The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1845-12-27

thus the duties on the cheaper article above what
they would be ifthe duty were assessed upon the
actual value. II direct taxes were inside specific,
they would be inolerable. Thus, il an annual tax
ofihrty dollars was assessed on all houses, without
respect to their actual value, making the owner Of
the humble tenement or cabin pay a tax Of thirty
dollars, and the owner of the costly mansion tax
of but thirty dollars their respective houses,-i
would differ only in degree, bnt not IN principle
from the same unvarying specific duty on cheap as
on fine articles. IF any discrimination should be
made, II should be the reverse OF the specific Duty
and of the minimum principle, by establishing a
maximum standard, above which value the duty
on finer articles should be higher and below which
they should be lower on the cheaper article. The
tax upon the actual value is the most equal, and
can only be accomplished by ad valorem duties
As to fraudulent invoices and under valuation,
these dangers believed to be arrested effecual
ly by the stringent provisions and severe penalty of
the 18th section of the tariff Of 1912; and
half the revenue is collected from ad valorem
duties tH '-2,A .l a5a
At lie ,st two.tbirds of the taxes imposed by the
present tariff paid, not into the treasury, but
10 the protected classes. The revenue from i'm.
ports last year exceeded twenty-seven millions of
dollars. This in ITSELF is a heavy tax; but the
whole tax Imposed upon the people by the present
tariffs not less than eightyone millions of dollars;
OF which, twenty y-seven millions are paid to the
government upon the imports, and fifty -four nil.
lions to the protected classes, il enhanced prices
of similar domestic articles
This estimate Is based upon the position that the
duty is added to the price Of the import, and also
ofits domestic rival II the import is enhanced in
price by the duty. must be the domestic rival;
for being like articles, their price must be the same
10 the same market The merchant advances in
cash the duty on the import, and adds the duty,
with profit upon it, and other charges, to the
price-which must therefore be enhanced to that
extent, unless The foreign producer had first de-
Quoted the duty from the price. But this Is imposs
bic, for such now is and long has been, the super
abundance OF capital, and active competitors in
Europe, that profit OF six per cent. In any busi-
ness is sufficient to produce large investments of
money in that business; and If, by our tariff, duty
of 40 per cent. be exacted the products Of such
business, and the foreign producer deducts that
duty from his previous prices, he must sustain
heavy loss. This loss would soon extend beyond
the sales for consumption TO sales to our mer.
chants of articles TO be re-e1ported by them from
our ports with a drawback of duty which would
bring down their price throughout the markets Of
the world But this the foreign producer cannot
afford The duty, therefore, must be added to
the price, and paid by the consumer the duty
constituting much part ofthe price. as the cost
of production. .tt.t.
If it be true, that when duty Of 40 per cent,
I tdeducts the duty from the previous price on the
sale to our merchant, must be equ.lly true with
duty OF one hundred per cent, which is exactly
equal TO the previous price, and, when deducted,
would reduce the price to nothing.
The occasional fall in price of some articles af-
ter tariff is proof that this was the effect Of
the tariff because from improved machinery, d.
minished prices of the raw material. or other eau
ses prices may fall even after tariff. but they
would. in such cases, have fallen much more but
for the tariff The truest comparison is between
the present price of the same article at home and
Abroad and to the extent that the price is lowor in
the foreign market than in our own, the duty, if
equal to that difference, must to that extent en-
hance the price, and in the same ratio with the
lower duty. The difference in price at home and
abroad, is generally about equal TO the difference
in the cost of production, and presents, in series
of years the surest of the effect of the du-
ty-the enhancement in price being equal to that
difference if the duty be higher than that difference
or equal to it, or if the duty be lower then the en-
hancement is equal to the duty aud if the article
ia produced, like cotton, more cheaply here than
abroad, the duty is imperative The great argu-
ment for the tariff is. that, foreign labor being
cheaper than our own. the cost of foreign produc-
tion it is said is essened to that extent; and that
we must make up this difference by an equivalent
duty, and corresponding enhancement Of price,
in our own market both of the foreign article, and
Of its rival domestic product--hus rendering the
duty tax on consumers for the benefit oil the pl
tected classes If the Marshal were sent by the
federal government, to collect duect tax upon
the whole people, to he paid over 10 manufactur-
ing capitalists, to enable them to sustain their bu-
siness, or realize larger profit, it would be the
same in effect as the protective duty, which, when
analyzed in its simplest elements, and reduced to
actual results is mere subsracton Of so much mo-
ney from the people, 10 increase the revenues OF
the protected classes. Legislation for classes is
against the doctrine of equal rights, and repugnant
to the spirit of our free Institutions, and, il is ap-
pretended by many, may become but another form
for privileged orders, under the name of protection
insterd of privilege indicated here not by iank or
title, but by profits and dividends extracted from
| the many, by taxes upon them, for the bentit of
the fe W. No prejudice is felt by the Secretary G
i the Treasury against manufacturers His opposi-
ton is to the protective system, and not to classes
/ or individuals. He doubts not that the manufac-
turers are sincerely persuaded that the system
which is source of so much profit to them,ls ben
efcia also to the country. He entertains con-
trary opinion, and claims for the opponents Of the
system settled conviction Of Its injurious effects.
Whilst due regard to the just and equal rights OF
all classes forbds discrimination in favor Of the
manufacturers, by duties above the lowest reve-
nue. limit, no disposition is felt 10 discriminate
| against them by reducing such duties operate in
their favor, below that standard. Under revenue
duties, it is believed they would still receive
reasonable profit-equal to that realized by those
engaged in other pursuits; and it is thought they
should desire no more, at least through the agency
/ of governmental power Equal rights and profits,
SO far as laws are made, best conform to the prin
ciples upon which the constitution was founded,
and with an undertaking regard to which oil its
| unctonsshoul be exercised looking to the whole
4 country, and not to classes or sections. ts
4 Soil. climate and other causes, vary very much,
in different countries, the pursuits which are most
profitable in each and the prosperity ofal of them
will be best promoted by leaving them, unrestrict
ed by legislation, to exchange with each other
those fabrics and products which they seveIally
raise most cheaply. This is clearly illustrated by
| the perfect free trade that exists among all the
states of the Union, and by the acknowledged fact,
that any one Of these states would be injured by
imposing duties upon the products OF the others 1t
is generally conceded, that reciprocal free trade