The Hocking sentinel. [volume] (Logan, Ohio) 1871-1906, 1888-08-02
Tariff Lesson,
GIVEN IN FAEILIAR Lam
.GUkGE.
What the Tariff is When Pror-
erly Analyzed.
SIMPLY A TAX ON TEE MANY
FOR THE BENEFIT OF
THE FEW.
How and Why the Consumer
Must Pay the Tax in the End.
The Sham Protection Afforded Aericul.
ture by the Much -Vaunted Wool
Tariff of 1867.

What is tariif2
The levylng and collection of
taxes by an indirect method.
How by an indirect method?
Because the tax being added
to the actual original cost of the
article enhances its cost TO the
consumer by t!re amount of the
tariff tax or duty, plus the per-
centage for profit charged by the
importer, The wholesaler and re-
taller. who finally sells it to the
consumer. For the sake of con-
venience let us consider the i'm
porter and wholesaler one per-
son.
Does the consumer pay tins
tariff taXg
Necessarily he cannot avoid If.
vii! you give me an illustra-
tion showing this 10 be the case
that the consumer and not the
importer pays the tariff taxs
Let us take by way of illustra-
ton. a yard of wooden cloth man.
ufactured abroad and imported
into the United States. The cost
to the importer al the place of
manufacture is fifty cents for the
yar1 of cloth. We will assume
that when it reaches the port of
entry in the q. S. it must paw an
ad valorem duty or tax of IS per
cent. The duty on the yard of
cloth is 81 cents. When the i'm
porter pays tins, and not before,
he may sell to the retail dealer.
What does he charge the retailer?
To the so cents, first cost, he adds
81 cents tariff tax, making the
prime cost of the yard of cloth S4
cents. He then adds, say 5 per
cent. of this sum invested for
freight and insurance-4.2 cents
and 10 per cent. for his profits
-S.4 cents-or 81 plus 40 plus
8.4 equal 96.6 cents for the cloth.
The retail dealer is also entitled
to his profits, and this he adds to
the 96.6 investment which he
paid to the importer. We put
the retailers profit at rs per CT
24.l cents-which added to the
SO 6, makes 81 20.7. the cost to
the consumer. The importer first
pays the tariff tax of 81 cents, but
he gets it back from the retail
dealer. The retail dealer in his
turn adds it to the cost of the ar
ticle, along with the Is per cent.
freight. insurance and profit of
importer, and gets the whole o!
1T back from the consumer, who,
being the consumer, cannot re-
collect it from some one else.-
Thus it will be readily seen that
the whole of the tariff tax is paid
by the consumer in the end-bY
the man who makes the last pur-
chase. 1t matters not how man y
dealers hands the cloth may pass
through, the tariff tax figures all
the way through as part of the
cost, and the consumer must pay
it along with all the handlers
profits,
Suppose no tariff were levied
on it, what would this yard of
cloth cost the consumer, allowing
the importer and retailer the
same as before
The importer would then pay
SO cents for the cloth, add 5 per
ct.-2.5 cents-for freight and in.
surance. and 10 per ct.-5 cents
for his profit. and it would cost
the retailer 57.5 cents. Then the
retailer would add % per ct-14.4
cents-for his profit, and the com
putation would stand thus: 5C
plus 2.5 plus S equal SIS plus
l4.4 equal 71.9 cts. the price the
consumer would have TO pay.
Suppose the tariff tax were re
dnced from 6S TO 40 per Ct, and,
allowing the imp orter and retail
er the same as before. what would
be the cost OF the cloth 10 Tie
consumer
Take the original 50 cents and
add 5 per ct.-2.5 cts-for freight
and insurance, 90 cents tariff taH
and 10 per ct-7.2 cts-for profit
and The cost TO the retailer wouiC
be 1913 cts. The retailer would
add 25 per ct-or 20 cts in roun(
numbers-for profit, and the cos
to the consuler may thus be
stated: SO plus %. plus 20, plus
20 o,nnI 20 z ni;lS 20 enual co