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Gerard, James W., 1867-1951

"My Four Years in Germany"


Although free ports do not exist in the United States, an attempt
has been made to give certain industries, by means of what are
known as "drawbacks," the same benefit that they would enjoy
were free ports existant in our country.
Thus the refiners of raw sugar from Cuba pay a duty on this sugar
when it enters the United States, but receive this duty back when
a corresponding amount of refined sugar is exported to other
countries.
There has lately been an attack made upon this system in the
case, however, of the sugar refiners only, and the question has
been treated in some newspapers as if these refiners were obtaining
some unfair advantage from the government, whereas, as a matter
of fact, the allowance of these "drawbacks" enables the sugar
refiners to carry on the refining of the sugar for export much
as they would if their refineries existed in free ports modelled
on the German system.
The repeal of the provision of allowing "drawbacks" in this and
other industries will probably send the industries to Canada or
some other territory where this system, equivalent to the free
port, is permitted to exist.


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