It becomes now our duty respectfully to suggest such provisions in the contemplated revision of the tariff laws as will place our industry on an equality with other American manufactures; will reimburse the duties and taxes paid upon materials used in manufacture, and for the internal revenue; and give us some assistance in competing with the low wages and accumulated capital of other countries, and in preserving that liberal compensation for labor demanded by the necessities of American civilization. In respect to the duties upon foreign-knit goods, composed in whole or in part of wool, we commend to your attention, and express our approval of, the provisions contained in the proposed tariff on manufactures, recommended by the executive committee of the National Association of Wool Manufacturers in a statement addressed by them to the United States Revenue Commission. The provisions in relation to knit goods recommended by that committee were adopted after full consultation with the leading knit-goods manufacturers in the country, and were cordially approved by the latter. The views hereafter expressed in the statement referred to are fully in accordance with our own, and the placing the manufacturer of woollen knit goods upon an equality with other manufacturers would remove much soreness existing in relation to the inequality of present provisions; an inequality, however, mainly attributable to the want of proper representations by our own interest. The portion of statement referred to, respecting knit goods, is as follows: "It is believed that the provisions under consideration operate more equitably than those of the present tariff in respect to a most important and rapidly-developing industry, that of knit goods. Under the present tariff the duty on shirts, drawers, and hosiery of wool, or of which wool shall be a component material, not otherwise provided for, is fixed at twenty cents a pound, and, in addition, thirty per cent. ad valorem, the specific duty being four cents, and the ad valorem duty being ten per cent. less than upon woollen cloths. The wool which enters into a majority of these goods is fine American fleece, and, if wholly composed of wool, they would be clearly entitled to the same duty as woollen cloths. A large class of knit goods, including the fancy hosiery, a rapidly advancing and peculiarly American industry, furnishing goods of great beauty and taste, and consuming the most expensive aniline dyes, is made wholly of American clothing wool. These goods, which would cost more than eighty cents per pound, would bear under the bill proposed a specific duty of fifty-three cents, and the same ad valorem duty as is provided for other goods. Another class of knit goods has a portion of cotton, which is introduced to prevent shrinkage. It would be impracticable to separate the goods composed wholly of wool from those partially composed of cotton by placing a less duty on the latter, as all foreign competing goods, whatever their value, would have some cotton placed in them to bring them within the lower duty. The distinction is sufficiently provided for by the minimum scale of duties. It is desirable that the specific duties on the knit goods should be sufficiently ample to secure full compensation, as the waste in hosiery goods, from cutting, trimming, and fitting, is greater than in other woollen fabrics, while there is a large consumption of trimmings, such as binding, tape, spool-cotton, silk, buttons, linen thread, &c., on which duties are paid. The industry of knit goods is entitled to special consideration, from the national importance which it has already attained. The number of sets of machinery employed upon this class of goods is estimated by a committee of the National Association of Knit-Goods Manufacturers at four hundred. The number of hands employed, men, women, and children, is estimated at ten thonsand. The aggregate amount of wages paid is set down at $3,000,000 per annum; the amount of wool consumed, at six million five hundred thousand pounds per annum. The production of the four hundred sets is estimated at $19,000,000 per annum, paying a revenue tax of $1,152,000."* With respect to the duties upon foreign knit goods of cotton, we have only to commend to your attention, as fully in accordance with the views of the manufacturers of cotton hosiery, the statements presented and provisions. recommended in the report made by the National Association of Knit-Goods Manufacturers on the second day of May last, by a committee consisting of Amos A. Lawrence, Henry V. Ward, George C. Bosson, S. G. Weston, and Thomas Appleton, which is as follows: "The committee appointed by the National Association of Knit-Goods Manufacturers respectfully represent: that, after a careful inquiry into the causes which operate to create the present depression and disaster in cotton fabrics of this description, they have become convinced that any reliance for protection on the present tariff of ad valorem duties is misplaced; that the rate of thirtyfive per cent. ad valorem is nominal; that the real rate is much less. "We do not know why this important branch of industry, conducing so much to the comfort of the whole body of our people, should not receive, during its infancy, the same care of the government which has been extended with such happy results to other departments of labor. "Already we have made great progress in transferring from Europe the machinery and the skill which has heretofore laid us under heavy tribute. Our production is reckoned by millions, and, coming into competition with the foreign importations, it has caused a heavy reduction in the price of all these articles of domestic use. Meantime, it has added another impulse to the energy and ingenuity of our people, and has opened a new avenue to the employment of capital; but the internal taxes, and the practices of foreign agents, This estimate was derived from statistics obtained from one locality, and from only one branch of the manufacture. From more recent information, we estimate the whole number employed in all branches at not less than 40,000. have rendered nugatory the protection which it was designed to grant us, and which is now essential to save us from serious and, with many of us, from ruinous loss. "On an article manufactured here, similar to a foreign fabric, costing at the place of exportation one hundred cents, the excise duty under the proposed law would be ten cents, the tax on cotton ten cents, and the excise and other taxes on the materials used in the manufacture five cents and upwards. making in all twenty-five cents, thus leaving only ten cents instead of thirty-five, which it was the desire of Congress to grant. This rate of duty is altogether inadequate to afford us encouragement or protection, (even if its influence were not destroyed by the undervaluation of foreign goods for custom-house entry,) nor will it meet the wants of the government for revenue. "The committee therefore recommend the adoption of the following schedule of duties: 66 'On hosiery, shirts, and drawers, composed wholly of cotton, valued at a price not exceeding one dollar per dozen, twenty cents per pound; valued at over one dollar, and not exceeding two dollars per dozen, thirty cents per pound; valued at upward of two dollars per dozen, forty cents per pound, and, in addition thereto, thirty-five per centum ad valorem; and on all knit goods made wholly of cotton, not otherwise provided for, thirty cents per pound and thirtyfive per centum ad valorem." Commending the whole subject to your favorable consideration, we have the honor to be, sir, very respectfully, your obedient servants, Hon. JUSTIN S. MORRILL, CHARLES H. ADAMS. Chairman of Committee of Ways and Means, United States House of Representatives. INDEX. General report of United States revenue commission.. Preliminary remarks . Revenue system of Great Britain Revenue system of France... National revenue system.... Proposed revenue policy for the future. Sources of revenue.. Imposts or customs Internal revenue. Distilled spirits.......... Cotton Tobacco Incomes Banks Petroleum Naval stores Licenses.. Stamps... Legacy and succession duties. Tax on gross receipts Tax on sales Miscellaneous Aggregate estimates Reduction of public debt.. Reciprocity treaty Organization and administration of revenue system... Special report No. 1-on tea as a source of revenue... Past consumption of tea..... Present consumption of tea. Cost of tea. Rates of duty Differential duties No abatement of duty in consequence of damage..... Special report No. 2-on coffee, &c., as sources of national revenue. Imports of coffee into the United States .... Rates of duty on coffee in different countries.. Adulterations of and substitutes for coffee.. Effect of the use of chickory.... Amount of coffee supplied to the world.. Average production of coffee countries Page. 1 6 10 13 16 18 18 19 23 25 26 26 27 28 28 29 29 29 31 32 32 34 34 41 42 44 51 52 52 55 58 59 59 61 62 62 63 64 65 65 66 68 69 69 71 Special report No. 3-on cotton as a source of national revenue Best manner of levying and collecting tax.. Appendix A-cotton trade of India Appendix B-selections from testimony in relation to cotton........ Relation of excise to the cotton manufacture..... Tables illustrating progress of cotton trade and industry ........ Special report No. 4-on sugar and molasses as sources of national revenue.. Consumption of sugar in the United States... Page: 72 72 78 83 131 132 138 138 Consumption of molasses in the United States 143 Duties on sugar and molasses..... Revenue from sugar and molasses..... Tables illustrating the distribution of sugars.... Appendix A-varying value of sugars Special report No. 5-on distilled spirits as a source of national revenue 144 147 151 152 155 155 Results of British legislation ...... 156 Relation of manufacture and sale of distilled spirits to national revenues 157 Production of distilled spirits in the United States... 159 Reduction in consumption and production of distilled spirits in United States... 161 Report of brewers' commission on taxation and manufacture of malt liquors in Europe. 198 177 178 178 188 194 Great Britain.... Belgium...... Grand Duchy of Hesse Darmstadt.. Grand Duchy of Nassau... Grand Duchy of Baden.. Wurtemburg Bavaria Austria. Saxony. Prussia.. Frankfort-on-the-Main Switzerland France... Russia... Contingencies of brewing business Comparative rates of taxation .... Importance to agriculturists of brewing interest.. Effects on public morals of use of malt liquors Special report No. 7-on petroleum as a source of national revenue.. History of American petroleum ... Analysis of petroleum.... Combustion of petroleum.... Foreign sources of supply.. 198 208 209 209 210 211 211 214 217 217 219 220 220 221 222 222 223 223 225 227 231 234 236 |