The daily exchange. [volume] (Baltimore, Md.) 1858-1861, 1858-12-07

Cheese. NEUTRALITY-SUSPICIOUS.. 26
class loses heavily sustains greater priva
tions in period Of general revulson than the agricu
turist and it is asking too much Of them submit to ad
dtona burdens in order to exempt favored portion of
their fellow citizens from the calamity The above
list shows how little the decline in prices can he ascribed
change in the tariff made in 1857. 1t occurred in
differently in articles imported in the trivial quan
titles and in those largely imported in articles the
duty hich unchanged and in those which it
was diminished proving that the outside
of all tariff regulations and beyond the control of egsa
ton.
1857 did niure the American manufacturer yet that
such has been theresut of the tariff of 1896 which
based the principles the answer is that does
not appear that tn" manufacturing interest has suffered
from that tarG While some particular branches, prema-
turey improvdently entered into, may have failed,
vet the fact well known that all the great manufactur
ing interests have largely increased since 1876
pdly than the population and general production of the
country
An examination of the statistics published under the
authority of various States among which may be spec
fed Massachusetts New York and Ohio, will abundany
prove the proposition One mode of ascertaning the
comparative prosperity Of the several industrial interests
of the country, at different times is by comparing the
the of products exported to foreign countries,
being obvious that those who compete in the
market with the like products oother countries,
tanly maintain themselves at home.
Applying this test to the facts we find the following
results:
The export of American manufactures for the
year 1917 was ...................... so 476,3l5
Increase es SO s95 S5 equal to 100 percent
In the same years the exports of cotton were,
lSl7.................' .........'.....'. 534l5S4s
In lSjS... 13l ,3S6,G61
Increase, s77 ,97O,S Sl3,equal to l46 per cent.
Tobacco, ~ OSo
Increase SO 767 6Sl equal to lS5 per cent
The exports of agricultural production, except cotton
and tobacco during the same period, show actual de
crease which, however, is not fair comparison 1877
year Of famine in Europe but the increase of those
exports by fair comparison of the two periods is about
from IS to 100 per cent.
of the exports manufactures those of iron and the
of iron found to be- 1S47 81 167 4s4
1855 s4,729s74 increase, $S562S9O equal to 3o5 per
lam aware that large exports of an article may some
times result from diversity instead prosperity as when
the holder unable to make sales at home ships goods
abroad a last resort. But it is taxing creduy to
he toll that exports of large class articles will go
from year year. while the manufacturers unable
compete at home with the importer, though protected by
nineteen per cent Andif it be said
that the year 1858 in which the of things
ferred to especially existed comparison of the exports
of the preceding year conceded to be remarkable
prosperity, will show the result.
1t will dice that this prosperity is owing
the influx ofgold from California That has been a
of general rise in prices and of increased activity in all
industrial departments but no reason perceived why
the agriculture of the country should not be much
stimulated by that cause the manufactures Yet, while
both have increased the manufactures have increased a
ter whereas they had been seriously injured by the
tariff of 1915 they would at most have improved more
slowly than other interests not affected
proceed to consider the question of the best mode
revising the present tariff, with view to raising suf
cent meet the demands of the public service 1t
has been proposed to repeal the act or 1857 and restore
the act of 1886 To this suggestion there serious OBJ
jections which, to my mind, insuperdble. am well
increase OF the taxes to the extent of revivng
the tariff of 1876 The duties of forty and hundred
per imposed by that in the present condition
of trade and commerce, wholly ndefensble The public
mind of the country will scarcely be brought again
quesce in any higher schedule than thirty cent the
maximum of the present law 1t would certainly require
urgent necessity than exists at this time
justify such measure.
1t has also been proposed to adopt the principle Of home
valuation, with view first of increasing the of u
ty and secondly, of guarding against under valuation
and other frauds which are alleged to exist under
sent system.
As measure for increasing the revenue this PROPOSE
ton possesses merit 1t seeks do indirectly what
crease the taxes, it is better to do in bold manly
wa At nresent the duty is imposed upon the martc+
value of the merchandise in the principal markets of the
country from which the importion is made, including all
costs and charges of shipment.
To substitute for this rule the principle ofhome valuation
would be to add to such value of the merchandise the in
cost of transportation duty levied and profits Of
the importer.
1t ought to a sufficient reply proposition that
elements entering into the value
legitimate subjects of taxation. Other and
rOus objections will be considered in another cOnneXion
The in favor of home valuation which been
pressed with the most earnetness is that will protect
the from fraud by under valuation. The advo
of the change aege that under present system
the government is defrauded by means of its
legitimate duties large portion of the imports In
this charge comparison has instituted
the value of exports and imports for the last
three showing that the imports less by large
amount, than the exports.
This difference is charged to under valuation. The
remedy proposed either home valuation or specific du
ties 1t is that the exports for the last few years
have exceeded the imports, but the inference which has
been drawn from it is not necessarily correct Other
causes have contributed bring about this result 1t
should he borne in mind that exports valued
port expectation When these exports reach faI
ling market abroad the return cargo will exhibit in the
diminished value of the importation the loss sustained
by the persons whose the exports have
shipped. This often constitutes an important element in
accounting for that excess OF exports which has been at
tribued TO fraud The payment by citizens of their
debts in Europe which for two years past has been large
ly DONE the transactions of bankers and brokers in
change, and smuggling. species of fraud common to
every system all effect the comparative amounts of
ports and imports.
If that the difference in favor of exports
imports chargeable to the ad vaorem system
and the present mode of valuation then the should
be found to exist not only during the last few years
during the whole period of the existence of the present
system. examination of exports and imports las
will be by reference Table A. of years
will show that such not the The tariff of 1916
in operaon over ten years During that period the whole
amount exports s252 6S1 527 and imports
during period amounted to 81 566 $50 32S The
advocates of home valuation have fallen into the by
conning their comparison to limited number of
The general result which have stated indicates that if
frauds have been pracsed upon the revenue 1T is not
owing to present ad vaorem system. This will ap
pear from comparison of the exports and imports during
the operation of the tariff act of 1872 That act the dis
tnguishng features of which were specific duties and
minimum valuations, was in operation nearly tour years
during that time exports amounted to S436Sl 64S
and our imports to s412 If the argument drawn
rom te excess oi exports over imports be correct tins
statement would indicate that greater frauds have been
committed under tariff Of specific duties than under the
I'D vaorem act of 1916.
r. however, be true that frauds committed under
our present system to the charged will change
nome valuation prevent the evil? To furnish satisfac
tory answer to this inquiry it will be proper
the manner Of ascerainng the dutabe value of imports
under existing laws and what would be required to be
done under the proposed change At present the appra
is called upon to ascertain the value of the article in
the principal markets of the country which it is
brought. The data upon which he is up his udg
ment 1st. The prices current which every
cial community supplies I'd The information de-
rived from the communications of consus and other
mercal agents. 3d. The invoice of the importer made
under oath and also made in view of heavy penalties in
Cured fraud and under valuation. 4h. comparison
of the invoices of the various importers engaged in the
same business and not unfrequently of the date.
The experience derived from daily examinations of
i.