Western Reserve chronicle. [volume] (Warren, Ohio) 1855-1921, 1872-03-27
THE CHRONICLE.
THE TARIFF BILL.-SPEECH OF
SENATOR SHERMAN.
WASHINGTON, March Is.
SENATE.

this bill 1T will perhaps be most agreea
bic to the Senate that 1 state the facts
as to our financial condition, tha
enables us now, for the sixth time
since the close of the war. largely tC
reduce the taxes imposed on the peo
pie of the United States, and will
also state the general principles upon
which the reductions in taxes proposed
are based. The details as to specific
taxes, would extend my remarks far
beyond my purpose and will be more
properly stated from time to time, as
the debate progresses.
The taxes already repealed yielded
! S323, ,000, 900. Our revenues still large
ly exceed our expenditures We are
justified by several causes in continu-
| ing the repeal of taxes, the taxes thai
remain to yield largely more than the
same taxes in former years, and more
than was estimated by the most SAN
guine person. The population of the
country has largely increased; indus
Try in almost every department has
been actively and busily employed ;
the consumption of our people, which
under our system of taxation is chiefly
/ the basis of taxation, has by the
prosperity of our country been largely
Increased. At the same time the
national expenditures are diminish
| ing; our financial condition is i'm
proving in every particular; we are
slowly but surely, without contraction
or expansion, by increasing the uses
of our proper money, approaching 9
special standard. The interest on our
0ebtis daily diminishing by payment.
The diminution of the rate of interest
which, under all these circumstances,
enables US to approach a further Ie-
duction of taxes, with more system
and information than formerly, and,
I trust, with sincere desire to make
the reduction in such a way as 10 yield
the largest possible relief TO our peo-
pie. The only questions are, how
much and what taxes ought to be re-
pealed?
The expenditures during the last
fiscal year, ending June 80, 1871 and for
the current fiscal year (partly estima-
ted were 500, ,403, ,3S2; for next fiscal
year (estimated) S27S, ,025, ,77S. These
sums exclude the sinking fund and
all payments on the principal of the
debt. The net receipts of the govern
ment during the last fiscal year, end
ing June so, 1871, were S3S3, ,S23, ,944,
for the current fiscal year (estimated)
S359, ,OOO, 600. The actual surplus reve-
nue. for the year ending June 80, 1871,
was S91, lag, ,776, for the current fiscal
year (partIy estimated) 81, ,794 ,99l; for
thenext fiscal year ESTIMATED )S85, ,974-
226, The question arises, how far the
estimates of expenditures will be in
creased by additional appropriations
by Congress2 It is not probable that
any material change will be made in
the aggregate appropriations for the
current fiscal year, while our current
receipts are largely in excess of the
estimates. This is caused to some ex-
tent by the importation of goods in
the place of the duty paid goods des-
truyed by the fire in Chicago. The
estimate by the Secretary Of the
Treasury contemplates reduction of
expenditures for the next fiscal year,
as compared with this year, of over
500 600, 600, or as compared with last
year, over SIS, ,0OO, 900; but this is ex-
planned mainly by the exclusion from
the estimates of the premium paid on
bonds and premiums received on gold,
which balance each other. The esti-
mates are based upon the appropria-
tioRs required by the existing laws
They can and ought to be diminished
in several important branches of the
public service-the abolition of the
ranking privilege, the reduction Of
public printing, the reduction Of the
internal revenue service; close scru-
tiny of the pension list. A careful
limitation of appropriations for pub
lie expenditures that grew out Of the
war, but have survived the war. This
would enable US to repeal other taxes
without injury to the public service.
On the other hand, the wants OF a
great and growing country like ours,
exercising new powers, extending
daily its influence into new regions
within our limits, and to far distant
countries where civilization is more
and more Influenced by commerce
with US. All these, compel gradual
increase ofjust and proper expendi-
ture. Such an increase does not indi-
cate extrayagance,-but it indicates
growth, health and strength.
There Is another clause of nominal
increase ia expenditure, which oper-
stes slowly and silently but as surely
as the march of invention and civili-
zstion. 1t is in the changing of the
pufchaseable power of money. Since
theclos OF the war, we were paying
interest at the rate of $40 per cent.
Now. we can readily borrow nt 8 per
cent, and are now negotiating for a
still lower rate. Our currency az
proximates the specie standard and
the government is strong enough to
resume specie payments at any mo-
ment, the time being only g question
of domestic policy as lit affects the
debtor and creditor, the producer and
consumer. The banking system is so
generally distributed, that It furnishes
a uniform currency and awaits the
mandate of the government to main
tain it at par with gold and silver
We can easily pay the national debt
in twenty years, and can at each Con-
gress repeal and reduce taxes,
The COMMITTEES. on Finance con-
eIuded that $50, ,O00, 600. including the
sinking fund provided by law, should
be applied to the reduction of the
debt, and that this sum, added to
S273, ,025,773, or the sum of S323, ,023, 77S
should be the basis of our revenue re-
ductiOn. The customs revenue since
1858, show an annual iucrease of over
SO, ,OOO, 600, and etduring that period
duties were repealed which yielded
$50, 600, eco per annum- 1t is apparent
that the customs duties for the current
year will largely exceed those of last
year, and there is no apparent reason
why that increase should not continue
during the next fiscal year. The re-
ceipts from customs from the 1st of
July. 1871, TO the 1st of March. 1872,
are S146, 721, 600. At the same rate,
the receipts for the fiscal year sggre-
gate $226, ,061 500, or fourteen millions
In excess of the estimate of the secre-
tary of the treasury. The internal
revenue receipts for the next fiscal
year are estimated at $1l9, 500, 600, viz:
Spirits S50, 200, 900. tobacco $36, ,000. 900,
fermented liquors $s, SOC, 600, banks
and bankers S., 900, 900, gas s., 200, 900,
adhesive stamps sic, ,O0O, 900, penalties
$500, 900, other articles $500, 600 This
does not include the residuum of the
income tax for 1870, which will make
good the secretary's estimate of $780,
0OO, 600. The proceeds from the sale
of public land, etc., are estimated at
so, ,000, 900, making $373. .000, 900, or
$14, ,O00, 900, in excess of the secretary
of the treasury's estimate, and $780,
900 900 in excess of the estimated ex-
penditures. Applying fifty millions to
the reduction of the public debt, there
iS cfilI O surpIt1a of Il ffv paillinna uhioh