The Owosso times. (Owosso, Mich.) 1897-1926, 1915-10-15
Fordney Doubts Accuracy of Foreign
Trade Reports.

TotoUoy OOuptS accuracy OF TorciSH
Trade Reports.
Editor Courier. Herald: OF late the
Department of Commerce has taken
every opportunity to advertise the large
balance of trade in favor of the United
States-that is, the excess of exports
over imports-but little study of the
present valuations placed on imports
and exports cannot do otherwise than
lead us to the conclusion that no small
part of the trade balance, as shown by
the Department of Commerce. is ficti-
tious.
The Underwood tariff law is now in
force. with its free trade and many ad
valorem rates of duty, and there is
every evidence that cunning importers
are grasping all opportunities to avoid
the paying of import duties by placing
values on imports far below the actual
prices. This deprives the government
of badly needed revenue but there is
some consolation in it for the Depart.
ment of Commerce, for the reason that
high values on exports and low values
on imports make favorable showing
in the governments trade statements
and helps to swell the fictitious balance
of trade.
It is reasonable to !presume that i'm.
port and export prices should slightly
differ, but that there should be very
great difference in import and export
prices of staple articles is unbelievable,
and some of the valuations recently
shown by the Department of Commerce
tax the capacity of the most credulous
mind. During the fiscal year ending
June 80. 1915, the average import valu-
alton on flour was "a SO per barrel,
while exported flour was valued at
1886 per barrel. The average import
value of cattle during the last fiscal
year amounted to $32 per head, while
the average export value was no less
than $3.50 per head. The reports show
the value of horses imported averaged
$77 per head, while horses exported
averaged $225 per head. The average
value of beans imported is given as
81 81 per bushel and the export value
at $2.9S. If the valuation of imported
cattle and meat had equaled the export
valne, 1t would have made difference
of $50, 0O0,0 600 In our balance of trade.
These are but few instances of the
glazing Inconsistencies in the valuations
of imports compared with export val.
ues given out by the Department of
Commerce in their glowing reports on
the favorable trade balance of this
country.
In tariff making, it always has 3een
a Republican contention that ad va
loren rates cause undervaluations by
importers and frauds upon the govern
ment and that specific duties should be
levied wherever practical. Under the
present law the duty on imported horses
and mules is 10 per cent ad valCrem;
while under the preceding tariff law
there was specific duty of $50 per
head on all horses imported volued at
less than $3.50 and on horses valued at
more than $3.50 an ad valorem duty of
25 per cent. During the fiscal year
ending June 20, 1918, under the Payne
tariff, the average value of horses i'm.
ported into the country was $212 That
was specific rate Of duty. Now there
is an ad valorem duty on horses and
the importer who succeeds in getting
lowest valuation on horses he imports
is called upon to pay the least amount
of import duty, and during the last
fiscal year, as above stated, the average
import value was but $77 per head
which means an average duty Of s7.70
per head was collected.
The value of imports appears 80 low,
compared with the values given on ex
ports that one is led to doubt the accu
racy Of foreign trade reports, and to
wonder how much of our balance of
trade is real and how much IL merely
fiction. J. w. FORDNEY.
Saginaw. Oct. 0.