National Republican., 1883-07-05
THE SURPLUS CASH.
A Curious Suggestion for It's Distribution
Among the States.
MIR. Wharton BarIser's Proposition to Make
New Political Issue.

national treasury and distribute it among the
states.
"To me-" said Mr.. Barker, "the advisa-
bility of the distribution is so evident that
shall use every proper means to endeavor to
pursuade the republican state convention Of
Pennsylvania to adopt a resolution favoring
the distribution. hope, and have some
reason to believe from the favor with which
the plan has been received by fnance RS, by
men capable Of understanding tho su bject
thoroughly, and by prominent members of
tho republican party, that the state conven-
| ton, the party in general, the friends of a
protective tariff everywhere, the taxpayers
who favor lower taxes, the friends of free
schools, honest men who hold that the debts
| of insolvent states should be paid and credi-
| tors who desire that tho state bonds which
they hold should be redeemed, will come
shortly to see that the distribution plan is a
practical solution of many difficulties. II has
| two precedents in the history of the country,
is entirely feasible, practical, simple in its
workings, and has SO many advantages that
mean to do all in my power consistent with
what is proper to urge its adoption by the
republican party. l believe it will be the
| leading republican issue in the presidential
campaign of 1884 The campaign will, be-
lieve be fought on the tariff issue. be-
| lieve the distribution of the surplus is the
way to maintain the protective tariff"
LET me explain" said Mr.. Barker, "the
difficulty and the solution. The governments
revenues from the customs in 1882 amounted
to 1920, ,410, ,73025; from internal taxes to $147-
093,353; from other sources, $36, ,021, 1877 03;
making total OF $i07, ,o27, ,2502S. The outlays
were 1857, ,9Sl ,43957, leaving a surplus of
| $145, ,543, ,S20.7l. Owing to the reduction in
internal taxes by the last congress the pros
pectve yearly surplus over the ordinary ap-
| ID dol NrI
| at $l00,000,000; an estimate that is fortified
| by the facts just made public by the Treasury
department, which show that the reduction
of debt during the past year was in round
| figures $l36,000000. The reduction of rev.
enue by tho changes in the tariff and in
ternal revenue laws at the recent session of
| congress will certainly not exceed SIS, 100000.
Three hundred and thirty-six millions two
hundred and eighty-six thousand nine hum
| dred and fifty dollars worth of and 81 per
cent bonds can now be paid off, but under the
| existing arrangement of the national debt
S250,000,000 become payable Sept. /, 1891, and
| the remaining $737,5S6,300 cannot be can
the next bonds become payable, at the present
rate of accumulation, the surplus in the ma
| tional treasury will amount to about $780,
100000, of which, as shown above, only 1885,
| 286950 can be cancelled"
THE present then ia the proper time to de-
payment of the national debt when payable,
| while at tho same time it will prevent the
| accumulation of this vast surplus.
Having the surplus what shall be done
| with it? We have choice between four lines
! of policy. We cannot cut the revenue of,
because we shall need it after 1891 for the
payment of the debt. 1t will not do to let the
money pile up in the treasury, which would
completely disorganize the business Of the
country by locking up its capital We may
do any one OF four things: First, spend the
money in jobbery; second, reduce the tariff;
third, repeal the remaining internal revenue
laws; fourth, distribute the surplus among
the states Every man with a-sehefne to get
plumber from the treasury will favor the first
plan of distribution. That fact is sufficient
to condemn it.
"To pursue the second plan means practi-
cal free trade. If the duties are lowered, they
must be lowered to free trade level, other
wise the enormous increase sure to take place
in importations will defeat the object of the
reduction by keeping the customs revenues
above present necessities. To prevent accu-
mutation of surplus it must be free trade and
no half way measure. OF course, as a protec-
Zionist, l reject en- ntirely the second plan.
Protectionists hold the tariff to be proper
source of revenue. 1t seems to me, from the
nature of the case, that every protectionist
will favor the distribution. Practically the
question of free trade or the maintenance of
protective tariff hinges upon the adoption of
this plan
"Having rejected jobbery and free trade as
undesirable methods OF getting rid of the
surplus, there remains third plan, namely,
to repeal the remaining internal revenue
taxes l favored this course in letter to
Senator Morrill,, written as early as Septem-
ber, 1881. As the internal tax on liquors and
tobacco amounted in 1882 to $133, 600, the
abolition of this tax would efiectually prevent
the formation of a surplus"
"Why not abolish the tax, then?"
"The people of the country are not ready
to do so. In the minds of many persons it is
good morals as well as good economy to tax
whisky. The Minnesota republicans have
Just declared in state convention in favor of
the continuation of such a tax, and the moral
sentiment against a free manufacture of
whisky is general in many western states.
Besides the antipathy to free whisky there is
proper and natural feeling that the whisky
tax should not be abolished simply because
at has to be collected by the general govern
ment while articles of necessity, real and
personal property, &C., have to be heavily
burdened"
"Then, Mr.. Barker, there is nothing but
your plan of distributing the surplus to fall
back upon2"
"Just So The objections to either of the
foregoing plans are conclusive. They state
the case of the distribution plan. This in
of duty, the continuation of the taxes on
liquors, the adherence by congress to policy
of economy and honesty, and the application
from the surplus revenue to the payment of
the bonded debt of such an amount as will
uniformly reduce the national debt at the
highest average rate of progress which the
conditions of the debt permit, Still there
would bo left surplus. This l think,
should be distributed among the several
states upon the basis of their population as
shown by the national census And this plan,
/ think, should be recommended by the re-
publican state convention" II
How would the plan operate practically?'
In the first place, it would remedy thell
trouble caused the states by the general gov
ernment appropriating all the easy sources of
revenue. The southern states are in condi- |
tion to receive the plan favorably, since it
would enable them to pay their honest debts
and to etfectually grapDle with the great
problem of il literacy. In the few state, such |
as Iowa, in which there is no debt, the states |
would be enabled to release to the counties |
objects of taxation, or to distribute among |
the counties the sum received from the gem
eral government.
4" believe tho benefits which would accrue |
TO the people of the several states to be one of |
the strongest recommendations of the plan of |
distribution. The general government has |
left to the states only direct taxation, the |
most burdensOme and to tax payers the most |
Objectionable mode of raising revenue. The
result is that, owing to the successful conceal |
ment of invisible property, the burden falls |
lsar