The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-06-25
RUSSIA PAYS NO BOUNTY.

tons tariff war with Russia now hangs
upon a question of fact. Does Russia
p>r bounty upon sugar exports?
Secretary Gage and the Washington
administration say that it does Minis
ter Witte and the Russian government
say they do not pay a bounty on sugar
exports. 1t is interesting to note that
American manufacturers, the sugar
trust excepted. agree with the Russian
government, that no such bounty is paid
American authorities not holding posi-
tons under the administration both at
home and abroad appear to hold pretty
generally that Russia's Interpretation of
the Russian tax law is correct and that
the latter cannot be called a bounty.
The facts regarding the Russian tax
are these: An internal revenue tax of 1
ruble ana 70 copecks per pood-which is
equivalent to a tax Of over cents a
pounds levied upon all sugar produced
and consumed in Russia. But where the
product is not consumed in Russia. the
internal revenue tax does not apply.
Russian sugar which is produced for ex-
port is free from the internal revenue
tax, so that it may go into the world
markets without handicap on the same
terms as the sugar product of other
countries-on the same terms as Ameri-
can sugar, for example
Secretary Gage says that this exemp-
ton Of export sugar from the internal
revenue tax imposed on the home con-
sumption constitutes a bounty on ex-
ports. But if simple exemption from IN
ternal revenue taxes constitutes a bounty
as regards the relations of Russian sug-
or to foreign commerce, then American
sugar gets Q bounty, for it also is free
from direct tax; and the same may be
said of British sugar, French sugar and
German sugar, with which Russian sug-
az completes.
There IS only standpoint from which to
consider the Russian sugar tax as relates
to commerce with this country, and that
is, from the standpoint of foreign com
rlerce, and from that standpoint Rus
sian sugar receives no export bounty
On the other hand, it stands upon the
same basis as American sugar British
sugar. French sugar, German sugar-all
of which is exempt from an internal
revenue tax. What taxes Russia may
impose upon home consumption has
nothing to do with the case. It is only
xg-17 10
comes into this case, and as to that Rus
s.a simply does what the United States
does, namely, lets it so both without
bounty and without internal revenue tax.
Russias action III regard to sugar is
simply a duplicate of what this and
other countries quite commonly do in
regard 10 internal revenue taxes. They
apply simply to home consumption To
apply the internal revenue tax to goods
FOR export would destroy the exports,
because thus handicapped it would be i'm
possible for exported goods to meet
competition in foreign markets.
When the United States, for
example, provided that beer for ex-
port should not come under the general
internal revenue tax upon home con-
sumption, but should go abroad tax free
on the same terms as foreign beer, does
Secretary Gage hold that the United
States pays a bounty upon export beer?
Certainly that claim has not yet been
made.
Russia's internal revenue tax upon
sugar is over two cents per pound. A
tax Of that size levied upon exports
would prohibit them. No sugar handI
capped vita u tax of two cents per pound
could compete in foreign markets with
the tax free sugar of other countries.
Does Secretary Gage hold that unless
Russia places 3, prohibitory tax of over
TWO cents per pound upon her export
sugar, Russia is guilty of paying a
bounty upon exports? Must Russian
sugar bear tax which the sugar of no
other country bears, or else be tho
victim of American retaliation? Must
Russia tax ner export sugar to a point
which will prevent competition with the
tax free product of the American sugar
trust. or Else have to stand a. tariff war
with the United States? That, in a
nutshell, is his position No wonder
Minister Witte handles him with ridicule.
Why should Russia apply an internal
revenue tax to export goods? The theory
Of an internal revenue tax is, that it is
3 tax upon home consumption. In this
country, liquor and tobacco are subject
10 internal revenue taxes on the ground
that these articles are luxuries and that
The tax upon their consumption is there.
fore lightly borne Everyone under
stands that the consumer pays the tax
B0t a tax upon exports is entirely an.
other thing; it is a tax upon production
and commerce, instead of upon home
consumption. In order to reach Russian
consumers and collect taxes for the sup
port Of its imperial regime, Russia levies
an internal revenue tax upon an article
Of universal consumption. and especially