National Republican. (Washington City (D.C.)) 1872-1888, 1875-02-06
THE TAX ON TEA AND COFFEE,


THE TAX ON TEA AND COFFEE.
We have noticed that petitions are almost
daily presented in Congress against the re-
newal of the former tax upon tea and coffee.
1t is scarcely conceivable that reasonable
people fully acquainted with the subjects
of the present necessities Of the Treasury
and the exceedingly light per capita tax
proposed, would take the trouble to oppose
the temporary renewal of these imposts.
But we are well aware that the signers Of
such petitions seldom reflect upon the whole
subject before affixing their names. They
60 to the store and find the price of coffee,
for instance, has advanced three cents, (the
amount of the taxi When they ask the
reason for the increase of price, they are
informed that it is proposed to lay tax of
that amount on coffee, and as it has been
recommended by the Secretary ofthe Treas
ury it will almost certainly become law.
The only way to prevent it is to remon-
strate by petition against it. In this view
of the case they affix their names without
further investigation. The merchant mean
while collects the advance of three cents,
and if the tax is not laid; if it is prevented
by the number and force of the petitions
which, by the way, he is careful to gather
and forward to his Representative in Con-
gress-is so much added to his clear profit.
Now, the facts in the case are simple.
This is government of the people, and the
people are proud of their system of self
government. They say they are willing
to pay for it. The cost to them is very
light-being in the aggregate less than $40
per annum each. This includes every
thing-the interest on the public debt and
the ordinary expenditures of the Govern
ment. Our consumption of coffee is less
than eight pounds per annum to the per-
son. The proposed tax would therefore be
only about twenty four cents per annum to
each person, or one dollar and twenty cents
ayear for each family of five persons. And
yet this little, triiing tax would produce
annually to the Treasury about SIC, 900, 900.
In 1871 it produced $40, 969, 09S.77. But
the repeal of the duties on tea and coffee in
1872 caused no reduction of consequence in
the prices of these articles in this country.
In lieu of this an advance equal to or in
excess of the duty was added to the invoiced
prices of them at the ports of shipment
For instance, the average cost of coffee at
ports of shipment in 1871 was % cents per
pound. In 1872 it advanced to - and in
1878 to Is; while in 1874 it adeanced to 19tt
Much of this advance may possibly have
been owing to a partial failure of the crops,
which supposition is borne out by the fact
that the importations have dwindled during
the same period, Notwithstanding coffee
was placed upon the free list by the act of
1872, some thirty-two million pounds per
annum. Some Of the coffee producing
countries, notably Brazil, have since in
creased their export duties to counterbal-
ance our repeal of imposts.
The effect upon the prices of tea have
been similar. The average cost of teas at
the ports of shipment have gradually ad
vanced since their addition to the free list
fraction over four cents per pound
From these facts it will be perceived that
the retail prices of tea and coffee are affect
ed less by the real duties which they pay
than by the arts of the spectators, who
manipulate the wholesale prices upon the
most exaggerated sensational reports for
their own benefit. The people are now
paying the proposed tax. 1t has already
been added to the whole stock on hand, in
anticipation of its imposition. But it will
never reach the peoples Treasury if Con-
gress does not, in turn, collect it from the
merchants. 1t will go to swell the profits
of the latter. The merchants are making
catspaws of their customers when they get
them to sign these petitions. During the
three months which Congress takes to con-
slider the matter the merchants collect
three and one third millions of revenue
from the consumers, which, if these petit
tons are effective, will remain in the
pockets of the merchants. This is little
game which the people ought to see through.
The next effect of these remonstrative
petitions will be that the revenue lost by
not laying this tax must be raised in some
other manner, from other articles of con-
sumption, and thus the people will be
made 10 pay it twice when the Treasury
gets it but once. The light tax upon tea
and coffee proposed is just and equitable to
all parties. So also would be the renewal
of the 10 per cent. horizontal tax, which
was repealed in 1872. 1t is hoped and be-
lived that the imposition will be only tenn
porary; that the revival of business will,
at the end of the next fiscal year, enable
the Government to again lower the rates.