Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1828-03-25
OF THE STATE OF THE FINANCES.
MARCH II. 1928
Read and laid upon the table
Mr.. McDufile, from the Committee of WAYS and
Means, made the following REPORT
J,J,

Means, made the following REPORT:
Concludedl
The Committee will now proceed 10 eyibt n
bSief view OF the condition of those interests, and
| the peril in which they stand together with es-
Inmates OF their value. The first great interest
mat VIII be inIuriousy affected will be that of the
agricultural staples of cotton rice, and tobacco.
The magnitude, and the national importance OF
THIS interest, requires that the bearing of the pro-
posed prohibitions, upon il, should be fully exam
lned. The whole amount of the national exports
o, domestic productions, in 1926, was . 53,059,
|tV. he export OF cotton, tobacco, and rice, a
mounted, in that year. to $S52 ,2S9 ,S67 and that
! oil cotton, alone, amounted 10 S25 OBJ, PA. The
committee have grounds for believing that OF the
exports oil 1927, that otthe staples in question bears
sun Sreaterproportion TO the whole amount than
IN the year preceding; and that the export of cot
ton alone, amounts 10 fully one half of the whole
export OF domestic productions. 1t follows that
nearly tlree-fiiths ofthe foreign merchandise
imported for consumption, is paid for hv tlrsH
staples under consideration, and nearly one
laii by cotton alone. is equally apparent that
these staples contribute to supply al least one-haf
OF the revenue which the Government derives from
me tinpors--the only source OF the national income
Wh;ch involves taxation. proper understanding
oil the operation of system of revenue as far as
regards ITS relative bearing upon the great IN
terestS oil agriculture, commerce, and inanufac-
lures, VIII be promoted by summary view OF
our imports. The whole value of foreign mer-
chandise imported and consumed in the United
States, in 1926, was SEQ, i3iS 65 of this sum
) 1,432,661, was of merchandise imported free az
duty-a considerable proportion Of which was for
INC Use oil NE manufacturers, and almost all of
Wihch was imported into the manufacturing states
IN exchange tor their productions, and consumed
IN thoSe States. 1t results from this statement
thai the foreign merchandise imported il 1926 and
WIich pad duties, amounted only TO S;53 002 90 T.
In the same year, the merchandise iinpor.ed from,
Great Britain, amounted TO S26I3 Il $50 CON.
sLsung almost entirely of manufactures OF cotton,
WOOL iron, flax, and hemp, paying the highest o,,
ties under the tariff OF 1924; and the three first
subjected TO prohibitory duties by the scheme re-
commented by the Secretary of the Treasury
OI the SIG ,l3l 1863 imported from Great Britain
IN 1926, the Committee estimate the amount re
exported, with benefit OF drawback at :; I3l $50.
leaving Z4,VooOUO, rs the amount consumed IL,
the United states iour-liths, of which was nail
for by the agricultural staples of cotton tob,cc,
ana rice, ana thirds Oft by cotton alone Tho
appropriations from France, in 1926, amounted 70
So3Z9;59i, OF this, the amount re-exported with
the benefit OF drawback, may be estimated If & :
oz9o9l; leaving $ $500, 600, as the amount con
snmedln the United States and almost the whole
| oi which was paid for by cotton. The nett revc-
nue. which accrued i'll 1926 foin the imported
merchandise which actually paid duties, (amount-
ing as before stated, to : SO GO2 2OtA IVA, ltiie
upwards offs 20,000,0O6
Inc foregoing statement isdesigned for the two
/ foid purpose OF showing the dependence octhe ma.
tIonal revenue, upon thosJ branches of orr n,
| reign commerce which arc sustained almost on
-,
and the inseparabie conneXiun and mutual demon,
dence, which subsist between the export Trade in
those staples, and the continued importation Of hos
articles OF foreign merchandise which II il Tn DO
sigIl and VIII be the effect, OF the proposed tariff 10
exclude. II n be safely assumed t,,at ,iD,,,,
Oh %to,OOO,uOO OF the revenue which accrued
from imposts in 1926, was derived from me ~ -
dlse obtained in exchange for the staples in cues
ion ana that upv ards Oft five millions was derived
from the descriptions of merchandise iDvoy1ed i'm
the scope OF the proposed prohibitions 1t j. ogsins
tie great staples, then, which suppy more ;ha n
one hall OF the ordinary revenue Of the Govern
Inent, and IN particular manner, against cotton,
WnIch supplies more than third of that re,-erc
that the Secretary OF the Treasury directs tho har
OF prohibitory policy that will as inailiblv dcsfro,
the foreign market for those staples ae il viii v
/ clude the merchandise with which fofeion conn,
/ tries now pay for them.
! Before the Committee proceed to-synosa ~, :.
eviiabiy destructive effect Of the proposed tariff nm
/ ON the export trade in cotton, tobacco and r;cc
they viii submit few remarks in confirmation o.
me idea already suggested, that the PRINCIPAL bur
den oil taxation, even under mere revenue svs
TEN OF inposts, falls upon those staples and ON III,
| shipping interest and commerce, dependcnt rro,
them IL has been already shown that the ,nan,,f,c
turing states import upwards Of seven millions q
| horchahdise' Tree OF duty. This exemption opc
rates as bounty in favor Of manufactures not On
iy at the expense Of the revenue. but ,lso =
the expense oI agriculture and commerce
which must be subjected to heavier chargeS. :,
| supply tne uchclency resulting 60 the revcnu,
from that exemption. But the Committee feel Al,
thorzed 10 90 still further and 10 assert III, 49,
whole OF the revenue derived from imported ar,;
cles, OF which similar and rival articles are man,
featured IN this country, even under the rpost mo
dera'c system Of impost duties is tan upon a,sri
J culture and commerce; aud that fuai,faciurcs O.
Tar tom participating ~ the burden are bencGt,,
! by ITS imposition. Conclusive practical rroof =,
'hls VIII be found in the fact that the rna3ufrt,,
rers would unquesiionabiy oppose a prepositjon T.
repeal the whole of the iinpost duties even If H.,
pupnc lands were adequate 10 supply the Govern
| Tuent with I'll The revenue retnIircd c,rp, LII
service. It's only necessary. indeed - sI,,,,,
inc ldea OF arepcal OF the impost duties ami q,
imposition Of internal taxes, equally bca,ir,
upon all The interests Of tho country t rc,,,i1
Committee. - '''
IL cannot, indeed, be doubted that = s,eto,, ~
/ ieFenue, which imposes 10 internal take, Luf :
| cScil1Yely confined 10 impost duties. il - ts~ rn
y" 'grIch'nrc AMI commerce, and bounty i'm "a
sW OF manufactures. aud il 10 while this svs,cr,
OF revenue IS IA operation hiat the manufacturers
ot satisfied with the bounGes 10 provides C,r no.,
! but making every concession the baeis 81 49,,
/ cXoIbitant demands, call upon Congress 10 aJl
iniIbons to the annual burdens or scrcuIfuro an,
commerce, IN addition 90 former prolil,ifio,, 90.
10 saeHhce, at the same time four millions Of tl,e
public revenue, FOR their exclusive benefit
! nc committee will now ATTEMPT 10 exhibit a.,
Injurious tendency OF the proposed tariff in H. no.,
! lhg upon the commerce and shipping sustained a.,
OUT SoniheiD staples, IS well rs upon the agrir,i
IS' aOor ana capital engaged IN thsir production
.,n' ~ ''e bt"t place, they are Of the opinion
thot the prohibition Of British toop,,f,ci, III
tiueW,aDy cut OF very nearly to tbe r1e,t Of fhsi
Hommli0n, the foreign demand for our coffin
mere IS no law Of trade moro doo,,f, 6,e IT, ,i,