The republic. [volume] (Washington [D.C.]) 1849-1853, 1850-10-10
T H E REL u BLIC.
WASHIN GTON:
THURSDAY MORNING, OCTOBER 10, 1850.
The Remedy for Frauds on the Revenue.

readers 10 the very important lelter OF the cec-
rotary of the Treasury, which we published
some days since, written by him in reply to
call of the Senate for information as 10 what had
been the measures adopted for enforcing the
revenue law of 1876, and what had been their
results.
The exhibit therein made is calculated, as
we think. somewhat TO shock our Democratic
friends, who have 80 strenuously insisted upon
the beautiful working of the ad valorem sys-
TEN, Mr.. Secretary WALKER being shown to
have been compelled to issue instruction after
instruction, with view to the repression of
frauds; and Democratic, free-trade Judge of
the Supreme Court, being shown to have set
aside those instructions SO completely that there
is almost literally nothing left of them. The
essential part Of them is, that the price, at the
time of shipment must be taken; but the Judge,
on the contrary, decides that the foreign man
ufact,Ter may select the time of manufacture,
if that be more To his advantage, and thus pay
duty upon fire pounds, when the american
purchaser, whose goods come by the same ship,
may be compelled to pay duty upon ten pounds,
if the price have CHANGED TO rise 10 that extent
of sale. Under these circumstances we think
it would be fair TO assume that, il the price of
iron in England should rise, every ton that will
be shipped for years to come will be certified,
on the oaths Of most honorable men, to have
been manufactured in the year 1880 when the
price was under five pounds.
Not less, as we think, is the exhibit fur
nished by the Secretary calculated to shock our
national pride, or rather the pride of such por-
tions of the nation as have not yet been led by
party feelings to look with complacency upon
the perpetual boarding OF the Government by
agents of foreign manufacturers. 1t is shown
by the Secretary that the Government is de-
prlved of all power to execute the law-hat it
cannot collect the revenue established by law
that the part of the Constitution which provides
for uniformity of imposts, and every regulation
of the treasury having that for its object, are
set at defiance by foreigners-and that in so do
ing, they are sustained by Judge of the Su-
preme Court, in his Interpretation of the law.
In the commencement of the system of uni
versal ad ralorem duties, the frauds were mod
crate, but from day to day they have increased,
and they are perpetually varying in form, with
view TO avoid the instructions issued by the
Treasury. The production of invoices is now
found TO be inconvenent, because of penalties
that attach 10 under-valuations, and invoices
are therefore being rapidly discarded
That frauds must continue to increase in
number and amount must be obvious TO all who
witness the perpetual additions to our stock of
foreign agents, each in succession desiring to
supersede his predecessor by aid of lower prices,
requiring larger frauds upon the revenue. The
loss to the treasury in the present year is cal
culated at no less than eight millions Of dollars
or about one-fifth of the amount collected; and
it appears TO US far more likely to be above than
below the truth. Even were it but FIVE mil
lions, II is a tax to that extent upon the honest
portion Of the community, for the benefit of the
dishonest portion for every deficiency in the
public revenue must be made up by contribu-
lions paid by the farmers and planters of the
nation. II is tax upon our own citizens for the
benefit Of foreign agents, who swear unhcstat-
ngly to the truth Of false invoices, and thus com
pei the honest merchant TO abandon the bust
ness upon which he has depended for the support
Union equal To the cost of constructing several
hundred miles of railroad annually, and it is i'm
posed by means of frauds, having for one of
their objects the closing ofthe mills and furnaces of
the nation, thus depriving Of employment tens Of
thousands of those who have been, and would
continue to be, the best customers of our farm
ers and planters, and the tax increases from
year to year
Must the Government continue to find itself
set al defiance by the European population that
now swarms in our cities, and lives in afilu-
ence upon the produce of a constant succession
of frauds and peruries? Must we continue a
system that shuts out the honest immigrant,
while offering bounties on the importation Of
mercantile sharpersl Must our whole Euro
pean commerce be transferred from our own
merchants to these ioreigners2
We regret to say thai such must necessarily
be the case until some remedial Legislation shall
be adopted by Congress; for we apprehend that
the long practical Interpretation which has
been put upon the law Of $40, by Mr.. WALKER
and Mr.. MEREDITH, must continue TO govern
It's construction. There is little doubt that the
act Of 1916 contempates the possible occur
renee Of a state Of things such now exists;
and that il was intended 10 enable the Secretary
TO fall back upon the prices Of 1856 in the
assessment Of duties, and thus terminate the
Gd valorem system.
The provision of the act TO which we rcf,r
will be found in the second section Of the Civil
and Diplomatic Appropriation bill, Of the 10Th
August, 1916, which requires that. Gin APP
praising all goods at any port Of the United
States heretofore subjected TO specific duties.
but on which ad rGIorem duties are imposed
by the act Of goth July, 1916, entitled an act
reducing the duty on imports and for other
purposes, reference shall be had to values and
invoices Of similar goods imported during the
last fiscal year, under such general and uni
form regulations for the prevention of fraud,
or differentiation, as shall be prescribed by
the Secretary Of the Treasury"
Tho obioot al this la.r a. cla.r 4, ,,tvos Tho