The daily union. [volume] (Washington [D.C.]) 1845-1857, 1846-07-23
VERY INTERESTING TREASURY REPORT. 4

we call the attention Of the country TO the follow
lag report Of the Secretary Of the Treasury, sub
pited this day to the Senate Of the United States.
Its startling Developments cannot be overlooked.
IL Is one Of the most remarkable papers which
ever emanated from that department. Ii illustrates
the wisdom of Congress in extending the inquiries
OF the last census, which have enabled the sagaeous
and aborous head Of the treasury exhibit to the
nation its actual condition in regard to tho opera
tons Of the tariff. This is done ia u manner so
clear and perspcuous that every one can understand
1t. The enormity Of the injustice inflicted upon the
great masses Of the people for the benefit Of the few
Is exposed, and all attempts at conesament must
hereafter be vain and idle We thank Mr.. Walker
for this invaluable document, which we should be
glad TO see published Ia every democratic paper in
the Union We venture to express the opinion that
1t will be one Of the great documents Of the free
trade party in every portion Of the country. II our
opponents think they can answer its statements and
deductions, let them attempt it, We only ask that
the text may accompany their commentary.
This protective system must be arrested. The
constitution gives Congress power only to raise reve-
nue. to pay the expenses Of the government II /. an
abuse Of this power, and violation of the spirit Of
the constitution, TO lay duties upon foreign mporta-
tons so to impose indirect Of two or three
dollars to go into the pockets Of capi-
tasts for every dollar that passes into the public
treasury.
REPORT
From the Secretary Of the Treasury Hrspy 10 rssolr
ton of The Senate.
TREAsURr DEPARTMENT,
July 81 1886.
On the 18th Of June last the following resolution
was adopted by the Senate Of the United States.
"ResOlrsd, That the Secretary Of the Treasury
be instructed to report to the Senate, the list Of
ufactured articles, upon which the sum Of fly
four millions Of dollars are annually paid TO the
protected classes, by enhancing the price Of domes
tic articles, and the amount paid upon each arti
Gle, # he possesses the means OF ascertaning the
same"
The following statement upon this subject is con-
tanned IN my report TO Congress Of the 81 Of De-
cember last:
AT least two-thirds Of the taxes imposed by the
present tariff paid, not into the treasury 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 the present tariff is
less than eighty-one millions of doars-of which
twenty-seyen millions paid to the government
upon the imports, and fty-four millions to the pro-
tected classes, in enhanced prices of similar domes-
tic articles.
This estimate is based spon the position that
the duty is added 10 the price Of the import, and
also Of its domestic rival. IL the import is en-
hanc ed in price by the duty, so must be the do
msstlc rival; for, being like articles, their price
must be the same in the same market The
merchant advances in cash the duty on the i'm.
port, and adds the duty, with profit upon it, and
other charges, to the price-whch must therefore be
enhanced to that extent, unless the foreign producer
had first deducted the duty from the price. But
this is impos sble; for such now is, and long has
been, the superabundance of capital and active COM
petition in Europe, that profit Of six per cent. in
any business is sufficient to produce large invest
ments Of money in that business; and IT, by our
tariff, duty Of forty per cent. be exacted on the
products Of such business, and the foreign produ-
Ger deducts that duty from his previous price
he must sustain a heavy oss. This loss would
also soon extend beyond the sales for our
consumption to sales to our merchants Of articles to
be re-exported by them from ports with draw
back of the 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 cousumer--the duty constituting as much part
Of the price as the cost of production. ...
at 1t be true that, when duty Of forty per cent.
is imposed by our tariff, the foreign producer first
deducts the duty from the previous price on the
sale TO our merchant, il must be equally true with
duty OF one hundred per cent, which 10 exactly
equal to the previous price, and, when deducted
would reduce the price to nothing. l
"The occasional fall in price Of some articles after
a tariff, is no proof that this the effect of the
tariff; because, from improved machinery, dimin-
ished prices Of the raw material, or other causes
prices may fall even after tariff, but they would
in such have fallen much but for the Ia
riff. The truest comparison is between the present
price of the same article at home and abroad and
to the extent that the price is lower in the foreign
market than in our own, the duty, if equal to that
difference, must to that extent enhance the price,
and in the ratio with the lower duty The
difference in price at home or abroad is generally
about equal to the difference in the cost of
production, and presents, in a series of years,
the surest measure of the effect of the duty
the enhancement in price being equal to that
difference if the duty be higher than that differ
ence or equal to it; or if the duty be lower,
then the enhancement is equal to the duty;
and if the article is produced, like cotton, more
cheaply here than abroad, the duty is imperative.
The great argument for the tariff is, that foreign
labor being cheaper than own, the Of foreign
productions, 1t is said, is lessened to that extent;
and that we must make up this difference by an
equivalent duty, and corresponding enhancement
of price in market, both of the foreign art-
Gle and Of its rival domestic product-thus render
ing the duty tax on all consumers for the benefit
of the protected classes"
The estimate of ifty-four millions was based on
the very imperfect returns of protected articles in
the census Of lsi0 and therefore this sum was given
as a minimum, and not as full and complete state
ment of the actual amount.
In pursuance of the call of the Senate, this de-
parment has proceeded 10 ascertain the tax paid on
each of the protected articles "a far as this norma-
ton could be obtained in the short period within
which it was necessary to submit this report.
The table marked A, hereto annexed, contains
statement Of most of the principal articles protected
by the tariff of 1912
1t will be perceived that upon these articles alone
the tax paid by the people Of the United States in
enhanced prices of the domestic articles similar to
S75, 784 ,405.
This table only embraces the following sixteen
articles-namey iron and the manufactures there
of; the manufactures of tobacco, cotton, wool, and
leather COAL salt, sugar, moasses, glass; paper,
cordage, cotton bagging, hats and caps straw hats
bonnets and braid, and earthenware.
The total amount of these articles produced in the
United States by the table, is 1891 1885, $50; upon
which, if the enhanced price BIO equal to the duty
tho al