THE END OF MONOPOLY.

Wairarapa Age, Volume XXV, Issue 10713, 4 June 1913, Page 3

THE END OF MONOPOLY.

UNITED STATES' ATTEMPT TO END HIGH COST OF LIVING.

A NEW INCOME TAX

The new Democratic Congress of the United States held its first meeting on Monday, aid on Tuesday tho new- President (I)r Woodrow Wilson) read his messago to it. "The only dignified plan," he says. "This is tho first time in for 112 years that a President has done this, though John Adams, tho Second President, did it, FAR-REACHING RESULTS.

The first Bill introduced into the House of Representatives will have far-reaching results. It is a Tariff Revision Bill. Freetraders say that it "take s a great stride in the direction of Freetrade." The Democratic papers in the State say that "the Bill is the end not of Protection but of Monopoly." "Neither in principle or practice is it anything approaching pure Cobdenism," says tho Times' Washington correspondent. "The policy tliat underlies the Bill seemts to be to continue to tax .luxuries and to lower or abolish the duties upon necessaries, trust-produced commodities,, and natural products that are in danger of exhnustion."

PROTECTION v. COMPETITION. Mr Underwood, chairman of the Ways and Means Committee, in a statement accompanying the Tariff Bill, says: "In the judgment of the Committee, Protection, to be of any advantage to manufacturers,, must necessarily tend to destroy competition and 'to create monopoly, whetheo-that nrofit is reasonable or unreasonable." He argues, therefore, in favour of the gradual reduction of tariffs down to s uch a Imis as to make the American manufacturer develop his business along the besfNand most economical lines, and thus fit him to extend his trade in the markets of the world. "The future growth of our great industries lies beyond the seas." Tho Committee says that the Bill embodies "its views of a t.iriff revised to the basis of legitimate competition such as will afford a wholesome influence on our commerce and bring relief to the people in the matter of tho high cost of living and at the same time work no detriment to properly manufacturing interests."

What the new Bill does is thu s sot out bv the New York correspondent of the Daily M.iil : ON THE FREE LIST.

"It reduces by 50 per cent, the Protection at present afforded to the American farmer, removing altogether the tariff on many foodstuffs and articles of clothing,' including m6at, flour, bread, boots, shoes, milk, cream, salt, potntoes, wine, imize,

■;r r \ '«r wool. The duty on sugar it is proposed to reduce to 25 per .-out. forthwith arc! the remaining duty will he abolished in. 1916.

The following arc in the free list:— "Agricultural implements leather, wood, palp, printing paper, worth not more, than 2JKI a pound, typewriters. sewing midlines lumber, coal, harness, saddlery, iron ore, steel rails, cotton, ties, nails, type-setting machines, cotton bagging, cash registers, and band iron fish, sulphur. srda.' tanning, materials, acetic and sulnhuric acids. boi".x, stud lumber mod.icts. including broom handles,

hubs for wheel's, posts, 'a .h:>s. pickets, strive;- find shinsrles."

"On many luxuries the tariff is in-

rroiv-rd. On rough and uncut diaother precious stones, furs, and coal-tar products, the duty will ''-• 10 per cent., and on volatile oils 20 »ier cent.. Tfrastic reductions are •node in the duties on medicinal prena rations, soap, china, bicycles, cutlery, furniture, cotton, and wqpllen •annents, collars, cnffs, blankets, flannel and ready-made clothing. The object of the Bin is roundly described as" the breaking up of the Trusts and commercial conspiracies fostered by the high cost of living. It is estimated "thai the Bill will reduce the revenues 'by £16,000,000 a year, The new income tax will supply the deficiency. It is expected to realise £20,000,000. NEW INCOME TAX.

The new iricome tax is imposed on every resident in the United States, whose earnings exceed £BSO a year. "All net incomes of 4000 dollar s or less are exempt. All exceeding 4000 are taxed 1 per cent., which is designated the 'normal tax.' "Bhe Bill provides, however, certain additional s>;wtaxe s on a graduated scale, specifying a surtax of 1 per cent, additional on earnings exceeding 20,00( 2 per cent, additional on earnings above -30,000, and 3 per cent, addition.!] when exceeding 100,000." A BLOW AT PROTECTION. "President Wilson ha* s truck the heaviest blow at Protection which has been .delivered since Peel established Freetrade in thi s country, nearly 70 years ago. The new Tariff Bill is an event of Supreme moment, not only to the United States, but to the wo/'ld," s ays the Daily News. "It is a shattering attack on the whole fabric of Protection. It brings the United States at one huge stride within sight of Freetrade. "The reign of Protection has been ruinous to the United States in two ways, Through the monopoly prices it ha s given to the manufacturer* it has. 'plundered the consumer; through "the high cost of production it has destroyed their power of competition in the the world. As -to the claim'that it has benefited the worker, Piesident Wilson has declared that to be 'an audacious and

inpatient claim." Instancing the caro of the atoei trade k» said in one of his speeches: • ' "The steel BohecUilo I is ratdier satisfactory to ill« 6 who manufacture steel, but is it ncisfactory to those who rnako the st-:>el with their tired han<!ls? Don't \<)tl know that there "aire mills irv'which men ai'S made to work seven- days in the week for twelro hours a day, and in the 366 woary days in the year can't make enough to pay their bills? | "Agninst a fcystcra so socially ana-r- ---| chio President Wilson hua declared war to the knife. NO COMPROMISE. "There is no spirit of cbmpprcni-sa or hesitation in the new tariff. It make s straight for the complete abolition of taxes on the necessaries of life and of industry. Meats, flour, bread, sugar, raw wool, Ixwrts, lumber, pulp, leather, and inauy other comI modities are made free of duty. On i yards the duty is down from 7d to 20 per cent., on cotton cloth from 42 to 26, on flannel from 93 to 30, €n soap from 20 to o, and so on through all the articles of common consumption either in the home or the factory. The only increase apply to luxuries like diamonds, precious stones, furs, etc. "The effect of this great measure of justice will be felt in every home in tho United States. fiut it will not be felt in the home only. Industry will respond to the new impulse created by cheap raw materials, and a free competitive system. "When," said President Wilson on one occasion, "I hear the argument of so~ne pf the. biggest business men in the country that if you iaok the protection of the to riff off they would be overcome by the competition of the world, I ask where and when it happened that the boasted genius of Arnerica becru v afraid to go out into the open ar.d compete with the world ? The American business men have now to face that ordeal."