The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-03-17
May PLACE A DUTY ON COFFEE
REPgBLICANS CONSIDER MEANS
TO WIFE OUT THE DEFICIT.

Thsy Think n a Political Necessity to DO
II Before the Next Electon-It II
Also Proposed 70 Encourage the Gull
ture or Coaee in the Philippines.
WASHINGTON. March i6.-There Is a stron &
probability that at the next session Of Con-
Fress email duty will be placed on coffee.
Republican leaders have been quietly dis
erssinR among themselves what they re-
gard as the imperative political Necessity
~ overoominC, before the next Congress
election. the ds6oit now facing the coun-
try. They do not wish to 20 before the
ueope With an ugly dehcit. as they know
h would be an extremely didicult task to
srolAin why there should be a treasury
deficit in view Of the enormous revenues
Of the country and the general prosperity.
The ordinary expenses Of the Govern
u1ent will naturally increase during the
ret two years, and the leaders cannot hope
toenfarce next session the Spartan economy
which prevailed last session in the face Of a
popular demand for public improvements.
Therefore. the leaders agreed. the only
wav the deficit could b overcome was by
increasing the revenues The question then
arose az 10 how thiscoul be accomplished
whether BY increasing the internal revenue
tAxes OF the customs duties, or by the inn
position Of documentary or stamp taxes.
Objections were many 70 all these PROPOSE
tons.
The attention Of members Of the Senate
Committee on Finance and Of the Ways
and Means Committee then naturally turned
to coffee and tea a. taxable possibilities,
aud oartain suggestions made to the Ways
and Means Committee during the hearings
on the Curtis bill 10 reduce the duties on
Philippine tobacco and sugar afford what
many believe viii Be an effective answer 10
any charge Of 'tSxing the poor mans coffee
pot
This suggestion was that, instead Of en-
oouraging the Philippines TO compete with
American sugar and tobacco interests by
giving then free entry 10 our markets, they
should he encouraged 10 produce sub
tropical products, which can never be
raised IN the United States. and which are
nov imported IN large quantities from sub
tropical countries that take very little from
Ne In return Rubber, spices and hbres
we're mentioned, but especially coffee, OF
which this country imports immense guam
titles. An Of these articles, it was repre-
santed, could be produced IN our own pos
sessions, Porto Rioo and tho Philippines.
10 vas argued that by the imposition Of a
shght tariff on foreign coffee and admitting
coffee from American possessions free the
attention Of the Philippines could be diverted
10 . highly profitable industry which would
not interfere in any way with any Ar erican
industry. Meanwhile, as II would ~ ,
some years to develop coffee growing IN
the Islands, tho duty would Tsiss large
suus Of monsy--sGSrA- tls- desired rCsief
for the United States Treasury and be Of
iDestimahle assistance TO Porto Rico
since Il IL now considered imperative
that some such messure be iadopted, the
srg1ments have been considered by the
Senators and the members pf the wsys
and Means Committee and lare meeting
with much favor. II is argued that, in ad-
dition to relieving the Flipihos and the
Porto Rlcans and. above ALL the United
States Urea sury, an ugly contest with tho
beet sugar and domestic tobacco interests
may thus be averted.
Secretary Taft is to take a party Of Sena-
ions and Representatives % the Philippines
this summer. among them Speaker Cannon,
Representative Payne, chairman OF the
Ways and Means Co mittee. and other
members Of that committee. II Is proposed
that these gentlemen shall study the posi-
bilities Of coffee culture in the islands while
there and it n expected that they will en-
thuse over the prospects.
In 1871 Congress repealed the duty on
coffee in compliance with a general public
demand. Brazil Immediately imposed an
export duty and transferred tSOOO,OOO per
year from the United States Treasury into
hers, and the price Of coffee remained the
same. since then, it Is argued, the United
States has lost on Brazilian coffee alone
1904 500 $50 in revenue, while the Brazilian
trade balance against the United States dur
ing that period has aggregated 81 ,S2s, t67 $40
France raises heavy amount Of revenue
by q duty on coffee Of almost IS cents a pound;
Italy taxes It almost as much as France
Germany at the rate Of cents; while England,
Austria and other countries derive large
revenues from this source. The United
States the greatest coffee consuming nation,
alone derives no income from this article.
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