Knoxville daily chronicle. [volume] (Knoxville, Tenn.) 1870-1882, 1882-12-05
THE PRESIDENTS MESSAGE.
(Conoluded from first psqe.)

concluded from fret page-)
surplus was more than one hundred and
forty-fve millions.
The report of the Secretary shows what
disposition has been made of this money.
| They have not only answered the require
| ments of
THE SINKING FUND,
But have afforded a large balance, applica-
BILE to other reductions of the public debt
But renew the expression of my convic-
| ton, that such rapid extinguishment of the
national Indebtedness as is now taking
| place, is by no means cause for congratu
| lation; it is a cause rather for serious APP
prehension. If it continues, it must speedi-
| ly be followed by one of the evil results so
clearly set forth in the report of the Seere-
tary. Either the surplus must lie idle in
the treasury or the government will be
forced to buy, at market rates, its bonds
not then redeemable, and which, under
such circumstances, cannot fail to com
mand an enormous premium, or the
swollen revenues will be devoted
to extravagant expenditure, which, as ex-
perience has taught, is ever the bane of an
| overlooking treasury. 1t was made appar-
ent in the course of the animated discus
| sions which this question aroused at the last
session of Congress that the policy of di-
minishing the revenue by reducing taxation
commanded the general approval of the
members of both Houses. I regret that
because Of conflicting views as to the best
method by which that policy should be
made operative none of its benefits have as
| yet been reaped.
In fulfllment of what deem my consti-
tutional duty, but with little hope that can
make valuable contribution to this vexed
question, shall proceed to intimate briefly
my own views in relation to it.
Upon the showing of
! OUR FINANCIAL CONDITION
| At the close of the last fiscal year, felt
| justified in recommending to Congress the
| abolition of all internal revenue taxes ex-
| cept those upon tobacco, in its various
| form, and upon distilled spirits and fer
mented liquors; and except also, the spe-
cial tax upon the manufacturers and
dealers in such articles.
| venture now to suggest that unless it
shall be ascertained that the probable ex-
penditures of the government for the COM
| ing year have been underestimate, all
internal taxes, save those which relate to
| DISTILLED SPIRITS,
can be prudently abrogated. Such course,
| if accompanied by a simplifcation of the
machinery of collection, which would then
| be easy of accomplishment, might reasona-
| bly, be expected to result in diminishing the
| cost of such collection by at least two mil
lions and half of dollars, and in the re-
tlrement from Office of from fifteen hun
dred to two thousand persons. The sys-
| tenn of
| EXCISE DUTIES
has never commended itself to the favor
| of the American people, and has never been
resorted to, except for supplying deficiencies
| in the Treasury when by reason of special
exigency, tbs duties on imports have proved
inadequate for the needs of the government.
| The sentiment of the country doubtless de-
man1s that the present excise tax shall be
abolished as soon as such
course can be safely pursued.
1t seems to me, however, that
| for various reasons SO sweeping a meas
ure as the total abolition of internal taxes
| would, for the present, be an unwise STEP
Two of these reasons are deserving of
special mention: First, it is by no means
| clear that even if the existing system of
| duties on imports is continued without
modification, these duties alone will yield
sufficient revenue for all the needs of the
government. 1t is estimated that one hun
dred millions of dollars will be required for
pensions during the coming year, and it
may well be doubted whether the maxi
mum annual demand for that object has
yet been reached. Uncertainty upon this
question would alons justify, in my judg-
ment, the retention, for the present, of that
portion of the system of internal revenue,
| which is least Objectionable to the people.
Second, total abolition of excess taxes
would almost inevitably prove serious If
not an insurmountable obstacle to thor
ough revision of the tariff and to any con-
siderable reduction in import duties.
THE PRESENT TARIFF
System is, in many respects, unjust. It
makes unequal distributions, both of its
burdens and its benefits. This fact was
practically recognized by majority of each
House of Congress in tine passage of the act
creating the tariff commission. The report
of that commission will be placed before
you at the beginning of this session, and
will, trust, afford you such information as
GUS commercial, agricultural, manufactur-
ing, mining and other interests of the
country, and contains such suggestions for
statutory revision as will practically aid
your action upon this important subject.
For the fiscal year ending June, 30, 1879,
amounted to $137, 600, 900. 1t has in the
three succeeding years reached-frst,
$1s6, 600, 600; then $l98, 0OO, 600. and final
ly, as has been already stated, 1920, 600, 600.
The income from this source for the fiscal
year, which will end on June 80, 1883, will
doubtless be considerably in excess of the
sum last mentioned.
III If the tax on domestic spirits is to be re-
tanned, it is plain. therefore, that large re
auctions from the customs revenues are en-
, tirely feasible. While recommending this
reduction, I am far from advising the
abandonment of the policy of SO discrim
mating in the adjustment of duties as te
afford aid and
PROTECTION TO DOMESTIC LABOR,
But the present system should be SO re-
vised as to equalize the public burden
among all classes and occupations, ant
bring it into closer harmony with the pres
emit needs of industry. Without entering
+ into minute detail, which, under the presen
j circumstances, is quite unnecessary,
I recommend an enlargement of
y THE FREE LIST,
So as to include within it the numerous ar
, ticles which yield inconsiderable revenue
A simphfcation of the complex, inconsist
emit schedule of duties upon GER
r tain manufactures. Particularly thos,
i, of cotton, iron and steel, and a substantial
reduction of the duties upon those artici4
> and upon sugar, molasses, silk, wool an.
wooden goods. If general revision of tn
tariff shall be found to be impracticable a
this session, / express the hope that at leas
some of the more conspicuous inequalitie
s of the present law may be corrected befor
your final adjournment. One of them
specially referred to by the Secretary
t In view of a recent
ID DECISION OF THE SUPREME COURT
=. The necessity of amending the law by whic
the Ouch standard of color is adopted a
- the test of the saccharine strength of ST
It gars is too obvious to require comment
From the report of the
THE SECRETARY OF WAR
VI It appears that the only outbreaks of Ii