The Washington times., 1909-03-25
Complaints Pour In From
Every Section From All
Classes.
TAX ON COFFEE
PUZZLE TO ALL
Probable Effect of Retaliatory
Duty Not Explained BY
Tariff Authorities.
By 7. c. WELLIVER.

The chief complaint which is being
urged against the Payne tariff bill as 1t
stands today is based on the charge that
it does not give due consideration TO the
interest OF the consumer.
That complaint comes from every sec
ton of the country, and from all classes
of people.
1t comes from the East and from the
West; the North and the South; from
the people who wear wOolens, and those
who drink coffee; from the women who
wear gloves, and from those who drink
tea. II is heard on behalf Of the prairie
farmer who must have lumber, and the
housewife who learns that numerous
articles she buys day by day are being
ciassed as luxuries. and. therefore, are
assumed to be properly subject to rev.
enue duties.
The discussion of the bill has just
fairly begun, and II has developed evil
dence Of a decided lack Of definite in
formation about the relations which
particular schedules Will have to the
prospective cost of living. This lack Of
specific Information is complicated in
several important schedules with that
which appears, at least, to be a desire
TO favor interests which are powerful
and commonly believed to seek protec-
ton as shelter to monopoly.
Provision Undigested.
/ The exact effect, for example, Of the
| coUntervailing OF retaliatory duty on
coffee. does not seem thus far TO have
/ been digested by anybody. There IS a
wide difference of opinion between peo-
pie who pose as authorities. as 20 the
( effect on the price Of coffee which Will
/ he produced if the bill passes with this
( provision.
/ The measure provides that IF any
! country, dependency, province, or colony
shall impose an export duty or other
I export tax or charge Of any kind what
{ soever, directly or indirectly, upon comee
] exported TO the United States, duty
/ equal TO such export duty. tax, OF
/ charge shall be levied, collected, and
paid thereon"
In the first place, there is difference
I OF opinion among the authorities as TO
Z the character and amount OF such eX-
port or other duties imposed by other
/ countries on coffee One authority gives
. the following figures. It ought to be
reliable, because IL is quoted from a
/ leading CCffee importer.
/ Brazil Rio, Is cents per ID.
SantOs-SaO PaulO, - cents; with an
/ additional I'D valOrem tax levied under
/ the valorizatiOn scheme Of that prov
ince, amounting 10 about 1 1-3 cents per
. pound.
Opinions Differ.
Whether these two items must be
added together TO determine the amount
Of import tax which would be levied at
United States ports, or whether the lat
ter item would not be included. IS the
/ subject Of some difference Of opinion.
If these figures are correct, and If, as
is commonly believed. the two items
must be added together. then the total
tax on coffee from Sac Paulo would be
almost 4 cents per pound; and Sac Paulo
produces half the worlds coffee. and
the bulk Of that used In the United
States.
Victoria is credited with an export
tax Of q cents per pound, Guatemala,
cent: Venezuela, 40 cent; Nicaragua, Z
cent; Salvador. % cent Haiti, cents
when it is remembered that the val
oTizatiOn scheme Of Sac PaulO is an
extremely nitric ate affair, financed by
European and American capital, which
is also intimately concerned in the cur
rent speculation in coffee. II becomes
apparent that there is every reason
why the utmost care should he taken
10 know exactly what the workings OF
such a provision viii be.
Limits Supply.
The story Of the Brazilian coffee
monopoIy has been told many times
Briefly, the Sac PaulO plan is TO limit
rightly the production Of coffee, The
acreage that may be planted 10 1t, and
the amount expo rted in a given year
II is the worlds great coffee country
and could easily produce all the wort
now uses. The government undertook
10 organize 4 monopoly In order Il
force prices TO a satisfactory figure.
In the operation Of financing this
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