The Evansville daily journal. [volume] (Evansville, Ia. [i.e. Ind.]) 1848-1862, 1850-01-05

10 commerce, more equal, and less exposed to |
frauds, than any other system. Of course
such duty is not laid without reference to |
the average cost Of the commodity. This |
system obviates the difficulties and contro-
versies which attend an appraisement of the |
foreign market value OF each invoice, and
it imposes an equal duty on equal quantities
Of the same commodity Under thead val
orem system, goods Of the same kind and
quality. and between which there cannot
be a difference in value in the samemarket
at any given time, nevertheless may often
pay different amounts of duty. Thus the
hazards Of trade are unnecessarily increased.
To levy an ad valcrem duty on a foreign
equally at the different ports, is be-
lieved to be impossible. The facilities afford
ed to frauds upon the revenue are very great
and it is apprehended that such frauds have
been an are habitually and extensively prac-
tsed. This statements annexed (marked o.,
to which invite especial attention, exhib it
in a strong light the dangers to which this
system is necessarily exposed.
As the standard of value at every port
must at least depend upon the average of the
invoices that are passed there, every success
ful attemptat differentiation rende?s 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 a premi-
um for their dishonesty, but that far Ameri-
can importers may be gradually driven out
of the business, and their places supplied by
unknown and INSCRIPTIONS foreign adven-
turers. AS long ago as 1901. Mr.. Gallatin
urged the extension of specific duties on the
ground, now repeated, of the preve ntion of
differentiation. In his report OF that year,
L ell : T;+I
out any view to an increase of revenue but
in order 70 guard as far as possiblehgainst the
value of goods being moderated in the in
voices, it would be eligible to lay specific du-
ties on all such articles now paying duties
aid valorem as may b. susceptible of that
alteration" At that time specific duties were
already laid on spirits ana wines, sugar mo-
lasses tea, coffee, salt, pepper, steel, nails
and spikes, lemp, coal, cordage, and several
other articles.
The Sth section of the act of 30th of July
1916 made it the duty of the collector within
whose district merchandise may be imported
or entered to cause the suitable value Of such
imports to be appraised. estimated, and as
certained In accordance with the provisions
of existing laws.
By .hc I'd section of the act Of 10Th Au-
all goods at any port Of the United States.
heretofore subjected to specific duties, but up
on which ad vaorem duties are imposed by
the act of the thirtieth July last, entitled an
act reducing the duty on imports, and for 9th
er purposes. reference shall be had TO value
and invoices of similar goods imported during
the last fiscal year, under such general and
uniform regulation for the prevention of
frauds or undervaluations as shall he prescrib
ed by the Secretary of theaTreasury."
1t will be observed that these last recited
provisions do not authorize the levying of du-
ties on the value of similar merchandise in
any preceding year. but merely reference to
such value and the invoices, for the purpose
of aiding IN the ascertainment of the value at
the time fixed by existing laws. That time
was, by circular issued by my predecessor. da-
ted 9th July, 1S47, determined to be the time
of the shipment of the goods. My predeces-
sor 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,
1846-one dated the 18th and one the 18th
November. 1916, and the last the Goth De-
cember. 104S, and, there can be no doubt, ex-
hausted all practicable means for preventing
undervaluatons and frauds, so far as they
could be checked by Treasury instructions
and regulations. These efforts have been
continued by the department; but the radi
cal faults of the system are such that no
vigilance. sagacity.Or regulations, it is believ
ed have been,or can be found efIectual for the
purpose.
In England it is believed to have long been
a settled point that specific or rated duties
(Which are ad valorem on anassumed value)
are in every respect better for revenue and
trade tn an any other system.
The effect OF the eXls ting system on pro
duction is also striking. See documents
(marked l. and o. annexed. 1t tends to ag-
gravate the great fluctuations in price. which
are so injurious to trade as well as indus
try.
When prices abroad are very high, the du-
ty is high also and when they fall to very
low point the duty is low in proportion tits
a sliding scale of the worst kind. If the du
ty forms part of the price, it renders the ex-
tremes OF fuctuation more remote from each
other by per centage on the range equal to
the rate of the duty. If the fluctuations
abroad be from $50 to $40, the range is of
course $50. A specific duty Of $l5 would
leave the range still $50. But at an ad va
loren of30 per cent, the highest point would
be $65, and the owests$36-maKing a range
of $50. On every account strongly recon-
mend a return to the system Of specific duties
on all articles to which they can be convent
emily applied.
3. On those articles on which an ad valo
rem duty is retained, l recommend that 1t be
levied on the market value in the principal
markets of our own country at the time oil
arrival. 1t would be easier to ascertain at