American Republican and Baltimore daily clipper. [volume] (Baltimore, Md.) 1844-1846, 1845-12-05

onward career in peace and prosperity; but if,
unhappily, such should be the result, it would
create an increased necessity for reducing our
present high duties in order TO obtain sufficient
revenue to meet increased expenditures. The
duties for the quarter ending the 3Oth Septem
Der, 1874, yielded S2,0ll 1855 go more of re-
venue than the quarter ending 30th Septem-
Der, ls45-showing very considerable de-
cline OF the revenue, growing out of dimin-
ished importation of the highly-protected
articles and progressive substitution Of their
domestic rivals. Indeed, many of these duties
are becoming dead letters, except for the pur-
pose of prohibition, and, if not reduced, will
ultimately compel their advocates to resort to
direct taxation to support tine government. In
the event of war, nearly all the high duties
would become prohibitory, from the increased
risk and cost OF importatons; and if there be,
indeed, in the opnion of any, serious danger
OF such an occurrence, it appeals most strongly
to their patriotism to impose the lowest reve-
nue. duties on all articles, as the only means of
securing, at such a period, any considerable in
come from the tariff,
The Secretary here recommends that the
rate Of duty on uXures be fixed at the highest
revenue standard. He alleges that the protec-
tive system does not increase the wages of la
bor-that the system is to augment the profit
ofcapital, and not the wages of labor-and that
the result of the system must be, in a series of
years, as the power of manufacturing capital is
augmented from time to time, to bring the
wages of labor under its controul, and ultimate
ly to reduce those wages, so as TO increase the
profit of capital. The report continues
Mlnimums are fictitious value, assumed by
law, instead of the real value; and the operation
of all minimums may be illustrated by single
example Thus, by the tariff Of 1912, duty
of 80 per cent. ad valorem is levied on al man
uiactures of cotton; but the law further pro-
vides that cotton goods "not dyed, colored,
printed, or stained, not exceeding in value
twenty cents per square yard, shall be valued
at twenty cents per square yard" If, then, the
real value of the cheapest cotton goods is but
four cents square yard, it is placed by the law
at the false value of twenty cents per square
yard, and the duty levied on the fictitious value
raising it five times higher on the cheap az
ticle consumed by the poor, than upon the fine
article purchased by the more wealthy. In
deed, by House document No. SOC, of the LIST
session of the 2Sth Congress, this difference, by
actual importation, was So per cent. between
the cheaper and the finer article of the 90 per
cent. minimum, lSl per cent on the 80 per
cent. minimum, 4S l-2 per cent. on the 35 per
cent. minimum, 81 per cent on the 60 per cent.
minimum, and 81 per cent on the is per cent.
minimum. This difference is founded Oh actu-
al importation, and shows an average dscrmi-
nation against the poor on cotton imports ofSe
per cent. beyond what the tax would be- if as
sessed upon the actual value. The operation
Of the specific duty presents a similar discrimi-
nation against the poor and IN favor of the rich.
Thus, upon salt, tho duty is not upon the value,
but 1t is eight cents bushel, whether the arti-
Gle be coarse or fne-showng, by the same
document. from actual importation, discrimi-
nation of Ga per cent against the cheap, and
in favor of the finer article; and this, to a great
err or less extent is the effect of all specific du-
ties When We consider that S2,s92,62l IA
of the revenue last year was collected by mini
mum duties, and 1891 l,0s5 46 by specific du-
ties, the discrimination against the cheaper ar
tiche must amount, by estimates founded on the
same document, to a tax of S., los ,42s, ex-
acted by minimums and specific duties annual
ly from the poorer classes, by raising thus the
duties on the cheaper article above what they
would be il the duty were assessed upon the
actual value. lfdrect taxes were made speci-
&c, they would be intolerable. Thus if an an
nual tax of thirty dollars was assessed on all
houses, without respect to their actual value,
making the owner of the humble tenement or
cabin pay tax of thirty dollars, and the owner
of the costly mansion tax of but thirty dol
lars on their respective houses,--it would differ
only in degree, but not in principle, from the
same unvarying specific duty on cheap as on
fine articles. If any discrimination should be
made, it should be the reverse Of the specific
duty, and of the minimum principle, by estab-
lishinga maximum standard, above which value
the duty on the finer articles should be higher,
and below which they should be lower on the
cheaper article. The tax upon the actual val
ne is the most equal, and can only be accom-
plished by ad valorem duties. As to fraudulent
invoices and differentiation, these dangers are
believed to be arrested effectually by the strn-
gent provisions and severe penalty of the 18th
section of the tariff of 1912; and now one-half
the revenue is collected from ad valorem du-
ties.
At least two-thrds of the taxes imposed by
the present tariff are paid, not into the treasu-
ry, but to the protected classes. The revenue
from imports last year exceeded twenty-seven
millions of dollars. This, in ITSELF is heavy
tax; but the whole tax imposed upon the people
by tho present tariff is not less than eghty-one
lions are paid to the government upon the I'M
ports, and hfty-four millions to the protected
classes, in enhanced prices of similar domestic
articles.
In illustration of this position, it is alleged
that the duty is not paid by the foreign produc-
er, but by tho consumer; and that the duty con-
stitutes as much part of the price as the cost
of production.
The making of laws to increase the profits of
particular pursuits is opposed, and the view
taken that "legislation for classes is against
the spirit of the constitution"
The argument of countervailng the effect of
foreign tariffs by our own is answered. 1t is
contended that the manufacturers who urge
this argument are not the party injured by
these tariffs, but the great interests of agricul-
ture, commerce, and navigation; and that, in.
jured as these interests may be by foreign ia