Weekly national intelligencer. [volume] (Washington [D.C.]) 1841-1869, 1853-10-08
MONDAY, OCTOBER 8, 1858.
THE SURPLUS REVENUE.

Having discussed the subject of a reduced duty
on iron we now turn to sugar as the item from
which the largest amount of revenue is derived.
We.are fully convinced that there is an amount
sf raw materials and other foreign merchandise i'm
ported into the United States of the items of
svsizch come into competition with the home indus
try of the country, which could be placed upon the
freelst, or the duty SO far removed as to make up
the roqured reduction in the gross revenues for we
presume no one would be willing to have less sur
plus than six to eight millions over the ordinary
and current expenses Of the Government, to meet
any unforeseen contingencies, or to be employed in
the gradual reduction Of the public debt.
So far, then, as the revenue is concerned, we do
not believe it would be necessary to interfere with the
present duty on sugar, and only refer to it be-
cause in the discussion of the subject, it has been
alluded to as an article on which the duty could be
reduced. The present duty of thirty per cent will
give an average of but fraction above one cent.
per pound and it is with the greatest difficulty
that the sugar interest Of the South can contend
against foreign grown sugar under this very low rate
of duty. Any material reduction of it would there
fore inevitably ruin and break up the cultivation of
the cane in Florida, Louisiana, and Texas, where
capital of S80,000,000 is invested in that culture.
1t would be eminenty unjust thus to ruin such an
extensive interest, particularly it is the only arti
Gle produced at the South for which they require
ask protection. 1t would also be mpolitic and highly
disadvantageous to do so as regards the entire
Union, as it would undoubtedly be the means of
greatly enhancing the cost of the article to all the
consumers of it.
The above-named States produce annually about
300000,000 pounds of sugar, besides which for
eign importations are made to the extent Of about
350,000,000 pounds; and it is the production
of these three States which, coming into the
general supply of the world, has its full effect in
keeping down prices. If, however, that production
was cut off, and the United States called upon the
other sugar growing countries principally the West
Indies, for an additional quantity of 300,000,00
pounds it would probably double the present prices
1t does not require any practical business experience
to be convinced of this inevitable result but if
proof of it is required it be found in the fact
that short crop of sugar at the South, which
reduces the usual production only 100,0OO,0OO
or 150 900 pounds, invariably advances the rate
of sugar from one to and half cents per pound
which, on the entire consumption of 650,O0o,O00
pounds, is equal, at one cent, to s6,500,00O, and
at one and half cents to about Sl0,000,000. If
an entire failure of the Southern crop was to take
place. the advance would in all probability, not be
less than two or three cents, equal to from thir
teen to twenty millions of dollars additional tax
upon the people of the United States, the whole Of
which would be paid to foreign sugar-growers.
Sugar has never been supplied to the consumers
Of the United States at SO low rate at present,
and they obtain it at prices lower than the peo-
pie of any other nation except at the places of its
immediate production. The proverb "lct well
alone " never was more applicable than in the pre-
sent case; for there would be hardly any possibli-
ty Of obtaining the article on more favorable terms
by any Legislative action connected with it, whilst
such intermeddling with the subject would almost
certainly advance the rates.
Our Legislators do not seem to take into view that
the production in the United States Of any great
article of consumption has the effect of keeping
down the price of that article in the general markets
of the world, if not by supplying those markets, at
least by preventing additional demands upon them
for the consumption of this country. No one can
doubt that the operation Of the existing tariff by SO
greatly reducing the production of iron in the
United States, has been one principal cause of the
recent great advance in the price of that article
We have not the data to refer to showing to what
extent that production has been reduced by so large
a portion of the American furnaces going out of
blast within the last three years, but we pre-
sumo it would be a moderate estimate to place it
1t at 100000 tons annually. Does any one, then,
suppose that if within the last three years there had
been 900,O 900 tons more Of iron made in the United
States than has been made, the price Of it would
have been doubled in England or that the Eng
Ish masters could thus have taken advantage of
us and coerced US to the payment of the present high
rates for the hundreds of thousands of tons Of rail
road iron which we are now compelled to purchase
from them! The duty of thirty per cent on the
European prices that existed at the time that the
tariff of 1916 was passed was sufficient protection,
and had it then been made specific duty. at the
same rate per ton, our own furnaces would by this
time have supplied the domestic demand, and at a
less price than we are compelled to pay in con-
sequence Of the cessation to great an extent Of
American competition in the production Of the arti
Gle. Congress, of course in fixing the per centage
of duty, was governed by the then existing cost Of
foreign iron but that rate Of duty instead of re-