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ral Union-and I venture to believe, my friends, that the most ardent advocate of the protective system will admit that the wonderful growth and prosperity of this country are attributable to this provision more largely than to any other one thing. With free commercial intercourse between the States our own internal commerce has steadily and rapidly grown until it amounts to thousands of millions of dollars; more than one hundred and twenty thousand miles of railroad have been constructed, over which almost innumerable trains are constantly passing, carrying manufactured and other articles of commerce from State to , State, while our great waterways are crowded with steamers and barges and other craft laden with the products of every part of the Union. The markets of New York are free as the markets of Philadelphia to the iron and steel and coal of Pennsylvania; as free as the markets of Savannah or Mobile or Charleston for the cotton and the fruits of the South.

THE RIVAL POLICIES ILLUSTRATED.

What a different picture this country presents from what it would have presented if the policy of restriction and protection had prevailed among the States as it has prevailed for so many years between the United States and foreign nations. Under the liberal policy established by the Constitution our means of internal communication and transportation have increased and are still increasing, while under the restrictive and obstructive policy of Congress our merchant marine, once the source of pride and profit, has almost disappeared from the seas, and unless something can be done to arrest its further decline it will disappear entirely. Free commercial intercourse between the States has increased trade, promoted the development of our resources, fostered agriculture and manufactures, and added untold millions to the wealth of the people; while the protective system maintained by Congressional legislation has, to a large extent at

least, shut us out from the markets of the outside world, limited production substantially to the demands of home consumption, and in many cases actually arrested the development of great industrial interests. Under this system, when any highly protected manufacturing industry has reached a stage of development which enables it to supply the home demand its growth must virtually cease because its products can have access to no other market.

ABUSE OF THE POWER OF TAXATION.

The Constitution not only prohibited the States from laying imposts or duties upon imports or exports, but it expressly delegated to Congress the power to lay and collect taxes, duties, imports, and excises to pay its debts and provide for the common defense and general welfare. This is simply the power to raise revenue for public purposes. It is wholly separate and distinct from the power to regulate commerce between the United States and foreign nations and among the several States and with the various Indian tribes, which is conferred by another clause of the Constitution. The two powers were delegated for entirely different purposes; and it is a monstrous abuse of the power of taxation to use it, not for the purpose of raising revenue, but for the purpose of regulating or prohibiting commerce. It is, if possible, a still greater abuse of that power to employ it for private instead of public purposes.

MR. CARLISLE'S PRECISE ATTITUDE.

Let no one, I pray you, misunderstand me upon this point. The experience of mankind has shown that it is almost, if not quite, impossible to devise any system or scheme of duties upon imports that will not to a greater or less degree either injure or benefit private industrial interests, and I have never hesitated to say that I would rather benefit them than injure them; but what I mean to assert is that when the primary or

principal object of the tax imposed by public authority is to foster a private interest it is not a legitimate use of the power of taxation, but is simply spoliation. Whether what is called protection, direct or incidental, is or is not really beneficial to protect industry is a question about which I imagine there will never be anything like perfect unanimity of opinion. But whatever may be our opinions upon that question, most of us will agree, I think, that there may be conditions under which it might not be wise to make a sudden change, even from a bad policy to a good one.

NEED OF CONSERVATIVE ACTION.

When manufacturing interests have grown up under a high protective system, and in a series of years have adjusted themselves to it, and when those engaged in them have be come accustomed to rely upon the bounty of the Government for support, it might be injurious and even disastrous to them to suddenly repeal or greatly reduce the duties. Such a course would seriously alarm many who have employed their capital in these enterprises, and when capital is really alarmed, even though it be without cause, the result, for the time being at least, is the same as if there were really danger. For these reasons, if there were no others, it has always been my opinion that it is the duty of Congress to proceed carefully and conservatively in its legislation on this subject having due regard at every step to the large interests involved. In other words, I am in favor of a reformation, not a revolution. But, Mr. President, this process of reformation must go on until the power of taxation is used only for proper purposes. There must be no step backward -nor any deviation from correct principle and sound policy. As I have already briefly intimated, this federal union is a commercial as well as a political one. Politically we are free; commercially we are not.

A STRANGE PERVERSION OF PRINCIPLES.

When our ancestors determined to rebel against the British system of government in America one of the principal causes alleged in the Declaration of Independence was that it had cut off their trade with all parts of the world. Is it not strange, my friends, that the Government established over this people by the same men will persist in the maintenance of a policy which must ultimately produce substantially the same result-namely, the cutting off of our trade with all parts of the world? Let us see to it the foundation for such an accusation against the Government of the Union is remarked as speedily as circumstances will admit. Taxation only for the purpose of raising revenue for the public use; commercial regulation in time of peace, only for purposes of protecting and fostering legitimate trade, will strengthen the Union, insure the prosperity of the people, and perpetuate the system of Government under which we live.

For myself, Mr. Chairman, I will cheerfully cooperate with all men and all organizations, by whatever name they may be known, in all proper efforts to bring about this grand result.

CHAPTER XXVII.

FREE TRADE FOR SHIPPING.

BY HON. JAMES G. BLAINE, LL.D.

WH

HEN you build a ship for the commerce of the world, you send it abroad to compete with every other ship in every other country. You are unable by your laws to give her any protection or to prevent the greatest competition from every other nation in the world. When you protect your manufactures at home by laying on a duty apon the same manufacture of other countries, why, sir, you shut out the entire competition of the world. If you levy an internal revenue tax upon our manufactures here, you at the same time raise the tariff duty in order that the internal tax may not depress the home manufacture or give an advantage to the foreign article. You raise the tariff in order that you may shut out foreign competition. . . .

I say further, Mr. Speaker, that I object entirely to this being considered a bounty to the ship-builder. I object utterly to it. I deny it. I deny that it is a bounty. I say that all the ship-builders ask is to be relieved from these burdens. There is a wide distinction in the logic and statement of the case. You find no protection to these ships. If I build a ship on the banks of the Kennebec, send her to Liverpool, and she meets a ship from the banks of the St. John, or from any other part of the world, now what pro

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