The Birmingham age-herald., 1913-07-19
Debate on Tariff Bill
Will Be Inaugurated by
Simmons in Senate Today
fContinued from rage one)

| tention is called to the Senate provision,
designed to furnish the President with
power to impose tariff duties of re-
taliatory character upon all articles
comprised in a specified list which IL
cludes many agricultural products.
For some years." says the report in
referring to this retaliatory provision,
there has been a development In max
imum and minimum tariffs abroad, and
in not few instances the government
of the United States has been compelled
to see its citizens subjected to harsh
and discriminating tariff treatment
abroad without being able under the
law to afford relief. The tariff act of
1909 recognized this situation and es-
tablished a general maXimum schedule
of duties % per cent higher than the
general or minimum rates of the law.
This ma ximum schedule has proved en-
barrassing, clumsy and inadequate, and
the situation under 1t has been less sat
isfactory than that which previously
existed No material advantages have
been derived from it, but on the con-
trary it has stood in the way of sue
cessful commerce with other countries.
THE provision now recommended
will. it is believed. place in the hands
of the President powers which, though
extensive in their sphere, are suf-
ficent1y circumscribed to permit of their
being exerted within the limits assigned
them without disturbing tile general
fiscal system of the United States. Wise
use of the retaliatory system 1t is rea-
sonably to be expected. will bring about
equitable arrangements with those
countries, which do not now afford us
fair treatment, and it is probable that
the weapon thus provided will be sc
available and effective as to render its
actual use entirely unnecessary under
any ordinary conditions
Cotton Tax
OF another important feature added by
the Senate committee, a tax of one
tenth of | cent pound on cotton sole
through stock exchanges for future de-
livery, the report says
The committee believes the subject
matter to be one fit for the imposition
of a proper tax, not only because of it:
indirect influence in eliminating a par
asite which has afflicted the business
| of dealing in purchasesof cotton fol
| future delivery but because 1t will re
| suit in the collection of a considerabl,
sum of revenue from source which II
its usual operation produced abnorma
profits from a business that is not sus-
eeptible of just taxation in any Other
way.
THE committee is advised that since
1907, no official record of the extent
| of the dealings on the cotton exchanges
| in contracts for future delivery is ac-
| cessible to the public but reliable esti-
mates fix these dealings at about $780,
100000 bales annually in recent years
/ It seems to be the consensus of opinion
that about 10 per cent of the contracts
of sale and purchase of cotton 70,
| future delivery is embraced in that
branch of the business known as hedg.
| ing and that the other 80 per cent
| thereof is of a speculative or gambling
| character, where no delivery of the
product is ever really intended to be
made
IF the effect of The proposed tax is t.
eliminate all of the latter class of busi
ness and to leave intact that part of tn,
dealings resorted to for hedging pur
poses. the revenue derived from this ta,
should amount to about $7,OOO,00O a year
and if its imposition does not have tn,
| effect of eliminating the gambling o
| speculative end of the business the reve
nue. derived therefrom will be enormously
in excess Of this amount"
| Reduction of the basic exemption of III,
| income tax from $4,000, as in the Hous,
BILL, to $4,000 for unmarried persons. tn,
report comments upon in part as follows
BY the amendment the lowest possible
exemption to any one person would b.
$1,000 and the highest possible exemption
to any one person $5000 While the amend
ment makes no wide difference in the vol
ume of revenue derivable from the tax, i
! is deemed equitable as recognizing th
added obligations, on account of marrlag
and children and salutary as emphasiZin,
the family as the unit in our social struc
ture
'fhe changes in all the schedules ar
dealt with at length in the report. o
| agricultural products. many of whiel
would be transferred to the free list in aa
dition to those put there by the House
! the committee has this to say:
'The House bill and amendments by In
committee on finance fully recognized tn
| paramount interests of our agriculture
population by placing implements of ever.
] kind and description, fence and bailini
wire. cotton bagging and ties. low price
blankets boots and shoes. cement, nails
lumber. coal, harness, saddles, cotton gins
wagons, carts, bagging for grain, woo
and other bags, sewing machines am
many other products of daily utility on III
! free list. Our agricultural population
will share in the benefits brought abou
| by the reduction of the duties on suga
and its eventual elimination. The sub
| stantial reductions made all along tn
1 line on cotton and wooden goods. wearing
| apparel of every description on hor5ehol
| furnishings and utensils, hardware ant
| Siilllldr products oil our factories, VIII re
move considerable part of the burden o
tariff taxation now borne by the farme
| as well as the dweller in the city and tn
! laborer in the factory, fields and mines.
The sugar and wool schedules are lef
| unchanged as to free sugar and free ray
| wool. Sweeping reductions in the meta
| schedules are treated in the report witt
| considerable comment. Pig iron. ferro
manganese and other productions wer
placed on the free list by the committee
and the'report says:
''The House bill places iron ore upol
the free list mainly because 1t was foun,
that the domestic supply of iron ore wa
| largely controlled by the United State
Steel corporation and for the purpos
/ of aiding the independent steel manu-
facturers in competition with this mon
| opoly. For similar rea sons the commit
tee on finance thought the ;erro-man
ganese should also be placed upon th
free list
Concerning the general revision tn,
/ Senate committee says: 1T has sough
| In the amendments it proposes to III,
| House bill to further carry out and per
| feet the theory of establishing a reve
| nue. producing tariff upon the basis o
competitive rates, as a just and fail
J Interpretation IN the light of existing
conditions of the latest authoritative ut