Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1897-05-08
THE TOBACCO TAX.

In estimating the probable productive
ness Of the Dingley bill, as amended by
the Senate Committee, few OF the ex-
perts in finance whose calculations we
have seen take much account of the in
crease of the tax on tobacco. Yet ii is
proposed to increase the tax on plug
and smoking tobacco 80 per cent, and
that upon cigarettes 100 per cent. In
asnIuch as the former goods last year
yielded the government a revenue OF
s15.asO.OOo. and the latter 100000. it will
be seen at once that the Treasury is
likely to profit largely by the change,
All governments feel free to burden
the tobacco industry with as much taxa
tion as they please, not paying much at
tention to the true saying that tobacco
is the poor mans luxury" And the to-
bacco industry is rarely able TO defend
itself from the attacks of these would-be
financiers. The consequence IS tina, in
this country 1t has suffered not only
from immoderate taxation, but from i'm
moderate agitation.
Indeed, it may well be argued that
the latter has been productive of more
evil TO the trade than the former And
in this matter we are referring not only
TO the interest of the tobacco planter. but
TO that of the handlers Of leaf and of
the manufacturers.
The pending proposition will have the
tendency to unsettle the market, and the
longer the debate goes on IN the Senate,
the worse 1t will be for all interests
The multi-mulionaire manufacturers are
OF course. better able to protect them
selves than the men of small capital
are, but we are sure they, too. would
prefer 10 have this question settled
quickly.
The big manufacturer has II In his
power to lay In a large stock Of stamps
and to manufacture the tobacco upon
which to use them. Thus he. or his GUS
TONERS. would be wei supplied with to-
bacco stamped at the old rate when the
new rate went into operation. The ef-
feet OF this would be TO make those
manufacturers very busy for the next
few months, with the inevitable conse-
quence that for many months thereaf-
ter there would be few orders coming
sn. Thus the governments expectations
of increased revenue for the first year
would be but meagerly fulfilled.
The present Secretary of the Treasury
has threatened those who are now i'm
porting goods that they Will be called
upon hereafter 10 pay extra duties, con-
formally with the new rates. and it may
be that he Will arbitrarily adopt some
such policy with reference 10 tobacco.
or 1t may be that lie will see 10 it that
tobacco stamps are doied out SO leisure
~ that no one manufacturer may lay in
a large stock OF them. Bat we should
think he would appeal In vain 10 tho
Senate to take any action looking 10
making holders OF unbroken packages
pay the difference between the cen.
and the cent tax.
The Senate Committee Is already upon
record as against any retroactive provi-
sion with respect 10 the duties upon
foreign importations and "a fortiori,"
At should be opposed 10 the application
of any such monstrous doctrine 10 the
internal revenue system.
In the event that no cheek Is put to
the sale of cent tobacco stamps we
may expect the marke. 10 be glutted
with tobacco thus stamped by the time
the new tariff goes into effect. That
period of depression In the trade will
inevitably follow should be expected.
How long this period viii continue Will
depend entirely upon how long the
Senate takes to pass the tariff bill.
But we may be asked II we are GER
tain that the tobacco tax win be raised.
no. Nothing Is certain about the tarid
bill. In the ranks OF the Republican
senators there is much satisfaction
with the amendments reported by the
Senate COMMITTEE. Many members are
FESTIVE under the tyranny OF Mr.. Jones.
who. having the power by hts ono vote
10 defeat the bill. has made what are
called excessive demands in the way OF
amendments
Bur we must say in all candor that
II the tariff bill Is passed. we think the
new rate upon tobacco viii be found
Included IN 1t. The truth Is that the
Republicans now know that their pro.
posed sastr bill will not yield anything
tse 20 much revenue AZ is needed, and,
Aoestfers, many millions must be raised