The Tariff in Our TimesTarbell, Ida M. (Ida Minerva)
History
The Tariff in Our Times
Tarbell, Ida M. (Ida Minerva)
Tariff -- United States -- History
The only effective bit of tariff legislation in this period, 1876 to
1882, was due largely to the Parsee Merchant—the removal of the duty on
quinine. The wholesale price of this medicine, enormous quantities of
which were consumed, particularly in the Middle West, had risen in 1877
and 1878 as high as $4.75 an ounce, the highest point recorded in the
history of the business. The Parsee merchant took up the matter in the
press. The duty on quinine—40 per cent—was, he declared, “a sickening,
disgraceful blood tax.” It was made by only four houses in the United
States, all of them manufacturing chemists who were growing enormously
rich—which was true. They brought in their bark free, and they were able
to make their own price for the product. The press took up the cry.
Frightened by the popular indignation, one firm of quinine manufacturers
offered Moore $100,000 to withdraw his opposition. Several young
Congressmen saw the chance, and in rapid succession ten different bills
repealing the duty on quinine were brought into the House. The one
brought to vote was introduced by James McKenzie, a young Kentuckian. It
went through without debate, a victory which earned for Mr. McKenzie a
name by which he is called to-day in Kentucky—“Quinine Jim!”
The Senate was less in a hurry about the quinine bill, for there it met
the opposition of Mr. Morrill, who on principle had always fought
against legislating a duty off or on a single article without
considering those related to it. He pointed out now that the makers of
quinine used several articles on which they had to pay duty—fusel-oil,
distilled spirits, soda ash, East India bark (if they used that variety,
which few of them did). To compel the manufacturers to pay these duties
and give them no compensating duty on their product was unfair. But the
tide was against him. “Raise a cry of ‘mad dog,’” Mr. Morrill commented,
“and the dog is sure to die.” And he did—the bill passed.
As a matter of fact the effect of the removal of the duty was magical.
In five years from the date the bill became a law—July, 1879—quinine had
fallen from $3.40 per ounce to $1.23, and in ten years, July, 1889, to
35 cents, in 1905 to 21 cents. The quinine manufacturers were
thunderstruck. They declared that they were ruined, and very likely they
believed so. At all events, they discharged their hands and closed their
works. As the country was not moved to tears by the spectacle, they
gradually reopened their factories and resumed business, and eventually
became more prosperous on a free-trade basis than they had been before.
They remain a bright and shining example of the ability of Americans to
compete with foreigners in a fair field and without favor in any
industry not forbidden by our soil and climate. The quinine bill was the
one tariff result the Democrats had to show for the four years they had
held the House!
Public-domain text, read in full here on John Shaqi.
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