The Press., 1890-10-02

{For The Press.)
 SPECIFIC AND AID VALOREM DUTIES. A Study of the Legislation Concerning Them. De- l fects of the Present System.
 l During the first quarter of century of national life the legislation concerning tar iff-duties in the U. s. was exceedingly &C., I tive. The financial straits of the new gov ernment were so great that measures to l provide for the treasury were the first con- cern. In 1789, before the inauguration of the first president, MT. Madison introduced in congress resolutions establishing a ''tem- porary system" of imposts. After some amending the resolutions became law. This { law fixed the ratio between ad valorem and specific duties, divided the country into customs districts, and established the scheme of customs offices substantially as l it now exists.
 In its principal features the whole plan of 1stoms regulations adopted by congress closely resembled theEnglish customs regu- lations. The office and duties of collector, naval officer, and surveyor of the port were d r ,ctly copied from England, That such should have been done is quite natural, for Americans had become familiar with the English system in colonial days, and the working efficiency of that system had also been proved by long trial ill the mother country. The offices of collector of the port and surveyor of the port existed as such in England earlier than 1450. The most im- portant features of Madison's resolutions of 17S9, were his proposals in regard to specif- ic and ad valorem duties. Madison pro- posed to divide the rates about equally be. tween these two classes of duties, but the proposition gave rise to vigorous opposi. tion which fairly outlined the conflict of economic and constitutional opinions that became so prominently developed ill later times. The bill as finally adopted fixed the ratio at about three to four between ad va lorem and specific duties respectively.
 Upon liquors, ordinary wearing apparel, teas and certain breadstuffs, specific duties were imposed, while upon articles of luxu- ry, small wares, and jewelry ad valorem duties were established. The average duty levied on all imports at this time was below 16 per ct. Drawbacks of 99 per ct were allowed by this early act upon goods re- exported from the country within twelve months, and fixed allowance in lieu of 8 drawback was given upon all salted or pick led fish exported. in regard to ad valorem duties, the act directed that the rate of duty should be estimated at the place of impor- tation by adding 20 per ct to the actual cost of the goods if imported from the Cape of Good Hope or from any place beyond the same, and 10 per ct. on the actual cost if imported from any other place or coun- try. The invoices of the goods made at the place of exportation were to be accepted as representing their value, but if the invoices clearly undervalued the goods the true val ue was to be ascertained by an appraisal made by merchants jointly appointed by the collector. and the importer, and duty was to be collected according to this ap- praisal if, however, it were proved that 1.-the invoice had been made with an intent to defraud, the goods were to be declared forfeited to the government. We shall see that these provisions of this act of 1789 for ascertaining the dutiable value of imported goods were maintained for nearly half a century.
 At the second session of the first con- gress, in 1790, an act was passed which made certain allowances for the draft and tare of articles subject to duty by weight, and also an allowance of per ct. for leak age upon liquors in cask. By this act, too, the collectors, naval officers and surveyors were entitled to collect moderate fees for certificates and other official documents made out by them. During this session the rates of duty were advanced at least 10 per ct., but there seems to have been no change in the relations between specific and ad va lorem duties. The next year, 1791, the Ispecific duty on spirits was slightly in. creased another increase of this duty was made in 1792: again an increase in 1795, and rather unimportant advance in the ad valorem duties of a few articles in this latter year.
 l By 1797 the demands upon the national k<, ..e &l, T ernment were very severe. A million and a quarter of dollars more were needed fol the year 1797 than the revenue would yield A resolution was introduced in congress tc raise money by direct tax, but the meas
 nre secured but little support. MT. Wolcott, ;; secretary of the treasury, then proposed that the rates of duties on imports be rais ed, and bill to that end was passed. This act of 1797 increased both the specific. and ad valorem duties, but left the ratio of the duties to each other uEdisturbed. In 180( there was slight increase of ad valorem duties on all articles which had hitherto
 paid an ad valorem duty of 10 per ct. About
 his time also it was discovered that goods
 were frequently underrated in the invoices, and the government was thus defrauded il establishing the amounts of the ad valoren duties. To remedy this evil MT. Gallatin advocated the substitution of specific duties
 for the greater part of the ad valorem rates
 The proposition was rejected, however customs officers were increased, and sever CT penalties imposed upon attempts al
 fraud. From the beginning of this centu ry down to 1916 there was no important !, legislation affecting the relations of specific and ad valorem duties. This was the peri
 cd of prosperity caused by our heavy ex
 port trade during the great wars in Europe
 In 1872, after the commencement of hostil ties with Great Britain, all tariff duties
 were raised 100 per ct., but this applied tc , specific and ad valorem duties alike. IT 1916 42 per ct. additional was placed upo1
 the existing duties, and this was also so ar
 ranged as not to disturb the relations oi
 specific and ad valorem duties.
 The tariff act of ISIS re-enacted 8 clause
 of the act of 1799 which allowed one mole !, ty of all fines, penalties and forfeitures O
 nndervalued merchandise to be divided among the principal officers of the GUS toms. This act of 1918 also directed tha American consular officers in foreign port, |: should examine and certify to the invoice.
 of goods shipped from their ports. Whel
 the decidedly protective tariffs of 1924 and
 1928 were passed the use of ad valoren
 rates was greatly increased. During tn, early years of the tariff Legislation, while fthe rates were imposed for the sake of rev enue merely, specific rates, as we have al II rno du cooyo vUora mora nunor0na than af