The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-07-19
SENATE RECEIVES
ADMINISTRATION
TARIFF MEASURE
fCont,nued From First Page. /,

lHlli |! mLhOUh[
tcont'nued From First Pagn.,
taiiatory character upon all articles
comprised in n specified list" which
Includes many agricultural products.
For some years" says tho report.
In referring to this cctalintory pro
vision. there has been = DEVELOPMENT
OF maximum ana minimum tarifrs
abroad, and In not few .nstances the
government OF the United States has
been compelled to see its citizens sub
jected to harsh and discriminating
tariff treatment abroad without boing
able under tho law - afford relief
The tariff act OF 1909 recognized this
situation and established general
maximum schedule of duties % per
cent higher than the general or mini
mum rates of the law. This maximum
schedule has proved embarrassing.
clumsy, and inadequate. and the sit
uation under il has been less satlsfac-
tory than that which previously
existed. No material advantages have
| been derived from 1t. but, on the CON
trary. 1t has stood In the way of sue
cessful commerce with other countries.
Powers of President.
The provision now recommended
WILL 1t is believed. place in the hands
OF the President powers which. though
extensive in their sphere are sufficient
ly circumscribed TO permit OF their
being exerted within the limits as
signed them without disturbing the
general fiscal system OF the United
States. Wise use of the retaliatory
power Will. ii is reasonably to be ex-
pected, bring about equitable ar
rangements with those countries
which do now afford us fair treat
ment and it is probable that the
weapon thus provided will be so avail
able and effective as to render its
actual use entirely unnecessary under
any ordinary conditions"
or another important feature added
by the Senate committee, tax of
one-tenth of / per cent pound on
cotton, sold through stock exchanges
for future delivery. the report SAYS:
The committee believes the subject
matter to be one fit for the imposition
of proper tax, not only because of
its indirect influence in eliminating
parasite which has afflicted the bust
ness OF dealing in purchases OF cotton
for future delivery, but because 1t will
result in the collection of a consider
able sum of revenue from a source
which. in Its usual operation. produced
abnormal profits from n business that
Is not susceptible OF Just taxation in
any other way.
The committee is advised that since
1907 no official record OF the extent of
tho 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 13O-
oOo.00 bales annually in recent years.
1t seems to be the consensus OF opinion
that about 10 per cent of the contracts
OF sale and purchase of cotton for flu
ture delivery is embraced in that
branch of the business known as hedg-
Ing, and that the other 90 per cent
10 NJ II, 4
character where no delivery OF the
product is ever really intended to be
made.
If the effect of the proposed tax is
to eliminate all of the latter class of
business and to leave intact that part
| OF the dealings resorted to for hedg ing
| purposes, the revenue derived from tn is
tax should amount to about $1,000, 900 a
year and II It's imposition does not have
the effect OF eliminating the gambling
OF speculative end OF the business. the
revenue derived therefrom will be
enormously in excess of this amount"
The Income Tax.
Reduction of the basic exemption
from income tax from $4,000, as in the
House bill. to $4,000 for unmarried per-
sons. and the consequent rearrange-
ment OF this, the report comments upon
as follows:
Our committee reduces the amount
of exemption of net income to $4,000
and allows on account of marriage an
additional exemption OF 81 600 to either
the husband or wife, where they are
living together but not of both. In
the case OF a minor child or children
living with and dependent upon the
parent. such parent is allowed an adj
ditional exemption OF 5000 for one
minor child and up 10 $1,000 on account
OF minor children, except where both
parents are taxable. in which case no
exemption is allowable on account OF
children. By the amendment tho low
est possible exemption to any one
person would be $4,000. and the high
est possible exemption to any one per-
son $4,000. While the amendment may
make no wide difference in the volume
OF revenue derivablo from the tax, il
Is deemed equitable as recognizing the
added obligations on account of mar
riage and children. and salutary as en-
phasizinG the family is the unit in our
social structure"
The changes in all the schedules are
dealt with at length in the report OF
agricultural products. many OF which
were transferred to the free list in
addition to those put there by the
House. the committee has this to say:
The House bill and amendments
made by the Committee on Finance
fully recognized the paramount intcr-
ests or our agricultural population by
placing agricultural implements OF
every kind and description, fence and
baling wire. cotton bagging and ties.
10 priced blankets, boots and shoes,
cement. nails. lumber. coal, harness,
saddles. cotton gins, wagons carts.
haeGing for grain, wool and
other bags. sewing machines, and
many other products of daily util-
ity on the free list. In common with
the rest OF our people. our agricultural
population will share in the bcncNts
brought about by the reduction of the
duties on sugar and it's eventual elm
nation.
The substantial reductions made all
along the line ON cotton and WOODEN
goods wearing apparel of every de-
Ecripiion, on crockery. household fur
n:shl06s. ard utensils, hardware. and
s!m!!er r, ducts of our factories, Will
roncNc :. considerable part of the bur
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