The American Review of Reviews

Mr. Pinchot, as the chairman of the National Conservation Commission, was the central personality in the second conference of that important body, which took place in Washington during the month of December. We take pleasure in publishing, on page 88 of this number of the REVIEW OF REVIEWS, a brief summary of his interesting work as the Government's Chief Fter and his unselfish efforts for the conservation of our natural resources.

REVIEW OF REVIEWS

VOL. XXXIX.

At the Turn of the Year.

NEW YORK, JANUARY, 1909.

THE PROGRESS OF THE WORLD.

The new year begins hopefully for the people of the United States. The clouds of financial and industrial depression are fast disappearing. But t is not along material lines alone that the ountry is advancing. The prevailing standards of political and social life are higher than ever before, and they owe much to the Administration at Washington, which is soon to end. In the field of education a hundred things might be noted that would illustrate the vigor and intelligence of the forward movement. The political campaign has had results which leave the people of the country in a mood of harmony and confidence; and it may be worth while to add that we have been at much pains to compile what is thus ar the most accurate statement that has been made of the popular vote in the November election (see table on page 34). Above ail, our nation is at peace with all others, and has done many things to give firmer assurance of peace in perpetuity. As Mr. Root is soon to leave the State Department, to become Senator from New York, there ought to be a deep appreciation of his quiet but epochmarking work as a world harmonizer. Elsewhere we publish an estimate of his services.

The Japanese

American

"Notes."

The notes exchanged between Secretary Root and Baron Takahira for their respective governments were referred to in these pages last month. The actual exchange of notes took place at the State Department on December 1, and publication was made on the same day at Washington and Tokio. Except for a Sight difference in the preambles, the notes are identical and read as follows:

No. 1.

above mentioned and to the defense of the principle of equal opportunity for commerce and industry in China. (3) They are accordingly firmly resolved reciprocally to respect the territorial possessions belonging to each other in said region. (4) They are also determined to preserve the common interests of all powers in disposal the independence and integrity of China China by supporting by all pacific means at their and the principle of equal opportunity for commerce and industry of all nations in that empire. (5) Should any event occur threatening the status quo as above described or the principle of equal opportunity as above defined it remains for the two governments to communicate with each other in order to arrive at an understanding as to what measures they may consider it

useful to take.

In his accompanying statement the Japanese Ambassador referred to the exchange of notes

transaction between close friends." The notes are, he declared, simply a reaffirmation of what was declared by the two governments years ago, or a definiis, however, to be remarked that the notes which tion of the understanding already existing. It are exchanged between governments of great moral standing, as those of the United States and Japan, will have a great importance in the entire confidence in the great moral strength of carrying out of their common policy. Japan has the United States Government, and that the latter fully trust, in the strong good faith of the Japanese Government has been aptly proved by like a transaction between trusted friends, and past experience. In this respect it is something it is sincerely to be hoped that the people of each country will have the same confidence as their own Government in respect to the declaration of the other, and in doing so there will be everything to gain and nothing to lose, and friendly intercourse and commercial relations will be fully developed.

Since the "understanding" is by its wording neither a formal agreement nor a treaty, ratification by our own Senate is not neces(1) It is the wish of the two governments to sary. The news of the understanding has encourage the free and peaceful development of been received throughout the world with aptheir commerce on the Pacific Ocean. (2) The proval, although a section of the Japanese policy of both governments, uninfluenced by any aggressive tendencies, is directed to the main- press deprecates the omission of any reference tenance of the existing status quo in the region to the immigration question.

THE MEMBERS OF THE WAYS AND MEANS COMMITTEE OF THE HOUSE OF REPRESENTATIVES HOLDING TARIFF HEARINGS LAST MONTH.

The Tariff Agitation.

The year upon which we are en-
tering will witness a revision of
the elaborate schedules of cus-

tion that are open to the national Govern ment. Another reason is that the income tax is still very unpopular, and is also opposed on

of fact, therefore, every one admits, regardless of theories, that we are going to continue for an indefinite time to levy taxes upon imports.

Can the

Revision Be

Scientific?

toms dues collected as a tax upon the im- constitutional grounds. As a plain matter portation of foreign goods into the United States. This tariff question is one that has always been with us from the foundations of our national Government. Wisely or unwisely, people prefer to pay their taxes indirectly. People of property are particularly When it comes to the work of fond of customs dues upon foreign articles, arranging the varying lists of and excise taxes upon domestic trade, beduties charged upon many huncause the burden of taxation by virtue of dreds of articles the work becomes difficult these methods falls lightly upon the rich and beyond the grasp of any one individual; and heavily upon the poor. When a large part the upshot of the matter is that the schedules of the national revenue is collected from do- as they now stand and as they have been for mestic brewers and distillers and from tobac- many decades are full of more or less arbico manufacturers, the burden is passed along trary compromises. A really new tariff to the consumer, and the workingman who enactment, under our present system, is not uses such articles as beer and tobacco is not to be expected. Each revision is based upon likely to realize that he is paying to the na- the main classifications and fundamental tional Government a very appreciable tax structure of the law as the revisers found it. out of every week's wage. In like manner It will have to be so with the tariff bill of the cost of many articles of clothing and of 1909. Since there is no getting away from ordinary use in households or workshops may that fact, there will not be much discussion be considerably increased through the effect of it. The present tariff permits the imporupon home prices of high tariff duties upon tation of large quantities of necessary articles imports. Although, however, the political and materials of ordinary use that do not economist may be right in holding that taxes seriously compete with articles of home proshould be direct and undisguised, and that duction without the payment of any duty the burden should be distributed in accord- whatever. Other articles that do not comance with men's ability to pay, there are some pete, but that constitute the luxuries of the practical reasons why, for a good while to rich, are heavily taxed. Most articles of come, our national Government will depend manufacture are also heavily taxed, in order mainly upon indirect taxes for its revenue. to give a preference to the domestic trade One reason is that States, counties, munici- and to build up industries on American soil. palities, school districts, and other minor po- In the making of the new tariff it will be litical divisions rely upon the direct assess- proposed to add some articles to the free list, ment of property, and are prohibited from as, for example, rough lumber, pulp from levying some of the forms of indirect taxa- which paper is made, hides, and other mate

rials entering into different kinds of manufacture. It will further be attempted to increase the income of the Government from ostly foreign articles that are purchased as xuries by the wealthy. The most serious controversy will rage around the question, ow high the scale of duties ought to be on Tanufactured articles with a view to protecting American industry. It will never be possible to have a strictly scientific tariff as long as the two motives of public revenue and protection of private industry are blended n the work of arranging the schedules. Yet t is by no means impossible to maintain the principle of protection, to keep in mind the need of public revenue, and to show respect to several salutary principles of taxation in readjusting the tariff law of the United States.

HON. JOHN DALZELL, OF PENNSYLVANIA.

HON. SERENO E. PAYNE, OF NEW YORK. (Chairman of the Ways and Means Committee.) however, have a capacity for interesting themselves in a given matter when the psychological moment arrives. They are not now highly excited on the tariff question, but since the time has plainly come for overhauling the existing law, they are giving the subject some serious attention. It was manifestly impossible to secure any active work upon tariff changes during the Roosevelt Administration. Congress and the country were occupied with other subjects. But it was clearly foreseen a year ago that the Sixty-first Congress would have to revise the tariff, whether the Republicans or the Democrats should be in control of it; and it was also agreed by "standpatters" and reformers alike that it would be necessary for the Republicans to promise that they would take up the tariff question in good faith, and would favor the calling of a special session of Congress for that purpose, as soon as possible after the inauguration of a new President.

How to

There were many Republicans a Study the year ago who took the ground Subject. that the tariff could not be intelligently revised without a great deal of preliminary study. They demanded the appointment of a tariff commission which

(The ranking Republican member of the Ways and would enter deeply into the subject with a

Means Committee.)

view to ascertaining the relative cost of pro

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