Lincoln's discussion of the tariff is only fragmentary and partly developed. The following citations will serve to indicate his position on that subject:

"In the days of Henry Clay, I was a Henry Clay tariff man, and my views have undergone no material change upon that subject.1

"In 1844 I was on the Clay electoral ticket in this State [i. e., Illinois] and, to the best of my ability, sustained, together, the tariff of 1842 and the tariff plank of the Clay platform."?

“I have by no means a thoroughly matured judgment upon this subject [the tariff), especially as to details; some general ideas are about all. I have long thought it would be to our advantage to produce any necessary article at home which can be made of as good quality and with as little labor at home as abroad, at least by the difference of the carrying from abroad."

The following extract is taken from some fragments written by Lincoln about 1847. It presents a common argument so clearly that its abbreviation has not been attempted:

"But let us admit that by abandoning the protective policy our farmers can purchase their supplies or manufactured articles cheaper than before, and let us see whether, even at that, the farmers will upon the whole be gainers by the change. To simplify this question, let us suppose our whole population to consist of but 20 men. Under the prevalence of the protective policy, 15 of these are farmers, one is a miller, one manufactures iron, one implements from iron, one cotton goods, and one woolen goods. The farmers discover that, owing to labor only costing one-quarter as much in Europe as here, they can buy iron, iron implements, cotton goods, and woolen goods cheaper when brought from Europe than when made from their neighbors. They are the majority, and therefore have both the legal and moral right to have their interests first consulted. They throw off the protective policy, and cease buying these articles from their neighbors. But they soon discover that to buy, and at the cheapest rate, requires something to buy with. Falling short in this particular, one of these farmers takes a load of wheat to the miller and gets it made into flour, and starts, as had been his custom, to the iron furnace. He approaches the well-known spot, but, strange to say, all is cold and still as death; no smoke rises, no furnace roars, no anvil sings. After some search he finds the owner of the desolate place and calls out to him, "Come, Vulcan, don't you want to buy a load of flour?" "Why," says Vulcan, "I am hungry enough, to be surehaven't tasted bread for a week; but then you can see my works are stopped, and I have nothing to give you for your flour." "But, Vulcan, why don't you go to work and get something?" "I an ready to do so. Will you hire me, farmer?" "Oh, no; I could only set you to raising wheat, and you see I have more of that already than I can get anything for." "But give me employment, and send your flour to Europe for a market." "Why, Vulcan, how silly you talk! Don't you know they raise wheat in Europe as well as here, and that labor is so cheap there as to fix the price of flour there so low as scarcely to pay the long carriage of it from here, leaving nothing whatever

to me?" "But, farmer, couldn't you pay to raise and prepare garden stuffs, and fruits, such as radishes, cabbages, Irish and sweet potatoes, cucumbers, watermelons and muskmelons, plume, pears, peaches, apples and the like? All these are good things and used to sell well." "So they did use to sell well; but it was to you we sold them, and now you tell us you have nothing to buy with. Of course, I can not sell such things to the other farmers, because each of them raises enough for himself, and in fact rather wishes to sell than to buy. Neither can I send them to Europe for a market, because, to say nothing of European markets being stocked with such articles at lower prices than I can afford, they are of such a nature as to rot before they reach there. The truth is, Vulcan, I am compelled to quit raising these things altogether, except a few for my own use, and this leaves part of my own time idle on my hands, instead of my finding employment for

you.

774

(See PROTECTION; PRICES.)

The well-known statement given below has been attributed to Lincoln:

"I do not know much about the tariff, but I know this much, when we buy manufactured goods abroad, we get the goods and the foreigner gets the money. When we buy the manufactured goods at home, we get both the goods and the

money.

Dr. F. W. Taussig has made an investigation of the source of the above remark, and finds no evidence that it emanated from Lincoln. The epigram seems first to have been employed by Robert G. Ingersoll in a speech on Lincoln, but not as a quotation from Lincoln. Confusion in the memory of a reporter probably connected the epigram directly with Lincoln.

LINEN. (See also FLAX.)

Handkerchiefs. The plain hemmed or hemstitched linen handkerchief is used by those who prefer its appearance and wearing qualities to the cheaper cotton article. Prior to 1914, when prices were normal, the ordinary linen handkerchief displaced the finer grades of cotton handkerchiefs. Practically all of the imports under this classification are of linen, as all the other leading fibers other than cotton, with the minor exception of ramie, are not sufficiently fine or flexible to make satisfactory handkerchiefs. Linen handkerchiefs are made up into a variety of sizes and qualities, for the most part from light cambrics weighing from 1.5 to 3 ounces per square yard.

Production of plain linen handkerchiefs from cloth imported in the piece is far in excess of the imports of these articles. Since 1914 there has been a marked decline in the domestic output owing to the scarcity and high price of linens. Plain cotton handkerchiefs probably constitute more than three-fourths of the number of handkerchiefs of all descriptions produced annually in the United States. The greater number of domestic producers manufacture both cotton and linen handkerchiefs.

Imports of linen handkerchiefs, hemmed or hemstitched, averaged $853,902 per annum for the fiscal years 1911-1920. Of the plain imported linen handkerchiefs about 90 per cent are hemstitched. The chief source of imports is the United Kingdom,

Letter, 1860, op. cit., Vol. I, pp. 311-313.

Taussig, F. W., Free Trade, the Tariff and Reciprocity, New York, 1920, pp. 34-47.

Other reference: Tarbell, Ida M., The Life of Abraham Lincoln, New York, 1900.

Duty.

286, 388 732, 157 705, 973 510, 942 153,414 987,664

Table Damask, and Manufactures of. Damask is a woven figured fabric distinguished by the appearance of the design on the smooth surface without any contrast in colors. Warp sateen is usually employed for the figures and filling sateen for the ground. The surface threads in the figures lie at right angles to those in the ground, with the result that the light falling on the smooth surface is refracted when it strikes the figures and the pattern is caused to stand out in bold relief. Linen damask, although mainly Jacquard woven, is usually of coarse or medium yarns. It ranges from 4 to 6 ounces to the square yard, with 96 to 350 threads to the square inch. It is usually sold bleached or cream colored; a small amount is woven in colors. The standard cloth width is 72 inches, although some cloths are as wide as 144 inches. It is made up into table covers, napkins, doilies, etc., the articles in each set being usually made of the same pattern. Napkins range from 17 by 17 inches to 27 by 27 inches; table covers from 36 by 36 inches to 90 by 90 inches.

Production of all-linen table damask in the United States is negligible: there is a small manufacture of union good made of linen and cotton. Imports were not recorded separately from other linen fabrics prior to September 22, 1922. Since that time they have been as follows:

Production is not recorded. About a dozen domestic firms manufacture huck towels of flax and cotton, flax constituting the component material of chief value; the production of towels of all flax is much smaller. The union towels range from 80 to 135 threads to the square inch. Production of linen sheets and pillow cases is confined to those made from imported cloth.

Imports of towels, sheets, and pillowcases were 1922, after which date towels and napkins are not separately recorded prior to September 22, grouped in one classification and sheets and pillow

cases in another as follows:

Imports of linen sheets and pillowcases are small, since it is usually more profitable to import the cloth and make the finished articles here. Imports of linen towels are larger; those of all flax normally con titute about three-fourths of the total. Prior to the war Germany was an important source, but since 1914 imports of linen towels have been supplied mainly by Belfast, and a smaller amount by Scotland.

Wearing Apparel. The domestic consumption of wearing apparel, made in whole or in part of linen, has declined greatly since 1914. Practically all linen wearing apparel, other than collars, is either embroidered or is made in part of lace. In the domestic trade a collar with one of its several plies made of linen is known as a linen collar. consumption of linen collars and cuffs is insignificant as compared with the consumption of such articles of all cotton. The latter form the basis of the domestic trade.

The

Production.-Prior to 1914 large quantities of imported linen fabrics were used by the domestic clothing trade in the manufacture of women's dresses and men's clothing. During the years 1914-1920, the production of linen apparel, owing to the excessively high prices of flax fabrics, was negligible. In 1921 the consumption was in excess of 1914-1920, though far below the amounts used before the war. In 1914 only one domestic company manufactured linen collars and cuffs in any quantity. In 1919 production was negligible.

Imports consist chiefly of women's linen blouses and men's collars. Shipments of wearing apparel of all linen were valued in 1914 at $20,343. Linen collars and cuffs imported in the same year numbered 53,370 dozen, valued at $56,629. Imports during 1918-1923 have been as follows:

1923..

57,160

3,523 19,866

Floor coverings made on felt back....

31,728, 043

13, 042, 539

37,996

35,884

1920.

30, 703

71,980

1921.

27,996

73, 161

42,489

10,729

39, 200

25, 141 96, 128

11,399 10,765 21,594 12,747 6,806 23,293

21.948

Floor

LINOLEUM AND FLOOR OILCLOTH. oilcloth is made on a foundation of jute burlap and coated with a mixture of linseed oil, ocher, and benzine. Several coats are applied until the desired thickness is attained, each coat in turn being dried and rubbed smooth with pumice stone. Floor oilcloth may be plain or have designs stamped, painted, or printed on the smoothfinished coating. Printed designs are now usually applied by automatic machinery.

Linoleum gets its name from linum (flax) and oleum (oil). A cement is made of solidified inseed oil, resin, and kauri gum; this is then mixed with cork dust, and the paste thus made rolled upon a foundation of jute burlap. If the fabric is to be plain (that is, of a uniform color), the coloring matter is added before rolling. In inlaid or mosaic linoleum the colors go through and do not wear off as in printed or stenciled linoleum. Among the leading types of linoleum are: Inlaid linoleum made in several ways, but generally by cutting rolls of linoleum cement of various colors into separate pieces, fitting them into a design on a jute burlap foundation, and incorporating them into a fabric by means of hot rollers; granite linoleum made from pastes of different colors, the colors remaining separate in the completed fabric, the assemblage and relation of the various colored spots and masses being casual; plank linoleums, oak plank linoleums, or plank inlaid linoleums, made by running two separate paste mixtures, which are not allowed to mix, side by side upon a burlap foundation, the effect resembling an inlaid flooring; corticene, prepared in the same manner as linoleum, except that the linseed oil is oxidized differently and that the composition contains rubber; cork carpet, resembling plank linoleum and made in the same way, except that the cork is not so finely ground, and a larger proportion thereof is used in the mixture to give it a softer and more spongelike quality.

Production in 1914 and 1919 of linoleum and floor oilcloth made on burlap back was as follows (000 omitted):

1 Not reported separately; production negligible.

The decline in the production of floor oilcloth and linoleum other than inlaid is due in part to the scarcity and high price of burlap for use as a backing and especially to the substitution of floor coverings made on felt back for the cheaper grades of linoleum. The last type of floor covering consists of a base of felt paper saturated with asphaltum, painted on both sides with one or more coats decorative designs. The domestic production of of paint, and printed on the top surface with strides since 1914, when its production was negfloor coverings made on felt back has made great ligible and limited to one establishment. The output in 1919 was 30,370,000 square yards, valued at $13,909,000.

General statistics relating to production in the linoleum and floor oilcloth industry follow:

Imports.-Imports of linoleum and floor, oilcloth have shown a marked decline since 1914, in which year their quantity was 4,231,066 square yards, valued at $1,877,324. The bulk of the imports consists of the highest grades. In 1921 inlaid linoleum constituted 89 per cent of the total; all other linoleum 11 per cent, and oilcloth for floors about 0.1 per cent. Prior to 1914 the United Kingdom furnished about three-fourths of the total, and Germany the bulk of the remainder; since 1914 the United Kingdom has supplied practically all, furnishing 99 per cent of the total in 1919 and 1920.

Imports for 1918-1923 have been as follows:

stances of the nation. Now, national economy, instead of dealing with individuals alone, should show how to improve the economic conditions of nations.*

The consideration of nationality shows that nations are in different stages of development and not able to compete with each other under free trade. Under free competition the industrially more advanced country of England would prevent the most complete economic growth of other countries.5

The problem, therefore, is not, as regarded by "the school," that of individual trade under a cosmopolitan system, but one of the fullest development of nations. Free trade is not consistent with such development.

2. Productive powers versus exchangeable wealth.

and oilcloth for floors."

LINSEED OIL. See Ons, EXPRESSED AND EXTRACTED.

LINTERS. See COTTON. LIQUIDATION OF ENTRIES. See CUSTOMS, ORGANIZATION, AND PROCEdure.

LIST, FRIEDRICH (1789-1846), German economist. He began life as a clerk in the public service of Würtemberg and in 1816 was ministerial undersecretary. The following year he was appointed to the chair of political economy at Tübingen. He was imprisoned for his censures on the Government, escaped and eventually emigrated to America, where he engaged in farming and newspaper work and was naturalized. He became wealthy through the discovery of coal beneath his land, and later returned to Germany as American consul at Leipzig, where he served for a number of years. List's chief contribution to economic thought was his "Das nationale System der Politischen Oekonomie," published in 1841-1844. This work was strongly influenced by H. C. Carey (see). A few of List's fundamental ideas developed in criticism of the free-trade school of economists (called by List "the school"), may be sketched under the following topics:

1. Nationalism versus cosmopolitanism. 2. Productive powers versus exchangeable

wealth.

3. National versus international division of

labor.

4. Protection versus free trade. 5. Protection and raw materials.

1. Nationalism versus cosmopolitanism.-"The school" assumes that the world consists of an aggregate of individuals and ignores national organization. It therefore conceives of international trade as mere commerce between individuals in different parts of the world. These individuals, however, are parts of national entities, each of which national units has its particular stage of development, interests, political needs, and relationships with other countries.2 International commerce is therefore more than transactions between individuals, and the interests therein of nations as such must be considered. Moreover, the prosperity of the individuals is to a great extent determined by the social and political circum

1 National System of Political Economy, London, 1909, pp. 99, 141. a Ibid., p. 99.

wealth as "the mere exchangeable value of things." The true national riches, on the other hand, should be regarded as consisting more in the power of producing wealth," which depends in turn in great measure upon "mental capital,' including social and economic organization and knowledge. Now, the great agency for the creation of such capital is manufactures, which ought therefore to be encouraged."

3. National versus international division of labor. "The school" emphasizes the advantages of the international division of labor. It neglects, on the other hand, the principle of unification, which is a corollary to that of division. Under this principle the different branches of production must be unified in the most efficient manner. The most efficient general unification of productive operations is that of manufacturing and agriculture. Each supplements the other. Without manufacturing the agricultural division of labor in a country is defective, since without an adjacent market many commodities can not be grown.10

4. Protection versus free trade.-Since manufacturing is a necessary element in the development of a well-balanced nation, it should be encouraged even at some cost. Because of the uneven indus

trial development of different nations, it is impossible under free trade for many nations potentially capable of manufacture to compete with those of industrial dominance. Protective tariffs are, (especially England) that have secured a position until it is able to stand alone. therefore, advisable to shelter infant industry

In the earliest stages of a country free trade may be desirable; when it begins to strive for economic independence has been achieved a return to free independence protection is indicated; when such trade may be advisable."

5. Protection and raw materials.-"With regard to the interchange of raw products, the school is perfectly correct in supposing that the most extensive liberty of commerce is, under all circumstances, most advantageous to the individual as well as to the entire State." 12 The argument for this view is that natural productive resources, National System of Political Economy, London, 1909, p. 65. ♦ Ibid., p. 99.

unlike those of manufacturing, can not be artificially increased. "Through restriction the agricultural power of the country *** is not increased * * * " 1 Restriction on the importation of raw products hinders the utilization of the natural resources and powers of a State. LITHOGRAPHIC STONES. A compact, finegrained, porous, stratified variety of limestone is used for lithographic purposes. Substitutes of aluminum, zinc, or rubber plates are satisfactory for many classes of ordinary work, but stone is preferred for maps, halftones, and other fine-grade lithography.

Production. This stone comes chiefly from Bavaria, although small amounts are contributed by Belgium, England, Italy, and Canada. Kentucky produced 40,000 pounds in 1916, the first domestic stone, but difficulties arising from poor transportation facilities and quarrying conditions reduced the 1917 output to 5,832 pounds; and, as far as can be learned, the output ceased entirely in 1918. From 2 to 27 cents per pound were realized on this product in 1916. The price of Bavarian stone in 1916 was 5 to 6 cents a pound for 10 by 12 inch slabs of good grade and 14 cents for poorer grades.

Import values of lithographic stones for 1908-1913 averaged $96,941; in 1914 they were $74,218. Bavaria contributed 95 per cent and Belgium 5 per cent. Imports in 1915 were valued at $30,584; in 1916, at $1,742; in 1917, at $555; 1918, none recorded. Imports since 1918 have been as follows:

Survey C-15.

LITHOPONE is a coarse-grained, brilliant, white pigment which has excellent covering powers. The quality depends largely upon the method of manufacture. It is used as a pigment chiefly in the manufacture of paints known in trade as "flat paints"; also as a filler in the manufacture of such articles as linoleum, table oilcloth, window shades, and vulcanized rubber goods.

Production.-Lithopone is manufactured by mixing solutions of zinc sulphate and barium sulphide. The resultant insoluble mixture of zinc sulphide and barium sulphate is filtered, washed, dried, roasted, quenched, and powdered. Production in the United States increased steadily from 25,330,000 pounds, valued at $916,512, in 1910, to 178,746,000 pounds, valued at $12,484,925, in 1920. In 1921 the marketed production was 110,032,000 pounds, valued at $6,681,563; in 1922, 166,720,000 pounds, valued at $9,214,040; in 1923, 196,398 pounds, valued at $11,608,443.

The Tariff Commission investigated the cost of production in the lithopone industry for 1919 and

1 National System of Political Economy, London, 1909,

p. 174.

2 Ibid., pp. 151, 173, 175, 204, 259.

Other references: Gide and Rist, A History of Economic Doctrine, London, 1915, pp. 266-277; Hirst, Margaret E., Life of Friedrich List and Selections from His Writings, London, 1909. A suggestive critique of List's work, from the standpoint of a free-trade advocate, is found in Rabbeno, Ugo, The American Commercial Policy, London, 1995.

for the first six months in 1921.3 The total cost in 1921 was 6.26 cents per pound, a slight increase over the average cost in 1919. During the first half of 1921 only about one-third of the entire capacity of the domestic industry was in actual operation. This inactivity, however, must be attributed to reasons other than active competition from foreign sources, as imports were slightly less than 2 per cent of the domestic output.

Imports of lithopone for 1911-1916 averaged 6,000,000 pounds, valued at $217,000, yielding a revenue of $57,700. During 1917 and 1918 imports were negligible. Later statistics follow:

Survey A-4.

5,382, 504 20,879, 258

215, 179 776,383

94, 194 43.77 365, 387 47.07

LITMUS, a coloring matter closely related to archil, is obtained chiefly from the lichens Lecanora tinctoria, L. orinca, and Rocella tinctoria, which occur abundantly in Scandinavia and the French Pyrenees. The commercial product consists of calcium carbonate or sulphate mixed with the coloring matter and pressed into cubes. It is used in chemical laboratories in determining the acidity or alkalinity of solutions. It has had application as coloring for wine vinegar.

Production.-Litmus is prepared by fermenting the lichens in the presence of ammonium or potassium carbonate, and mixing the coloring matter obtained with lime or gypsum. There is no domestic production.

Imports of litmus for 1910-1918 averaged $252. Statistics of imports since 1917 are shown below: