The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1913-05-12
UNDERWooD'S ESTIMATES.

The revised estimates of Chairman
Underwood of the House Ways and
Means Committee on the deficits that
will likely be faced by the Govern
ment under his revised tariff bill, are
modified materially from the first, He
estimates now that the reduction in
customs would amount to not moro
than S44,000,000, whereas heretofore
the estimates from the Ways and
Means Committee have generally put
this deficit Mt $60,O00i000 to S70.000,-
600, We think that the revised fig
ures are more apt to be correct than
the first ones, because the reduced
tariff rates viii in themselves invite
larger imports, and the larger imports
will 90 far even under the reduced
rates, to make up the difference be,
tween customs receipts now and the
receipts which would come in under
the lower rates. 1t is true, Of course,
that whatever is imported would by
so much encroach upon the industries
of this country; but President Wilson
seeks to, offset this by the statement
that we ought to seek markets abroad.
That is, we should be willing to sur
render a considerable proportion of
our home market in the hope Of get
ting foreign markets, naturally much
less worth while than our own. to
compensate. How sound this theory
is will probably be decided by the
workings of this bill.
The estimate Of but $44, 100000 re-
duction in the tariff rates would sug-
gest that there is no real need to i'm
pose any fresh taxation upon the peo-
pie, by way Of an income tax or
otherwise: for there is ample surplus
in the treasury to meet a supposed
deficit of $44, 100000, and since this
deficit is merely an estimate, it is
quite possible that it would be ma
terially cut down in the actual ope-
ration Of the law, or perhaps disap-
pear altogether.
If the operation of the law admit.
| ting sugar free of duty should prove
as disastrous as the cane sugar grow
ers of Louisiana and the beet sugar
growers of the different States fear,
closing down the industries and pro-
duct, that in itself would create. a
scarcity Of sugar and require far more
imports than ever before, and would
serve amply as an excuse for keep
ing up the price, for if the sugar in
dustry of this country should be par
alyzed there would be a tremendous
void to fill in the sugar markets of
the world The filling Of this void
would be no light matter, and would
be held as an ample excuse for the
retention Of high prices to the con.
sumer
In like manner, if the wool indus.
try of the United States were killed
that would be falt all over the world
and would be a sufficient reason to
| give to the people by the dealers III
wooden goods as an excuse why no re-
duction in prices could be made.
And so this cause is to be added
To former ones that we have given
as indicating the probability THAI
there would be no decrease in the
price of sugar or in the price of wool
en- goods by reason Of taking the tar
iff off from sugar and wool.
And so the plea that the cost Of
living is to be reduced By tho pass
age Of this bill is an evident error,
The truth of it is, that estimates
such as Mr.. Underwood makes are of
little value. Congress has not suffi.
cient information to legislate intel.
ligently upon the tariff question, and
appears determined not to get that
information, but to act on academic
or political theories that have often
been proved unsound. The only real
lesson to be derived from the revi-
sion Of estimates as given is that there
is so little known about the matter
that the need of passing any income
tax law is absolutely negligible at
this time. and should not be under.
taken. For, if the foreign industries
are TO obtain their best markets in
this country, as they evidently expect
to do under this Wilson tariff bill. it
is quite conceivable that so far from
there being deficit in customs re-
ceipts under the proposed revision, as
compared with the receipts under the
present law. there might be an in.
crease. and so the ncedlessness Of PASS.
ing any law to fill the estimated def
cit in the treasury would pass away
with the passing Of that deficit; since
if there is no deficit TO meet, SURELY
we need no added taxation, and that
is liable to be the condition that will
confront us.