FINANCES OF THE UNITED STATES. 



285 



The following statement of importations of 

 the classes of merchandise chiefly concerned, 

 is derived from the Bureau of Statistics, and 

 to some extent serves to show the effect of the 

 act of March 3, 1875, on the duties received : 



Value of importations of cotton, glass and 

 glassware, India-rubber and gutta-percha, 



' iron and steel, leather, metals not otherwise 

 provided for, paper, straw, wool (including 

 hair of alpaca, etc.), and manufactures there- 

 of, for the nine months ending September 30, 

 1874 $94,911,416 00 



Value of importations of same articles for cor- 

 responding period of 1875 (including the 

 seven months next succeeding the act of 

 March 3, 1875) 81,223,542 00 



Decrease $13,693,874 00 



This decrease was occasioned principally by 

 the falling off in two classes of importations, 

 viz. : 



Iron and steel and manufactures thereof $8,260,066 00 



Wools and manufactures thereof 3,944,203 00 



$12,204,274 00 



Returns for the four months ending June 30, 

 1875, show that of importations for that period 

 amounting to $30,547,005, duties have been 

 paid on $23,629,606 withdrawn for consump- 

 tion, yielding $10,954,719 of revenue. In this 

 amount is of course included the ten per centum 

 restored by the act of March 3, 1875, showing 

 an apparent increase for four months of $1,- 

 095,471.90. But in this connection there is to 

 be considered the fact that, for the correspond- 

 ing period of the year 1874, the importations 

 of the same classes of merchandise amounted 

 to $36,022,467, showing a decrease in impor- 

 tations for the four months ending June 30, 

 1875, of $5,475,462, of which $4,800,378 is due 

 to the falling off of importations of iron and 

 steel and manufactures thereof. 



In the collection of duties upon importations, 

 two evils are chiefly operative to prevent the 

 Government from realizing the full measure of 

 revenue first, smuggling; and, secondly, un- 

 der-valuation. 



The first of these evils is more generally prev- 

 alent, especially on the northern frontier, than 

 is commonly supposed, the difficulties attend- 

 ing a proper surveillance of that frontier, under 



existing circumstances, being very great, if not 

 in some respects insurmountable. Without 

 going into full details, it may be said, by way 

 of illustration, that in the four collection dis- 

 tricts of Vermont, Charnplain, Oswegatchie, 

 and Cape Vincent, having a frontier line of 

 more than three hundred miles, with eight prin- 

 cipal ports or stations and forty-one minor sta- 

 tions, after deducting the number permanently 

 employed at such principal points and four for 

 service in Canada in connection with the seal- 

 ing of cars, there are but fifty-nine officers re- 

 maining for service at the minor stations and 

 as a coast-guard to prevent smuggling. Deduct- 

 ing from this number one officer for perma- 

 nent service at each minor station, there re- 

 main but fourteen as a preventive force, or 

 less than one man for every twenty-one miles 

 of frontier. 



These statistics apply to portions of the bor- 

 der which offer speedy and direct means of 

 travel between Canada and the United States, 

 and which, during several months of the year, 

 are thronged by travelers of every condition 

 and with every variety of object in view, from 

 those bent merely on pleasure or legitimate 

 business to those whose chief occupation is to 

 defraud the revenue. 



Information obtained by the Department, 

 from trustworthy sources, renders it quite cer- 

 tain that systematic frauds have been perpe- 

 trated by smuggling over the border wines, 

 brandy, and other articles of merchandise. 

 Similar observations might be made as to other 

 parts of our frontier. 



The second geneVal cause which operates to 

 prevent the Government from receiving its full 

 measure of dues is undervaluation, a source of 

 perhaps greater loss than the direct offense of 

 smuggling. This evil is attributable, in part, 

 to the devices of dishonest importers, in part 

 to the fluctuation in market values, but more, 

 probably, to the defects of the appraisement 

 system itself. 



The following tabular statement shows the 

 comparative receipts from the various sources 

 of internal revenue, for the fiscal years ending 

 June 30, 1874 and 1875, respectively: 



This table is made up from the reports of 

 collections made to the Commissioner of In- 

 ternal Revenue, which include commissions on 

 sales of stamps paid in kind, and therefore do 

 not enter into the actual cash receipts of the 

 Treasury. They include, also, sums reported as 

 collected but not actually paid into the Treas- 



ury at that time. Hence there is an apparent 

 discrepancy between the totals here shown and 

 the aggregate amount deposited on account of 

 internal revenue as shown by warrants cover- 

 ing the same into the Treasury for the fiscal 

 year. 

 The receipts from internal revenue for the 



