Imágenes de páginas
PDF
EPUB

cent of the production came from plantations. The world's annual production of crude rubber increased from 54,000 tons in 1900 to 290,000 tons in 1918 and in 1922 to about 379,929 tons, of which about 79 per cent came to the United States. (See also CURRENTS OF World Commerce.)

production, having increased by the exact amount of Great Britain's loss, was 32 per cent of the whole.1 Imports of india rubber, crude, and milk of, in 1912, were 110,101,091 pounds, valued at $92,956,013. Imports of india rubber, scrap or refuse, fit only for remanufacture, in 1913 were 44,479,429 pounds, valued at $3,675,824.

Imports of india rubber since 1917 have been as follows (000 omitted):

Plantation rubber, now about 93 per cent of the total crude rubber product of the world, is all produced in the Malayan peninsula and in the islands of Ceylon, Sumatra, Java, and Borneo. The British control 70 per cent of this and have strategic control in case of war of an even greater proportion. The Dutch control most of the remainder. Until the World War dislocated markets, London was the great crude-rubber market of the world, and, although the actual Scrap or refuse: markets are now largely in the Far East and chiefly at Singapore, financial control still lies with London. Four main regions—namely, the Amazon region, the Far East, the Caribbean, and the Philippines are now being investigated by the United States Department of Commerce in regard to their possibilities for producing plantation

rubber.

Much interest has been aroused by Great Britain's experiment in the regulation of rubber production, known as the Stevenson plan.

A combination of circumstances was responsible for this effort at restriction. Concurrently with the manufacturing slump of 1921, a large amount of young acreage of rubber was coming into bearing for the first time, with consequent disastrous effects upon the relation of supply to demand. Plans for voluntary association for the restriction of output, hastily launched in order to save the situation, proved ineffective. Enforced restriction, recommended by the British Colonial Office to the Dominion governments concerned, was therefore adopted by them, commencing November 1, 1922.

Briefly, the plan provides for a sliding scale of duties on exports of rubber from the British colonies. The purpose is to keep the price of crude rubber between a minimum of 32 cents a pound and a maximum of 38 cents a pound. For the purpose of calculating production and duties, the world's production of plantation rubber for the year ended November 1, 1920-330,000 tons-is taken as the base or normal production. Sixty per cent of that production is assumed as the normal demand. British planters are permitted to export, for the payment of a nominal export duty of 1 cent a pound, 60 per cent of their production of the above-named period. But for every 5 per cent of increase in exports there is an increase in duty, beginning with 6 cents a pound for the first 5 per cent and increasing thereafter by 2 cents for each 5 per cent until the maximum of 24 cents a pound is reached. There is a provision for raising or lowering the maximum amount for export at the minimum duty of 1 cent a pound when the price goes above or falls below 32 cents, and a further provision allows new plantations to begin exporting as they come into bearing.

The plan has apparently worked only imperfectly, partly because of the competition of the Dutch growers, who, left with a free hand, appeared to be flourishing at the expense of the British. In 1922, before the operation of the Stevenson plan, Great Britain produced 67 per cent of the world's rubber against 25 per cent by the Dutch. In 1923, with the plan in force, British production fell to 60 per cent while Dutch

[blocks in formation]

Crude and milk of:
Pounds..
Value..

[blocks in formation]

Pounds..

[blocks in formation]

Value.
Reclaimed:
Pounds.
Value...

have been chiefly from the British Straits SettleIn recent years imports of crude india rubber ments and the Dutch East Indies; and those of scrap or refuse india rubber mostly from England, Canada, and France.

Annual imports of jelutong or pontianak from 1910 to 1914 ranged between 45,000,000 and 50,000,000 pounds, valued at more than $2,000,000. Later statistics follow (000 omitted):

[blocks in formation]

Manufactures of india rubber, as provided for in paragraph 1439 of the act of 1922, constitute the greater portion of products of the rubber industry. Automobile and other tires form the largest single item, while manufactures not specially provided for include such important items as rubber boots and shoes, rubber tubing, dentists' rubber supplies; rubber balls, pouches, bulbs, and sponges; partly manufactured rubber; rubber sheets and rubber hospital sheeting; hot-water bottles, ice bags, and similar articles. Rubber belting is not included, nor is rubber hose, except that made entirely of rubber not combined with cotton or other fiber.

Production.-The census of manufactures gives statistics of the rubber industry under three classifications: Rubber belting and hose, rubber boots and shoes, and manufactures of rubber not elsewhere specified. For the last two classifications, 324 establishments were shown in 1914, employing 68,907 wage earners, with production valued at $276,150,510. In 1921 there were 17 establishments manufacturing rubber belting and hose, valued at $14,741,194. Twenty-four establishments reported a rubber boot and shoe production of $93,625,659, and rubber tires and tubes and other goods were reported by 453 factories, whose products were valued at $595,855,000. Ohio leads in the production of general manufactures, New Jersey in belting and hose, and Massachusetts in boots and shoes.

Imports of all classes were valued as follows: 1914, $1,489,680; 1918, $318,101; 1920, $1,373,469, 1922, $1,859,791; 1923, $1,216,245.

Survey N-21.

INDURATED FIBER WARE. See FIBER

MASSE.

INDUSTRIAL LEAGUE OF PENNSYLVANIA, established about 1867 for the purpose of encouraging protection, included many manufacturers. Its first president was Peter Cooper. It was instrumental in securing removal of the internal war taxes after the Civil War and the repeal in 1875 of a 10 per cent reduction of duties made in 1872.1

(See TARIFF HISTORY, UNITed States.) INK AND INK POWDERS. The most important ink is black printing ink used in newspaper and book printing. Its ingredients are finely divided lampblack ground in a varnish composed of linseed oil, rosin oil, a drier, a thinner, and other materials such as soap. In colored inks for printing and lithographing the lampblack is replaced by a color lake, a pigment derived from a coal-tar dye, or, in the case of some blues, by a mineral pigment such as Prussian blue. Black writing inks are usually made of tannate of iron and a gum dissolved in water. Blue writing inks or fluids usually consist of a mineral pigment such as Prussian blue (which has been chemically treated to make it water soluble) dissolved in water and oxalic acid. Writing inks, other than blacks and most blues, are composed of a coal-tar dye and a gum dissolved in water. In inks used for fountain pens the gum is usually omitted. Ink powders or tablets are soluble coal-tar dyes, and upon the addition of water form a writing fluid. These powders may also be used in other products where a soluble color is required.

Production of writing inks in 1914 amounted to over $2,500,000, in 1919 to $6,434,000, and in 1921 to $4,980,148. Statistics relating to production in the printing ink industry follow:

1 Tarbell, Ida M., The Tariff and Our Times, p. 86ff.

[merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][ocr errors][merged small][subsumed][merged small][merged small][merged small][merged small][merged small][subsumed][merged small][merged small][subsumed][merged small][merged small][subsumed][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][subsumed][merged small][merged small][subsumed][merged small][merged small][subsumed][merged small][merged small][subsumed][merged small][merged small][merged small][merged small][merged small][merged small][subsumed][merged small][merged small][subsumed][merged small][merged small][subsumed][merged small][merged small][subsumed][merged small][merged small][subsumed][merged small][merged small][merged small][subsumed][merged small][merged small][subsumed][merged small][ocr errors][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small]

Exports of printing inks go chiefly to China, Argentina, and Brazil, and of all other inks chiefly to Cuba, the Philippines, and Canada.

Survey A-9.

INLAND DUTIES are duties collected on the passage of goods between points lying wholly within the State. Before the eighteenth century imposts were commonly laid upon merchandise at various strategic points along the route over which it was transported. These were generally abolished by the nineteenth century. (See TARIFF HISTORY; COLBERT, J. B.) They still exist in China as "likin" (see).

Customs levied on goods upon their entrance into cities still occur in Europe in the form "Torsteuern" and "octroi."

The United States Constitution (Art. I, sec. 10) provides that: "No State shall, without the consent of the Congress, lay any imposts or duties on imports or exports, except what may be absolutely necessary for executing its inspection laws; and the net produce of all duties and imposts, laid by any State on imports or exports, shall be for the use of the Treasury of the United States; and all such laws shall be subject to the revision and control of the Congress'

"

Length of Interval. Six months elapsed between the date on which the tariff act of 1913 was reported to the House of Representatives and the date on which it became effective, and a much longer period in the case of the tariff act of 1922. The corresponding interim period in the case of previous revenue measures varied from two to eight months. Effect of Increased Customs Duties on Imports. During the interval of five months elapsing between the reporting by the Ways and Means Committee of the revenue bill of 1897 and the date of its effectiveness, imports valued at approximately $243,000,000 came into the country. The difference between the revenue secured from these imports at the rates actually in force under the tariff act of 1894 and the revenue that would have accrued at the rates of the act of 1897, had these been in effect, was about $74,000,000. The most important item was wool. The quantity of this commodity imported free into the United States during that period would have yielded, under the rates of the act of 1897, about $27,500,000. On manufactures of wool the additional revenue would have been about $10,000,000. On sugar the additional revenue would have been about $18,600,000.

INSPECTORS, CUSTOMS, officers appointed The importations, during the five months' by the Secretary of the Treasury upon the nomi- interim period of the revenue bill of 1897, of comnation of the collector. Inspectors have super-modities for which the new legislation provided vision of all vessels coming into their districts and report all discovered violations of the revenue or navigation laws; they board vessels arriving from foreign ports; superintend the discharge of cargoes and the delivery thereof; examine the baggage of arriving passengers; inspect and superintend the shipment of merchandise exported claiming benefit of drawback (see), as well as shipment of goods for exportation or transportation in bond. They are also required to make examinations as often as necessary of vessels coming into their districts to ascertain whether American vessels are properly documented.'

(See also CUSTOMS ORGANIZATION AND PROCEDURE; CUSTOMS OFFICERS.)

INSTRUMENTS, DENTAL, See DENTAL IN

STRUMENTS.

INSULATORS, ELECTRICAL. See ELECTRICAL INSULATORS, ETC.

INTERIM LEGISLATION.2 Legislation designed to prevent excessive or evasive importation in the interval between the reporting and final enactment into law of a revenue measure carrying higher customs duties. Laws also exist to provide for contingencies arising between the reporting and approval as law of measures providing for lower duties.

During the consideration of a bill with increased tariff rates it is a common practice to withdraw from bonded warehouses and to import directly for consumption more goods than would normally be introduced in order to obtain the benefit of the existing lower rates of duty. Thus, while Congress is deliberating on a revenue measure carrying

increased rates, the Government loses large sums of potential revenue. On the other hand, the consumer does not, as a rule, obtain the benefit of the lower revenue rates at which the goods are imported. The level of prices at which the goods are sold for consumption is fixed by the higher rates of duty levied by the new law when enacted.

1Act, March 4, 1923; Tariff Act, 1922, secs. 454, 455, 456, 458; Cust. Reg., 1923, arts. 1189-1207.

From U. S. Tariff Commission, Interim Legislation, Washington, 1917, pp. 3-8.

higher rates were unusual and abnormal. In the corresponding period of five months in 1896 the value of wool imported was about $7,360,000; in the interim period in 1897 the value was $41,700,000. In these same periods the importation of manufactures of wool was $14,190,000 in the five months of 1896 and $30,475,000 for the five months of 1897. Manufactures of silk for the same period increased from $8,618,000 to $12,680,000. Every article for which increased rates were provided was imported during the interim period in quantities greatly in excess of the quantities imported during the corresponding period of the previous year.

If, during the five months' interim preceding the next ensuing revenue act, that of 1909, the following articles had been subjected to the rates of duty carried by that act, the increase in revenue would have exceeded $2,500,000:

[blocks in formation]

Revenue lost. $635,000 450,000 89,500

314, 000

1, 014, 000

2,502, 500

commercial agreement with France, authorized Another example is found in the working of a by section 3 of the tariff act of 1897. By this agreement champagne and other sparkling wines were subjected to a special duty of $6 per dozen quarts instead of the normal duty of $8 per dozen quarts levied by the act of 1897.3 The act of 1909 raised this normal duty to $9.60 per dozen quarts, 31, 1909, of the commercial agreement referred to. and provided for the termination on October In the interval between the report of this tariff bill to the House of Representatives on March 18, 1909, and the expiration of the commercial agreement,

[blocks in formation]

October 31, 1909, an extraordinary quantity of champagne was imported into the United States, upon which the difference between the duty of $6 per dozen quarts actually collected and the duty of $9.60 per dozen quarts which eventually came into effect amounted to a loss in revenue of $1,610,000. The average monthly imports of champagne, which had been about $300,000 in 1908, rose to over $900,000 during those eight interim months of 1909. It should be borne in mind that the interval during which the change in the duty on champagne was impending was unusually long because of its connection with the commercial agreement. Nevertheless, the case illustrates the loss of duty which takes place in any period when legislation for increase of duties is pending.

Effect of Increase of Internal-Revenue Taxes on Withdrawals from Bond. Mention should also be made of the importance of this matter as related to internal-revenue taxes on commodities. In 1894 an increase was made in the tax on distilled spirits from a net rate of 924 cents a gallon to $1.10 a gallon. The bill providing for this increase was under consideration from December 19, 1893, to August 28, 1894. During that period a large amount of spirits was withdrawn from warehouse. The withdrawals amounted to about 92,500,000 gallons in the period of 1893-94, compared with only 64,500,000 gallons during the corresponding period of 1892-93. On the withdrawals of 1893-94 (92,500,000 gallons) the difference in revenue between the old and new rates on the quantity actually withdrawn was over $18,000,000.

Again, the act of June 13, 1898, the Spanish War revenue act, increased the tax upon manufactured tobacco from 6 cents to 12 cents a pound. During the seven weeks when the bill carrying this in crease was under consideration the withdrawals of manufactured tobacco from warehouse were about 55,000,000 pounds. In the corresponding period of 1897 the withdrawals had been only 40,000,000 pounds. On the withdrawals of 1898 (55,000 000 pounds) the new rate of 12 cents would have yielded $3,300,000 revenue above that from a rate of 6 cents. As a matter of fact, in the war revenue act of 1898 an attempt was made to prevent the loss of revenue by following the tobacco after it had reached the traders' hands. But certain concessions as to tobacco in store or in the channels of trade were made which amounted to an abate

ment of one-half the increased tax. In addition to the decrease thus permitted a considerable portion of unconsumed tobacco in the channels of trade escaped the new taxation.

During this same interim period of 1898 the taxes collected on fermented liquors, manufactured tobacco, snuff, cigars and cigarettes, large and small, amounted to $11,408,201. At the rates subsequently enacted the amount would have been $20,111,174. Thus the apparent loss in revenue in this instance was $8,702,973.

How Similar Revenue Problems are Met in

by a leading English authority, under "ancient usage in regard to customs and also excise duties," there has been a practice of collecting new duties of customs imposed by a resolution of the Louse of Commons from such date as is provided by the resolution." The resolution is ordinarily passed on the night of introduction of the budget, following the budget statement of the chancellor of the exchequer. Any change in taxes is put into effect practically at once, or on the date set by the resolution. The whole proceeding is later made regular by the law fixing the taxes. (See also TARIFF, LEGISLATIVE PROCEDURE.)

Importance of Legislation and of Contract Safeguards. Interim revenue legislation is necessary to protect the Government against the curtailment of revenue under any proposed legislation carrying increases in the rates. It is also necessary to prevent an artificial stimulus to importation and withdrawals for consumption which serve only the speculative purposes of traders. At the same time, the rights of those who have assumed contractual obligations to supply articles at a fixed price should be protected against loss due to suddenly increased taxes. It is found, for example, on inquiry in the field of imports at present on the free list, that there are many outstanding agreements calling for delivery of commodities contracted for sale at fixed prices, during periods ranging from two to six months without any saving clause enabling the contractor to add the newly imposed tax to the contract price. Investigation made by the Tariff Commission discloses that the following articles are imported in large quantities without any protection of the vendor against suddenly imposed duties, on contracts ordinarily calling for delivery within approximately the respective periods mentioned: Coffee, 30 to 60 days; sugar, 45 days; wool, 90 to 120 days; raw silk, 60 to 120 days, and, in some instances, 6 months,"

Precedents of Great Britain and the United States Concerning Outstanding Contracts. Persons committed by contracts are protected under interim tariff legislation in Great Britain by authorization to add the increased customs duty to the purchase price stipulated in any executory contract of sale, in the absence of any express agreement to the contrary. Equally suggestive, for equitable practice with reference to such contracts, is the wording of section 94 of the war internalrevenue law, enacted by Congress June 30, 1864. This section, which dealt primarily with the contracts of manufacturers for the delivery of their goods, provided, like the act of Great Britain, that tions for the payment of taxes, the seller might in case of prior contracts, not containing stipulaaddition to the contract price. The exact wording exact from the purchaser the increase of tax in

of the section follows:

"94. That every person, firm, or corporation who shall have made any contract prior to the passage of this act, and without other provision therein for Other Countries. France, Italy, Great Britain, subsequent thereto, upon articles to be delivered the payment of duties imposed by law enacted Canada, Australia, and other nations have legisla-under such contract, is hereby authorized and emtion or legislative procedure which protects the national revenue by preventing the evasion of increased taxes during the period when such taxes are being enacted into law. New or increased taxes are in these countries collected provisionally, pending legislation, subject to refund if the legislation fails of enactment. An illustrative method

is that adopted in Great Britain, where, as stated

powered to add to the price thereof so much money imposed on said articles, and not previously paid as will be equivalent to the duty so subsequently by the vendee, and shall be entitled by virtue

1 N. J. Highmore: The Customs Laws (2d ed., 1907), pp. 33–34. * Sir Thomas Erskine May, Parliamentary Practice (11th ed., 1906), p. 589.

thereof to be paid and to sue for and recover the same accordingly: Provided, That where the United States is the purchaser under such prior contract the certificate of the proper officer of the department by which the contract was made, showing, according to regulations to be prescribed by the Secretary of the Treasury, the articles so purchased by the United States, and liable to such subsequent duty, shall be taken and received, so far as the same is applicable, in discharge of such subsequent duties on articles so contracted to be delivered to the United States and actually delivered according to such contract,"

This statute, it may be said in passing, was enforced by an undivided court in the case of Babbett v. Young, 51 N. Y., 238.

The Tariff Commission has not thought it necessary to consider the converse case, that of duties lowered after an interim of discussion. The Government in such circumstance is not disadvantageously affected, since the very circumstance that a reduction or abolition of taxes is proposed indicates that a loss of revenue is contemplated and is not unwelcome. The importer gets notice, and has opportunity to adjust himself to the new conditions, from the same circumstance, namely, that there is an interim of discussion. That interim gives him opportunity for disposing of stocks on hand and so makes possible an easy adjustment to the new conditions. Moreover, where marked reductions in taxes or duties have been made in the past, Congress has provided that the changes shall take effect not immediately upon the enactment of the legislation, but at a future date, and thus has prevented difficulties from arising in connection with the existing stocks and outstanding contracts. This case, therefore, calls ordinarily for no special action. However, if separate treatment is desired of the results of lowered duties, the statute of Great Britain provides a precedent.

Possible Methods. In view of the fact that in the United States proposed taxes and duties are far more likely than in Great Britain, and perhaps elsewhere abroad, to be amended in the course of their consideration by Congress, it does not seem desirable to follow the European usage of collecting at once the proposed taxes. Instead of making actual collection of the new or increased taxes the same ends may be achieved with less severity through legal provision for the giving to the Secretary of the Treasury, under regulations to be determined by him, of good and sufficient surety bonds insuring payment of such proposed new or increased customs and internal-revenue duties as may be finally enacted. The exercise of the authority to require bonds should be subject to the Secretary's discretion, since proposed changes may be inconsiderable, or for other reasons not suitable for the application of the interim levy.

To apply safeguards to present conditions, two ways are open. First, that outlined in the United States revenue law of 1864, already quoted, and also found in the existing British law. Under this plan the person who has made, prior to the date fixed, contracts in good faith for the sale of articles taxed is entitled to recover from the vendee an additional amount equal to the increase in the newly levied tax. The second method is to ar range for suitable refunds to be allowed by the Secretary of the Treasury on satisfactory proof, within a limited time, of loss accruing upon contracts by reason of the altered duties.

110572-24-27

If the first of these methods is adopted the Government loses no revenue because of the outstanding contracts. If the second method is adopted the Government gives up the revenue that would have accrued on articles affected by the contracts. The first would better protect the interests of the Government.

One other contingency is suggested for consideration. It is possible that even in advance of a report by the Committee on Ways and Means expectation will be entertained of increased duties or taxes and that withdrawals will take place and contracts for the sale of taxable goods will be made prior to the date of such report. To meet this contingency the President of the United States might be empowered by proclamation to fix the date on and after which persons withdrawing goods should be liable for increased taxes eventually levied. In such case the Secretary of the Treasury would be empowered to require surety bonds in the manner already suggested. Emergencies will naturally arise in which such power in the hands of the President may be used to safeguard the public interest.

INTERMEDIATE TARIFF. A feature of the Canadian tariff law of 1907, of the Australian tariff of 1920, and of the New Zealand tariff of 1921, adopted for bargaining purposes.

Canada. The Canadian intermediate tariff provides duties higher than those of the British preferential rates but lower, upon the most important articles, than the rates of the general tariff. The general rates form the maximum rates of the tariff proper. The intermediate rates in the Canadian tariff made an average reduction of less than onesixth of the general rates. The intermediate schedule was intended to be used in negotiating for concessions by treaty with foreign countries.

Concessions to France.--As a result of this legislation a commercial convention was signed with France in 1907. The treaty accorded rates of duty lower than the general rates of the Canadian tariff on a long list of important French products, including silks, ribbons, laces and embroideries, velvets of cotton and silk, braids and cords, curtains, cotton clothing, gloves and mitts, buttons, jewelry, brushes, wines, drugs, soap, perfumes, and olive oil. In most cases the rates conceded to France were those specified in the intermediate tariff; in some cases special rates between the rates of the intermediate and the preferential tariffs were granted; in the case of drugs and some wines rates even lower than those specified in the existing preferential tariff were given to France, but these rates were incorporated in the preferential tariff as soon as they became effective on imports from France. In return for her concessions Canada received from France, in addition to the minimum rates already in force under the Franco-Canadian convention of 1893, the French minimum rates on a long list of important Canadian products, including live cattle, fresh canned meats, dairy products, fish, lumber and pulp, agricultural implements, typewriters, various other manufactures of iron and steel, furniture, boots and shoes, asbestos products, and cement.

Owing to opposition in France, the treaty was not ratified until 1910. It was urged in France against the treaty that the Canadian concessions were of little value, since they would be enjoyed under

U. S. Tariff Commission, Reciprocity and Commercial Treaties, Washington, 1919, p. 364.

« AnteriorContinuar »