BoletiÌn mercantil de Puerto Rico. (San Juan, P.R.) 18??-1918, 1901-11-18
Cuban Cigar Duties.
An Important Question For
the Reciprocity Convention.
Present Tariff Nearly Prohibitive.

One OF the most important matters to be
discussed at the national reciprocity CON-.
vention in Washington this month is the.
proposed reduction in duty on Cuban cigars
through reciprocal trade relations with the
island of OuDsn. The subject is receiving .
great deal of attention at present from Amer.
lean cigar and tobacco interests, who are
making careful study of conditions both
here in Porto Rico, and In Ouba--of the pro.
duction in this island and Cuba and in the
consumption in the United States--so as to
be thoroughly prepared for the controversy
at the convention and at the n ut session of
the congress. A man who is an authority l
ON this subject and represents some of the !.
largest tobacco interests in this Island and /,
IN Cuba said today.
II have just returned from Washington,
where have been gathering some valu. |
able data and statistics bearing on the |
cigar duty question. The present duty on
cigars of "a 30 per pound ana 20 per cent.
ad valorem is not Objectionable as q gen.
! eral tariff rate, but Is far too high as sp
piled to Cuban cigars, when 1t is pro.
posed to maze good the pledges of the
United States to aid in the restoration OF
> commercial industrial and agricultural
q prosperity of the island by an act of reci.
4 procity. While, generally speaking, the
present tariff on cigars is nearly prohib.
= live, as less than 1 per cent of the total
i consumption of cigars in the United States
a is imported, it should not be forgotten
o that this exorpitant rate is applied and
. assessed upon the largest manufactured
. product OF the island with the sole ex
o ceptien of sugar, which is more an agri
a uyo1-t than O N, NJ, 70, rod vrnduotN
that United States Treasury statistics show
20 inclusive, over 95 per cent. came direct
a from Cuba, while it Is probable that Of the
n remaining ) per cent. at least one.hali
"a were Cuban cigars reiported from Other
= countries, because no cigars other thar
70 Cuban are valuable enough to permit Of
Importation to any extent into the United
1t States and pay the present high specific
h rate of "a 30 per pound, or even the spe
! cifc rate of the tariffs of 1879 and 1888
= which were each $3.50 per pound. Since a
this rate of specific duty the same would
average $50 per 1000, the duty alon,
would be more than the average ,okolesalt
price here en- five and ten cent cigars, 81
that practically the great bulk Of domestic
cigars under che latter ratejwould be amply
protected. AS this was shown to bl
the case by actual imports when the dut,
was $3.50 per pound and 20 per cent. az
n. valorem, it lis not at all probable that th,
abolition of the az vslorem duty would at
il feet cigar imports, other than Cuban, es
pecial!y since the average valuation o
,e cheap German and other cgars is not owe
:, one third 1890 per 1000 to one sixth (s1(
, per 1.OOO) OF that of Cuban cigars in Ha
rs vana.
L. "In view of these facts, it seems uude.
in niable that continuance of this re.
:. strictive policy with regard to one of th
20 chief products of Cuba is not only totall
W incompatible with any policy of rehsbilitat
ing the islands prosperity, but is suicida
"a and destructive from the standpoint o
revenue. Every economist principle of sis,
10 Legislation for revenue purposes, ever
D. pledge of aid in rekabilitating the islant
le seem to demand prompt and radical reduo
m ton in the duties on Cuban cigars. Thi
-, can be. done, too, without any perceptibl
a. injury to any domestic industry, manufactur
ut ing or agricultural; for, as already stated
W the total cigar imports are not now pc
a cent. OF the consumption, and in 1890 wer
302, ,S44 pounds less than per cent, of tn
total taxpaid output of 1899, so that
appears that at no time since the war tarii
of 1861 has the importation exceeded / pc
cent Of consumption. With the abolition o
the ad vslorem duty and q return to th,
specific rate of . 2.5O per pound, il is no
probable that the imports of cigars from al
:, countries would amount to B per cent of tn
II consumption in the United States. But i
le they did, the result would show q lsrg
r increase in revenue from that souros an,
! on that ground alone. perhaps Justify
reduction in the rate on Cuban cigars.