New-York tribune., 1902-02-07
THE PHILIPPINE TARIFF.
FREE TRADE IIIPRiCTICABLE,
SAYS GOVERNOR TAFT.
CUSTOMS REVENUE NECESSARY FOR
THE INsULAR GovERNMENT-CoN-
CESsIoNS RECOMMENDED.
icy TELEGRAPH TO THE TRIBUNE ]

icy TRTBCSE.I
Washington, Feb 6-Governor Tafts testi-
11aony to-day before the Senate Philippine Com
rnittee threw searching light on the condi-
tions which must govern in any effort to re-
duce trade relations between the United States
and the Philippines TO an intelligent and salts
factory basis. The Governor traversed from the
beginning the Democratic contention for free
trade with the islands by saying that a tariff
on American imports necessary TO produce
the revenues necessary to support an tnsular
government AS was the case In Porto Rico
after its occupation the local and internal taxa
tion in force in the Philippines has been far
from sufficient to meet the needs of progress
Eive administration. and tariff duties have had
TO be resorted to as the easiest means Of max
sng up the deficiency. Governor Taft also said
that the concessions asked on Philippine prod
nets entering the United States would not. II
granted, have the effect much of stimulating
native production they would OF concihating
Filipino sentiment. Such concessions, he urged
would be OF great Importance in satisfying the
native mind that the United States intended its
occupation of the archipelago to be really oeneh-
Gent both commercially and politically
THE SYSTEM OF TAXATION.
Governor Taft explained the present system
bf taxation in the Philippines. saying that
under the decision of the Supreme Court no
duties are now being collected articles going
snto the islands from the United States. The
plan of the commission had been to have no
internal system of taxation for the support OF
the general government of the Islands Cnder
the Spanish system there was general poll tax
which netted about 81 0ooO 600, while the re-
oeipts from customs were only about S5.o0O.oVO.
Even children were taxed under that system.
Under Spain there also was tax on business
enterprises, and that system had been continued
iSSiO
mission had also decided TO maintain the poll
tax to the extent Of 81 head adult males.
hut to apply It only paying the governmental
expenses of the towns and the provinces. The
people of the islands had generally urged the
imposition of the poll tax as necessary TO get
some of their numbers to work Under the
Spanish regime the plan had been used TO en-
force sort Of slavery
Governor Taft said there never had been
land tax in the islands, and he attributed this
immunity to the influence of the friars, who had
large holdings and to the owners Of large
haciendas. The commission had imposed land
tax There had been opposition to the system,
but this was disappearing The income from
this tax would be small for a time. because OF
the fact, due TO the retarded development or
the country. that only five millions OF the sixty
five millions acres of agricultural lands in the
Philippines held by private owners.
Replying TO inquiries from Senator Patterson,
he said the Spaniards had method for acquir
ing government lands similar to our homestead
system, but advantage had not been taken Of It
because of the complications Of Spanish
methods There had been much fraud in land
matters and he urged that in whatever regua-
tions may be made for the disposal Of the pub
lie lands Of the Philippines the rights of squat
tiers should be recognized.
Governor Taft said th1t the assessable tax
able property IN Manila would not exceed S30.-
100000 This, he added, would not exceed one
sixth of the valuation of American city of
the same size and yet Manila would require
far larger expenditure than would an American
city of the same class. One considerable item
of expense for administration there would be
that Of maintaining sanitary conditions. 1t was
necessary at all times guard against the
plague. and there from $1,000 10 10000
4 lepers in the entire archipelago. These condi-
lions he explained, rendered It necessary for
the central government to bear part cf the ex-
,pense OF municipal government.
CUSTOMS REVENUE NECESSARY.
Taking up the subject OF general taxation, he
said the commission is making effort to make
the customs tariff the only source Of revenue.
And while" he said. I'VE should be glad TO
have free trade with the United States in order
10 insure the progress of agriculture, We cannot
but feel that IL it is fair to collect a tariff on
goods coming into the Philippines from the
United States # is only fair to provide for a
tariff on Philippine articles coming into the
United States In our judgment, the customs
tax is absolutely necessary, as the government
could not be supported by direct taxation. OF
course il there were customs collection on
goods coming from the United States the effect
would be to nullify all tariff collections, prac
tfcaly all the irnportations into the Philippines
would be from the United States or from Spain.
which would also be given free trade under the
peace treaty"
He said that the tariff adopted by the COM
mission is a specific duty amounting to from
Is TO 30 per cent reduced TO an ad valorem
systen, and that the effort had been to place
the higher tariff on luxury and the lower on
necessities, thus reversing the Spanish system.
Replying to a question from Senator Lodge as
10 the effect OF the removal OF the export duty
on hemp exported from the Philippines Gov
ernor Taft said that nothing could be done TO
change the conditions in that respect We can
sell 81 the hemp we can raise, he said Ihe
sugar 1 apprehend that the anxiety of for
eigners TO secure the hemp product OF the Phil
ippines has led TO the furnishing of much or
the sinews OF war Of the Filpinos."
SPECIFIC system, Governor Taft said this had
been done in order to both time and ex-
pense. Wherever Cinnamon are found" he
added. smuggling is fine art"
NEED OF CONCESSIONS.
In reply TO question from Senator Culberson
concerning the effect of placing a lower tariff
on American imports from the Philippines than
on Philippine exports from the United States,
Governor Taft explained that the commission
had devoted time TO the Dingley tariff law.
I'VE were looking solely after the interests of
- -ryS1a he o1sd and 60 te 49,