Evening star., 1924-11-23

If YOU have the notion, like many
persons, that Uncle Sam has an un-
limited amount Of money to spend,
just rid your mind of that notion.
Our Government has to figure pretty
hard to get enough to meet ex-
every one should keep in mind-each
individual citizen must pay his share
of the cost of Government out of his
own pocket This is just. because
good Government Is as necessary for
the welfare Of each citizen as are
food, clothing or place to live.
Some of the things We get in re-
turn for this money are: Mail de-
livery. schools. highways. traffic reg
ulated. travel made safe, our food
supply made certain and pure, pub
lie health protected and our national
safety made secure.
Just as small children often ask
their parents to buy things they see
in store windows that attract their
fancy for the time being. without
stopping to think whether those
things are good for them or come
within their parents means, so many
men and women are continually urg-
ing the Government to do things
that often are not for the public
good and which are not so desirable
from any standpoint as to justify
taxing all the people to pay for them.
Must Have Gold Backing.
Just stop to think that it takes
between three and four billion dol
lars in actual cash each year to pay
for work Congress authorized by law,
or to continue a program Of improve
ments already under way. and to
keep the Government workshop go
ing.
Some folks think that because Un-
Gle Sam has a mint where coins are
made. and a big engraving and print
ing plant where paper money is made,
that all he has to do is make all he
wants. There must be actual gold
or silver on hand to redeem every
scrap Of paper money or currency is
sued.
So there are just three ways in
which Uncle Sam can get money to
pay his way as he goes-taxes, a
bond issue (Which is really borrow
ing because he has to collect taxes
later to pay this money back). and
from fees or tolls such as charges for
viseing passports, or received from
ships passing through the Panama
Canal-so this third way may be
called Service charges"
Uncle Sam charges what are called
customs duties. or fmposts, or the
tariff. This is an assessment on goods
entering this country which are OF for
eign production or manufacture.
These are what are called indirect
taxes, since the amount of the tax is
generally absorbed In the ultimate
cost of the merchandise to the con-
sumer. The greatest source of reve-
nue. from customs duties or the tariff
Is the charge on wool which comes to US
from all parts Of the world and on
sugar, 9S per cent Of which we i'm
port from Cuba.
These customs duties are levied
three ways-by an ad valorem rate.
which Is a certain percentage Of the
value of the article; or specific rate,
which is based on a unit of quality;
orr compound rate, based on both
unit and value.
Tariff Fostered Industries.
That was the first method Of rails
ing revenue for the United States
Government. The first thing that
Congress did after adopting the Con-
stitution was to decide upon a COM
mittee of ways and means to support
the Government. and of that commit
tee James Madison was made chair
man, and that committee reported a
tariff bill before Washington was in
augurated President. incidentally,
the articles they taxed were those
considered necessities in those days,
such as tallow candles, molasses and
rum, SO as to get an immediate reve-
nue.. And it is interesting to observe
that that first tariff really created
industries in this country so as to
get away from paying the tax.
There are two schools of thought