making armor-plates and bulletproof steel and high-speed steel. 4. Tungsten-45¢ per pound on tungsten content, par. 302. Domestic production from ores in California and Colorado is small. Used in hardening steel. Imports from China and Bolivia. 5. Magnesite per pound, par. 204. Used in refractories for steel manufacture and in cement for floors. Industry developed in Washington and California during the war. Imports are chiefly from Austria, British India and Greece.

6. Abrasives-Free, par. 1570.

Nat

ural abrasives being superseded by artificial abrasives produced chiefly in Canada.

7. Barytes-$4 per ton, par. 69. Used in manufacture of lithopone for paint and as a filler for heavy boards such as bristol board. Before the war about 40 per cent of our consumption was imported from Germany. The domestic

output has increased.

8. Vanadium-Free, par. 1619. Used

for a ferro-alloy. The world's output is practically under American control. Deposits in Peru, Colorado and Utah.

9. Fluor spar-$5.60 per ton, par. 207. Used in metallurgical work, in

manufacture of opalescent glass and enamel ware. Domestic supplies, largely in Illinois and Kentucky, are limited-imports from England competing along the Atlantic Coast.

10. Mica-4¢ per pound or 25 per cent according to value, par. 208. Important as an insulator. Essential in manufacture of electrical machinery. Principal domestic producing states are North Carolina and New Hampshire. Imports are from India and Canada. India, the United States and Canada now produce 95 per cent of the world's output. 11. Quicksilver-25¢ per pound, par. 386. Practically all domestic production is in Texas and California. War prices led to increased production. Spain, Italy and Austria have been the chief producing foreign countries.

12. Natural Graphite-10 per cent, 20 per cent or 11⁄2¢ per pound, par. 213. Crucible makers have insisted on having Ceylon graphite, although Montana and Alabama produce an acceptable grade. Quantity available may be sufficient for many years. Chief sources of import are British East India, Madagascar and Korea.

No tax or duty shall be laid on articles exported from any state, and

No State shall, without the consent of the Congress, lay any imposts or duties on imports or exports, except what may be absolutely necessary for executing its inspection laws; and the net produce of all duties and imposts, laid by any State on imports or exports, shall be for the use of the Treasury of the United States; and all such laws shall be subject to the revision and control of Congress.

At the time the Constitution was being considered, Virginia levied an export duty on tobacco for revenue purposes. The southern delegates at the Constitutional Convention in general, however, favored the idea that the Federal Constitution should prohibit export taxes. The opinion was general that such taxation would fall on the planter and limit his development. But some of the delegates favored granting to the Federal Government the power to impose export taxes. The following comments are from James Madison's journal: 15

Mr. Madison: First, the power of laying taxes on exports is proper in itself; and as the States cannot with propriety exercise it separately, it ought to be vested in them collectively. Secondly, it might with particular advantage be exercised with regard to articles in which America was not rivalled in foreign markets, as tobacco, etc. The contract between the French FarmersGeneral and Mr. Morris, stipulating that, if taxes should be laid in America on the export of tobacco, they should be paid by the Farmers, shewed that it was understood by them, that the price would be thereby raised in America, and consequently the taxes be paid by the European consumer. Thirdly, it would be unjust to the States whose produce was exported by their neighbours to leave it subject to be taxed by the latter. This was a grievance which had already filled New Hampshire, Connecticut, New

15 Madison, James: Journal of the Debates in the Constitutional Convention, pp. 539, 540 and 574.

Jersey, Delaware and North Carolina with loud complaints, as it related to imports, and they would be equally authorized by taxes by the States on exports. Fourthly, the Southern States, being most in danger and most needing naval protection, could the less complain, if the burthen should be somewhat heaviest on them. And finally, we are not providing for the present moment only; and time will equalize the situation of the States in this matter.

Mr. Gouverneur Morris: However the Legislative power may be formed, it will, if disposed, be able to ruin the country. He considered the taxing of exports to be in many cases highly politic. Virginia has found her account in taxing tobacco. All countries having peculiar articles tax the exportation of them-as France her wines and brandies. A tax here on lumber would fall on the West Indies and punish their restrictions on our trade. The same is true of live stock, and in some degree of flour. In case of a dearth in the West Indies, we may extort what we please. Taxes on exports are a necessary source of revenue. For a long time the people of America will not have money to pay direct taxes. Seize and sell their effects, and you push them into revolts.

Mr. Madison: As we ought to be governed by national and permanent views, it is a sufficient argument for giving the power over exports that a tax, though it may not be expedient at present, may be so hereafter. A proper regulation of exports may, and probably will, be necessary hereafter and for the same purposes as the regulation of imports, viz., for revenue, domestic manufactures, and procuring equitable regulations from other nations.

The regulation of trade between State and State cannot effect more than indirectly to hinder a State from taxing its own exports, by authorizing its citizens to bouring State, which might decline taxing carry their commodities freely into a neighexports, in order to draw into its channel the trade of its neighbours.

EXAMPLES OF EXPORT TAXES

Outside of the United States and the industrial countries of Europe, export

taxes are at the present time a common feature of fiscal systems. In fact, most of the exportable products of the world outside of the leading industrial nations bear export taxes largely for revenue. The variety of products of most of these countries is limited and therefore, although the list of export taxes may be short, the rates probably affect the great volume of production. Where such monoculture prevails, export taxes are a justifiable substitute for land or income taxes and commend themselves because they are easy to collect. A plantation not yet in bearing pays no tax and, normally, the larger the crop, the greater the tax; hence, it is imposed in accordance with

Spain

ability to pay. The producer must find a market abroad and unless he has a monopoly in the world market any export tax levied on his product is paid by him. Under such conditions the absence of export taxes is the exception. Some products of European plantations are exempt. In some countries export duties are not imposed on closely competitive products. In other cases, colonial governments have been prosperous enough to give them up.

Some idea of the nature of export taxes will be obtained from these examples (they are given at some length because the American reader is less familiar with export schedules than he is with import schedules):

Portugal

Cork sheets...

1. Raw jute:

4. Tea, 100 pounds..

(Tea)