LOWER DUTIES

Evening Post, Volume LXXXVI, Issue 103, 28 October 1913, Page 2

LOWER DUTIES

AMERICAN TARIFF ADOPTED TRADE WITH NEW 3EALAND. OPPORTUNITIES PRESENTED. (From Our Own O ;v,syondeiit.) SAN FRANCISCO, 28th Sept. The Wilson Tariff Bill, which so materially reduces the Customs duties on foreign imports, is within a few days of becoming law. Having passed the Senate it has for more than two weeks been in the hands of a conference committee consisting of members ,01 % both Houses. This committee, it was announced yesterday, had reached agreement upon all points except ono comparatively unimportant particular. It is the belief in Washington that tho Bill as finally shaped by the Conference Committee will be adopted by both Houses to-morrow or tho next day, and that President Wilson^ whose wishes it embodies from A to Z, will hnmediately sign it. In this connection it is recalled how much more fortunate President Wilson is than the last Democratic President who attempted to revise the tariff. When the measure which President Cleveland had urged was presented to him for signature, he denounced certain members of his own party for "perfidy," and refused to sign the Bill, allowing it to become law, however, by lapse of time. Whatever be the views of American farmers on the new tariff, it is not to be questioned but that it will advantage the primary producers of Australia and New Zealand. . Tho outstanding feature of the measure is the large reductions it makes in foodfituffs, many articles hitherto dutiable being placed on the free list.. Notwithstanding the determined and resourceful antagonism of American woolgrowers, raw wool goes on the free list. Tin's is a pronounced victory for President Wilson, and certainly would not have remained in tho Bill but for his insistence from the beginning. Indeed, the original Democratic proposal waa for a tax of 15 per cent, but the President induced the leaders of the party to strike this out. Australian meat has already found a regular market in California, with the existing duties. Under the lowered rates this trade will doubtless expand to the limit of what the Commonwealth can afford for export. Butter and cheese from New Zealand and Australia are expected to be laid down on this market in the near future. In fact, the Western Meat Company has addressed a circular to the dairymen and creamery operators all over California, warning them what to expect and how to meet the new conditions. Tho Bill reduces tho duty on butter &nd cheese from 6 cents to 2£ cents a pound. The Western Meat Company, in its circular, states that on the basis of present markets in Australia and New Zealand butter can be laid down in San Francisco at about 30 cents a pound. rt of course," the circular complacently remarks, "fine California^ butter will have the preference ' t over the imported, but it remains to b<j seen to what extent the imported will be sold. To maintain the position of California butter California creameries must have not only good cream, but fine - The s company then gives ten. ■rule's* wfiicK-lwillt keep up the,, grade "of cream, and consequently of butter. INCOME TAX. A feature of the revised tariff law to which not much attention has been paid is the introduction of ttio income tax as part of the revenue system of this Not since the Civil War has the United States collected an income tax. The last time such a tax passed Congress prior to the present occasion the Supreme Court declared it unconstitutional, but since then the constitution has been amended so as to mako the income tax legal. Tho tax is to bo graduated, although the representatives of wealth strove with might and main to have it uniform. It will range from 1 per cent, up to 7 per cent., the latter figure applying to incomes in excess of £100,000 per annum. Incomes of £600 a year and less will bo exempt, if earned by single men. In the case of married men incomes of £BCO a year and less- will be exempt. A proposal was seriously made to allow a certain exemp tion for every child in the family, but this was rejected. It remains to be seen just how the every-day American citizen will appreciate having to file with the Government a sworn statement of his income. Although it is a commonplace in other nations Americans of the present generation have had no experience of the system. It is freely predicted that the annoyance and irritation caused by tho working of tho income tax law is. likely to bring tho Wilson Administration into disfavour. The avowed purpose of the tax is to compensate for tho loss of revenue caused by the reduced 'Customs duties. If the revised tariff does not bring about a reduced cost of living, as is vehemently promised by its sponsors, the Democratic Party is likely to hear from the country.