“But after the fortifications should be constructed would you still maintain the tax on whiskey?”
“Yes,” said Mr. Blaine, “So long as there is whiskey to tax I would tax it, and when the National Government should have no use for the money I would divide the tax among the Federal Union with specific object of lightening the tax on real estate. The houses and farms of the whole country pay too large a proportion of the total taxes. If ultimately relief could be given in that direction it would, in my judgment, be a wise and beneficent policy. Some honest but misguided friends of temperance have urged that the government should not use the money derived from the tax on whiskey. My reply that the tax on whiskey by the Federal Government, with its suppression of all illicit distillation and consequent enhancement of price, has been a powerful agent in the temperance reform by putting it beyond the reach of so many. The amount of whiskey consumed in the United States per capita to-day is not more than 40 per cent. of that consumed thirty years ago.”
After a few moments’ silence Mr. Blaine added that in his judgment the whiskey tax should be so modified as to permit all who use pure alcohol in the arts or mechanical pursuits to have it free from tax. In all such cases the tax should be remitted without danger of fraud, just as now the tax on spirits exported is remitted.
“Besides your general and sweeping opposition to the President’s recommendation have you any further specific objection?”
“Yes,” answered Mr. Blaine; “I should seriously object to the repeal of the duty on wool. To repeal that would work great injustice to many interests and would seriously discourage what we should encourage, namely, the sheep culture among farmers throughout the Union. To break wool-growing and be dependent on foreign countries for the blanket under which we sleep and the coat that covers our back is not a wise policy for the National Government to enforce.”
“Do you think if the President’s recommendation were adopted it would increase our export trade?”
“Possibly in some articles of peculiar construction it might, but it would increase our import trade tenfold as much in the great staple fabrics, in woollen and cotton goods, in iron, in steel, in all the thousand and one shapes in which they are wrought. How are we to export staple fabrics to the markets of Europe unless we make them cheaper than they do in Europe, and how are we to manufacture them cheaper than they do in Europe unless we get cheaper labor than they have in Europe?”
“Then you think that the question of labor underlies the whole subject?”
“Of course it does,” replied Mr. Blaine. “It is, in fact, the entire question. Whenever we can force carpenters, masons, ironworkers, and mechanics in every department to work as cheaply and live as poorly in the United States as similar workmen in Europe, we can, of course, manufacture just as cheaply as they do in England and France. But I am totally opposed to a policy that would entail such results. To attempt it is equivalent to a social and financial revolution, one that would bring untold distress.”
“Yes, but might not the great farming class be benefited by importing articles from Europe instead of buying them at higher prices at home?”