The herald., 1895-11-29
THE AID VALOREn METHOD

NJ. Carnegie, in addressing the Cleve-
land chamber of commerce night before
last, asserted that under the sd valorem
system OF assessing duties the govern
ment is cheated out of one-third OF its
revenues through undervauation, some
thing which he holds could not occur
with specific duties. Whether the TACT
be as he states it or not is a question, but
il it is there is the consolation OF know
ing that the money which has not been
paid in the form of duties is left in the
pockets of the people, and they can make
up any deficiency that may occur as the
result of being insutficiently taxed.
1t is possible that under the adj valorem
system there is considerable undervalua-
tjon, but there has been no conclusive
evidence to the effect that the govern
ment has lost more in the collection of
tariff taxes than when specific duties
were in force. Misrepresentation occur
Under both systems; under the one they
are as to value, under the other they are
as to grade, quantity and character OF the
article taxed. The faithful carrying out
of either system depends on the capacity
and honesty of the men whose duty it is
TO execute the laws There can never be
an administration of tariff taxation that
will be perfect in the sense of assessing
and collecting the taxes in complete &C
cord with the intention of congress. 1t
is impracticable to attain perfection in
the administration of a system that is
neither scientific nor Just, and taxation
by imposing tariff on imports is GER
talnly neither scientific nor just. 1t does
not collect the desired revenue with
economy or directness or certainty as to
the amount that will be obtained, or
without discriminating for or against
some section, class or interest. And the
system of tariff taxation is far from being
Just, because it does not distribute the
burdens of taxation equally, the revenue
collected being paid by those people who
happen to use the articles taxed, while the
non-users of the articles escape taxation
to the extent that it is imposed by tar
if. Anything that is incapable of being
perfected is in its nature unscientihc
And any tax that is levied for general
public purposes, but only borne by part
of the public, is unjust.
A perfect administration of tariff taxa
tion is no more practicable than the
same kind of an administration of per
soual property taxation. In the first
place people can ard will conceal to an
enormous extent tho subiec OF either
sort of taxation, and thus escape pay
ment. And next, it is substantially i'm
posi- BILE to secure men who. besides being
incorruptible, possess the knowledge and
intelligence requisite TO accurately APP
praise ports under ad valorem duties
In N flo nj
nobody outside OF Junk dealer can ever
hope to be measureabiy successful in ac-
ourately appraising the multitudinous
array of Articles that come under the
head of personal property" in the city
and county assessors rolls, and include
every thing from steamship to a shirt
stud. When an appraisement is not accu-
rate ii means that grieyous injustice is
being done somebody.
But of the two methods of appl ying
tariff taxes, the ad yalorcm is beyond
question the one that will most nearly
accord with the spirit OF the law and with
common sense. The ad Yalorem method
gives recognition to the fact that things
vary from time to time in value, as pro-
ducton increases or diminishes, either
absolutely or relatively; il is imposed by
levying a tax on the value OF the article
i'm ported, ds taxes are levied on the value
OF real property. The specific duty Is
tax on the article regardless of value,
ana with the variation that occurs in the
valuation OF things it may i'll six moaths
after the imposition OF the duty have an
epuire'y different effect from he one in
tended by the trainers OF the law. The
specific duty is non-clastic, cast-iron.
while the ad yalorcm moves with and is
responsive to the ever changing prices OF
the commodities affected. Whether the
tariff LEVIED be attended for protective or
revenue purposes, it is decidedly the
most sensible and in the end the most
satisfactory method.
The fact that perfect results are not
obtained with it when used in the appll-
cation of tariff taxation is not the fault
of the ad valorem method, but of the
system OF taxation of which it is made a
part.