The Camden chronicle. (Camden, Tenn.) 1890-current, 1891-10-23
TWO OBJECT LESSONS.
The DitfsreHCe in High Tarig Tax
alton and Free-Trade.
ST. Louis gspublic.l

AiN 'VAN9 LUZ ~ dH ounce. w neK
the high tariff tax On it was remov.
ed it was selling for from SO to 81
an ounce. Now it sells for from &C
cents to 80 cents an ounce at retail
For III cents as much quinine can
be bought now as was sold for 81
under the Republican tax. The
"protectTve" price of quinine at re-
tail was 1000 per cent. (ten times
higher than the present price I'M
der free trade in it,
In the case Of sugar. as in that of
quinine, the reduction in the retail
price has followed at once after the
removal of the tax on the wholesale
trade. The increase on the dollars
worth of sugar at retail {from four
teen pounds under the tax to twen-
ty pounds without the tax is not
able one. but the price Of sugar is
still much higher than it would be
were trade in table sugar as free as
1t is III the raw sugar. The tax of
$40 a ton against the importation of
table sugars has not prevented a re-
markable fall in price as a result of
free-trade in raw sugar. 1t is not
high enough to allow the sugar trust
to restore prices to the old limit and
hold them there, but it prevents the
accumulation OF foreign stocks in
this market If there were no tax
to keep ont foreiga table sugar, the
cheapening Of sugar would be as
great as was the cheapening of qui-
nine.
The effect of a tax on trade In any
article, no matter how small the tax,
is to increase the price of the arti-
Gle. 1t is often remarked by advo-
Gates OF high taxation on trade that
prices grow cheaper under the tax.
This is often the case, bat it is al
ways in spite OF the tax, and. in
spite Of the cheapening, tho tax al
ways shows in the average price of
the article taxed. In the case Of
sugar 1t is easy to see this. Under
the tax of 70 per cent. sugar has
grown much cheaper in this market
than it was twenty years ago, but
when the tax on raw sugar was re-
moved the folly Of the claim that
this cheapening was due to the tax
was shown at once. The immedi-
ate fall In pziae proves conclnsiyely
That 1t had cheapened III spite OF the
tax, and that the tax had been still
included in the cheapened price.
If the trade in clothing were put
on the same basis as the trade in
sugar, the effect would be the same.
A dollar would then buy what it
takes at least $50 TO buy now. In
many articles of necessary use, the
reduction would be greater than it
has been in the case Of sugar and
as great as in the case of quinine.
Another point which must not be
overlooked is that where the tax is
entirely removed, as in the case of
quinine, there may be a fall in price
much greater than the amount of
the tax. The first effect is a reduc-
ton not greater than the tax, but
gradually year after year as stocks
accumulated in the markets the peo-
pie get the benefit of much great
er reduction. They oonsume more,
and the supply is greatly increased
to meet their demand. Wherever
very large stocks are handled in
trade the handler grows accustom-
ed to smaller margin of profit on
the pound, yard, or other retail
quantity, though by handling larg-
or quantities and supplying more
people he may realize a larger profit
on his fetal sales than if he hand
led a small stock at high prices un-
4 49,, =. 4 L