Milford chronicle., 1927-09-09

| burdens, receiving a low wage, ant
trying to live out and sweat out its
problems, while other groups are or
ganizing, thinking and planning ant
building programs for years ahead.
Somebody must lie awake nights
and must stay awake nights study
ing the tariff and counter problems
in their relation to agriculture. II
we will go through the entire sched'
ule of manufactured goods, and the
entire agricultural schedule of ouJ
tariff and compare the ad Valorem
rates, we will be surprised to fine
that agricultural schedules are much
lower than the manufacturing sched-
ules; and yet the tariff is not opera
tive on many of our products be-
cause of the exportable surplus.
While we should study taxation
distribution, production, and host
of other problems dealing with rural
life today, we are giving especial
emphasis to studying the tariff and
we are asking you to carefully look
into its operation.
Equality
Someone may throw up his hands
in horror and suggest that the
Grange is the last organization on
earth to ask the government to do
something for the farmer that 1t is
not doing for other people. We an
swer-study the workings of what
has been happening in America IN
the last few generations. Watch the
rewriting of our tariff schedules and
if YOU want to see a lobby of high
nriced. shreWd, capable experts, go
to Washington when the tariff is be-
ing rewritten. Study, if you please,
legislation that has been passed.
Watch carefully the commercial
practices that we are developing and
you can but note that agriculture has
in a part at least-been neglected
in the program. Not because anyone
has a desire to injure agriculture,
hut simply because other groups,
through organization, through sound
business methods, through a knowl-
edge of economic principles, have
utilized opportunities for their own
advantage, while we farm people
have been asleep at the switch.
The Drawback Method
TC encourage home industries and
to protect the manufacturer from
tariff payment on goods manufactur-
ed for export, two methods have
been developed in this and Other
countries: First, manufacturing II
bond" a method by which the man
ufacturer buys goods Upon which
there is a tariff, manufactures them
in bond, and then ships all the goods
abroad without tariff payment. Sec
ond, what is known as the draw
back" method.
The manufacturer buys raw mater
ial abroad, pays the tariff, manufac-
lures goods in America, ships out Of
the United States, and then draws
back $3.50 of the duty paid. For ex-
ample, a manufacturer will buy raw
material and pay $4,000 in duties
When the goods are manufactured
he decides to sell One-half OF then
in the United States and OF course
being sold under the protective sys'
TEN, the tariff in part at least, Is
added to his costs. The other half Of
the goods is shipped abroad and II
order to meet foreign competition ne
could not pay tariff duty, conse'
ouently he draws back $3.50, or II
this case it would be $4,000. We have
no complaint with the drawbacks
method. We are simply pointing out
the similarity to the debenture idea
Under this provision of the tariff
act. we have paid back to manufac-
turers sums varying from $20,00O,OOC
to S35,OOO,O00 during the past few
years.
Remitted Tariff Duties
Another method that has been de-
veloped by our tariff system that
has a relation to the Debenture idea
is what is known as ''remitted tariff
duty" Certain commodities from
certain countries are given reduc-
ton in tariff rates. The most out
standing example is sugar and mo-
lasses. Under the present law, Cuba
received a 20%o reduction on sugar
which benefits, in part at least, both
the sugar manufacturer and the Gu
ban planter. Some benefit may come
to the American consumer but this
is somewhat doubtful because the
sugar price is maintained by the
general tariff rate,
The amazing total for the last 20
years of remitted Cuban tariff duties
is $S75, 100000. These figures were
prepared by Russell H. Anderson, a
graduate student of Illinois, who has
made a very careful study of the
whole problem. A study made by the
National Grange Office at Washing
ton indicates that during the last five
years alone there has been remitted
$135, 100000 in tariff duties.
We will admit that remitted tariff
duties may promote commerce and
general trade and thereby benefit the
public, but we do insist that if we
can defend the keeping of millions of
dollars out of the Federal treasury
to benefit Cuban sugar planters and
American manufacturers, there is no
reason why we should not apply the
same principle and keep a few mil
lions out of the treasury to benefit
the American farmer.
High Tariff Rates
Our tariff structure has not been
built to secure the greatest amount
of revenue. When a tariff rate gets
so high that it reduces or almost
prohibits importations into this
country, it reduces revenue and
keeps money out of the treasury.
We have built our tariff on the
theory that it should equal the diff
ference between the cost of produc-
tiOn here and abroad and have given