The daily union. [volume] (Washington [D.C.]) 1845-1857, 1847-02-02

nation IN relation 10 an diaty,utton Of dl
ties nth Uietc TO the augmentation Of the rerenue
Treasury DEPARTMENT, Feb. /, 1917
SIN On the 18th of January 1917, the following reso
rton was adopted by the Senate OF the United States
Bepd That the Secretary of the Treasury be directed
70 report the hat articles embraced in the tariff
oct Of 1916 duties be increased beyond the existing
e so ms 10 augment The and to what e1tent the
sd duties can be increased, and what additional revenue
would accrue iherefrom. And furthermore that he be
INFESTED 10 report what articles the free list may be taxed
and what OF duty should be laid thereon and that
m also report what articles, if any, the of duty may
m reduced below those imposed by the aforesaid
10 increase the revenue, the rate OF such reduction and the
amount to which the would probably be increased
thereby and whether, in his opinion, any tax which may
be laid upon such articles viii increase the price OF The
10 the consumer to any amoun' ana any 10 Wha
amount"
In order to reply to this resolution, it became necessary
10 review every item embraced in the tariff OF 1916, to re-
examine the imports of each article, with the rate OF duty
and revenue accruing thereon for the fiscal year ending
the Both of june 1S45; and also to have prepared and
consider new tables of similar character for the fiscal
year ending the 3oh OF June, 1916 and to compare the
results,
II will be perceived that this has been work of great
labor, requiring much time and investigation, and the
answer has been prepared with little delay practical
BILE On comparing the tables for 1916 with those
of 1915, it will be found that in the great majority OF
cases, where the duties specific under the tariff OF
during the last fiscal year, than that which preceded ;
and hence calculations based and estimates made upon
the imports Of 1915, must be corrected by those OF the
year succeeding being in date and furnishing
upon the revenue OF increase reduction OF the pres
en duties. As the equivalent ad vaorems under the i'm
ports of 1916, generally approximate more nearly the
present rates OF duty than the equivalent ad vaorems OF
ISIS, smaller augmentation OF the present duties will
be required TO augment the in where any
duty under the last tariff produced larger revenue on
the import of any article than the present duties on the
To illustrate this position, the equivalent ad va
lorems on the imports of 1915, emitting fractions,
were, on certain articles OF iron, as follows: Pig
ion ls bar iron, manufactured by rolling, IS;
round square iron, So nail or spike rods, IS;
sheet iron, except aggers, co. hoop iron, us; band or
scroll ron 10; wool screws &c spikes cut or wrought,
1861 and the imports OF 1916 the equivalent ad vao-
the articles imported, IN the same order,
A. 3d. 81 49, Al, ST. Sd 49, and IS, being In every
but one very large reduction OF the rate OF duty
estimated ad yaorem This dimnution OF the rate OF
duty when specific, converted into equivalent ad valo
rem by comparing the actual duties realized with the
ma value OF the import is produced BY rise in the price
the imports of 1916 much the present rates than
when estimated by the imports OF 1S45 Unless, them In
where there other data entitled to higher con-
sderaon, which have been presented since the estimates
made last year, the department would general rule,
in where any increase of duty would augment the
revenue estimate smaller increase of the present duties
necessary to produce, in such case, the largest
amount Of revenue, Judging from comparison OF the
duties under the acts OF 1912 and 1916, estimated by the
imports OF 1861 than when the tables prepared
last year, when the estimates made by the imports
of sl5 This principle is believed to be correct, but if
the Senate should be OF contrary opinion, the fact is
stated together with the views OF this department there
innate, made shall be fairly and fully commune
Gated.
Guided by these views, and by all other such data it
within the power OF the department TO obtain since
the adoption OF the resolution, tables and here
with communicated as the result OF this investigation.
Table presents list of the articles upon which the
duties may be increased, as to augment the revenue
together with the rate OF increase and the augmented rev.
enue produced thereby in each Ii will be perceived
that the total amount of augmented revenue which can
thus be obtained, is III ,ils00o.
Judging from the data before the Department. it is
probable the duties might be reduced as to augment
article and the aggregate amount OF augmented revenue
which would thus be produced twill be perceived thathe
total amount OF the augmentation OF revenue arising from
these reductions indicated by table B. would only be
$4,000 and the total aggregate of additional revenue de-
rived both from augmentation and reduction of duties,
indicated by tables and B, would be $l,473,ooo
In augmenting well in reducing the duties, it will
be seen that the ad vaorem system has been retained
throughout-the principle of minimums, or of specific
duties, being still regarded by this department une
quail and unjust in their operation, uniformly producing
higher rate of duty upon the cheaper than upon the
finer and dearer articles thereby imposing higher rate
OF duty upon those who least able to pay it, and
producing less than the system OF ad vaoems
fairly and honestly administered. The ad valorem is
better duty for revenue than the specific, because OPP
crates equally IN proportion to value upon all classes OF
goods and equal rate of duty upon EACH be-
ing thus apportoned to insure the largest
whereas the specific duty operates smaller equva
lent ad vaorem upon the fine and highpriced goods,
can nlgDeSt duty revenue, ana
larger equivalent ad valorem upon the cheap articles
thus diminishing the consumption and importation OF such
cheap ARTICLES and IN this decreasing the revenue
Inc aivalorem duty upon each article, selected with
view TO revenue, fixes the duty according to the ability OF
the consumer, and the actual value of the article
whereas the specific duty reverses this rule, by sub
lechng the highest priced articles to the lowest
duty being the nominal, but entirely different ac
tnal rate OF duty according to value The SPECIFIC duty
DISCREPANCIES against rcrenue bytaying highest the cheap
articles which can bear least, and taxing lowest the
tcles which bear the highest duty. Hence, in part
Is that even under the tariff OF 1912, the ad vaorem
duties produced larger than the specific and
this in part, also for the fact that the tariff of
larger revenue even at lower rates OF duty, than the
tariff of 1872 which composed partly Of ad valorem
and partly OF minimum and specific duties.
As regards the articles exempt from duty, their num-
Der has been greatly reduced by the tariff of 1916 The
principal OF the free articles tea and coffee; upon which,
as was estimated at the of the session.
duty OF . per cent advaorem would produce net rev.
enue of at least 81 100000 Upon the remainder of the
revenue of 100000. This, however, is extreme
" doubtful, Tor nearly the whole of the free
list, Except tea and coffee and gold and silver an
bulon is composed of articles nsed in sheahing, caulk
ing, or repairing vessels, the duties upon which
would compel the repairs to be made, and the work
done the vessels while in foreign ports and thus ope-
rate inuriously upon American labor with little no
advantage TO the The navigating interest al
ready sufficiently budened by the duties imposed by exist
ing laws without agmentng these burdens by increased
duties, especially when these duties would produce little
OF revenue
The revenue necessary for peace always inadequate
Tor the extraordinary expenditures OF war When there
fore, such calamity occurs, uniform experience here and
abroad has always demonstrated that II becomes necessa
ny TO resorto loans, and at the time to augment
the revenue If the expenditures are greatly increased,
and heavy loans negotiated whilst no provision is made
by augmented revenue meet the demands all eX
OF hon dahr hnlu demon