reversed their position, and claim there is no menace to business in their scheme of tariff revision. There is, however, a vast difference between a change from protection to free trade and low duties and from free trade to protection and adequate duties. The Wilson tariff left a trail of devastation in its wake, and it has taken the country a long time to make good the loss. On the other hand, under the Dingley tariff, we have attained an industrial and commercial development and material well-being never before reached, which proves, as protectionists have always contended, that tariff conditions in this country are the most potent of all economic influences in making or unmaking the national prosperity.

Consul Hurst, of Plauen, suggests that American manufacturers hardly realize the unusual facilities offered German exporters in the way of rapid and cheap transportation for goods billed to foreign countries. He writes:

This comes into notice more particularly in the case of merchandise that can be easily handled. Nowhere is it of greater advantage than to the lace manufacturers of this inland district, who are enabled within comparatively a few hours to ship from their factories to the docks. It was found in the past that failure to connect with a certain steamer often made a vast difference to the large wholesale importers in the United States, and some years ago an advantageous arrangement for

the German exporter was effected with the railroads leading from the farthest manufacturing towns to the seaboard. Although nearly all of the German steamers are used, the Plauen exporters favor the express liners from Bremen and Hamburg, so that their goods can be in the New York custom house within ten days after leaving Plauen. The rate for this quick transportation to the German ports, instead of being more than the usual express charge, is even less than by slow freight, and applies solely to merchandise exported to trans-oceanic countries. The exporter has every opportunity to forward his products with celerity, and is greatly aided in his export trade by the railroad managers. The usual method is to attach a special car to the latest available fast train, so that an exporter's case of lace reaches the steamer almost as promptly as do the mails.

The rates from Plauen to Bremen for export express are only thirty-eight cents per one hundred pounds for a distance of 315 miles, and to Hamburg thirty-seven cents per one hundred for three hundred miles. If the goods are not for export, the usual rate for express, taking a longer time, would cost nearly three times as much. The matter of export reduction is carefully systematized and full details must be given at the railways, including the country whither the merchandise is to be exported. Penalties are levied if this exceptional rate is used for holding goods for transshipment at one of the seaports to another point inland or by land across the frontier. If the declaration does not clearly state on the case "For export over sea and to foreign countries," the considerable decrease in the transportation rate will not be allowed, even when the merchandise is actually to be shipped abroad.

It will be observed that this arrangement is a very marked concession on the part of the state railroads, a decided boon to the individual manufacturer, and a stimulating benefit to the whole German export trade.

Consul Hamm of Hull, England, writes to the State Department that a crisis has apparently arrived in the boot and shoe trade in England, and that developments that will affect the business for many years to come may soon be expected. The following paragraph gives a preliminary view of the situation:

"The great improvement in the general trade of the country which took place in 1904 had an effect upon the purchase of boots and shoes, but for some time the retailers and factors were able to cope with this increased demand by using up their reserves of stock. Shoe manufacturers had been keeping themselves going by cutting prices on a basis so tempting that the big multipleshop concerns had enough to go on with and could afford to be indifferent. As the year progressed, however, the leather market continued to advance, and producers of boots and shoes found themselves unable to continue at the old rate and were forced to hold out for stiff advances. Having used up all available stock, they found themselves compelled to accept the demands of the shoe manufacturers for advances equal from fifteen to twenty-five per cent on all lines. It was at this stage that the retail section of the trade began to feel the effects of the severe advances. Until the present time, however, no attempt has been made by shoe retailers to educate the public with respect to the changed conditions. The singleshop man has awaited with great concern the action of his big competitors, the multiple-shop owners, and pending some announcement from them not unnaturally feared to make a move in the direction of raising his quotations, in view of the possibility that his multiple competitors might announce their in

tention of continuing the old values." What are known as the multipleshoe dealers-that is, those who own and run a number of stores-held a meeting recently in London, at which it was decided that a great advance in the price of boots and shoes should be made in consequence of the increased cost of leather during the last twelve months. This increase in cost it was stated would not be less than from forty to fifty per cent. It was also proposed to discontinue as far as possible the sale of the common-grade boots and shoes. The advance in cost of hides and leather in England, it is asserted, was caused by the heavy war demands. The South African war and the Russo-Japanese war are said to have created a famine in hides and leather of all descriptions. Reserves of leather throughout the world have been nearly exhausted, and the tanneries, many of which were out of operation, will need a long time to regain business.

It is doubtful if the large advance of forty to fifty per cent in the cost of

boots and shoes can be maintained, and the attempt to stop producing the lower-priced shoes will almost surely fail. One dealer on being interviewed said that the working class are unable to pay more than a few shillings per pair for their boots. A great number of men's working boots are valued at $1.20 per pair, women's boots at sixty and seventy-five cents, and boys' and girls' school boots have been sold as low as forty-two and fifty cents. Stopping production of this class of shoe would be a great hardship, and it is not probable that the manufacturers will be able to carry out their intention.

Leicester is the great center of boot and shoe manufacture in England, as

Brockton and Lynn are in Massachusetts. A correspondent of the Yorkshire Post says: "The big multiple-shop firms have protected themselves to a large extent. One firm owning over four hundred shops throughout the country stated that they held largely increased stocks which had been laid in as a precaution against the present scarcity. Other firms had followed their example to some extent; but in spite of this prices will be raised generally for all classes of goods. They had also, in order to secure supplies of good quality, agreed to pay advances to the manufacturers, and prices will be raised in proportion to retain customers. It is a noteworthy fact that nine-tenths of the leather used in Leicester comes from America. The imports from Australia are nearly all bottom leather, and the French and German tanners have been completely put out of the field by the Americans. The leather dressers in America produce nearly all the glace kid and box calf now so extensively used for uppers, and American red sides are also very heavily consumed. great scarcity in skins in America thus practically dominates the English market.

The

As far as Leicester is concerned, boot and shoe manufacturers never entered on a spring and summer's trade with such gloomy prospects. For the last half of 1905 they could not get the orders; now that they have got the orders they cannot secure the raw material."

That the control of the hide market, and with it the control of the boot and shoe trade, has passed from England is acknowledged. How the change has come about the following review from the London Telegraph will show:

"Not so many years ago Continental and American leather alike had a deserved reputation for inferiority, for light skins as well as for the heavier varieties employed for footwear and for belting for machinery. The foreign material was all badly tanned, spongy in texture, and the hides always failed to stand the test of our damp climate. But since that period the foreign tanners and curriers have made

great progress in their craft. The fact appears to be that the English merchants have practically let the control of the hides and skins trade slip out of their hands. Germany and America have usurped the foremost position. in the market. It is stated that the hides of American live cattle sent to this country to be killed and caten are by prearrangement all sent back across the Atlantic, there to be tanned, and mayhap reshipped to England as leather or in boots or shoes. All around the African coast are to be found the American and German traders, industriously buying hides and skins, and almost anything that will sell besides."

These facts may help American boot and shoe manufacturers to understand the situation. As the high price of hides prevails in free-trade England as well as in protection America, there must be some other cause than the tariff that produces these high prices. The manufacture of boots and shoes is also prosperous in America, while in England it is depressed. But the chief good to be derived from knowing present conditions in England will be the opportunity it affords the manufacturers in America to take advantage of the situation and push the trade they have already gained.

Consul Mahin reports from Nottingham that the British retail shoe dealers in session unanimously resolved to raise the selling price commensurate with the cost, the old standard of quality to be maintained, and to discourage the sale of the lowest priced articles. It was further resolved to form an association of boot and shoe distributors. The consul continues: Though British shoe manufacturers have for the past year been forced to pay forty to fifty per cent more for leather, and have advanced their prices accordingly, very few retailers have done likewise. Now it is expected that in every British shop and store purchasers will be asked to pay advanced prices, perhaps fifty per cent in some cases, for footwear. This is the first combination in the British shoe trade.

Yearly wages

63,492 $36,144,244

Increase since 1900. 25

53,017,197 1,136 $4,014,048

Yearly product ..$243,375,906 $32,580,372

By percentages the increases in these leading industries, hereafter named, were, capital, 35.6 per cent; wage-earners, 1.2 per cent; wages, 12.5 per cent; and products, 15.5 per cent.

There was a considerable increase in the number of men wage-earners, but there was a decrease in the women employed, leaving the net increase as above. That is a change in the right direction as there are many more suitable working places for women than factories.

Of the factory industries reported in 1905, 38.2 per cent were in rural districts, against 35.2 per cent in 1900, and the value of the products of those rural factories was 33.7 per cent of the total for the state in 1905, against 32.9 per cent in 1900.

The position of the ten leading Maryland industries in 1905 was as follows:

printing and publishing, shipbuilding, shirts, distilled liquors, flour and grist. mill products, lumber and planing mills, car construction, furniture, bakery products, lumber and timber products, slaughtering and meat packing and women's clothing.

These twenty-two industries occupy 2,568 establishments, and form 66.7 per cent of the total manufacturing industries of the state. They use $107,940,720 capital, employ an average of 61,990 wage-earners, who earn $23,653,438 wages yearly, while the total product yearly is worth $141,334,550.

Speaking of the malt liquor industry, it is surprising that though the breweries increased from sixteen to twentyone, the capital employed was reduced, in the five years, from $13,857,323 to $6,486,090. Capital was also reduced in car construction, cotton goods, fertilizers, flour and grist mill products, lumber and planing mills and shipbuilding (no wonder!). The largest capital increase was $12,000,000 in tinware, coppersmithing and sheet iron working. The largest number of new factories was 112, in canning and preserving. There were also factory decreases in men's clothing, women's clothing, cotton goods, fertilizers, foundries and machine shops, paper and wood pulp, shipbuilding (no wonder!), wonder!), shirts, slaughtering and meat packing, and tobacco, cigars and cigarettes.

Maryland publishes 160 newspapers and thirty-six other regular publications with an aggregate circulation of 873,594, of which 473,878 was for the daily and Sunday papers. All but thirteen of the 196 periodicals are published in the English language.

Maryland's consumption of raw cotton in 1905 was 27,000,000 pounds at 12.2 cents per pound, or 13,000,000 pounds less than was consumed in 1900, when the average price was 6.6 per pound. As the more cotton used the more cotton goods made and the more wages paid, it is evident that highpriced cotton, caused by cornering, or otherwise, is bad for the American cotton factory and its workers.

LONDON, April 2, 1906. NE of the best object lessons

ON

that has ever come to my notice, illustrative of our present fiscal system, is that of a British firm who, a few years ago, started as manufacturers of a certain kind of horn buttons, exporting a considerable quantity of them to the United States. The McKinley tariff when it came into effect speedily destroyed that part of the manufacturers' trade. The firm then went into the trade

of ladies' buckles, and these ladies' buckles had a large sale in France. Then came the French tariff (the Niclin tariff). That trade was destroyed. A third time the same firm turned their enterprise into a different channel, consisting of the production of buttons from buffalo horn. A large quantity is sent to Germany, where the tariff on this particular article is only five per

cent.

But it is a profitable trade, and Germany, carrying out its deliberate policy in the new tariff which becomes operative a few months hence, has imposed a duty of twentyfive per cent, which means a prohibitive duty. The only thing for the British firm to do, if they wish to retain their German trade, is to open a factory in that country, probably with German labor. If they do that they will have not only

within the German tariff full command of the German market, but they will be able to keep their English market, because the British ports are open, while the Germans close theirs. Not only does the manufacturing leave the country but the same firm will be able to supply the British trade from Germany, with goods made by German operatives and probably using German-made plant, etc. So you see the Germans have it all ways. And that sort of thing is going on all over the country to-day. try to-day. What became, too, of the work people who lost their employment at each successive change

of the firm's career? The skilled artisans who made the horn buttons could not produce the ladies' belts. They are two distinct branches of

skilled labor. The inference is that with each dislocation of industry, such as those I have described, large

numbers of skilled men are thrown on the labor market, and eventually drift into the ranks of the unskilled ultimately becoming the "unemployed."

The free traders always assert that the countries imposing heavy import duties are unable to compete in neutral markets with a country which admits such imports free. England being a free-importing country for the great bulk of goods