The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-06-18
The session-Its Bad Effect ON Busi-
meas.

close to-day, has operated as continuous
evil on the business interests OF the coun-
try. Except for the fact that the passage OF
the annual appropriation bills is necessary
to keep the government in action the coun-
try would be considerably better of to-day
if this session had been dispensed with.
We do not deny that a few excellent bills
have been passed, Of which the one hold
ing the Pacific railroads to their obligations
is the most creditable Nor do we
deny that several mischievous prof.
ects have been defeated, like the sub
sidy bills; but the defeat OF these
simply leaves things as they were, which,
SO far as these bills are concerned, would
have been the precise effect Of holding no
session ut ALL But the same remark does
not quite apply to all bills which fail TO
pass, because in many cases their proposal
and discussion put the public mind into
state of uncertainty while the bills were
pending, and by such of them as touched
business interests great deal OF harm mas
been done by taking away every possibility
of forecasting the future.
NOW, ~ uuS bO AdPPChSu eAss - 800
proportion of the things which have
been proposed and agitated, but not
accomplished, during this protracted and
tedious session have been precisely OF
the unsettling character which precludes
the possibility of rational business calcu-
lations. II is the unanimous testimony of
our merchants, forwarders and bankers that
after the assembling Of Congress in October
last business did not fulfil the promise OF
the early autumn, and that depressing in
fuence has weighed upon it ever since 1t
is not difficult to explain the benumbing in
auence of Congress upon the business Of
the country. This can be made palmer by
selecting particular instances than by any
general statement. The internal revenue
has largely fallen off for several months,
and the reason is ineligible enough to
those who consider the effect of threatened
changes in the Excise laws. The
main sources Of the internal revenue are tho
tax on tobacco and the tax on whiskey. In
ordinary circumstances considerable dim
mutton in this branch of revenue would
indicate diminished consumption ofwhiskey
and tobacco. The consumption is probably
as great as it was before Congress met, but
the proposed lowering Of the taxes on these
articles has caused owners to withhold their
goods in the hope of profting by the ex-
pected reduction. The stagnation of trade
in these articles is q natural consequence of
the hopes raised by Congress that whiskey
and tobacco could be put upon the market
at less expense than under the existing
laws. A similar expectation has caused
shrinkage in the revenue from customs.
Mr.. Woods Tariff bill, the general effect
Of which would have been a reduction OF
duties, kept the importing merchants in
suspense during the greater part of the ses-
sion, and caused them to take the smallest
houses that would supply immediate pur-
chasers reduction of duties would have
made cheaper goods, and business is always
done on limited scale in what is called
a falling market. Nobody buys largely
when there is a prospect, or even chance,
that prices will soon be lower. Both Gus
toners and merchants who supply the Gus
toners prefer to wait when there is hope
or q chance Of buying to better advantage.
Dealers in whiskey, dealers in tobacco, deal
ers in imported goods have preferred to
wait and see whether Congress would not
enable them to make cheaper purchases.
SO long as bills were pending for reducing
the taxes on tobacco, whiskey and imported
goods business was kept at stand except
for the supply of immediate wants, because
no man wishes to purchase to-day the goods
which he may soon have a chance OF buying
ut lower prices. This Congress has inflicted
great injury upon trade by exciting expec-
tations which have not been realized, or
rather by raising doubts which bafiled
business calculations and kept trade at a
stand.
1t makes great difference whether Con-
gross proposes to raise or to lower excuses
and imposts An expectation that they will
be raised is a great stimulus to trade. II
whiskey and tobacco were to be more
highly taxed the owners OF such property
would be eager to pay the existing tax and
evade the expected higher rates. When
the duties on imported goods are likely to
be raised every importer will mako haste to
take his goods out of bond and pay the
duties before they are enhanced When
ever Congress seems TO be moving in the
direction of higher excise and higher
duties business is stimulated and the
revenues increased by the desire Of the
business community to take advantage of
the existing rates before they are raised.
But whenever the tendency Is the other
way, whenever there is an agitation in Con-
grcss for putting down the rates OF taxation
instead of putting them up, trade newt
ably stagnates until the question is decided.
This has been the unfortunate experience
OF the country during the long session
which is to close to-day. Business has
stagnatcd In consequence Of expectations