Rock Island daily Argus. (Rock Island, Ill.) 1886-1893, 1889-02-13
Two Bills Compared.
Treasury Experts Report on
the Tariff Measures.
SOME COMMENTS FROM rAIRoHILD.

A Heavier Reduction Figured Out for the
Mills Than the Senate Bili-Republican
Senators Compliment Whitney, and
Brag of the Navy We Are Going to
Haye-Chandler's Whack at John r.
Unconstitutional Capital Notes.
WASHINGTON CITY, Feb lS-The house
committee on ways and means has received
the treasury computations in regard to the
reductions in revenue made by the house and
senate tariff bills compared with the present
rate of duty.
The reduction Of internal revenue from the
treasury figures is: in the senate bill, S47 SS2,
600; in the house bill, s67, 100000.
In custom duties: Dutiable values-Exist-
ing law, $454, 800, 448 3d. house BILL S379, lO9,
1885; senate bill, s4es, 1856, 0S247 Duties
collected in fiscal year 1887, S21l, 032, OIL II
estimated under house bill, Sl6O, 6S2, 500 So:
senate bill, Sl9Z056, 024lS Average ad va
lorem-Existing law, 1891; house bill, 40 80;
senate bill, 49,
Secretary Fairchild, in sending the book Of
computations, in which every article in both
bills Is analysed, accompanied it by a letter
addressed to Chairman Mills, in which he
says;
ut was decided to make use of estimates
biased upon the importations for the fiscal
year 1850 heretofore prepared in this depart
ment OF the probable effect upon the revenues
OF the senate substitute as originally reported
by the senate finance committee | recoC-
nize that these estimates are largely con-
Jectural and more or less unreliable and mis-
leading. As a RUE they are based upon the
assumption that il the senate ill should be-
come law merchandise of like quantities
and values would be imported as was import
ed during the fiscal year 1887. This basis can
only be accepted as reliable where changes in
rates are not of such character as to neces-
sarily cause increased or diminished importa-
lions. With respect to articles add
ed to the free list, a reduction of revenue
to the amount previously derived therefrom
would be certain and absolute But in cases
of material changes in rates on dutiable
articles and where articles now free are added
to the dutiable list the effect would depend
upon variety OF conditions
THUS if rates be reduced to such extent on
articles successfully produced here as to
destroy or seriously impair the domestic pro-
duceT ability to compete with the fHGG,';ceiSr
producer. the result would be increased i'm
portations and probably increased revenue
On the other hand, where the rates upon
articles successfully produced here are
materially increased, it is fair to assume that
the importations Of such articles would
decrease and the revenue therefrom diminish
Nv here the rate upon an article is so in
creased as to deprive the foreign producer of
the power to compete with the domestic pro-
ducer, the revenue from that source will
cease altogether With respect to articles
not produced, or not successfully produced
here and which we require for consumption
increased rates of duty would result in a cor
responding increase of revenue (except as
modified by decreased consumption due to
higher cost. On the other hand where rates
are reduced on articles we consume and the
like OF which are not produced, or not sue
cessfully produced, here, reduction in reve-
nue. corresponding to the reduction in rates
would result subject only to the contingency
Of increased use due to lower cost.
"Where articles, the like Of which are sue
cessfully produced here, are transferred from
the free to the dutiabe list, it is fair to assume
that the quantities imported would be ma
terially reduced Where materials entering
into manufactures are exempted from duty
and corresponding reduction in the rates on
such manufactures is made the revenue there
from would naturally diminish by reason of
the increased advantage to the domestic pro-
Queer and consequent decreased importations.
Where the duty is increased on material
used in a manufactured article imported and
also produced here, and a proportionate in
crease in rate is not made on the latter. In
creased importations of, and revenue from
such article viii logically follow
The secretary gives illustrations of revenue
reductions and increases in the senate bill,
subject to the provisos mentioned in the rules
he lays down for computing the increase or
decrease as given above.