The new dominion. [volume] (Morgantown, W. Va.) 1876-1904, 1891-11-07

is Republican or that it is Democrat.
ic. but it certainly is good common
sense:
What is taxationf
1t islaying and collecting revenues
for the government.
What else is its
A necessary evil, which we must
all bear for the sake of the govern
ment. Whatever revenue is neces-
sary to properly administer the gov
eminent is just and proper. Every
dollar collected beyond the needs of
the government is simply robbery
committed to further some sinister
job or purpose.
How are taxes collected?
Directly and indirectly. The bulk
of our local and state revenues are
collected indirectly, by means of the
tariff laws.
But Major Mckinley and the 9TH
er Republican leaders say that the
tariff is not tax.
They are mistaken-purposely
mistaken.
But they say the foreign manufac-
turer, and not the American consum-
err, pays the tariff.
They know better. They know
that such is not the case
Can you show me how the con-
sumner pays the tariff?
The foreign manufacturer sells his
goods to the American importer who
pays the tariff duties at the custom
house Ia New York. This he adds
to the cost, and gets it back from the
wholesale dealer. The wholesaler
gets it back from the retail dealer,
and the retailer gets it back from
his customers who buy and consume
the goods.
Give me practical illustration of
this, will you?
Let us suppose, then, that an Eng
lish manufacturer makes 80 yards
of woollen goods which you finally
purchase for your domestic use.
Yes.
The American importer buys it
from him for so cents yard and
brings it to New York. The 80 yards
cost him SIS. The specific and ad
volorem duties, let us say, amount to
Sc per cent. which is $40, which he
adds to the SIS, making $22.40 he
has paid. To this we will say he
adds 10 per cent for profit and the
cost at which he sells it to the whole
saler is $2464.
Yes.
The wholesaler, we will say, makes
10 per cent. profit, so he sells it to
the retailer for $27.1O
Yes.
The retailer, let us assume, makes
Is per cent profit, which he adds to
the cost price to himself, and that
makes the 80 yards you buy cost
$30l6. In other words, you pay
fraction over twice as much per yard
as the manufacturer sold it for, ST. 40
of which was paid as tariff tax with
ten per cent ON it to the importer
and wholesaler and 10 per cent on it
to the retailer as profits on their in
vestments. In other words you have
been taxed $l0.24 for the privilege
of buying 30 yards of goods.
Sure enough, that looks as though
/ pay the tax, but can you give me
some other illustration?
Let US suppose that the govern
ment did not collect the tariff at Gus
tom houses, but at the retail stores
where the goods were sold.
All! that's the idea. That will
show who pays the tax.
In that event the importer would
buy the goods at 30 cents yard
SIS for the piece. 10 cover freights
and profit, he would add 10 per cent,
and then it would cost the wholesale
dealer $3.50. He would add his 10
per cent profits and it would cost the
retailer $1S.11, to which he would
add his Is per cent and it would
cost $20.S3.
/ see; l would save nearly $40.
Hold on; you haven't settled with
the government officer yet who stands
at the door.
Why do | have to settle with him?
He is collecting the tariff. AS you
go out he asks you what you have
and you show him the goods. He
examines them and tells you that
they are dutiable at the rate of Sc
per cent on their original cost or
value, at the factory, and that there
is consequently due from you $7.40,
which you must pay before you can
take the goods home with you.
Now l understand the thing. l
can see through it. And yet l and
thousands Of other hard working
men have believed for years tariff
was not tax, and have been vot-
ing to keep it up, when the govern
ment had no need for it. Count me
on the side of tariff reform hereafter.
-Ea.
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