New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1869-12-14
CUSTOM-HOUSE REFORM.

NITTEE OF WAYS AND MEANS OF THE HOUSE |
OF REPRESENTATIVES,.
The following suggestions in regard to certain pro-
posed radical changes in the Customs Revenue laws
are respectfully presented for consideration lheSo
proposed changes may DO briefly stated as;
First: The abolition of the present Narcnouslng
system except so far as may relate 10 goods I'D bona
for export and due regard being paid to the irAdl
rights Of owners of goods now IN bona; Or shnl'"
such radical change be now deemed unpiacucaoie'
alternatyely the modification OF the present laws
looking TO their future abolition
Second: The abolition of all laws allowing draw
hack ppon the expectation of merchandise, whether
the same be wholly or III part OF foreign production
tile Uaretousing System.
This system is based upon the several acts Of Con-
gress passed August g. 1916: March -, 1884, July "A.
1852 and March A. 1865. A brief synopsis OF these
laws may be presented as follows All merchandise
imported into the United States may, in dea0lt ot
the payment Of dues on arrival be warchouscd III
such bonded warehouses rs the importer may select,
there to remain in the custody OF the United STATES
until Withdrawn for consumption Transportation or
cXporta.ioa, Tor period not exceeding three years
from the date of original importation. Au auGltiOGdl
duty of ZEN per cent. tEe duties - imposed Nh'h
imported merchandise j. Withdrawn for consumption
after one year and within three yeas from "a't "I
importation. Merchandise entered Tor NiI'huGolhg
at port of original entry may ho WNhdid"H WHOM
payment of duties. ana he transported ~ boac 20 any
collection district IN the United states, ana thtIe
NaIthoUsed. subject 10 the SAME ie2GldohS as gov
srn the vlrehoIsiug at port of original entry. The
acts of 1853 and 1865 also provide for IN" rniSoh
or refmung of mites accrUDg 0r PAID ln case ~ tie
total or paria destruction OF merchandise VINE ~
the custody of the officers of the customs, or ~ any
puhlic OF private war house HbCCr bond OE IRE or
other casualty The act of July H. 1852, Also con-
f-ried the right of draw back on dutY-pad merchant
disc remaining in Warehouse ii exported at any time
within three veaIS from the date of expectation.
such Is the present system, as cohS'iucVeu ny tue
legislation OF twenty years Among the original
purposes of its projectors were. iat the expansion Cd
our merchant marine interests by making our ports
ontrepOtS tOr the COmueIcai products OF tho NoI''
whence they could Doe distributed 10 all quarters;
and second, the relief OF merchants Win hulttd
capital Nv enabling them To withhold goods. and the
consequent payment ui duties, Unfl an actual or
favorable market was obtained ANY OF The adNani-
ages cOmprehendcd NOW III the first proposition
would he Retained ~ a system OF Waiehouslhs tA-
clusiyey for goods transit foreign ports or IN
store for expectation The second proposition con-
templates simply loan 10 the merchant 0l the
amount OF the dHiles without interest loI one year;
and at the of ten per cent Tor any further pcOi
not exceeding two years. Granting that generally
The security is ample il Is grave YuesuOh NhtICI
ID is good policy in Government winch aims NJ SIM
picity in its administration ANA eQuahiy ia tie
operation al Its laws 10 assume the IOSOh OF banker
or creditor To "a very limited class of It's citizens,
without any great recognized public heneuL H. may
liz. claimed that this credit enables the importer 10
sell his wares Tor much less as would be lepIe-
scented By the interest ON the duties, # pad at date
of importation, and tnaJ tbs is gained by Tue con-
sumner. But practically this benefit IS lot realized,
and the importer Is really enabled 10 Nl'hhOid
his goods until maximum price can be OBJ
partial insurance against competition III a tdliinS
market, and 50 far operates against the consumer
Many favor OF this system cOgent . years
ago have been nuliGed by the increasing agencies OF
steam avgatlOn aud marine biography. NO longer
do uncertain intercourse and delayed communication
render necessary the accumulation OF large STOCKS on
goods since the ocean cable ana steamship Drlns the
markets OF the world into close and certain contact.
Indeed If all the original arguments IN favor OF
warchOusug. whether touching the interests OF the
consumer OF importer, We're now COated It would
be found that great majority have been annulied
by the changed relations vi the present anu the ul-
paraeled material advance Wlthlh tne Iast quarter
OF century. Commercial transactions are con-
stantly becoming more slmplhed and mature III
much shorter time, whence extended credits are no
longer necessary and their retention IN our revenue
laws seems anomalous III view otlnercantlle progress
But any argument IN favor OF the system based
upon its supposed benefit To the American importer
aud our domestic commercial interests IS sufficiently
coutToyered by the practical results. IL has brought
our own merchants into most Instantaneous COM
petition at their own doors with the foreign trader
Year after year the agencies OF alien commercial and
manufacturing establishments nave increased mt tllS
port. The Government furnishes these foreign
houses with convenient warehouses Tor their con-
sguments, which are Withheld or forced upon the
market 10 the injury OF the actual importer Ihese
igumentS are lnNOiced AZ low possible 10 re-
duce the duty, and, they not based upon an ac-
tudl sale of regular npOrtatlOns, the means
of correct applalSement are rendered more an
hcult with consequent loss to the revenue. The CIT
iZen merchant who pays ms full share OF national,
state and municipal taxation. is placed at sucn GlSad-
vantage with tine foreign trader VINO cyadeS these
faxes. that honest competition is impossible. The
and the gradual transfer to foreign bands of large
and important class OF our import trade Ile decay
OF merchant marine within the past rev years is
not deplOTabe than TINS absolute transfer from
domestic control Of large part OF our foreign trade
and, ii neither Is soon arrested IN Short space we
shall see nearly all imports from European cOun
tries conveyed to shores IN foreign bottoms and
consigned TO foreign agents, and our ports become
mere warehouses for those VINO have no interest III
our national prosperity, and contribute little or moth
ing TO the support of the Government.
Without regard to the question OF Protection II Is
obvious that these facilities granted 10 foreign
uacturers injurious to similar home interests, as
the accumulated fabrics IN warehouses can be
suddenly reeXpOrted, withheld from entry, or thrown
upon the market without reference TO the trade de-
mands, and often deslgnedly 70 embarTaSS the do
nestle producers. steady market, based upon the
actual Requirements for consumption, is an essential
element IN healthy commercial system; and such
market cannot be realized when controlled by alien
interests Ii goods had be entered for consumption
upon arrival. the acknowledged laws of supply and
demand would exert their conservative influence
The home manufacturer would have 10 sustain com
petition with s foreign rival, but II would be faIr
competition based upon relative prices and qualities
of the And it Is not the policy OF our Gov
eminent TO discriminate against Its own citizens, so
is impOitic TO afford facilities for that Over-stm
ulatiOn Of importation, which being by its very
nature spasmOdlc cOniers no benefit on the consumers
since the low prices OF 10 day are avenged by the
eXOrbitant prices Of the MORROW, while the disturb
of the natural flow OF trade produces distrust
and panics which nJuTlOusly affect every interest In
the country.
one of tie most marked peculiarities of the exist
ing WaTehOusing system Is that II makes no dlscrlm-
natOn, to tiue in the goods imported; all ENJOY
the same facilities, without regard 20 the character
Of the wares or place OF production Tue raw ma
terial and the manufactured fabric in the same
category. and distinction Is made between the
products that have merely crossed the Atlantic and
those that by long and uncertain routes have
reached Us from the AntipOdes. There should be q
discrimination III favor OF raw material over the
completed fabric, the latter Is an unlntermlt-
tent product aud prepared tor immediate colsuinp-
ton, while tie former must await the slow processes
VI Manufacture, and Is mostly marketed Immediately