The republic. [volume] (Washington [D.C.]) 1849-1853, 1850-08-27
How to make the Consumer pay the duty

How To make the Consumer pay the duty.
1t has been seen that notwithstanding great
changes Of our revenue system, the market price
of articles in which we do not maintain com
petition has remained almost unaltered. Thus.
in 1912, under mere revenue duty. vices sold
at s. - per hundred pounds. and the discount
from me list of prices of hollow-ware was fifty
per cent In 1913 and 1874, the price Of the
one and The discount Of the other We're precise
~ the same. 1t is clear that the producer here
paid the difference, and that the effect Of rais-
ing The duty ,cas 10 hpo,o IL upon him. In
lS4S and lS49 the prices and discounts were
precisely the same as in 1912, although the
duty was One-half higher From this it would
appear that the true mode Of throwing the duty
on the consumer is to lower the rate, and that
the true mode Of putting it upon the producer is
to raise il; and that the chief question 10 be set
tied is, whether the foreign manufacturer shall
have large share Of the market price and the
treasury a small one or the former a smaller
and the latter a larger one. The consumer ap-
pears 10 have his commodity at the same price,
whether two. three, or four -tenths Of it 20 into
the public cofTcrs-and thus it is that by protec-
ton the means for supporting the Government
are made 70 be furnished by foreigners, where
as, under what is called revenue system, they
must be supplied by ourselves.
We may now look 10 the working or the dd
ral0ren system. with a view 10 sec how far IL
tends u throw the maintenance Of government
- C..,,,,,,s ,.r ,,,,,, ,.,,-.oI,., .,,I LOO, 4,
it tends 10 maintain. or 10 destroy, the conpc-
tiiion which is essential TO that perfect freedom
Of trade which il is the object Of Wing policy
TO bring about
We have seen that, owing 10 deficient protec-
ton here England has thus far been enabled 10
maintain her monopoly Of the supply Of vices and
hollow ware Wehave also seen that olu market
prices remain unchanged under various rates Of
duty, the foreign price being adjusted to meet
the greater or less demands of tho treasury.
Let us now suppose an enterprising citizen 70
undertake the manufacture Of those articles,
and see what would be the effect. The
foreign manufacturer would at once reduce his
prices ten per cent. in hopes TO crush the infant
enterprise. and the Government rouid step ~
10 aid him bya corresponding reduction Of duty,
50 that the total fall would be thirteen per cent
n that failed to answer the purpose, there would
be a foreign reduction Of twenty per cent, IA
which the Government would add SIX, making
total Of twenty six. At the next step il
would be thirty, TO which the Government
would add nine, making thirty nine in all; and
at the following one it would be forty, with an ad-
dition by the Government Of twelve, making IN all
fifty two; and the result Of this combined effort %
the foreigner and the Government would probably
be- this time. the accomplishment Of the object in
view-the humiliation of competition, and the
re-establishment Of perfect monopoly; after
which prices would 90 back to the point from
whence they started During all this time the
consumer had gained by the reduction, but he
had lost as a citizen, because Of the rellnquish-
ment by the treasury Of 80 large portion OF its
dues; but with the close of the competition he
would cease TO gain, and would do so precisely