New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1883-10-15
TITO WAYS TO REDUCE REVENUE.

elaborate na,nphlet recently issued, though IL
!, understand to have been prepared by certain
distinguished dyocates OF protection ID Pehn-
svlyania, this erroneous assumption appears
if is argued that, if the revenue to be derlVeu
from the tariff must be cut down, of necessity
the duties must be reduced, so that less euect-
i've protection for home industry would result
Tho mistake is 80 common, and it has so much
influence in shaping the opinions OF many rs u
questions of taxation, that 1t deserves serious
attention
For illustration, let the duty on steel blooms
be considered. This duty Of % per cent 01
raloyep, yielded in the fiscal year 1852 rev
enue of So, ga, 1886. If it is desired to get llu
of that revenue, there are two ways to do SOL
the duty can be repealed, which would be harinr
full to important home manufactures or the
duty can be increased SO far as to preVeno I'M
portations of steel blooms in any ordinary state
of the markets. If it be assumed that a duty OF
90 per cent would have that effect, or a specific
duty of ST. / ) per 100 pounds, then 1t makes
no practical difference Us to the amount OF rev.
enue to be obtained whether the duty OF Sl 10
per / 90 mounds be imposed or no duty at all ;
either would practically reduce the revenue by
about So, 600, 900. This is 50 simple and
obvious that one would suppose it could not be
overlooked by any intelligent man. Yet the
applicatlon of the same principle in more COM
plIcated form is almost constantly oVcliookeu
10y many.
1t is desired, let us suppose, to reduce the
revenue from this class Of imports by one hall.
To cut down the duty to 22l2 per cent would
undoubtedly increase the importatlons. Pos
sibly 1t might more than double them, so that
an actual increase of revenue would result, III
stead of decrease. Moreover, after the reduc-
ton goes far enough to make free imports pos
sible in competition with similar domestic pro-
ducts, il is extremely difficult to judge how
largely the imports may increase. Hence re-
duction Of revenue by that process becomes an
uncertain and difficult matter. But 1t Is not
dinirult prices abroad and here being known
to raise the duty TO such point that 1t viii
surely exclude considerable part Of the i'm
mutations without excluding them altogether,
and thus cut of a part of the revenue without
sacrificing the whole. I'm like manner, large
proportion of the duties embraced In the tarih
can I've treated 10 either of two ways with pre-
csely the same result as to revenue: they can
be so TAR lowered rs to yield less, or so far
raised as to yield less.
Other considerations, of course, affect tho
choice OF methods. The article in question
may be the material Of an industry so impor-
tant that its total or partial exclusion would do
great harm. Or il may be one that cannot be
economically produced IN this country, so that
a heavy duty woull DC unrcasOnably bur-
dcnsoms to consumers. These aud other
matters the intelligent legislator will consider.
But the essential thing is to notice that the rev.
euur can be almost indefinitely diminished
without lowering a single duty. If it is desired
to build up an industry, and other clrcum-
stances render such change eXpcdicnt, reduc-
ton of revenue can be attained by a higher
measure of protection and, in the end, the
consumer in this country may reap the benefit
of lower prices through the establishment and
full development Of that industry. Or, lift is
desirable to favor an industry by giving it
cheaper materials, the revenue can be reduced
by abolishing or cutting down the duty on those
materials Reduction Of revenue may thus Le
so directed as TO Increase or TO maintain the
protection Of industry, ii Congress 50 plcase5
and has the requisite intelligence, either by re-
duciion or by increase of duties on very many
articles Because smaller revenue is desired,
it is not sensible to infer that the measure Of
protection accorded to home industry must be
diminished.
Probably it would have been much better for
the country if, instead of some duties high
enough to be JurdensOmc but not high enough
to insure the rapid development Of certain in
dustrics Congress had imposed much higher
duties at the start on the finished products Of
those branches of industry. II it is desirable
to bear any burden whatever, for the purpose
Of building ND diversified industry here, GER
tainly il is desirable ia bear enough burden to
secure the rcpaying benefit A. public opinion
grows better Informed on this subject, we shall
sec former protcctlonists and former free trad
ers uniting in the advocacy Of higher duties IN
some cases, and Of lower duties In others. In
making these changes, the revenue can be cut
down AS much rs may he desirable with positive
advantage to every branch of industry.