Los Angeles daily herald., 1888-10-05
SENATE TARIFF BILL.
Its Accompanying Majority
Report.
WHAT THE MINORITY SAY
The Latter's Able Defense of the
Mills Bill and True Revenue
Reform.

Reform.
Associated Press Dispatches to the HERALD.
WASHINGTON, October 4.-The major
ity report on the Tariff bill declares that
the demand for a careful and thorough
revision of the revenue laws is imper-
alive:
First. To reduce the National rev.
enues, which are now excessive.
Second. To protect honest importers
and domestic producers from the disas-
trou5 consequences resulting from fraud
ulent der-valuations of imported mer-
chandise on which ad valorem rates Of
duty are levied.
Third. To remedy the defects, anom-
allies and incongruities which have been
from time to time discovered in the
tariff schedules, or which have been
created by erroneous decisions of the
Treasury Department.
Fourth. To secure the proper read
justment and equalization Of tariff rates
rendered necessary by modified busines.
conditions, improvements in methods of
production, or radical changes in prices
as brought about by new elements or
sources Of competition.
Fifth. 10 give relief and protection to
the many industries now suffering on
account of inadequate rates levied on
competing products.
The public demand for reduction of
the revenue, the majority report says, is
the more urgent on account of the mex
cusable retention in the National Treasury
or on deposit in National Banks, of vast
sums of money in excess of the amount
required to pay the current demands
upon the Treasury, and to meet the
maturing obligations of the Government.
This sum with the additions which will
accrue within the next four months
and before any legislative actions
reducing the revenue can be effective, it
declares will be sufficient to pay in full
the outstanding AZ per cent. bonds due
in 1891, and amounting to 1921 900 900.
This accumulation, it insists, could and
should have been profitably avoided and
the possibility of business disaster
averted. A prompt return of the money
collected from the people to the channels
of trade, through the purchase of United
States bonds tnat could at all times have
been obtained for prices which the Gov
ernment would have been equal to the
investment of otherwise Improbable
funds at rate of interest of not less than
2 per cent.
The majority expresses it's conviction
of the inadequacy Of the House bill as
remedial measure for the reasons:
First. 1t would probably increase in
stead Of reduce the revenue.
Second. It provides no remedy for
under-valuations, but on the contrary in
vites and gives immunity to fraud by
substituting ad valorem for specific du-
ties, and
Third. 1t does not remedy any equali-
ties or anomalies or cure any defects in
the existing law.
J If foreign manufacturers, the majority
says, should, through changes made in
the cotton and wool schedules, secure a
quarter OF the market now held by
American manufacturers (and this, it
thinks, a very conservative estimate) the
additional duty would reach at least
500. 100000. The expansion of imports,
it declares, would also follow reduction
OF the rates on china, porcelain, common
window-glass, manufactures of iron and
steel, flax, iute, hemp and many minor
manufactures, with great augmented
revenues. 1t declares that the House
bill perpetuates the existing infrmities
by it's obscurities and faulty construction |;
its doubts and antiquities, which must
multiply indefinitely.
The present confusion of results. how
ever, the majority says, which would
flow from the failures of the bill as cor
rective measure, would be much less dis
astrous to the material interests of the
country than those which must surely
follow the adoption of it's vicious affirma-
tive propositions. The feature which
most clearly indicates its purpose is the
proposed substitution of ad valorem for
specific duties. This could have no other
result than change rates now protective,
for others which would not protect. The
promoters of this bill must have been
familiar with the testimony submitted to
Congress by Secretary Manning, disclos-
ing the enormous frauds upon the reve-
nue. and honest merchants, through
the use of ad valorem rates. The
use of ad valorem rates had
been condemned by the experience of
every commercial nation in the world !:
by the judgment of those who have been
entrusted with the responsibility of Gus
toms administration, and by honest i'm
porters and merchants as well as by in
telligent political economists and iegis-
lators of every shade of economic belief.
When business is depressed and foreign
prices abnormally low, when foreign
competition is most to be feared, and
when defensive barrier is most needed
by domestic producers, then ad valorem
rates are lowest, protection is re-
duced and the depression is inten-
sified. On the other hand, when foreign
values are highest, rates are highest and
restriction enlarges into prohibition. If
it is desirable, a sliding scale of duties
should be adopted customs rates should
increase as foreign prices diminish. The
proposal to apply this principle to all
manufactures of wool would be unsatis.
factory and destructive: The rate pro-
posed in the wool schedule would pre-
vent the importation of low grades of
fannels, blankets and hats of wool, and
all low and medium grades of cashmeres
and other cloths which enter in the
clothing of the great mass of our people,
but would be insufficient upon all the
finer classes OF dress goods and cloths
for mems wear.
The majority says that with the excep.
ton ofsilks, wines, liquors, tobacco and
sugar, every tariff schedule is invaded by
alterations, made with the hostile spirit
which pervades the House bill, and that
nearly all of our industries would feel the
hliohfinO effacta of chanOaa which orc