The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1846-07-25
REPORT
FROM TIE SECRETARY OF THE TREASURY,
IN REPLY TO A RESOLUTION
OF THE SENATE.
TREAsuRy DEPARTMENT, !

TREASURY DEPARTMENT.
July -, lS46 (
the 29h of June last the following resolution was
adopted by the Senate of the United States;
Resolved. That the Secretary of the Treasury be in
suced TO report to the Senate the list II manufactured
articles upon which the sum of fifty -four millions of dol.
lars annually paid to the protected classes, by
HANGING the price domestic articles and the amount
so paid upon each article, If he possesses the of
aScel tanning the same"
The following statement upon this subject is contain
ed in my report To Congress of the Sd of December lasts
Al least two thirds OF the taxes imposed by the pre-
sent tariff paid not into the treasury but 10 the
'ected classes The revenue from imports, last year
exceeded twenty millions of dollars This, in it.
self j. heavy tax, hut the whole tax imposed upon the
people by the present tariff is less than eighty
millions of dollars-of which twenty seven millions are
paid 10 the government upon the Imports and nifty ur
millions to the protected classes in enhanced prices 81
similar domestic articles
This estimate is based upon the position that the duty
IS added to the price of the import and also OF its doues
tic nval II the import enhanced in prico by the duty
Sc mn I be the domestic nstl; for, being like articles
their price must BE- the same IN the same market The
me rchant advances in cash the duty the import and
adds the duty, with profit upon it, and other charges
TO the price which must therefore, be enhanced to
extent unless the foreign producer had first deducted
the duty from the price. But this impossibe for such
is and long has been the superabundance of capi-
tai and active competition in Europe that profit of six
per cent IN any business sufficient produce large in
vestmen;s OF money in that business ana it, by tariff
daty oil ory per cent be exacted the products of
such business and the foreign producer deducts that
euty from his previous price, he must sustain heavy
Tor our consump on 10 sales merchants OF articles
TO be reported by them from ports with a draw
throughout the markets OF the world But this thu for
eign producer csnuot saord The duty therefore
be added to the pree, and paid by the consmsr-the
duty constituting as much part oil tho price the cost
oil production
"lfit be true that, when duty of forty per cent is
imposed by our tariff this foreign producer hrst deduct
the duty from the previous pfice the sale
chant, 1t must be equally true with duty of one hun
dred per cent, which exactly equal to previous
price and, whom deducted, would reduce the price
nothing.
The occasional fall in price of some articles aer
of he be.
from improved machinery diminished prices of
the raw material or other causes, prices may fall
after tariff but they would in such have fallen
much more but for the tariff The ruest comparison is
between the present price Of the article home and
abroad and TO The extent that the price is lower in the
foreign market tina in our the duty, if equal 70
that difference must TO that extent enhance the price,
and IN the same ratio with the lower duty The differ
ence in price home abroad generally about equal
to the difference in of production and prese ns
series OF years the surest measure OF the effect of the
duty-ths enhancement in price being equal TO that diff
ference the duty be igher than that difference equal
to iii or If the duty be lower then the enhancement is
cotton cheoply here then abroad, The duty is in.
operative The great argument for the tariff is that,
oIeign labor beng cheaper than own, the cost of
foreign productions is said Is lessened to that extent
and that We must make up this difference by equiva-
lent duty, and corresponding enhancement OF price in
market both of foreign article and of its
rival domestic product-thus rendering the duty
all consumer for the bene of the projected classes
The estimate Of hfty-four millions based on the
very imperfect Ieturns OF protected articles in the cen.
sus Of ie40 and therefore TINS given as mini.
mum and not as iuil and complete statement of the
actual amount
Pursuance of the call of the Senate this department
mas proceeded 10 ascertain the tax paid each OF the
protected ARTICLES tar this information could be
obtained IN the short period within which il
sary TO submit This report.
The tate marked A. hereto annexed contains a state.
nen oi most oil the principal articles protected by tho
tariff OF 1912
II wild be perceived that upon these articles alone
the tax paid by the people OF the United States in
HANGED pices OF the domestic articles similar those
on winch the present duties are imposed is $40 1874 40
cies- NAMELY iron and the manufactures thereof the
manufactures of tobacco cotton wool and leather; coal
SALT sugar. molasses, glass; tpaper cordage cotton bag
mats and caps, straw hats, bonnets and brazil, and
earthenwaro.
ted States, by the table, is 1891 1913 $50 upon which,
the enhanced price be equal to the duty the tax
these arucies upon the people OF the United States i'm
posed by the tarf would be Sll9 II was never
assumed by this department that equal the
YAK was the dnerence arising from the duty, between
tho price oil the foreign and domestic article in
upon the principle contained in the extract as
quoted IRON my annual report
On nierenee to table A, 1t would appear that in in
stance Is the enhancement of price equal duty
ne case o cotton baggng is not an exception, the COM
Parison being made gunny cloth which but for the
duy would De largely USED as substitute for the ar
Gle generally designaied as cotton bsgging.
gross raised by duties on these arti
cles in l5s5 Sis 336452; and deductipg the ex-
pcnes oil collection the net revenue was AZ O32 aso,
ana the total TAX, both the imports and arti
Giles, IN order 10 bring this sum into the
treasury was ssa 10 sa7 Thus to bring
y
the tariff of 1912 tax of s94 upon the people of
Tie United States, of which slsa3 ,4oa gross
nue. and the remainder, S7554 405 constitute the en-
HANGED price OF these protected domestic articles
Inc actual amount OF iron and all manufactures pro-
auceu IN ne United states in is45 is based for Penny
wanna upon Tue report vi the iron and coal of
that state adding TOR the Of the Union an estimated
Pr9porionle Increase of third the Penn
syvasla from $40 under the census to ls45
Inc table Tor iron ana its manufactures hereto annex
~ J. marked No and shows total product in the
I nited States, in lSl5, of Sis 295 1850
2 IN AZ
manner exhibits tot al oil Sl5,2l6,S07.
Inc table oil manufactures Of cotton marked No g. is
oy taxing the amount returned officially in
each oil the States OF Massachusetts New York and Con-
neeucut In 1910, aud allowing proporonate increase
o,a e Ismaang states since the census of lsiO the
The table for woollens marked No T. is compiled on
ne same data as No and exhibits total Of s33 7o2
Inc table Tor SALT No exhibiting total Of 81 $50 542
compiled from the census returns for isao with an
ctua return for the State of New York for
nming similar rate Of increase for the rest of the
Table No Q, for sugar and moasses exhibiting total
or sugar of and of moasses 50 6i3 9as is
compiled from actual returns for the crop Of Louisiana
or 1885, and assuming increase in the rest of
non not in the ratio Of Louisiana but only corsspon
lent 10 population upon the OF 1910. Cotton
tagging is founded upon the amount required for the
roP OF ls45 deducting foreign importatons All the
ordage, hats and caps hats bonnets and braid
boots and shoes and other of
ne ioowlng manner namely by taking the actual
urns as above stated for $780, and allowing correspon
ent increase according to the census Of 1910. The
uy on all these articles IL taken from the tariff of 1872
equivalent ad valorem from the actual payments of
utes 10 the collectors published in the treasury re-
or The Imports and gross obtained in the
ans manner and also. the table of the enhance
aen OF prices measured by the rate of duty founded
e,Isey upon me same data proportion Of the
ua per centage oil the imports The actual addition to
ne price based upon prices current and sales upon
nc actuai e.nerence IN price of the foreign and /
omesuc article In our own market arising from
he tariff This is founded upon actual sales at
ome and abroad, comparison OF the foreign and do.
nestle prices current including the charges and trans
ortation oil articles, together with numerous invoices
ased upon actual importation and sales and
eretoore By merchants Of the highest character
Wherever any difference was presented in comparng
iese dita, the lowest su has invariably heen taken
as 20 leave IN the opinion of the department the sum
least as stated 75ti5 the amount upon the
xesn enumerated articles in the table actually paid
enh ince prices TO the protected classes These
ae results basel not upon theory but upon the fact Of
10 actual dference in price, four and OF similar