Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-08-13

modities regarded as necessary to her
Representation at this time. This In
international Importance if the rest Of
the world should suffer by the embargo
and perhaps justify reprisals under GER
tain conditions.
Great Britain, as late as 1915, had ex-
plicit export taxes on coal, wood. wool
manufactures, skins and few other
things, and a general export tax, except
on certain enumerated commodities
Against Export Taxes. ].
1t was probably the aversion Of the
American people to the export tax that
Great Britain attempted to levy on
products OF the colonies shipped out
of the country that caused the trainers
of the Constitution to look with dis
favor on an export tax and incor-
porate an inhibition in the Constitu-
tion. There was discussion, 1t Is safe
to assume, as to the possible erect OF
an export tax in injuring the indus
try of one section of the United States
to the advantage of the other sections
exempted from tax payments on their
products. But the day was too young
for a specific theory of the mad
expert economic viewpoint.
A disciple of Adam Smith, the great
British economist. first advanced a
doubt as 81 to the propriety of Expo export
every commodity sent out of the United
Kingdom was subject to such duty;
it was supposed that the duty came
out of the pockets Of foreigners, but
such ideas are now exploded"
McCulloch. British economic au-
thority of later day, presents the
grounds on which export taxes have
generally been condemned. His state
ment embodies the argument in which
economists have for the most part
summed up the whole discussion on
these duties: That they should not
be levied except in the case of coun-
try which has a monopoly OF supply
of the commodity taxed. or such an ad-
vantage in it's production as to ap-
proximate to a monopoly"
Export taxes, as imposed by such gov
ernments as do now raise revenue by
such means. are successful apparently
only when applied to monopolfes. Cof-
fee, nitrate and China silks are such.
Those who suggest the imposition of
an export tax by the United States gov
gency measure and not permanent
institution; still, they consider that the
power should vest in Congress to i'm
pose such a tax in time of like or
similar emergency as measure to
affect possible loss of ordinary reve-.
nues. AS to the wisdom of confining'
such an export tax to monopolies for
the production of revenue, instead of
QepFlVlHg american industry OF a mar
ket by raising the value of it's products
above a competitive market value, it is
pointed out that the United States has
practically monopoly of foodstuffs
and of arms and ammunitions, and of
many other commodities, representing
the great increase of export trade dur
ing the course of the present European
conflict.
Position of United States.
The thought is advanced that the posi-
ton of the United States is strategically
perfect for the imposition of an export
tax at this time. Europe must have guns
and food at any price. 1t cannot haggle
over the addition of small tax. And
the tax could be made to cover all the big
the volume Of trade.
The failure of revenues from the pres
ent tariff, the shrinkage of the receipts
from general internal revenues, the neces-
sity for war emergency tax, and for
further measures to produce means to run
the government, it is hazarded. might all
be Offset by a properly adjusted export
tax. Then it could be made commercial
weapon in the hands of the administration
to be applied to effect better commercial
relations where war measures have proved
obnoxious to this government and our
people.
To some thinkers on the subject there
producers and manufacturers would find
objection to the imposition of an export
tax, inasmuch as 1t would be applied only
to practical monopolies. and the tax be
paid by the buyer or consumer. The fear
of competition being removed. the manu-
facturer would not find his interests in
jeopardy, and would acquiesce. 1t is sup
posed.