ducer. Such a state of affairs should awaken the attention of the government to the duty of applying a remedy.

On the other hand, the sufferings of the colonies affect our navigation. Restrained in their production, and not profiting by all the riches of their soil and climate, they are forced to limit the purchases they would otherwise make at the metropolis, and the commerce of exchange, of which our ships, in virtue of our colonial regulations, are the necessary instruments, has neither the activity nor the importance which it is susceptible. We have laid before you the principles, the equitable reasons, and the economic considerations which have determined the government to propose a reduction in the sugar duties; similar motives have suggested a reduction of the duties on coffee, cocoa, and sugar.

The consumption of coffee in France is very limited. In 1859 it did not exceed 841 grammes (28 ounces) per head, yet this was larger than in previous years. In the United States the consumption is 3 kilos. 600 grammes, (7 lbs. 13 ozs. ;) in Germany it is 1 kilo. 700 grammes, (3 lbs. 9 ozs. ;) in Belgium, 4 kilogrammes, (8.8 lbs. ;) in Holland, 4 kilos. 125 grammes, (9 lbs. ;) in Switzerland, nearly 6 kilogrammes, (134 lbs.) In England the consumption is not large, for the reason that tea is more generally used; it has entered so largely into the national habits as to leave little room for coffee. The great difference which exists between the quantity of coffee consumed in France and that used in other nations that we have cited can explain itself not otherwise than by the effect produced on the price by the high duties levied by us, and by the low duties or absence of all duties in the other countries. In the United States and Holland coffee is free; in Switzerland it is 15 cents per 100 lbs; in Belgium 11 f. per 100 kilogrammes, ($10 per 230 lbs. ;) in Germany, 37 f. 50 c. per 100 kilogrammes; and in France, 100 f. per 100 kilogrammes, (9 cents per lb..) or nearly equal to the value of the article. The duties on cocoa in France are relatively lower than on coffee; they correspond nearly to a value of 30 per cent. On tea the duty is 100 per cent or more, according as the importation is made in a French or foreign ship. But relatively to cocoa and to tea, as in regard to coffee, the question should be regarded in the point of view of the sugar consumption. In effect, if the duties on those articles are reduced one-half, as the bill proposes, there will be a double reduction on those drinks in which sugar allies itself to coffee, cocoa, and tea. The use of them will spread so much the more rapidly that there will be a double reduction in the cost of the mixtures.

FINANCIAL CONSEQUENCES OF THE BILL.

When the important measure, of which we have had the honor to present to you the motives, is examined exclusively in respect of the interests that the reduction will favor, we encounter no serious objections. The amelioration of the material conditions of existence among the laboring classes, the development of a great industry, which is the life of our colonies, and which in developing itself on our soil augments the national industry, and imparts a new activity to our merchant marine, whence the navy draws its seamen-these are immense political and economical interests which no one can mistake. But these interests, howeve great they may be, cannot be opposed to those of the public treasury, of which the resources may during many years suffer a severe attenuation.

We are thus led to ask to what interests it is necessary to give the preference, and if economical and political considerations, even the highest, ought to give way before financial considerations. In order to respond to these questions, it is necessary to measure the grandeur of the opposing interests. We have laid before you the political advantages of the bill; it remains to explain the financial consequences. To appreciate the extent of the loss to the treasury, and to estimate the duration of the sacrifice that will be imposed upon it, are two points upon which some explanations are necessary.

The reductions proposed should, in the view of the government, be made at once, in order that their effects may make themselves immediately felt. Many inconveniences would in effect attend a system of grad"ual reduction spread over many years. If such a course were pursued, the diminution of the tax during many years would not be sufficiently marked to act sensibly upon consumption, and the treasury would not at first obtain compensation for the loss it would experience, and would be exposed to finding itself at the end of a period of reduction in a situation similar to that in which it now is, but aggravated by losses suffered during preceding years. The reductions of duties thus graduated also operate injuriously upon industrial and commercial transactions. In effect, under the operation of continual changes in duties, the fear will not cease to act, that merchandise made or bought under high taxes may be sold only at a loss when the price falls through the effect of a diminished tax. It is thus that the mere announcement of a reduction in tax, before it is even voted, produces a certain stagnation in business.

When England, in 1844, reformed the sugar duties, the tax was at once lowered from 59 f. to 34 f. It is true that there have been successive reductions below this last figure, but these were in proportions so small as to have no sudden or material effect upon market prices, or to impart any uncertainty to operations of business. Thus the reduction ought to be accomplished at once, as much in the interests of the treasury as in those of industry and commerce.

If the reduction is important, the loss for the treasury at first would be more considerable, because it is not to be supposed that the consumption would immediately rise to a compensating point. But under the pressure of a large reduction in tax, the price would fall rapidly, and would thus give a lively impulsion to the development of consumption in such a manner that increasing compensation to the treasury might be relied upon with each successive year.

It is incontestible that the use of sugar is capable of the most considerable extension. It agrees with all ages, and reduced to a moderate price it may penetrate all ranks of society. It is employed for a great number of purposes. It is eaten alone, and is mixed with food and with drinks. Its comsumption has thus a vast field in which to extend itself. We can at least judge of the future by the past. From 1816 to 1841, the consumption rose from 25 to 100 millions of kilogrammes, and has reached 200 millions at later dates. There is, therefore, to-day eight times as much consumed as in 1816. It required, without doubt, forty years to arrive at such a result. The movement was, however, interrupted by the revolution of February, causing a loss of time. The fact, however, that from 1851 to 1859, the consumption rose from 115 to 185 millions, shows with what rapidity it increases under favorable circum

stances. In eight years the consumption rose 70 million kilogrammes, or 61 per cent. These results were produced under the present duties, and it may be inferred how great might be the increase under a prosperity always increasing, with duties reduced four-ninths. The experience of the past justifies the belief that the treasury will be reimbursed in four or five years. If this may not be declared a certainty, still, on the other hand, it cannot be denounced as an illusion.

There is also no reason to think that sugar will maintain its price through shortness of supply checking consumption, since we have shown that there has been a permanent surplus, and the manufacturers, both colonial and native, are in a position to meet any demand that can manifest itself. It has been estimated that the treasury will lose 51 millions by carrying the measure proposed at once into effect, in the budget of 1861, but, as we have seen, we can count on compensation resulting from progressive development of the consumption.

It remains for us to give the Assembly details of the new tariff, and of other dispositions of the projected law. Independently of the reduction of the taxes, the bill proposes many simplifications of the tariff. We have already said that the normal duty on home made sugars is reduced from 45 to 25 francs, and with the two-tenths from 54 to 30 francs the 100 kilogrammes. Colonial sugars are to pay the same duty, but, to avoid the inconvenience of a sudden change, the equality of home-made and colonial sugars will not be immediately established.

The law of the 28th June, 1856, in maintaining in principle the duty on sugar from the other side of the Cape of Good Hope at 42 francs, and at 45 francs for that of the American colonies, established in their favor a discrimination, temporary and decreasing. This discrimination was 7 francs from March 27, 1856, to June 30, 1858; 5 francs from July, 1858, to June 30, 1859; and finally 3 franes from July, 1859, to June 30, 1861. That discrimination of 3 francs is the only one which now exists. We now propose that it shall close entirely June 30, 1861. Foreign sugars imported by French ships from countries out of Europe are to pay 28 francs, without counting the two-tenths; that is to say, 3 francs more than French sugars. The projected law abolishes all discrimination between French and foreign sugar. It substitutes a single duty for the various rates that are now levied upon the sugars of China, Cochin-China, Philippines, Siam, and other countries out of Europe. Those differential duties established to encourage distant navigation have not produced the results that were expected from them, and under the new tariff they would only produce useless complications.

In readjusting the duties on foreign sugar the interests of our flag have not been neglected. Those duties are fixed at 28 francs when foreign sugars are imported from countries out of Europe in French vessels; they are placed at 34 francs when imported coastwise. In foreign vessels from countries out of Europe the duty is 30 francs. Our flag, therefore, profits by a protection of 11 francs in one case, and by 5 francs in the other, without the two-tenths. The government thinks that protection quite sufficient to insure the trade to French ships over rival vessels. We have hitherto spoken only of raw sugar; we will present a few remarks on refined sugars.

The proposed law allows the prohibtion against foreign sugar to remain, except where the stipulation of the treaty with England and other trea

ties interfere. The law also maintains the supplementary duty on refined sugars of the home factories. This duty is now 10 per cent above the duty applicable to sugar, a degree above that of the first type. The law transferes the tax into a charge of 5 francs per 100 kilogrammes. This grows out of another change in the tariff; raw sugars above first type are subject to an additional tax of 3 francs, which it is proposed to suppress; hence, it becomes necessary to reach the tax in another manner. The duties on coffee, cocoa, and tea have also been much simplified, all differential duties of origin having disappeared. Coffee, the produce of French colonies on the west coast of Africa, will bear no higher tax than that of the other colonies.

The principal object proposed in the bill is to extend the consumption of sugar by such a reduction of taxes as will insure lower prices to the consumer. The largest portion of the sugar now used in France is refined. The government has thought that, as the use of sugar extends itself, the custom of using raw sugars, as in England, will become more. general among those who are not rich. There are in France only 35 a 40 sugar refineries, forming separate establishments. These furnish almost exclusively the refined sugar consumed in France, because foreign refined sugar is prohibited; the colonies send us none, and the refineries connected with the home sugar factories refine but about four million kilogrammes, (4,000 tons.) There is, then, reason to fear that, when through reduction of tax the fall in price makes itself felt, there will not be refined sugar enough to be had to meet the demand. It is not to be disguised that an industry situated like that of sugar refining in France can, to a certain extent, control the market, and counteract the effects of diminished duties. It is necessary, then, to foresee and, as much as possible, guard against such contingencies, in giving to the sugar makers at home and in the colonies the means of meeting the new demand. For this purpose the surtaxe on raw sugar above type is suppressed. A short explanation is necessary to fully understand the importance of this change. At present raw sugar bears a duty of 54 francs, with the tenths; if they rise above the type they pay 60 francs. The refined sugar of home factories, and those of the colonies, pay a high duty. This higher duty is suppressed in such a manner that all raw sugar, whatever its saccharine richness, would be subjected to the same duty, but for the grade under type. Regard has, however, been had to the position of some of the colonies where the methods of manufacture are very imperfect, and by means of the lower grade those factories that are unfavorably situated pay only a reduced duty on their inferior article. This presents a slight obstacle to the plan proposed, but it has been thought better not to disturb it. In suppressing the overtax, it is designed to encourage the production of a sugar of a high grade, that may enter at once into consumption without being subjected to any extra tax or refining process. There results a double loss to the treasury. The sugars below and above type will pay less than the normal tax. The higher grades will not pay the extra tax; that reduction will not, however, be very considerable, by reason of the advantages expected from it. The subscription of the manufacture has the same object as the suppression of the duties on the high grades. It will be optional, and those who do not subscribe will remain under the present regulation.

Under the existing law great precautions have been taken to guaranty

the treasury against fraud; thus, before the juice of the beet-root is boiled, the government agents test its density, and the manufacturers must account for 1,400 grammes of sugar for 100 litres of density, (31 lbs. to 22 gallons,) by each degree of the densimetre. When the sugar is made a new inspection verifies the quantities. The sugars completed are placed in warehouse, of which the agent has the key, and it is delivered only with his consent. With the manufacturers who come under the new law, there will remain only the inspection of the juice, which will be the basis for the levying of the tax. When the quantities of sugar shall have been valued according to the density of the juice, the du ties will be fixed. The manufacturer will be relieved from inspection in the other stages of manufacture and sale; whether the sugar is more or less perfect, or more or less in a refined state, will no longer be demanded of him. If, in order to produce sugar fit at once for use, it will be necessary to mix beet-root juice with cane sugar, it will rest with the maker. Thus the object sought, with the concurrence of the manufacturer, is to produce a sugar fit at once for consumption, in order to lessen the cost to the consumer. The tax is diminished 24 francs, and the cost of refining 16 francs; there should be a diminution of 40 francs. Such a result, if realized, and experience already gives assurance of success, will justify the change. It is no doubt the case that the density of the juice gives no absolute certainty. The densimetre does not indicate the quantities of crystalized sugar in the juice; it marks only its density in such a manner that the quantity of sugar sometimes falls short, and at others shows an excess. But when that becomes the only basis of taxation, they will employ the densimetre with far greater care, and chances of fraud will be diminished.

The final disposition of the projected law is in relation to the drawback on refined sugar. To cause the duty to operate as justly as possible, it has always been sought to establish a relation as exact as possible between the quantity of raw sugar imported and that required for the refiner. Legislation upon this point has been very variable, not only because of the inherent difficulties of the appreciation, but because it was desired also to make the drawback a source of profit to the marine and to the colonies more or less considerable.

The law of July, 1840, gave to the law of drawback the following basis-The legal equivalent for the first category was 70 kilogrammes of refined for 100 kilogrammes of raw sugar; and for the second, 73 kilogrammes of refined for 100 kilogrammes. These are applicable only to the grade equal and inferior to the first type. It will be understood that, if this grade had been higher, the advantages to the importer and refiner would have been greater. This took place when, by the law of March, 1852, the type admitted for home-made or beet sugar was applied to colonial and foreign sugar. The necessity of modifying the basis soon made itself felt in the interests of the treasury; the law of June, 1856, carried the basis from 70 to 75 per cent, and from 73 to 78 per cent, as it remains to this day. This change produced the highest clamor from the interested parties, but neither the imports nor the activity of the refineries has been diminished. The payments on refined sugar exported, which had been 26,290,000 francs in 1857, rose to 40,200,000 in 1858, and were 39,600,000 in 1859. Such results attract the attention of the government, and after careful examination it has been decided to fix the