"Whereas, Those conditions exist and are largely due to the Republican policy of 'protection:' Therefore,
"Resolved, That the committee on finance be, and is hereby, directed to inquire into the effect of a policy of 'tariff for revenue only' upon the labor and the industries of the United States, and to report upon the same to the Senate."
The next day Mr. Hale made a brief speech upon the resolution, and was followed by Senator Vest, who quoted many documents, which were printed in the "Record," in support of his views. Several other Senators participated in the debate which continued from day to day.
The full report of the committee referred to, embracing three volumes of over six hundred pages each, was submitted to the Senate on the 19th of July, and on the 29th Senator John G. Carlisle, who, as a member of the committee, had taken much interest in the inquiry, and had participated in the conversational debate during the preceding month, made an elaborate speech upon the resolution and mainly upon the proposition advanced by him, that the result of the McKinley law was to increase the prices of commodities, while it did not increase wages. His speech was certainly a good specimen of logic by a well trained mind. His first proposition was that it was the unanimous opinion of scientists and statisticians, in all the great industrial and commercial countries of the world, that the prices of commodities had been decreasing, and the rates of wages, especially in those occupations requiring skill and intelligence, had been increasing; that capital had been receiving, year after year, a smaller percentage of the total proceeds of the product, and labor a larger percentage. He insisted that the tendency toward a decline in prices of commodities and an increase in the rates of wages is the necessary result of our improved methods of production, transportation and exchange. He said that anyone who contends in this day that high prices of commodities are beneficial to the community at large, is at war with the spirit of the age in which he lives, and with the genius of discovery and invention, which, during the last half century, has ameliorated the condition of mankind by bringing all the necessaries of life, and many of its luxuries, within the reach of every man who is willing to work. He then entered into an elaborate argument to show that the McKinley act interfered with this natural tendency towards a decline in the prices of commodities and a rise in the rates of wages, and made it harder and more expensive for the masses of the people of the United States to live.
I do not follow his argument, as, to treat him fairly, it would be necessary to state it in full. It was illustrated by carefully prepared tables.
On the same day, without preparation, I said I would not undertake to reply to the precise and fair argument made by the Senator from Kentucky, but took exception to the basis of his argument, that the cheapness of things is the great object of desire. I did not think so, though the report of the committee did not bear out his argument as to the effect of the McKinley law, but, on the contrary, showed that prices had declined and wages increased since its enactment. When cheapness comes by discoveries, by inventions, or by new industrial processes, the people ought to share in those benefits, but as a rule mere cheapness of things is not a benefit to the people of the United States, especially when they are the productions of the people of the United States. When the wheat of a farmer is worth only fifty cents a bushel or his cotton only seven cents a pound it is to him a calamity, not an object of desire but a misfortune. I proceeded at some length to answer the points made by Mr. Carlisle as I recalled them. I insisted that the magnitude of domestic production and the opportunities to labor were matters of greater importance than the prices of commodities. If our needs can be supplied by American labor it is a mutual advantage to both the laborer and producer. The larger the product of American labor the greater is the wealth and comfort of American citizens. If American labor is actively employed there can be no difficulty in the laborer obtaining the necessaries of life. I quoted the opinions of the Presidents of the United States, including Jefferson, Madison, Monroe and Jackson, as the friends and supporters of the doctrine of the present Republican party on the subject of protection. Mr. Jefferson, especially, announced, as among the first and vital principles of his party, the protection of American industries, the diversity of employment and the building up of manufactures. Andrew Jackson repeatedly made the same declaration. The platform upon which he was elected was "That an adequate protection to American industry is indispensable to the prosperity of this country; and that an abandonment of the policy at this period would be attended with consequences ruinous to the best interest of the nation."
I insisted that the object of protection—the employment of American labor—was of more importance than the price of food or clothing, though I believed, with Mr. Carlisle, that the tendency of a constant falling of the prices of the necessaries of life would go on without regard to the duties on imported goods, as the natural result of invention and skill.
My speech of an hour or two was frequently interrupted, but it contains the substance of opinions I have always entertained in respect to protective duties. My object has always been to seek to advance the interests of American workingmen in all kinds of industries, whether mechanical, agricultural, scientific or otherwise. Whether the cost of the necessities are increased or diminished by this policy is a matter of comparative indifference, so that the people are employed at fair wages in making or producing all the articles that can be profitably produced in the United States. The gist of my opinions on the policy of protection is contained in the following paragraphs of this speech:
"Whenever tariff duties are levied at a higher rate than sufficient to compensate our laboring men in the different rates of wages they are fairly entitled to receive, then I am against the tariff act. I have never favored any tariff that, in my judgment, did not furnish sufficient and ample protection to American labor. As to American capital, it needs no protection. The capital of our country has grown so fast, so large, so great, that it does not need protection. We are able to engage in any kind of manufacturing industry. We are able, so far as the capital of our country is concerned, to compete with foreign production. The rates of interest on money in this country have fallen very nearly, though not quite, to the European rates. Therefore, capital needs no protection. It ought to demand no protection, but it ought to demand, and it ought to receive, in every branch of American industry which can be carried on here with profit, that degree of protection which will enable the manufacturer to pay to the American laborer American wages, according to American standards, to satisfy the wants which are required by the average American citizen, and that is all that is desired."
Having referred to the principal measures of Congress during the long session of 1891-92, I recur to some of the personal events that followed my re-election. It was received with general approval by the press of the United States. On the evening of the 30th of January, 1892, the Ohio Republican Association, at Washington, extended to me a reception at the National Rifles' Armory. Several hundred invitations had been issued, and very few declined. The hall was beautifully decorated with flags, and in the gallery the Marine Band was stationed and rendered patriotic airs. I was introduced to the audience by Thomas B. Coulter, the president of the association. He deplored the illness of Secretary Charles Foster, who was to have delivered the address of welcome, and then introduced S. A. Whitfield, who made a complimentary address, closing as follows: