United States in a better mercantile position than the citizens or subjects of any other power; and, lastly, that "the expediency of the treaty was very doubtful, under a political point of view," when the treaty did not intend to solve any political question, and only dealt with commercial problems.

It is true that several of the members of the Committee of Ways and Means who signed the report stated that they did not concur in all the reasons assigned therein, but they all agreed to its recommendations, and, as they did not specify the reasons upon which they were at variance, it is to be supposed that they accepted some or most of them.

It would be almost an insult to the people of the United States to account for the failure of the reciprocity treaty by such flimsy, incongruous, and contradictory reasons as those stated in the report of the majority of the committee, nor that their object was to protect sectional interests, which, without foundation, were considered jeopardized, as there is no reform, no matter how insignificant it may be, that will not affect some interests, regardless of the general benefit of the whole country. The only rational and philosophical explanation which I find is that the production of the manufactured articles of the United States had not then reached such a degree as to make it necessary to adopt measures to open foreign markets, and that therefore the effort then made with that object did not succeed because it was premature. If such measure could not be carried out when it was limited to Mexico alone I do not think it was likely to be successful if extended to the other American nations.

I think that the American people have all the ingenuity and fitness necessary to compete with any other people in the world in the production of manufactured articles. It is true that the higher wages paid here, the import duties upon raw material, and the high price of fuel make the production of certain goods dearer here than in some other countries; but it must be observed, at the same time, that the application of machinery, which is used here in a larger scale than in other nations, cheapens production to

such an extent that many articles are made cheaper nere than anywhere else, as I believe is the case with the manufacture of steel rails at the Edgar Thompson Works in Pittsburgh, Pa., where everything is done mechanically, and as natural gas is used as a fuel, the cost ought to be less than anywhere else. If the manufacture of other articles has not yet reached that level, it is due, in my opinion, to the fact that its production is not large enough for the consumption of the home market, which is such a large one, of over 65,000,000 of people; and to the fact that the protection afforded to manufactures by high import duties on similar articles made in other countries keep up high prices, which makes manufacturing here a profitable business, and precludes for the present the necessity of looking for foreign markets.

But when production shall exceed the consumption the object of those protective measures will have ceased, and the time for revision will then come, and when this happens the cost of production will be reduced to such a degree as to permit competition with similar manufactures. of any other countries. In the meanwhile it has been premature to speak of adopting the necessary measures for opening foreign markets to the manufactured articles of the United States, in view of the fact that they are not yet produced in sufficient quantity for the home market, where they are sold at a higher price than they could command abroad.

Such have been my views up to the time when this International American Conference met, and since then the expressions of opinion I have heard and the demonstrations I have witnessed in the principal productive centers of this country during the recent excursion of the Delegates to the Conference, and those which are now being made in this city, the metropolis of the country and the emporium of its commerce, that I confess my views begin to shake, and I am inclined to believe that the situation is changing; that public opinion, which really controls the destinies of the nation, favors the adoption of the necessary measures for the opening of new markets abroad, and that it is becoming now possible to carry out 563 A--15

similar provisions to those contemplated in the reciprocity treaty with Mexico.

It is my earnest wish that such provisions, or any other measures which will increase the commercial relations of our respective countries and the United States, will be adopted at an early date for the mutual benefit of all concerned, and no better opportunity can certainly be offered for such purpose than the meeting in the city of Washington of the International American Conference, at the invitation of the Government of the United States and in compliance with an act of Congress.

THE FIRST VICE PRESIDENT: If there be no objection, they will be attached to the minutes, as asked by the honorable delegate from Mexico.

REMARKS OF MR. HENDERSON.

MR. PRESIDENT: At the last meeting it was my purpose, as soon as I procured a translation of the speech of the honorable delegate from the Argentine, Mr. Saenz Peña, to examine it, and see whether in my judgment it called for an answer from me. It is true I did not get a translation of the speech until late Saturday night, and other engagements have occupied my entire time from then to the present. I have glanced over the speech, however, and whilst I recognize the exceeding ability therein displayed, I do not deem it proper to continue the discussion any longer in the line indicated by the honorable gentleman's speech. Whilst I acknowledge the ability of it, and the vast learning displayed by the honorable gentleman, yet it will be seen from an examination of his remarks, if we are willing to take the bare agreement of the Argentine, that they will receive our goods free of duty or at modified duties, provided we will take the few remaining articles of the Argentine Republic free, and they are very few indeed.

I can not see what harm will come out of it. If we agree to take the Argentine products free it will certainly open a market for them; and if they agree to take ours free, and they can get the same articles free from Europe, why, they are under no obligation to take our articles, therefore

they would strike a good bargain. We would be compelled to receive all the products of the Argentine, while the Argentine would receive none of our products unless the Argentine merchants could buy those products cheaper than they could buy them of Europe. What possible damage would be done the Argentine I can not see.

Now, one other remark and I am done. We hear a continual complaining of the injustice of the high duties. of the United States as compared with the duties of the Argentine. I have had but a moment to look up that subject, and I will occupy their attention for only a few minutes. I have merely looked at the duties of the Argentine so far as I can obtain them at present, and at the duties in our own country.

In 1887 the total importations of foreign merchandise into the United States was over $683,000,000 in value. The duties collected amounted to $214,000,000 upon this $683,000,000, showing an average rate of duty of 31.34 per cent. In 1888 our importations were over $712,000,000. The duties which we collected upon the $712,000,000 were $216,000,000, showing an average rate of duty of 30.33 per cent. In 1889 we imported over $741,000,000 of foreign products, collecting duties amounting to $220,000,000, showing the average rate of duty charged to be 29.75 per cent. These figures indicate a continual reduction in the average rate of duty.

Now, I have not been able to obtain the exact state of trade in the Argentine Republic since 1887. The Annual Statistician and Economist, published at New York and San Francisco, estimates the imports into the Argentine Republic in 1887 at $121,342,960, and the total revenue collected for that year was $52,091,716. I admit that it is not. stated in this statistical work what proportion of this revenue is derived from customs duties, but I hold in my hand a statement from the South American Journal, reprinted in the River Plate Times, showing the entire revenue of the Argentine for 1889 to have been as follows:

Customs duties at the capital.

And in the provinces

$46, 569, 700. 16

9,705, 331.32

Making a total from customs of.........

56, 275, 031.48

Now, to make up the balance of the revenue for the year

If this be correct, and it bears the impress of authority upon its face, and does not differ from the statistical information I have obtained, the customs duties in the Argentine Republic yielded over $56,000,000, while all other sources yielded only a little over $9,000,000.

Assuming, then, that the taxes were in 1889 the same as in 1887-that is, without change of law-the importations in 1889 amounted to, say, $151,000,000. Now, if $151,000,000 of importations yielded $56,275,000 of revenue, the average rate of duty can not be less than 37.26 per cent., which is a much larger average rate of duty than that imposed on importations into the United States for three years. And if we take the Argentine commerce of 1887 the same result is disclosed. If in the total revenue of 1889 of over $65,000,000 the revenue other than import duties was $9,000,000, it may be assumed that in a total of $52,000,000 all of it came from impost duties except $7,000,000, to wit, $45,000,000 from impost duties in 1887. Hence, if an importation of $121,000,000 in 1887 paid $45,000,000 duty into the Treasury, the rate per cent. must have been 37.19, largely over the duty paid upon the average importations into this country in the years 1887, 1888,

or 1889.

Now, Mr. President, I have, unless figures speak incorrectly, and I am sorry my friend (Mr. Saenz Peña) is not present to-day to correct me if I am in error, shown the condition existing in both countries. And I find it necessary, inasmuch as he has made me a physician ministering to the diseased condition of the United States, to say to him "Physician, heal thyself."

Now, Mr. President, the honorable gentleman has found that duties are alarmingly high in this country, and that