The daily union. [volume] (Washington [D.C.]) 1845-1857, 1846-08-25

mittee Of Finance feel Il my duty TO present to the
Senate the result Of such conclusions AS have been
able 10 form Of the merits ofthis bill aera very hasty,
and of course, Imperfect, examination Of its proy-
sions, and without the aid Of much valuable infor-
nation which, with more time, ! could have pro-
cured from the Treasury Department
In attempting this duty, ! shall say nothing OF
the anti protective character of this measure. As
strong as are my convictions, and as deeply as
feel interested in that aspect Of the question, shall
leave It's discussion in other and ADLER hands, con.
tentsS myself with examining this bill as measure
Of revenue slone--as a means Of meeting the imam
cal necessities Of the government.
Il may be readily conceived that principal OBJ
eciion 20 this bill will be derived from the entirely
ad valorem character of its provisions haPpears TO
be taken for granted particularly by gentlemen who
advocate high DUTIES that ad yalorems are but little
10 be depended for revenue and that IN ad listing
tariff at such rate will give any considerable
amount Of revenue, reliance can be placed alone on
specifics
This proposition is, in my Judgment, one OF those
axomaIlc errors which, upon examination, will be
found TO be wholly falacious. ] think, sir, It will
be found tina ad yalorem duties which Il is admitted
by all are the fsirest inasmuch as they are more
open, and better MISUNDERSTANDING the rate Of
the taxes they impose on their very face-are also
best for all the purposes OF revenue.
But, sir, under what circumstances Of failure on
the part Of al Vaorems TO subserVe all the purposes
of revenue, is this objection brought forward At
a time when by the report Of the treasury, SIS.
72lSll OF our present revenue have been derived
from ad yalorems, and only sl3 200, llS have been
derived from specifics. Yes, sir, considerably more
that one-half has been derived from ad yalorems,
although coal, iron, hemp, sugar, molasses, salt,
spirits wine, glass of all kinds, shoes, boots and
many other articles of heavy consumption, upon
which il was attempted to give the highest protec
tion pay specific duties. Now, sir, before dIscred-
lung so large a source Of our revenue propose in
curing the character and truth of the allega
IONS which have been urged against the ad yalorem
principle.
The chief ground Of objection to ad valorem du-
ties is that they furnish the importer with the
slant temptation and opportunity undervalue his
goods by returning false invoice. ask, in reply,
what temptation there be to do this in the face
of the heavy penalties prescribed by existing laws'
among which are not only very heavy forfeItures,
If the invoice price be fixed lower than the apprais.
ed value OF the goods in the foreign market, how
ever truly and innocently that invoice price may be
stated but, if it be stated falsely and crmhaly, the
heavier penalty Of the State prison awaits the Offend
err To suppose that false invoices would be made
out under such circumstances, is to presuppose the
temptation OF very great gam IN case the fraud sue
cseds.
Now, sir, hold in my hand calculation of what
the importer would gain If he succeeded in
passing his goods through the custom-h ouse by a
ate give the results of several supposed successful
attempts to defraud the revenue.
In each case suppose the goods imported cost
800 in the foreign market, and 20 per cent. to be
the rate of duty: the importer would save, not the
amount of the naturalization his invoice, but the
20 per cent. duty on that amount.
"Thus, if he entered his goods five per cent be-
low their value, he would pay not $50 duty, but Sl9
duty. Gain one dollar by the fraud-equa TO So
100 per cent. on cost of goods and duty"
"lf he enters his goods 10 per cent below their
value, he would pay not 500 duty, but slS duty
Gain by the fraud, two dolars-equal to 70-l0O
per cent. cost of goods and duty"
"lf he enters his goods Is per cent below their
value, he would pay, instead of 500 duty, Sl7 duty
Gam, by the fraud, three dollars-oqual to $500
per cent. on cost of goods and duty"
"If he enters his goods 40 per cent. below their
value, instead of $40 duty, he would pay SIC duty.
Gain by the fraud, four doliars-equal to A 100
per cent. on cost of goods and duty"
"lf he enters his goods at 25 per cent. below their
value, he would pay, instead of 500 duty, SIS duty.
Gain by the fraud five doars-equal to 35-l00
per cent. on cost Of goods and duty"
Now, sir, take it for granted, before no compe-
tent appraisers would il be possible for any importer
to undervalue his goods more than 25 per cent be-
low their true valuation; and, therefore, the most
that he could promise himself even were he to sue
coed, would be 4 35-lO0 per cent. submit it to
the Senate, if any man of sane mind would run the
risk of the State prison, of loss of character and lib
ery, together with the heavy pecuniary forfeitures
affixed by the law, for the barely possible contin-
gency of saving less than FIVE per cent. on the cos
Of his goods by fraudulent invoice The absur
diy is too monstrous for belief, and | venture to
say no importer ever attempted such fraud. The
united testimony of every monopolist interested
in the DISCUSSES ofthe specific system could not
impose presumption so unreasonable on my Gre
dullty.
But, MIR. President, should the importer be weak
and wicked enough to attempt TO undervalue his
goods by false invoice, he could not by posi-.
bty succeed, for the reason that duties are as
sessed, not upon his inpoice, but on the actua
radiation of the appraisers, who sworn to atfix
the true pdlue of the goods in the foreign market,
without regard to their actual cost. And how dc
they arrive at this foreign value' Not by any
one invoice, but by many; and least Of all do 'hry
arrive at it by the invoice Of the immediate party
in interest. Their constant business is to know
and adIudge the values Of goods in foreign mar
kets TO examine invoices, to compare them witt
prices current, and to obtain information as to the
foreign market by every possible means which Q
constant association with other well-informed COM
mercia men can afford. Their valuations are
made entirely independent of the cost ofthe arti
Gle in the foreign market, even where that cost Is
known. The question is not what is the cost OF tn
article, but what is its uaiue in the foreign market
1t becomes, therefore, necessary that the appraiser
should eStaOnsn regular ana uniform stanodIu U
such values, from which uniform standard they ar
not at liberty to depart, even though they may "a
certain beyond doubt what the actual cost in the for
eign m rket of the goods valued il below that stand
ard OF what avail is il, then, for the importer u
understate the cost of the goods in his invoice, whe
that cost constitutes not even an element in deter
mining the amount of duty he has to payi Are W
to suppose him guilty Of the madness of riskin
character, liberty, and money, where he cannoteve
by possibility lessen the amount of the duties, an
where it is the interest Of every human being cor
neced with the custom-house to detect and expos
the valuation There are some proposition
grossly absurd that they assume the semoIanc
Of possibility only when they are graveiy denied.
But Mr.. President will now show, that so u
from the importer having an interest in underrdnn
his invoice, he has more frequently positive an
direct interest in orerpaiuing it. And Why Becaus
If he has been so fortunate in the foreign market
to have purchased goods at a rate lower than IN
usual price in that market, the presentation OF uu
invoice of that purchase subjects him to the pena
ties of the law. He is required by the law not
return the value Of his goods, but sworn invoice
Their cost; and this very requirement OF the law sui
lecs him to the penalty Of forfeiture, u ne mas Pu
chased them few per cent. below their market va
4. : - IL. RI