757.00 111,344,220,00 99,272,942.50 101.735,187.50 47,184,932.50 Dollars. 2,558,580.00 2,374,450.00 2,040,050.00 2,114,950.00 1,866,100.00 774,397.00 999,410.00 9,077,571.00 8,916,270.00 3,501,245.00 5,142,240.00 5,478,760.00 8,495,370.00 3,284,450.00 2,259.390.00 3,783.740.00 1,252,51650 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 15,347,893.00 24,503,307.50 28,393,045.50 28,518,850.00 27,569,776,00 27,411,693.75 27,940,163.75 27,973,132.00 29,246,968.45 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 9,200,350.85 5,698.010.25 23,089,899.05 18.487,297.30 23,034,933.45 26,061,519.90 36,345,321.45 30,838.46075 30,028,167.20 Dollars. 41,208.00 61,836.69 64,157.99 41,984.32 44,467.50 99,635.43 50,630.94 67,059.78 42,638.35 16,030.79 27,106,78 178,010.46 246,000.00 364,000.00 205,660.00 101,000.00 280,750.00 498,400.00 926,887.14 968,t>52.86 1,042,960.60 1,819,910.00 1,697,150.00 963,000.00 350,325.00 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 1,604,770.41 796,483.78 191,622.04 343.186.10 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 1,837.451.86 2,031,137.39 2,120,122.08 2,447,796.17 Dollars. 6,633,965.50 22,638.611.69 5,879,720.49 11,164,695.82 33,892,306.00 63,488,524.93 57,896,228.44 48,522.539.78 34,577,870.85 32,905,243.79 42,027,115.26 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 48,546,803.00 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 61,375,438.00 60,379,150.66 65,318.615.23 58,194,022.64 61,054,882.84 58,053,302.60 48,389,780.92 66,934,749.00 89,184,688.77 66,196,798.31 70,975,677.98 96,041,882,35 102,144,625.59 139,243.191.76 137,649,401.34 134,693,770.33 79,660,895,87 Republican reciprocity is reciprocity in non-competing articles and in nothing; else.— Hon. John Dalzell, in Congress, March 1, 1004. The national credit is of too paramount importance and noth- ing should be done to tarnish or impair It.— Hon. W. McKinley, in House of Representatives* April 15, 1878. The biggest corporation, like the humblest private citizen, ntust be held to strict compliance with the will of the people as expressed in the fundamental law. — President Roosevelt at Cin- cinnati, Ohio, September 20, 1002. Remembering those Republican promises and their fulfillment In the years since, calling to mind the unfilled Democratic prom- ises and the bitter years of 1803-1806, what will you gain by vot- ing the Democratic ticket in 1904? — Representative Chas. Dick, of Ohio, in Congress, Jan. 5, 1904. 524 QOLO AND SII/VKK PRODUCTION OF THE WORLD Production of gold and silver in the world since the discovery of America, [From 1493 to 1885, from a table of averages compiled by Dr. Adolph Soetbeer; Btnoe the latter date, the annual estimate of the Director of the Mint.] Percentage Golc Silver of production. Period. Total for period. Total for period. By weight. Ounces.flne Value. Ounces, fine. Coining value. Gold. Silver. Dollars. Dollars. 1493-1520.... 5,221,160 107,931 .000 42*809,400 54.703.000 11.0 89.0 1521-1544.... 5,524,656 114,806,000 69.598.820 89.980. 000 7.4 92.6 1545-1560.... 4,377,544 90.492,000 160.2H7.04O 207.240.000 2.7 97.3 1561-1580.... 4.398.120 90,917,000 198.578.500 248.990.000 2.2 97.8 1581-1600.... 4,745.340 98,095,000 269.352.700 348.254.000 1.7 98.8 1601-1620.... 5,478.360 113.248,000 271.924,700 351.579.000 2.0 98.0 1621-1640.... 5.336.900 110.824,000 858.084,800 327,221.000 2.1 97.9 1641-1660.... 5,639.110 116.571.000 235.530.900 304.525.000 2.3 97.7 1661-1680.... 5.954,180 123,084.000 210.691,000 280.166.000 2.7 97.3 1681-1700.... 6.921.895 143,088.000 219.841,700 284.210,000 3.1 96.9 1701-1720.... 8.243.260 170.403.000 228.650,800 295.629,000 3.5 96.5 1721-1740.... 12.268,440 253,61 1 .000 277.261,600 358.480.000 42 95.8 1741-1760.... 15.824.230 327.116.000 342,812.235 443.232.000 4.4 95.6 1761-1780.... 13,313,315 275.21 1 .000 419.711.820 542.658.000 3.1 96.9 1781-1800.... .11.438.970 236.464.000 565.235.580 730.810.000 2.0 98.0 1801-1810.... 5.715.627 118.152.000 287.469.225 371.677.000 1.9 98.1 1811-1820.... 3,679,568 • 76.063.000 173,857,555 224.786.000 2.1 97.9 1821-1830.... 4.570.444 94.479.000 148.070,040 191.444.000 3.0 97.0 1831-1840.... 6.522,913 134.841.000 191.758,675 247.930.000 3.3 96.7 1841-1850.... 17.605,018 363.928.000 250.903,422 342.400.000 6.6 93.4 1851-1855.... 32.p51.621 00:2. 566, 000 142.442,986 184.109,000 18.4 81.6 1850-1860.... 32,431.312 670,415.000 145,477,142 188.4)98.000 18.2 81.8 1861-1865.... 29,747,913 614,944,000 177,009,862 228.801 .000 14.4 85.6 1866-1870.... 31,350,430 648.07 1,000 215.257.914 278,313.000 12.7 87.3 1871-1875.... 27,955.008 577.883,000 316,585.009 409.322.000 8.1 91.9 1876-1880.... 27.715.550 572,931 ,000 393.878,009 509.856.000 6.6 93.4 1881-1885.... 23,973,773 495,582,000 400.019,722 594,773.000 5.0 95.0 1886-1890.... 27.306.411 564,474,000 544,557,155 704.074.000 4.8 95.2 1891-1895.... 39.412.823 814,736.000 787.906.050 1,018,708,000 4.8 95.2 1896 9.783,914 202.251.000 157,061.370 203.069,200 5.9 94.1 1897 11,420.068 236,073.700 160.421.082 207.413.000 6.7 93.3 1898 13.877,800 286,879,700 169,055,253 218.576,800 7.6 92.4 1899 14.837.775 306,724.100 168.337.453 217,648,200 8.1 91.9 1900 12.315.135 254.556.300 173.591.364 224.441,200 6.6 93.4 1901 12.692,300 202.373,300 173.011,283 223.691,300 6.8 93.2 1902 14,313,660 295,889.600 166,955,639 215,861,800 7.9 92.1 Total.... 513,964,609. 10,624.093,300 9,168,497,971 11.854,213,500 5.3 94.7 Production of gold and silver by principal countries, in 1902. [Includes all countries having a product of more than $1 ,000,000 of either gold or silver.] Gold. Silver. Country. Value. Coining Value. . Commercial value. North America: $80,000,000 10,153,100 20,741,200 39,023,700 81,578,800 22,533,400 2.171,300 62,500 5,300 10,200 $71,757,600 77,804,100 5,564,500 $29,415,000 31,893,000 2,281,000 10,377,100 205,200 2,432,200 7,399,000 1,246,800 4,784,100 1,409,500 16,798,600 4,611,600 2,297,000 4,253,800 Europe: " Russia 84,100 997,000 3,033,000 Italy 511,100 1,961,100 577,800 South America: Bolivia 4,700 575,200 2,522,600 1,994,600 1,808,600 2,420,200 2,32^,100 2,001,900 1,287,000 8,731,800 3,500,000 9,588,100 1,027,100 6,886,100 Chile 1,890,400 941,600 Guiana (British) 5,513,700 1,255,800 505.000 2,260,200 514,800 Asia: 207,000 East Indies (British) . . . THE DEMOCRATIC PLATFOBM AND CANDIDATE. 525 T3 8 3 £ o 8 s o t ft, P ft d fc u 1) b. d 1 8 C CI » £ l.lll OS i-i'-; ed «M « CO lft CO i-i i-i i-i 8883 CO CO 00 35 i-Tadotd 38888888 ■**<" ei 5> co si »o as" ift t-ao^OM cm 5838385 "ooooqo'oq'q; 00000*000; ' — <* o od i ooon - c • £88S3g3; ;383388|||888 !lOOJNi>r-l 0* W lO d Cfl * - s d.S . csW2j< aj cs <-> ^ (- a> 3fcO 526 passport pkiviu r,i:s ONIPORM. PASSPORT PRIVILEGES UNIFORM. Statement by Con»crcNRnmii William* at St. I.oiiIn Wholly MiHleadlng:. Hon. John Sharp Williams said in his speech at St. Louis: "Our fellow-citizens of Russian birth and Jewish extraction who cannot procure from the State Department a passport to revisit Knssia without being cautioned that they will not be pro- tected there will read this part of the Republican platform, con- sidering its source, with singular astonishment." "This statement is wholly misleading. When an American citizen of Russian origin receives a passport from the State Department he receives a notice showing what are the provisions of Russian law liable to affect him, in order that he may be fore- armed not to incur danger through ignorance. An American citizen of German origin receives a similar notice as to German law when a passport is granted to him ; a citizen of Austrian origin receives one as to Austria ; of Turkish origin as to Turkey ; of Portuguese origin as to Portugal ; of Italian origin as to Italy, and so on for all countries which have laws liable to affect a naturalized American citizen when he returns. Mr. Williams's statement is disproved by Document No. 590, LVIIth Congress, first session. This was the resolution of Repre- sentative Goldfogle, of New York, calling upon the Secretary of State to state (1) whether American citizens of Jewish faith were prevented from entering Russia, and (2) whether Russia had any regulations applying especially to the exclusion of Ameri- can Jews. Secretary Hay's reply, printed in this document, said : "The second question may be categorically answered in the negative. Such discrimination, if it were made, would call forth immediate action of protest from this Government. "This department has no information remotely indicating that American Jews stand upon a footing different from that occupied by the Jews of other countries in the administration of Russian law. "The exclusion of naturalized citizens of Russian origin and of Jews from Russia was thus commented upon by Secretary Olney in his report to the President for the year 1896: "The published correspondence for a number of years back ha.3 shown the persistence of the United States in endeavoring to ob- tain for its citizens, whether native or naturalized, and irrespective of their faith, the equality of prvilege and treatment stipulated for all American citizens in Russia by existing treaties. Holding to the old doctrine of perpetual allegiance; refusing to lessen its authority by concluding any treaty recognizing the naturalization of a Russian subject without prior imperial consent; aserting the extreme right to punish a naturalized Russian on return to his na- tive jurisdiction, not merely for unauthorized emigration, but also specifically for the unpermitted acquisition of a foreign* citizenship; and sedulously applying, at home and through the official acts of its agents abroad, to all persons of the Jewish belief, the stern re- strictions enjoined by the Russian law, the government of Russian takes ground not admitting of acquiescence by the United States, because at variance with the character of our institutions, the sentiments of our people, the provisions of our statutes, and the tendencies of modern international comity. "Under these circumstances conflict between national laws, each absolute within the domestic sphere and inoperative beyond it, is hardly to be averted." "Since this report the position of the department has not changed, and its efforts to secure uniform treatment for Ameri- can citizens in Russia, begun many years ago, have continued, although they have not been attended with encouraging success. "The Department of State now sends to all persons of Russian birth who receive passports an unofficial notice showing what are the provisions of Russian law liable to affect them, in order that they may not incur danger through ignorance. In transmitting a copy of this notice to the Ambassador of the United States at St. Petersburg, for his information, he was instructed on February 15, 1901, as follows: The State Department grants to every American citizen, native or naturalized, Christian or Jew,* the same passport, and insists that all foreign governments shall accept it is prima facie proof PASSPORT PRIVILEGES UNIFORM. 527 that the person it describes is a citizen of the United States and entitled to protection as such. Any statements, therefore, that Jews are refused passports or that when they receive passports they are notified that they will not be protected in any foreign country is absolutely without foundation in fact. For the past four years the State Department has furnished every American citizen of foreign birth who receives a passport with an unofficial statement showing the general provisions of the law of the country of his birth which may affect him if he re- turns, and which, therefore, it is important for him to know be- fore he goes abroad. Before these notices were issued naturalized citizens frequently put themselves in a dangerous position through ignorance, and complained that had they known what the laws were which would be likely to affect them they would have avoided danger or taken steps to overcome it ; but there can be no ground for such complaint now. When a Jew receives one of these notices it is because he was born abroad and not because he is a Jew. The State Department requires no man to state his religion and never knows that the applicant for a passport is a Jew, unless he volunteers the information. In order that the notices sent to naturalized citizens with their passports might not possibly be construed into meaning that this Government was disposed to relax its equal protection to all American citizens traveling abroad, Secretary Hay sent the fol- lowing instruction to every American minister as soon as the no- tices were prepared, the instruction to the Ambassador at St. Petersburg being quoted as an example : "The inclosed notice to American citizens formerly subjects of Russia who contemplate returning to that country the depart- ment is sending - to all persons born in Russia who receive pass- ports. Tt is sent to you merely for your information, and you are instructed that it is not intended to mean that there has been any abatement on the part of this Government in its policy of protecting 1 equally naturalized and native born Americans during their travels or sojourn abroad, as the law requires. Nor does' the notice fore- shadow any mitigation of such dissent as this Government may have expressed to the laws or regulations of Russia which may deny equality of treatment to all lawabiding citizens, regardless of their place of birth." It is also a standing instruction to each American minister and consul to protect every American Jew from unjust molestation, and this Government's attitude towards the Russian Government's position on this subject is one of permanent and oft-repeated protest. Indeed, there has never been a case brought to the State De- partment's attention of the arrest or ill-treatment of an American Jew in Russia that interposition in his behalf has not been made. As recently as June 13, 1904, our Ambassador at St. Petersburg was again directed to reopen the question and to present the House resolution of April 21 to the Russian Government as evidence of the popular support in this country of this' Government's position, and the Secretary of State has over and over again pressed the matter upon the attention of the Russian Ambassador at Wash- ington, presenting it anew on July 1 of the present year. The Democratic platform trades upon Republican measures in many of its features. For example, it pledges the party to insist upon equal protection abroad of all American citizens, whether native or naturalized, and demands that negotiations be begun to secure equal treatment of all Americans from those foreign gov- ernments which do not now accord it. On March 27, 1899, Secretary Hay sent a circular instruction to all the diplomatic and consular officers of the United States, in which he said: "This Government does not discriminate between native-born and naturalized citizens in according them protection while they are abroad, equality of treatment being required by the laws of the United States (Sees. 1999 and 2000 R. S.)," and later In the same circular: "It is not to be understood by this that natur- alized American citizens returning to the country of their origin are to be refused the protection of a passport. On the contrary, full protection should be accorded to them, until they manifest an effectual abandonment of their residence and domicile In the United States." (See Foreign • Relations of the United States, 1902, p. 1.) These ordeTS to our agents abroad have been repeated 528 PASSPORT PRIVILEGES UNIFORM. again and again, and are as well known to them as any other fundamental rule of conduct laid down for them. Sections 1999 and 2000 of the Revised Statutes of the United States to which Secretary Hay alludes declare that the right of expatriation is an inherent right of all men, and that "all natur- alized citizens of the United States, while in foreign countries, are entitled to and shall receive from this Government the same protection of persons and property which Is accorded to native- born citizens." Both of these laws were passed In 1868 by a Re- publican Congress. The platform also says : "We demand that all over the world a duly authenticated passport issued by the Government of the United States shall be proof of the fact that he Is an American citizen and shall entitle him to the treatment due him as such." In 1897, when John Sherman was Secretary of State, there was printed by the State Department for its own use and that of American diplomatic and consular officers a handbook entitled "The American Passport," in which on page 106 the following language occurs: "A passport is prima facie evidence that the person holding it, while traveling abroad, is a citizen of the United States; and the agents of foreign governments are ex- pected to so receive it." This merely stated a standing rule as old as the passport itself and insisted upon again and again by Republican Secretaries of State. Yon cannot get consumers through the mints; yon get them through the factories. — MaJ. McKinley to delegation of farmers, Aug. 24, 1896. Every dollar sent ahroad to purchase goods that we can pro- duce at home makes us a dollar the poorer.— II. K. Thurber, in the American Economist. Protection brings together diversified Industries which never fall to vastly Increase the personal intelligence, industry, and wage earnings of the people.— lion. Justin S. Morrill. The mechanism of modern business Is tremendous in Its size and complexity, and ignorant intermeddling with it wonld be dis- astrous. — President Roosevelt at Cincinnati, Ohio, September 20, 1902. I believe It Is a good deal better to open the mills of the United States to the labor of America than to open the mints of the United States to the silver of the world MaJ. McKinley to his comrades of the 23d Ohio Regiment, at Canton, August 12, 1896. The construction of the canal Is now an assured fact; but most certainly it is unwise to entrust the carrying out of so momentous a policy to those who have endeavored to defeat the whole under- taking.— President Roosevelt's speech accepting 1904 nomination. We ought to let the tariff alone; we ought to defend It against all comers for the good of the nation. We are doing more than well and need not hunt for disaster. That will come In dne time. — Hon. Thos. B. Reed, in the North American Review for Decem- ber, 1902. Those foreign countries which have adopted protection have, in the elements by which you have been accustomed to test the pros- perity of a nation, improved in a greater ratio and more rapidly than we have orirselves; and I have also to point out that this ten- dency, which has become so manifest in recent years, is likely, as every sensible man of business knows, to be accentuated as time goes on.— Hon. Jos. Chamberlain, at Liverpool, Oct. 27, 1903. We ara winning headship among the nations of the world be- cause our people art able to keep their high average of Individual citizenship and to show their mastery in the hard, complex, posh- ing life of the age. There will be fluctuations from time to time In our prosperity, but it will continue to grow Just so long as we keep up this high average of individual citizenship and permit it to work out its own salvation under proper economic legislation— President Roosevelt at Minneapolis, April 4, 1903. SPEECH OF HON. WM. TENNINCS BRYAN. 529 SPEECH OF HON. WM. JENNINGS BRYAN At Chicago, April 23, 1904, on Judge Parker and the Albany Platform. "As it is somewhat unusual for a political speech to be made as this one is to-night, let me preface my remarks with an explanation. I have hired this hall and I introduced myself because I do not care to speak under the auspices of any club or organization which is committed to any particular aspirant for office. My concern is not about the name or the personality of the nominee, but about the principles for which the Democratic party is to stand. While many of the papers seem to assume that the contest for the Democratic nomination is neccessarily between Judge Parker and Mr. Hearst, and that every Democrat must either be for one or the other, such a position is illogical and without foundation. "Those who are classed as reorganlzers— and by that I mean those who would carry the party back to the position that it occupied under Mr. Cleveland's Adminstiration— are not entirely agreed among them- selves as to the proper candidate upon whom to concentrate their votes, and so those who are in sympathy with the spirit of our recent plat- forms may differ as to the relative availability of those who represent the progressive element of the party. My own position is one of neu- trality. I regard as available all candidates who are in favor of making the Democratic party an honest, earnest, and courageous exponent of the rights and interests of the masses; and I regard as unavailable all who are in sympathy with or obligated to the great corporations that to-day dominate the policy of the Republican party and seek through the reorganizers to dominate the policy of the Democratic party. I have no favorites among those on our side and no special antagonism to those who represent the reorganizers. I belive that the line should be drawn between princi^' -". not between men, and that men should only be con- sidered as they uiay be able to advance or retard the progress of Dem- ocracy. WANTS A LARGE AUDIENCE. "I have come to Chicago because from this point I can reach a large number of voters in the Mississippi Valley and I have expressed a de- sire to have the ministers attend, because they can and should exert an influence in behalf of honesty and fairness in politics. When, some two years ago, I became satisfied that ex-Senator David B. Hill was planning to be a candidate I pointed out the objections to his candidacy. When the Cleveland boom was launched I pointed out the objections to his candidacy, and now that Mr. Parker seems to be the leading candidate (though not the only candidate) among the reorganizers, I desire to pre- sent some reasons why he can not be considered as an available can- didate for a Democratic nomination, and I find these reasons not in his personality; but in his position upon public questions. For a year he has been urged to speak out and declare himself upon the important issues of the coming campaign, but he has remained silent. "If this silence meant that nobody knew his views, those who have been loyal to the party in recent years would stand upon an equal foot- ing with those who deserted, but it is evident now that while to the public generally his views are unknown they are well known to those who are urging his nomination. Whatever doubt may have existed on this subject heretofore has been dispelled by the platform adopted by the New York State convention, and taking this platform as a text I am sanguine enough to believe that I can prove to every unbiased mind that Judge Parker is not a fit man to be nominated either by the Dem- ocratic party or by any other party that stands for honesty and fair dealing in politics. I can not hope to convince those who favor decep- tion and fraud in politics, but I am satisfied that we now have evidence sufficient to convict Judge Parker of absolute unfitness for the nomina- tion. If he did not know of the platform in advance, if he did not him- self dictate it or agree to it, he has allowed it to go out as his utterance, for the convention was dominated by his friends and adopted a resolu- tion presenting him as the candidate of the state. DISCUSSES NEW YORK PLATFORM. "This platform, then, can fairly be regarded as his declaration upon public questions, and what does the platform say? The first plank reads: " 'This is a Government of laws, not of men; one law for Presidents, cabinets, and people; no usurpation; no executive encroachment upon the legislative or judicial department.' "This is a general plank that says nothing definitely. It is probably intended as a condemnation of the President's pension order, but the idea is so vaguely expressed that those who support the platform can deny that any criticism was intended if they find that such criticism is un- popular. "The second plank reads: " 'We must keep inviolate the pledges of our treaties; we must renew and reinvigorate within ourselves that respect for law and that love of liberty and of peace which the spirit of military domination tends inev- itably to weaken and destroy.' "This is probably intended as a rebuke to the President for his action in the Panama matter, but this, too, is so indefinite that the supporters of the platform can repudiate any such intention if it ever becomes con- venient to do so. 530 SI'IKCH OF HON. WM. jtiNNINCS BRYAN. "The third plank reads: "'Unsteady national policies and a restless spirit of adventure en- gender alarms thai check our commercial growth; let dj have peace, to the end thut business confidence may be restored and that our people may again in tranquillity enjoy the gains <>r their toil.' "This possibly is intended as a criticism of the rashness of the Presi- deni ami of ins emotional temperament, and yet it is so Impersonal lh.it those who support Ihe platform can very plausibly insist that it has no particular reference to any person, nut is intended as a eery broad sla le- nient of a eery general principle. "The fourth plank reads: " 'Corporations chartered by the state must be subject to just regula- tion by the state in the interest of the people; taxation for public pur- poses only; no Government partnership with protected monopolies.' "This plank might find a welcome place in any platform. It would be ditlicull to conceive of a party that would object to 'just regulations by the state in the interest of the people,' nor is there any party that is likely to defend taxation for any other than a public purpose. Kven the Republican party has never declared Itself in favor of 'Government part- nership with protected monopolies.' The plank, therefore, has no mean- ing at all as It stands, unless there Is a secret suggestion that the regu- lation of corporations must be left entirely to the states. This Is the position that Is taken by the trust magnates. Whenever Congress at- tempts to interfere with a trust the friends of the trust at once insist that the state must do the regulating. That is the position taken by the dissenting members of the Supreme Court in the merger case, and if this plank means anything it is an indorsement of the minority members of the court rather than an indorsement of the decision of the majority. The fact that the platform is silent about the merger decision lends color to this construction. TAKES UP ANTITRUST PLANK. "The fifth plank reads: " 'Opposition to trusts and combinations that oppress the people and stifle healthy industrial competition.' "This is the antitrust plank of the platform! At least it is the only plank in which the trust is mentioned by name. The plank contains four- teen words and it will be noted that the opposition is not to all monopo- lies, or even to all trusts, but simply to those that 'oppress the people and stifle healthy industrial competition.' That is the position taken by Judge Brewer in his separate opinion. He contends that the Sherman law was not intended to prevent all restraint of trade, but only 'unrea- sonable restraint,' and so Mr. Hill and the other New York friends of Judge Parker so have worded their trust plank as to make their meaning uncertain. They have so worded the plank as to present the trust view of the question, rather than the view entertained by the people at large. "In order to excite the opposition of the friends of Judge Parker the trust must be shown to be 'oppressive.' It must be shown that it is not only stifling industrial competition, but that it is stifling a 'healthy indus- trial competition.' The trust magnates claim that the object of the trust is to stifle unhealthy industrial competition and to promote a 'healthy in- dustrial competition.' The qualifying words used in this very brief and ambiguous plank destroy whatever vitality it might have bad without them. The Kansas City platform declared a private monopoly to be hide fensible and intolerable. It not only arraigned private monopoly as an unmitigated evil, but it pointed out specific remedies for the destruction of this evil. Compare the Kansas City platform with the cowardly and straddling antitrust— or rather trust— plank of the New York platform and you will understand why Mr. Hill and Judge Parker are so afraid of the Kansas City platform. "The sixth plank reads: " 'A check upon extravagance in public expenditures; that the burden of people's taxes may be lightened.' "There is another plank that is as meaningless as those that have pre- ceded it. Who advocates extravagance? Even when the Republican party is guilty of the largest appropriations it insists that it is not ex- travagant, but that it is simply legislating for a large country. CALLS TARIFF PLANK EVASIVE. "The seventh plank reads: " 'Reasonable revision of the tariff; needless duties upon imported raw material weigh upon the manufacturer, are a menace to the American wa^o-earner, and by increasing the cost of production shut out our prod- ucts from foreign markets.' "This plank is also evasive. The tariff revision must be 'reasonable.' What party ever advocated what it believed to be unreasonable on any subject? The duties upon raw material must not be 'needless' duties. What party ever admitted that it put needless duties on anything? This plank justifies the criticism of one of the leading Republican papers of the West, which says that the platform 'does not even dare to recommend the abandonment of the Republican doctrine of protection of home indus- tries, which had been fondly supposed by the old-fashioned Jeffersonian fellows to be about the only tiling the party dared to cheep about at St. Louis.' "The eighth plank is as follows: " 'The maintenance of state rights and home rule; no centralization.' "Now, here is a plank that is a model of obscurity and brevity. Only ten words in the plank. To what issue is it to be applied? How is it to be construed? "The ninth plank reads: " 'Honesty in public service, vigilance in the prevention of fraud, firmness in the punishment of guilt when detected.' "As President Roosevelt prides himself upon his enthusiastic advocacy of honesty in the public service, and as his friends boast of his vigilance SPEECH OF HON. WM. JENNINGS BRYAN. 531 in the prevention of fraud and his firmness in the punishment of guilt, that plank might be regarded as an indorsement of him but for the fact that it is contained in a platform that suggests a candidate to oppose him. FAILS AS TO LABOR. "The tenth plank reads: *« 'The impartial maintenance of the rights of labor and of capital; no unequal discrimination; no abuse of the powers of law for favoritism or oppression.' "Senator Allison has a reputation of being able to walk on eggs with- out breaking them, and this plank, if it appeared anywhere else than in a Democratic platform, might be attributed to him, for it is about as nice a piece of balancing as has appeared in many a day. The party stands 'impartially' between labor and capital. If any discrimination is made it must be an 'unequal' discrimination. That is, if the party discriminates in favor of one side, it must offset it by an equal discrimination in favor of the other side. There must be no abuse of the powers of- the law either for favoritism or oppression. Why this prodigality in the use of type? If the convention has said that it was in favor of doing right as between capital and labor the plank would have been just as clear and just as useful as a guide to the party. In fact, the whole platform is so noncommittal, so absolutely colorless, and so capable of being construed in any way that 'we will do right' would have answered as well for the whole platform. A Republican could run on that platform and after the election construe it as an indorsement of every policy for which the Re- publican party stands, or at least he could find nothing in that platform that would rebuke him for doing anything that a Republican might want to do. "What are the issues before the country? The trust question is cer- tainly an issue, and yet there is nothing in that platform that gives any encouragement to the opponents of the trusts. There is not a word or syllable that binds a person elected on such a platform to do anything that trusts are unwilling to have done. The Kansas City platform stated the party's position on the trust question, but the New York platform not only fails to indorse the last national platform, but also fails to propose any definite or positive plan of relief. LACKS ANTI-IMPERIALISM PLANK. "Imperialism is an issue. Our Government is now administering a colonial policy according to the political principles employed by George III a century and a quarter ago, and yet there is not in this platform a single word relating to the question of imperialism, not a plank that de- fines the party's position on that subject, not a protest against the sur- render of the doctrines of self-government. The Kansas City platform stated the party's opposition to a colonial policy, but the New York plat- form not only fails to indorse the Kansas City platform, but fails to take any position on this important question. "The labor question is an issue. The laboring men have been before the numerous committees of Congress endeavoring to secure three impor- tant measures. One is the arbitration of differences between corporations engaged in interstate commerce and their employees. Both the Chicago and Kansas City platforms declared in favor of arbitration, but the New York platform not only fails to refer to the arbitration plank of these platforms, but it fails to write a new plank covering this subject. "The laboring men are also trying to secure an eight-hour day, but the New York platform is silent on this subject. "The laboring men are trying to secure the abolition of government bv injunction. Both the Chicago and Kansas City platforms contained planks on this subject, but the New York platform dodges this, as it does all other vital questions. As the capitalists now have what they want and are in the position of defendants in a suit, while the laboring men are in the attitude of plaintiffs seeking relief, the failure of the New York platform to advocate what the laboring men desire is really a declaration against them. "On the tariff question no issue is joined. It was reasonable to sup- pose that on this question, at least, something would be said, but Mr. Hill and Judge Parker seem to be as much afraid of the tariff question as of other issues. SILENT AS TO MONEY. "The money question is ignored entirely. No reference is made to bimetallism at any ratio— not even to international bimetallism to what Mr. Hill seemed to be so attached in the Chicago convention. No refer- ence is made to the measure now before Congress to melt up nearly (500,000,000 legal tender silver dollars into subsidiary coin that is only a limited legal tender. Nothing is said about the asset currency which is a part of the scheme of the financiers. Nothing is said about the Aldrich bill which proposes to subsidize the banks into opposition to tax reduction by loaning them the surplus money in the Treasury. There is no con- demnation of the corruption that such a system would lead to. The plat- form does not antagonize the proposition now before Congress to give the national banks unlimited control over the volume of paper money. In other words, there is not a line in the platform that is written in behalf of the people, not a line that will excite criticism in Wall street. "The platform ignores the income tax; it fails to indorse the election of Senators by direct vote and also omits the plank of the Kansas City platform denouncing corporate domination in politics. "The New York platform is a dishonest platform, fit only for a dis- honest party. No one but an artful dodger would stand upon it. The submission of such a platform to the voters of a state is an insult to their intelligence, for it is intended to deceive them, and a deliberate attempt to deceive— especially so clumsy an attempt as this platform is— is a re- flection upon the brains of those to whom it is submitted. 632 SPEECH OK HON., \VM. JENNINR8 BRYAN. OPPOSES EVERV ItlM'dKM. "This platform proves thnt tho opposition to the Kansas City platform Is not opposition to silver, hut opposition to every needed reform and op- position to all that the masses desire. "I had expected that a platform prepared by Mr. Hill for Judge Parker would be evasive and lacking in frankness, but I did not conceive that any body of men calling themselves Democrats would present such a platform as a recommendation of a candidate. If we are to take the New York platform as an indication of what the next Democratic plat- form is to be, In case the reorganizes control the convention, then who will be able to deny the secret purpose of the reorganize™ to turn the party over to predatory wealth? It is to this danger that I desire to call your attention to-night. With such a platform and a candidate who would be willing to run upon it the party could secure as large a cam- fialgn fund as the Republican party has ever secured, but in securing it t would, like the Republican party, secretly pledge the administration to a construction of the platform satisfactory to the corporations and the combinations. CITES H. O. HAVEMEYER. "If you would know why the corporations contribute to campaign funds, read the testimony given by H. O. Havemeyer before the Senate committee in the spring of 1894. The answers made by Mr. Havemeyer to Senator Allen's questions are conclusive as to the purpose of the cam- paign contributions made by the great corporations: " 'Senator Allen. Therefore you feel at liberty to contribute to both parties? , " 'Mr. Havemeyer. It depends. In the state of New York, where the Democratic majority is between 40,000 and 50,000, we throw it their way. In the state of Massachusetts, where the Republican party is doubtful, they probably have the call. " 'Senator Allen. In the state of Massachusetts, do you contribute anything? " 'Mr. Havemeyer. Very likely. " 'Senator Allen. What is your best recollection as to contributions made by your company In the state of Massachusetts? " 'Mr. Havemeyer. I could not name the amount. " 'Senator Allen. However, in the state of New York you contribute to the Democratic party, and in the commonwealth of Massachusetts you contribute to the Republican party? " 'Mr. Havemeyer. It is my impression that wherever there is a domi- nant party, wherever the majority is very large, that is the party that gets the contribution, because that is the party which controls the local matters. " 'Senator Allen. Then the sugar trust Is a Democrat in a Demo- cratic state and a Republican in a Republican state? " 'Mr. Havemeyer. As far as local matters are concerned, I think that Is about It. " 'Senator Allen. In the state of your nativity, or the nativity of your corporation, New Jersey, where do your contributions go? " 'Mr. Havemeyer. I will have to look that up. " 'Senator Allen. I understand New Jersey is invariably a Democratic state. It would naturally go to the Democratic party? " 'Mr. Havemeyer. Under the theory I have suggested if they were there it would naturally go to them.' "Here we have the head of the sugar trust admitting that his cor- poration contributes to campaign funds and that its contribution is deter- mined, not by political convictions, but by its desire to stand in with the winning party. Senator Allen tried to ascertain the amounts contributed to the various campaign funds, but Mr. Havemeyer refused to answer. DEMOCRATS BLOCK INQUIRY. "The two Republican members of the committee, Senator Davis and Senator Lodge, joined Senator Allen in calling the matter to the attention of the Attorney-General for the District of Columbia. Senator Allen indi- vidually reported a resolution in favor of calling the witness before the Senate for contempt, but Senator Gray and Senator Lindsay, both gold Democrats, presented a minority report in which they opposed taking any action in regard to the witness. "If you desire further testimony in regard to the purpose of corpora- tions in contributing, you will find it in a letter sent by A. B. Hepburn, of the National City Bank, of New York, to Lyman J. Gage, Secretary of the Treasury. The letter bears date of June 5, 1897, and is published in House document 264 of the first session of the Fifty-sixth Congress. In closing the letter, after asking for deposits, Mr. Hepburn says: 'Ofi course the bank Is very strong and if you will take the pains to look at our list of directors you will see that we also have great political claims in view of what was done in the campaign of last year.' "Here is the president of the most influential bank in the country calling attention to political service rendered by the directors of the bank as a reason why the bank should be remembered in the distribution of Government money. Now, with the testimony of the head of one of the great trusts and the testimony of an official of one of the great banks, can anyone doubt that contributions are made by the corporations for the purpose of controlling the policy of the party after election? Can anyone doubt that with such a platform as was adopted in New York, and with a candidate whose conscience would permit him to run upon such a plat- form—does anyone doubt that with such a platform and candidate the party would be mortgaged beforehand to the corporations that are now using the Government as a private asset and plundering the people at will? DISCUSSES MERGER CASE. "But there is another reason why the Democratic party can not afford to go before the country with an ambiguous platform and an uncertain SPEECH OF HON. WM. JENNINGS BRYAN. 533 candidate. No matter how people may differ as to the relative impor- tance of Issues, all must recognize that the trust question to-day presents an important phase of the great conflict between plutocracy and democ- racy. We have recently had a Supreme Court decision on the merger case. This decision was rendered by a bare majority of one, and that one [Judge Brewer] in a separate opinion has stated his position in such a way as to leave no doubt that in the first case involving a trust he may join the minority and defeat the Sherman law. Judge Brewer construes the antitrust law to apply only to reasonable restraint of trade. He would have the court decide whether the restraint is reasonable or unrea- sonable. His decision, taken in connection with the dissenting opinions of Justices Fuller, Peckhain, White, and Holmes, shows that the appoint- ment of a new judge might throw the decision to the one side or the other. "The judges of the Supreme Court are appointed by the President, and the President to be elected this fall will doubtless have the appoint- ment of one or two, and possibly three, Supreme Court judges. If his sympathies are with the corporations he will doubtless appoint judges satisfactory to the corporations, especially if obligated to the corporations by large campaign contributions, and these judges can make it impossible to secure any remedial legislation for years to come. If four years hence the people should secure a President, a Senate, and a House opposed to private monopolies, they may find themselves unable to get any remedial legislation past the Supreme Court for several years. "The opinion filed by Judge White and concurred In by the others de- nies the power of Congress over monopolies organized In a state. These dissenting judges insist that Congress has no power to regulate or re- strain the creation of a monopoly within a state. It will be remembered that the decision in the Knight case, known as the sugar-trust case, turned upon that very question. It was admitted In that case that the sugar trust controlled the production of sugar, but the court held that the Sherman law did not prevent the buying up of the individual refineries, even though the product of the refineries might ultimately enter Into Interstate commerce. MAKES STATES HELPLESS "The division of the Supreme Court In the merger case shows the cleavage on the trust question. The dissenting judges would deny the power of Congress to prevent a private monopoly, and when the power of Congress to destroy monopolies is denied the people are left helpless because some of the states, such as Delaware and New. Jersey, find it profitable to permit the creation of these monopolies, and so long as they are created and can evade Federal laws no separate state can fully pro- tect Itself against them. "The dissenting judges In the merger case refuse to draw a distinc- tion between an indlvadual and a corporation. Justice White says: 'The principle that the ownership of property is embraced within the power of Congress to regulate commerce whenever that body deems that a particu- lar character of ownership, If allowed to continue, may restrain com- merce between the states or create a monopoly thereof, is, In my opinion, in conflict with the most elementary conceptions of rights of property,' and Justices Fuller, Peckham, and Holmes concur. " 'Rights of property' are, according to the dissenting judges, supreme, and when Congress tries to prevent a monopoly it is interfering with 'the most elementary conception of the rights of property.' The issue presented to-day in the trust question, and in all the other questions with which we have to deal, is the question between human rights and so- called 'property rights,' or, more properly speaking, between ordinary people and the great corporations. Those who believe that property rights are supreme take the side of the trusts. If we have a President who is in sympathy with this theory it means that the dollar will be given consideration before the man. It means that organized wealth can continue to trample upon the rights of the people. It means that the Instrumentalities of government can be used for the protection of every scheme of exploitation that the capitalists can conceive. "I for one am not willing that the Democratic party shall become the tool of the corporations. I am not willing that it shall be the champion of organized wealth. And it is because I believe that the party has a higher mission than to be the exponent of plutocracy that I am protesting against the schemes of those who would put it into competition with the Republican party for the support of Wall street financiers. It is for this reason that I protest against mortgaging the party to the capitalists to secure an enormous corruption fund. "If any who are present to-night or who read what I say think that I am trying to interfere with Democratic success, let me answer that no Democrat is more anxious for the party to succeed than I am. No one has suffered more from dissensions and divisions in the party, and no -one, I believe, is more eager for the country to enjoy the great benefits which a triumph of real Democracy would bring. But I do not desire that the party shall win offices only. If that is the only purpose of the party, let its principles be abandoned and let its platform simply declare the party hungry for the patronage. The lesson of 1894 shows the folly present, a platform which is evasive and SmMgQOUB shows (bill those who write the platform either distrust the people who are to act upon it or have purposes that they desire to conceal. CALLS PLATFORM A DISGRACE. "The New York platform Is ambiguous, uncertain, evasive, and dis- honest. It would disgrace the Democrats of the nation to adopt such a platform, and it ought to defeat ;is an aspirant for a Democratic nomi- nation any man who would be willing to have it go forth as a declaration of his views on public questions. In Illinois, in Wisconsin, in Michigan, in Minnesota, in Indiana, in Ohio, and in every other state that has not acted it behooves the Democrats to arouse themselves and organize to the end that they may prevent the consummation of the schemes of the reorganizers. Their scheme begins with the deception of the rank and file of the party. It is to be followed up by the debauching of the public with a campaign fund secured from thfe corporations, and it is to be con- summated by the betrayal of the party organisation and of the country into the hands of those who are to-day menacing the liberties of the country by their exploitations of the producers of wealth." The tariff affects trusts only as It affects all other interests. It makes all these interests, large or small, profitable; and Its benefits can he taken from the large only under penalty of taking them from the small also. — President Roosevelt at Minneapolis, Minn., April 7, 1903. The general tariff policy to which, without regard to changes in detail, I believe this country to he irrevocably committed is fundamentally based upon ample recognition of the difference in labor cost , here and abroad. — President Roosevelt at New York, November 11, 1902. 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, we had better not have begun the task at all President Roosevelt In The Strenuous Life, p. 11. Unreadiness for war is merely rendered more disastrous by readiness to bluster; to talk defiance and advocate a vigorous policy in words, while refusing to back up these words by deeds is cause for humiliation. — From Presiilent Roosevelt's "Washington's for- gotten maxim," American Ideals, p. 274. We freely extend the hand of welcome and of good-fellowship to every man, no matter what his creed or birthplace, who comes here honestly intent on becoming a good United States citizen like the rest of us. — President Roosevelt on "True Americanism," in his book on American Ideals, p. 45. Corporations that are handled honestly and fairly, so far from being an evil, are a natural business evolution and make for the general prosperity of our land. We do not wish to destroy corpo- rations, but we do wish to make them subserve the public good. — President Roosevelt at Cincinnati, Ohio, September 20, 1902. Our aim should be to preserve the policy of a protective tariff, In which the nation as a whole has acquiesced, and yet wherever and whenever necessary to change the duties in particular para- graphs or schedules as matters of legislative detail if such change is demanded by the Interests of the nation as a whole. — President Roosevelt at Minneapolis, Minn., April 4, 1903. If necessary for our welfare, then of course Congress must consider the question of changing the laws as a whole or changing any given rates of duty, but we must remember that whenever even a single schedule is considered some interests will appear to demand a change in almost every schedule In the law; and when It comes to upsetting the schedules generally the effect upon the business Interests of the country would he ruinous. — President Roosevelt at Minneapolis, April 4, 1903. THE PRESIDENT'S SPEECH OF ACCEPTANCE, 535 PRESIDENT ROOSEVELT TO NOTIFICATION COMMITTEE. Speech Delivered at Oyster Bay, New York, Julyj26, 1904, Accepting the Re- publican Nomination for the Presidency. Mr. Speaker and Gentlemen of the Notification Committee: I am deeply sensible of the high honor conferred upon me by the representatives of the Republican party assembled in convention, and I accept the nomination for the Presidency with solemn real- ization of the obligations I assume. I heartily approve the declara- tion of principles which the Republican National Convention has adopted, and at some future day I shall communicate to you, Mr. Chairman, more at length and in detail a formal written accept- ance of the nomination. m'kinley's policies sustained. Three years ago I became President because of the death of my lamented predecessor. I then stated that it was my purpose to carry out his principles and policies for the honor and the interest of the country. To the best of my ability I have kept the promise thus made. If next November my countrymen confirm at the polls the action of the convention you represent, I shall, under Providence, continue to work with an eye single to the wel- fare of all our people. PLEDGES HAVE BEEN FULFILLED. A party is of worth only in so far as it promotes the national interest, and every official, high or low, can serve his party best by rendering to the people the best service of which he is capable. Effective government comes only as the result of the loyal co- operation of many different persons. The members of a legis- lative majority, the officers in the various departments of the ad- ministration, and the legislative and executive branches as towards each other, must work together with subordination of self to the common end of successful government. We who have been en- trusted with power as public servants during the past seven years of administration and legislation now come before the people con- tent to be judged by our record of achievement. In the years that have gone by we have made the deed square with the word; and if we are continued in power we shall unswervingly, follow out the great lines of public policy which the Republican party has already laid down ; a public policy to which we are giving, and shall give, a united, and therefore an efficient, support. REPUBLICAN AND DEMOCRATIC APPEALS CONTRASTED. In all of this we are more fortunate than our opponents, who now appeal for confidence on the ground, which some express and some seek to have confidentially understood, that if triumphant they may be trusted to prove false to every principle which in the last eight years they have laid down as vital, and to leave undis- turbed those very acts of the administration because of which they ask that the administration itself be driven from power. Seemingly their present attitude as to their past record is that some of them were mistaken and others insincere. We make our appeal in a wholly different spirit. We are not constrained to keep silent on any vital question; we are divided on no vital ques- tion; our policy is continuous, and is the same for all sections and localities. ■ There is nothing experimental about the govern- ment we ask the people to continue in power, for our performances in the past, our proved governmental efficiency, is a guarantee as to our promises for the future. Our opponents, either openly or 536 the president's speech of acceptance. secretly, according to their several temperaments, now ask the people to trust their present promises in consideration of the fact that they intend to treat their past promises as null and void. We know our own minds and we have kept of the same mind for a sufficient length of time to give to our policy coherence and sanity. In such a fundamental matter as the enforcement of the law we do not have to depend upon promises, but merely to ask that our record be taken as an earnest of what we shall continue to do. In dealing with the great organization known as trusts, we do not have to explain why the laws are not enforced, but to point out that they actually have been enforced and that legislation has been enacted to increase the effectiveness of their enforcement. We do not have to propose to "turn the rascals out," for we have shown in very deed that whenever by diligent investigation a public official can be found who has betrayed his trust he will be punished to the full extent of the law without regard to whether he was appointed under a Republican or a Democratic administra- tion. This is the efficient way to turn the rascals out and to keep them out, and it has the merit of sincerity. Moreover, the be- trayals of trust in the last seven years have been insignificant in number when compared with the extent of the public service. Psever has the administration of the government been on a cleaner and higher level; never has the public work of the nation been done more honestly and efficiently. REPUBLICANS EVADE NO ISSUES. • Assuredly it is unwise to change the policies which have worked so well and which are now working so well. Prosperity has come at home. The national honor and interest have been upheld abroad. We have placed the finances of the nation upon a sound gold basis. We have done this with the aid of many who were formerly our opponents, but who would neither openly support nor silently acquiesce in the heresy of unsound finance; and we have done it against the convinced, the violent opposition of the mass of our present opponents who still refuse to recant the un- sound opinions which for the moment they think it inexpedient to assert. We know what we mean when we speak of an honest and stable currency. We mean the same thing from year to year. We do not have to avoid a definite and conclusive committal on the most important issue which has recently been before the people, and which may at any time in the near future be before them again. Upon the principles which underlie this issue the convic- tions of half of our number do not clash with those of the other haif. So long as the Republican party is in power the gold standard is settled, not as a matter of temporary political expedi- ency, not because of shifting conditions in the production of gold in certain mining centers, but in accordance with what we regard as the fundamental principles of national morality and wisdom. GOVERNMENT FINANCES IN A SATISFACTORY CONDITION. Under the financial legislation which we have enacted there is now ample circulation for every business need ; and every dollar of this circulation is worth a dollar in gold. We have reduced the kiterest-bearing debt and in still larger measure the interest on that debt. All of the war taxes imposed during the Spanish war have been removed with a view to relieve the people and to pre- vent the accumulation of an unnecessary surplus. The result is that hardly ever before have the expenditures and income of the Government so closely corresponded. In the fiscal year that has just closed the excess of income over the ordinary expenditures was nine millions of dollars. This does not take account of the fifty millions expended out of the accumulated surplus for the purchase of the isthmian canal. It is an extraordinary proof of the sound financial condition of the nation that instead of follow- ing the usual course in such matters and throwing the burden upon posterity by an issue of bonds, we were able to make the payment outright, and yet after it to have in the treasury a sur- plus of one hundred and sixty-one millions. Moreover, we were able to pay this fifty millions of dollars out of hand without caus- ing the slightest disturbance to business conditions. THE PRESIDENT'S SPEECH OF ACCEPTANCE. 537 PROTECTIVE PRINCIPLE MUST BE MAINTAINED. We have enacted a tariff law under which during the past few years the country has attained a height of material well-being never before reached. Wages are higher than ever before. That whenever the need arises there should be a readjustment of the tariff schedules is undoubted; but such changes can with safety be made only by those whose devotion to the principle of a pro- tective tariff is beyond question ; for otherwise the changes would amount not to readjustment but to repeal. The readjustment when made must maintain and not destroy the protective prin- ciple. To the farmer, the merchant, the manufacturer this is vital ; but perhaps no other man is so much interested as the wage-worker in the maintenance of our present economic system, both as regards the finances and the tariff. The standard of liv- ing of our wage-workers is higher than that of any other country, and it cannot so remain unless we have a protective tariff which shall always keep as a minimum rate of duty sufficient to cover the difference between the labor cost here and abroad. Those who, like our opponents, "denounce protection as a robbery," thereby explicitly commit themselves to the proposition that if they were to revise the tariff no heed would be paid to the neces- sity of meeting this difference between the standards of living for wage- workers here and in other countries ; and therefore on this point their antagonism to our position is fundamental. Here again we ask that their promises and ours be judged by what has been done in the immediate past. We ask that sober and sensible men compare the workings of the present tariff law and the conditions which obtain under it with the workings of the preceding tariff law of 1893 and the conditions which that tariff of 1893 helped to bring about. m'kinley reciprocity approved. We believe in reciprocity with foreign nations on the terms outlined in President McKinley's last speech, which urged the ex- tension of our foreign markets by reciprocal agreements when- ever they could be made without injury to American industry and labor. It is a singular fact that the only great reciprocity treaty recently adopted — that with Cuba — was finally opposed almost alone by the representatives of the very party which now states that it favors reciprocity. And here again we ask that the worth of our words be judged by comparing their deeds with ours. On this Cuban reciprocity treaty there were at the outset grave dif- ferences of opinion among ourselves ; and the notable thing in the negotiation and ratification of the treaty, and in the legislation which carried it into effect, -was the highly practical manner in which, without sacrifice of principle, these differences of opinion were reconciled. There was no rupture of a great party, but an excellent practical outcome, the result of the harmonious coopera- tion of two successive Presidents and two successive Congresses. This is an illustration of the governing capacity which entitles us to the confidence of the people, not only in our purposes but in our practical ability to achieve those purposes. Judging by the history of the last twelve years, down to this very month, is there justification for believing that under similar circumstances and with similar initial differences of opinion, our opponents would have achieved any practical result? EQUAL JUSTICE TO LABOR AND CAPITAL. We have already shown in actual fact that our policy is to do fair and equal justice to all men, paying no heed to whether a man is rich or poor ; paying no heed to his race, his creed, or his birthplace. We recognize the organization of capital and the organization of labor as natural outcomes of our industrial system. Each kind of organization is to be favored so long as it acts in a spirit of justice and of regard for the rights of others. Each is to be granted the full protection of the law, and each in turn is to be held to a strict obedience to the law ; for no man is above it and no man below it. The humblest individual is to have his rights safeguarded as scrupulously as those of the strongest organiza- tion, for each is to receive justice, no more and no less. The 538 THE president's speech of acceptance. problems with which we liavc to deal in our modern industrial and social life are manifold; but the spirit In which it is necessary to approach their solution is simply the spirit of honesty, of courage, and of common sense. IRRIGATION. In inaugurating the great work of irrigation in the west the administration has been enabled by Congress to take one of the longest strides ever taken under our Government toward utilizing our vast national domain for the settler, the actual home-maker. PANAMA CANAL RECORD AN HONORABLE ONE. Ever since this continent was discovered the need of an isth- mian canal to connect the Pacific and the Atlantic has been recog- nized; and ever since the birth of our nation such a canal has been planned. At last the dream has become a reality. The isth- mian canal is now being built by the Government of the United States. We conducted the negotiation for its construction with the nicest and most scrupulous honor, and in a spirit of the largest generosity toward those through whose territory it was to run. Every sinister effort which could be devised by the spirit of fac- tion or the spirit of self-interest was made in order to defeat the treaty with Panama and thereby prevent the consummation of this work. The construction of the canal is now an assured fact ; but most certainly it is unwise to entrust the carrying out of so momentous a policy to those who have endeavored to defeat the whole undertaking. FOREIGN POLICY COMMANDS RESPECT. Our foreign policy has been so conducted that while not one of our just claims has been sacrificed our relations with all for- eign nations are now of the most peaceful kind ; there is not a cloud on the horizon. The last cause of irritation between us and any other nation was removed by the settlement of the Alaskan boundary. In the Caribbean Sea we have made good our promises of inde- pendence to Cuba, and have proved our assertion that our mission in the island was one of justice and not of self-aggrandizement; and thereby no less than by our action in Venezuela and Panama we have shown that the Monroe Doctrine is a living reality, de- signed for the hurt of no nation, but for the protection of civiliza- tion on the western continent and for the peace of the world. Our steady growth in power has gone hand in hand with a strengthening disposition to use this power with strict regard for the rights of others, and for the cause of international justice and good-will. We earnestly desire friendship with all the nations of the new and old worlds ; and we endeavor to place our relations with them upon a basis of reciprocal advantage instead of hostility. We hold that the prosperity of each nation is an aid and not a hindrance to the prosperity of other nations. We seek interna- tional amity for the same reasons that make us believe in peace within- our own borders ; and we seek this peace not because we are afraid or unready, but because we think that peace is right as well as advantageous. American interests in the Pacific have rapidly grown. Ameri- can enterprise has laid a cable across this, the greatest of oceans. We have proved in effective fashion that we wish the Chinese Empire well and desire its integrity and independence. THE PHILIPPINE POLICY. Our foothold in the Philippines greatly strengthens our posi- tion in the competition for the trade of the east ; but we are gov- erning the Philippines in the interest of the Philippine people themselves. We have already given them a large share in their government, and our purpose is to increase this sharp as rapidly as they give evidence of increasing fitness for the task. The great majority of the officials of the islands, whether elective or ap- pointive, are already native Filipinos. We are now providing for FAIRBANKS' SPEECH OF ACCEPTANCE. 539 a legislative assembly. This is the first step to be taken in the future ; and it would be eminently unwise to declare what our next step will be until this first step has been taken and the re- sults are manifest. To have gone faster than we have already gone in giving the islanders a constantly increasing measure of self-government would have been disastrous. At the present mo- ment to give political independence to the islands would result in the immediate loss of civil righlys, personal liberty and public order, as regards the mass of the Filipinos, for the majority of the islanders have been given these great boons by us and only keep them because we vigilantly safeguard and guarantee them. To withdraw our government from the islands at this time would mean to the average native the loss of his barely-won civil free- dom. We have established in the islands a government by Ameri- cans assisted by Filipinos. We are steadily striving to transform this into self-government by the Filipinos assisted by Americans. CONTENT TO STAND OB FALL BY RECORD MADE. The principles which we uphold should appeal to all our coun- trymen, in all portions of our country. Above all they should give us strength with the men and women who are the spiritual heirs of those who upheld the hands of Abraham Lincoln; for we are striving to do our work in the spirit with which Lincoln ap- proached his. During the seven years that have just passed there is no duty, domestic or foreign, which we have shirked ; no neces- sary task which we have feared to undertake, or which we have not performed with reasonable efficiency. We have never pleaded impotence. We have never sought refuge in criticism and com- plaint instead of action. We face the future with our past and our present as guarantors of our promises ; and we are content to stand or to fall by the record which we have made and are making. SENATOR FAIRBANKS TO NOTIFICATION COMMITTEE. Mr. Root and Gentlemen of the Committee: I thank you for the very generous terms in which you have conveyed the official notification of my nomination for Vice Pres- ident of the United States. The unsolicited and unanimous nom- ination by the Republican party is a call to duty which I am pleased to obey. I accept the commission which you bring with a profound sense of the dignity and responsibilities of the exalted position for which I "have been nominated. My utmost endeavor will be to discharge in full measure the trust, if the action of the conven- tion shall meet the approval of the American people. THE PLATFORM. The platform adopted by the convention is an explicit and emphatic declaration of principles in entire harmony with those policies of our party which have brought great honor and pros- perity to our common country, and which, if continued, will bring us like blessings in the future. THE MONETARY POLICY. The monetary and economic policies which have been so forcibly reannounced, lie at the very foundation of our industrial life, and are essential to the fullest development of our national strength. They give vitality to our manufactures and commerce, and if impaired or overthrown, there would inevitably ensue a period of industrial depression, to the serious injury of the vast interests of both labor and capital. The Republican party, since it preserved the integritv of the Republic and gave freedom to the oppressed, never rendered a more important service to the country than when it established the gold standard. Under it we have increased our currency supply sufficiently to meet the normal requirements of business It is gratifying that the convention made frank and explicit declaration of the inflexible purpose of the party to maintain the 540 FAIRBANKS' BPBECH Of /kCCEPTANCE. gold standard. It is essential not only that the standard should he as good as the hest in the world, but that the people should have the assurance that it will be so maintained. The enemies of sound money were powerful enough to sup- press mention of the gold standard in the platform lately adopted by the Democratic national convention. The leader of Democracy in two great national campaigns has declared since the adjourn- ment of the convention that as soon as the- election is over, he will undertake to organize the forces within the Democratic party for the next national contest, for the purpose of advancing the radical policies for which his element of the party stands. He frankly says that the money question is for the present "in abeyance." In view of these palpable facts, it is not the part of wisdom to abandon our vigilance in safeguarding the integ- rity of our monetary system. We must have not only a Presi- dent who is unalterably committed to the gold standard, but both Houses of Congress in entire accord with him upon the subject. In Congress and not with the President rests the supreme power to determine the standard of our money. Though the Chief Executive should oppose, the Congress, acting within its inde- pendent constitutional authority, could at any time overthrow or change the monetary standard. THE PROTECTIVE POLICY. The wisdom of our protective policy finds complete justifica- tion in the industrial development of the country. This policy has become a most vital part of our industrial system and must be maintained unimpaired. When altered conditions make changes in schedules desirable, their modification can be safely en- trusted to the Republican party. If they are to be changed by the enemies of the system along free trade lines, uncertainty would take the place of certainty, and a reaction would surely follow to the injury of the wage earners and all who are now profitably employed. Uncertainty undermines confidence and loss of confidence breeds confusion and distress in commercial affairs. PRESIDENT ROOSEVELT'S RECORD. The convention was wise not only in its enunciation of party policies, but in its nomination of a candidate for the Presidency. During the last three years, President Roosevelt has been con- fronted with large and serious questions. These he has met and solved with high wisdom and courage. The charges made against him in the Democratic platform find an irrefutable answer in his splendid administration, never surpassed in all the history of the Republic, and never equalled by the party which seeks to dis- credit it. The election of the President is imperatively demanded by those whose success depends upon the continuance of a safe, con- servative and efficient administration of public affairs. RECORD OF THE REPUBLICAN PARTY. We have an ample record of deeds done, of beneficent things accomplished in the public interest. The vast business of the government has been well administered. The laws have been enforced fearlessly and impartially. The treasury has been ade- quately supplied with revenue and the financial credit of the government was never better. Our foreign trade balance con- tinues to increase our national wealth. We have adopted an irrigation policy which will build homes in the arid regions of the west. The Panama canal, the hope of centuries, is in course of construction, under the sole protection of the American flag. We have peace and great prosperity at home and are upon terms of good neighborhood with the entire world. These con- ditions constitute the strongest possible assurance for the future. Later I shall avail myself of a favorable opportunity to sub- mit to you, and through you, to my fellow citizens, a fuller ex- pression of my views concerning the question now in issue. Permit me again to thank you and to express the belief that we may confidently submit our cause to the candid and patriotic judgment of our countrymen. JUDGE PARKER TO NOTIFICATION COMMITTEE. 541 JUDGE PARKER TO NOTIFICATION COMMITTEE. Speech Delivered at Esopus, N. Y., August 10th, 1904, Accepting the cratic Nomination for the Presidency. Mr. Chairman and Gentlemen of the Committee : I have resigned the office of chief judge of the Court of Appeals of this State in order that I may accept the responsibility that the great convention you represent has put upon me, without possible prejudice to the court to which I had the honor to belong, or to the eminent members of the judiciary of this State, of whom I may now say as a private citizen I am justly proud. At the very threshold of this response and before dealing with other subjects, I must, in justice to myself and to relieve my sense of gratitude, express my profound appreciation of the confidence reposed in me by the convention. After nominating me and subsequently receiving a communi- cation declaring that I regarded the gold standard as firmly and irrevo- cably established, a matter concerning which I felt it incumbent upon me to make known my attitude so that hereafter no man could justly say that his support had been secured through indirection or mistake, the con- vention reiterated its determination that I should be the standard bearer of the party in the present contest. This mark of trust and confidence I shall ever esteem as the highest honor that could be conferred upon me — an honor that, whatever may be the fate of the campaign, the future can in no degree lessen or impair. The admirable platform upon which the party appeals to the country for its confidence and support clearly states the principles which were so well condensed in the first inaugural address of President Jefferson, and points out with force and directness the course to be pursued through their proper application in order to insure needed reforms in both the legislative and administrative departments of the Government. While un- hesitating in its promise to correct abuses and to right wrongs wherever they appear or however caused ; to investigate the several administrative departments of the Government, the conduct of whose officials has created scandals, and to punish those who have been guilty of a breach of their trust ; to oppose the granting of special privileges by which the few may profit at the expense of the many ; to practice economy in the expen- diture of the moneys of the people, and to that end to return once more to the methods of the founders of the republic by observing in disbursing the public funds the care and caution a prudent individual observes with respect to his own ; still the spirit of the platform assures conservative, instead of rash action ; the protection of the innocent as well as the punishment of the guilty ; the encouragement of industry, economy and thrift ; the protection of property and a guarantee of the enforcement for the benefit of all of man's inalienable rights, among which, as said in the Declaration of Independence, are "life, liberty and the pursuit of happi- ness." Liberty, as understood in this country, means not only the right of freedom from actual servitude, imprisonment or restraint, but the right of one to use his faculties in all lawful ways, to live and work where he will and to pursue any lawful trade or business. These essential rights of life, liberty and property are not only guaranteed to the citizen by the Constitution of each of the several states, but the states are by the Fourteenth Amendment to the Constitution of the United States for- bidden to deprive any person of any one of them without due process of law. THE CONSTITUTION. Occasionally, by reason of unnecessary or impatient agitation for re- forms, or because the limitations placed upon the departments of govern- ment by the Constitution are disregarded by officials desiring to accom- plish that which to them seems good, whether the power exists in them or not, it becomes desirable to call attention to the fact that the people, in whom all power resides, have seen fit, through the medium of the Con- stitution, to limit the governmental powers conferred and to say to de- partments created by it : "Thus far shalt thou go and no farther." To .1 JUDGE PARKEK TO NOTIFICATION COMMITTEE. ■won the ends sought the people have l>y the Constitution separated and distributed among the three departments of government — the execu tivc legislative and judicial certain powers, and it is the duty of those administering each department bo i<> ad as to preserve, rather than to destroy, the potency of the coordinate branches of the government, and thus secure the exercise of all the powers conferred by the people. Thomas Jefferson, in a letter to William C. Jarvls, couching the per- petuity of our institutions, written many years after he had retired to private life, said: "If the three powers of our government maintain their mutual Independence of each other, it may last long, hut not so if eithtr can assume the authority Of the other. It must be confessed that in the course of our history executives have employed powers not belonging to them ; statutes have been passed that: were expressly for- bidden by the Constitution and statutes have been set aside as unconsti- tutional when it was difficult to point out the provisions said to be of- fended against in their enactment; all this has been done with a good purpose, no doubt, but In disregard, nevertheless, of the fact that ours is a government of laws, not of men, deriving its "just powers from the consent of the governed." If we would have our government continue during the ages to come, for the benefit of those who shall succeed us, we must ever be on our guard against the danger of usurpation of that authority which resides in the whole people, whether the usurpation be by officials representing one of the three great departments of govern- ment, or by a body of men acting without a commission from the people. Impatience of the restraints of law, as well as of its delays, is be- coming more and more manifest from day to day. Within the past few years many instances have been brought to our attention, where in differ- ent parts of our beloved country supposed criminals have been seized and punished by a mob, notwithstanding the fact that the Constitution of each State guarantees to every person within its jurisdiction that his life, his liberty or his property shall not be taken from him without due process of law. In a struggle between employers and employees, dynamite is said to have been used by the latter, resulting in the loss of life and thedestruc- tion of property. The perpetrators of this offense against the laws of God and man, and all others engaged in the conspiracy with them, should, after due trial and conviction, have had meted out to them the most rigorous punishment known to the law. This crime, added perhaps to others, led to the formation of a committee of citizens that, with the support of the military authority, deports from the State, without trial, persons suspected of belonging to the organization of which the perpe- trators of the dynamite outrages were supposed to be members. In both cases the reign of law gave way to the reign of force. These illustrations present some evidence of the failure of government to protect the citizen and his property, which not only justified the action of your convention in this regard, but made it its duty to call attention to the fact that Constitutional guarantees are violated whenever any citizen is denied the right to labor, to acquire and to enjoy property, or to reside where his interests or inclination may determine : and the fulfillment of the assur- ance to rebuke and punish all denials of these rights, whether brought about by individuals or government agencies, should be enforced by every official and supported by every citizen. The essence of good government lies in strict observance of constitutional limitations, enforcement of law and order and rugged opposition to all encroachment upon the sovereignty of the people. » ... The foregoing suggestions but emphasize the distinction which exists between our own and many other forms of government. It has been well said, in substance, that there are but two powers in government, one the power of the sword, sustained by the hand that wields it, and the other the power of the law, sustained by an enlightened public sentiment. The difference in these powers is the difference between a republic — such as ours, based on law and a written constitution, supported by intelligence, virtue and patriotism — and a monarchy — sustained by force exerted by an individual, uncontrolled by laws other than those made or sanctioned by him ; one represents Constitutionalism, the other Imperialism. THE TARIFF. The present tariff law is unjust in its operation, excessive in many of its rates and so framed in particular instances as to exact inordinate profits from the people. So well understood has this view become that many prominent members of the Republican party, and at least two of its State conventions, have dared to voice the general sentiment on that subject. That party seems, however, to be collectively able to harmonize only upon a plank that admits that revision may from time to time be necessary, but it is so phrased that it is expected to be satisfactory to those in favor of an increase of duty, to those who favor a reduction thereof, and to those opposed to any change whatever. Judged by the record of performance, rather than that of promise, on the part of that party in the -past, it would seem as if the outcome, in the event of its success, would be to gratify the latter class. With abso- lute control of both the Legislative and executive departments of the government since March 4th, 1807, there has been neither reduction nor an attempt at reduction in tariff duties. It is not unreasonable to as- sume, in the light of that record, that a future Congress of that party will not undertake a revision of the tariff downward in the event that it shall receive an endorsement of its past course on that subject by the people. It is a fact and should he frankly conceded though our party be successful in the coming contest we cannot hope to secure a majority in the Senate during the next four years, and hence we shall be unable to secure any modification in the tari obtain hriv the liberty and prosperity denied them in their own countries, spread over the face of tne land, reduced the prairies and for csts to cultivation, built cities. Constructed Highways and railroads, till now a nation which at the formation of the government numbered only three millions in population, lias become eighty millions, and from ocean to ocean and the lakes to the gulf, the country is the abode of a free and prosperous people, advanced in the highest degree in the learning and arts of civilization. It is the liberty, the advancement, ami the pros- perity of its citizens, not any career of conquest, that make the country 8 world power. This condition we owe to the bounty of Providence. unfolded in the great natural resources of the country, to the wisdom Of our fathers manifested in the form of government established by them. to the energy, industry, moral character and law-abiding spirit of the people themselves. THE MILITARY We are not a military people, bent on conquest, or engaged in extend- ing our domains in foreign lands, or desirous of securing natural ad- vantages, however great, by force; but a people loving peace, not only for ourselves, but for all the nations of the earth. The display of great military armaments may please the eye and, for the moment, excite* the pride of the citizen, but it cannot bring to the country the brains, brawn, and muscle of a single Immigrant, nor induce the Investment here of a dollar of capital. Of course such armament as may be necessary for the security of the country and the protection of the rights of its citizens, at home or abroad, must be maintained. Any other course would be not only false economy, but pusillanimous. I pro- test, however, against the feeling, now far too prevalent, that by reason of the commanding position we have assumed in the world, we must take part in the disputes and broils of foreign countries: and that be-~ cause we have grown great we should intervene in every important ques- tion that arises in other parts of the world. I also protest against the erection of any such military establishment as would be required to main- tain the country in that attitude. We should confine our international activities solely to matters in which the rights of the country or of our citizens are directly involved. That is not a situation of isolation, but of independence. The Government of the United States was organized solely for the people of the United States. While it was contemplated that this coun- try should become a refuge for the oppressed of every land, who might be fit to discharge the duties of our citizenship, and while we have 1 always sympathized with the people of every nation in their struggles for self-government, the government was not created for a career of political or civilizing evangelization in foreign countries or among alien races. The most efficient work we can do in uplifting the people of other countries is by the presentation of a happy, prosperous, self-governing nation as an ideal to be emulated, a model to be followed. The general occupation of our citizens in the arts of peace, or the absence of large military armaments, tends to impair neither patriotism nor physical courage, and for the truth of this I refer the young men of today to the his- tory of the Civil War. For 50 years, with the exception of the war with Mex- ico, this country had been at peace, with a standing army most of the time of less than ten thousand men. He who thinks that the nation had grown effeminate during that period should read the casualty rolls of the armies on either side at Shi lob, Antietam, Fredericksburg, and Get- tysburg, at Stone River and Chickamauga. I would be the last man to pluck a single laurel from the crown of any one of the military heroes to whom this country owes so much, but I insist that their most heroic deeds proceeded infinitely more from devotion to the country than from martial spirit. As I have already proceeded at too great length, other questions sug- gested in the platform must await my letter of acceptance. Mr. Chairman, in most graceful speech you have reminded me of the great responsibility, as well as the great honor of the nomination be- stowed upon me by the convention you represent this day. Be assured that both are appreciated— so keenly appreciated that I am humbled in their presence. ONE TERM ONLY. I accept, gentlemen of the committee, the nomination, and if the action of the convention shall be endorsed by an election by the people, I will, God helping me, give to the discharge of the duties of that exalted office the best service of which I am capable and at the end of the term retire to private life. I shall not be a candidate for, nor shall I accept a renomination. Several reasons might be advanced for this position, but the controlling one with me is that I am fully persuaded that no incum- bent of that office should ever be placed in a situation of possible temp- tation to consider what the effect of action taken by him In an adminis- trative matter of great importance might have upon his political for- tunes. Questions of momentous consequence to all of the people have been in the past and will be in the future presented to the President for determination, and in approaching their consideration, as well as in weighing the facts and the arguments bearing upon them, he should be unembarrassed by any possible thought of the influence his decision may have upon anything whatever that may affect him personally. I make this statement, not in criticism of any of our Presidents from Washing- ton down who have either held the office for two terms or sought to suc- ceed themselves: for strong arguments can be advanced in support of the re-election of a President. It is simply my judgment that the interests of this country are now so vast and the questions presented are fre- quently of such overpowering magnitude to the people that it is indis- pensable to the maintenance of a befitting attitude before the people, not only that the Chief Magistrate should be independent but that that inde- pendence should be known of all men. 54b Fundamentally the cause of expansion is the cause of peace. — President Roosevelt on "Expansion and peace," in Strenuous Life, p. 34. We must approach a matter of such prime economic impor- tance as the tariff from the standpoint of our husiness needs. — President Roosevelt at Minneapolis, April 4, 1903. The present phenomenal prosperity has heen won under a tariff which was made to protect the interests of the American producer, business man, wage-worker, and farmer alike. — Presi- dent Roosevelt at Minneapolis, April 4, 1903. 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 flag as the symbol of liberty and hope to an oppressed people. — President Mc- Kinley to colored citizens, at Chicago, Oct. 8, 1899. At all hazards, and no matter what else is sought for or ac- complished by changes of the tariff, the American workingman must be protected in his standard of wages — that is, in his stand- ard of living — and must be secured the fullest opportunity of em- ployment. — President Roosevelt at Logansport, Ind., September, 1902. If a tariff law has on the whole worked well and If business has prospered under it and is prospering, it may be better to en- dure some inconveniences and inequalities for a time than by mak- ing changes to risk causing disturbance and perhaps paralysis in the industries and business of the country. — President Roosevelt at Minneapolis, Minn., April 4, 1903. The Republican party was dedicated to freedom forty-four years ago. It has been the party of liberty and emancipation from that hour; not of profession but of performance. — President Mc- Kinley, at Canton, July 12, 1900. The American flag stands for orderly liberty, and it stands for it abroad as it stands for it at home. — President Roosevelt at Mem- phis, Tenn., Nov. 19, 1902. We all of us earnestly hope that the occasion for war may not arise, but if it has to come then this nation must win. — President Roosevelt at Annapolis, Md., May 2, 1902. The well-being of the -wage-worker is a prime consideration of our entire policy of economic legislation. — President Roosevelt's Annual Message, Fifty-seventh Congress, first session. The fact that a change of a given rate of duty may be thought desirable does not settle the question whether it is advisable to make the change immediately. — President Roosevelt at Minneapolis, April 4, 1903. The success of the capitalist, and especially of the banker, is conditioned upon the prosperity of both workingman and farmer. — President Roosevelt on the Law of Civilization and Decay — Ameri- can Ideals, p. 367. No nation has ever prospered as we are prospering now, and we must see to it that by our folly we do not mar this prosperity. —President Roosevelt at Union League banquet, Philadelphia, Pa., November 22, 1902. The United States has not the slightest wish to establish a universal protectorate over other American States, or to become responsible for their misdeeds. — From President Roosevelt's The Monroe Doctrine, American Ideals, p. 248. It would be hard to find in modern times a better example of successful constructive statesmanship than the American repre- sentatives have given to the Philippine Islands. — President Roose- velt at Providence, R. I., August 23, 1902. There are many qualities which we need alike in private citi- zen and in public man, but three above all — three for the lack of which no brilliancy and no genius can atone — and those three are courage, honesty, and common sense. — President Roosevelt at An- tictam, Md., Sept. 17, 1903, 546 The period of war 1m but n frn.ctlon.nl pnrt of the life of our Republic, nnd I earnestly hope .-mil believe tbnt it will be nn even siiiiillrr pnrt la the future thnn It linn been in the pnst.— — President Roosevelt nt Chnttunoogu, Trim., Sept. 8, 1002. The business world — thnt Is, the entire American world— can not afford, If it has any regard for its own welfare, even to con- sider the advisability of abandoning the present [protection] sys- tem. — President Roosevelt at Minneapolis, April 4, 1003. It is a {good lesson for nations and individuals to learn never to hit If it can be 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, 1003. As a nation we stand in the very forefront in the giant inter- national industrial competition of the day. We can not afford by any freak or folly to forfeit the position to which we have thus triumphantly attained.— President Roosevelt at Minneapolis, Minn., April 1, 1003. REPUBLICAN NATIONAL COMMITTEE. *,_ REPUBLICAN NATIONAL COMMITTEE 1904. George B. Cortelyou, New York, Chairman. Elmer Dover, Ohio, Secretary. Cornelius N. Bliss, New York, Treasurer. William F. Stone, Maryland, Sergeant-at-Arms. members of the committee. Alabama— Charles H. Scott, Montgomery. Arkansas— Powell Clayton, Eureka Springs and City of Mexico. California— George A. Knight, San Francisco. Colorado— A. M. Stevenson, Denver. Connecticut— Charles F. Brooker, Ansonia. Delaware— John Edward Addicks, Wilmington. Florida— J. N. Coombs, Apalachicola, Georgia — Judson W. Lyons, Augusta and Washington, D. C. Idaho — W. B. Heyburn, Wallace. Illinois— Frank O. Lowden, Chicago. Indiana— Harry S. New, Indianapolis. Iowa— Ernest E. Hart,, Council Bluffs. Kansas— David W. Mulvane, Topeka. Kentucky— John W. Yerkes, Danville and Washington, D. C. Louisiana — Maine — John F. Hill, Augusta. Maryland— Louis E. McComas, Hagerstown. •Massachusetts— W. Murray Crane, Dal torn Michigan— John W. Blodgett, Grand Rapids. Minnesota— Frank B. Kellogg, St. Paul. Mississippi— L. B. Moseley, Jackson. Missouri— Thomas J. Akins, St. Louis. Montana — John D. Waite, Lewiston. Nebraska— Charles H. Morrill, Lincoln. Nevada — Patrick L. Flanigan, Reno. New Hampshire — Frank S. Streeter, Concord. New Jersey — Franklin Murphy, Newark. New York— William L. Ward, Port Chester. North Carolina— E. C. Duncan, Raleigh. North Dakota— Alexander McKenzie, Bismarck. Ohio— Myron T. Herrick, Cleveland. Oregon— Charles H. Carey, Portland. Pennsylvania— Boies Penrose, Philadelphia and Washington, D. C. Rhode Island— Charles R. Brayton, Providence. South Carolina — John G. Capers, Charleston. South Dakota— J. M. Greene, Chamberlain. Tennessee— Walter P. Brownlow, Jonesboro and Washing- ton, D. C. Texas— Cecil A. Lyon, Sherman. Utah— C. E. Loose, Provo. Vermont— James W. Brock, Montpelier. Virginia— George E. Bowden, Norfolk. Washington— Levi Ankeny, Walla Walla and Washington, D. C. West Virginia— N. B. Scott, Wheeling and Washington, D. C. Wisconsin— Henry C. Payne, Milwaukee and Washington, D. C. Wyoming— George E. Pexton, Evanston. The Territories, District of Columbia, Hawaii, Porto Rico, and Philippine Islands. Alaska— John G. Heid, Juneau. Arizona — W. S. Sturges, Phoenix. New Mexico— Solomon Luna, Los Lunas. Oklahoma — C. M. Cade, Shawnee. Indian Territory — P. L. Soper, Vinita. District of Columbia— Robert Reyburn, Washington, D.