THE AMERICAN TARIFF ON WOOLLEN GOODS.

The following statement, maae on the authority of the Yorkshire Chambers of Commerce, is of interest, as showing the enormous ad valorem rates which the American tariff imposes in some cases. While it will be observed that it is the duty per pound which brings up the whole rate to such very high figures ad valorem, it is necessary to remember that the Yorkshire woollen manufacturers are in this matter furnishing proof, not merely of exorbitant or prohibitory tariff figures in force in America, but also of the very low value of certain classes of their own goods. It is because the goods are actually so little worth that the American duty per pound runs up to such enormous per centages on the value.

FROM THE PRESIDENT OF THE YORKSHIRE CHAMBERS OF COMMERCE.

BRADFORD, Nov. 2, 1877.

C. O. Shepard, Esq., United States Consul, Bradford :SIR,-In order to meet your request for suggestions as to how the trade between this District and the United States can be increased either by legislation, executive action, or by commercial enterprise, I directed a circular to be issued to the Chambers of Commerce of this country, desiring them to collect information which might enable the Joint Tariff Committee of Yorkshire Chambers of Commerce to give a satisfactory answer to your question.

The replies received may be classed under three heads, viz.: those relating to (1) The light dress goods of Bradford, commonly known as worsted stuffs.

(2) The heavy woollens, chiefly manufactured in the neighbourhoods of Batley, Dewsbury, Heckmondwike, and

(3) The lighter woollens, which are generally produced in the districts of Leeds and Huddersfield.

Each of these classes will be treated separately, but it may be mentioned that all replies from the different Chambers of Commerce agree that the onerous duties levied upon the importations of our goods into the United States are the chief obstruction to the resumption of a trade formerly of great importance.

A revival of a mutually advantageous interchange of commodities is not to be expected whilst a prohibitory tariff prevents commercial enterprise from fulfilling its legitimate functions; but commercial enterprise on both sides of the Atiantic will certainly be ready to step in the moment that legislation shall give free scope to the merchant's operations.

It is well understood that England levies no duties upon either the raw or the manufactured produce of the United States, and is as willing to buy her raw cotton, iron, corn, or bacon, as her shirtings, watches, locomotives, or sewing machines, provided they are as cheap or cheaper than they can be produced at home.

Without, however, entering upon the region of political economy, and bearing in mind the practical results which your Government desires to accomplish by this enquiry, it will be my duty to examine into the details of the existing tariff, and to trace its effect upon the trade of this district with the United States.

That tariff is both specific and ad valorem. It thus combines the vices of both systems. It is, besides, encumbered with details which favour evasion, even more injurious to the honest importer than to the revenue.

Tables "A" and "B" show the American tariff to be the highest in the world with only one notable exception.

Examples will be found under the different heads into which I propose to divide this enquiry to prove that the combined ad valorem and weight duties produce the most anomalous results.

They have the effect to increase the duty levied in an inverse ratio to the value of the merchandise.

Thus the luxuries of the rich are less highly taxed than the necessaries of the poor.

Such is the unavoidable consequences of every weight duty, which in this instance is greatly exaggerated by an arbitrary classification and numerous categories.

The present exports to the United States consist in a great measure of fancy articles, worn by the rich, who look more to fashion than to price, and of such light and high priced cloths, which in the subjoined tables, "F." 1 to 8, figure as being subject to duties ranging from 60 to 100 per cent.

All woollens intended for the great mass of the people are taxed so highly that they are virtually excluded.

Thus a superfine black broadcloth may possibly be bought in New York at not more than double its price in Europe, whilst a good quality of black pilot, worth 1s. 8d. per yard, cannot be sold to the American labourer at less than from four to five times the price at which an operative in England may procure that good, useful and warm material for his coat.

It may be safely assumed that the law-making powers never contemplated such consequences when they framed the present tariff, and yet the above is merely one example among many, and an illustration of its practical results.

At present the American tariff, with its manifold intricacies, throws a not inconsiderable part of the import trade into the hands of unscrupulous persons, who, by perjury, collusion or direct smuggling, drive the honest importer out of the market, and injure the revenue, without in any appreciable degree benefitting the consumer. The letter marked "D" in the appendix will afford evidence of the presumption that such a corrective is really in actual operation, and the extract from the Board of Trade returns for October in appendix "C" may not be without a bearing upon this part of the question. It shows that the Dominion of Canada, notwithstanding its 171⁄2 per cent. duty and a large woollen industry, imported during the last ten months from England woollens to the amount of 32 pence per head, while our exports to the United States during the same period were only for 13 pence per head.

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It will be remarked that the answers, which were returned to the circular already referred to, show a general agreement in regard to the facts and calculations, though all were made from different data and given by different parties.

The details as to weight, length and width are vouched for by samples, which can be produced when necessary, and the prices are attested by the offer of manufacturers to execute any amount of orders at the given quotations with the usual trade discount. But it must be observed that, in so far as heavy woollens are concerned, the chambers had no recent transaction to report upon, but were compelled to refer to sales which were made before the present tariff acted as a virtual prohibition of a direct and legitimate trade with the United States.

The committee, from all experience with the tariffs of various countries, have come to the conclusion that so long as import duties on textiles shall be considered necessary by any State, simple ad valorem duties are not only the fairest to the consumer, but they are also the most easily levied.

The precautions which are provided by the American law against under declarations of value would be found amply sufficient to prevent fraud whenever they are strictly applied.

In conclusion this committee beg leave most respectfully to submit that in their opinion increased imports would certainly be paid for by larger exports, and that the best method to increase the trade between this country and the United States would be to simplify the tariff by retaining an ad valorem duty alone and to make the percentage low enough to permit the direct importation of our tissues, and by that means to render the trade of the smuggler unprofitable.

(Signed)

I am, sir, your obedient servant,

JACOB BEHRENS.

President of the Bradford Chamber of Commerce, and Chairman of the Joint Tariff Committee of Bradford, Batley, Dewsbury, Heckmondwike, Halifax, Huddersfield, Morley, Leeds, Wakefield and Kendal Chambers of Commerce.

FIRST DIVISION-BRADFORD DRESS GOODS.

The appendices show that the combined ad valorem and weight-duty produces the most incongruous results.

The general charge on these goods varies from 60 to 80 per cent. on the value here, but in one case (buntings) it amounts to no less than 125 per cent.

In many cases the exigencies of the tariff are met by the production of goods of inferior usefulness.

Thus lastings and italians, both articles of very general consumption, have to be specially manufactured for the American market by reducing their weight so as to bring them within certain weight limits, and they thus become too light for the regular wear and tear. The same articles sent to countries which impose a simple ad valorem duty are made heavier, stronger, and consequently much more useful to the wearer.

Italians intended for the button manufacturer are admitted at a reduced rate of duty if they are punched with holes in every nine inches in the whole length and width of the piece.

The button manufacturer is thus favoured, and the wholesale tailor or boot manufacturer is not. A typical instance of the untoward effects of the tariff given in the ap pendix deserves to be specially quoted. A piece of fancy dress goods 22 inches wide, 50 yards long and weighing over 4 ounces per square yard, if made from cheap material to suit the means of the working class, and costing 6d per yard, would pay duty at the rate of 104 per cent. of the value, while a piece of the same weight and dimensions, but made of more costly material and worth 12d per yard, is charged 69 per cent.

SECOND DIVISION-HEAVY WOOLLENS.

These are the staple produce of the woollen district of Yorkshire, but the replies from all the Chambers agree that the duty has completely put a stop to every direct trade with the United States in these goods.

The duty on every kind of cloth, be it low or fine, cheap or dear, is uniformly 50 cents per pound weight and 35 per cent. of the value.

The great bulk of mixed woollens reported from Yorkshire are worth from 1s to 1s 6d per pound. Taking the average at 1s 4d, the 50 cents weight duty alone amounts to 156 per cent. of the cost; and with 35 per cent. added, the total of the combined duties amounts to 191 per cent. ad valorem.

The subjoined tables show that in many cases the duty amounts to even a much higher per centage.

THIRD DIVISION-LIGHT WOOLLENS.

Light woollens are either composed of wool alone or mixed with cotton, and are used for gentlemen's coats or ladies' cloaks. They are generally made of more expen sive material than the heavy woollens.

The weight duty does not bear the same relation to the value which prevents all trade with the States in low fabrics, and, as has been explained before, these light woollen are sold to customers with whom price is no object and fashion all-powerful. Wherever in the subjoined lists the duties descend to 100 per cent. of the cost the article belongs to this class of goods.

APPENDIX "A."

Import duties levied in European countries and the united States on mixed Brad ford stuff goods, average value £20.6 per cwt.

Duto per
cwt.

Per cent of duty.

100 kilos 16 frcs.

ad val.

Import duties levied in European countries and the United States on mixed woollen cloths, average value 1s 4d per lb. or £7.10.0 per cwt.

Extract from the official Board of Trade returns exports from the 1st January to 21st October, 1877, to the United States (42,856,000 inhabitants) to the Dominion of Canada (3,727,000 inhabitants). .

Woollen cloth

Worsted stuffs.

Carpets.....

United States.

Canada.

APPENDIX "D"-AN INTERESTING CASE FOR THE BOOT AND SHOE TRADE,

BRADFORD, 6th September, 1877.

Jacob Behrens, Esq., President of Bradford Chamber of Commerce:

I wish to call your attention to the effect of the present fiscal laws of the United States upon an article, in the exportation of which we have been principally engaged. I refer to the article serge de Berri and Lasting, hitherto largely issued for the manufacture of boots and shoes in America (and I presume that this is merely an illustration of every other textile article). The duties levied thereon are 50 cents per pound and 35 per cent. ad valorem. A piece of serge de Berri weighing fourteen pounds and co sting 50s. pays duty 30s. 4d. for weight and 17s. 6d. for value, or 47s. 10d. per piece, oroabout 94 per cent. on cost in this market. Now, mark, the consumer has to pay a pr fit to the importer, and to the boot and shoe maker, not only on the cost here, but also on the cost there after payment of the duty, rendering the price enormous, to the great detriment of the customer and injury of trade. This duty is levied on an article -I had almost said a raw material for the manufacture of boots and shoes, in which America employs so many thousands of hands, and in making the machinery for which she beats almost all other nations.

This system has ruined their large export trade, as attested by General rrancis A. Walker, chief of the bureau of awards at the Philadelphia International Exhibition, in his Report of the boot and shoe exhibit.

The natural results of such a system have been the gradual strangling of the trade between the two countries, or the transference of what is left into the hands of the smuggler, the briber, or the perjurer, a system which robs the exchequer and impoverishes the consumer. Every respectable house on this side of the Atlantic as well as on the other will be compelled to abandon the trade, and I regret to say that this state of trade has been produced by the high import duties of the United States.

Upon the article buntings which was formerly largely exported from this district

to the United States, a duty of 120 per cent. has been put.

The natural result has been that the trade with the country has ceased, the American Government has lost all revenue, and the consumers of that article are paying 50 shillings for what can be bought here for 18s. 6d.

I know of no other means, in reply to the question which has been asked of us, to increase and enlarge the commerce between the two countries than to recommend a large reduction of the import duties in America by the total abolition of the duties on weight or measure and the imposition of such a moderate ad valorem duty as will make fraud not worth risking, and which I am satisfied will in time produce the largest revenue to the Government.

Believe me, yours truly,

(Signed)

WM. BROWN,

Partner in the firm of Stansfeld, Brown & Co.

P.S.-I may state that our agent and friends in Boston write that lastings serge de Berri of known makes in this market are sold regularly at 5 to 10 per cent. less than any cash house can import them.

In Appendix "E." the Bradford Chamber of Commerce gives six examples of the absurd inequality of the working of the tariff. Thus the duties on a given case of satin de chine goods worth £67 3s 4d amounts to only £44; while an increase of less than £1 to the value of the goods entails an increase of duties amounting to £10 11s 6d.

Appendix "F." contains a statement from the Huddersfield Chamber of Commerce showing the duties on such articles as red padding, savelist cloth, black sealskin, black doeskin, cheviot coating, worsted tartan, &c., &c., to range from 76 per cent. to 227 per cent. On flushings the duties would now amount to 360 per cent. if shipments were made at all.

The Dewsbury Chamber of Commerce reports duties on three samples of black and blue "president," to amount to 191, 175, and 160 per cent. On another sample of blue union "president," 217 per cent.

The Batley Chamber of Commerce gives tables showing the duties on pilot cloths and "president" manufactured in that region to amount to from 168 to 228 per cent. The Heckmondwike Chamber of Commerce gives figures showing how the people of the United States have to pay two or three prices on carpets. We quote an example: "It will be seen that an English tapestry carpet, costing 56 cents here, will by the time it reaches the consumer in the United States, have increased its price to $1.34, or nearly 2 times its original cost."

The same Chamber of Commerce also testifies that the duty on bed blankets and railway rugs is now prohibitory; thus explaining how the price of blankets to the poor people of the United States has more than doubled since the war.