Western Kansas world. [volume] (WaKeeney, Kan.) 1885-current, 1892-08-06
WHEN THE TARIFF IS A TAX AND
WHEN IT Is NOT.

WHEN THE TARIFF IS A TAX AND
WHEN 1T Is NOT.
Frsms Speech In Congress.
I viii tell you when the ''tari6 il q
tax" even to the full amount Of the
duty, and that Is when t is imposed for
revenue only on an article the like Of
which We do not produce. In every
such case the duty is added to the for
eign price and paid by the consumer.
Put duty of 10 cents a pound on tea
and the price will advance by just the
amount of the duty, for the reason that
there is no competing domestic product
to influence the market. The importer
pays the duty to the government and
then adds it to the foreign cost, and re-
covers every dollar of it from the Amer
lean consumer. Such free trade tariff
is direct tax on the people to the full
amount of the duty. But when the
duty is imposed on an article, the like
Of which we do or can produce, then
such tariff is not only not tax to the
full amount of the duty, but becomes
the means of lowering the price both of
the foreign and domestic article, some
times even below the duty itself. This
result flows from that universal law OF
supply and demand lessen the supply
or increase the demand for given arti-
Gle, and you will advance the price; in
crease the supply or lessen the demand,
and you will lower the price. So if
70 to, oh,
and maintain domestic industries which
could not otherwise exist, and increased
production follows, lowering of prices
will inevitably result.
Alexander Hamilton recognized this
principle when he said:
Though it were true that the imme-
diate and certain effect of tariff was
an increase of price, it is universally
true that the contrary is the ultimate
effect with every Successful manufac-
ture. When q domestic manufacture
has attained perfection and has engaged
in the prosecution of it competent
number of persons, it can be afforded,
and accordingly seldom, or never, fails
to be sold cheaper in process of time
than the foreign article for which it is a
substitute"
The truth of this is within the expert
fence and observation of everyone.
Many domestic articles are selling even
for less than the duty. A striking illus
tration is found in the case of salt. Do
nestle salt has sold at the works for 48
cents barrel of $50 pounds, the barrel
costing 20 cents, leaving the price of
$50 pounds of salt at % cents, or 10
cents hundred. The duty on salt is
IL cents a hundred. Will some free
trader, who believes the tariff is a tax
explain how the purchaser of a hundred
pounds of salt for 10 cents pays q tax
Of IL cents? And this is not an isolated
example. Numerous instances can be
cited where q domestic product, the
fruit of protected industry, is no. only
selling in the home market as low or
even lower than the duty, but is sue
cessfully competing in the foreign
market.
I challenge the mention of single
protected article produced in this coun-
try commensurate with the home de-
mand that cannot be bought cheaper
to-day than under any period of free
trade.
But it is answered, 'if the tariff is not
tax, how is it that when the duty on
sugar was removed the rrice fell by
substantially the amount of duties?
This demonstrates that the tariff is tax
paid by the consumer" Not so; it es-
tablishes, on the contrary, what have
already said, that free trade revenue is
a tax; for it will be remembered that
sugar is chiefly of foreign production,
the domestic supply being too inconsid-
cradle to constitute a competing factor
in our market.
But it is said, if this be true, of what |
service is the duty. Why not take it off |
Why retain duty on an article when it |
can be sought for less than the duty |
I might answer, if it works such q result |
why not leave it on, what harm does it |
do? Laughter But I would not |
take it of, or reduce it to purely reve-
nue. basis, for the reason that the for
eign producers might then seize onr
market, destroy the competing domestic |
industry by flooding our markets with |
cheap goods, possibly at temporary
loss, and when all competition was de- |
stroyed advance the price and recover
all they had lost. You might as we'll |
say to the Hollandar, ''Take down the
dikes; the sea has not come in here for |
five hundred years." but the sturdy and
intelligent Hollander would say, ''True,
but the reason why is because the dikes |
are there"
ANARCHIST JERRY,