The New York herald., 1869-01-07

hundred anu lorty yards, ADDITION tnefe %,
thirty per cent ad valorem which amounted to pro-
hbilon. But it was found that the fine cotton
threads or yarns, thus excluded, were needed for
many other purposes than Tor sewing. and that sono
OF them could not 10 that time be furnished under
any circumstances In this country. They were
essential for the manufacture OF elastic fabrics for
su spenders CATERS and other products; and these
manufactures would have been utterly ruined could
thu duty have been collected.
Tie Treasury, after time, practically nulllhed the
duty by It's Interpretation OF the law and skeln yarn,
&c, are still imported at the rates existing before
THE TARIFF AND sHIpBurLprNG.
Mr.. Wells proceeds to show that the attempt to
protect shpbuilding has broken down under the at
tempt TO protect copper, c0rdage, canvas &c. and
TINS universal taxation has extended to every
brl nch OF production "ihat II ships available for
TO- eign trade were to-day furnished to hand without
reason that the high prices Of all domestic CON-
modtes would efectually prevent that exchange
commerce."
TAXATION OF LUMBER.
re1 which rate, With ihe importers percentage, NAV
be considered as equivalent to twenty-five percent.
Now, the demal0 increases steadily and prices OF
the cheapest varieties or lumber in the Albany mar
ket'have advanced since 1861 about one hundred per
cent.
requirements OF the country-a fact generally con-
ceded-two things follow:-First, that the duty Is
paid wholly by the consumer and Is therefore equiv
aent to so much direct tax; and secondly, that the
price OF the Imported article regulates the price OF the
domestic product. Or, In Otner words, tax on the
ltnpOrtatOn OF Foreign lumber becomes also tax
upon the consumers Of the whole domestic product;
with this difference, that In the case the pro-
ceeds OF the tax go into the national treasury, and
IN the other benefit exclusively private interests.
Let US now see to what these respective taxes
amount. The value OF the rough lumber imported
In 1868 was about ana half millions OF dollars
while the value OF the domestic product IL estimated
at biyour millions. For every dollar taken in the
form OF a direct tax seven are taken indirectly
through the increase OF prices or, In other words
900 currency received into the Treasury at
an indirect cost OF about sixteen millions. And this
Is not all; 70 per cent the increased price OF u-
ber means rs per cent IN the Increased price or
houses 25 per cent In the increased price of vessels
OF fences, Of railroad ties, &C. These act on wages
and on other materials; and thus the wave OF taxa
ton continues to extend and enlarge until no man
can measure the breadth Of It's influence. breaking
ultimately with its full force upon two classes or So
ciety, viz:-Those living upon fixed incomes and the
day aborer, for neither OF these increase his
come as matter OF compensation. And all this has
dustry.
1t is plain, on principle, that lumber ought to be
terest was prosperous under the reciprocity treaty,
when lumber came in free; and since the war began
lumber has advanced in price far more than the
average OF other commodities.
M TAXATION ON SALT
Mr.. Wells next shows that salt Is now burdened
with duty OF from 100 to 40 per cent In 1860 the
duty was but fifteen per cent. still higher duty
Is demanded by the producers. The manufacture is
practically . monopoly in the hands OF two great
the Commissioner shows that they have made
enormous profits under the present duty and that
the Interests Of the whole country demand the re-
NO TAXATION ON pIa IRON.
The duty on pig iron is nine dollars gold, over
twelve dollars, currency. II costs make ton OF
plg.lron in the United states to-day more than
twenty-six dollars per ton, currency, and ia some
ing price OF Nos. and pig IRON In the markets OF
the United States Tor the last year has ranged from
thMty.seven to forty-two dollars per ton:
Thus the manufacturers or pig iron have, to the
detriment or the rolling mill interest and to the ex
pense Of every consumer Of iron, from rail- to
nail, realized continued profits which have hardly
any parallel In the history OF legitimate industry, the
returns Of one set OF furnaces IN one OF the Middle
States, Communicated t0lthe Commissioner, showing
yearly product OF $4,000 tons, on capital OF
$4so.oO0 sold st profit Of nom ten 70 thirteen dol
Surely the makers OF pig iron ought to join all the
CONSUMERS con N asking Congress 70 reduce this duty;
but 1.-THE commissioner has not heard that any such
movement has been c0ntemplatedn
RESULT ON NATIONAL DEVELOPMENT.
The condition Of af1airs Is this-We have so raised
the cost Of al domestic products that exchange IN
The majority OF what they have to sell u.s. as already
shown, we must or will have What foreign nations
cles excepted-they can buy elsewhere cheaper. we
are therefore Obliged 10 pay IN no small part for such
foreign productions IS We need Or win have either
in the precious metals, or what Is worse, In unduy
deprecated promises OF national payment.
This Is illustrated by the trade or the United States
with the Argentine Republic IN the article OF hides,
which we import thence in large nnmbers, Returning
formerly our manufactures; but now that these are
raised SO high we are forced to send them chiefly
gold and silver coin, and thus are drained OF our
precious metals. Other nations are increasing their
exports thher, while ours remain stationary, or de-.
OF TAXATION ON COST OF PRODUCTION.
On this subject the Commissioner makes An elabo-
rate comparison between the principles on which
taxation Ii adjusted among dinerent interests In
~ that su
tzon.ng Of taxation among the interests which bear
It greatly tighten the burden on the general in.
States the propriety OF studying this question: hold
ing "that II any state should determine 70 adopt
system Of local taxation analogous TO that recog.
anticipate very large innux Of capital and manu-
factures from beyond its own borders, thereby rap
possibly, e an ultimate result competing other
STATES 70 adopt the same liberal and enlightened
policy as measure OF defence and protection"
FUTURE FINANCIAL POLICY.
The question now arises, what policy OF legsla a.
ton viii be most advantageous to the revenue and
OF the whole country on sound and substantial
basis.
such policy must mot only recognize the existing
condition OF affairs but must be- 10 the smallest ex-
tent possible, an experiment. Violent change, un-
certainty and instability are. Of ell things, what the
to dread. Tney want the determination and recoa-
milton OF clear well defined and practical ISSUE TO
be attained by certain and progressive, even
though slow, movement Can such policy be de-
termneds Can such an issue be consummateds
The ends to be attained are, mainly, threerst full
restoration or the nat0na crcdlt ana re8umptiOu vi
specie payments; second, refunding the national
debt ut lower rate Of Interests third, reduction or
the cost OF national production, with view OF
enabling the products Of American industry to COM
pete terms OF greater equality with the products
OF foreign nations than Ii now possible.
He then inquiries wnat elements are ready at hand
for the accomplishment OF these results.
NATIoSxI. RECEIPTS AND EXPENDITURES FOR TIE
PIsCAL YEAR ENDING JUNE 30. 1893
The accounts OF the national Treasury for the rs.
cal year ending June 30, 1865 snow an aggregate OF
receipts OF $4os, ,0s3, and OF expenditures OF
S3-7, $40 2s4 leaving balance TO the credit OF In
come OF s2s 2oT, 79s, not including In expenditures
the bonds issued to the Pacific railroads.
For the current fiscal year, ending June 30, 1859,
the Commissioner estimates the receipts ~
s356 10000, and the expenditures at s52e 900.
leaving surplus Of say $50, 900 900. This estimate
like the results OF last year. Is on the basis Of avery
imperfect revenue administration
FOR rHE YEAR ENDING JUNE 80 1870.
Mr.. Wells looks for an increase OF revenue or
saving OF expenditures Of 900 per annum
from the incr OF the country In wealth and popu
lation OF $4,000. coo from the termination OF war
claims for pay and bounty and gain from the
further general reduction Of national expenditure.
49, ss.odQ "A nm