South Bend news-times. (South Bend, Ind.) 1913-1938, 1913-07-19
Report of Finance Body Calls
For a Reduction of PISA
From the Present Payne
AIdriCh Schedules.

the rates of the existing Payne-Al-
drich tariff law is proposed by the
democratic Underwood Simmons
tariff bill upon which the senate be-
gan general debate today, according
% the report OF the finance commit
tee majority submitted by the chair
man, Sen. T.. NJ. Simmons
The report also shows that the bill |
as reported To the senate provides /
rates 4.22 per cent. lower than the /
Underwood bill as II passed the house |
and that from H. together with other |
government receipts for the fiscal /
year ending June 50, 1914, there will !
be an estimated surplus in the gov
eTamcnt treasury Of 5000, 600.
a salient feature of this bill. il is
pointed out. is the large increase of
imports TO be admitted free Of duty. |
Under the house bill the value of free
listed imports, on the basis Of 1912
importations, was S103, 600, 600, |
whereas the democrats OF the senate
n caucus by sweeping changes, pro-
pose to free list imports valued at
S147.367. 000, an increase in undutia-
BILE imports over the house bill OF
$53,367,0OO.
Will Leave Balance.
Upon the basis Of ten months for
the coming fiscal year, the report es-
Inmates that the receipts from Gus
$266,73O,0OO, from income tax for ten
months $5S, 100000; corporation tax,
$4,000 600; internal revenue, includ-
ing tax on cotton futures OF $1,000
600. S297,7OO,00O, and that the rev.
enue from all other sources will bring
the total for the fiscal year to $685.
$4,000. With disbursements esti-
mated for the committee by treasury
experts at 1894. 100000, a balance is
shown in favor Of the government of
S2,020.0O0.
IN analyzing it's changes in the
house administrative features of the
bill. the committee deemed the
amendments of the house entirely too
drastic" particularly those authOriz-
ing examination of books of foreign
manufacturers "A per cent. tariff dis
count on imports in American ships
and other like features which were
stricken out Particular attention is
called to the senate provision, "desig-
mated 10 furnish the president with
power 10 impose tariff duties OF a re-
taliatOry character upon all articles
comprised in "A specified list, which
includes many agricultural products.
offered No Relief.
For some years" says the report.
in referring TO this retaliatOry prOvis-
ion, there has been a development
Of maximum and minimum tariffs
abroad, and in not few instances
the government of the United States
has been compelled 10 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 established a general
maximum schedule of duties % per
cent. higher than the general or min
imum rates of the law. This maxi
mum schedule has proved embarrass-
ing, clumsy and inadequate and the
isfactOry than that which previously
existed. No material advantages have
been derived from It, but, on the con-
traTy II has stood in the way or sue
Cessful commerce with other coun-
tries. The provision now recommend
ed will, il is believed, place in the
hands Of the president powers which,
though extensive in their sphere, are
sufficiently cirCumScribed to permit
OF their being eXerted within the linn
it's assigned them without disturbing
the general fiscal system of the Unit
ed States.
Wise use of the retaliatory power
will. il is reasonably 10 be expected
bring about equitable arrangements
with those countries which do not now
afford us fair treatment and II Is PROB
able that the weapon thus provided
will be so available and effective as tC
render its actual use entirely unpeces-
sary under any ordinary conditions
Tax ON Cotton Futures.
OF anOrher important feature added
by the senate committee. tax OF
one-tenth of one cent a pound or
cotton sold through stock exchange:
for future delivery. the report says
THE committee believes the sub
jeCt matter TO be one fit for the i'm
position of a proper tax, not only be-
cause OF its indirect influence in elm
mating a parasite which has afflicted
of Il inc N "a -
of cotton for future delivery, but be
cause II will result in the collection OF
q considerable sum of revenue from Z
scarce which in its usual operation
produced abnormal profits from
business that is not susceptible OF JUS
taxation in any other way.
THE committee IS advised tina
since 1907 no official record Of tbs
extent of the dealings on the cottoI
exchanges in contracts for future de
livery is accessible to the public, bu
reliable estimates fix these dealings a
about 130.00O.O00 bales annually IL
recent years. 1t seems TO be tne con
census OF opinion that about ten pc
cent. Of the contracts OF sale and pur
chase of cotton for future delivery Il
embraced in that branch OF the busi
ness known as hedging and that tn
other % per cent. thereof Is OF spec
1t.a1vc or gambling character. wher
10 delivery OF the product is eve
req intended to be made.
IT The effect OF the proposed Ia
&c "a eliminate all Of the latter class o
Nuss,.ess and TO leave intact that par
or dealings resorted 10 for hedging
f..r3oses. tbs revenue derived from
this tax should amount TO about 81.
OO3.e coo a year and If its imposition
oo.s no. have the effect OF eliminat
inS tEe gambling or speculative end o
tEc business the revenue derived
sherefrom will be enormously IN ex
cess II Inis amount"
deduction OF the basic exemption
from income tax from $4,000 as IL
the house oNl 10 $1,000 for unmarrie'
persons and The consequent rearrange
ment OF this, the report comments a
follows
Committee Reports
Your committee reduces tn
amount OF exemption Of net incom
70 $4,000 and allows on account q
marriage an additional exemption o
70 "a ha ha husband VIII