of food and of many other necessities was not fully com pensated by the rise of the wages and incomes of the masses. Partly the growth of this sentiment accompanied the agita tion against trusts and the belief that protective duties in some cases were an aid to the formation of domestic monop olies. But, more fundamentally, this changing sentiment was the result of the changing industrial conditions in America. The character of our foreign trade had altered greatly since the early nineties. We were importing relatively less and less of manufactured and finished products, and more of raw materials; and we were exporting less and less of raw materi als and more of finished products. A growing number of manufacturers were feeling the need of cheaper raw materi als and were looking hopefully toward an enlargement of their foreign trade.
In view of the changing public sentiment, the Republicans in the campaign of 1908 admitted that the protective tariff needed to be revised, but they declared that it should be revised by its friends. It was doubtless the general under standing that "revision" in this promise meant' revision downward, though this was left somewhat unclear in a cam paign wherein the tariff played a somewhat minor part. The Republican platform formulated a new rule for maintaining "the true principle of protection," namely, that it "is best maintained by the imposition of such duties as will equal the difference between the cost of production at home and abroad, together with a reasonable profit to American industries." This rule though fallacious, is very attractive in its sugges tion at the same time of the idea of a moderation of the tariff and of an exact practical (not to say scientific) stand ard for the determination of the proper rate in every 13. The Payne-Aldrich tariff, 1909-1913. The tariff act of 1909 was the attempt of the successful party to re deem its campaign promises in regard to the tariff. Many
changes of rates were made, both downward and upward.
9 See f 12 in ch. 16.
It was estimated that rates were reduced in 584 instances, affecting 20 per cent of imports. These changes included placing hides upon the free list (taxed 15 per cent before,) and cutting down the rate on leather, shoes, coal, lumber, iron ore, pig iron, and steel-rails. But on the other hand Fig. 3, Chapter 14, is a continuation, on a different scale, of Figure 1 (seven years, 1909-1915, overlapping, to make comparison easier). The increased valuations from 1916 to 1919 reflect mainly price in creases, and the enormous increase in 1920 evidences, in addition, the strenuous, yet inadequate effort of the rest of the world to keep on trading with us without getting more deeply into debt. The dates are for fiscal years.
rates were increased in three hundred instances (including many items in the cotton schedule). The general belief that little reduction was effected, on the whole, was confirmed by the experience under the act. As compared with the last two years (1908-1909) of the Dingley tariff the first two years of the Payne-Aldrich tariff showed a decline of 1.5 per cent, and on free and dutiable a decline of less than 3 per cent. These reductions in the statistical results are no greater than occurred within like periods while the Dingley Act continued in operation without change." Probably no tariff since "the act of abominations" in 1828 has called forth more widespread criticism than this one, and the tariff became a leading issue in the campaign of 1912. After 1910, The House being Democratic, many bills to re duce duties were presented, and some were passed by both houses; but all were vetoed by President Taft, mainly on the ground that it would be best to await the report of the tariff board which had been authorized and appointed for the purpose of ascertaining the cost of production referred to in the "true principle of protection." § 14. The Underwood tariff, 1913. After President Wil son was inaugurated, March 4, 1913, the tariff was at once taken up by Congress. The general features of the act that was passed were as follows: (a) Considerable additions to the free list of raw materi als.