The Savannah morning news. (Savannah, Ga.) 1900-current, 1903-07-12
EVIDENCE OF PROSPERITY.
Great Increase in Importation of
Diamonds.

Diamonds.
Washington, July lin no way is
the prosperity of the United States
more strikingly illustrated than by the
enormous increase in the importation
of diamonds and other precious stones
during the last few years. In fact the
records of diamond importations fluc-
tuate so completely in harmony with
the fluctuations in the prosperity of the
country s~to afford an excellent ba-
rometer of commercial conditions.
Prior to 1887 the total value of dia-
monds AMI other precious stones inn
ported in a single year never exceeded
100000 per annum. During the pros
porous years from 1887 to the panic
year of 1898 the total gradually in
creased until it reached $16.00OO00.
Then there was a sudden drop to So
100000 in the fiscal year 1894, and in
1896 the total value of importations was
only 100000 Since that date. with
the growth of prosperity there has
been a steady increase until in 1901 the
total value of the diamonds and pre-
cious stones imported was $40, 900 600;
in 1902, the total was $23,000,000, and
when the final returns from all ports
for the fiscal year which ended on June
30 this year, have been received the
total will amount to the enormous sum
| of 10000, 900.
AS comparatively few precious stones
are exported, and as those brought into
the country are preserved with such
care that few of them are lost. it will
be seen that there has been an enor-
nous increase in the stock of precious
stones in the United States during the
last three years. Allowing for the
profits of the importers. diamond cut
tiers, and jewelers., a conservative esti-
mate would place the amount of money
expended by the American people for
precious stones in the last three years,
at 100000, 900. This is without taking
| into consideration the value of the gold
in which the jewels have been set.
BY far the greater proportion of pre-
| cious stones imported are diamonds,
and the importations of these stones
| alone during the last fiscal year
appointed to a value of about s2e000,-
900. OF these nearly one-half were I'M
cut diamonds, a much larger proper
ton of uncut stones than in any pre-
| ceding year. This shows that the in
dustry of cutting diamonds is devel-
Oping very rapidly in the United
States. Ten years ago practically all
of the diamonds imported had been cut
abroad as is shown by the fact that
in 1890 the census reported the total
| value of the products of lapidary work
in the United States at less than $780,
| 900.
Large as are the figures given above
of the values of diamonds and other
| precious stones imported into the
| United States, there is no doubt that
they fall considerably below the truth,
for while diamonds and other precious
stones, rough or uncut, are admitted
| free of duty under the Dingley act,
| the duty of so per cent. ad valorem on
| set stones and of 10 per cent. ad val
orem on cut stones not set affords
powerful incentive to the smuggling
of precious stones of all kinds, and es-
pecially diamonds. These articles are
so small in comparison to their value
| and are so easily concealed that the
| ingenuity of the customs inspectors,
| special agents of the Treasury De-
partment and other customs officials
his taxed to the utmost in detecting
| fraudulent importations The snug
| Cling of diamonds is not confined, by
| any means, to persons engaged in the
| trade, but every year thousands of
| tourists attempt on their return from
| Europe to bring in diamonds in guam
! titles all the way from a single small
stone to complete necklaces of enor-
nous value, and some of them are
successful in spite of the sensational
| seizures occasionally made by the
| treasury officials.
The ease with which diamonds can
be smuggled accounts for the compar-
| atively low duty on the cut stones not
set. 1t was realized by the trainers
| of the tariff law that If the duty was
put up to anything like the 60 per cent.
| imposed on set stones, the smuggling
of diamonds would be carried on on
such a scale as to reduce the amount
of revenue that would be obtained, and
| to place honest importers at the great
disadvantage in attempting to COM
pete with INSCRIPTIONS smugglers 1t
| was this consideration that led the
trainers of the Wilson act TO place all
diamonds on the free list. This con-
sideration also led to the total aban-
donment of all efforts to collect rev.
enues from duties on diamonds and
other precious stones in the neighbor-
ing Republic of Mexico. Until COM
paratively recent years the Mexican
government undertook to collect duties
on the importations of diamonds. It
was found, however, that the govern
ment was getting no revenue, but that
| all the women of any wealth in the
republic were wearing diamonds. An
investigation was set on foot, which led
to the most astounding results. 1t was
found that ladies connected with the
most prominent families even those of
cabinet officers, were implicated in
schemes for bringing diamonds into
the republic without paying duties. In
order to avoid the scandals that would
have resulted from disclosures the
whole investigation was quietly drop
ped and diamonds and precious stones
were placed on the free list. The con-
sequence is that jewelry and precious
stones of all kinds can be purchased
much more cheaply in Mexico than in
the United States. and there is reason
to believe that, owing to the difficulty
of guarding the long and sparsely set
tied frontier. considerable smuggling
into this country from Mexico is nov