Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-08-13
Movement to Amend Constitu-
ton Mooted In and Out of
Government Service.
TRADE REPRISAL WEAPON
AND REVENUE PRODUCER
Sooner or Later the Idea Will Be
Called to Official Attention,
It Is Said.
An export tax as a measure for reve-
NE recinrncity and renriSali

An export tax as measure Tor reVe-
nue., reciprocity and reprisaN
| Is such a tax feasible or desirable?
Would il meet many emergency con-
ditions now existing without imposing
a corresponding burden upon the
American people or cause serious and
acute controversy with foreign pow
ers?
Would it be wise to ask the American
people, through Congress. to adopt an
amendment to the Constitution revok-
ing the prohibition of the fathers OF
the nation and enabling the enact
ment of an export tax?
These are serious questions now be-
ing debated by economists and finan-
ciers in and out of the government
service. No official expression has been
given upon the subject. Nor is 1t evil
dent that the administration. in con-
sidering the problem of raising reve-
nues and other international questions,
has estimated the possibilities of an
export tax. 1t will, however, be brought
to official attention, sooner or later.
Provision of Constitution.
1t is by no means certain that an
amendment to the Constitution is
necessary as preliminary to enactment
by Congress of an export tax law. The
constitutional provision that bears on
the subject, article l, section 9, reads:
NO tax or duty shall be laid on ar
ticles exported from any state"
There has been no positive interpreta-
ton by the Supreme Court as to whether
this is an inhibition of an export tax or
is intended to prevent any state from
imposing a tax on products of the state
transported out of it, The language of
the provision is capable of construction
according to the peculiar conditions Of
the time at which, the Constitution was
written; and the provision may have had
no other purpose than to limit the power
of the individual state. reserving the
right of the federal government to i'm
pose tax on articles exported out of the
United States.
However, the general acceptance of the
provision is as a prohibition of the i'm
position of an exporf tax. No good pur-
pose would be served in passing an ex-
port tax law. without recourse to a. con-
sttfutional amendment. and then have
the law vOided by decision of the Su-
preme Court that it would be unconsti-
tutional.
Should Congress by joint resolution
propose such an amendment to the peo-
pie, it might be two years or longer be-
fore such an amendment would be
adopted. A quicker way to effect the
purpose would be accomplished should
public opinion arouse the state legisla-
lures to immediate action in favor of
such an amendment, with two-thirds of
the state indicating advocacy of the
amendment. Even so. many state legis-
latures might not be in session for some
time.
American Exports.
The total exports for the twelvemonth
period ending June 80 were valued at
2,768, ,5S9,340. The total valuation for
the preceding twelvemonth period, end
ing June 80, 1914, was $3,364,579,148,
showing a gain of $4O0, 900, 900 for the
latter period. The exports for June,
1915. were $268.547 ,416. against $157, ,072,
044 for the preceding June. compare
lively small export tax would raise hun
dreds of millions of dollars and solve the
difficulties Of raising revenues for the
government if no other phase Of the
matter complicated the situation.
AS a matter of reciprocity it is sug-
gested that products for Latin American
republics might be exempted from tax
or given a preferential rate.
Also, in the project to further trade
relations with Latin America, the possi-
bility of an export tax might be en-
ployed to persuade Latin American re-
publics to abrogate export taxes now i'm
posed and in other ways to promote the
mutual interest
The tax might be applied only to such
countries now at war in Europe who
have obstructed American commerce by
means Of Objectionable embargoes or
other measures.
The British "orders in council and
the British practice of OBTAINING Amer
ican ships and cargoes might be re-
garded, in the failure of diplomatic dis
cussion, as measures provocative OF re-
prisals The German submarine warfare
in the war zone established about the
British isles. unless discussions now
proceeding bring about better condi-
ton of affairs. might be considered In
the same category.
1t would not be hard to reach the
pocketbook of Great Britain with an
export tax, as that nation Is now our
greatest customer, spending spending r,n more or
ficiency Of the British blockade Of
German ports. however, has reduced
our trade with Germany. so that last
June the exports were valued at
s17S7. againsat 81 40 tha tweivs
months ending June. 1915. against
s344.794,276 for the preceding twelve
month period. Germany would not De
hard hit by an export tax imposed as
reprisal
Export Tax on Monopolies.
Every state of Brazil imposes an ex-
port tax on coffee, of which that coun-
try has a practical monopoly. Three
years ago. to finance the much-talked-
of scheme of valorization of coffee, the
state of Sac Paulo. Brazil. imposed a
surtax. the revenues from which went
to the bankers and not to the govern
ment. Nevertheless, great revenue is
produced from these taxes and surtax
sometimes estimated as equal to
three quarters of the entire revenues
from taxation.
Chile imposes an export tax on nj
trate and iodine, a by-product These
are practically monopolies Of that re-
public. The revenue from this source
bears a big proportion to the entire
revenues of the nation. Every nation
of South America imposes an export
tax on a number of articles, mostly
monopolies.
Canada imposes an export tax on GER
tain kinds of lumber which produces a
good income. A number of other Brit
| n1N 70