The daily union. [volume] (Washington [D.C.]) 1845-1857, 1847-02-02
CITY OF WASHINGTON TUESDAY NIGHT FEBRUARY g. 1917

to maintain the credit of the government to negotiate ITS
loans at above par and thereby preserve its credit as
well as prevent increased taxation to meet this sacce
with view also to meet promptly all our expenditures,
and especially those required to sustain the honor oil the
country, and to pay pnncuay IN gold or silver, or ITS
real equivalent our soldiers seanen and volunteers who
the peril of their lives fighting the battles of their
country this department felt bound to recommend, what
state OF peace did not favor, tax tea and coffee
Acnaed by these motives, it was deemed advisable that
annual addition OF at least two millions and half OF
dollars should be made to the and to effect that
object duty of twenty five per cent ad valorem was
proposed on tea and coffee This plan of procuring that
amount of revenue is still deemed the best and most
avallable but if the Senate well the House should
be of different opinion, and additional revenue of
two millions and hall were still deemed all that is ne,
cessary under existing circumstances it might, in all
probability be obtained by the reductions proposed in table
b. well the additions suggested in table A, leaving
however, all sugars at the existing rate of Duty except
loaf and other refined sugar. and reducing the duty upon tea
and coffee from twenty per cent proposed to fifteen
per cent ad valorem Should either of these alternatives be
adopted is respectfully suggested that the credit of the
government would best be maintained by pledgpg the
and additional duties to the payment of the principal and
teres of any loans already authorized by Congress du
ring the present session. and terminate when these
loans shall be paid in full If in the absence of such
additional revenue, during the OF Congress- the
necessary loans cannot be negotiated at par treasury
notes maintained always at par consequences the most
disastrous to the honor and credit OF country might
enSue.
As regards that portion of the resolution which in
qures how much the price of articles will be increased
to the by the augmented duty this department
begs leave most respectfully TO refer to its report to the
Senate Tin answer to SINH lar inquiry communicated on
the Odd of July last BY reference to that report and the
tables and prices current thereto appended the following
principles would seem to be clearly established gen
era rule, subject to modification, in respects by
extraordinary causes, such greatly increased or dlmn
ished production, changes of season, augmentation or
dminuton of demand and supply, and also to increased
or diminished cost of productions: lst That where the
article produced more cheaply in own country than
abroad, the price not affected by the duty I'd. That
where the difference of the cost OF manufacturing
or producing an article here, as compared with
the cost abroad, is less than the duty, the
enhancement OF price, nevertheless cannot exceed
such difference IN the cost of production although the
duty may be much greater 3D. That where the duty ex
ceeds or equal TO the difference in the cost OF poduc
on the enhancement OF price, proved by actual prices
current exhibited IN that report u.s. as general rule, IN
the ratio of 11o to u.s. about two thirds OF the duty If
this Were assumed the standard most nearly approx
mating to the actual results in the present duty of
fifteen per cent tea and coffee would, in series of
years. unaffected by other disturbing enhance the
price here ten per cent and of the twenty per cent
hned and ten and five per cent in other
would enhance the price of the articles respectively
which these additional duties were imposed two-thlrs OF
the augmented rate As, however, some cases, some
OF these articles, this would make the enhancement OF
price greater than the actual difference in the cost of pro-
ducton, there must be correspondent reduction in such
case of the augmented price, that the enhancement of
price shall never in any case where the supply abund
ant exceed the difference in the cost of production
BY reference to the tables appended TO the report OF the
Odd of July last appears in regard to the great of
our imports, that the enhanced price taken in the aggre
gate, is about equal to thirds of the duty. Whatever
theories may have prevailed upon either side this sub
ect this TO be ascertaned fact proved by act
al prices current appended to the report As general
rule, in the referred to, il appears that about two
thirds OF the duty falls burden the consumer
by enhancing prices to that extent The question upon
whom does the fall equivalent the remaining
third Of the duty, whether in in part upon
the foreign producer in part upon the American ex
porter of all our products, upon both, and in what
proportions is most interesting inquiry But the an
swer requiring much time to collect the necessary for
m miro anHn hatur oil
particularly by the Senate is not obtruded upon its
sideration at this time.
1t is certain, however, that when Great Britain leves
or repeats heavy duty great exports, realize
to certain extent, in many cases. correspondent gain
or loss and the principle, applied to the proposed