in many cases provinces and even municipalities assess taxes which range from a mere nominal fee to three or four hundred dollars.

It is understood that such taxes are intended not exclusively for revenue, but also in order to equalize the conditions of competition. For example, advertising matter carried by commercial travelers is generally taxed, with a view to protect the domestic printing industry. Local business houses wish to be protected at least to the extent of offsetting the occupational taxes which they are required to pay.

The objection to this system rests on sound economic theory familiar throughout the commercial world. It is clear that the removal of local restrictions and fees will encourage the presence and activity of the representatives of modern industry and will thus proportionately stimulate the importation and exportation of merchandise. An opportunity will be afforded to the merchant classes to increase their profits through the introduction and sale of new articles, while the customs duties levied thereon will accrue to the benefit of the entire community. The experience of leading commercial nations has shown that the best interests of a country are not served by taxation which strikes at a class merely because it is easily reached. Most nations have found it advantageous to take a national view of the operations of commercial travelers. So long as varying local burdens exist, salesmen will naturally seek only attractive opportunities, and as a result the provinces which most need to develop their commerce may receive the least attention. If taxes are to be imposed upon commercial travelers for reasons of fiscal necessity, let them be national, and let the National Government distribute the proceeds equitably among the several provinces. As to the persons entitled to enjoy the benefits of the proposed treaty, the International High Commission unanimously agreed that peddlers and others selling directly to the consumer should be excluded since they enter into direct competition with local retail merchants. For a different reason, travelers who are exclusively buyers and travelers who are studying the means of improving trade do not come within the purview of the treaty, their work not being in any sense that of salesmen.

With reference to the samples of commercial travelers, the treaty proposes that "samples without commercial value shall be admitted to entry free of duty. A definition is included of what is conceived to be a sample having no commercial value, namely, one that has been marked or stamped or defaced in such a way as not to be capable of sale or of other normal use. Occasionally samples without value, the salability of which has previously been destroyed, have been subjected to the ordinary customs duties.

It is obvious that samples should not be sold without payment of customs duties within the jurisdiction of the country into which they are brought. The treaty accordingly provides that upon giving bond for the payment of such duties samples may be admitted free for six months, after which period any part not withdrawn becomes liable to taxation. The treaty does not require the traveler to remove his samples through the same port by which he entered the country, but this and various other details are not expressly dealt with, it being assumed that signatories to the treaty in their regulations will carry it into effect in that spirit of international comity and commercial liberality in which it has been conceived.

S. Doc. 739, 64–2—12

APPENDIX B.

DRAFT OF TREATY FOR THE ESTABLISHMENT OF AN INTERNATIONAL GOLD CLEARANCE FUND.

Whereas experience has shown that the payment of debts arising in the course of commercial and financial transactions is often impeded and rendered difficult by reason of circumstances which interfere with and temporarily render impracticable the safe transportation of gold from one country to another, in consequence of which trade is deranged, values are rendered uncertain, and widespread loss and suffering take place, the high contracting parties, being desirous to guard against such grave inconveniences, have decided to conclude a convention for that purpose, and to that end have appointed as their respective plenipotentiaries

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who, after reciprocally exhibiting their full powers, which were found to be in due form, have agreed upon the following articles:

ARTICLE I.

With a view to stabilize exchange and facilitate the settlement of balances, the high contracting parties agree that all deposits of gold, made within the jurisdiction of any of them for the purpose of paying debts incurred in the jurisdiction of another, in the course of private commercial and financial transactions, shall be treated by their Governments as constituting an international fund, to be used for the sole purpose of effecting exchange.

To this end the high contracting parties agree never to appropriate any of the moneys included in such fund; and they furthermore engage, each within its own jurisdiction, to guarantee the fund, in any and all circumstances, in war as well as in peace, against seizure by any public authority as well as against impairment by or as the result of any political action or change whatsoever.

ARTICLE II.

The high contracting parties agree to act as trustees of the fund mentioned in the preceding article, and for this purpose each of them will designate a bank within its own jurisdiction to hold any part of the fund there existing as joint custodian with such person or persons or such institution as the high contracting parties may concur in appointing for that purpose.

Such joint custodians shall hold the moneys so intrusted to them, subject to the order of the creditors for whom it is held.

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within two years, or sooner if

exchanged at In testimony whereof the respective plenipotentiaries ha these articles and have thereunto affixed their seals.