M: Information Systems 6th Edition

Baltzan
Visit to download the full and correct content document:
https://ebookmass.com/product/m-information-systems-6th-edition-baltzan/
 page i

information
systems 6e
Paige Baltzan
Daniels College of Business
University of Denver
 page ii

M: INFORMATION SYSTEMS
systems 6e
M: INFORMATION SYSTEMS
Published by McGraw Hill LLC, 1325 Avenue of the Americas, New York, NY 10121. Copyright © 2022 by
McGraw Hill LLC. All rights reserved. Printed in the United States of America. No part of this publication may
be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without
the prior written consent of McGraw Hill LLC, including, but not limited to, in any network or other electronic
storage or transmission, or broadcast for distance learning.
Some ancillaries, including electronic and print components, may not be available to customers outside the
United States.
This book is printed on acid-free paper.
1 2 3 4 5 6 7 8 9 LMN 26 25 24 23 22 21
ISBN 978-1-265-37393-1
MHID 1-265-37393-0
Cover Image: Yiu Cheung/Shutterstock
All credits appearing on page or at the end of the book are considered to be an extension of the copyright
page.
The Internet addresses listed in the text were accurate at the time of publication. The inclusion of a website
does not indicate an endorsement by the authors or McGraw Hill Education, LLC and McGraw Hill Education,
LLC does not guarantee the accuracy of the information presented at these sites.
 page iii

brief
contents
module one
BUSINESS DRIVEN MIS 3
CHAPTER 1 Management Information Systems: Business Driven MIS 5
CHAPTER 2 Decisions + Processes: Value Driven Business 35
CHAPTER 3 Ebusiness: Electronic Business Value 77
CHAPTER 4 Ethics + Information Security: MIS Business Concerns 105

module two
TECHNICAL FOUNDATIONS OF MIS 133
CHAPTER 5 Infrastructures: Sustainable Technologies 135
CHAPTER 6 Data: Business Intelligence 167
CHAPTER 7 Networks: Mobile Business 197

module three
ENTERPRISE MIS 219
CHAPTER 8 Enterprise Applications: Business Communications 221
CHAPTER 9 Systems Development and Project Management: Corporate
Responsibility 261
GLOSSARY 286
NOTES 305
INDEX 309
 page iv

contents
module one BUSINESS DRIVEN MIS

CHAPTER 1 MANAGEMENT INFORMATION SYSTEMS:

BUSINESS DRIVEN MIS 5
INTRODUCTION 5
SECTION 1.1 >>Business Driven MIS 6
COMPETING IN THE INFORMATION AGE 6
LIVING THE DREAM DATA BITS 7
Data 8
FYI Computers Are Everywhere 9
Information 9
Business Intelligence 10
ANALYZING ANALYTICS Categorizing Analytics 13
Knowledge 14
SYSTEMS THINKING AND MANAGEMENT INFORMATION SYSTEMS 14
The MIS Solution 15
BUSTED The Internet of Things Is Wide Open—For Everyone! 16
Systems Thinking 17
MIS Department Roles and Responsibilities 19
SHOW ME THE MONEY Is Technology Making Us Dumber or Smarter? 19
DUE DILIGENCE Data Analysis Gone Wrong 21
SECTION 1.2 >>Business Strategy 22
IDENTIFYING COMPETITIVE ADVANTAGES 22
MY NOT TO-DO LIST What Happens on YouTube Stays on YouTube—
FOREVER 23
FOUR KEY AREAS OF A SWOT ANALYSIS 24
THE FIVE FORCES MODEL—EVALUATING INDUSTRY ATTRACTIVENESS 24
Buyer Power 25
SHOW ME THE MONEY SWOT Your Student 25
 Supplier Power 26
Threat of Substitute Products or Services 27
Threat of New Entrants 27
Rivalry among Existing Competitors 27
Analyzing the Airline Industry 28
FYI Sharing Data around the World 28
THE THREE GENERIC STRATEGIES—CHOOSING A BUSINESS FOCUS 29
SHOW ME THE MONEY Death of a Product 29
LIVING THE DREAM One Laptop per Child 30
VALUE CHAIN ANALYSIS—EXECUTING BUSINESS STRATEGIES 30
BUSTED Listen to Spider-Man; He Knows What He’s Talking About! 31
UP-AND-RUNNING Smart Carting 32

CHAPTER 2 DECISIONS + PROCESSES: VALUE DRIVEN

BUSINESS 35
INTRODUCTION 35
SECTION 2.1 >>Decision Support Systems 36
SHOW ME THE MONEY What Level Are My Decisions? 36
MAKING BUSINESS DECISIONS 36
The Decision-Making Process 37
Decision-Making Essentials 37
MEASURING BUSINESS DECISIONS 39
Efficiency and Effectiveness Metrics 42
The Interrelationship of Efficiency and Effectiveness MIS Metrics 43
SHOW ME THE MONEY Is It Effective or Is It Efficient? 43
DUE DILIGENCE Get the Cow Out of the Ditch 44
USING MIS TO MAKE BUSINESS DECISIONS 44
Operational Support Systems 44
ANALYZING ANALYTICS Will They Stay or Will They Go? 45
Managerial Support Systems 46
Strategic Support Systems 46
BUSTED You Accidentally Sent Your Confidential Email to Your Significant Other
to Your Grandmother—OUCH! 49
ANALYZING ANALYTICS Metrics That Matter to Me 51
FYI Was Stephen Hawking Ever Wrong? 52
USING AI TO MAKE BUSINESS DECISIONS 52
Machine Learning 53
SECTION 2.2 >>Business Processes 56
LIVING THE DREAM My Virtual Reality Check 57
UP-AND-RUNNING Ready, Set, AlphaGo! 57
MANAGING BUSINESS PROCESSES 57
BUSINESS PROCESS MODELING 59
SHOW ME THE MONEY If It Ain’t Broke, Don’t Fix It 60 page v
USING MIS TO IMPROVE BUSINESS PROCESSES 63
FYI IBM Watson Taking over the World 63
Operational Business Processes—Automation 64
Managerial Business Processes—Streamlining 66
SHOW ME THE MONEY No Guts in Business 66
Strategic Business Processes—Reengineering 67
SHOW ME THE MONEY Streamlining Your Email 68
UP-AND-RUNNING Build Robot, Save Life 71
DATA MINING 71
Data Mining Process Model 71
Data Mining Analysis Techniques 71
Data Mining Modeling Techniques for Predictions 74

CHAPTER 3 EBUSINESS: ELECTRONIC BUSINESS VALUE

77
INTRODUCTION 77
SECTION 3.1 >>Web 1.0: Ebusiness 78
DISRUPTIVE TECHNOLOGIES 78
Disruptive versus Sustaining Technology 78
SHOW ME THE MONEY What Is Uber? 78
The Internet and World Wide Web—The Ultimate Business Disruptors 79
DUE DILIGENCE Unethical Disruption 80
WEB 1.0 THE CATALYST FOR EBUSINESS 81
Expanding Global Reach 82
Opening New Markets 82
Reducing Costs 82
Improving Effectiveness 84
SHOW ME THE MONEY DuckDuckGo! 84
THE FOUR EBUSINESS MODELS 86
Business-to-Business (B2B) 86
Business-to-Consumer (B2C) 86
Consumer-to-Business (C2B) 87
Consumer-to-Consumer (C2C) 87
Ebusiness Forms and Revenue-Generating Strategies 87
LIVING THE DREAM Search Engines 89
EBUSINESS TOOLS FOR CONNECTING AND COMMUNICATING 90
Email 90
UP-AND-RUNNING Social Media Marketing 90
 Instant Messaging 90
Podcasting 91
Videoconferencing (Zoom) 91
Web Conferencing 91
Content Management Systems 92
BUSTED Virtual Abandonment 92
SECTION 3.2 >>Web 2.0: Business 2.0 92
WEB 2.0: ADVANTAGES OF BUSINESS 2.0 93
Content Sharing through Open Sourcing 93
ANALYZING ANALYTICS Analyzing Websites 94
User-Contributed Content 95
Collaboration Inside the Organization 95
Collaboration Outside the Organization 96
NETWORKING COMMUNITIES WITH BUSINESS 2.0 96
MY NOT TO-DO LIST Social Not Working 97
Social Tagging 98
UP-AND-RUNNING Disrupt Yourself 99
DUE DILIGENCE Anti-Social Networking 99
BUSINESS 2.0 TOOLS FOR COLLABORATING 100
Blogs 100
Wikis 101
FYI Are You Ready for Your Next Gig? 101
Mashups 101
WEB 3.0: DEFINING THE NEXT GENERATION OF ONLINE BUSINESS
OPPORTUNITIES 102
LIVING THE DREAM Kiva Collaboration 102
Egovernment: The Government Moves Online 103
FYI Using Hashtags 103

CHAPTER 4 ETHICS + INFORMATION SECURITY: MIS

BUSINESS CONCERNS 105
INTRODUCTION 105
SECTION 4.1 >>Ethics 106
INFORMATION ETHICS 106
BUSTED Information: Does It Have Ethics? 108
Information Does Not Have Ethics; People Do 108
MY NOT TO-DO LIST Do You Really Want to Risk It? 109
DEVELOPING INFORMATION MANAGEMENT POLICIES 110
Ethical Computer Use Policy 110
Information Privacy Policy 111
Acceptable Use Policy 112
 DUE DILIGENCE The Right to Be Forgotten 112
Email Privacy Policy 113
SHOW ME THE MONEY 15 Million Identity Theft Victims 113
FYI Monitoring Employees 114
Social Media Policy 115
Workplace Monitoring Policy 115
BUSTED How Much Would You Pay for Your Life? 116
SECTION 4.2 >>Information Security 117
PROTECTING INTELLECTUAL ASSETS 117
Security Threats Caused by Hackers and Viruses 119
Viruses: A Dangerous Threat to Business 120
SHOW ME THE MONEY Who Filed My Taxes? 121
THE FIRST LINE OF DEFENSE—PEOPLE 122
MY NOT TO-DO LIST Fake News 123
THE SECOND LINE OF DEFENSE—TECHNOLOGY 123
People: Authentication and Authorization 123
DUE DILIGENCE Office Bullying 126
Data: Prevention and Resistance 127 page vi
Attack: Detection and Response 129
FYI Home Security Systems 130
SHOW ME THE MONEY Hackers Love Phish, and I Don’t Mean the Band 131

module two TECHNICAL FOUNDATIONS OF MIS 133

CHAPTER 5 INFRASTRUCTURES: SUSTAINABLE

TECHNOLOGIES 135
INTRODUCTION 135
SECTION 5.1 >>MIS Infrastructures 136
THE BUSINESS BENEFITS OF A SOLID MIS INFRASTRUCTURE 136
SUPPORTING OPERATIONS: INFORMATION MIS INFRASTRUCTURE 137
Backup and Recovery Plan 138
Disaster Recovery Plan 139
DUE DILIGENCE I Don’t Have a Temperature, but I’m Positive I Have a Virus
139
SHOW ME THE MONEY Who Can Fix My iPhone? 141
Business Continuity Plan 142
FYI Creating a BCP Plan 142
DUE DILIGENCE Zombies Attack the University of Florida 143
SUPPORTING CHANGE: AGILE MIS INFRASTRUCTURE 143
 UP-AND-RUNNING The Problem with Amazon 144
Accessibility 144
Availability 145
Maintainability 145
Portability 146
Reliability 146
Scalability 146
Usability 147
SECTION 5.2 >>Building Sustainable MIS Infrastructures 147
SHOW ME THE MONEY Ranking the -ilities 147
MIS AND THE ENVIRONMENT 148
DUE DILIGENCE Is Moore’s Law Dead? 148
Increased Electronic Waste 149
LIVING THE DREAM Solving the Ewaste Problem 149
Increased Energy Consumption 149
Increased Carbon Emissions 150
LIVING THE DREAM Turning Carbon Emissions into Power 150
FYI Ewaste and the Environment 150
SUPPORTING THE ENVIRONMENT: SUSTAINABLE MIS INFRASTRUCTURE 151
Grid Computing 151
SHOW ME THE MONEY How Big Is Your Carbon Footprint? 151
Virtualized Computing 152
ANALYZING ANALYTICS Sustainable Analytics 154
Cloud Computing 157
FYI Virtualization for Your Cell Phone 158
BUSTED Hack Attack 159
Utility Computing 163
SHOW ME THE MONEY Upcycle Your Old PC 165

CHAPTER 6 DATA: BUSINESS INTELLIGENCE 167

INTRODUCTION 167
SECTION 6.1 >>Data, Information, and Databases 168
DATA QUALITY 168
Data Type: Transactional and Analytical 168
Data Timeliness 169
Data Quality 170
SHOW ME THE MONEY Determining Data Quality Issues 172
Data Governance 172
STORING DATA USING A RELATIONAL DATABASE MANAGEMENT SYSTEM 173
Storing Data Elements in Entities and Attributes 174
Creating Relationships through Keys 174
DUE DILIGENCE That’s Not My Mother in the Casket! 175
 Coca Cola Relational Database Example 176
USING A RELATIONAL DATABASE FOR BUSINESS ADVANTAGES 176
MY NOT TO-DO LIST Yes, I Started the Internet 176
Increased Flexibility 176
BUSTED Follow the Data 178
Increased Scalability and Performance 178
Reduced Data Redundancy 178
Increased Data Integrity (Quality) 179
Increased Data Security 179
SHOW ME THE MONEY Excel or Access? 179
SECTION 6.2 >>Business Intelligence 180
BUSINESS INTELLIGENCE 180
DUE DILIGENCE Unethical Data Mining 180
The Problem: Data Rich, Information Poor 180
The Solution: Data Aggregation 181
UP-AND-RUNNING Big Data to the Rescue 182
DATA WAREHOUSES 183
Data Analysis 184
Data Lake 185
Data Cleansing or Scrubbing 186
SHOW ME THE MONEY Data Warehouse or Data Lake? 187 page vii
Data Visualization 188
SHOW ME THE MONEY Clean My Data! 191
BLOCKCHAIN: DISTRIBUTED COMPUTING 192
How Blockchains Work 193
Blockchain Advantages 194

CHAPTER 7 NETWORKS: MOBILE BUSINESS 197

INTRODUCTION 197
SECTION 7.1 >> Connectivity: The Business Value of a Networked World 198
OVERVIEW OF A CONNECTED WORLD 198
Wireless Networks 199
LIVING THE DREAM Saving the World One Phone at a Time 199
WIRELESS NETWORK CATEGORIES 201
Wireless MANs 202
UP-AND-RUNNING Sports Sensors 202
SHOW ME THE MONEY Pokémon Go for Playgrounds 204
DUE DILIGENCE Net Neutrality 205
PROTECTING WIRELESS NETWORKS 206
BUSTED War Driving: Engineering or Piracy? 207
 DUE DILIGENCE Teddy the Guardian 208
MOBILE ENTERPRISE MANAGEMENT 208
SHOW ME THE MONEY Where Would You GoPro? 209
DUE DILIGENCE Should Airlines Allow Cell Phone Calls during Flights? 212
BUSINESS APPLICATIONS OF WIRELESS TECHNOLOGIES 213
FYI Music in the Clouds 213
ANALYZING ANALYTICS The Magic Mobility of Disney 215
BUSTED Snapping a Theftie 217

module three ENTERPRISE MIS 219

CHAPTER 8 ENTERPRISE APPLICATIONS: BUSINESS

COMMUNICATIONS 221
INTRODUCTION 222
BUILDING A CONNECTED CORPORATION THROUGH INTEGRATIONS 222
SECTION 8.1 >>Supply Chain Management 222
Integration Tools 223
SUPPLY CHAIN MANAGEMENT 223
Blockchain Revamping the Supply Chain 227
ANALYZING ANALYTICS Buy One, Get One Groceries 229
TECHNOLOGIES REINVENTING THE SUPPLY CHAIN 229
3D Printing Supports Procurement 230
RFID Supports Logistics 232
LIVING THE DREAM 3D Printing for Poverty 232
DUE DILIGENCE 3D Printing Weapons 232
Drones Support Logistics 234
Robotics Supports Materials Management 234
FYI Drone Races 234
DUE DILIGENCE Robots Took My Job 235
SECTION 8.2 >>Customer Relationship Management and Enterprise Resource
Planning 236
CUSTOMER RELATIONSHIP MANAGEMENT 236
MY NOT TO-DO LIST Fixing the Post Office 237
FYI Ruby Receptionists 238
Evolution of CRM 238
The Power of the Customer 238
Measuring CRM Success 239
Operational and Analytical CRM 239
SHOW ME THE MONEY Nice Emotions 239
 Marketing and Operational CRM 241
Sales and Operational CRM 242
BUSTED I’m Stuck in London and I’ve Been Robbed–Help Me! 243
Customer Service and Operational CRM 244
DUE DILIGENCE Customer Power to the Rescue 245
Analytical CRM 245
SHOW ME THE MONEY AI Is My Co-worker 247
ENTERPRISE RESOURCE PLANNING 247
The Benefits of ERP 250
Core ERP Components 251
Extended ERP Components 252
Measuring ERP Success 254
SHOW ME THE MONEY Classic Cars 254
ORGANIZATIONAL INTEGRATION WITH ERP 255
On-Premise ERP 255
Cloud ERP 255
Hybrid ERP 257
UP-AND-RUNNING Chatbot Sales 257
FYI Bean Integration 259

CHAPTER 9 SYSTEMS DEVELOPMENT AND PROJECT

MANAGEMENT: CORPORATE RESPONSIBILITY
261
INTRODUCTION 261
SECTION 9.1 >>Developing Enterprise Applications 262
THE SYSTEMS DEVELOPMENT LIFE CYCLE (SDLC) 262 page viii
Phase 1: Planning 262
Phase 2: Analysis 264
FYI Meetings, Meetings, No More Meetings! 264
Phase 3: Design 265
Phase 4: Development 265
Phase 5: Testing 266
FYI Reducing Ambiguity in Business Requirements 267
FYI Scratch 267
Phase 6: Implementation 269
ANALYZING ANALYTICS Bugs Everywhere 270
Phase 7: Maintenance 270
SOFTWARE DEVELOPMENT METHODOLOGIES 271
Agile software development methodologies 272
SHOW ME THE MONEY Picking Great Projects 273
BUSTED Responding to Dilemmas 275
SECTION 9.2 >>Project Management 275
USING PROJECT MANAGEMENT TO DELIVER SUCCESSFUL PROJECTS 275
Unclear or Missing Business Requirements 276
Skipped Phases 276
FYI Time Management Applications 277
Changing Technology 277
The Cost of Finding Errors in the SDLC 277
Balance of the Triple Constraint 278
PRIMARY PROJECT PLANNING DIAGRAMS 279
DUE DILIGENCE Work Breakdown Structures 282
OUTSOURCING PROJECTS 282
MY NOT TO-DO LIST Honestly, It Cost $7,500 for a Steak Dinner 283
DUE DILIGENCE Global Work Breakdown Structures 284
Outsourcing Benefits 284
Outsourcing Challenges 284
SHOW ME THE MONEY Death March 285
GLOSSARY 286 page ix
NOTES 305
INDEX 309
 page x

connect®

Instructors: Student Success

Starts with You

Tools to enhance your unique

voice
Want to build your own course? No problem. Prefer to use our turnkey,
prebuilt course? Easy. Want to make changes throughout the semester?
Sure. And you’ll save time with Connect’s auto-grading too.
Laptop: McGraw Hill; Woman/dog: George Doyle/Getty Images

Study made personal

Incorporate adaptive study resources like SmartBook® 2.0 into your course
and help your students be better prepared in less time. Learn more about
the powerful personalized learning experience available in SmartBook 2.0
at www.mheducation.com/highered/connect/smartbook

Affordable solutions, added value

Make technology work for you with LMS integration for
single sign-on access, mobile access to the digital
textbook, and reports to quickly show you how each of
your students is doing. And with our Inclusive Access
program you can provide all these tools at a discount to
your students. Ask your McGraw Hill representative for
more information.

Padlock: Jobalou/Getty Images

Solutions for your challenges

 A product isn’t a solution. Real solutions are affordable,
reliable, and come with training and ongoing support when
you need it and how you want it. Visit
www.supportateverystep.com for videos and
resources both you and your students can use throughout
the semester.

Checkmark: Jobalou/Getty Images

page xi

Students: Get Learning that Fits

You

Effective tools for efficient

studying
Connect is designed to make you more productive with simple, flexible,
intuitive tools that maximize your study time and meet your individual
learning needs. Get learning that works for you with Connect.

Study anytime, anywhere

Download the free ReadAnywhere app and access your online eBook or
SmartBook 2.0 assignments when it’s convenient, even if you’re offline.
And since the app automatically syncs with your eBook and SmartBook 2.0
assignments in Connect, all of your work is available every time you open
it. Find out more at www.mheducation.com/readanywhere

“I really liked this app—it made it

easy to study when you don't
have your text¬book in front of
you.”
- Jordan Cunningham, Eastern Washington University

Calendar: owattaphotos/Getty Images

Everything you need in one

place
Your Connect course has everything you need—whether reading on your
digital eBook or completing assignments for class, Connect makes it easy to
get your work done.

Learning for everyone

McGraw Hill works directly with Accessibility Services Departments and
faculty to meet the learning needs of all students. Please contact your
Accessibility Services Office and ask them to email
accessibility@mheducation.com, or visit
www.mheducation.com/about/accessibility for more information.
Top: Jenner Images/Getty Images, Left: Hero Images/Getty Images, Right: Hero Images/Getty
Images
page 2
 page 3

coming up
BUSINESS
DRIVEN MIS

M
ost companies today rely heavily on the use of management information
systems (MIS) to run various aspects of their businesses. Whether they
need to order and ship goods, interact with customers, or conduct other
business functions, management information systems are often the
underlying infrastructure performing the activities. Management information
systems allow companies to remain competitive in today’s fast-paced world and
especially when conducting business on the Internet. Organizations must adapt to
technological advances and innovations to keep pace with today’s rapidly changing
environment. Their competitors certainly will!
No matter how exciting technology is, successful companies do not use it
simply for its own sake. Companies should have a solid business reason for
implementing technology. Using a technological solution just because it is available
is not a good business strategy.
The purpose of Module 1 is to raise your awareness of the vast opportunities
made possible by the tight correlation between business and technology. Business
strategies and processes should always drive your technology choices. Although
awareness of an emerging technology can sometimes lead us in new strategic
directions, the role of information systems, for the most part, is to support existing
business strategies and processes. ∎

module one
BUSINESS DRIVEN MIS
ch. 1 Management Information Systems: Business Driven MIS
ch. 2 Decisions + Processes: Value Driven Business
ch. 3 Ebusiness: Electronic Business Value
ch. 4 Ethics + Information Security: MIS Business Concerns
module two
TECHNICAL FOUNDATIONS OF MIS

module three
ENTERPRISE MIS
 page 2

Blue Andy/Shutterstock
 page 3

page 4

Maxim Marinkovskiy/Shutterstock
page 5
 chapter one
management information
systems:
business driven MIS

what’s in IT for me?

T
his chapter sets the stage for the textbook. It starts from ground zero by
providing a clear description of what information is and how it fits into
business operations, strategies, and systems. It provides an overview of
how companies operate in competitive environments and why they must
continually define and redefine their business strategies to create competitive
advantages. Doing so allows them to survive and thrive. Information systems are
key business enablers for successful operations in competitive environments.
You, as a business student, must understand the tight correlation between
business and technology. You must first recognize information’s role in daily
business activities and then understand how information supports page 6
and helps implement global business strategies and competitive
advantages. After reading this chapter, you should have a solid understanding of
business driven information systems and their role in managerial decision making
and problem solving. ∎

CHAPTER OUTLINE
SECTION 1.1 ≫
Business Driven MIS
∎ Competing in the Information Age
∎ The Solution: Systems Thinking and the MIS Solution
SECTION 1.2 ≫
Business Strategy
∎ Identifying Competitive Advantages
∎ Four Key Areas of a SWOT Analysis
∎ The Five Forces Model—Evaluating Industry Attractiveness
∎ The Three Generic Strategies—Choosing a Business Focus
∎ Value Chain Analysis—Executing Business Strategies
Another random document with
no related content on Scribd:
"What America owed abroad can never be computed; it is enough
that it reached an enormous sum, to refund which, even under
favorable circumstances, would have taken years of effort;
actually forced payment brought the nation to the brink of a
convulsion. Perhaps no people ever faced such an emergency and
paid, without recourse to war. America triumphed through her
inventive and administrative genius. Brought to a white heat
under compression, the industrial system of the Union suddenly
fused into a homogeneous mass. One day, without warning, the
gigantic mechanism operated, and two hemispheres vibrated with
the shock. In March, 1897, the vast consolidation of mines,
foundries, railroads, and steamship companies, centralized at
Pittsburg, began producing steel rails at $18 the ton, and at
a bound America bestrode the world. She had won her great
wager with fate. … The end seems only a question of time.
Europe is doomed not only to buy her raw material abroad, but
to pay the cost of transport. And Europe knew this
instinctively in March, 1897, and nerved herself for
resistance. Her best hope, next to a victorious war, lay in
imitating America, and in organizing a system of
transportation which would open up the East.

"Carnegie achieved the new industrial revolution in March,

1897. Within a twelvemonth the rival nations had emptied
themselves upon the shore of the Yellow Sea. In November
Germany seized Kiao-chau, a month later the Russians occupied
Port Arthur, and the following April the English appropriated
Wei-hai-wei; but the fact to remember is that just 400 miles
inland, due west of Kiao-chau, lies Tszechau, the centre,
according to Richthofen, of the richest coal and iron deposits
in existence. There with the rude methods used by the Chinese,
coal actually sells at 13 cents the ton. Thus it has come to
pass that the problem now being attacked by all the statesmen,
soldiers, scientific men, and engineers of the two eastern
continents is whether Russia, Germany, France, England, and
Japan, combined or separately, can ever bring these resources
on the market in competition with the United States."
 B. Adams,
The New Industrial Revolution
(Atlantic Monthly, February, 1901).

UNITED STATES OF AMERICA: A. D. 1897 (January-May).

Arbitration Treaty with Great Britain rejected by the Senate.

See, (in this volume),

VENEZUELA: A. D. 1896-1899.

The correspondence which took place between the governments of

the United States and Great Britain, on the subject of an
arbitration of the Venezuela Boundary dispute, having led to
the revival of a project for the negotiation of a general
treaty of arbitration, which the late American Secretary of
State, Mr. Gresham, had broached to the British government in
the spring of 1895, the terms of such an arrangement were
carefully and fully discussed between Secretary Olney and Lord
Salisbury, during the year 1896, and an agreement was reached
which took form in a solemn compact for the settlement by
arbitration of all matters in difference between the two
countries, signed at Washington on the 11th of January, 1897.
The treaty thus framed was as follows:

"ARTICLE I.
The High Contracting Parties agree to submit to Arbitration in
accordance with the provisions and subject to the limitations
of this Treaty all questions in difference between them which
they may fail to adjust by diplomatic negotiation.

"ARTICLE II.
All pecuniary claims or groups of pecuniary claims which do
not in the aggregate exceed £100,000 in amount, and which do
not involve the determination of territorial claims, shall be
dealt with and decided by an Arbitral Tribunal constituted as
provided in the next following Article. In this Article and in
 Article IV the words 'groups of pecuniary claims' mean
pecuniary claims by one or more persons arising out of the
same transactions or involving the same issues of law and
fact.'

"ARTICLE III.
Each of the High Contracting Parties shall nominate one
arbitrator who shall be a jurist of repute and the two
arbitrators so nominated shall within two months of the date
of their nomination select an umpire. In case they shall fail
to do so within the limit of time above mentioned, the umpire
shall be appointed by agreement between the Members for the
time being of the Supreme Court of the United States and the
Members for the time being of the Judicial Committee of the
Privy Council in Great Britain, each nominating body acting by
a majority. In case they shall fail to agree upon an umpire
within three months of the date of an application made to them
in that behalf by the High Contracting Parties or either of
them, the umpire shall be selected in the manner provided for
in Article X. The person so selected shall be the President of
the Tribunal and the award of the majority of the Members
thereof shall be final.

{578}

"ARTICLE IV.
All pecuniary claims or groups of pecuniary claims which shall
exceed £100,000 in amount and all other matters in difference,
in respect of which either of the High Contracting Parties
shall have rights against the other under Treaty or otherwise,
provided that such matters in difference do not involve the
determination of territorial claims, shall be dealt with and
decided by an Arbitral Tribunal, constituted as provided in
the next following Article.

"ARTICLE V.
Any subject of Arbitration described in Article IV shall be
submitted to the Tribunal provided for by Article III, the
award of which Tribunal, if unanimous, shall be final. If not
unanimous either of the High Contracting Parties may within
six months from the date of the award demand a review thereof.
In such case the matter in controversy shall be submitted to
an Arbitral Tribunal consisting of five jurists of repute, no
one of whom shall have been a member of the Tribunal whose
award is to be reviewed and who shall be selected as follows,
viz:—two by each of the High Contracting Parties, and one, to
act as umpire, by the four thus nominated and to be chosen
within three months after the date of their nomination. In
case they shall fail to choose an umpire within the limit of
time above-mentioned, the umpire shall be appointed by
agreement between the Nominating Bodies designated in Article
III acting in the manner therein provided. In case they shall
fail to agree upon an umpire within three months of the date
of an application made to them in that behalf by the High
Contracting Parties or either of them, the umpire shall be
selected in the manner provided for in Article X. The person
so selected shall be the President of the Tribunal and the
award of the majority of the Members thereof shall be final.

"ARTICLE VI.
Any controversy which shall involve the determination of
territorial claims shall be submitted to a Tribunal composed
of six members, three of whom (subject to the provisions of
Article VIII) shall be Judges of the Supreme Court of the
United States or Justices of the Circuit Courts to be
nominated by the President of the United States, and the other
three of whom (subject to the provisions of Article VIII)
shall be Judges of the British Supreme Court of Judicature or
Members of the Judicial Committee of the Privy Council to be
nominated by Her Britannic Majesty, whose award by a majority
of not less than five to one shall be final. In case of an
award made by less than the prescribed majority, the award
shall also be final unless either Power shall, within three
months after the award has been reported, protest that the
same is erroneous, in which case the award shall be of no
validity. In the event of an award made by less than the
prescribed majority and protested as above provided, or if the
members of the Arbitral Tribunal shall be equally divided,
there shall be no recourse to hostile measures of any
description until the mediation of one or more friendly Powers
has been invited by one or both of the High Contracting
Parties.

"ARTICLE VII.
Objections to the jurisdiction of an Arbitral Tribunal
constituted under this Treaty shall not be taken except as
provided in this Article. If before the close of the hearing
upon a claim submitted to an Arbitral Tribunal constituted
under Article III or Article V either of the High Contracting
Parties shall move such Tribunal to decide, and thereupon it
shall decide that the determination of such claim necessarily
involves the decision of a disputed question of principle of
grave general importance affecting the national rights of such
party as distinguished from the private rights whereof it is
merely the international representative, the jurisdiction of
such Arbitral Tribunal over such claim shall cease and the
same shall be dealt with by arbitration under Article VI.

"ARTICLE VIII.
In cases where the question involved is one which concerns a
particular State or Territory of the United States, it shall
be open to the President of the United States to appoint a
judicial officer of such State or Territory to be one of the
Arbitrators under Article III or Article V or Article VI. In
like manner in cases where the question involved is one which
concerns a British Colony or possession, it shall be open to
Her Britannic Majesty to appoint a judicial officer of such
Colony or possession to be one of the Arbitrators under
Article III or Article V or Article VI.

"ARTICLE IX.
Territorial claims in this Treaty shall include all claims to
territory and all claims involving questions of servitudes,
rights of navigation and of access, fisheries and all rights
and interests necessary to the control and enjoyment of the
territory claimed by either of the High Contracting Parties.

"ARTICLE X.
If in any case the nominating bodies designated in Articles
III and V shall fail to agree upon an Umpire in accordance
with the provisions of the said Articles, the Umpire shall be
appointed by His Majesty the King of Sweden and Norway. Either
of the High Contracting Parties, however, may at any time give
notice to the other that, by reason of material changes in
conditions as existing at the date of this Treaty, it is of
opinion that a substitute for His Majesty should be chosen
either for all cases to arise under the Treaty or for a
particular specified case already arisen, and thereupon the
High Contracting Parties shall at once proceed to agree upon
such substitute to act either in all cases to arise under the
Treaty or in the particular case specified as may be indicated
by said notice; provided, however, that such notice shall have
no effect upon an Arbitration already begun by the constitution
of an Arbitral Tribunal under Article III. The High
Contracting Parties shall also at once proceed to nominate a
substitute for His Majesty in the event that His Majesty shall
at any time notify them of his desire to be relieved from the
functions graciously accepted by him under this Treaty either
for all cases to arise thereunder or for any particular
specified case already arisen.

"ARTICLE XI.
In case of the death, absence or incapacity to serve of any
Arbitrator or Umpire, or in the event of any Arbitrator or
Umpire omitting or declining or ceasing to act as such,
another Arbitrator or Umpire shall be forthwith appointed in
his place and stead in the manner provided for with regard to
the original appointment.
{579}

"ARTICLE XII.
Each Government shall pay its own agent and provide for the
proper remuneration of the counsel employed by it and of the
Arbitrators appointed by it and for the expense of preparing
and submitting its case to the Arbitral Tribunal. All other
expenses connected with any Arbitration shall be defrayed by
the two Governments in equal moieties. Provided, however,
that, if in any case the essential matter of difference
submitted to arbitration is the right of one of the High
Contracting Parties to receive disavowals of or apologies for
acts or defaults of the other not resulting in substantial
pecuniary injury, the Arbitral Tribunal finally disposing of
the said matter shall direct whether any of the expenses of
the successful party shall be borne by the unsuccessful party,
and if so to what extent.

"ARTICLE XIII.
The time and place of meeting of an Arbitral Tribunal and all
arrangements for the hearing and all questions of procedure
shall be decided by the Tribunal itself. Each Arbitral
Tribunal shall keep a correct record of its proceedings and
may appoint and employ all necessary officers and agents. The
decision of the Tribunal shall, if possible, be made within
three months from the close of the arguments on both sides. It
shall be made in writing and dated and shall be signed by the
Arbitrators who may assent to it. The decision shall be in
duplicate, one copy whereof shall be delivered to each of the
High Contracting Parties through their respective agents.

"ARTICLE XIV.
This Treaty shall remain in force for five years from the date
at which it shall come into operation, and further until the
expiration of twelve months after either of the High
Contracting Parties shall have given notice to the other of
its wish to terminate the same.

"ARTICLE XV.
The present Treaty shall be duly ratified by the President of
the United States of America, by and with the advice and
consent of the Senate thereof, and by Her Britannic Majesty;
and the mutual exchange of ratifications shall take place in
Washington or in London within six months of the date hereof
or earlier if possible."

United States, 54th Congress, 2d Session,

Senate Document Number 63.

Public feeling in both countries gave joyful welcome to this

nobly conceived treaty when it was announced. All that was
best in English sentiment and American sentiment had been
shuddering at the thought of possible war between the kindred
peoples, and thanked God for what promised some certitude that
no dispute would be pushed to that barbarous appeal. Only the
mean thought and temper of either country was provoked to
opposition; but, unhappily, the meaner temper and the narrower
and more ignorant opinion on one side of the sea had been
getting so strong a representation in the United States Senate
as to prove capable of much mischief there, on this and other
matters of most serious public concern. When the great
covenant of peace went to that body for approval, there were
senators who found it offensive to them because it came from
the hands of President Cleveland and Secretary Olney; and
there were other senators whose dignity was hurt by the eager
impatience with which the public voice cried out for their
ratifying vote; and still others there were who looked with
official jealousy at the project of an arbitral tribunal which
might sometimes take something from senatorial functions in
foreign affairs. And the combination of pitiful motives had
strength enough to baffle the high hopes and defeat the will
of the American people.
Of the public feeling thus outraged, the following is one
expression of the time, among many which it would be possible
to quote:

Many people "are represented by influential papers like the

St. Paul 'Pioneer Press' and the Minneapolis 'Journal,' the
latter declaring that it is humiliating to think that, widely
as the treaty is favored throughout the country, a few
ill-natured men in the Senate have the power to delay
ratification. In the Central West the feeling is generally
strong for arbitration, if we may judge from the Chicago
'Times-Herald,' the St. Louis 'Republic,' the Indianapolis
'Journal,' and the Cleveland 'Leader.' In the South there are
such cheering reports as this from the Memphis 'Scimetar'; 'If
the treaty now under consideration in the Senate Committee on
Foreign Relations should fail of ratification, public opinion
in this country would demand that the incoming Administration
provide another embodying the same vital principle.' In the
East the sentiment in favor of immediate ratification of the
original draft has been almost universal, the only two
journals of note differing from this being the New York 'Sun'
and the Washington 'Post.' The trend of opinion is shown in
the adoption by the Massachusetts House of Representatives of
an endorsement by a vote of 141 to 11. An important meeting
took place last week in Washington in favor of ratification.
The speakers were ex-Secretary of State Foster, Mr. G. G.
Hubbard, Professor B. L. Whitman, ex-Senator J. B. Henderson,
ex-Governor Stanard, and Justice Brewer, of the Supreme Court.
The last named said; 'I do not believe in saying to the
gentlemen charged with the duty of considering carefully that
treaty, that "you must vote for it." There is something in my
own nature which, when anybody says to me "you must," causes
something to run up my spinal column which says "I won't." It
is the Senate's duty to consider that treaty carefully, and
when I say that, I say it is no trespass upon their rights for
American citizens to express their views of that treaty. What are
the errors and losses incidental to arbitration compared to
the horrors of war? What are a few million dollars of wrongful
damages in comparison to the sacrifice of thousands of human
lives?'"
The Outlook, February 6, 1897.

"This treaty was greeted with widespread favor in the press,

but was antagonized at once in the Senate by the jingo element
and by the personal adversaries of the administration. The
committee on foreign relations reported the draft favorably,
but with certain amendments, on February 1. The ensuing debate
soon revealed that a vote on ratification could not be
obtained before March 4, and the whole matter was dropped. At
the opening of the new Congress the Senate Committee again
considered the treaty and reported it, with amendments, on
March 18. During two weeks' discussion the Senate adopted the
committee's amendments and also others, with the result that
the draft was radically transformed.
{580}
Instead of the general reference of all disputes to the
tribunals, it was provided that any difference 'which, in the
judgment of either power, materially affects its honor or its
domestic or foreign policy,' should be submitted to
arbitration only by special agreement; that no question should
be submitted save with the consent of the Senate in its
treaty-making capacity; and that no claim of a British subject
against a state or territory of the United States should be
submitted under any circumstances. The first of these changes
was due mainly to the objection that without it the Monroe
Doctrine might be subjected to arbitration; the second to the
sensitiveness of senators as to their constitutional functions
in foreign relations; and the third to a desire to protect
states against claims on their defaulted bonds. Other changes
modified materially the method of appointing the arbitrators
for the United States, and struck out entirely the designation
of the King of Sweden as umpire. Even with these amendments,
the opposition to the treaty was not overcome; and the final
vote on ratification, taken May 5, resulted in its rejection,
the vote standing 43 to 26, less than two-thirds in the
affirmative. Thirty Republicans and 13 Democrats voted for the
 treaty; 8 Republicans, 12 Democrats and 6 Populists against
it."

Political Science Quarterly,

June, 1897.

UNITED STATES OF AMERICA: A. D. 1897 (March).

Inauguration of President McKinley.
Leading topics of the inaugural address.
The President's Cabinet.

The inauguration of President McKinley was performed with the

customary ceremonies on the 4th of March. In his inaugural
address, the new President laid somewhat less emphasis than
might have been expected on the need of measures for reforming
the monetary system of the country, but strongly urged that
instant steps be taken to increase the revenues of the
government by a return to higher tariff charges. "With
adequate revenue secured," he argued, "but not until then, we
can enter upon such changes in our fiscal laws as will, while
insuring safety and volume to our money, no longer impose upon
the government the necessity of maintaining so large a gold
reserve, with its attendant and inevitable temptations to
speculation. Most of our financial laws are the outgrowth of
experience and trial, and should not be amended without
investigation and demonstration of the wisdom of the proposed
changes. We must be both 'sure we are right' and 'make haste
slowly.' …

"The question of international bimetallism will have early and

earnest attention. It will be my constant endeavor to secure
it by cooperation with the other great commercial powers of
the world. Until that condition is realized, when the parity
between our gold and silver money springs from and is
supported by the relative value of the two metals, the value
of the silver already coined, and of that which may hereafter
be coined, must be kept constantly at par with gold by every
resource at our command. The credit of the government, the
integrity of its currency, and the inviolability of its
obligations must be preserved. This was the commanding verdict
of the people, and it will not be unheeded.

"Economy is demanded in every branch of the government at all

times, but especially in periods like the present of
depression in business and distress among the people. The
severest economy must be observed in all public expenditures,
and extravagance stopped wherever it is found, and prevented
wherever in the future it may be developed. If the revenues
are to remain as now, the only relief that can come must be
from decreased expenditures. But the present must not become
the permanent condition of the government. It has been our
uniform practice to retire, not increase, our outstanding
obligations; and this policy must again be resumed and
vigorously enforced. Our revenues should always be large
enough to meet with ease and promptness not only our current
needs and the principal and interest of the public debt, but
to make proper and liberal provision for that most deserving
body of public creditors, the soldiers and sailors and the
widows and orphans who are the pensioners of the United
States. …

"A deficiency is inevitable so long as the expenditures of the

government exceed its receipts. It can only be met by loans or
an increased revenue. While a large annual surplus of revenue
may invite waste and extravagance, inadequate revenue creates
distrust and undermines public and private credit. Neither
should be encouraged. Between more loans and more revenue
there ought to be but one opinion. We should have more
revenue, and that without delay, hindrance, or postponement. A
surplus in the treasury created by loans is not a permanent or
safe reliance. It will suffice while it lasts, but it cannot
last long while the outlays of the government are greater than
its receipts, as has been the case during the last two years.
… The best way for the government to maintain its credit is to
 pay as it goes—not by resorting to loans, but by keeping out
of debt—through an adequate income secured by a system of
taxation, external, or internal, or both. It is the settled
policy of the government, pursued from the beginning and
practiced by all parties and administrations, to raise the
bulk of our revenue from taxes upon foreign productions
entering the United States for sale and consumption, and
avoiding, for the most part, every form of direct taxation
except in time of war.

"The country is clearly opposed to any needless additions to

the subjects of internal taxation, and is committed by its
latest popular utterance to the system of tariff taxation.
There can be no misunderstanding either about the principle
upon which this tariff taxation shall be levied. Nothing has
ever been made plainer at a general election than that the
controlling principle in the raising of revenue from duties on
imports is zealous care for American interests and American
labor. The people have declared that such legislation should
be had as will give ample protection and encouragement to the
industries and the development of our country. … The paramount
duty of congress is to stop deficiencies by the restoration of
that protective legislation which has always been the firmest
prop of the treasury. The passage of such a law or laws would
strengthen the credit of the government both at home and
abroad, and go far toward stopping the drain upon the gold
reserve held for the redemption of our currency, which has
been heavy and well-nigh constant for several years. In the
revision of the tariff, especial attention should be given to
the re-enactment and extension of the reciprocity principle of
the law of 1890, under which so great a stimulus was given to
our foreign trade in new and advantageous markets for our
surplus agricultural and manufactured products."

{581}

Without effect, the incoming President urged the ratification

 of the treaty of arbitration with Great Britain, negotiated by
his predecessor and still pending in the Senate. In concluding
his address he announced his intention to convene Congress in
extra session, saying: "The condition of the public treasury
demands the immediate consideration of congress. It alone has
the power to provide revenue for the government. Not to
convene it under such circumstances, I can view in no other
sense than the neglect of a plain duty."

On the day following his inauguration, the President sent to

the Senate the following nominations for his Cabinet, which
were confirmed:

Secretary of State, John Sherman of Ohio;

Secretary of the Treasury, Lyman J. Gage of Illinois;
Secretary of War, Russel A. Alger of Michigan;
Attorney-General, Joseph McKenna of California;
Postmaster-General, James A. Gary of Maryland;
Secretary of the Navy, John D. Long of Massachusetts;
Secretary of the Interior, Cornelius N. Bliss of New York;
Secretary of Agriculture, James Wilson of Iowa.

UNITED STATES OF AMERICA: A. D. 1897 (March-July).

Passage of the Dingley Tariff Act.

Carrying out an intention announced in his Inaugural Address,

President McKinley called Congress together in extra session
on the 15th of March, asking for immediate action to increase
the revenue of the government by increased duties, "so levied
upon foreign products as to preserve the home market, so far
as possible, to our own producers." In his Inaugural Address
the President had expressed the understanding of his party as
to the chief meaning of the late election, by saying that "the
country is … committed by its latest popular utterance to the
system of tariff taxation. … The people have declared that
such legislation should be had as will give ample protection
and encouragement to the industries and development of our
country. … The paramount duty of Congress is to stop
deficiencies by the restoration of that protective legislation
which has always been the firmest prop of the treasury." To
the majority in both Houses of Congress these views were
entirely acceptable, and they were acted upon at once. The
Ways and Means Committee of the House of Representatives in
the previous Congress had already prepared a comprehensive new
tariff bill, which it passed on to its successor. This
ready-made bill was reported to the House on the first day of
the session, by Mr. Dingley, chairman of the newly appointed
committee, as he had been of the one before it. Debate on the
measure began a week later, and was controlled by a fixed
programme, which required it to be ended on the 31st of March.
The bill was then passed, by a vote of 205 against 121. Of the
action of the Senate upon it, and of the main features of the
bill as it was finally shaped and became law, the following is
a succinct account:

"The bill, referred at once to the Senate Committee on

Finance, was reported after a month, on May 8, with important
amendments. There was an attempt to impose some purely revenue
duties, and, as to the protective duties, the tendency was
towards lower rates than in the House bill, though on certain
articles, such as wools of low grade, hides, and others (of
which more will be said presently), the drift was the other
way. The Senate, however, paid much less respect than the
House to the recommendations of the committee in charge. In
the course of two months, from May 4 to July 7, it went over
the tariff bill item by item, amending without restraint,
often in a perfunctory manner, and not infrequently with the
outcome settled by the accident of attendance on the
particular day; on the whole, with a tendency to retain the
higher rates of the House bill. As passed finally by the
Senate on July 7, the bill, though it contained some 872
amendments, followed the plan of the House Committee rather
than that of the Senate Committee. As usual, it went to a
Conference Committee. In the various compromises and
adjustments in the Senate and in the Conference Committee
there was little sign of the deliberate plan and method which
the House had shown, and the details of the act were settled
in no less haphazard fashion than has been the case with other
tariff measures. As patched up by the Conference Committee,
the bill was promptly passed by both branches of Congress, and
became law on July 24. In what manner these political
conditions affected the character of the act will appear from
a consideration of the more important specific changes.

"First and foremost was the reimposition of the duties on

wool. As the repeal of these duties had been the one important
change made by the act of 1894, so their restoration was the
salient feature in the act of 1897. … Clothing wool was
subjected once more to a duty of 11 cents a pound, combing
wool to one of 12 cents. On carpet wool there were new graded
duties, heavier than any ever before levied. If its value was
12 cents a pound or less the duty was 4 cents; if over 12
cents, the duty was 7 cents. … The duties on carpet wool, as
has already been noted, were made higher than ever before. In
the House the rates of the act of 1890 had been retained; but
in the Senate new and higher rates were inserted. … They were
demanded by the Senators from some States in the Far West,
especially from Idaho and Montana. … They [the Senators in
question] needed to be placated and they succeeded in getting
higher duties on the cheap carpet wools, on the plea of
encouragement for the comparatively coarse clothing wool of
their ranches. … The same complications that led to the high
duty on carpet wool brought about a duty on hides. This rawest
of raw materials had been on the free list for just a quarter
of a century, since 1872, when the duty of the war days had
been repealed. … But here, again, the Senators from the
ranching States were able to dictate terms. … In the Senate a
duty of 20 per cent. was tacked on. The rate was reduced to 15
per cent. in the Conference Committee, and so remains in the
act. The restored duties on wool necessarily brought in their
train the old system of high compensating duties on woollens.
 … In the main, the result was a restoration of the rates of
the act of 1890. There was some upward movement almost all
along the line; and the ad valorem duty alone, on the classes
of fabrics which are most largely imported, crept up to 55 per
cent. …

{582}

"On cotton goods the general tendency was to impose duties

lower than those of 1890. This was indicated by the drag-net
rate, on manufactures of cotton not otherwise provided for,
which had been 50 per cent. in 1890, and was 45 per cent. in
1897. On two large classes of textile goods new and distinctly
higher duties were imposed,—on silks and linens. … The mode of
gradation was to levy the duties according to the amount of
pure silk contained in the goods. The duties were fixed by the
pound, being lowest all goods containing a small proportion of
pure silk, and rising as that proportion became larger; with
the proviso that in no case should the duty be less than 50
per cent. … Thus, the duty on certain kinds of silks was $1.30
cents per pound, if they contained 45 per cent in weight of
silk; but advanced suddenly to $2.25, if they contained more
than 45 per cent. … On linens another step of the same kind
was taken, specific duties being substituted here also for
ad-valorem. … Linens were graded somewhat as cottons had been
graded since 1861, according to the fineness of the goods as
indicated by the number of threads to the square inch. If the
number of threads was 60 or less per square inch, the duty was
1¾ cents a square yard; if the threads were between 60 and
120, the duty was 2¾ cents; and so on,—plus 30 per cent.
ad-valorem duty in all cases. But finer linen goods, unless
otherwise specially provided for, were treated leniently. If
the weight was small (less than 4½ ounces per yard), the duty
was but 35 per cent. On the other hand, linen laces, or
articles trimmed with lace or embroidery, were dutiable at 60
percent.,—an advance at 10 per cent. over the rate of 1890. …
It was inevitable, under the political conditions of the
session, that in this schedule something should again be
attempted for the farmer; and, accordingly, we find a
substantial duty on flax. The rate of the act of 1890 was
restored,—3 cents a pound on prepared flax, in place of the
rate of 1½ cents imposed by the act of 1894. …

"On chinaware the rates of 1890 were restored. The duty on the
finer qualities which are chiefly imported had been lowered to
35 per cent. in 1894, and was now once more put at 60 per
cent. On glassware, also, the general ad-valorem rate, which
had been reduced to 35 per cent. in 1894, was again fixed at
45 per cent., as in 1890. Similarly the specific duties on the
cheaper grades of window-glass and plate-glass, which had been
lowered in 1894, were raised to the figures of 1890. … The metal
schedules in the act of 1897 showed in the main a striking
contrast with the textile schedules. Important advances of
duty were made on many textiles, and in some cases rates went
considerably higher even than those of 1890. But on most
metals, and especially on iron and steel, duties were left
very much as they had been in 1894. … On steel rails there was
even a slight reduction from the rate of 1894—$6.72 per ton
instead of $7.84. On coal there was a compromise rate. The
duty had been 75 cents a ton in 1890, and 40 cents in 1894; it
was now fixed at 67 cents. On the other hand, as to certain
manufactures of iron and steel farther advanced beyond the
crude stage, there was a return to rates very similar to those
of 1890. Thus, on pocket cutlery, razors, guns, we find once
more the system of combined ad-valorem and specific duties,
graded according to the value of the article. … Copper
remained on the free list, where it had been put in 1894. …
For good or ill the copper duty had worked out all its effects
years before. On the other hand, the duties on lead and on
lead ore went up to the point at which they stood in 1890.
Here we have once more the signs of concession to the silver
Republicans of the far West. … The duty on tin plate, a bone
of contention under the act of 1890, was disposed of, with
little debate, by the imposition of a comparatively moderate
duty. …

"A part of the act which aroused much public attention and
which had an important bearing on its financial yield was the
sugar schedule—the duties on sugar, raw and refined. … The act
of 1890 had admitted raw sugar free, while that of 1894 had
imposed a duty of 40 per cent. ad valorem. … The price of raw
sugar had maintained its downward tendency; and the duty of 40
per cent. had been equivalent in 1896 to less than one cent a
pound. In the act of 1897 the duty was made specific, and was
practically doubled. Beginning with a rate of one cent a pound
on sugar tested to contain 75 per cent., it advanced by stages
until on sugar testing 95 per cent. (the usual content of
commercial raw sugar) it reached 1.65 cents per pound. The
higher rate thus imposed was certain to yield a considerable
increase of revenue. Much was said also of the protection now
afforded to the beet sugar industry of the West. That
industry, however, was still of small dimensions and uncertain
future. … On refined sugar, the duty was made 1.95 cents per
pound, which, as compared with raw sugar testing 100 per
cent., left a protection for the domestic refiner,—i. e., for
the Sugar 'Trust,'—of 1/8 of one cent a pound. Some intricate
calculation would be necessary to make out whether this
'differential' for the refining interest was more or less than
in the act of 1894; but, having regard to the effect of the
substitution of specific for ad-valorem duties, the Trust was
no more favored by the act of 1897 than by its predecessor,
and even somewhat less favored. The changes which this part of
the tariff act underwent in the two Houses are not without
significance." In the bill passed by the House. "the so-called
differential, or protection to the refiners, was one-eighth of
a cent per pound. In the Senate there was an attempt at
serious amendment. The influence of the Sugar Trust in the
Senate had long been great. How secured, whether through party
contributions, entangling alliances, or coarse bribery, the
public could not know; but certainly great, as the course of
legislation in that body demonstrated." The Senate attempted