The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1909-07-13
REVENUE FROM TOBACCO

, ues' would be to impose no tar
"~hateVer, and permit it's unrestrio.a1
: sale just as wheat and corn ana
: ION are sold and manufactured r..
iic'iohs impede ready sale. the to-
mas a tendency to induce fewer
20 manufacture it, and of
more would b. used if if uero
"Ietner the last is to be desired -
doubtful. -
Mr. Beveridge's study of the onas-
ton has furnished much valuable f.,
ioTmatlon. He shows that Amcrio,
which gets $4,000, 900 a year fron,
the tax on tobacco, is getting m,,b
less from his source than any r.,
opeah country. On the basis of en-
5 eonsemptlon in the Unite,F
states the statistioi,,.
nave calculated for Mr.. Beveridoa 49,,
II we imposed the taxes applied in -.
Ohlted the tobacco reyan,.o
would amount to $3.50, OOO, 900 inste,a
OF SoO,OOO,O 900; to s4~36,5s5.OOo if tho
french rates Of taxation or charoo
were applied; and to $447,675,0 0 if
me 1tallan rates were imposed. Ha
THINKS that such taxation wou1d afaa+
very little the use of tobacco. bnt tba
1act that European countries nsa $50
Inuch less tobacco than Americans
aces not bear out Mr.. Beveridge's view
Inc price is higher there: the CON
is smaller. Many Amari-
cans nave grown SO used to tobacco
tnat they regard it in the nature of "a
much a necessity as coffee or tea and
with many is not this true?
Mr.. Be~veridge thinks that tba j.,
creased tax he has secured will ho roi,
ny the tobacco trust. That view is
iatural TO one who has been taught
Tie laIse notion that the foreiener
pays the tax If the FOREIGNER navs
the tarlff tax, the trust will paw the
tax on tobacco. But sound economy
teaches that ultimately the consumer
every tax and every cost on what
ever he buys. 1t is the Same WOW
with TOBACCO. Ultimately every cost
goes on the price of the article. II
sometimes happens, however. when d
IS reduced on an article controlled
py 2 trust that the consumer does not
benefit by the reduction. IF there ia
competition, the consumer does GET
the benefit; it there is no cOmpetiton
1t is denied him. Mr.. Bever;dge shows
oy 1acts that cannot be contr0verted
nat the reductions in the tobacco tax
olloWl the Spanish-American war.
III went into the pockets of the tobac-
20 trust and that the trust, by reason
u us monopoly, kept up the higher
prices and smaller packages after the
ak was reduced. The. reduction.
therefore, was equivalent to making !
present of millions of dollars to the to-
)acco trust.
Inc trust will not pay the increased
but will shift that tax Gin the CON
u1ner. Just as surely as water seeks
5 leFel must the consumer ultimately
ay every tax and every cost, and he
lust also pay a profit on every tax
cost. If Mr.. Beveridge's plan to
1t the trust is by raising the tax he
III 90 1t no harm. It cannot be
7ached that way. 1t prefers that the
TX remain at six cents. Having
ocketed millions by the last decrease,
1e trust prefers no change, but it may
? well understood that it will d the
eW two cent tax to the cost of its
roduct. If Mr.. Beverage wishes to
, after he trust, he must use some
.her Weapon than the two cent tax.
Inc only defense of a tax on tobac~
is that it may relieve the tax upon
othlng, shoes, food, and like neces-
ties for the family. In the Aldrich
the trainers had no thought of
ducing the necessities. Not one has
reduced appreciably. The cor
ration tax and the tobacco tax were