Democratic Northwest. [volume] (Napoleon, Ohio) 1869-1894, 1893-07-20
AID VALOREM DUTIES.
WHY THEY ARE PREFERABLE TO
SPECIFIC RATES.

More Taxes and a Higher Rate Than
Are Paid by the Rich-The Injustice Of
the System Is Inconceivable.
Since the special committee Of the Re
form club made public the proposed tar
iff bill which it had drafted thousands Of
criticisms have been made, mostly by
Republican papers, on the ad valorem
system of duties which was adopted by
the committee to the exclusion of spe-
cifc duties. Many importers and man
ufacturers also wrote private letters to
the chairman of the committee, Mr.. E.
Ellery Anderson, stating that the ad
valorem system would lead to underval-
uation and fraud and would put pre-
MUM upon dishonesty. They contained
severe criticisms and disapproval, but
these the committee expected to receive
even in greater numbers and in stronger
language than has proved to be the fact.
At special meeting Of the committee
held on the goth Of June the question
of the relative merits of the ad valorem
and specific rates was very fully discuss
ed and considered, and the objections
urged against ad valorem duties con-
tanned In the various communications
above referred to were examined at
length. The committee adhered to it's
former conclusion, after weighing all
the respective advantages and objections
applicable to both methods of taxation,
the one against the other, that the ad
valorem system was the best and was
preferable to the system of specific rates.
The committee, however, expressed its
full appreciation of the great evil result
ing from fraudulent undervaluations,
especially in cases where from the nature
of the imported articles there was diff
Guilty in determining the true market
value at the time Of shipment.
For the purpose of correcting this evil
as far as possible and of devising sys-
tenn of fixing just and staple valuations
it was suggested that radical revision
of the administrative bill should be
made. The committee proposes to urge
the adoption of such administrative
measures as will enable the custom house
officials to devise system of valuations
which shall minimize the danger of un-
deryaluations and which shall enable
importers to pass their goods through
the custom house under an ad valorem
system which shall yet be substantially
as fixed and unchanging as is claimed to
ha hn noo IN T1116a %ba ,,a+h<,I a. eraasGh
rates.
The conclusion of this committee,
which contains several of the greatest
tariff experts in the country, will go far
to compel the adoption of this system
by the next congress. Many of the
great Democratic leaders who may be
responsible for the next tariff bill have
also declared themselves unqualifedly
in favor of ad valorem duties. Secre.
tary Carlisle, William L. Wilson and
William M. Springer are a few of those
mentioned.
Briefly stated, the objections against
specific duties are:
First-They tax by the yard, pound
or gallon and compel the poor, who
use cheap goods, to pay more taxes
and higher rate than are paid by the
rich, who use dear goods. It taxes
cloth that costs so cents per yard the
same as cloth that costs $5 per yard. II
is equivalent to taxing land by the acre
in which case the owner Of an acre Of
Kansas prairie would pay the same taxes
as the owner of an acre Of Manhattan
island. Tho injustice of such system
is SO great that worse system is incon
ceivable.
Second-They increase the rate Of TAI
as prices of articles decline and thus
prevent the consumer from getting the
benefit Of falling prices and at the same
time yield an increasing amount Of pro
lection to manufacturers.
Third-They are more easily juggled
with by manufacturers and tariff makers
who wish to deceive the people. Nearly
all Of the numerous "jobs" in the Nc
Kinley bill would have been impossible
without the aid Of specific duties. Thus
if Mckinley instead Of adding s'2a cents
per line" to the ad valorem duty Of S5 pei
cent on pearl buttons had proposed tx
add duty Of 500 per cent on small but
tons his proposition would never have
got outside of his committee room. And
yet this is what his bill accomplished.
Ad 'valorem duties, especially wher
high, do encourage undervaluation ani
discourage honest importers. They arr
also not always as convenient for thu
importer and the collector. But ths
slight Inconvenience and injustice K
these few cannot be set up against thu
gross injustice that would be done to thu
whole people by the useof specific duties