The morning call., 1890-08-14
EXPORT DUIIEs.

The new Constitution of Brazil innugu-
rates a new departure in the commercial
legislation of that country. When tile
United States Constitution was adopted a
special provision forbade the imposition OF
export duties. In Brazil import and eX-
port duties have been levied, but the du-
ties have been collectable by the general
Government. Under this system, when
we placed coffee on the free list Brazil
imposed an export duty equal to the i'm
port duty we had relinquished, and thus
the American consumer did no: benefit by
the change.
Now, by the new Constitution of Brazil,
the Congress is forbidden to levy export
duties, but for five years the States are
allowed to lay an export duty on such of its
products as are exported from the State.
At the expiration of five years this power
will determine, and export duties will be
unknown in Brazil, as they are in this
country. After 1895 Rio coffee will be un-
taxed in the country of its growth, and will
enter this country free; it will 20 hard then
if The American consumer does not get his
coffee little cheaper.
Whether this provision of the new Con-
stitution will not stand in the way of the
reciprocity treaty which Mr.. Blaine pro-
poses to conclude with Brazil will depend
on the temper of the Stale Legislatures of
Brazil. II is obvious that an export duty
which raises the home cost of an article of
general consumption operates In the same
way as an import duty in the country to
which the article is shipped. 1t is antag-
onistc to the scheme of reciprocal exchange
which Mr. Blaine advocates, and may
cause the postponement Of negotiations
until the power of the Brazilian States TO
levy tax on coffee expires by limitation.
The same trouble may arise with Cuba
and Porto Rico if their sugars are placed
on the same footing as Hawaiian sugar. 1t
has been no secret for years that Spain was
only waiting for US TO put sugar on the free
list to impose an export duty on the staple,
in order to place Cuban finance on pros
porous basis. If this were done, the recip-
rocity scheme now under discussion at
Washington might. be defeated by indirec-
ton. 1t proposes to admit Cuban sugar
free in exchange for the free admission into
Cuba of American flour, provisions and tex
tiles. Our object would be two-fOld: First,
to gain new market for goods of which
we have surplus, and, second, to get cheap
sugar for our people. But if Cuba laid an
export duty on raw sugar. we should not
cheaper the price of the refined article, and
the only gain to be reaped by reciprocity
would be au extension of the Cuban mar
ket for American breadstuffS, provisions
and wares.
In times gone by export duties were justi-
fed on the ground that certain commodities
were best kept at home. Thus, in many
countries the export Of horses and articles
used in the prosecution of wars, such as
saltpeter and steel, was checked by the i'm
position of export duties, and, when actual
h0stlities were threatened, the duties were
made prohibitOry. In modern times export
duties have been more used as source Of
revenue than as means of preventing the
exhaustion Of necessary commodities. In
many South and Central American coun-
tries they have supplemented import duties
to considerable extent Mexico draws
quite an important revenue from her ex-
port duty on silver, and so does Peru. This
may be a fiscal blunder, but the difficulty OF
raising revenue in country where direct
taxation is impracticable excuses resort
to method which, however unscientifc, is
not unjust. 1t is not at all clear that the
Spanish American countries are prepared
to abandon it. Indeed. the observer who
notices how largely those countries are de-
pendent on their custOm-hOuses for means
to support their governments will not be
very sanguine Of their acQuiescence in the
policy Of reciprocity under any conditions.