Evening journal., 1888-07-18
wIss REYeNUE REDUcmoM

nertinH tMhts IN pilc VI AotCSNtoAtoto
and protective legislation through
nearly quarter of a century, to ef-
feet a reduction Of the tariff, the du-
ties on imports are higher now than
they were in war times. They assert
this boldly 70 justify their claim that
she preeent tariff is a war tax, and
should be- removed. To sustain their
assertion they refer to she reports Of
the Treasury Department, wherein II
appears that the average ad valorem
rate of dns, on dutiable imports dur
ing the four years 1S65-6S was AZ 50
per cent. The Treasury reports give
no further evidence on this euhject,
and the superficial inquirer concludes
that the war tariff has been reduced
on.y 2 "a poiuts, OF about 8 per cent.
A more critical examination will,
however lead to a different conclu-
sion. The protective policy demands
that duliee shall be removed from all
articles Of foreign production which
do nos compete with products of the
United States as rapidly as is consis-
tent with an adequate and national
revenue. Under this policy the free
list he's been steadily enlarged by
protective legislation, and the amount
of imporis, duty free, has ben in
creased from Sl45iS,454 in 1856 TO
$22S 5l5 977 ia 1857. or more than
sixteen-fold. During this same period
of 20 years the total imports have
increased less than twofold, or from
$S44. STS, Al TO s679,159, ,4S0.
The Treasury reports give no esti-
mates to show how much the customs
revenue has been reduced by this
enormous increase of free imports.
But assuming, rs we fairly may, that
the average duty on these imports
would not have been less than 40 per
sent. if they had continued in the liat
of duiasle goods, the reduction OF
custom duties by protective legislation
during the past twenty yesrs is 40 per
cent. of the total amount Of the IN.
crease Of free imports during that
time. This total amount is So. zoo, ,000,-
900. and 40 per cent OF that sum ia
more than $1,000 oOO,o00 To this ex
tent have war taxes on imports been
reduced since 1868 Il is quail to the
sum II al the customs revenue Of the
govern mcnt curing tho last five years,
II we had had absolute free trade since
1882, we should not have reduced the
revenue from tariff any more during
shat tine than has been accomplished,
gradually and with no harm to our
people and their industries, by the
friends of protection during the past
twenty years.
The effees Of this enormous exten
sion Of the free trade list. together
with reduction Of duties in other ways
on articles rsmainirg dutiable. haa
been to redpce the average ad valorem
duty on aIl imports from 46 per cent.
an 1868 60 sl.5 per cent. in 1887. But
the inquirer now asks why il is, il the
duties on articles now dutiable have
been generally reduced during the past
twenty years, that the estimated aver
aged ad valorem rate on such articles
is nearly as high(or if we compare the
the one year 1887 with the year 1857,
a little higher as at the beginning OF
this term.
To explsin why this is so, and
thereby explain the paradox that,
while the duties are lower, the average
ad valoren is higher. it is necessary TO
consider the fact that our Gu toms
duties are Of two kinds-ad valorem
and specific The former is per
oentage on foreign cost. and enters
into the average Of All duties precisely
as It is in the Law. The latter is in
cents per yard or pound, regardless OF
foreign cost, and, to get at the equiva-
ient ad valorem, calculation must be
made, the result Of which varies with
the foreign cost Of the article to which
it relates. Hence, in estimating the
average ad vslorem duty on all dutia-
BILE goods, specific duties are not taken
as found in the law, but as
determined by the foreign cost of ar
ticles on which they are levied. II
these articles are low in price the cal
sulation viii give high ad valorem
rate. II they are high in price it will
give q low rate. The specific duty on
10 cents per pound on wool co ting 30
cents is 50 per cent; but on wool cost
ing 40 cents it is only 25 per cent.
Hence, TO the extent to which specific
duties enter into the estimated average,
ad valorem duty on all dutiable i'm
ports, this average will be low or high,
according as the articles subject to
specific duties may be high or low.
Therefore, the statistics of the Treas
1ry Department which give the aver
age ad valorem duties on all dutiable
imports are blind guides, unless ac-
sompapied by data TO show the proper
hon of specific du les which has
Entered into the general average, aud
10 what extent the calculated ad
galoIem rates on such articles as have
paid specific duties, have been in
creased or diminished by the decline
or rise Of the foreign cost Of those
articles. To give a practical illustra-
tion Of the foregoing statement, the
duty on sugar ia 1884 amounted to
sz7 800 600, which is % per cent. Of the
total customs duties Of that year. In
1885 the duty on suga- amouuted 70
So, SIS COO, and uas 2s ger cent. OF