The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1888-05-31
I Il 4 BvLL
Monstrous stupidity and Greennsss % -
Men Who Framed 1t.

|
Stupidity and Greennsss % -
Men Who Framed 1t.
The Iron Age.
When the details OF the Mills bill FIRST To-
came known to the iron trade the objection Was
at once raised that instead Of reducing the reve-
duties collected. 1t may be conceded that IL 10
q difficult matter to forecast the IN fuenee upon
importations Of . lowering Of the tariff. since 1t
depends upon a great variety or circumstances
and demands . comprehensive knowledee OF
facts, which few experts. IL any, possess. To
Judge OF it's effect it would be necessary 20 as
certain to what extent American manufacturer
could reduce cost by demanding . lowering OF
wages, . reduction in ~freiEhrs. in supplies. in
royalties on mineral property and on patents,
etc. The shrinkage in profits would have TO be
borne, not only by the manufacturer aud bis
workmsn, but by middlemen and retailers also.
How much in the aggregate such reductions in
the cost of placing. the finished article
it would be very difficult to ssr-
mate. Yet it would be one OF the factors
to determine the quantity imported. and hence
the aggregate duty collected. IL would AID 70
solve the question whether our own manufactur-
ers could not alone hold their own, but whether
they could control the natural increase IN the
consumption, which 10 90 greata factor in our
country. To make any estimate OF duty col
1ected under . new tariff. we would have 20
y Suo Cost W tuc ioLclSH H8o0uCoks tAY
capacity of foreign works, as affecting the CUES
ton whether the opening or our market wholly
or partially would tax their resources 60 much
~ to cause an advance in prices partly or wholly
eompensating for lowering the tariff. IL would
be necessary to be able to Determine whether
the duty on one particular article happened to
be relatively the lowest among q group forming
the series from the raw material to the finished
product, so that It would involve q study of one
rate with reference to others Importers will
rr,ts1lu And tho o<ffo1a NJ 1oaat rna1Qfaocs and
an unexpectedly large quantity of the particular
goods may be brought in. Let 1t be supposed
that the duty on pig and ore 10 comparatively
high and that the same Is true or steel rails or
other finished FORMS. while blooms or billets
have relatively the lowest duty. In such q case
the imports on ali the articles named might de-
cline, In spite Of lower duties. while the quanti-
ties of blooms and billets might enormously in
crease.
We have thrown out these suggestions merely
to indicate somS o. the many in1usuces which
might affect the quantities OF articles imported
under new duties, aside from those fluctuations
IN the demand and in prices here and abroad.
which affect the volume OF trade from month 20
therefore an estimate OF the amounts OF duties
flowing into the treasury Is . very complex
problem, Ia which there can be q wide diversity
OF opinion, except In those cases where an ar
ti.le 10 placed on the free list, or where . pro
hibitory rate is substituted for q lower duty. :
1t was with considerable interest, therefore,
that we looked forward 20 the details upoa
which the trainers Of the Mills bill based their
estimates Of the reduction in the revenue grow
ing out Of the proposed rates Of duty in the
metal schedule. The total was made IS. sos
TAG. 90, against duties OF So. 937, 46 during the
fiscal year 1887. We are amazed TO find that
the former aggregate - total
compiled by assuming that toe same
amounts as were imported in 1887 should form
the basis of the new duties collected-in
other words, the economists OF the majority OF
the ways and means committee brush aside all
considerations of the influence Of adherence Of
duties in the volume Of imports and estimate
the revenue by multiplying the quantities Ina
ported IN 1887 with the proposed rate Of duty.
To illustrate: In 1887 We imported 49. 509 tons
of steel rails at S17 q ton duty, making the rev.
enue $S4l, 667. 3d. The new rate Is ell. hence
they estimate the amount of duty at az. 509x1l.
equal to $544, COS. 40. Or taking another case,
that Of cutlery. The imports in 1887 were 81
4l9. SOL q, on which the duty levied was 80 per
cent, or sos, 3 LEA. The proposed rate Is 35
per cent, hence. according to the committee,
the revenue under the proposed tariff will be IS
per cent OF $1,419, 86l.27 or $496. 95l. "A. . re-
duetiou Of over 10000 The same billiauuy
simple method 10 followed throughout It 10 10
mon Of suoh caliber that the future OF
enormous intsrss Is, the welfare ofihundrsds OF
thousands OF men !: lntsp:ssd.msn Who are
ascertain the fact that . sharp reduction In the
duties on an article imported on . large scale at
the higher rate of duty will certainly not yield
q revenue reduced in the exact proportion OF the
lowering Of the rate, but that the reduction Of
the revenue will be at a much lesser rate, aud
that it 10 within the bounds Of possibilities that
the aggregate amount of money collected at the
custom-house may be actually greater than the
sum obtained on a smaller qrantity Of rmporsed
goods at q higher rate of duty. Leaving out OF
consideration the reduction Of the revenue
growing out Of placing tin plates on the free Inst.
we feel confident, after an examination Of the
metal schedule, that the total. du which would
flow into the treasury IL the Mills bill were 70 Be
enacted in anything like its present form would
be considerably greater shan the average sum
collectedtsince the time when the present tarih
act went into force.