The republic. [volume] (Washington [D.C.]) 1849-1853, 1849-12-25
No. l65.

III the market at any given time, nevertheless
may often pay different amounts OF duty. Thus
the hazards of trade are unnecessarily increased.
To levy an ad valorem duty foreign valua-
ton equally, at the different ports is believed TO be
impossible. That the standard of value at any two
ports is precisely the same at any given time, is
wholly improbable The facilitieNafforded to frauds
upon the revenue very great, and 1t is apprc-
hended that such frauds have been and habitu-
ally and extensively practised The statements an
nexed, marked COZ, to which invite especial atten-
ton, exhibit in strong light the dangers TO which
this system is necessarily exposed.
As the standard of value at every port must at
last depend upon the average of the invoices that
passed there, every successful attempt at under
valuation renders more easy all that follow IT, The
consequences are, not only that the revenue suffers
that certain sum is in effect annually given by
the public among dishonest importers, as premium
for their dishonesty, but that fair American import
may be gradually driven out of the business,
and their places supplied by unknown and unscru-
pulous foreign Adventures. As long ago az 1901
Mr. Gallatin urged the extension of specific duties
ON the ground now repeated-of the prevention
of differentiation. In his report of that year
he used the following language: Without any
view to increase of revenue, but in order to
guard, far possible against the value of goods
being moderated in the invoices it would be eligi
BILE to lay specific duties on all such articles
paying duties ad valorem as may be susceptible of
that alteration" At that time specific duties
already laid on spirits and wines, sugar, molasses
tea, coffee, salt, pepper, steel, nails and spikes
hemp, coal, cordage, and several other articles.
The Sth section of the act of 30th July, 1886 made
II the duty of the collector, within whose district
merchandise may be imported entered, to cause
the dutiabe value of such imports to be appraised
estimated, and ascertained in accordance with the
provisions of existing laws.
By the I'd section of the act of 10th August, 1876
it is provided, that, sin appraising all goods any
port Of the United States, heretofore subjected to
specific duties, but upon which ad valorem duties
are imposed by the act of the thirteth July last,
l,tft-
for other purposes reference shall be had to values
and invoices of similar goods imported during the
last fiscal year, under such general and uniform
regulations for the prevention of frauds under
valuations shall be prescribed by the Secretary
of the Treasury
1t will be observed that these las-recited provi
sons do not authorize the levying of duties ON the
value OF similar merchandise in any preceding year,
but merely reference to such value and the in
voices, for the purpose of aiding in the ascertain
ment of the value at the time fixed by existing laws
That time was, by circular issued by my prede-
cessor, dated 9th july 1S47, determined to be the
time of the shipment of the goods My predeces-
issued three circulars, calling the attention Of
the officers of the customs to the provisions of the
I'd section of the act of 10th August, 1916; one
dated the 18th and one the 25th November 1916,
and the last the Goth December, lS4S, and there
be no doubt, exhausted all practicable means
for preventing undervaluations and frauds SO far as
they could be checked by Treasury instructions and
regulations. These efforts have been continued by
the out the radical faults oil the
tenn are such that no vigilance, sagacity or regu-
latons, ii is believed, have been, can be found
ehectual for the purpose.
In England it Is believed to have long been set
tied point that specific rated duties (Which are
ad valorem assumed value,) are in every
respect better for and trade than any other
system.
The effect of the existing system on, production
is also striking. See document marked } an
nexed. 1t tends to aggravate the great fluctuations
in price which are injurious TO trade as well as
industry.
When prices abroad are very high the duty is
high also; and when they fall to very low point,
the duty is low in proportion. IL is a sliding scale
of the worst hind. II tho dirty fprms . part of the
price, il renders the extremes of fluctuaton more
remote from each other by per eentage on the
range equal to the rate of the duty. the uctua-
ton abroad be from $50 to $40, the range is of
course $50. A specific duty of SIS would leave
the range still $50 But at am ad valorem of 30
per cent, the highest point would be SOS, and the
account strongly recommend return to the sys-
tenn Of specific duties all articles TO which they
can be conveniently applied.
3. On those articles on which an ad valorem duty
is retained, recommend that it be levied on the
market value in the principal markets of our own
country at the time of arrival. 1t would be easier
TO ascertain at our ports such market value, than
1t Is to ascertain what was that of foreign coun-
try at past time. Every importer should declare
the value OF his goods, and by giving the option
TO the Government 10 take them at the value
thus declared, levy the duty on the ctua value
il is probable that comparatively few cases Of un-
liberalization would occur. In connexion with this
subject, and a measure tending TO the prevention
of fraud, error and want of uniformity Of valuation
at the various ports of our extended coast would
recommend the appointment of appraisers at large
whose duty it shall be to visit, from time to time
the different custom houses, interchange views su.
perintend the mode of appraisas, and suggest such
practical reforms as may be deemed necessary to
just and equal enforcement of the revenue laws
The provisions OF the Constitution, which require
that all duties and imposts shall be uniform throcrh
out the United States, cannot, even with home
valuation be fully and cfectuay enforced in prac-
ticc, without some system of general supervision
more perfect IN this respect than be established
under the existing provision of law which merely
gives TO the Secretary of the Treasury authority 10
direct the appraisers for any collection district 20
attend in any other collection district for the Dur.
pose of aPpraising any goods, wares, and merchan-
disc imported therein.
4. The laying a lower duty upon non enumerated
articles than is imposed upon those which arc emu
merated, leads TO attempts at disguise and 10 con.
trovcrsies and unnecessary litigation which would
be avoided by making the duty on non enumerated
articles higher than on the others,
Different rates Of duty on manufactures Of the
same material are also inconvenicnt, and the same
remark applies to the different rates imposed upon
the manufactures of wool and manufactures of
worsted.
The effect Of laying the same or higher rate Of
duty on the raw material than il imposed on the
manufactured article, too evidently tends 10 iniure
our industry in competition with that of other coun
tries, to require more than passing observation.
WAREHoUS
statement is herewith presented marked (p.A
showing the expenses incurred during the las, rs,
cal year, in the execution of the act OF 9th AuoIs
ls4O, "to establish Warehousing system" from
which IT will be seen they amount to sle4 ga ss
beyond all the receipts from storage, &c. TO this
sum there are TO be added many charges for rents
labor, clerk hire, stationery, &c, that do not an
pear in these accounts, but justly belong to them
This subject is one of great embarrassment 40
the Department. Congress has not made anv n,e
vision Tor these expenses, unless they are erscca
IN the appropriation tor the expenses Of collecting
the revenue IRON eustoH;s, Tos large extent ,hsSS
are incurred Without the receipt Of any revenue
MnNcveri and IN order TO meet the pi DIVISIONS of
TINS act and grant all its facilities 20 commerce in
tne several districts It must continue TO impose an
annuai charge upon the treasury. This act pro-
Vloes THAT IN all cases where the duties unon i'm
ported merchandise are not paid within the period
v,a"J'o oy hW' OF whenever the importer shall
make entry ior wsrehousing the same, the said
menrchandiss shall De taken possession of by the
couectoF, and deposited in the public stores, or in
oIher stores 10 be agreed on bv the colIector anJ