Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1871-12-06
TAI, TARIFF AND CURRENCY.

The Washington correspondent Of the New
York Tribune gives his views upon the above
topics as follows:
Certain notifications in the tax and tariff
laws, which members say are unquestionably
demanded by public sentiment, will no doubt
be made. The revenue will be diminished,
so as to leave an annual surplus of only $50,
10000, to be applied toward the payment Of
the debt, and the reduction is likely to be
about equally divided between tariff and in
ternal revenue, which will take S25, 200, 900
from each. There will not be much quarrel
about the tax reduction. All agree that the
income tax will 90 by the board. If nothing
is done about it, the law will expire next year
by limitation; but there will be an effort TO
cut off the last collection, which takes place
in March next and terminate at once the un.
popular tax. The internal revenue will prob
ably be stripped down SO that there will be
little left beside the taxes on distilled spirits,
malt liquors, tobacco, and stamps. When it
comes to tariff reduction, so many interests
are involved, and they are SO intricately in
terwoven and 'intermingled, that it will not be
so easy to determine where the reduction
should be made. Still there are some changes
to which large majority in both Houses are
known to be favorable. The abolition of the
duty on coal may be confidently expected. A
considerable reduction in the tariff on salt is
almost equally certain. The free list will 10
doubt be further enlarged by the addition OF
many unimportant articles from which but a
trihing amount Of revenue is derived There
are also number of notifications that will
be used in the way of adjusting different parts
of the tariff laws to each other, so that their
working will be harmonious. For example,
some articles which are used in manufacture
ing now pay a higher proportionate duty than
the finished product with the construction of
which they enter. The high tariff upon such
articles is, it is claimed, a burden to the man
utacturer, and benefit to nobody. Either
the duty on the finished product should be
higher or the duties on the articles used to
produce it should be lower.
1t is scarcely probable that the revenue re-
formers will make general onset upon the
tariff this winter. Those who are here talk of
one or two points which they will try to gain.
They claim that there should be a re-adjust-
ment in all specific duties wht re the prices of
the articles upon which they have levied have
materially fallen since the present rates were
established The fall in the price has the eff.
feet to increase the per centage Of the duty.
For example: A tariff of 5 cents pound on
an article costing 20 cents is quite moderate,
but il the price of the article declined to
cents the tariff becomes enormous. The rev.
q
reduction in duties which were made very high
during the war to enable manufacturers to pay
the high internal taxes then levied. They say
that, step by step all taxes on manufactures
have been removed, and that the tariff should
have been reduced at the same time. They
refer particularly to manufactured iron.
The Revenue Reform, Free Trade
movement, will not, however, be as strong
as it promised to be when the new Congress
nNaf la f urph md fhnro &c mott ,,,rhr
to fear any serious departure from the estab-
lished principles of protection. Many Con-
gressmen found during the long vacation that
they had exaggerated the strength of the Free
Trade sentiment among their constituents,
and that the Protectionists were still numer-
Gus. though not noisy. They return deter
mined to oppose the agitation of the tariff
question until after the next election. And
This, it now seems probable, will be the pre-
dominant sentiment in both Houses.
There is no prospect that any steps will be
taken towards resumption. All the returning
Congressman agree that they found no gene
raj sentiment among the people in favor OF
returning to specie payments. Where there
is not hostility there is complete indifference
on the subject. Things are going we'll
enough, and resumption will come of itself
in good time" expresses the prevailing opin-
ion. The debtor class don't want specie pay
ments brought about until they are out of
debt, and while the creditors and people who
don't owe anything are in favor of resump-
ton on general principles, they are in no hur-
ny to have it take place, and allow themselves
to be convinced by debtors and spectators
that 1t would cause a financial crisis, and
occasion deplorable damage to business.
Some plans OF resumption will, no doubt, be
introduced, but there is no prospect that any
decisive action will be taken upon any OF
them. PrOcrasunation will be thought the
wisest course. When the people are enlight-
ened upon financial questions enough to I'M
derstand that an irredeemable paper currency
is not an advantage, but an unmitigated evil
to everybody but SPECTATORS, and Imperative
ly demand resumption, then, and not before,
will Congress tind way to resume. Mean
while some plan Of conversion of greenbacks
into bonds seems to be the method most IA
vored by Congressman. The plan proposed
lately by the Tribune is much discussed and
advocated by many. Those who oppose it
say that convernbility into 8 60 bond would
not raise the greenbacks any nearer par, and
that the bonds would only be taken by specu-
lators tor investment of money for short Pc
RODS. Senator Sherman favors conversion
into five per cent. bonds, with no reconver-
sion OF bonds into greenbacks, but with au-
thorly for the Secretary OF the Treasury to
keep on hand reserve of from twenty-five
to fifty millions currency for issue in case of
stringency in the money market, by reason
OF extensive conversion. This plan, he
thinks would make the greenbacks worth par,
and enable resumption to take place at an
early day, without any shock to business in
terests. Gen. Butler will, of course, revive
his scheme OF an endless circle of greenbacks
and bonds, never approaching any nearer to
gold, and other projects in the shape of bills
tnil no thrg t..nln 10, tr.,t l,.,%
per of the public mind.