The Evening critic., 1882-12-04
ANNUAL MESSAGE.
IconiInned Irom rIrsl rage.l

year TO year. For the fiscal year onded June
80, 1881, tho surplus revenue amounted TO
one hundred millions OF dollars; for the fiscal
year ended on the Both OF Juno last this sur
plus was more than one hundred and forty-nVe
millions.
WTbo report OF tho Secretary shows what
disposition has been made OF these moneys.
They have not only answered the require
monts Of the sinking fund, but have Afforded
n large balance applicable to other reductions
"Bnt I renew the expression OF my convic.
tlon that such rapid extlnguishment OF the
National Indebtedness MS ia now taking place ia
by no means n cause OF congratulation 1T Is
cause rather for serious apprehension.
az It continues, It must speedily be followed
by ono OF the evil results so clearly set forth
in the report of the Secretary.
"Either tho surplus must lie Idle In the
Treasury, or the Government VIII be forced TO
buy at market rates its bonds not then re-
deemablc, and which, under the circum-
Stances cannot fail to command an enormous
premium, or the swollen revenues VIII be DO
voted TO oxtravagant expenditure, which, as
experience has taught, Is ever the bano OF an
ovorllowing treasury.
at was made apparent In the course OF the
animated discussions which this question
aroused ut the last session Of Congress that tho
policy OF diminishing tho revenue by reduc.
Ing taxation commanded the general approval
OF the members OF both Houses.
81 regret that because Of conflicting views as
TO the best methods by which that policy
should be made operative mono OF It's Dement'S
have as yet been reaped
''In fulnllment OF whit deem my constltu-
tional duty, but with little hope that l can
make valuable contribution TO this vcxod ques.
ton, shnll proceed TO Intimate briefly my
own Views in relation to 1t.
"Upon the showing of our financial condl-
tion at the close OF the last fiscal year, l felt
justified I'm recommending TO Congress the alb
clifton of all Internal revenue taxes except
those upon tobacco In its various forms and
upon distilled spirits aud fermented liquors,
and except also the special tax upon the man.
ufacturers and dealers In such articles.
II venture now to suggest that, unless IL
shall be ascortained that the probable e4pen
ditures OF tho Government for the coming year
have boon underestimate, all Internal taxes,
save those which relate TO distilled SPIRITS,
can be prudenily abrogated.
''Such course, IL accompanied by simpll'
ncation OF the machinery OF collection, which
would then be easy of accomplishment, might
reasonably be expected to result In diminish
ing the cost OF such collection by at least
$4,000, 900, and In the retirement from onice
OF from 1900 to 1000 persons.
"The system OF excise duties has never COM
| mended Itself to the favor OF the American
| people, and has mover been resorted TO except
| for supplying deficiencies in the Treasury
| when, by reason OF special exigoncies, the
| duties on Imports have proved Inadequate for
| the needs Of the Government. The sentiment
| OF the country doubtless demands that the
| present excise tax shall be abolished as soon
| as such course can be safely pursued.
s'It seems to me, however, that, for various
| reasons, so sweeping q measure as tho total
| abolition of Internal taxes would for the pres
| ent be an unwise step.
| "Two OF these reasons are deserving OF
| special mention:
| "First, 1t Is by no means clear that oven II
| the existing system OF duties oh imports Is con-
| tlnued without modification, those duties
| alone Will yield SUFFICIENT revenue for all the
needs OF the Government. IL is estimated that
| one hundred millions OF dollars Will be re
| qured for pensions during the coming year
and 1t may well be doubted whether the maxi.
| mum annual demand for that object has yet
| been reached. Uncertainty upon this question
would alone justify In my Judgment, the re
tention for the present of that portion OF the
| system of Internal revenue which Is least OBJ
| iectionable TO the people.
| "second, q total abolition OF excise taxes
would almost inevitably prove serious II moi
an insurmountable obstacle to a thorough re-
| vision OF tho tariff and to any considerable re-
ductlon In import duties.
'rhe present tarlfr system is in. many re
| spects unjust 1t makes unequal dlstrlDu'
lions both OF Its burdens and its benefits. This
fact was practically recognized by majority
of each House OF Congress- In the passage OF tue
act creating the Tariff Commission. The re
port OF that commission Will BIO placed before
you at the beginning Of this session, and VIII
trust, AFFORD you such information as to tn
| condition and prospects OF the various com
| mercial, agricultural, manufacturing, mininl
| and other Interests OF the country and contail
| such suggestions for statutory revision as vii
practically aid your action upon this import
| ant subject
WThe revenue from customs for the hsca
year ended June 80, 1879, amounted to S137,
ait has in the three succeeding year
reached, first, $1S6, 100000; then, $l9S, 1000,
Q00i and finally, as has been already stated
S22O,000,000
UThe Income from this source for the nsca
year which will end on juno 80, 1888, vii
doubtless be considerably In excess of the sun
"if the tax on domestic spirits is to be- re
tanned, It is plain therefore that large reduc
| lions from the customs revenue are entirel
feasible. While recommending this reductio
am far from advising the abandonment o
the policy OF 80 discriminating In thead1us
ment OF details as to afford aid and protection
| N
| should be so revised as to equalize the publ
| burden among all classes and occupations
| and bring IL into closer harmony with tn
| present needs OF industry.
''Without entering into minute detail, which
under present circumstances, is quito unneceI
sary, recommend an enlargement OF the FIRE
articles which yield tnconsiderable revenue
u simplifcation OF tho complex and incol
| sistent schedule OF duties upon certain mani
features, particularly those of cotton, iron an
steel, and substantial reduction OF tn
duties upon those articles, and upon suga
molasses, silk, wool aud WOODEN goods.
"If n general revision OF the tariff shall
found to be impracticablo at this session, O.
press the hopo that ut least some OF tho moi
. conspicuous Inequalities OF the present la
may be corrected before your final adjourn
ment. One of them Is specially referred to
the Secretary. IN Wow OF recent decision
. the Supreme Court, the necessity OF amendii
is adopted as the test OF tho sacchnrii
,, strength Of sugars is too obvious to requi
cOm1pent.
River and HarbOr Bill.
on this subject the President says;
; "The grounds that impellod me TO withho
my signature from the bill entitled AN n
making appropriations for the constructio
| repair and preservation of certain works
l rivers and harbors, which became law ne
; the close OF your last session.. prompt me
express the hope that no similar measure W
| be deemed necessary during the present SO
4 | sion OF Congress. Indeed, such moaSu
| would now be open to serious objection In q
, dltion to that which was lately urged up
your attention. am informed by tho seci
tary OF War that the greater portion OF tho su
appropriated for the various Items specified
+ that act remains unex pended.
Q "0f tho new works which It authorized,
l | penses have been Incurred upon two only,
which the total appropriation was S2lO,O(
j | The present available balance Is disclosed
a the following table;
y Amount of appropriation by act
d OF August 2, 1SS2..",,.,,,.,,,, SlS,735,S
Amount OF appropriation by act
OF June 10, 1882. .....,..,,,,.,, 100
- Amount OF appropriation for pay
"a ments TO j. ID. Eads..,,.,.,,,,, 3Ol,u
!; appropriations 49,. .,.....'..... 4,7ss,9
, $23,7ol,l
Il Less amount drawn from Treas
o ury between July /, 1882 and
q, November 80, 1882. .,,.,,,.,.,. 6,o56,1
'r s17,73l,G
SIT is apparent by this exhibit, that 80
n as concerns most of the items to which the
- | OF August 2, 1882, relates, there can be
need OF further appropriations until after
IL | close OF the present session. III, however,
o. action should seem TO be necessary In resI
to particular objects, 1t will be entirely fe
. BILE 10 provide for those objects by appropri
II legislation. II Ia possible, for example, tht
VA delay until the assembling.of the next c