Evening journal., 1922-01-03
BUSINESS men
HEAR OF TARIFF
tcontInuea prom Flrst PaEe.l

] Under existing law, duties on /
goods In American custom houses, |
( intended for sale in the American
market, are not based upon their |
value In America, but upon their re-
spective values In the markets OF
other lands. This result Is at 'vari- /
ance with the commonly accepted
.ioctrine that property Of equal guam
/ titles, qualities and actual values
shall bear equa.s the burden Of
public taxes.
The proposed adoption OF the
/ American standard, In lieu OF in
Vulnerable foreign standards, Is
single. concrete question OF large
public interest and worthy of earn
est consideration. II has provoked
much opposition and denunciapon,
but its opponents have not shown a
willingness to debate the question.
Indeed, they have thus far refused
TO state the question as II really is.
They have confused the terms in
which they speak OF American valu-
alton and lngeniously defined 1t as
being everything that II Is not.
1T Is a matter Of common knowl-
edge that tariff duties are broadly
divided into specific and ad valorem;
specific duties being based on guam
tity, number. size, weight or some
other property not including value,
ad valorem duties being based upon
a fixed per centum OF the value OF
the goods in dollars. Sometimes an
article bears both specific and ad
valorem duties at the same time,
q
compound A specific duty has no
relation TO value and is not affected
by a change IN the standard OF
value; nor is the specific portion Of
compound duty.
THE opponents OF American valu-
ation. in their literature. assume
that all duties are ad valorem.
They add them all together indis-
. fortunately and charge the sum to-
tai 20 American valuation. In cases
in which specific duties constitute
the major portion OF the duties in
volved, they give the totals. refer
only TO the ad valorem rate and as
sert that the figures show the re-
suits that will follow the adoption
OF American valuation.
'"rhe latest figures furnished by
= The Tariff Commission are for the
year 1920. For that year imports
subject to ad valorem and compound
- duties comprised but 12.40 per CEN
. tum OF our total imports and but S2
per centum OF dutiable imports. and
yet scholarly advocates OF foreign
+, valutions solemnly assert that Amerl-
= can valuation vii reduce our i'm
ports by more than one half.
:. Foreign valuations literature some.
- times asserts that American valua
ton will make higher tariff rate
= while It is perfectly patent that (
will tend to make lower rates Fol
some time. however. they have beer
silent as TO rates and assert tina
American valuation win make high
:, er duties. The valuation being onc
" determined in fixing the rates tn
. Congress may as easily provide 10
lower duties as for higher duties. a
= the Congress may elect TO realiz
. lesser or larger revenue or 10 Civ
lower or higher protection. To as
sert that American valuation wi
make duties higher or lower Is &
- indulge in a confusion OF terms tina
~ is inexcusable in the serious discus
= sion OF a public question.
The unanimity with which I'm
- porters are carrying on their pres
=. ent campaign IS beautiful. The
Ii are OF one mind in complaining o
high duties under the pending tariff
~ bill but, as II by prearrangemeni
~ none OF them challenges a singl
rate carried in the bill
u 1T Is argued by advocates q
"a foreign valuations that we shout.
"a make it easy for nations recently a.
sociated with us in war TO pay thel
ia debts 10 us in merchandise. II 8
he happens that pur former associate
he who owe us money are the nation
he paying the higher wages. Tari
at duties based on foreign valuation,
vs. therefore, discriminate against thei
We goods A. American custom-houses
G. and tend 10 give our market for i'm
ports over wholly to the low wae
ts countries that were not our assocl
on ates and that owe. us no money.
" III / were an advocate OF a pro
ld tective tarlff, would find Il Difficult
g, 10 be patient with those paraeranh
We in the literature OF the advocates q
ed foreign valuations in which the
OF protest their undying allegiance {
en- the protective principle In tari
legislation. They stoutly aver tina
~ they favor liberal protective rate
X BIASED on foreign valuations" q
Is course, the men who prepare thl
ls literature know full well that a prr
= tective rate based on foreign vaiua
oe tions Is a contradiction Of terms.
II Advocates Of a protective tart
o' agree that the true principle Of prr
ne lection Is best maintained By th
imposition Of such duties as wi
equal the difference between cost ,
production az home and abroad. I
a protective measure duties need
be higher as against countries payin
lower wages and might safely I
n lower as against countries pawn
higher wages A rate based on foi
eign valuations reverses the process
/ making duties higher on goods froi
countries paying higher wages an
lower on. goods from countries pa
ing lower wages.
ias II can not understand the ment
tee processes OF a man who proclaim
- himself an orthodox protectioni
Is and declares in favor Of liberal pr
10 tective rates. but insists that tn,
ATE shall be based on. foreign valuation
rs It is stating his case mildly to s.,
that he IS indulging I'm the "iuxu
WI Of loose thinking" in a confusion