Crawford avalanche. (Grayling, Mich.) 1879-19??, 1884-12-11
NATIONAL FINANCES.
Salient Points In the Report OF
Secretary Mcculloch.
a Reformation OF the Tariff and Lower
Duties In the Interest OF American
Commerce Misunderstanding
Interests and Coinage.
THE TREASURY DrPAnrMrNr.

interesting. From tho mass OF figures sub
mitted II is learned that the total revenues of
the Government for the last fiscal year
were $34S 5l9, 800, and that the ex-
penditures were $20O,9l8773, leaving
surplus of $57, 6O339e. of which s5i,OOO,OOO has
been applied TO bond redemption The actual
and estimated revenue for the fiscal year
1SS4-5 is $780, 10000 and the estimated expendi-
lures are s29O,OOO.OOO or the revenues ex-
pected during the ensuing year SIS, 100000
will come from customs taxes and SIZE, 100000
from internal revenue. The Secretary esti-
mates that the treasury surplus in 1885 will be
not less than So, 100000, and argues that some
thing should be done TO relieve the people of
TINS unnecessary taxation.
The most important chapter In the report
is devoted to foreign trade and taxation.
After speaking OF the remarkable changes In
the Western States and Territories and as
sertlng that ito the rise in the value of lands
resulting from the construction of railroads
the %4 81 r ior increase OF inc national
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 q market for their
| crops. What manufacturers now need is a
market for their surplus manufactures Tho
| real foundation of our great manufacturing
| industry was laid in New England under the
first tariff of n protective character, which
| into cotton factories. Those first constructed
having been fairly remunerative, more were
constructed, and other branches of manu-
| facture were undertaken, until New En-
gland was converted from maritime and COM
mercial pursuits into manufacturing. 1t will
be recollected that New England was opposed
| TO the first protective tariff.
| 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 developed, and Pennsylvania soon became
| the great iron manufacturing State OF the
Union. Nor was 1t long before various kinds
| of the Northern and western States. The
| demands of the Government during the late
| civil war for nearly all kinds OF manu-
/ featured goods and the high tariff greatly
stimulated production. After the war stimu-
lus was found I'm railroad building and in ex-
travagant expenditures induced by super
Come When The manufacturing Yfidtisf ypqH
| the United States is in dire distress from
| plethora of manufactured goods. Some man.
ufacturing companies have been forced in
! mills to escape it,; few mills are run
ming on full time, and as consequence
very large number OF operatives are
for wages hardly sufficient to enable them to
| live comfortably or even decently. Nor are
manufacturers and their employees the only
sufferers by the present depression of our
| manufacturing industry. So large and wide
spread has this industry become, so intcr-
| woven Is IL with other industries, so essential
is 1t to the welfare of the whole country, that
| IL can not be seriously depressed without in
| 1urtously 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 pletho-
| ra hereafter be prevented 1t is obvious
| that our power to produce is much in excess
OF the present or any probable future demand
| for home consumption. The existing iron,
| cotton and wooden mills, IL employed at their
full capacity, could meet i'm six months-per-
haps in shorter time-the home demand for
| / thnrnfOra-
markets now practically closed against us are
opened, unless we can share in the trade which
preston now so severely felt will continue,
and may become more disastrous.
The question how shall our foreign trade be
increased is the question which now comes to
the front and demands prompt and careful
consideration. Manufacturers are primarily
interested but the whole country has stake
in its solution. In its investigation the tariff
will necessarily be involved inasmuch as the
relations between it and our foreign trade are
so close that they can not be considered
separately, but 1t need not be involved except
| so far as IL stands in the way of interna-
tonal trade. If the duties upon raw materi-
ais are an obstruction, those duties should be
removed, If the duties upon other articles
are an obstruction they should be modified.
Whatever may be required to increase our
foreign trade, whether IL be repeal or a mod
ification of existing duties, should be de-
manded by the manufacturers themselves.
How, then, shall the information required for
full understanding of what stands In the way
OF an increased expectation of our man
proper for mo to offer advice on this point,
but can not fOrbear to say that / can see no
better means than by the appointment of n
commission, composed of men not welded to
the doctrine of free trade or protection-fair-
minded men, who would prosecute the inquiry
thoroughly, cOmprchensiby and impartinlly.
If such commission should be created, ii
should be done without necessary delay.
stitution of machinery for hand.worI1 II IL
! this great revolution caused by steam-power
and machinery and their general use that will
mako the labors of the commission arduous.
All the leading Nations of the world are now
engaged in manufacturing, and all but Great
Britain are fencing themselves in by protect
i've duties. Among them the United States
has boon conspicuous. Has not the time
come when new departure is demanded2
The present condition of our foreign trade Is
ought to be, or there would be greater un-
easiness in regard to what may be the result.
Look for INSTANCE 1t our ~ trade trade relations
various articles to the amount of S.
e452cl. We bought of her various
AMOUNT Of sSoso5 $50. leaving Sal seoSes 'a as
the balance against us. Now, how is this
large balance liquidated? Not by gold, but by
the sale of our farm products, for which there
is large demand in Europe. II is our cot
ton, our wheat, our petroleum. our beef and
pork, which can be produced more cheaply in
the United States than anywhere else, which
creates the sterling exchange that enables us
to carry out this one-sided trade with Brazil.
Vow NOW; y by the failure re OF ,, our crops or very
lantic, or, what is more probable, by retalia-
ton, our export of these articles should ma
terially decline, what then would be the con-
diton of our brazilian trade? Instead of de.
pending upon the exports to Europe for the
means TO cover the balance I'm favor
of Brazil ought not an effort be made
70 equalize that trade by our manu-
featured goods? Ought we not to endeavor
to verify the prediction of Golden by becom-
Ing competitor with Great Britain in the
brazilian markets. Ought not this to be at
tempted in the interest OF our own manufact-
| urers?
When the real condition of our foreign
trade and the character of the competition In
which we must sooner or later engage are
| fully understood IL will be found that our In
| ability to make that trade as free our best
interests require lies in the necessity which
| exists for heavy import duties, which, al
though they may be levied for revenue only,
must be in a large degree protective.
Ii is upon such taxes, therefore, that oun
Government must mainly rely for It's large
current expenditures and the reduction of the
| National debt. Large revenues will be de-
rived from the taxes upon whisky and tobac-
co, IL tho tax on the latter article should be
retained but our chief revenue must DO de-
rived from import duties. To show how these
duties may be imposed and distributed as TO
neither imperil our manufacturers nor OBJ
struct our foreign trade while the Treasury
is kept in an easy condition, will be the
task OF the commission. That tho task will be
a very difficult one Is certain, that IL may be
successfully performed ought to be certain
also
In the commencement of its work the com
mission should think, regard the following
points as being settled:
l. That the public revenues are not TO be in
excess OF what may be required Tor the sup
port Of the Government and the gradual re-
duction of the pulSic debt
q That our manufacturers, which under the
fostering care of the Government have at
tanned such gigantic proportions and whose
| prosperity is essential 70 the weltare OF All
other interests, are not TO be put in jeopardy
by rapid and sWeeping changes in the tariff,