Economics Volume II: Modern Economic ProblemsFetter, Frank A. (Frank Albert)
General
Economics Volume II: Modern Economic Problems
Fetter, Frank A. (Frank Albert)
Economics
Articles placed on the free list were raw wool (which had borne a rate
equivalent to about 44 per cent), metals, agricultural implements, raw
sugar (the lower rate to go into effect gradually), coal, lumber, many
agricultural products including live cattle, meats, wheat, corn,
flax, tea, and hemp, and numerous manufactures including boots, shoes,
gunpowder, wood pulp, and print paper.
Moderate reductions were made in the schedules for chemicals, earths,
cotton goods, and sundries, while rates on various luxuries were
either unchanged or raised. Left almost unchanged were the schedules
for tobacco, for spirits and wines, and for silks (already very high).
This act was signed October 3, 1913, and had been in operation about
nine months when the great war broke out in August, 1914. What its
effects would have been under normal conditions we can judge little
from the actual experience. The first eight months that the act was in
operation, the _ad valorem_ rate on dutiable goods proved to be 36 per
cent (about 4 per cent less than in the preceding year) and the rate
on free and dutiable together about 14 per cent (over 3 per cent less
than the preceding year). The first complete fiscal year (that of
1915) under the act, the average rate on dutiable goods was 33.5 per
cent and that on all imports was 12.5 per cent. Evidently this is far
from a "free trade tariff." The reduction in the average _ad valorem_
rate is less than was expected. Many of the reductions had little
effect, the former rate having been much higher than was needed to
exclude the goods. In other cases the old rates were but nominal
and inoperative because they were upon goods regularly exported,
not imported (e.g., farm products, cotton goods, and some other
manufactures). But some of the reductions doubtless will force the
less efficient plants in some industries touched to increase their
efficiency or go out of business. Time, in any normal period, is
needed for adjustment, but an adjustment of a most abnormal kind is
in progress during the war. Imports from Europe have fallen greatly,
while exports are enormously increased. Old industrial establishments
have been converted to different and temporary uses. The conclusion of
the war must bring a new readjustment that must cause a severe shock
to some enterprises--and this must have been so under any possible
variety of tariff.[12]
Public-domain text, read in full here on John Shaqi.
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