The silver state. [volume] (Winnemucca, Nev.) 1909-1925, 1915-11-06
DIAMONDS BEING sMUGGLED-
GOVERNMENT PowERLEss

That the Underwood tariff rates on
diamonds have given rise to a great
deal Of smuggling which the federal
government is powerless to prevent, is
the opinion Of quite a number Of the
jewel importers Of the country.
The diamond schedule occupies an
unique position in the tariff. A dia
mond represents a very highly coneen-
trated piece Of wealth, and the methods
adopted by smugglers to beat Uncle
Sam out Of his rightful venue by
sneaking diamonds into his domain
without paying the duty have formed
the basis for many a thrilling Sunday
supplement story.
The Republican party, adopting the
practical view, has always levied a
comparatively low duty on cut dia
monds-10 per cent-on the ground
that, given the choice between paying
the low duty and running the risk OF
being detected in the act of Snug
Cling, the owners Of diamonds would
take the former. That the Republicans
were justified in taking this view j.
attested By the fact that during the
last year Of the operation of the vii
son Democratic bin, 1894, the regular
inportations entering through the Gus
tom-house ran down to 81, 100000. The
revenue collected was $4,000, under
q % per cent duty upon finished jewels
and a 10 per cent duty on the rough;
whereas for the three previous years,
Republican law when there was no
duty on the rough and a 10 per ent
duty on the finished goods, the revenue
amounted to nearly $500, 900, on the
average.
The Republican law Of 1909 retain
ed the former Republican rates and an
appreciable revenue was realized from
diamonds, but when the Underwood
law was framed, experience counted
for naught, rough diamonds were made
dutiable at 10 per cent and cut dia
monds at 20 per cent. The Democrats
gave the excuse that diamonds were a
luxury, and should carry a high duty,
and to this plea they sacrificed what
little common-sense they possessed.
DIR. Ludwig Nissen, of New York
City, than whom no greater jewel ex-
pert in the world exists, said at the
hearing on the Underwood bill: 1--WE
claim that under a 10 per cent duty
the revenues can be collected. We
claim that under a higher duty than
10 per cent it can not be collected. The
incentive for smuggling would be so
great that the government could not
possibly detect it."
DR.. Nissen presents some import fig
ures on diamonds, pearls, precious and
semi-precious stones for 1911 and 1912,
under Republican law, and for 1914
under Democratic law and normal
times. According to him our fatal i'm
ports of these goods for 1911, calendar
year, amounted to SAL, 100000, Of
which cut diamonds amounted to nearly
S26, 100000. At the prevailing rates of
duty, the government collected $780,
600. In 1912, calendar year, we i'm
prted these goods to the value of 40,
000, 900, of which cut diamonds made
up nearly $23, 900, 900, and we collected
a duty Of $4,000, 900. For each of these
years we imported nearly 100000
worth of miners' and GLACIERS dia-
monds, which came in free of duty. For
the calendar year 1914, under Demo
cratic law, imports to the amount OF
but sl9, zoo, 900 are recorded, which, at
the higher rates of duty-10 per cent
Gu miners and GLACIERS diamonds and
20 per eent on cut stones-gave US a
revenue of So 100000.
Importers of precious stones who
study the trade in its minutest details
are satisfied that the government i'm
port figures for 1914 are far from cor
rect, and that millions of dollars wortI
of stones are being Struggled in with
out the payment of a cent of revenue
When the diamond schedule was being
considered the committee gave DIR. Ms
sen assurance that steps would be ia
Zen by the government to render SNUG
Cling a thing of the past, the possibili
ty of which he seriously questioned.
1t is but another instance where tn
Republicans acted ON good advice, am
the Democrats passed it by unheede'
to the detriment of the public revenue
and the decentralization of trade.