Page:Popular Science Monthly Volume 54.djvu/769

From Wikisource
Jump to navigation Jump to search
This page has been proofread, but needs to be validated.
THE BEST METHODS OF TAXATION.
745

familiar scheme for reciprocity treaties, under which moderate concessions in some of the duties could be made, was retained; but France was the only power that could have an object in seriously entertaining the proposition to enter into a negotiation. No real reduction in duties could be given to Germany or any other country, and it has become a recognized fact that Germany does not hesitate to seize an opportunity to exclude the products of the United States, and on the same grounds as support the high duties in the American tariff. The system of drawbacks has ceased to be of much moment in our customs policy, and in the export interest in canned goods finds its chief exercise. Nor does a privilege to manufacture in bond affect more than one article of importance—ores of lead containing silver. No matter how it is regarded, the tariff of 1897 was not framed for revenue, and in experience has not proved sufficiently productive to meet its share of the expenditures of Government. The animus of its sponsors in attaining the immediate political object sacrificed the more important and permanent object of revenue.

Were the true object of customs duties—revenue—to be kept in view in tariff legislation, it would be a simple matter to devise a measure that would be satisfactory and highly productive of revenue. In the fifteen hundred or more articles enumerated in the tariff schedules, more than fourteen hundred are nonproductive, or yield so small a return as to have in the aggregate no appreciable effect on the total receipts. The number left after so large an exclusion can be still further reduced without reducing the revenue one tenth; and it is from a small number of articles, hardly twenty-five, that the great part of the customs revenue is obtained. By reducing the rates of duties on these to a point of highest revenue efficiency, at which the import is not interfered with and yet not encouraged, a higher return could be had than from the existing complicated, overloaded, and political compilation of duties, usually imposed for any reason other than what they will bring into the treasury.

When, therefore, the best methods of Federal taxation are broached, the reform of the tariff stands first in importance. It is necessary to bring it more into line with the industrial conditions of to-day, which call for foreign markets rather than a domestic or closed market; and for a liberal commercial policy in place of one that regards the products of other countries, whether imported in the crude or manufactured forms, as constituting a menace to American labor and American interests. It calls for a systematic and intelligent revision, which shall throw out such, duties as are no longer of service even for protection, and to reduce those that are hostile to the products of other countries and bear in themselves the seeds of reprisals in the future. Now that the United States is going into the