Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1922-05-25
A TARIFF THAT PRODUCES
ONLY A TENTH OF THE REVENUE
some the Customs Dues at Least
Should Be Fixed Scientifically

some the Customs Dues at Least
Should Be Fixed Scientifically
THE Senators who are wransling over
l. tariff schedules in Washington do not
yet seem to have discovered that events OF
recent years have reduced the tariff 10
position of relative unmrortanre in financial
legislation.
We do not mean that the tariff is unim-
portant. but that internal taxation has be-
come Of much greater Importance and that
when inequitaby levied it can more seriously
affect III" prosperity OF the country than can
any tariff laws. whatever may he their form.
SO recently rs 1872 the total revenues of
the country amounted 10 only %t"2,oo0Ooo.
made up of S311 900, 600 customs dues and
S32l ,0OO,O internal taxes. In 1921 the
total revenues wero S1624 900 600, Of which
only about $500, 600 600 were collected at the
custom houses. More than SIT was COL
lected in taxes on domestic business for
every 81 collected in tariff duties. These
internal taxes touched every citizen. They
increased the cost of living. They made it
more difficult to do business at q profit and
they were incQuitably distributed.
1t will be many years before tho cost of
running the Government will fall below
$4,000, 600. 600 n year. 1t is not likely that
much more than one tenth Of this sum can
be raised through the custom houses. IT
must be evident to the most casual student
of these figures that the tariff as revenue
producer and as an agent in national pros
perty is of immensely less importance than
II once was \ direct levy on the business
Of the country Of between two and half and
three billion dollars year can affect pros
perity much more disastrously than any
tariff law that is likely to be passed
Consequently it would seem as if the time
had coiue to make an effort to apply sri"n-
tiic principles TO the drafting OF tariff
law and TO bring to an end the practice of
getting favoring duties for one industry or
another By system of log rolling.
The people Of the United States as a
whole believe in a reasonable degree of
protection in spite of much dccaiming about
the inQuities of the protective system.
The practical free traders are so few that
they do not deserve serious consideration
Academic free traders in the universities
may be permitted freely to discuss their
theories in the abstract, fo- there is not the
slightest chance that they will enter the
realm Of practical politics.
The only way to secure n scientific tariff
law is through the cooperation Of the
Tariff Commission. The proper function Of
that body is TO ascertain the facts and 10
communicate them to Congress. 1t may in
many instances be compelled to make an
approximation at the truth because OF the
difficulties in the way of asccrtuining all the
facts about the cost Of manufacture abroad
But it can get near enough for all practical
purposes and it can express lis opinion to
Congress on the amount Of duty that must
be levied on various commodities in order
to prevent the foreign producer from driving
the domestic producer from the home
market.
Whatever may be the feeling Of the iNdi'
vidual domestic producer the consumer
never favors a tariff so high as to guarantee
exorbitant profits to any one. He is op-
posed to favoritiSm at the expense Of the
public For that matter, no one defends
favoritism.
Now il the fair minded Republicans and
Democrats in Congress can agree together
as they agree separately that a reasonable
degree Of protection is desirable, we shall
be in the way of getting a national tariff
policy which will take the tariff ont Of poli-
tics and give US more equitable customs
duties than we have ever had in the ,ong
run business would profit by the change.
It is now upset periodically by political re-
visions of the Tariff Law. There are long
periods Of uncertainty. involving loss which
sometimes is never made good while Con.
gress dawdles over the new rates Of dlty.
II may be too much to expect that such
reasonable course will b" adopted. Tn"
habit Of the present generation Of statesmen
is too firmly fixed for them easily ~ con-
sent thar the old system Of tariff making
shall be abandoned. They want to tell their
constituents that they are protecting their
interests or to charge the party in power
with protecting special interests At the ox-
pense Of the public There is always a lot
Of bunl; in this sort Of talk and thoyn who
indulge in it would be the last TO deny it.
The situation is not wholly diSomraging
however, for some men in Washington are
| already feeling after a better way. The
| present Tariff Bill contains n provision per
| mtting the President under the advice Of
| experts, to modify duties within certain
fixed limits If this could be adopred it
| would be q move in the right diroc'io ion, for
! it would mean that an attempt would be
made to fix duties eQuitabiY instead Of in
response 10 the greedy demands Of special
! interests. SO long as il was agreed that
the policy of protection should b" respected
no industry needing protective duties would
| suffer And the abandonment of fLat Dnlicv