Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1910-11-21
QUESTION OF TARIFF MEASURE
FOR REVENUE ONLY NOT DIS.
TuRslna TO BUSINESS.
HOUSE DEMOCRATS CONFRONT
Ed WITH BIG EXPENDITURES
Needs Of the Government So orSat
That Heavy Taxation 10 Required
Internal Revenues to % Increased
Wooden and Sugar Schedules in Line
For Revision.
Especial Correspondence.l


does not appear to be terrifying. or to
imperil American industries, in the
opinion OF members of the tariff board
who have been looking into the general
question OF tariff revision since the re-
cent congressional elections. 1t was
pointed out today by member Of the
board that in writing bill on the basis
of q tariff for revenue democratic
house would be confronted with the
problem of raising SO much money for
the ordinary needs of the government
that protection to practically every
American industry is certain to result,
with few exceptions.
1t is the general expectation that the
wool schedule will be one of the first
attacked by the democratic house and
that raw wool will be put on the free
list. The report Of the secretary OF
the treasury for the fiscal year 1907
shows that the duties collected on raw
Voc! for that year amounted to $16,-
100000. If congress should put wool on
the free list ii would have to find some
other source of revenue to compensate
for the loss Of approximately that
amount of money in the opinion Of the
members of the tariff board.
Sugar Schedule, Too.
Another schedule which seems des-
tined to be overhauled at the earliest
POSSIBLE moment is the sugar schedule.
the greatest revenue producer in the
tariff law In 1907 the government col
lected about $60,000000 in duties on
sugar. From the manufactures of cot
ton on the same year s3a,000,0O0 was
collected: iron and steel duties Melted
about $12,00O.000: silk duties produced
$20.0O0,000: tobacco S26,000,0OO. and
wines. malts, etc. SIG 100000. All OF
these schedules. it is pointed out. will
be objects of attack at the hands of the
democrats. 1t is suggested, however.
that in order to raise sufficient
amount Of money to run the govern
ment the democrats would be confront
ed with three problems: First. read
iustment of existing law with a view
to eliminating "jokers' and other OBJ
jectionable features about which the
country has been protesting; second,
an increase in the internal revenue
taxation in the event that the tariff law
fails to raise sufficient amount OF
money. and third, deficiency.
luxuries Must Bear Burden.
Tariff experts in the treasury depart
ment who are daily engaged in assemb-
ling information on which congress can
base its next revision of the tariff have
come to the conclusion that the heav-
lest burden OF taxation Will have to be
placed on articles Of luxury in order
to compensate for the reduction in
schedules which include necessities. 1t
also is pointed out by these experts
that it may be found necessary to place
a purely revenue tariff on articles
which now come into the country free
of duty Tea and coffee are mentioned
as illustrations in this connection. The
mere suggestion during the last revis-
ion Of the tariff that tea and coffee
might be placed on the dutiable list
brought forth protests from all parts
of the country. and vet even most
nominal duty on these articles would
produce an immense amount Of reve
rue.
Among the luxuries liable to heavily
increased taxation are precious stones.
Under the Payne Aldrich law precious
stones are taxed but 10 per cent. while
jewelry bears duty of go per cent.
The theory on which this discrimina-
ton was made was that to bring the
precious stones to this country unset
at an extremely low duty would en-
courage the American jewery industry.
the 60 per cent duty on jewelry giving
the American manufacturer a big adj
vantage over his foreign competitor.
Increase Of Internal Revenue.
In these days of billion dollar ses-
sions Of congress the possibility Of in
creased internal revenue taxes,-the
most direct form Of taxation we have
is not to be lost sight OF. in the opinion
OF the tariff experts. Two-thirds Of
the revenue now raised by the govern
ment comes from customs duties, and
about one third from internal revenue.
In 1907, which was a banner year, Gus
toms duties netted the government
100000 while the internal revenue
tax produced about 269.000.0O0 Mis-
cellaneols collections produced about
s50,000,000 more. With congress prac-
tically committed to billion dollar
session it can readily be seen, there
fore, that when the democrats reduce
the duties in one Of the big revenue
producing schedules they must make
it up somewhere else. It is in this
connection that the suggestion is made
that tariff reductions. properly adjust
ed, will produce much greater revenue
than can be derived under the present
protective system. The cotton and
wooden schedules are cases In point.
Both of these schedules are protective
to the textile manufa cturers in the
highest degree. 1t Is believed that
careful and systematic reductions will
permit the introduction of certain
grades of goods which are now kept
out by prohibitive duties. Nominal
duties on these grades would not only
compensate for the losses sustained in
other directions but also would bring
about competition between the Ameri-
can and foreign manufa cturer with
probable benefit to the ultimate con-
sumner.
Investigations into the cotton and
wooden schedules, altho as yet far from
complete. lead to the belief that an ap-
plication Of the democratic theory Of
tariff for revenue only applied to tho
various paragraphs would still give the
American textile manufacturers Z fair