The Barre daily times. (Barre, Vt.) 1897-1959, 1913-07-18
TARIFF CLUB
is PROVIDED
To Be Used by President as
Retaliation on Other
Countries
NEW TARIFF BILL
IN SENATE TO-DAY
Would Lower Rates of the
Underwood Bill by
4.22 Per Cent.

Washington, d. c., July ls.--An aver.
age reduction of 27.64 per cent. under the
rates of the existing Payne.Aidrieh tar
i'll law is proposed by the Democratic
Underwood Simmons tariff bill upon
which the Senate began general debate
to-day, according to tire report of the
finance committee majority submitted
by the chairman, Senator F. NJ. Sim
mons.
The report also shows that the bill as
reported to the Senate provides rates 4.22
per cent. lower than the Underwood bill
as it passed the House and that from it
together with other government receipts
for the fiscal year ending June 30, 1914,
there will be an estimated surplus in
the government treasury of S2020000.
] A salient feature of this bill, it is
pointed out, is the large increase of i'm
ports to be admitted free of duty. I'm
der the House bill the value of free listed
| imports, on the basis of 1912 importa.
tions, was $l03000000, whereas the
| Democrats of the Senate in caucus, by
| sweeping changes, propose TO free list inn
ports valued at $l47 1867 900, an increase
in undutisble imports over the House
bill OF s43,367 600.
| Upon the basis of ten months for the
coming fiscal year, the report estimates
| that the receipts from customs alone
4 under the new bill will be S266, ,730, 900;
/ from income tax for ten months, $685.
| 100000; corporation tax. S37 100000; in
| ternal revenue, including tax on cotton
futures Of S5,000000, $297 100000, and
that the revenue from all other sources
will bring the total for the fiscal year
to $g66sl 900. With disbursements, es-
/ timated for the committee by treasury
experts at S994,09o000, a balance is
shown in favor of the government of
81. 100000.
In analyzing its changes in the House
administrative features of the bill. the
committee deemed the amendments OF
the House entirely too drastic partcu-
larly those authorizing examination OF
books Of foreign manufactures. five
per cent. tariff discount on imports in
American ships and other like features
which were stricken out.
A Tariff Club.
Particular attention is called to the
Senate provision designated to furnish
the president with power to impose tar
i'll duties Of retaliatory character upon
all articles comprised in a specified list
which includes many agricultural prod
ucts.
For some years" SAYS the report in
referring to this retaliatorv provision,
there has been a development of maxi
mum 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
aroad without being able under the law
to afford relief. The tariff act OF 1909
recognizes this situation and established
a general maximum schedule of duties
twenty-five per cent. higher than the
general or minimum rates of the law.
This maximum schedule has proved en-
barrassing, clumsy and inadequate, and
the situation under it has been less sat
isfactory than that which previously ex-
listed. No material advantages have been
derived from it, but, on the contrary.
it has stood in the way Of successful
commerce with other countries
ne pTONlsiOH now recommended Will,
it is believed, place in the hands Of the
president powers which, though exten-
sive in their sphere are sufficiently cir
cumscribed TO permit OF their being ex-
erted within the limits assigned them
without disturbing the general fiscal sys-
tenn of the United States. Wise use Of
the retaliatory power, will, it is rea
sonably to be expected, bring about
equitable arrangements with those coun-
tries which do not now afford us fair
treatment, 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 ordi-
nary conditions
Tax on Cotton Futures.
OF another important feature added by
the Senate committee, a tax of one
tenth of one cent pound on cotton sold
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 its indirect influence in
a parasite which has afflicted
the business of dealing in purchases of
cotton for future delivery, but because
it will result in the collection of con
sum of revenue from a source
which in its usual operation produced
abnormal profits from a 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
the dealings on the cotton exchanges in
contracts for future delivery is acces-
sibe to the public, but reliable esti-
mates fix these dealings at about l30,-
100000 bales annually in recent years. !
Tt seems to be the concensus of opinion |
that about ten 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 hedging and |
that the other ninety per cent. thereof
is of speculative or gambling charac-
ter, where no delivery of the product is |
ever really intended to be made.
'1f 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 hedging |
the revenue derived from this !