New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-03

1ORONTO, July q,
"HE report of the Canadian
Department Of Customs for
n May shows sharp reduction
in the value Of merchandise
imported, with continued but less
drastic curtailment Of exports.
Merchandise entered for consump-
ton was valued at $6S, 800, 1896, COM
pared with $113,320,699 in May.
1920. The value of exports in May
was $50 ,567,9 1922, against $77,342,578
last year.
The total Of Canada's foreign trade
in May, 1921, was approximately one
month of last year. The duty collected
on imports was slightly less than s10,-
100000, or about one-half as much as
was collected in May, 1920. 1t remains
to be seen whether the reduction in
customs revenue will be made up, and
the additional financial requirements
of the government taken care of, by
the increased sale tax and the higher
yield of the income tax. The sales
tax probably can be counted upon to
yield close to S75,000,000 this year and
the income tax is steadily becoming
more productive. AS a result of the
receipts during May on Federal income
tax account were S39 $50, 711.22, In
many cases the entire tax being paid
on the due date of the first installment.
On the other hand, the business profits
war tax, which yielded s40,000,000 last
year, has been allowed to expire and
while some delayed collections will be
included in this years revenue the
amount will not be large.
Although Canada is dependent upon
other countries, and principally upon
the United States, for many essential
goods, IL seems certain that the reduc
ton in value represented by imports
will continue to decline. The change
in the customs act at the last session
Of the Canadian Parliament involves u
substantial augmentation of the charges
on imports from the United States
Since June 6. the Canadian ad valoTem
tariff duties on merchandise from the
Republic have been assessed not only
on the selling price in United States
currency, but on such selling price in
creased by the current premium on
New York funds in Canada. At pres
ent exchange quotations, this means
an increase of about one-eighth in the
States. In order to protect their Can
adian trade connections, many United
State producers in selling in the Do
minion have been absorbing part Of
the exchange.
The recent amendment TO the Gus
toms act probably Will operate co dts
courage such practice. An official men,
orandum to collectors of customs says:
"In respect of adverse exchange, the
| importer is to state on invoice the
amount to be paid for the goods in
Canadian or foreign funds, and in
respect of goods Of class or kind
made or produced in Canada special or
dumping duty is to apply where the
price paid by purchaser in equivalent
of Canadian currency is more than Q
per cent less than the value for duty
as shown by the customs entry" I'm
ports may also be affected by the
strengthening Of the dumping clause
The customs act now provides that val
| uation for duty shall in no case be
Hover than the wholesale price Of the
goods at the time and place of ship
ment, and the following clause has
been added: provided, that the value
for duty of new or unused goods shall
| in no case be less than the actual cost
of production Of similar goods at date
of shipment direct 20 Canada. plus q
reasonable profit thereon, and the Min.
lister of Customs and Excise shall be
the sole judge OF what shall sponstitpss
"a reasonable profit in tho circum,
stancesas