To the Editor of the "Noxmt-Cinwa Dany New Sm—The Customs Revenue from importation of merchandise is falling off. As a source of revenue high tariffs are bound to be a disappoint ment in the long run, The announce: ment is no surprise to importers. 4s evident that importation fs. not wanted. Is not the so-called adverse trade balance pictured ax something to be afraid" of under all clrcume sent the payment for goods ex:
The fect that imported goods rep porled from China is lost sight off Wrong conclusions are. sometimes drawn from correct statistical ligures. Who benefits when' someone brings more than he takes away? Is nota rear part of the excess import value spent or invested I China in one form or -other? Is it not probable that-much more would be invested foreigners were allowed to own and in Ching "for build: ting homes, otices, godowns and faciovies in or around trading centres oF bungalows In holiday resorlss Whose fault is it that land. values coullying districts of Shanghat ate going down? A wise policy" in dhs Fegard would work wonders root for importation being not wanted is the method. for assessing the value of merchandize: when Ported. Importers are looked puls they intended to chreut the Ceatoms every' time they get a consignment of tnerchandlee for their ow account, The fet is overioked that itis not duty but the public ne. importer who finally" pape
he public's buying power depends on general prosperity, a state of tates dicate to defi.
"The fundamental "requirement for Wella) individuals' te to Income (or profit in business) here 1s danger "of impending bankruptey. Business needs a fair margin of prof, Prot depends largely" upon' the volume and rapidity of turnover, Stagnation of trade, 0 u gros caused by high tariffs and Incompatible with' genet perity.
When foreign countries are pro: vented from sending merchandize in payment of goods available for. ox-ort, they simply cannot buy! Business after all is not a question of money Dut of goods changing hands, usually overlook thatthe real pure pose of money Is to form a common denominator for making the exenange of goods and service possible.
A vital question is, what kind of Hoots should be exchanged. TE we culling out luxuries we will And that what fo-day is a: convenience tomorrow is luxury. "If we buy only. what is necessary to keep us alive we have to lower our standard of living and do without the many convents fences that make elvitization. shall have {0 do without or!vate /motor-cars, cinemas, radio and many other things.
'Prevent importation" is evidently the aim of high tariffs, "Not being salisfled with the income from these {arif', Customs officials place a hleh= cer valuation on merchandise than actual cost. This is an. Instance where killing the proverbial moore Anat ays the golden eggs may be Selling prices or market values are highly problematical nowadays, The method, coming into use more and more, of charging duty on the selling priee'of merchandise is a screw with out cad. Here is the proof: Adcum-Sng that the landed cit) cert of a article is $1.00, the duly 35 per cent, (not), the importer's cost of doing Dusiness and. profit 10 ner cent. the selling price would be $80. Duty ut 33 per cent. on one Dollar is #035 but on $1.50 it Is $082%! In' order {to fol his money back the Impsrler has to add therefore to the orlelnal cost of $1.00 the duty $0521 and for charges and profit $0.18 making the selling price now $1,074, The next time he imports the same article duty will be charged. on $1.67. Tt the retail price is taken ax bate for wssecsing the value, things Toot mic ree. There uriist. be added" the rolail merchant's cost of doin hnslness, which, "including advertising. lo., is most likely about 20 per cent, Itihis method of inereasine the cost mezchandize—representing - vavmen's' from foreign countriae—te not a discouraging restriction of (rade, what is It?
Tt fe well to remember in thie con nection that every" restriction trading In merchandize means a corresponding reduction of (ransnerlae tion, Insurance, banking. ete, and a percentual increase in overbend ex penses resulting in reduetione of rtatt office space, advertising "allowance, fee. The ola) result, called depres:
is nothing mysterious or une avoidable, but those in authority will have todo something more than xiving assurances of goodwill and Sfianghal, Feb. 21,
Text read from the printed page and cleaned; old type leaves the occasional error.