Year: 1869

otner common carriers for the transportation
Of passengers; and the PERCENTAGE taxes on the
all of which is less than one. half the annual
expenditures during the last two fiscal years
has been accomplish he'd, it may with truth be
claimed that the entire internal revenue system
mas been made wholly subordinate to the more
important end of creating national wealth; and
that under IL no direct obstacle whatever IL Inn
the domestic producer from placing his pro.
duct upon the market at the lowest possible
cost


In concluding this review of the present in.
fluence and condition of the national taxation
under the Internal revenue, the Commissioners
IL constrain ed to confess that thus far the
abatement of prices consequent upon the large
annual reduction OF taxes has not been what
was anticipated, or what the large amount OF
revenue abandoned would seem to have wat.
Tanted, In the case of not q few articles, as pig
iron, manufactured lumber and salt, the prices
since the removal OF taxation have actually ad.
vanced, while in other instances, as in the case
of agricultural implements, sewing machines,
hOop.s skirts, manufactures OF silk newspapers,
and In fact most articles which are the products
of monopolies created by patents, established
custom, or other circumstanoes, the repeal OF
former prices. has been only equivalent to legis-
lating a bounty into the pockets of the pro.
ducer.


The Commissioner proceeds to the considera.
tion of the influence of national tax ration under
the tariff on prices and tne cost OF domestic u,,
is attended with the embarrassment that IL ln-
wolves more OF prejudice, and OF opiuion





any other which, since the abolition of slavery,
has occupied the attention Of the Anne loan
people Notwithstanding this, It is important
10 recognize the fact that, under the existing
financial condition of the country, the old-time
issues between the advocates OF free trade
on the one hand and protection on the
practical mportance-inasmuch as In the ar
rangemept OF a tariff with view to revenue
certainly, for the present, necessitate 80 high
an average of duties as to afford all that can be
reasonably asked for on the grounds of protec'
tion; and with given requirement., moreover,
for revenue, In excess OF what can be derived
from the a;o taxston under the iarih & OF a. aeknow,
valid objection to distributing the additional
taxation in such manner as TO favor those
branches Of industry most exposed to foreign
competition.


He next speaks of the recognition of the pro.
ton to two other points which have been M Ide
the subject of investigation, namely: the direct
effect OF the tariff on the prices OF imports and
the effect of the increase of tariff in check
ing importations. He says:-"Au experience
and especially the experience of the United
there Is point hey ond which duties imposed
on importations cannot be carried without rem.
under the existing tariff, the duties on wines,
liquors, and silks have been carried to such
degree that only so much OF these articles are
now imported as are necessary to meet popu-
lar requirement that no law can prevent from
being satisfied. If carried beyond this point
the requirement or necessity will still be met,
but the smuggler and Illicit dealer, rather than
the regular Importer, will become the agent of
supply: for lin no country can evasion OF the
excise or customs be carried out more success.
fully than in a republic where popular opinion
is both the law. maker and the law sustainer.
II proofs in support of this position are de,
manded they are most abundant"


The Commissioner discusses the relations
tion," ard says "indiscriminate protection is a
characteristic OF the existing tariff" Under the
head Of Result OF existing influences on ma
tional development" he remarks


"Al commerce is in the nature OF barter or
exchange. The men who bring to us coffee.
sugar. tea, hides silks. dyestutfs. and the like.
are q ot The men whose labor or capital has been
directly concerned in the production OF these
articles. but men whose simple and sole busl-
ness is TO exchange these products at a profit
Tor the products OF other nations. What the
exchanger desires most to receive is product in
kind, which he may further exchange else
where and at the same time realize profit
both ways on the agencies employed by him
their freight. What he desires least to receive
Is gold or silver, tnasmuch as the intrinsic
countries, and their movement and transmits
sion, instead OF being source OF profit is
rather source OF expense.


States Is just this. We have so raised the cost
OF all domestic products that exonsnge In kind
with all foreign nations is almost impossible.
The majority of what foreign nations nave TO
sell us. as already shown. we must or will have.
What foreign nations want and we produce
cotton and q few other articles excepted-they
can buy elsewhere cheaper. We are therefore
obliged to pay in no small part for such foreign





the precious metal, or, what is worse in unduly
depreciated promises OF national payment.
realize this condition Of affairs, that they seve
rally desire and honestly think they can
remedy the evils Ia question by measures
which, like the increase OF The currency, the In
crease of the tariff, or other forms of taxation
will Inevitably make prices and the cost OF
production still higher, and thus aggravate the
very difficulties which are already SO serious"


AS a practical illustration of how the United
States trades with the Argentine Republic, the
Commissioners subjects to analysis the COM
mercial relations existing between the nited
States and the Argentine Republic of South
America (Buenos Ayres). The necessity OF
first instance, to the United States, which does
not afford O supply of domestic hides sufficient
10 meet more than So per cent. OF It's domestic
consumption of leather; and has, in addition,
practically no domestic supply Whatever of
either goat skins horse hair. Now the
Argentine Republic has these articles especially
TO sell and export, and II she is willing To
dispose of them on terms equally advantageous
with other nations. IL is not a matter of choice
on the part of the United States whether she
will trade, but a matter of necessity.


"It is also worth while to diverge for mo-
ment from the discussion of the Immediate
porIant Is the relation of this supply of foreign
hides 10 American domestic industry, and how
good thing the United States makes OF It,
The estimated value of all the domestic hides
manufactured in the United States during the
mated value OF the foreign hides received at
the principal Atlantic ports OF the United
states during the same year was about Sl4.-
0O0,UO0 iva ues In both instances being reduced
TO currency with an assumed gold premium of
40 per cent?, making total OF s33,26O.oOO
rial hides for The year in IN question. Now low
during this same year there was received In the
city OF Boston unmanufactured leather OF do
mestic tanning to the value of ST .463 99S; and
there was sold and shipped from the State OF
Massach use rs alone boots and shoes OF an esti-
which large sum represents very imperiectiy,
but yet NEST striktngly. the extent TO which