The Sun.
London, England, 1852-03-29 00:00:00

MONDAY

FINAN I Ikt, RPFORNT.

MR COST OP CUSl'i).ll5 iNi.) EX 'l..lsE
DU7'I.ES. By thi' Liverpool Financial Iteforat
Association. Lirerpool: George Philip and Son.
London : J. C. Bishop, Aldine Chambers, Pater-
noster-row.
During tho last four years the Financial Reform Asso-
ciation of Liverpool have issued a series of Tracts on
the National Expenditure—the Customs and Excise
Dutie, laws, and practices—Taxation, direct and indi-
rect—Our Fiscal System, &c. Ste., with the view of
instructing the puntic mind and paving the way for
procuring the " adoption of a simple and equitable
system of direct taxation, fairly levied upon property
and income, in lieu of the present unequal, compli-
cated, and expensively collected duties upon commodi-
ties," or, in other words, "complete Free Trade." Of
all their publications, the pamphlet now before
ns appears to be the most practical, and if
the basis of their calculations be correct
(which we see no reason to doubt) most conclusive. The
questio vexata of direct versus indirect taxation is com-
pletely set at rest on the single ground of expense, setting
aside all reference to increased employment, increased
production, decreased poor-rates, and every other benefit
which would accrue were industry relieved from all
fiscal burdens.
Few persons have an adequate conception of the cost
of collecting the revenue under the system of Customs
and Excise duties. If we examine the finance accounts,
we find it therein stated that the rate for which the gross
receipt was collected averages from 5 to 6 per cent., or
each 1001. levied on commodities yield only 94/. to 95/.
to the Government. We consider this costly, as
our direct taxes, such as income and property,
land and assessed taxes, and stamps, are collected at
from 2 to 3 per cent., or for every 1001. taken from the
tax-payers; 971. to 931. is received into the Treasury,
the difference about 3 per cent. being generally con-
sidered the total saving which would accrue were the
whole of our revenue collected under one uniform and
direct system of taxation. We forget, or rather over-
look the fact, that the duty must be paid on the articles
before they are taken from the importer or manufacturer
for consumption, and it forms therefore an integral part
of the first cost, to which the profit of two, and often
more, tradera—tho wholesale and retail dealers—is to
be added. The Government thus first of all collects the
duties from the importer or manufacturer, next the im-
porter or manufacturer reimburses himself by collecting
them from the wholesale dealer, then the wholesale
dealer from the retailer, and, lastly, the retailer from the
public as consumers. The public, therefore, have to pay
no less than the cost of four collections, the last three
being accumulated per-tentage in the shape of profits,
upon all revenue derived from duties upon commodities.
The estimate of this cost, or loss, to the public was pre-
pared at the suggestion of Mr. Hume, M.P., who, in a
letter to the President of the Financial Reform Asso-
ciation, says—
" I hope you will appoint a committee to inquire into
that subject [direct taxation]; and the strongest point
of view that suggests itself to me will be, to take the
Ltd amount of tea imported and its import price, add
the total duty paid by the importer, the profit or charge
by him on the same, the additional charge by the re-
tailer on the prime cost, duty, and profit of the wholesale
purchaser, and a calculation of the additional per-tentage,
and the actual increase in the price of the article to the
consumers.
" It the chief articles that pay the twenty millions of
Customs' duties, and also the articles under the Excise
that pay the fourteen millions, are thus worked out and
extended, the additional charge on the nation as con-
sumers will surprise the public."
The Council have carried out Mr. Hume's views by
preparing schedules on seven of the principal articles of
consumption which pey Customs and Excise duties, and
from which nearly three-fourths of the revenue are de.
rived. These schedules have been compiled tied check, d
by " persons of wending and experience in their various
linea of business," and the result is really stealing, nay
almost increchb!e; but an examination of the different
schedules, which are simple, plain, and easily wider-
stood, will convince the most sceptical. We quote from
the pamphlet:—
" It remains to sum up the totals, and show the gross
money loss entailed upon the nation by this thriftless and
preposterous system.

t.l ,—. op cv - GO kl

-Fs .
0..0
,EN.7L
.17P'4
Lit;
Y(3,
S-c.

0 .40 0.1 .1i cm .1,

t•-• CO 00 CO 0
C, C 7, 04 00 Ck%
Ca /0. co ...I "et 0
er OA 00 CO 0 .1-•
v), 1.100 o
t• of er (xi

.-1014
C., Cf) •—• :,:ra
•—I ,I

M 01 CO 14.1 0 00
r-4 11,1

I:0 CO 00 04 CI et,
C•I t.O GV 00 ul C,
Lec c 7;" .47
co cf? t•••
u, LOGO 0 00
e. 4 CV r—;.