The Owosso times. (Owosso, Mich.) 1897-1926, 1918-06-14

CN oui expenditures IHiS year, iiiCiuu-
ing our loans to the Allies, would
reach $24, 900 ,000, 900; in round num-
bers, that we would loan to our Allies
| Sc ,000, 100000 Mr.. Kitchen stated to
me since that time he understands our
loans will reach $4,000, 600, 900 of this
| 1924, 000, 100000 of our expenditures
and loans to the Allies. do not be-
lieve it is claimed by anybody that we
should tax the people now for the
money that we are loaning to the AL
lies. We are selling bonds on which
we are obtaining money to loan to the
Allies, and we expect our Allies to pay
the interest and the principal of those
bonds when they come DUE"
| Demands Increased Tariff Duties
Turning to the question of taxes
themselves, Mr.. Fordney insisted that
sole reliance should not be placed up
on internal levies. 81 believe it is a
common rule and common practice
of every county in the world" Mr..
Fordney said, "that during the time of
war some of the money raised to carry
on a great war has been raised from
increased duties.
The Underwood Free Trade Tariff
"The Wilson Bill, about which the
Republicans Of this country made so
much fuss during 1896, carried an ad
valorem rate of 21.5 per cent on i'm
ports. Of course, the matter of i'm
posing a tax under that law as COM
pared with the tax imposed upon i'm
ports in the Dingley law and in the
Payne law was entirely different.
Some articles were placed upon the
free list that were later changed back
to the Protective list. Twenty-one
and one-half per cent was the ad valo-
rem rate under the Wilson law. Twen-
ty-five and one-half per cent was ad
valorem rate under the Dingley law.
Eighteen and one-half per cent was
the ad valorem rate under the Payne
law. Although the demagogues Of
the country said there were no reduc-
tons in the Payne Tariff law, it was
8 per cent below the rates in the Will
son bill, about which the Republicans
made so much fuss. But under exist
ing law last year, our ad valorem rates
were 6 per cent, getting mighty close
to Free-Trade. The last year of the
Payne Tariff law yielded to the Treas
ury Department 1888, 100000 in rev.
enue on imports of $1,812 900, 900
worth. Taking an average of the first
nine months of this fiscal year, and
for the months of April, May and June
this year, which would complete this
fiscal year, the average rate is 6.06
per cent under the Underwood Tariff
law, which will yield for the twelve
months $168, 100000 on import values
of $4,000, 900, 900, or $165, 100000 less
will be collected on imports this year
under the Underwood Tariff law than
was collected uhter the Payne Tariff
law, with an increase of $1,000,000,-
600 of imports.
More Revenue From Import Taxes
81 say to you the time has come if
we must raise more revenue to help
carry on this war, when we should
raise portion of it from our import
taxes.
"The difference between an internal
tax and an import tax is this: Suppose
you and / are engaged in the same
line Of business in this country, any
thing that we may be producing, no
matter what it is; we add to our cost
of production our taxes and assurances
and all overhead expenses. Your tax is
the same as mine on the internal tax
or war profit tax or the consumption
tax or any other kind Of tax that is
imposed upon the article that you and
/ are producing. We must add it to
our cost, and your cost is the same as
mine and consequently we both add it
to the cost, and the consumer must
and does pay it. There is no argu-
ment against that. Now, then, sup
post you are engaged in producing an
article abroad, similar to an article
that l am producing here, and your
raw material cost and labor cost is
below my cost. We must impose an
import tax on your product, otherwise
you will undersell me and put me out
of business, up goes the price and you
control the market, and under the cir
cumstances the consumer then pays it
and none other. There is no COMPARE
sion between an import tax and an in
ternal revenue tax"