The times., 1901-06-14
A Costly BIundcr.


! A few days since brief news item
| stated ohat Russia had raised the duties
| on number Of American articles, in
| Guiding bicycles, from twenty to thirty
| per cent It now appears that this in
! crease amounts to a virtual exclusion
of such articles from the Russian mar
ket, and that their aggregate value is
about eighteen millions of dollars an
nually. Whether these figures are
strictly accurate is not material; it is
clear enough that we have been heavy
losers in the senseless tariff war pro-
voled with Russia by the Treasury De
partment's discrimination against the
sugar of that country in the interest of
an odious American monopoly.
If in any way the people of the
United States were 10 receive a benefit
from an increase of the duty on Rus
sian sugar, the blunder by the Treas
ury Department would still be a bad
one because of the insignificanCe Of the
sugar imported from that country com
pared with the value of our exports
thereto, which are now subjected to
prohibitory duties imposed by way of
retaliation, the total value of Russian
sugar annually imported being only
about three hundred thousand dollars.
But 10 raise the duty upon it does not
benefit the people. 1t inures entirely to
the advantage of the Sugar Trust and
as a necessary sequence it must oper-
ate TO the injury of the people as a
body.
1t is not putting it too strongly to pro-
nounce this action by Secretary Gage a
blunder, unnecessary and inexcusabIe.
Nothing could have been more ill-ad-
vised and injudicious than the provok-
ing of such a tariff war with a country
that desired to be our commercial
friend, in case that, at the best, even
from the Treasury standpoint, was a
doubtful one. First the Secretary ana
then the Board of Appraisers. by a ma
jority vote decided that the Russian in
ternal sIgar regulation amounted to the
payment of a bounty. This was done
in the face Of an earaest protest by the
Russian Government, and its positive
declaration that no bounty was paid or
intended.
In such a case every COnsidera tiOn Of
international courtesy should have led
the Secretary to give the Russian Gov
ernment the benefit Of any doubt that
might exist. and accept its statement as
fact. This would have forced the
Sugar Trust to take the appeal IN
stead of that the Secretary decided
against Russia. and when the case was
went there with the usual presumption
in favor Of the Secretarys ruling,
which clearly placed Russia at dis
advantage. OF course, Russia was not
a nominal party to the proceeding, but
it was a matter that closely concerned
her, the case directly involving the re-
lations between that country and the
United States.
Briefly stated, the point is simply
this: Russia imposes an internal reve-
nue. tax upon all sugar produced in the
country. and then RENTS the tax on
that which is exported. Does this CON
sttute a bounty on the exp0rt2 It is
difficult to see how. The provision i'm
poses a burden on home consumption,
but the part exported is left severely !
alone-it is neither taxed nor bonused.
The theory, doubtless. of those hold |
ing it to be a bounty is that it checks !
home consumption and thus leaves |
more sugar for export 1t is not |
though, a question of how much is left |
for Export. The point is whether there |
is a bounty paid the exporter-direcuy |
or indirectly. If Russia should. as a po- /
lice regulation, absolutely prohibit the !
use Of certain article in that country. |
thus leaving the entire product to be |
exported, it would be a very different |
thing from the payment Of a bounty on |
its export. The producer would be left |
entirely to himself in the matter He /
would raise or produce the thing as |
cheaply as he could, and then sell it !
for what he coulC get.
But it is unnecessary to argue the
matter in detail Secretary Gage was
reported as himself conceding that the
question was close and doubtful one
Hence the unwisdom Of making such an
issue with Russia, by which the coun-
try as a whole loses many times more
than the whole sugar importation from
Russia amounts to, with no compeusat-
ing benefits to any but those connected
with the Sugar Trust