Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1820-02-10

StateS.
Treasury Department.
27th January 1920
SIR,--In obedience to resolution of the
House of Representatives, OF the 4th instant
directing the Secretary of the Treasury - TO
inform The House what reduction, in his opin-
ion, il will make in the revenue, If the mpor-
taIIOn of cotton and woOllen manufac lures
and iron, he prohibited, and in What manner
the deficit III the revenue may be supplied,
should the prohibition be made, | have the
honour To submit statements of the amount of
revenue which accrued from those articles,
from the wear 1915 TO 1918, inclusive.
The very great difference in the amount of
revenue winch accrued during those Yeas,
renders it difficult to determine what the
durtiOn would be, should the prohibition be
enforced Ii is probable that the deficiency,
for a number of successive years, would
amount 10 the average sum of six million OF
dollars.
II AN increase of the rate of duty would ne
ceSsarily augment the revenue III the same
proportions, the deficiency might he readily
supplied. But reason aud experience forbid
the expectation of such result. The impOr.
tation of foreign merchandise is regulated by
the capacity of the importing country to pay
an equivalent for them. Any increase of duty
dimniSheS this capacity. When carried TO All
extreme, il amounts to prohibition. But the
revenue will frequently be diminished by
increase of duty, when the consumption of the
article Is not diminished Whenever the duty
is raised so high as 10 equal the risk incurred
by an attempt TO Introduce dutlable articles
iilciily, smuggling, upon an extensive and sys-
tematic plan, commences. In that case. not
only their consumption, but the capacity To
pay for them, may be increased, whilst the
| revenue may be diminished.
Considering the facilities which the extent
| of our coasts and frontiers, and the numerous
hdTbOurs, bays, inlGts and rivers, by which
they are indented furnish for the illicit intro
ductiOn of foreign merchandise, the settled
policy of the government has been to dimin-
| sb, as far as practicable, The temptation which
high duties would furnish TO take advantage
of these facilities. Should the existing duties
| lie considerably raised; there il lust ground
| TO apprehend that the revenue would be re-
| duced, rather than augmented, by the change.
| lndeed, there ~ Just reason to believe that,
with the present rate of duty the practice of
| smuggling IL gradually increasing. ANY at
! tempt TO raise the deficiency which will De pro
duCed by the prohibition under consideration,
| by an increase OF duty Upon the articles winch
will still he imported, VII greatly increase the
| expense OF collection, Ivy the necessity which
| il would create to employ greater number of
| officers OF the Customs. To guard against snug
\ CLING, aud eventually fail TO augment the re-
| venue TO the required exteut. The principal
| reliance for supplying the deficiency which
| would he produced by the adoption of the
| measure contemplated by the resolution. must.
| il appears to ne, be placed in a system OF IN
! tetual duties, or direct tax.
In aid of either OF these modes Of augment
| ing the revenue, q small addition might be
made upOu the rste ct duty now paid upon
linens, manufactures of hemp, stuff goods
| coffee. brown sugar, teas, wines, mOldssos,
spices, aud other small Articles. lf system
| OF Internal duties Should be deemed Al thts
| time, advisable, az entire prohibition Of az
dent spirits might I've adopted, without mate
rial Injury TO the revenue. aud with manifest
advantages 10 ihe agricultural interest. ~
that event, tire reS euue which has been here
tOiOre received HO'r the duties Imposed npUi
foreign spirits, might he collected from do
1 ursiic spirits.
have tie honour 10 he. yopr niost obcdien
'ervamt, WAi. II. CRAWFORD.
! Hoansrable SDf9ker
! 81 M House Of Il personalities.