Evening star. [volume] (Washington, D.C.) 1854-1972, 1916-12-31
MAY TAX WOOL,
RUBBER, COFFEE
Suggested Increase in Duty on
Sugar Also Discussed by
Revenue RaiSerS.
MEANS TO AVERT DEFICIT

Duties on wool. rubber and coffee
and an increased duty on sugar as
means of averting the threatened def
icit at the close of the next fiscal year
are under consideration by officials of
the Treasury Department. it was
learned last night. Wool, rubber and
coffee are at present on the free list
1t is understood that the plan to in
crease revenues now being formula ted
by Secretary McAdoo will be submitted
to the President for his approval, and
that it will be laid before the congress
sional leaders within a few days after
Congress assemblies this week
Position of Department Officials.
The tariffs under consideration by
Secretary McAdoo and his assistants
are understood to be nominal and de-
signed to provide revenue only, and
are not designed to protect American
industries. Rates sufficiently high to
amount to protective tariff are said to
be opposed by the department officials
and by democratic leaders in Con-
gress
indications are that the proposed
duties on the basis of weight and quail
ity, rather than on an ad valorem
basis The latter method has disad-
vantages which are not found in the
former. it is said, and in addition would
involve higher collection cost.
Rubber and Coffee Imports.
The tremendous volume of importa-
tions of rubber and coffee would fur
nish. even at a nominal tariff. consid-
cradle revenue. officials declare, and
would distribute the burden of taxation
upon virtually every one in the ma
ton Statistics showing the volume of
imports of these materials and of
sugar and wool have been studied
closely by officials with view to as
certaining the extent of the tariff to
be recommended. In the case of wool,
which would provide a smaller revenue
than any of the other articles under
consideration. slight advance in
pace with the advance in raw wool
might also be suggested.
Amount of Revenue.
How much revenue would be pro-
vided by proposed tariff changes, off,
cials frankly admit. can be determined
only by experiment Alone. it hardly
would be sufficient. they feel, to meet
the deficit. The Treasury Department
officials estimate this at $780, 900,
as against an estimate of $300. .000. 600
made in Congress. Revenue obtained
through the proposed tariffs probably
would go to meet continuing expenses,
and expenses due to emergency-such
as that of ordering the National Guard
to the border and maintaining it there
would be met through the sale of
Panama Canal bonds, understood to
have been approved by the President.
Select Raw Materials.
In selecting rubber. coffee. sugar and
wool as the bases of consideration Of
ficials were prompted by desire to
impose whatever tariffs may be neces-
sary only upon raw materials. Iron
and steel are understood to have been
eliminated from consideration, as well
as iron ore. because 1T was felt that
to disturb existing conditions in that
industry would be .tantamount to up
setting the situation in a trade of enor-
nous proportions, at present delica tely
adjusted. Manufactured goods, it is
understood, virtually have been elimi-
mated from consideration through the
desire to place the burden on raw ma
terials only.
Stamp Taxes Unpopular.
No return to the recent stamp taxes
is contemplated in the administration
program, officials assert. The unpopu-
larity of this form Of taxation was fully
demonstrated, it is felt. in the opera
tion of the emergency revenue legisla-
ton adopted soon after the war. A
tax on widely used mate
rials, officials believe. would be equally
unpopular and would be impossible of
strict enforcement without the stamp
feature.
Special Tax Is Proposed
by Representative Hull
Ia AAoof CMfna Eu~