The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1866-02-17
The Committee of Ways and Means and thu
Question of RECIPROCITY.

The Committee of Ways and Means and the
Question OF Reciprocity.
From Me Times
No intelligent man has ventured to deny the
importance OF the interests involved in the ques.
ton of reciprocity. On the contrary, everybody
who has approached the question, whether from
the protectionist or free trade standpoint, has
conceded its magnitude, and the necessity of
according to it careful and candid consideration.
Mr.. Secretary McCulloch, while arraigning the
unequal operation of the expiring treaty, and
insisting that any future arrangement shall be
based upon concurrent legislation as distin-
gulshed from treaty stipulations, urges the ex-
pediency of definite and timely action. In the
same spirit is the subject dealt with by the Com
mission appointed to revise our fiscal system.
The Commissioners point out that during the
continuance OF the treaty, the commerce between
this country and the British provinces has In
creased more than threeiold, until its aggregate
annual value exceeds that between this country
and any foreign State, with the single exception
of Great Britain. OF the treaty as 1t stands, the
Commissioners Offer no defense; they declare,
indeed-as we endeayored some weeks ago to
prove-that its abrogation had become a neces-
slty. But they contend that the reasons in favor
OF some other arrangement, as well OF COM
mercal as OF a fiscal character, are SO obvious
and cogent that it would be most impoltic to
disregard them." The weight which properly
attaches to the statements and suggestions of
the report laid before Congress with MIR. McCul-
loch's almost unqualified Endorsement, justides
the reproduction of SO much of this document
as shall enable the reader to understand the
ground upon which the Commissioners propose
to construct our commercial relations with the
Provinces ......
at is evident that the necessities of the United
States will for many years require the imposition of
high rates of taxation on many articles, and that
with the production OF such articles free, assessed
at low rates Of 0uty in the British Prov nces the
forcement of the excise laws on the b0rders1wu be
a matter of no little difficulty, annoyance and
expense and under all ordinary conditions large
annual loss of the revenue must 1nevilably occur.
The experience OF all the nations of Europe has
shown that to attempt to wholly prevent Smuggling
un0er the announcement Of high rates of duty, is
an utter mpossiblhty If, however, such an
ranRement can be made with the British Provinces
as will insure nearly or quite complete equalization
OF dutes-excise and customs-lt must be appa rent
that sll evasIons of the revenue laws by smugeers
would instantly come TO an end; and that the ats
lainment OF the above result would be of immense
advantage to the United states IN revenue point
Of view:
tenn the products OF American industry subject to
high rates OF excise are IDjuriously brought into
dustry, which subjected to little or no excise,
and then admitted into the United States free OF
duty. Ihat such the tact cannot be denied and is
itself leason why the abrogahon or modification
OF the present Reciprocity treaty has become i'm
perasVe pu1 I'LL u MeTe pGSsiple 10 enect such an
allow the imposition OF duues equivalent TO the
American excise on all articles OF provincial produo
that the aforementioned objection would be entirely
removed. .'-
GAS the whole subject, ,however,is now before Con.
gress tor consideration, the Commission do not
sider II within their province to submit any spe.
cihc recommendations, but would content them
selves with mercy pointing out that under certain
circumstances, conditions OF great advantage to the
United States in revenue point of view, might be
secured"
An equalization of customs duties implies the
formation OF a continental Zollverein, and we
apprehend that 1t were idle to talk of that, so
long as the Provinces retain their present ale
glance. GENERALLY, however, the Provincial dele
gates recently at Washington, in the memoran-
dunn submitted to the House Committee of
Ways and Means, propose 'to give every facility
IN their power to prevent illicit trade" With
this object in view, they ayow a readiness on the
part OF Canada ito adjust her excise duties upon
spirits, beer and tobacco upon the best revenue
standard which may be mutually adopted after
tull consideration of the subjects" and also ''to
treat any other articles in the same way" as
may be mutually determined upon. The dele.
gates go yet further. Acknowledging the force
OF the obstacles to free admission OF products
springiHg out OF the taxation incident to war
| they suggest that the articles now embraced in
the tree list shall hereafter be admitted, subject
| to duties equivalent in amount to the internal
taxation borne by similar articles produced in
this country.
Thus, the proposition submitted by the repre-.
| sentatiyes OF the provinces fulhls two of the
| conditions indicated by the Commissioners
| appointed by our Government to review the
subject OF taxation. 1t provides as tar possible
! Tor the repression OF smuggling on the northern
trentier; and 1t furnishes a most important
source OF revenue, to be collected without any
addition to existing agencies The extent of TINS
| addition 10 the revenue may be computed on
! the basis OF moderate average OF duties upon
our import trade, which annually amounts to
between twenty and thirty millions OF dollars.
And the desirableness OF avalling ourselves of
such assistance as the authorities of Canada may
be enabled to render, may be inferred from the
fact lately stated by Montreal journal, that the
value OF goods smugRlea from that province
into this county in 1866 did not fall short Of ten
| millions Of dollars.
Simply as matter Of revenue, then the
memorandum presented to the Committee of
Ways and Means by the Provisional Delegates
covers all that the Secretary of the Treasury is
understood to expect. and all that the Revenue
| Commissioners were able practically TO suggest
In addition, ii obViates the objection OF our pro-