The daily union. [volume] (Washington [D.C.]) 1845-1857, 1848-12-12

twenty five millions of dollars TO our national debt which
must have gone rapidly increasing, requiring in time
OF peace lew and large fo1ns to be negotiated IT, also
the proceeds of the sales of the public lands were taken
from the treasury for distribution among the States the
augmentation OF the debt and accommodating interest would
have been still more rapid and alarming From this dis
astrous condition have been saved by the tariff of
1916, yielding from reduced taxes an average excess
thus far, OF more than seven millions of dollars
me average receipts from the tariff of 1912 Had
that act remained in force during the war, from d.
Unfinished revenue the loans must have been greatly aug
mened ~ amount, with small and declining income, and
instead oil premiums realized large discounts must have
been allowed. That the revenue would have declined
resuts from the position of the proeconsts, that, by
continuing the system few years, they would sup
ply the whole home market with the protected domestic
articles, when the foreign importation must cease, and
the revenue also. The result, then of protection
country, so far regards protected products With the
excuson or dimlnnllon of imports the exports must
cease or he reduced, for foreign nations could not buy
them
We exported last year (per table F. $780, 2o3 7Og in
value of domestic products and fabrics, exclusive of
specie and under low duties this must go augmenng
But how can foreign countries pay for these expors
will take no imports or very iew in return Clearly our
exports must in time cease, fall TO very small sum
the foreign markets must be destroyed and The price of
our staple exports OF cotton, OF RICE OF tobacco OF bread
stuffs, and provsions must decline for take
the return in specie from abroad without exhausting
those markets IN single year; nor can we consume at
home this augmentng surplus The British empire (per
table e. took from (no during the year of famine
it is called of 1877, but in Sis domestic exports
COtton DfeadStulIS
and other domestic articles, exclusive OF specie, to the
value of $7s,7ilIl6, and Great Britain and Ireland of
the value of ,22226s and this the trade of best
foreign customer which potectoniss propose to sacrifice
by high or prohbtory duties If the tariff of 1874 grad.
ually excluded it must, nearly all British fabrics
could they take $7s,7i,4l6 in value OF our exports,
whilst we would take from them scarcely anything but
specie in exchange? Such trade would exhaust Great
Britain OF her surplus specie in single year. and leave
her nothing with which to purchase our expots and
IN regard to all other nations. Thus would go our for
commerce,
our carrying trade, and vessels and steamships
would repr.ln at the wharves without freight
IL the importation OF protected articles would rapidly
decrease when the foreign high in price, and speci-
nc duties operated as protection under the tariff OF sla
from a to 243 per cent (per table II, compiled from
treasury returns in lsli) what mus, have been the
tecne of importation and revenue when the foreign ar
cle fell as It has in many cases. fifty per cent, bringing
up the specific duty from Il to So and from 543 $50
per cent This fact illustrates another objection TO the
specific duty namely that although it processes to be
stationary, is in fact constantly augmenng from re-
duced prices OF iorega articles Experience prove. that
from improved machinery inventions, and reduced
cost OF pFoducpon the foreign articles constantly
diminishing in price, whilst the specific duty remaining
unchanged, il is continually increasing in ratio as an
equivalent, ad vaorem, and the protection augnenring
every year. Thus, the price of sugar Sin cents
pound, and the duty three cents, would be equal TO
nifty per cent ad vaorcm; but if the price of sugar fell
three cents, the duty would have to one hundred
per cent ad vaorem thus doubling the protection and
nualiy augmen,ng with decreasing foreign prices, until
the duty becomes prohbtory and the such
tces disappears whereas the ad valorem bears under all
changes price the same exact ralo to the cost of the
foreign fabric, and therefore is the most just and equal
as also necessarily enslring larger revenue
Annexed will be found the table marked H. of seventy
four principal protected articles, prepared at the rreasu
ry Department IN 1874, from actual returns, and attach
ed together with Others to the very able report of Mr.
! Mckay, from the Committee of Ways and Means, of
March nth, 1874, embracing COAL iron glas SALT sugar
cotton goods, &C., Sc, showing the actual specific and
minimum duties under the riff of 1912, those articles,
and the equivalent al va.eem ranging from Al to 243
per cent. Now if these foreign articles have fallen in
price since that date 81 per CENT the equivalent ad vao
rem would of course range from 81 per cent TO 4s6
per cent, and would increasing as the foreign
tce diminished in price, soon becoming absolutely pro-
hibtoy and destroying all In this aspect OF the
case, The objections to the specific duties permanent
SYSTEM with view TO revenue are insuperabe whilst
their unjust operation upon labor, in imposing SO much
higher duties equivalent al valorem the cheaper
than the more costly qualities OF goods, cannot be sue
ces5fully defended.
Our manufacturers do not desire the restoration of the
tariff OF 1919 They know from It's excessive and pro-
hbitory duties, 1t will annihiate imports and rev.
enue, and produce reaction fatal to the protective poll
cy They know, also that from its immense bounties
ranging at present prices IRON 90 to 300 per cent, VIII
stimulate domestic production in few years to such
extent As finally TO prove most disastrous 10 our manu-
features. That which manufacturers desire, is
what they regard moderate duties, made specific IN
certain But these specific duties will, as has been
shown be found constantly augmentng in ratio under
the operation of the general principle by which the
foreign article is continually tending to diminished
price; whereas the ad yalorem always bearing the same
proportion 10 the value of the import is therefore always
Tie Just equal ylcuiis lhGcSt
The augmented revenue under the tariff OF 1916 has
proved that ad vaorem duties can be fairly assessed and
collected 1t is shown also by the returns, that THIS aug
mented revenue is derived from comparatively small
amount OF foreign imports consumer IN the United Sates
that amount as shown by the table before referred to-
marked of all those foreign imports thus consumed IN
the year ending 3Oth June, 1913, exclusive OF SPECIE
being bat $l27 400 ,O2, upon which realized a net
revenue of S3l 7j7,O7O o. 1t appears also from the ia
be- that far from this tariff having filled the country
with foreign goods beyond its capacity Tor consumption
the domestic export last year, exclusive OF specie, acu
ally exceeded by the (per same taoe) OF $GU3o9I
the foreign imports, exclusive OF SPECIE consumed the
same year in the United States including all articles but
specie, both free and dutahe thus showing balance
of foreign trade favor, without taking INTO view
the immense profit realized the foreign market on our
exports generally estimated at about fifteen per cent, or
the profits OF freight and navigation. ms was not
year of famine abroad, blu, of abundant crops Europe
attended also with revusons there highly untavorable
10 commerce, creating ln1unerabe foreign bank
rupcles by which vast sums lost to American cred
tos, required be replaced by the export of our specie
which was greatly augmented by the dscred in our
mar ke of all bills drawn foreign shipments pro
ducng by this artificial rise OF exchange unnatural
demand for specie. and consequent expectation. But
all this specie must back TO country,
cept so far as it is lost by foreign bankruptcy
1t appears that for the year ending June 3d. sisnot
of famine, blu! of abundant crops IN Europe-our eX-
ports of breadsuf and provisions per table y amounted
10 the sum of 1877, ,5l being largely more than
double the average annual export during The tant OF
1872 The result this year demonstrates that even with
out famine and in seasons OF good crops abroad, and
even when their means exhausted the preceding
wear bv an unprecedented loss of specie, producing
duties enabling them to exchange their fabrics for our
Of could and did