The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1847-02-04
REPORT
OF THE
SECRETARY OF THE TREASURY

augmentation of tho revenue.
Treasury DEPARTMENT, Feb l, ls47.
luton adopted by the o!the United States
s"Resolved, That the Secretary of the Treasury be di.
reced to report to the Senate what articles
in tine tariff Of sa6 the duties be ond
the existing rates to augment the and to
what extent the said duties can be increased, and
what additional revenue would accrue therefrom And
furthermore that he be requested to report what articles
should be laid thereon; and that he also report on what
articles any the rates of duty be reduced below
NOSE oy INC Aforesaid act SO as 70 increase the
which the revenue would probably be increased there
~ ana whether IN his opinion any tax which may be
amount"
In order 10 reply to this resolution became
ry 10 review every item embraced in the tariff OF 1916
TO- Ie-examine the imports Of each article, with the rate
duty ana revenue accrung thereon Tor the fiscal
ending the Both of June 1915; and and also pre-.
pared and consider tables of similar character
the fiscal year ending the Both Of June lS46 and to
pre- the results.
It will be perceived that this has been work great
labor. requiring much time and investigation, and the
answer has been prepared with as little delay prac,.
able On comparing the tables for 1916 with thcss
OF lea5 will DO found that in the great majority Of
cases. where the duties specific under the tariff Of
1912 the equivalent ad valorem has been much lower
dring the last 6scal year than that which precedcS
and hence calculations based and estimates made upon
the imports Of S45 must be corrected by those of the
year succeeding as being in date and furnishing
safer and better data which calculate the effect
upon the revenue OF reduction of the pre-
sent du,iea As the equivalent al valorems under the
rates Of duty than the equivalent ad vaorems
saS, smaller augmentation OF the present duties will
duty under the last tariff produced larger revenue on
the import isny article than the present duties on
lorems the imports of ls45, emitting fractions
were, on certain articles Of irop as follows: Pig
round or square iron. So !; nail or spike rolls %
sheet iron, except taggers, 60 hoop ron i5 band
and TS n ID. Of n
ad vslorems on the same articles imported, in
order, were a. 3D. ST. 80 AZ 81, "a, AS and S. being
every case but one very large reduction of the Of
| duty estimated as I'D vaorem. This dimnution of tue
rate Of duty when specific converted into equivalent
with the actual value of the import, is produced by
rise IN the price of the article and in effect brings The
duty estimated by the imports OF 1916 much nearer the
present rates than when estimated by the imports
si5 Unless then, in where there are other data
entitled to higher consideration. which have been pre-
sented since the estimates made last year, the depart
ment would general rule, in cases where any in.
crease of duty would augment the revenue estimate a
smaller increase Of the present duties necessary to
produce, in such the largest amount of revenue
Judging from comparison OF the duties under the acts
OF ls42 and 1896 by the imports of 1915 than
when the tables prepared last year when the est
mates were made by the imports of 1915 This princi
pie believed to be correct but ii the Senate should be
OF contrary opinion, the tact stated together with
the views OF this department thereon in order that the
shall be fairly and fully communicated.
Guided by these views. and all other such data as
was within the power OF the department to obtain
the adoption OF the resolution tables and are here.
with communicated the result OF this investigation
| ~ q
duties may be increased, as TO augment the
together with the rate OF increase, and the
revenue produced the reby in each II will be per
ceived that the total amount OF augmented revenue
| which can thus be obtained, is $1,4lS.0O0.+
| Table presents list OF the art cles upon which
Judging from the data be fore the department) is
probable the duties might be reduced gment
the revenue, together with the rate of diminuton
each artcls and ths aggregate amount OF augmented
venue which would thus DO produced 1t will be per
ceived that the total amount OF the augmentation OF
srsng from these reductions indicated by ia
Is. tOta az tppt
additional revenue derived both from augmentation and
reduction Of duties, as indicated by tahies and b.
| would be 81 A73 600
In augmeniing, well in reducing the dutios, IL
will be seen that the ad valorem system has retain
duties, being still regarded by this department une
quail add unjust in their operation uniformly producing
higher rate OF duty upon the cheaper than upon the
dner and deaer articles thereby imposing higher rate
Of duty upon those who least able pay it, and
producing less than tho sem of valorems
airly and honestly administered The al valorem is a
better duty Tor revenue than the specific because ope
rates equally in proportion to value upon all classes
gods and assesses an equal rate Of duty upon each be-
1g mus aPporioned us to insure the largest revenues
whereas the specific duty operates a smaller equiva
ient ad valorem upon the fne and high priced goods
which can bear the highest duty for revenue and much
larger equivalent nd valorem upon tho cheap articles
thus diminishing the and of such
cheap articles and in this decreasing the
The ad vaiorem duty upon each article, selected with
view to revenue fixes the duty according to tho ability
of tho consumer and the actual value Of the article;
whereas the specihc duty this rule by sub
being the same nominal but entirely different actual
rate OF duty according TO value. The specific duty
eliminates agans revenue by taxing hghes; tho cheap
articles which can fear it least and taxing lowest the
articles which can bear the highest duty. Hence, in
part 1t is that uuder the tariff OF ls4 the nd valo
rem duties produced larger revenue than the specif,
and this in part accounts also for the fact that the tariff
Of 1876 which is exclusively al valorem produces thus
the tariff Of 1912 which composed partly Of I'D va
lorcm ond partly Of minimum aud spec If duties.
has sssn ns iSss y M ssr TN.
principal OF the free trade articles is tea and coffee upon
which estimated at the of the
sion, duty Of rs per cent ad valorem would produce
net revenue of least 50 800 O0o Upon the remainder
OF the present free list might he possible obtain
revenue OF 100000 This however is extremely doust
full for nearly tho whole OF the free list Except and
coffee end gold and silver CON- and buon) composed
OF articles used in sheahiug cauking repairing YES
ses the duties upon which would compel tho repairs to
be made and the work done the vessels while in TO
reign ports and thus operate nJurousy upon American
labor, with little or advantage to the The
vgating interest is already sufficiently burdened by the
duties imposed by existing laws, without augmeDting
these burdens by increased duties especially when these
duties would produce little or venue.
The revenue necessary for peace is always inadequate
Tor the extraordinary expenditures Of When there.
iore Huch calamity occurs, uniform experience here
and abroad has always demonstrated that 1t becomes me-
cessary to resort TO loans and same time 10 aug.
ment tue revenue IL the expenditures are greatly in.
creased and heavy loans negotiated whilst no nrovis m
is made by augmented revenue to meet the new de.
mands all experience at home and abroad has never fail
ell to demonstrate that credit of the nation for the
time being sfected injuriously and loans negotiated
upon terms less advantageous TO the government II is
believed that the only loan ever effected AT or shove mar
by this government SO far s known 10 this do.
partmen', by any other government authorized and ne
gotiated during period Of war OF any duration and
msgnu TO- me loan OF i've millions in No
vember lasts the loans during the late war de scendng in
sliding scale as the war progressed and the expenses
augmented until the loans last effected in 1914 realized
in specie about sixty cents in the dollar.
In view OF this event and from an apx GUS socitude
70 maintain the credit Of the to ia
loans at above par and thereby preserve its credit as
vol os prevent increased axa' to meet this sac ce
with view also to meet promptly all expenditures
and especially those req red to sustain the honor of the
country and to pay punctually gold or silver or lis
real equivalent our soldiers seamen and who
at the peril OF their lives we're lighting the battles their
country this department felt bound TO recomm md what
In state Of peace It did not favor tax tea and c,f
fee Aetused by these motives it was deemed advisable
that annual addition OF at least two millions and half
Of dollars should be made to the revenue; spd to effect
that object duty OF twenty five per cent ad vaorem was
proposed tea and coffee This plan Of procuring that
amount Of revenue is still deemed the best and
available, but IL the Senate we'll as the House should
DO Of different opinion and additional revenue of