The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1884-12-11

Secretary McCulloch's Yearly
Balance-Sheet Of tho United
States Treasury.
Foreign Trade, Taxation, 0nd
Americas Shipping En-
terests Considered.

The report Of Hugh McCulloch, Secretary OF
the Treasury Is OF great length, bat on several
commercial world 1t IL exceedingly interesting:
From the mass Of figures submitted IL IL learned
sns cs yeaa we're e' and that
the expenditures were $3.50 ZIG u.s. leaving sur
plus OF s57 COS, 800, of which $jt0oO,Oo0 has been
applied to bond redemption. The actual and
estimated revenue for the fiscal year 1886 Is
$3.50 OOO, 900 and the estimated expenditures are
$500. 0oO, 200. OF the revenues expected during
the ensuing $ls5, 0O0 OuO VIII come from GUS
toms taxes, and $li6 1000, 900 from internal rove
nue.. The Secretary estimates that the Treas
ury surplus in 1886 viii be not less than $50
ono. and argues that something should be done
to relieve the people OF this unnecessary tax
alton.
The most important chapter in. the report is
devoted to foreign trade ana taxation. After
speaking of the remarkable chances In the
Western States and Territories. and asserting
that TO the rise In the value OF lands resulting
from the construction Of railroads the wonder
full increase of the national wealth Is very largely
attributable" le SAYS:
The condition of the manufacturing interest Of
the United States is similar in some respects TO
the condition of the agricultural interest OF the
West in the early days. What the Western
farmers then needed was a market their
crops What manufacturers now need is o
market for their surplus manufactures. The
real foundation OF our great manufacturing In
dustry was laid in New England under the first
tariff of o protective character, which diverted q
part of its capital from shipping into cotton
factories. Those first constructed having been
and othefebranches of manufacture were under
taken, until New England was converted from
maritime and commercial pursuits into manu-
featuring. 1t will be recollected that New En-
gland was opposed to the first protective tariff
that one Of Mr.. Webster's great speeches was o
free-trade speech.
Il was not many years after the first cotton
mills were erected in New England that the
great iron industries of the country began to be
State Of
Nor was IL long before various kinds of manu-
features came into existence in most OF the
Northern and Western States The demands of
the Government during the late civil war for
nearly all kinds Of manufactured goods and
the high tariff greatly stimulated production
After the war stimulus was found in railroad
building and in extravagant expenditures in
duced by superintendent currency, and the time
has now come when the manufacturing industry
Of the United States il In dire distress from
plethora of manufactured goods Some manu-
featuring companies have been forced into
bankruptcy: others have closed their mills to
escape 1t; few mills are running on full time,
and as consequence very largo number OF
operatives are either deprived of employment
or are working Tor wages hardly sufficient to
enable them to live comfortably or even decent
ly. Nor are manufacturers and their employees
the only sufferers by the present depression of
our manufacturing industry. SO large and
widespread has this industry become so inter
woven is 1t with other Industries, essential is
1t to the welfae of the whole country, that 1t
cannot be seriously depressed without injuri-
ously affecting business throughout the Union,
The all-important question, therefore, that
presses itself upon the public attention is, how
shall the country be relieved from the plethora
of manufactured goods, and how shall pIethsra
hereafter be prevented2 1t is OBVIOUS thas our
power to produce Is much in excess of tbe pres
ent or any probable future demand for homo
consumption. The existing iron, cotton and
wooden mills, If employed at their full capacity,
could meet IN six months-perhaps IN a shorter
ttme-the home demand for year. IL is GER
tain, therefore, that unless markets now practi
cally closed against us are opened, unless we
can share in the trade which is nonopoiized by
Efrtrn OF thn a .GGH VnNtp GO
severely felt Will continue. and may become
more disastrous
The question how shall our foreign trade be
increased is the question which now comes 70
tho front and demands prompt and careful con-
sideration. anufacturers primarily inter-
ested. but the whole country has stake In It's
solution. In its investigation the tariff Will
necessarily be involved, inasmuch as the rela-
tons between IL and our fore On trade are so
close that they cannot be considered separately,
but it need not be involved except so far "a 1t
stands In the way of International trade. If the
duties upon raw materials are an obstruction,
those duties should be removed. IL the duties
upon other articles an obstruction, they
should be modified. Whatever may be required
to increase our foreiga trade, whether 1t
duties should be demanded by the manufactu-
rers themselves How, then, shall the informa-
ton required for full understanding OF what
stands in the way of an increased expectation of
our manufactured goods be obtainedp II
may not be proper for me TO offer advice on
this point, but cannot forbear to say that 1
can see no better means than by the appoint
ment of a commission, composed of men not
welded TO the doctrines OF free trade or pro-
tection-fair- minded men, who would prosecute
the inquiry thoroughly, comprenensibly, aud
fmpartialiy. III such commission should be
created, 1t should be done without unnecessary
delay.
The business Of the whole world has been re-
volutionizcd by steam power and the substitu-
ton Of machinery Tor hand work; II not the
inventor of the steam engine. Great Britain
took the lead In utilizing IL in manufacturing,
and she thus became the great workshop of the
world For many years she had n monopoly OF
manufacturing The raw materials from nearly
all nations was taken in her own ships to her
ports and returned In manufactured goods. 1t
has been the profit OF this combination OF man
ufactures and commerce which has made her
the richest and most powe .ful of nations. Now,
however, all Western nations are endeav0ripg to
use their raw materials at home and to encour-
age and sustain their manufactures by pro-
tective duties, the effect OF which has been
general overproductiOn.
1t is this great revolution caused by steam
power and machinery and their general use that
will make the labors OF the commission arduous.
All the leading nstions o. the world are now en-
gagged in manufacturing, and all but Great Brit
ain are forcing themselves IN by protective
duties. Among them the United States has
been conspicuous Has not the time come
when a new departure is demandedp Golden,
one of the ablest and most fsr-seeing
OF British statesmen, predicted that the
United States would in time not only be-
| become q competitor of Great Britain In the
| South American markets. In the course of
some remarks upon he condition OF British
| trade he said: Members Of the House Of Com
| mons and others are constantly crying out that
| there is very great danger threatening this
country from Russia, and they neglect to OBJ
serve that the great danger to the supremacy Of
the country is not in Russia, but in the compe-
tition Of the United States of America
The present condition of our foreign trade fs
| not as fully Understood by the public as II
| ought to be, or there would be greater uneasi-
! moss in regard to what may be the result Look.
for instance, at our trade relations with Brazil
| We sold to Brazil last year various articles to
| the amount Of $s,645, 261. We bought of her
various kinds OF her own productions TO the
amount OF $D. 265 s89, leaving Sal, 62o,s8s the
| balance against us Now. how is this large bal
ance liquidated2 Not by gold, but by the sale
| OF our farm products, for which there Is a large
| demand in Europe. 1t is our cotton, our wheat,
our petroleum, our beef and pork, which
| can be produced more cheaply I'm the United
| States than anywhere else. which create the
sterling exchange that enables us to carry on
| this one sided trade with Brazil. Now. II by
| the failure of our crops, or very favorable sea-
sons on tho other side OF the Atlantic. OF what
| Is more probable, by retaliation. our exports Of
| these articles sh uld materially decline, what
| then would he the condition Of our Brazilian
| trader Instead OF depending on the experts To
| Europe for means TO cover the balance IN favor
of Brazil, ought not an effort be made to equafze
| that trade Ivy our manufactured goods? Ought
l-k.- -