f. Sugar which can be directly consumed is admitted free: Sherman in Cong. Record, Sept. 9, 1890, p. 10716.

g. Bounty will enable producers here to compete in the home market.

h. Refiners and beet root sugar refiners will be able to carry on a larger business with smaller propotional capital: Sherman in Cong. Record, Sept. 9, 1890, p. 10717; Willett and Gray, Statistics.

i. Lower prices, increasing consumption will enlarge the entire industry: Evarts, Cong. Record, Sept. 9, 1890, p. 10731, Willett and Gray, statistics.

IV. The same principle may be applied to other articles such as tin plate.

BRIEF FOR NEGATIVE.F. R. Clow and L. H. Roots.

Best general references: Lalor's Cyclopedia of Political Science, II, 99 (article on Encouragement of Industry by the State); David A. Wells, Recent Economic changes, 126, 130, 195, 323; Debate in the Senate, January 17, 19, 1889, printed in Congressional Record, Vol. 20, pp. 891 et seg.; Tariff Reform, (periodical) III, No. 72, (Sugar and the Tariff, by J. Alex. Lindquist.)

I. The bounty system is in principle disadvantageous to the country adopting it. 1. It is a heavy expense to the government. 2. It disturbs natural and healthy growth of industry, by

a. Promoting speculation.

b. Causing alternate over-production and under-production; and

c. Destroying natural production.

3. Bounties are never permanently efficacious.

a. Only exceptionally are bounties of even temporary service.

b. They cannot make an unprofitable industry permanently profitable.

c. Bounties are especially unnecessary for the promotion of any profitable industry in a country so rich, intelligent, and enterprising as the United States.