State of the Union Addresses — John Stuart Mill — John Shaqi
State of the Union Addresses
John Stuart Mill · en
A duty laid upon an article which can not be produced in this country, such
as tea or coffee, adds to the cost of the article, and is chiefly or wholly
paid by the consumer. But a duty laid upon an article which may be produced
here stimulates the skill and industry of our own country to produce the
same article, which is brought into the market in competition with the
foreign article, and the importer is thus compelled to reduce his price to
that at which the domestic article can be sold, thereby throwing a part of
the duty upon the producer of the foreign article. The continuance of this
process creates the skill and invites the capital which finally enable us
to produce the article much cheaper than it could have been procured from
abroad, thereby benefiting both the producer and the consumer at home. The
consequence of this is that the artisan and the agriculturist are brought
together, each affords a ready market for the produce of the other, the
whole country becomes prosperous, and the ability to produce every
necessary of life renders us independent in war as well as in peace.
A high tariff can never be permanent. It will cause dissatisfaction, and
will be changed. It excludes competition, and thereby invites the
investment of capital in manufactures to such excess that when changed it
brings distress, bankruptcy, and ruin upon all who have been misled by its
faithless protection. What the manufacturer wants is uniformity and
permanency, that he may feel a confidence that he is not to be ruined by
sudden exchanges. But to make a tariff uniform and permanent it is not only
necessary that the laws should not be altered, but that the duty should not
fluctuate. To effect this all duties should be specific wherever the nature
of the article is such as to admit of it. Ad valorem duties fluctuate with
the price and offer strong temptations to fraud and perjury. Specific
duties, on the contrary, are equal and uniform in all ports and at all
times, and offer a strong inducement to the importer to bring the best
article, as he pays no more duty upon that than upon one of inferior
quality. I therefore strongly recommend a modification of the present
tariff, which has prostrated some of our most important and necessary
manufactures, and that specific duties be imposed sufficient to raise the
requisite revenue, making such discriminations in favor of the industrial
pursuits of our own country as to encourage home production without
excluding foreign competition. It is also important that an unfortunate
provision in the present tariff, which imposes a much higher duty upon the
raw material that enters into our manufactures than upon the manufactured
article, should be remedied.