take as a basis of calculation the cost of the cloth as it came to the tailor’s shop, but we are to go back to the wool of the sheep, to the cost of shearing, to the cost of washing, to the cost of carting, and all this is to be added to the cost of the cloth, although the tailor has already paid it.” The opponents of the rates on steel products were loud in their trust alarm. They certainly had an effective example to hold up. Mr. Carnegie had begun to come into his own, as an illustration of what combined transportation and tariff privileges can do for an able manufacturer. He and his profits and his castle at Skibo figure in every debate on iron and steel products at this period. Even Senator Aldrich had grudgingly to admit a trust in steel beams, but he hopefully declared that if the prohibitive duty was retained, domestic competition would destroy the monopoly. Senator Sherman was not quite so hopeful as Senator Aldrich. He was at last beginning to feel some doubt about the infallibility of domestic competition. The reduction of the revenue which both parties recognized as of chief importance, the Senate bill sought to effect by the repeal or reduction of direct taxes on whiskey, tobacco, and alcohol used in the arts, and by reducing lower than the Mills Bill had the duty on sugar. An important principle which Mr. Aldrich adopted in his report was Mr. Kelley’s favorite argument that the way to reduce was to raise rates so high that people could not afford to import: that is, reduction by increasing taxation. Another significant feature of the document was the complete repudiation of the old promise to reduce rates when the extraordinary expenses of the Civil War had been fully met. “The practical question which we have to solve,” said Mr. Aldrich, “is not the date when duties were established or the circumstances or promises under which they were levied; but, the desirability of protection being conceded, it is what rates are proper and adequate under existing circumstances.” Equally significant was the almost exclusive attention Mr. Aldrich’s report gave to the manufacturer and his laborer. To hear him one would have gathered that the interests of the consumers could not be served except through protection. The almost exclusive attention given to the manufacturer by the Senate bill was only an expression of the appeal which the Republican party was making in the campaign for the presidency. The platform of the party had declared, “The protection system must be maintained”; such a revision must be made as would “check imports of such articles as are produced by our people, the production of which gives employment to our labor, and releases from import duties those articles of foreign production, except luxuries, the like of which cannot be produced at home. If there still remains a larger revenue than is required for the wants of the government, we favor the entire repeal of internal taxes rather than the surrender of any part of our