The Sun.
London, England, 1867-02-21 00:00:00

Prohibitory Duties a Mistake.

It is not easy to satisfy manufacturers when once
they have taken up the cry of Protection, and find it
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States lately published show surprising profits. The
dividends range from 20 up to 70 per cent. In-
deed, in the case of a paper mill, 100 per cent. was
divided; yet the cry is for more, and it is more
than probable that the Tariff Bill now before the
Senate, adding largely to the import duties, will be-
come law, and pass into operation on the Ist April
next. However sound may be the principle upon
which protection to American manufacturing indus-
try is founded, there is danger of carrying it to an
extreme, and thereby injuring the cause its sup-
porters profess to forward.- The object aimed at is
to encourage the immigration of artisans and skilled
workmen of Europe, and to foster into activity and
strength the young and struggling manufacturers
of the country. The intention may be good, and
the policy a sound one, as applied to the present
condition of the United States. Up to a certain
point that policy may be practicable, and even
judicious, but when carried beyond that point
the tendency is to destroy the industry intended to
be fostered. Mr. WELLs's report gives an instance
of the effect of pushing the principle of protection
to an extreme. The annual consumption of domes-
tic spirits is 40 millions of gallons, on which a tax
ought to have been levied of 80 millions of dollars,
at the rate fixed by law of two dollars per gallon.
Of this sum only 20 millions was received by the
Treasury, the distillers having evaded the impost of
the other GO millions ; a fraud, even at the depre-
ciated currency, of some nine millions sterling. So
heavy are the duties on imported spirits, that
brandy, rnm, and gin have ceased to be generally
consumed by the people, and have given place to
the home distilled whisky. The first effect is to
force on the consumers an inferior article, which in
the course of time has a prejudicial influence on
their tastes. Such was the influence in Great
Britain when the wines of France were prohibited
by an excessive duty in favour of those of Spain and
Portugal. The next effect is to encourage dis-
honesty, by holding out great inducements to de-
fraud the revenue, which inevitably leads to bribery,
corruption, and untruth. In this game the victims
are the honest distillers, who cannot compete with
those who succeed in passing their spirits into the
market free of duty. The third effect is to en-
courage the pernicious habit of smuggling, which
invariably exercises an evil influence on the
morals of the people. The sea-board requires
to be blockaded by revenue cruisers, and the
frontiers to be lined with Custom-house officials.
Without the guarded circle are those whose brains
are at work to pass their goods within, and within
that circle are those ready to extend every aid and
encouragement to the smugglers outside. Such a