Every evening, Wilmington daily commercial., 1922-01-03


favor liberal protective rates based
on foreign valuations OF course. the
men who prepare this literature know
full well that a protective rate based
on foreign valuations IS "a contradic-
ton Of terms
Advocates 81 protective tariff
agree that the true principle ~ pro
lection is best maintained by the i'm
position Of such duties IS viii equal
! the difference between cost Of prOduc-
! ton al home and abroad. IN pro-
/ tective measure duties need 10 be
/ higher as against countries aging
lower wages and might safely be lower
AZ against countries paying higher
wages rate based on foreign val
uations reverses the process. making
duties higher on goods from countries
paying higher wages and lower on
goods from countries paying lower
wages.
81 cannot understand the mental
processes of man who prociaims
himself an orthodox protecti0nist and
1 declares IN favor u liberal protective
rates. but insists that they snail be
ba sed on foreign valuations T. ls
stating his case mildly 20 say that ne
- indulging IN the luxury Of loose
thinking in a confusion Of ideas
and. in a contradiction of terms. In
/ effect. he favors the punishment of
our foreign competitors whom we
1 need not fear and rewards for those
4 who may at viii take over 70 them
selves the cream OF the American mar
kets.
Foreign Value Figures Unreliable
i Advocates OF foreign valuations
!, compile and scatter broadcast many
pages Of agures. set in orderly columns
with headings more or less mystifying.
= and intended to.appear 10 disclose the
1 frlghtful increases in retail prices
that will result from the adoption OF
j American valuation. Of course. il is
] but a confusion OF terms 20 say that
, American valuation will make prices
? high or low; but In lieu OF logic. they
, have chosen what they conceive 70 be
? the most effective substitute. I have
| read over many items OF these tables.
2 have found none that Is fair state
5 ment of case. They purport 10 dis
= close manly facts, but they scruplously
withhold the most interesting and IL
i Illuminating one fact. to-wEt: the pres
ent foreign cost of imported merchan-
3 disc. Some Items are incomplete and
81 therefore, misleading; others are az
3 flrmatively untruthful. Taken as a
= whole. they are calculated to generate
n puch heat. but produce no light.
= While these tables OF figures are
prophecies or threats, rather than sta
= tIstics, they resemble statistics and re-
: mind one of the statement made Ions
S ago, that all lies may be divided into
D three classes: common lies, uncommor
Y lies and statistics.
!, The final objection 70 American
= valuation is that il VIII be difficult tC
I administer. II will require earnes
= and conscientious endeavor by the
n Customs officials, but they say tina
r the law is capable of effective admin
$ istration. II certainly viii be vastly
: easier 70 acquire and keep current Z
knowledge of the American narke
X than 70 acquire and keep current ;
: knowledge OF the markets Of many ma
: tons with which we are in commercial
:, into those easy OF administration an,
= difficult OF administration. They ar
= divided into those possible of admin
= lstration and those that are impossible
= and the foreign valuations statut
: belongs 10 the latter class.
- THAT reminds me that the presen
= law as 10 values In foreign market
e is not administered as IL is writer
Except in rare cases. no attempt
made 70 learn ard apply foreign mar
e ket values. Importers present invoice
n prepared by foreign manufactures
II and duties are calculated upon them
e Probably most invoices are correct
t certainly many are not. How muc
IS monsy is annually lost 10 the Treas
Y ury by undervaluation on false in
y voices. no one may ever know.
v assuredly runs into many millions {
+ dollars. robbing the public treasur
IS and giving to a dishonest importer a
l. unfair advantage over his honest CON
,r pettors. Under foreign valuation
N each Importer is practically the arbii
er OF his own case.
>, Former Secretary Of the Treasur,
a. Leslie NJ. Shaw. has estimated thS
"A the loss 10 the Federal treasury b
i undervaluati ton is never less than OF
= hundred millions of dollars per annul
- and sometimes reaches Ave hundre
millions. It is certain that the loss
:. very great. A fraud upon the -Feder
- treasury is always a wrong Il )he T,
I, naming taxpayers. II is more Nstlne
I ly an injury TO them now. when II
'e needs OF the Government are so gre,
y that every cent withheld at the GU
re tomhouse must be made good by dire
IS taxation upon the public. Making gct
the loss presents difficult probler
o. since rates of direct taxation ha'
lt already been raised so high that II
as creased rates are bringing diminish,
OF revenues.
o. AS a substitute for the present la
ae which provides Tor innunerahle 70
a. eign valuations a law which can n.