Savannah morning news. [volume] (Savannah) 1868-1887, 1883-04-23
TOBACCO AND ITS TAX.
LABOR REAPING THE BENEFIT
OF THE REDUCTION.

The Consumer Not Affected by the
Change-The Logic in the Case-Sec-
retary FOlger to Decide the Rice
OuestiOn-PuzzleS in the New Tarih
I Law.
WASHINGTON, April 22.-The reports IN
several commercial publications have
theoretically discussed the question
whether the reduction of the tax on TO-
baccO and cigars would result in a reduc-
tiOn to the consumer in what he paws for
the luxury of his enjoyment This is a
! question which interests at least eight
out of every ten men recorded in the last
census. In order TO get at something def
mite and official on this subject, | to-day
! propOunded the inquiry to Commissioner
| of Internal Revenue Raum. | received
/ the following reply: mo, there will be no
! reduction to the consumer, | think.
| don't see how that can be. The price of
tobacco has gone up. do not know what
makes it go up unless it is the law of sup
ply and demand. do not see how we can
| attribute the rise in the price of tobacco
to the reduction in the tax thereon.
although it is probable that it may be put
up in order to help maintain the price of
the manufactured article. / dosnot put
the price OF any article is something that
political economists cannot aptly gauge.
The nearest Illustration that | have ever
heard under that head is that
quantity given by Richard Golden. He
says that if two bosses are looking. for the
same labOrer the price of labor will ad-
vance, and that if two labOrers are hunt
ing the same employer, the wages of the
former must decrease. But the increase
in the price of manufactured tobacco is
only one reason why the consumer will
not get the benefit of the tax reduction.
III you are careful reader of the
neWSpapers-as | suppose you are-yOu
must observe that the cigar makers and
employees of tobacco manufacturers gen.
orally are asking for an advance of wages.
They base their demand upon the fact that
the tax has been reduced. And they gen
orally seem to be getting what they
ask. That is very good. 1t is well
that the working man should receive some
benefit Of the reduction, as there is not
much likelihood of the consumer getting
anything of it under any circumstances.
Tobacco, cigars and cigarettes will be put
up and sold just as they now are. Plug
tobacco is marked off in sections to be cut
by the retailer at i've cents. ten cents, fif-
teen cents and so on, according to the
amount that the purchaser may want. 1t
is all prepared for retail sale upon the
ratio OF i've cents the purchase. In the
matter of cigars there is a similar condi-
ton of sale. You may buy a cigar two
for I'VE cents, for five cents, for ten cents.
three for quarter. two for
quarter and so on, Cigarettes you may
buy for ten cents, fifteen cents, or twenty
cents package. These preparations for
the trade VIII continue. These customs
have become as established in the tobacco
business as the standard of weights and
measures. The reasons which | have
outlined constitute why the consumer
will get no reduction in the price which
he pays for the tobacco luxury"
n rice importer of New York called at
the Treasury Department to-day in re-
gard to the settlement of the question of
what duty "cracked' rice shall pav. He
went to Secretary FOlger, who has re-
sumed the head of the Treasury Depart !
ment, relieving Assistant Secretary |
French, who has been acting Secretary. |
FOlger told him that he would settle the |
question sometime before the 1st of July |
next, when the new tariff bill goes into !
effect. Afterwards Assistant Secretary |
French called Mr.. FOlger's attention to |
the fact that the question now pending |
dld not arise under the new tariff law, |
but under the old one. FOlger then said |
he would try and give a decision at as |
early day as possible.
The predictions made that numerous |
questions would have to be decided on /
account of the incOmpleteness of the new
tariff bill are eertanlby BenrG5 nrG561 t65 tt6s9 f liz.
terested i'll what it means. 1t does not go
into effect until the 1st of July next, as a
whole, but it has been studied by the
business interests. Daily there come let
ters from manufacturers and importers to
the Treasury Department, asking for an
of this or that clause.
These letters now number well up to-
wards thousand. They ask all manner |
ground out. But the present questions
are only an advance guard of what will
come when the bill is put into active
operation. Potomac.