The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1884-09-17
TARIFF TAXATION.

1t would be difficult to find an example of
greater duplicity than that practiced by pro-
tectionists when they declare that the tariff
is not tax. At Manufacturers Protective
Convention, held at Chicago. Mr.. G. 3. Steb-
bins, Of Detroit, made a declaration which
took the form of resolution, and was con-
sldered by the convention. He said:
Of all the misstatements Of free trade ad-
vocetes, none is more gross than the impu-
dent and oft-Tepeated falsehOod that a tariff
is a tax added to the cost both OF the i'm
ported article and of the like article made
or produced in this country tax on the
people for the benefit of so-called mOncpo-
lists, etc.
Mr.. Stebbins is explicit He says that the
tariff is not tax added to the cost of the
imported article, and that tariff does not
enable manufacturers in this country to
maintain higher prices for their wares than
would be demanded if there were no tariff.
The Galveston News, in commenting
upon the remarkable statement of
Mr.. Stebbins, remarks that "the
resolution is not only conceited
and arrogant. but it is a stupid rehash of the
oft.repeated falsehood' that it charges the
fact with being, and fatty contradicts all the
grounds on which a tariff is urged. 1t as
sumes that the people are fools and easily
gulled into any false theory that is gilded
with gold; and to this extent it insults their
intelligence. and attempts to betray them
into the condition of hewers Of wood and
drawers of water to the protected manufac-
turers. The man or the set of men who as
sert such an absurdity, and essay to give it
currency as genuine coin among the people
who are supposed to be familiar with the
subtleties of the tariff system, are amenable
to the charge of ignorance or deception"
Surely the organs of the manufacturers will
be accepted as authority touching the real
facts. A recent number of the Iron Age
furnishes full quotations of the prices of
metals in Europe and in the United States
and, as matter of information to its readers
who may want the knowledge N fixing their
prices, it adds, IN connection with the differ
ent articles, the rates of duty. Two or three
articles mentioned will suffice for the pur-
pose of this argument.
Take steel rails; its English correspond
ent reports that two manufacturers have
been taking orders at 95 los. per ton, say
S23.75; but most of the makers insist on GO
on steel rails is S28 per ton. Add this, you
have a little less than 500 to this must be
added the cost of ocean freight. What was
the price of steel rails in the New York mar
kets, according to this same paper at that
time? Sixty dollars a ton. lake the case Of
pig-iron the quotations are from the same
paper. GarthsherrIe is quoted on the other
side at SIS. to Cos. Cd, say S13.25 to S15.12;
| the duty is 81, which raises these amounts to
| S20.25 to 1919. Then there is the freight to
be paid, and the quotation of Garthsnerrie
| in New York is S25 to $3.50. The lowest
! quotations of American pig iron were S21 to
| S21.50. Is the duty added to the foreign
price, and then is the price so arrived at the
basis on which prices for the domestic ar
tice are based, or not? II it is then the tar
/ III is tax; and if not, what do these fig
/ ures mean?
1t is not required at this time to extend
| the argument further to prove that tariff
does Just what Mr.. Stebbins declares it does
not do, and the extract given from the Iron
Age so conclusiVely contradicts Mr.. Steb-
bins that people of average understanding
can not fail to see purpose to rob the peo-
pie by processes which are supported by false
hood. The tariff tax upon wooden goods
which the people of Indiana are required to
purchase continually is simply enormous,
1t is safe to say that if the tariff on wooden
| goods were reduced one-half the Government
would receive more revenue owing to in
creased importation, while the people would
be benefited by lower prices, as the result of
sharper competition. As the case now stands
readv-made clothing is taxed Sc per cent,
loths ~ per cent. and blankets 80 per cent,
nd women's and children's dress goods 20
per cent. This enormous tax is laid upon
foreign importation of wooden goods, mainly
for the purpose of protection, to aid Ameri-
can monopolies to obtain from consumers
fully % per cent. more than they would be
required to pay if the purpose of the tariff
was to secure revenue. We assume
that the 2S5,000 families in Indiana
will purchase two blankets each
annually, at q cost of 81 for the
pair. This would represent an an.
nual expenditure for blankets of 81 ,O4O, 900.
The tariff tax on blankets is 50 per cent,
and amounts to almost total prohibition.
The revenue derived from such importations
during the year 1880 amounted to only S12T,
f4s. 1t Is fair to assume, If the tariff were
reduced, the Government would obtain more
revenue. Importatoins would increase, and
the people of Indiana would save at least %
percent of their expenditures on the one ar
ticle OF blankets, which, upon the basis OF
calculation here introduced, would amount
to 100000 year. In the article OF wooden
cloths, universally in demand, it is the
opinion of dealers that the tariff tax makes
difference IN cost to consumers Of fully 33J5
per cent. The sarlff on cloth is ~ per cent,
and this enormous tax, while it does not ar
rest importations, enables dealers to sell to
the people of Indiana for 81 yard cloth
that in England or Canada sells for not more
than sixty cents yard. and when the sum
total of Indiana's demand is estimated, the
burden Of tariff taxation swells to enormous
proportions Assuming that of the /, O0O. 600
males in Indiana 7OO,O 900 of them will require
four yards of wooden cloth year, we have
an annual consumption of 300. 900 yards.
If we assume that the cloth cost 81 yard,
we have an annual expenditure for wooden