The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-12-22

principle is recognized Of so collecting the duty
that it shall be the least possible labor and ex-
pense TO the merchant engaged in foreign COM
merce.
This we believe to be the first and most i'm
portant point in the question Of specific or ad "a
loren duties; and, us we have already said, we
are convinced that nine-tenths of our merchants
who are practically acquainted with the subject
will give their voice against our present system.
The second point Of Importance in the ques-
ton is the effect of each system upon the reve-
nue. First among the objects in raising revenue
by tariff upon foreign goods imported is that
the yield shall be as stable as possible under the
ever varying character of commerce. In the ad
tulorm system this object is entirely lost sight
Of Based upon the market value of the mer-
chandise to be taxed, large revenue is obtained
during period of expansion Of prices, and a
diminished one when prices contract. AS expand
ing prices arc an indication Of great commercial
movement, it is evident that the revenue is still
further increased while they prevail by the
greater movement Of goods between the pro-
ducing and consuming markets When, on the
contrary, prices begin to contract, the CONNER
cial movement becomes languid, and the revenue
suffers double depression under the ad palorem
system. This result was shown in an eminent
degree in the effect produced upon our revenues
by the commercial revulsion of last year. During
the panic prices gave way, and the revenue was
suddenly cut down TO such an extent that the
entire finances of the government were thrown
into confusion. Mr.. Cobb, instead of hay
ing full treasury, was obliged to present to
the world the anomaly of great and powerful
government having to come into the market as
borrower, in order to meet its expenses in
time of profound peace.
Prices have not wholly recovered from the
contraction caused by the panic, and in gene
raj way may be estimated at twenty-five per cent
less than they we're in the financial year ending
30th of June, 1857. In quantity we shall proba-
bly, import quite as much during the present
year as we did in that Of high prices, but the
revenue will be cut down one-quarter through
our system of ad palorem duties Thus, while the
people will consume just as much sugar, silks,
and foreign kickshaws generally, the government
is reduced in its income by clinging to an
erroneous system of collection, and has to set
about the work of laying new taxes, in order to
meet its obligations. In 1857 the country was
agitated in contrary sense, because under the
great expansion of prices the ad palorem system
gave us too much revenue. At that time Con-
grese simply reduced the per centage of duties
to be paid; but the reduction Of the revenue
was far greater than was anticipated or desired,
because prices fell at the same time Ifs
remedy is now sought by simply raising
the rate and clinging to our present vicious sys-
tenn, we shall only have repetition of our past
experience Regular periods of expansion and
contraction mark the great commercial develope-
ment that characterizes the present era in the
worlds history, and are, in fact, the normal law
Of its progress. BY their natural operation we
shall be under the constantly recurring neces-
sity of diminishing or increasing the rates of our
tariff as long as we continue the ad palorem
system. Nothing is more preudcial to the trade
Of any country, or more annoying to its
merchants, than constant recurrence of change
of tariff 1t interferes with the calculations of
commerce, and clothes every adventure of any
distant realization with doubt
Congress should at once reject the present
absurdty Of our revenue system. and give both
to taxation and income greater stability than
they now possess, by return to the plan Of
specific duties. II cannot confer greater boon
either upon commerce or the government.