CHAPTER X

THE DINGLEY BILL

Two months after the Wilson Bill became a law, the Democratic majority

in the House of Representatives suffered as thorough a reverse as had

the Republicans in 1892. The House stood, after the election, 246

Republicans, 104 Democrats, and 7 Populists. The South returned 33

Republicans. The painful failure of Congress to make the honest and

thorough revision of the tariff which the country had expected was

certainly one cause of the party’s overthrow. Honorable men could not

sanction the scandal and barter which had attended the making of the new

law. But there were other and powerful causes for the defeat. There was

the silver question. With every month it became more certain that silver

was to be the issue in the next campaign. There was a possibility at

least that the Republicans would continue to make the issue their own.

The group of Western Republican Senators who in 1890 had voted for a

tariff bill of which they did not approve in order to get votes for a

silver bill of which the voters did not approve, were more hotly devoted

to free silver than ever,—more determined to make it a party measure.

Already several Republican State Conventions had declared for it. Among

the New England Congressmen there seems to have been a willingness to

prepare the way for some kind of action, at least to consider free

silver, for in the spring of 1894 Henry Cabot Lodge made a conciliatory

and ambiguous speech on the subject in the Senate and there were others,

who like him seemed to be ready to go either way. On the other hand,

free silver had no hope with the then dominant faction of the Democratic

party. Mr. Cleveland and his supporters were willing to go down to

defeat rather than even seem to encourage the fallacy. Free silver then

carried many voters to the Republicans in the fall of 1894.

The strongest reason for the overthrow was the least sound. It was an

unreasoning revolt against the party because of the panic of 1893 and

the long period of hard times which had followed it. The panic happened

after Mr. Cleveland was nominated, and therefore his election and his

policy caused it! The public overlooked entirely the fact that hard

times, failures, falling prices, and labor troubles had begun soon after

the passing of the McKinley Bill and had steadily become graver with

every month of its life. Between 1890 and 1894, the period the McKinley

Bill was in force, Ohio-scoured wool fell from 71½ cents to 44½ cents, a

drop of 27 cents. In 1896, under the Wilson Bill, wool began to revive.

Bessamer pig-iron fell off from $18.00 to $12.00 per ton between 1890

and 1894. These same tendencies were shown in nearly all prices where

the articles carried prohibitive tariffs. Almost, if not quite as great

a fall in prices occurred in 1890, 1891, 1892, and 1893 under the

McKinley Bill, as after the Wilson Bill went into effect and a lower

duty had been added to the general depression. The tariff considered the

fall was greater under the McKinley Bill on many important articles.

Take steel rails; under the McKinley Bill of 1890, they bore a duty of

$13.44 per ton. In 1890 they sold at an average price of $31.77. In 1891

the price fell to $29.91; in 1893 to $28.12½. The Wilson Bill reduced

the duty on rails to $7.84. The average price the first two years after

the bill went into operation was $24.00, and in the third year the price

rose to $28.00. The lowest price at which steel rails have ever been

sold in this country was in the first year of the Dingley Bill, $17.00

per ton. After the duty was put on barley for the farmer by the McKinley

Bill, the price went up for one year, 1891, but in 1892 it fell off 10

cents, and in 1893, 14 cents. Free barley and the continued depression

did little worse.

Hides had no duty under either the McKinley or the Wilson bills. The

price began to fall in 1892, reached its lowest level in 1894, and in

1895 rose higher than it had been in many years. All woollen goods fell

under the McKinley Bill and began to recover in 1896. Measured by

business failures and labor troubles, the period of the McKinley tariff

was as disastrous as that of the Wilson. Indeed, there is quite as much

reason for laying the panic of 1893 to one bill as to the other, but

neither was responsible.

The new Congress, which was elected in the fall of 1894, first met in

December, 1895. Mr. Reed was elected speaker of the House and Nelson

Dingley, also of Maine, was appointed chairman of the Ways and Means

Committee. Mr. Dingley was a man over sixty years old, a hard-working,

conscientious, experienced politician. He had been born and educated in

Maine. He had been one of the state’s best newspaper editors and had

filled, one after another, nearly all her offices, that of governor

included. In 1881 Mr. Dingley was sent to Congress, where he had soon

become invaluable because of his extraordinary fund of information on

all sorts of subjects, particularly on all things relating to American

history and American industry. He held the doctrine of protection in

much the same pious regard as did Mr. McKinley. For him it was a settled

dogma—the only question was the amount of a duty, and to the estimating

of that he brought an amazing patience in calculation and in

investigation. His colleague, Mr. Boutelle, once said that he had for

years lived in the same hotel with Mr. Dingley and that he had never

entered his room that he did not find him surrounded by documents, a pad

on his knee, laboriously digesting them for his purposes. Facts alone

stirred his mind. No man was ever witty enough or wise enough to impress

Nelson Dingley, but no fact was too unimportant to receive his

attention. It is obvious that any tariff bill he directed would be

carefully made.

The first business of the new Congress was to provide revenue. Mr.

Cleveland’s administration had inherited, as already pointed out, a

deficit of nearly $70,000,000. The tariff bill which had been revised to

increase the revenue had failed. The sugar refiners, finding that a duty

was to be put on raw sugar, had brought in enormous quantities, free, to

hold for their needs. Thus, by their foresight, the treasury in Mr.

Cleveland’s first year was despoiled of revenues it had a right to count

on. Again, the income tax on which they depended for a large sum was

declared unconstitutional. Something had to be done to bring in more

money. The Republicans had decided to use their power to put back the

tariff on wool and to increase that on a variety of manufactured

articles, and on December 26, 1895, Mr. Dingley reported a bill

providing for these increases. The bill was passed at once by the House.

Its fate in the Senate shows how thoroughly the tariff had already been

replaced by free silver. The Finance Committee did not report it, but

recommended to the Senate that the needed revenue be raised not by the

House bill, but by the free coinage of silver; and pathetically enough,

poor Mr. Morrill, who for forty years had struggled for sound money, was

obliged, as chairman of the committee, to report the measure.

This putting of the tariff in second place was the more evident as the

time approached for the National Convention of 1896. Silver was the

question in which the real interest lay, not the tariff. Nevertheless,

the wool-growers and woollen manufacturers, the Iron and Steel

Association, the high protectionists everywhere, began, months before

the Convention, a determined campaign to commit the Republicans to

tariff revision as a leading issue, and to name William McKinley for

President. “Bill McKinley and the McKinley Bill” seemed to them a slogan

sufficient in itself to win an election. They had their way. The

platform declared protection to be the “bulwark of American industrial

independence and the foundation of American development and prosperity.”

It also declared with evident reluctance its opposition to the free

coinage of silver except by international agreement with the leading

commercial nations of the world.

The intention of the wool and the iron and steel interests and their

allies to force the tariff to the front in the campaign, was frustrated

at once by the extraordinary sweep to silver in the Democratic

Convention and the revolt to that party of a large body of leading

Republicans. If the election was to be won at all, it had got to be won

by an unequivocal and whole-hearted stand for the gold standard and to

that Mr. McKinley was forced, half-silverite as he was, after a few flat

efforts to arouse enthusiasm for the bill of 1890. It was McKinley and

the gold standard, not Mr. McKinley and prohibitive tariffs, which was

opposed to Bryan and free silver, and in 1896, Mr. McKinley won by the

votes of the Gold Democrats. It is probably true that many of them were

given to understand that the Republicans would let the tariff alone or

at least would not be in a hurry to revise it: at least that claim was

made by men of character and intelligence. It was hardly Mark Hanna who

could have made such a promise. Mr. Hanna knew too well what his backers

in iron and steel and wool expected, and would demand for their

contributions. That these contributions were large, there can be no

doubt. James M. Swank, the general manager of the Iron and Steel

Association, has said that more money was spent to elect Mr. McKinley

than had been spent to elect Mr. Harrison, and certainly Mr. Swank was

in a position to know.

At all events, the work to which Mr. McKinley called Congress in extra

session immediately after his inauguration, on March 4, 1897, was not

establishing sound money; it was raising more revenue by duties “so

levied upon foreign products as to preserve the home market as far as

possible to our producers; to revive and increase manufacturers; to

relieve and encourage agriculture; to increase our domestic and foreign

commerce; to aid and develop mining and building; and to render labor in

every field of useful occupation the liberal wages and adequate rewards

to which skill and industry are justly entitled.” Why Mr. McKinley

expected a new bill to do what his own had not been able to do, he did

not explain.

The new bill was almost ready to report when the extra session was

called, for Mr. Dingley and his committee had been at work all of the

preceding winter preparing it. A sincere effort was made to give a good

bill according to Republican lights. “We expect,” Mr. Dingley wrote

Colonel George C. Tichenor, who was assisting him, “to cut nearly all

our duties considerably below those of the act of 1890.” In not a few

cases, Mr. Dingley accepted the Wilson rates practically as they stood.

This was true of the metal and cotton schedules. He felt safe in doing

this, because, as he said, they were “really made by the manufacturers.”

Throughout the schedules the committee aimed to replace the Wilson

specifics by ad valorems and, of course, this caused more or less

uncertainty as to whether or not by the change those rates had not been

raised more than the committee acknowledged. The Democrats charged that

they had, but the fact seems to be that Mr. Dingley sincerely aimed to

keep duties nearer, if possible, to the Wilson Bill than to the McKinley

Bill. The committee particularly desired to escape the charge of fixing

prohibitive duties. This had been done in 1894, professedly to cut down

the revenue, and the mischief it had worked the party was not yet

forgotten. In spite of the repeated assurances of Mr. Dingley that the

extremes of the bill of 1890 were to be avoided, the committee did

report many rates as high and a few even higher; for instance, the

duties on flax and linen were advanced. A number of the unimportant

articles which the old bill had put on the free list were put back in

the dutiable list, as were nearly all the important articles made free

by the Wilson Bill,—wool, salt, lumber, cotton bagging, cotton-ties, and

burlaps.

Works of art had been made free by the Democrats; the Dingley Bill

restored the duty. One reason given was that “many objects having no

artistic quality or merit whatever, and calculated rather to corrupt

than encourage art or culture” were being imported! Foreign books, that

is, “books in language other than English,” over twenty years old,

engravings, etchings, music, maps, scientific books and periodicals and

supplies of all kinds for colleges, libraries, galleries, and

laboratories had been allowed to come in untaxed by the Wilson Bill; all

these duties were restored by the Dingley Bill. Travellers were again

subjected to the irritation of having their luggage overhauled, and the

amount of purchases allowed them was reduced to $100.00. This

exasperating tax first appeared in the McKinley Bill; here the limit

fixed was $500.00. The Democrats dropped the clause but it was now

restored. But in spite of these mediæval provisions, the Dingley Bill,

when presented to the House on March 19, 1897, was a fairly good

protectionist measure, certainly a real improvement on the McKinley

Bill. There were fewer prohibitive rates, less contradiction, and less

quakery.

In introducing the bill, the Republicans had laid down a program for

rushing it through the House by March 31, and this was carried out,

under protest, of course. The bill did not come to the Senate from the

Finance Committee until May, and it came back with many changes. Mr.

Aldrich, the chairman of the committee, claimed that on the whole these

changes were downward. He was emphatic in his assertions that moderate

duties were expected by the country. It was “thoroughly understood in

the last political campaign,” said Mr. Aldrich, “that if the Republican

party should be again intrusted with power, no extreme tariff

legislation would follow. It was believed, in the changed condition of

the country, a return to the duties imposed by the act of 1890 would not

be necessary even from a protective standpoint.

“Industrial conditions in this country, with very few exceptions, do not

demand a return to the rates imposed by the act of 1890. The bitter

contest which is going on among the leading nations of the world for

industrial supremacy has brought about improvements in methods and

economies in production to an extent which was not thought possible a

few years ago. These new conditions must be taken into account in

considering the rates to be imposed.”

When the Finance Committee had believed the House rates extreme, Mr.

Aldrich said that they had lowered them. A comparison of the bills shows

that this was the fact in the case of the chemical, the earthen ware,

and the glass and metal schedules. There were also reductions on certain

parts of the wool schedule. While the Senate amendments, on the whole,

aimed at lowering rates, they also aimed, like the House bill, to

protect everything which asked protection. The sugar schedule had

undergone material changes and mysterious ones. The rates on all but the

lowest raw sugars were higher than they were in the Dingley Bill, and

there was a gap between sugars of 87° and 88° polariscope test much

wider than between any other two grades. This exceptional differential

was effected by such indirection that there was an immediate cry that

Mr. Aldrich was trying to play into the hands of the sugar trust. The

schedule was twice changed in the Senate, but when the bill came into

conference Mr. Dingley succeeded in having the House rates restored.

The political make-up in the Senate in 1897 was such that it created for

the Republicans a situation not unlike that of the Democrats in 1894.

Their Republican majority was considerable, but there was a group of

this majority interested in free silver and not in the tariff, and it

could not be counted on. If they supported the bill, it would be in

return for concessions which they might ask. Almost at once it developed

that this group was going to use its power to raise the duties on all

grades of wool higher than the House or Senate had proposed to do. Wool

had been free under the Wilson Bill. To cut a duty on an important

product like wool 11 and 12 cents a pound without giving time for

adjustment, of course causes a severe strain on a business even in

prosperous times; to do it at a moment when all business is depressed

and when the particular product, as in the case of wool in 1894, has

been suffering ups and downs for many years, is to increase the strain

dangerously near the breaking point. Free wool did intensify an existing

distress but that the sheep growers would not have rallied from it and

adjusted themselves in a very few years, no disinterested person can for

a moment believe. If they had been willing to do this, there is no doubt

that the business of wool-growing would be on a more solid basis to-day

than it has ever been in this country. It would be conducted according

to those laws of supply and demand which govern trade, and not be

subjected, as it is now, to periodical excitations and depressions as

public opinion forces duties up or down. The wool-growers had no

thought, however, of accepting the situation as long as they had

political power. Judge William Lawrence, the president of the National

Wool-Growers Association, kept up a clamor throughout the campaign, and

when the new bill was under consideration, demanded rates higher than

wool had ever received. He was sternly rebuked by strong protectionists

for his greed. “Any revision of the tariff,” one influential interest

allied to him, said, “which carried such rates of duty on this raw

material, would not only fatally hamper the American wool manufacturer,

but would excite on the part of the people such natural opposition, by

reason of their prohibitory character, that their enactment would

necessarily be followed by agitation for their repeal, an agitation

which would grow and gather and continue until it finally resulted in

still another tariff revision, perhaps at the end of four years. To

insure any degree of permanence to the tariff law about to be enacted it

is necessary that, in so important a schedule as this, it shall commend

itself to the popular judgment as one constructed on fairly conservative

lines. The schedule proposed by Judge Lawrence far exceeds in its

proposed rates of duty any schedule ever before demanded with reference

to any article, either raw or manufactured, in connection with any

revision of the tariff ever undertaken in the United States.

“It is not necessary in this connection to undertake any analysis of

these proposals. Their significance will at once be apparent to every

wool manufacturer. Their enactment would be tantamount to a blanket

provision in the law to the effect that ‘the importation of wools of

foreign growth is prohibited, on and after the passage of this act.’

Such a wool schedule would not only be fatal to the wool manufacturer,

but equally fatal to the wool-grower; for it would enormously restrict

the use of domestic wool, which would be superseded by foreign wool

imported in the manufactured form.”

But Judge Lawrence and his Association, as had been proved in 1883 and

again in 1890, held moderate protection as little better than free

trade. They wished to shut out all foreign wool. They refused to modify

their demands now, and when both House and Senate Committees put the

rates down, they turned on their representatives with a demand that

their wants be satisfied. That they could rally a group strong enough to

defeat the bill was plain. The Western silver Senators were also wool

Senators. They took no interest in the bill as a party measure; they

would gladly defeat it if it did not give them what they wanted.

Moreover, the demand for a duty on wool was supported by a group of

Eastern woollen manufacturers who had always exercised great political

power. This was the group known as the National Association of Wool

Manufacturers. Although they deplored Judge Lawrence’s extreme demands,

they stood for a duty on wool. In the judgment of this Association, they

must either support the wool duty or be prepared to abandon their own

protection; accordingly they now resolved that “an impartial application

of the principle of protection is essential to a complete and uniform

development of the industrial resources of the nation,” and they

“earnestly” seconded the appeal for a duty on wool. This resolution they

sent to the wool-growers, who naturally had always been suspicious of

the support of men willing to work for a law which made their own

materials dearer, with a private note, assuring them that “a spirit of

sympathy and fellowship” towards all wool-growers animated the

Association. That his spirit was far from animating all in the business,

the loud protests against taxing wool which came from many leading but

non-political woollen manufacturers at this time is evidence. So strong

was the vote the wool interest mustered that the Senate finally yielded

in its fight for the lower duty. Eight and 9 cents a pound on clothing

and combing wool were what it had been struggling for; 10 and 11 cents

were granted: but when the bill went into conference these rates were

advanced to 11 and 12 cents, making the duties exactly what they were in

the McKinley Bill. The duty on wool of the third class, that is, on

carpet wool, was raised higher than in the bill of 1890, an entirely

indefensible increase. We did not then and do not now raise carpet wool

in this country. Our land is too valuable. But the Western growers of

coarse wool had been told that carpet wool was being imported free for

use in cloth-making, that it was “deplacing” American wool, and they had

demanded that it should be taxed. It is probable that a small amount of

carpet wool did and still does find its way into certain clothes, but it

is a negligible amount, and to put a tax upon the raw material of an

entire industry, making every yard of domestic carpet dearer for the

sake of protecting the scared wool-growers of the West against a purely

imaginary competition was as silly as it was unjust.

The demand of the wool-growers that the prohibitive duties on all kinds

of wool substitutes be restored, was imperative. By raising the cry of

“shoddy” they could wrest a duty from Congress on any material, no

matter how valuable to the manufacturer. Perhaps no word has been more

unjustly degraded in the history of industry in this country. The world

has never produced enough raw wool to meet the demand for woollens. It

has always been necessary and probably always will be necessary, to use

wool waste and wool rags. Ingenious machines have been devised for

preparing all this material for the manufacturer. It is a legitimate

part of the business, and one that helps to provide warm, cheap clothing

for the poor. “It would be as unreasonable,” says one authority, “to

despise paper makers because they use up linen rags, or to despise dyers

who use colors made from coal tar, as to despise manufacturers who use

up waste woollen rags as shoddy. It is said that 125,000,000 pounds of

shoddy, mungo, etc., are manufactured into wool every year in England

alone. If this immense quantity were wasted, it is difficult to estimate

the increase which would take place in the price of wool and the

consequent dearness of cloth; but the result would be that countless

persons would be unable to afford proper clothing.” The wool-growers cut

off all importations of shoddy in the new schedule. It would displace

American wool. As we shall see, it drove the manufacturers, not to use

more wool, but to find a substitute for wool.

Of course, the McKinley rates on raw wool meant the McKinley rates on

woollen goods, that is, if the National Association could get them. In

principle, they were those of the compact of 1867, between the two wings

of the wool industry, which rates have already been explained. They

provided for compound duties; that is, one set of duties which made up

to the manufacturer for the tax he paid on his raw material—the aim

being, of course, to put him on the same basis as his foreign rival—and

a second set which was purely protective. In estimating the first class

of duties, the National Association demanded that four pounds of wool

should be reckoned to a pound of cloth. It had been shown again and

again that it was only “sometimes” that this amount of wool was required

for a pound of cloth, that the effect of the ratio was to make all of

the heavy-shrinking wools for which four or more pounds were needed too

dear to be imported, and at the same to give an entirely unnecessary

compensation to cloth goods made from wools which shrink but slightly.

When the point was made, the National Association raised a hue and cry,

and Congress was warned to respect its influence as it had been in 1890.

When it came to the duties for protection the Association which had

protested against the greed of the wool-growers in demanding high duties

showed themselves equally greedy and more successful; for the

wool-growers, except in the case of carpet wools, which we do not

produce, had to content themselves with the McKinley rates, while the

woollen manufacturers were able to raise the duty on the goods which are

chiefly imported to the highest point it had ever touched, 55 per cent.

It is interesting to note that in the compact of 1867, to which the

Association constantly appealed in the making of the Dingley Bill as it

had in earlier bills, 25 per cent was considered a proper protection for

the goods on which the Association now asked and received 55 per cent.

When the bill finally passed the Conference it carried the same puzzling

provision for a duty on wool tops as had been put into the McKinley Bill

on the suggestion of the then president of the National Association of

Wool Manufacturers, Mr. William Whitman. As we have seen, this was not a

clearly stated figure: tops were to carry the duty of the basket clause

of the schedule. Figured out, this amounted to a higher duty on tops

than the bill provided for yarn, which is the more advanced stage of

wool on its way to cloth. There was opposition to this duty and

grumblings of manipulation, but it was many years before the truth about

it became public property.

The success of the National Association in getting into the bill exactly

what it wanted was generally believed by those who knew what was going

on in Washington at this time to be due to the confidential relations

with the Finance Committee of the secretary of the Association, S. N. D.

North. During the making of the Wilson Bill, Mr. North was known to have

had a desk in the office of Senator Aldrich, and from that vantage

ground to have made a desperate but unsuccessful attempt to secure for

the industry he represented something of the favor which other lobbyists

were wresting from the Democrats. During the making of the Dingley Bill

he occupied the same inside position. To all appearances he was a

confidential clerk of Mr. Aldrich’s; as a matter of fact, he was a paid

representative of the woollen manufacturers, looking after their

interests while apparently aiding the Finance Committee as he could.

That Mr. Aldrich, himself, did not understand the real nature of the

wool schedule finally adopted, one can hardly doubt, for he told Mr.

North at the time, according to a letter the latter gentleman wrote to

Mr. Whitman: “I don’t suppose this tariff is going to last long, because

the rates are so high; but I am perfectly willing that the wool

manufacturers should have all that there is in it and that the tail

should go with the hide.”

The influence on the bill of this despotic power of the wool interests

was similar to that of sugar on the Wilson Bill, but it did not make

itself clear in the Senate as it had in the earlier bill. It came out in

the conference of the two Houses which followed the passage of the bill

by the Senate on July 7. Some 872 amendments had been tacked to the

measure and the conference spent nearly a fortnight over them. When

finally reported, the rates were generally higher than either the House

or Senate had advised. It was impossible to give to wool all it demanded

on a threat of defeating the bill, unless other interests were favored,

and so it happened that when the Dingley Bill was finally passed, it

was, on the whole, a more oppressive measure than the McKinley Bill.

Moreover, it was made more oppressive by a House and Senate whose

leaders had declared from the beginning of their work that the country

asked and had been promised moderate duties. It was as real a breaking

of promises as the Wilson Bill was a surrender of principles.

And there was a general feeling among those who had made it, and in the

Administration itself, that as Mr. Aldrich told Mr. North, duties were

too high and would have to come down. What would have happened if the

public mind had continued to be occupied with the tariff as it had in

1890 and in 1894, it is difficult to say. It is not probable that there

would have been any such revolt as the McKinley Bill caused. The

disillusion the country had suffered over the ability of the Democrats

to carry out consistent reforms was too keen. Moreover, what industry

wanted and needed more than anything else was to be let alone; even the

most irreconcilable of tariff-for-revenue only men could have hardly

counselled another revision at this juncture. The Dingley Bill, bad as

it was, did not stir the popular mind. Silver occupied it, and silver

was soon displaced by the most absorbing interest which a country can

have—a war—and the war was followed by the question of imperialism, and

imperialism was not settled before the country had entered on a period

of such magnificent and bewildering prosperity as it had never before

dreamed. The heavy decline in prices which had begun in 1891 reached its

lowest point for raw materials at the end of 1896, for manufactured

goods in 1897. It was not until 1904 that the prices which manufacturers

had received in 1890 were reëstablished, but after they were once

reached, they soared rapidly far beyond. As for raw materials, they

regained the ground they had lost much more quickly.

Wealth of all descriptions began to increase in an unheard of way. In

1897 the gold and silver produced in the United States was worth

something over $89,000,000; in 1900 this had risen to $115,000,000, and

in 1905, to over $122,000,000. While in 1897 we produced over 8,500,000

tons of pig-iron, in 1905 it was 16,500,000, and we were consuming about

all we produced. Of bituminous coal in these three years we produced

respectively 131,000,000, 189,000,000, and 281,000,000 tons. Of wheat we

grew in 1897 over 530,000,000 bushels, about the same in 1900, and in

1905 nearly 700,000,000 bushels. The cotton crop in 1897 was valued at

$319,500,000; in 1900 at $511,000,000, and in 1905 at $632,000,000. Our

hay averaged an annual value in this period of over $500,000,000; our

potato crop something like $150,000,000. The value of our farm animals

in 1897 was about $1,655,000,000; in 1900 it was $2,280,000,000; and in

1905 over $3,000,000,000. And so one might go on recording phenominal

growths of almost everything which the earth yields in return for man’s

labor. And never before had there been so rapid an increase in the

number of laborers available. We could bring in labor free and in this

period we used the privileges as never before. Immigration which in 1897

was but 230,000 rose in 1900 to 448,500; and in 1905 to over 1,000,000.

The great bulk of these newcomers were men of a working age, that is,

over fifteen and under forty. These great numbers were added annually to

those who already were at work in the country until in 1900 nearly

30,000,000 people were busy in this country, drawing from the earth the

materials of wealth, moulding them to men’s uses, and transporting them

to the markets where they were wanted, and these markets were not those

of the United States alone. Our home consumption was enormous, but we

bought and sold with all the nations of the earth in constantly

increasing quantities, selling always many millions more than we bought.

How much had the Dingley Bill to do with this great outpouring of

wealth? It certainly did not cause it. A wave of prosperity was sweeping

around the globe, as one of depression had from 1891 to 1897; England,

Germany, France, and the Orient, shared in the blessings. The Dingley

Bill could neither retard nor accelerate this. It could not and did not

grow a potato or produce a gold nugget, but it no doubt did cause more

of the materials we were producing to be manufactured at home than would

have been done under the Wilson Bill. Without it much of the capital and

labor given to manufacturing would have gone to agricultural uses and

commerce. Sheltered from competition, men aimed to make in the country

all that a highly prosperous home market would consume of necessaries,

of novelties, of ingenious conveniences, and of luxuries. The Dingley

Bill relieved the manufacturer of the necessity of considering what was

doing in his trade in other nations. This enormous advantage enticed

more capital proportionally than into other lines of industry. And as

the industry expanded, immigration was excited. Manufacturing as

conducted to-day requires much cheap labor. Save in the skilled work

where comparatively few are needed, American labor—naturalized foreign

labor, will not stay long. Immigration was necessary in order to supply

the cheap labor the textile and the steel and iron industries needed.

That is, the Dingley Bill may be credited with adding two or three

hundred thousand consumers yearly to our domestic market. The value of

this addition is doubtful when we examine the standard of living of the

immigrants, the amount of their earnings sent home, and the large

proportion of those who are transient, that is, who return to their

native land to end their days: just what this proportion is, it is

impossible to say, but something of its size may be judged from the

steerage passengers sailing annually from the ports of the United

States. In 1900, for instance, 448,572 persons came in by steerage, and

293,404 went out. In 1905 1,026,494 came in, and 536,151 went out. The

value of the increase in the size of the domestic market, which may

fairly be credited to the Dingley Bill, is less impressive also when it

is compared with the value of the markets of many millions we might have

been conquering at this time if we had had the shipping on the seas

which we once had, and which, as already has been seen, we have

destroyed by prohibitive tariffs on iron and steel and lumber, and by

hampering navigation laws.

The first uneasiness over the bill which its authors felt was along the

line of foreign markets. We were not conquering them as rapidly as we

ought, or as we must, if our tremendous production was to be disposed

of. That which the thoughtful had been warning against was happening. In

our zeal to produce, we had not intelligently arranged what we were to

do with our products. The Dingley Bill had, it is true, provided a

scheme of reciprocity. The really important provision in the scheme gave

the President power to negotiate trade treaties with any country,

subject to ratifications by the Senate. Mr. McKinley soon after his

inauguration appointed a special plenipotentiary to negotiate these

treaties,—John H. Kasson, who had always been a moderate protectionist,

and who had seen the capitulation of the party to the manufacturers of

the country with disgust and dread. Mr. Kasson undertook the work with

enthusiasm. By 1900 he had several treaties signed and before the

Senate. The most important one was with France. By this treaty we could

import into her territory a very large number of articles at a minimum

duty, and we in return were to give her a reduced duty on many of her

products. Not only Mr. Kasson, but Mr. McKinley himself urged the

ratification of these treaties. There was no doubt but that the public

generally favored them. But there had appeared in opposition the same

forces which had made the McKinley Bill, the Wilson Bill, and Dingley

Bill what they were,—political measures, trading contracts, by which for

so much influence, so much duty was given. These nervous, superstitious,

and greedy forces decided against reciprocity. The nature of their

opposition was very well summarized in one of the hearings on the

subject by a manufacturer who was himself in favor of the French treaty.

“We have striven to know, both before coming to Washington and since

our arrival here, what are the objections to the treaty. We have

been informed that the knit-goods manufacturers have been opposed to

the ratification of the treaty. We are now informed that of the

$100,000,000 worth of knit-goods consumed in the country last year,

only $240,000 came from France. We have been informed that the

manufacturers of pottery and silks were opposed to the ratification

of the treaty. We are now told that both industries have admitted

that no injury would be suffered by them. We have learned that the

manufacturers of spectacles have believed that they would suffer

injury, but they were shown that there would still remain to them

eighty-eight per cent of the present tariff; they have been

satisfied to believe that no injury would come to them. We have been

informed that the manufacturers of imitation jewellery object to the

ratification of the treaty. We understand that the treaty proposed

to reduce the duty from 60 to 57 per cent. We are further informed

that the probabilities are that the result of the treaty will

increase far more largely the exports of this class of manufacturers

from the United States to France than they import from France to the

United States.

“We have heard that opposition to the ratification of the treaty has

been based upon the proposed reduction in our tariff on prunes. We

find that our exports of prunes to France amount to $260,000, while

the imports of prunes from France to the United States amount to

$14,000. We have understood that manufacturers of chemicals, gloves,

and braids have stated that they will be injured by the ratification

of the treaty. After an honest effort to learn the facts in the

case, we are reduced to the conclusion that in actual working of

this treaty the injuries suffered by them would be problematical in

every case, and imaginary in most cases.”

Treaty after treaty was negotiated, but in spite of urgency from the

most respectable sources, Congress refused to act on them, and finally

in March, 1901, Mr. Kasson resigned. His chief did not give up the

cause, however, for in the memorable Buffalo speech of September 5,

1901, Mr. McKinley said:

“The period of exclusiveness is past. The expansion of our trade and

commerce is the pressing problem. Reciprocity treaties are in

harmony with the spirit of the times; measures of retaliation are

not. 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 expand and promote our markets

abroad?”

The very essence of all this opposition to free or freer exchange on the

part of the manufacturers was the fear of lower prices and cheaper

goods. They held as a part of their narrow economic philosophy, the

theory that the cheap coat makes a cheap man, that prosperity means

limited production and high prices. At bottom, the manufacturer

eliminates from his calculations all consideration of the consumer. But

the consumer exists, and finally, in spite of the enormous prosperity of

the country, the consumer was heard from. The Dingley Bill about 1900

began to hit the rocks for which it had from the start been headed.

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